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712200.0
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2023-12-13 00:00:00 UTC
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DGRW Has Hallmarks of a Great Dividend ETF
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DCOMP
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https://www.nasdaq.com/articles/dgrw-has-hallmarks-of-a-great-dividend-etf
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nan
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nan
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There are scores of dividend exchange traded funds for advisors and investors to consider, and few are alike. However, there are some primary weighting methodologies found among such ETFs.
Those are weighting by yield, an emphasis on payout growth or a blend of the two. The WisdomTree US Quality Dividend Growth Fund (DGRW) fits in the second category, and that’s a positive for investors. For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund.
DGRW has also shined bright relative to other such funds in the current environment of high interest rates. Since the start of 2022, the Federal Reserve hiked rates 11 times. While that hasn’t been a death knell for such ETFs over the past 24 months, DGRW topped the Morningstar Dividend Yield Focus Index during that period.
Why Dividend ETF DGRW Matters
DGRW breaks from the payout growth ETF pack by not focusing on dividend increase, but rather on companies’ return on assets and return on equity. These metrics can be harbingers of future dividend growth while steering investors away from payout cuts and suspensions.
“They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar. “The stocks they invest in tend to trade at higher price multiples than those with higher dividend yields, reflecting their better outlooks but also raising the hurdle for future returns.”
By eschewing an emphasis on yield, DGRW can check some important boxes for investors. These include the potential for reduced volatility, the possibility of greater capital appreciation, and higher levels of diversification. After all, many of the highest-yielding stocks hail from a small number of slow growth, interest-rate-sensitive sectors. Those include real estate and utilities, groups that combine for just 1.49% of DGRW's roster.
Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. That's something many dividend ETFs don’t do.
“They don’t always keep pace with the broader market during rallies. Dividend growth funds typically underperform the market during periods of exceptionally strong growth, when expensive stocks that pay little, if any, dividends fuel the market’s rise,” concluded Morningstar.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While that hasn’t been a death knell for such ETFs over the past 24 months, DGRW topped the Morningstar Dividend Yield Focus Index during that period. “They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar. Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies.
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For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund. “They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar. Dividend growth funds typically underperform the market during periods of exceptionally strong growth, when expensive stocks that pay little, if any, dividends fuel the market’s rise,” concluded Morningstar.
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For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund. Why Dividend ETF DGRW Matters DGRW breaks from the payout growth ETF pack by not focusing on dividend increase, but rather on companies’ return on assets and return on equity. Dividend growth funds typically underperform the market during periods of exceptionally strong growth, when expensive stocks that pay little, if any, dividends fuel the market’s rise,” concluded Morningstar.
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Those are weighting by yield, an emphasis on payout growth or a blend of the two. Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. That's something many dividend ETFs don’t do.
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b36cf8c8-d4aa-419b-8f8e-12aa9aec653b
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712201.0
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2023-12-13 00:00:00 UTC
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Cardinal Health, Inc. (CAH) Hit a 52 Week High, Can the Run Continue?
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DCOMP
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https://www.nasdaq.com/articles/cardinal-health-inc.-cah-hit-a-52-week-high-can-the-run-continue-0
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nan
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nan
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Shares of Cardinal Health (CAH) have been strong performers lately, with the stock up 4.9% over the past month. The stock hit a new 52-week high of $108.41 in the previous session. Cardinal Health has gained 40.4% since the start of the year compared to the -5.9% move for the Zacks Medical sector and the 10.9% return for the Zacks Medical - Dental Supplies industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 3, 2023, Cardinal reported EPS of $1.73 versus consensus estimate of $1.4 while it beat the consensus revenue estimate by 0.43%.
For the current fiscal year, Cardinal is expected to post earnings of $6.89 per share on $226.23 billion in revenues. This represents a 19% change in EPS on a 10.35% change in revenues. For the next fiscal year, the company is expected to earn $7.69 per share on $244.76 billion in revenues. This represents a year-over-year change of 11.6% and 8.19%, respectively.
Valuation Metrics
Cardinal may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cardinal has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.9X. On a trailing cash flow basis, the stock currently trades at 12.4X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 1.03. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Cardinal currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cardinal passes the test. Thus, it seems as though Cardinal shares could still be poised for more gains ahead.
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
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself. 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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In terms of its value breakdown, the stock currently trades at 15.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.9X. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cardinal passes the test. Click to get this free report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cardinal passes the test.
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Cardinal has a Value Score of A. Fortunately, Cardinal currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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dc003e93-0e03-4c0b-9761-e3953009cf63
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712202.0
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2023-12-13 00:00:00 UTC
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Brinker (EAT) Stock Rises 27% in 3 months: What's Driving it?
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DCOMP
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https://www.nasdaq.com/articles/brinker-eat-stock-rises-27-in-3-months%3A-whats-driving-it
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nan
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Brinker International, Inc. EAT stock has performed well in the past three months. The stock has gained 27.1% compared with the industry’s growth of 2.1%. The company is benefiting from improved menu pricing and a favorable menu item mix. Sales-driving initiatives, expansion plans and digital enhancements also bode well.
This Zacks Rank #1 (Strong Buy) company’s earnings and revenues in fiscal 2024 are likely to witness growth of 26.2% and 5% year over year, respectively. In the past 30 days, its fiscal 2024 earnings have witnessed upward revisions of 0.9% to $3.57. Let’s delve deeper.
Growth Drivers
Brinker remains committed to boosting both foot traffic and revenues through a variety of initiatives aimed at enhancing sales. These include refining the menu and introducing innovative options, fortifying the value proposition, improving food presentation, implementing effective advertising campaigns, optimizing kitchen systems and introducing a more efficient service platform.
In third-quarter fiscal 2023, the company's 3 for Me TV campaign played a significant role in narrowing the traffic gap and boosting Chili's market share growth. Also, this marked its first national advertising window in more than three years. Following the strategy's success, the company now plans to expand it from 21 weeks to 25 weeks on TV during fiscal 2024.
The strategy will emphasize value and Core Four menu items. This approach will be complemented by offers, innovation, menu merchandising and digital strategy to increase brand awareness and drive revenues. It is also developing a more advanced CRM program to boost customer frequency.
Image Source: Zacks Investment Research
Brinker is one of the few fast-casual restaurant chains that have been expanding despite sluggish economic development. Management is gearing up for international expansion as well, especially in the faster-growing emerging markets. The company is on the lookout to expand the brand in existing markets and enter new ones. During first-quarter fiscal 2024, it opened three new Chili's restaurants, bringing Brinker's total openings to 1,651. These recent openings continue to strengthen Chili's brand, as three of them consecutively reported record new opening sales in this quarter.
Over the past few quarters, Brinker’s remodeling efforts have gained momentum. Notably, the company continues to invest in its reimage program. In fact, it continues to invest in a brand-wide reimage program that are likely to drive traffic and comps over the next three years. Brinker’s remodeling initiative is thus expected to continue to invigorate its potential as a brand and augment guests’ experience. Meanwhile, the company has initiated innovation efforts to upgrade its kitchen. It started testing new equipment that delivers better products efficiently and boost volumes.
The company is positioned to invest aggressively to grow its business in fiscal 2024 and beyond. For the coming year, Brinker’s will look for more ways to offer convenience, value and a great guest experience by doubling its pipeline of new restaurant openings and expanding its portfolio of brands.
Other Key Picks
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Arcos Dorados Holdings Inc. ARCO currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has gained 60% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2023 sales and earnings per share (EPS) suggests a rise of 19.3% and 18.8%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. ANF flaunts a Zacks Rank #1 at present. It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 259.8% in the past year.
The Zacks Consensus Estimate for ANF’s 2023 sales and EPS suggests increases of 12.8% and 2,088%, respectively, from the year-ago period’s levels.
Beacon Roofing Supply, Inc. BECN currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 11.1%, on average. Shares of BECN have gained 39.5% in the past year.
The Zacks Consensus Estimate for BECN’s 2023 sales and EPS indicates 7.2% and 8.2% growth, respectively, from the year-ago period’s levels.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : 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 third-quarter fiscal 2023, the company's 3 for Me TV campaign played a significant role in narrowing the traffic gap and boosting Chili's market share growth. For the coming year, Brinker’s will look for more ways to offer convenience, value and a great guest experience by doubling its pipeline of new restaurant openings and expanding its portfolio of brands. 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 Consensus Estimate for ARCO’s 2023 sales and earnings per share (EPS) suggests a rise of 19.3% and 18.8%, respectively, from the year-ago period’s levels. The Zacks Consensus Estimate for ANF’s 2023 sales and EPS suggests increases of 12.8% and 2,088%, respectively, from the year-ago period’s levels. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This Zacks Rank #1 (Strong Buy) company’s earnings and revenues in fiscal 2024 are likely to witness growth of 26.2% and 5% year over year, respectively. Other Key Picks Some other top-ranked stocks from the Zacks Retail-Wholesale sector are: Arcos Dorados Holdings Inc. ARCO currently sports a Zacks Rank #1. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The stock has gained 60% in the past year. Shares of BECN have gained 39.5% 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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e85a3dd7-69a9-4ad8-8c99-9ea80942921d
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712203.0
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2023-12-13 00:00:00 UTC
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Booking Holdings Names Ewout Steenbergen CFO
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DCOMP
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https://www.nasdaq.com/articles/booking-holdings-names-ewout-steenbergen-cfo
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nan
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nan
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(RTTNews) - Booking Holdings Inc. (BKNG), a travel and restaurant online reservation company, announced on Wednesday that it has appointed Ewout Steenbergen as its executive vice president and chief financial officer, effective March 15, 2024.
Steenbergen succeeds David Goulden who is retiring after spending six years with the company.
Previously, Ewout Steenbergen was the finance chief of S&P Global.
In pre-market activity, Booking Holdings shares are trading at $3410, up 0.22% on the Nasdaq.
The views and 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) - Booking Holdings Inc. (BKNG), a travel and restaurant online reservation company, announced on Wednesday that it has appointed Ewout Steenbergen as its executive vice president and chief financial officer, effective March 15, 2024. Steenbergen succeeds David Goulden who is retiring after spending six years with the company. In pre-market activity, Booking Holdings shares are trading at $3410, up 0.22% on the Nasdaq.
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(RTTNews) - Booking Holdings Inc. (BKNG), a travel and restaurant online reservation company, announced on Wednesday that it has appointed Ewout Steenbergen as its executive vice president and chief financial officer, effective March 15, 2024. Previously, Ewout Steenbergen was the finance chief of S&P Global. In pre-market activity, Booking Holdings shares are trading at $3410, up 0.22% on the Nasdaq.
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(RTTNews) - Booking Holdings Inc. (BKNG), a travel and restaurant online reservation company, announced on Wednesday that it has appointed Ewout Steenbergen as its executive vice president and chief financial officer, effective March 15, 2024. Steenbergen succeeds David Goulden who is retiring after spending six years with the company. The views and 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) - Booking Holdings Inc. (BKNG), a travel and restaurant online reservation company, announced on Wednesday that it has appointed Ewout Steenbergen as its executive vice president and chief financial officer, effective March 15, 2024. Steenbergen succeeds David Goulden who is retiring after spending six years with the company. Previously, Ewout Steenbergen was the finance chief of S&P Global.
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6f9526a6-f6b8-4929-a474-7e0b7ab06b67
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712204.0
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2023-12-13 00:00:00 UTC
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Company News for Dec 13, 2023
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DCOMP
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https://www.nasdaq.com/articles/company-news-for-dec-13-2023
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nan
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nan
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Oracle Corporation (ORCL) shares plunged 12.4% after the company reported second-quarter 2024 revenues of $12.94 billion, missing the consensus estimate by $13.05 billion.
Shares of Johnson Controls International plc (JCI) fell 6% after the company reported fourth-quarter earnings of $1.05 per share, lagging the Zacks Consensus Estimate of $1.09 per share.
Lucid Group, Inc. (LCID) shares declined 8.5% following the announcement of Chief Financial Officer Sherry House's immediate resignation.
Shares of Alphabet Inc. (GOOG) were down 0.8% following Epic Games' victory in a prominent antitrust trial against the company.
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
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Johnson Controls International plc (JCI) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Lucid Group, Inc. (LCID) : 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.
|
Lucid Group, Inc. (LCID) shares declined 8.5% following the announcement of Chief Financial Officer Sherry House's immediate resignation. 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.
|
Oracle Corporation (ORCL) shares plunged 12.4% after the company reported second-quarter 2024 revenues of $12.94 billion, missing the consensus estimate by $13.05 billion. Shares of Johnson Controls International plc (JCI) fell 6% after the company reported fourth-quarter earnings of $1.05 per share, lagging the Zacks Consensus Estimate of $1.09 per share. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Johnson Controls International plc (JCI) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Johnson Controls International plc (JCI) fell 6% after the company reported fourth-quarter earnings of $1.05 per share, lagging the Zacks Consensus Estimate of $1.09 per share. 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 Alphabet Inc. (GOOG) : Free Stock Analysis Report Johnson Controls International plc (JCI) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Johnson Controls International plc (JCI) fell 6% after the company reported fourth-quarter earnings of $1.05 per share, lagging the Zacks Consensus Estimate of $1.09 per share. 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 Alphabet Inc. (GOOG) : Free Stock Analysis Report Johnson Controls International plc (JCI) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report To read this article on Zacks.com click here.
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f6508025-b72d-4c44-84c6-d78636e74bac
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712205.0
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2023-12-13 00:00:00 UTC
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Retail's Year in Review
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DCOMP
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https://www.nasdaq.com/articles/retails-year-in-review
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nan
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nan
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Motley Fool host Deidre Woollard caught up with Motley Fool analyst Asit Sharma and contributor Toby Bordelon to check out the retail landscape.
They discuss:
How Americans are spending and changing their priorities.
The tech replacement cycle, and what that means for Best Buy.
A slowdown for Home Depot and Lowe's.
Retail trends to watch in 2024.
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. 10, 2023.
Asit Sharma: But, the fact that there is no longer a huge amount of inventory of these low end chips sitting with manufacturers tells me that it's good conditions for those who are now looking to maybe replace a mouse that they bought during the pandemic when they were home because it's been a couple of years. Maybe that's a trend that will see some life in 2024.
Ricky Mulvey: I'm Ricky Mulvey, and that's Motley Fool Senior Analyst Asit Sharma. Deidre Woollard caught up with Asit and Motley Fool contributor Toby Bordelon to wrap up the year in retail. They discuss how spending trends changed and what that means for home improvement retailers, fast fashion, come back and why everybody wants to be Lulu Lemon.
Deidre Woollard: Let's start with one of the core stories of 2023, which is, I've called before, the unsinkable consumer. The consumer just kept spending good news, bad news. Whatever was coming its way, we just all kept spending, we kept going out. The good news for the future is that inflation is going down, but the bad news is, student loan payments are back. There are some signs of a little consumer weakness. People are saving less, they're putting more on credit cards, they're using more buy now, pay later. As you think about that, Asit I'll start with you, how much are you worried about the consumer in the coming year and how are you thinking about the consumer habits of the past year.
Asit Sharma: Deidre, I'm looking at the year ahead as one of a reset for the consumer. There's some spending exhaustion out there. You noted factors that are driving a little bit more hesitancy on the part of the consumer. Those student loan payments starting up just higher interest rates in general, which means that you've got a bigger payout to maintain your credit status if you're using credit cards to make those purchases. But I do think over the longer term, the fact that the US economy has been able to pull off somewhat of a soft landing so far is a good sign for the intermediate term, even if we hit a slight recession next year and the consumer which has been supporting the economy pulls back. Longer term, the growth of the US economy, the tightness of the job market, are factors that are positive both for GDP growth and an eventual resumption of spend even if it's late 2024, 2025.
Deidre Woollard: Toby, how are you thinking about the consumer?
Toby Bordelon: There is, as Asit says, in pastency for the consumer heading into the next year. But I also get the sense, or I have the sense, maybe this is incorrect, that a lot of the concerns we've heard about the economy from consumer sentiment, maybe not being all that great, that sort of thing might just be a product of the price side of inflation and people not thinking too much about the wage side of inflation. Look at what the UAW won in the latest negotiation with the automakers. That's a lot of extra money in those consumers pockets. When you ask consumers, are you concerned, they say, yes, I am. But it comes from the fact that you go to the grocery store and milk is more expensive. You don't maybe see the increase in your paycheck on a daily basis quite as much. But when you do go to make the spending choices, you look at your savings account like, there's some money there. I can make this happen. I do know my salary has gone up. I can make this happen. I'm optimistic, there have been wage gains, there have been income gains. We're going to kind of see that play out. Is there going to be a boom? Probably not, but I'm just not convinced that we're going to see a big pullback from consumers. They're going to be pretty stable heading into 2024.
Deidre Woollard: You mentioned something interesting there, which is that, yes, when you have those surveys, people say that they're concerned but they're still spending. There's a disconnect between what they're worried about and what they're thinking about, and their activity which has continued even as they were very worried at the peak of inflation, it didn't really stop the behavior. I want to ask one more question about 2023. I felt 2022 was the year of inventory. Every retailer was telling us, you know, we have an inventory proper, we're reducing inventory, most of them in 2023 knocked that out. But this year has been the year of shrink. People talking about shoplifting concerns of overall shrink. Shrink was the word I heard the most. Do you feel retailers are reaching the end of wrestling with that issue now as we head into a new year?
Asit Sharma: I think that some retailers handle this issue much better than others, and some retailers are concentrated in areas which you're going through more economic disruption. They are dealing with, in some cases, organized theft, and surprisingly, haven't been prepared on how to prevent that. Shrink in terms of the biggest news story this year, which is just the theft of retail merchandise is going to be less of a story in 2024. We've seen measures taken by a lot of mass retailers like Target, which aren't that obtrusive to the consumer, but they include just small steps like having security at night and closing or having more of a presence of security. Not necessarily a lot of it, just more visible. We have seen more of those irritating instances of things you wouldn't expect to be under lock and key suddenly behind the glass case with the key, you have to call the clerk to help you get a pack of shaving cartridges. We've seen some more of that with retailers, but I don't think it's going to be as much of a story in this coming year. It tends to be newsworthy just because it's something scary. Just as if you look at certain statistics of shoplifting over the past several decades, as an incidence, that's down from decades ago, but we see it much more in social media and the news. Not to say that it isn't getting bad in a few places. San Francisco has consistently pointed to as a retail area where you're seeing much more theft and brazen theft. But overall, I don't think it's going to have quite the newsworthy field that it didn't this year, retailers are handling it better. I was curious, Toby, what are your thoughts on this.
Toby Bordelon: That's right. I'm not sure it's going to be a big issue heading in next year. I like what you said about the visibility. We see it more so it seems to be a bigger issue. You can call me skeptical, but I wonder if in large, maybe not in large part, but if part of this was retailers using as an excuse for some things, our margins are going down, it's because there's shrinkage. We can just use that as an excuse in theearnings calland people will buy that. I'm sure it was it a part of it, sure. But if you highlight that as the issue that is beyond your control, it's more of a bigger social issue, it doesn't really speak to your business specifically. You can avoid blame a little bit for maybe there's declining margins or made some bad decisions you made, or you can avoid outright telling people our margin are down because our costs are up, and that's not changing anytime soon so just deal with it. This is the problem that can go away. You leave investors with some optimism and you leave them with thinking that, well, it's not entirely your fault, maybe we'll cut him a little slack. Then maybe he gives you an excuse or some cover to exit some markets or close some stores that you might have wanted to close anyway. It was a real issue, but it was also a convenient opportunity for some management teams to close down some stores, and to maybe avoid some blame on the earnings calls.
Deidre Woollard: I have heard other people express that theory as well. You're definitely not alone on that. Let's talk a little bit about the ways that consumers spent last year and what we think for next year. Because another thing that we heard over and over in retail earnings was consumer discretionary is hard hit. It was a good year for grocery, good year for smaller items, bad year for big ticket items, especially anything related to your house. Not a great year for Home Depot, for Lowe's, not a great year for Best Buy Electronics have been down. I'm thinking about this two ways, because the Home Depot and Lowe's thing, I feel maybe we're going to start to see people spending more on projects, but it's so tied to the housing market that I worry about it. But with electronics, so much of the spending was during the pandemic. We're now, a few years out, I wonder if that's going to come back. Asit, I'll start with you, what are you thinking about the big ticket spending?
Asit Sharma: I think that the big ticket spending is going to continue to be on hold. One beneficiary of that in the world of Lowe's and Home Depot are the pro contractors. They're still in demand because while bigger projects are put on hold, there's still just a dearth of new housing. What Home Depot's and Lowe's have to do now is to cater to where the demand is, and it's in those small contractors who aren't necessarily doing project work for people who own homes, but still out there working on construction projects. They're a beneficiary of that. The other side of that is maybe you're onto something, if we're not spending on those big ticket items where we spend, I follow the semiconductor industry, what are called super lagging edge fabs that make a lot of low end chips. These are the ones that are produced on 6-8 inch wafers. It's not those very small four nanometer process cutting edge chips you hear about, but the stuff that goes into consumer electronics. We were looking at a glut of those chips after the pandemic. Typically in a semiconductor cycle, when you have a glut, it takes two years to work off that oversupply. Guess what? We're about two years out of the peak of the pandemic. I'm starting to see some signs in the tiles that there is going to be an uptick of demand for electronics, again, on the part of consumers. That may be reading the picture backward. You look consumer demand first and then see what the supply looks like. But, the fact that there is no longer a huge amount of inventory of these low end chips sitting with manufacturers tells me that it's good conditions for those who are now looking to maybe replace a mouse that they bought during the pandemic when they were home, because it's been a couple of years. Maybe that's a trend that will see some life in 2024.
Deidre Woollard: Interesting. Toby, how are you thinking about it? I know you've taken a look at Best Buy recently.
Toby Bordelon: I think all it's right on that replacement cycle, maybe coming up. I was one of the households that bought multiple laptops in the pandemic as the kids were doing school from home. That was three years ago. Now, do you need a laptop or a tablet for each child if they're back in school? Maybe not, but they are getting a little long on the tooth, so they're going to look in and thinking maybe time for a new one. Let's replace one of those. We're getting to that point. Whether it happens this holiday season or not, we'll see. But we're certainly getting to that point, I think. You noted Best Buy, their earnings report was very interesting Deidre, because they broke down their categories and what they said is look, our big ticket items like our appliances. One thing Best Buy has done recently is move toward your bigger kitchen and household appliances they sell there. That wasn't moving as much. That was down a little bit. They talked about entertainment being up though. People were spending on things TVs, things like gaming consoles. We saw the Adobe analytics report, this came out recently for Cyber Monday, among the top products Xbox, PlayStations, and Nintendo Switches.
Entertainment is still receiving some spending dollars from consumers, which I find interesting. The other thing I'll note on the Home Depot lows issue, I think this goes back to the pandemic too and I think it might be less of finance issue and more of an opportunity issue. If you look at both of those companies telling us that pro business was up more than the DIY business. Well, what happens when you're working from home. You're spending more time at home. You see things that need to be done more, because you're home more. You have an opportunity to do them because you're home more. You're going to go to Home Depot, you're going to get the stuff, you're going to fix up that little thing that you might not have noticed before. Now you're going back to the office, you're homeless, so you see it less and then you have less of opportunity to do that because you're spending more time commuting. I think that might be feeding into it as well, just the lack of opportunity, the lack of desire to do some of these DIY projects is probably weighing on these retailers more so than I don't have money to do it. I'd rather spend my money on a new PlayStation, because I'm more interested in entertainment right now. I think we were partially seeing a changing consumer mix and priorities with where they're spending their money.
Deidre Woollard: Interesting because part of it too was, I think with retail the other thing we saw is where the money got pulled. Where it got pulled was toward travel and experiences and away from those big ticket items. It's not, I'm going to get a new refrigerator, it's, I'm going to go to France. Definitely, I've been wondering when that ends as well and dovetailing on that, where we saw the spending was grocery, beauty, wellness, anything that was repeatable and really enjoyed in the immediate moment. My impression is that that continues well on, especially even as the consumer maybe feels a little more pressured, it's the lipstick economy theory where people still want to reward themselves with the small step. What do you guys think about that?
Ricky Mulvey: I think the only thing that gets in the way of that Deidre is 100-200 basis points of the Fed pulling back. If we shift gears into reverse and the Fed eases, then I think that lipstick effect, which was made famous by Avon sales in the '60s, '70s, '80s, whenever there was a recession, those sales soared. I think people then pull back from the wellness and beauty spins which are still affordable. You can do it in small increments, it makes you feel happy. But if there's a general sense in the economy that interest rates are easing, you have a little bit more in your pocket. I think people pull away from that, but I don't see that happening anytime soon. If anything, I think that the Fed maintains, and by those sales of companies that deal in beauty, as you had mentioned when we were preparing for this podcast episode that they're really strong right now.
Deidre Woollard: Absolutely.
Toby Bordelon: It's Ulta Beauty to throw one out there. It had a surprisingly good quarter with healthy traffic they were talking about. They did note that the average stick, it went down a little bit but the traffic was up. People are going there more. Maybe you're seeing a little bit that when you talked about at a little bit that pullback people aren't spending quite as much but they're still going. They're going more than they were before. Overall it's a good thing. I'm not sure I see anything Deidre changes that either in the next year. I don't see any major trends that would make people pull back too much, but I think that is certainly something to look at. That falls into that experiential category we're talking about. I mean, beauty products are stuff, but it's consumable. You're buying it for that experience, not for the thing to have and look at. It's definitely that thing. I think that we're going to continue to see spending on, I think.
Deidre Woollard: Well, as we wrap up, let's talk about some trends that you're following for retail in 2024 and the companies that are leading the way. Toby, let's start with you because I know you've talked a little bit about, in our notes about show room shopping, which I think we've talked about a bit and it's really interesting to me the way that we've changed how we think about the real estate of a store, because it's partly going in there to buy stuff, but it's not, we don't buy stuff the same way we did before. I think that's changing. What do you think?
Toby Bordelon: I think it is too. There are a lot of new retailers out there, where there are store is really a place for you to come look but you don't expect to take the product out with you. That's now furniture has always been this way, higher end furniture, but you have some of the brands like Lovesac leaning into that. You go to the store, you try it out, you got people who can walk you through the various designs and the various fabrics and all that. Then you get delivered to your house sometime later. Warby Parker, another one that comes to mind, eyeglasses. You go in, you can do an exam there, you don't have to, but you can try on the glasses, you can see what they've got. Then you can buy it in store. But you don't take it. It ships from their main distribution center. The store is really just a place for you to look and see. I think we've got some companies that are embracing that. Like consumers want to see, they want to look, they want to feel some of these things and touch them. You can lean into that. With a nice combination of your online distribution network and some physical locations have a really efficient system that works for that. If you're looking for companies, what would you want to think about for that type of shopping? Well, not just the retailers, some of which you may or may not be great businesses right now. UPS. How do you get it to your house? It's the delivery, it's the logistics networks. Companies like that I think are going to perhaps benefit as this trend continues and maybe grows.
Ricky Mulvey: I'm watching a couple of trends. One of the trends that I'm really interested in is I'll just call this, everyone wants to be Lululemon. There's a movement among those who manufacture goods to be perceived as an athletic brand, a technical brand. Nike is very good at this. I'll note that Under Armour which is like a turnaround stock just now, their new CEO, Stephanie Lenartz, is really interested in bringing out the technical aspect of Under Armour's offerings. She's focusing on footwear. They have this great football boot, which in the United States we call a soccer clique. It's the Magnetic Pro. It's got like a $250 price point. I think more retailers are going to be involved in this trend where the manufacturer or brand which may outsource, obviously its footwear or other clothing is trying to go toward a premium price point, but give you a technical edge that makes you better. Nike and Adidas both have many marathoners who are using their latest technology to promote their shoes in this instance, so that's one trend that's interesting to me. Let's see what happens with it. The other is, I think fast fashion is having a moment again after supply chains broke down in COVID. It seemed like the end of that fast fashion trend. But we've seen the explosion of a new business model in companies like Tamu and Sheehan, which is confidentially filing to go public in the US. Tamu, if you don't know, this is an online version. It's cross between the fast fashion website and Tik Tok.
These are influencer-infused models which have thousands of new products that are available every day. Only a few of them are actually produced and the sales are just amazing. Tamu is on track to do $16 billion of revenue this year globally, it was just launched in the US in late 2022. It's sprung from nothing into this business, worth 10s of billions. Sheehan similarly, has sales that are just a huge magnitude, and even Amazon is starting to work with clothing retailers to make sure they don't get left behind in this. We'll see, I'm not sure the long term economics of this business model really hold up. I'm suspect, but it is a fascinating one to watch because it involves a young demographic, which is already savvy with social media. To your point, Deidre is very mobile savvy and isn't really into big-ticket spending items for as low as two bucks on some of these sites. There are little points of pleasure I think for the younger generation, but I just don't know about those unit economics over time.
Ricky Mulvey: As always, people on the program may have interest in the stocks they talk about. The Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Ricky Mulvey. Thanks for listening. We'll be back tomorrow.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Asit Sharma has positions in Adobe and Amazon. Deidre Woollard has positions in Adobe, Amazon.com, Lowe's Companies, and Nike. Ricky Mulvey has positions in Home Depot and Lululemon Athletica. Toby Bordelon has positions in Amazon, Under Armour, and United Parcel Service and has the following options: long December 2025 $97.50 calls on Nike, long January 2025 $82.50 calls on Best Buy, short December 2025 $97.50 puts on Nike, short January 2024 $105 calls on Nike, and short January 2025 $82.50 puts on Best Buy. The Motley Fool has positions in and recommends Adobe, Amazon, Best Buy, Home Depot, Lululemon Athletica, Nike, Target, Ulta Beauty, and Under Armour. The Motley Fool recommends Lovesac, Lowe's Companies, Nintendo, and United Parcel Service and recommends the following options: long January 2024 $420 calls on Adobe, long January 2025 $47.50 calls on Nike, and short January 2024 $430 calls on Adobe. 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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Asit Sharma: But, the fact that there is no longer a huge amount of inventory of these low end chips sitting with manufacturers tells me that it's good conditions for those who are now looking to maybe replace a mouse that they bought during the pandemic when they were home because it's been a couple of years. But, the fact that there is no longer a huge amount of inventory of these low end chips sitting with manufacturers tells me that it's good conditions for those who are now looking to maybe replace a mouse that they bought during the pandemic when they were home, because it's been a couple of years. I think more retailers are going to be involved in this trend where the manufacturer or brand which may outsource, obviously its footwear or other clothing is trying to go toward a premium price point, but give you a technical edge that makes you better.
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Toby Bordelon has positions in Amazon, Under Armour, and United Parcel Service and has the following options: long December 2025 $97.50 calls on Nike, long January 2025 $82.50 calls on Best Buy, short December 2025 $97.50 puts on Nike, short January 2024 $105 calls on Nike, and short January 2025 $82.50 puts on Best Buy. The Motley Fool has positions in and recommends Adobe, Amazon, Best Buy, Home Depot, Lululemon Athletica, Nike, Target, Ulta Beauty, and Under Armour. The Motley Fool recommends Lovesac, Lowe's Companies, Nintendo, and United Parcel Service and recommends the following options: long January 2024 $420 calls on Adobe, long January 2025 $47.50 calls on Nike, and short January 2024 $430 calls on Adobe.
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As you think about that, Asit I'll start with you, how much are you worried about the consumer in the coming year and how are you thinking about the consumer habits of the past year. Toby, let's start with you because I know you've talked a little bit about, in our notes about show room shopping, which I think we've talked about a bit and it's really interesting to me the way that we've changed how we think about the real estate of a store, because it's partly going in there to buy stuff, but it's not, we don't buy stuff the same way we did before. Toby Bordelon has positions in Amazon, Under Armour, and United Parcel Service and has the following options: long December 2025 $97.50 calls on Nike, long January 2025 $82.50 calls on Best Buy, short December 2025 $97.50 puts on Nike, short January 2024 $105 calls on Nike, and short January 2025 $82.50 puts on Best Buy.
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Deidre Woollard: Interesting because part of it too was, I think with retail the other thing we saw is where the money got pulled. Toby, let's start with you because I know you've talked a little bit about, in our notes about show room shopping, which I think we've talked about a bit and it's really interesting to me the way that we've changed how we think about the real estate of a store, because it's partly going in there to buy stuff, but it's not, we don't buy stuff the same way we did before. But you don't take it.
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2023-12-13 00:00:00 UTC
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Stock Market News for Dec 13, 2023
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https://www.nasdaq.com/articles/stock-market-news-for-dec-13-2023
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Market News
Wall Street closed higher on Tuesday as market participants gauged key inflation data and expected the Federal Reserve to keep interest rates unchanged for the third consecutive time. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.5% or 173.01 points to close at 36,577.94, marking its highest close since Jan 4, 2022. Notably, 21 components of the 30-stock index ended in positive territory, while nine ended in negative zone. The major gainer of the blue-chip index was Salesforce, Inc. CRM after jumping 1.7%. CRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 14,533.40, rising 0.7% due to strong performance of large-cap technology stocks. The tech-laden index posted its highest close since Mar 29, 2022.
The S&P 500 gained 0.5% to finish at 4,643.70, reflecting its highest close since Jan 14, 2022. Out of 11 broad sectors of the benchmark, eight ended in positive territory, while three finished in red. The
Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 0.7%, 07% and 0.6%, respectively, while the Energy Select Sector SPDR (XLE) declined 1.4%.
The fear-gauge CBOE Volatility Index (VIX) was down 4.4% to 12.1. A total of 10.52 billion shares were traded on Tuesday, lower than the last 20-session average of 10.95 billion. The S&P 500 posted 74 new 52-week highs and two new lows; the Nasdaq Composite recorded 198 new highs and 187 new lows.
Investors Gauge Inflation Data
All three major indexes touched new intraday 52-week highs on Tuesday. Investors were eagerly awaiting the November Consumer Price Index (CPI) reading, which came out on Tuesday morning.
Inflation saw a modest increase in November, aligning closely with economists’ expectations. According to the report from the Labor Department, the Consumer Price Index (CPI), a gauge of inflation, rose by 0.1% in November and showed a 3.1% increase compared to the same period last year.
The Core CPI, which excludes food and energy prices, saw an increase of 0.3% and a year-over-year increase of 4%. These numbers aligned with estimates and showed minimal deviation from October’s data. The release of these indicators coincides with the two-day policy meeting of the Federal Reserve, where it is widely expected that interest rates will remain unchanged for the third consecutive time. Investors are now awaiting Wednesday morning's release of the producer price index report.
Decline in Oil Prices
Oil prices declined more than 3% on Tuesday, reaching the lowest point in six months. This decline was driven by concerns surrounding oversupply and increased consumer price data. Brent crude settled at $73.24, marking a decrease of 3.7%, while U.S. West Texas Intermediate crude slipped by 3.8% to $68.61 per barrel. The unexpected rise in the U.S. Consumer Price Index suggests that the Federal Reserve may delay interest rate cuts, impacting future demand for oil. Additionally, there are expectations of a slowdown in oil demand growth in 2024, further contributing to market sentiment.
Investors are eagerly awaiting updates from both the Federal Reserve meeting and OPEC+ this week. Market sentiment has also been influenced by Yemen’s Houthi attack on a tanker and concerns raised at the COP28 climate summit.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to the report from the Labor Department, the Consumer Price Index (CPI), a gauge of inflation, rose by 0.1% in November and showed a 3.1% increase compared to the same period last year. The release of these indicators coincides with the two-day policy meeting of the Federal Reserve, where it is widely expected that interest rates will remain unchanged for the third consecutive time. The unexpected rise in the U.S. Consumer Price Index suggests that the Federal Reserve may delay interest rate cuts, impacting future demand for oil.
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Market News Wall Street closed higher on Tuesday as market participants gauged key inflation data and expected the Federal Reserve to keep interest rates unchanged for the third consecutive time. Investors were eagerly awaiting the November Consumer Price Index (CPI) reading, which came out on Tuesday morning. According to the report from the Labor Department, the Consumer Price Index (CPI), a gauge of inflation, rose by 0.1% in November and showed a 3.1% increase compared to the same period last year.
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Market News Wall Street closed higher on Tuesday as market participants gauged key inflation data and expected the Federal Reserve to keep interest rates unchanged for the third consecutive time. The Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 0.7%, 07% and 0.6%, respectively, while the Energy Select Sector SPDR (XLE) declined 1.4%. According to the report from the Labor Department, the Consumer Price Index (CPI), a gauge of inflation, rose by 0.1% in November and showed a 3.1% increase compared to the same period last year.
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The S&P 500 gained 0.5% to finish at 4,643.70, reflecting its highest close since Jan 14, 2022. Out of 11 broad sectors of the benchmark, eight ended in positive territory, while three finished in red. 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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If You Had Invested $100 in AT&T in 1995, This Is How Much You Would Have Today
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https://www.nasdaq.com/articles/if-you-had-invested-%24100-in-att-in-1995-this-is-how-much-you-would-have-today
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Telecommunications giant AT&T (NYSE: T) is a household name and a well-known dividend stock. Had you invested $100 in AT&T in 1995, your investment would have grown to $476 today. Is that good? Well, it definitely needs context. Many investors buy AT&T for its huge dividend, which yields an impressive 6.5% at its current share price.
But a lot more goes into investment results than just a dividend. So let's take a closer look at AT&T and use its past to help determine whether it's worth holding for the future.
The difference a dividend makes (or doesn't)
Are you a glass-half-full or glass-half-empty type of character? AT&T has multiplied an initial $100 investment to nearly $500 over the years. However, that incorporates total returns, share price gains and losses, and dividends paid. Take the dividends away, and you would have lost money!
The dividend optimist might argue that dividends were the difference between losing and multiplying their money. That's true, but even the total returns have dramatically trailed those of the S&P 500 index, which would have turned the same $100 into more than $1,200.
T data by YCharts
The bottom line? Yes, dividends can significantly boost your total returns over the long term, especially when you reinvest them to turbocharge your compounding snowball. But there is far more to a stock than its dividend. The dividend alone doesn't make an investment great.
Where AT&T falls short
It's time to change your gaze and focus on AT&T's broader business performance. A great company generates value for its shareholders over time. That's the most basic definition of a great investment.
So how has AT&T done since 1995? A company's return on invested capital (ROIC) measures the return it generates when it invests in the business. A high return means it can put resources in and get a lot out. AT&T's business is currently generating a negative ROIC, meaning it's destroying value when it invests.
T Return on Invested Capital data by YCharts
Meanwhile, AT&T's earnings per share have gone up and down but are lower today than nearly three decades ago! The same can't be said for its debt, which has exploded higher over the years and stands at $138 billion today.
You can see the slopes of each line above, but here are some percentages. AT&T's ROIC has fallen over 200%, turning negative. Earnings are 20% lower today than in 1995. Lastly, debt has increased by a staggering 1,750%.
AT&T is far worse off than it once was fundamentally, which has much to do with the stock's poor performance.
A turnaround on the way?
The company's debt load peaked after it tried and failed to enter the entertainment media industry with massive acquisitions of DirectTV and Time Warner, worth tens of billions of dollars. AT&T has since spun off those assets and used the proceeds to pay down debt.
That's the first step to a long-term turnaround because all that interest expense, which is $6.5 billion over the past year, takes away from AT&T's bottom line. Cash flow is pretty strong, with about $12 billion left after paying the dividend. The balance sheet should heal, but it could take at least a few years.
AT&T must still grow; analysts see just 3% annual earnings growth over the next three to five years. Management must also still show it can responsibly invest AT&T's money. Ideally, a great stock can pay dividends and still perform well enough to create long-term value and grow. AT&T hasn't yet shown enough to forgive it for three decades of mediocrity.
Should you invest $1,000 in AT&T right now?
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Justin Pope 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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Yes, dividends can significantly boost your total returns over the long term, especially when you reinvest them to turbocharge your compounding snowball. T Return on Invested Capital data by YCharts Meanwhile, AT&T's earnings per share have gone up and down but are lower today than nearly three decades ago! The company's debt load peaked after it tried and failed to enter the entertainment media industry with massive acquisitions of DirectTV and Time Warner, worth tens of billions of dollars.
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However, that incorporates total returns, share price gains and losses, and dividends paid. A company's return on invested capital (ROIC) measures the return it generates when it invests in the business. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and AT&T wasn't one of them.
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A company's return on invested capital (ROIC) measures the return it generates when it invests in the business. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and AT&T wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Justin Pope has no position in any of the stocks mentioned.
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But there is far more to a stock than its dividend. The dividend alone doesn't make an investment great. That's the first step to a long-term turnaround because all that interest expense, which is $6.5 billion over the past year, takes away from AT&T's bottom line.
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712208.0
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2023-12-13 00:00:00 UTC
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Zacks Industry Outlook Highlights HCA Healthcare, Universal Health Services, Tenet Healthcare, Acadia Healthcare Company and Community Health Systems
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DCOMP
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-hca-healthcare-universal-health-services-tenet-0
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For Immediate Release
Chicago, IL – December 13, 2023 – Today, Zacks Equity Research discusses HCA Healthcare Inc. HCA, Universal Health Services Inc. UHS, Tenet Healthcare Corp. THC, Acadia Healthcare Company, Inc. ACHC and Community Health Systems, Inc. CYH.
Industry: Hospitals
Link: https://www.zacks.com/commentary/2196626/5-hospital-stocks-to-watch-amid-promising-industry-trends
Technological innovation and digital transformation are poised to confer a competitive edge, boosting efficiency for the Zacks Medical-Hospital industry players. Growing competition in this market remains a common theme. As the COVID-19 impact wanes, M&A and consolidation activities are expected to pick up in the fragmented market.
Medical inflation and workforce challenges are keeping the industry players under pressure. With utilization, expenses are expected to improve for the hospital companies. Companies like HCA Healthcare Inc., Universal Health Services Inc., Tenet Healthcare Corp., Acadia Healthcare Company, Inc. and Community Health Systems, Inc. are expected to benefit from these developments.
Industry Overview
The Zacks Medical-Hospital industry comprises for-profit hospital companies that provide healthcare through different types of hospitals, such as acute care, rehabilitation and psychiatric. These hospital entities are engaged in internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, telehealth services, mental health care and diagnostic and emergency services.
Revenues of these companies depend on inpatient occupancy levels, medical and ancillary services ordered by physicians and provided to patients, and the volume of outpatient procedures. These hospital companies receive payments for patient services from the government under the Medicare program, Medicaid or similar programs, managed care plans (including plans offered through the American Health Benefit Exchanges), private insurers and directly from patients.
4 Key Trends Defining the Hospital Industry's Future
Embracing the Digital Frontier: Hospitals are leveraging ongoing technological advancements to enhance services and drive growth. This shift optimizes operations, reduces costs, enhances convenience and elevates the overall patient experience. The adoption of telehealth and telemedicine, accelerated by the COVID-19 pandemic, is expected to persist in its growth trajectory. Companies are incorporating artificial intelligence (AI) and automation, coupled with real-time analytics, to deliver quality care. AI aids in refining clinical workflow management and medical diagnoses, reducing patient wait times and treatment costs.
Patient Volume Growth: The resurgence of deferred elective procedures in recent quarters, post-pandemic constraints, has propelled patient volumes. Nevertheless, concerns linger for patients due to medical inflation, escalating coverage costs and financial constraints, prompting delays in addressing non-emergency medical needs. The upswing in out-of-pocket costs poses a potential deterrent to patient volume growth.
However, mitigating factors such as the Affordable Care Act (ACA) and comparable safety nets may offer some relief in this challenging scenario. The U.S. Census Bureau's revised report indicates that rapid growth in the 65+ age group, driven by scientific and healthcare advancements, is amplifying demand for hospital services.
Escalating Costs: The upsurge in patient volumes, along with increased prices for hospital supplies and inflationary pressures, is projected to amplify hospitals' operating costs. While workforce challenges show signs of improvement, they persist as a concern. Companies are strategically prioritizing labor productivity enhancements and the integration of new technologies to optimize expenditure. Additionally, leveraging contract renegotiations with suppliers and vendors is identified as a potential catalyst for cost management and operational efficiency.
Resurgence in M&A: Merger-and-acquisition (M&A) activity in hospitals and health systems, having sharply declined during the COVID-19 pandemic, is now witnessing a robust rebound. The fragmented industry is expected to see several deals in the upcoming days. Business consolidation, new tech partnerships and evolving business models can majorly improve hospital companies' profitability. Per a Deloitte report, 86% of surveyed health system executives foresee M&A substantially impacting their 2024 strategic plans.
Zacks Industry Rank Indicates Rosy Outlook
The group's Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates bright near-term prospects. The Zacks Medical-Hospital industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #90, which places it in the top 36% of nearly 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry's positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group's earnings growth potential.
Before we present the stocks that you may want to monitor, let's take a look at the industry's recent stock market performance and valuation picture.
Industry Outperforms Sector But Lags S&P 500
The Zacks Medical-Hospital industry has fared better than its broader sector over the past year but lagged the Zacks S&P 500 composite. During this period, the stocks in this industry have gained 5.7% against the Zacks Medical sector's 9.4% decline. The S&P 500 index jumped 16.1% during this time.
Industry's Current Valuation
On the basis of the trailing 12-month EV/EBITDA (Enterprise Value/ Earnings Before Interest Tax Depreciation and Amortization) ratio, which is commonly used for valuing hospital stocks, the industry trades at 8.56X compared with the S&P 500's 13.33X and the sector's 10.54X.
Over the past five years, the industry has traded as high as 9.55X and as low as 5.57X, with a median of 7.81X.
5 Stocks Worth Your Attention
Below, we have presented five stocks with a Zacks Rank #3 (Hold) from the Medical-Hospital industry. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
HCA Healthcare: The company offers services through surgery centers, free-standing emergency rooms, physician clinics and urgent care centers. The expansion of its telemedicine business is anticipated to contribute to revenue growth. It is well-positioned for growth, driven by increasing patient volumes and admissions. The Managed Medicare and Medicaid operations are expected to further support top-line growth. HCA's strategic inorganic growth initiatives contribute to scaling its business and it prioritizes enhancing shareholder value through dividend increases and share repurchases.
The Zacks Consensus Estimate for one of the biggest for-profit publicly traded hospitals' 2023 EPS indicates 7.6% year-over-year growth. The consensus mark for 2023 revenues signals a 6.6% increase from a year ago. HCA Healthcare beat earnings estimates twice in the past four quarters and missed on the other occasions, the average surprise being 4.8%. Shares of the company have jumped 13.9% over the past month.
Universal Health Services: The company operates acute care facilities and outpatient and behavioral health care units, with a focus on behavioral indications such as autism, eating disorders, substance use disorder and military disorderliness through its Patriot Support Program. The company experiences momentum from increased patient days and an extensive care network. The expansion of licensed beds in acute care hospitals and strategic joint ventures in the behavioral health portfolio is anticipated to contribute to its growth.
The Zacks Consensus Estimate for Universal Health's 2023 bottom line indicates 4.7% year-over-year growth. The consensus mark for its 2023 revenues signals a 6.2% increase from a year ago. UHS beat earnings estimates in all the past four quarters, the average surprise being 5.5%. Shares of the company have gained 10.8% in the past month.
Tenet Healthcare Corporation: The company offers diversified healthcare services, primarily through general hospitals and related healthcare units. Notably, it experiences growth in the Ambulatory Care and Hospital segments, driven by increasing adjusted patient volumes and emergency room visits. The Ambulatory Care unit is significantly bolstered by robust performance in its USPI division. Prudent buyouts and tuck-in acquisitions contribute to the company's overall success and contractual rate increases in the Conifer unit further enhance its financial performance.
The Zacks Consensus Estimate for THC's 2023 bottom line is pegged at $5.84 per share, which improved 1.9% over the past 60 days. The consensus mark for 2023 revenues signals a 6.4% increase from the prior year. Tenet Healthcare beat earnings estimates in all the past four quarters, the average surprise being 27.8%. Shares of the company have gained 31% over the past month.
Acadia Healthcare: The company delivers behavioral healthcare services in the United States and Puerto Rico. The company's performance is strengthened by improving patient volumes, admissions and the expansion of service lines into new states. ACHC is progressing toward its goal of adding 300 beds by the year-end and aims to open six CTCs in 2023. Active pursuit of joint ventures with reputable healthcare systems underscores the company's commitment to expanding capabilities.
The Zacks Consensus Estimate for ACHC's 2023 bottom line indicates 13.3% year-over-year growth. The consensus mark for 2023 revenues signals an 11.7% increase from a year ago. ACHC beat on earnings thrice in the last four quarters and missed on one occasion, the average surprise being 3.6%. Shares of the company have gained 2.9% in the past month.
Community Health Systems: It is a prominent operator of general acute care hospitals and outpatient facilities throughout the United States. Its positive results are fueled by increasing patient volumes, admissions and improved occupancy rates. With a strategic focus on telehealth, CYH positions itself for long-term growth. The company pursues acquisitions in hospitals where management can enhance value by expanding specialty medical services and achieving economies of scale. Also, it actively engages in divesting non-core assets to bolster profitability, same-store metrics and cash flow.
The Zacks Consensus Estimate for CYH's 2023 bottom line indicates a 34.8% improvement from a year ago. The consensus mark for its 2023 revenues signals 2% growth from the prior year. The earnings estimates remained stable over the past week. Shares of the company have gained 3.7% in the past month.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
Community Health Systems, Inc. (CYH) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. Census Bureau's revised report indicates that rapid growth in the 65+ age group, driven by scientific and healthcare advancements, is amplifying demand for hospital services. HCA's strategic inorganic growth initiatives contribute to scaling its business and it prioritizes enhancing shareholder value through dividend increases and share repurchases. 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 Immediate Release Chicago, IL – December 13, 2023 – Today, Zacks Equity Research discusses HCA Healthcare Inc. HCA, Universal Health Services Inc. UHS, Tenet Healthcare Corp. THC, Acadia Healthcare Company, Inc. ACHC and Community Health Systems, Inc. CYH. Companies like HCA Healthcare Inc., Universal Health Services Inc., Tenet Healthcare Corp., Acadia Healthcare Company, Inc. and Community Health Systems, Inc. are expected to benefit from these developments. Click to get this free report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Community Health Systems, Inc. (CYH) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – December 13, 2023 – Today, Zacks Equity Research discusses HCA Healthcare Inc. HCA, Universal Health Services Inc. UHS, Tenet Healthcare Corp. THC, Acadia Healthcare Company, Inc. ACHC and Community Health Systems, Inc. CYH. The Zacks Medical-Hospital industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #90, which places it in the top 36% of nearly 250 Zacks industries. Click to get this free report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Community Health Systems, Inc. (CYH) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Companies like HCA Healthcare Inc., Universal Health Services Inc., Tenet Healthcare Corp., Acadia Healthcare Company, Inc. and Community Health Systems, Inc. are expected to benefit from these developments. The Zacks Consensus Estimate for ACHC's 2023 bottom line indicates 13.3% year-over-year growth. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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ec4d6b13-2d76-451e-86eb-3c31f14f78de
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712209.0
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2023-12-13 00:00:00 UTC
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Zscaler, Inc. (ZS) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/zscaler-inc.-zs-hits-fresh-high%3A-is-there-still-room-to-run
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Have you been paying attention to shares of Zscaler (ZS)? Shares have been on the move with the stock up 12.7% over the past month. The stock hit a new 52-week high of $211.59 in the previous session. Zscaler has gained 88.4% since the start of the year compared to the 48.7% move for the Zacks Computer and Technology sector and the 51.3% return for the Zacks Internet - Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 27, 2023, Zscaler reported EPS of $0.67 versus consensus estimate of $0.49.
For the current fiscal year, Zscaler is expected to post earnings of $2.45 per share on $2.06 billion in revenues. This represents a 36.87% change in EPS on a 27.23% change in revenues. For the next fiscal year, the company is expected to earn $2.95 per share on $2.57 billion in revenues. This represents a year-over-year change of 20.27% and 25.09%, respectively.
Valuation Metrics
Zscaler may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Zscaler has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 86X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.6X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 8X. Additionally, the stock has a PEG ratio of 2.32. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Zscaler currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Zscaler fits the bill. Thus, it seems as though Zscaler shares could still be poised for more gains ahead.
How Does ZS Stack Up to the Competition?
Shares of ZS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HealthStream, Inc. (HSTM). HSTM has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. HealthStream, Inc. beat our consensus estimate by 62.50%, and for the current fiscal year, HSTM is expected to post earnings of $0.45 per share on revenue of $280.32 million.
Shares of HealthStream, Inc. have gained 1.8% over the past month, and currently trade at a forward P/E of 61.01X and a P/CF of 13.13X.
The Internet - Services industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ZS and HSTM, even beyond their own solid fundamental situation.
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
Zscaler, Inc. (ZS) : Free Stock Analysis Report
HealthStream, Inc. (HSTM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fortunately, Zscaler currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. HealthStream, Inc. beat our consensus estimate by 62.50%, and for the current fiscal year, HSTM is expected to post earnings of $0.45 per share on revenue of $280.32 million. 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 the current fiscal year, Zscaler is expected to post earnings of $2.45 per share on $2.06 billion in revenues. In terms of its value breakdown, the stock currently trades at 86X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.6X. Click to get this free report Zscaler, Inc. (ZS) : Free Stock Analysis Report HealthStream, Inc. (HSTM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zscaler has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B. Zacks Rank We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Click to get this free report Zscaler, Inc. (ZS) : Free Stock Analysis Report HealthStream, Inc. (HSTM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its last earnings report on November 27, 2023, Zscaler reported EPS of $0.67 versus consensus estimate of $0.49. Fortunately, Zscaler currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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eab542ea-9241-47ab-a3be-f6aeeb05a251
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712210.0
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2023-12-13 00:00:00 UTC
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Integer Holdings Corporation (ITGR) Hit a 52 Week High, Can the Run Continue?
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DCOMP
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https://www.nasdaq.com/articles/integer-holdings-corporation-itgr-hit-a-52-week-high-can-the-run-continue
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Shares of Integer (ITGR) have been strong performers lately, with the stock up 6.1% over the past month. The stock hit a new 52-week high of $96.55 in the previous session. Integer has gained 37.7% since the start of the year compared to the -5.9% move for the Zacks Medical sector and the -1.8% return for the Zacks Medical - Instruments industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 26, 2023, Integer reported EPS of $1.27 versus consensus estimate of $1.05.
For the current fiscal year, Integer is expected to post earnings of $4.60 per share on $1.58 billion in revenues. This represents a 18.56% change in EPS on a 14.9% change in revenues. For the next fiscal year, the company is expected to earn $5.25 per share on $1.69 billion in revenues. This represents a year-over-year change of 14.2% and 6.65%, respectively.
Valuation Metrics
Integer may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Integer has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.2X. On a trailing cash flow basis, the stock currently trades at 14X versus its peer group's average of 13.7X. Additionally, the stock has a PEG ratio of 1.3. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Integer currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Integer meets the list of requirements. Thus, it seems as though Integer shares could have potential in the weeks and months to come.
How Does ITGR Stack Up to the Competition?
Shares of ITGR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is DexCom, Inc. (DXCM). DXCM has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. DexCom, Inc. beat our consensus estimate by 47.06%, and for the current fiscal year, DXCM is expected to post earnings of $1.70 per share on revenue of $3.59 billion.
Shares of DexCom, Inc. have gained 17.5% over the past month, and currently trade at a forward P/E of 82.91X and a P/CF of 90.98X.
The Medical - Instruments industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ITGR and DXCM, even beyond their own solid fundamental situation.
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
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fortunately, Integer currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts. DexCom, Inc. beat our consensus estimate by 47.06%, and for the current fiscal year, DXCM is expected to post earnings of $1.70 per share on revenue of $3.59 billion. 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 the current fiscal year, Integer is expected to post earnings of $4.60 per share on $1.58 billion in revenues. In terms of its value breakdown, the stock currently trades at 20.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.2X. Click to get this free report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Integer meets the list of requirements. DXCM has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C. Earnings were strong last quarter. Click to get this free report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Integer has a Value Score of B. Fortunately, Integer currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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aeb555b9-d887-4540-ab91-bd79ebf3bb1f
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712211.0
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2023-12-13 00:00:00 UTC
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3 Top Dividend Stocks to Maximize Your Retirement Income
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DCOMP
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https://www.nasdaq.com/articles/3-top-dividend-stocks-to-maximize-your-retirement-income-107
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Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself.
And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans.
In today's economic environment, traditional income investments are not working.
For example, 10-year Treasury bonds in the late 1990s offered a yield of around 6.50%, which translated to an income source you could count on. However, today's yield is much lower and probably not a viable return option to fund typical retirements.
That means if you had $1 million in 10-year Treasuries, the difference in yield between 1999 and today is more than $1 million.
Today's retirees are getting hit hard by reduced bond yields - and the Social Security picture isn't too rosy either. Right now and for the near future, Social Security benefits are still being paid, but it has been estimated that the Social Security funds will be depleted as soon as 2035.
Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?
Invest in Dividend Stocks
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options.
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
ACNB (ACNB) is currently shelling out a dividend of $0.3 per share, with a dividend yield of 3.02%. This compares to the Banks - Southwest industry's yield of 0.29% and the S&P 500's yield of 1.66%. The company's annualized dividend growth in the past year was 7.69%. Check ACNB (ACNB) dividend history here>>>
MetLife (MET) is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.19% compared to the Insurance - Multi line industry's yield of 1.73% and the S&P 500's yield. The annualized dividend growth of the company was 4% over the past year. Check MetLife (MET) dividend history here>>>
Currently paying a dividend of $0.47 per share, NextEra Energy (NEE) has a dividend yield of 3.14%. This is compared to the Utility - Electric Power industry's yield of 3.52% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 10%. Check NextEra Energy (NEE) dividend history here>>>
But aren't stocks generally more risky than bonds?
It is true that stocks, as an asset class, carry more risk than bonds, but high-quality dividend stocks not only have the ability to produce income growth over time but more importantly, can also reduce your overall portfolio volatility relative to the broader stock market.
An upside to adding dividend stocks to your retirement portfolio: they can help lessen the effects of inflation, since many dividend-paying companies (especially blue chip stocks) generally increase their dividends over time.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges.
Bottom Line
Regardless of whether you select high-quality, low-fee funds or stocks, looking for a steady stream of income from dividend-paying equities can potentially lead you to a solid and more peaceful retirement.
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
ACNB Corporation (ACNB) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. Bottom Line Regardless of whether you select high-quality, low-fee funds or stocks, looking for a steady stream of income from dividend-paying equities can potentially lead you to a solid and more peaceful retirement. 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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Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Check MetLife (MET) dividend history here>>> Currently paying a dividend of $0.47 per share, NextEra Energy (NEE) has a dividend yield of 3.14%. Click to get this free report ACNB Corporation (ACNB) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Check ACNB (ACNB) dividend history here>>> MetLife (MET) is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.19% compared to the Insurance - Multi line industry's yield of 1.73% and the S&P 500's yield. Click to get this free report ACNB Corporation (ACNB) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. 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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Accenture PLC (ACN) Soars to 52-Week High, Time to Cash Out?
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https://www.nasdaq.com/articles/accenture-plc-acn-soars-to-52-week-high-time-to-cash-out
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Shares of Accenture (ACN) have been strong performers lately, with the stock up 7.1% over the past month. The stock hit a new 52-week high of $343.25 in the previous session. Accenture has gained 28.6% since the start of the year compared to the 19.1% move for the Zacks Business Services sector and the 31.2% return for the Zacks Consulting Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on September 28, 2023, Accenture reported EPS of $2.71 versus consensus estimate of $2.62 while it missed the consensus revenue estimate by 0.52%.
For the current fiscal year, Accenture is expected to post earnings of $12.20 per share on $66.58 billion in revenues. This represents a 4.63% change in EPS on a 3.86% change in revenues. For the next fiscal year, the company is expected to earn $13.15 per share on $70.81 billion in revenues. This represents a year-over-year change of 7.76% and 6.35%, respectively.
Valuation Metrics
Accenture may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Accenture has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 28.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 21.3X. On a trailing cash flow basis, the stock currently trades at 21.9X versus its peer group's average of 19.3X. Additionally, the stock has a PEG ratio of 3.16. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Accenture currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Accenture fits the bill. Thus, it seems as though Accenture shares could still be poised for more gains ahead.
How Does ACN Stack Up to the Competition?
Shares of ACN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Stantec Inc. (STN). STN has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Stantec Inc. beat our consensus estimate by 18.06%, and for the current fiscal year, STN is expected to post earnings of $3.12 per share on revenue of $3.65 billion.
Shares of Stantec Inc. have gained 7.5% over the past month, and currently trade at a forward P/E of 28.06X and a P/CF of 17.74X.
The Consulting Services industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ACN and STN, even beyond their own solid fundamental situation.
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
Accenture PLC (ACN) : Free Stock Analysis Report
Stantec Inc. (STN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fortunately, Accenture currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. Stantec Inc. beat our consensus estimate by 18.06%, and for the current fiscal year, STN is expected to post earnings of $3.12 per share on revenue of $3.65 billion. 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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In its last earnings report on September 28, 2023, Accenture reported EPS of $2.71 versus consensus estimate of $2.62 while it missed the consensus revenue estimate by 0.52%. In terms of its value breakdown, the stock currently trades at 28.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 21.3X. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report Stantec Inc. (STN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Accenture has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Accenture fits the bill. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report Stantec Inc. (STN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). Fortunately, Accenture currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. 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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The Zacks Analyst Blog Highlights The Home Depot, Advanced Micro Devices, Pfizer, The Cigna Group and Live Nation Entertainment
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-the-home-depot-advanced-micro-devices-pfizer-the-cigna
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For Immediate Release
Chicago, IL – December 13, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Home Depot, Inc. HD, Advanced Micro Devices, Inc. AMD, Pfizer Inc. PFE, The Cigna Group CI and Live Nation Entertainment, Inc. LYV.
Here are highlights from Tuesday’s Analyst Blog:
Top Stock Reports for Home Depot, AMD and Pfizer
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc., Advanced Micro Devices, Inc. and Pfizer Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Home Depot shares have done modestly better than rival Lowe's this year (+5.7% vs. +4.1%), but both have lagged the S&P 500 index's +21% gain in the year-to-date period.
The Zacks analyst believes that the "One Home Depot" investment plan, which focuses on expanding supply chain facilities and technological enhancement to the digital experience have been a major aid. Also, the closely connected retail strategy and underlying technology infrastructure have boosted web traffic.
Yet, a decrease in lumber prices and pressures in several big-ticket discretionary categories have pressured the company's top and bottom line.
(You can read the full research report on Home Depot here >>>)
Advanced Micro Devices shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+87.6% vs. +47.0%). The Zacks analyst believes that strong adoption of Ryzen and fourth-gen EPYC CPU have been driving the company's data center and client revenues.
However, weak Gaming and embedded revenues have weigh down on the company. Gaming declined due to lower semi-custom revenues, while the embedded segment suffered from lower performance in the communications market.
(You can read the full research report on Advanced Micro Devices here >>>)
Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-46.1% vs. +3.7%). Per the Zacks analyst, there are concerns about the company's growth drivers beyond its COVID related products because of stiff competition. Also, Comirnaty vaccine and Paxlovid oral pill, two of its flagship COVID-19 products have witnessed low demand.
However, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret and new acquisitions provide sufficient diversification in its product portfolio currently. Huge profits from its COVID products have strengthened its cash position, which is being used to make such acquisitions, increase dividends, buy back shares and reduce debt.
(You can read the full research report on Pfizer here >>>)
Other noteworthy reports we are featuring today include The Cigna Group and Live Nation Entertainment, Inc..
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.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Cigna Group (CI) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: The Home Depot, Inc. HD, Advanced Micro Devices, Inc. AMD, Pfizer Inc. PFE, The Cigna Group CI and Live Nation Entertainment, Inc. LYV. The Zacks analyst believes that the "One Home Depot" investment plan, which focuses on expanding supply chain facilities and technological enhancement to the digital experience have been a major aid. (You can read the full research report on Advanced Micro Devices here >>>) Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-46.1% vs. +3.7%).
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Stocks recently featured in the blog include: The Home Depot, Inc. HD, Advanced Micro Devices, Inc. AMD, Pfizer Inc. PFE, The Cigna Group CI and Live Nation Entertainment, Inc. LYV. Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc., Advanced Micro Devices, Inc. and Pfizer Inc. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for Home Depot, AMD and Pfizer The Zacks Research Daily presents the best research output of our analyst team. (You can read the full research report on Pfizer here >>>) Other noteworthy reports we are featuring today include The Cigna Group and Live Nation Entertainment, Inc.. Why Haven't You Looked at Zacks' Top Stocks? Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for Home Depot, AMD and Pfizer The Zacks Research Daily presents the best research output of our analyst team. 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. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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84e3507c-ec60-4986-926e-440008cf84ad
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712214.0
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2023-12-13 00:00:00 UTC
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Are Investors Undervaluing Fabrinet (FN) Right Now?
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https://www.nasdaq.com/articles/are-investors-undervaluing-fabrinet-fn-right-now
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Fabrinet (FN) is a stock many investors are watching right now. FN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 19.66, while its industry has an average P/E of 20.74. Over the past year, FN's Forward P/E has been as high as 21.74 and as low as 11.15, with a median of 16.59.
Another valuation metric that we should highlight is FN's P/B ratio of 4.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.64. FN's P/B has been as high as 4.32 and as low as 2.30, with a median of 3.26, over the past year.
Finally, investors will want to recognize that FN has a P/CF ratio of 21.30. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FN's current P/CF looks attractive when compared to its industry's average P/CF of 26.32. Over the past 52 weeks, FN's P/CF has been as high as 22.67 and as low as 11.80, with a median of 16.69.
Value investors will likely look at more than just these metrics, but the above data helps show that Fabrinet is likely undervalued currently. And when considering the strength of its earnings outlook, FN sticks out at as one of the market's strongest value stocks.
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
Fabrinet (FN) : 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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Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. 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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Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. Click to get this free report Fabrinet (FN) : 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 proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. Click to get this free report Fabrinet (FN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. The stock holds a P/E ratio of 19.66, while its industry has an average P/E of 20.74. 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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5 Stocks Powering Dow ETF's 3-Month Outperformance
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https://www.nasdaq.com/articles/5-stocks-powering-dow-etfs-3-month-outperformance
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Amid the ongoing broad market rally driven by the anticipation that the Fed is nearing the end of its interest rate hike cycle, the Dow Jones Industrial Average is catching up pretty well, hitting its highest levels since January last year. The blue-chip index has been outperforming over the past three months, rising 5.8% compared with a 3.9% increase for the broad market index, S&P 500.
SPDR Dow Jones Industrial Average ETF DIA, which tracks the Dow Jones Index, also gained 5.8% in the same timeframe. While most of the stocks in the ETF portfolio made a strong comeback in recent months, we have highlighted five that have been leading the way higher. These include NIKE Inc. NKE, Boeing BA, Salesforce Inc. CRM, UnitedHealth Group Inc. UNH and Intel Corporation INTC.
Being cyclical in nature, the blue-chip index outperforms when economic growth improves. Americans are now feeling more confident about the economy than they did over the past few months. This is especially true as consumer sentiment, as indicated by the preliminary reading on the University of Michigan preliminary index, rebounded sharply in early December and broke the streak of four consecutive months of decline (read: ETFs Set to Gain Amid Robust Holiday Consumer Sentiment).
Inflation is also slowing, which will eventually lead to potential cuts in short-term interest rates by the Fed, leading to more growth. Notably, inflation edged down for the second consecutive month in November, driven by a drop in energy prices.
The outperformance came as the rally broadened out in recent weeks after the astounding surge of the “Magnificent Seven” stocks. Cyclical stocks, bank stocks and small-cap stocks have all shown an upward trend, indicating that the market is in a state of expansion, supporting the uptrend in equities (read: Magnificent Seven ETFs: A Review of 2023 & What Lies Ahead).
According to Bespoke, the Dow Jones has notched an all-time high on a total return basis, which includes dividend payments. The index is up 12% this year on a total return basis.
DIA in Focus
SPDR Dow Jones Industrial Average ETF is one of the largest and most popular ETFs in the large-cap space, with AUM of $31.3 billion and an average daily volume of 3.6 million shares. It tracks the Dow Jones Industrial Average Index, holding 30 stocks in its basket with each making up for less than 10% share. Financials (20.3%), healthcare (19.6%), information technology (19.5%), industrials (14.6%) and consumer discretionary (13.2%) are the top five sectors.
SPDR Dow Jones Industrial Average ETF charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Best-Performing Stocks of DIA
NIKE Inc. is engaged in the business of designing, developing and marketing of athletic footwear, apparel, equipment and accessories, and services for men, women and children worldwide. It has gained more than 24% over the past three months and accounts for 2.1% in the fund’s basket.
NIKE is expected to see an earnings growth of 15.79% for the fiscal year (ending May 2024) and has a Zacks Rank #2 (Buy).
Boeing has been the premier manufacturer of commercial jetliners for decades. The company’s premier jet aircraft along with varied defense products position it as one of the largest defense contractors in the United States. It has a solid estimated earnings growth of 159.5% for 2024.
Boeing has risen 18% in the past three months and accounts for 4.5% of DIA. The stock has a Zacks Rank #3 (Hold) and a Growth Score of A.
Salesforce is the leading provider of on-demand Customer Relationship Management software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The stock has risen 15.7% in the past three months and accounts for 4.5% in the fund’s basket.
Salesforce has an expected earnings growth rate of 16% for the fiscal year (ending January 2025). It has a Zacks Rank #3 and a Growth Score of B.
UnitedHealth provides a wide range of healthcare products and services, such as health maintenance organizations, point-of-service plans, preferred provider organizations and managed fee-for-service programs. The stock makes up 9.8% of the assets in the DIA portfolio.
UnitedHealth has gained 13.7% in the same time frame. The expected earnings growth rate for the next year is 11.78%. It has a Zacks Rank #3 and a Growth Score of A.
Intel, the world’s largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving. INTC is up 13.3% over the past three months and accounts for 0.8% in the fund’s basket (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
Intel is expected to see earnings growth of 98.5% for 2024 and has a Zacks Rank #1.
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SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amid the ongoing broad market rally driven by the anticipation that the Fed is nearing the end of its interest rate hike cycle, the Dow Jones Industrial Average is catching up pretty well, hitting its highest levels since January last year. These include NIKE Inc. NKE, Boeing BA, Salesforce Inc. CRM, UnitedHealth Group Inc. UNH and Intel Corporation INTC. Best-Performing Stocks of DIA NIKE Inc. is engaged in the business of designing, developing and marketing of athletic footwear, apparel, equipment and accessories, and services for men, women and children worldwide.
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SPDR Dow Jones Industrial Average ETF DIA, which tracks the Dow Jones Index, also gained 5.8% in the same timeframe. These include NIKE Inc. NKE, Boeing BA, Salesforce Inc. CRM, UnitedHealth Group Inc. UNH and Intel Corporation INTC. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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SPDR Dow Jones Industrial Average ETF DIA, which tracks the Dow Jones Index, also gained 5.8% in the same timeframe. SPDR Dow Jones Industrial Average ETF charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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SPDR Dow Jones Industrial Average ETF DIA, which tracks the Dow Jones Index, also gained 5.8% in the same timeframe. Boeing has risen 18% in the past three months and accounts for 4.5% of DIA. INTC is up 13.3% over the past three months and accounts for 0.8% in the fund’s basket (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
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712216.0
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2023-12-13 00:00:00 UTC
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Google Ventures adds general partner to back AI, open source startups
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https://www.nasdaq.com/articles/google-ventures-adds-general-partner-to-back-ai-open-source-startups
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By Krystal Hu
Dec 13 (Reuters) - Venture capital firm GV, backed by Google parent Alphabet Inc GOOGL.O, has hired Michael McBride from software firm GitLab GTLB.O as its latest general partner to focus on open-source and AI startups, the firm told Reuters.
McBride served as the chief revenue officer for five years at GitLab, an open-source developer tools maker in GV's portfolio that went public in late 2021.
The software industry veteran said he would concentrate on early-stage startups that focus on enterprise customers, including those that use open-source and AI-driven approaches.
"I've learned a lot about how open source can give startup and growth companies a big advantage. I think it's going to be a powerful business model in AI," McBride said.
It was important for startups built on free open-source technology to invest in both the open-source community and in growing their revenue-generating business, he said.
While venture capital funding has slowed due to interest rate hikes and valuation resets, GV has completed 125 investments this year with an average of $1 billion invested annually since 2020.
The VC firm, which focuses on early-stage investments and has backed companies such as Uber UBER.N and Slack, also made some unusual bets in the public market this year, purchasing stock shares of its portfolio companies from GitLab to Verve Therapeutics VERV.O.
"We're long-term investors and we have this flexibility to invest at any stage throughout a company's life, even after their IPO. We're unconstrained and we think of ourselves as aligning with what the very best founders need," said Dave Munichiello, general partner at GV.
Launched as Google Ventures in 2009, GV now has $8 billion in assets under management from Alphabet, its sole limited partner. The 35-person investment team at GV are split between life science and digital focus, which covers enterprise, consumer and frontier tech in North America and Europe.
(Reporting by Krystal Hu in New York; Editing by Stephen Coates)
((Krystal.Hu@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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McBride served as the chief revenue officer for five years at GitLab, an open-source developer tools maker in GV's portfolio that went public in late 2021. The software industry veteran said he would concentrate on early-stage startups that focus on enterprise customers, including those that use open-source and AI-driven approaches. The 35-person investment team at GV are split between life science and digital focus, which covers enterprise, consumer and frontier tech in North America and Europe.
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By Krystal Hu Dec 13 (Reuters) - Venture capital firm GV, backed by Google parent Alphabet Inc GOOGL.O, has hired Michael McBride from software firm GitLab GTLB.O as its latest general partner to focus on open-source and AI startups, the firm told Reuters. The software industry veteran said he would concentrate on early-stage startups that focus on enterprise customers, including those that use open-source and AI-driven approaches. The VC firm, which focuses on early-stage investments and has backed companies such as Uber UBER.N and Slack, also made some unusual bets in the public market this year, purchasing stock shares of its portfolio companies from GitLab to Verve Therapeutics VERV.O.
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By Krystal Hu Dec 13 (Reuters) - Venture capital firm GV, backed by Google parent Alphabet Inc GOOGL.O, has hired Michael McBride from software firm GitLab GTLB.O as its latest general partner to focus on open-source and AI startups, the firm told Reuters. While venture capital funding has slowed due to interest rate hikes and valuation resets, GV has completed 125 investments this year with an average of $1 billion invested annually since 2020. The VC firm, which focuses on early-stage investments and has backed companies such as Uber UBER.N and Slack, also made some unusual bets in the public market this year, purchasing stock shares of its portfolio companies from GitLab to Verve Therapeutics VERV.O.
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By Krystal Hu Dec 13 (Reuters) - Venture capital firm GV, backed by Google parent Alphabet Inc GOOGL.O, has hired Michael McBride from software firm GitLab GTLB.O as its latest general partner to focus on open-source and AI startups, the firm told Reuters. The VC firm, which focuses on early-stage investments and has backed companies such as Uber UBER.N and Slack, also made some unusual bets in the public market this year, purchasing stock shares of its portfolio companies from GitLab to Verve Therapeutics VERV.O. Launched as Google Ventures in 2009, GV now has $8 billion in assets under management from Alphabet, its sole limited partner.
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2583c25e-a399-4636-ba4f-10014714beaa
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712217.0
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2023-12-13 00:00:00 UTC
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1 Dow Jones Stock Down 21% to Buy Now
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https://www.nasdaq.com/articles/1-dow-jones-stock-down-21-to-buy-now
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Shares of technology giant International Business Machines (NYSE: IBM) have bounced back from their pandemic-era lows, but the stock remains down about 21% from its all-time high reached more than a decade ago. The company has long been transforming itself for the age of cloud computing. Progress has been slow.
IBM now appears to be hitting its stride. The company has shed around 15 businesses in recent years, including the spinoff of its managed infrastructure services unit into Kyndryl. While the company has made plenty of acquisitions as well, notably the $34 billion purchase of Red Hat in 2019, these actions have shifted IBM's focus to its best growth opportunities and away from slow-growing legacy businesses.
Hybrid cloud and AI
The two biggest growth opportunities for IBM are hybrid cloud computing and artificial intelligence. The company is going after both through its software and consulting businesses.
Red Hat forms the foundation of IBM's hybrid cloud efforts. OpenShift, Red Hat's containerization platform, controlled nearly 50% of the container software market in 2020. Red Hat's software can run anywhere, including on competing public cloud platforms and on on-premises servers.
IBM's AI efforts are now being driven by Watsonx, a new AI platform that enables enterprises to deploy AI models while handling regulatory and data privacy concerns. Like its hybrid cloud platform, Watsonx isn't tied to IBM's own cloud. A portion of the AI platform is already available through Amazon Web Services.
Tying all this together is IBM's consulting business, which provides guidance and crafts solutions for clients. IBM wins by delivering the best solutions possible for its clients, and that often involves products from other technology companies. A slew of strategic partnerships struck in the past couple of years, including one with AWS that brought IBM's software to the leading cloud platform, allows the consulting arm to mix IBM products more easily with products from partners.
A reasonable valuation and a nice dividend
By embracing the platforms and products that its clients want to use, IBM has rekindled its growth. Revenue is expected to grow by 3% to 5% this year excluding the impact of currency, a solid result compared to IBM's performance in recent years. A full 75% of IBM's revenue now comes from software and consulting, and about half of total revenue is recurring in nature.
IBM's bottom line is also improving thanks to the high-margin nature of its growing software business. While revenue expanded by just 3% in the third quarter, gross profit jumped 8%, pretax income rose 17%, and earnings per share soared 22%. Free cash flow also improved, and the company is on track to deliver free cash flow of $10.5 billion this year. That's up more than $1 billion from 2022.
IBM stock has rallied about 15% this year, pushing its market capitalization up to roughly $149 billion. Based on the company's guidance, the stock trades for about 14 times free cash flow. While IBM's revenue won't grow much faster than the mid-single-digit percentage the company is targeting as part of the mid-term model it rolled out in 2021, free cash flow can grow faster as margins improve. If IBM can keep growing free cash flow at a high single-digit rate annually, at least on average, the valuation looks reasonable.
That free cash flow fuels the company's dividend, which it has paid uninterrupted since 1916. The dividend has been increased annually for 28 years in a row. The current quarterly dividend of $1.66 per share works out to a dividend yield of about 4.1%. Dividend growth has been slow since the pandemic, but it could pick back up as free cash flow expands.
It's been a long road for IBM over the past decade as the century-old company rejiggered itself for a cloud-first, AI-heavy world. The hard part now appears to be over, as IBM's portfolio of products and services is aligned with these two growth opportunities. If IBM can maintain its revenue and free cash flow growth, it won't be long before it starts carving out new all-time highs for the first time in more than a decade.
Should you invest $1,000 in International Business Machines right now?
Before you buy stock in International Business Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and International Business Machines wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Timothy Green has positions in International Business Machines. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends International Business Machines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of technology giant International Business Machines (NYSE: IBM) have bounced back from their pandemic-era lows, but the stock remains down about 21% from its all-time high reached more than a decade ago. While the company has made plenty of acquisitions as well, notably the $34 billion purchase of Red Hat in 2019, these actions have shifted IBM's focus to its best growth opportunities and away from slow-growing legacy businesses. If IBM can maintain its revenue and free cash flow growth, it won't be long before it starts carving out new all-time highs for the first time in more than a decade.
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Like its hybrid cloud platform, Watsonx isn't tied to IBM's own cloud. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and International Business Machines wasn't one of them. The Motley Fool recommends International Business Machines.
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A slew of strategic partnerships struck in the past couple of years, including one with AWS that brought IBM's software to the leading cloud platform, allows the consulting arm to mix IBM products more easily with products from partners. While IBM's revenue won't grow much faster than the mid-single-digit percentage the company is targeting as part of the mid-term model it rolled out in 2021, free cash flow can grow faster as margins improve. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and International Business Machines wasn't one of them.
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The company is going after both through its software and consulting businesses. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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19134a0b-fe58-41d5-b1ec-b8a70389c94d
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712218.0
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2023-12-13 00:00:00 UTC
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Bull of the Day: Abercrombie & Fitch (ANF)
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https://www.nasdaq.com/articles/bull-of-the-day%3A-abercrombie-fitch-anf
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Abercrombie & Fitch Co. ANF is hitting the retail sweet spot with teens and 20-somethings. This Zacks Rank #1 (Strong Buy) recently raised its full year sales growth target.
Abercrombie & Fitch is a specialty retailer of apparel and accessories for men, women and children. It operates 750 stores under 5 brands, including Abercrombie & Fitch, abercrombie kids, Hollister, Gilly Hicks and Social Tourist, in North America, Europe, Asia and the Middle East. It also operates e-commerce sites for each of those brands.
A Big Earnings Beat in the Fiscal Third Quarter
On Nov 21, 2023, Abercrombie & Fitch reported its fiscal third quarter 2023 results and crushed the Zacks Consensus by 60.5%. Earnings were $1.83 versus the consensus of just $1.14. It was the third big beat in a row.
Net sales jumped 20% to $1.1 billion year-over-year with the Abercrombie brands were up 30% and the Hollister brands gained 11%. Hollister gains were due to back-to-school assortment which resonated with the teen customer.
By segment, sales were up 22% in the Americas, 14% in EMEA and 13% in APAC.
Comparable sales, an important metric for retailers, were also strong, up 16% from last year. Comps were up 26% at Abercrombie brands and 7% at Hollister.
Inventory, which had been an issue last year as the supply chain was still in flux, is lower this year. Inventories as of Oct 28, 2023, fell 20% to $595 million compared to Oct 29, 2022.
Gross profit was up 570 basis points to 64.9% from last year due to 250 basis points from year-over-year AUR growth, about 200 basis points from lower freight costs and 200 basis points due to lower inventory write downs. However, the benefits were partially offset by 80 basis points in higher raw material costs.
As of Oct 28, 2023, Abercrombie had cash and equivalents of $649 million, up from $257 million as of Oct 29, 2022.
Bullish Fourth Quarter Outlook
With the holiday season in full swing, Abercrombie is feeling confident its assortment is resonating. It expects net sales growth to be up low double-digits compared to the year ago quarter, to $1.2 billion. That includes the benefit of 375 basis points from the 53rd financial reporting week.
Operating margin is forecast in the range of 12% to 14% compared to 7.7% in Q4 2022 driven by higher gross profit rate on lower freight costs and higher AURs.
Analysts Raise Fiscal 2024 and 2025 Earnings Estimates
After a third big beat in a row, the analysts are feeling bullish about the full year. 6 estimates have been revised higher since the earnings report, including 1 in the last week, for fiscal 2024. The Zacks Consensus has jumped to $5.74 from $4.43 during that time.
That is huge growth compared to last year of 2196% as the company only made $0.25 in fiscal 2023.
Analysts expect the good times to continue, with 6 estimates higher for fiscal 2025 in the last 30 days as well. It has pushed the Zacks Consensus up to this year's level, at $5.75.
Image Source: Zacks Investment Research
Shares Soar to 5-Year Highs
What recession? Abercrombie is one of the hottest stocks of 2023, with shares up 253% year-to-date to new 5-year highs. That is crushing the return of the S&P 500 and ranks up there with NVIDIA's return this year.
Image Source: Zacks Investment Research
Yet, the stock is still cheap, with a forward P/E of just 14.2. It doesn't pay a dividend.
For those looking for a red-hot retailer with rising earnings estimates, Abercrombie should be on your short 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
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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?
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This Zacks Rank #1 (Strong Buy) recently raised its full year sales growth target. Gross profit was up 570 basis points to 64.9% from last year due to 250 basis points from year-over-year AUR growth, about 200 basis points from lower freight costs and 200 basis points due to lower inventory write downs. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It operates 750 stores under 5 brands, including Abercrombie & Fitch, abercrombie kids, Hollister, Gilly Hicks and Social Tourist, in North America, Europe, Asia and the Middle East. On Nov 21, 2023, Abercrombie & Fitch reported its fiscal third quarter 2023 results and crushed the Zacks Consensus by 60.5%. Gross profit was up 570 basis points to 64.9% from last year due to 250 basis points from year-over-year AUR growth, about 200 basis points from lower freight costs and 200 basis points due to lower inventory write downs.
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A Big Earnings Beat in the Fiscal Third Quarter On Nov 21, 2023, Abercrombie & Fitch reported its fiscal third quarter 2023 results and crushed the Zacks Consensus by 60.5%. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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de724381-f00c-4a61-bcf0-1717c1302c71
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712219.0
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2023-12-13 00:00:00 UTC
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1 Magnificent Way to Gain Exposure to Cathie Wood's Top Artificial Intelligence (AI) Picks
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https://www.nasdaq.com/articles/1-magnificent-way-to-gain-exposure-to-cathie-woods-top-artificial-intelligence-ai-picks
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Artificial intelligence (AI) is, without a doubt, one of the most exciting technology trends right now. The global AI market is about $150 billion in size in 2023 but is expected to reach more than $1.3 trillion by 2030. It's fair to say that this will create some incredible investment opportunities along the way.
However, it can be difficult to figure out which companies stand to benefit the most from AI. Plus, many of the stocks in this group can be extremely volatile. If you're looking to invest in AI but don't feel comfortable choosing individual stocks, then an exchange-traded fund (ETF), like the Ark Innovation ETF (NYSEMKT: ARKK), could be the way to go.
A collection of top AI businesses
Cathie Wood's Ark Innovation ETF isn't specifically focused on artificial intelligence stocks, but that's certainly where a lot of the innovation in the world is taking place right now. While you won't get a portfolio of AI-specific companies like chipmakers, software giants, and other such direct plays on the development of AI technology, you will get a collection of businesses that could greatly benefit as the technology evolves.
With that in mind, a quick look at the fund's top holdings shows that there are big implications for AI. Here are the 10 largest holdings of the Ark Innovation ETF, as of Dec. 11:
COMPANY (TICKER SYMBOL)
PERCENTAGE OF PORTFOLIO
Coinbase
11.1%
Roku (NASDAQ: ROKU)
8.4%
UiPath
7.8%
Tesla
7.5%
Zoom Video Communications (NASDAQ: ZM)
7.1%
Block
6.2%
CRISPR Therapeutics
4.3%
Roblox
4.1%
Twilio
4%
Unity Software
3.3%
Data source: Ark Funds. Fund weightings rounded to the nearest 0.1%.
Just to name an example, Roku, which is the ETF's second-largest investment, uses AI to make sure advertisements reach their target audiences on the Roku Channel and give personalized content recommendations based on users' previous viewing behavior. Zoom, another top-five holding of the Ark Innovation ETF, has developed several productivity tools using AI, such as Zoom Revenue Accelerator, Zoom Virtual Agent, and the Zoom AI Companion digital assistant.
I could go on, and the reality is that virtually all of the companies that make up the Ark Innovation ETF already use or are developing ways to incorporate AI technology into their businesses.
Important details to know about the Ark Innovation ETF
According to its prospectus, the Ark Innovation ETF typically holds between 35 and 55 different stocks. As of this writing, it has a total of 34. However, as you can see from the list of its top 10 holdings (which make up a combined 64% of the portfolio), it's rather concentrated in its largest positions.
The fund has a total of $5.8 billion in assets, as of Dec. 11, and can be purchased just like any stock on a per-share basis through your broker.
Finally, it's important to mention the fees involved. All exchange-traded funds charge fees, which are known as the expense ratio and are expressed as a percentage of the fund's assets. The Ark Innovation ETF charges a 0.75% expense ratio, which implies that for every $1,000 you have in the fund, you'll pay $7.50 in investment fees. To be clear, this isn't a fee you actually have to pay -- it will be reflected in the fund's performance.
A 0.75% expense ratio is a bit on the high end for an ETF, but keep in mind that most ETFs are passively managed index funds. The Ark Innovation ETF is an actively managed fund and highly specialized, and this expense ratio is on par with similar actively managed funds.
The bottom line is that if you're looking for a way to invest in the AI revolution but aren't comfortable with picking individual stocks, the Ark Innovation ETF could be a great way to get exposure to some of the companies that could benefit tremendously as the technology grows.
Should you invest $1,000 in Ark ETF Trust-Ark Innovation ETF right now?
Before you buy stock in Ark ETF Trust-Ark Innovation ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ark ETF Trust-Ark Innovation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Matthew Frankel, CFP® has positions in Block and Roblox. The Motley Fool has positions in and recommends Block, CRISPR Therapeutics, Coinbase Global, Roblox, Roku, Tesla, Twilio, UiPath, Unity Software, and Zoom Video 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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I could go on, and the reality is that virtually all of the companies that make up the Ark Innovation ETF already use or are developing ways to incorporate AI technology into their businesses. The Ark Innovation ETF charges a 0.75% expense ratio, which implies that for every $1,000 you have in the fund, you'll pay $7.50 in investment fees. The Motley Fool has positions in and recommends Block, CRISPR Therapeutics, Coinbase Global, Roblox, Roku, Tesla, Twilio, UiPath, Unity Software, and Zoom Video Communications.
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Coinbase 11.1% Roku (NASDAQ: ROKU) 8.4% UiPath 7.8% Tesla 7.5% Zoom Video Communications (NASDAQ: ZM) 7.1% Block 6.2% CRISPR Therapeutics 4.3% Roblox 4.1% Twilio 4% Unity Software 3.3% Data source: Ark Funds. Before you buy stock in Ark ETF Trust-Ark Innovation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ark ETF Trust-Ark Innovation ETF wasn't one of them. The Motley Fool has positions in and recommends Block, CRISPR Therapeutics, Coinbase Global, Roblox, Roku, Tesla, Twilio, UiPath, Unity Software, and Zoom Video Communications.
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If you're looking to invest in AI but don't feel comfortable choosing individual stocks, then an exchange-traded fund (ETF), like the Ark Innovation ETF (NYSEMKT: ARKK), could be the way to go. Important details to know about the Ark Innovation ETF According to its prospectus, the Ark Innovation ETF typically holds between 35 and 55 different stocks. Before you buy stock in Ark ETF Trust-Ark Innovation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ark ETF Trust-Ark Innovation ETF wasn't one of them.
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The Ark Innovation ETF charges a 0.75% expense ratio, which implies that for every $1,000 you have in the fund, you'll pay $7.50 in investment fees. Should you invest $1,000 in Ark ETF Trust-Ark Innovation ETF right now? Before you buy stock in Ark ETF Trust-Ark Innovation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ark ETF Trust-Ark Innovation ETF wasn't one of them.
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2023-12-13 00:00:00 UTC
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This Warren Buffett Favorite Soared Nearly 50% This Year. Is It Too Late to Buy?
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https://www.nasdaq.com/articles/this-warren-buffett-favorite-soared-nearly-50-this-year.-is-it-too-late-to-buy
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Warren Buffett is known for picking the right stocks, and his choices have produced billions of dollars in returns and double-digit percentage gains over time. As chairman of Berkshire Hathaway, Buffett has delivered compound annual growth of more than 19% over 57 years. That's compared to 9.9% for the S&P 500. So, it's clear investors are right to pay close attention to the stocks he buys.
But Berkshire Hathaway actually doesn't own tons of stocks. There are only 45 names in the portfolio now -- and most of its value comes from just a few favorites. One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio.
And right now, Buffett has reason to be happy about this investment since Apple has climbed by almost 50% this year. But for investors who haven't yet bought Apple and would like to follow in Buffett's footsteps, is it too late? After such a gain, should you still buy this top stock?
Apple as a long-term investment
A look into the past shows us that Apple has proven its ability to be a great long-term investment. The company has increased earnings over time and has grown key financial metrics. High levels of free cash flow show us the company can afford to keep paying its dividends -- making Apple a player you can count on for passive income as well as share price growth.
AAPL Return on Invested Capital data by YCharts.
And its gains in return on invested capital show the company has been benefiting from its investments, indicating that Apple has deployed its cash wisely.
All of this is thanks to a stellar collection of products -- from the iPhone to the Apple Watch -- that have helped the company build a rock-solid brand -- one that consumers prefer and won't abandon for a rival. This brand strength is Apple's moat, and it's the reason it has been able to grow product revenue over the years and why growth is continuing today.
In its fiscal Q4 2023 (which ended Sept. 30), Apple's total installed base of devices reached an all-time high across products and geographic areas. And iPhone sales set a fiscal Q4 record. The company also set fiscal Q4 records in several countries across the globe.
Apple demonstrated in the quarter that its gains in revenue aren't just due to its established customers, but also to growth in new customers. About half of Mac and iPad buyers in the quarter were new to those products.
Apple's services business
So, the mix of brand strength, returning customers, and new customers should keep Apple's earnings climbing -- but something else may actually be its biggest growth driver. I'm talking about Apple's services business, which depends on those who use Apple devices and subscribe for access to digital content, cloud storage, and more.
Apple this year reached a level of more than 1 billion paid subscriptions. And this could be the element that will kick off a whole new era of growth at Apple, an era you probably won't want to miss. Services revenue reached a record high in the most recent quarter, and gains aren't likely to stop there. Apple has a huge subscriber base right now, and as it launches new services or boosts old ones, it can grow its revenue just with today's subscriber base -- but it's likely its subscriber base will expand too.
Finally, what's great about subscription revenue is it's recurrent. You may not buy a new iPhone often, but once you own one, you'll likely sign up for services that ensure Apple a regular stream of revenue.
Is Apple cheap?
All of this sounds great, but is Apple, after this year's gain, still worth the investment? Here, it's time to look at valuation. Apple trades for about 29 times forward earnings estimates, a lower ratio than many other growth stocks, and the shares look reasonable considering the company's track record and prospects.
AAPL PE Ratio (Forward) data by YCharts.
Yes, Apple shares have advanced quite a bit this year, and they probably won't continue upward at this pace without interruption. But they have what it takes to climb higher over time as consumers flock to Apple products, and their subscriptions progressively drive even more growth for the company year after year.
So, it isn't too late for you to follow billionaire investor Warren Buffett and pick up shares of this top-performing stock. Apple shares have plenty of room to run, and like Buffett, if you buy it and hold on, you may reap the rewards.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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High levels of free cash flow show us the company can afford to keep paying its dividends -- making Apple a player you can count on for passive income as well as share price growth. All of this is thanks to a stellar collection of products -- from the iPhone to the Apple Watch -- that have helped the company build a rock-solid brand -- one that consumers prefer and won't abandon for a rival. Apple trades for about 29 times forward earnings estimates, a lower ratio than many other growth stocks, and the shares look reasonable considering the company's track record and prospects.
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Apple's services business So, the mix of brand strength, returning customers, and new customers should keep Apple's earnings climbing -- but something else may actually be its biggest growth driver. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Tesla.
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Apple's services business So, the mix of brand strength, returning customers, and new customers should keep Apple's earnings climbing -- but something else may actually be its biggest growth driver. Apple trades for about 29 times forward earnings estimates, a lower ratio than many other growth stocks, and the shares look reasonable considering the company's track record and prospects. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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And right now, Buffett has reason to be happy about this investment since Apple has climbed by almost 50% this year. Services revenue reached a record high in the most recent quarter, and gains aren't likely to stop there. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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2023-12-13 00:00:00 UTC
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Will Apple Be a $4 Trillion Stock in 2024?
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https://www.nasdaq.com/articles/will-apple-be-a-%244-trillion-stock-in-2024
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) stock is having a good year despite analyst reservations. Shares are up 47% in 2023 and are within just a few percentage points of the all-time high it hit in July. The tech giant is also a member of the so-called Magnificent 7 group of stocks that drove the S&P 500‘s performance for the past year.
Because the S&P 500 is a weighted index, Apple’s performance still has a meaningful impact on returns. It accounts for 7.4% of the total, the largest amount of any component stock. The tech leader was the first company to cross the $3 trillion valuation threshold. Let’s see whether it can climb the next rung higher in 2024.
Apple’s Path to $3 Trillion
The saying “the first million dollars is the hardest” could apply to Apple, though you should add on a few zeros. Apple went public in 1980 and it took the company 38 years to become a trillion-dollar stock. It only took the iPhone maker two more years to achieve its next trillion dollars. Going to $3 trillion was a bit trickier, but it did so for the first time at the end of June. The next trillion might not be so easy.
Although Apple often surprises Wall Street with its sales figures, 2023 was admittedly a bit of a disappointment. The iPhone accounts for 52% of total sales and it hit record revenue in the fourth quarter, but growth was anemic. For the full year, in fact, revenue was down 2.8%. Every other product Apple sells was also lower year over year, including Macs, iPads, and wearables.
Apple’s lone bright spot was services where revenue was up 9%. Services, though, only account for 22% of sales. That’s way more than in past years and is the future growth lever of the company, but it wasn’t enough to offset weakness in the rest of Apple’s business.
Profits were also lower from last year though per-share earnings inched higher to $6.16 per share. Apple achieved that by buying back over a half million shares.
Quality at a Price
So there seems to be a disconnect between Apple’s actual business performance and its stock. The tech giant is soaring despite mediocre fundamentals. Its shares also trade at a substantial premium.
The stock goes for 26 times next year’s earnings and over 5 times its projected earnings growth rate. Where Apple earnings grew 15% annually over the past five years, Wall Street estimates they will only expand 6% a year going forward. It also trades at 7 times sales and 30x its free cash flow.
Paying up for quality is a viable strategy but does Apple’s slowing growth warrant it? Sales are only forecast to grow 3% and with anemic profit expansion, the market may not want to support such lofty valuations anymore.
Even so, there’s a reason Warren Buffett loves Apple. It occupies nearly half of Berkshire Hathaway‘s (NYSE:BRK-A)(NYSE:BRK-B) portfolio.
Buffett told shareholders, “Apple is different than the other businesses we own. It just happens to be a better business.”
It’s also a cash-generating machine with over $60 billion in cash and marketable securities. Investors can expect to see more of it returned to them in the form of more stock buybacks and dividend payments.
Multiple Paths Forward
I’m not certain Apple will hit a $4 trillion valuation next year. Slower sales and profit growth point to a meandering 2024. However, it would only require the stock to get to $255 or 32% above where it stands now. After this year’s performance, it’s not out of the question. Apple’s services business, artificial intelligence, and new Vision Pro headset are all wildcards that could cause sales to spike.
I think there is little question it will eventually get there and will probably do so before anyone else. Its substantial strengths make Apple a great stock to own no matter what its ultimate valuation is.
On the date of publication, Rich Duprey 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.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Will Apple Be a $4 Trillion Stock in 2024? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tech giant is also a member of the so-called Magnificent 7 group of stocks that drove the S&P 500‘s performance for the past year. That’s way more than in past years and is the future growth lever of the company, but it wasn’t enough to offset weakness in the rest of Apple’s business. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock is having a good year despite analyst reservations. The iPhone accounts for 52% of total sales and it hit record revenue in the fourth quarter, but growth was anemic. The stock goes for 26 times next year’s earnings and over 5 times its projected earnings growth rate.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock is having a good year despite analyst reservations. Apple went public in 1980 and it took the company 38 years to become a trillion-dollar stock. Where Apple earnings grew 15% annually over the past five years, Wall Street estimates they will only expand 6% a year going forward.
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The iPhone accounts for 52% of total sales and it hit record revenue in the fourth quarter, but growth was anemic. Profits were also lower from last year though per-share earnings inched higher to $6.16 per share. Multiple Paths Forward I’m not certain Apple will hit a $4 trillion valuation next year.
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2023-12-13 00:00:00 UTC
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Best Value Stocks to Buy for December 13th
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https://www.nasdaq.com/articles/best-value-stocks-to-buy-for-december-13th-1
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Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 13th:
Travelzoo TZOO: This internet media company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.
Travelzoo Price and Consensus
Travelzoo price-consensus-chart | Travelzoo Quote
Travelzoo has a price-to-earnings ratio (P/E) of 12.59, compared with 33.50 for the industry. The company possesses a Value Score of B.
Travelzoo PE Ratio (TTM)
Travelzoo pe-ratio-ttm | Travelzoo Quote
Vasta Platform Limited VSTA: This company that provides printed and digital solutions to private schools carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 2.6% over the last 60 days.
Vasta Platform Limited Price and Consensus
Vasta Platform Limited price-consensus-chart | Vasta Platform Limited Quote
Vasta Platform has a price-to-earnings ratio (P/E) of 20.31, compared with 20.54 for the S&P 500. The company possesses a Value Score of A.
Vasta Platform Limited PE Ratio (TTM)
Vasta Platform Limited pe-ratio-ttm | Vasta Platform Limited Quote
StoneCo Ltd. STNE: This fin-tech and software solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 3% over the last 60 days.
StoneCo Ltd. Price and Consensus
StoneCo Ltd. price-consensus-chart | StoneCo Ltd. Quote
StoneCo has a price-to-earnings ratio (P/E) of 20.30, compared with 20.54 for the S&P 500. The company possesses a Value Score of B.
StoneCo Ltd. PE Ratio (TTM)
StoneCo Ltd. pe-ratio-ttm | StoneCo Ltd. Quote
See the full list of top ranked stocks here.
Learn more about the Value 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
Vasta Platform Limited (VSTA) : Free Stock Analysis Report
Travelzoo (TZOO) : Free Stock Analysis 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 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?
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Vasta Platform Limited Price and Consensus Vasta Platform Limited price-consensus-chart | Vasta Platform Limited Quote Vasta Platform has a price-to-earnings ratio (P/E) of 20.31, compared with 20.54 for the S&P 500. The company possesses a Value Score of A. Vasta Platform Limited PE Ratio (TTM) Vasta Platform Limited pe-ratio-ttm | Vasta Platform Limited Quote StoneCo Ltd. STNE: This fin-tech and software solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 3% over the last 60 days. Click to get this free report Vasta Platform Limited (VSTA) : Free Stock Analysis Report Travelzoo (TZOO) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Value Score of B. Travelzoo PE Ratio (TTM) Travelzoo pe-ratio-ttm | Travelzoo Quote Vasta Platform Limited VSTA: This company that provides printed and digital solutions to private schools carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 2.6% over the last 60 days. The company possesses a Value Score of A. Vasta Platform Limited PE Ratio (TTM) Vasta Platform Limited pe-ratio-ttm | Vasta Platform Limited Quote StoneCo Ltd. STNE: This fin-tech and software solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 3% over the last 60 days. Click to get this free report Vasta Platform Limited (VSTA) : Free Stock Analysis Report Travelzoo (TZOO) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Value Score of B. Travelzoo PE Ratio (TTM) Travelzoo pe-ratio-ttm | Travelzoo Quote Vasta Platform Limited VSTA: This company that provides printed and digital solutions to private schools carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 2.6% over the last 60 days. The company possesses a Value Score of A. Vasta Platform Limited PE Ratio (TTM) Vasta Platform Limited pe-ratio-ttm | Vasta Platform Limited Quote StoneCo Ltd. STNE: This fin-tech and software solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 3% over the last 60 days. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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712223.0
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2023-12-13 00:00:00 UTC
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The S&P 500 Just Hit a Fresh 2023 High, but These 2 Stocks Are Still on Sale
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https://www.nasdaq.com/articles/the-sp-500-just-hit-a-fresh-2023-high-but-these-2-stocks-are-still-on-sale
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The stock market has been rather strong in 2023 after a weak 2022. Through Dec. 12, the S&P 500 benchmark index had risen by 21% for the year and is hovering at a new 52-week high.
Not all areas of the stock market have done quite so well. The financial sector is one that has underperformed the market, with a 7% gain so far this year, 14 percentage points below that of the S&P. There are some good reasons: Rising rates have made it tougher for brick-and-mortar banks to compete with online rivals for deposits; there are still widespread fears of a recession and rising loan defaults in 2024; and of course, many investors are still hesitant to pull the trigger on bank stocks after several high-profile bank failures earlier this year.
While these are some legitimate concerns for sure, the fact is that patient, long-term investors can find some excellent bargains in the banking industry right now. Here are two in particular that could be worth a closer look.
Buffett's favorite bank stock
Bank of America (NYSE: BAC) is an especially interesting case right now, with shares down by 7% in 2023 despite strong results from the business.
In the third quarter, Bank of America posted 3% year-over-year revenue growth and 11% higher earnings per share thanks to improved efficiency. And while some of its peers saw deposits decline due to the higher rates offered by online counterparts, Bank of America's $1.9 trillion deposit base slightly increased sequentially.
One of the biggest reasons investors are pessimistic about bank stocks is the fear that rising inflation, the end of pandemic-era loan forbearance, and other economic factors would lead to rising loan losses, but the data shows there is little reason to be alarmed. While Bank of America's net charge-off ratio has indeed ticked upward, it appears to be a normalization rather than a spike. In fact, the bank's net charge-offs remain below where they were in late 2019 before the pandemic and in a strong economy.
As of this writing, Bank of America trades for 94% of its book value (for context, the bank was trading for 160% of book in early 2022). The stock has a well-covered dividend yield of 3.1%, and management has done a great job of using excess capital to reduce the share count by more than 18% over the past five years. With excellent asset quality and a great cost of capital, it's not a surprise that Warren Buffett-led Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) recently dumped several other bank stocks but maintained Bank of America as one of its largest investments.
A regional bank -- sort of
Truist Financial (NYSE: TFC) is technically a regional bank in the sense that it only has branches in certain parts of the U.S., and its stock has been treated as such by investors who still have lingering fears from the regional banking turbulence earlier this year. Truist's stock is down by 20% year to date and trades for a 17% discount to its book value.
However, Truist isn't just a regional bank. For one thing, it's larger than many national banks and is one of the largest banks of any kind in the United States. With $543 billion in total assets, Truist is more than double the threshold to be considered a systemically important financial institution, or SIFI, which means that it has greater regulatory scrutiny than most banks.
Truist's recent results have been strong, and the bank is in the middle of a $750 million cost-saving initiative that should sustainably boost its profitability. And while there are fears about loan losses escalating throughout the industry, Truist's nonperforming loan ratio actually declined from Q2 levels.
Truist has a lot to like from a long-term perspective. In the meantime, it pays a 6.1% dividend yield, making it an excellent buy-and-hold candidate at these levels.
The bottom line
Both Bank of America and Truist are rock-solid financial institutions trading for a big discount due to economic and industry headwinds. And while there's no way to know whether rates will start to normalize soon or if the economy will have a "soft landing," signs are definitely pointing in that direction. Plus, from a long-term perspective, these banks are earning tons of money, have excellent leadership, and could produce market-beating returns for years to come.
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 11, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Matthew Frankel, CFP® has positions in Bank of America, Berkshire Hathaway, and Truist Financial. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, and Truist Financial. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock has a well-covered dividend yield of 3.1%, and management has done a great job of using excess capital to reduce the share count by more than 18% over the past five years. With $543 billion in total assets, Truist is more than double the threshold to be considered a systemically important financial institution, or SIFI, which means that it has greater regulatory scrutiny than most banks. The bottom line Both Bank of America and Truist are rock-solid financial institutions trading for a big discount due to economic and industry headwinds.
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With excellent asset quality and a great cost of capital, it's not a surprise that Warren Buffett-led Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) recently dumped several other bank stocks but maintained Bank of America as one of its largest investments. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, and Truist Financial.
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There are some good reasons: Rising rates have made it tougher for brick-and-mortar banks to compete with online rivals for deposits; there are still widespread fears of a recession and rising loan defaults in 2024; and of course, many investors are still hesitant to pull the trigger on bank stocks after several high-profile bank failures earlier this year. A regional bank -- sort of Truist Financial (NYSE: TFC) is technically a regional bank in the sense that it only has branches in certain parts of the U.S., and its stock has been treated as such by investors who still have lingering fears from the regional banking turbulence earlier this year. 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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There are some good reasons: Rising rates have made it tougher for brick-and-mortar banks to compete with online rivals for deposits; there are still widespread fears of a recession and rising loan defaults in 2024; and of course, many investors are still hesitant to pull the trigger on bank stocks after several high-profile bank failures earlier this year. With excellent asset quality and a great cost of capital, it's not a surprise that Warren Buffett-led Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) recently dumped several other bank stocks but maintained Bank of America as one of its largest investments. 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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712224.0
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2023-12-13 00:00:00 UTC
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UK Payments Regulator Proposes To Cap Cross-border Fees On Mastercard, Visa Cards
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DCOMP
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https://www.nasdaq.com/articles/uk-payments-regulator-proposes-to-cap-cross-border-fees-on-mastercard-visa-cards
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(RTTNews) - UK's Payment Systems Regulator or PSR provisionally proposed to introduce a price cap on cross-border interchange fees on credit and debit cards, mainly of U.S. payment tech majors Mastercard Inc. and Visa Inc. With this, the regulator aims to protect UK businesses from overpaying on these interchange fees.
PSR, which published the interim report for its market review into cross-border interchange fees, said it has set out its provisional concerns that Mastercard and Visa have likely raised these fees to an unduly high level in online retail payments between the UK and the European Economic Area or EEA.
An interchange fee is what acquirers pay to issuers each time a card is used to buy goods or services. According to the regulator, UK businesses pay cross-border interchange fees each time a Mastercard or Visa debit or credit cards issued in the EEA, is used for online retail transactions with UK businesses.
Visa and Mastercard have increased the interchange fees on online purchases made by EEA consumers at UK businesses and vice versa fivefold. For debit cards, this has been raised to 1.15% from 0.2%, and for credit cards to 1.5% from 0.3%.
At present, Mastercard and Visa cards account for 9 out of 10 online transactions at UK businesses using EEA-issued cards, and UK businesses have little choice but to pay the increased costs.
Regarding its proposal to introduce a price cap on fees, PSR said it could be done in two stages, subject to its final report and further consultation on remedies.
This includes an initial time-limited cap of 0.2% for UK-European Economic Area or EEA consumer debit transactions and 0.3% for consumer credit transactions -where the transactions are made online at UK businesses.
Further, there could be a lasting cap on these interchange fees in the future, once further analysis has been carried out to establish an appropriate level.
PSR said it has been examining the level of these fees after Mastercard and Visa significantly raised some of these fees in 2021 and 2022, to understand whether they, or other factors, indicate the market is not working well.
In 2022 alone, the PSR estimates that UK businesses paid an extra 150 million pounds to 200 million pounds due to the fee increases.
The agency is now seeking views on its provisional findings and proposed approach to remedies to help inform the final report.
The window for giving feedback is open until January 31, 2024.
The PSR intends to publish its final report on cross-border interchange fees in the first quarter of fiscal 2024.
If the PSR concludes the market is not working well and it warrants intervention, this report will be followed by a consultation on the remedy package, it said.
The views and 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) - UK's Payment Systems Regulator or PSR provisionally proposed to introduce a price cap on cross-border interchange fees on credit and debit cards, mainly of U.S. payment tech majors Mastercard Inc. and Visa Inc. With this, the regulator aims to protect UK businesses from overpaying on these interchange fees. Visa and Mastercard have increased the interchange fees on online purchases made by EEA consumers at UK businesses and vice versa fivefold. Regarding its proposal to introduce a price cap on fees, PSR said it could be done in two stages, subject to its final report and further consultation on remedies.
|
(RTTNews) - UK's Payment Systems Regulator or PSR provisionally proposed to introduce a price cap on cross-border interchange fees on credit and debit cards, mainly of U.S. payment tech majors Mastercard Inc. and Visa Inc. With this, the regulator aims to protect UK businesses from overpaying on these interchange fees. According to the regulator, UK businesses pay cross-border interchange fees each time a Mastercard or Visa debit or credit cards issued in the EEA, is used for online retail transactions with UK businesses. This includes an initial time-limited cap of 0.2% for UK-European Economic Area or EEA consumer debit transactions and 0.3% for consumer credit transactions -where the transactions are made online at UK businesses.
|
(RTTNews) - UK's Payment Systems Regulator or PSR provisionally proposed to introduce a price cap on cross-border interchange fees on credit and debit cards, mainly of U.S. payment tech majors Mastercard Inc. and Visa Inc. With this, the regulator aims to protect UK businesses from overpaying on these interchange fees. PSR, which published the interim report for its market review into cross-border interchange fees, said it has set out its provisional concerns that Mastercard and Visa have likely raised these fees to an unduly high level in online retail payments between the UK and the European Economic Area or EEA. According to the regulator, UK businesses pay cross-border interchange fees each time a Mastercard or Visa debit or credit cards issued in the EEA, is used for online retail transactions with UK businesses.
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PSR, which published the interim report for its market review into cross-border interchange fees, said it has set out its provisional concerns that Mastercard and Visa have likely raised these fees to an unduly high level in online retail payments between the UK and the European Economic Area or EEA. According to the regulator, UK businesses pay cross-border interchange fees each time a Mastercard or Visa debit or credit cards issued in the EEA, is used for online retail transactions with UK businesses. For debit cards, this has been raised to 1.15% from 0.2%, and for credit cards to 1.5% from 0.3%.
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712225.0
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2023-12-13 00:00:00 UTC
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If You Invested $5,000 in Nvidia 10 Years Ago, This Is How Much You Would Have Today
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https://www.nasdaq.com/articles/if-you-invested-%245000-in-nvidia-10-years-ago-this-is-how-much-you-would-have-today
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Nvidia's (NASDAQ: NVDA) business has surged this year, as its chips became the preferred hardware for artificial intelligence (AI) developers worldwide.
Nvidia's years of dominance in graphics processing units (GPUs) made it well equipped to serve the entire AI market as its competitors scrambled to catch up. As a result, the company's stock and earnings have skyrocketed in 2023.
Those who bought shares in Nvidia at the start of the year have enjoyed immense growth. But what about those who invested a decade ago, when the chipmaker was still finding its footing in tech?
Data by YCharts
Nvidia's stock has hit record heights since 2013, as the company became dominant in gaming, data centers, and AI. The chart shows its share price climbed more than 12,000% in that period. So if you had invested $5,000 in Nvidia's stock 10 years ago, that investment would be worth around $625,000 today.
The company's meteoric rise is owed to success in multiple areas of tech. Let's take a look at Nvidia's biggest growth drivers and if the company can continue delivering significant gains in the coming years.
Nvidia's business has exploded alongside solid positions in gaming and data centers
Long before Nvidia became a prominent figure in AI, it took on the weighty task of expanding in a market that barely existed. The company was among the first to begin selling GPUs for the consumer sector, encouraging people to custom-build computers for specific needs.
The gaming community fully embraced this, using Nvidia's GPUs to build high-powered video game machines that offer far better performance than any game consoles on the market. According to Zion Market Research, the PC games industry was valued at $26 billion last year and is projected to hit about $32 billion by decade's end. Meanwhile, Nvidia holds an 87% market share in desktop GPUs, which are crucial to the growth of PC games.
Nvidia's success in video games has seen its gaming segment post revenue growth of 500% over the last decade. The gaming market has hit some roadblocks over the last two years as macroeconomic headwinds curbed consumer spending, but trends in 2023 are positive as we head into the new year.
The tech giant's achievements in gaming gave it the funds and resources to expand into other areas of tech, with Nvidia now primarily a data center firm. Growth in markets like cloud computing and AI has increased demand for chips, with Nvidia's data center revenue soaring more than 7,000% in the last 10 years and hitting net sales of $14 billion in its third quarter of 2024 (ending October 2023).
Gaming and data centers remain the two highest-earning parts of Nvidia's business, accounting for 95% of its revenue in its most recent quarter. So the question is, can these businesses continue to post stellar growth?
Can Nvidia continue to deliver significant gains over the next decade?
A market downturn saw the video gaming industry achieve sales worth $193 billion in 2022, a 5% decrease from the previous year. Nvidia was similarly affected, with revenue in its gaming segment falling 27% year over year between its fiscal 2022 and 2023.
However, easing inflation and reductions in manufacturing costs have improved Nvidia's gaming business and suggest the worst market declines are behind it. In Q3 2024, Nvidia posted gaming revenue growth of 81% year over year, hitting close to $3 billion.
Global Market Insights projects the GPU market to expand at a compound annual growth rate (CAGR) of 25% through 2032 as the industry continues to recover and expand.
However, Nvidia's biggest growth driver in the coming years will almost certainly be data centers. Q3 2024 saw data center revenue soar 279% year over year, massively profiting from increased AI GPU sales. The AI market is expected to develop at a CAGR of 37% through 2030, indicating chip demand is only likely to continue rising.
Data by YCharts
The table shows Nvidia's earnings could climb to $23 per share in fiscal 2026. That figure, multiplied by its forward price-to-earnings ratio of 39, would yield a stock price of $897 and deliver growth of 84% from its current position.
As a result, a $5,000 investment in Nvidia today could be worth $9,200 in just a few years. So it could be worth investing in this chipmaker now to potentially see big gains over the long term.
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
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nvidia's (NASDAQ: NVDA) business has surged this year, as its chips became the preferred hardware for artificial intelligence (AI) developers worldwide. Nvidia's years of dominance in graphics processing units (GPUs) made it well equipped to serve the entire AI market as its competitors scrambled to catch up. Growth in markets like cloud computing and AI has increased demand for chips, with Nvidia's data center revenue soaring more than 7,000% in the last 10 years and hitting net sales of $14 billion in its third quarter of 2024 (ending October 2023).
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Let's take a look at Nvidia's biggest growth drivers and if the company can continue delivering significant gains in the coming years. Growth in markets like cloud computing and AI has increased demand for chips, with Nvidia's data center revenue soaring more than 7,000% in the last 10 years and hitting net sales of $14 billion in its third quarter of 2024 (ending October 2023). Q3 2024 saw data center revenue soar 279% year over year, massively profiting from increased AI GPU sales.
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Nvidia's business has exploded alongside solid positions in gaming and data centers Long before Nvidia became a prominent figure in AI, it took on the weighty task of expanding in a market that barely existed. In Q3 2024, Nvidia posted gaming revenue growth of 81% year over year, hitting close to $3 billion. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them.
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Nvidia's success in video games has seen its gaming segment post revenue growth of 500% over the last decade. In Q3 2024, Nvidia posted gaming revenue growth of 81% year over year, hitting close to $3 billion. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them.
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2466d4f3-bb05-45e2-a126-ecf5e10a57fe
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712226.0
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2023-12-13 00:00:00 UTC
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My 4 Top Growth Stocks to Buy in December
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DCOMP
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https://www.nasdaq.com/articles/my-4-top-growth-stocks-to-buy-in-december
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nan
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nan
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Fool.com contributor Parkev Tatevosian reviews his top four growth stocks to buy in December, updates the performances, and provides analysis.
*Stock prices used were the afternoon prices of Dec. 10, 2023. The video was published on Dec. 12, 2023.
Should you invest $1,000 in Zoom Video Communications right now?
Before you buy stock in Zoom Video 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 Zoom Video 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
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign, Fiverr International, Nvidia, and Zoom Video Communications. The Motley Fool recommends the following options: long January 2024 $60 calls on DocuSign. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian reviews his top four growth stocks to buy in December, updates the performances, and provides analysis. The 10 stocks that made the cut could produce monster returns in the coming years. The Motley Fool has positions in and recommends DocuSign, Fiverr International, Nvidia, and Zoom Video Communications.
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Before you buy stock in Zoom Video 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 Zoom Video Communications wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign, Fiverr International, Nvidia, and Zoom Video Communications.
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Before you buy stock in Zoom Video 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 Zoom Video Communications wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign, Fiverr International, Nvidia, and Zoom Video Communications.
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Before you buy stock in Zoom Video 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 Zoom Video Communications wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign, Fiverr International, Nvidia, and Zoom Video Communications.
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90ac7729-7bb3-4f1c-9d90-3c5ee5f7d6a6
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712227.0
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2023-12-13 00:00:00 UTC
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Pfizer shares sink on weak 2024 revenue, profit forecasts
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DCOMP
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https://www.nasdaq.com/articles/pfizer-shares-sink-on-weak-2024-revenue-profit-forecasts
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nan
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nan
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Adds details on Seagen and COVID product contributions in paragraphs 4, 5
Dec 13 (Reuters) - Pfizer PFE.N on Wednesday forecast 2024 revenue and profit below Wall Street expectations, sending its shares down 7% in premarket trading even as it raised cost-cut target by $500 million.
Sales of Paxlovid and the vaccine Pfizer makes with German partner BioNTech 22UAy.DE had boosted the company's revenue over the last two years.
But a drop in annual vaccination rates and demand for the treatments in 2023 have forced the company to launch a program in October to cut jobs and expenses to save at least $4 billion a year.
The company, which employs nearly 83,000 employees globally, in November cut 500 jobs at its Sandwich, Kent site in the UK.
Pfizer also expects to complete the $43 billion acquisition of cancer drugmaker Seagen on Thursday. Its products are expected to add $3.1 billion to revenue next year, with another $8 billion coming from sales of Pfizer's vaccine comirnaty and treatment Paxlovid for COVID-19.
The U.S. drugmaker expects its annual revenue to be in the range of $58.5 billion to $61.5 billion compared with analysts' average estimate of $63.17 billion, according to LSEG data.
The company also forecast adjusted profit in the range of $2.05 to $2.25 per share, lower than analysts' expectation of $3.16.
(Reporting by Leroy Leo in Bengaluru; Editing by Arun Koyyur)
((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on Seagen and COVID product contributions in paragraphs 4, 5 Dec 13 (Reuters) - Pfizer PFE.N on Wednesday forecast 2024 revenue and profit below Wall Street expectations, sending its shares down 7% in premarket trading even as it raised cost-cut target by $500 million. Sales of Paxlovid and the vaccine Pfizer makes with German partner BioNTech 22UAy.DE had boosted the company's revenue over the last two years. But a drop in annual vaccination rates and demand for the treatments in 2023 have forced the company to launch a program in October to cut jobs and expenses to save at least $4 billion a year.
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Its products are expected to add $3.1 billion to revenue next year, with another $8 billion coming from sales of Pfizer's vaccine comirnaty and treatment Paxlovid for COVID-19. The U.S. drugmaker expects its annual revenue to be in the range of $58.5 billion to $61.5 billion compared with analysts' average estimate of $63.17 billion, according to LSEG data. The company also forecast adjusted profit in the range of $2.05 to $2.25 per share, lower than analysts' expectation of $3.16.
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Adds details on Seagen and COVID product contributions in paragraphs 4, 5 Dec 13 (Reuters) - Pfizer PFE.N on Wednesday forecast 2024 revenue and profit below Wall Street expectations, sending its shares down 7% in premarket trading even as it raised cost-cut target by $500 million. Its products are expected to add $3.1 billion to revenue next year, with another $8 billion coming from sales of Pfizer's vaccine comirnaty and treatment Paxlovid for COVID-19. The U.S. drugmaker expects its annual revenue to be in the range of $58.5 billion to $61.5 billion compared with analysts' average estimate of $63.17 billion, according to LSEG data.
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But a drop in annual vaccination rates and demand for the treatments in 2023 have forced the company to launch a program in October to cut jobs and expenses to save at least $4 billion a year. Its products are expected to add $3.1 billion to revenue next year, with another $8 billion coming from sales of Pfizer's vaccine comirnaty and treatment Paxlovid for COVID-19. The U.S. drugmaker expects its annual revenue to be in the range of $58.5 billion to $61.5 billion compared with analysts' average estimate of $63.17 billion, according to LSEG data.
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25e2dff6-8ebd-433d-af59-7cba2706a44e
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712228.0
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2023-12-13 00:00:00 UTC
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Marvell Technology's Artificial Intelligence (AI) Success Continues Amid Enterprise Challenges
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DCOMP
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https://www.nasdaq.com/articles/marvell-technologys-artificial-intelligence-ai-success-continues-amid-enterprise
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nan
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nan
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In today's video, I discuss recent AI updates impacting Marvell Technology (NASDAQ: MRVL). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Dec. 12, 2023. The video was published on Dec. 12, 2023.
Should you invest $1,000 in Marvell Technology right now?
Before you buy stock in Marvell Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Marvell Technology 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
Jose Najarro has no position in any of the stocks mentioned. The Motley Fool recommends Marvell Technology. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's video, I discuss recent AI updates impacting Marvell Technology (NASDAQ: MRVL). Check out the short video to learn more, consider subscribing, and click the special offer link below. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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In today's video, I discuss recent AI updates impacting Marvell Technology (NASDAQ: MRVL). Before you buy stock in Marvell Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Marvell Technology wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jose Najarro has no position in any of the stocks mentioned.
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Before you buy stock in Marvell Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Marvell Technology wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jose Najarro has no position in any of the stocks mentioned.
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Before you buy stock in Marvell Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Marvell Technology wasn't one of them. The Motley Fool recommends Marvell Technology. Their opinions remain their own and are unaffected by The Motley Fool.
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1b9a2f59-fb4d-4b98-b2a6-cea1f2f3a4d3
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712229.0
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2023-12-13 00:00:00 UTC
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Where Is SoFi Heading in 2024? 3 Bold Predictions for Investors
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DCOMP
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https://www.nasdaq.com/articles/where-is-sofi-heading-in-2024-3-bold-predictions-for-investors
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nan
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nan
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SoFi (NASDAQ: SOFI) has been one of the best performing stocks of 2023. Despite the overall financial sector dramatically underperforming the S&P 500 index, SoFi's stock is up by 72% for the year as of Dec. 12.
It's not difficult to understand why the banking disruptor has performed so well for investors. The results from the business continue to exceed expectations quarter after quarter. Through the first three quarters of 2023, SoFi added more than 1.7 million members, the number of financial services products used by its members increased 50% year over year in the third quarter, and the company is expecting to reach profitability for the first time in the fourth quarter.
However, SoFi could be just getting started. It is showing its capabilities as a true banking disruptor -- not only serving niches like high-yield savings or low-cost personal loans but becoming a complete replacement for a branch-based banking relationship. With this in mind, here are three bold predictions I have for SoFi as we head into 2024.
Deposits will exceed the loan portfolio
Many investors don't realize this, but SoFi hasn't been a bank for very long. It only received a banking charter in January 2022 after an acquisition. Since that time, SoFi has grown its deposit base from zero to $15.7 billion in less than seven full quarters.
However, the bank has about $21.4 billion in total loans, and the difference is financed with debt. It is highly desirable for banks to have enough deposits to cover their loans, as deposits are typically the lowest-cost source of lending capital a bank can get. But with the outstanding banking momentum, my first bold prediction is that SoFi's deposit base will reach the level of its loan portfolio by the end of 2024.
SoFi will reach 13 million members
SoFi ended the third quarter with 6.96 million members, 717,000 of which were added during the quarter. Assuming a similar growth rate in the fourth quarter, we can estimate that the company will end the year with about 7.7 million members.
CEO Anthony Noto has said that the bank will add at least 1 million members per quarter in 2024, which would translate to about 11.7 million by the end of the year. But I think SoFi's stellar marketing, user-friendly platform, and the network effect developing around its brand will result in even better growth than management's optimistic predictions. My bold prediction is that SoFi will end 2024 with at least 13 million total members on its platform.
Profits will be even greater than expected
SoFi's management has said (and reiterated several times) that it expects to achieve GAAP profitability in the fourth quarter. While management hasn't given 2024 guidance yet, the consensus analyst estimate is for full-year earnings of $0.06 per share on $2.55 billion in revenue. However, I think that if SoFi can continue to outperform expectations for growth of its business, it could handily surpass both of these as well.
Lots of execution risk ahead
To be sure, these are meant to be bold predictions. And SoFi has quite a bit of execution risk ahead of it. But the company has already established a clear pattern of exceeding even the most optimistic expectations and has done an excellent job of navigating an uncertain economic climate. Growth has been impressive so far, but I think there could be far more for SoFi than most investors expect.
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 S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Matthew Frankel, CFP® 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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But with the outstanding banking momentum, my first bold prediction is that SoFi's deposit base will reach the level of its loan portfolio by the end of 2024. But I think SoFi's stellar marketing, user-friendly platform, and the network effect developing around its brand will result in even better growth than management's optimistic predictions. But the company has already established a clear pattern of exceeding even the most optimistic expectations and has done an excellent job of navigating an uncertain economic climate.
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Through the first three quarters of 2023, SoFi added more than 1.7 million members, the number of financial services products used by its members increased 50% year over year in the third quarter, and the company is expecting to reach profitability for the first time in the fourth quarter. SoFi will reach 13 million members SoFi ended the third quarter with 6.96 million members, 717,000 of which were added during the quarter. 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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Through the first three quarters of 2023, SoFi added more than 1.7 million members, the number of financial services products used by its members increased 50% year over year in the third quarter, and the company is expecting to reach profitability for the first time in the fourth quarter. SoFi will reach 13 million members SoFi ended the third quarter with 6.96 million members, 717,000 of which were added during the quarter. 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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The results from the business continue to exceed expectations quarter after quarter. My bold prediction is that SoFi will end 2024 with at least 13 million total members on its platform. 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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83867051-b6da-4db9-8aef-55432cacee95
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712230.0
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2023-12-13 00:00:00 UTC
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4 Stocks Trading Near 52-Week High With More Upside Potential
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DCOMP
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https://www.nasdaq.com/articles/4-stocks-trading-near-52-week-high-with-more-upside-potential-0
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nan
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nan
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Investors generally consider 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as JAKKS Pacific JAKK, GIII Apparel Group GIII, Brinker International EAT and CNA Financial CNA are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Setting the Right Filters
We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.
Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings as well as sales, ensuring the continuation of their rally for some time.
Current Price/52 Week High >= .80
This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.8 implies the stock is trading within 20% of its 52-week high range.
% Change Price – 4 Weeks > 0
It ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 0
This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed
The lower, the better.
P/E using F(1) Estimate <= XIndMed
This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.
One-Year EPS Growth F(1)/F(0) >= XIndMed
This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.
Zacks Rank =1
No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 5
This parameter will help screen stocks that are trading at $5 or higher.
Volume – 20 days (shares) >= 100000
The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.
Here are our four picks of the 14 stocks that made it through the screen:
JAKKS Pacific is a multi-brand company that has been designing and marketing a broad range of toys and consumer products since 1995. The company is capitalizing on its well-established global presence, emphasis on inventive approaches, and partnerships with renowned brands and film franchises.
We consider the company’s ability to successfully identify, close and integrate acquisitions to be one of its primary competitive advantages. Meanwhile, it has collaborations with Disney, Skechers, Nickelodeon, Cabbage Patch Kids and Chico to manufacture toys and merchandise related to these brands. JAKK focuses on expanding its reach to include prominent accounts such as Macy's and Amazon in the United States and Sainsbury's in the U.K.
The Zacks Consensus Estimate for JAKK’s 2023 earnings has moved north by 13.9% to $5.17 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 61.8%.
G-III Apparel Group is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. G-III Apparel’s strategic priorities include driving power brands across categories, enhancing its portfolio via ownership of brands and licensing opportunities, expanding its global reach, maximizing omnichannel capabilities and scaling the private label business.
G-III Apparel has also been making progress on rightsizing the inventory. Management remains optimistic about the company’s diversified portfolio of key brands, namely DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, Nautica and Halston.
The Zacks Consensus Estimate for GIII’s fiscal 2024 earnings has increased by 15.9% to $3.79 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 541.81%.
Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. Brinker remains steadfast in its goal to drive traffic and revenues through a range of sales-building initiatives such as streamlining its menu and its innovation, strengthening its value proposition, improving food presentation and launching advertising campaigns.
The company is benefiting from improved menu pricing and a favorable menu item mix. Also, focus on various sales-building and expansion initiatives bodes well. The company continues to focus on Chili’s international expansion through development agreements with new and existing franchise partners. Chili’s turnaround strategies yielded positive results, with traffic and sales moving in a positive direction. The company emphasizes the brand's new restaurant development to drive growth. Chili’s has 11-12 new domestic openings and 19-24 new international openings scheduled for fiscal 2024. Brinker is also developing a more advanced CRM program to boost customer frequency.
The Zacks Consensus Estimate for EAT’s fiscal 2024 earnings has increased 0.8% to $3.57 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 223.6%.
CNA Financial is one of the most versatile property and casualty (P&C) insurers, maintaining combined ratio at favorable levels despite a tough operating environment. This, in turn, leads to underwriting profitability. It offers commercial P&C insurance products, mainly across the United States. CNA Financial remains well-poised to gain from a rise in new businesses, strong rate, lower net catastrophe losses, improved non-catastrophe current accident year underwriting results and higher net earned premium, which contribute to premium growth across its Specialty, Commercial and International segments.
CNA Financial’s fixed-income investment strategy with the highest allocations to diversified investment grade corporates as well as highly rated municipal securities should support investment results in the near term. CNA has been able to maintain the underlying combined ratio below 95 for 13 straight quarters. Through targeted portfolio management strategies, the company made significant progress in successfully repositioning the portfolio underwritten via Lloyd’s syndicate in its effort to improve the overall underwriting results of its international operation.
The Zacks Consensus Estimate for CNA’s 2023 earnings has increased 0.5% to $4.41 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 9.24%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
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.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance/.
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
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
CNA Financial Corporation (CNA) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. Management remains optimistic about the company’s diversified portfolio of key brands, namely DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, Nautica and Halston. Brinker remains steadfast in its goal to drive traffic and revenues through a range of sales-building initiatives such as streamlining its menu and its innovation, strengthening its value proposition, improving food presentation and launching advertising campaigns.
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Stocks such as JAKKS Pacific JAKK, GIII Apparel Group GIII, Brinker International EAT and CNA Financial CNA are expected to maintain their momentum and keep scaling new highs. CNA Financial remains well-poised to gain from a rise in new businesses, strong rate, lower net catastrophe losses, improved non-catastrophe current accident year underwriting results and higher net earned premium, which contribute to premium growth across its Specialty, Commercial and International segments. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks such as JAKKS Pacific JAKK, GIII Apparel Group GIII, Brinker International EAT and CNA Financial CNA are expected to maintain their momentum and keep scaling new highs. Current Price/52 Week High >= .80 This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Moreover, given the high price, investors often wonder if the stock is overpriced. Stocks such as JAKKS Pacific JAKK, GIII Apparel Group GIII, Brinker International EAT and CNA Financial CNA are expected to maintain their momentum and keep scaling new highs. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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712231.0
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2023-12-13 00:00:00 UTC
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Integra LifeSciences To Acquire Acclarent For $275 Mln Cash
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https://www.nasdaq.com/articles/integra-lifesciences-to-acquire-acclarent-for-%24275-mln-cash
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(RTTNews) - Medical technology firm Integra LifeSciences Holdings Corp. (IART) announced Wednesday that it has entered into a definitive agreement to acquire Acclarent, Inc. from Ethicon, Inc., a Johnson & Johnson MedTech company, for $275 million in cash at closing. This is subject to customary purchase price adjustments, and an additional $5 million upon the achievement of certain regulatory milestones.
Irvine, California-based Acclarent is an innovator and market leader in ENT procedures and upon closing, Integra will be one of the leading providers of ENT products and technologies.
The Acclarent portfolio includes its groundbreaking balloon technologies for sinus dilation and eustachian tube dilation as well as surgical navigation systems.
Acclarent will become part of Integra's Codman Specialty Surgical (CSS) division.
Integra expects to provide detailed guidance regarding the financial impacts of this transaction upon closing.
The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by the second quarter of 2024. Following the close, transition services, including transition manufacturing services, will be provided for up to four years.
The views and 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) - Medical technology firm Integra LifeSciences Holdings Corp. (IART) announced Wednesday that it has entered into a definitive agreement to acquire Acclarent, Inc. from Ethicon, Inc., a Johnson & Johnson MedTech company, for $275 million in cash at closing. This is subject to customary purchase price adjustments, and an additional $5 million upon the achievement of certain regulatory milestones. Integra expects to provide detailed guidance regarding the financial impacts of this transaction upon closing.
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Integra expects to provide detailed guidance regarding the financial impacts of this transaction upon closing. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by the second quarter of 2024. Following the close, transition services, including transition manufacturing services, will be provided for up to four years.
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(RTTNews) - Medical technology firm Integra LifeSciences Holdings Corp. (IART) announced Wednesday that it has entered into a definitive agreement to acquire Acclarent, Inc. from Ethicon, Inc., a Johnson & Johnson MedTech company, for $275 million in cash at closing. Irvine, California-based Acclarent is an innovator and market leader in ENT procedures and upon closing, Integra will be one of the leading providers of ENT products and technologies. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by the second quarter of 2024.
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(RTTNews) - Medical technology firm Integra LifeSciences Holdings Corp. (IART) announced Wednesday that it has entered into a definitive agreement to acquire Acclarent, Inc. from Ethicon, Inc., a Johnson & Johnson MedTech company, for $275 million in cash at closing. Irvine, California-based Acclarent is an innovator and market leader in ENT procedures and upon closing, Integra will be one of the leading providers of ENT products and technologies. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by the second quarter of 2024.
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2023-12-13 00:00:00 UTC
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Here’s What to Expect From Apple Stock in 2024
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https://www.nasdaq.com/articles/heres-what-to-expect-from-apple-stock-in-2024
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. However, this doesn’t guarantee similar results for Apple’s investors in 2024. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to.
It’s amazing to consider how quickly Apple’s market capitalization swelled from $2 trillion to $3 trillion. Getting Apple’s market cap to $4 trillion might not be so quick or easy. Ultimately, Apple’s shareholders should expect decent returns over the long run, but also need to acknowledge Apple’s challenges in the coming year.
Apple’s Shift Away From China
Relations between the U.S. and China were strained in 2023, and the situation might not get any better next year. This is relevant, as China has banned government officials from using Apple’s iPhones at work. Plus, the U.S. government has limited the exports of certain technology components to China.
Amid this tense backdrop, Apple is taking actions to shift its operations away from China. In particular, the company has its eye on India as a major source of components. According to The Wall Street Journal, Apple “and its suppliers aim to build over 50 million iPhones in India annually within the next two to three years,” followed by an “additional tens of millions of units after that.”
Furthermore, Apple is in the process of moving its iPad product-development operations from China to Vietnam. This may be a savvy move for Apple, especially if Sino-U.S. relations deteriorate during the coming quarters. Going forward, investors should keep tabs on Apple’s production costs to see if the company’s operational shifts have a positive long-term impact on Apple’s financials.
Serious Concerns for AAPL Stock Investors
There’s no denying that AAPL stock ran fast in 2023. Do Apple’s fundamentals justify the share-price move, though? It’s a question that one particular analysts wants investors to consider.
Barclays Senior Analyst Tim Long said that he struggles with Apple’s “multiple and valuation.” Not long ago, Apple’s trailing 12-month price-to-earnings ratio was above 31x, versus Apple’s five-year average P/E ratio of 26.42x.
Long observed that Apple’s near-term forecasts aren’t highly optimistic. “They’ve basically lowered guidance maybe four quarters in a row. They don’t give official guidance, but numbers have come down for four quarters in a row,” Long stated.
Along with that, Long sees soft demand for Apple’s products, and especially the iPhone, in China. Notably, Apple’s revenue from China fell 2.5% year over year in the company’s most recently reported quarter.
Be Cautiously Optimistic With AAPL Stock
You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally.
Apple has its share of challenges to overcome, but the company will probably continue to grow its market cap in the long term. Therefore, AAPL stock earns a “B” grade. Investors may choose to hold their Apple shares and possibly add to their positions, but there’s no need to over-invest in Apple right now.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Here’s What to Expect From Apple Stock in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They don’t give official guidance, but numbers have come down for four quarters in a row,” Long stated. Apple has its share of challenges to overcome, but the company will probably continue to grow its market cap in the long term. 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 Here’s What to Expect From Apple Stock in 2024 appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Serious Concerns for AAPL Stock Investors There’s no denying that AAPL stock ran fast in 2023. They don’t give official guidance, but numbers have come down for four quarters in a row,” Long stated.
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According to The Wall Street Journal, Apple “and its suppliers aim to build over 50 million iPhones in India annually within the next two to three years,” followed by an “additional tens of millions of units after that.” Furthermore, Apple is in the process of moving its iPad product-development operations from China to Vietnam. Barclays Senior Analyst Tim Long said that he struggles with Apple’s “multiple and valuation.” Not long ago, Apple’s trailing 12-month price-to-earnings ratio was above 31x, versus Apple’s five-year average P/E ratio of 26.42x. Be Cautiously Optimistic With AAPL Stock You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally.
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Apple’s Shift Away From China Relations between the U.S. and China were strained in 2023, and the situation might not get any better next year. It’s a question that one particular analysts wants investors to consider. Be Cautiously Optimistic With AAPL Stock You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally.
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2023-12-13 00:00:00 UTC
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Air Products (APD) Gains on High-Return Projects & Productivity
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https://www.nasdaq.com/articles/air-products-apd-gains-on-high-return-projects-productivity-0
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Air Products and Chemicals, Inc. APD is benefiting from investments in high-return projects, new business deals, acquisitions and productivity initiatives. However, the slowdown in Europe and China is a concern.
The company’s shares are down 17.8% over a year, compared with a 13.7% decline of its industry.
Image Source: Zacks Investment Research
Air Products, a Zacks Rank #3 (Hold) stock, is expected to gain from its investments in high-return industrial gas projects and productivity measures. Higher volumes and pricing are also likely to support its results.
The company remains focused on its gasification strategy and is executing its growth projects. These projects are expected to be accretive to earnings and cash flows. APD is realizing the benefits of the completion of the second phase of the Jazan project in Saudi Arabia. The company has a total available capacity to deploy (over fiscal 2023-2032) $32.5 billion in high-return investments aimed at creating significant shareholder value.
Air Products is also driving productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost improvement programs are likely to support its margins moving ahead.
The company also remains committed to maximize returns to shareholders leveraging strong balance sheet and cash flows. APD, earlier this year, increased its quarterly dividend by 8% to $1.75 per share from $1.62 per share. This marked the 41st straight year of dividend increase. The company expects to pay roughly $1.5 billion in dividends to shareholders in 2023.
However, the slowdown in China and Europe may affect the company’s business in these regions. The sluggish China economy might impact volumes in the Industrial Gases - Asia segment. A slower economic recovery in China and the softness in electronics may affect the segment’s volumes. Air Products is also seeing weak demand for merchant products in Europe. The lack of growth in industrial output in Europe is a concern for the near term.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 64% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current-year earnings has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained around 24% in the past year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares 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
Air Products and Chemicals, Inc. (APD) : 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 company has a total available capacity to deploy (over fiscal 2023-2032) $32.5 billion in high-return investments aimed at creating significant shareholder value. The company also remains committed to maximize returns to shareholders leveraging strong balance sheet and cash flows. 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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Air Products, a Zacks Rank #3 (Hold) stock, is expected to gain from its investments in high-return industrial gas projects and productivity measures. Air Products and Chemicals, Inc. Price and Consensus Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report Air Products and Chemicals, Inc. (APD) : 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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Air Products, a Zacks Rank #3 (Hold) stock, is expected to gain from its investments in high-return industrial gas projects and productivity measures. Air Products and Chemicals, Inc. Price and Consensus Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report Air Products and Chemicals, Inc. (APD) : 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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Air Products, a Zacks Rank #3 (Hold) stock, is expected to gain from its investments in high-return industrial gas projects and productivity measures. The stock is up around 64% 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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2023-12-13 00:00:00 UTC
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5 Stocks With Recent Price Strength for Sparkling Returns
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https://www.nasdaq.com/articles/5-stocks-with-recent-price-strength-for-sparkling-returns
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Wall Street has seen an impressive bull run in 2023 after a highly disappointing 2022. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have advanced 10.4%, 21% and 38.9%, respectively.
U.S. stock markets regained momentum in November after three consecutive months of decline. The momentum continues in December. Investors are more confident these days as a large section of market participants are expecting the Fed to be already through with its ongoing interest rate hike cycle.
The inflation rate has been steadily falling since June 2022. A recently released series of key economic data has clearly indicated that the U.S. economy is cooling while the labor market remains resilient. However, better-than-expected consumer spending has reduced the risk of a near-term recession.
The CME FedWatch tool currently shows a 97% probability that the central bank will keep the Fed Fund rate unchanged at the existing level of 5.25-5.5%. Moreover, 45% of respondents expect the first rate cut to be initiated in the March 2024 FOMC meeting.
Recently, several stocks have shown price strength. We have selected just five stocks likely to gain in the near term on the back of a favorable Zacks Rank. These companies are — Arcos Dorados Holdings Inc. ARCO, Ponce Financial Group Inc. PDLB, InterDigital Inc. IDCC, Limbach Holdings Inc. LMB and Merchants Bancorp MBIN.
Here’s How We Arrived at the Picks
We have primarily targeted stocks that have freshly been on a bull run. Stocks that have recently seen price strength have a high chance of carrying the momentum forward.
If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.
Here’s how you should create the screen to shortlist the current as well as the potential winners.
Screening Parameters:
Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.
Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the stock’s future performance.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.
Just these few criteria narrowed down the search from over 7,700 stocks to 23.
Let’s discuss five out of those 23 stocks:
Arcos Dorados operates as a franchisee of McDonald's with its operations divided in Brazil, North Latin America division, South Latin America and the Caribbean division. ARCO also runs quick-service restaurants in Latin America and the Caribbean.
Arcos Dorados has operations in territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela.
The stock price of Arcos Dorados has jumped 26.5% in the past four weeks. It has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.3% over the last 30 days.
Ponce Financial Group is a Minority Depository Institution, a Community Development Financial Institution and a certified Small Business Administration lender. PDLB’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans.
PDLB also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations and Federal Home Loan Bank stock.
The stock price of Ponce Financial Group has climbed 18.8% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved more than 100% over the last 60 days.
Interdigital is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. IDCC is engaged in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Furthermore, IDCC’s team of skilled engineers has expertise in major mobile connectivity as well as in technologies related to content delivery. Notably, InterDigital’s secure and scalable horizontal platform, oneMPOWER, enables businesses to launch and manage Internet of Things applications.
The stock price of Interdigital has surged 18.1% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.6% over the last 30 days.
Limbach Holdings provides building systems solutions in the United States. LMB engineers, constructs and services the mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems. LMB operates in two segments, namely, General Contractor Relationships and Owner Direct Relationships.
The stock price of Limbach Holdings has rallied 17.4% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 28.7% over the last 30 days.
Merchants Bancorp operates as a diversified bank holding company in the United States. MBIN operates through the Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments.
MBIN provides multi-family housing and health care facility financing, mortgage warehousing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking services, through its subsidiaries.
The stock price of Merchants Bancorp has advanced 16.8% in the past four weeks. It has expected earnings growth of 23% for the current year. The Zacks Consensus Estimate for the current year has improved 10.9% over the last 60 days.
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.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report
Ponce Financial Group, Inc. (PDLB) : Free Stock Analysis Report
Merchants Bancorp (MBIN) : 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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Arcos Dorados has operations in territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. IDCC is engaged in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. 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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These companies are — Arcos Dorados Holdings Inc. ARCO, Ponce Financial Group Inc. PDLB, InterDigital Inc. IDCC, Limbach Holdings Inc. LMB and Merchants Bancorp MBIN. MBIN operates through the Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report Ponce Financial Group, Inc. (PDLB) : Free Stock Analysis Report Merchants Bancorp (MBIN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PDLB also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations and Federal Home Loan Bank 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. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report Ponce Financial Group, Inc. (PDLB) : Free Stock Analysis Report Merchants Bancorp (MBIN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Interdigital is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. MBIN operates through the Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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d43131c8-acdb-4901-a931-fa3f31d85106
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712235.0
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2023-12-13 00:00:00 UTC
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Lockheed (LMT) Wins $443M Contract for Black Hawk Helicopter
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DCOMP
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https://www.nasdaq.com/articles/lockheed-lmt-wins-%24443m-contract-for-black-hawk-helicopter
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nan
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Lockheed Martin Corp.’s LMT business unit, Sikorsky, recently won a modification contract for the Black Hawk helicopter program. This deal has been awarded by the Army Contracting Command, Redstone Arsenal, AL.
Valued at $443 million, this contract is expected to be completed by Jun 30, 2027. Work related to this deal will be carried out in Stratford, CT.
What Favors Lockheed?
The tiff between Russia and Ukraine has compelled nations to increase their defense spending to fortify their defense structure against any sudden assault. Increased spending has been witnessed for defense arms and ammunition procurement. In this context, military helicopters that play an integral part in any defense landscape are likely to witness a surge in demand.
To this end, it is imperative to mention that U.S. military helicopters have gained prominence and significant traction lately due to advancements and integration of new tactical, logistical and other important features. Lockheed, being a prominent helicopter manufacturer, thus wins frequent contracts from the Pentagon and other U.S. allies for its combat-proven helicopter programs like Black Hawk.
Notably, LMT’s Black Hawk helicopter serves the U.S. military and the armed forces of 34 other countries worldwide as a tough, reliable utility helicopter. During the last 40 years, this aircraft has fought its way in and out of countless combat zones to deliver and extract troops, save lives as a MEDEVAC or casualty evacuation platform, provide critical supplies to troops, deliver emergency supplies during natural disasters, and perform as an aerial firefighter and border patroller.
Such remarkable features must have been ushering in helicopter contracts for LMT’s Black Hawk program, like the latest one. Such contract wins, in turn, should boost Lockheed’s revenue growth in the coming quarters.
LMT’s Prospects in Helicopter Market
Looking ahead, rising geopolitical and cross-border conflicts prevalent across the globe have forced nations to increase their defense spending toward procuring new aircraft and helicopters to enhance their aerial security. Per a report from the Mordor Intelligence firm, the global military rotorcraft market is likely to witness a CAGR of more than 4% during the 2023-2028 period.
Such a solid market prospect offers strong growth opportunities for Lockheed, with the company offering a solid portfolio for a handful of combat-proven helicopters. Impressively, more than 4,000 Black Hawk aircraft of all types are in service worldwide today. This surely reflects the solid demand that LMT’s Black Hawk helicopter program enjoys in the global military rotorcraft market.
Apart from Black Hawk, LMT’s Sikorsky unit includes helicopters like MH-60R Seahawk, HH-60W Combat Rescue helicopter, CH-53K, S-97 Raider and a few more. As the largest defense contractor in the United States and with a handful of combat-proven helicopters in its portfolio, LMT surely enjoys a competitive edge in the global rotorcraft market.
Peer Opportunities
Other renowned combat helicopter manufacturers that are likely to gain from the expanding global military rotorcraft market are Textron TXT, Airbus EADSY and Boeing BA.
Textron’s business unit, Textron Aviation Defense designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products are the Beechcraft T-6C trainer and the AT-6 Wolverine.
TXT boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for 2023 sales implies growth of 6.4% from the 2022 reported figure.
Airbus is one of the world's largest suppliers of advanced military helicopters. Its product portfolio includes the H135 combat helicopter, H145M helicopter, AS565 MBe, H160M, H175M, H215M, H225M and a few more.
EADSY boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for its 2023 sales implies growth of 12.9% from the year-ago reported figure.
Boeing’s Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker and T-7A Red Hawk. This segment also produces rotorcraft and rotary-wing programs such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.
BA boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for its 2023 sales implies an improvement of 15.7% from the 2022 reported figure.
Price Movement
In the past year, shares of Lockheed have lost 5.9% compared with the industry’s 8.8% decline.
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
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The only question is “Will you get into the right stocks early when their growth potential is greatest?”
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Textron Inc. (TXT) : Free Stock Analysis Report
Airbus Group (EADSY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To this end, it is imperative to mention that U.S. military helicopters have gained prominence and significant traction lately due to advancements and integration of new tactical, logistical and other important features. As the largest defense contractor in the United States and with a handful of combat-proven helicopters in its portfolio, LMT surely enjoys a competitive edge in the global rotorcraft market. Peer Opportunities Other renowned combat helicopter manufacturers that are likely to gain from the expanding global military rotorcraft market are Textron TXT, Airbus EADSY and Boeing BA.
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Such a solid market prospect offers strong growth opportunities for Lockheed, with the company offering a solid portfolio for a handful of combat-proven helicopters. This surely reflects the solid demand that LMT’s Black Hawk helicopter program enjoys in the global military rotorcraft market. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Lockheed, being a prominent helicopter manufacturer, thus wins frequent contracts from the Pentagon and other U.S. allies for its combat-proven helicopter programs like Black Hawk. This surely reflects the solid demand that LMT’s Black Hawk helicopter program enjoys in the global military rotorcraft market. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Such remarkable features must have been ushering in helicopter contracts for LMT’s Black Hawk program, like the latest one. Peer Opportunities Other renowned combat helicopter manufacturers that are likely to gain from the expanding global military rotorcraft market are Textron TXT, Airbus EADSY and Boeing BA. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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9c8af5ee-967f-42b1-802c-4b014b0ea26d
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712236.0
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2023-12-13 00:00:00 UTC
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Is Ally Financial a No-Brainer Dividend Stock for This Bull Market?
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DCOMP
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https://www.nasdaq.com/articles/is-ally-financial-a-no-brainer-dividend-stock-for-this-bull-market
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nan
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nan
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Markets have been volatile ever since the beginning of the global pandemic in March 2020. Stocks have gone on wild upward and downward rides, which can increase your stress as an investor. Today, stocks in the U.S. are closing in on all-time highs, signaling that we may be entering a new bull market. However, that does not mean you should go all in chasing the growth stocks that have soared 100% this year. Students of financial history know the market is bipolar and changes its mood on a dime.
One way to dampen the effects of volatility in your portfolio is to buy stocks with high dividend yields that give you a steady income stream. Ally Financial (NYSE: ALLY) has an attractive dividend yield of close to 4% and a history of raising its payout to shareholders. Let's see if this is a safe bet for investors looking for dividend stocks in the 2023 market rally.
Rising interest rates, falling car prices
Ally has a peculiar history. It used to be the financial arm of General Motors, but was spun out after the division took on bad mortgage loans during the financial crisis in 2008. As a separate business, Ally Financial still focuses on automotive lending but has added a second pillar to its operations: consumer banking. At the end of the last quarter, Ally had $140 billion in retail deposits, which it uses to fund car loans.
Smaller banks have had to significantly raise the interest rates they pay depositors due to the Federal Reserve rapidly hiking the benchmark federal funds rate to fight inflation. Ally is currently offering 4.25% interest on its savings accounts. The company has raised the interest rates on its car loans to mitigate this pressure, but there are still low-yielding loans sitting on its balance sheet from the last few years that won't get paid back for a year or two. This has narrowed the spread Ally earns from its banking operations, known as net interest margin (NIM).
On top of interest rate pressure, Ally is facing headwinds from falling used car prices, which decreases the recovery value the company can retain from delinquent loans. Used car prices have been falling since the end of 2021, which has inflicted pain on Ally's lending operations.
Despite these difficulties, Ally is still generating a profit. Over the past 12 months, it has posted net income of $1.2 billion. While this is off from a high of more than $2.5 billion two years ago, it shows that Ally has a resilient business model. Interest rate pressure is starting to subside with the Fed pausing interest rate increases for the time being, and the company will eventually replace the low-yielding loans on its balance sheet with a new set with higher yields. This indicates to me that Ally can widen its NIM -- and therefore net income -- in 2024 and 2025.
A long track record of growth
Over the longer term, Ally investors should have confidence its growth engine will continue. It has added retail banking customers for 58 straight quarters, which is the lifeblood of the banking business. More deposits mean more capacity for making automotive loans, all else equal. Ally has a fantastic track record of persuading people to use it for their consumer banking needs.
Today, Ally has more than 3 million deposit customers. With its online-only model that gives it lower overhead costs than traditional banks, Ally can offer higher interest rates for depositors. This has been the key reason for its consistent growth during the past decade. I see no reason this can't continue during the next decade.
Data source: YCharts
The stock has a good dividend, but keep an eye on management
Despite these competitive advantages, Ally stock has been beaten down in the last two years, likely due to concerns about rising interest rates and falling car prices. Its dividend yield is currently 4%, which is more than double the S&P 500's yield of 1.5%. The company has consistently raised its dividend, which has increased more than 100% in the past five years. From my seat, this makes the stock a great income play at current prices.
The one long-term concern for Ally is the number of executives that have left the company in recent years. Its chief executive officer, chief financial officer, and head of consumer and commercial banking have all departed in the past five quarters. While not the end of the world, changing executives can bring instability and a shift in strategy, which may lead to negative outcomes for the business. This is something investors should keep a close eye on in the years to come.
On the whole, Ally looks like a good stock to own for the long haul. The shares are cheap and the company has a banking operation set to keep growing. Buy this dividend grower and watch the income pile up in your account quarter after quarter.
Should you invest $1,000 in Ally Financial right now?
Before you buy stock in Ally Financial, consider this:
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Ally is an advertising partner of The Ascent, a Motley Fool company. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One way to dampen the effects of volatility in your portfolio is to buy stocks with high dividend yields that give you a steady income stream. On top of interest rate pressure, Ally is facing headwinds from falling used car prices, which decreases the recovery value the company can retain from delinquent loans. With its online-only model that gives it lower overhead costs than traditional banks, Ally can offer higher interest rates for depositors.
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Rising interest rates, falling car prices Ally has a peculiar history. Data source: YCharts The stock has a good dividend, but keep an eye on management Despite these competitive advantages, Ally stock has been beaten down in the last two years, likely due to concerns about rising interest rates and falling car prices. Before you buy stock in Ally Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ally Financial wasn't one of them.
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Data source: YCharts The stock has a good dividend, but keep an eye on management Despite these competitive advantages, Ally stock has been beaten down in the last two years, likely due to concerns about rising interest rates and falling car prices. Before you buy stock in Ally Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ally Financial wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Ally is an advertising partner of The Ascent, a Motley Fool company.
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As a separate business, Ally Financial still focuses on automotive lending but has added a second pillar to its operations: consumer banking. At the end of the last quarter, Ally had $140 billion in retail deposits, which it uses to fund car loans. Before you buy stock in Ally Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ally Financial wasn't one of them.
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023df95f-6e3d-4b0c-b139-604ed1d2a8b4
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712237.0
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2023-12-13 00:00:00 UTC
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US natgas prices hold near six-month low on record output, mild weather
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DCOMP
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https://www.nasdaq.com/articles/us-natgas-prices-hold-near-six-month-low-on-record-output-mild-weather
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nan
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By Scott DiSavino
Dec 13 (Reuters) - U.S. natural gas futures held near a six-month low on Wednesday on record output and forecasts for mild weather and lower heating demand next week than previously expected that should allow utilities to pull less gas from storage than usual through at least late December.
Analysts forecast there was currently around 7.8% more gas in storage than usual for this time of year. EIA/GASNGAS/POLL
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange (NYMEX) fell 1 cent, or 0.4%, to $2.301 per million British thermal units (mmBtu) at 9:16 a.m. EST (1416 GMT), putting the contract on track for its lowest close since June 12 for a second day in a row.
That kept the front-month in technically oversold territory with a Relative Strength Index (RSI) below 30 for a sixth day in a row for the first time since February.
The number of futures contracts traded on the NYMEX NG-TOT jumped to a 1.004 million on Dec. 11, its highest since March 2020.
But a lack of big price moves in recent weeks has cut historic or actual 30-day close-to-close futures volatility to 45.9%, the lowest since September 2021.
Historic daily volatility hit a record high of 177.7% in February 2022 and a record low of 7.3% in June 1991. Historic volatility has averaged 71.5% so far this year, versus a record high of 92.8% in 2022 and a five-year (2018-2022) average of 57.9%.
With record production and ample gas in storage, futures have been sending bearish signals for weeks that prices this winter (November-March) likely already peaked in November.
The premium of futures for 2029 NGCALYZ9 (five years out) over 2024 NGCALYZ4 rose to a record high for a fourth day in a row.
Analysts expect prices to climb in coming years as demand for the fuel grows as new U.S. liquefied natural gas (LNG) export plants enter service in the U.S., Canada and Mexico.
For 2024, however, some analysts have reduced their U.S. demand forecasts after Exxon MobilXOM.N delayed the start of first LNG production at its 2.3-billion-cubic-feet-per-day (bcfd) Golden Pass export plant under construction in Texas to the first half of 2025 from the second half of 2024.
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 108.4 bcfd so far in December from a record 108.3 bcfd in November.
Meteorologists projected the weather would remain warmer than normal through at least Dec. 28.
With the weather remaining mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would slide from 125.0 bcfd this week to 122.2 bcfd next week. The forecast for this week was higher than LSEG's outlook on Tuesday, while its forecast for next week was lower.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.6 bcfd so far in December, up from a record 14.3 bcfd in November.
The U.S. is on track to become the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar. Much higher global prices have fed demand for U.S. exports due in part to supply disruptions and sanctions linked to the war in Ukraine.
Gas was trading around $11 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe TRNLTTFMc1 and $16 at the Japan Korea Marker (JKM) in Asia JKMc1. NG/EU
Week ended Dec 8 Forecast
Week ended Dec 1 Actual
Year ago Dec 8
Five-year average
Dec 8
U.S. weekly natgas storage change (bcf):
-48
-117
-46
-81
U.S. total natgas in storage (bcf):
3,671
3,719
3,419
3,404
U.S. total storage versus 5-year average
7.8%
6.7%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.30
2.31
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
11.22
11.02
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
15.62
15.75
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
320
317
475
387
411
U.S. GFS CDDs
1
2
3
5
4
U.S. GFS TDDs
321
319
378
392
415
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
108.1
108.8
109.0
102.8
94.2
U.S. Imports from Canada8
8.8
8.6
8.9
10.0
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
116.9
117.5
117.9
112.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
3.3
3.4
3.4
3.4
3.2
U.S. Exports to Mexico
3.9
3.9
4.8
5.2
5.0
U.S. LNG Exports
14.5
14.6
14.0
12.6
8.6
U.S. Commercial
13.2
13.9
13.0
15.4
14.6
U.S. Residential
20.9
22.5
20.7
25.8
24.7
U.S. Power Plant
33.2
33.7
33.7
30.4
28.6
U.S. Industrial
24.3
24.7
24.3
24.7
25.0
U.S. Plant Fuel
5.3
5.4
5.4
5.3
5.3
U.S. Pipe Distribution
2.7
2.7
2.7
2.7
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
99.8
103.1
99.9
104.4
101.2
Total U.S. Demand
121.4
125.0
122.2
125.6
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
83
82
83
107
81
Jan-Jul
81
82
77
102
79
Oct-Sep
82
83
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 15
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Wind
13
12
10
11
9
Solar
3
3
3
3
3
Hydro
5
5
6
6
6
Other
2
2
2
2
2
Petroleum
Natural Gas
40
40
42
39
42
Coal
16
17
17
16
17
Nuclear
21
21
20
22
21
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.37
2.39
Transco Z6 New York NG-CG-NY-SNL
2.10
2.07
PG&E Citygate NG-CG-PGE-SNL
4.04
4.02
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.86
1.82
Chicago Citygate NG-CG-CH-SNL
2.16
2.13
Algonquin Citygate NG-CG-BS-SNL
4.00
3.08
SoCal Citygate NG-SCL-CGT-SNL
4.15
3.78
Waha Hub NG-WAH-WTX-SNL
2.00
1.57
AECO NG-ASH-ALB-SNL
1.22
1.17
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
38.25
34.25
PJM West EL-PK-PJMW-SNL
39.50
48.50
Ercot North EL-PK-ERTN-SNL
21.00
23.25
Mid C EL-PK-MIDC-SNL
59.08
63.00
Palo Verde EL-PK-PLVD-SNL
43.25
45.50
SP-15 EL-PK-SP15-SNL
49.00
51.75
(Reporting by Scott DiSavino, Editing by Nick Zieminski)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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EIA/GASNGAS/POLL Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange (NYMEX) fell 1 cent, or 0.4%, to $2.301 per million British thermal units (mmBtu) at 9:16 a.m. EST (1416 GMT), putting the contract on track for its lowest close since June 12 for a second day in a row. With record production and ample gas in storage, futures have been sending bearish signals for weeks that prices this winter (November-March) likely already peaked in November. Analysts expect prices to climb in coming years as demand for the fuel grows as new U.S. liquefied natural gas (LNG) export plants enter service in the U.S., Canada and Mexico.
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With the weather remaining mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would slide from 125.0 bcfd this week to 122.2 bcfd next week. NG/EU Week ended Dec 8 Forecast Week ended Dec 1 Actual Year ago Dec 8 Five-year average Dec 8 U.S. weekly natgas storage change (bcf): -48 -117 -46 -81 U.S. total natgas in storage (bcf): 3,671 3,719 3,419 3,404 U.S. total storage versus 5-year average 7.8% 6.7% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.30 2.31 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 11.22 11.02 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 15.62 15.75 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 320 317 475 387 411 U.S. GFS CDDs 1 2 3 5 4 U.S. GFS TDDs 321 319 378 392 415 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.1 108.8 109.0 102.8 94.2 U.S. Imports from Canada8 8.8 8.6 8.9 10.0 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 116.9 117.5 117.9 112.8 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.3 3.4 3.4 3.4 3.2 U.S. Exports to Mexico 3.9 3.9 4.8 5.2 5.0 U.S. LNG Exports 14.5 14.6 14.0 12.6 8.6 U.S. Commercial 13.2 13.9 13.0 15.4 14.6 U.S. Consumption 99.8 103.1 99.9 104.4 101.2 Total U.S. Demand 121.4 125.0 122.2 125.6 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 83 82 83 107 81 Jan-Jul 81 82 77 102 79 Oct-Sep 82 83 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Week ended Nov 17 Wind 13 12 10 11 9 Solar 3 3 3 3 3 Hydro 5 5 6 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 40 40 42 39 42 Coal 16 17 17 16 17 Nuclear 21 21 20 22 21 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.37 2.39 Transco Z6 New York NG-CG-NY-SNL 2.10 2.07 PG&E Citygate NG-CG-PGE-SNL 4.04 4.02 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.86 1.82 Chicago Citygate NG-CG-CH-SNL 2.16 2.13 Algonquin Citygate NG-CG-BS-SNL 4.00 3.08 SoCal Citygate NG-SCL-CGT-SNL 4.15 3.78 Waha Hub NG-WAH-WTX-SNL 2.00 1.57
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By Scott DiSavino Dec 13 (Reuters) - U.S. natural gas futures held near a six-month low on Wednesday on record output and forecasts for mild weather and lower heating demand next week than previously expected that should allow utilities to pull less gas from storage than usual through at least late December. NG/EU Week ended Dec 8 Forecast Week ended Dec 1 Actual Year ago Dec 8 Five-year average Dec 8 U.S. weekly natgas storage change (bcf): -48 -117 -46 -81 U.S. total natgas in storage (bcf): 3,671 3,719 3,419 3,404 U.S. total storage versus 5-year average 7.8% 6.7% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.30 2.31 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 11.22 11.02 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 15.62 15.75 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 320 317 475 387 411 U.S. GFS CDDs 1 2 3 5 4 U.S. GFS TDDs 321 319 378 392 415 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.1 108.8 109.0 102.8 94.2 U.S. Imports from Canada8 8.8 8.6 8.9 10.0 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 116.9 117.5 117.9 112.8 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.3 3.4 3.4 3.4 3.2 U.S. Exports to Mexico 3.9 3.9 4.8 5.2 5.0 U.S. LNG Exports 14.5 14.6 14.0 12.6 8.6 U.S. Commercial 13.2 13.9 13.0 15.4 14.6 U.S. Consumption 99.8 103.1 99.9 104.4 101.2 Total U.S. Demand 121.4 125.0 122.2 125.6 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 83 82 83 107 81 Jan-Jul 81 82 77 102 79 Oct-Sep 82 83 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Week ended Nov 17 Wind 13 12 10 11 9 Solar 3 3 3 3 3 Hydro 5 5 6 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 40 40 42 39 42 Coal 16 17 17 16 17 Nuclear 21 21 20 22 21 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.37 2.39 Transco Z6 New York NG-CG-NY-SNL 2.10 2.07 PG&E Citygate NG-CG-PGE-SNL 4.04 4.02 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.86 1.82 Chicago Citygate NG-CG-CH-SNL 2.16 2.13 Algonquin Citygate NG-CG-BS-SNL 4.00 3.08 SoCal Citygate NG-SCL-CGT-SNL 4.15 3.78 Waha Hub NG-WAH-WTX-SNL 2.00 1.57
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By Scott DiSavino Dec 13 (Reuters) - U.S. natural gas futures held near a six-month low on Wednesday on record output and forecasts for mild weather and lower heating demand next week than previously expected that should allow utilities to pull less gas from storage than usual through at least late December. Gas flows to the seven big U.S. LNG export plants rose to an average of 14.6 bcfd so far in December, up from a record 14.3 bcfd in November. NG/EU Week ended Dec 8 Forecast Week ended Dec 1 Actual Year ago Dec 8 Five-year average Dec 8 U.S. weekly natgas storage change (bcf): -48 -117 -46 -81 U.S. total natgas in storage (bcf): 3,671 3,719 3,419 3,404 U.S. total storage versus 5-year average 7.8% 6.7% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.30 2.31 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 11.22 11.02 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 15.62 15.75 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 320 317 475 387 411 U.S. GFS CDDs 1 2 3 5 4 U.S. GFS TDDs 321 319 378 392 415 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.1 108.8 109.0 102.8 94.2 U.S. Imports from Canada8 8.8 8.6 8.9 10.0 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 116.9 117.5 117.9 112.8 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.3 3.4 3.4 3.4 3.2 U.S. Exports to Mexico 3.9 3.9 4.8 5.2 5.0 U.S. LNG Exports 14.5 14.6 14.0 12.6 8.6 U.S. Commercial 13.2 13.9 13.0 15.4 14.6 U.S.
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6c78058a-285b-474b-8657-e7f46c4c444c
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712238.0
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2023-12-13 00:00:00 UTC
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Best Growth Stocks: Nikola Stock vs. Fisker Stock
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https://www.nasdaq.com/articles/best-growth-stocks%3A-nikola-stock-vs.-fisker-stock
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Fool.com contributor Parkev Tatevosian compares Nikola (NASDAQ: NKLA) and Fisker (NYSE: FSR) to answer which is the better EV stock to buy today.
*Stock prices used were the afternoon prices of Dec. 10, 2023. The video was published on Dec. 12, 2023.
Should you invest $1,000 in Fisker right now?
Before you buy stock in Fisker, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian compares Nikola (NASDAQ: NKLA) and Fisker (NYSE: FSR) to answer which is the better EV stock to buy today. The 10 stocks that made the cut could produce monster returns in the coming years. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Before you buy stock in Fisker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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Before you buy stock in Fisker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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Before you buy stock in Fisker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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09e9b1c2-4900-4aac-b034-f5d54bba9d23
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712239.0
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2023-12-13 00:00:00 UTC
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Surprising Analyst 12-Month Target For MDYV
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https://www.nasdaq.com/articles/surprising-analyst-12-month-target-for-mdyv-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 SPDR S&P 400 Mid Cap Value ETF (Symbol: MDYV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $76.37 per unit.
With MDYV trading at a recent price near $69.19 per unit, that means that analysts see 10.38% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MDYV's underlying holdings with notable upside to their analyst target prices are Timken Co. (Symbol: TKR), Ingredion Inc (Symbol: INGR), and Performance Food Group Co (Symbol: PFGC). Although TKR has traded at a recent price of $73.94/share, the average analyst target is 17.49% higher at $86.88/share. Similarly, INGR has 14.63% upside from the recent share price of $106.95 if the average analyst target price of $122.60/share is reached, and analysts on average are expecting PFGC to reach a target price of $75.55/share, which is 14.24% above the recent price of $66.13. Below is a twelve month price history chart comparing the stock performance of TKR, INGR, and PFGC:
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 400 Mid Cap Value ETF MDYV $69.19 $76.37 10.38%
Timken Co. TKR $73.94 $86.88 17.49%
Ingredion Inc INGR $106.95 $122.60 14.63%
Performance Food Group Co PFGC $66.13 $75.55 14.24%
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:
Institutional Holders of DFAI
MNDO Average Annual Return
ABL shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SPDR S&P 400 Mid Cap Value ETF MDYV $69.19 $76.37 10.38% Timken Co. TKR $73.94 $86.88 17.49% Ingredion Inc INGR $106.95 $122.60 14.63% Performance Food Group Co PFGC $66.13 $75.55 14.24% 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: Institutional Holders of DFAI MNDO Average Annual Return ABL shares outstanding history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three of MDYV's underlying holdings with notable upside to their analyst target prices are Timken Co. (Symbol: TKR), Ingredion Inc (Symbol: INGR), and Performance Food Group Co (Symbol: PFGC). Similarly, INGR has 14.63% upside from the recent share price of $106.95 if the average analyst target price of $122.60/share is reached, and analysts on average are expecting PFGC to reach a target price of $75.55/share, which is 14.24% above the recent price of $66.13. SPDR S&P 400 Mid Cap Value ETF MDYV $69.19 $76.37 10.38% Timken Co. TKR $73.94 $86.88 17.49% Ingredion Inc INGR $106.95 $122.60 14.63% Performance Food Group Co PFGC $66.13 $75.55 14.24% 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, INGR has 14.63% upside from the recent share price of $106.95 if the average analyst target price of $122.60/share is reached, and analysts on average are expecting PFGC to reach a target price of $75.55/share, which is 14.24% above the recent price of $66.13. 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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For the SPDR S&P 400 Mid Cap Value ETF (Symbol: MDYV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $76.37 per unit. With MDYV trading at a recent price near $69.19 per unit, that means that analysts see 10.38% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MDYV's underlying holdings with notable upside to their analyst target prices are Timken Co. (Symbol: TKR), Ingredion Inc (Symbol: INGR), and Performance Food Group Co (Symbol: PFGC).
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712240.0
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2023-12-13 00:00:00 UTC
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1 Stunning Stock Market Statistic That Will Have You Racing for the "Buy" Button
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https://www.nasdaq.com/articles/1-stunning-stock-market-statistic-that-will-have-you-racing-for-the-buy-button
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The S&P stock market index included just 90 companies in 1926. It was expanded to include 500 companies in 1957, and subsequently became the S&P 500 (SNPINDEX: ^GSPC). Since then, it has served as the benchmark used by investors to measure the performance of the broader market.
There is a mountain of evidence that proves a diversified portfolio of stocks can generate incredible wealth over the long term. For example, if you invested $1,000 in an S&P 500 index fund in 1957 (with dividends reinvested), it would be worth over $671,000 today.
That represents a compound annual return of 10.2% over the last 67 years! But there's an even more impressive statistic beneath the surface of that number that might have you racing to invest in the stock market for the long term.
Image source: Getty Images.
Index funds are great, but some individual stocks have performed even better
It's a great honor to be accepted into the S&P 500 because constituents have to meet strict criteria. A company must be worth at least $14.5 billion, it must be profitable in the most recent 12-month period, and at least 50% of its shares must be available for public trading. That's a just sample of the requirements, but even after ticking all the boxes, the company still has to be selected by the U.S. Index Committee.
It's a surefire way to guarantee only the highest-quality companies make the cut. After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. They have a combined market value of $5.8 trillion, and as a result, they account for 15.5% of the index's weight.
But investors who bought those two stocks individually have significantly outperformed the index over the long term:
Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. It now trades above $190 per share, for a return of over 190,000%.
Microsoft stock came public in 1986 at a split-adjusted price of about $0.0729 per share. At a recent price above $370, its shares have produced gains of well over 500,000%.
That means $1,000 invested in Apple at its IPO would be worth $1.9 million today. The same amount invested in Microsoft at its IPO would be worth almost $5.1 million. It further proves there is no one way to invest in the stock market; investors of all experience levels, and with differing appetites for risk, can all build fortunes over the long term.
Here's the statistic that will make you race to buy stocks
Since 1957, the S&P 500 has posted an annual loss 15 times, and it has delivered a positive annual return 52 times. That means you are more than 3 times as likely to make money investing in stocks during a given year than you are to lose money. But it gets better.
The index has delivered an annual return of at least 10% on 41 occasions. That means you're more than twice as likely to reap a double-digit gain than you are to incur a loss (of any size) in a given year.
But here's my favorite statistic, and the one that might convince you to invest in the stock market for the long term. The S&P 500 has delivered an annual return of 20% (or more) on 24 occasions since 1957. That means you are more likely to earn a return that is twice the long-term average (10%) than you are to suffer a loss of any kind!
If you've missed out on the stock market's incredible run of success so far, don't worry. It's never too late to invest, because the best years might still be to come.
Should you invest $1,000 in S&P 500 Index-Price Return (USD) right now?
Before you buy stock in S&P 500 Index-Price Return (USD), consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and S&P 500 Index-Price Return (USD) 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
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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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There is a mountain of evidence that proves a diversified portfolio of stocks can generate incredible wealth over the long term. But there's an even more impressive statistic beneath the surface of that number that might have you racing to invest in the stock market for the long term. It further proves there is no one way to invest in the stock market; investors of all experience levels, and with differing appetites for risk, can all build fortunes over the long term.
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But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. Here's the statistic that will make you race to buy stocks Since 1957, the S&P 500 has posted an annual loss 15 times, and it has delivered a positive annual return 52 times. Before you buy stock in S&P 500 Index-Price Return (USD), consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and S&P 500 Index-Price Return (USD) wasn't one of them.
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But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. Before you buy stock in S&P 500 Index-Price Return (USD), consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and S&P 500 Index-Price Return (USD) wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Anthony Di Pizio has no position in any of the stocks mentioned.
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The S&P stock market index included just 90 companies in 1926. But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. Before you buy stock in S&P 500 Index-Price Return (USD), consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and S&P 500 Index-Price Return (USD) wasn't one of them.
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712241.0
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2023-12-13 00:00:00 UTC
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Boeing (BA) Secures a $271M Contract to Aid MH-47G Helicopter
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https://www.nasdaq.com/articles/boeing-ba-secures-a-%24271m-contract-to-aid-mh-47g-helicopter
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The Boeing Company BA recently clinched a modification contract involving its MH-47G helicopter. The award has been offered by the U.S. Special Operations Command (USSOCOM), MacDill Air Force Base, FL.
Valued at $271.2 million, this contract is projected to be completed by May 2027. Per the terms of the contract, Boeing will procure MH-47G renew-build rotary wing aircraft to support USSOCOM.
Majority of the work related to this deal will be executed in Ridley Park, PA.
What’s Favoring Boeing?
The rise in security threats and the need to modernize the defense infrastructure have led nations around the globe to increase their defense spending. Also, the need to meet the ever-changing dynamics of the military landscape is fueling the demand for technologically advanced weapons. In such a scenario, the demand for technologically advanced military helicopters is also gaining momentum.
Military helicopters boast abilities to carry out missions effectively. Their various roles in a warship, like rescue missions, surveillance and airborne missions, and their ability to fly at all altitudes and hover when needed make them a versatile choice for military missions.
Consequently, many nations across the globe are increasingly spending on upgrading their existing fleets. They are also investing in new technologically advanced helicopters. Looking ahead, per a report from the Mordor Intelligence firm, the global military rotorcraft market is projected to witness a CAGR of more than 4% over the 2023-2028 period.
Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. This, in turn, may result in an inflow of orders for the company, like the latest one, thus boosting its revenue generation prospects.
Peer Prospects
Considering the growing importance of the military rotorcraft market, Boeing apart, other defense players that have also carved out a position in this space and thus stand to benefit from the expanding market size have been discussed below.
Lockheed Martin’s LMT business unit, Sikorsky, provides military and rotary-wing aircraft and is at the forefront of manufacturing the same. Its product portfolio of helicopters includes Black Hawk, Defiant X, Raider X, S-97 Raider, etc.
Lockheed has a long-term earnings growth rate of 8.6%. Its shares have risen 6% in the past three months.
Textron TXT enjoys a leading position in the manufacturing of military helicopters. Its product portfolio includes combat-proven helicopters like Bell 360, V-280, AH-1Z, UH-1Y etc.
Textron’s long-term earnings growth rate is 11.7%. The Zacks Consensus Estimate for TXT’s 2023 sales indicates an improvement of 6.4% from the 2022 reported figure.
Airbus EADSY offers a comprehensive range of military helicopters. Its helicopter portfolio comprises of H125M, H145M, AS565 MBe, H160M, H175M etc.
Airbus boasts a long-term earnings growth rate of 12.4%. The consensus estimate for EADSY’s 2023 sales implies an improvement of 12.9% from the 2022 reported figure.
Price Movement
In the past year, shares of Boeing have risen 32.1% against the industry’s decline of 9.4%.
Image Source: Zacks Investment Research
Zacks Rank
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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
The Boeing Company (BA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Textron Inc. (TXT) : Free Stock Analysis Report
Airbus Group (EADSY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking ahead, per a report from the Mordor Intelligence firm, the global military rotorcraft market is projected to witness a CAGR of more than 4% over the 2023-2028 period. Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. 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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Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. Image Source: Zacks Investment Research Zacks Rank Boeing currently carries a Zacks Rank #3 (Hold). Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. Image Source: Zacks Investment Research Zacks Rank Boeing currently carries a Zacks Rank #3 (Hold). Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. Image Source: Zacks Investment Research Zacks Rank Boeing currently carries a Zacks Rank #3 (Hold). Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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e245b858-3850-4063-b70a-b9f583442036
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712242.0
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2023-12-13 00:00:00 UTC
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Intel's Emerald Rapids Server Chips Could Deliver Surprising Performance Gains
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https://www.nasdaq.com/articles/intels-emerald-rapids-server-chips-could-deliver-surprising-performance-gains
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There's no doubt about it: Intel (NASDAQ: INTC) has fallen behind Advanced Micro Devices in the server CPU market, at least technologically. Intel remains the leader in terms of market share, but it's been losing ground for the past few years. AMD had a server CPU market share of less than 1% at the end of 2017, according to Mercury Research as reported by Tom's Hardware. In the third quarter of this year, AMD's share had shot up to 23.3%.
Great server products from AMD were part of the equation, but so were chronic delays from Intel. Intel's Sapphire Rapids server CPUs, its latest family of Xeon server chips, were finally launched in January of this year after a long delay. One selling point of Sapphire Rapids was its built-in AI hardware, which is capable of accelerating some AI inference workloads. However, that feature hasn't stopped Intel from losing market share to AMD.
Solid performance gains
Intel will launch Emerald Rapids, the successor to Sapphire Rapids, on Dec. 14. That's the same day the company will officially roll out its Meteor Lake PC chips. Unlike Meteor Lake, which moves to the Intel 4 manufacturing process and introduces a slew of major changes, Emerald Rapids will employ the same Intel 7 process used by Sapphire Rapids with an updated CPU core architecture.
Despite Emerald Rapids being an iterative update, the new chips could bring significant performance gains in certain areas versus Sapphire Rapids. Intel claims that Emerald Rapids can deliver 1.2 times higher web server performance, 1.2 times higher media transcoding performance, and between 1.3 times and 2.4 times AI inference performance. The new chips can be slotted into servers currently running Sapphire Rapids chips, making for an easy and cost-effective upgrade.
One big advantage Emerald Rapids has over Sapphire Rapids is a far greater amount of cache. CPUs contain multiple levels of cache, which is ultra-fast memory that holds copies of data stored in main memory. It's much faster to pull data from the cache compared to pulling it from the main memory, so for certain types of workloads, an increase in cache can greatly improve performance. Emerald Rapids will bump up the amount of L3 cache by a factor of 2.6 over Sapphire Rapids, a change that's likely part of the reason behind the significant performance gains in some workloads.
Intel's comeback begins next year
While these performance improvements are solid, they probably won't be enough to halt AMD's market share gains. AMD's Genoa server chips, launched late last year, feature far more cores than both Sapphire Rapids and Emerald Rapids. On top of impressive performance overall, the core density of AMD's chips allows customers to pack more computing power into a smaller footprint, lowering the total cost of ownership.
Emerald Rapids is unlikely to change the story, but Intel's upcoming Granite Rapids and Sierra Forest families of chips just might. Intel is splitting its server CPU lineup next year, with the former featuring high-powered P-cores, and the latter featuring low-power E cores. While Granite Rapids will be the direct successor to Emerald Rapids, Sierra Forest will be positioned for cloud workloads that benefit from an extreme number of cores.
Both chips are expected to launch in the first half of 2024 using the Intel 3 process. Granite Rapids should deliver big performance and efficiency gains given the more advanced manufacturing process, and Intel is likely to boost the core count. Sierra Forest will go all the way up to 144 cores, although those cores will operate with efficiency in mind. Sierra Forest will go up against AMD's Bergamo chips, which use modified versions of the cores in its mainline server CPUs.
AMD is expected to launch its next-generation server CPUs sometime in 2024, so if Intel does manage to outclass Genoa and Bergamo, it won't take long for AMD to have an answer. However, Intel has already laid out plans to launch the follow-up to Sierra Forest, code-named Clearwater Forest, sometime in 2025 using its upcoming Intel 18A process. The company expects this cutting-edge process to be the most advanced in the industry when it's ready for production, potentially giving Intel a competitive advantage. Nothing is known about the follow-up to Granite Rapids, although it will likely use the Intel 18A process as well.
Emerald Rapids will help Intel hold down the fort, but Granite Rapids and Sierra Forest in 2024 will give the company a real chance at winning back some market share. If Intel can successfully launch its manufacturing processes on time through Intel 18A, it could regain its edge over AMD in the server CPU market in 2025 and beyond.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Intel's comeback begins next year While these performance improvements are solid, they probably won't be enough to halt AMD's market share gains. On top of impressive performance overall, the core density of AMD's chips allows customers to pack more computing power into a smaller footprint, lowering the total cost of ownership. Granite Rapids should deliver big performance and efficiency gains given the more advanced manufacturing process, and Intel is likely to boost the core count.
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Solid performance gains Intel will launch Emerald Rapids, the successor to Sapphire Rapids, on Dec. 14. Intel claims that Emerald Rapids can deliver 1.2 times higher web server performance, 1.2 times higher media transcoding performance, and between 1.3 times and 2.4 times AI inference performance. 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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Unlike Meteor Lake, which moves to the Intel 4 manufacturing process and introduces a slew of major changes, Emerald Rapids will employ the same Intel 7 process used by Sapphire Rapids with an updated CPU core architecture. AMD's Genoa server chips, launched late last year, feature far more cores than both Sapphire Rapids and Emerald Rapids. 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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However, that feature hasn't stopped Intel from losing market share to AMD. AMD's Genoa server chips, launched late last year, feature far more cores than both Sapphire Rapids and Emerald Rapids. If Intel can successfully launch its manufacturing processes on time through Intel 18A, it could regain its edge over AMD in the server CPU market in 2025 and beyond.
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c1beb53a-c195-476a-a1fe-65c17f566345
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712243.0
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2023-12-13 00:00:00 UTC
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Here's Why You Should Hold Onto Nutrien (NTR) Stock for Now
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https://www.nasdaq.com/articles/heres-why-you-should-hold-onto-nutrien-ntr-stock-for-now-2
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Nutrien Ltd. NTR is expected to gain from higher demand for crop nutrients, its actions to reduce costs and strategic acquisitions amid challenges from lower prices.
The company’s shares are down 30.8% over a year, compared with a 30.2% decline recorded by its industry.
Image Source: Zacks Investment Research
Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Strong Demand, Cost Reductions Aid NTR
Nutrien is expected to benefit from increased demand for fertilizers, backed by the strength in global agriculture markets. It is seeing strong demand in its major markets, particularly North America. It delivered record potash sales volumes in the third quarter of 2023 and gained from strong crop nutrient demand in North America.
Strong grower economics and higher crop commodity prices are expected to drive potash demand globally. The phosphate market is also benefiting from higher global demand and low producer and channel inventories. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil.
Moreover, the company should gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. The company expanded its network through the completion of 21 retail acquisitions in 2022 with a focus on expanding its Brazil network.
Cost and operational efficiency initiatives are also expected to aid the company’s performance. Nutrien remains focused on lowering the cost of production in the potash business. Moreover, the company has announced a number of strategic actions to reduce its controllable costs and boost free cash flow this year and beyond. Lower natural gas costs are also contributing to a decline in its cost of goods sold.
Weak Prices May Play Spoilsport
Softer fertilizer prices are expected hurt Nutrien’s performance. Prices of phosphate and potash have retreated since the back half of 2022 from their peak levels attained in the first half riding on the impacts of the Russia-Ukraine war and disruptions due to the sanctions in Belarus. Global nitrogen prices have declined since the beginning of 2023 driven by a rise in global supply availability. Lower prices are expected to weigh on NTR’s profitability.
Nutrien Ltd. Price and Consensus
Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 64% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current-year earnings has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained around 24% in the past year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares 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
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
Nutrien Ltd. (NTR) : 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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Nutrien Ltd. NTR is expected to gain from higher demand for crop nutrients, its actions to reduce costs and strategic acquisitions amid challenges from lower prices. It delivered record potash sales volumes in the third quarter of 2023 and gained from strong crop nutrient demand in North America. 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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Nutrien Ltd. NTR is expected to gain from higher demand for crop nutrients, its actions to reduce costs and strategic acquisitions amid challenges from lower prices. Strong Demand, Cost Reductions Aid NTR Nutrien is expected to benefit from increased demand for fertilizers, backed by the strength in global agriculture markets. Click to get this free 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 Nutrien Ltd. (NTR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Strong Demand, Cost Reductions Aid NTR Nutrien is expected to benefit from increased demand for fertilizers, backed by the strength in global agriculture markets. Nutrien Ltd. Price and Consensus Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report Nutrien Ltd. (NTR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Nutrien Ltd. NTR is expected to gain from higher demand for crop nutrients, its actions to reduce costs and strategic acquisitions amid challenges from lower prices. The stock is up around 64% 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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450b15e7-1b66-4595-8003-791c2d69adbe
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712244.0
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2023-12-13 00:00:00 UTC
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FirstEnergy's (FE) Units Win Transmission Projects Worth $800M
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https://www.nasdaq.com/articles/firstenergys-fe-units-win-transmission-projects-worth-%24800m
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FirstEnergy Corporation FE announced that its subsidiaries Potomac Edison and Mid-Atlantic Interstate Transmission (“MAIT”) have been awarded three transmission projects by regional transmission organization PJM Interconnection. These transmission projects are worth almost $800 million and spread across Maryland, Pennsylvania, Virginia and West Virginia.
The projects were filed by Potomac Edison and MAIT earlier this year in response to PJM's request for bids, which was made in response to the data centers across its territory, particularly in Northern Virginia.
Details of the Projects
The projects are aimed at upgrading a 24-mile power transmission line from Adams County, PA, to Carroll County, MD. A new set of 230 kilovolt (kV) electrical wires, officially called a circuit, is inserted into the upgraded line as part of its complement to the current 115/138 kV wire in the corridor. In addition, as part of the $135 million project, MAIT will replace a nearby 115 kV transmission line and complete all necessary upgrades to the existing equipment.
In the Frederick and Montgomery counties, MD, the existing 500 kV and double-circuit 230 kV lines will be converted into adjacent transmission structures, each with 500 kV line sets over 230 kV lines for a total of four circuits.
One 500/230-kV double circuit will extend 8 miles from Potomac Edison's existing Doubs Substation in Frederick to a substation in Montgomery, owned by Exelon Corp. EXC. The other circuit will continue south another 7 miles to the Virginia state line. The $235-million project includes associated upgrades at the Doubs Substation.
The projects also include the conversion of 36 miles of existing 138 kV transmission lines in Virginia and West Virginia to a double-circuit line with 500 kV conductors installed over 138 kV lines. Located in Frederick and Clark counties, VA, and Jefferson County, WV, the $392-million project includes substation upgrades and is part of a larger 160-mile transmission line project.
Benefits of Upgrades
A rise in temperature not only increases the demand for electricity but also poses a threat to electric infrastructure. These upgrades and maintenance tasks are crucial to maintaining service reliability and ensuring customer satisfaction.
The projects will increase reliability, meet the rising demand for power from commercial and residential customers, and make it easier to link renewable energy sources like solar and wind. The U.S. Department of Energy states that the effort will also help improve the system's overall electrical flow and address the effects of power plant retirements, which produced 11 gigawatts of energy, enough to run 1.1 billion LED lightbulbs at a time.
Utilities’ Focus on Infrastructure
In order to provide reliable services to customers, utilities make systematic investments to upgrade transmission and distribution lines and develop new substations. The objective is to warrant a proper supply of electricity to millions of customers across the United States.
Electric power companies like Xcel Energy, Inc. XEL and Duke Energy DUK are also adopting measures to strengthen their existing infrastructure.
Xcel Energy aims to spend $34 billion during 2024-2028, out of which the company plans to invest nearly $21.8 billion in strengthening its electric distribution and transmission operations.
XEL’s long-term (three to five years) earnings growth rate is 6.12%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 5.4%.
Duke Energy remains focused on expanding its scale of operations and implementing modern technologies at its facilities. Almost 85% of the company’s planned investment funds its generation fleet transition and grid modernization. This includes approximately $75 billion to modernize and strengthen its transmission and distribution infrastructure.
DUK’s long-term earnings growth rate is 6.09%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year increase of 6.1%.
Price Performance
In the past three months, shares of FirstEnergy have risen 2.3% against the industry’s 4.4% decline.
Image Source: Zacks Investment Research
Zacks Rank
FirstEnergy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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
Exelon Corporation (EXC) : Free Stock Analysis Report
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, as part of the $135 million project, MAIT will replace a nearby 115 kV transmission line and complete all necessary upgrades to the existing equipment. The projects will increase reliability, meet the rising demand for power from commercial and residential customers, and make it easier to link renewable energy sources like solar and wind. 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 projects also include the conversion of 36 miles of existing 138 kV transmission lines in Virginia and West Virginia to a double-circuit line with 500 kV conductors installed over 138 kV lines. Electric power companies like Xcel Energy, Inc. XEL and Duke Energy DUK are also adopting measures to strengthen their existing infrastructure. Click to get this free report Exelon Corporation (EXC) : Free Stock Analysis Report Xcel Energy Inc. (XEL) : Free Stock Analysis Report FirstEnergy Corporation (FE) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the Frederick and Montgomery counties, MD, the existing 500 kV and double-circuit 230 kV lines will be converted into adjacent transmission structures, each with 500 kV line sets over 230 kV lines for a total of four circuits. The projects also include the conversion of 36 miles of existing 138 kV transmission lines in Virginia and West Virginia to a double-circuit line with 500 kV conductors installed over 138 kV lines. Click to get this free report Exelon Corporation (EXC) : Free Stock Analysis Report Xcel Energy Inc. (XEL) : Free Stock Analysis Report FirstEnergy Corporation (FE) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Electric power companies like Xcel Energy, Inc. XEL and Duke Energy DUK are also adopting measures to strengthen their existing infrastructure. Xcel Energy aims to spend $34 billion during 2024-2028, out of which the company plans to invest nearly $21.8 billion in strengthening its electric distribution and transmission operations. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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5bce2d8d-3aee-4697-b6a6-c44665734dd0
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712245.0
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2023-12-13 00:00:00 UTC
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Here's Why You Should Retain McKesson (MCK) Stock for Now
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https://www.nasdaq.com/articles/heres-why-you-should-retain-mckesson-mck-stock-for-now-2
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McKessonCorporation MCK is well-poised for growth, backed by strategic collaborations and strength in the Distribution Solutions segment. However, the company’s opioid-related litigation expenses are a potential threat.
Shares of this currently Zacks Rank #3 (Hold) company have risen 24.1% year to date compared with the industry’s 7.9% growth. The S&P 500 Index has increased 16.2% in the same time frame.
McKesson is a healthcare services and information technology company with a market capitalization of $61.47 billion. Its earnings are anticipated to improve 10.5% over the next five years.
Image Source: Zacks Investment Research
The company’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.87%. Its earnings yield of 5.9% compares favorably with the industry’s 4.9%.
Key Growth Drivers
Strength in Biologics: Investors are optimistic about McKesson’s robust Biologics business. Independent specialty pharmacy, Biologics by McKesson, has been making impressive progress lately. The pharmacy was chosen by AstraZeneca and SpringWorks Therapeutics as the distribution partner for their respective drugs, TRUQAP (capivasertib) and OGSIVEO (nirogacestat), earlier this month.
Last month, the pharmacy was selected by Takeda as a specialty pharmacy provider of FRUZAQLA (fruquintinib). In September, it was chosen by GSK as a specialty pharmacy provider of OJJAARA (momelotinib). In August, Biologics was selected by Daiichi Sankyo, Inc. as a specialty pharmacy provider of VANFLYTA (quizartinib).
Strength in Distribution Market: McKesson is a major player in the pharmaceutical and medical supplies distribution market that raises investors’ optimism. The Distribution Solutions segment caters to a wide range of customers and businesses. It also stands to benefit from increased generic utilization and inflation in generics, driven by several patent expirations in the next few years and an aging population.
Per management, the uptick in the company’s U.S. Pharmaceutical and Medical-Surgical Solutions segment’s adjusted operating profit was driven by growth in the distribution of specialty products to providers and health systems, higher contribution from generics and growth of GLP-1 medication in the first quarter of fiscal 2024.
Strong Q2 Results: McKesson’s robust second-quarter fiscal 2024 results buoy optimism. The company recorded strong top and bottom-line performances and strength in its U.S. Pharmaceutical, Medical-Surgical Solutions and Prescription Technology Solutions segments.
Downsides
Weak Trends: McKesson distributes generic pharmaceuticals, which are subject to price fluctuations. The Distribution Solutions segment continues to experience a weaker generic pharmaceutical pricing trend. Continued volatility, unfavorable pricing trends, reimbursement of generic drugs and significant fluctuations in the nature, and frequency and magnitude of generic pharmaceutical launches could have an adverse impact on McKesson.
Stiff Competition: Distribution Solutions faces stiff competition both in terms of price and service from various full-line, short-line and specialty wholesalers, service merchandisers, self-warehousing chains, manufacturers engaged in direct distribution, third-party logistics companies and large-payer organizations. Moreover, MCK depends on fewer suppliers for its products. As a result, it is not in a position to negotiate pricing.
Estimates Trend
The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $304.19 billion, indicating a 9.9% increase from the previous year’s level. The consensus mark for adjusted earnings per share is pinned at $27.23, implying a 5% year-over-year improvement.
McKesson Corporation Price
McKesson Corporation price | McKesson Corporation Quote
Stocks to Consider
Some better-ranked stocks in the broader medical space are DexCom DXCM, HealthEquity, Inc. HQY and Biodesix BDSX.
DexCom, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 33.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.43%. The company’s shares have risen 4.2% year to date compared with the industry’s 3.8% growth.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 26.8%. HQY’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 16.5%.
The company’s shares have rallied 15% year to date against the industry’s 9.9% decline.
Biodesix, carrying a Zacks Rank #2 at present, has an estimated growth rate of 32.3% for 2024. BDSX’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.76%.
The stock has fallen 30.9% year to date compared with the industry’s 9.9% decline.
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
McKesson Corporation (MCK) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Biodesix, Inc. (BDSX) : 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’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.87%. The pharmacy was chosen by AstraZeneca and SpringWorks Therapeutics as the distribution partner for their respective drugs, TRUQAP (capivasertib) and OGSIVEO (nirogacestat), earlier this month. 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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Per management, the uptick in the company’s U.S. Pharmaceutical and Medical-Surgical Solutions segment’s adjusted operating profit was driven by growth in the distribution of specialty products to providers and health systems, higher contribution from generics and growth of GLP-1 medication in the first quarter of fiscal 2024. McKesson Corporation Price McKesson Corporation price | McKesson Corporation Quote Stocks to Consider Some better-ranked stocks in the broader medical space are DexCom DXCM, HealthEquity, Inc. HQY and Biodesix BDSX. Click to get this free report McKesson Corporation (MCK) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Biodesix, Inc. (BDSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Per management, the uptick in the company’s U.S. Pharmaceutical and Medical-Surgical Solutions segment’s adjusted operating profit was driven by growth in the distribution of specialty products to providers and health systems, higher contribution from generics and growth of GLP-1 medication in the first quarter of fiscal 2024. McKesson Corporation Price McKesson Corporation price | McKesson Corporation Quote Stocks to Consider Some better-ranked stocks in the broader medical space are DexCom DXCM, HealthEquity, Inc. HQY and Biodesix BDSX. Click to get this free report McKesson Corporation (MCK) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Biodesix, Inc. (BDSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Distribution Solutions segment continues to experience a weaker generic pharmaceutical pricing trend. 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. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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204f3701-4ed5-4209-bf98-64f654a2818b
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712246.0
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2023-12-13 00:00:00 UTC
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Reasons to Add Atmos Energy (ATO) to Your Portfolio Right Now
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https://www.nasdaq.com/articles/reasons-to-add-atmos-energy-ato-to-your-portfolio-right-now-2
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Atmos Energy Corporation’s ATO systematic investment plans will further increase the safety and reliability of its natural gas pipelines, distribution and transportation systems, and drive its performance. Given its growth opportunities, the company makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased 0.9% to $6.52 in the past 60 days.
The Zacks Consensus Estimate for fiscal 2024 sales indicates a year-over-year increase of 23.4%.
The company’s long-term (three- to five-year) earnings growth rate is 7.25%. It delivered an average earnings surprise of 1.1% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate returns. Currently, Atmos Energy’s ROE is 8.54%, higher than the sector’s average of 7.34%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility sector.
Debt Position
Currently, ATO’s total debt to capital is 37.96%, much better than the industry’s average of 49.67%.
The time to interest earned ratio at the end of fourth-quarter fiscal 2023 was 8.3. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
Atmos Energy has been increasing its annual dividend for 40 consecutive years. In November 2023, its board of directors declared a quarterly dividend of 80.5 cents per share. The new dividend for fiscal 2024 is $3.22 per share, indicating an 8.8% increase from the prior-year level.
The company aims to increase its dividend in the range of 6-8% per year through fiscal 2026, subject to the approval of the board of directors. Atmos Energy’s current dividend yield is 2.83%, better than the Zacks S&P 500 Composite’s 1.41%.
Systematic Investments
ATO’s long-term capital expenditure plan will further strengthen its infrastructure and operations. After investing $2.45 billion in fiscal 2022, the company invested $2.8 billion in fiscal 2023, 85% of which was allocated to safety and reliability. The company expects $2.9 billion in capital expenditures during fiscal 2024.
Price Performance
Atmos Energy’s shares have risen 1.5% year to date against the industry’s average 10.3% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are NewJersey Resources NJR, Sempra Energy SRE and PPL Corporation PPL, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NJR’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 118.6% in the last four quarters.
SRE’s long-term earnings growth rate is 4.95%. The company delivered an average earnings surprise of 9% in the last four quarters.
PPL’s long-term earnings growth rate is 7.42%. The consensus estimate for the company’s 2023 EPS is pegged at $1.58, indicating a year-over-year improvement of 12.1%.
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
PPL Corporation (PPL) : Free Stock Analysis Report
Sempra Energy (SRE) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
NewJersey Resources Corporation (NJR) : 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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Atmos Energy Corporation’s ATO systematic investment plans will further increase the safety and reliability of its natural gas pipelines, distribution and transportation systems, and drive its performance. Growth Projections & Surprise History The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased 0.9% to $6.52 in the past 60 days. 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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Growth Projections & Surprise History The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased 0.9% to $6.52 in the past 60 days. Image Source: Zacks Investment Research Other Stocks to Consider A few other top-ranked stocks from the same sector are NewJersey Resources NJR, Sempra Energy SRE and PPL Corporation PPL, each holding a Zacks Rank #2 at present. Click to get this free report PPL Corporation (PPL) : Free Stock Analysis Report Sempra Energy (SRE) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report NewJersey Resources Corporation (NJR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Growth Projections & Surprise History The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased 0.9% to $6.52 in the past 60 days. Image Source: Zacks Investment Research Other Stocks to Consider A few other top-ranked stocks from the same sector are NewJersey Resources NJR, Sempra Energy SRE and PPL Corporation PPL, each holding a Zacks Rank #2 at present. Click to get this free report PPL Corporation (PPL) : Free Stock Analysis Report Sempra Energy (SRE) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report NewJersey Resources Corporation (NJR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Currently, Atmos Energy’s ROE is 8.54%, higher than the sector’s average of 7.34%. Systematic Investments ATO’s long-term capital expenditure plan will further strengthen its infrastructure and operations. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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a6b671a2-4c4f-4c02-8472-977ea285080d
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712247.0
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2023-12-13 00:00:00 UTC
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3 Tech Stocks That Have Crushed "Magnificent Seven" in 2023
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DCOMP
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https://www.nasdaq.com/articles/3-tech-stocks-that-have-crushed-magnificent-seven-in-2023
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In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple (AAPL), Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market.
There is a pureplay ETF called Roundhill Magnificent Seven ETF MAGS on this theme. The ETF has surged more than 30% this year. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year.
But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia.
Inside the Dominance of Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023.
What About Other Tech Jewels?
Even in the narrow market breadth, some tech companies shined. With the Fed expected to go slow on its rate hike spree in 2024 (or even cut rates in late 2024), overall tech space should do well as the area thrives better in a low-rate environment.
Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year.
Stock to Watch
Below, we highlight those winning tech stocks that trumped even Magnificent Seven in 2023. Since these stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), these winners have more room for growth going into 2024.
Applied Optoelectronics (AAOI) – Up 888.3% YTD
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The Zacks Rank #3 company belongs to a top-ranked Zacks sector (top 31%).
IonQ IONQ– Up 268.8% YTD
IonQ Inc. provides a quantum system through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ Inc., formerly known as dMY Technology Group Inc. III., is based in COLLEGE PARK, Md. The Zacks Rank #2 company hails from a top-ranked Zacks industry (top 36%) and sector (top 31%).
Vertiv VRT – Up 271.7% YTD
Vertiv Holdings Co provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. The Zacks Rank #1 company belongs to a top-ranked Zacks industry (top 21%) and sector (top 31%). Two out of three analysts upped their earnings estimates for the upcoming quarter over the past one month.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
IonQ, Inc. (IONQ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. 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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These stocks include Alphabet GOOGL, Apple (AAPL), Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia. Plus, the AI boom is ongoing, which is expected to push the space to another height next year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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3f103b71-d1ab-4480-8003-0dda6c6e98e0
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712248.0
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2023-12-13 00:00:00 UTC
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2 Phenomenal Chip Stocks to Buy in 2024
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https://www.nasdaq.com/articles/2-phenomenal-chip-stocks-to-buy-in-2024
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Chips are at the foundation of every digital technology. Whether it's a smartphone, electric vehicle, or laptop, they are filled with chips, making this technology one of the most important products in the supply chain. As a result of their necessity, the companies behind them have significant pricing power, making them fantastic investments.
Two chip stocks that look like great buys now and are critical to the chip supply chain are Taiwan Semiconductor (NYSE: TSM) and ASML (NASDAQ: ASML). With each stock trading an attractive valuation and plenty of tailwinds on the horizon, these two could be portfolio-changing investments.
China is a risk for both companies
Taiwan Semiconductor and ASML are not competitors. Instead, ASML supplies its EUV (extreme ultraviolet) and DUV (deep ultraviolet) lithography machines to Taiwan Semiconductor so they can etch microscopic patterns onto the chip.
The latest and greatest in chip design is a 3nm (nanometer) chip, which means the distance between transistors is at a minimum of 3nm wide. For reference, a human hair is between 80,000 and 100,000 nanometers wide.
While only a handful of companies can manufacture 3nm chips (Taiwan Semiconductor being one of them), only one creates the machines that make this technology possible: ASML. This makes these two companies fantastic investments based on their technological capabilities.
However, there's one overarching threat to both companies: China.
While the China invasion worries over Taiwan have died down, it is still a real possibility. Any action against Taiwan would sink Taiwan Semiconductor's stock (along with almost every other stock that uses Taiwan Semiconductor chips, like Apple and Nvidia). So avoiding TSMC because of this worry isn't wise, as iPhones and GPUs that power much of our computing infrastructure would have a part shortage and tank the market in general.
ASML also has to deal with China bans, as the Dutch government doesn't want the company to export its top-end EUV machines to China. So, ASML sends China its DUV machines, which are less powerful and can only produce chips 7nm in size. There is always a possibility that ASML may be prohibited from exporting any of its products to China, which would be an issue, as 46% of ASML's Q3 and 24% of Q2's new machine sales came from China.
This makes China a large part of the investment risk for both companies, but with how destabilized the world's economy would become if an attack happened, I don't think it's a valid reason not to invest. However, it's something to keep an eye on.
Despite these risks, both stocks look like strong buys right now.
Trading at recent valuation lows
If you look at each company's price-to-earnings (P/E) ratio at face value, it may appear Taiwan Semiconductor is far cheaper than ASML, which is true. However, Taiwan Semiconductor is a cyclical business, as demand for its chips rises and falls based on consumer appetite. Planning and ordering machines from ASML takes some time, so it isn't as affected by consumer trends. For example, ASML's revenue backlog (for machines already ordered) sits at 35 billion euros, compared to Q3 system sales of 5.3 billion euros.
As a result, ASML has a higher valuation, which it has rightfully earned.
ASML PE Ratio data by YCharts
Both companies are trading well below their five-year historical average P/E ratio, which tells me each stock is undervalued in its own right.
With each company slated to capitalize on a chip boom that artificial intelligence (AI) computing creates, I think each stock is a buy right now. But if you forced me to pick one, I'd likely side with Taiwan Semiconductor because of its lower starting valuation.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Keithen Drury has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So avoiding TSMC because of this worry isn't wise, as iPhones and GPUs that power much of our computing infrastructure would have a part shortage and tank the market in general. Trading at recent valuation lows If you look at each company's price-to-earnings (P/E) ratio at face value, it may appear Taiwan Semiconductor is far cheaper than ASML, which is true. With each company slated to capitalize on a chip boom that artificial intelligence (AI) computing creates, I think each stock is a buy right now.
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Instead, ASML supplies its EUV (extreme ultraviolet) and DUV (deep ultraviolet) lithography machines to Taiwan Semiconductor so they can etch microscopic patterns onto the chip. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. The Motley Fool has positions in and recommends ASML, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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Two chip stocks that look like great buys now and are critical to the chip supply chain are Taiwan Semiconductor (NYSE: TSM) and ASML (NASDAQ: ASML). Any action against Taiwan would sink Taiwan Semiconductor's stock (along with almost every other stock that uses Taiwan Semiconductor chips, like Apple and Nvidia). Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them.
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China is a risk for both companies Taiwan Semiconductor and ASML are not competitors. While only a handful of companies can manufacture 3nm chips (Taiwan Semiconductor being one of them), only one creates the machines that make this technology possible: ASML. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them.
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2023-12-13 00:00:00 UTC
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Southern's (SO) Chairman Thomas Fanning Retires After 43 Years
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https://www.nasdaq.com/articles/southerns-so-chairman-thomas-fanning-retires-after-43-years
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The Southern Company SO announced the retirement of its executive chairman Thomas A. Fanning, effective Dec 31.
Christopher C. Womack, currently serving as SO’s president and CEO, will take on the additional role of the chairman of the company’s board of directors.
Thomas Fanning, a stalwart in the energy industry, has been a pivotal figure at Southern for more than 43 years. His leadership played a crucial role in shaping SO’s strategies, fostering innovation and navigating the dynamic landscape of the energy sector.
In a statement released by Southern, Fanning expressed his gratitude for the years spent with the organization, stating, "It has been an honor to contribute to the growth and success of Southern over the past 43 years. I am immensely proud of what we have achieved together, and I have full confidence in the capable hands that will guide the company forward."
To ensure a smooth transition, SO has appointed Christopher Womack as the new chairman of the board. Womack, who joined Southern in 1988, brings a wealth of experience to the position, having held various leadership roles within the company.
SO affirms that Womack's strategic vision and industry expertise will undoubtedly play a pivotal role in sustaining the company's ongoing success.
Zacks Rank and Key Picks
Southern is an American utility firm that provides electricity to customers across the Southern United States. It is one of the country's largest energy companies, focusing on clean energy and sustainability. Currently, SO carries a Zacks Rank #3 (Hold).
Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail OTTR, Consolidated Water CWCO and CenterPoint Energy, Inc. CNP. While Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Otter Tail is valued at around $3.18 billion. In the past year, its shares have risen 29.6%.
OTTR, a company primarily focused on electric energy production, transmission, distribution and sale, also operates in Health Services Operations and Diversified Operations through its subsidiaries.
Consolidated Water is worth approximately $583.92 million. It currently pays dividends of 38 cents per share or 1.02% on an annual basis.
CWCO develops and operates seawater desalination plants and water distribution systems in scarce or nonexistent water sources, targeting tourist properties. The company operates in Retail, Bulk, Services and Manufacturing segments.
CenterPoint Energy is worth approximately $18.03 billion. It currently pays dividends of 80 cents per share or 2.80% on an annual basis.
CNP, a domestic energy delivery company, provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services 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
Southern Company (The) (SO) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
Otter Tail Corporation (OTTR) : Free Stock Analysis Report
Consolidated Water Co. Ltd. (CWCO) : 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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SO affirms that Womack's strategic vision and industry expertise will undoubtedly play a pivotal role in sustaining the company's ongoing success. Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail OTTR, Consolidated Water CWCO and CenterPoint Energy, Inc. CNP. 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 Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. CNP, a domestic energy delivery company, provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. OTTR, a company primarily focused on electric energy production, transmission, distribution and sale, also operates in Health Services Operations and Diversified Operations through its subsidiaries. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In a statement released by Southern, Fanning expressed his gratitude for the years spent with the organization, stating, "It has been an honor to contribute to the growth and success of Southern over the past 43 years. While Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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f63e454a-fc52-46db-864c-13a5b328f419
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712250.0
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2023-12-13 00:00:00 UTC
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SNAP to Allow Snapchat+ Users to Create AI-Generated Images
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https://www.nasdaq.com/articles/snap-to-allow-snapchat-users-to-create-ai-generated-images
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nan
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SNAP Inc. SNAP is rolling out some exciting AI-powered features for Snapchat+ subscribers globally, enhancing the creative possibilities for users.
Subscribers using the $3.99 plan can access the new AI image generator by clicking on the "AI" button on the right side of their screen. Users can choose from a selection of prompts or input their own text prompt. The app generates an image based on the prompt, allowing users to edit, download and share the AI-generated image. This feature expands on the ability to create AI images for bitmoji backgrounds and chat wallpapers, now enabling users to share AI images with their friends.
The Dream selfie feature, which allows users to create fantastical images of themselves in different scenarios, can now be used with friends. Users can create an AI selfie and select a friend to appear in the generated image, opening up new possibilities for collaborative and imaginative content. Snapchat+ subscribers receive one free pack of eight Dreams per month.
The new AI-powered extend tool is designed to help users adjust their images. For example, if a user has taken a close-up image of their dog and wants to include more of the background, they can use the extend tool. The tool automatically generates a zoomed-out image, filling in the background with the help of AI.
These additions aim to provide its 7 million Snapchat+ subscribers with more creative tools and options for personalizing their content.
Shares of this Zacks Rank #3 (Hold) company have gained 77.1% in the year-to-date period compared with the Zacks Computer and Technology sector’s rise of 47.1%. SNAP’s recent AI efforts are expected to boost its top line in the upcoming quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Snap’s AI Initiatives to Aid Declining Ad Revenues
Snap and other competitors, including Alphabet GOOGL, have been facing challenges in their advertising revenues due to fierce competition from platforms like TikTok and Meta Platforms’ META Instagram, as well as changes in Apple's app privacy policies.
META is pumping resources into developing generative AI on its platform. It announced a new Reimagine feature for Meta AI’s text-to-image generator on Messenger and Instagram. Meta AI generates and shares images based on users’ requests. The new reimagine feature allows the receiver to generate a riff on the shared picture using a text prompt and share it back.
In its race to target TV ad dollars, Alphabet allowed third-party (Nielsen and comScore) tagging of YouTube videos to determine the effectiveness of ads on YouTube versus ads shown on TV.
Snap is suffering from declining ad revenues as advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressure and the rising costs of capital. The persistent decline in the price-per-ad impression is likely to dent advertising revenues for the company in the near term.
To address this and maintain user engagement, Snap introduced new AI features, some of which are exclusive to its paid subscribers.
One of these features is My AI, which was launched in April for all Snapchat users. My AI has garnered significant user engagement, with over 150 million people sending more than 10 billion messages to My AI.
Snap has partnered with Microsoft MSFT Advertising to power Sponsored Links within My AI. This partnership leverages Microsoft Advertising's Ads for Chat API to enable the seamless delivery of relevant links during conversations. This collaboration is expected to help partners reach Snapchatters when they have expressed potential interest in their offerings.
In addition, Snapchat recently added a way for developers to create filters with ChatGPT. The new beta of Lens Studio for developers includes the ability to create filters with ChatGPT. Lens developers will be able to use a new 3D face mask generator to create generative AI face lenses. These new developer tools announced include the ability for multiple people to work on projects at the same time.
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Users can create an AI selfie and select a friend to appear in the generated image, opening up new possibilities for collaborative and imaginative content. This partnership leverages Microsoft Advertising's Ads for Chat API to enable the seamless delivery of relevant links during conversations. 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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This feature expands on the ability to create AI images for bitmoji backgrounds and chat wallpapers, now enabling users to share AI images with their friends. Snap Inc. Price and Consensus Snap Inc. price-consensus-chart | Snap Inc. Quote Snap’s AI Initiatives to Aid Declining Ad Revenues Snap and other competitors, including Alphabet GOOGL, have been facing challenges in their advertising revenues due to fierce competition from platforms like TikTok and Meta Platforms’ META Instagram, as well as changes in Apple's app privacy policies. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This feature expands on the ability to create AI images for bitmoji backgrounds and chat wallpapers, now enabling users to share AI images with their friends. Snap Inc. Price and Consensus Snap Inc. price-consensus-chart | Snap Inc. Quote Snap’s AI Initiatives to Aid Declining Ad Revenues Snap and other competitors, including Alphabet GOOGL, have been facing challenges in their advertising revenues due to fierce competition from platforms like TikTok and Meta Platforms’ META Instagram, as well as changes in Apple's app privacy policies. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This feature expands on the ability to create AI images for bitmoji backgrounds and chat wallpapers, now enabling users to share AI images with their friends. In addition, Snapchat recently added a way for developers to create filters with ChatGPT. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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79a9951a-0e81-4adf-a076-988a7c605d1b
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712251.0
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2023-12-13 00:00:00 UTC
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Better Artificial Intelligence (AI) Stock: Nvidia vs. Alphabet
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DCOMP
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https://www.nasdaq.com/articles/better-artificial-intelligence-ai-stock%3A-nvidia-vs.-alphabet
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nan
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nan
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Interest in artificial intelligence (AI) stocks surged this year as platforms like OpenAI's ChatGPT led many to rethink what is currently possible with the technology. AI has the potential to improve countless industries, including cloud computing, productivity software, e-commerce, autonomous driving, healthcare, and education.
So, it's not surprising that the AI market is projected to expand at a compound annual rate of 37% until at least 2030 (per Grand View Research). The sector is developing rapidly, and it could be a smart move to add an AI stock to your portfolio now before it's too late.
Nvidia (NASDAQ: NVDA) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are two attractive options, with one profiting from an uptick in AI chip demand and the other gearing up to launch a highly anticipated large language model in 2024.
So, let's assess whether Nvidia or Alphabet is the better stock to invest in AI.
Nvidia
Nvidia's stock has soared 215% this year, rallying investors as its chips have become the preferred hardware for AI developers everywhere. The company has snapped up an estimated 90% market share in AI graphics processing units (GPUs), attaining dominance that will likely be challenging for its competitors to overcome.
The tech giant has massive potential in AI and is already seeing big gains from the industry. In the third quarter of its fiscal 2024, ended Oct. 29, Nvidia posted revenue growth of 206% year over year, with operating income up more than 1,600%. Boosted earnings came alongside a 279% increase in data center revenue thanks to a spike in AI GPU sales.
Additionally, Nvidia's position in AI will likely bolster its gaming division over the long term, with the company able to offer highly powerful chips for consumers and businesses.
Macroeconomic headwinds have burdened the gaming industry over the last two years, triggering reductions in spending on tech. However, Nvidia's latest quarter saw its gaming segment post revenue growth of 81% year over year, signaling a probable end to recent market declines.
Nvidia could be a reliable way to invest in AI as it's one of the few companies already seeing significant growth from the sector and is likely to continue posting impressive earnings in 2024.
Alphabet
Cloud competitors Microsoft and Amazon have slightly overshadowed Alphabet in AI this year. However, the company has heavily invested in the technology and could play a crucial role in developing the market over the long term.
As the home of potent brands like Google, YouTube, and Android, Alphabet has countless ways to monetize its venture into AI. Its Google Cloud division boasts the third-largest market share in cloud computing and is well equipped to take advantage of increased demand for AI cloud services.
In fact, Alphabet revealed in August that 70% of AI start-ups worth more than $1 billion are currently Google Cloud clients, including Anthropic, Character.ai, and Cohere.
Moreover, Alphabet's dominance in digital advertising strengthens its prospects in AI. Platforms such as Google Search and YouTube attract billions of users daily, presenting numerous advertising opportunities. With the help of AI, the company can offer more targeted ads and introduce new features to its services that could expand its user base.
In Q3, Alphabet posted a revenue rise of 11% year over year, beating analysts' forecasts by $980 million. The growth was primarily owed to increased sales in its Google Search and YouTube ad segments, which rose 11% and 12%.
The company's earnings show Alphabet is on a promising growth trajectory. Meanwhile, plans to launch a new large language model called Gemini in 2024 could expand its position in AI.
Is Nvidia or Alphabet the better artificial intelligence (AI) stock?
Alphabet and Nvidia operate in two different areas of AI, with one excelling in hardware and the other with significant potential in the software side of the market. These companies likely have much to offer investors over the long term as demand for AI products continues to rise.
However, Alphabet is a slightly more compelling investment option as it could be the cheapest stock in AI right now.
Data by YCharts
The chart above compares the price-to-earnings and price-to-free-cash-flow ratios of some of the most prominent names in AI. These are helpful metrics to determine the value of a stock, and Alphabet comes out on top on both fronts.
Alphabet's lower figures make it a bargain compared to its peers and especially compared to Nvidia, with its stock the better buy 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, 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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AI has the potential to improve countless industries, including cloud computing, productivity software, e-commerce, autonomous driving, healthcare, and education. The company has snapped up an estimated 90% market share in AI graphics processing units (GPUs), attaining dominance that will likely be challenging for its competitors to overcome. Additionally, Nvidia's position in AI will likely bolster its gaming division over the long term, with the company able to offer highly powerful chips for consumers and businesses.
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AI has the potential to improve countless industries, including cloud computing, productivity software, e-commerce, autonomous driving, healthcare, and education. Alphabet Cloud competitors Microsoft and Amazon have slightly overshadowed Alphabet in AI this year. These companies likely have much to offer investors over the long term as demand for AI products continues to rise.
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So, let's assess whether Nvidia or Alphabet is the better stock to invest in AI. Nvidia Nvidia's stock has soared 215% this year, rallying investors as its chips have become the preferred hardware for AI developers everywhere. 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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Nvidia could be a reliable way to invest in AI as it's one of the few companies already seeing significant growth from the sector and is likely to continue posting impressive earnings in 2024. Alphabet Cloud competitors Microsoft and Amazon have slightly overshadowed Alphabet in AI this year. 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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3948c345-9686-4fa5-a605-82611b6a21d4
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712252.0
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2023-12-13 00:00:00 UTC
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Why You Should Bet on 5 Top-Ranked Stocks With Rising P/E
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DCOMP
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https://www.nasdaq.com/articles/why-you-should-bet-on-5-top-ranked-stocks-with-rising-p-e-1
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nan
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nan
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Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio is, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of The Duckhorn Portfolio NAPA, PepsiCo PEP, Lamb Weston LW, Consolidated Edison ED and GameStop GME.
Rising P/E: A Useful Tool
The concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
The Winning Strategy
In order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.
EPS growth estimate for the current year is greater than or equal to last year’s actual growth
Percentage change in last year EPS should be greater than or equal zero
(These two criteria point to flat earnings or a growth trend over the years.)
Percentage change in price over four weeks greater than the percentage change in price over 12 weeks
Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks
(These two criteria show that price of the stock is increasing consistently over the said timeframes.)
Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500
Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500
(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)
Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%
(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)
In addition, we place a few other criteria that lead us to some likely outperformers.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.
Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 67.
Here are five out of the 67 stocks:
The Duckhorn Portfolio: The Zacks Rank #2 company is the premier producer of wines principally in North America. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of NAPA for the past four quarters is 13.65%.
PepsiCo: The Zacks Rank #2 company is one of the leading global food and beverage companies.
The average earnings surprise of PEP for the past four quarters is 5.5%.
Lamb Weston:This Zacks Rank #1 company is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries. It also provides a range of appetizers.
The average earnings surprise of LW for the past four quarters is 46.16%.
Consolidated Edison: This Zacks Rank #2 diversified utility holding company operates with subsidiaries engaged in both regulated and unregulated businesses.
The average earnings surprise of ED for the past four quarters is 6.13%.
GameStop: This Zacks Rank #1 company is the world's largest video game retailer. The company offers the best selection of new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats
The average earnings surprise of GME for the past four quarters is 99.41%.
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.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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
Consolidated Edison Inc (ED) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
GameStop Corp. (GME) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
The Duckhorn Portfolio, Inc. (NAPA) : 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 this regard, investors can bet on the likes of The Duckhorn Portfolio NAPA, PepsiCo PEP, Lamb Weston LW, Consolidated Edison ED and GameStop GME. Lamb Weston:This Zacks Rank #1 company is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries. 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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In this regard, investors can bet on the likes of The Duckhorn Portfolio NAPA, PepsiCo PEP, Lamb Weston LW, Consolidated Edison ED and GameStop GME. Percentage change in price over four weeks greater than the percentage change in price over 12 weeks Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks (These two criteria show that price of the stock is increasing consistently over the said timeframes.) Click to get this free report Consolidated Edison Inc (ED) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report Lamb Weston (LW) : Free Stock Analysis Report The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Percentage change in price over four weeks greater than the percentage change in price over 12 weeks Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks (These two criteria show that price of the stock is increasing consistently over the said timeframes.) Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500 Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500 (Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.) Click to get this free report Consolidated Edison Inc (ED) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report Lamb Weston (LW) : Free Stock Analysis Report The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In this regard, investors can bet on the likes of The Duckhorn Portfolio NAPA, PepsiCo PEP, Lamb Weston LW, Consolidated Edison ED and GameStop GME. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. 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.
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cee219f9-8743-46f2-9a79-8cf2746246c4
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712253.0
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2023-12-13 00:00:00 UTC
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Is Archer Aviation (ACHR) Stock Outpacing Its Aerospace Peers This Year?
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DCOMP
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https://www.nasdaq.com/articles/is-archer-aviation-achr-stock-outpacing-its-aerospace-peers-this-year-0
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nan
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nan
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Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is Archer Aviation Inc. (ACHR) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Archer Aviation Inc. is one of 48 companies in the Aerospace group. The Aerospace group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Archer Aviation Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ACHR's full-year earnings has moved 12.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ACHR has gained about 239.6% so far this year. Meanwhile, the Aerospace sector has returned an average of -3% on a year-to-date basis. This means that Archer Aviation Inc. is outperforming the sector as a whole this year.
Another Aerospace stock, which has outperformed the sector so far this year, is VirTra, Inc. (VTSI). The stock has returned 74.4% year-to-date.
In VirTra, Inc.'s case, the consensus EPS estimate for the current year increased 39.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Archer Aviation Inc. belongs to the Aerospace - Defense industry, a group that includes 26 individual companies and currently sits at #55 in the Zacks Industry Rank. Stocks in this group have lost about 8.2% so far this year, so ACHR is performing better this group in terms of year-to-date returns.
On the other hand, VirTra, Inc. belongs to the Electronics - Military industry. This 1-stock industry is currently ranked #1. The industry has moved +74.4% year to date.
Investors with an interest in Aerospace stocks should continue to track Archer Aviation Inc. and VirTra, Inc. These stocks will be looking to continue their solid performance.
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
Archer Aviation Inc. (ACHR) : Free Stock Analysis Report
VirTra, Inc. (VTSI) : 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 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?
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The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. To break things down more, Archer Aviation Inc. belongs to the Aerospace - Defense industry, a group that includes 26 individual companies and currently sits at #55 in the Zacks Industry Rank. Click to get this free report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report VirTra, Inc. (VTSI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. To break things down more, Archer Aviation Inc. belongs to the Aerospace - Defense industry, a group that includes 26 individual companies and currently sits at #55 in the Zacks Industry Rank. Click to get this free report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report VirTra, Inc. (VTSI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks in this group have lost about 8.2% so far this year, so ACHR is performing better this group in terms of year-to-date returns. Investors with an interest in Aerospace stocks should continue to track Archer Aviation Inc. and VirTra, Inc. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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bc252cc1-11d7-487f-8567-cf20f9ee314d
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712254.0
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2023-12-13 00:00:00 UTC
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Wall Street Analysts Think MercadoLibre (MELI) Is a Good Investment: Is It?
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DCOMP
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https://www.nasdaq.com/articles/wall-street-analysts-think-mercadolibre-meli-is-a-good-investment%3A-is-it
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nan
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nan
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about MercadoLibre (MELI).
MercadoLibre currently has an average brokerage recommendation (ABR) of 1.29, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.29 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, 10 are Strong Buy, representing 83.3% of all recommendations.
Brokerage Recommendation Trends for MELI
Check price target & stock forecast for MercadoLibre here>>>
The ABR suggests buying MercadoLibre, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MELI Worth Investing In?
Looking at the earnings estimate revisions for MercadoLibre, the Zacks Consensus Estimate for the current year has increased 4.4% over the past month to $22.80.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for MercadoLibre. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for MercadoLibre may serve as a useful guide for investors.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MercadoLibre, Inc. (MELI) : 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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But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for MercadoLibre may serve as a useful guide for investors.
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Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. Looking at the earnings estimate revisions for MercadoLibre, the Zacks Consensus Estimate for the current year has increased 4.4% over the past month to $22.80.
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MercadoLibre currently has an average brokerage recommendation (ABR) of 1.29, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for MercadoLibre may serve as a useful guide for investors.
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Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for MercadoLibre may serve as a useful guide for investors.
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06e7d592-c09f-4df9-9c68-b8c51cf8fac5
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712255.0
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2023-12-13 00:00:00 UTC
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Is It Worth Investing in Disney (DIS) Based on Wall Street's Bullish Views?
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DCOMP
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https://www.nasdaq.com/articles/is-it-worth-investing-in-disney-dis-based-on-wall-streets-bullish-views-2
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nan
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nan
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Walt Disney (DIS).
Disney currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.70 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 16 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 64% and 8% of all recommendations.
Brokerage Recommendation Trends for DIS
Check price target & stock forecast for Disney here>>>
The ABR suggests buying Disney, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is DIS Worth Investing In?
Looking at the earnings estimate revisions for Disney, the Zacks Consensus Estimate for the current year has declined 3.8% over the past month to $4.38.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Disney. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Disney with a grain of salt.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Walt Disney Company (DIS) : 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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But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Disney with a grain of salt.
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Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. Click to get this free report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Disney currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
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Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. ABR Should Not Be Confused With Zacks Rank Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
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d59f476b-4598-471a-8e17-46f051bad3f5
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712256.0
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2023-12-13 00:00:00 UTC
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Cava Group (CAVA) Recently Broke Out Above the 50-Day Moving Average
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DCOMP
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https://www.nasdaq.com/articles/cava-group-cava-recently-broke-out-above-the-50-day-moving-average
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nan
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nan
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From a technical perspective, Cava Group (CAVA) is looking like an interesting pick, as it just reached a key level of support. CAVA recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
CAVA has rallied 20.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests CAVA could be on the verge of another move higher.
Looking at CAVA's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 5 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch CAVA for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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
CAVA Group, Inc. (CAVA) : 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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Investors may want to watch CAVA for more gains in the near future given the company's key technical level and positive earnings estimate revisions. 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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Looking at CAVA's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. Investors may want to watch CAVA for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Click to get this free report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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From a technical perspective, Cava Group (CAVA) is looking like an interesting pick, as it just reached a key level of support. Investors may want to watch CAVA for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Click to get this free report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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CAVA recently overtook the 50-day moving average, and this suggests a short-term bullish trend. Investors may want to watch CAVA for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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4d75df21-5426-40c6-98f6-d46eb2255986
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712257.0
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2023-12-13 00:00:00 UTC
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Lamb Weston (LW) Crossed Above the 200-Day Moving Average: What That Means for Investors
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DCOMP
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https://www.nasdaq.com/articles/lamb-weston-lw-crossed-above-the-200-day-moving-average%3A-what-that-means-for-investors
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nan
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nan
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Lamb Weston (LW) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, LW broke through the 200-day moving average, which suggests a long-term bullish trend.
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.
Over the past four weeks, LW has gained 8%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account LW's positive earnings estimate revisions. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting LW on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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
Lamb Weston (LW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. 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 bullish case only gets stronger once investors take into account LW's positive earnings estimate revisions. Investors should think about putting LW on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. Click to get this free report Lamb Weston (LW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher. Investors should think about putting LW on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. Click to get this free report Lamb Weston (LW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Recently, LW broke through the 200-day moving average, which suggests a long-term bullish trend. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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b5ef2497-412f-4cef-aa5c-43866bce97a9
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712258.0
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2023-12-13 00:00:00 UTC
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REV Group (REVG) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
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DCOMP
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https://www.nasdaq.com/articles/rev-group-revg-q4-earnings%3A-taking-a-look-at-key-metrics-versus-estimates
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nan
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nan
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REV Group (REVG) reported $693.3 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 11.2%. EPS of $0.53 for the same period compares to $0.28 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $658.25 million, representing a surprise of +5.33%. The company delivered an EPS surprise of +55.88%, with the consensus EPS estimate being $0.34.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how REV Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Fire & Emergency: $339.10 million compared to the $325.13 million average estimate based on two analysts. The reported number represents a change of +34% year over year.
Revenue- Corporate & Other: -$0.70 million versus -$0.55 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +75% change.
Revenue- Recreation: $215.20 million compared to the $195.09 million average estimate based on two analysts. The reported number represents a change of -17.3% year over year.
Revenue- Commercial: $139.70 million versus the two-analyst average estimate of $138.64 million. The reported number represents a year-over-year change of +26%.
Adjusted EBITDA- Fire & Emergency: $26.80 million compared to the $20.66 million average estimate based on two analysts.
Adjusted EBITDA- Corporate & Other: -$8.40 million versus the two-analyst average estimate of -$8 million.
Adjusted EBITDA- Recreation: $19.10 million versus the two-analyst average estimate of $14.75 million.
Adjusted EBITDA- Commercial: $16.50 million compared to the $10.87 million average estimate based on two analysts.
View all Key Company Metrics for REV Group here>>>
Shares of REV Group have returned +8.8% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
REV Group, Inc. (REVG) : 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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REV Group (REVG) reported $693.3 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 11.2%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Here is how REV Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Fire & Emergency: $339.10 million compared to the $325.13 million average estimate based on two analysts. Adjusted EBITDA- Fire & Emergency: $26.80 million compared to the $20.66 million average estimate based on two analysts. Adjusted EBITDA- Recreation: $19.10 million versus the two-analyst average estimate of $14.75 million.
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Here is how REV Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Fire & Emergency: $339.10 million compared to the $325.13 million average estimate based on two analysts. Adjusted EBITDA- Fire & Emergency: $26.80 million compared to the $20.66 million average estimate based on two analysts. Adjusted EBITDA- Commercial: $16.50 million compared to the $10.87 million average estimate based on two analysts.
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REV Group (REVG) reported $693.3 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 11.2%. The reported revenue compares to the Zacks Consensus Estimate of $658.25 million, representing a surprise of +5.33%. Here is how REV Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Fire & Emergency: $339.10 million compared to the $325.13 million average estimate based on two analysts.
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71f7ff0e-7fc0-4a0a-a12f-fd07dc323e4e
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712259.0
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2023-12-13 00:00:00 UTC
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ABM Industries (ABM) Reports Q4 Earnings: What Key Metrics Have to Say
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DCOMP
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https://www.nasdaq.com/articles/abm-industries-abm-reports-q4-earnings%3A-what-key-metrics-have-to-say
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nan
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nan
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For the quarter ended October 2023, ABM Industries (ABM) reported revenue of $2.09 billion, up 4.1% over the same period last year. EPS came in at $1.01, compared to $0.89 in the year-ago quarter.
The reported revenue represents a surprise of +2.77% over the Zacks Consensus Estimate of $2.04 billion. With the consensus EPS estimate being $0.93, the EPS surprise was +8.60%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ABM Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Manufacturing & Distribution: $391.20 million versus $380.72 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.4% change.
Revenues- Education: $229.80 million versus the three-analyst average estimate of $220.11 million. The reported number represents a year-over-year change of +5.9%.
Revenues- Business & Industry: $1.03 billion versus $1.01 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +0.4% change.
Revenues- Technical Solutions: $190.80 million versus the three-analyst average estimate of $201.30 million. The reported number represents a year-over-year change of +6.2%.
Revenues- Aviation: $248.20 million versus $231.88 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +15.8% change.
Operating profit- Business & Industry: $84.60 million versus the three-analyst average estimate of $82.37 million.
Operating profit (loss)- Manufacturing & Distribution: $42 million compared to the $44.38 million average estimate based on three analysts.
Operating profit- Technical Solutions: $24.40 million compared to the $14.92 million average estimate based on three analysts.
Operating profit- Aviation: $16.40 million versus the three-analyst average estimate of $11.39 million.
Operating profit- Education: $10.20 million versus the three-analyst average estimate of $8.98 million.
View all Key Company Metrics for ABM Industries here>>>
Shares of ABM Industries have returned +6.6% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ABM Industries Incorporated (ABM) : 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 investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Here is how ABM Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Manufacturing & Distribution: $391.20 million versus $380.72 million estimated by three analysts on average. Operating profit- Business & Industry: $84.60 million versus the three-analyst average estimate of $82.37 million. Operating profit- Technical Solutions: $24.40 million compared to the $14.92 million average estimate based on three analysts.
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Here is how ABM Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Manufacturing & Distribution: $391.20 million versus $380.72 million estimated by three analysts on average. Operating profit- Business & Industry: $84.60 million versus the three-analyst average estimate of $82.37 million. Operating profit- Technical Solutions: $24.40 million compared to the $14.92 million average estimate based on three analysts.
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Here is how ABM Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Manufacturing & Distribution: $391.20 million versus $380.72 million estimated by three analysts on average. Revenues- Business & Industry: $1.03 billion versus $1.01 billion estimated by three analysts on average. View all Key Company Metrics for ABM Industries here>>>
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9b10bd0f-f1a6-4077-b3f3-07c408f3e771
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712260.0
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2023-12-13 00:00:00 UTC
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Are Auto-Tires-Trucks Stocks Lagging CarGurus (CARG) This Year?
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DCOMP
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https://www.nasdaq.com/articles/are-auto-tires-trucks-stocks-lagging-cargurus-carg-this-year
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nan
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nan
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For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. CarGurus (CARG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.
CarGurus is a member of our Auto-Tires-Trucks group, which includes 113 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CarGurus is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CARG's full-year earnings has moved 22.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CARG has gained about 57.3% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have gained about 34% on average. This shows that CarGurus is outperforming its peers so far this year.
Modine (MOD) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 171.1%.
Over the past three months, Modine's consensus EPS estimate for the current year has increased 5.4%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CarGurus is a member of the Automotive - Replacement Parts industry, which includes 7 individual companies and currently sits at #189 in the Zacks Industry Rank. Stocks in this group have lost about 13.3% so far this year, so CARG is performing better this group in terms of year-to-date returns.
In contrast, Modine falls under the Automotive - Original Equipment industry. Currently, this industry has 56 stocks and is ranked #163. Since the beginning of the year, the industry has moved +6.1%.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to CarGurus and Modine as they could maintain their solid performance.
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
CarGurus, Inc. (CARG) : Free Stock Analysis Report
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to CarGurus and Modine as they could maintain their solid performance. 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 Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. Breaking things down more, CarGurus is a member of the Automotive - Replacement Parts industry, which includes 7 individual companies and currently sits at #189 in the Zacks Industry Rank. Click to get this free report CarGurus, Inc. (CARG) : Free Stock Analysis Report Modine Manufacturing Company (MOD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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CarGurus is a member of our Auto-Tires-Trucks group, which includes 113 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. Click to get this free report CarGurus, Inc. (CARG) : Free Stock Analysis Report Modine Manufacturing Company (MOD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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CarGurus is a member of our Auto-Tires-Trucks group, which includes 113 different companies and currently sits at #11 in the Zacks Sector Rank. Modine (MOD) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. 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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Is It Worth Investing in Coke (KO) Based on Wall Street's Bullish Views?
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https://www.nasdaq.com/articles/is-it-worth-investing-in-coke-ko-based-on-wall-streets-bullish-views-1
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Coca-Cola (KO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Coke currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 16 recommendations that derive the current ABR, 12 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 75% and 6.3% of all recommendations.
Brokerage Recommendation Trends for KO
Check price target & stock forecast for Coke here>>>
The ABR suggests buying Coke, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is KO a Good Investment?
In terms of earnings estimate revisions for Coke, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $2.68.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Coke. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Coke.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CocaCola Company (The) (KO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
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Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. In terms of earnings estimate revisions for Coke, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $2.68.
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Coke currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
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Brokerage Recommendation Trends for KO Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future.
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712262.0
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2023-12-13 00:00:00 UTC
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Post-SPAC Spotlight: 3 Stocks Set to Thrive, 4 Set to Dive
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https://www.nasdaq.com/articles/post-spac-spotlight%3A-3-stocks-set-to-thrive-4-set-to-dive
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
SPAC Mania is firmly in the past. 2021 saw a record 199 SPAC deals closed before nearly halving, marking just 102 last year. And 2023? Only 84 thus far, but with only a few weeks left, we won’t be seeing double digits this year.
What happened?
In a nutshell, SPAC exuberance was a wholly ZIRP-era phenomenon tailor-made for companies looking to capture massive equity inflows without the structural framework to survive on a stock exchange. With a few exceptions, like companies with unique governance structures or working in grey market industries, many companies that went public via SPAC merger didn’t have the financial strength or operational viability to pass underwriter due diligence via traditional IPO processes.
Of course, some post-SPAC stocks are thriving today – but many aren’t. Don’t get caught holding the bag on these post-SPAC losers – instead, these SPAC stocks to buy are worth investing in.
Virgin Galactic Holdings (SPCE)
Source: Dima Zel / Shutterstock.com
From the jump, Virgin Galactic Holdings (NYSE:SPCE) was clearly a Richard Branson pet project with limited commercial appeal or productization opportunity. While its theoretical underpinning – commercial hypersonic flight – is appealing, investors didn’t need to look further than the company’s focus on irrelevant minutiae rather than engineering excellence to see this post-SPAC stock was a dud.
Today, SPCE trades firmly in penny stock territory, even as seemingly good news can’t send the stock past $5. Is the final blow bringing Virgin Galactic down to Earth permanently? Branson pulled out of his own venture.
Earlier this month, in an interview, Branson said that he still loved the company, but he wouldn’t infuse SPCE with additional cash. Worse yet, Virgin Group slashed its stake to just below 8% of the total enterprise, indicating Branson is moving on permanently. In his interview, Branson said that Virgin Galactic “[had] sufficient funds to do its job on its own.” How does that statement hold up?
The company holds $270 million in cash and another $766 million in short-term investments, so we’ll say they have $1 billion on hand to fuel operations without further capital. Their current burn rate is slightly below $500 million annually – giving them two years to start turning a profit.
Palantir (PLTR)
Source: Smile Fight / Shuttterstock.com
Palantir (NYSE:PLTR) is one of the few success stories coming from the SPAC craze. Unlike other firms, Palantir’s motivation for a SPAC merger listing came (presumably) from a unique governance structure that effectively prevents any external shareholder from investor activism or guiding its direction via voting shares. The structure would have made standard IPO burdensome.
But three years later, Palantir is an undeniable winner. While shares are down by about half compared to their mid-pandemic highs, Palantir settled into a comfortable growth channel that’s both sustainable and rapidly compounding. The company just posted its fourth consecutive profitable quarter, dampening bearish cries that Palantir’s government and corporate contracts wouldn’t offset its high operating expenses.
Better yet, Palantir is made for the current artificial intelligence era. The company was one of the first to leverage machine learning and AI in earnest, kickstarting the current gold rush more than two decades ago. As the industry realizes AI’s potential, expect to see more AI-focused contracts in this post-SPAC stock’s future.
Bark (BARK)
Source: Shutterstock
This post-SPAC stock is a real dog. Bark (NYSE:BARK) a subscription-based pet toy and treat service, was a perfect fit for the pandemic era. Stuck at home, many doted on their dogs or expanded their furry family. BARK’s offerings were an easy sell, and its sales revenue consistently hit 50%+ growth stats.
But, just as BARK was perfect for the pandemic, it’s terrible for today’s economy. Consumers are tightening their belts, and household discretionary income is drying up. Likewise, luxury niceties are the first thing to fall from a budget plan, and few companies embody “luxury niceties” as much as BARK. True to form, BARK’s order volume is tanking at the same time marketing and acquisition costs soar.
I’s current strategy is to push into traditional retail as quickly as possible. BARK has a bevy of partnerships, including Target (NYSE:TGT), that serve as a sales stream for their toys. But CEO Matt Meeker wants to penetrate brick-and-mortar retail further, telling investors, “Just imagine how much bigger this can be when we take treats and all of our consumable products to 40,000 retail doors where we sell toys.”
The problem, of course, is that BARK’s core value proposition is home-delivered, curated boxes. Likewise, its operational model depends on recurring revenue from subscriptions. Forcing its way into retail is a recipe for disaster, as competition is steep and margins are slim.
DraftKings (DKNG)
Source: Shutterstock
DraftKings (NASDAQ:DKNG) had a bumpy beginning as regulatory uncertainty swirled around online gambling expansion but, like Palantir, the company has settled into a comfortable channel that supports continued growth. Shares surged this year, jumping 230% since January, but there’s continued upside for this sports betting stock.
Online sports betting is on track to hit $15.75 billion in net revenue by 2028. The industry is already competitive and will likely become more so over time. While startup and compliance costs are high for new entrants, spinning off digital betting is simple for existing brands, and there are basically no consumer switching costs. But, despite a narrow moat, DraftKings enjoys the first-mover advantage that makes it the name in online gambling. At the same time, it’s sufficiently ahead of the competition to be able to react rapidly to changing regulatory guidance and grow faster than new upstarts.
The company still has financial issues to address, but management expects 2024 to be a great year for DKNG. In anearnings call CEO Jason Robins called for substantial revenue, EBITDA, and free cash flow improvements. If Robins meets his lofty goals, DKNG is in for a wild run next year.
Digital World Acquisition (DWAC)
Source: mama_mia / Shutterstock.com
Digital World Acquisition (NASDAQ:DWAC) is a current SPAC stock that hasn’t yet completed its merger, but it’s undeniably dead in the water. The company has yet to merge with the Trump Media and Technology Group despite an initial 2021 target. Since then, the SPAC has been hit with a slew of legal concerns and political drama – none of which are worth covering, as they’ve been beaten to death.
TMTG’s inherent lack of viable monetization signals this SPAC stock’s end. There are two paths moving forward: DWAC/TMTG can’t successfully close, hanging DWAC bagholders out to dry. Or, somehow, the deal closes. Now, DWAC investors hold stock in a company with basically zero market share and rapidly declining downloads. TMTG simply can’t monetize effectively, and this company is destined for the dustbin.
DWAC is already returning capital to shareholders, clamoring for the exit. That means there isn’t much upside left for this SPAC stock.
Bridger Aerospace (BAER)
Source: Shutterstock
Bridger Aerospace (NASDAQ:BAER) is a newer entrant in the post-SPAC stock space, having completed its merger earlier this year. Though shares slipped about 30% since listing, this small-cap SPAC stock has a solid future ahead.
BAER is at the cutting edge of aerial firefighting, offering a range of aircraft to support rural wilderness firefighting efforts. The firefighting industry is expansive and diverse. Still, investors can look to California for an idea of BAER’s total addressable market. For the 2022 – 2023 budget year, California allocated $3.3 billion to direct firefighting efforts that include aerial suppression and control. And, since fires are omnipresent and aren’t going anywhere, that budget will continue expanding.
The company’s profits are slim thus far, but BAER posted record quarterly revenue and income in its most recent filing. At the same time, its fleet saw record utilization levels as more national and international government agencies clamored for BAER’s services. This post-SPAC stock is small, to be sure, but has solid financial footing and a very viable value proposition.
Westrock Coffee (WEST)
Source: Evgeny Karandaev/ShutterStock.com
Westrock Coffee (NASDAQ:WEST) is another new post-SPAC stock, completing its merger in late 2022. Shares trade around half what they are listed for, though, and the company’s financials don’t support long-term viability. Coffee is a steeply competitive industry, and without a unique differentiator, Westrock struggles to stand apart from more established retailers.
CEO Scott Ford told investors in its most recent earnings call that Westrock saw a “rapid fall off in volume demand.” That doesn’t bode well for the stock, considering other coffee retailers like Starbucks (NASDAQ:SBUX) posted solid sales growth over the same period. The company’s sales slipped 4.6% year-over-year, though net income admittedly improved substantially.
Still, WEST’s revenue costs are steep, and coffee is a low-margin product with limited opportunity for differentiation. At the same time, WEST has substantial debt and stands at a 2.12 debt-to-equity ratio. As interest costs rise, WEST will likely struggle to maintain its debt service obligations, which, combined with slipping sales, spells trouble for the post-SPAC stock.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post Post-SPAC Spotlight: 3 Stocks Set to Thrive, 4 Set to Dive 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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Unlike other firms, Palantir’s motivation for a SPAC merger listing came (presumably) from a unique governance structure that effectively prevents any external shareholder from investor activism or guiding its direction via voting shares. The company just posted its fourth consecutive profitable quarter, dampening bearish cries that Palantir’s government and corporate contracts wouldn’t offset its high operating expenses. CEO Scott Ford told investors in its most recent earnings call that Westrock saw a “rapid fall off in volume demand.” That doesn’t bode well for the stock, considering other coffee retailers like Starbucks (NASDAQ:SBUX) posted solid sales growth over the same period.
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Digital World Acquisition (DWAC) Source: mama_mia / Shutterstock.com Digital World Acquisition (NASDAQ:DWAC) is a current SPAC stock that hasn’t yet completed its merger, but it’s undeniably dead in the water. Bridger Aerospace (BAER) Source: Shutterstock Bridger Aerospace (NASDAQ:BAER) is a newer entrant in the post-SPAC stock space, having completed its merger earlier this year. Westrock Coffee (WEST) Source: Evgeny Karandaev/ShutterStock.com Westrock Coffee (NASDAQ:WEST) is another new post-SPAC stock, completing its merger in late 2022.
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With a few exceptions, like companies with unique governance structures or working in grey market industries, many companies that went public via SPAC merger didn’t have the financial strength or operational viability to pass underwriter due diligence via traditional IPO processes. Digital World Acquisition (DWAC) Source: mama_mia / Shutterstock.com Digital World Acquisition (NASDAQ:DWAC) is a current SPAC stock that hasn’t yet completed its merger, but it’s undeniably dead in the water. 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 Post-SPAC Spotlight: 3 Stocks Set to Thrive, 4 Set to Dive appeared first on InvestorPlace.
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Of course, some post-SPAC stocks are thriving today – but many aren’t. Bark (BARK) Source: Shutterstock This post-SPAC stock is a real dog. The company’s profits are slim thus far, but BAER posted record quarterly revenue and income in its most recent filing.
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2023-12-13 00:00:00 UTC
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Apple to be hit by EU antitrust order in fight with Spotify - Bloomberg News
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https://www.nasdaq.com/articles/apple-to-be-hit-by-eu-antitrust-order-in-fight-with-spotify-bloomberg-news
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Adds details from the report and background
Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday.
EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation.
The decision is slated for early next year and Apple could face a fine of as much as 10% of its annual sales, Bloomberg reported.
The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
The European Commission filed a chargesheet against Apple earlier this year, saying the conditions are unnecessary and mean customers may end up paying more.
Apple and representatives from the European Commission did not immediately respond to Reuters requests for comment.
Apple shares were marginally up in afternoon trading.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Arun Koyyur)
((yuvraj.malik@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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EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules. The European Commission filed a chargesheet against Apple earlier this year, saying the conditions are unnecessary and mean customers may end up paying more.
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Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
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Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
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Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The decision is slated for early next year and Apple could face a fine of as much as 10% of its annual sales, Bloomberg reported.
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2023-12-13 00:00:00 UTC
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Here's Why DocuSign (DOCU) is a Strong Growth Stock
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https://www.nasdaq.com/articles/heres-why-docusign-docu-is-a-strong-growth-stock-0
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: DocuSign (DOCU)
Founded in 2003 and headquartered in San Francisco, DocuSign is a global provider of cloud-based software. The company’s DocuSign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
DOCU is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. DOCU has a Growth Style Score of A, forecasting year-over-year earnings growth of 39.9% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.22 to $2.84 per share. DOCU also boasts an average earnings surprise of 24.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DOCU should be on investors' short 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
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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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy. 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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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Style Scores are broken down into four categories: Value Score Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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What are the Zacks Style Scores? That's where the Style Scores come in. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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0ccd6a77-090b-4298-b986-65571e5a9a4c
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712265.0
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2023-12-13 00:00:00 UTC
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Here's Why O'Reilly Automotive (ORLY) is a Strong Growth Stock
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https://www.nasdaq.com/articles/heres-why-oreilly-automotive-orly-is-a-strong-growth-stock-2
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: O'Reilly Automotive (ORLY)
O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. Founded in 1957, O'Reilly initially operated from a single store in Springfield, MO. The company’s stores offer several services and programs to customers, which include battery diagnostic testing, check engine light code extraction and loaner tool program, among others. The company offers vehicle accessories, such as floor mats and seat cover as well as maintenance items like antifreeze, engine additives, filters, fluids, lighting and wiper blades.
ORLY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ORLY has a Growth Style Score of A, forecasting year-over-year earnings growth of 14.3% for the current fiscal year.
14 analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.54 to $38.21 per share. ORLY also boasts an average earnings surprise of 4.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ORLY should be on investors' short 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
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. The company offers vehicle accessories, such as floor mats and seat cover as well as maintenance items like antifreeze, engine additives, filters, fluids, lighting and wiper blades.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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What are the Zacks Style Scores? That's where the Style Scores come in. ORLY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. Additionally, the company could be a top pick for growth investors.
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9a03ade2-2b28-401e-98f9-46817b1a77dc
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712266.0
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2023-12-13 00:00:00 UTC
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Here's Why Gibraltar Industries (ROCK) is a Strong Growth Stock
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https://www.nasdaq.com/articles/heres-why-gibraltar-industries-rock-is-a-strong-growth-stock-0
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gibraltar Industries (ROCK)
Gibraltar Industries Inc. manufactures and distributes products to the industrial and buildings market. The products range from ventilation and expanded metal to mail storage solutions and rain dispersion products and solutions.
ROCK is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ROCK has a Growth Style Score of A, forecasting year-over-year earnings growth of 21.5% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.16 to $4.13 per share. ROCK also boasts an average earnings surprise of 14.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROCK should be on investors' short 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
Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. 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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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. Click to get this free report Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. That's where the Style Scores come in. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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7b484687-091e-4614-9e88-cdc47a6070da
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712267.0
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2023-12-13 00:00:00 UTC
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Parr Pacific's (PARR) Hawaii Facility to Start Up in 2028
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https://www.nasdaq.com/articles/parr-pacifics-parr-hawaii-facility-to-start-up-in-2028
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Par Pacific Holdings PARR is making significant strides in Hawaii's renewable energy landscape with its 30-Megawatt renewable cogeneration development project. Recently named a finalist by power provider Hawaiian Electric HE, the initiative aligns with the state's renewable energy goals. The project, situated at Par Pacific's Kapolei refinery, capitalizes on existing infrastructure and supports Hawaii's shift toward clean energy.
Scheduled to start commercial operations in 2028, the facility will leverage renewable-fired electricity generation. It synergizes with the renewable hydrotreater conversion initiative, providing a localized avenue for the renewable liquid fuels manufactured. PARR believes that this endeavor will contribute significantly to Hawaii's decarbonization objectives. Notably, the cogeneration project aligns seamlessly with the energy provider's strategic approach of investing in both personnel and assets to address the dynamic requirements of the evolving energy landscape.
The project plans to use state-of-the-art, high-efficiency equipment for flexible renewable power production. At full capacity, it can generate power for 30,000 homes. Final investment and offtake agreement terms with Hawaiian Electric are set for negotiation in 2024, subject to regulatory approvals, including those from the Hawaii Public Utility Commission.
Par Pacific, an oil and gas refiner diversifying into renewables in a big way, is further contributing to Hawaii's sustainable energy future with a $90 million investment in the state's largest liquid renewable fuels manufacturing facility. Expected to be commissioned in 2025, the project will produce 61 million gallons annually of sustainable aviation fuel, renewable diesel, renewable naphtha, and renewable liquefied petroleum gases. These renewable fuels serve as low-carbon alternatives to conventional fossil fuels, supporting Hawaii's commitment to environmentally friendly energy sources.
Zacks Rank & Stock Picks
Par Pacific carries a Zacks Rank #3 (Hold) at present.
Meanwhile, investors interested in the energy sector might look at operators like Murphy USA MUSA and Liberty Energy LBRT, each currently carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Murphy USA: Murphy USA beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of 7%, on average.
Murphy USA is valued at around $7.6 billion. The company has seen its shares gain 28% in a year.
Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth.
Liberty Energy is valued at around $3 billion. LBRT has seen its shares rise 12.9% 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
Hawaiian Electric Industries, Inc. (HE) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR) : 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 project, situated at Par Pacific's Kapolei refinery, capitalizes on existing infrastructure and supports Hawaii's shift toward clean energy. Final investment and offtake agreement terms with Hawaiian Electric are set for negotiation in 2024, subject to regulatory approvals, including those from the Hawaii Public Utility Commission. 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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Par Pacific Holdings PARR is making significant strides in Hawaii's renewable energy landscape with its 30-Megawatt renewable cogeneration development project. Par Pacific, an oil and gas refiner diversifying into renewables in a big way, is further contributing to Hawaii's sustainable energy future with a $90 million investment in the state's largest liquid renewable fuels manufacturing facility. Click to get this free report Hawaiian Electric Industries, Inc. (HE) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Par Pacific Holdings, Inc. (PARR) : 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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Par Pacific, an oil and gas refiner diversifying into renewables in a big way, is further contributing to Hawaii's sustainable energy future with a $90 million investment in the state's largest liquid renewable fuels manufacturing facility. Meanwhile, investors interested in the energy sector might look at operators like Murphy USA MUSA and Liberty Energy LBRT, each currently carrying a Zacks Rank #2 (Buy). Click to get this free report Hawaiian Electric Industries, Inc. (HE) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Par Pacific Holdings, Inc. (PARR) : 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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Par Pacific Holdings PARR is making significant strides in Hawaii's renewable energy landscape with its 30-Megawatt renewable cogeneration development project. Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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712268.0
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2023-12-13 00:00:00 UTC
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Brokers Suggest Investing in StoneCo Ltd. (STNE): Read This Before Placing a Bet
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https://www.nasdaq.com/articles/brokers-suggest-investing-in-stoneco-ltd.-stne%3A-read-this-before-placing-a-bet
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about StoneCo Ltd. (STNE).
StoneCo Ltd. currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.
Of the 11 recommendations that derive the current ABR, seven are Strong Buy, representing 63.6% of all recommendations.
Brokerage Recommendation Trends for STNE
Check price target & stock forecast for StoneCo Ltd. here>>>
The ABR suggests buying StoneCo Ltd., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is STNE Worth Investing In?
Looking at the earnings estimate revisions for StoneCo Ltd., the Zacks Consensus Estimate for the current year has increased 7.9% over the past month to $0.85.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for StoneCo Ltd. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for StoneCo Ltd. may serve as a useful guide for investors.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
StoneCo Ltd. (STNE) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
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Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. Looking at the earnings estimate revisions for StoneCo Ltd., the Zacks Consensus Estimate for the current year has increased 7.9% over the past month to $0.85.
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StoneCo Ltd. currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for StoneCo Ltd. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for StoneCo Ltd. may serve as a useful guide for investors.
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Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for StoneCo Ltd. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for StoneCo Ltd. may serve as a useful guide for investors.
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712269.0
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2023-12-13 00:00:00 UTC
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Is Aquestive Therapeutics (AQST) Stock Outpacing Its Medical Peers This Year?
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DCOMP
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https://www.nasdaq.com/articles/is-aquestive-therapeutics-aqst-stock-outpacing-its-medical-peers-this-year-1
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Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has Aquestive Therapeutics (AQST) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Aquestive Therapeutics is one of 1088 individual stocks in the Medical sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Aquestive Therapeutics is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AQST's full-year earnings has moved 72.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that AQST has returned about 119.5% since the start of the calendar year. At the same time, Medical stocks have lost an average of 5.9%. As we can see, Aquestive Therapeutics is performing better than its sector in the calendar year.
Another stock in the Medical sector, Dynavax Technologies (DVAX), has outperformed the sector so far this year. The stock's year-to-date return is 25.9%.
The consensus estimate for Dynavax Technologies' current year EPS has increased 49.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Aquestive Therapeutics is a member of the Medical - Drugs industry, which includes 194 individual companies and currently sits at #72 in the Zacks Industry Rank. This group has lost an average of 5.7% so far this year, so AQST is performing better in this area.
Dynavax Technologies, however, belongs to the Medical - Biomedical and Genetics industry. Currently, this 528-stock industry is ranked #58. The industry has moved -18.1% so far this year.
Investors interested in the Medical sector may want to keep a close eye on Aquestive Therapeutics and Dynavax Technologies as they attempt to continue their solid performance.
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
Aquestive Therapeutics, Inc. (AQST) : Free Stock Analysis Report
Dynavax Technologies Corporation (DVAX) : 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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Investors interested in the Medical sector may want to keep a close eye on Aquestive Therapeutics and Dynavax Technologies as they attempt to continue their solid performance. 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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Within the past quarter, the Zacks Consensus Estimate for AQST's full-year earnings has moved 72.4% higher. Another stock in the Medical sector, Dynavax Technologies (DVAX), has outperformed the sector so far this year. Click to get this free report Aquestive Therapeutics, Inc. (AQST) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Another stock in the Medical sector, Dynavax Technologies (DVAX), has outperformed the sector so far this year. Breaking things down more, Aquestive Therapeutics is a member of the Medical - Drugs industry, which includes 194 individual companies and currently sits at #72 in the Zacks Industry Rank. Click to get this free report Aquestive Therapeutics, Inc. (AQST) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Our latest available data shows that AQST has returned about 119.5% since the start of the calendar year. Another stock in the Medical sector, Dynavax Technologies (DVAX), has outperformed the sector so far this year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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712270.0
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2023-12-13 00:00:00 UTC
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Zacks Industry Outlook Highlights Caterpillar, Terex, H&E Equipment Services and Manitowoc
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-caterpillar-terex-he-equipment-services-and-manitowoc
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For Immediate Release
Chicago, IL – December 13, 2023 – Today, Zacks Equity Research discusses Caterpillar Inc. CAT, Terex TEX, H&E Equipment Services HEES and Manitowoc MTW.
Industry: Construction & Mining Equipment
Link: https://www.zacks.com/commentary/2196761/4-construction-mining-equipment-stocks-defying-industry-odds
The Zacks Manufacturing - Construction and Mining industry faces challenges due to a decline in orders, reflecting subdued customer spending. While elevated input costs pose a concern, signs of improving supply-chain issues offer some respite.
Despite this setback, increased infrastructure investment in the United States and demand from the mining sector, driven by the energy transition trend, are expected to buoy the industry. Key players, such as Caterpillar Inc., Terex, H&E Equipment Services and Manitowoc, are poised to benefit from these trends. Their emphasis on introducing technologically advanced products, productivity and efficiency enhancements will aid growth.
About the Industry
The Zacks Manufacturing - Construction and Mining industry comprises companies that manufacture and sell construction, mining and utility equipment. They support customers using machinery in the construction of commercial, institutional and residential buildings, and infrastructure projects. Their equipment is also utilized in underground mining, drilling and mineral processing, and surface mining to extract and haul copper, iron ore, coal, oil sands, aggregates, gold, and other minerals and ores.
Their products are varied, including loaders, pavers, dozers, excavators, concrete mixer trucks, crushing, pulverizing, and screening equipment, tractors and cranes. Industry participants support oil and gas, power generation, marine, rail, and industrial applications through their reciprocating engines, generator sets, gas turbines and turbine-related services.
Trends Shaping the Future of the Manufacturing - Construction and Mining Industry
13-Month Contraction Streak in U.S. Manufacturing Acts as a Woe: Per the Federal Reserve's latest update, industrial production dipped 0.6% in October 2023, with manufacturing output falling 0.7%. Overall, industrial production has slipped 0.7% over the 12 months ended October 2023. The Institute for Supply Management's manufacturing index was 46.7% in November, contracting for the 13th month in a row. The average for the 12 months ended November 2023 is 47.2%.
Customers have been curbing their spending amid the ongoing uncertainty in the global economy and persisting inflationary trends. The New Orders Index was 48.3% in November, languishing in the contraction territory for 15 months. Companies are still managing outputs appropriately as order softness continues. The industry has also been bearing the brunt of supply-chain issues. Some industry players have recently noted that supply-chain issues are easing.
Energy Transition Trend, Construction Spending to Aid the Industry: The intensifying global focus on shifting from fossil fuels to zero emissions will require a large number of commodities, which, in turn, will support mining equipment demand in the years to come. The U.S. government's plans to increase investment in infrastructure construction, particularly in critical subsectors, such as transportation, water and sewerage, and telecommunications, should support demand in the coming years.
Higher Pricing, Cost Cuts to Boost Margins: The industry is facing input cost inflation, and transport and logistic costs. Industry players are focusing on pricing actions and efforts to improve productivity and efficiency. They are constantly implementing cost-reduction actions, which are likely to help sustain margins in this scenario. The companies are focused on streamlining their operations and realigning around high-growth key markets or customer segments to enhance their performances.
Investment in Digital Initiatives a Key Catalyst: Industry participants are investing in digital initiatives like AI, cloud computing, advanced analytics and robotics. Digital transformation aids organizations in boosting productivity and increasing efficiency, reliability and safety, thereby enriching customer satisfaction. With the pressing need to cut carbon emissions, companies worldwide are relying more on autonomous machinery. Thus, players in the industry are stepping up their research and technological capabilities to bring products into the market equipped with the latest technology.
Zacks Industry Rank Indicates Weak Prospects
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dim prospects in the near term. The Zacks Manufacturing - Construction and Mining industry, which is part of the broader Zacks Industrial Products Sector currently, carries a Zacks Industry Rank #230, which places it at the bottom 8% of 252 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.
Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture.
Industry Versus Broader Market
The Manufacturing - Construction and Mining industry has underperformed the Zacks S&P 500 composite but beat its sector over the past year.
Over this period, the industry has risen 10.8% compared with the sector's growth of 5.1%. The Zacks S&P 500 composite has moved up 16%.
Industry's Current Valuation
On the basis of the forward 12-month EV/EBITDA ratio, a commonly used multiple for valuing Manufacturing - Construction and Mining companies, we see that the industry is currently trading at 9.04 compared with the S&P 500's 10.96 and the Industrial Products sector's trailing 12-month EV/EBITDA of 16.13.
Over the last five years, the industry traded as high as 14.83 and as low as 7.04, the median being 10.20.
4 Manufacturing - Construction & Mining Stocks to Watch
H&E Equipment Services: The company reported a record adjusted EBITDA of $189 million, with an adjusted EBITDA margin of 47.2% (a year-over-year expansion of 440 basis points) in the third quarter of 2023. This was attributed to solid industry conditions, and the company's strong fleet growth and branch expansion.
Owing to the higher interest rates and delays seen in equipment deliverability, customers now prefer renting equipment rather than owning it, which works in favor of HEES. The company's fleet investment through the first nine months of 2023 was a record $595.2 million and its fleet size was higher than $2.7 billion as of Sep 30, 2023. HEES boasts the youngest fleet in the industry, with an average rental fleet age of 41.1 months as of Sep 30, 2023 (versus the industry's 49.2 months).
To capitalize on the ongoing demand, HEES has upped its gross fleet investment target to $650-$700 million for 2023. H&E also continues to grow its branch network through organic expansion and acquisitions, with 17 branches added from January to November 2023. It has recently agreed to acquire Precision Rentals, which will add two more locations. The company's shares have gained 4% over the past year.
Baton Rouge, LA-based H&E Equipment Services is one of the largest integrated equipment services companies in the United States. The Zacks Consensus Estimate for fiscal 2023 earnings indicates year-over-year growth of 21.6%. The consensus mark has moved up 8% over the past 60 days. HEES has a trailing four-quarter earnings surprise of 21.4%, on average and an estimated long-term earnings growth rate of 13.4%. The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Caterpillar: The company's revenues and earnings have been growing year over year for 11 straight quarters, owing to its cost-saving actions, strong end-market demand and pricing actions. CAT ended the third quarter of 2023 with an impressive backlog of $28.1 billion, which will support the company's top line in the upcoming quarters.
Caterpillar is anticipated to gain from strength in residential construction and non-residential construction in the United States. It is funding initiatives focused on areas of expanded offerings and services, and digital initiatives like e-commerce, sustainability and electrification, which will drive long-term growth. The stock has gained around 11% in a year, aided by these tailwinds.
Known for its iconic yellow machines, Caterpillar is the largest global construction and mining equipment manufacturer. The Zacks Consensus Estimate for CAT's 2023 earnings indicates year-over-year growth of 48.7%. Earnings estimates have moved up 4% over the past 60 days. Caterpillar has a trailing four-quarter earnings surprise of 16.6%, on average. CAT has an estimated long-term earnings growth rate of 12%. The company currently carries a Zacks Rank #3.
Terex: The company has been delivering year-over-year earnings growth over the past 11 quarters, benefiting from strong demand and improved volumes. Its backlog was $3.3 billion at the end of third-quarter 2023, the second highest in recent history. This positions the company well for improved results in the coming quarters. TEX is progressing well on its "Execute, Innovate, Grow" strategy, which should drive growth. In sync with this, the company is investing in innovative products, digital innovation, the expansion of manufacturing facilities and strategic acquisitions. TEX shares have gained 18% over the past year.
Norwalk, CT-based Terex manufactures and sells aerial work platforms and material processing machinery worldwide. The Zacks Consensus Estimate for 2023 earnings indicates year-over-year growth of 60.9%. Earnings estimates have moved north by 2% over the past 60 days. TEX has a trailing four-quarter earnings surprise of 30.4%, on average, and an estimated long-term earnings growth rate of 11.7%. The company currently carries a Zacks Rank #3.
Manitowoc: The company has been witnessing high customer demand, as evident from its higher order levels and backlog. Backed by this, its share price has increased 53% in the past year. The company's innovation pipeline has been robust and its aftermarket business has been performing well. MTW remains focused on improving this crucial part of its business. The company is committed to cash preservation and balance sheet management, while funding critical programs for growth.
Given that the tower crane market in China is the largest in the world, Manitowoc is scaling up its China tower crane business. It is also expanding its tower crane rental fleet in Europe. These strategic initiatives, along with MTW's pursuit of acquisition opportunities to accelerate product development programs in its all-terrain product line, will help drive long-term growth.
Milwaukee, WI-based Manitowoc provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East and the Asia Pacific. The Zacks Consensus Estimate for this year's earnings has increased 10% in the past 60 days. The consensus mark indicates year-over-year growth of 53%. The company has a trailing four-quarter earnings surprise of 885%, on average. MTW currently carries a Zacks Rank #3.
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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/performance for 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
The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Terex Corporation (TEX) : Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – December 13, 2023 – Today, Zacks Equity Research discusses Caterpillar Inc. CAT, Terex TEX, H&E Equipment Services HEES and Manitowoc MTW. Their products are varied, including loaders, pavers, dozers, excavators, concrete mixer trucks, crushing, pulverizing, and screening equipment, tractors and cranes. Energy Transition Trend, Construction Spending to Aid the Industry: The intensifying global focus on shifting from fossil fuels to zero emissions will require a large number of commodities, which, in turn, will support mining equipment demand in the years to come.
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The Zacks Manufacturing - Construction and Mining industry, which is part of the broader Zacks Industrial Products Sector currently, carries a Zacks Industry Rank #230, which places it at the bottom 8% of 252 Zacks industries. 4 Manufacturing - Construction & Mining Stocks to Watch H&E Equipment Services: The company reported a record adjusted EBITDA of $189 million, with an adjusted EBITDA margin of 47.2% (a year-over-year expansion of 440 basis points) in the third quarter of 2023. Click to get this free report The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report To read this article on Zacks.com click here.
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About the Industry The Zacks Manufacturing - Construction and Mining industry comprises companies that manufacture and sell construction, mining and utility equipment. Zacks Industry Rank Indicates Weak Prospects The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dim prospects in the near term. The Zacks Manufacturing - Construction and Mining industry, which is part of the broader Zacks Industrial Products Sector currently, carries a Zacks Industry Rank #230, which places it at the bottom 8% of 252 Zacks industries.
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The Zacks Manufacturing - Construction and Mining industry, which is part of the broader Zacks Industrial Products Sector currently, carries a Zacks Industry Rank #230, which places it at the bottom 8% of 252 Zacks industries. It is also expanding its tower crane rental fleet in Europe. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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6049c87e-c377-407e-a73f-d6f5d78a26d9
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712271.0
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2023-12-13 00:00:00 UTC
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Arch Capital Group (ACGL) is a Top-Ranked Value Stock: Should You Buy?
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DCOMP
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https://www.nasdaq.com/articles/arch-capital-group-acgl-is-a-top-ranked-value-stock%3A-should-you-buy-0
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Arch Capital Group (ACGL)
Established in 1995 and headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. offers insurance, reinsurance and mortgage insurance across the world. Through its wholly-owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity, workers compensation and umbrella liability and employers liability insurance coverages. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines while maintaining a focus on writing specialty lines of insurance and reinsurance.
ACGL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.43; value investors should take notice.
For fiscal 2023, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.76 to $7.70 per share. ACGL boasts an average earnings surprise of 35.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ACGL should be on investors' short 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
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum. As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy. 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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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines while maintaining a focus on writing specialty lines of insurance and reinsurance. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Style Scores are broken down into four categories: Value Score Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum. That's where the Style Scores come in. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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984720d7-d497-4dca-8378-2cd5baad24cc
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712272.0
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2023-12-13 00:00:00 UTC
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The J.M. Smucker's (SJM) Core Priorities Aid, SD&A Costs Hurt
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DCOMP
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https://www.nasdaq.com/articles/the-j.m.-smuckers-sjm-core-priorities-aid-sda-costs-hurt
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The J. M. Smucker Company SJM has been benefiting from strong brand demand and net price realization. Core priorities, such as portfolio reshaping and cost structure streamlining, have proven effective.
However, elevated selling, distribution and administrative costs are expected to impact the bottom line in fiscal 2024. Also, net sales are forecasted to decline in the fiscal 2024 due to the recent divestitures. Nonetheless, SJM’s unwavering focus on key growth platforms of coffee, snacking and pet foods keeps it well-placed for the long run. In fact, for fiscal 2024, the Zacks Rank #3 (Hold) company anticipates comparable net sales to rise 8.5-9% on elevated net pricing and a favorable volume/mix.
Core Strategies Underway
The J. M. Smucker’s core priorities include driving commercial excellence, reshaping its portfolio, streamlining cost structure and unleashing its organization to win. Strength in such strategies has been helping the company improve in-store fundamentals and stock performance for the brands. The company is implementing inflation-justified pricing actions across all businesses.
It is also committed to increasing its focus and resources to reshape its portfolio to achieve sustainable growth across pet food and pet snacks, coffee as well as snacking categories. The company divested Sahale Snacks and announced the sale of its Canadian condiments business in the second quarter of fiscal 2024.
The J. M. Smucker concluded the divestiture of certain pet food brands in the fourth quarter of fiscal 2023 to reshape the portfolio. This brings the pet business structure to include 60% pet snacks and 40% cat food. This move, which will help the company direct more resources toward the fast-growing and higher-margin dog snacks category, is expected to enhance the product mix and profit over time. SJM anticipates increasing its dog snacks portfolio to $1 billion (in annual net sales) in the next few years.
Image Source: Zacks Investment Research
The J. M. Smucker also pursues strategic acquisitions in the United States as well as overseas to solidify its portfolio. It acquired the premier snacking company, Hostess Brands, in November 2023, which is expected to contribute sales worth roughly $300 million in the third quarter. Going forward, Hostess Brands is likely to form around 15% of the company’s total sales.
High SD&A Costs
The J. M. Smucker’s bottom-line view for fiscal 2024 assumes elevated SD&A expenses. This includes costs related to Hostess Brands’ acquisition, along with pre-production costs associated with Uncrustables capacity expansion, elevated marketing expenditures and increased investments in liquid coffee.
Wrapping Up
The J. M. Smucker has been benefiting from the sustained demand for its products, together with the favorable net price realization and effective cost control. For fiscal 2024, the adjusted EPS is expected to be in the band of $9.25-$9.65, including the net adverse impacts of the pet food divestiture and Hostess Brands acquisition. Excluding the impact of the dilution related to the Hostess Brands acquisition, the adjusted EPS is likely to increase nearly 10% year over year.
Management expects long-term annual net sales growth of about 4% for the Sweet Baked Snacks business. The combined capabilities of Hostess Brands and The J.M. Smucker products are likely to result in strengthened distribution, supporting the company’s long-term growth expectations. Additionally, management envisions annual cost synergies of around $100 million, with half of this expected to materialize in fiscal 2025 and the full annualized amount to be achieved by the end of fiscal 2026.
Shares of SJM have lost 1.2% in the past three months compared with the industry’s decline of 1.1%.
3 Appetizing Picks
The Kraft Heinz Company KHC, a food and beverage product company, currently carries a Zacks Rank #2 (Buy). KHC has a trailing four-quarter earnings surprise of 9.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kraft Heinz’s current financial-year sales and earnings suggests growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Celsius Holdings, Inc. CELH, which develops, processes, markets, distributes and sells functional drinks and liquid supplements, holds a Zacks Rank #2. CELH has a trailing four-quarter earnings surprise of 110.9%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
Vital Farms Inc. VITL offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2. VITL has a trailing four-quarter earnings surprise of 145%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure.
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
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This move, which will help the company direct more resources toward the fast-growing and higher-margin dog snacks category, is expected to enhance the product mix and profit over time. For fiscal 2024, the adjusted EPS is expected to be in the band of $9.25-$9.65, including the net adverse impacts of the pet food divestiture and Hostess Brands acquisition. 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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It is also committed to increasing its focus and resources to reshape its portfolio to achieve sustainable growth across pet food and pet snacks, coffee as well as snacking categories. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. Click to get this free report The J. M. Smucker Company (SJM) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In fact, for fiscal 2024, the Zacks Rank #3 (Hold) company anticipates comparable net sales to rise 8.5-9% on elevated net pricing and a favorable volume/mix. For fiscal 2024, the adjusted EPS is expected to be in the band of $9.25-$9.65, including the net adverse impacts of the pet food divestiture and Hostess Brands acquisition. Click to get this free report The J. M. Smucker Company (SJM) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In fact, for fiscal 2024, the Zacks Rank #3 (Hold) company anticipates comparable net sales to rise 8.5-9% on elevated net pricing and a favorable volume/mix. For fiscal 2024, the adjusted EPS is expected to be in the band of $9.25-$9.65, including the net adverse impacts of the pet food divestiture and Hostess Brands acquisition. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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e5454140-1c08-447e-a2d8-d18d2caee8a3
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712273.0
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2023-12-13 00:00:00 UTC
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Okta (OKTA) Crossed Above the 200-Day Moving Average: What That Means for Investors
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DCOMP
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https://www.nasdaq.com/articles/okta-okta-crossed-above-the-200-day-moving-average%3A-what-that-means-for-investors
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nan
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After reaching an important support level, Okta (OKTA) could be a good stock pick from a technical perspective. OKTA surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
Over the past four weeks, OKTA has gained 9.7%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.
The bullish case solidifies once investors consider OKTA's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 14 higher, while the consensus estimate has increased too.
Investors should think about putting OKTA on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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
Okta, Inc. (OKTA) : 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 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. 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 bullish case solidifies once investors consider OKTA's positive earnings estimate revisions. Investors should think about putting OKTA on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. Click to get this free report Okta, Inc. (OKTA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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After reaching an important support level, Okta (OKTA) could be a good stock pick from a technical perspective. Investors should think about putting OKTA on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. Click to get this free report Okta, Inc. (OKTA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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OKTA surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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207e6e41-29e5-4fe5-83ce-9300ad6db5e5
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712274.0
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2023-12-13 00:00:00 UTC
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Is American Equity Investment Life Holding (AEL) Stock Outpacing Its Finance Peers This Year?
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DCOMP
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https://www.nasdaq.com/articles/is-american-equity-investment-life-holding-ael-stock-outpacing-its-finance-peers-this-1
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nan
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Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. American Equity Investment (AEL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.
American Equity Investment is a member of our Finance group, which includes 844 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. American Equity Investment is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AEL's full-year earnings has moved 12.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, AEL has moved about 21.2% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 13.1% on average. This means that American Equity Investment is performing better than its sector in terms of year-to-date returns.
Federal Agricultural Mortgage (AGM) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 52%.
Over the past three months, Federal Agricultural Mortgage's consensus EPS estimate for the current year has increased 2.1%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, American Equity Investment belongs to the Insurance - Life Insurance industry, which includes 13 individual stocks and currently sits at #62 in the Zacks Industry Rank. Stocks in this group have gained about 21.2% so far this year, so AEL is performing better this group in terms of year-to-date returns.
In contrast, Federal Agricultural Mortgage falls under the Financial - Mortgage & Related Services industry. Currently, this industry has 15 stocks and is ranked #136. Since the beginning of the year, the industry has moved -20.5%.
American Equity Investment and Federal Agricultural Mortgage could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.
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
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
Federal Agricultural Mortgage Corporation (AGM) : 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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American Equity Investment (AEL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? American Equity Investment is a member of our Finance group, which includes 844 different companies and currently sits at #9 in the Zacks Sector Rank. 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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Looking more specifically, American Equity Investment belongs to the Insurance - Life Insurance industry, which includes 13 individual stocks and currently sits at #62 in the Zacks Industry Rank. American Equity Investment and Federal Agricultural Mortgage could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks. Click to get this free report American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report Federal Agricultural Mortgage Corporation (AGM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking more specifically, American Equity Investment belongs to the Insurance - Life Insurance industry, which includes 13 individual stocks and currently sits at #62 in the Zacks Industry Rank. American Equity Investment and Federal Agricultural Mortgage could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks. Click to get this free report American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report Federal Agricultural Mortgage Corporation (AGM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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American Equity Investment is a member of our Finance group, which includes 844 different companies and currently sits at #9 in the Zacks Sector Rank. Federal Agricultural Mortgage (AGM) is another Finance stock that has outperformed the sector so far this year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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5b0ca4dd-8275-46a9-950c-9abe0f7d1667
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712275.0
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2023-12-13 00:00:00 UTC
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Why Allison Transmission (ALSN) is a Top Value Stock for the Long-Term
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DCOMP
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https://www.nasdaq.com/articles/why-allison-transmission-alsn-is-a-top-value-stock-for-the-long-term-2
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nan
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nan
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Allison Transmission (ALSN)
Headquartered in Indianapolis, IN, Allison Transmission Holdings, Inc. is a manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles. In fact, the company is the largest producer of fully-automatic transmissions, holding the leading position in several niche markets. The firm also offers electric hybrid and fully electric propulsion systems.
ALSN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.98; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.02 to $7.01 per share. ALSN boasts an average earnings surprise of 17.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ALSN should be on investors' short 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
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. 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 research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio. Click to get this free report Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B.
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What are the Zacks Style Scores? ALSN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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7b9df32f-4db6-4b3c-801c-56d0534c60f0
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712276.0
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2023-12-13 00:00:00 UTC
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Here's Why Campbell Soup (CPB) is a Strong Value Stock
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DCOMP
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https://www.nasdaq.com/articles/heres-why-campbell-soup-cpb-is-a-strong-value-stock
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nan
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nan
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Campbell Soup (CPB)
Based in Camden, NJ, Campbell Soup Company, together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products. The company was instituted as a business corporation on Nov 23, 1922 under the laws of New Jersey.
CPB is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.39; value investors should take notice.
For fiscal 2024, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $3.08 per share. CPB boasts an average earnings surprise of 5.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CPB should be on investors' short 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
Campbell Soup Company (CPB) : 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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So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks. Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. 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 new and old investors, taking full advantage of the stock market and investing with confidence are common goals. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Click to get this free report Campbell Soup Company (CPB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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What are the Zacks Style Scores? That's where the Style Scores come in. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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4cafe448-6e41-4e78-b9e2-db19ea6976b9
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712277.0
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2023-12-13 00:00:00 UTC
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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
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DCOMP
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https://www.nasdaq.com/articles/are-you-a-value-investor-this-1-stock-could-be-the-perfect-pick-381
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nan
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nan
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CNA Financial (CNA)
Headquartered in Chicago, IL, CNA Financial Corporation was established in 1853. It was incorporated in 1967. The company operates as a P&C insurer. It offers commercial P&C insurance products, mainly across the United States. It markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries.
CNA is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.48; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.11 to $4.41 per share. CNA boasts an average earnings surprise of 9.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CNA should be on investors' short 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
CNA Financial Corporation (CNA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy. It markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries. 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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. Click to get this free report CNA Financial Corporation (CNA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. CNA is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
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2c667e8c-3ecd-479e-ae92-86c735c2fdbd
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712278.0
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2023-12-13 00:00:00 UTC
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Here's What Keeps Tractor Supply (TSCO) Stock on Growth Track
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DCOMP
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https://www.nasdaq.com/articles/heres-what-keeps-tractor-supply-tsco-stock-on-growth-track
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nan
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nan
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Tractor Supply Company TSCO has been benefitting from its Life Out Here Strategy, ‘ONETractor’ Strategy, Neighbor’s Club membership program and healthy product demand. Also, the recent acquisition of Orscheln Farm and Home, store-growth initiatives, and comparable store sales growth bode well. Continued market share growth and progress on its strategic initiatives drive optimism.
Sturdy demand for everyday merchandise, including consumable, usable and edible products, as well as year-round products, have been contributing to comparable store sales (comps) growth. Further, its store growth plans have been aiding the comps performance over the years.
The company’s focus on its strategic initiatives has been well-reflected in its forward estimates, which suggest notable growth. The Zacks Consensus Estimate for TSCO’s 2023 sales and earnings suggests growth of 2.6% and 3.4%, respectively, from the year-ago period’s reported numbers.
Image Source: Zacks Investment Research
What Keeps TSCO in Good Stride?
Tractor Supply is expected to retain its growth trajectory on continued progress on its Life Out Here lifestyle assortment, and convenient shopping format to gain customers and market share. The strategy is essentially based on five key pillars — customers, digitization, execution, team members and total shareholder return.
As part of the plan, the company has set its long-term financial growth targets for 2022-2026. Management envisions achieving net sales growth of 6-7%, whereas comps are expected to grow 4-5%. The operating margin is expected to be 10.1-10.6% during the 2022-2026 period, with 8-11% growth in earnings per share. The company is also poised to benefit from the launch of Field Activity Support Team, and the implementation of various technology and service enhancements across the enterprise.
Additionally, Tractor Supply is focused on integrating its physical and digital operations to offer consumers a seamless shopping experience through its ‘ONETractor’ strategy. The company’s omni-channel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and a new mobile app.
Tractor Supply exited the third quarter with high-single-digit e-commerce revenue growth, driven by a strong conversion performance and strength in the buy online, deliver from store program. Its Neighbor's Club program accounted for more than 77% of digital sales in the quarter under review, driven by continued favorable trends and higher retentions. Management earlier predicted to reach more than $2 billion in sales by 2026, out of which it has already attained $1 billion.
Tractor Supply is persistently focusing on store growth initiatives, which include the expansion of its store base and the incorporation of technological advancements to induce traffic and drive the top line. As part of its long-term store plan, Tractor Supply targets to reach 3,000 stores in the United States. To achieve this, it anticipates accelerating its annual new store growth to 90 per year in 2025 and 80 stores in 2024. Management intends to open 70 Tractor Supply stores and 10-15 Petsense stores in 2023.
The company announced an update to its long-term store plan and several new real estate programs to strengthen its balance sheet and real estate portfolio. As part of this, TSCO set a target of 3,000 Tractor Supply stores in the United States, up 200 locations from its prior guidance.
Hurdles on the Way
Tractor Supply has been feeling the pinch of inflation woes and rising costs. The company expects muted consumer spending and an unfavorable seasonal category performance throughout the remainder of the year. This led to management lowering its guidance for 2023. Also, higher depreciation and amortization, the opening of a distribution center, the impacts of higher medical claims, and fixed cost deleverage continue to act as deterrents.
TSCO expects net sales of $14.5-$14.6 billion for 2023, with comps remaining flat year over year. The operating margin is anticipated to be 10.1-10.2%. Earnings per share are expected to be $10.00-$10.10.
Driven by the soft view, shares of the Zacks Rank #3 (Hold) company have lost 1.2% in the past six months compared with the industry’s decline of 0.4%. Additionally, the stock has underperformed the sector and S&P 500’s growth of 7.7% and 5.2%, respectively, in the same period.
Key Picks
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely Abercrombie & Fitch ANF, American Eagle Outfitters AEO and Deckers Outdoor DECK.
Abercrombie currently sports a Zacks Rank #1 (Strong Buy). ANF has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have rallied 134.6% in the past six months. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s current financial year’s sales suggests growth of 13.3% from the year-ago period’s reported figure. Meanwhile, the consensus mark for earnings per share indicates significant growth of 2,196% from the prior-year period’s actual.
American Eagle has a trailing four-quarter earnings surprise of 23.02%, on average. It carries a Zacks Rank #2 (Buy) at present. Shares of AEO have risen 75.9% in the past six months.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales and earnings suggests growth of 4% and 39.2%, respectively, from the year-ago period's reported figures.
Deckers Outdoor has a trailing four-quarter earnings surprise of 26.3%, on average. It currently has a Zacks Rank #2. Shares of DECK have rallied 39.2% in the past six months.
The Zacks Consensus Estimate for Deckers Outdoor’s current financial-year sales and earnings suggests growth of 11.4% and 20.9%, respectively, from the year-ago period's reported figures.
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
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Tractor Supply Company (TSCO) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : 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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Tractor Supply is expected to retain its growth trajectory on continued progress on its Life Out Here lifestyle assortment, and convenient shopping format to gain customers and market share. Tractor Supply exited the third quarter with high-single-digit e-commerce revenue growth, driven by a strong conversion performance and strength in the buy online, deliver from store program. Key Picks We have highlighted three better-ranked stocks from the Consumer Staple sector, namely Abercrombie & Fitch ANF, American Eagle Outfitters AEO and Deckers Outdoor DECK.
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Key Picks We have highlighted three better-ranked stocks from the Consumer Staple sector, namely Abercrombie & Fitch ANF, American Eagle Outfitters AEO and Deckers Outdoor DECK. The Zacks Consensus Estimate for Abercrombie’s current financial year’s sales suggests growth of 13.3% from the year-ago period’s reported figure. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for American Eagle’s current financial-year sales and earnings suggests growth of 4% and 39.2%, respectively, from the year-ago period's reported figures. The Zacks Consensus Estimate for Deckers Outdoor’s current financial-year sales and earnings suggests growth of 11.4% and 20.9%, respectively, from the year-ago period's reported figures. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Further, its store growth plans have been aiding the comps performance over the years. Earnings per share are expected to be $10.00-$10.10. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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a4f649f5-680f-4dc7-b2a7-1c74f5cd9755
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712279.0
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2023-12-13 00:00:00 UTC
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Why Wex (WEX) is a Top Value Stock for the Long-Term
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DCOMP
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https://www.nasdaq.com/articles/why-wex-wex-is-a-top-value-stock-for-the-long-term-1
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nan
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nan
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Wex (WEX)
Headquartered in South Portland, ME, WEX Inc. is a leading provider of payment processing and business solutions across a wide spectrum of sectors, including fleet, travel and healthcare.
WEX is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.15; value investors should take notice.
For fiscal 2023, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.43 to $14.72 per share. WEX boasts an average earnings surprise of 5.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, WEX should be on investors' short 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
WEX Inc. (WEX) : 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.
|
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. 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 research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium includes access to the Zacks Style Scores as well. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
|
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
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The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum. That's where the Style Scores come in. WEX is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
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f8bbd34b-8f13-42e0-b0c0-acfa82aa335b
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712280.0
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2023-12-13 00:00:00 UTC
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Down -10.96% in 4 Weeks, Here's Why You Should You Buy the Dip in Liberty Oilfield Services (LBRT)
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DCOMP
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https://www.nasdaq.com/articles/down-10.96-in-4-weeks-heres-why-you-should-you-buy-the-dip-in-liberty-oilfield-services
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nan
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A downtrend has been apparent in Liberty Oilfield Services (LBRT) lately with too much selling pressure. The stock has declined 11% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
How to Determine if a Stock is Oversold
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for LBRT
The RSI reading of 28.61 for LBRT is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering LBRT in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, LBRT currently has 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. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks 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
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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However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround. 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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Why a Trend Reversal is Due for LBRT The RSI reading of 28.61 for LBRT is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Click to get this free report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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How to Determine if a Stock is Oversold We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. Why a Trend Reversal is Due for LBRT The RSI reading of 28.61 for LBRT is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway.
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RSI oscillates between zero and 100. This is a more conclusive indication of the stock's potential turnaround in the near term. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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4b7fb904-600a-43a9-ace9-0e5d5276b08b
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712281.0
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2023-12-13 00:00:00 UTC
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Service Corporation (SCI) Sees Growth in Cemetery Revenues
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DCOMP
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https://www.nasdaq.com/articles/service-corporation-sci-sees-growth-in-cemetery-revenues
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nan
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Service Corporation International SCI has been experiencing growth in its Cemetery segment revenues. Dedication to strategic acquisitions and the establishment of new funeral homes for enhanced returns is contributing to the company’s growth story.
However, a slowdown in consumer discretionary spending attributed to inflation, is a concern. Looking ahead to 2023, the company anticipates a low-to-mid-single-digit reduction in funeral volumes due to the pandemic's pull-forward impact.
Factors Keeping SCI Well-Placed
Service Corporation has been seeing a rise in Cemetery segment revenues for a while now. In the third quarter of 2023, consolidated Cemetery revenues came in at $447.1 million, up from $423.8 million reported in the year-ago quarter. Comparable cemetery revenues increased 5.2%. The upside was mainly caused by increased core revenues to the tune of $21.4 million. The main reason for this expansion can be attributed to the conclusion of construction projects in the third quarter. Furthermore, an uptick in income from merchandise and service trust funds contributed to growth.
Management expects preneed cemetery sales production growth in the range of flat to an increase at a low-single-digit rate in the fourth quarter. In 2024, the company expects cemetery revenue growth in low-to-mid-single digits due to a normalized pre-pandemic growth trajectory.
The company maintains a steadfast commitment to its expansion efforts. During the first nine months of 2023, the company incurred capital expenditures of $267.8 million, which included increased cemetery development expenditures and digital investments, among others. The company invested $148 million in its current businesses, new growth opportunities and lucrative acquisitions in the third quarter of 2023.
Management expects total maintenance, cemetery development and other capital expenditures in the band of $290-$310 million in 2023. Its acquisition investment goal for the year remains between $75 and $125 million.
Image Source: Zacks Investment Research
Present Concerns
Service Corporation continues to see moderation in consumer discretionary spending due to the impact of inflation. In the third quarter of 2023, total comparable funeral revenues fell 1.3%, mainly due to a fall in core funeral revenues. Core funeral revenues fell 2.2% due to a decline in core funeral services performed to the tune of 6.2%. This was somewhat countered by growth in the core average revenue per service of 4.3%.
For 2023, the company expects a low-to-mid-single-digit decline in funeral volumes due to the pandemic’s pull-forward impact. However, management anticipates a healthy low-to-mid-single-digit increase in the funeral average. Apart from this, a high interest rate environment remains a concern. Service Corporation expects 2023 adjusted earnings per share in the range of $3.40-$3.60 compared with $3.80 per share recorded in 2022.
Focus on expansion and fairly stable demand for the company’s services keep it well-placed for the long run. Shares of this Zacks Rank #3 (Hold) company have gained 7.5% in the past three months, outperforming the industry’s growth of 3.7%.
3 Solid Staple Picks
The Kraft Heinz Company KHC, a food and beverage product company, currently carries a Zacks Rank #2 (Buy). KHC has a trailing four-quarter earnings surprise of 9.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kraft Heinz’s current financial-year sales and earnings suggests growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Celsius Holdings, Inc. CELH, which develops, processes, markets, distributes and sells functional drinks and liquid supplements, holds a Zacks Rank #2. CELH has a trailing four-quarter earnings surprise of 110.9%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
Vital Farms Inc. VITL offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2. VITL has a trailing four-quarter earnings surprise of 145%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure.
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
Service Corporation International (SCI) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Present Concerns Service Corporation continues to see moderation in consumer discretionary spending due to the impact of inflation. The Zacks Consensus Estimate for Kraft Heinz’s current financial-year sales and earnings suggests growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers. 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 Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure. Click to get this free report Service Corporation International (SCI) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In 2024, the company expects cemetery revenue growth in low-to-mid-single digits due to a normalized pre-pandemic growth trajectory. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. Click to get this free report Service Corporation International (SCI) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the third quarter of 2023, consolidated Cemetery revenues came in at $447.1 million, up from $423.8 million reported in the year-ago quarter. This was somewhat countered by growth in the core average revenue per service of 4.3%. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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55b6b9be-b44e-4b51-b4eb-ecb17ab32053
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712282.0
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2023-12-13 00:00:00 UTC
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Copa Holdings (CPA) November Traffic Rises From 2022 Levels
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DCOMP
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https://www.nasdaq.com/articles/copa-holdings-cpa-november-traffic-rises-from-2022-levels
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nan
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Copa Holdings, S.A.CPA reported solid traffic numbers for November on the back of upbeat air-travel demand. Driven by high passenger volumes, revenue passenger miles (a measure of traffic) rose in double digits in November on a year-over-year basis.
To match the demand swell, CPA is increasing its capacity. In November, available seat miles (a measure of capacity) increased 11.9% year over year. Revenue passenger miles increased 12.4%. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) improved to 87.4% from 87.1% in November 2022.
Impressive air traffic has led to an 18.5% appreciation in the CPA stock in the past year. This northward movement compares favorably with the 10.7% rise recorded by the Zacks Airline industry in the same time frame.
Copa Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Given the buoyant traffic scenario, Copa Holdings is not the only airline to report impressive traffic numbers for November.
Image Source: Zacks Investment Research
Brazilian carrier Azul S.A. AZUL also reported year-over-year increases in traffic and capacity for November 2023. AZUL’s consolidated revenue passenger kilometers and available seat kilometers increased 8.2% and 8.7%, respectively, on a year-over-year basis. The load factor came in at 79.2% in November 2023.
On the domestic front, revenue passenger kilometers and available seat kilometers increased 1.7% and 3.3%, year over year, respectively. The load factor came in at 78.2% in November 2023.
Internationally, revenue passenger kilometers and available seat kilometers increased 38.6% and 33.9%, respectively, on a year-over-year basis. The load factor increased to 82.5% from 79.7% in November 2022.
Ryanair HoldingsRYAAY, a European carrier, also reported solid traffic numbers for November, driven by upbeat air-travel demand. The number of passengers ferried on RYAAY flights in September was 11.7 million, implying that 4% more passengers flew than a year ago. The load factor was high at 92% in November 2023. The reading was similar in the year-ago period. RYAAY operated more than 66,400 flights in November 2023. However, more than 960 flights got canceled due to the Israel/Gaza conflict.
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
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
AZUL (AZUL) : 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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With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) improved to 87.4% from 87.1% in November 2022. Ryanair HoldingsRYAAY, a European carrier, also reported solid traffic numbers for November, driven by upbeat air-travel demand. 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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Image Source: Zacks Investment Research Brazilian carrier Azul S.A. AZUL also reported year-over-year increases in traffic and capacity for November 2023. Ryanair HoldingsRYAAY, a European carrier, also reported solid traffic numbers for November, driven by upbeat air-travel demand. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Driven by high passenger volumes, revenue passenger miles (a measure of traffic) rose in double digits in November on a year-over-year basis. Image Source: Zacks Investment Research Brazilian carrier Azul S.A. AZUL also reported year-over-year increases in traffic and capacity for November 2023. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In November, available seat miles (a measure of capacity) increased 11.9% year over year. Image Source: Zacks Investment Research Brazilian carrier Azul S.A. AZUL also reported year-over-year increases in traffic and capacity for November 2023. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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441af175-a5cc-4d54-95af-5acd2a6b5146
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712283.0
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2023-12-13 00:00:00 UTC
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Down -5.95% in 4 Weeks, Here's Why You Should You Buy the Dip in EOG Resources (EOG)
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DCOMP
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https://www.nasdaq.com/articles/down-5.95-in-4-weeks-heres-why-you-should-you-buy-the-dip-in-eog-resources-eog
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nan
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A downtrend has been apparent in EOG Resources (EOG) lately with too much selling pressure. The stock has declined 6% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
Here is How to Spot Oversold Stocks
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why EOG Could Experience a Turnaround
The heavy selling of EOG shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.3. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for EOG has increased 1%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, EOG currently has 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. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks 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
EOG Resources, Inc. (EOG) : 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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However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround. 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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Moreover, EOG currently has 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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here is How to Spot Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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RSI oscillates between zero and 100. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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a8d3ef77-e4d6-40f3-a45e-b7c2d03f36d9
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712284.0
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2023-12-13 00:00:00 UTC
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Is Mid-America's (MAA) Latest Dividend Hike Sustainable?
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DCOMP
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https://www.nasdaq.com/articles/is-mid-americas-maa-latest-dividend-hike-sustainable-2
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nan
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nan
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Mid-America Apartment Communities’ MAA, also known as MAA, board of directors approved an increase in the company’s quarterly dividend payment. The company will now pay out $1.47 per share, reflecting a hike of 5% from the prior dividend of $1.40.
Based on the increased rate, the annual dividend comes to $5.88 per share, marking an increase of 28 cents from the prior dividend. At this new rate, the annualized yield comes at 4.61%, based on the stock’s closing price of $127.63 on Dec 12. The new dividend will be paid out on Jan 31 to shareholders of record as of Jan 12, 2024.
Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and MAA remains committed to the same. The company has a good record of paying out dividends to its shareholders. The recent hike reflects MAA’s ability to generate solid income through its operating platform and high-quality portfolio. It also marks the 14th consecutive year MAA has hiked its dividend. In the last five years, MAA increased its dividend six times and its five-year annualized dividend growth rate is 8.74%. Check Mid-America Apartment’s dividend history here.
MAA’s well-diversified Sun Belt-focused portfolio is poised to benefit from the healthy renter demand in its markets. The favorable in-migration trends of jobs and households in these submarkets, and high home ownership costs continue to aid demand. MAA’s technological initiatives and encouraging redevelopment projects are expected to fuel margin expansion, boding well for long-term growth. We project an average physical occupancy of 95.6% for 2023.
MAA enjoys a solid balance sheet, with low leverage and ample availability under its revolving credit facility. As of Sep 30, 2023, the company had a strong balance sheet, with $1.4 billion in combined cash and capacity available under its unsecured revolving credit facility, and a historically low net debt/adjusted EBITDAre ratio of 3.4. In the third quarter of 2023, it generated 95.8% unencumbered NOI, providing the scope for tapping additional secured debt capital if required. Hence, the company is well-positioned to bank on growth scopes.
Moreover, this REIT’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 9.30% compares favorably with the industry’s 5.07%, reflecting that MAA is more efficient in using shareholders’ funds than its peers.
Backed by healthy operating fundamentals, we expect the company’s core FFO to increase 8.5% year over year in the current year. Moreover, given its balance sheet strength and prudent financial management, the company is well-poised to capitalize on growth opportunities and reward shareholders handsomely. Looking at its lower dividend payout (than its industry), its dividend distribution is expected to be sustainable.
However, shares of the Zacks Rank #3 (Hold) company have gained 2.8% over the past month, slightly underperforming the industry’s growth of 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Recent Dividend Increases
On Dec 8, Invitation Homes Inc. INVH announced a 7.7% increase in its dividend. INVH will now pay a quarterly cash dividend of 28 cents per share, up from 26 cents paid out earlier. The raised dividend is scheduled to be paid out on Jan 19, 2024, to shareholders of record as of Dec 27, 2023. Check Invitation Homes dividend history here.
On Dec 4, Alexandria Real Estate Equities, Inc. ARE announced a 2.4% sequential hike in its fourth-quarter 2023 cash dividend payout. Delighting its shareholders, the company will now pay out a dividend of $1.27 per share, up from the $1.24 paid out in the prior quarter. The increased dividend will be paid out on Jan 12, 2024, to shareholders of record as of Dec 29, 2023. Check Alexandria’s dividend history here.
On Dec 7, CubeSmart CUBE announced a 4.1% increase in its quarterly dividend to 51 cents per share. CubeSmart will pay out the increased dividend on Jan 16 to common shareholders of record as of Jan 2, 2024. Check CubeSmart’s dividend history here.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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
Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report
Alexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis Report
CubeSmart (CUBE) : Free Stock Analysis Report
Invitation Home (INVH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of Sep 30, 2023, the company had a strong balance sheet, with $1.4 billion in combined cash and capacity available under its unsecured revolving credit facility, and a historically low net debt/adjusted EBITDAre ratio of 3.4. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. 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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Image Source: Zacks Investment Research Recent Dividend Increases On Dec 8, Invitation Homes Inc. INVH announced a 7.7% increase in its dividend. On Dec 4, Alexandria Real Estate Equities, Inc. ARE announced a 2.4% sequential hike in its fourth-quarter 2023 cash dividend payout. Click to get this free report Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis Report CubeSmart (CUBE) : Free Stock Analysis Report Invitation Home (INVH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the last five years, MAA increased its dividend six times and its five-year annualized dividend growth rate is 8.74%. Image Source: Zacks Investment Research Recent Dividend Increases On Dec 8, Invitation Homes Inc. INVH announced a 7.7% increase in its dividend. Click to get this free report Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis Report CubeSmart (CUBE) : Free Stock Analysis Report Invitation Home (INVH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company will now pay out $1.47 per share, reflecting a hike of 5% from the prior dividend of $1.40. The increased dividend will be paid out on Jan 12, 2024, to shareholders of record as of Dec 29, 2023. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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1ecad117-c1af-498e-be25-fc9b5729f706
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712285.0
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2023-12-12 00:00:00 UTC
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4 Things You Need to Know if You Buy Block Today
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DCOMP
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https://www.nasdaq.com/articles/4-things-you-need-to-know-if-you-buy-block-today
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nan
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Block (NYSE: SQ) is one of the top companies at the forefront of the digital payment revolution. The company thrived during the pandemic as the adoption of digital payments accelerated. However, the company carried a lofty valuation, profitability in recent years has suffered, and the stock price has plunged as a result.
Today, Block stock is up 73% from its recent low but remains 77% below its all-time high from 2021. The company is growing nicely, and Cash App is carving out a spot as one of the top financial apps among investors. Here are four things to consider if you buy Block stock today.
1. Square and Cash App are the two engines behind Block's growing payments biz
In the early days, Block's primary source of income came from its point-of-sales system, Square, which allows small and medium-sized businesses to accept credit or debit card payments easily using phones or tablets. In return, it earns transaction fees based on a percentage of total sales.
In 2013, it introduced Cash App (formerly Square Cash), which simplified peer-to-peer payments, allowing users to create accounts to send and receive money. It has since built on this app, providing users with banking and investment services.
Block's primary source of income is from subscriptions and services, which include processing and partnership fees from the Cash App, fees from its buy now, pay later platform, Afterpay, and other software-as-a-service offerings. This year, Cash App accounted for $2.8 billion, or 53%, of Block's total gross profits. Meanwhile, Square accounted for $2.6 billion, or 47%, of its gross profit.
Both segments are growing nicely. Through the first nine months of 2023, Square's gross profit has increased by 16%, while Cash App's gross profits are an excellent 37%. Cash App's solid growth can be attributed to the 11% growth in active users and a 21% growth in inflows from the prior year.
2. Cash App is one of the most popular investment apps among younger generations
What makes Block a compelling investment opportunity is the growth of its Cash App and its branding among younger generations. According to The Motley Fool's Generational Investing Tools survey, Cash App is the most-used investing app across all generations, with 38% of respondents saying they use it. Usage is highest among millennials and Gen Z, with 54% and 50% of respondents saying they use the app at least once a month or more.
Image source: Getty Images.
The growing popularity of Cash App, especially among younger users, is a great sign for the company. Millennials and Gen Z are becoming an increasingly larger share of consumer purchasing power and investors, providing Block with an excellent long-term growth opportunity -- as long as it can retain its market share.
3. Integration of apps could boost the strength of its platform
One area to pay attention to with Block is how it integrates the Cash App with Square as it looks to strengthen the synergies between the two. In its shareholder letter to investors from the third quarter, Jack Dorsey told investors:
Over the past few months we've reset the relationship between Square and Cash App and restructured Afterpay to ensure a stronger connection between each, and most importantly, create an innovative customer experience. We finally have line of sight to seeing more of Square within Cash App, and vice versa.
It will be interesting to see how Block further integrates its multiple products. Customers can already use Cash App to pay at Square merchants, and Block makes it easy for customers to split up their payments using Afterpay, its buy now, pay later platform acquired in 2021.
The company may try to create a closed-loop payments system, which could provide network effects and improve its position in the highly competitive payments industry. Investors will find out more details about Block's plan for integration in early 2024.
4. Valuation is reasonable compared to recent history
Block has done a solid job of growing its customer base and revenue. Over the past 12 months, the company's revenue is $20.8 billion. However, it still has work to do to improve its bottom line, as the company lost $282 million over the same period.
One positive sign is its third-quarter earnings, where its gross profits improved year-over-year, and non-GAAP (adjusted) income jumped 31%. Despite this, Block continues to trade at a dirt-cheap valuation relative to recent history. Its price-to-sales ratio of 2 is on the low end of its valuation since going public in 2015.
SQ P/S Ratio data by YCharts
Block stock has been quite volatile over the past few years, remains well below its all-time high, and still has work to do to improve profitability. With that said, the stock is relatively cheap, and it's achieving solid growth from its Square and Cash App offerings -- making it look like a good stock to buy a little today and add to over time.
Should you invest $1,000 in Block right now?
Before you buy stock in Block, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Block wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, the company carried a lofty valuation, profitability in recent years has suffered, and the stock price has plunged as a result. Square and Cash App are the two engines behind Block's growing payments biz In the early days, Block's primary source of income came from its point-of-sales system, Square, which allows small and medium-sized businesses to accept credit or debit card payments easily using phones or tablets. SQ P/S Ratio data by YCharts Block stock has been quite volatile over the past few years, remains well below its all-time high, and still has work to do to improve profitability.
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This year, Cash App accounted for $2.8 billion, or 53%, of Block's total gross profits. Through the first nine months of 2023, Square's gross profit has increased by 16%, while Cash App's gross profits are an excellent 37%. Cash App is one of the most popular investment apps among younger generations What makes Block a compelling investment opportunity is the growth of its Cash App and its branding among younger generations.
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Square and Cash App are the two engines behind Block's growing payments biz In the early days, Block's primary source of income came from its point-of-sales system, Square, which allows small and medium-sized businesses to accept credit or debit card payments easily using phones or tablets. Cash App is one of the most popular investment apps among younger generations What makes Block a compelling investment opportunity is the growth of its Cash App and its branding among younger generations. Before you buy stock in Block, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Block wasn't one of them.
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Today, Block stock is up 73% from its recent low but remains 77% below its all-time high from 2021. SQ P/S Ratio data by YCharts Block stock has been quite volatile over the past few years, remains well below its all-time high, and still has work to do to improve profitability. Before you buy stock in Block, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Block wasn't one of them.
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53537a3c-f613-4a5e-b632-05cad8bde839
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712286.0
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2023-12-12 00:00:00 UTC
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Best Stock to Buy: Apple vs. Coca-Cola
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DCOMP
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-apple-vs.-coca-cola
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When trying to identify investment ideas, one way people can keep it simple is to look at the companies they might be customers of. With this in mind, two well-known consumer stocks might be on your radar.
I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. There are compelling reasons to want either of these businesses in your portfolio. But which of these top Warren Buffett stocks is the better buy right now?
Incredible customer loyalty
Apple sells some of the most in-demand products and services on the planet, and it enjoys extreme customer loyalty. However, it's the ecosystem that it built between all of its hardware and software that really makes this business special. Customers pay higher prices for its devices, and then get locked in thanks to all the services Apple offers, and how well they integrate across those devices. This gives it a huge competitive advantage.
To be fair, Apple has hit a rough patch recently. Its revenue declined 2.8% in its fiscal 2023 (which ended Sept. 30). Macro uncertainty, mainly around higher interest rates and inflationary pressures, might be discouraging shoppers from spending on discretionary items.
But this is still one of the most financially sound enterprises out there, providing a level of safety and security that not many stocks can offer investors. Apple produced $100 billion of free cash flow in fiscal 2023, the vast majority of which it used to repurchase shares. This boosts earnings per share, something that Buffett certainly appreciates.
Powerful brand recognition
Coca-Cola's defining trait is its incredible brand strength. The company sells its products in more than 200 different countries across the globe -- an unbelievably wide reach that makes it recognizable to people everywhere. Plus, Coca-Cola's consistency is something that consumers can rely on, especially for a low-cost product like soft drinks.
This brand advantage has benefited the company by allowing it to flex its pricing power. In the third quarter, Coca-Cola's sales were up 8% year over year. Management also highlighted that pricing was up 9%, a key reason for the healthy top-line gain. Due to strong momentum, executives raised their full-year guidance for both revenue and earnings.
Coca-Cola is a mature business, so it isn't going to register outsized growth like many tech stocks, but its stability and durability could be intriguing for some investors. The company boasts a stellar operating margin of 27.4%, which supports a dividend that at current share prices yields 3.1%.
A difficult decision
There's no doubt that both Apple and Coca-Cola are outstanding businesses. The main reasons being that they possess some of the strongest consumer brands in the world and have excellent profitability, which helps explain why they are large holdings in the portfolio of Buffett's conglomerate.
There isn't much disparity between these two companies when it comes to their earnings growth outlooks. The consensus analyst estimate is that the beverage maker's earnings per share are expected to grow at an annualized clip of 10.3% in the next five years, about the same rate as is forecast for Apple.
Valuation could be more a meaningful metric to differentiate between them. Coca-Cola shares trade at a price-to-earnings ratio of under 24 right now, a sizable discount to Apple's 32. It's worth noting that Apple stock's 50% gain in 2023 is all attributable to investors deeming it worthy of a higher multiple.
Apple gets a lot of attention for good reasons. It's the world's most valuable company, sells one of the most successful tech products in history in the iPhone, and is ingrained in millions of people's day-to-day lives. But its shares are expensive enough that some investors might view buying stock in Coca-Cola as a better choice.
However, Apple has been the better investment by far over the past one-, three-, five-, and 10-year periods. Its valuation is steep, for sure, but I think it's a better stock to own than Coca-Cola.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The main reasons being that they possess some of the strongest consumer brands in the world and have excellent profitability, which helps explain why they are large holdings in the portfolio of Buffett's conglomerate. The consensus analyst estimate is that the beverage maker's earnings per share are expected to grow at an annualized clip of 10.3% in the next five years, about the same rate as is forecast for Apple. It's the world's most valuable company, sells one of the most successful tech products in history in the iPhone, and is ingrained in millions of people's day-to-day lives.
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Incredible customer loyalty Apple sells some of the most in-demand products and services on the planet, and it enjoys extreme customer loyalty. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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There are compelling reasons to want either of these businesses in your portfolio. But its shares are expensive enough that some investors might view buying stock in Coca-Cola as a better choice. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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b5089158-91b0-4d46-a0cd-9070c3afab55
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712287.0
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2023-12-12 00:00:00 UTC
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US STOCKS-Futures climb as rate-cut cheer persists
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DCOMP
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https://www.nasdaq.com/articles/us-stocks-futures-climb-as-rate-cut-cheer-persists
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nan
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nan
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By Shristi Achar A and Johann M Cherian
Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year.
The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday.
Money markets see a 79% chance of at least a 25-basis point rate cut as soon as March 2024, up from about 50% before Wednesday's policy announcement, while almost fully pricing in another cut in May 2024, according to CME Group's FedWatch tool.
"Because we are seeing clear disinflation taking place, the market is starting to think about cutting cycles in the same way it was thinking about the hiking cycle," said Sphia Salim, head of European rates research at BofA Global Research.
"We are far from neutral and inflation is moving fast, so maybe central banks are behind the curve and ultimately may need to converge back to neutral quite rapidly."
The dovish turn of events caused equities to rally recently, with the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC eyeing six straight weeks of gains.
U.S. Treasury yields fell below 4% to multi-month lows, with yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9166%. US/
Markets will now parse the S&P Global Composite Flash PMI data for December, due after the opening bell.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 124 points, or 0.33%, S&P 500 e-minis EScv1 were up 11.75 points, or 0.25%, and Nasdaq 100 e-minis NQcv1 were up 50.75 points, or 0.30%.
Among stocks, AlteryxAYX.N added 1.4% before the bell as Piper Sandler upgraded the analytics automation firm's shares to "neutral" from "underweight".
Costco WholesaleCOST.O rose 1.7% after the retailer topped Wall Street estimates for first-quarter results due to demand for cheaper groceries.
Chip stocks including Intel INTC.O, Micron Technology MU.O and Advanced Micro Devices AMD.O added between 0.9% and 1.7%.
First Solar FSLR.O and Enphase Energy ENPH.O added 2.4% and 3.3%, respectively, as Jefferies started coverage of the solar companies with a "buy" rating.
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Shounak Dasgupta)
((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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By Shristi Achar A and Johann M Cherian Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday. The dovish turn of events caused equities to rally recently, with the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC eyeing six straight weeks of gains.
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By Shristi Achar A and Johann M Cherian Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. Money markets see a 79% chance of at least a 25-basis point rate cut as soon as March 2024, up from about 50% before Wednesday's policy announcement, while almost fully pricing in another cut in May 2024, according to CME Group's FedWatch tool. ET, Dow e-minis 1YMcv1 were up 124 points, or 0.33%, S&P 500 e-minis EScv1 were up 11.75 points, or 0.25%, and Nasdaq 100 e-minis NQcv1 were up 50.75 points, or 0.30%.
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By Shristi Achar A and Johann M Cherian Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday. "Because we are seeing clear disinflation taking place, the market is starting to think about cutting cycles in the same way it was thinking about the hiking cycle," said Sphia Salim, head of European rates research at BofA Global Research.
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By Shristi Achar A and Johann M Cherian Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday. Money markets see a 79% chance of at least a 25-basis point rate cut as soon as March 2024, up from about 50% before Wednesday's policy announcement, while almost fully pricing in another cut in May 2024, according to CME Group's FedWatch tool.
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942eb3cc-bf14-4fac-925e-7bc8583ede9f
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712288.0
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2023-12-12 00:00:00 UTC
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Bear Of The Day: Lazydays Holdings (LAZY)
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DCOMP
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https://www.nasdaq.com/articles/bear-of-the-day%3A-lazydays-holdings-lazy
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nan
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Lazydays Holdings (LAZY) is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Lazydays Holdings, Inc. is an iconic brand in the RV industry. It offer RV brands, Lazydays features new and pre-owned RVs, service bays and on-site campgrounds. The company also has rental fleets in Florida, Arizona and Colorado. In addition, Lazydays RV Accessories & More stores offer accessories and hard-to-find parts. Lazydays Holdings, Inc., formerly known as Andina Acquisition Corp. II, is based in New York, United States.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of LAZY, I see three misses of the Zacks Consensus Estimate and one meet. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For LAZY I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from a gain of $0.05 to loss of $0.83 over the last 60 days.
The next year moved from a gain of $0.72 to a loss of $0.39 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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LAZYDAYS HOLDINGS, INC. (LAZY) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell). It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Lazydays Holdings (LAZY) is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. Earnings Estimates The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. Click to get this free report LAZYDAYS HOLDINGS, INC. (LAZY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Lazydays Holdings (LAZY) is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either. Earnings Estimates The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower.
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Lazydays Holdings (LAZY) is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day. Earnings Estimates The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower.
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c859f51e-4511-4fc9-89d9-0064b3696b16
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712289.0
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2023-12-12 00:00:00 UTC
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Align Technology (ALGN) Moves 11.1% Higher: Will This Strength Last?
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DCOMP
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https://www.nasdaq.com/articles/align-technology-algn-moves-11.1-higher%3A-will-this-strength-last
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nan
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Align Technology ALGN shares ended the last trading session 11.1% higher at $257.02. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.8% gain over the past four weeks.
Align Technology recorded a strong price increase after it announced that Health Canada has issued an updated medical device license to the company for its Invisalign Palatal Expander System (which is available on a limited basis in Canada). The updated license is for broad patient applicability, including growing children, teens and adults (with surgery or other techniques). Also, anticipated better-than-expected fourth-quarter 2023 revenues and earnings per share with the latest Zacks Consensus Estimate showing significant upward revision for the metrices compared to the year-ago reported numbers raise optimism about the stock. The company is expected to release its fourth-quarter earnings on Feb 7, 2024.
This maker of the Invisalign tooth-straightening system is expected to post quarterly earnings of $2.23 per share in its upcoming report, which represents a year-over-year change of +28.9%. Revenues are expected to be $928.43 million, up 3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Align Technology, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ALGN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Align Technology is part of the Zacks Medical - Dental Supplies industry. Conmed CNMD, another stock in the same industry, closed the last trading session 3.4% higher at $115.05. CNMD has returned 3.2% in the past month.
For Conmed, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.11. This represents a change of +164.3% from what the company reported a year ago. Conmed currently has a Zacks Rank of #3 (Hold).
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
CONMED Corporation (CNMD) : 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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Also, anticipated better-than-expected fourth-quarter 2023 revenues and earnings per share with the latest Zacks Consensus Estimate showing significant upward revision for the metrices compared to the year-ago reported numbers raise optimism about the stock. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Also, anticipated better-than-expected fourth-quarter 2023 revenues and earnings per share with the latest Zacks Consensus Estimate showing significant upward revision for the metrices compared to the year-ago reported numbers raise optimism about the stock. Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. Click to get this free report Align Technology, Inc. (ALGN) : Free Stock Analysis Report CONMED Corporation (CNMD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Also, anticipated better-than-expected fourth-quarter 2023 revenues and earnings per share with the latest Zacks Consensus Estimate showing significant upward revision for the metrices compared to the year-ago reported numbers raise optimism about the stock. Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. Click to get this free report Align Technology, Inc. (ALGN) : Free Stock Analysis Report CONMED Corporation (CNMD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Also, anticipated better-than-expected fourth-quarter 2023 revenues and earnings per share with the latest Zacks Consensus Estimate showing significant upward revision for the metrices compared to the year-ago reported numbers raise optimism about the stock. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Align Technology is part of the Zacks Medical - Dental Supplies industry. For Conmed, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.11.
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e506c411-c0a4-4c3b-bbb5-81b7fadd2fa6
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712290.0
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2023-12-12 00:00:00 UTC
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Implied Volatility Surging for On Peabody Energy (BTU) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-on-peabody-energy-btu-stock-options
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nan
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nan
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Investors in Peabody Energy Corporation BTU need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $5.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Peabody Energy shares, but what is the fundamental picture for the company? Currently, Peabody Energy is a Zacks Rank #3 (Hold) in the Coal industry that ranks in the Bottom 22% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimates for the current quarter, while none have revised the estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from of $1.17 per share to $1.31 cents in that period.
Given the way analysts feel Peabody Energy right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
Peabody Energy Corporation (BTU) : 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.
|
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Investors in Peabody Energy Corporation BTU need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Click to get this free report Peabody Energy Corporation (BTU) : 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 Peabody Energy right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel Peabody Energy right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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396e4d59-ab5b-4482-afbd-53e2b99f9914
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712291.0
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2023-12-12 00:00:00 UTC
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Meritage (MTH) Surges 10.1%: Is This an Indication of Further Gains?
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DCOMP
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https://www.nasdaq.com/articles/meritage-mth-surges-10.1%3A-is-this-an-indication-of-further-gains
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nan
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nan
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Meritage Homes (MTH) shares soared 10.1% in the last trading session to close at $178.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.6% gain over the past four weeks.
Many homebuilding companies, like Meritage Homes, saw their stock prices surge after the Fed decided to keep the interest rate benchmark between 5.25% and 5.5%. Furthermore, the Federal Open Market Committee anticipates at least three rate cuts in 2024.
This homebuilder is expected to post quarterly earnings of $5.24 per share in its upcoming report, which represents a year-over-year change of -26.1%. Revenues are expected to be $1.54 billion, down 22.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Meritage, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MTH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Meritage is a member of the Zacks Building Products - Home Builders industry. One other stock in the same industry, M/I Homes (MHO), finished the last trading session 7.7% higher at $123.67. MHO has returned 12.7% over the past month.
For M/I Homes, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.94. This represents a change of -4.1% from what the company reported a year ago. M/I Homes currently has a Zacks Rank of #3 (Hold).
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
Meritage Homes Corporation (MTH) : Free Stock Analysis Report
M/I Homes, Inc. (MHO) : 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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Many homebuilding companies, like Meritage Homes, saw their stock prices surge after the Fed decided to keep the interest rate benchmark between 5.25% and 5.5%. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For M/I Homes, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.94. Click to get this free report Meritage Homes Corporation (MTH) : Free Stock Analysis Report M/I Homes, Inc. (MHO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Meritage is a member of the Zacks Building Products - Home Builders industry. Click to get this free report Meritage Homes Corporation (MTH) : Free Stock Analysis Report M/I Homes, Inc. (MHO) : 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 Rank #1 (Strong Buy) stocks here >>>> Meritage is a member of the Zacks Building Products - Home Builders industry. For M/I Homes, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.94. Click to get this free report Meritage Homes Corporation (MTH) : Free Stock Analysis Report M/I Homes, Inc. (MHO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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09b9c5fd-3329-4516-8109-8ba8c5a61789
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712292.0
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2023-12-12 00:00:00 UTC
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Is DraftKings Stock a Buy?
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DCOMP
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https://www.nasdaq.com/articles/is-draftkings-stock-a-buy-0
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nan
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nan
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DraftKings (NASDAQ: DKNG) has been a market favorite since becoming public during the pandemic, but it's struggled to turn revenue growth into profitability. Is that a growth problem or a structural problem with the business?
In this video, Travis Hoium examines the business and explains where DraftKings is facing challenges. And those challenges may not be easy to overcome.
*Stock prices used were end-of-day prices of Dec. 12, 2023. The video was published on Dec. 13, 2023.
Should you invest $1,000 in DraftKings right now?
Before you buy stock in DraftKings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and DraftKings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and MGM Resorts International. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DraftKings (NASDAQ: DKNG) has been a market favorite since becoming public during the pandemic, but it's struggled to turn revenue growth into profitability. In this video, Travis Hoium examines the business and explains where DraftKings is facing challenges. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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Before you buy stock in DraftKings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and DraftKings wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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In this video, Travis Hoium examines the business and explains where DraftKings is facing challenges. Before you buy stock in DraftKings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and DraftKings wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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In this video, Travis Hoium examines the business and explains where DraftKings is facing challenges. 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. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services.
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f7e2cbda-13cc-4378-b8b6-6246787b6699
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712293.0
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2023-12-12 00:00:00 UTC
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Better Bitcoin Stock: MicroStrategy vs. Riot Platforms
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DCOMP
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https://www.nasdaq.com/articles/better-bitcoin-stock%3A-microstrategy-vs.-riot-platforms
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nan
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nan
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MicroStrategy (NASDAQ: MSTR) and Riot Platforms (NASDAQ: RIOT) represent two different ways to invest in Bitcoin's (CRYPTO: BTC) rally of about 150% this year. MicroStrategy is a software company that started hoarding Bitcoin over the past three years. Riot is a leading Bitcoin mining company that mines BTC with its massive fleet of high-end miners.
Both stocks have skyrocketed this year, along with Bitcoin's price. MicroStrategy's stock has risen more than 290% this year, while Riot's stock has rallied more than 310%. Should investors chase either of these high-flying Bitcoin-related stocks right now?
Image source: Getty Images.
MicroStrategy operates two different businesses
At its core, MicroStrategy is an aging data mining and analytics company founded 34 years ago. It's expanded its ecosystem with more mobile and cloud services over the past two decades, but it's been struggling to keep pace with higher-growth cloud giants like Salesforce, Microsoft, and Amazon in the rapidly evolving market. That's why MicroStrategy's revenue grew at an anemic compound annual growth rate (CAGR) of less than 1% from 2010 to 2020.
But in August 2020, MicroStrategy's co-founder and then-CEO Michael Saylor drove the company to start spending the software segment's cash on big Bitcoin purchases. Its BTC holdings have risen from $250 million in its first big purchase to $4.7 billion in its latest quarter. That's more than 40% of MicroStrategy's current enterprise value of $9.4 billion.
MicroStrategy currently holds 158,400 BTC on its balance sheet at an average purchase price of $29,586 -- so its investment is back in the black as of this writing. However, its rising BTC impairment charges also caused it to stay unprofitable over the past three years, while its issuing of fresh debt to fund its BTC purchases boosted its debt-to-equity ratio to 3.0. On the bright side, it's expected to return to profitability this year as it books lower impairment charges.
But as investors focus on its BTC investments, its core software business remains sluggish. Its total revenue only rose 1% year over year in the first nine months of 2023 as rising subscription revenue finally offset its declining product license and support revenues. Analysts expect its revenue to rise a mere 1% for the full year.
The bulls argue that MicroStrategy's enterprise value will eventually soar as it continues to buy BTC and stabilize its software business. However, a lot of growth could already be baked into its stock at 21 times next year's sales.
Riot is a more straightforward Bitcoin play
Riot was once a tiny patent holding company known as Bioptix, but it ditched its original business model and transformed into a dedicated BTC miner in 2017. It then purchased tens of thousands of top-tier Antminers from Bitmain.
Riot had deployed a massive fleet of 112,944 miners by the end of November, which enables it to produce an average of 18.4 BTC every day. It's been selling hundreds of Bitcoins each month to boost its liquidity, but it was still holding 7,358 BTC (with a market value of $306 million) on its balance sheet at the end of November.
Riot's business model is simpler than MicroStrategy's, but its fate is tethered to BTC's market price and volatile energy prices. In 2022, its revenue rose 22% to $259 million -- but its net loss widened from $8 million to $510 million as BTC's price plunged and energy prices spiked. However, analysts expect its revenue to rise 14% to $294 million this year as it narrows its net loss to $201 million.
If Bitcoin's price continues to rise as inflation cools off, Riot's revenues and profits could soar. It also plans to keep selling its excess power back to the grid at spot prices to stabilize its long-term operating margins. Riot can keep selling its own BTC to boost its cash flows, and its low debt-to-equity ratio of 0.1 still gives it plenty of room to raise more cash. And with an enterprise value of $2.9 billion, Riot looks a lot cheaper than MicroStrategy at 6 times next year's sales.
Better buy: Riot Platforms
I personally think it makes more sense to directly buy Bitcoin instead of investing in these two capital-intensive companies. But if I had to choose one, I'd pick Riot because its business model is more straightforward, its growth rates are more stable, its balance sheet is healthier, and its stock looks cheaper relative to its long-term growth potential.
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 11, 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.
|
But in August 2020, MicroStrategy's co-founder and then-CEO Michael Saylor drove the company to start spending the software segment's cash on big Bitcoin purchases. MicroStrategy currently holds 158,400 BTC on its balance sheet at an average purchase price of $29,586 -- so its investment is back in the black as of this writing. It's been selling hundreds of Bitcoins each month to boost its liquidity, but it was still holding 7,358 BTC (with a market value of $306 million) on its balance sheet at the end of November.
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MicroStrategy currently holds 158,400 BTC on its balance sheet at an average purchase price of $29,586 -- so its investment is back in the black as of this writing. In 2022, its revenue rose 22% to $259 million -- but its net loss widened from $8 million to $510 million as BTC's price plunged and energy prices spiked. 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.
|
MicroStrategy (NASDAQ: MSTR) and Riot Platforms (NASDAQ: RIOT) represent two different ways to invest in Bitcoin's (CRYPTO: BTC) rally of about 150% this year. MicroStrategy's stock has risen more than 290% this year, while Riot's stock has rallied more than 310%. 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.
|
MicroStrategy's stock has risen more than 290% this year, while Riot's stock has rallied more than 310%. 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 Motley Fool has positions in and recommends Amazon, Bitcoin, Microsoft, and Salesforce.
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0eb67b6a-142a-4daa-9155-e125fa861b96
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712294.0
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2023-12-12 00:00:00 UTC
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Do Options Traders Know Something About United Fire (UFCS) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-united-fire-ufcs-stock-we-dont
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nan
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nan
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Investors in United Fire Group, Inc. UFCS need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 16, 2024 $2.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for United Fire shares, but what is the fundamental picture for the company? Currently, United Fire is a Zacks Rank #3 (Hold) in the Insurance - Property and Casualty industry that ranks in the Top 10% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimates for the current quarter, while none have revised the estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from of 43 cents per share to 53 cents cents in that period.
Given the way analysts feel United Fire right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
United Fire Group, Inc (UFCS) : 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.
|
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Investors in United Fire Group, Inc. UFCS need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Click to get this free report United Fire Group, Inc (UFCS) : 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 United Fire 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 United Fire right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research?
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9fbeb56d-5356-4bc6-a4a0-638b77504d25
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712295.0
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2023-12-12 00:00:00 UTC
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Canadian Natural (CNQ) Unveils Ambitious Growth Plan for 2024
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DCOMP
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https://www.nasdaq.com/articles/canadian-natural-cnq-unveils-ambitious-growth-plan-for-2024
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nan
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nan
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Canadian Natural Resources Limited CNQ, a leading North American energy producer, revealed its 2024 budget, allocating $5.4 billion to fuel its growth ambitions. This disciplined plan prioritizes both near-term production increase and long-term capacity expansion, marking a strategic move in the face of a fluctuating energy landscape. It's packed with insights into CNQ's business strategy for the coming year.
Let's delve into the key details of the new budget plan.
Production Growth Takes Center Stage
Target of 1,455 MBOE/d by 2024-end: This represents an increase of 40 thousand barrels of oil equivalent per day (MBOE/d) over the expected 2023-end production, showcasing CNQ's commitment to boosting output.
The company's projections also extend to specific sectors, with thermal and oil sands mining expected to reach 724,000-743,000 barrels per day (bpd) in 2024. This contrasts with the prior-year guidance of 705,000-729,000 bpd. Notably, the addition of four new pads contributes to this optimistic outlook.
Average annual production growth target of 4-5% for 2025: This ambitious target demonstrates CNQ's confidence in its long-term growth trajectory.
Drill-to-Fill Strategy Drives Efficiency
Focus on liquids-rich natural gas and light crude oil assets in British Columbia and Alberta: CNQ plans to drill 134 net wells in these lucrative areas, maximizing existing infrastructure and minimizing costs.
Quarterly Focus: CNQ will drill 65% of its Exploration & Production wells in the second half of 2024, ensuring efficient utilization of resources and capital.
Focus on Sustainability and Innovation
Investments in carbon capture and storage (CCS): CNQ remains committed to reducing its environmental footprint and exploring CCS technologies.
Continued advancements in technology and automation: The company will leverage its Research and development expertise to drive efficiency and productivity gains.
Implications for Investors and the Energy Market
CNQ's disciplined approach and focus on returns should be appealing to investors seeking stability and growth. The increased production target indicates continued optimism in the energy market, potentially boosting investors’ confidence in the sector. CNQ's commitment to sustainability could attract environmentally conscious investors and position the company well for the future.
Overall, Canadian Natural’s 2024 budget paints a picture of a company focused on efficient growth and delivering value to stakeholders. The plan’s success will depend on factors such as commodity prices, regulatory environment and operational execution.
Zacks Rank and Key Picks
Currently, CNQ carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $42.16 billion. The company currently pays a dividend of $1.79 per share, or 5.16%, on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
MUSA is worth $7.69 billion. In the past year, its shares have risen 28.2%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise. It operates retail gasoline stores principally in the Southeast, Southwest and Midwest United States.
Liberty Energy is valued at $3.04 billion. LBRT currently pays a dividend of 28 cents per share, or 1.55%, on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to the North American onshore exploration and production companies.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Canadian Natural Resources Limited CNQ, a leading North American energy producer, revealed its 2024 budget, allocating $5.4 billion to fuel its growth ambitions. Drill-to-Fill Strategy Drives Efficiency Focus on liquids-rich natural gas and light crude oil assets in British Columbia and Alberta: CNQ plans to drill 134 net wells in these lucrative areas, maximizing existing infrastructure and minimizing costs. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood.
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Canadian Natural Resources Limited CNQ, a leading North American energy producer, revealed its 2024 budget, allocating $5.4 billion to fuel its growth ambitions. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Production Growth Takes Center Stage Target of 1,455 MBOE/d by 2024-end: This represents an increase of 40 thousand barrels of oil equivalent per day (MBOE/d) over the expected 2023-end production, showcasing CNQ's commitment to boosting output. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The increased production target indicates continued optimism in the energy market, potentially boosting investors’ confidence in the sector. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research?
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463c8804-eb5e-4901-8048-e45b491807d2
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712296.0
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2023-12-12 00:00:00 UTC
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Here's Why You Should Add PPL to Your Portfolio Right Now
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DCOMP
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https://www.nasdaq.com/articles/heres-why-you-should-add-ppl-to-your-portfolio-right-now-1
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nan
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nan
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PPL Corporation’s PPL strategic investment plans will further strengthen its infrastructure. The company’s focus on clean generation and growth in domestic operations boosts its overall performance. Given its growth opportunities, PPL makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for PPL’s fourth-quarter 2023 earnings per share (EPS) has increased 14.7% to 39 cents in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pinned at $8 billion, indicates a year-over-year increase of 1.24%.
PPL’s long-term (three to five years) earnings growth rate is 7.42%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, PPL’s ROE is 7.82%, higher than the industry’s average of 7%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Debt Position
Currently, PPL’s total debt to capital is 51.47%, much better than the industry’s average of 61.19%.
The time to interest earned ratio at the end of third-quarter 2023 was 2.5. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
PPL has a long history of dividend payments and plans to increase the same in the range of 6-8%, subject to approval by its board of directors. Currently, its quarterly dividend is 24 cents per share, resulting in an annualized dividend of 96 cents. The company’s current dividend yield is 3.52% compared with the Zacks S&P 500 Composite's average of 1.39%.
Systematic Investments
PPL’s capital investment plan primarily focuses on infrastructure construction projects for generation, transmission and distribution. Customers have been experiencing fewer outages, courtesy of the ongoing investments in infrastructure strengthening. PPL expects a regulated capital investment of $12 billion through 2026. It also plans capital investments of nearly $2.4 billion for 2023 and $2.7 billion for 2024.
Price Performance
In the past six months, PPL’s shares have rallied 0.7% against the industry’s average decline of 3%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Consolidated Edison Inc. ED, IDACORP Inc. IDA and OGE Energy Corp. OGE, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated Edison’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2023 EPS is pinned at $5.01, implying a year-over-year increase of 10.1%.
IDACORP’s long-term earnings growth rate is 4.11%. The consensus estimate for the company’s 2023 EPS is pegged at $5.12, indicating a year-over-year improvement of 0.2%.
OGE Energy’s long-term earnings growth rate is 3.65%. It delivered an average earnings surprise of 8.3% in the last four quarters.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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PPL Corporation (PPL) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
OGE Energy Corporation (OGE) : Free Stock Analysis Report
IDACORP, Inc. (IDA) : 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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Growth Projections The Zacks Consensus Estimate for PPL’s fourth-quarter 2023 earnings per share (EPS) has increased 14.7% to 39 cents in the past 60 days. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Growth Projections The Zacks Consensus Estimate for PPL’s fourth-quarter 2023 earnings per share (EPS) has increased 14.7% to 39 cents in the past 60 days. Image Source: Zacks Investment Research Other Stocks to Consider A few other top-ranked stocks from the same industry are Consolidated Edison Inc. ED, IDACORP Inc. IDA and OGE Energy Corp. OGE, each holding a Zacks Rank #2 at present. Click to get this free report PPL Corporation (PPL) : Free Stock Analysis Report Consolidated Edison Inc (ED) : Free Stock Analysis Report OGE Energy Corporation (OGE) : Free Stock Analysis Report IDACORP, Inc. (IDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Growth Projections The Zacks Consensus Estimate for PPL’s fourth-quarter 2023 earnings per share (EPS) has increased 14.7% to 39 cents in the past 60 days. Image Source: Zacks Investment Research Other Stocks to Consider A few other top-ranked stocks from the same industry are Consolidated Edison Inc. ED, IDACORP Inc. IDA and OGE Energy Corp. OGE, each holding a Zacks Rank #2 at present. Click to get this free report PPL Corporation (PPL) : Free Stock Analysis Report Consolidated Edison Inc (ED) : Free Stock Analysis Report OGE Energy Corporation (OGE) : Free Stock Analysis Report IDACORP, Inc. (IDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Growth Projections The Zacks Consensus Estimate for PPL’s fourth-quarter 2023 earnings per share (EPS) has increased 14.7% to 39 cents in the past 60 days. Currently, PPL’s ROE is 7.82%, higher than the industry’s average of 7%. Image Source: Zacks Investment Research Other Stocks to Consider A few other top-ranked stocks from the same industry are Consolidated Edison Inc. ED, IDACORP Inc. IDA and OGE Energy Corp. OGE, each holding a Zacks Rank #2 at present.
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c086d01f-4406-412b-bb8a-7ab90b9b3393
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712297.0
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2023-12-12 00:00:00 UTC
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A Bull Market Is Coming: 2 Monster Growth Stocks Up 300% in 4 Years to Buy Now and Hold Forever
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DCOMP
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-monster-growth-stocks-up-300-in-4-years-to-buy-now-and-hold
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nan
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nan
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The S&P 500 is just 4 percentage points from a record high -- and bull market territory. That threshold is noteworthy because the broad index returned an average of 169% during the last dozen bull markets, and many stocks are sure to skyrocket during the next one.
Some are already on a tear. Cloudflare (NYSE: NET) and Zscaler (NASDAQ: ZS) have quadrupled in the last four years, with shares soaring 320% and 326%, respectively. But the companies have strong positions in markets backed by persistent tailwinds, and that could carry both stocks higher during the next bull market.
1. Cloudflare
The tailwinds driving Cloudflare are growing demand for zero trust security and developer tools, especially those related to artificial intelligence (AI). The company offers a broad range of cloud services that accelerate and protect business applications and infrastructure, while eliminating the need for costly on-premises hardware.
Cloudflare stands apart in terms of performance and scale. It operates the fastest cloud network on the market, and its technology powers about 20% of the internet. That statistic points to a considerable data advantage. With deep insight into performance and security issues across the web, Cloudflare can continuously route traffic and block threats more effectively.
Business looked strong in the third quarter. Cloudflare's customer count climbed 17% to 182,000 and the average customer spent 16% more. In turn, revenue increased 32% to $336 million and the company achieved its fifth consecutive quarter of record operating profits.
That momentum should carry into future quarters. Independent research firms recently recognized Cloudflare as a leader in zero trust network access (alongside Zscaler and Palo Alto Networks) and edge development platforms, two product categories that account for most of its $146 billion market opportunity.
Building on that, management believes AI will be a significant catalyst for its developer services business. "Cloudflare is the most commonly used cloud provider across leading AI start-ups," according to CEO Matthew Prince. "We're uniquely positioned to become a leader in AI inferencing."
To that end, Cloudflare ranked No. 6 on Fortune's Future 50 List for 2023, a report aimed at identifying companies best positioned for long-term revenue growth. Shares currently trade at 21.3 times sales, a bargain compared to the three-year average of 39.1 times sales and a reasonable price in context. Patient investors comfortable with volatility should feel confident buying a small position in this cloud stock today.
2. Zscaler
The tailwinds driving Zscaler are demand for zero trust networking and cloud workload protection. The company's security service edge (SSE) platform modernizes corporate networks by handling traffic inspection and policy enforcement in the cloud rather than private data centers. In doing so, Zscaler allows users to securely access private applications, cloud services, and the open internet from any device or location, without the complexity of on-premises appliances.
Zscaler has distinguished itself through scale and superior threat protection. Specifically, as the largest network security cloud, the company captures over 500 trillion security signals daily that feed its AI models, each one improving its ability to detect anomalies. CEO Jay Chaudhry says that network effect results in superior threat protection.
The company reported strong results in the fiscal fourth quarter (ended July 31). Its customer count increased 14% to 7,700 and the average customer spent north of 20% more. In turn, revenue climbed 43% to $455 million and non-GAAP net income soared 177% to $101 million. Investors have good reason to think that momentum will carry into future quarters.
Zscaler has hardly tapped its $72 billion addressable market, but the company is well-positioned to capitalize on that opportunity given its strong position in the zero trust network access and SSE markets. Indeed, Morgan Stanley says the company is gaining market share more quickly than any other SSE vendor. That is particularly noteworthy because research firm Gartner believes 80% of enterprises will adopt SSE architecture by 2025, up from 20% in 2021.
To that end, Zscaler ranked No. 25 on the Fortune's Future 50 List for 2023, and Morgan Stanley expects revenue to grow at 25% annually over the next five years. In that context, its current valuation of 16.5 times sales seems fair, and it's a significant discount to the three-year average of 31.3 times sales. Patient investors who can handle some ups and downs should consider buying a few shares of this cybersecurity stock today.
Should you invest $1,000 in Cloudflare right now?
Before you buy stock in Cloudflare, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cloudflare 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
Trevor Jennewine has positions in Zscaler. The Motley Fool has positions in and recommends Cloudflare, Palo Alto Networks, and Zscaler. 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 company offers a broad range of cloud services that accelerate and protect business applications and infrastructure, while eliminating the need for costly on-premises hardware. The company's security service edge (SSE) platform modernizes corporate networks by handling traffic inspection and policy enforcement in the cloud rather than private data centers. In doing so, Zscaler allows users to securely access private applications, cloud services, and the open internet from any device or location, without the complexity of on-premises appliances.
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Independent research firms recently recognized Cloudflare as a leader in zero trust network access (alongside Zscaler and Palo Alto Networks) and edge development platforms, two product categories that account for most of its $146 billion market opportunity. The company's security service edge (SSE) platform modernizes corporate networks by handling traffic inspection and policy enforcement in the cloud rather than private data centers. Before you buy stock in Cloudflare, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cloudflare wasn't one of them.
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Independent research firms recently recognized Cloudflare as a leader in zero trust network access (alongside Zscaler and Palo Alto Networks) and edge development platforms, two product categories that account for most of its $146 billion market opportunity. Zscaler has hardly tapped its $72 billion addressable market, but the company is well-positioned to capitalize on that opportunity given its strong position in the zero trust network access and SSE markets. Before you buy stock in Cloudflare, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cloudflare wasn't one of them.
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But the companies have strong positions in markets backed by persistent tailwinds, and that could carry both stocks higher during the next bull market. The company's security service edge (SSE) platform modernizes corporate networks by handling traffic inspection and policy enforcement in the cloud rather than private data centers. Before you buy stock in Cloudflare, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cloudflare wasn't one of them.
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3dd88701-edb4-4c13-92da-d8c69c312279
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712298.0
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2023-12-12 00:00:00 UTC
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Three Underrated China Stocks in KWEB
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DCOMP
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https://www.nasdaq.com/articles/three-underrated-china-stocks-in-kweb
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nan
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nan
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Underrated, or lesser-known -- whichever the case -- there are China stocks to be excited about in an otherwise complicated year for China investing. An allocation to China still offers significant advantages to portfolios, diversifying away from an expensive, inflationary U.S. economy. There are plenty of opportunities in China equities that have done well this year, too, with three specific examples of overlooked China stocks available in the KraneShares CSI China Internet ETF (KWEB).
KWEB tracks the CSI Overseas China Internet index, offering pure-play exposure to Chinese information and software firms. Investing for a 69 basis point (bps) fee, the strategy includes well-known megafirms like Alibaba and Tencent. It also includes lesser-known China stocks that have done well YTD that merit a closer look.
TAL Education Group (TAL)
TAL provides smart learning solutions for Chinese students. Per YCharts, the firm had initially focused on K-9 academic tutoring after school, but regulatory changes have pushed the firm toward learning technology and enrichment instead. Despite that regulatory change and spinning off of its main business in 2021, TAL has performed well this year. The firm has returned a robust 72% YTD, per YCharts. The stock exhibits high institutional ownership, offering stable control of the firm’s direction.
See more: "This China ETF Has Long-Term Allure"
NetEase Inc (NETTF)
NetEase, an online services provider in China, works on mobile and online games, cloud music, media, live streaming, and more. It partners with major names in entertainment like Blizzard Entertainment and Mojang. That makes it an intriguing consumer play outside of broader consumer-focused e-commerce firms given its focus on a games-oriented niche. NETTF has returned 41.3% this year, per YCharts, with strong fundamentals, too.
Trip.com Group Ltd (TCOM)
Finally, KWEB also holds stock from Trip.com Group. TRPCF is the “largest” online travel agent in China, which generated about 78% of sales from reservations and transportation tickets in 2020. It previously generated a significant one-fourth of revenue from international business. As China moves forward, it could be set to benefit from a further post-COVID travel push.
For more news, information, and analysis, visit the China Insights Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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KWEB tracks the CSI Overseas China Internet index, offering pure-play exposure to Chinese information and software firms. Investing for a 69 basis point (bps) fee, the strategy includes well-known megafirms like Alibaba and Tencent. TRPCF is the “largest” online travel agent in China, which generated about 78% of sales from reservations and transportation tickets in 2020.
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There are plenty of opportunities in China equities that have done well this year, too, with three specific examples of overlooked China stocks available in the KraneShares CSI China Internet ETF (KWEB). KWEB tracks the CSI Overseas China Internet index, offering pure-play exposure to Chinese information and software firms. It also includes lesser-known China stocks that have done well YTD that merit a closer look.
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Underrated, or lesser-known -- whichever the case -- there are China stocks to be excited about in an otherwise complicated year for China investing. There are plenty of opportunities in China equities that have done well this year, too, with three specific examples of overlooked China stocks available in the KraneShares CSI China Internet ETF (KWEB). See more: "This China ETF Has Long-Term Allure" NetEase Inc (NETTF) NetEase, an online services provider in China, works on mobile and online games, cloud music, media, live streaming, and more.
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It also includes lesser-known China stocks that have done well YTD that merit a closer look. The firm has returned a robust 72% YTD, per YCharts. TRPCF is the “largest” online travel agent in China, which generated about 78% of sales from reservations and transportation tickets in 2020.
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05c62a0d-a350-445d-8e3b-d17d8c654ea0
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712299.0
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2023-12-12 00:00:00 UTC
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Tired of Overpaying for Avocados? This Is the Growth Stock for You
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DCOMP
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https://www.nasdaq.com/articles/tired-of-overpaying-for-avocados-this-is-the-growth-stock-for-you
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nan
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nan
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Avocado toast may have become shorthand for millennial indulgences, but there's no question that avocado consumption has boomed in the United States. According to the U.S. Department of Agriculture, in the 20 years leading up to 2021, avocado consumption in the country tripled to nearly nine pounds per person per year.
Filling that demand hasn't been easy. It takes a long time to grow avocado trees, and U.S. avocado acreage has actually fallen during that time. As a result, imports, primarily from Mexico, have filled the gap. Prices for avocados have long been volatile, and according to the Producer Price Index, wholesale avocado prices have roughly quadrupled from their low in 2020.
Image source: Getty Images.
That might be a problem for consumers, especially fans of avocado toast and guacamole, but there's one company that's been able to capitalize on the boom. That's Calavo Growers (NASDAQ: CVGW), one of the world's biggest avocado growers. Buying the stock could be a good idea for avocado lovers to hedge against rising prices, but it could also pay off for any investor.
What you should know about Calavo Growers
Calavo sells other fruits including tomatoes and papayas, and makes prepared foods such as guacamole. However, most of its business comes from avocados. The company's leading position has driven strong returns for investors over its history although the stock price has come down substantially in recent years as costs have risen and its execution has declined.
CVGW data by YCharts
Those problems have continued recently. Revenue declined 24% in the third quarter to $259.9 million even while gross profit improved as the company controlled costs in the and focused more on operational execution and customer service.
Prices also rose sequentially and progressively during the quarter, setting the company up for an improved performance in the fourth quarter. Avocado volume was up 5% in the quarter, showing unit sales moving in the right direction.
Calavo recently brought Lee Cole out of retirement to return as CEO. Cole ran the company from 1999 to early 2020, during which the stock returned well over 1,000%. He's 83 years old and agreed to run the company for three years with the goal of returning it to stable growth and shareholder value creation.
Why Calavo could be set up for a turnaround
Pandemic disruptions and poor leadership seem to have sunk the stock over the last few years, but there are signs the business could be ready for a comeback under Cole's guidance. He has also bought the stock multiple times, indicating confidence in a recovery.
The profitability improvement in the third quarter was impressive. The company breezed past bottom-line estimates even as top-line results missed the consensus due to the year-over-year decline in avocado pricing.
According to the Producer Price Index, avocado prices continued to rise through Calavo's fourth quarter, boding well for its upcoming results, which are due out later this month. In fact, analysts expect a strong recovery in Q4 and into 2024, buoyed by the recent price recovery and the improvements under Cole.
The rebound in avocado prices alone isn't a reason to buy the stock as prices are volatile and avocados are a commodity. However, the company should benefit from continuing growth in avocado demand as well as expected growth in its prepared segment.
Calavo's business previously peaked with an adjusted earnings per share of $3.02 in 2019. Getting back there isn't guaranteed, but the stock looks like a bargain if it can move in that direction -- it would be trading at a price-to-earnings ratio of 9.
Investors should continue to expect volatility in avocados and with Calavo, but the combination of the sell-off in the stock, rising prices, and the return of Lee Cole could give the stock significant upside potential. Keep your eye on the upcoming Q4 earnings report as that could be a catalyst for a rebound in the stock.
Should you invest $1,000 in Calavo Growers right now?
Before you buy stock in Calavo Growers, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Calavo Growers wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Jeremy Bowman 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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The company's leading position has driven strong returns for investors over its history although the stock price has come down substantially in recent years as costs have risen and its execution has declined. Revenue declined 24% in the third quarter to $259.9 million even while gross profit improved as the company controlled costs in the and focused more on operational execution and customer service. Why Calavo could be set up for a turnaround Pandemic disruptions and poor leadership seem to have sunk the stock over the last few years, but there are signs the business could be ready for a comeback under Cole's guidance.
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According to the Producer Price Index, avocado prices continued to rise through Calavo's fourth quarter, boding well for its upcoming results, which are due out later this month. The rebound in avocado prices alone isn't a reason to buy the stock as prices are volatile and avocados are a commodity. Before you buy stock in Calavo Growers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Calavo Growers wasn't one of them.
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The rebound in avocado prices alone isn't a reason to buy the stock as prices are volatile and avocados are a commodity. Investors should continue to expect volatility in avocados and with Calavo, but the combination of the sell-off in the stock, rising prices, and the return of Lee Cole could give the stock significant upside potential. Before you buy stock in Calavo Growers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Calavo Growers wasn't one of them.
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The company's leading position has driven strong returns for investors over its history although the stock price has come down substantially in recent years as costs have risen and its execution has declined. Investors should continue to expect volatility in avocados and with Calavo, but the combination of the sell-off in the stock, rising prices, and the return of Lee Cole could give the stock significant upside potential. Before you buy stock in Calavo Growers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Calavo Growers wasn't one of them.
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d5ee4d50-724e-4f0e-b1a3-98deea9830fc
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