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712300.0
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2023-12-12 00:00:00 UTC
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2 Stocks to Watch as Ethereum Shows Promise for 2024
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https://www.nasdaq.com/articles/2-stocks-to-watch-as-ethereum-shows-promise-for-2024
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While Bitcoin (BTC) has had a great 2023, so has Ethereum (ETH), the second-most traded and recognizable crypto coin in the world. Ethereum is known for its uses as a blockchain-powered, open-ended decentralized software platform and has risen 89.4% in value as of date in 2023.
The crypto behemoth has paved its path to winning over new customers by making a significant update this year, known as the Shanghai Upgrade. Under this upgrade, ETH shifted its blockchain validation system from proof-of-work to proof-of-stake and marked one of the most significant developments in the relatively short history of cryptocurrency.
In the proof-of-stake system, miners of Ethereum will rely on Ether holders, who will act as validators, thus lending more assurance to the system. In essence, proof-of-stake allows holders of Ether to lock up their funds as collateral to validate transactions and create new blocks, reducing the need for extensive computation and energy consumption.
Powered by this development and what promises to be a significant 2024 for cryptocurrency, analysts around the world have turned bullish on it. There is a consensus that ETH might outperform BTC in 2024 with regard to growth rate and will gain more market share based on its proposals to reduce transaction costs and boost the number of transactions per second. In fact, its planned upgrade, called EIP-4844, might ensure that transaction costs could fall to as low as $0.01.
Per Bitwise Asset Management, the world's largest crypto index fund manager, ETH revenues could double from 2023, up to $5 billion in 2024. Also, a state of fast-rising interest rates has not proven conducive to the crypto market. However, with markets widely betting on rate hikes having come to an end and the first rate cut as early as first-quarter 2024, the crisis for crypto may have been averted.
Ethereum has already started to make good of the state of the market, and it might be prudent to keep a watch on stocks exposed to this open-source, decentralized blockchain platform. Here is a selection of two stocks that we believe should be tracked. These currently carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture plc ACN: This global system integrator that provides consulting, technology and other services markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
Accenture’s expected earnings growth rate for the current year is 4.6%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the past 60 days. ACN currently carries a Zacks Rank #2.
CME Group Inc. CME: This company operates as one of the world's largest futures exchange, offers a wide range of derivatives contracts and provides various solutions to invest in cryptocurrencies like Ethereum.
CME Group’s expected earnings growth rate for the current year is 14.7%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.6% over the past 60 days. CME currently carries a Zacks Rank #3.
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
CME Group Inc. (CME) : Free Stock Analysis Report
Accenture PLC (ACN) : 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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Under this upgrade, ETH shifted its blockchain validation system from proof-of-work to proof-of-stake and marked one of the most significant developments in the relatively short history of cryptocurrency. In essence, proof-of-stake allows holders of Ether to lock up their funds as collateral to validate transactions and create new blocks, reducing the need for extensive computation and energy consumption. Accenture plc ACN: This global system integrator that provides consulting, technology and other services markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
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Per Bitwise Asset Management, the world's largest crypto index fund manager, ETH revenues could double from 2023, up to $5 billion in 2024. CME Group’s expected earnings growth rate for the current year is 14.7%. Click to get this free report CME Group Inc. (CME) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Click to get this free report CME Group Inc. (CME) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Under this upgrade, ETH shifted its blockchain validation system from proof-of-work to proof-of-stake and marked one of the most significant developments in the relatively short history of cryptocurrency. There is a consensus that ETH might outperform BTC in 2024 with regard to growth rate and will gain more market share based on its proposals to reduce transaction costs and boost the number of transactions per second. Ethereum has already started to make good of the state of the market, and it might be prudent to keep a watch on stocks exposed to this open-source, decentralized blockchain platform.
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712301.0
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2023-12-12 00:00:00 UTC
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5 Undervalued S&P 500 Stocks to Buy for 2024
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https://www.nasdaq.com/articles/5-undervalued-sp-500-stocks-to-buy-for-2024
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After several twists and turns, the S&P 500 has been hitting a series of new highs in 2023, driven by the optimism that the Fed is done with interest rate hikes. The solid trend is likely to continue in 2024, with the Fed turning dovish and several analysts being bullish on the benchmark.
The S&P 500 has gained nearly 23% so far this year but is 3% shy of its record high in late 2021. Investors seeking to tap the bullish momentum should invest in undervalued stocks to gain higher returns. Some of these are Everest Group Ltd. EG, Comcast Corporation CMCSA, 3M Company MMM, Molson Coors Beverage Company TAP and DaVita Inc. DVA.
These stocks have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of B or better, lower P/E than the industry average and a positive estimated earnings growth rate for 2024. A top rank suggests rising earnings estimates, which indicate an optimistic view on earnings by analysts and hence higher chances of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fed Turns Dovish
The Federal Reserve Chair Jerome Powell, in the latest meeting, hinted at a major policy shift as inflation is easing and the economy is holding up better. He signaled three rate cuts for the next year, compared with the previous forecast of two rate cuts in 2024. The federal funds rate is expected in the range of 4.4-4.9%, down from the current 5.25% to 5.50%. This indicates that the Fed will cut rates by a total of 0.75% next year, indicating that the historic rate-hiking campaign might be ending.
Following the meeting, markets have been pricing in a nearly 60% chance that the Fed will begin to cut rates at its March meeting, up from 40% the day prior, per the data from CME Group.
Analysts Turn Bullish
Several analysts and market strategists expect the S&P 500 to touch new highs in 2024. Oppenheimer recently joined a rush of Wall Street analysts who expect all-time highs for U.S. stocks next year. The analyst sees the S&P 500 rising to 5,200 by the end of 2024.
Last month, strategists at RBC Capital Markets and Bank of America expressed their optimism by setting a year-end target of 5,000 for 2024. Their bullish stance is based on several factors — a growing positive sentiment in the stock market, a decrease in geopolitical risks, signs of cooling inflation and anticipation of the Fed’s rate-hiking cycle coming to an end. Other Wall Street forecasters are also optimistic, with Deutsche Bank and Société Générale predicting the S&P 500 to hit new highs in 2024.
Further, Fundstrat Tom Lee, who has been one of the most persistently bullish forecasters on Wall Street this year, expects stocks will surge to a new all-time high in 2024 as the Fed shifts to a less restrictive monetary policy. He anticipates that the S&P 500 could soar to 5,200 by the end of 2024.
Stock Picks for 2024
Everest Group is a property and casualty insurer and reinsurer in all states, the District of Columbia, Puerto Rico and Guam. It underwrites property and casualty reinsurance for insurance and reinsurance companies in the United States and international markets. Everest Group saw a solid earnings estimate revision of $2.58 over the past 30 days for the next year, with an estimated growth rate of 11%.
Everest Group has a P/E ratio of 6.96 versus the industry average of 9.81. It sports a Zacks Rank #1 and has a VGM Score of A.
Comcast is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal and Sky. It saw positive earnings estimates of a penny for the next year over the past 30 days. It has an estimated earnings growth rate of 9.79%.
Comcast has a P/E ratio of 11.07 versus the industry average of 13.19. It has a Zacks Rank #2 and a VGM Score of A.
3M Company provides diversified technology services in the United States and internationally. The stock saw a solid earnings estimate revision of 7 cents over the past 30 days for the next year, with an estimated growth rate of 8.76%.
3M Company has a P/E ratio of 11.42 compared with the industry average of 17.47. It has a Zacks Rank #2 and a VGM Score of A.
Molson Coors, previously known as Molson Coors Brewing Company, was formed by the merger of Molson Inc. and Adolph Coors Co. in February 2005. The global manufacturer and seller of beer and other beverage products has an impressive diverse portfolio of owned and partner brands. Molson Coors saw a positive earnings estimate revision of 28 cents over the past 60 days for the next year and has an estimated earnings growth rate of 2.59%.
Molson Coors has a P/E ratio of 12.17 compared with the industry average of 18.05. It has a Zacks Rank #1 and a VGM Score of B.
DaVita is a leading provider of dialysis services to patients suffering from chronic kidney failure, also known as end-stage renal disease, in the United States. The company operates kidney dialysis centers and provides related medical services, primarily in dialysis centers and in contracted hospitals across the United States. DaVita saw a solid earnings estimate revision of 30 cents over the past 30 days for the next year and has an estimated earnings growth rate of 4.43%.
DaVita has a P/E ratio of 13.48 versus the industry average of 20.45. It sports a Zacks Rank #1 and has a VGM Score of A.
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
Comcast Corporation (CMCSA) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : 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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Fed Turns Dovish The Federal Reserve Chair Jerome Powell, in the latest meeting, hinted at a major policy shift as inflation is easing and the economy is holding up better. Their bullish stance is based on several factors — a growing positive sentiment in the stock market, a decrease in geopolitical risks, signs of cooling inflation and anticipation of the Fed’s rate-hiking cycle coming to an end. Further, Fundstrat Tom Lee, who has been one of the most persistently bullish forecasters on Wall Street this year, expects stocks will surge to a new all-time high in 2024 as the Fed shifts to a less restrictive monetary policy.
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Some of these are Everest Group Ltd. EG, Comcast Corporation CMCSA, 3M Company MMM, Molson Coors Beverage Company TAP and DaVita Inc. DVA. Molson Coors saw a positive earnings estimate revision of 28 cents over the past 60 days for the next year and has an estimated earnings growth rate of 2.59%. Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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These stocks have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of B or better, lower P/E than the industry average and a positive estimated earnings growth rate for 2024. Molson Coors saw a positive earnings estimate revision of 28 cents over the past 60 days for the next year and has an estimated earnings growth rate of 2.59%. Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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These stocks have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of B or better, lower P/E than the industry average and a positive estimated earnings growth rate for 2024. Analysts Turn Bullish Several analysts and market strategists expect the S&P 500 to touch new highs in 2024. Everest Group saw a solid earnings estimate revision of $2.58 over the past 30 days for the next year, with an estimated growth rate of 11%.
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712302.0
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2023-12-12 00:00:00 UTC
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US bank shares set for more gains on loan growth hopes from rate cuts
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https://www.nasdaq.com/articles/us-bank-shares-set-for-more-gains-on-loan-growth-hopes-from-rate-cuts
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By Manya Saini
Dec 15 (Reuters) - U.S. bank stocks extended their rally before the bell on Friday, cheered by the prospect of higher loan growth and lower deposit costs after the Federal Reserve's dovish stance raised the chances of interest-rate cuts in early 2024.
Gains in large and regional bank shares helped the sector return to their highest level since early March when three mid-sized lenders collapsed due to liquidity crunch.
The KBW Regional Banking Index .KRX closed 4.15% higher in the previous session, while the S&P 500 Banks Index .SPXBK surged nearly 21% quarter-to-date, erasing losses with a 6.54% rise this year.
"With interest rates potentially moving lower in 2024, the tailwinds of stable to lower funding cost, borrower alleviation, and improving capital levels should be enough to get investors back," said analysts at brokerage Truist Securities.
The Fed's historic policy tightening campaign has been blamed in part for the March crisis when customers pulled deposits to chase the safety of larger 'too big to fail' institutions and better returns from money market funds.
"Lower rates also alleviate capital pressure for regional banks given collapsing unrealized losses on bond books," BofA Securities analysts wrote in an industry note on Thursday.
Western Alliance WAL.N, Regions Financial RF.N, Keycorp KEY.N, Citizens Financial CFG.N and Truist Financial TFC.N gained between 1% and 2.2% in premarket trading.
Though higher borrowing costs boost interest income for the big lenders, a broad recovery in investor sentiment and lower rates are expected to help dealmaking power profit at their investment banking units.
Shares of JPMorgan Chase JPM.N, Bank of America BAC.N, Wells Fargo WFC.N, Citigroup C.N, Goldman Sachs GS.N and Morgan Stanley MS.N were up between 0.3% and 1%.
(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)
((Manya.Saini@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Manya Saini Dec 15 (Reuters) - U.S. bank stocks extended their rally before the bell on Friday, cheered by the prospect of higher loan growth and lower deposit costs after the Federal Reserve's dovish stance raised the chances of interest-rate cuts in early 2024. The Fed's historic policy tightening campaign has been blamed in part for the March crisis when customers pulled deposits to chase the safety of larger 'too big to fail' institutions and better returns from money market funds. Though higher borrowing costs boost interest income for the big lenders, a broad recovery in investor sentiment and lower rates are expected to help dealmaking power profit at their investment banking units.
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Gains in large and regional bank shares helped the sector return to their highest level since early March when three mid-sized lenders collapsed due to liquidity crunch. "With interest rates potentially moving lower in 2024, the tailwinds of stable to lower funding cost, borrower alleviation, and improving capital levels should be enough to get investors back," said analysts at brokerage Truist Securities. "Lower rates also alleviate capital pressure for regional banks given collapsing unrealized losses on bond books," BofA Securities analysts wrote in an industry note on Thursday.
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By Manya Saini Dec 15 (Reuters) - U.S. bank stocks extended their rally before the bell on Friday, cheered by the prospect of higher loan growth and lower deposit costs after the Federal Reserve's dovish stance raised the chances of interest-rate cuts in early 2024. "With interest rates potentially moving lower in 2024, the tailwinds of stable to lower funding cost, borrower alleviation, and improving capital levels should be enough to get investors back," said analysts at brokerage Truist Securities. Though higher borrowing costs boost interest income for the big lenders, a broad recovery in investor sentiment and lower rates are expected to help dealmaking power profit at their investment banking units.
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By Manya Saini Dec 15 (Reuters) - U.S. bank stocks extended their rally before the bell on Friday, cheered by the prospect of higher loan growth and lower deposit costs after the Federal Reserve's dovish stance raised the chances of interest-rate cuts in early 2024. Gains in large and regional bank shares helped the sector return to their highest level since early March when three mid-sized lenders collapsed due to liquidity crunch. "With interest rates potentially moving lower in 2024, the tailwinds of stable to lower funding cost, borrower alleviation, and improving capital levels should be enough to get investors back," said analysts at brokerage Truist Securities.
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4e892055-9db6-4fa2-9fb6-46c8f02bc685
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712303.0
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2023-12-12 00:00:00 UTC
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Pre-Market Most Active for Dec 15, 2023 : GOTU, CCCC, NIO, TQQQ, SQQQ, TSLA, RIVN, GRAB, PLTR, UBS, SMFG, CHPT
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-15-2023-%3A-gotu-cccc-nio-tqqq-sqqq-tsla-rivn-grab-pltr-ubs
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The NASDAQ 100 Pre-Market Indicator is up 46.86 to 16,584.69. The total Pre-Market volume is currently 58,117,891 shares traded.
The following are the most active stocks for the pre-market session:
Gaotu Techedu Inc. (GOTU) is +0.51 at $5.28, with 3,501,743 shares traded. GOTU's current last sale is 229.57% of the target price of $2.3.
C4 Therapeutics, Inc. (CCCC) is +0.37 at $5.38, with 2,596,467 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
NIO Inc. (NIO) is +0.3203 at $8.18, with 2,323,928 shares traded. NIO's current last sale is 78.66% of the target price of $10.4.
ProShares UltraPro QQQ (TQQQ) is +0.4202 at $49.08, with 2,048,431 shares traded. This represents a 204.85% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.1299 at $14.28, with 1,999,191 shares traded. This represents a 1.35% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +1.7286 at $252.78, with 1,482,563 shares traded. TSLA's current last sale is 101.11% of the target price of $250.
Rivian Automotive, Inc. (RIVN) is +0.66 at $23.09, with 1,253,412 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
Grab Holdings Limited (GRAB) is unchanged at $3.14, with 1,204,968 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.3299 at $18.54, with 924,092 shares traded. PLTR's current last sale is 115.87% of the target price of $16.
UBS AG (UBS) is +0.01 at $29.76, with 887,326 shares traded., following a 52-week high recorded in prior regular session.
Sumitomo Mitsui Financial Group Inc (SMFG) is -0.4247 at $9.56, with 751,352 shares traded. SMFG's current last sale is 94.61% of the target price of $10.1.
ChargePoint Holdings, Inc. (CHPT) is +0.2 at $3.10, with 748,158 shares traded. CHPT's current last sale is 77.5% of the target price of $4.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock. ProShares UltraPro Short QQQ (SQQQ) is -0.1299 at $14.28, with 1,999,191 shares traded. Sumitomo Mitsui Financial Group Inc (SMFG) is -0.4247 at $9.56, with 751,352 shares traded.
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The total Pre-Market volume is currently 58,117,891 shares traded. ProShares UltraPro Short QQQ (SQQQ) is -0.1299 at $14.28, with 1,999,191 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
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The total Pre-Market volume is currently 58,117,891 shares traded. NIO Inc. (NIO) is +0.3203 at $8.18, with 2,323,928 shares traded. Grab Holdings Limited (GRAB) is unchanged at $3.14, with 1,204,968 shares traded.
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The following are the most active stocks for the pre-market session: GOTU's current last sale is 229.57% of the target price of $2.3. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
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afad1fdf-2275-484b-988a-137d52473187
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712304.0
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2023-12-12 00:00:00 UTC
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Apellis (APLS) Falls on Europe Update for Pegcetacoplan in GA
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https://www.nasdaq.com/articles/apellis-apls-falls-on-europe-update-for-pegcetacoplan-in-ga
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Shares of Apellis Pharmaceuticals, Inc. APLS were down 17% on Dec 14 after the company announced an update on the marketing authorization application (MAA) for intravitreal pegcetacoplan to treat geographic atrophy (GA) secondary to age-related macular degeneration (AMD) in the EU.
The European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) is reviewing the MAA for intravitreal pegcetacoplan for the given indication. APLS expects the CHMP to adopt a negative opinion on the MAA for intravitreal pegcetacoplan at the upcoming meeting, which is expected to take place from Jan 22-25, 2024.
The company was earlier informed of a negative trend vote on the MAA for pegcetacoplan after the oral explanation meeting was held on Dec 13.
Though a negative opinion from the CHMP looks like a possibility now, Apellis still plans to work closely with the agency, appeal and seek a re-examination of the opinion.
Shares of Apellis have lost 1.4% in the past year compared with the industry’s decline of 17.7%.
Image Source: Zacks Investment Research
Pegcetacoplan injection was approved by the FDA for the treatment of GA secondary to AMD in February 2023. The medicine is marketed under the trade name Syfovre in the United States. It has witnessed a robust sales uptake so far, owing to continued strong demand.
However, a possible negative opinion from the CHMP is expected to delay the launch of the medicine in Europe and a potential loss of sales from this region for this indication.
Meanwhile, APLS is seeking to launch intravitreal pegcetacoplan in additional geographies. A marketing application seeking approval of intravitreal pegcetacoplan for the treatment of GA is also currently under review in several other countries. A decision on the same from regulatory bodies in other countries is expected in the first half of 2024.
In October 2023, APLS received the permanent J-code for Syfovre, which is likely to help the company streamline billing and reimbursement of the medicine.
Zacks Rank & Stocks to Consider
Apellis currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Journey Medical Corporation DERM, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Journey Medical’s 2023 loss per share have narrowed from $1.28 to 16 cents. Meanwhile, loss per share estimates for 2024 have narrowed from 41 cents to 35 cents. In the past year, shares of DERM have surged 340.7%.
Earnings of Journey Medical beat estimates in one of the last four quarters while missing the same on the remaining three occasions. DERM delivered a four-quarter earnings surprise of 118.25%, on average.
In the past 60 days, estimates for Entrada Therapeutics’ 2023 loss per share have narrowed from $2.07 to 9 cents. Meanwhile, loss per share estimates for 2024 have narrowed from $2.35 to $2.04. In the past year, shares of TRDA have decreased 34.4%.
Earnings of Entrada Therapeutics beat estimates in three of the last four quarters while missing the same on the remaining occasion. TRDA delivered a four-quarter average earnings surprise of 70.68%.
In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have improved from 67 cents to 72 cents. During the same period, earnings per share estimates for 2024 have moved up from 55 cents to 64 cents. In the past year, shares of PBYI have lost 20.4%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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
Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report
Journey Medical Corporation (DERM) : Free Stock Analysis Report
Apellis Pharmaceuticals, Inc. (APLS) : Free Stock Analysis Report
Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apellis Pharmaceuticals, Inc. APLS were down 17% on Dec 14 after the company announced an update on the marketing authorization application (MAA) for intravitreal pegcetacoplan to treat geographic atrophy (GA) secondary to age-related macular degeneration (AMD) in the EU. Image Source: Zacks Investment Research Pegcetacoplan injection was approved by the FDA for the treatment of GA secondary to AMD in February 2023. Some better-ranked stocks in the healthcare sector are Journey Medical Corporation DERM, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy).
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Some better-ranked stocks in the healthcare sector are Journey Medical Corporation DERM, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy). In the past 60 days, estimates for Entrada Therapeutics’ 2023 loss per share have narrowed from $2.07 to 9 cents. Click to get this free report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Apellis Pharmaceuticals, Inc. (APLS) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Apellis Pharmaceuticals, Inc. APLS were down 17% on Dec 14 after the company announced an update on the marketing authorization application (MAA) for intravitreal pegcetacoplan to treat geographic atrophy (GA) secondary to age-related macular degeneration (AMD) in the EU. In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have improved from 67 cents to 72 cents. Click to get this free report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Apellis Pharmaceuticals, Inc. (APLS) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Some better-ranked stocks in the healthcare sector are Journey Medical Corporation DERM, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy). In the past 60 days, estimates for Journey Medical’s 2023 loss per share have narrowed from $1.28 to 16 cents. In the past 60 days, estimates for Entrada Therapeutics’ 2023 loss per share have narrowed from $2.07 to 9 cents.
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8d3cf7bb-4f5e-4424-8a36-cc292f07e9c1
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712305.0
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2023-12-12 00:00:00 UTC
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3 Stocks to Gain From a Rebound in Retail Sales
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DCOMP
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https://www.nasdaq.com/articles/3-stocks-to-gain-from-a-rebound-in-retail-sales
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Consumer outlays unpredictably picked up in November, triggering an encouraging start to the holiday season. Sales at U.S. retailers rose a promising 0.3% in November, in contrast to analysts’ expectations of a decrease of 0.1%, per the Commerce Department. Retail sales, in reality, bounced back in November after declining 0.2% in October.
Barring autos, sales at U.S. retailers increased 0.2%, while excluding autos and gas, sales rose 0.6%. This shows that despite price pressures in November, consumers were able to splurge on discretionary items. Lest we forget, the consumer price index (CPI) increased 0.1% month over month in November.
U.S. retail and food service sales jumped 4.1% year over year in November, and from September through November, sales were up 3.4% compared to the same period a year ago. Thus, on a yearly basis, retail sales increased more than the CPI rate of 3.1%, a tell-tale sign that consumers have the wherewithal to spend banking on a strong labor market.
The unemployment rate is hovering at a level not seen in almost a half-century. Most Americans can find a job. Wages are also increasing at a faster pace than inflation. Thanks to such strength in the labor market, retail sales held up despite a decline of 2.9% in receipts at gas stations as energy prices took a beating during the month. However, from a consumer’s perspective, it’s a piece of good news as they have to spend less on fuel.
The drop in gas station sales was offset by an uptick of 1.6% at bars and eateries, a 1.3% increase at sporting goods outlets, and a 1% gain at online retailers such as Amazon Inc. AMZN. Sales also picked up at apparel, furniture, and healthcare stores. People are opening up their wallets as they are feeling confident about their well-being and the broader economy.
But it’s just not in November, retail sales are expected to improve further in December as well. The Federal Reserve’s less aggressive monetary policy, coupled with the offline and online deals, is expected to entice consumers to spend more on nonobligatory items and benefit retailers.
Hence, it’s sensible for astute investors to invest in retailers such as Hibbett Sports HIBB, Carrols Restaurant Group TAST and American Eagle Outfitters AEO that directly gain from this promising economic backdrop and an uptick in retail sales.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Such stocks also have a VGM Score of A or B. Here, V stands for Value, G for Growth, and M for Momentum; the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hibbett Sports has evolved its offerings from sports goods to an athletic-inspired, fashion-focused assortment. HIBB currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has increased 11.6% over the past 60 days. The company’s expected earnings growth for next year is 8.5%.
Carrols Restaurant is the largest BURGER KING franchisee in the United States. TAST currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has increased 29.7% over the past 60 days. The company’s expected earnings growth for next year is 8.3%.
American Eagle Outfitters is a specialty retailer of casual apparel. AEO currently has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has increased 4.7% over the past 60 days. The company’s expected earnings growth for the next five-year period is 18.9%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Hibbett, Inc. (HIBB) : Free Stock Analysis Report
Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Thus, on a yearly basis, retail sales increased more than the CPI rate of 3.1%, a tell-tale sign that consumers have the wherewithal to spend banking on a strong labor market. The drop in gas station sales was offset by an uptick of 1.6% at bars and eateries, a 1.3% increase at sporting goods outlets, and a 1% gain at online retailers such as Amazon Inc. AMZN. The Federal Reserve’s less aggressive monetary policy, coupled with the offline and online deals, is expected to entice consumers to spend more on nonobligatory items and benefit retailers.
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Barring autos, sales at U.S. retailers increased 0.2%, while excluding autos and gas, sales rose 0.6%. Hence, it’s sensible for astute investors to invest in retailers such as Hibbett Sports HIBB, Carrols Restaurant Group TAST and American Eagle Outfitters AEO that directly gain from this promising economic backdrop and an uptick in retail sales. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Hibbett, Inc. (HIBB) : Free Stock Analysis Report Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. retail and food service sales jumped 4.1% year over year in November, and from September through November, sales were up 3.4% compared to the same period a year ago. Hence, it’s sensible for astute investors to invest in retailers such as Hibbett Sports HIBB, Carrols Restaurant Group TAST and American Eagle Outfitters AEO that directly gain from this promising economic backdrop and an uptick in retail sales. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Hibbett, Inc. (HIBB) : Free Stock Analysis Report Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Thus, on a yearly basis, retail sales increased more than the CPI rate of 3.1%, a tell-tale sign that consumers have the wherewithal to spend banking on a strong labor market. Hence, it’s sensible for astute investors to invest in retailers such as Hibbett Sports HIBB, Carrols Restaurant Group TAST and American Eagle Outfitters AEO that directly gain from this promising economic backdrop and an uptick in retail sales. The company’s expected earnings growth for next year is 8.5%.
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b5f15c64-8847-4c4f-b72c-aeb47b2a5a34
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712306.0
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2023-12-12 00:00:00 UTC
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Do Options Traders Know Something About Krispy Kreme (DNUT) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-krispy-kreme-dnut-stock-we-dont
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nan
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nan
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Investors in Krispy Kreme, Inc. DNUT need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $2.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Krispy Kreme shares, but what is the fundamental picture for the company? Currently, Krispy Kreme is a Zacks Rank #4 (Sell) in the Consumer Products - Staples industry that ranks in the Bottom 25% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while one has dropped the estimate. The net effect has taken our Zacks Consensus Estimate for the current quarter from 11 cents per share to 13 cents in that period.
Given the way analysts feel about Krispy Kreme 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 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
Krispy Kreme, Inc. (DNUT) : 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 in Krispy Kreme, Inc. DNUT need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Krispy Kreme, Inc. (DNUT) : 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. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. 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.
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Given the way analysts feel about Krispy Kreme right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? 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.
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1d123e89-994a-46a5-9163-423526e92a8d
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712307.0
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2023-12-12 00:00:00 UTC
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Here's How Much a $1000 Investment in InterDigital Made 10 Years Ago Would Be Worth Today
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DCOMP
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https://www.nasdaq.com/articles/heres-how-much-a-%241000-investment-in-interdigital-made-10-years-ago-would-be-worth-today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in InterDigital (IDCC) ten years ago? It may not have been easy to hold on to IDCC for all that time, but if you did, how much would your investment be worth today?
InterDigital's Business In-Depth
With that in mind, let's take a look at InterDigital's main business drivers.
Headquartered in Wilmington, DE, InterDigital, Inc. is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages 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, the company’s team of skilled engineers has an 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 (IoT) applications. The company also provides video encoding and transmission technologies while conducting fundamental research into video coding, IoT, smart home, imaging sciences, augmented reality and virtual reality, and artificial intelligence and machine learning technologies. The patented technologies of the company are used in several products like mobile devices, wireless infrastructure equipment as well as IoT devices and software platforms.
InterDigital derives revenues primarily from patent licensing, with contributions from patent sales, product sales, technology solutions licensing, and sales and engineering services. It has one of the most significant patent portfolios in the wireless and video industries. The company reports under a single operating segment.
The company has incorporated high quality video and artificial intelligence (AI) research team along with an established portfolio of video expertise to expand its footprint in wireless and video technologies and consumer electronics. InterDigital actively contributes to the technical development of standards pertaining to digital cellular and wireless communications and other technologies. Leveraging economies of scale and interoperability functions, these standards provide detailed specifications for wireless communications products and systems. Moreover, the standardization process benefits both implementers and consumers as it encourages the development of ideas and technical solutions that result in innovative standards.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For InterDigital, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $3,354.90, or a gain of 235.49%, as of December 15, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 165.84% and the price of gold went up 58.09% over the same time frame.
Analysts are forecasting more upside for IDCC too.
InterDigital reported solid third-quarter 2023 results, with both the bottom line and top line surpassing the respective Zacks Consensus Estimate. The company is benefiting from healthy demand trends in the CE, loT/Auto and smartphone markets. Improvement in catch-up revenues driven by new patent license agreements is a tailwind. Initiatives to expedite research in advanced 5G and 6G networks will likely boost prospects. Collaboration with IIT Kanpur will focus on advanced MIMO system development that will support high-bandwidth-intensive applications and enable ultra-low latency communications. Efforts to optimize its strength in the core wireless licensing business and steps to drive shareholder value are positive factors. However, substantial competitive pressure and rising operating costs are straining margins. A high debt burden is a concern.
Shares have gained 11.32% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company engages 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. Notably, InterDigital’s secure and scalable horizontal platform, oneMPOWER, enables businesses to launch and manage Internet of Things (IoT) applications. Collaboration with IIT Kanpur will focus on advanced MIMO system development that will support high-bandwidth-intensive applications and enable ultra-low latency communications.
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InterDigital derives revenues primarily from patent licensing, with contributions from patent sales, product sales, technology solutions licensing, and sales and engineering services. InterDigital reported solid third-quarter 2023 results, with both the bottom line and top line surpassing the respective Zacks Consensus Estimate. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries. The company also provides video encoding and transmission technologies while conducting fundamental research into video coding, IoT, smart home, imaging sciences, augmented reality and virtual reality, and artificial intelligence and machine learning technologies. The company has incorporated high quality video and artificial intelligence (AI) research team along with an established portfolio of video expertise to expand its footprint in wireless and video technologies and consumer electronics.
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It may not have been easy to hold on to IDCC for all that time, but if you did, how much would your investment be worth today? The patented technologies of the company are used in several products like mobile devices, wireless infrastructure equipment as well as IoT devices and software platforms. InterDigital actively contributes to the technical development of standards pertaining to digital cellular and wireless communications and other technologies.
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a020f49d-31d6-48f9-8754-4a0c4e129bba
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712308.0
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2023-12-12 00:00:00 UTC
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2 Great Passive Income Stocks to Buy for 2024
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DCOMP
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https://www.nasdaq.com/articles/2-great-passive-income-stocks-to-buy-for-2024
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nan
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Passive income isn't hard to find in the stock market. Dividend stocks provide truly passive cash flow in the form of quarterly or annual payments that often increase with each passing year. Income investors can also use those regular payments to supercharge overall returns if they choose to automatically reinvest them. That way, you can accumulate more shares during market downturns and fewer shares when stocks are rallying.
Many dividend stocks have climbed higher in the past year, partly thanks to those appealing qualities. But several still seem like attractive options for income investors. Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today.
1. Apple
Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. Sure, the roughly $0.24-per-share quarterly payment translates into just a 0.5% yield based on today's stock price, but Apple maintains one of the market's biggest capital return programs. In the past year, the tech giant has sent $15 billion to shareholders through dividend payments in addition to nearly $80 billion of stock buyback spending.
Those figures illustrate how Apple prefers to allocate more of its excess cash toward stock repurchases. But its dividend is still a priority for executives and has been increasing steadily since 2012.
There are plenty of reasons to expect more growth in 2024 and beyond. Apple reported modest sales gains last quarter thanks to robust demand in the core iPhone business. The tech giant's services division is expanding nicely, too, which is a great sign for long-term profitability.
The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend.
2. Coca-Cola
Coca-Cola has been a passive income giant for decades. Its dividend dates to the 1890s, in fact. And that payout has been rising annually for the past 61 years.
But there's more to be excited about in Coke's future as well. The company is growing sales at a double-digit rate today, for one. The sales spike is coming from a healthy mix between higher volumes and increased prices. Consumers still like core brands such as Coke Zero, and they're also enthusiastic about non-traditional beverages like sparkling waters, energy drinks, and teas.
You'll struggle to find a more financially impressive business than this. Coke's operating profit is sitting at an industry-leading 30% of sales, giving management plenty of resources it can direct toward growth initiatives like the company's massive marketing program.
Its flood of cash flow supports a rising dividend that's currently yielding more than 3%. Investors can thank pessimism on Wall Street around Coke's short-term growth prospects for that higher yield. The stock dropped 6% in 2023 even though its earnings trends have strengthened this year.
As a result, you can buy shares of Coke for 2024 at a relative discount of 24 times earnings. Investors were paying nearly 30 times earnings in early 2023. It might take time before Wall Street wises up to that obvious value, but patient income investors can just collect its rock-solid dividend in the meantime.
Editor's note: This article has been corrected. Apple's quarterly dividend payment is $0.24.
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.
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Demitri Kalogeropoulos has positions in Apple. 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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Dividend stocks provide truly passive cash flow in the form of quarterly or annual payments that often increase with each passing year. Sure, the roughly $0.24-per-share quarterly payment translates into just a 0.5% yield based on today's stock price, but Apple maintains one of the market's biggest capital return programs. Coke's operating profit is sitting at an industry-leading 30% of sales, giving management plenty of resources it can direct toward growth initiatives like the company's massive marketing program.
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Apple Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend. 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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Apple Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend. 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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The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend. Apple's quarterly dividend payment is $0.24. 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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91a2abae-f504-4e93-bdd0-77e138ea881d
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712309.0
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2023-12-12 00:00:00 UTC
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Implied Volatility Surging for Black Stone Minerals (BSM) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-black-stone-minerals-bsm-stock-options-1
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nan
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nan
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Investors in Black Stone Minerals, L.P. BSM need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $2.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Black Stone Minerals shares, but what is the fundamental picture for the company? Currently, Black Stone Minerals is a Zacks Rank #3 (Hold) in the Energy and Pipeline - Master Limited Partnerships industry that ranks in the Top 12% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 47 cents per share to 51 cents in that period.
Given the way analysts feel about Black Stone Minerals 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 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
Black Stone Minerals, L.P. (BSM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors in Black Stone Minerals, L.P. BSM need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Clearly, options traders are pricing in a big move for Black Stone Minerals shares, but what is the fundamental picture for the company? Click to get this free report Black Stone Minerals, L.P. (BSM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Black Stone Minerals is a Zacks Rank #3 (Hold) in the Energy and Pipeline - Master Limited Partnerships industry that ranks in the Top 12% of our Zacks Industry Rank. Given the way analysts feel about Black Stone Minerals right now, this huge implied volatility could mean there’s a trade developing.
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Given the way analysts feel about Black Stone Minerals right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? 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.
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2023-12-12 00:00:00 UTC
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Pharma Stock Roundup: PFE Issues Weak 2024 View, AZN to Buy Icosavax & More
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https://www.nasdaq.com/articles/pharma-stock-roundup%3A-pfe-issues-weak-2024-view-azn-to-buy-icosavax-more
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This week, Pfizer PFE issued a disappointing guidance for 2024, which includes its expectations from the acquisition of Seagen, closed on Dec 14. AstraZeneca AZN announced that it is buying vaccine company, Icosavax ICVX, for a total deal value of up to $1.1 billion. Merck MRK and partner Moderna MRNA initiated the second pivotal study in the INTerpath program on their personalized mRNA therapeutic cancer vaccine, V940 (mRNA-4157).
Recap of the Week’s Most Important Stories
Pfizer Issues Weak Guidance for 2024: Pfizer announced its revenue and profit guidance for 2024, which was well below investor expectations due to lower-than-expected demand for its COVID products — COVID-19 vaccine, Comirnaty, and its oral antiviral pill for COVID, Paxlovid. Pfizer expects total revenues to be in the range of $58.5 to $61.5 billion in 2024, which is almost flat compared with 2023’s expected range of $58.0 to $61.0 billion.
The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty, $3.1 billion in expected revenues from Seagen and approximately $1 billion due to the reclassification of Pfizer’s royalty income from Other (Income)/Deductions into the Revenue line. Excluding revenues from Seagen and the abovementioned reclassification, the revenue guidance for legacy Pfizer is $54.5 to $57.5 billion, which indicates a decline from the expected range for 2023.
Adjusted earnings are expected in the range of $2.05 to $2.25 per share including the expected impact of financing costs related to the Seagen acquisition. However, excluding 40 cents dilution from the Seagen acquisition, adjusted earnings for legacy Pfizer are expected in the range of $2.45 to $2.65 per share.
The European Commission granted conditional marketing authorization to Elrexfio (elranatamab), Pfizer’s off-the-shelf fixed-dose, subcutaneous BCMA-directed bispecific antibody immunotherapy, for treating relapsed/refractory multiple myeloma) in heavily pre-treated patients. The approval of Elrexfio is based on data from the pivotal phase II MagnetisMM-3 study. Elrexfio was approved by the FDA in August.
The FDA and European Medicines Agency accepted regulatory applications seeking approval of Pfizer’s anti-TFPI inhibitor, marstacimab, for the treatment of hemophilia A and B. The FDA decision on the biologics license application is expected in the fourth quarter of 2024. The European Commission’s decision on the marketing authorization application (MAA) for marstacimab is expected by the first quarter of 2025.
AstraZeneca to Buy Vaccine Maker Icosavax: AstraZeneca announced a definitive agreement to acquire Icosavax, which makes differentiated vaccines leveraging its innovative, protein virus-like particle (VLP) platform. The deal is valued at up to $1.1 billion, including an upfront cash payment of approximately $0.8 billion plus potential contingent value payments.
Icosavax’s lead pipeline candidate is a phase III ready vaccine, IVX-A12, a combination vaccine for RSV. IVX-A12 is a combination protein VLP vaccine that targets respiratory syncytial virus (RSV) and human metapneumovirus (hMPV), two leading causes of severe respiratory infections.
AstraZeneca claims that IVX-A12 has a differentiated profile versus currently approved monotherapy RSV vaccines. Data from the phase II study of IVX-A12 demonstrated robust immune responses against both RSV and hMPV one month after vaccination. The addition of IVX-A12 to its late-stage vaccine pipeline gives AstraZeneca a platform for further development of combination vaccines against respiratory viruses.
AstraZeneca and partner Sanofi’s RSV antibody Beyfortus was approved by the FDA in July to protect newborns and infants. Beyfortus was approved in Europe in November 2022
Merck/Moderna Begin 2nd Study on mRNA Cancer Vaccine: Merck/Moderna initiated a pivotal phase III study evaluating V940 (mRNA-4157) in combination with Keytruda in earlier-stage non-small cell lung cancer. The primary endpoint of the late-stage study called INTerpath-002 is disease-free survival. Global recruitment in the study has begun and the first patients have been enrolled in Australia. Merck and Moderna are already conducting a phase III study, called INTerpath-001, on V940 (mRNA-4157) in combination with Keytruda for the treatment of adjuvant melanoma.
The FDA approved Welireg, Merck’s novel HIF-2α inhibitor, for treating patients with advanced renal cell carcinoma (RCC) that progressed following PD-1/L1 and VEGF-TKI therapies. The approval was based on data from the phase III LITESPARK-005 study, which showed that treatment with Welireg reduced the risk of disease progression or death compared to everolimus in the abovementioned patient group. Welireg, at present, is approved to treat some von Hippel-Lindau disease-associated tumors.
A phase III study called LEAP-001 evaluating Merck’s Keytruda plus partner Eisai’s Lenvima for the first-line treatment of patients with advanced or recurrent endometrial carcinoma, failed to meet their dual primary endpoints of overall survival (“OS”) and progression free survival (“PFS”).
In the final analysis of the study, the Keytruda/Lenvima combination failed to show a sufficient improvement in OS or PS to meet the study’s prespecified statistical criteria in the first-line treatment of certain patients with advanced or recurrent endometrial carcinoma versus standard of care, platinum-based chemotherapy doublet (carboplatin plus paclitaxel). At present, Keytruda plus Lenvima is approved to treat certain types of advanced endometrial carcinoma following prior systemic therapy in any setting and advanced RCC.
The NYSE ARCA Pharmaceutical Index rose 1.09% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, AbbVie rose the most (4.8%), while Pfizer declined the most (8.6%).
In the past six months, Lilly has risen the most (26.3%), while Pfizer has declined the most (34.2%).
(See the last pharma stock roundup here: ABBV to Buy CERE, JNJ’s 2024 View, LLY & NVS Get FDA Nod)
What's Next in the Pharma World?
Watch for pipeline and regulatory updates next week.
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
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
Icosavax, Inc. (ICVX) : 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 European Commission granted conditional marketing authorization to Elrexfio (elranatamab), Pfizer’s off-the-shelf fixed-dose, subcutaneous BCMA-directed bispecific antibody immunotherapy, for treating relapsed/refractory multiple myeloma) in heavily pre-treated patients. The FDA and European Medicines Agency accepted regulatory applications seeking approval of Pfizer’s anti-TFPI inhibitor, marstacimab, for the treatment of hemophilia A and B. The approval was based on data from the phase III LITESPARK-005 study, which showed that treatment with Welireg reduced the risk of disease progression or death compared to everolimus in the abovementioned patient group.
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The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty, $3.1 billion in expected revenues from Seagen and approximately $1 billion due to the reclassification of Pfizer’s royalty income from Other (Income)/Deductions into the Revenue line. A phase III study called LEAP-001 evaluating Merck’s Keytruda plus partner Eisai’s Lenvima for the first-line treatment of patients with advanced or recurrent endometrial carcinoma, failed to meet their dual primary endpoints of overall survival (“OS”) and progression free survival (“PFS”). Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Icosavax, Inc. (ICVX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty, $3.1 billion in expected revenues from Seagen and approximately $1 billion due to the reclassification of Pfizer’s royalty income from Other (Income)/Deductions into the Revenue line. Beyfortus was approved in Europe in November 2022 Merck/Moderna Begin 2nd Study on mRNA Cancer Vaccine: Merck/Moderna initiated a pivotal phase III study evaluating V940 (mRNA-4157) in combination with Keytruda in earlier-stage non-small cell lung cancer. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Icosavax, Inc. (ICVX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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AstraZeneca AZN announced that it is buying vaccine company, Icosavax ICVX, for a total deal value of up to $1.1 billion. Excluding revenues from Seagen and the abovementioned reclassification, the revenue guidance for legacy Pfizer is $54.5 to $57.5 billion, which indicates a decline from the expected range for 2023. Icosavax’s lead pipeline candidate is a phase III ready vaccine, IVX-A12, a combination vaccine for RSV.
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2023-12-12 00:00:00 UTC
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Are Options Traders Betting on a Big Move in General Mills (GIS) Stock?
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-general-mills-gis-stock
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Investors in General Mills, Inc. GIS need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $35 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for General Mills shares, but what is the fundamental picture for the company? Currently, General Mills is a Zacks Rank #3 (Hold) in the Food - Miscellaneous industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.16 per share to $1.15 in that period.
Given the way analysts feel about General Mills 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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Mills, Inc. (GIS) : 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 in General Mills, Inc. GIS need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report General Mills, Inc. (GIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about General Mills 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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Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. Given the way analysts feel about General Mills right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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2023-12-12 00:00:00 UTC
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Fed Ensures a Tech Rally Yet Again in 2024: 5 Top Picks
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https://www.nasdaq.com/articles/fed-ensures-a-tech-rally-yet-again-in-2024%3A-5-top-picks
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The Fed set the stage for this year’s Santa Claus rally in mid-December after its latest FOMC meeting. U.S. stock markets have soared amid a clear indication from the central bank that the current interest rate hike cycle, which elevated the Fed fund rate to a 22-year high of 5.25-5.50% from 0-0.25% in March 2022, finally ended.
Moreover, the December FOMC meeting dot-plot has shown that on average, Fed officials are expecting at least three rate cuts of 25 basis points each in 2024, followed by four more rate cuts of a full one percentage point in 2025.
The dot plot has also indicated three more rate cuts in 2026, which would take down the benchmark lending rate to the range of 2-2.25%. Following the Fed’s decision, the yield on the benchmark 10-Year U.S. Treasury Note fell less than 4% for the first time since March 2023. The yield topped more than 5% in October.
Fed officials currently expect core inflation to fall 3.2% in 2023, 2.4% in 2024, and then to 2.2% in 2025. Finally, it should decline to the 2% target in 2026. Despite rigorous interest rate hikes, the fundamentals of the U.S. economy remain strong.
On Dec 14, the Atlanta Fed the U.S. GDP to grow by 2.6% in fourth-quarter 2023, a notable improvement from the 1.2% estimated on Dec 7. This eliminates the fear of a recession in 2024 thereby boosting investors’ confidence in a possible soft landing for the U.S. economy.
Technology Sector to Benefit the Most
Buoyed by steadily decreasing inflation and a simultaneous reduction in the magnitude and number of interest rate hikes by the Fed, the technology sector has witnessed an astonishing rally in 2023. The impressive northbound journey of Wall Street this year after a highly disappointing 2022, has been predominantly driven by a tech rally.
Despite its higher valuation, the tech rally is likely to gather more pace in 2024 as a low market rate of interest always boosts growth stocks like technology. Investment in growth stocks creates wealth over a long period of time. A lower market interest rate will decrease the discount rate, which in turn will raise the net present value of investment. Moreover, many of these companies depend on the chip source of credit for the business to grow.
The tech rally in 2023 was led by a massive thrust toward artificial intelligence (AI), especially generative AI. The rapid penetration of digital technologies and the Internet worldwide during the lockdown period, ushered in significant adoption of AI.
Some financial and technology experts believe that AI is much-hyped and may lead to a bubble. We believe the AI-space has yet to unfold in the United States and international markets. Once that happens, it will generate huge business opportunities for technology companies producing high-end products.
Our Top Picks
We have narrowed our search to five technology behemoths (market capital > $50 billion) that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Meta Platforms Inc. META is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. META is considered to have pioneered the concept of social networking.
However, as developed regions mature, Meta Platforms has taken measures to drive penetration in emerging markets of South East Asia, Latin America and Africa. Of all places, India deserves a-special mention in terms of user growth. The world’s second-largest populated country offers tremendous potential for META. With China off the radar, India can prove to be a terrific growth engine for Meta.
Meta Platforms has an expected revenue and earnings growth rate of 13.4% and 22.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the last 30 days.
NVIDIA Corp. NVDA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. Collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space.
NVIDIA has an expected revenue and earnings growth rate of 53.1% and 61.5%, respectively, for next year (ending January 2025). The Zacks Consensus Estimate for next-year earnings has improved 19.4% over the last 30 days.
Intel Corp. INTC designs, develops, manufactures, markets, and sells computing and related products worldwide. INTC operates through the Client Computing Group, Data Center and AI, Network and Edge, Mobileye, Accelerated Computing Systems and Graphics, Intel Foundry Services, and Other segments.
INTC mainly offers platform products, such as central processing units and chipsets, system-on-chip and multichip packages, accelerators, boards and systems, connectivity products, and memory and storage products.
Intel has an expected revenue and earnings growth rate of 13.5% and 97.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 13.9% over the last 60 days.
ServiceNow Inc. NOW has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. NOW’s expanding global presence, solid partner base and strategic buyouts are positives.
New solutions — Automated Service Suggestions, Service Request Playbook and Workplace Scenario Planning — are helping NOW win new customers. An expanding portfolio with new generative AI solutions is expected to drive top-line growth for NOW.
ServiceNow has an expected revenue and earnings growth rate of 20.6% and 22.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 8.1% over the last 60 days.
CrowdStrike Holdings Inc. CRWD is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches and the increasing necessity for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud-migration strategies adopted by organizations are the key growth drivers.
CRWD’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users. Additionally, strategic acquisitions, like that of Humio and Preempt, are expected to drive growth for CRWD.
CrowdStrike has an expected revenue and earnings growth rate of 28.2% and 23.9%, respectively, for next year (ending January 2025). The Zacks Consensus Estimate for next-year earnings has improved 5.2% over the last 30 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
CrowdStrike (CRWD) : 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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However, as developed regions mature, Meta Platforms has taken measures to drive penetration in emerging markets of South East Asia, Latin America and Africa. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. CrowdStrike Holdings Inc. CRWD is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches and the increasing necessity for security and networking products amid the growing hybrid working trend.
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Image Source: Zacks Investment Research Meta Platforms Inc. META is benefiting from steady user growth across all regions, particularly Asia Pacific. NVIDIA Corp. NVDA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report CrowdStrike (CRWD) : 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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Meta Platforms has an expected revenue and earnings growth rate of 13.4% and 22.7%, respectively, for next year. NVIDIA has an expected revenue and earnings growth rate of 53.1% and 61.5%, respectively, for next year (ending January 2025). Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Meta Platforms Inc. META is benefiting from steady user growth across all regions, particularly Asia Pacific. Meta Platforms has an expected revenue and earnings growth rate of 13.4% and 22.7%, respectively, for next year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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2023-12-12 00:00:00 UTC
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Zacks Industry Outlook Highlights CACI International, Perficient and CSG Systems
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-caci-international-perficient-and-csg-systems-0
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For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Equity Research discusses CACI International CACI, Perficient PRFT and CSG Systems CSGS.
Industry: Computer Services
Link: https://www.zacks.com/commentary/2198186/3-stocks-to-watch-from-the-challenging-computer-services-industry
The Zacks Computer - Services industry has been facing macroeconomic challenges. Elongated sales cycle, lower conversion rates and delays by customers in making purchase decisions are notable headwinds. However, the industry is riding on the ongoing digital transformation, which is increasing the demand for cloud-enabled software solutions.
The rising adoption of digital transformative techniques in healthcare and financial services has been a silver lining for industry participants. CACI International, Perficient and CSG Systems are well-positioned to benefit from the above-mentioned factors. The growing need for consulting, research and cyber-security solutions, stringent regulations, digital healthcare, and the growing adoption of business automation solutions is likely to continue driving the industry's prospects.
Industry Description
The Zacks Computer - Services industry primarily comprises companies that offer cloud and software-based solutions. Their offerings include consulting and research solutions, security solutions, business support solutions and systems engineering, as well as software application development solutions. The industry participants cater to varied end markets and customers, including intelligence, defense, U.S. government agencies, communications, banking, financial services, insurance, healthcare, and media and entertainment.
Consultancy companies in the industry are helping clients in their ongoing digital transformation. They provide end-to-end services, including application development, integration and maintenance, technology infrastructure management and business process services.
3 Computer-Services Industry Trends to Watch
Remote & Hybrid Work Trends Boost Prospects: The industry's growth is expected to accelerate in the days ahead based on an increasing number of remote and hybrid workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, enabling them to provide flexible and easily adaptable hybrid solutions. The coronavirus-induced remote-working trend has led to increased demand for cloud and cost-efficient business support solutions, as well as other digital monetization solutions, which bode well for the industry.
Growing Cyber Attacks are Creating a Tailwind: The increasing number of cyber-attacks and related security risks are expected to keep the industry's momentum alive. Government agencies are ideal targets for cyber-attacks, as they are entrusted with sensitive information. Therefore, the growing need for cyber security solutions and services in critical areas like defense, intelligence and civilian agencies of the U.S. government bodes well for industry players.
Regulatory Compliance Drives Demand: The companies in this industry are likely to benefit from increasingly complex network systems and sensitive information environments in which governments and businesses operate. The industry participants are keeping pace with the global regulatory and business practice requirements, thereby helping customers incorporate the best practices while complying with governmental and industry norms.
Zacks Industry Rank Indicates Dim Prospects
The Zacks Computer – Services industry is housed within the broader Zacks Computer and Technology sector. It currently carries a Zacks Industry Rank #183, which places it in the bottom 27% of more than 250 Zacks industries.
The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group's earnings growth potential. Since Dec 31, 2022, the Zacks Consensus Estimate for the industry's 2023 earnings has moved down 30.5%.
Despite the gloomy industry outlook, there are a few stocks worth watching. But before we present those 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 Lags Sector and S&P 500
The Zacks Computer – Services industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500 Index over the past year.
The industry has risen 8.2% over this period compared with the S&P 500's rally of 16.6% and the broader sector's return of 37.8%.
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 14.69X compared with the S&P 500's 19.43X and the sector's forward-12-month P/E of 24.66X.
Over the last five years, the industry has traded as high as 19.79X and as low as 12.67X, with a median of 16.12X.
3 Computer-Services Stocks to Watch Right Now
CSG Systems: This Zacks Rank #2 (Buy) company is benefiting from strong demand for its SaaS products. Expanding clientele driven by a robust portfolio is driving top-line growth. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
CSG Systems continues to focus on delivering organic revenue growth in the range of 2-6% over the long term.
The Zacks Consensus Estimate for CSG Systems' 2023 earnings has increased by a penny to $3.63 per share over the past 30 days. The stock has declined 7.8% in the year-to-date period.
CACI International: This Zacks Rank #3 (Hold) company has been benefiting from business wins and organic expansions. CACI has a large pipeline of new projects and continues to win more deals at regular intervals. Having the government as a big client lends stability to the company's business and moderates revenue fluctuations.
CACI's sustained focus on its strategy to grow in larger markets and leverage mergers and acquisitions to further increase its market share.
The Zacks Consensus Estimate for CACI's fiscal 2024 earnings has been steady at $20.05 per share over the past 30 days. The stock has gained 9.3% year to date.
Perficient: This Zacks Rank #3 company benefits from a strong partner base and an expanding clientele.
Perficient's top-line benefits from partnerships with the likes of Microsoft and Adobe. This is helping it to win new deals. In third-quarter 2023, Perficient booked 37 deals greater than a million dollars.
The Zacks Consensus Estimate for Perficient's fiscal 2023 earnings has been unchanged at $3.97 per share over the past 30 days. The stock has declined 1.9% year to date.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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
CACI International, Inc. (CACI) : Free Stock Analysis Report
Perficient, Inc. (PRFT) : Free Stock Analysis Report
CSG Systems International, Inc. (CSGS) : 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 industry participants cater to varied end markets and customers, including intelligence, defense, U.S. government agencies, communications, banking, financial services, insurance, healthcare, and media and entertainment. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, enabling them to provide flexible and easily adaptable hybrid solutions. Regulatory Compliance Drives Demand: The companies in this industry are likely to benefit from increasingly complex network systems and sensitive information environments in which governments and businesses operate.
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Their offerings include consulting and research solutions, security solutions, business support solutions and systems engineering, as well as software application development solutions. The industry participants cater to varied end markets and customers, including intelligence, defense, U.S. government agencies, communications, banking, financial services, insurance, healthcare, and media and entertainment. Click to get this free report CACI International, Inc. (CACI) : Free Stock Analysis Report Perficient, Inc. (PRFT) : Free Stock Analysis Report CSG Systems International, Inc. (CSGS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Industry Rank Indicates Dim Prospects The Zacks Computer – Services industry is housed within the broader Zacks Computer and Technology sector. It currently carries a Zacks Industry Rank #183, which places it in the bottom 27% of more than 250 Zacks industries. Industry Lags Sector and S&P 500 The Zacks Computer – Services industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500 Index over the past year.
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CACI International: This Zacks Rank #3 (Hold) company has been benefiting from business wins and organic expansions. The stock has declined 1.9% year to date. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities.
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2023-12-12 00:00:00 UTC
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How Celsius Really Makes Money
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https://www.nasdaq.com/articles/how-celsius-really-makes-money
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nan
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nan
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Celsius (NASDAQ: CELH) is a fast-growing beverage company that doesn't make beverages. Instead, the companies making Celsius drinks are co-packers or third parties who mix and package Celsius' products.
In this video, Travis Hoium explains why this is a successful strategy and shows how Celsius can use third parties to fuel growth.
*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 Celsius right now?
Before you buy stock in Celsius, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Celsius wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius and Monster Beverage. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Travis Hoium explains why this is a successful strategy and shows how Celsius can use third parties to fuel growth. The 10 stocks that made the cut could produce monster returns in the coming years. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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Before you buy stock in Celsius, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Celsius wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius and Monster Beverage.
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Before you buy stock in Celsius, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Celsius wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius and Monster Beverage.
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Before you buy stock in Celsius, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Celsius wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius and Monster Beverage.
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2d256190-ed50-48f0-b627-eea490d1c111
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712315.0
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2023-12-12 00:00:00 UTC
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SiTime (SITM) Surges 8.0%: Is This an Indication of Further Gains?
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DCOMP
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https://www.nasdaq.com/articles/sitime-sitm-surges-8.0%3A-is-this-an-indication-of-further-gains
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SiTime SITM shares rallied 8% in the last trading session to close at $126.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.2% gain over the past four weeks.
The increase in share price can be attributed to robust demand for the company’s diversified product portfolio. The company is also expanding its portfolio through acquisitions, such as its recent acquisition of clock products from Aura Semiconductor. This move will aid in licensing Aura’s clock IP and contribute to the company's vision of becoming the sole provider of comprehensive and innovative precision timing products. Alongside its innovative products, SiTime is benefiting from strength in its single-source business and increased design wins.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -68.8%. Revenues are expected to be $41.65 million, down 31.5% 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 SiTime, 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 SITM 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 >>>>
SiTime belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Kimball Electronics KE, closed the last trading session 4% higher at $26.38. Over the past month, KE has returned 0.8%.
Kimball Electronics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Compared to the company's year-ago EPS, this represents a change of -15.9%. Kimball Electronics currently boasts a Zacks Rank of #4 (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
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
SiTime Corporation (SITM) : Free Stock Analysis Report
Kimball Electronics, Inc. (KE) : 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 will aid in licensing Aura’s clock IP and contribute to the company's vision of becoming the sole provider of comprehensive and innovative precision timing products. 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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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> SiTime belongs to the Zacks Electronics - Miscellaneous Products industry. Kimball Electronics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Click to get this free report SiTime Corporation (SITM) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> SiTime belongs to the Zacks Electronics - Miscellaneous Products industry. Click to get this free report SiTime Corporation (SITM) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : 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 >>>> SiTime belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Kimball Electronics KE, closed the last trading session 4% higher at $26.38. Kimball Electronics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37.
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2023-12-12 00:00:00 UTC
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3 Highly-Ranked Stocks to Buy Now for a Big 2024 Comeback
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https://www.nasdaq.com/articles/3-highly-ranked-stocks-to-buy-now-for-a-big-2024-comeback
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Today’s episode of Full Court Finance at Zacks explores the bullish market rally following the Fed’s rate cut outlook. Despite the impressive run for the Nasdaq and the S&P 500 in 2023, many large-cap stocks have underperformed for various reasons. The three highly-ranked stocks we dig into today—DocuSign (DOCU), Nike (NKE), and Target (TGT)—are all trading at least 30% below their highs and could be poised for serious comebacks in 2024.
Jay Powell and the Fed gave the green light to the bulls on Wednesday when the world’s most important central bank signaled the possibility of three rate cuts in 2024. The 10-year U.S. Treasury is back below 4% (3.92%) after sitting at 5% in late October as Wall Street rapidly prices in lower rates.
The Fed’s newfound dovishness finally confirms what the bulls have been saying and doing for a large chunk of 2023 and certainly since the end of October. The S&P 500 appears on the cusp of summiting a new peak by the end of 2023 or early 2024.
All of this strength came before we even entered the official Santa Claus rally period, which includes the final five trading days of the year and the first two trading days of the new year.
There will likely be some selling and choppiness in the weeks and months ahead. Still, more money is poised to flow into stocks in 2024 as the calculus on cash and bonds changes and investors grow increasingly nervous about missing out again.
DocuSign, Inc. (DOCU)
DocuSign crushed our Q3 FY24 EPS estimate on December 7 and raised its guidance to help it land a Zacks Rank #1 (Strong Buy) right now. DOCU stock has soared 30% in the last month to retake its 50-day, its 200-day, and its long-term 50-week moving averages. Yet, the e-signature stock still trades over 80% below its record highs after it got crushed for slowing growth and weak bottom-line results.
DOCU’s revenue soared following its 2018 IPO, including four straight years of between 35% to 49% growth (19% last year in FY23). The company remains a powerhouse of electronic signatures, document generation, and beyond as medical forms, legal documents, and much more are becoming increasingly paperless. DocuSign has responded to its slower growth and higher rate environment by cutting costs, changing leadership, and rolling out other efforts to streamline its business.
Image Source: Zacks Investment Research
DocuSign’s valuation levels remain sky-high. But DOCU is focused on the bottom line. Investors might want to consider the e-signature and digital document firm with 1.4 million customers as Wall Street begins to search high and low for technology stocks that are still trading far below their highs.
Nike, Inc. (NKE)
Nike trades around 30% below its highs heading into its Q2 FY24 earnings release on December 21. Wall Street sold Nike shares based on fears about growing competition and other headwinds. NKE also got caught up in the broader consumer discretionary selloff. Nike certainly faces increased competition from relative newcomers Hoka and On in the running shoe segment and among consumers looking for maximum comfort and support at their jobs. Adidas, Lululemon, and digital native upstarts are also fighting for a larger share of the so-called streetwear market or the fashion end of sportswear.
Despite more challengers, Nike remains the heavyweight champion of sportswear and one of the most valuable brands in the world alongside the likes of Coca-Cola. NKE has treaded down a new direct-to-consumer-heavy path in both brick-and-mortar and e-commerce. Nike’s sales are projected to climb 4% this year and over 8% higher next year to help boost its adjusted earnings by 16% and 17%, respectively, based on Zacks estimates.
Image Source: Zacks Investment Research
Nike’s earnings revisions help it land a Zacks Rank #2 (Buy) right now and its Shoes and Retail Apparel segment is in the top 23% of over 250 Zacks industries. Nike has climbed 850% during the last 15 years vs. the S&P 500’s 420% and its sector’s 220%. Nike is up 73% in the past five years, even though it trades 30% below its highs. Nike has retaken its 50-day and 200-day and is on the cusp of climbing above its very long-term 50-month moving average. Nike trades near its 10-year median at 29.7X forward 12-month earnings and pays a dividend.
Target (TGT)
Target posted blowout Q3 earnings results in mid-November and provided upbeat guidance that helped it capture a Zacks Rank #2 (Buy). The strong bottom-line performance extended its recent rebound that has TGT stock up 30% since the start of the fourth quarter. Even with the comeback, the retail standout trades 45% below its highs.
TGT’s resurgence has taken it right to its 50-week moving average and solidly above its 200-day and 50-day. Target trades at a 30% discount to its sector, 32% below Walmart (WMT), and close to TGT’s 10-year median. TGT stock is far more than a plummeting pandemic winner. Target crushed Walmart over the last 15 years, up 310% vs. 170% despite its massive fall from its 2021 highs.
Image Source: Zacks Investment Research
Target, like many others, failed to adapt to quickly changing consumer shopping patterns over the last year-plus. The firm is also dealing with other setbacks. But it appears that TGT is finally finding its footing again. TGT’s adjusted earnings are projected to soar 39% this year and then climb another 9% higher next year. And its dividend yields 3.2% right 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
NIKE, Inc. (NKE) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis 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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Jay Powell and the Fed gave the green light to the bulls on Wednesday when the world’s most important central bank signaled the possibility of three rate cuts in 2024. DocuSign has responded to its slower growth and higher rate environment by cutting costs, changing leadership, and rolling out other efforts to streamline its business. 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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DocuSign, Inc. (DOCU) DocuSign crushed our Q3 FY24 EPS estimate on December 7 and raised its guidance to help it land a Zacks Rank #1 (Strong Buy) right now. Image Source: Zacks Investment Research Nike’s earnings revisions help it land a Zacks Rank #2 (Buy) right now and its Shoes and Retail Apparel segment is in the top 23% of over 250 Zacks industries. Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report DocuSign (DOCU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The three highly-ranked stocks we dig into today—DocuSign (DOCU), Nike (NKE), and Target (TGT)—are all trading at least 30% below their highs and could be poised for serious comebacks in 2024. Image Source: Zacks Investment Research Nike’s earnings revisions help it land a Zacks Rank #2 (Buy) right now and its Shoes and Retail Apparel segment is in the top 23% of over 250 Zacks industries. Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report DocuSign (DOCU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The three highly-ranked stocks we dig into today—DocuSign (DOCU), Nike (NKE), and Target (TGT)—are all trading at least 30% below their highs and could be poised for serious comebacks in 2024. Investors might want to consider the e-signature and digital document firm with 1.4 million customers as Wall Street begins to search high and low for technology stocks that are still trading far below their highs. Image Source: Zacks Investment Research Nike’s earnings revisions help it land a Zacks Rank #2 (Buy) right now and its Shoes and Retail Apparel segment is in the top 23% of over 250 Zacks industries.
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2023-12-12 00:00:00 UTC
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If I Could Only Buy 1 Stock in 2024, This Would Be It
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DCOMP
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https://www.nasdaq.com/articles/if-i-could-only-buy-1-stock-in-2024-this-would-be-it
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nan
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nan
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Determining what your top stock would be if you could only have one is a useful exercise for investors. It identifies your risk tolerance, what ideas you hold to be true, and other biases. For me, other stocks may have a higher upside in 2024, but in my mind, they aren't as much of a lock as Amazon (NASDAQ: AMZN).
Amazon has rapidly become an incredibly profitable business, reaching levels no one has ever seen. I'm excited to see what 2024 has in store for Amazon, and it's one of my top stock picks for 2024.
Amazon has three main businesses driving its improvement
It's hard to determine what the most exciting part of Amazon's business is heading into 2024.
On the commerce side, Amazon transformed itself from an e-commerce business to an e-commerce fulfillment company. What's the difference? Well, instead of buying the inventory itself and selling it to consumers, it is outsourcing that practice to third-party sellers, so it isn't responsible for product innovation or inventory. Instead, Amazon becomes the platform these businesses sell on, and then Amazon stores the products in its warehouses and delivers them to customers.
This segment, known as third-party seller services, grew 20% year over year in the third quarter. While it's still about three-fifths the size of Amazon's online stores (where it purchases the products), the online store's segment only grew 7% in Q3, which showcases Amazon's changing business model.
Another growing part of Amazon's business is its advertising services, which grew 26% to $12 billion. This is Amazon's fastest-growing and fourth-largest segment, even bigger than subscription services (which includes Prime memberships). Although Amazon doesn't break out segment margins, we know from other businesses whose primary product is advertising, like Alphabet (Google) and Meta Platforms (Facebook), that advertising is a much higher-margin business than commerce. Advertising growth is key, allowing Amazon to further improve its margins.
Lastly is Amazon's most lucrative business segment, Amazon Web Services (AWS). AWS is a cloud computing offering that allows clients to rent computing power and data storage for a modest fee. In the age of artificial intelligence models being created for nearly every business, cloud computing is a vital part of the picture. AWS allows its users to collect data, process it, create models, then implement them into their systems. However, 2023 hasn't been kind to AWS.
Throughout the year, efficiency was a focus for many clients, so instead of risking losing their customers, Amazon helped streamline its clients' usage of AWS products. While this caused revenue growth to slow, management is seeing this trend slow down as new workloads are launched. This will allow AWS to return to rapid growth mode in 2024, which will be a huge driver for Amazon.
While these three parts aren't commonly thought of when considering Amazon, they are some of its most important factors. The trio's growth will also lead Amazon to do something it has never done before.
Amazon's profit margins are nearing all-time highs with no artificial boosts
The rise of higher-margin businesses combined with various efficiency efforts dramatically improved Amazon's margins. In fact, the three main margin metrics (gross, operating, and net) are all approaching all-time highs.
AMZN Gross Profit Margin (Quarterly) data by YCharts
However, Amazon's highs in these metrics were set in 2021, when the stay-at-home trend caused by the COVID-19 pandemic artificially boosted Amazon's business. In 2023, no tailwinds are inflating Amazon's profit picture, just strong execution.
Despite that, Amazon's stock trades at a fairly low price-to-sales ratio level.
AMZN PS Ratio data by YCharts
Back in 2016, Amazon wasn't nearly as profitable (although it was growing faster). Still, no one has seen what a consistently profitable Amazon looks like, although we may get a glimpse of that in 2024. With the amount of profits this business can produce, I think it has a chance of cementing itself as one of the best stocks to own in the market.
Are there other stocks that I think have more upside? Absolutely. But none of those stocks are as surefire as Amazon is in 2024.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the age of artificial intelligence models being created for nearly every business, cloud computing is a vital part of the picture. AMZN PS Ratio data by YCharts Back in 2016, Amazon wasn't nearly as profitable (although it was growing faster). 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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Although Amazon doesn't break out segment margins, we know from other businesses whose primary product is advertising, like Alphabet (Google) and Meta Platforms (Facebook), that advertising is a much higher-margin business than commerce. Amazon's profit margins are nearing all-time highs with no artificial boosts The rise of higher-margin businesses combined with various efficiency efforts dramatically improved Amazon's margins. AMZN Gross Profit Margin (Quarterly) data by YCharts However, Amazon's highs in these metrics were set in 2021, when the stay-at-home trend caused by the COVID-19 pandemic artificially boosted Amazon's business.
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Amazon's profit margins are nearing all-time highs with no artificial boosts The rise of higher-margin businesses combined with various efficiency efforts dramatically improved Amazon's margins. AMZN Gross Profit Margin (Quarterly) data by YCharts However, Amazon's highs in these metrics were set in 2021, when the stay-at-home trend caused by the COVID-19 pandemic artificially boosted Amazon's business. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
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Another growing part of Amazon's business is its advertising services, which grew 26% to $12 billion. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. 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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96de6a78-4c25-49f9-827c-68d867650d70
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712318.0
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2023-12-12 00:00:00 UTC
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Trex Company, Inc. (TREX) Soars to 52-Week High, Time to Cash Out?
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DCOMP
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https://www.nasdaq.com/articles/trex-company-inc.-trex-soars-to-52-week-high-time-to-cash-out
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nan
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nan
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Have you been paying attention to shares of Trex (TREX)? Shares have been on the move with the stock up 21.4% over the past month. The stock hit a new 52-week high of $80.59 in the previous session. Trex has gained 89.3% since the start of the year compared to the 50.6% move for the Zacks Construction sector and the 25.9% return for the Zacks Building Products - Wood 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 30, 2023, Trex reported EPS of $0.57 versus consensus estimate of $0.49.
For the current fiscal year, Trex is expected to post earnings of $1.84 per share on $1.09 billion in revenues. This represents a 2.22% change in EPS on a -1.27% change in revenues. For the next fiscal year, the company is expected to earn $2.18 per share on $1.22 billion in revenues. This represents a year-over-year change of 18.38% and 11.41%, respectively.
Valuation Metrics
Trex 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.
Trex has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 43.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.2X. On a trailing cash flow basis, the stock currently trades at 35.9X versus its peer group's average of 8X. Additionally, the stock has a PEG ratio of 3.14. 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, Trex 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 Trex passes the test. Thus, it seems as though Trex shares could still be poised for more gains ahead.
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
Trex Company, Inc. (TREX) : 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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On a trailing cash flow basis, the stock currently trades at 35.9X versus its peer group's average of 8X. Fortunately, Trex currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. 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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In its last earnings report on October 30, 2023, Trex reported EPS of $0.57 versus consensus estimate of $0.49. In terms of its value breakdown, the stock currently trades at 43.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.2X. Click to get this free report Trex Company, Inc. (TREX) : 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). 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 Trex passes the test.
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Shares have been on the move with the stock up 21.4% over the past month. For the next fiscal year, the company is expected to earn $2.18 per share on $1.22 billion in revenues. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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92c1f6fe-3819-4e72-bddd-9cb140359d4d
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712319.0
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2023-12-12 00:00:00 UTC
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PDD Holdings Inc. (PDD) Hit a 52 Week High, Can the Run Continue?
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DCOMP
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https://www.nasdaq.com/articles/pdd-holdings-inc.-pdd-hit-a-52-week-high-can-the-run-continue
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nan
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nan
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Have you been paying attention to shares of PDD Holdings Inc. (PDD)? Shares have been on the move with the stock up 29.5% over the past month. The stock hit a new 52-week high of $149.18 in the previous session. PDD Holdings Inc. has gained 79.5% since the start of the year compared to the 24.9% move for the Zacks Retail-Wholesale sector and the 50.7% return for the Zacks Internet - Commerce 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 28, 2023, PDD Holdings Inc. reported EPS of $1.55 versus consensus estimate of $1.23 while it beat the consensus revenue estimate by 30.7%.
For the current fiscal year, PDD Holdings Inc. is expected to post earnings of $5.69 per share on $33.77 billion in revenues. This represents a 42.96% change in EPS on a 75.75% change in revenues. For the next fiscal year, the company is expected to earn $6.96 per share on $46.81 billion in revenues. This represents a year-over-year change of 22.2% and 38.64%, respectively.
Valuation Metrics
PDD Holdings Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
PDD Holdings Inc. has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 25.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 22.9X. On a trailing cash flow basis, the stock currently trades at 38.6X versus its peer group's average of 18.2X. Additionally, the stock has a PEG ratio of 0.63. 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, PDD Holdings Inc. currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if PDD Holdings Inc. fits the bill. Thus, it seems as though PDD Holdings Inc. shares could still be poised for more gains ahead.
How Does PDD Stack Up to the Competition?
Shares of PDD 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 Amazon.com, Inc. (AMZN). AMZN has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Amazon.com, Inc. beat our consensus estimate by 46.55%, and for the current fiscal year, AMZN is expected to post earnings of $3.53 per share on revenue of $570.75 billion.
Shares of Amazon.com, Inc. have gained 3.2% over the past month, and currently trade at a forward P/E of 55.18X and a P/CF of 30.68X.
The Internet - Commerce industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PDD and AMZN, even beyond their own solid fundamental situation.
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
PDD Holdings Inc. (PDD) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. Amazon.com, Inc. beat our consensus estimate by 46.55%, and for the current fiscal year, AMZN is expected to post earnings of $3.53 per share on revenue of $570.75 billion. 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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In its last earnings report on November 28, 2023, PDD Holdings Inc. reported EPS of $1.55 versus consensus estimate of $1.23 while it beat the consensus revenue estimate by 30.7%. For the current fiscal year, PDD Holdings Inc. is expected to post earnings of $5.69 per share on $33.77 billion in revenues. Click to get this free report PDD Holdings Inc. (PDD) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PDD Holdings Inc. has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if PDD Holdings Inc. fits the bill. Click to get this free report PDD Holdings Inc. (PDD) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the next fiscal year, the company is expected to earn $6.96 per share on $46.81 billion in revenues. Valuation Metrics PDD Holdings Inc. may be at a 52-week high right now, but what might the future hold for the stock? Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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006b98c2-2e14-4347-829d-9b33cd5de612
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712320.0
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2023-12-12 00:00:00 UTC
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Is the Options Market Predicting a Spike in Atlas Energy (AESI) Stock?
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DCOMP
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-atlas-energy-aesi-stock
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nan
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nan
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Investors in Atlas Energy Solutions Inc. AESI need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $5 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 Atlas Energy shares, but what is the fundamental picture for the company? Currently, Atlas Energy is a Zacks Rank #4 (Sell) in the Oil and Gas - Integrated - United States industry that ranks in the Bottom 27% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 67 cents per share to 56 cents in that period.
Given the way analysts feel about Atlas 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 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
Atlas Energy Solutions Inc. (AESI) : 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 in Atlas Energy Solutions Inc. AESI need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Atlas Energy Solutions Inc. (AESI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Atlas 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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Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. Given the way analysts feel about Atlas Energy right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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fa6aba0e-e03f-45a9-afd4-f37c86b1f14a
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712321.0
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2023-12-12 00:00:00 UTC
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Royal Caribbean Cruises Ltd. (RCL) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/royal-caribbean-cruises-ltd.-rcl-hits-fresh-high%3A-is-there-still-room-to-run
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nan
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nan
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Have you been paying attention to shares of Royal Caribbean (RCL)? Shares have been on the move with the stock up 17.1% over the past month. The stock hit a new 52-week high of $123.25 in the previous session. Royal Caribbean has gained 145.6% since the start of the year compared to the 18.1% move for the Zacks Consumer Discretionary sector and the 24.2% return for the Zacks Leisure and Recreation 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 October 26, 2023, Royal Caribbean reported EPS of $3.85 versus consensus estimate of $3.43.
For the current fiscal year, Royal Caribbean is expected to post earnings of $6.59 per share on $13.94 billion in revenues. This represents a 187.87% change in EPS on a 57.7% change in revenues. For the next fiscal year, the company is expected to earn $9.10 per share on $15.85 billion in revenues. This represents a year-over-year change of 38.09% and 13.68%, respectively.
Valuation Metrics
Royal Caribbean 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.
Royal Caribbean has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 10.7X. 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, Royal Caribbean currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Royal Caribbean passes the test. Thus, it seems as though Royal Caribbean shares could still be poised for more gains ahead.
How Does RCL Stack Up to the Competition?
Shares of RCL 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 Cedar Fair, L.P. (FUN). FUN has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Cedar Fair, L.P. beat our consensus estimate by 13.78%, and for the current fiscal year, FUN is expected to post earnings of $3.57 per share on revenue of $1.79 billion.
Shares of Cedar Fair, L.P. have gained 4.1% over the past month, and currently trade at a forward P/E of 13.65X and a P/CF of 6.42X.
The Leisure and Recreation Services industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RCL and FUN, even beyond their own solid fundamental situation.
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
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Cedar Fair, L.P. (FUN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the current fiscal year, Royal Caribbean is expected to post earnings of $6.59 per share on $13.94 billion in revenues. Cedar Fair, L.P. beat our consensus estimate by 13.78%, and for the current fiscal year, FUN is expected to post earnings of $3.57 per share on revenue of $1.79 billion. 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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For the current fiscal year, Royal Caribbean is expected to post earnings of $6.59 per share on $13.94 billion in revenues. In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23X. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Cedar Fair, L.P. (FUN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Royal Caribbean has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Royal Caribbean passes the test. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Cedar Fair, L.P. (FUN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the next fiscal year, the company is expected to earn $9.10 per share on $15.85 billion in revenues. Fortunately, Royal Caribbean currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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144f7aac-116d-4ede-abe8-eafb72c2533e
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712322.0
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2023-12-12 00:00:00 UTC
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Shift4 Payments, Inc. (FOUR) Soars to 52-Week High, Time to Cash Out?
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DCOMP
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https://www.nasdaq.com/articles/shift4-payments-inc.-four-soars-to-52-week-high-time-to-cash-out
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nan
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nan
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Shares of Shift4 Payments (FOUR) have been strong performers lately, with the stock up 10.1% over the past month. The stock hit a new 52-week high of $76.51 in the previous session. Shift4 Payments has gained 26.6% since the start of the year compared to the 21.1% move for the Zacks Business Services sector and the 20.6% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 8, 2023, Shift4 Payments reported EPS of $0.82 versus consensus estimate of $0.7 while it missed the consensus revenue estimate by 2.88%.
For the current fiscal year, Shift4 Payments is expected to post earnings of $2.92 per share on $951.51 million in revenues. This represents a 110.07% change in EPS on a 30.79% change in revenues. For the next fiscal year, the company is expected to earn $3.81 per share on $1.3 billion in revenues. This represents a year-over-year change of 30.42% and 36.89%, respectively.
Valuation Metrics
Shift4 Payments 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.
Shift4 Payments has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.2X. On a trailing cash flow basis, the stock currently trades at 27.9X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 0.47. 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, Shift4 Payments 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 Shift4 Payments fits the bill. Thus, it seems as though Shift4 Payments shares could still be poised for more gains ahead.
How Does FOUR Stack Up to the Competition?
Shares of FOUR 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 OppFi Inc. (OPFI). OPFI has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. OppFi Inc. beat our consensus estimate by 300%, and for the current fiscal year, OPFI is expected to post earnings of $0.71 per share on revenue of $509.52 million.
Shares of OppFi Inc. have gained 44.4% over the past month, and currently trade at a forward P/E of 9.21X and a P/CF of 22.66X.
The Financial Transaction Services industry may rank in the bottom 53% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for FOUR and OPFI, even beyond their own solid fundamental situation.
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
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
OppFi Inc. (OPFI) : 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, Shift4 Payments currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts. OppFi Inc. beat our consensus estimate by 300%, and for the current fiscal year, OPFI is expected to post earnings of $0.71 per share on revenue of $509.52 million. 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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In its last earnings report on November 8, 2023, Shift4 Payments reported EPS of $0.82 versus consensus estimate of $0.7 while it missed the consensus revenue estimate by 2.88%. In terms of its value breakdown, the stock currently trades at 24.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.2X. Click to get this free report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report OppFi Inc. (OPFI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. OPFI has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D. Earnings were strong last quarter. Click to get this free report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report OppFi Inc. (OPFI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the next fiscal year, the company is expected to earn $3.81 per share on $1.3 billion in revenues. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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609035fc-b559-4329-8fe8-383553db9f77
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712323.0
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2023-12-12 00:00:00 UTC
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Zacks Industry Outlook Highlights InterDigital, Viasat and Aviat Networks
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-interdigital-viasat-and-aviat-networks
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For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Equity Research discusses InterDigital, Inc. IDCC, Viasat Inc. VSAT and Aviat Networks, Inc. AVNW.
Industry: Wireless
Link: https://www.zacks.com/commentary/2197860/3-wireless-stocks-likely-to-profit-from-positive-sector-vibes
The Zacks Wireless Equipment industry is poised to capitalize on the healthy demand trends driven by fast-track 5G deployment and transition to cloud and fiber network infrastructure upgrade. However, large-scale investments for seamless 5G evolution, margin erosion due to price wars, higher customer inventory levels and inflated raw material costs in a challenging macroeconomic environment, geopolitical conflicts and uncertain business conditions might erode profitability.
Nevertheless, InterDigital, Inc., Viasat Inc. and Aviat Networks, Inc. are likely to profit from solid growth dynamics owing to vast proliferation of IoT, continued fiber densification and a gradual shift to cloud services.
Industry Description
The Zacks Wireless Equipment industry primarily comprises companies providing various networking solutions, wireless telecom products and related services for wireless voice and data communications through scalable modular platforms. Their product portfolio encompasses integrated circuit devices (chips) and system software for wireless voice and data communications, analog and digital two-way radio, satellite telecommunications, wireless networking and signal processing and end-to-end enterprise mobility solutions.
The firms also provide a broad range of routing, switching and security products, video surveillance and machine-to-machine communication components that secure VPN appliances, enable intrusion detection and thwart data theft. Some firms even provide electronic warfare, avionics, robotics, advanced communications and maritime systems to the defense industry.
What's Shaping the Future of the Wireless Equipment Industry?
Cloud Networking at Core: The majority of the industry participants offer mission-critical communication infrastructure, devices, accessories, software and services that enable its customers to run businesses with increased efficiency and safety for their mobile workforce. These systems drive demand for additional device sales, software upgrades, infrastructure overhaul and expansion, as well as additional services to maintain, monitor and manage these complex networks and solutions.
The comprehensive suite of services ensures continuity and reduces risks for constant critical communication operations. The wide proliferation of cloud networking solutions is further resulting in increased storage and computing on a virtual plane. As both consumers and enterprises use the network, there is tremendous demand for quality networking equipment.
Short-Term Profitability Compromised:Although higher infrastructure investments will eventually help minimize service delivery costs to support broadband competition and wireless densification, short-term profitability has largely been compromised. Margins are likely to be affected by the high cost of first-generation 5G products, profitability challenges in China, the prolonged Russia-Ukraine war and the Israel-Hamas conflict.
Uncertainty regarding chip shortage (albeit at a lesser extent) and supply-chain disruptions leading to a dearth of essential fiber materials, shipping delays and shortages of other raw materials due to geopolitical unrest are expected to affect the expansion and rollout of new broadband networks. Extended lead times for basic components are also likely to hurt the delivery schedule and escalate production costs. High customer inventory levels, owing to a challenging macroeconomic environment and intense market volatility, pose another headwind for the companies.
Fiber Densification:With the exponential growth of mobile broadband traffic and home Internet solutions, demand for advanced networking architecture has increased manifold. This has forced service providers to spend more on routers and switches to upgrade their networks and support the surge in home data traffic. To maintain superior performance standards, there is a continuous need for network tuning and optimization, which creates demand for state-of-the-art wireless products and services.
Moreover, a faster pace of 5G deployment is expected to augment the telecommunications industry's scalability, security and universal mobility and propel the wide proliferation of IoT. Expansion of fiber optic networks by carriers to support their 4G LTE and 5G wireless standards, as well as wireline connections, are likely to act as tailwinds. The fiber-optic cable network is vital for backhaul and the last mile local loop, which are required by wireless service providers for 5G deployment.
Fiber networks are also essential for the growing deployment of small cells that bring the network closer to the user and supplement macro networks to provide extensive coverage. The industry participants are facilitating its customers to move away from an economy-of-scale network operating model to demand-driven operations and seamlessly migrate to 5G by offering easy programmability and flexible automation through steady infrastructure investments.
Zacks Industry Rank Indicates Bullish Trends
The Zacks Wireless Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #83, which places it in the top 33% of more than 250 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few wireless equipment stocks that are well-positioned to outperform the market based on a strong earnings outlook, let's take a look at the industry's recent stock-market performance and valuation picture.
Industry Lags S&P 500, Sector
The Zacks Wireless Equipment industry has lagged the S&P 500 composite and the broader Zacks Computer and Technology sector over the past year.
The industry has jumped 4.3% over this period compared with the S&P 500 and sector's growth of 19.7% and 43.3%, respectively.
Industry's Current Valuation
On the basis of trailing 12-month Enterprise Value-to-EBITDA (EV/EBITDA), which is the most appropriate multiple for valuing telecom stocks, the industry is currently trading at 25.16X compared with the S&P 500's 13.43X. It is also trading above the sector's trailing 12-month EV/EBITDA of 12.81X.
Over the past five years, the industry has traded as high as 37.26X and as low as 11.87X and at the median of 21.02X.
3 Wireless Equipment Stocks to Keep a Close Eye On
InterDigital: Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages 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. The stock has a long-term earnings growth expectation of 17.4% and has surged 121.1% over the past year.
A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for the company. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
The Zacks Consensus Estimates for the current fiscal and next fiscal earnings have been revised 238.8% and 104.5% upward, respectively, over the past year. InterDigital sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Viasat: Headquartered in Carlsbad, CA, Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It serves high-bandwidth, high-performance communication solutions to the public as well as military, enterprises and government enterprises. Viasat's impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.
The company is ramping up investments in the development of a revolutionary ViaSat-3 broadband communications platform, which will boast nearly 10 times the bandwidth capacity of ViaSat-2. The ViaSat-3 platform will help to form a global broadband network with an affordable, high-quality, high-speed Internet and video streaming service.
The Zacks Consensus Estimate for the current and next fiscal earnings has been revised 78.6% and 311.5% upward, respectively, over the past year. This Zacks Rank #2 (Buy) stock has a long-term earnings growth expectation of 15.8%.
Aviat: Headquartered in Austin, TX, Aviat has been a global provider of microwave networking solutions. It offers public and private operators communications networks to cater to the accretive demand for IP-centric, multi-gigabit data services. Backed by avant-garde technology, Aviat simplifies the entire lifecycle of designing, deploying and maintaining wireless transport networks with greater performance and reliability.
The company is well-positioned to benefit from robust market dynamics, cost-reduction efforts, favorable customer mix and higher investments in innovative software solutions. A solid liquidity position and healthy balance sheet are likely to aid the company in executing key long-term strategic objectives. It has a VGM Score of B. This Zacks Rank #2 stock has gained 4.9% in the past year. The Zacks Consensus Estimate for the current fiscal earnings has been revised 10.1% upward since December 2022.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Viasat Inc. (VSAT) : Free Stock Analysis Report
Aviat Networks, Inc. (AVNW) : 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, large-scale investments for seamless 5G evolution, margin erosion due to price wars, higher customer inventory levels and inflated raw material costs in a challenging macroeconomic environment, geopolitical conflicts and uncertain business conditions might erode profitability. Nevertheless, InterDigital, Inc., Viasat Inc. and Aviat Networks, Inc. are likely to profit from solid growth dynamics owing to vast proliferation of IoT, continued fiber densification and a gradual shift to cloud services. Cloud Networking at Core: The majority of the industry participants offer mission-critical communication infrastructure, devices, accessories, software and services that enable its customers to run businesses with increased efficiency and safety for their mobile workforce.
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Industry Description The Zacks Wireless Equipment industry primarily comprises companies providing various networking solutions, wireless telecom products and related services for wireless voice and data communications through scalable modular platforms. Their product portfolio encompasses integrated circuit devices (chips) and system software for wireless voice and data communications, analog and digital two-way radio, satellite telecommunications, wireless networking and signal processing and end-to-end enterprise mobility solutions. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Viasat Inc. (VSAT) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Industry Description The Zacks Wireless Equipment industry primarily comprises companies providing various networking solutions, wireless telecom products and related services for wireless voice and data communications through scalable modular platforms. Zacks Industry Rank Indicates Bullish Trends The Zacks Wireless Equipment industry is housed within the broader Zacks Computer and Technology sector. Industry Lags S&P 500, Sector The Zacks Wireless Equipment industry has lagged the S&P 500 composite and the broader Zacks Computer and Technology sector over the past year.
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Industry Description The Zacks Wireless Equipment industry primarily comprises companies providing various networking solutions, wireless telecom products and related services for wireless voice and data communications through scalable modular platforms. This Zacks Rank #2 stock has gained 4.9% in the past year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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c1ea4b75-4530-4012-8ee8-9d6119b88ad5
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712324.0
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2023-12-12 00:00:00 UTC
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Live Oak Bancshares (LOB) Moves 10.9% Higher: Will This Strength Last?
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DCOMP
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https://www.nasdaq.com/articles/live-oak-bancshares-lob-moves-10.9-higher%3A-will-this-strength-last
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Live Oak Bancshares (LOB) shares rallied 10.9% in the last trading session to close at $43.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.6% gain over the past four weeks.
Shares of Live Oak Bancshares rallied for the third consecutive day and touched a 52-week high of $44.32. The Federal Reserve has signaled end of the current rate cycle and kept the interest rates unchanged at 22-year high of 5.25-5.5% at the end of two-day FOMC meeting. The central bank also indicated three interest rate cuts by 2024-end.
These developments turned investor sentiments bullish on bank stocks as high funding costs being faced by the industry players will somewhat come down next year. This will support net interest income and margin growth. Hence, the LOB stock moved higher.
This bank holding company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +1275%. Revenues are expected to be $119.63 million, up 14% 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 Live Oak Bancshares, 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 LOB 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 >>>>
Live Oak Bancshares belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, Investar (ISTR), closed the last trading session 9.1% higher at $14.12. Over the past month, ISTR has returned 24.8%.
Investar's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. Compared to the company's year-ago EPS, this represents a change of -58.1%. Investar currently boasts 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 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
Live Oak Bancshares, Inc. (LOB) : Free Stock Analysis Report
Investar Holding Corporation (ISTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These developments turned investor sentiments bullish on bank stocks as high funding costs being faced by the industry players will somewhat come down next year. This bank holding company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +1275%. 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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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Live Oak Bancshares belongs to the Zacks Banks - Southeast industry. Investar's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. Click to get this free report Live Oak Bancshares, Inc. (LOB) : Free Stock Analysis Report Investar Holding Corporation (ISTR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Live Oak Bancshares belongs to the Zacks Banks - Southeast industry. Click to get this free report Live Oak Bancshares, Inc. (LOB) : Free Stock Analysis Report Investar Holding Corporation (ISTR) : 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 >>>> Live Oak Bancshares belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, Investar (ISTR), closed the last trading session 9.1% higher at $14.12. Compared to the company's year-ago EPS, this represents a change of -58.1%.
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c36f0497-c473-400e-9b51-754d9107151a
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712325.0
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2023-12-12 00:00:00 UTC
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Stock Market News for Dec 15, 2023
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https://www.nasdaq.com/articles/stock-market-news-for-dec-15-2023
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Wall Street closed higher on Thursday buoyed by multi-interest rate cut indication given by the Fed in its December FOMC meeting. Moreover, several strong economic data of November eliminated the fear of a recession in 2024 thereby boosting the possibility of a soft landing of the U.S. economy. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.4% or 158.11 points to close at 37,248.35, marking its highest closing historically. In intraday trading, the blue-chip index recorded its historical high of 37,287.50. Notably, 16 components of the 30-stock index ended in positive territory, while 14 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 14,761.56, rising 0.2% due to strong performance of large-cap technology stocks. The major gainer of the tech-laden index was Lucid Group Inc. LCID. The stock price of the company soared 14.5%. Lucid Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 gained 0.3% to finish at 4,719.55. Seven out of 11 broad sectors of the benchmark ended in positive territory while four in negative zone. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) rose 2.9%, 2.7% and 1.8%, respectively, while the Consumer Staples Select Sector SPDR (XLC) tumbled 1.5%.
The fear-gauge CBOE Volatility Index (VIX) was up 2.4% to 12.48. A total of 17.1 billion shares were traded on Thursday, higher than the last 20-session average of 11.1 billion. Advancers outnumbered decliners on the NYSE by a 1.9-to-1 ratio. On Nasdaq, a 1.5-to-1 ratio favored advancing issues.
Fed Keeps Policy Rate Unchanged
Stocks rallied on previous two days after the Federal Reserve kept its benchmark policy rate steady at in the range of 5.25-5.5%. Market participants were hopeful that the Fed would keep the interest rate unchanged in its December FOMC meeting although it has earlier hinted at another 25-basis point rate hike this year.
However, cooling inflation over the past year raised hopes that the Fed could soon end its monetary tightening campaign. The Fed’s decision was widely expected but more importantly, the central bank hinted at multiple rate cuts in 2024.
The Fed hinted at three 25 basis point rate cuts in 2024, higher than its earlier projection of two. Although the Federal Reserve didn’t give an exact time when it plans to start its rate cuts, the indication was enough to send stocks on a rally.
Fed Reserve Chairman Jerome Powell said at a press conference that he believes that the policy rate is now at its peak or at least near it. He also said that the central bank will closely watch inflation data and will try not to keep interest rates higher for a longer period. The Fed now expects its policy rate at 4.6% by the end of 2024, a lot lower than the earlier forecast of 5.1%.
Economic Data
The Department of Commerce reported that retail sales grew 0.3% in November, beating the consensus estimate of 0.1%. The metric for October was revised downward to a decline of 0.2% from a drop of 0.1% reported earlier. Year over year, retail sales climb 4.1% in November.
The core retail (excluding auto) sales grew 0.2% in November, in line with the consensus estimate. The metric for October was revised upward to a break-even from a drop of 0.1% reported earlier. Excluding auto and gas, retail sales grew 0.6% in November.
The Department of Labor reported that weekly jobless claims decreased by 19,000 to 202,000 for the week ended Dec 9, lower-than the consensus estimate of 220,000. Previous week’s data was revised upward to 221,000 from 220,000 reported earlier. Continuing claims — people who already received government unemployment benefit and run a week behind the headline number — came in at 1.876 million for the week ended Dec 2, an increase of 20,000 from the previous week.
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
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.
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Wall Street closed higher on Thursday buoyed by multi-interest rate cut indication given by the Fed in its December FOMC meeting. Moreover, several strong economic data of November eliminated the fear of a recession in 2024 thereby boosting the possibility of a soft landing of the U.S. economy. Although the Federal Reserve didn’t give an exact time when it plans to start its rate cuts, the indication was enough to send stocks on a rally.
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Fed Keeps Policy Rate Unchanged Stocks rallied on previous two days after the Federal Reserve kept its benchmark policy rate steady at in the range of 5.25-5.5%. Market participants were hopeful that the Fed would keep the interest rate unchanged in its December FOMC meeting although it has earlier hinted at another 25-basis point rate hike this year. Click to get this free report Lucid Group, Inc. (LCID) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Fed Keeps Policy Rate Unchanged Stocks rallied on previous two days after the Federal Reserve kept its benchmark policy rate steady at in the range of 5.25-5.5%. Market participants were hopeful that the Fed would keep the interest rate unchanged in its December FOMC meeting although it has earlier hinted at another 25-basis point rate hike this year. Click to get this free report Lucid Group, Inc. (LCID) : Free Stock Analysis Report To read this article on Zacks.com click here.
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All three major stock indexes ended in positive territory. Fed Keeps Policy Rate Unchanged Stocks rallied on previous two days after the Federal Reserve kept its benchmark policy rate steady at in the range of 5.25-5.5%. Economic Data The Department of Commerce reported that retail sales grew 0.3% in November, beating the consensus estimate of 0.1%.
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712326.0
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2023-12-12 00:00:00 UTC
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UK firm Pearson's top investor calls for US listing switch - Bloomberg News
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https://www.nasdaq.com/articles/uk-firm-pearsons-top-investor-calls-for-us-listing-switch-bloomberg-news
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Adds Pearson response in paragraph 4
Dec 15 (Reuters) - Pearson's PSON.L largest investor has said the education firm should switch its listing to the United States to improve shareholder value, Bloomberg News reported on Friday, putting London at risk of losing another major company from its bourses.
Activist Cevian Capital AB, which earlier this year pressured Dublin-based building materials group CRH CRH.N to move its primary listing from London to New York, said it had singled out the FTSE 100 constituent as the next company in its portfolio well suited for a move across the Atlantic, the report said.
"Pearson is a U.S. company with the majority of sales and executives there. It's only due to historical reasons it is still listed in the UK," Christer Gardell, managing partner and founder of Cevian Capital told Bloomberg in an interview.
In an emailed response to Reuters, Pearson said, "we are proud of our London listing". The company said it also has an ADR listing in the U.S.
Cevian did not immediately respond to a Reuters request for comment. Cevian owns 12.16% stake in Pearson, according to LSEG data.
If Pearson switches its listing to the U.S., the FTSE 100 firm will join the growing list of companies leaving London this year, fuelling fears that the city is rapidly losing its appeal.
Among the blockbuster names, British chip designer Arm Holdings ARM.O made its Nasdaq debut in September, preferring the U.S. financial hub of New York over a return to the London stock market.
Meanwhile, a host of British companies, such as energy infrastructure company Smart Metering Systems SMSS.L and tech firm Sopheon SPHN.L, are delisting following deals with private equity players. Last week, Smart Metering said U.S. fund KKR KKR.N will take it private in a 1.3-billion-pound deal.
Britain's struggle to attract IPOs and retain listed companies stems partly from London-listed groups being valued lower than those in the United States, investment bankers have said.
($1 = 0.7827 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Pooja Desai)
((abyjose.koilparambil@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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It's only due to historical reasons it is still listed in the UK," Christer Gardell, managing partner and founder of Cevian Capital told Bloomberg in an interview. Among the blockbuster names, British chip designer Arm Holdings ARM.O made its Nasdaq debut in September, preferring the U.S. financial hub of New York over a return to the London stock market. Britain's struggle to attract IPOs and retain listed companies stems partly from London-listed groups being valued lower than those in the United States, investment bankers have said.
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Adds Pearson response in paragraph 4 Dec 15 (Reuters) - Pearson's PSON.L largest investor has said the education firm should switch its listing to the United States to improve shareholder value, Bloomberg News reported on Friday, putting London at risk of losing another major company from its bourses. If Pearson switches its listing to the U.S., the FTSE 100 firm will join the growing list of companies leaving London this year, fuelling fears that the city is rapidly losing its appeal. Meanwhile, a host of British companies, such as energy infrastructure company Smart Metering Systems SMSS.L and tech firm Sopheon SPHN.L, are delisting following deals with private equity players.
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Adds Pearson response in paragraph 4 Dec 15 (Reuters) - Pearson's PSON.L largest investor has said the education firm should switch its listing to the United States to improve shareholder value, Bloomberg News reported on Friday, putting London at risk of losing another major company from its bourses. Activist Cevian Capital AB, which earlier this year pressured Dublin-based building materials group CRH CRH.N to move its primary listing from London to New York, said it had singled out the FTSE 100 constituent as the next company in its portfolio well suited for a move across the Atlantic, the report said. If Pearson switches its listing to the U.S., the FTSE 100 firm will join the growing list of companies leaving London this year, fuelling fears that the city is rapidly losing its appeal.
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Adds Pearson response in paragraph 4 Dec 15 (Reuters) - Pearson's PSON.L largest investor has said the education firm should switch its listing to the United States to improve shareholder value, Bloomberg News reported on Friday, putting London at risk of losing another major company from its bourses. In an emailed response to Reuters, Pearson said, "we are proud of our London listing". If Pearson switches its listing to the U.S., the FTSE 100 firm will join the growing list of companies leaving London this year, fuelling fears that the city is rapidly losing its appeal.
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510f7d9d-8d67-4a0a-ad2c-7e4241470803
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712327.0
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2023-12-12 00:00:00 UTC
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Here's Why You Should Retain CONMED (CNMD) Stock for Now
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https://www.nasdaq.com/articles/heres-why-you-should-retain-conmed-cnmd-stock-for-now-6
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CONMED Corporation (CNMD) is well poised for growth in the coming quarters, courtesy of its broad product spectrum. The optimism, led by the solid third-quarter 2023 performance and a potential General Surgery, is expected to contribute further. However, headwinds from supply-chain constraints and data security threats persist.
This currently Zacks Rank #3 (Hold) company’s shares have risen 29.6% year to date compared with the industry’s 10.7% growth. The S&P 500 Index has increased 23.1% during the same time frame.
CONMED, the renowned global medical products manufacturer specializing in surgical instruments and devices, has a market capitalization of $3.42 billion. The company projects 28.5% growth over the next five years and expects to maintain its strong performance going forward.
Image Source: Zacks Investment Research
Its earnings surpassed estimates in three of the trailing four quarters and missed the same once, delivering a negative average surprise of 7.84%.
Let’s delve deeper.
Potential in General Surgery: The segment consists of a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, a line of cardiac monitoring products, as well as electrosurgical generators and related instruments.
CONMED’s unique products and solutions within the General Surgery segment have been providing a competitive edge in the MedTech space. One of these products, the Anchor Tissue Retrieval bag, deserves a special mention. It is one of the major platforms in the company’s specimen bag portfolio.
Broad Product Spectrum: CONMED offers a broad line of surgical products, including several new devices in the Orthopedic, Laparoscopic, Robotic, Open Surgery, Gastroenterology, Pulmonary and Cardiology sections.
Products like the Hi-Fi Tape and Hi-Fi suture interface are critical components of repair security in the rotator cuff repair space. During the third quarter, CNMD remained focused on the introduction of a delivery system for MIS rotator cuff repair.
Other notable offerings are the MicroFree platform in Orthopedics, the TruShot, the Y-Knot Pro and the CRYSTALVIEW Pump. The Anchor Tissue Retrieval bag is a unique product under the General Surgery arm.
Solid Recurring Revenue Base: Approximately 80% of CONMED’s revenues are recurring, derived from the sale of disposable single-use products. The remaining 20% comes from sales of capital equipment (such as powered drills and saws for surgery, electrosurgical generators, video-imaging cameras, fluid control systems and surgical hand-pieces). This, in turn, creates demand for complementary single-use items.
Hospitals and clinics are expanding the use of single-use, disposable products. This endeavor is aimed at reducing expenses related to sterilizing surgical instruments and products following surgery.
CONMED’s revenues totaled $304.6 million in third-quarter 2023, up 10.7% year over year. Additional sales from newly acquired businesses contributed approximately 40 basis points of growth.
Downsides
Regulatory Requirements: Substantially, all CONMED products are classified as class II medical devices, subject to regulations from numerous agencies and legislative bodies worldwide. As a manufacturer of medical devices, the company’s manufacturing processes and facilities are subject to on-site inspection and constant review by the FDA for compliance with the Quality System Regulations.
Supply Constraints and FX Impact: Although CONMED recorded strong growth across all segments in the third quarter, the legacy orthopedic business was hurt by supply-chain constraints. The supply disruption continues to pose a headwind for the company during the fourth quarter of 2023.
CNMD expects supply-chain issues to improve from the first quarter of 2024. Moreover, revenues were hurt by unfavorable currency movement during the third quarter. The company continues to expect foreign exchange to have an unfavorable impact on its top-line growth by 150-200 basis points in 2023. Currency rates are expected to negatively impact earnings by 20-25 cents per share.
Estimate Trend
CONMED is witnessing a positive estimate revision trend for 2023. In the past 60 days, the Zacks Consensus Estimate for earnings has improved from $3.47 per share to $3.50.
The same for the company’s fourth-quarter revenues is pegged at $332.94 million, indicating a 32.7% improvement from the year-ago quarter’s reported number. The bottom-line estimate for the fourth quarter is expected to improve 164.3% from the year-ago period’s level of $1.11.
CONMED Corporation Price
CONMED Corporation price | CONMED 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.
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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CONMED Corporation (CNMD) : 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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The remaining 20% comes from sales of capital equipment (such as powered drills and saws for surgery, electrosurgical generators, video-imaging cameras, fluid control systems and surgical hand-pieces). Downsides Regulatory Requirements: Substantially, all CONMED products are classified as class II medical devices, subject to regulations from numerous agencies and legislative bodies worldwide. 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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Broad Product Spectrum: CONMED offers a broad line of surgical products, including several new devices in the Orthopedic, Laparoscopic, Robotic, Open Surgery, Gastroenterology, Pulmonary and Cardiology sections. CONMED Corporation Price CONMED Corporation price | CONMED 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 CONMED Corporation (CNMD) : 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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Image Source: Zacks Investment Research Its earnings surpassed estimates in three of the trailing four quarters and missed the same once, delivering a negative average surprise of 7.84%. CONMED Corporation Price CONMED Corporation price | CONMED 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 CONMED Corporation (CNMD) : 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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CONMED, the renowned global medical products manufacturer specializing in surgical instruments and devices, has a market capitalization of $3.42 billion. Image Source: Zacks Investment Research Its earnings surpassed estimates in three of the trailing four quarters and missed the same once, delivering a negative average surprise of 7.84%. In the past 60 days, the Zacks Consensus Estimate for earnings has improved from $3.47 per share to $3.50.
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712328.0
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2023-12-12 00:00:00 UTC
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Salesforce (CRM) Boosts AI Offerings With Einstein 1 Upgrades
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https://www.nasdaq.com/articles/salesforce-crm-boosts-ai-offerings-with-einstein-1-upgrades
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Salesforce, Inc. CRM has unveiled groundbreaking upgrades to its Einstein 1 Platform, introducing two game-changing features — the Data Cloud Vector Database and Einstein Copilot Search. These innovations mark a significant leap in harnessing the power of enterprise data for unparalleled artificial intelligence (AI)-driven insights.
Shares of Salesforce have outperformed the industry in the year-to-date (YTD) period. CRM’s shares have rallied 94% YTD compared with the Zacks Computer – Software industry’s 55.4% growth.
What the Upgrade Brings to Einstein 1
The Data Cloud Vector Database resolves the challenge of refining large language models (LLMs) by seamlessly integrating all forms of enterprise data into AI prompts. This breakthrough empowers customers to deploy reliable, relevant generative AI across Salesforce applications without the complexities of fine-tuning off-the-shelf LLMs.
Salesforce Inc. Price and Consensus
Salesforce Inc. price-consensus-chart | Salesforce Inc. Quote
Integrated into the Einstein 1 Platform, the Data Cloud Vector Database enables AI, automation and analytics, amplifying decision-making and customer insights across every Salesforce CRM application. The database also fuels Einstein Copilot Search, enhancing Salesforce's AI assistant with dynamic search capabilities that leverage structured and unstructured business data, delivering precise information directly within the workflow.
This innovation's core capabilities are exemplary. By unifying varied data types like PDFs, emails and purchase histories, it aligns unstructured and structured data for increased business value. For instance, service leaders can significantly enhance customer satisfaction by leveraging a platform that presents relevant knowledge articles to service agents instantly, reducing case resolution time and improving overall customer experience.
Furthermore, Einstein Copilot Search, set for release in February, expands the AI assistant's capabilities by interpreting complex queries using real-time insights from diverse data sources. This feature unlocks new possibilities, enabling sales, marketing and service teams to access valuable insights (previously inaccessible) with conventional language models.
This currently Zacks Rank #3 (Hold) company’s focus on addressing the data accessibility challenge resonates strongly. With 90% of enterprise data existing in unstructured formats and anticipated to double by 2024, the urgency to effectively leverage such data is paramount. These advancements promise to revolutionize overall customer experience and drive innovation in a data-driven ecosystem.
GenAI to Drive Growth for Salesforce
Salesforce is currently focusing on incorporating generative AI tools across its products as it looks to keep its business ahead of rivals. The company forayed into the generative AI space with the launch of Einstein GPT in March 2023.
In June 2023, CRM launched its AI Cloud service, which is the company’s one-stop AI-powered solution for enterprises looking to enhance productivity. In March 2023, CRM raised its venture capital fund for generative AI to $500 million from $250 million. Moreover, in September 2023, Salesforce announced that it entered into a definitive agreement to acquire Airkit.ai, a startup that develops AI-powered customer service applications.
The latest pilot launches of Data Cloud Vector Database and Einstein Copilot Search in February 2024, herald a new era of AI-driven intelligence, reshaping the way businesses leverage data for enhanced productivity, innovation and customer-centric strategies.
Stocks to Consider
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up 11 cents to 44 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 55.7% to 95 cents per share in the past 60 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 70.7% year to date (YTD).
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 1.2% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 64.1% YTD.
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
Intel Corporation (INTC) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : 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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Furthermore, Einstein Copilot Search, set for release in February, expands the AI assistant's capabilities by interpreting complex queries using real-time insights from diverse data sources. This feature unlocks new possibilities, enabling sales, marketing and service teams to access valuable insights (previously inaccessible) with conventional language models. 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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The database also fuels Einstein Copilot Search, enhancing Salesforce's AI assistant with dynamic search capabilities that leverage structured and unstructured business data, delivering precise information directly within the workflow. The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Salesforce Inc. Price and Consensus Salesforce Inc. price-consensus-chart | Salesforce Inc. Quote Integrated into the Einstein 1 Platform, the Data Cloud Vector Database enables AI, automation and analytics, amplifying decision-making and customer insights across every Salesforce CRM application. The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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What the Upgrade Brings to Einstein 1 The Data Cloud Vector Database resolves the challenge of refining large language models (LLMs) by seamlessly integrating all forms of enterprise data into AI prompts. The database also fuels Einstein Copilot Search, enhancing Salesforce's AI assistant with dynamic search capabilities that leverage structured and unstructured business data, delivering precise information directly within the workflow. The latest pilot launches of Data Cloud Vector Database and Einstein Copilot Search in February 2024, herald a new era of AI-driven intelligence, reshaping the way businesses leverage data for enhanced productivity, innovation and customer-centric strategies.
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90ba57c5-37d9-4fb4-a73a-b30c0fce8a36
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712329.0
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2023-12-12 00:00:00 UTC
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Why Broadcom Rallied This Week
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https://www.nasdaq.com/articles/why-broadcom-rallied-this-week
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Shares of Broadcom (NASDAQ: AVGO) rallied 17.2% this week through Thursday trading, according to data from S&P Global Market Intelligence.
The semiconductor giant, which just closed on a transformative acquisition of software giant VMware at the end of November, reported its fiscal fourth-quarter earnings last week.
Apparently, analysts liked what they heard, and raised their price targets on the stock accordingly.
AI tailwinds and a massive lift from VMware
On Monday, Citi analyst Christopher Danely raised his price target on Broadcom to $1,100, giving the company a buy rating. This might seem strange as Broadcom has already exceeded that price target, but at the beginning of this week, the stock was only trading around $950.
While many stocks did well this week in the wake of the Federal Reserve's Wednesday meeting and outlook for interest rate cuts next year, Broadcom's rally started right away on Monday in the wake of this analyst note.
So, it appears Danely's thesis resonated. That thesis includes a robust outlook for artificial intelligence (AI) networking chips, which Danely believes will double for Broadcom in 2024 from $4 billion to $8 billion in revenue. Danely is also bullish on the VMware acquisition, which closed Nov. 22. In fact, Danely quantifies his earnings expectations for that asset. Danely believes VMware could add $12.50 to Broadcom's earnings per share in the coming year. For reference, Broadcom just printed $42.25 in adjusted (non-GAAP) earnings per share (EPS) in fiscal 2023, so the incremental contribution from VMware would be about 30% in that scenario.
How can VMware generate such profitability when VMware didn't generate much profit prior to the acquisition? Well, Broadcom has embarked on a rather aggressive round of layoffs since closing the deal in November. While the ultimate number isn't yet known, according to Worker Adjustment and Retraining Notification (WARN) notices filed with several states, it appears at least 2,837 layoffs are coming, and likely more over time. On the conference call with analysts last week, CEO Hock Tan said the plan is to refocus VMware on its core hybrid and private cloud software business, while divesting noncore assets.
This is of course unfortunate news for employees, but it's also likely VMware wasn't running very efficiently in recent years. Moreover, Broadcom has a history of successful acquisitions, with a formula that usually includes cutting excess corporate overhead, folding the company into Broadcom's existing structure, and then reinvesting in focused growth.
The enthusiasm extended to Tuesday, when Bank of America analyst Vivek Arya also gave Broadcom a buy rating while increasing his price target to $1,250 from $1,200. His analysis was along the same lines as Citi's. And both analysts put out a rough earnings target of $60 in EPS next year, which would put Broadcom's valuation a tad over 18 times 2024 earnings today.
Broadcom has a big AI opportunity
Given increased intensity on networking that will be needed in AI data centers, Broadcom appears to have strong growth ahead, at least in its data center infrastructure business. But even that may be enough to justify today's valuation.
After all, a doubling of the company's networking revenue alone, or an incremental $4 billion, would amount to over 11% organic growth for the whole company, which made $35.8 billion in the recently completed year. So even if its other markets in communications and broadband infrastructure are flat, that would still be a decent performance.
All in all, Broadcom remains a reasonably priced dividend growth stock for defensive investors in the semiconductor sector.
Should you invest $1,000 in Broadcom right now?
Before you buy stock in Broadcom, consider this:
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Billy Duberstein has positions in Bank of America and Broadcom. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool recommends Broadcom. 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 tailwinds and a massive lift from VMware On Monday, Citi analyst Christopher Danely raised his price target on Broadcom to $1,100, giving the company a buy rating. While the ultimate number isn't yet known, according to Worker Adjustment and Retraining Notification (WARN) notices filed with several states, it appears at least 2,837 layoffs are coming, and likely more over time. On the conference call with analysts last week, CEO Hock Tan said the plan is to refocus VMware on its core hybrid and private cloud software business, while divesting noncore assets.
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AI tailwinds and a massive lift from VMware On Monday, Citi analyst Christopher Danely raised his price target on Broadcom to $1,100, giving the company a buy rating. That thesis includes a robust outlook for artificial intelligence (AI) networking chips, which Danely believes will double for Broadcom in 2024 from $4 billion to $8 billion in revenue. And both analysts put out a rough earnings target of $60 in EPS next year, which would put Broadcom's valuation a tad over 18 times 2024 earnings today.
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AI tailwinds and a massive lift from VMware On Monday, Citi analyst Christopher Danely raised his price target on Broadcom to $1,100, giving the company a buy rating. Broadcom has a big AI opportunity Given increased intensity on networking that will be needed in AI data centers, Broadcom appears to have strong growth ahead, at least in its data center infrastructure business. Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Broadcom wasn't one of them.
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AI tailwinds and a massive lift from VMware On Monday, Citi analyst Christopher Danely raised his price target on Broadcom to $1,100, giving the company a buy rating. Danely believes VMware could add $12.50 to Broadcom's earnings per share in the coming year. Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Broadcom wasn't one of them.
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712330.0
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2023-12-12 00:00:00 UTC
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CACI International (CACI) Secures $64M U.S. Air Force Contract
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https://www.nasdaq.com/articles/caci-international-caci-secures-%2464m-u.s.-air-force-contract
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CACI International Inc. CACI clinched a significant deal — a five-year task order valued at up to $64 million. This contract is dedicated to providing comprehensive life cycle hardware and systems engineering support for the U.S. Air Force's Distributed Common Ground System (DCGS).
The awarded contract will specifically bolster the Air Force Life Cycle Management Center Command, Control, and Intelligence, Surveillance, and Reconnaissance (C2ISR) Division, operating under the Program Executive Office – Digital Directorate.
CACI will play a pivotal role by implementing a series of modifications and upgrades within the DCGS shelter operations, reinforcing the resilience of forward operating location ground stations. This enhancement aims at ensuring agile and effective quick reaction capabilities in diverse operational environments.
The contract entails CACI's responsibility for maintaining and sustaining various mobile and transportable systems across their life cycle for DCGS. Additionally, the company will develop and procure additional components and systems aligned with mission requirements. These initiatives aim to enhance secure and reliable command, control, communications, and intelligence functions, optimizing intelligence, surveillance, and reconnaissance (ISR) operations, and streamlining critical processing, exploitation and dissemination functions.
This strategic contract underscores CACI's commitment to fortifying the infrastructure supporting crucial Air Force operations. The integration of CACI's cutting-edge mobile technologies into the DCGS framework promises to revolutionize data delivery, ensuring prompt and effective decision-making for the nation's defense forces.
Shares of this Zacks Rank #3 (Hold) company have underperformed the Zacks Computer – Services industry in the year-to-date (YTD) period. CACI’s shares have risen 7.1% YTD compared with the industry’s 11.4% growth.
CACI International, Inc. Price and Consensus
CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote
Continuous Flow of Contracts
CACI International has been benefiting from new business wins from the U.S. Air Force & Army, NASA, National Geospatial-Intelligence Agency (“NGA”) and DARPA. Earlier this week, the company secured a five-year task order from the U.S. Army that has a ceiling value of $420 million. Per the contract, it will provide software and systems to help modernize the army’s command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance (C5ISR) program.
In late October 2023, CACI secured the exclusive contract for a four-year period to provide ongoing assistance to NASA's Johnson Space Center through an indefinite delivery-indefinite quantity agreement. This agreement has a maximum value of $150 million and is set to support NASA's spaceflight systems, simulation and software needs.
Earlier to that (in the same month), it secured a contract from the U.S. Air Force Research Laboratory (“AFRL”). The contract will run over the next five years and has a maximum ceiling value of $917 million. Per the terms of the deal, CACI will implement agile and adaptable processes to develop mission software and data analysis capabilities to advance and modernize AFRL’s C5ISR programs.
Additionally, CACI's longstanding partner, NGA, has started using its Sapphire imagery analytics platform and another AI-powered solution named Feature Trace. Furthermore, it deployed 16 Optical Communications Terminals above DARPA Blackjack Satellites.
These back-to-back wins are the key catalysts for the company, which boasts a large pipeline of new projects and wins deals at regular intervals. In the first quarter of fiscal 2024, this currently Zacks Rank #3 (Hold) company won contracts worth $3.1 billion and ended the quarter with a total backlog of $26.7 billion.
CACI benefits from the government being one of its biggest clients. The company’s association with the government lends stability to its business and moderates revenue fluctuations.
Stocks to Consider
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up 11 cents to 44 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 55.7% to 95 cents per share in the past 60 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 70.7% year to date (YTD).
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 1.2% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 64.1% YTD.
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
Intel Corporation (INTC) : Free Stock Analysis Report
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The awarded contract will specifically bolster the Air Force Life Cycle Management Center Command, Control, and Intelligence, Surveillance, and Reconnaissance (C2ISR) Division, operating under the Program Executive Office – Digital Directorate. The integration of CACI's cutting-edge mobile technologies into the DCGS framework promises to revolutionize data delivery, ensuring prompt and effective decision-making for the nation's defense forces. In late October 2023, CACI secured the exclusive contract for a four-year period to provide ongoing assistance to NASA's Johnson Space Center through an indefinite delivery-indefinite quantity agreement.
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Per the contract, it will provide software and systems to help modernize the army’s command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance (C5ISR) program. The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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CACI International, Inc. Price and Consensus CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote Continuous Flow of Contracts CACI International has been benefiting from new business wins from the U.S. Air Force & Army, NASA, National Geospatial-Intelligence Agency (“NGA”) and DARPA. The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This contract is dedicated to providing comprehensive life cycle hardware and systems engineering support for the U.S. Air Force's Distributed Common Ground System (DCGS). The awarded contract will specifically bolster the Air Force Life Cycle Management Center Command, Control, and Intelligence, Surveillance, and Reconnaissance (C2ISR) Division, operating under the Program Executive Office – Digital Directorate. Shares of this Zacks Rank #3 (Hold) company have underperformed the Zacks Computer – Services industry in the year-to-date (YTD) period.
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712331.0
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2023-12-12 00:00:00 UTC
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These 2 Stocks Carry a Lot of Risk, But Their Upside Is Huge
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DCOMP
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https://www.nasdaq.com/articles/these-2-stocks-carry-a-lot-of-risk-but-their-upside-is-huge-12
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Investing has long been a game of risk versus reward, where every decision should consider the two. Treasury bonds are as close to a risk-free investment as there is, and even those are subject to inflation and interest-rate risks. There are some exceptions, but the risk-reward trade-off generally holds up.
Growth stocks are notable examples of this trade-off. There are risks because many are younger and operating in evolving markets. However, when it goes as planned, they can provide substantial returns. Here are two companies in particular that are facing a lot of risk but can provide great value in the long run.
1. Snowflake
Snowflake (NYSE: SNOW) is a data warehousing platform that has made it easier for companies to store, access, and analyze tons of data. Companies often use different systems for their accounting, customer relations, and in-house tools, but Snowflake allows companies to integrate and manage this data on one platform.
Snowflake has been one of the more talked-about growth stocks in the past few years, but that hasn't quite translated to stock price success. Despite its surge in 2023 (up 42%), Snowflake is still down over 50% from its November 2021 peak and below where it began trading during its initial public offering.
One of the main concerns with Snowflake is the slowdown in its growth. In the third quarter of its 2024 fiscal year (ended Oct. 31), it made $734.2 million in revenue, up 32% year over year (YOY). Generally, 32% YOY revenue growth is a good thing, but Snowflake's YOY quarterly revenue growth is consistently dropping.
There's also the issue of Snowflake's expenses growing faster than its revenue. In Q3, its operating expenses were $765.8 million, up 34% YOY. Snowflake isn't yet profitable, and having expenses grow faster than revenue isn't quite the way to get there.
SNOW Revenue (Quarterly) data by YCharts.
That said, Snowflake is operating in an industry that I believe is still in the relatively early parts of what it can be: big data. Big data has been a buzzword in the tech world for quite some time, but it's becoming increasingly important as data-driven decision making and AI training have come to the forefront.
Snowflake's 135% retention rate and growing list of big-name customers suggest its tools are effective. As it continues to expand its product ecosystem and leverage its machine learning and AI capabilities for data analytics, it has the potential to be a long-term success.
2. DraftKings
As we're going through a time of year when U.S. sports are in a peak season, I'm sure you can't help but notice the amount of sports gambling content that's been around. As states slowly legalize sports gambling, it has become a billion-dollar industry, benefiting companies like DraftKings (NASDAQ: DKNG).
The sports betting market is becoming fairly competitive as platforms like DraftKings, FanDuel, PrizePicks, Underdog Fantasy, the now-emerging ESPN BET, and countless others seek to get a piece of the growing sports gambling market.
In Q3 2023, DraftKings beat revenue and earnings per share expectations at $790 million and -$0.61, respectively. Both were up significantly YOY, causing management to increase its 2023 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance, as well as 2024's. DraftKings expects its 2024 revenue to be $4.5 billion to $4.8 billion, with an adjusted EBITDA of $350 million to $450 million.
DKNG Revenue (Quarterly) data by YCharts.
DraftKings' stock price surge in 2023 (up 230%) and aggressive 2024 guidance puts investors at risk of overvaluing the stock if it doesn't deliver on its goals. It seems to be on the path to continued growth, but increased competition could damper DraftKings' ambitious plans.
My biggest concern is the emergence of ESPN BET -- an app and partnership between Walt Disney's ESPN and Penn Entertainment. As of Dec. 12, 2023, ESPN BET is the top free sports app in the App Store, while DraftKings is fourth. ESPN's name and media reach could draw consumers toward it and away from other options.
Nevertheless, if the U.S. sports gambling pie grows as much as anticipated, it could be enough business to go around and fuel the growth of multiple companies. The U.S. online sports betting market is projected to have a compound annual growth rate of 15.6% from 2023 to 2030.
Ease your way into a stake
Considering the risks, yet upside, that face Snowflake and DraftKings, I think long-term investors should consider dollar-cost averaging their way into a stake. Dollar-cost averaging can help reduce the risk of volatility and make sure you don't invest a lump sum right before a market drop, correction, or any similar event.
Investors with a short timeline may want to avoid these stocks because of the near-term uncertainty. Even if you decide to invest in these stocks, ensure they don't account for too much of your stock portfolio. You'll want more stable companies leading the way.
Should you invest $1,000 in Snowflake right now?
Before you buy stock in Snowflake, consider this:
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Stefon Walters has positions in DraftKings. The Motley Fool has positions in and recommends Snowflake. 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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Big data has been a buzzword in the tech world for quite some time, but it's becoming increasingly important as data-driven decision making and AI training have come to the forefront. As it continues to expand its product ecosystem and leverage its machine learning and AI capabilities for data analytics, it has the potential to be a long-term success. Dollar-cost averaging can help reduce the risk of volatility and make sure you don't invest a lump sum right before a market drop, correction, or any similar event.
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Generally, 32% YOY revenue growth is a good thing, but Snowflake's YOY quarterly revenue growth is consistently dropping. Ease your way into a stake Considering the risks, yet upside, that face Snowflake and DraftKings, I think long-term investors should consider dollar-cost averaging their way into a stake. Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them.
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Snowflake has been one of the more talked-about growth stocks in the past few years, but that hasn't quite translated to stock price success. Generally, 32% YOY revenue growth is a good thing, but Snowflake's YOY quarterly revenue growth is consistently dropping. Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them.
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Generally, 32% YOY revenue growth is a good thing, but Snowflake's YOY quarterly revenue growth is consistently dropping. Should you invest $1,000 in Snowflake right now? Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them.
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f42d6942-e6bc-4ac5-81f6-c2089ae88149
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712332.0
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2023-12-12 00:00:00 UTC
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Lockheed (LMT) Wins Navy Deal to Aid Spain's MH-60R Helicopters
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DCOMP
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https://www.nasdaq.com/articles/lockheed-lmt-wins-navy-deal-to-aid-spains-mh-60r-helicopters
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Lockheed Martin Corp. LMT recently secured a modification contract involving the MH-60R aircraft. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $132.8 million, the contract is projected to be completed by June 2029. Per the terms of the deal, Lockheed will provide non-recurring engineering efforts in support of bringing eight MH-60R aircraft from a standard Foreign Military Sales (FMS) configuration to a unique configuration for the government of Spain.
Through this modification, Lockheed will also procure eight embedded global positioning system inertial navigation systems spares, four airborne low-frequency sonars and production spares, and provide associated field service representative support for the MH-60R helicopter.
A major portion of the work related to this deal will be executed in Owego, NY; Stratford, CT; and Brest, France.
What’s Favoring Lockheed?
Nations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment. In this context, military helicopters that play a critical role in military missions have also witnessed a significant rise 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 the MH-60R Seahawk.
Notably, MH-60R brings transformational anti-submarine and anti-surface warfare capabilities to navies around the world. Impressively, the global fleet of MH-60R helicopters has achieved 1 million fleet flight hours in early 2023. This helicopter is currently operational with the U.S. Navy, Royal Danish Navy, Royal Australian Navy, Royal Saudi Naval Forces and the Indian Navy.
Undoubtedly, this reflects the solid demand that LMT’s MH-60R Seahawk helicopter enjoys in the combat rotorcraft market, which, in turn, ushers in valuable contracts for Lockheed, like the latest one. Such contract wins, in turn, should boost Lockheed’s revenue growth in the coming quarters.
LMT’s Prospects in the Helicopter Market
Looking ahead, rising geopolitical and cross-border conflicts prevalent across the globe, as evident from the ongoing hostilities in the Middle East, have forced nations to increase their defense spending toward procuring combat-proven 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 robust portfolio for a handful of combat-proven helicopters. Impressively, in October 2023, the Norwegian government placed an order for six of LMT’s MH-60R Seahawk helicopters. This reflects the fact that additional new customers are demanding for LMT’s MH-60R helicopter program, which already enjoys a prominent position in the global military rotorcraft market.
Apart from MH-60R, LMT’s Sikorsky unit includes helicopters like Black Hawk, 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 military 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 15.4% from the 2022 reported figure.
Price Movement
In the past three months, shares of Lockheed have risen 5% against the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks 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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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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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 military 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. 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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Such a solid market prospect offers strong growth opportunities for Lockheed, with the company offering a robust portfolio for a handful of combat-proven helicopters. 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. 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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Undoubtedly, this reflects the solid demand that LMT’s MH-60R Seahawk helicopter enjoys in the combat rotorcraft market, which, in turn, ushers in valuable contracts for Lockheed, 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. 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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Undoubtedly, this reflects the solid demand that LMT’s MH-60R Seahawk helicopter enjoys in the combat rotorcraft market, which, in turn, ushers in valuable contracts for Lockheed, like the latest one. 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 military 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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712333.0
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2023-12-12 00:00:00 UTC
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Strength Seen in Kennametal (KMT): Can Its 6.8% Jump Turn into More Strength?
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DCOMP
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https://www.nasdaq.com/articles/strength-seen-in-kennametal-kmt%3A-can-its-6.8-jump-turn-into-more-strength
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Kennametal KMT shares rallied 6.8% in the last trading session to close at $26.87. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.5% gain over the past four weeks.
Kennametal’s rally is largely driven by optimism about the company’s strong momentum in its aerospace & defense end markets within the Metal Cutting segment. Also, the company’s strategic initiatives, innovation and operational excellence bode well.
The company recently announced that it has ranked 70 among 600 companies that were identified as America's Most Responsible Companies by Newsweek and the global research and data firm Statista. The company has received this recognition for the third year in a row.
This engineered products maker is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -3.7%. Revenues are expected to be $499.12 million, up 0.4% 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 Kennametal, 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 KMT 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 >>>>
Kennametal belongs to the Zacks Manufacturing - Tools & Related Products industry. Another stock from the same industry, Enerpac (EPAC), closed the last trading session 1.5% higher at $29.48. Over the past month, EPAC has returned 1.5%.
For Enerpac, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.32. This represents a change of +10.3% from what the company reported a year ago. Enerpac 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
Kennametal Inc. (KMT) : Free Stock Analysis Report
Enerpac Tool Group Corp. (EPAC) : 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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Kennametal’s rally is largely driven by optimism about the company’s strong momentum in its aerospace & defense end markets within the Metal Cutting segment. 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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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Kennametal belongs to the Zacks Manufacturing - Tools & Related Products industry. For Enerpac, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.32. Click to get this free report Kennametal Inc. (KMT) : Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC) : 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 >>>> Kennametal belongs to the Zacks Manufacturing - Tools & Related Products industry. Click to get this free report Kennametal Inc. (KMT) : Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Kennametal KMT shares rallied 6.8% in the last trading session to close at $26.87. Another stock from the same industry, Enerpac (EPAC), closed the last trading session 1.5% higher at $29.48. For Enerpac, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.32.
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21595af7-aaf4-40db-917f-443998235ccc
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712334.0
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2023-12-12 00:00:00 UTC
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Next-Generation Retail: 7 Stocks Innovating in E-Commerce
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https://www.nasdaq.com/articles/next-generation-retail%3A-7-stocks-innovating-in-e-commerce
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
E-commerce has revolutionized the way people buy products and services. The convenience of e-commerce has led to the collapse of American shopping malls. Picking the right e-commerce stocks in the early 2000s could have yielded generational wealth for investors.
While getting into e-commerce now isn’t the same opportunity as in the early 2000s, the industry is still growing quickly. E-commerce is projected to achieve a compounded annual growth rate of 10.15% from now until 2028.
Surprisingly, only one-third of people shop online, which means the industry still has plenty of room to grow. Investors who want to profit from that growth may want to consider these top e-commerce stocks.
E-Commerce Stocks: Shopify (SHOP)
Source: Burdun Iliya / Shutterstock.com
Shopify (NYSE:SHOP) is an e-commerce platform that helps companies create online stores and sell products. The company has monthly subscriptions, which results in annual recurring revenue that investors can count on.
Switching from Shopify is difficult, and doing so will result in businesses shutting down their e-commerce operations. Most businesses will continue to pay Shopify’s monthly subscription unless they are on the brink of bankruptcy.
The company is leveraging its billions of interactions for machine learning to optimize its platform and increase sales for its merchants. Those efforts and others have paid off. Shopify recently reported its best Black Friday ever as merchants on the platform drummed up $4.1 billion in sales.
Shopify continues to deliver high growth for investors. Revenue increased by 25% year-over-year, while gross profit jumped by 36% year-over-year. The company reported its fourth consecutive quarter of positive free cash flow, which reached 16% of revenue.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon (NASDAQ:AMZN) is the face of e-commerce and the company that made the industry mainstream. The stock had been a bit slow for a few years but has come back to life with a 71% year-to-date gain.
Even with the company’s high penetration into e-commerce, Amazon continues to report double-digit year-over-year revenue growth. Net sales increased by 13% in the third quarter, while net income soared to $9.9 billion.
Amazon isn’t just an e-commerce company anymore. The tech conglomerate offers several avenues for growth, such as Amazon Web Services and Twitch. Andy Jassy, Amazon CEO, shared excitement about three business segments. The first two come as no surprise: Amazon Stores and AWS.
However, Jassy also mentioned that the company’s advertising revenue grew robustly. Of the many business segments under the Amazon umbrella, it’s exciting to see ad revenue get mentioned alongside stores and AWS.
Amazon has been breaking into the walled gardens of online advertising, and it makes sense. People don’t go on search engines or social media to buy goods and services. However, many people go on Amazon with the intent to buy something or plan their next purchase.
Businesses can get better ad results if their customers have that mindset. Amazon gives them that opportunity, and their advertising business generates more revenue and earnings growth in the future.
Perion (PERI)
Source: photobyphm / Shutterstock.com
Perion (NASDAQ:PERI) is a smaller advertising company that combines impressive growth rates with a low valuation. While investors have kept many e-commerce stocks on their radar, Perion remains relatively unknown despite its financial performance.
Perion has a forward P/E ratio of nine, which is something investors would expect from a telecom stock like Verizon (NYSE:VZ) or AT&T (NYSE:T). Despite the low valuation, Perion achieved 17% year-over-year revenue growth and 28% year-over-year net income growth while having no debt. The company has more than three times the amount of total assets than total liabilities.
Perion offers advertising solutions for search engines, social media, video, CTV, and other major digital advertising channels. Many brands turn to the growing advertising company for ad placements and optimal performance. That trend continued as Perion reported its best Black Friday e-commerce sales volume ever. The company also recently released a generative AI-powered dynamic audio advertising solution that is leading to more demand.
The fast-growing advertising company has a $1.3 billion market cap and has gained 11% year-to-date. The stock’s 944% growth over the past five years highlights the potential for lofty returns. Thus, it is one of my top picks when it comes to e-commerce stocks.
Lululemon Athletica (LULU)
Source: lentamart / Shutterstock
Lululemon Athletica (NASDAQ:LULU) has been a great stock for long-term investors. Shares have gained 51% year-to-date and are up by 311% over the past five years. The athletic apparel company has many retail locations in North America and uses its online store to generate more sales.
Revenue growth has decelerated in recent quarters due to macroeconomic headwinds, but Lululemon Athletica remains well ahead of competitors like Nike (NYSE:NKE). In the third quarter, revenue increased by 19% year-over-year compared to Nike’s 2% year-over-year revenue jump.
Lululemon Athletica expanded its physical presence with 14 additional stores and closed out the quarter with 686 stores. The company is trendy among younger consumers and is growing faster than many of its competitors.
The company recently announced a $1 billion stock repurchase program, which will further reward long-term investors. Lululemon Athletica’s leadership has demonstrated commitment to increasing shareholder value in addition to reporting strong financials. Lululemon Athletic enjoys double-digit profit margins and looks like a candidate that may offer dividends by the end of the decade.
Walmart (WMT)
Source: fotomak / Shutterstock.com
Walmart (NYSE:WMT) is the largest retailer in the world and is a popular destination for people who want to save money on various products. Walmart specializes in getting the lowest prices and operates over 10,000 stores in more than 20 countries.
Walmart shares took a breather in November after a nice rally and are up by 5% year-to-date. Shares have gained 64% over the past five years. The retailer reported 5.2% year-over-year revenue growth in the third quarter. The company also reported 15% year-over-year e-commerce growth in the same quarter.
Walmart’s retail international segment is growing at a faster rate than U.S. sales. Interestingly, e-commerce is having the opposite trend. While international e-commerce sales dropped by 3% year-over-year, U.S. e-commerce sales grew by 24% year-over-year.
Walmart is dabbling in advertising just like Amazon and reported an impressive 26% year-over-year growth rate for Walmart Connect advertising sales. Ads still make up a small portion of Walmart’s total revenue. However, in-store ads combined with online ads on Walmart’s site can lead to more growth in the years to come. If advertising continues to grow at this pace, it will eventually influence a larger percentage of Walmart’s total revenue. It is one of the best e-commerce stocks you can buy, in my opinion.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Many e-commerce businesses run advertisements to attract potential customers. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is one of the top resources for these business owners due to the company’s platforms and ad targeting capabilities.
Google and YouTube are two of the many subsidiaries under the Alphabet umbrella. The company also gives investors exposure to exciting segments like artificial intelligence and the cloud.
Alphabet stock has been a reliable winner for long-term investors. Shares have gained 47% year-to-date and are up by 156% over the past five years. Alphabet’s third-quarter results suggest that the gains can continue. The online advertising giant reported 11% year-over-year revenue growth and 41.6% year-over-year net income growth.
Google Cloud continues to grow at a robust pace. That business segment grew by 22.5% year-over-year and reached $8.4 billion in revenue. Google Cloud powers up many websites and makes up more than 10% of total revenue. Google Cloud is compensating for a slowdown in Google advertising revenue growth, which only came in slightly below 10% year-over-year.
MercadoLibre (MELI)
Source: rafapress / Shutterstock.com
MercadoLibre (NASDAQ:MELI) is an Argentine e-commerce and fintech company that delivers exceptional top-line and bottom-line growth. MercadoLibre’s e-commerce platform has been around for over 20 years and helps everyone from small sellers to large official stores. The marketplace has millions of sellers.
MercadoLibre is the largest marketplace in Latin America. Growth is high across the board, especially in Mexico and Brazil. The stock has rewarded long-term investors by almost doubling year-to-date. Long-term gains paint an even better picture, as shares are up by almost 400% over the past five years.
The company has generated strong returns for shareholders through its impressive finances. Revenue soared by 40% in the third quarter while net income comfortably surpassed expectations and almost tripled year-over-year.
MercadoLibre isn’t the cheapest e-commerce play if investors look at the conventional P/E ratio. Shares currently trade at an 80 P/E ratio and a 46 forward P/E ratio. However, the stock’s PEG ratio is under one, which some investors interpret as an undervalued stock. Even investors who look at companies based on their P/E ratios have been willing to pay a premium for exposure to MercadoLibre stock.
On this date of publication, Marc Guberti held long positions in SHOP and PERI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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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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Revenue growth has decelerated in recent quarters due to macroeconomic headwinds, but Lululemon Athletica remains well ahead of competitors like Nike (NYSE:NKE). More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Next-Generation Retail: 7 Stocks Innovating in E-Commerce appeared first on InvestorPlace.
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E-Commerce Stocks: Shopify (SHOP) Source: Burdun Iliya / Shutterstock.com Shopify (NYSE:SHOP) is an e-commerce platform that helps companies create online stores and sell products. Perion (PERI) Source: photobyphm / Shutterstock.com Perion (NASDAQ:PERI) is a smaller advertising company that combines impressive growth rates with a low valuation. Despite the low valuation, Perion achieved 17% year-over-year revenue growth and 28% year-over-year net income growth while having no debt.
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E-Commerce Stocks: Shopify (SHOP) Source: Burdun Iliya / Shutterstock.com Shopify (NYSE:SHOP) is an e-commerce platform that helps companies create online stores and sell products. Even with the company’s high penetration into e-commerce, Amazon continues to report double-digit year-over-year revenue growth. The online advertising giant reported 11% year-over-year revenue growth and 41.6% year-over-year net income growth.
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Investors who want to profit from that growth may want to consider these top e-commerce stocks. Even with the company’s high penetration into e-commerce, Amazon continues to report double-digit year-over-year revenue growth. Walmart is dabbling in advertising just like Amazon and reported an impressive 26% year-over-year growth rate for Walmart Connect advertising sales.
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025aec23-890b-4ce3-8ad7-6f8b49f11dcc
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712335.0
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2023-12-12 00:00:00 UTC
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Global Payments says it is not in talks to buy peer Shift4
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https://www.nasdaq.com/articles/global-payments-says-it-is-not-in-talks-to-buy-peer-shift4
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Repeats to widen distribution
Dec 14 (Reuters) - Payments technology firm Global Payments GPN.N said on Thursday that it is not weighing an acquisition of peer Shift4 Payments FOUR.N, denying a media report of potential merger talks between the two.
"Although we typically do not respond to market speculation or rumors, we are not in discussions with Shift4 regarding any type of strategic transaction," the company said in an emailed statement to Reuters.
Bloomberg News reported earlier on Thursday that Global Payments was working with an adviser to study the feasibility of a deal for Shift4, citing people familiar with the matter.
Shift4 CEO Jared Isaacman in his latest letter to shareholders had said that the company is exploring strategic options and alternatives. In an interview, he also said that the firm has received acquisition interest from several parties.
Shares of Global Payments fell 2.9% in the late hours of trading, while Shift4's shares were up 9.4%.
(Reporting by Jaiveer Singh Shekhawat and Utkarsh Shetti in Bengaluru; Editing by Maju Samuel and Sonia Cheema)
((JaiveerSingh.Shekhawat@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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"Although we typically do not respond to market speculation or rumors, we are not in discussions with Shift4 regarding any type of strategic transaction," the company said in an emailed statement to Reuters. Bloomberg News reported earlier on Thursday that Global Payments was working with an adviser to study the feasibility of a deal for Shift4, citing people familiar with the matter. Shift4 CEO Jared Isaacman in his latest letter to shareholders had said that the company is exploring strategic options and alternatives.
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Repeats to widen distribution Dec 14 (Reuters) - Payments technology firm Global Payments GPN.N said on Thursday that it is not weighing an acquisition of peer Shift4 Payments FOUR.N, denying a media report of potential merger talks between the two. Bloomberg News reported earlier on Thursday that Global Payments was working with an adviser to study the feasibility of a deal for Shift4, citing people familiar with the matter. Shares of Global Payments fell 2.9% in the late hours of trading, while Shift4's shares were up 9.4%.
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Repeats to widen distribution Dec 14 (Reuters) - Payments technology firm Global Payments GPN.N said on Thursday that it is not weighing an acquisition of peer Shift4 Payments FOUR.N, denying a media report of potential merger talks between the two. Bloomberg News reported earlier on Thursday that Global Payments was working with an adviser to study the feasibility of a deal for Shift4, citing people familiar with the matter. (Reporting by Jaiveer Singh Shekhawat and Utkarsh Shetti in Bengaluru; Editing by Maju Samuel and Sonia Cheema) ((JaiveerSingh.Shekhawat@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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Repeats to widen distribution Dec 14 (Reuters) - Payments technology firm Global Payments GPN.N said on Thursday that it is not weighing an acquisition of peer Shift4 Payments FOUR.N, denying a media report of potential merger talks between the two. "Although we typically do not respond to market speculation or rumors, we are not in discussions with Shift4 regarding any type of strategic transaction," the company said in an emailed statement to Reuters. Shift4 CEO Jared Isaacman in his latest letter to shareholders had said that the company is exploring strategic options and alternatives.
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5934d75f-c5a9-4989-9597-e8b64c196417
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712336.0
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2023-12-12 00:00:00 UTC
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Is Cava a Buy Now?
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https://www.nasdaq.com/articles/is-cava-a-buy-now
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Investors have been gobbling up Cava Group (NYSE: CAVA) shares since its initial public offering (IPO) in June, with its stock up roughly 70% from an IPO price of $22 per share. The Mediterranean fast-casual restaurant chain has big ambitions, following in the footsteps of competitors like Chipotle Mexican Grill (NYSE: CMG).
Given the meteoric rise of Chipotle's stock over the past decade, it's worth examining whether Cava can replicate its success. So, let's look at Cava's long-term goals, recent financial metrics, and whether its stock is worth adding to your portfolio.
Cava is small but growing fast
As of its most recently reported quarter, Cava had 290 locations across 24 states and the District of Columbia, a nearly 36% year-over-year increase. Those locations generated $173.8 million in revenue, a year-over-year increase of 50%. (For comparison, Chipotle most recently reported 3,321 locations and has opened a net of 134 stores over the trailing 12 months.)
In the long term, management has set a goal to grow its locations at an annualized rate of at least 15%. If its succeeds, the company will double its store count in five years.
For any restaurant stock, one metric to focus on is same-store sales, which measures existing stores' sales growth. For its fiscal third quarter, ended Oct. 1, Cava put up same-store sales growth of 14.1%. For comparison, larger fast-casual competitors Chipotle and Wingstop posted same-store sales growth of 5% and 15.3%, respectively.
Another metric demonstrating Cava's popularity is traffic, which management defines as the number of entrees ordered. Traffic was up 7.6% year over year in the latest quarter. While Cava's fast-casual and fast-food competitors don't typically break out its traffic metrics, McDonald's management noted traffic was down during its most recently reported quarter, which aligned with its assessment of the industry as a whole.
Cava is profitable and has no debt
Beyond its growing popularity, Cava is already profitable, delivering net income of $6.8 million in its most recently reported quarter. That's in contrast to its $11.9 million net loss in the third quarter of 2022. Notably, the company made nearly $4 million out of its $6.8 million in interest income because of its strong balance sheet with $340 million in cash and cash equivalents and no long-term debt at the end of the quarter.
Nonetheless, Cava managed to generate $2.8 million from its operations in its most recently reported quarter, marking a significant 123% year-over-year increase. Over its first three quarters of 2023, Cava achieved a total net operating income of $11.2 million, reflecting a substantial 128% year-over-year growth.
Image source: Getty Images.
What could go wrong with Cava stock?
Like Chipotle, Cava does not have a franchise-based chain, meaning it owns and operates all its locations except for one licensed restaurant. There are many pros for a restaurant company to own and operate all its locations, like receiving 100% of each restaurant's revenue and maintaining complete control of operations.
However, there is a downside in that it's expensive to open and sustain restaurants because there is neither a standard franchise fee paid to the company with each new opening nor ongoing fees for advertising.
Cava's balance sheet is strong partly due to its initial public offering this year, which netted the company roughly $318 million. However, that cash will likely be drained over the coming years as Cava pays to open new locations. The company has spent $108 million through its first three quarters of 2023 to open restaurants, improve its technology, and invest in a new production facility. By comparison, Cava spent $72 million on investing activities through its first three quarters of 2022.
Another significant concern regarding Cava is its stock valuation. It's worth highlighting that Cava's market capitalization stands at roughly $4.3 billion, a notable contrast to Chipotle's impressive $64 billion. However, when examining market capitalization per store, each Cava location is valued at $14.8 million, a substantial premium compared to Chipotle's valuation of $1.9 million per store.
Additionally, utilizing the valuation metric forward price-to-earnings (P/E) ratio, which compares a company's anticipated earnings for the next 12 months to its current stock price, Cava stock is currently trading at an exorbitant 382 times earnings. In comparison, Chipotle and Wingstop have forward P/E ratios of 53 and 105, respectively. Chipotle and Wingstop already fall on the higher side of sector stock valuations, but Cava's stock valuation is off the charts.
CAVA PE Ratio (Forward) data by YCharts
Is Cava stock a buy?
Despite Cava's extreme valuation, history has demonstrated the high-upside opportunity among certain restaurant stocks. However, it's important to note that predecessors like Chipotle and Wingstop have established successful nationwide concepts with Mexican food and wings, respectively.
In contrast, the fast-casual Mediterranean sector lacks a precedent, adding an element of uncertainty to investing in Cava. Moreover, the stock has exhibited significant volatility since its brief tenure as a publicly traded company, with Cava shares recently jumping 17% following the expiration of its 180-day lock-up period.
So, if you're interested in investing in Cava, there's no harm in waiting until the fast-food chain proves its concept has staying power. Because if it's anything like Chipotle or Wingstop, there will be plenty of time to invest. Until then, investors should hold off on Cava as it settles into its valuation as a public company.
10 stocks we like better than Cava Group
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Cava Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Collin Brantmeyer has positions in Chipotle Mexican Grill. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Wingstop. The Motley Fool recommends Cava Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nonetheless, Cava managed to generate $2.8 million from its operations in its most recently reported quarter, marking a significant 123% year-over-year increase. Cava's balance sheet is strong partly due to its initial public offering this year, which netted the company roughly $318 million. Moreover, the stock has exhibited significant volatility since its brief tenure as a publicly traded company, with Cava shares recently jumping 17% following the expiration of its 180-day lock-up period.
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Investors have been gobbling up Cava Group (NYSE: CAVA) shares since its initial public offering (IPO) in June, with its stock up roughly 70% from an IPO price of $22 per share. However, when examining market capitalization per store, each Cava location is valued at $14.8 million, a substantial premium compared to Chipotle's valuation of $1.9 million per store. Additionally, utilizing the valuation metric forward price-to-earnings (P/E) ratio, which compares a company's anticipated earnings for the next 12 months to its current stock price, Cava stock is currently trading at an exorbitant 382 times earnings.
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Investors have been gobbling up Cava Group (NYSE: CAVA) shares since its initial public offering (IPO) in June, with its stock up roughly 70% from an IPO price of $22 per share. Cava is profitable and has no debt Beyond its growing popularity, Cava is already profitable, delivering net income of $6.8 million in its most recently reported quarter. Chipotle and Wingstop already fall on the higher side of sector stock valuations, but Cava's stock valuation is off the charts.
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(For comparison, Chipotle most recently reported 3,321 locations and has opened a net of 134 stores over the trailing 12 months.) However, when examining market capitalization per store, each Cava location is valued at $14.8 million, a substantial premium compared to Chipotle's valuation of $1.9 million per store. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Wingstop.
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7ad6969b-726d-476c-8b11-800cfd36f88d
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712337.0
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2023-12-12 00:00:00 UTC
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Superstar Investor Bill Ackman Has $10 Billion Invested in Just 7 Stocks
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https://www.nasdaq.com/articles/superstar-investor-bill-ackman-has-%2410-billion-invested-in-just-7-stocks
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Bill Ackman is one of the best investors of our generation and he controls a $10 billion portfolio at Pershing Square. But this isn't just any portfolio, it's incredibly concentrated into only seven stocks and six companies.
In this video, Travis Hoium goes through Ackman's portfolio and what he might be seeing in the allocations being made.
*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 Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Chipotle Mexican Grill 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. The Motley Fool has positions in and recommends Alphabet, Chipotle Mexican Grill, and Howard Hughes. The Motley Fool recommends Lowe's Companies and Restaurant Brands International. 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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Bill Ackman is one of the best investors of our generation and he controls a $10 billion portfolio at Pershing Square. The 10 stocks that made the cut could produce monster returns in the coming years. The Motley Fool has positions in and recommends Alphabet, Chipotle Mexican Grill, and Howard Hughes.
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Before you buy stock in Chipotle Mexican Grill, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Chipotle Mexican Grill wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Chipotle Mexican Grill, and Howard Hughes.
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Before you buy stock in Chipotle Mexican Grill, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Chipotle Mexican Grill 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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In this video, Travis Hoium goes through Ackman's portfolio and what he might be seeing in the allocations being made. Before you buy stock in Chipotle Mexican Grill, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Chipotle Mexican Grill wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Chipotle Mexican Grill, and Howard Hughes.
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ebfff6ea-0248-4996-ac8c-9300b9653e1a
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712338.0
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2023-12-12 00:00:00 UTC
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3 Overlooked Dividend Stocks With Upside in 2024
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https://www.nasdaq.com/articles/3-overlooked-dividend-stocks-with-upside-in-2024
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Come one, come all, income investors, and see the magic that we know as dividends. Dividends are a large factor in reducing portfolio risk and volatility, and the dividend itself helps mitigate losses in a stock price. But ultimately, it just feels good to have a company pay you a little bit for having skin in the game.
Here are three fantastic dividends with upside: Stellantis (NYSE: STLA), Kraft Heinz (NASDAQ: KHC), and The Home Depot (NYSE: HD).
No longer in the shadows
One of the best automotive dividends is often forgotten. Stellantis sometimes lags its crosstown rivals Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) in headlines, but over the past year it's arguably been the best dividend stock of the three.
In fact, in terms of stock price performance, Stellantis is up nearly 50% over the past year while Ford and GM declined 18% and 12%, respectively. Stellantis' 6.5% dividend yield tops Ford's 5.5%, and is well above GM's 1.1%.
What's even more wild, perhaps, is that Stellantis recently shocked some investors by announcing that its electric vehicles (EVs) were in the black not only in Europe, but in the U.S. market as well. That's well ahead of GM, which predicts its EVs to be profitable in 2025, and Ford, which says its EVs will be in 2026.
The automaker has even managed to overtake Tesla for Europe's No. 2 seller of EVs, a feat not to be taken lightly.
If you're looking for a stock that's been beating the market and offers a high dividend yield -- with the potential to pour more capital into the dividend as it curbs costs on its EV lineup faster than competitors -- Stellantis is suddenly and quietly becoming a top option in the automotive industry.
All you can eat
For stable companies with upside, there might be no better list to check than the stocks Warren Buffett owns. Kraft Heinz is one of his top holdings, valued at nearly $11 billion.
Kraft has refocused its growth strategy around three key pillars: Food service, emerging markets, and growth platforms in U.S. retail. The strategy has fueled profitable growth, and that held true in the company's third quarter.
Kraft turned in organic net sales growth of 1.7%, which fueled a 12.9% surge in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and a 14.3% jump in adjusted earnings per share, all compared to the prior year's third quarter. Its price increases also gained traction, pushing adjusted gross margin up nearly four percentage points to 34%.
Going hand in hand with its profitable growth is a focus on improving productivity across its value chain, and then reinvesting back into marketing and research and development. Management has also been diligent on improving the balance sheet and has reached its target net leverage of roughly 3.0.
KHC data by YCharts.
The upside for income investors is that Kraft trades at a modest price-to-earnings ratio of 15 times earnings, and has a dividend yield of 4.3%. Better yet, as you can see in the graph above, once its profitable growth gains more traction, the company could eventually boost its dividend back up to pre-pandemic levels.
If you build it...
The Home Depot is the world's largest home improvement retailer, with more than 2,300 stores in the U.S., Canada, and Mexico. The upside for investors is that the home improvement sector is also fragmented, leaving big brands such as Home Depot plenty of room for market share growth.
While Home Depot has lagged the broader S&P 500 over the past year, as the company struggled with slowing big-ticket and discretionary categories, it has managed to outperform a key rival.
Lowe's (NYSE: LOW) and Home Depot have much in common, but one slight difference is that the former gets roughly 25% of its revenue from professional contractors, while Home Depot generates roughly 50% of its revenue through those contractors.
Right now, Home Depot's larger focus on professional contractors is paying off. Lowe's same-store sales declined 7.4% during the third quarter, while Home Depot's declined a more modest 3.5%. The story was similar for overall revenue, which dipped 13% for Lowe's but only 3% for Home Depot.
More importantly, at least while you're reading this article, is that Home Depot also has a slight edge in terms of its dividend.
LOW dividend data by YCharts.
Home Depot offers income investors a healthy 2.5% dividend yield, with a history of increases, and is currently performing better than a key rival.
3 strong dividend options
Whether these companies are overlooked due to other juggernauts in their industry, or left for dead during the recent pandemic, all three are quietly performing well and offer healthy dividends to boot.
Savvy investors shouldn't overlook these three dividend stocks any longer, and they at least warrant a second look or a spot on your watch list.
Should you invest $1,000 in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Home Depot 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
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends General Motors, Kraft Heinz, and Stellantis 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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The upside for income investors is that Kraft trades at a modest price-to-earnings ratio of 15 times earnings, and has a dividend yield of 4.3%. While Home Depot has lagged the broader S&P 500 over the past year, as the company struggled with slowing big-ticket and discretionary categories, it has managed to outperform a key rival. Home Depot offers income investors a healthy 2.5% dividend yield, with a history of increases, and is currently performing better than a key rival.
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Here are three fantastic dividends with upside: Stellantis (NYSE: STLA), Kraft Heinz (NASDAQ: KHC), and The Home Depot (NYSE: HD). Stellantis sometimes lags its crosstown rivals Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) in headlines, but over the past year it's arguably been the best dividend stock of the three. The Motley Fool recommends General Motors, Kraft Heinz, and Stellantis and recommends the following options: long January 2025 $25 calls on General Motors.
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Stellantis sometimes lags its crosstown rivals Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) in headlines, but over the past year it's arguably been the best dividend stock of the three. Lowe's (NYSE: LOW) and Home Depot have much in common, but one slight difference is that the former gets roughly 25% of its revenue from professional contractors, while Home Depot generates roughly 50% of its revenue through those contractors. Before you buy stock in Home Depot, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Home Depot wasn't one of them.
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In fact, in terms of stock price performance, Stellantis is up nearly 50% over the past year while Ford and GM declined 18% and 12%, respectively. Lowe's (NYSE: LOW) and Home Depot have much in common, but one slight difference is that the former gets roughly 25% of its revenue from professional contractors, while Home Depot generates roughly 50% of its revenue through those contractors. Should you invest $1,000 in Home Depot right now?
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2023-12-12 00:00:00 UTC
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5 Dividend Aristocrats Where Analysts See Capital Gains
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https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-121
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To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
NextEra Energy Inc (Symbol: NEE) $62.78 $71.57 14.00%
Brown & Brown Inc (Symbol: BRO) $71.96 $78.00 8.39%
Berkley Corp (Symbol: WRB) $71.17 $75.78 6.47%
Automatic Data Processing Inc. (Symbol: ADP) $235.97 $250.57 6.19%
Church & Dwight Co Inc (Symbol: CHD) $91.36 $96.20 5.30%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
NextEra Energy Inc (Symbol: NEE) 2.98% 14.00% 16.98%
Brown & Brown Inc (Symbol: BRO) 0.72% 8.39% 9.11%
Berkley Corp (Symbol: WRB) 0.62% 6.47% 7.09%
Automatic Data Processing Inc. (Symbol: ADP) 2.37% 6.19% 8.56%
Church & Dwight Co Inc (Symbol: CHD) 1.19% 5.30% 6.49%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
NextEra Energy Inc (Symbol: NEE) $1.7 $1.872 10.12%
Brown & Brown Inc (Symbol: BRO) $0.424 $0.475 12.03%
Berkley Corp (Symbol: WRB) $0.786666666666667 $1.42 80.51%
Automatic Data Processing Inc. (Symbol: ADP) $4.37 $5.15 17.85%
Church & Dwight Co Inc (Symbol: CHD) $1.052 $1.092 3.80%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on ADP — FREE
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Dividend Growth Stocks: 25 Aristocrats »
Also see:
Funds Holding LAZR
Funds Holding LYG
ETFs Holding APEI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another. Get the latest Zacks research report on ADP — FREE Get the latest Zacks research report on CHD — FREE Dividend Growth Stocks: 25 Aristocrats » Also see: Funds Holding LAZR Funds Holding LYG ETFs Holding APEI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NextEra Energy Inc (Symbol: NEE) $62.78 $71.57 14.00% Brown & Brown Inc (Symbol: BRO) $71.96 $78.00 8.39% Berkley Corp (Symbol: WRB) $71.17 $75.78 6.47% Automatic Data Processing Inc. (Symbol: ADP) $235.97 $250.57 6.19% Church & Dwight Co Inc (Symbol: CHD) $91.36 $96.20 5.30% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NextEra Energy Inc (Symbol: NEE) 2.98% 14.00% 16.98% Brown & Brown Inc (Symbol: BRO) 0.72% 8.39% 9.11% Berkley Corp (Symbol: WRB) 0.62% 6.47% 7.09% Automatic Data Processing Inc. (Symbol: ADP) 2.37% 6.19% 8.56% Church & Dwight Co Inc (Symbol: CHD) 1.19% 5.30% 6.49% Another consideration with dividend growth stocks is just how much the dividend is growing. NextEra Energy Inc (Symbol: NEE) $1.7 $1.872 10.12% Brown & Brown Inc (Symbol: BRO) $0.424 $0.475 12.03% Berkley Corp (Symbol: WRB) $0.786666666666667 $1.42 80.51% Automatic Data Processing Inc. (Symbol: ADP) $4.37 $5.15 17.85% Church & Dwight Co Inc (Symbol: CHD) $1.052 $1.092 3.80% These five stocks are part of our full Dividend Aristocrats List.
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But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. NextEra Energy Inc (Symbol: NEE) $62.78 $71.57 14.00% Brown & Brown Inc (Symbol: BRO) $71.96 $78.00 8.39% Berkley Corp (Symbol: WRB) $71.17 $75.78 6.47% Automatic Data Processing Inc. (Symbol: ADP) $235.97 $250.57 6.19% Church & Dwight Co Inc (Symbol: CHD) $91.36 $96.20 5.30% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NextEra Energy Inc (Symbol: NEE) 2.98% 14.00% 16.98% Brown & Brown Inc (Symbol: BRO) 0.72% 8.39% 9.11% Berkley Corp (Symbol: WRB) 0.62% 6.47% 7.09% Automatic Data Processing Inc. (Symbol: ADP) 2.37% 6.19% 8.56% Church & Dwight Co Inc (Symbol: CHD) 1.19% 5.30% 6.49% Another consideration with dividend growth stocks is just how much the dividend is growing.
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But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. NextEra Energy Inc (Symbol: NEE) $62.78 $71.57 14.00% Brown & Brown Inc (Symbol: BRO) $71.96 $78.00 8.39% Berkley Corp (Symbol: WRB) $71.17 $75.78 6.47% Automatic Data Processing Inc. (Symbol: ADP) $235.97 $250.57 6.19% Church & Dwight Co Inc (Symbol: CHD) $91.36 $96.20 5.30% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect.
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2023-12-12 00:00:00 UTC
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5 Tech ETFs that Crushed the Magnificent Seven ETFs in 2023
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https://www.nasdaq.com/articles/5-tech-etfs-that-crushed-the-magnificent-seven-etfs-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 32% this year. There is another ETF called Invesco S&P 500 Top 50 ETF XLG, which invests about 50% of the basket in Magnificent Seven. That fund is up about 34% 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 (as of Dec 12, 2023).
But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS. These include
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 in 2023, some other tech ETFs that are not solely focused on “Magnificent Seven” shined. With the Fed expected to cut rates by 75 bps in 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.
ETF Picks
Below, we highlight those winning tech ETFs that trumped even Magnificent Seven in 2023.
VanEck Digital Transformation ETF (DAPP) – Up 192.3%
The underlying MVIS Global Digital Assets Equity Index is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. Along with DAPP, several other digital asset ETFs, bitcoin mining ETFs and blockchain ETFs have exceled and beaten MAGS this year by a wide margin (read: Block (SQ) Soars on Upbeat Earnings & Outlook: ETFs to Gain).
VanEck Semiconductor ETF (SMH) – Up 63.9%
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. Along with SMH, other semiconductor ETFs also soared this year (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
SPDR NYSE Technology ETF (XNTK) – Up 63.9%
The underlying NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. The fund includes semiconductors (25.85%), Systems Software (12.33%), Application Software (9.82%), Interactive Media & Services (7.88%), Internet Services & Infrastructure (6%) and so on.
iShares U.S. Technology ETF (IYW) – Up 60.4%
The underlying Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
WisdomTree Cybersecurity Fund (WCBR) – Up 59.1%
The underlying WisdomTree Team8 Cybersecurity Index is designed to track the performance of companies primarily involved in providing cyber security-oriented products. The fund charges 45 bps in fees (read: Here's Why Cybersecurity ETFs Are At a 52-Week High).
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
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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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 (as of Dec 12, 2023). 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. With the Fed expected to cut rates by 75 bps in 2024, overall tech space should do well as the area thrives better in a low-rate environment.
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These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. VanEck Semiconductor ETF (SMH) – Up 63.9% The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS. Along with DAPP, several other digital asset ETFs, bitcoin mining ETFs and blockchain ETFs have exceled and beaten MAGS this year by a wide margin (read: Block (SQ) Soars on Upbeat Earnings & Outlook: ETFs to Gain). Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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That fund is up about 34% this year. Plus, the AI boom is ongoing, which is expected to push the space to another height next year. VanEck Semiconductor ETF (SMH) – Up 63.9% The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment.
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2023-12-12 00:00:00 UTC
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Up 230%, 3 Reasons Nvidia Stock Can Still Make You Richer
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https://www.nasdaq.com/articles/up-230-3-reasons-nvidia-stock-can-still-make-you-richer
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Perhaps no company epitomizes 2023's artificial intelligence (AI) boom more than Nvidia (NASDAQ: NVDA). Shares of the tech giant soared a whopping 230% as investors piled in based on optimism that rising demand for its advanced chips would boost revenue and earnings. Let's discuss three reasons why the meteoric rise looks far from over.
1. Nvidia's operating results are incredible
Founded in 1993, Nvidia is known for pioneering the graphics processing unit (GPU), a computer chip originally designed to render complex visuals and animations mainly for the video game industry. GPUs work through parallel processing, which involves computing multiple tasks simultaneously. This turned out to have massive applications in non-graphics-related tasks like generative AI because it helps train large language models (LLMs) on vast amounts of data.
Nvidia's early focus on video game hardware gave it a massive head start in what is shaping up to be a much greater long-term opportunity. And the company's results demonstrate this epic transformation.
Nvidia's third-quarter revenue jumped 206% year over year to $18.12 billion based on sales of its new AI-capable GPUs for enterprise clients (data centers). The data center segment now represents 80% of company sales, eclipsing the previously core gaming segment, which is now under 16% of its top line. AI chips are expensive, with Nvidia's flagship H100 retailing for $30,000. And this can mean better margins and more profits -- especially since demand currently outstrips supply.
Nvidia's third-quarter net income soared by over 1,000% to $9.24 billion, and the company boasts a net income margin of 51%, which is pretty impressive for a company that manufactures and sells physical products.
2. The AI market is big enough for competition
Rapid growth and abnormal profits attract competition like moths to a flame, and Nvidia's GPU business is no exception. The biggest threat may come from its oldest rival, Advanced Micro Devices, which is currently scaling up production of its M1300x family of chips, designed to rival Nvidia's H100 in AI model training and inference, which involves running the applications in real time after they have been trained.
Image source: Getty Images.
But while Nvidia will no longer be the only game in town, that doesn't mean it has lost its economic moat. While AMD's chips are said to match Nvidia's performance, they are far behind in hitting the market, with sales expected to scale up in 2024. By the time the M1300x becomes widely available, Nvidia has plenty of time to release even more advanced chips, maintaining the bleeding edge and the pricing power that comes with it.
With the AI chip market expected to reach $400 billion by 2027, there is plenty of room for both companies to share the massive opportunity.
3. Nvidia's valuation is still reasonable
After its meteoric rise in 2023, Nvidia's share price looks quite expensive on the surface. Its price-to-sales (P/S) multiple of 26 is 10 times higher than the S&P 500 average of 2.6. But that metric doesn't account for Nvidia's rapid growth rate or spectacular margins.
With a forward price-to-earnings (P/E) multiple of 24, Nvidia's stock is still relatively cheap compared to projected future profits. And that means investors still aren't too late to bet on its long-term AI potential.
Should you invest $1,000 in Nvidia right now?
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Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices 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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Shares of the tech giant soared a whopping 230% as investors piled in based on optimism that rising demand for its advanced chips would boost revenue and earnings. This turned out to have massive applications in non-graphics-related tasks like generative AI because it helps train large language models (LLMs) on vast amounts of data. Nvidia's early focus on video game hardware gave it a massive head start in what is shaping up to be a much greater long-term opportunity.
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Nvidia's third-quarter revenue jumped 206% year over year to $18.12 billion based on sales of its new AI-capable GPUs for enterprise clients (data centers). Nvidia's third-quarter net income soared by over 1,000% to $9.24 billion, and the company boasts a net income margin of 51%, which is pretty impressive for a company that manufactures and sells physical products. 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 operating results are incredible Founded in 1993, Nvidia is known for pioneering the graphics processing unit (GPU), a computer chip originally designed to render complex visuals and animations mainly for the video game industry. The biggest threat may come from its oldest rival, Advanced Micro Devices, which is currently scaling up production of its M1300x family of chips, designed to rival Nvidia's H100 in AI model training and inference, which involves running the applications in real time after they have been trained. 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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With the AI chip market expected to reach $400 billion by 2027, there is plenty of room for both companies to share the massive opportunity. Nvidia's valuation is still reasonable After its meteoric rise in 2023, Nvidia's share price looks quite expensive on the surface. 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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712342.0
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2023-12-12 00:00:00 UTC
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Reasons to Retain Inari Medical (NARI) in Your Portfolio Now
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https://www.nasdaq.com/articles/reasons-to-retain-inari-medical-nari-in-your-portfolio-now-0
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Inari Medical, Inc. NARI is well-poised for growth, backed by a huge market opportunity for products and its commitment to understand the venous system. However, its dependency on the adoption of products is concerning.
Shares of this currently Zacks Rank #3 (Hold) company have risen 4% year to date compared with the industry’s 1.4% growth. The S&P 500 Index has risen 23.1% in the same time frame.
NARI, with a market capitalization of $3.7 billion, is a commercial-stage medical device company. It seeks to develop products for treating and changing the lives of patients suffering from venous diseases.
Image Source: Zacks Investment Research
The company’s earnings yield of 0.1% compares favorably with the industry’s (7.8%). Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 82.16%.
What’s Driving NARI’s Performance?
Inari Medical is spearheading the creation and commercialization of devices that are purposefully built, keeping in mind the specific characteristics of the venous system, its diseases and unique clot morphology. The company’s in-depth knowledge of its target market and commitment to understand the venous system have allowed it to figure out the unmet needs of patients as well as physicians. This, in turn, has enabled NARI to quickly innovate and improve its products while updating its clinical and educational programs.
In November, NARI acquired LimFlow, a pioneer in limb salvage for patients with chronic limb-threatening ischemia (CLTI). The minimally-invasive LimFlow System is designed to bypass blocked arteries in the leg and deliver oxygenated blood back into the foot via the veins in no-option CLTI patients who are facing major amputation and have exhausted all other therapeutic options.
LimFlow recently received FDA’s approval for its Transcatheter Arterialization of Deep Veins system. The acquisition adds a highly differentiated growth platform to Inari Medical’s portfolio that is likely to provide multiple opportunities for expansion, including expansion in CLTI patient population.
In June, Inari Medical launched two new purpose-built products — the RevCore thrombectomy catheter and the Triever16 Curve catheter.
RevCore is currently the first mechanical thrombectomy device designed to address venous in-stent thrombosis. Triever16 Curve is the latest addition to NARI’s FlowTriever platform.
The latest launches are expected to significantly solidify the company’s foothold in the Venous Stent Thrombosis and Venous Thromboembolism (VTE) treatment space globally.
In May, NARI announced the planned enrollment of the PEERLESS II trial, its third randomized controlled trial (RCT) in VTE. PEERLESS II is a prospective, global, multi-center RCT, comparing the outcomes of intermediate-risk pulmonary embolism (PE) patients treated with the FlowTriever system versus anticoagulation alone. Strong procedural growth across both its product lines, ClotTriever and FlowTriever, continues to drive the company’s top line in the first half of 2023, a trend that is likely to be reflected in the second-half results.
Moreover, NARI has expanded its product portfolio with new launches this year. It continues to progress well with the launch of Protrieve and InThrill. Continued adoption of FlowSaver — a device designed to be used with the FlowTriever System to reduce blood loss — will boost European sales.
During the second quarter, the company launched two new products — RevCore and T16 Curve — targeting patients with venous thromboembolism. The launch of new products looks promising for NARI’s long-term growth.
The company reported total revenues of $126.4 million for the third quarter, indicating a 31.4% improvement year over year.It expanded its territories to more than 275 in 2022.
Inari Medical expects total revenues in the range of $490-$493 million for 2023, indicating growth of approximately 27.8-28.6% from the previous year’s reported actual.
What’s Weighing on the Stock?
Most of NARI’s product sales come from a limited number of hospitals. The company’s growth and profitability mainly depend on its ability to boost awareness of its products among physicians and patients. These also depend on how keen physicians and hospitals are to adopt its products and perform catheter-based thrombectomy procedures on patients suffering from venous thromboembolism.
Inari Medical’s inability to validate the benefits of its products and catheter-based thrombectomy procedures will result in limited adoption of the same. Moreover, it might not happen as quickly as expected. These factors, in unison, might negatively impact NARI’s business and financial condition.
Estimates Trend
The Zacks Consensus Estimate for the company’s revenues is pegged at $492.8 million for 2023, indicating a 28.5% increase from the previous year’s reported number. The bottom-line estimate is pinned at 8 cents, implying a 114.6% improvement from that recorded a year ago. The same has improved to 8 cents in 2023 from 4 cents in 2022 in the past 60 days.
Inari Medical, Inc. Price
Inari Medical, Inc. price | Inari Medical, Inc. 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.
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
DexCom, Inc. (DXCM) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Inari Medical, Inc. (NARI) : 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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Inari Medical is spearheading the creation and commercialization of devices that are purposefully built, keeping in mind the specific characteristics of the venous system, its diseases and unique clot morphology. The minimally-invasive LimFlow System is designed to bypass blocked arteries in the leg and deliver oxygenated blood back into the foot via the veins in no-option CLTI patients who are facing major amputation and have exhausted all other therapeutic options. 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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These also depend on how keen physicians and hospitals are to adopt its products and perform catheter-based thrombectomy procedures on patients suffering from venous thromboembolism. Inari Medical, Inc. Price Inari Medical, Inc. price | Inari Medical, Inc. 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 DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Inari Medical, Inc. (NARI) : Free Stock Analysis Report Biodesix, Inc. (BDSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Inari Medical, Inc. NARI is well-poised for growth, backed by a huge market opportunity for products and its commitment to understand the venous system. Inari Medical, Inc. Price Inari Medical, Inc. price | Inari Medical, Inc. 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 DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Inari Medical, Inc. (NARI) : Free Stock Analysis Report Biodesix, Inc. (BDSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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During the second quarter, the company launched two new products — RevCore and T16 Curve — targeting patients with venous thromboembolism. These also depend on how keen physicians and hospitals are to adopt its products and perform catheter-based thrombectomy procedures on patients suffering from venous thromboembolism. Inari Medical, Inc. Price Inari Medical, Inc. price | Inari Medical, Inc. Quote Stocks to Consider Some better-ranked stocks in the broader medical space are DexCom DXCM, HealthEquity, Inc. HQY and Biodesix BDSX.
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2023-12-12 00:00:00 UTC
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Baker Hughes (BKR) Appoints Georgia Magno as Chief Legal Officer
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https://www.nasdaq.com/articles/baker-hughes-bkr-appoints-georgia-magno-as-chief-legal-officer
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Baker Hughes Company (BKR), a leading energy technology company, appointed Georgia Magno as its chief legal officer, effective Jan 1, 2024. Magno, who brings 20 years of management and legal expertise to the role, will be tasked with overseeing the company’s legal and regulatory affairs, corporate governance and compliance functions.
In her most recent position, Magno served as the vice president and general counsel for Baker Hughes’ Industrial & Energy Technology business segment.
In a statement released by the company earlier this week, Magno's extensive experience and proven leadership abilities were highlighted by Lorenzo Simonelli, chairman and CEO of Baker Hughes. Simonelli stated that Magno’s appointment was an important step in the continued strategy to strengthen Baker Hughes’ growth within the energy and industrial markets.
Magno has been associated with Baker Hughes since 2010. She initially served as the general counsel for the global supply chain before assuming various legal roles across commercial, operational and product line organizations in multiple countries, including Italy and the United States. Prior to joining BKR, she gained international litigation experience with prestigious law firms like Cleary Gottlieb, Weil and Gotshal & Manges LLP.
Magno is a member of the New York Bar, holding a Master of Laws degree from Harvard Law School and a Juris Doctor from the University of Bologna. She was also a visiting researcher at the Wharton School in the University of Pennsylvania. Baker Hughes views Magno's appointment as integral to its broader mission.
Zacks Rank & Key Picks
Currently, Baker Hughes carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, EOG Resources, Inc. EOG and Liberty Energy Inc. LBRT. While Williams Companies sports a Zacks Rank #1 (Strong Buy), both EOG Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5 billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
EOG Resources is an energy exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites.
EOG’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.17%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
Zacks 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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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Baker Hughes Company (BKR) : 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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In a statement released by the company earlier this week, Magno's extensive experience and proven leadership abilities were highlighted by Lorenzo Simonelli, chairman and CEO of Baker Hughes. She initially served as the general counsel for the global supply chain before assuming various legal roles across commercial, operational and product line organizations in multiple countries, including Italy and the United States. 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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Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, EOG Resources, Inc. EOG and Liberty Energy Inc. LBRT. While Williams Companies sports a Zacks Rank #1 (Strong Buy), both EOG Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Baker Hughes Company (BKR) : 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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Baker Hughes Company (BKR), a leading energy technology company, appointed Georgia Magno as its chief legal officer, effective Jan 1, 2024. While Williams Companies sports a Zacks Rank #1 (Strong Buy), both EOG Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Baker Hughes Company (BKR) : 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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Magno has been associated with Baker Hughes since 2010. Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, EOG Resources, Inc. EOG and Liberty Energy Inc. LBRT. You can see the complete list of today’s Zacks #1 Rank stocks here.
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69a5662a-c9f6-47a1-9e7e-154120b15e70
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712344.0
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2023-12-12 00:00:00 UTC
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Zacks Industry Outlook Highlights Royal Caribbean Cruises, Live Nation Entertainment and AMC Entertainment Holdings
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-royal-caribbean-cruises-live-nation-entertainment-and-0
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For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Equity Research discusses Royal Caribbean Cruises Ltd. RCL, Live Nation Entertainment, Inc. LYV and AMC Entertainment Holdings, Inc. AMC.
Industry: Leisure & Recreation Services
Link: https://www.zacks.com/commentary/2197829/3-stocks-to-watch-from-leisure-recreation-services-industry
The Zacks Leisure and Recreation Services industry is benefiting from optimizing business processes, consistent strategic partnerships and digital initiatives. The robust demand for concerts, improving bookings for cruise operators and higher per capita spending at theme parks are supporting the industry. Industry players like Royal Caribbean Cruises Ltd., Live Nation Entertainment, Inc. and AMC Entertainment Holdings, Inc. are likely to gain in their respective fields owing to the factors mentioned above.
Industry Description
The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts.
Many companies are engaged in hospitality and related businesses. A few of the industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, highly dependent on business cycles, is driven by a healthy labor market, rising wages and a growing disposable income.
3 Trends Shaping the Leisure & Recreation Services Industry's Future
U.S. Economy Gradually Getting Back on Track: The Federal Reserve decided to keep interest rates unchanged, and Jerome Powell, the head of the U.S. central bank, mentioned that the unprecedented shift toward tighter monetary policy is probably finished. This comes as inflation is decreasing more rapidly than anticipated and the possibility of considering reductions in borrowing costs coming "into view."
Robust Demand Aids Cruise Operators: The cruise industry is benefiting from strong demand for cruising and accelerating booking volumes. The industry is benefiting from solid bookings concerning North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry. However, the cruise operators' operations are likely to be influenced by the uncertainties related to the Russian invasion of Ukraine. Geopolitical developments have pushed fuel curves higher.
Theme Park Operators & Live Entertainment Companies Bouncing Back: The theme park industry has been benefiting from robust demand. Theme park operators have been gaining from improving visitation. Consumer spending at theme parks continues to rise. Live entertainment firms have benefited from pent-up live event demand and robust ticket sales.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #90, which places it in the top 36% of 251 Zacks industries.
The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry's position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in the group's earnings growth potential. Since Sep 30, 2023, the industry's earnings estimates for 2023 have increased 11.1%.
Before we present a few stocks that investors can consider, let's analyze the industry's recent stock-market performance and valuation picture.
Industry Underperforms the S&P 500
The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite but has outperformed its sector in the past year. Stocks in the industry have gained 14.9% in the past year compared with the broader sector's increase of 13.5%. The S&P 500 has risen 19.7% in the said time frame.
Valuation
On the basis of the forward 12-month EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization), which is a commonly used multiple for valuing debt-laden leisure service stocks, the industry trades at 54.43X compared with the S&P 500's 19.8X and the sector's 13.09X. In the past five years, the industry has traded as high as 59.36X and as low as 6.20X, with the median being 9.48X.
3 Leisure and Recreation Services Stocks to Keep an Eye On
Royal Caribbean Cruises: Based in Miami and incorporated in 1985, Royal Caribbean Cruises is a cruise company. It has been benefiting from solid demand for cruising and acceleration in booking volumes. Also, the emphasis on strong pricing (on closer-in-demand) bodes well. The company stated that the momentum has continued into 2024, with booked load factors and rates surpassing those of all previous years. Given the full fleet resumption and load factors at high prices, it expects customer deposits to return to typical seasonality in the upcoming periods.
Shares of this Zacks Rank #1 (Strong Buy) company have surged 120.4% in the past year. In 2023, its sales and earnings are expected to witness growth of 57.7% and 187.9%, respectively, from the prior year's reported levels. You can see the complete list of today's Zacks #1 Rank stocks here.
Live Nation Entertainment: The company has been benefiting from pent-up demand for live events, robust ticket sales and the sponsorship and advertising business. Also, the emphasis on new client and venue additions bodes well. Given the strength in consumer demand and confirmed sponsorship activity (fully committed) at more than $1 billion in revenues, the momentum is likely to persist in the upcoming periods.
Shares of this Zacks Rank #1 company have gained 25.4% in the past year. For 2023, its sales and earnings are expected to grow 28.6% and 132.8%, respectively, from the prior year's reported levels.
AMC Entertainment: AMC Entertainment is benefiting from attendance growth. As the number and quality of movie titles from the company's studio partners are notably increasing, movie theatres are seen captivating audiences and driving attendance back to AMC theatres.
Shares of this Zacks Rank #3 (Hold) company have declined 87.8% in the past year. In fiscal 2023, its sales and earnings are expected to witness growth of 23% and 76%, year over year, respectively.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : 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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3 Trends Shaping the Leisure & Recreation Services Industry's Future U.S. Economy Gradually Getting Back on Track: The Federal Reserve decided to keep interest rates unchanged, and Jerome Powell, the head of the U.S. central bank, mentioned that the unprecedented shift toward tighter monetary policy is probably finished. Valuation On the basis of the forward 12-month EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization), which is a commonly used multiple for valuing debt-laden leisure service stocks, the industry trades at 54.43X compared with the S&P 500's 19.8X and the sector's 13.09X. 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.
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For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Equity Research discusses Royal Caribbean Cruises Ltd. RCL, Live Nation Entertainment, Inc. LYV and AMC Entertainment Holdings, Inc. AMC. Industry Description The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, theme park makers, resort operators and event organizers. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Industry Description The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, theme park makers, resort operators and event organizers. Zacks Industry Rank Indicates Bright Prospects The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. Industry Underperforms the S&P 500 The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite but has outperformed its sector in the past year.
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Industry Description The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, theme park makers, resort operators and event organizers. Shares of this Zacks Rank #1 company have gained 25.4% in the past year. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities.
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2023-12-12 00:00:00 UTC
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CEE MARKETS-Zloty firm as Poland closes in on accessing EU funds
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https://www.nasdaq.com/articles/cee-markets-zloty-firm-as-poland-closes-in-on-accessing-eu-funds
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By 1046 the Polish zloty EURPLN= was up 0.26% at 4.3040 per euro, resuming its ascent after pulling back from a more than 3-1/2 year high on Thursday. It was on track to resume a trend of weekly gains after a brief blip last week.
"The zloty is backed by solid fundamentals," ING BSK analysts wrote in a note.
"We expect an inflow of foreign capital (into Poland) and a decline in expectations for NBP rate cuts."
Earlier in December the National Bank of Poland (NBP) kept rates steady for a second month, citing uncertainty over the future direction of regulatory and fiscal policy after a coalition of pro-European Union parties won a majority in October's election.
Meanwhile, the Hungarian forint was down 0.4% at 381.30 per euro, correcting further from its December high reached on Wednesday on the back of Brussels saying it was restoring access to 10 billion euros of funding for Hungary.
"I would have expected a stronger impact on receiving 1/3 of the frozen EU funds," a Budapest-based trader said
"I think there is only one open question in the calendar left this year, and that's today's Fitch rating."
Fitch will announce its rating for Hungary later on Friday.
Elsewhere, the Czech crown slipped a fraction, trading down 0.05% at 24.4230, in the middle of its December range, heading into the final Czech National Bank (CNB) meeting of the year next week, at which markets see a chance policymakers could deliver the first interest rate cut since May 2020.
Central banker comments before the meeting have raised the prospect of a cut, with Vice-Governor Eva Zamrazilova quoted by Bloomberg as saying the December meeting was "50-50".
On Tuesday, rate setter Jan Prochazka told Reuters inflation risks that have prevented the Czech central bank from starting interest rate cuts have been gradually disappearing.
"The CNB pre-meeting interviews sounded more dovish than the CNB’s rhetoric in its November Minutes, which we believe makes a cut in the policy rate more likely in December," Citi said in a note.
According to a Prague trader, the crown has been "very sensitive to CNB comments over the last week or so, so just giving a picture of how nervous (the market) is."
On the equities front, shares in homebuilder Murapol MURP.WAclimbed 15% in its IPO on Warsaw's main market.
CEE MARKETS
SNAPSHOT
AT 1146 CET
CURRENCIES
Latest
Previous
Daily
Change
bid
close
change
in 2023
Czech crown
EURCZK=
24.4230
24.4120
-0.05%
-1.09%
Hungary forint
EURHUF=
381.3000
379.6500
-0.43%
+4.76%
Polish zloty
EURPLN=
4.3040
4.3150
+0.26%
+8.96%
Romanian leu
EURRON=
4.9700
4.9720
+0.04%
-0.55%
Serbian dinar
EURRSD=
117.0800
117.1800
+0.09%
+0.19%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Change
close
change
in 2023
Prague
.PX
1395.12
1388.5300
+0.47%
+16.09%
Budapest
.BUX
60785.80
60475.92
+0.51%
+38.80%
Warsaw
.WIG20
2359.34
2312.56
+2.02%
+31.66%
Bucharest
.BETI
15397.82
15284.66
+0.74%
+32.02%
Spread
Daily
vs Bund
change in
Czech Republic
spread
2-year
CZ2YT=RR
4.9010
0.1480
+239bps
+19bps
5-year
CZ5YT=RR
3.8320
-0.0430
+182bps
+3bps
10-year
CZ10YT=RR
3.9120
-0.0450
+187bps
+4bps
Poland
2-year
PL2YT=RR
4.9740
-0.0320
+246bps
+1bps
5-year
PL5YT=RR
4.8170
-0.0550
+280bps
+2bps
10-year
PL10YT=RR
5.0650
-0.1040
+303bps
-2bps
FORWARD
3x6
6x9
9x12
3M interbank
Czech Rep
CZKFRAPRIBOR=
6.13
4.97
3.93
7.00
Hungary
HUFFRABUBOR=
8.24
6.67
5.47
10.25
Poland
PLNFRAWIBOR=
5.51
5.00
4.50
5.86
Note: FRA quotes
are for ask prices
**************************************************************
($1 = 0.9122 euros)
(Reporting by Karol Badohal in Warsaw, Boldizsar Gyori in Budapest and Jason Hovet in Prague Editing by Mark Potter)
((karl.badohal@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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Earlier in December the National Bank of Poland (NBP) kept rates steady for a second month, citing uncertainty over the future direction of regulatory and fiscal policy after a coalition of pro-European Union parties won a majority in October's election. "I would have expected a stronger impact on receiving 1/3 of the frozen EU funds," a Budapest-based trader said "I think there is only one open question in the calendar left this year, and that's today's Fitch rating." 5.51 5.00 4.50 5.86 Note: FRA quotes are for ask prices ************************************************************** ($1 = 0.9122 euros) (Reporting by Karol Badohal in Warsaw, Boldizsar Gyori in Budapest and Jason Hovet in Prague Editing by Mark Potter) ((karl.badohal@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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Elsewhere, the Czech crown slipped a fraction, trading down 0.05% at 24.4230, in the middle of its December range, heading into the final Czech National Bank (CNB) meeting of the year next week, at which markets see a chance policymakers could deliver the first interest rate cut since May 2020. Latest Previous Daily Change bid close change in 2023 Czech crown Latest Previous Daily Change close change in 2023 Prague
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Elsewhere, the Czech crown slipped a fraction, trading down 0.05% at 24.4230, in the middle of its December range, heading into the final Czech National Bank (CNB) meeting of the year next week, at which markets see a chance policymakers could deliver the first interest rate cut since May 2020. On Tuesday, rate setter Jan Prochazka told Reuters inflation risks that have prevented the Czech central bank from starting interest rate cuts have been gradually disappearing. 5.51 5.00 4.50 5.86 Note: FRA quotes are for ask prices ************************************************************** ($1 = 0.9122 euros) (Reporting by Karol Badohal in Warsaw, Boldizsar Gyori in Budapest and Jason Hovet in Prague Editing by Mark Potter) ((karl.badohal@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By 1046 the Polish zloty EURPLN= was up 0.26% at 4.3040 per euro, resuming its ascent after pulling back from a more than 3-1/2 year high on Thursday. "We expect an inflow of foreign capital (into Poland) and a decline in expectations for NBP rate cuts." Elsewhere, the Czech crown slipped a fraction, trading down 0.05% at 24.4230, in the middle of its December range, heading into the final Czech National Bank (CNB) meeting of the year next week, at which markets see a chance policymakers could deliver the first interest rate cut since May 2020.
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2023-12-12 00:00:00 UTC
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Amazon Stock Soared 75% in 2023. Should Investors Avoid It in 2024?
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https://www.nasdaq.com/articles/amazon-stock-soared-75-in-2023.-should-investors-avoid-it-in-2024
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Fool.com contributor Parkev Tatevosian reviews how Amazon (NASDAQ: AMZN) drove profits in 2023 and answers if he thinks Amazon stock is a buy for long-term investors in 2024.
*Stock prices used were the afternoon prices of Dec. 12, 2023. The video was published on Dec. 14, 2023.
Should you invest $1,000 in Amazon right now?
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*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. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
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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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. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 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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Fool.com contributor Parkev Tatevosian reviews how Amazon (NASDAQ: AMZN) drove profits in 2023 and answers if he thinks Amazon stock is a buy for long-term investors in 2024. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends Amazon.
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712347.0
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2023-12-12 00:00:00 UTC
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Better Stock: Nike or On Holding?
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DCOMP
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https://www.nasdaq.com/articles/better-stock%3A-nike-or-on-holding
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Nike (NYSE: NKE) is one of the best-known athletic companies in the world and has been a huge winner for investors. But On Holding (NYSE: ONON) is growing faster and has better margins.
In this video, Travis Hoium compares the two companies and shows why On Holding may be the best buy in athletics right now.
*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 On Holding right now?
Before you buy stock in On Holding, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and On Holding wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Travis Hoium has positions in On Holding. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends the following options: long January 2025 $47.50 calls on Nike. 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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Nike (NYSE: NKE) is one of the best-known athletic companies in the world and has been a huge winner for investors. In this video, Travis Hoium compares the two companies and shows why On Holding may be the best buy in athletics right now. 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 On Holding, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and On Holding wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in On Holding. The Motley Fool has positions in and recommends Nike.
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Before you buy stock in On Holding, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and On Holding wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in On Holding.
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In this video, Travis Hoium compares the two companies and shows why On Holding may be the best buy in athletics right now. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in On Holding. The Motley Fool has positions in and recommends Nike.
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581a7fe0-3db7-415a-b784-1915c5430d64
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712348.0
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2023-12-12 00:00:00 UTC
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Brazil's Infracommerce raises $81.2 mln in share offering
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https://www.nasdaq.com/articles/brazils-infracommerce-raises-%2481.2-mln-in-share-offering
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Adds details on offering in paragraphs 3-5
SAO PAULO, Dec 15 (Reuters) - Brazil's e-commerce platform Infracommerce IFCM3.SA said on Friday it raised 400 million reais ($81.22 million) in a share offering aimed at strengthening its capital structure and raising money to pay for recent acquisitions.
The offering was priced at 1.60 reais per share, Infracommerce said in a securities filing, which implies a 5.3% discount over the firm's Thursday closing of 1.69 reais per share.
Infracommerce, which sells technological systems to e-commerce firms, sold 250 million shares in the offering, including a 33.33% overallotment as demand was larger than the 187.5 million shares initially offered.
Investors including investment firms Patria PAX.O and Compass Group participated in the offering, according to Infracommerce.
Itau BBA, Santander Brasil, UBS BB, BTG Pactual and ABC Brasil were the banks running the deal.
($1 = 4.9246 reais)
(Reporting by Andre Romani and Gabriel Araujo; editing by Jason Neely and Paul Simao)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))
The views and 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 offering in paragraphs 3-5 SAO PAULO, Dec 15 (Reuters) - Brazil's e-commerce platform Infracommerce IFCM3.SA said on Friday it raised 400 million reais ($81.22 million) in a share offering aimed at strengthening its capital structure and raising money to pay for recent acquisitions. Investors including investment firms Patria PAX.O and Compass Group participated in the offering, according to Infracommerce. ($1 = 4.9246 reais) (Reporting by Andre Romani and Gabriel Araujo; editing by Jason Neely and Paul Simao) ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;)) The views and 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 offering in paragraphs 3-5 SAO PAULO, Dec 15 (Reuters) - Brazil's e-commerce platform Infracommerce IFCM3.SA said on Friday it raised 400 million reais ($81.22 million) in a share offering aimed at strengthening its capital structure and raising money to pay for recent acquisitions. The offering was priced at 1.60 reais per share, Infracommerce said in a securities filing, which implies a 5.3% discount over the firm's Thursday closing of 1.69 reais per share. Infracommerce, which sells technological systems to e-commerce firms, sold 250 million shares in the offering, including a 33.33% overallotment as demand was larger than the 187.5 million shares initially offered.
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Adds details on offering in paragraphs 3-5 SAO PAULO, Dec 15 (Reuters) - Brazil's e-commerce platform Infracommerce IFCM3.SA said on Friday it raised 400 million reais ($81.22 million) in a share offering aimed at strengthening its capital structure and raising money to pay for recent acquisitions. The offering was priced at 1.60 reais per share, Infracommerce said in a securities filing, which implies a 5.3% discount over the firm's Thursday closing of 1.69 reais per share. Infracommerce, which sells technological systems to e-commerce firms, sold 250 million shares in the offering, including a 33.33% overallotment as demand was larger than the 187.5 million shares initially offered.
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Adds details on offering in paragraphs 3-5 SAO PAULO, Dec 15 (Reuters) - Brazil's e-commerce platform Infracommerce IFCM3.SA said on Friday it raised 400 million reais ($81.22 million) in a share offering aimed at strengthening its capital structure and raising money to pay for recent acquisitions. The offering was priced at 1.60 reais per share, Infracommerce said in a securities filing, which implies a 5.3% discount over the firm's Thursday closing of 1.69 reais per share. Infracommerce, which sells technological systems to e-commerce firms, sold 250 million shares in the offering, including a 33.33% overallotment as demand was larger than the 187.5 million shares initially offered.
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712349.0
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2023-12-12 00:00:00 UTC
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The Zacks Analyst Blog Highlights Invitation Homes, Choice Hotels International, Zoetis and Owens Corning
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-invitation-homes-choice-hotels-international-zoetis-and
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For Immediate Release
Chicago, IL – December 12, 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: Invitation Homes Inc. INVH, Choice Hotels International, Inc. CHH, Zoetis Inc. ZTS and Owens Corning OC.
Here are highlights from Monday’s Analyst Blog:
4 Stocks to Watch That Recently Declared Dividend Hikes
Wall Street has been on a rally, with November turning out to be the best month in more than a year. The positive sentiment has continued into December as inflation continues to decline. The Dow, the S&P 500 and the Nasdaq have returned 9.4%, 19.9% and 37.6%, respectively, on a year-to-date basis.
Inflation eased further in October. Personal consumption expenditure (PCE), the Fed's favorite inflation measure, was unchanged in October, while the core PCE index increased a meager 0.2%. Year over year, core PCE, which excludes the volatile food and energy prices, rose 3.5% in October compared to a rise of 3.7% in September.
Cooling inflation has raised hopes that the Federal Reserve may be done with its monetary tightening policy. This has seen expectations among market participants soar as they believe that the Fed may not go for another interest rate hike in its December policy meeting.
This has seen consumer confidence jumping to 102 in November, well above October's downwardly revised reading of 99.1.
Market participants now believe that the Fed might start cutting rates as early as May instead of the earlier forecast of September.
However, the Federal Reserve remains hawkish and has said that it is open to more interest rate hikes if required as inflation remains way above its 2% target.
Also, geopolitical tensions, particularly the ongoing conflict between Israel and the Palestine-based militant group Hamas, have been impacting the global supply chain, which might impact corporate performance.
Stocks in Focus
In light of this situation, investors looking to safeguard their portfolios may find dividend-yielding stocks an excellent choice. We suggest exploring stocks that have recently increased their dividend payments.
Four such stocks are Invitation Homes Inc., Choice Hotels International, Inc., Zoetis Inc. and Owens Corning.
Invitation Homes Inc. provides real estate services. INVH focuses on owning, renovating, leasing and operating single-family residential properties primarily in the United States. Invitation Homes has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Dec 8, Invitation Homesdeclared that its shareholders would receive a dividend of $0.28 a share on Jan 19, 2024. INVH has a dividend yield of 3.14%. Over the past five years, Invitation Homeshas increased its dividend five times, and its payout ratio at present sits at 59% of earnings.CheckInvitation Homes' dividend history here.
Choice Hotels International, Inc. is one of the largest hotel franchisors globally. The CHH hotel chain is spread across 45 countries and territories internationally and is present in 50 states domestically and in the District of Columbia.
On Dec 7, Choice Hotels Internationalannounced that its shareholders would receive a dividend of $0.29 a share on Jan 17, 2024. CHH has a dividend yield of 1.02%. Over the past five years, Choice Hotels Internationalhas increased its dividend three times, and its payout ratio at present sits at 19% of earnings. CheckChoice Hotels International's dividend history here.
Zoetis Inc. is a leader in the animal health space with a focus on both livestock and companion animals in seven major product categories: vaccines, anti-infectives, parasiticides, dermatology, other pharmaceutical products, medicated feed additives and animal health diagnostics. ZTS has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).
On Dec 7, Zoetisdeclared that its shareholders would receive a dividend of $0.43 a share on Mar 1, 2024. ZTS has a dividend yield of 0.81%. Over the past five years, Zoetishas increased its dividend five times, and its payout ratio at present sits at 29% of earnings. CheckZoetis' dividend history here.
Owens Corning is a world leader in building materials systems and composite solutions. OC's products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications.
On Dec 7, Zoetis announced that its shareholders would receive a dividend of $0.60 a share on Jan 19, 2024. OC has a dividend yield of 1.45%. Over the past five years, Owens Corning has increased its dividend five times, and its payout ratio at present sits at 15% of earnings. CheckOwens Corning's dividend history here.
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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.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
Zoetis Inc. (ZTS) : 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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Stocks recently featured in the blog include: Invitation Homes Inc. INVH, Choice Hotels International, Inc. CHH, Zoetis Inc. ZTS and Owens Corning OC. Here are highlights from Monday’s Analyst Blog: 4 Stocks to Watch That Recently Declared Dividend Hikes Wall Street has been on a rally, with November turning out to be the best month in more than a year. OC's products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications.
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Stocks recently featured in the blog include: Invitation Homes Inc. INVH, Choice Hotels International, Inc. CHH, Zoetis Inc. ZTS and Owens Corning OC. Over the past five years, Invitation Homeshas increased its dividend five times, and its payout ratio at present sits at 59% of earnings.CheckInvitation Homes' dividend history here. Click to get this free report Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report Owens Corning Inc (OC) : Free Stock Analysis Report Zoetis Inc. (ZTS) : Free Stock Analysis Report Invitation Home (INVH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include: Invitation Homes Inc. INVH, Choice Hotels International, Inc. CHH, Zoetis Inc. ZTS and Owens Corning OC. Over the past five years, Invitation Homeshas increased its dividend five times, and its payout ratio at present sits at 59% of earnings.CheckInvitation Homes' dividend history here. Click to get this free report Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report Owens Corning Inc (OC) : Free Stock Analysis Report Zoetis Inc. (ZTS) : Free Stock Analysis Report Invitation Home (INVH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include: Invitation Homes Inc. INVH, Choice Hotels International, Inc. CHH, Zoetis Inc. ZTS and Owens Corning OC. Inflation eased further in October. Four such stocks are Invitation Homes Inc., Choice Hotels International, Inc., Zoetis Inc. and Owens Corning.
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2023-12-12 00:00:00 UTC
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3 Auto Retailers to Watch Despite Subdued Industry Prospects
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https://www.nasdaq.com/articles/3-auto-retailers-to-watch-despite-subdued-industry-prospects
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The Zacks Auto Retail and Whole Sales industry’s prospects look muted amid concerns related to the slowing growth rate of new vehicle sales. Also, while auto loan rates are declining, they are still quite high, causing potential buyers to defer purchases. Although enticing incentives are providing some relief to consumers, they are eroding retailers’ profits. Amid these complex industry dynamics, auto retailers like Lithia Motors LAD, AutoNation AN and Group 1 Automotive GPI seem better equipped to navigate the challenges.
Industry Overview
The automotive sector’s performance depends on its retail and wholesale network. Through dealership and retail chains, companies in the Zacks Auto Retail and Whole Sales industry carry out several tasks. These include the sale of new and used vehicles, light trucks as well as auto parts, execution of repair and maintenance services along with the arrangement of vehicle financing. The industry, being consumer cyclical, is dependent on business cycles and economic conditions. Consumers and businesses spend more on big-ticket items when they have higher disposable income. On the contrary, when income is tight, discretionary expenses are the first to be slashed. Importantly, the coronavirus pandemic has brought considerable changes in the operating environment, with the industry laying more emphasis on e-commerce retailing, and the trend is here to stay.
Key Trends Defining the Industry's Prospects
New Vehicle Sales Growth Slows Down: In November, auto sales volume witnessed a modest uptick compared to October. However, the growth was subdued, failing to surpass the sales pace observed in September and October. This signals a slowdown in the growth of new vehicle sales. Although vehicle prices are declining and auto loan rates have retreated from recent peaks, they continue to present a hurdle, deterring some potential buyers from purchasing these big-ticket items. These factors indicate a complex landscape for the auto retail sector, where despite improvements, such as the normalization of inventory levels, the slowing growth rate of new vehicle sales and financing constraints pose challenges to industry players.
High Incentives Squeezing Retailers’ Margins: In November 2023, the U.S. new vehicle average transaction price experienced marginal growth month over month but declined 1.5% year over year, reaching $48,247, according to Kelley Blue Book. This marks the third consecutive month of year-over-year declines in transaction prices. Notably, new vehicle sales incentives surpassed 5% of the average transaction price for the first time since September 2021, climbing 136% year over year. This surge in incentives reflects a shift toward a buyer's market, placing increased pressure on retailers. While consumers may benefit from lower vehicle prices, dealers are grappling with squeezed profit margins. As inventory levels normalize and incentives rise to stimulate sales, dealers are experiencing the financial impact of heightened downward price pressure in the competitive auto retail landscape.
Digitization Ramp-Up is Here to Stay: Since the pandemic, digitization has been in high gear. Online traffic is on the rise, with auto retailers ramping up digital capabilities to make deals with customers and arrange for home deliveries of vehicles. Initiatives like ship-to-home next day, curbside pick-up option, and buy online, pick-up in stores options are picking pace, driving additional traffic to companies’ online sites. Enhanced digital solutions are providing shoppers with a truly comprehensive and personal experience. With digitization gathering steam, auto retail companies are poised to reach new heights. But achieving that requires a delicate balance between digital innovation, cost management, operational optimization and an unwavering focus on enhancing the customer experience.
Zacks Industry Rank Indicates Dim Outlook
The Zacks Auto Retail & Whole Sales industry is within the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #214, which places it in the bottom 15% of around 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence in this group’s earnings growth potential. Since Dec 31, 2022, the Zacks Consensus Estimate for the industry’s 2023 earnings has declined 18.7%.
Despite the gloomy industry outlook, there are a few stocks worth watching. But before we present those 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 Tops Sector and S&P 500
The Zacks Auto Retail & Whole Sales industry has outperformed the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year. The industry has gained 27.1% over this period compared with the sector and S&P 500’s growth of 22.8% and 22.5%, respectively.
One-Year Price Performance
Industry's Current Valuation
Since automotive companies are debt-laden, it makes sense to value them based on the enterprise value/earnings before interest tax depreciation and amortization (EV/EBITDA) ratio.
On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 6.84X compared with the S&P 500’s 13.61X and the sector’s trailing 12-month EV/EBITDA of 14X.
Over the past five years, the industry has traded as high as 10.71X, as low as 4.35X and at a median of 6.77X, as the chart below shows.
EV/EBITDA Ratio (Past 5 Years)
3 Auto Retailers to Keep a Tab on
Lithia: Its diversified product mix and multiple streams of income reduce its risk profile and position it for long-term top- and bottom-line growth. Enhanced digital solutions — including the Driveway e-commerce program — are helping LAD to further boost profitability and market presence. Strategic buyouts are helping the auto retailer increase its market share and solidify its portfolio. Since launching its five-year plan in mid-2020, Lithia has acquired roughly $17.5 billion in annualized revenues, representing 87.5% of the total $20 billion originally targeted by 2025. Robust cash flows and investor-friendly moves of the firm are driving shareholders’ confidence.
Lithia carries a Zacks Rank #3 (Hold) and has a Value Score of B. The Zacks Consensus Estimate for LAD’s 2024 sales and earnings implies growth of 9.5% and 2.3%, respectively.
Price & Consensus: LAD
AutoNation:It is one of the largest automotive retailers in the United States. Its diversified product mix and multiple streams of income reduce risk profile and augur well for sales growth. Strong footprint, large dealer network and aggressive store expansion efforts along with brand extension strategy and alliances are praiseworthy. With the launch of its digital platform AutoNation Express, the company has stepped up its digitization game. Increased focus on cost discipline is anticipated to aid margins. The firm is committed to shareholder value maximization, with a robust buyback program in place.
AutoNation currently carries a Zacks Rank #3 and has a Value Score of A. The Zacks Consensus Estimate for its 2024 EPS has moved north by 14 cents over the past 30 days. AutoNation managed to pull off an earnings beat in the last four quarters, with the average surprise being 6.6%.
Price & Consensus: AN
Group 1: It is one of the leading automotive retailers in the world, with operations primarily located in the United States and the UK. Group 1’s acquisitions of dealerships and franchises to expand and optimize its portfolio are fueling growth. The company has acquired revenues of more than $1 billion this year. GPI’s diversified product mix and omnichannel efforts bode well. The AcceleRide platform, its online retailing initiative, active at most of the firm’s U.S. dealerships, allows the company to enjoy higher productivity. Group 1’s investor-friendly moves instill optimism.
Group 1 carries a Zacks Rank #3 and has a Value Score of A. The Zacks Consensus Estimate for GPI’s 2023 sales implies growth of 9.5%. The consensus mark for 2023 and 2024 EPS has moved north by 23 cents and 3 cents, respectively, in the past 30 days. The company surpassed earnings estimates in the last four quarters, the average being 7.3%.
Price & Consensus: GPI
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Lithia Motors, Inc. (LAD) : Free Stock Analysis Report
AutoNation, Inc. (AN) : Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These factors indicate a complex landscape for the auto retail sector, where despite improvements, such as the normalization of inventory levels, the slowing growth rate of new vehicle sales and financing constraints pose challenges to industry players. As inventory levels normalize and incentives rise to stimulate sales, dealers are experiencing the financial impact of heightened downward price pressure in the competitive auto retail landscape. EV/EBITDA Ratio (Past 5 Years) 3 Auto Retailers to Keep a Tab on Lithia: Its diversified product mix and multiple streams of income reduce its risk profile and position it for long-term top- and bottom-line growth.
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High Incentives Squeezing Retailers’ Margins: In November 2023, the U.S. new vehicle average transaction price experienced marginal growth month over month but declined 1.5% year over year, reaching $48,247, according to Kelley Blue Book. Initiatives like ship-to-home next day, curbside pick-up option, and buy online, pick-up in stores options are picking pace, driving additional traffic to companies’ online sites. Click to get this free report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Industry Rank Indicates Dim Outlook The Zacks Auto Retail & Whole Sales industry is within the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #214, which places it in the bottom 15% of around 250 Zacks industries. Industry Tops Sector and S&P 500 The Zacks Auto Retail & Whole Sales industry has outperformed the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year.
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Zacks Industry Rank Indicates Dim Outlook The Zacks Auto Retail & Whole Sales industry is within the broader Zacks Auto-Tires-Trucks sector. But before we present those 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 Tops Sector and S&P 500 The Zacks Auto Retail & Whole Sales industry has outperformed the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year.
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2023-12-12 00:00:00 UTC
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Do Options Traders Know Something About Canada Goose (GOOS) Stock We Don't?
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-canada-goose-goos-stock-we-dont
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Investors in Canada Goose Holdings Inc. GOOS 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 Canada Goose shares, but what is the fundamental picture for the company? Currently, Canada Goose is a Zacks Rank #3 (Hold) in the Retail - Apparel and Shoes industry that ranks in the Bottom 40% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.42 per share to $1.03 in that period.
Given the way analysts feel about Canada Goose 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 >>
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Canada Goose Holdings Inc. (GOOS) : 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 in Canada Goose Holdings Inc. GOOS need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Clearly, options traders are pricing in a big move for Canada Goose shares, but what is the fundamental picture for the company? Click to get this free report Canada Goose Holdings Inc. (GOOS) : 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. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Canada Goose right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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2023-12-12 00:00:00 UTC
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The Zacks Analyst Blog Highlights Everest Group, Comcast, 3M, Molson Coors Beverage and DaVita
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For Immediate Release
Chicago, IL – December 12, 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: Everest Group Ltd. EG, Comcast Corp. CMCSA, 3M Co. MMM, Molson Coors Beverage Co. TAP and DaVita Inc. DVA.
Here are highlights from Monday’s Analyst Blog:
5 Undervalued Stocks in the S&P 500 ETF to Buy for 2024
After several twists and turns, the S&P 500 has hit a series of new 2023 highs lately, driven by the optimism that the Fed is done with interest rate hikes. The benchmark has registered the longest streak of weekly gains since November 2019, closing at the highest level since March 2022. The solid trend is likely to continue in 2024, with many analysts turning bullish on the benchmark.
The S&P 500 has gained more than 20% so far this year but is shy of 4% from its record high in late 2021. SPDR S&P 500 ETF Trust, the proxy version of the S&P 500 Index, has risen about 21% this year. Though most of the stocks in the ETF have returned handsomely, many are undervalued, as reflected in their lower P/E ratio than industry peers. The fund has good potential for the next year. The constituent stocks have a strong Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of B or better, suggesting their outperformance in the months to come.
These include Everest Group Ltd., Comcast Corp., 3M Co., Molson Coors Beverage Co. and DaVita Inc..
According to Bloomberg's latest Markets Live Pulse survey, a median of 518 respondents expects the S&P 500 to climb to 4,808 points next year, outpacing its previous closing peak of 4,797 hit in January 2022.
Fundstrat Tom Lee, who has been one of the most persistently bullish forecasters on Wall Street this year, expects that stocks will surge to a new all-time high in 2024 as the Fed shifts to a less restrictive monetary policy. He anticipates that the S&P 500 could soar to 5,200 by the end of 2024, marking a 13% increase from its current level. This optimism is partly based on the expectation that the Federal Reserve will cut interest rates next year as inflation eases. Rates, which have risen to a range of 5.25%-5.5%, could potentially drop to 3.2%-3.5% (read: What Lies Ahead of S&P 500 ETFs in 2024?).
Tom Lee said that narrowing credit spreads and a rally in high-yield bond prices suggest an ongoing liquidity rally. Despite significant withdrawals from stocks this year, cyclical stocks, bank stocks and small-cap stocks have shown an upward trend, indicating that the market is in a state of expansion, supporting the uptrend in equities.
Other Wall Street forecasters are also optimistic, with the U.S. avoiding a recession and inflation cooling. Major financial institutions like Bank of America, Deutsche Bank and Société Générale predict that the S&P 500 could hit new highs in 2024.
After the astounding surge of the "Magnificent Seven" stocks, the rally has been broadening out in recent weeks. As more underperforming members of the S&P 500 catch up, the index should continue to climb, even if the rise in the Magnificent Seven stalls out. Per a strategist at Bank of America, only about 24% of the stocks in the S&P 500 are trading within 10% of their all-time highs. This is notably lower than the historical average of 28%. This suggests that many stocks in the index may be undervalued and have the potential to rise toward their peak values.
Let's take a closer look at the fundamentals of SPY.
SPY in Focus
SPDR S&P 500 ETF Trust holds 503 stocks in its basket, with each accounting for no more than 7.3% of the assets. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors with information technology, financials, healthcare and consumer discretionary accounting for a double-digit allocation each. SPDR S&P 500 ETF Trust has an AUM of $442 billion and charges 9 bps in fees per year. It trades in 73 million shares per day on average and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (see: all the Large Cap Blend ETFs here).
Below we have highlighted the abovementioned five best-performing stocks in the ETF.
Best-Performing Stocks of SPY
Everest Group is a property and casualty insurer and reinsurer in all states, the District of Columbia, Puerto Rico and Guam. It underwrites property and casualty reinsurance for insurance and reinsurance companies in the United States and international markets. Everest Group saw solid earnings estimate revision of $2.54 over the past 30 days for the next year with an estimated growth rate of 11%.
Everest Group has a P/E ratio of 6.92 versus the industry average of 9.56. It sports a Zacks Rank #1 and has a VGM Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Comcast is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal and Sky. It saw positive earnings estimates of a couple of cents for the next year over the past 30 days. It has an estimated earnings growth rate of 9.98%.
Comcast has a P/E ratio of 10.71 versus the industry average of 12.55. It has a Zacks Rank #2 and a VGM Score of A.
3M Company provides diversified technology services in the United States and internationally. The stock saw a solid earnings estimate revision of 7 cents over the past 30 days for the next year, with an estimated growth rate of 8.76%.
3M Company has a P/E ratio of 11.33, against the industry average of 17.10. It has a Zacks Rank #2 and a VGM Score of B (read: S&P 500 Equal Weight ETF Sees Record Inflows in 2023).
Molson Coors, previously known as Molson Coors Brewing Company, was formed by the merger of Molson Inc. and Adolph Coors Co. in February 2005. The global manufacturer and seller of beer and other beverage products has an impressive diverse portfolio of owned and partner brands. Molson Coors saw a positive earnings estimate revision of a penny over the past 30 days for the next year and has an estimated earnings growth rate of 2.59%.
Molson Coors has a P/E ratio of 11.81 versus the industry average of 17.84. It has a Zacks Rank #1 and a VGM Score of B.
DaVita is a leading provider of dialysis services to patients suffering from chronic kidney failure, also known as end-stage renal disease, in the United States. The company operates kidney dialysis centers and provides related medical services, primarily in dialysis centers and in contracted hospitals across the United States. DaVita saw a solid earnings estimate revision of 30 cents over the past 30 days for the next year and has an estimated earnings growth rate of 4.43%.
DaVita has a P/E ratio of 13.33 versus the industry average of 19.84. It sports a Zacks Rank #1 and has a VGM Score of B.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
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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.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are highlights from Monday’s Analyst Blog: 5 Undervalued Stocks in the S&P 500 ETF to Buy for 2024 After several twists and turns, the S&P 500 has hit a series of new 2023 highs lately, driven by the optimism that the Fed is done with interest rate hikes. Fundstrat Tom Lee, who has been one of the most persistently bullish forecasters on Wall Street this year, expects that stocks will surge to a new all-time high in 2024 as the Fed shifts to a less restrictive monetary policy. It has a Zacks Rank #1 and a VGM Score of B. DaVita is a leading provider of dialysis services to patients suffering from chronic kidney failure, also known as end-stage renal disease, in the United States.
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Stocks recently featured in the blog include: Everest Group Ltd. EG, Comcast Corp. CMCSA, 3M Co. MMM, Molson Coors Beverage Co. These include Everest Group Ltd., Comcast Corp., 3M Co., Molson Coors Beverage Co. and DaVita Inc.. Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Despite significant withdrawals from stocks this year, cyclical stocks, bank stocks and small-cap stocks have shown an upward trend, indicating that the market is in a state of expansion, supporting the uptrend in equities. The stock saw a solid earnings estimate revision of 7 cents over the past 30 days for the next year, with an estimated growth rate of 8.76%. Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Though most of the stocks in the ETF have returned handsomely, many are undervalued, as reflected in their lower P/E ratio than industry peers. Zacks Investment Research has just released an urgent special report to help you bank on this trend. Want the latest recommendations from Zacks Investment Research?
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In Memory of a Legend: 7 Stocks That Charlie Munger Loved
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shortly before he died last month, Charlie Munger told CNBC, “My game in life was always to avoid all standard ways of failing […] I’ve avoided a lot because I’m so cautious.”
Caution drove much of his investment strategy, which informed his personal stakes. It also drove his decision-making as part of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). Still, despite the cautious attitude, Charlie Munger gambled on a handful of moonshot stocks. Some of them paid off, while some didn’t. But remember, you often learn more from examining losers than you do winners. Charlie Munger remained transparent about those losers. That demonstrates the refreshing honesty and transparency that Munger exemplified.
You can learn a lot about investing by examining how legendary investors allocate capital. Munger is decidedly one of the greats. Luckily, investors can easily find a wealth of resources, interviews, and articles where he happily details the why and how behind his decisions. These are just a few snippets from his lengthy notes and talks. Still, each offers massive insight into Charlie Munger’s stock picks.
BYD Company (BYDDY)
Source: shutterstock.com/JLStock
It’s tough to find a stock Charlie Munger loved more than BYD Company (OTCMKTS:BYDDY) – literally. During his 2023 Daily Journal Corporation (NASDAQ:DJCO) meeting (Daily Journal is Munger’s “other” holding company), he told investors, “I would say that I’ve never helped do anything at Berkshire that was as good as BYD — and I only did it once.”
But what made Munger so bullish on this electric vehicle (EV) company, especially compared to a homegrown competitor like Tesla (NASDAQ:TSLA)? Most of Munger’s sentiment comes from his focus on China as an emerging investment hub. He told investors that, specifically compared to Tesla, “We’re direct competitors. BYD is so much ahead of Tesla in China, it’s almost ridiculous.”
Munger did note that, at the time of the meeting, BYD was a pricy stock trading at 50x earnings. Since then, BYD’s per-share pricing dipped substantially and currently trades at 20x earnings. Munger would probably call this stock a Buy at that valuation. If you didn’t know, note that BYDDY is an American Depository Receipt (ADR) stock. That means that it’s structured somewhat differently than standard stocks and introduces additional risk, including exchange rate and political risk.
Costco (COST)
Source: Shutterstock
Munger would probably call Costco (NASDAQ:COST) his second favorite stock, considering his enthusiastic endorsement in the same February shareholder meeting. He called Costco “a perfect damn company [with] a marvelous future” and “a wonderful culture […] run by wonderful people.”
Munger’s stake in Costco reflected his love for the stock, and he owned the second-largest individual position in the company when he died. Like his investment strategy, Munger’s thesis for Costco’s strength and durability focused on its value. In fact, he thought that – from a value perspective – Costco’s ongoing entry into eCommerce posed a threat to online retail juggernaut Amazon (NASDAQ:AMZN).
Munger didn’t live to see Costco unseat the eComm giant. But the thesis holds true, particularly as strained household economics make value a core consumer buying focus. Despite stakeholder activism, Costco recognizes that fact, and the company is even stalling membership fee hikes in light of inflationary pressure.
Wells Fargo (WFC)
Source: shutterstock.com/marozhka studio
Wells Fargo (NYSE:WFC) represented a splinter between Warren Buffet and Charlie Munger, as Berkshire Hathaway slashed (and eventually exited) its position at the same time Munger’s Daily Journal Corporation kept holding. Of course, in a 2021 Daily Journal meeting, Munger reminded shareholders that he and Buffett were allowed to have differences of opinion and exercise those opinions through investments.
Munger pointed to two divergent points that fed his preference for WFC compared to Buffett: tax considerations and fallout from Wells Fargo’s 2016 cross-selling scandal. He didn’t dive deeply into his tax strategy but expounded upon his bank stock thesis. He summed up his outlook quickly, saying “I think I’m a little more lenient. I expect less out of bankers than [Buffett] does.”
While that isn’t too reassuring, he did explain further by discussing how banks are tough to run, and short-term earnings emphasis can cloud executives’ judgement and impact long-term strategic vision. Since Munger made those remarks, shares in WFC nearly doubled – indicating he made the right call by holding when Buffett sold.
Bank of America (BAC)
Source: FabrikaSimf / Shutterstock
Bank of America (NYSE:BAC) is Daily Journal’s largest holding (as of September 30th), showing that this bank stock was easily Charlie Munger’s favorite. In the 2021 meeting, he told shareholders he thinks “that a properly run bank is a great contributor to civilization.” And Bank of America is one of the paragons of well-run banks.
Across the spectrum of profitable banking services – investment banking, credit cards, and retail and commercial banking – BAC stands within the top five nationally for each. Higher rates put downward pressure on BAC, as they did for all bank stocks. But Bank of America maintains a more prudent financial approach than others, keeping cash in reserve.
That’s clear from their current payout ratio, just 25% of excess earnings. Alternately, look at Goldman Sachs (NYSE:GS), which allocated nearly 50% of excess earnings as dividends or stock buybacks. By comparison, they’re leaving far less in reserve to react to shifting economic winds. That conservative approach to operational management is a cornerstone of Munger’s business outlook.
US Bancorp (USB)
Source: Africa Studio / Shutterstock.com
US Bancorp (NYSE:USB) was Munger’s fourth-largest position, one he opened in 2013 and refused to sell since. That represents another divergence from Buffett, who loved Peter Lynch’s quote, “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” Since Munger opened his USB position, shares are down slightly (about 1%) compared to the S&P 500’s whopping 210% return over the same period.
But Munger was a conviction-based investor and thought USB remained a quality stock for the duration of his holding. In one interview, he (indirectly) parried Buffett’s quote by saying, “Psychologically, I don’t mind holding a company I like and admire and I trust and know that it will be stronger than now after many years.”
Today, USB seems overpriced from my perspective, even as it has fallen nearly 20% over the past five years. Shares trade at 1.36x book value, whereas the industry average is slightly below 1. Would I invest in USB today? No. But I’m not Charlie Munger, nor nearly as rich.
Alibaba Group (BABA)
Source: zhu difeng / Shutterstock.com
As I mentioned at the top, Munger loved China. Alibaba Group (NYSE:BABA) was another inroads into the rapidly emerging market. Munger was so bullish on the stock that he did something rare (for him). He used leverage to expand his position. Amid 2022’s rate hikes, he was forced to sell as part of the position became untenable.
Confronted with the paradox, Munger said, “Recently, I did use a little bit of leverage here and in another place because the opportunities were so ridiculously good that I thought it was desirable to do that.” Of course, a confluence of factors forced him to halve his Alibaba position. Still, he remained bullish on Chinese stock prospects. Confronted with further concern over geopolitical and political risk, he told investors, “[the] Chinese have behaved very shrewdly in managing their economy, and they’ve gotten better results than we have in managing our economy. I think that that will probably continue.”
BABA shares are down 50% over the past five years and nearly 75% from their 2021 highs. Unfortunately, it seems as though Munger might have missed the mark on this stock pick.
Daily Journal Corporation (DJCO)
Source: wutzkohphoto / Shutterstock
If you want to invest in Munger’s strategic vision, it’s hard to beat his holding company, Daily Journal Corporation (NASDAQ:DJCO). While not a direct parallel, it’s easy to think of DJCO as a smaller sister organization to Berkshire Hathaway. Both operate similarly by buying and operating multiple subsidary businesses alongside stock positions.
DJCO’s top four holdings are those Munger endorsed heartily – WFC, BAC, BABA, and USB. Shares of DJCO climbed nearly 50% over the past year. Compare that to Berkshire Hathaway, which returned 13% over the same period. For some, it seems as though Munger’s unique outlook might be better suited to today’s economic conditions than Warren Buffett’s.
Despite the outperformance, shares of DJCO seem somewhat undervalued by most estimates, trading at just 2x book value and around 22x earnings. Still, valuation aside, if you want to invest in Munger’s memory, DJCO is the best way to do so.
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 In Memory of a Legend: 7 Stocks That Charlie Munger Loved 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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I expect less out of bankers than [Buffett] does.” While that isn’t too reassuring, he did explain further by discussing how banks are tough to run, and short-term earnings emphasis can cloud executives’ judgement and impact long-term strategic vision. That represents another divergence from Buffett, who loved Peter Lynch’s quote, “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” Since Munger opened his USB position, shares are down slightly (about 1%) compared to the S&P 500’s whopping 210% return over the same period. In one interview, he (indirectly) parried Buffett’s quote by saying, “Psychologically, I don’t mind holding a company I like and admire and I trust and know that it will be stronger than now after many years.” Today, USB seems overpriced from my perspective, even as it has fallen nearly 20% over the past five years.
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BYD Company (BYDDY) Source: shutterstock.com/JLStock It’s tough to find a stock Charlie Munger loved more than BYD Company (OTCMKTS:BYDDY) – literally. During his 2023 Daily Journal Corporation (NASDAQ:DJCO) meeting (Daily Journal is Munger’s “other” holding company), he told investors, “I would say that I’ve never helped do anything at Berkshire that was as good as BYD — and I only did it once.” But what made Munger so bullish on this electric vehicle (EV) company, especially compared to a homegrown competitor like Tesla (NASDAQ:TSLA)? Wells Fargo (WFC) Source: shutterstock.com/marozhka studio Wells Fargo (NYSE:WFC) represented a splinter between Warren Buffet and Charlie Munger, as Berkshire Hathaway slashed (and eventually exited) its position at the same time Munger’s Daily Journal Corporation kept holding.
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During his 2023 Daily Journal Corporation (NASDAQ:DJCO) meeting (Daily Journal is Munger’s “other” holding company), he told investors, “I would say that I’ve never helped do anything at Berkshire that was as good as BYD — and I only did it once.” But what made Munger so bullish on this electric vehicle (EV) company, especially compared to a homegrown competitor like Tesla (NASDAQ:TSLA)? Wells Fargo (WFC) Source: shutterstock.com/marozhka studio Wells Fargo (NYSE:WFC) represented a splinter between Warren Buffet and Charlie Munger, as Berkshire Hathaway slashed (and eventually exited) its position at the same time Munger’s Daily Journal Corporation kept holding. Bank of America (BAC) Source: FabrikaSimf / Shutterstock Bank of America (NYSE:BAC) is Daily Journal’s largest holding (as of September 30th), showing that this bank stock was easily Charlie Munger’s favorite.
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Charlie Munger remained transparent about those losers. In the 2021 meeting, he told shareholders he thinks “that a properly run bank is a great contributor to civilization.” And Bank of America is one of the paragons of well-run banks. DJCO’s top four holdings are those Munger endorsed heartily – WFC, BAC, BABA, and USB.
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Zacks Industry Outlook Highlights Arch Resources, Warrior Met Coal and Ramco Resources
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For Immediate Release
Chicago, IL – December 12, 2023 – Today, Zacks Equity Research discusses Arch Resources ARCH, Warrior Met Coal, Inc. HCC and Ramco Resources Inc. METC.
Industry: Coal
Link: https://www.zacks.com/commentary/2196000/3-coal-stocks-to-watch-from-the-challenging-industry
The Zacks Coal industry stocks, are suffering due to a decline in the use of coal in thermal power plants in the United States. In 2023, the demand for coal will be adversely impacted by the planned retirement of coal units and the utilization of more renewable sources for electricity generation.
The ongoing energy transition, with utility operators steadily phasing out coal units, will adversely impact the coal industry. Then again, the continuing conflict between Russia and Ukraine is creating fresh demand from European coal-importing countries. Hence, coal export from the United States is expected to improve in 2023 from the year-ago level.
Despite a drop in coal production, improving cost export volumes and stable coal production assets are likely to boost prospects of coal stocks like Arch Resources. Other coal stocks like Warrior Met Coal, Inc. and Ramco Resources Inc. with high-quality production volumes are expected to gain during this difficult phase.
About the Industry
The Zacks Coal industry comprises companies involved in the discovery and mining of coal. Coal is mined through the opencast or the underground method. The commodity is valued for its energy content and used worldwide to generate electricity and manufacture steel and cement. Per the U.S. Energy Information Administration ("EIA") report, the current U.S. estimated recoverable coal reserves are about 252 billion short tons, of which about 58% is underground mineable coal.
Given the current production rates, coal resources are likely to last many more years. Five states in the United States contribute nearly 70% of the yearly production and 60% of the coal production from surface mining. Per EIA, the demand for coal will decline due to the usage of more renewable assets and a gradual shutdown of coal-powered generation units, hurting the prospects of the coal industry.
3 Trends Likely to Impact the Coal Industry
U.S. Coal Production Drops: Per EIA's projection, coal production in the United States is expected to drop in 2023 and 2024. EIA projects U.S. coal production to decline 1.5% year over year to about 585 million short tons (MMst) in 2023 and register a much steeper decline of nearly 18% to 480 MMst in 2024 due to the expected reduction in coal usage in electricity production. This would hurt coal operators as they fight a tough battle against other cleaner sources of energy.
Despite Reliability, Emission Policy to Hurt Coal Industry: The improvement in demand for coal is short-lived as the new environmental policy will target 100% carbon pollution-free electricity by 2035, which will significantly lower the demand for coal from the U.S. electricity space. Per EIA, coal-fired electricity generation would drop from 20% in 2022 to 16% in 2023 and further to 15% in 2024. Unless utility operators invest heavily in pollution-control measures to reduce emissions from power plants, domestic coal usage will fall drastically.
Coal industry operators should brace themselves for challenges as several electric utilities have decided to become carbon neutral by 2050 and completely cut down coal usage. Despite the emission, coal stocks are still relevant as the commodity is a reliable source of energy and ensures 24X7 electricity production from the generation units.
Coal Industry's Silverling Is Rising Exports: Despite an expected drop in coal production volumes, coal operators in the United States can benefit from the expected rise in coal export volumes. Coal demand is expected to improve due to its economical pricing compared with other energy sources.
Coal is still a viable energy option for many crucial industries across the globe. European countries banned the import of coal from Russia due to the conflict in Ukraine is also creating new opportunities for U.S. coal exports. Per EIA, coal export volume may increase by 13% in 2023 to 97 MMst due to an increase in both thermal and metallurgical coal export volumes.
The World Steel Association forecasts a rebound in global steel volume production, rising 1.8% in 2023 to touch 1,814.5 Mt and 1.9% in 2024 to touch 1,849.1 Mt. Steel production requires a lot of high-quality coal and nearly 70% of global steel production depends on coal. With the continued recovery in steel production, coal exports are expected to pick up and improve in the long run.
Zacks Industry Rank Indicates Bleak Prospects
The Zacks Coal industry is a nine-stock group within the broader Zacks Oil and Energy sector. The industry currently carries a Zacks Industry Rank #199, which places it in the bottom 21% out of 251 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates lackluster performance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry's position in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence in this group's earnings growth potential. Since Jan 31, 2023, the industry's earnings estimates for 2023 have gone down by 24.3%.
Before we present a few coal stocks that you may want to keep track of, let's take a look at the industry's recent stock market performance and valuation picture.
Industry Underperforms S&P 500 But Beats Sector
The Zacks Coal industry has underperformed the Zacks S&P 500 composite but beat the Zacks Oil and Gas sector over the last one year.
The stocks in the coal industry have gained 2.8% against the Zacks Oil-Energy sector's decline of 2.9%. The Zacks S&P 500 composite has rallied 16% in the same time frame.
Coal Industry's Current Valuation
Since coal companies have a lot of debt on their balance sheet, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio.
The industry is currently trading at a trailing 12-month EV/EBITDA of 3.4X compared with the Zacks S&P 500 composite's 13.33X and the sector's 3.58X.
In the past five years, the industry has traded as high as 7.6X, as low as 2.01X and at the median of 4.7X.
3 Coal Industry Stocks to Keep a Close Watch On
Ramaco Resources, Inc.: Lexington, KY-based Ramaco Resources is the developer of high-quality, low-cost metallurgical coal and is poised to benefit from improving metallurgical coal demand. To meet the rising demand for met coal, the company intends to increase production from the expected range of 3.9- 4.4 million tons to 6.5 million tons in the medium term.
The Zacks Consensus Estimate for Ramaco Resources' 2023 and 2024 earnings has moved up by 18.9% and 24.4%, respectively, in the last 60 days. The current dividend yield of the company is 2.98% compared with the industry yield of 0.55%. The stock has gained 89.4% in the past year compared with its industry's rally of 2.8%.
Ramaco Resources sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here
Arch Resources Inc.: St. Louis, MO-based Arch Resources currently has a Zacks Rank #3 (Hold). The company produces and sells metallurgical and thermal coal. The company commenced longwall production at the Leer South mine, which will add high-quality 3 million tons of metallurgical coal annually to its total production.
The ongoing rebound in production in the steel industry will create fresh demand for met coal supplied by the company. The current dividend yield is 0.61%. The stock has gained 13.1% in the past year. The Zacks Consensus Estimate for its 2023 and 2024 earnings has moved up by 19.8% and 7.5%, respectively, in the last 60 days.
Warrior Met Coal, Inc.: Brookwood, AL-based Warrior Met produces and exports metallurgical coal for the steel industry. The company will benefit from the end of the labor strike and the resulting incremental production volume as eligible employees return to work. Warrior Met plans to invest $420-$485 million in 2023 to further strengthen its coal operation.
The Zacks Consensus Estimate for its 2023 and 2024 earnings has moved up by 0.1% and 9.7%, respectively, in the last 60 days. The current dividend yield of the company is 0.48%. The stock has gained 71.3% in the past year.
Warrior Met Coal currently carries a Zacks Rank of 3 (Hold).
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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.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Warrior Met Coal (HCC) : Free Stock Analysis Report
Arch Resources Inc. (ARCH) : Free Stock Analysis Report
Ramaco Resources, Inc. (METC) : 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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Unless utility operators invest heavily in pollution-control measures to reduce emissions from power plants, domestic coal usage will fall drastically. The company will benefit from the end of the labor strike and the resulting incremental production volume as eligible employees return to work. 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.
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For Immediate Release Chicago, IL – December 12, 2023 – Today, Zacks Equity Research discusses Arch Resources ARCH, Warrior Met Coal, Inc. HCC and Ramco Resources Inc. METC. Coal Industry's Silverling Is Rising Exports: Despite an expected drop in coal production volumes, coal operators in the United States can benefit from the expected rise in coal export volumes. Click to get this free report Warrior Met Coal (HCC) : Free Stock Analysis Report Arch Resources Inc. (ARCH) : Free Stock Analysis Report Ramaco Resources, Inc. (METC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Industry: Coal Link: https://www.zacks.com/commentary/2196000/3-coal-stocks-to-watch-from-the-challenging-industry The Zacks Coal industry stocks, are suffering due to a decline in the use of coal in thermal power plants in the United States. 3 Trends Likely to Impact the Coal Industry U.S. Coal Production Drops: Per EIA's projection, coal production in the United States is expected to drop in 2023 and 2024. Coal Industry's Silverling Is Rising Exports: Despite an expected drop in coal production volumes, coal operators in the United States can benefit from the expected rise in coal export volumes.
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Other coal stocks like Warrior Met Coal, Inc. and Ramco Resources Inc. with high-quality production volumes are expected to gain during this difficult phase. Given the current production rates, coal resources are likely to last many more years. Zacks Industry Rank Indicates Bleak Prospects The Zacks Coal industry is a nine-stock group within the broader Zacks Oil and Energy sector.
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$1,000 Invested in These 3 Ultra-High-Yield Dividend Stocks Could Make You Rich
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https://www.nasdaq.com/articles/%241000-invested-in-these-3-ultra-high-yield-dividend-stocks-could-make-you-rich
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Many dividend stocks lost their luster over the past two years as rising interest rates boosted the yields for CDs and Treasury bills above 5%. But over the long term, stable dividend stocks usually outperform fixed-income investments as their prices rise and investors use dividend reinvestment plans (DRIPs) to boost their total returns.
Therefore, investors should still keep an eye out for promising dividend stocks that could make them rich. I believe these three stocks fit that description: Opera (NASDAQ: OPRA), Philip Morris International (NYSE: PM), and IBM (NYSE: IBM).
Image source: Getty Images.
1. Opera
Opera is best known for its namesake web browser, which ranks fifth in the market behind Alphabet's Google Chrome, Apple Safari, Microsoft Edge, and Mozilla Firefox. However, Opera also has a mobile gaming browser and a stand-alone news app. It served 311 million monthly active users across all those apps in its latest quarter.
Opera also continues to grow, despite being branded an underdog in the browser market. Analysts expect its revenue and adjusted earnings per share (EPS) to grow 15% and 13%, respectively, next year, as its core advertising business stabilizes in a warmer macro environment. The rollout of new artificial intelligence (AI) services for its browsers could also lock in its users and widen its moat against its larger competitors.
Opera's stock already looks cheap at 12 times forward earnings, but it also caught the attention of income investors over the past year by paying out a special dividend of $0.80 per share in February and initiating a recurring semi-annual dividend of $0.40 per share in June. That new dividend translates to a whopping forward yield of 7.1%.
Opera's fundamentals are attractive, but its stock remains slightly below its IPO price of $12. Therefore, I believe investors who buy this stock while the bulls are looking the other way might net some big gains in the future.
2. Philip Morris International
Philip Morris International, one of the largest cigarette manufacturers in the world, was spun off from Altria in 2008 to handle its former parent's overseas divisions. PMI's stock has generated a total return of nearly 280% since its public debut, even as declining smoking rates gradually reduced its annual shipments of traditional cigarettes.
PMI initially countered that slowdown by raising its prices. But as that strategy ran out of steam, it rolled out its iQOS heated tobacco devices -- which heat up tobacco sticks instead of burning them -- over the past nine years. That gradual growth of its smoke-free products (which accounted for 32% of its revenue last year) offset its declining shipments of cigarettes, and it grew at a more stable rate than Altria -- which repeatedly fumbled its expansion beyond traditional cigarettes.
As a result, analysts still expect PMI's revenue and adjusted EPS to rise 5% and 6%, respectively, in 2024. That stability has enabled PMI to raise its dividend every year since its split with Altria, and it currently pays an attractive forward yield of 5.7%. Its stock trades at just 14 times forward earnings, and it should remain a reliable way to grow your cash.
3. IBM
For many years, IBM was a dismal investment. It was known for its declining revenue, plunging profits, and its inability to keep pace with the seismic shift toward cloud-based services. However, all that changed over the past three years as its cloud chief Arvind Krishna took the helm as Big Blue's new CEO and reset its entire business model.
First, IBM divested its slow-growth managed infrastructure services unit as Kyndryl in late 2021. Second, it drove its open-source software subsidiary Red Hat to launch more hybrid cloud and AI services that could be wedged between private and public cloud platforms. That move enabled it to profit from the growth of the cloud and AI markets without going toe-to-toe against public cloud giants like Amazon and Microsoft.
Those two strategies, along with thousands of layoffs and a commitment to automating away a lot of its own jobs with AI, enabled IBM to grow again. Analysts expect the tech giant's revenue and adjusted EPS to rise 3% and 5%, respectively, in 2024. Its stock still looks like a bargain at 16 times forward earnings, and its hefty forward yield of 4.1% should set a floor under its stock as it continues to expand its hybrid cloud and AI businesses.
Should you invest $1,000 in Opera right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Amazon, and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Microsoft. The Motley Fool recommends International Business Machines and Philip Morris International. 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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Analysts expect its revenue and adjusted earnings per share (EPS) to grow 15% and 13%, respectively, next year, as its core advertising business stabilizes in a warmer macro environment. PMI's stock has generated a total return of nearly 280% since its public debut, even as declining smoking rates gradually reduced its annual shipments of traditional cigarettes. However, all that changed over the past three years as its cloud chief Arvind Krishna took the helm as Big Blue's new CEO and reset its entire business model.
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I believe these three stocks fit that description: Opera (NASDAQ: OPRA), Philip Morris International (NYSE: PM), and IBM (NYSE: IBM). Philip Morris International Philip Morris International, one of the largest cigarette manufacturers in the world, was spun off from Altria in 2008 to handle its former parent's overseas divisions. The Motley Fool recommends International Business Machines and Philip Morris International.
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Opera's stock already looks cheap at 12 times forward earnings, but it also caught the attention of income investors over the past year by paying out a special dividend of $0.80 per share in February and initiating a recurring semi-annual dividend of $0.40 per share in June. Its stock still looks like a bargain at 16 times forward earnings, and its hefty forward yield of 4.1% should set a floor under its stock as it continues to expand its hybrid cloud and AI businesses. Before you buy stock in Opera, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Opera wasn't one of them.
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That move enabled it to profit from the growth of the cloud and AI markets without going toe-to-toe against public cloud giants like Amazon and Microsoft. Before you buy stock in Opera, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Opera wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Microsoft.
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APi Group Corporation (APG) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of APi (APG)? Shares have been on the move with the stock up 11.3% over the past month. The stock hit a new 52-week high of $31.39 in the previous session. APi has gained 66.8% since the start of the year compared to the 18.2% move for the Zacks Business Services sector and the 17.3% return for the Zacks Business - 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 2, 2023, APi reported EPS of $0.48 versus consensus estimate of $0.45 while it missed the consensus revenue estimate by 4.27%.
For the current fiscal year, APi is expected to post earnings of $1.57 per share on $6.95 billion in revenues. This represents a 18.05% change in EPS on a 6.02% change in revenues. For the next fiscal year, the company is expected to earn $1.81 per share on $7.15 billion in revenues. This represents a year-over-year change of 15.61% and 2.8%, respectively.
Valuation Metrics
APi may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as 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.
APi 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 20.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.6X. On a trailing cash flow basis, the stock currently trades at 11.1X versus its peer group's average of 8.6X. Additionally, the stock has a PEG ratio of 1.1. 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, APi 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 APi meets the list of requirements. Thus, it seems as though APi shares could have potential in the weeks and months to come.
How Does APG Stack Up to the Competition?
Shares of APG 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 Viad Corp (VVI). VVI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Viad Corp beat our consensus estimate by 14.62%, and for the current fiscal year, VVI is expected to post earnings of $1.68 per share on revenue of $1.22 billion.
Shares of Viad Corp have gained 10.3% over the past month, and currently trade at a forward P/E of 56.57X and a P/CF of 10.33X.
The Business - Services industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for APG and VVI, even beyond their own solid fundamental situation.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
APi Group Corporation (APG) : Free Stock Analysis Report
Viad Corp (VVI) : 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, APi currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. Viad Corp beat our consensus estimate by 14.62%, and for the current fiscal year, VVI is expected to post earnings of $1.68 per share on revenue of $1.22 billion. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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In its last earnings report on November 2, 2023, APi reported EPS of $0.48 versus consensus estimate of $0.45 while it missed the consensus revenue estimate by 4.27%. In terms of its value breakdown, the stock currently trades at 20.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.6X. Click to get this free report APi Group Corporation (APG) : Free Stock Analysis Report Viad Corp (VVI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if APi meets the list of requirements. Click to get this free report APi Group Corporation (APG) : Free Stock Analysis Report Viad Corp (VVI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its last earnings report on November 2, 2023, APi reported EPS of $0.48 versus consensus estimate of $0.45 while it missed the consensus revenue estimate by 4.27%. 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). APi has a Value Score of A.
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Zacks.com featured highlights include Intel, U.S. Cellular and Huron Consulting Group
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For Immediate Release
Chicago, IL – December 12, 2023 – Stocks in this week’s article are Intel Corp. INTC, U.S. Cellular Corp. USM and Huron Consulting Group Inc. HURN.
3 Momentum Anomaly Picks as Markets Peak on Benign Inflation
The U.S. equity markets hit a 52-week high last week, as a benign inflation outlook and solid jobs data portrayed the resilience in the economy and pushed the stocks up. The uptrend was further buoyed by broad-based expectations that the central bank will not raise interest rates at its December meeting while trimming the same as early as next spring.
Since its inception in March 2022, the Federal Reserve has executed a series of 11 interest rate hikes to tame inflation, taking the central bank's benchmark borrowing rate up 5.25 percentage points to its highest level in more than 22 years. In its last policy meeting, the Fed also indicated that more groundwork was due to be done to bring down inflation to the targeted levels of 2% and that the monetary policy would be kept restrictive to achieve this goal.
However, the latest University of Michigan consumer sentiment survey revealed that the one-year outlook for the inflation rate slid to 3.1%, down sharply from 4.5% in November and the lowest since March 2021. The November non-farm payrolls report further showed that the jobless rate fell to 3.7% from 3.9% in the prior month. The economy also added 199,000 jobs compared with 150,000 job additions in October, signifying economic strength.
Investors will aim to look for more clarity regarding the near-term interest rate policy in the imminent Fed meeting slated to begin this Wednesday. With looming uncertainty, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, "the trend is your friend." At its core, momentum investing is "buying high and selling higher." It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. But before we delve deep into it, let us try to fathom why does the momentum strategy at all work?
There are several behavioral biases that most investors exhibit in their decision-making. And these emotional responses, or rather mistakes, make the momentum strategy work.
For example, some investors are anxious about booking losses and hence hold on to losing stocks for too long, hopeful of a rebound in prices. On the other hand, a few investors sell their winners way too early. Momentum investing is one of the best strategies to avoid making such errors in judgment.
Furthermore, investors initially tend to underreact to news, events or data releases. However, once things become clear, they have a habit of going with the flow and overreacting, causing dramatic price reactions. These behavioral problems extend trends, thus opening up huge opportunities for momentum players.
To sum up, momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
In this context, stocks like Intel Corp., U.S. Cellular Corp. and Huron Consulting Group Inc. are worth betting on.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. So, this strategy is quite tricky to implement, as detecting these trends is no child's play.
Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price.
Here are three stocks out of seven that made it through this screen:
Santa Clara, CA-based Intel is reportedly the world's largest semiconductor company and primary supplier of microprocessors and chipsets. It is gradually reducing its dependence on the PC-centric unit by moving into data-centric businesses — such as AI and autonomous driving. The stock has gained 48.8% in the past year but declined 2.4% in the past week. Intel has a Momentum Score of A.
Headquartered in Chicago, IL, U.S. Cellular is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations. It is a subsidiary of Telephone and Data Systems, Inc., a diversified telecom service provider offering wireless and wireline services. The stock has appreciated 114.7% in the past year but declined 10.6% in the past week. U.S. Cellular has a Momentum Score of B.
Headquartered in Chicago, IL, Huron is a professional services firm offering consultancy services in the United States and internationally. It strives to deliver sustainable results for its clients by embracing diverse perspectives and encouraging new ideas. The stock has rallied 40.6% in the past year but declined 3.2% in the past week. Huron has a Momentum Score of B.
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 trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2195992/3-momentum-anomaly-picks-as-markets-peak-on-benign-inflation
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.
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4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
United States Cellular Corporation (USM) : Free Stock Analysis Report
Huron Consulting Group Inc. (HURN) : 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, the latest University of Michigan consumer sentiment survey revealed that the one-year outlook for the inflation rate slid to 3.1%, down sharply from 4.5% in November and the lowest since March 2021. Here are three stocks out of seven that made it through this screen: Santa Clara, CA-based Intel is reportedly the world's largest semiconductor company and primary supplier of microprocessors and chipsets. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations.
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For Immediate Release Chicago, IL – December 12, 2023 – Stocks in this week’s article are Intel Corp. INTC, U.S. Cellular Corp. USM and Huron Consulting Group Inc. HURN. U.S. Cellular has a Momentum Score of B. Headquartered in Chicago, IL, Huron is a professional services firm offering consultancy services in the United States and internationally. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report United States Cellular Corporation (USM) : Free Stock Analysis Report Huron Consulting Group Inc. (HURN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2195992/3-momentum-anomaly-picks-as-markets-peak-on-benign-inflation 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. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report United States Cellular Corporation (USM) : Free Stock Analysis Report Huron Consulting Group Inc. (HURN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." Want the latest recommendations from Zacks Investment Research?
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2023-12-12 00:00:00 UTC
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Crypto-Correlated Equities Topping Bitcoin This Year
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https://www.nasdaq.com/articles/crypto-correlated-equities-topping-bitcoin-this-year
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Bitcoin has pulled back over the past several days. But even with that retrenchment, the largest crypto currency is on pace for one of its best annual showings on record.
Interestingly, some crypto-correlated stocks and the exchange traded funds that hold them are notching performances in excess of bitcoin itself. Take the case of the Invesco Alerian Galaxy Crypto Economy ETF (SATO). The fund's largest holding is the Grayscale Bitcoin Trust (GBTC), and the rest of its roster comprises stocks that fit the bill as crypto-correlated, including bitcoin miners.
Cementing its status as a beneficiary of bitcoin’s 2023 resurgence, SATO is higher by a staggering 213.24% year to date. That’s despite a 10.66% decline on Monday, one hastened by the aforementioned pullback by bitcoin itself.
Crypto ETF SATO Performance Starting to Look Familiar
With crypto stocks overshooting bitcoin’s 2023 performance, an interesting though overlooked comparison is now relevant. That is the history of gold miners often outperforming the yellow metal during rallies.
Of course, that can be a double-edged sword. It has been for gold miners, which have often slumped more than gold when spot prices retreat. It’s just one day. and a single day doesn’t make a trend. But SATO may be vulnerable to similar behavior as it dipped more on Monday than did bitcoin. Still, the ETF’s utility during bitcoin rallies is undeniable. That’s something to consider ahead of 2024.
Plus, SATO’s leverage tobitcoin priceaction is sourced via multiple avenues. Consider the fund’s 4.44% allocation to crypto exchange operator Coinbase (COIN). That exposure has recently been a benefit to SATO investors.
“Coinbase, for instance, is more broadly exposed to the digital asset landscape, with a fee-based brokerage business reliant on trade in many smaller tokens besides Bitcoin, such as Ether and Dogecoin,” reported Jack Denton for Barron’s.
MicroStrategy (MSTR) is another SATO holding with considerable leverage to bitcoin. The software firm, which accounts for 3.41% of the ETF’s roster, has amassed a multibillion bitcoin war chest, making the stock a de facto play on the digital currency.
“MicroStrategy, for its part, seems like a particularly well-positioned pure-play on Bitcoin with its billions of dollars in token holdings. The company was founded by one of the most high-profile Bitcoin bulls, Michael Saylor, who continues to lead the group as its executive chairman. MicroStrategy has been buying up Bitcoin at a seemingly relentless pace, meaning its holdings are sitting pretty amid the recent crypto rally, and the stock represents a wager on Saylor’s crypto bet and market timing,” according to Barron’s.
For more news, information, and analysis, visit the Crypto 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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“Coinbase, for instance, is more broadly exposed to the digital asset landscape, with a fee-based brokerage business reliant on trade in many smaller tokens besides Bitcoin, such as Ether and Dogecoin,” reported Jack Denton for Barron’s. The software firm, which accounts for 3.41% of the ETF’s roster, has amassed a multibillion bitcoin war chest, making the stock a de facto play on the digital currency. The company was founded by one of the most high-profile Bitcoin bulls, Michael Saylor, who continues to lead the group as its executive chairman.
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But even with that retrenchment, the largest crypto currency is on pace for one of its best annual showings on record. Interestingly, some crypto-correlated stocks and the exchange traded funds that hold them are notching performances in excess of bitcoin itself. Crypto ETF SATO Performance Starting to Look Familiar With crypto stocks overshooting bitcoin’s 2023 performance, an interesting though overlooked comparison is now relevant.
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The fund's largest holding is the Grayscale Bitcoin Trust (GBTC), and the rest of its roster comprises stocks that fit the bill as crypto-correlated, including bitcoin miners. Crypto ETF SATO Performance Starting to Look Familiar With crypto stocks overshooting bitcoin’s 2023 performance, an interesting though overlooked comparison is now relevant. MicroStrategy has been buying up Bitcoin at a seemingly relentless pace, meaning its holdings are sitting pretty amid the recent crypto rally, and the stock represents a wager on Saylor’s crypto bet and market timing,” according to Barron’s.
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Interestingly, some crypto-correlated stocks and the exchange traded funds that hold them are notching performances in excess of bitcoin itself. MicroStrategy (MSTR) is another SATO holding with considerable leverage to bitcoin. MicroStrategy has been buying up Bitcoin at a seemingly relentless pace, meaning its holdings are sitting pretty amid the recent crypto rally, and the stock represents a wager on Saylor’s crypto bet and market timing,” according to Barron’s.
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712359.0
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2023-12-12 00:00:00 UTC
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Compared to Estimates, Johnson Controls (JCI) Q4 Earnings: A Look at Key Metrics
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https://www.nasdaq.com/articles/compared-to-estimates-johnson-controls-jci-q4-earnings%3A-a-look-at-key-metrics
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For the quarter ended September 2023, Johnson Controls (JCI) reported revenue of $6.91 billion, up 2.7% over the same period last year. EPS came in at $1.05, compared to $0.99 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $7.09 billion, representing a surprise of -2.62%. The company delivered an EPS surprise of -3.67%, with the consensus EPS estimate being $1.09.
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 Johnson Controls performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Building Solutions North America: $2.78 billion versus $2.74 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
Net Sales- Building Solutions EMEA/LA: $1.05 billion versus $1.08 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.
Net Sales- Building Solutions Asia Pacific: $697 million versus the three-analyst average estimate of $782.27 million. The reported number represents a year-over-year change of -7.2%.
Net Sales- Global Products: $2.39 billion versus $2.53 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.1% change.
Total Segment Adjusted EBITA- Global Products: $502 million compared to the $570.42 million average estimate based on two analysts.
View all Key Company Metrics for Johnson Controls here>>>
Shares of Johnson Controls have returned +11.4% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Johnson Controls International plc (JCI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the quarter ended September 2023, Johnson Controls (JCI) reported revenue of $6.91 billion, up 2.7% over the same period last year. 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. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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Here is how Johnson Controls performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Building Solutions North America: $2.78 billion versus $2.74 billion estimated by three analysts on average. Net Sales- Building Solutions EMEA/LA: $1.05 billion versus $1.08 billion estimated by three analysts on average. Net Sales- Global Products: $2.39 billion versus $2.53 billion estimated by three analysts on average.
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The reported revenue compares to the Zacks Consensus Estimate of $7.09 billion, representing a surprise of -2.62%. 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 Johnson Controls performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Building Solutions North America: $2.78 billion versus $2.74 billion estimated by three analysts on average.
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The reported revenue compares to the Zacks Consensus Estimate of $7.09 billion, representing a surprise of -2.62%. View all Key Company Metrics for Johnson Controls here>>> In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months.
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712360.0
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2023-12-12 00:00:00 UTC
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2 Underrated Warren Buffett Stocks That Are Smart Buys Right Now
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https://www.nasdaq.com/articles/2-underrated-warren-buffett-stocks-that-are-smart-buys-right-now-1
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Warren Buffett and his team and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have put together one of the most impressive runs in stock market history. $10,000 invested in Berkshire Hathaway 40 years ago is now worth nearly $4 million, and a large part of its success has come from the stock picks within its investment portfolio.
By examining the stocks within the firm's portfolio, investors can have a glimpse into one of the most successful stock-picking businesses of all time. Within his portfolio are two stocks that I think investors and Berkshire Hathaway should be buying more of. They are Amazon (NASDAQ: AMZN) and Visa (NYSE: V), and I think investors should be taking advantage of the price the market is giving you right now.
Amazon
Amazon is a lot more than an e-commerce site for buying goods. It has a thriving advertising business, a dominant cloud computing offering, and a growing third-party seller service that takes the burden of forecasting trends and obtaining inventory off Amazon's shoulders.
This has transformed Amazon into a much more lucrative investment, as its gross margins have substantially expanded as the company's business has moved into higher-margin offerings.
AMZN Gross Profit Margin (Quarterly) data by YCharts
This gross margin expansion allowed Amazon to drastically improve its cash flows, which will allow Amazon to repay debt, repurchase shares, start a dividend, or invest in a different business area.
Within its current business set, none is more promising than Amazon Web Services (AWS), its cloud computing wing. AWS is set to capitalize on the massive cloud computing trend, a vital infrastructure piece for storing data, creating AI models, and doing other computational tasks. The cloud computing market opportunity is expected to increase to more than $1 trillion by 2028, and with Amazon owning the No. 1 market share, it's set to capitalize on this expansion.
Despite all of the success Amazon is having, its stock is valued around levels last seen in 2016.
AMZN PS Ratio data by YCharts
Right now looks like an opportune time to load up on Amazon shares, as its transformation is just starting, and there is still a massive opportunity in cloud computing.
Visa
Visa's credit processing is a vital part of commerce infrastructure. Without it, a significant portion of monetary flow would be impaired because cash cannot be used online. Although there are several competitors in this space, Visa is the largest and has a fantastic business model.
The tollbooth business model is one that Buffett has long praised. For Visa, this involves taking a small slice of the money that flows through its channels, similar to how a toll booth collects a toll for all traffic and commerce that flow through it. With Visa setting their toll booth up on the flow of money through commerce, it could be seen as one of the best available to invest in. It's also doing quite well right now.
In the fourth quarter of fiscal-year 2023 (ending Oct. 31), Visa's revenue rose 11%, and earnings per share (EPS) shot up 22%. These strong cash flows led to the board of directors to increase the dividend by 16% and authorize a new $25 billion multiyear share repurchase program. This demonstrates Visa's strong position, as it can pay a decent dividend and buy back shares, and still grow at a market-average pace, almost guaranteeing investors a market-crushing investment.
It's rare to find companies that can consistently grow above 10% per year and pay a dividend, but that's exactly what Visa is. Furthermore, the stock is the cheapest it has been in a long time.
V PE Ratio data by YCharts
There have been few times over the past decade that Visa has traded at these levels. With the company doing well and the stock not demanding a massive premium, right now could be one of the best opportunities to purchase Visa in a long time.
10 stocks we like better than Amazon
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Amazon and Visa. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has a thriving advertising business, a dominant cloud computing offering, and a growing third-party seller service that takes the burden of forecasting trends and obtaining inventory off Amazon's shoulders. These strong cash flows led to the board of directors to increase the dividend by 16% and authorize a new $25 billion multiyear share repurchase program. This demonstrates Visa's strong position, as it can pay a decent dividend and buy back shares, and still grow at a market-average pace, almost guaranteeing investors a market-crushing investment.
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They are Amazon (NASDAQ: AMZN) and Visa (NYSE: V), and I think investors should be taking advantage of the price the market is giving you right now. AMZN Gross Profit Margin (Quarterly) data by YCharts This gross margin expansion allowed Amazon to drastically improve its cash flows, which will allow Amazon to repay debt, repurchase shares, start a dividend, or invest in a different business area. AWS is set to capitalize on the massive cloud computing trend, a vital infrastructure piece for storing data, creating AI models, and doing other computational tasks.
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AMZN Gross Profit Margin (Quarterly) data by YCharts This gross margin expansion allowed Amazon to drastically improve its cash flows, which will allow Amazon to repay debt, repurchase shares, start a dividend, or invest in a different business area. AMZN PS Ratio data by YCharts Right now looks like an opportune time to load up on Amazon shares, as its transformation is just starting, and there is still a massive opportunity in cloud computing. See the 10 stocks *Stock Advisor returns as of December 4, 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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Warren Buffett and his team and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have put together one of the most impressive runs in stock market history. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, and Visa.
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712361.0
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2023-12-12 00:00:00 UTC
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Should You Hold Mid-America Apartment (MAA) in Your Portfolio?
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https://www.nasdaq.com/articles/should-you-hold-mid-america-apartment-maa-in-your-portfolio
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Mid-America Apartment MAA is poised to benefit from its well-diversified Sun Belt-focused portfolio. The prospects of its redevelopment program and progress in technology measures are also likely to aid margin expansion. A solid balance sheet bodes well for the company’s long-term growth despite a high interest rate environment and elevated supply in certain markets.
What’s Aiding MAA?
MAA’s portfolio is set to gain from healthy operating fundamentals. The pandemic accelerated employment shifts and a population inflow into the company’s markets as renters sought more business-friendly, low-taxed and low-density cities. These favorable long-term secular dynamic trends are increasing the desirability of its markets.
The high pricing of single-family ownership units amid a high interest rate environment continues to drive demand for rental apartments. Due to these positives, MAA is expected to continue maintaining a high level of occupancy in the upcoming period.
Our projection for average physical occupancy in 2023 is 95.6%. For 2024 and 2025, the average physical occupancy is expected to remain elevated at 95.7% and 95.8%, respectively. Our projections for top-line growth point to an increase of 6.3% year over year in the current year.
MAA continues to implement its three internal investment programs — interior redevelopment, property repositioning projects and Smart Home installations. These programs will help the company capture the upside potential in rent growth, generate accretive returns and boost earnings from its existing asset base.
Along with the healthy operating fundamentals of the Sunbelt markets and a robust development pipeline, the prospects of its redevelopment program and progress in technology measures are likely to drive margin expansion. We expect a year-over-year increase of 6% in the company’s same-store net operating income (“NOI”) in 2023. For 2024 and 2025, the metric is projected to witness growth of 7.3% and 7.4%, respectively.
MAA enjoys a solid balance sheet with low leverage and ample availability under its revolving credit facility. As of Sep 30, 2023, MAA 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 opportunities.
Moreover, solid dividend payouts are arguably the biggest enticements for real estate investment trust (“REIT”) shareholders and MAA remains committed to the same. In the last five years, MAA has increased its dividend six times and its five-year annualized dividend growth rate is 8.74%. Moreover, it has a lower dividend payout compared with the industry. Backed by healthy operating fundamentals, we expect the company’s core funds from operations (“FFO”) to increase 8.5% year over year in the current year. Hence, with these factors in place, we expect its dividend distribution to be sustainable in the upcoming period.
What’s Hurting MAA?
However, the struggle to lure renters will persist as supply volumes are expected to remain elevated in some markets. This phenomenon is expected to put some pressure on rent growth in the upcoming period. Stiff competition in the residential real estate market with various housing alternatives like manufactured housing, condominiums and the new and existing home markets is concerning. This affects the company’s power to raise rent or increase occupancy and leads to aggressive pricing for acquisitions.
Although the company’s robust development and redevelopment pipeline is encouraging for long-term growth, supply-chain constraints and inflationary pressure could lead to cost overruns and lease-up concerns. This is likely to weigh on the company’s profitability.
Elevated rates imply a high borrowing cost for the company, affecting its ability to purchase or develop real estate. Moreover, the dividend payout might seem less attractive than yields on fixed-income and money market accounts due to high interest rates.
Shares of this Zacks #3 (Hold) company have gained 5.7% in the past month, underperforming the industry’s growth of 8.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are UMH Properties, Inc. UMH and Centerspace CSR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for UMH Properties’ 2023 FFO per share has increased by a penny over the past month to 84 cents.
The Zacks Consensus Estimate for Centerspace’s current-year FFO per share has moved 4.5% northward in the past two months to $4.66.
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.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
UMH Properties, Inc. (UMH) : Free Stock Analysis Report
Centerspace (CSR) : 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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Along with the healthy operating fundamentals of the Sunbelt markets and a robust development pipeline, the prospects of its redevelopment program and progress in technology measures are likely to drive margin expansion. As of Sep 30, 2023, MAA 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. Although the company’s robust development and redevelopment pipeline is encouraging for long-term growth, supply-chain constraints and inflationary pressure could lead to cost overruns and lease-up concerns.
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Along with the healthy operating fundamentals of the Sunbelt markets and a robust development pipeline, the prospects of its redevelopment program and progress in technology measures are likely to drive margin expansion. Backed by healthy operating fundamentals, we expect the company’s core funds from operations (“FFO”) to increase 8.5% year over year in the current year. Click to get this free report Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report UMH Properties, Inc. (UMH) : Free Stock Analysis Report Centerspace (CSR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Backed by healthy operating fundamentals, we expect the company’s core funds from operations (“FFO”) to increase 8.5% year over year in the current year. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks from the REIT sector are UMH Properties, Inc. UMH and Centerspace CSR, each carrying a Zacks Rank #2 (Buy). Click to get this free report Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report UMH Properties, Inc. (UMH) : Free Stock Analysis Report Centerspace (CSR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A solid balance sheet bodes well for the company’s long-term growth despite a high interest rate environment and elevated supply in certain markets. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks from the REIT sector are UMH Properties, Inc. UMH and Centerspace CSR, each carrying a Zacks Rank #2 (Buy). Zacks Investment Research has just released an urgent special report to help you bank on this trend.
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2023-12-12 00:00:00 UTC
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Biomea Fusion (BMEA) Stock Surges 41% in a Month: Here's Why
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https://www.nasdaq.com/articles/biomea-fusion-bmea-stock-surges-41-in-a-month%3A-heres-why
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Biomea Fusion, Inc. BMEA, a clinical-stage company, is focused on the discovery and development of covalent small molecules to treat patients with genetically defined cancers and metabolic diseases. The company uses its proprietary FUSION System to design and develop a pipeline of novel covalent therapies.
BMEA’s lead product candidate, BMF-219, is an investigational novel covalent menin inhibitor, which is currently being evaluated in several early-mid-stage studies for various indications, including diabetes, liquid tumors and KRAS mutated solid tumors.
Apart from BMF-219, Biomea Fusion has another investigational candidate in its pipeline, BMF-500, which is currently being developed for the treatment of adult patients with relapsed or refractory acute leukemia in an early-stage study. BMF-500 is the company’s covalent FLT3 inhibitor, which has also been developed utilizing the FUSION System.
In the past month, shares of BMEA have surged 40.6% compared with the industry’s 5.3% rise.
Image Source: Zacks Investment Research
The steep rise in the stock price was observed after the company announced that it will share updated results from the phase II study of its lead candidate, BMF-219, for the type II diabetes (T2D) indication.
Biomea Fusion recently announced positive top-line data from the 200 mg dose cohorts of its ongoing mid-stage study of its investigational candidate, BMF-219, for the treatment of adult patients with T2D uncontrolled by current therapies.
Data from the study observed that at week 26, 22 weeks after the last dose of BMF-219, treatment with the 200 mg dose of the candidate increased the percentage of patients with durable HbA1c reduction of 1% or more to approximately 40% compared with the 20% reduction reported earlier in the 100 mg cohorts.
A high HbA1c is an indicator of high blood sugar, which means that a patient is more likely to develop diabetes complications.
The ongoing phase II COVALENT-111 study is evaluating the efficacy and safety of BMF-219 in multiple ascending dose cohorts in the treatment of T2D patients. The range of doses under evaluation includes 50 mg, 100 mg and 200 mg.
The company is currently analyzing the available data from the study and expects to provide further updates in March 2024.
Additionally, Biomea Fusion reported that patients across all dosing cohorts have consistently experienced generally meaningful HbA1c reductions after only four weeks of dosing with BMF-219 in the dose escalation portion, to date.
Results have demonstrated greater pharmacokinetic exposure of BMF-219 in patient cohorts at higher dose levels. Per the company, the variability seen in HbA1c reduction is fueled by several factors, including patients’ prior lines of therapies, years since diagnosis, beta cell function scores and others.
BMEA stated that so far, the best result has been observed in cohort 3 (100 mg without food) of the COVALENT-111 study, where treatment with BMF-219 caused a mean HbA1c reduction of 0.81% after only four weeks of dosing. In all other cohorts of the study, the mean HbA1c reduction was observed between 0.4% and 0.5% after four weeks of dosing.
Based on the consistency of the reported data on responses to treatment with different doses of BMF-219, Biomea Fusion believes that it has confirmed clinically meaningful activity across all dosing cohorts.
Further updates from the study are expected to be presented by the company at a medical conference in 2024.
Biomea Fusion, Inc. Price and Consensus
Biomea Fusion, Inc. price-consensus-chart | Biomea Fusion, Inc. Quote
Zacks Rank and Stocks to Consider
Biomea Fusion currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth mentioning are Puma Biotechnology, Inc. PBYI, ADMA Biologics ADMA and Agenus AGEN. While PBYI sports a Zacks Rank #1 (Strong Buy), ADMA and AGEN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share has remained constant at 72 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 earnings per share has increased from 62 cents to 64 cents. PBYI stock failed to deliver any returns in the past month.
PBYI’s earnings beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has narrowed from 6 cents to 3 cents. The consensus estimate for ADMA Biologics’ 2024 earnings per share is pegged at 16 cents. In the past month, shares of ADMA have lost 1.1%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has remained constant at 63 cents. During the same time frame, the consensus estimate for Agenus’ 2024 loss per share has remained constant at 45 cents. In the past month, shares of AGEN have gained 8.3%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Agenus Inc. (AGEN) : Free Stock Analysis Report
Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report
ADMA Biologics Inc (ADMA) : Free Stock Analysis Report
Biomea Fusion, Inc. (BMEA) : 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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Biomea Fusion, Inc. BMEA, a clinical-stage company, is focused on the discovery and development of covalent small molecules to treat patients with genetically defined cancers and metabolic diseases. Apart from BMF-219, Biomea Fusion has another investigational candidate in its pipeline, BMF-500, which is currently being developed for the treatment of adult patients with relapsed or refractory acute leukemia in an early-stage study. Biomea Fusion recently announced positive top-line data from the 200 mg dose cohorts of its ongoing mid-stage study of its investigational candidate, BMF-219, for the treatment of adult patients with T2D uncontrolled by current therapies.
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Image Source: Zacks Investment Research The steep rise in the stock price was observed after the company announced that it will share updated results from the phase II study of its lead candidate, BMF-219, for the type II diabetes (T2D) indication. Biomea Fusion, Inc. Price and Consensus Biomea Fusion, Inc. price-consensus-chart | Biomea Fusion, Inc. Quote Zacks Rank and Stocks to Consider Biomea Fusion currently carries a Zacks Rank #3 (Hold). Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report Biomea Fusion, Inc. (BMEA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Data from the study observed that at week 26, 22 weeks after the last dose of BMF-219, treatment with the 200 mg dose of the candidate increased the percentage of patients with durable HbA1c reduction of 1% or more to approximately 40% compared with the 20% reduction reported earlier in the 100 mg cohorts. Biomea Fusion, Inc. Price and Consensus Biomea Fusion, Inc. price-consensus-chart | Biomea Fusion, Inc. Quote Zacks Rank and Stocks to Consider Biomea Fusion currently carries a Zacks Rank #3 (Hold). Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report Biomea Fusion, Inc. (BMEA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research The steep rise in the stock price was observed after the company announced that it will share updated results from the phase II study of its lead candidate, BMF-219, for the type II diabetes (T2D) indication. In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share has remained constant at 72 cents. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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712363.0
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2023-12-12 00:00:00 UTC
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Energy Sector Update for 12/12/2023: KNTK, KRP, XLE, USO, UNG
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DCOMP
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https://www.nasdaq.com/articles/energy-sector-update-for-12-12-2023%3A-kntk-krp-xle-uso-ung
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Energy stocks were declining premarket Tuesday as the Energy Select Sector SPDR Fund (XLE) was slipping by 0.9% recently.
The United States Oil Fund (USO) was 3.1% lower and the United States Natural Gas Fund (UNG) was down 4%.
Front-month US West Texas Intermediate crude oil was down 2.3% at $69.67 per barrel at the New York Mercantile Exchange. Global benchmark North Sea crude oil lost 2.2% to $74.36 per barrel, and natural gas futures were 3% lower at $2.36 per 1 million British Thermal Units.
Kinetik Holdings (KNTK) was slipping past 5% after saying an upsized secondary offering of 6.5 million class A common shares by selling stockholder Apache Midstream has been priced at $31.50 apiece.
Kimbell Royalty Partners (KRP) said the borrowing base and total commitments under its revolving credit facility were raised to $550 million from $400 million. Kimbell Royalty Partners shares were up 1.8% premarket.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Front-month US West Texas Intermediate crude oil was down 2.3% at $69.67 per barrel at the New York Mercantile Exchange. Global benchmark North Sea crude oil lost 2.2% to $74.36 per barrel, and natural gas futures were 3% lower at $2.36 per 1 million British Thermal Units. Kinetik Holdings (KNTK) was slipping past 5% after saying an upsized secondary offering of 6.5 million class A common shares by selling stockholder Apache Midstream has been priced at $31.50 apiece.
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The United States Oil Fund (USO) was 3.1% lower and the United States Natural Gas Fund (UNG) was down 4%. Global benchmark North Sea crude oil lost 2.2% to $74.36 per barrel, and natural gas futures were 3% lower at $2.36 per 1 million British Thermal Units. Kimbell Royalty Partners shares were up 1.8% premarket.
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The United States Oil Fund (USO) was 3.1% lower and the United States Natural Gas Fund (UNG) was down 4%. Global benchmark North Sea crude oil lost 2.2% to $74.36 per barrel, and natural gas futures were 3% lower at $2.36 per 1 million British Thermal Units. Kimbell Royalty Partners (KRP) said the borrowing base and total commitments under its revolving credit facility were raised to $550 million from $400 million.
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Energy stocks were declining premarket Tuesday as the Energy Select Sector SPDR Fund (XLE) was slipping by 0.9% recently. Global benchmark North Sea crude oil lost 2.2% to $74.36 per barrel, and natural gas futures were 3% lower at $2.36 per 1 million British Thermal Units. Kinetik Holdings (KNTK) was slipping past 5% after saying an upsized secondary offering of 6.5 million class A common shares by selling stockholder Apache Midstream has been priced at $31.50 apiece.
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2023-12-12 00:00:00 UTC
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Nvidia Stock Isn’t Losing Its AI Crown Anytime Soon. Buy NVDA Now.
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DCOMP
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https://www.nasdaq.com/articles/nvidia-stock-isnt-losing-its-ai-crown-anytime-soon.-buy-nvda-now.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nvidia (NASDAQ:NVDA) stands out as the king of all AI stocks in this market. Indeed, most investors (be they small or large) view NVDA stock as the key way to play the AI revolution. Given the company provides most of the high-performance chips required by companies in this space, it’s an easy pure-play to buy and hold, with clear upside momentum in terms of its growth and fundamentals.
That said, considering the company’s ballooning valuation amid increasing competition in this space, there are concerns. Add on top the fact that U.S.-China relations remain on rocky ground, and there’s already been a chip ban for certain AI-related chips, it’s unclear how robust this growth rate will be in one, two or five years from now.
So, what’s an investor looking to play the AI race to do? I think Nvidia may certainly feel the heat in the coming years, but it may not be dethroned from its pole position so easily.
Continued Challenge with Rivals
Following Wednesday’s launch of new chips targeting Nvidia’s AI computing dominance, Advanced Micro Devices’ (NASDAQ:AMD) shares surged 9%. AMD had initially projected over $2 billion in revenue from the chips next year but revised its AI chip market size forecast to over $400 billion in 2027, surpassing earlier estimates.
This indicated an opportunity for AMD and others to challenge NVDA stock, which currently holds over 80% market share in AI chips. AMD asserted its chips matched some Nvidia models in building complex AI systems and outpaced them in operation speed.
With around four decades of experience in financial markets, the belief is that assessing a company’s stock performance after a news release provides the best insights into the impact of the news. In this context, AMD’s entry into the AI chip market doesn’t necessarily spell bad news for NVDA, as NVDA has shown gains since the announcement of the MI300X in June.
Nvidia Is Resilient and More Advanced
Despite AMD announcing a chip to rival Nvidia, NVDA stock gained over 20% during the period, while AMD remained essentially flat. Traders and investors seemed skeptical about AMD’s potential as a real competitor to NVDA, raising doubts about AMD’s ability to develop a serious contender in the challenging realm of chip development and manufacturing.
The new AI chip revelation confirmed the success of AMD’s development program for the MI300X, signaling confidence in their product. Major players like Meta and Microsoft expressing openness to using the MI300X suggests potential success.
While it might seem like AMD’s gains would come at NVDA’s expense, the expanding market for AI chips, projected by AMD’s CEO Lisa Su to exceed $400 billion by 2027, implies that competition is necessary to meet the rising demand, making it a non-zero-sum game.
Nvidia Is the AI Game
In 2023, Nvidia experienced significant growth, securing approximately 90% market share in AI chips. With a soaring stock and robust earnings, Nvidia dominated the GPU market, crucial for AI model development. The company’s well-established position allowed it to meet increased demand for GPUs, leaving competitors struggling to catch up.
In Q3 2024, Nvidia witnessed a remarkable 206% year-over-year surge in revenue, accompanied by a staggering 1,600% increase in operating income. The notable growth was driven by a 279% rise in data center revenue, primarily from increased AI chip sales.
Despite its monumental success this year, questions linger about whether Nvidia’s earnings justify its robust stock performance or if it’s potentially overvalued. I believe that competition will likely take a bite out of Nvidia at some point, though the company’s business model has been resilient for well over a decade now. Thus, while I’m cautious about this stock for the time being, I can also see the long-term bullish thesis behind holding this stock for the long term. In my view, I’d rate Nvidia as a hold for those who own it now and a cautious buy on dips for those looking for exposure.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post Nvidia Stock Isn’t Losing Its AI Crown Anytime Soon. Buy NVDA Now. appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Continued Challenge with Rivals Following Wednesday’s launch of new chips targeting Nvidia’s AI computing dominance, Advanced Micro Devices’ (NASDAQ:AMD) shares surged 9%. Despite its monumental success this year, questions linger about whether Nvidia’s earnings justify its robust stock performance or if it’s potentially overvalued. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia (NASDAQ:NVDA) stands out as the king of all AI stocks in this market. Nvidia Is Resilient and More Advanced Despite AMD announcing a chip to rival Nvidia, NVDA stock gained over 20% during the period, while AMD remained essentially flat. Nvidia Is the AI Game In 2023, Nvidia experienced significant growth, securing approximately 90% market share in AI chips.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia (NASDAQ:NVDA) stands out as the king of all AI stocks in this market. Nvidia Is Resilient and More Advanced Despite AMD announcing a chip to rival Nvidia, NVDA stock gained over 20% during the period, while AMD remained essentially flat. Nvidia Is the AI Game In 2023, Nvidia experienced significant growth, securing approximately 90% market share in AI chips.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia (NASDAQ:NVDA) stands out as the king of all AI stocks in this market. This indicated an opportunity for AMD and others to challenge NVDA stock, which currently holds over 80% market share in AI chips. With a soaring stock and robust earnings, Nvidia dominated the GPU market, crucial for AI model development.
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712365.0
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2023-12-12 00:00:00 UTC
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Consumer Sector Update for 12/12/2023: HAS, GO, CHH, WH, XLP, XLY
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DCOMP
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https://www.nasdaq.com/articles/consumer-sector-update-for-12-12-2023%3A-has-go-chh-wh-xlp-xly
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Consumer stocks were steady pre-bell Tuesday, with the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) inactive.
Hasbro (HAS) was down more than 2% after saying in a regulatory filing that it expects to lay off about 900 employees, representing an additional step in the company's efforts to revise its cost and organizational structure.
Grocery Outlet (GO) said late Monday that Charles Bracher intends to step down as its chief financial officer, effective March 1, to pursue another opportunity. Grocery Outlet was falling past 4% in recent Tuesday premarket activity.
Choice Hotels International (CHH) said it has launched an exchange offer to acquire Wyndham Hotels & Resorts (WH) in a cash-and-stock deal. Wyndham Hotels & Resorts was up nearly 2% in recent Tuesday premarket activity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Hasbro (HAS) was down more than 2% after saying in a regulatory filing that it expects to lay off about 900 employees, representing an additional step in the company's efforts to revise its cost and organizational structure. Grocery Outlet (GO) said late Monday that Charles Bracher intends to step down as its chief financial officer, effective March 1, to pursue another opportunity. Grocery Outlet was falling past 4% in recent Tuesday premarket activity.
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Consumer stocks were steady pre-bell Tuesday, with the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) inactive. Grocery Outlet was falling past 4% in recent Tuesday premarket activity. Wyndham Hotels & Resorts was up nearly 2% in recent Tuesday premarket activity.
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Consumer stocks were steady pre-bell Tuesday, with the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) inactive. Choice Hotels International (CHH) said it has launched an exchange offer to acquire Wyndham Hotels & Resorts (WH) in a cash-and-stock deal. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consumer stocks were steady pre-bell Tuesday, with the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) inactive. Grocery Outlet was falling past 4% in recent Tuesday premarket activity. Wyndham Hotels & Resorts was up nearly 2% in recent Tuesday premarket activity.
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712366.0
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2023-12-12 00:00:00 UTC
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KLA Corporation (KLAC) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/kla-corporation-klac-hits-fresh-high%3A-is-there-still-room-to-run
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Have you been paying attention to shares of KLA (KLAC)? Shares have been on the move with the stock up 5.9% over the past month. The stock hit a new 52-week high of $563.61 in the previous session. KLA has gained 48.3% since the start of the year compared to the 48% move for the Zacks Computer and Technology sector and the 19.1% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 25, 2023, KLA reported EPS of $5.74 versus consensus estimate of $5.39 while it beat the consensus revenue estimate by 1.53%.
For the current fiscal year, KLA is expected to post earnings of $23.34 per share on $9.72 billion in revenues. This represents a -8% change in EPS on a -7.41% change in revenues. For the next fiscal year, the company is expected to earn $26 per share on $10.41 billion in revenues. This represents a year-over-year change of 11.38% and 7.08%, respectively.
Valuation Metrics
KLA may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as 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.
KLA has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.8X. On a trailing cash flow basis, the stock currently trades at 19.3X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 2.41. 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, KLA 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 KLA meets the list of requirements. Thus, it seems as though KLA shares could have a bit more room to run in the near term.
How Does KLAC Stack Up to the Competition?
Shares of KLAC 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 Bel Fuse Inc. (BELFB). BELFB has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Bel Fuse Inc. beat our consensus estimate by 30.25%, and for the current fiscal year, BELFB is expected to post earnings of $6.22 per share on revenue of $650.8 million.
Shares of Bel Fuse Inc. have gained 15.2% over the past month, and currently trade at a forward P/E of 9.43X and a P/CF of 10.49X.
The Electronics - Miscellaneous Products industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for KLAC and BELFB, even beyond their own solid fundamental situation.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
KLA Corporation (KLAC) : Free Stock Analysis Report
Bel Fuse Inc. (BELFB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. Bel Fuse Inc. beat our consensus estimate by 30.25%, and for the current fiscal year, BELFB is expected to post earnings of $6.22 per share on revenue of $650.8 million. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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In its last earnings report on October 25, 2023, KLA reported EPS of $5.74 versus consensus estimate of $5.39 while it beat the consensus revenue estimate by 1.53%. In terms of its value breakdown, the stock currently trades at 24X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.8X. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Bel Fuse Inc. (BELFB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 KLA meets the list of requirements. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Bel Fuse Inc. (BELFB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its last earnings report on October 25, 2023, KLA reported EPS of $5.74 versus consensus estimate of $5.39 while it beat the consensus revenue estimate by 1.53%. KLA has a Value Score of B. Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front.
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712367.0
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2023-12-12 00:00:00 UTC
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5 Top Growth Stocks to Make the Most of Santa Claus Rally
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https://www.nasdaq.com/articles/5-top-growth-stocks-to-make-the-most-of-santa-claus-rally
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Wall Street has been on fire since last month. U.S. stock markets have impressed this year, barring a brief period of August to October. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 11.9%, 22.6% and 40.8%, respectively.
The Fed has set the stage for the much-hyped Santa Claus rally this year in its December FOMC meeting. For three consecutive meetings, the central bank has kept the benchmark lending rate unchanged in the range of 5.25-5.5%. More importantly, the latest dot plot indicated at least three rate cuts of 25 basis points each in 2024.
At this stage, it will be prudent to invest in growth stocks that have strong potential to gain from the year-end rally.
Our Top Picks
We have narrowed our search to five growth stocks that have solid upside left for the rest of 2023. These stocks have witnessed positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
DocuSign Inc. DOCU provides a cloud-based, e-signature software platform in the United States and internationally that enables businesses to prepare, execute and act on agreements digitally. DOCU offers services to mortgage, non-profit, government, real estate, insurance, technology and healthcare industries.
The acquisitions of Seal Software and Liveoak Technologies are expected to add functionality to DocuSign Agreement Cloud and significantly expand its eNotary offerings. DOCU remains focused on continuously acquiring eSignature customers, improving its offerings, and expanding internationally.
DocuSign has an expected revenue and earnings growth rate of 9.1% and 39.9%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 38.2% over the last seven days.
DaVita Inc. DVA has been expanding its global presence via its Integrated Kidney Care business. DVA has been generating solid revenues by providing dialysis services. DVA has been opening and acquiring several dialysis centers both within the United States and overseas, which is promising. A strong solvency position is an added plus.
DaVita has an expected revenue and earnings growth rate of 3.3% and 22.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the last 30 days.
Palantir Technologies Inc. PLTR builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations. PLTR provides Palantir Gotham, a software platform that enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants.
Palantir Technologies has an expected revenue and earnings growth rate of 16.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for next-year earnings has improved 8.7% over the last 60 days.
Vertiv Holdings Co. VRT designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
Vertiv Holdings has an expected revenue and earnings growth rate of 20.7% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days.
Duolingo Inc. DUOL operates as a mobile learning platform in the United States, China, the United Kingdom, and internationally. DUOL offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. DUOL also provides a digital language proficiency assessment exam.
Duolingo has an expected revenue and earnings growth rate of 42.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 60 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DaVita Inc. (DVA) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : 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 DocuSign Inc. DOCU provides a cloud-based, e-signature software platform in the United States and internationally that enables businesses to prepare, execute and act on agreements digitally. Palantir Technologies Inc. PLTR builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations. PLTR provides Palantir Gotham, a software platform that enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants.
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Image Source: Zacks Investment Research DocuSign Inc. DOCU provides a cloud-based, e-signature software platform in the United States and internationally that enables businesses to prepare, execute and act on agreements digitally. Palantir Technologies has an expected revenue and earnings growth rate of 16.5% and more than 100%, respectively, for the current year. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DocuSign (DOCU) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Palantir Technologies has an expected revenue and earnings growth rate of 16.5% and more than 100%, respectively, for the current year. Duolingo has an expected revenue and earnings growth rate of 42.6% and more than 100%, respectively, for the current year. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DocuSign (DOCU) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score A. Image Source: Zacks Investment Research DocuSign Inc. DOCU provides a cloud-based, e-signature software platform in the United States and internationally that enables businesses to prepare, execute and act on agreements digitally. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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5435ffea-1a58-4641-aa9f-5204910657b7
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712368.0
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2023-12-12 00:00:00 UTC
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Best Growth Stocks to Buy for December 12th
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https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-december-12th-0
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 12th:
Griffon GFF This diversified management and holding company conducting business through wholly-owned subsidiaries, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.51% over the last 60 days.
Griffon Corporation Price and Consensus
Griffon Corporation price-consensus-chart | Griffon Corporation Quote
Griffon has a PEG ratio of 0.67 compared with 0.68 for the industry. The company possesses a Growth Score of A.
Griffon Corporation PEG Ratio (TTM)
Griffon Corporation peg-ratio-ttm | Griffon Corporation Quote
DaVita DVA: This company which is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD), carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days.
DaVita Inc. Price and Consensus
DaVita Inc. price-consensus-chart | DaVita Inc. Quote
DaVita has a PEG ratio of 0.73 compared with 1.35 for the industry. The company possesses a Growth Score of A.
DaVita Inc. PEG Ratio (TTM)
DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote
Everest Group, Ltd. EG: This company which is a property and casualty insurer and reinsurer in all states, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.8% over the last 60 days.
Everest Group, Ltd. Price and Consensus
Everest Group, Ltd. price-consensus-chart | Everest Group, Ltd. Quote
Everest Group has a PEG ratio of 0.19 compared with 0.77 for the industry. The company possesses a Growth Score of B.
Everest Group, Ltd. PEG Ratio (TTM)
Everest Group, Ltd. peg-ratio-ttm | Everest Group, Ltd. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DaVita Inc. (DVA) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 12th: Griffon GFF This diversified management and holding company conducting business through wholly-owned subsidiaries, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.51% over the last 60 days. The company possesses a Growth Score of A. Griffon Corporation PEG Ratio (TTM) Griffon Corporation peg-ratio-ttm | Griffon Corporation Quote DaVita DVA: This company which is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD), carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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The company possesses a Growth Score of A. Griffon Corporation PEG Ratio (TTM) Griffon Corporation peg-ratio-ttm | Griffon Corporation Quote DaVita DVA: This company which is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD), carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days. The company possesses a Growth Score of B. Everest Group, Ltd. PEG Ratio (TTM) Everest Group, Ltd. peg-ratio-ttm | Everest Group, Ltd. Quote See the full list of top ranked stocks here. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Growth Score of A. Griffon Corporation PEG Ratio (TTM) Griffon Corporation peg-ratio-ttm | Griffon Corporation Quote DaVita DVA: This company which is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD), carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days. The company possesses a Growth Score of A. DaVita Inc. PEG Ratio (TTM) DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote Everest Group, Ltd. EG: This company which is a property and casualty insurer and reinsurer in all states, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.8% over the last 60 days. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Growth Score of B. Everest Group, Ltd. PEG Ratio (TTM) Everest Group, Ltd. peg-ratio-ttm | Everest Group, Ltd. Quote See the full list of top ranked stocks here. Want the latest recommendations from Zacks Investment Research? Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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bf82eb36-19dd-4adb-ac56-3e09a7be29dd
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712369.0
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2023-12-12 00:00:00 UTC
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Sanofi (SNY) Terminates Pompe Disease Deal as FTC Objects
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https://www.nasdaq.com/articles/sanofi-sny-terminates-pompe-disease-deal-as-ftc-objects
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Sanofi SNY announced that it is canceling its previously announced licensing agreement with private biotech Maze Therapeutics for the latter’s Pompe Disease candidate, MZE001. Sanofi decided to terminate the deal due to the Federal Trade Commission’s (FTC) announcement that it is seeking a preliminary injunction against the deal. The FTC has issued an administrative complaint and authorized a lawsuit in federal court.
MZE001 is a glycogen synthase 1 (GYS1) inhibitor, which recently completed phase I development for Pompe disease, a rare degenerative muscle disorder. If eventually approved, MZE001 would become the first oral medication available for Pompe disease patients.
Sanofi already has a Pompe disease product in its portfolio called Nexviazyme (avalglucosidase alfa), an enzyme replacement therapy, which is approved for late-onset Pompe disease.
Sanofi’s stock has declined 2.6% so far this year against the industry’s rise of 4.3%.
Image Source: Zacks Investment Research
The FTC decided to block the deal, valued at up to $755 million, as it believes that Sanofi’s exclusive licensing deal will eliminate future competition in the Pompe disease market. The FTC explained that Sanofi’s Pompe disease product is intravenously administered, whereas Maze’s MZE001 is an oral tablet taken twice daily and holds the potential to significantly reduce patient burden. If approved, it would have been a significant threat to Sanofi’s market share for Nexviazyme as it may see much higher demand due to its benefit of lower treatment burden.
The proposed acquisition would have allowed Sanofi to price its Pompe disease drugs higher, leveraging its monopoly position. This may have deprived patients of lower-priced medicines.
Sanofi believes that the FTC’s decision could result in a long litigation and thus terminated the deal.
Zacks Rank & Stocks to Consider
Sanofi currently has a Zacks Rank #3 (Hold).
Sanofi Price and Consensus
Sanofi price-consensus-chart | Sanofi Quote
Some better-ranked drug/biotech companies worth considering are Novo Nordisk (NVO), Puma Biotech PBYI and CytomX Therapeutics CTMX, sporting a Zacks Rank #1 (Strong Buy) each currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.51 to $2.62 over the past 60 days. Estimates for 2024 have jumped from $2.95 per share to $3.14 over the same timeframe. NVO’s stock has surged 42.4% year to date.
Earnings of Novo Nordisk beat estimates in two of the last four quarters, missed in one and matched estimates in one, delivering an earnings surprise of 0.58% on average.
Estimates for Puma Biotech’s 2023 earnings per share have increased from 67 cents to 72 cents over the past 60 days. Estimates for 2024 have jumped from 55 cents per share to 64 cents over the same timeframe. PBYI’s stock has declined 10.2% year to date.
Earnings of Puma Biotech beat estimates in three of the last four quarters and missed in one, delivering an earnings surprise of 76.55% on average.
In the past 30 days, estimates for CytomX Therapeutics’ 2023 loss per share have narrowed from 37 cents to earnings of 2 cents per share. During the same period, loss per share estimates for 2024 have narrowed from 51 cents to 6 cents. Year to date, shares of CTMX have declined 13.1%.
CTMX’s earnings beat estimates in three of the last four quarters and missed in one, delivering an earnings surprise of 45.44% on average
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Sanofi (SNY) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report
CytomX Therapeutics, Inc. (CTMX) : 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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MZE001 is a glycogen synthase 1 (GYS1) inhibitor, which recently completed phase I development for Pompe disease, a rare degenerative muscle disorder. The FTC explained that Sanofi’s Pompe disease product is intravenously administered, whereas Maze’s MZE001 is an oral tablet taken twice daily and holds the potential to significantly reduce patient burden. If approved, it would have been a significant threat to Sanofi’s market share for Nexviazyme as it may see much higher demand due to its benefit of lower treatment burden.
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Sanofi Price and Consensus Sanofi price-consensus-chart | Sanofi Quote Some better-ranked drug/biotech companies worth considering are Novo Nordisk (NVO), Puma Biotech PBYI and CytomX Therapeutics CTMX, sporting a Zacks Rank #1 (Strong Buy) each currently. In the past 30 days, estimates for CytomX Therapeutics’ 2023 loss per share have narrowed from 37 cents to earnings of 2 cents per share. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Sanofi Price and Consensus Sanofi price-consensus-chart | Sanofi Quote Some better-ranked drug/biotech companies worth considering are Novo Nordisk (NVO), Puma Biotech PBYI and CytomX Therapeutics CTMX, sporting a Zacks Rank #1 (Strong Buy) each currently. CTMX’s earnings beat estimates in three of the last four quarters and missed in one, delivering an earnings surprise of 45.44% on average 4 Oil Stocks with Massive Upsides Global demand for oil is through the roof... and oil producers are struggling to keep up. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Sanofi already has a Pompe disease product in its portfolio called Nexviazyme (avalglucosidase alfa), an enzyme replacement therapy, which is approved for late-onset Pompe disease. Estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.51 to $2.62 over the past 60 days. In the past 30 days, estimates for CytomX Therapeutics’ 2023 loss per share have narrowed from 37 cents to earnings of 2 cents per share.
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e055b96a-7340-455a-908d-96756dda04a5
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712370.0
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2023-12-12 00:00:00 UTC
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Here's Why Investors Should Retain ResMed (RMD) Stock for Now
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https://www.nasdaq.com/articles/heres-why-investors-should-retain-resmed-rmd-stock-for-now-2
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ResMed Inc. RMD is well-poised for growth in the coming quarters, backed by the strength of the SaaS (Software-as-a-Service) business. It is progressing across several digital health technology initiatives further to increase the value proposition for its connected healthcare ecosystem. Further, its performance across the international markets also garners appreciation.
However, global economic uncertainties, as well as competitive disadvantages, may pose challenges to the company’s results of operations.
In the past year, this Zacks Rank #3 (Hold) stock has decreased 26.9% compared with the 8.1% decline of the industry and a 15.2% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $23.96 billion. RMD has an earnings yield of 4.46% against the industry’s yield of -1.80%. The company’s earnings surpassed estimates in three of the trailing four quarters and missed in another. It has an average earnings surprise of 1.80%.
Let’s delve deeper.
Upsides
Strategic Pacts to Boost SaaS Business: The business is considered an essential part of ResMed’s growth strategy, complementing the software and device solutions across the company’s core sleep apnea and respiratory care businesses. The most recent addition to the portfolio, MEDIFOX DAN, continues to surpass the company’s initial expectations with an accelerated contribution.
Image Source: Zacks Investment Research
Meanwhile, the Home Medical Equipment (“HME”) SaaS business under the Brightree brand is growing at a very rapid pace. The sustained high single-digit organic growth in the SaaS business is driven by strength in the HME segment and stability as well as increased tech adoption by customers in the facilities segment. Further, ResMed’s recent acquisition of Somnoware complements its current ecosystem of software solutions, including AirView for providers and physicians and Brightree for home care providers.
Potential in Digital Health: ResMed is leading the market in digital health technology, with more than 16 billion nights of medical data in the cloud and nearly 22.5 million cloud-connectable medical devices on people's bedside tables in 140 countries worldwide. The company is liberating this data to the cloud, unlocking value for patients, providers, physicians, payers and entire healthcare systems.
Further, ResMed’s key global customer-facing software products — AirView and myAir — are 100% in the cloud. In the coming quarters, the company is introducing several artificial intelligence-driven coaching features in the AirView system and on the myAir app that will provide personalized suggestions to increase patient therapy adherence and ultimately improve patient outcomes.
Increased Focus on International Markets: ResMed continues to invest and expand its presence in high-growth markets like China, South Korea, India, Brazil and many countries in Eastern Europe. Across Europe, Asia and other markets, device organic sales have been benefiting from the strong demand and continued availability of AS10 and AS11 cloud-connected devices.
In Europe, Asia and other markets, device sales increased by 20% in constant currency terms in the fiscal first quarter of 2024, reflecting strong demand and significantly improved availability of cloud-connected devices. There are huge opportunities for greater adoption of digital health technologies worldwide, with more than 2 billion people suffering from sleep apnea, COPD and asthma combined.
Downsides
Macroeconomic Challenges: Global macroeconomic conditions, including supply chain disruptions, fluctuations in foreign currency exchange rates and volatility in capital markets, could continue to affect ResMed’s operations results adversely. Decline in the global economic environment may reduce demand for the company’s products, resulting in lower sales, lower product prices and reduced reimbursement rates by third-party payers while increasing the cost of operating the business.
Furthermore, with the sustained inflationary pressures in the future, the company may struggle to keep in check its operating expenses as a percentage of net revenues. We are worried that this might adversely dent ResMed’s profitability.
Competitive Landscape: The market for SDB (sleep-disordered breathing) products is highly competitive with respect to product price, features and reliability. ResMed's primary competitors include Philips BV, DeVilbiss Healthcare, Fisher & Paykel Healthcare Corporation Limited and regional manufacturers, among others. The disparity between the company's resources and those of its competitors may increase due to consolidation in the healthcare industry.
Estimate Trend
The Zacks Consensus Estimate for RMD’s fiscal 2024 earnings per share (EPS) has moved down from $7.30 to $7.26 in the past seven days.
The Zacks Consensus Estimate for the company’s fiscal 2024 revenues is pegged at $4.68 billion, up 10.9% from the year-ago reported figure.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM.
Haemonetics has an estimated earnings growth rate of 28.4% for fiscal 2024 compared with the industry’s 15.3%. HAE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 16.1%. Its shares have declined 5.1% compared with the industry’s 6.5% fall in the past year.
HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Insulet, sporting a Zacks Rank #1 at present, has a long-term estimated earnings growth rate of 39.2% compared with the industry’s 11.7%. Shares of the company have lost 38.6% compared with the industry’s 6.5% decline over the past year.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.5%.
DexCom, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 33.6% compared with the industry’s 13.8%. Shares of DXCM have lost 1.5% compared to the industry’s 9.1% decline over the past year.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
ResMed Inc. (RMD) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Meanwhile, the Home Medical Equipment (“HME”) SaaS business under the Brightree brand is growing at a very rapid pace. There are huge opportunities for greater adoption of digital health technologies worldwide, with more than 2 billion people suffering from sleep apnea, COPD and asthma combined. Key Picks Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM.
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In Europe, Asia and other markets, device sales increased by 20% in constant currency terms in the fiscal first quarter of 2024, reflecting strong demand and significantly improved availability of cloud-connected devices. Decline in the global economic environment may reduce demand for the company’s products, resulting in lower sales, lower product prices and reduced reimbursement rates by third-party payers while increasing the cost of operating the business. Click to get this free report ResMed Inc. (RMD) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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HAE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 16.1%. DexCom, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 33.6% compared with the industry’s 13.8%. Click to get this free report ResMed Inc. (RMD) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company’s earnings surpassed estimates in three of the trailing four quarters and missed in another. Estimate Trend The Zacks Consensus Estimate for RMD’s fiscal 2024 earnings per share (EPS) has moved down from $7.30 to $7.26 in the past seven days. Haemonetics has an estimated earnings growth rate of 28.4% for fiscal 2024 compared with the industry’s 15.3%.
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712371.0
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2023-12-12 00:00:00 UTC
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Avolon agrees $18 bln deal for 140 Airbus, Boeing jets
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https://www.nasdaq.com/articles/avolon-agrees-%2418-bln-deal-for-140-airbus-boeing-jets
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Adds details, quotes in paragraphs 4-9
DUBLIN, Dec 12 (Reuters) - Global leasing giant Avolon said on Tuesday it had agreed to order 100 A321neo aircraft from Airbus AIR.PA and 40 737 MAX aircraft from Boeing BA.N in a deal its owner said was worth a combined $18 billion at list prices.
The Irish-based lessor's Chinese owner Bohai Leasing Co Ltd 000415.SZ said in filings to the Shenzhen Stock Exchange that the value of the Airbus deal was about $12.95 billion, based on the planemaker's 2018 list prices, with the Boeing transaction valued at about $4.9 billion based on its list prices.
Major airlines and lessors typically get large discounts from planemakers. Bohai, which holds a 70% stake in Avolon, said the purchase price was "somewhat discounted" from the list price.
Avolon said the new jets are scheduled for delivery by 2032 and will increase the size of its owned, managed and committed fleet to 1,037 aircraft, pushing it ahead of rival SMBC Aviation Capital as the world's second largest aircraft leasing firm.
Lessors have benefited from a rebound in travel demand following COVID-19 lockdowns and sharp increases in lease rates because of a lack of aircraft as manufacturers struggle to increase production.
Avolon also purchased 20 Airbus A330neos planes in September and 40 737 MAXs from Boeing in June. Leasing companies control more than half the world's fleet of aircraft.
"Today's orders strengthen our delivery pipeline and reflect our confidence in the long-term outlook for aviation," Avolon CEO Andy Cronin said in a statement.
"We have committed to direct orders for 200 new, fuel-efficient aircraft this year, supporting the transformation of our fleet to lower emissions aircraft."
(Reporting by Padraic Halpin in Dublin and Ethan Wang in Hong Kong; editing by Jason Neely and Barbara Lewis)
((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters Messaging: padraic.halpin.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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Adds details, quotes in paragraphs 4-9 DUBLIN, Dec 12 (Reuters) - Global leasing giant Avolon said on Tuesday it had agreed to order 100 A321neo aircraft from Airbus AIR.PA and 40 737 MAX aircraft from Boeing BA.N in a deal its owner said was worth a combined $18 billion at list prices. The Irish-based lessor's Chinese owner Bohai Leasing Co Ltd 000415.SZ said in filings to the Shenzhen Stock Exchange that the value of the Airbus deal was about $12.95 billion, based on the planemaker's 2018 list prices, with the Boeing transaction valued at about $4.9 billion based on its list prices. "Today's orders strengthen our delivery pipeline and reflect our confidence in the long-term outlook for aviation," Avolon CEO Andy Cronin said in a statement.
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Adds details, quotes in paragraphs 4-9 DUBLIN, Dec 12 (Reuters) - Global leasing giant Avolon said on Tuesday it had agreed to order 100 A321neo aircraft from Airbus AIR.PA and 40 737 MAX aircraft from Boeing BA.N in a deal its owner said was worth a combined $18 billion at list prices. The Irish-based lessor's Chinese owner Bohai Leasing Co Ltd 000415.SZ said in filings to the Shenzhen Stock Exchange that the value of the Airbus deal was about $12.95 billion, based on the planemaker's 2018 list prices, with the Boeing transaction valued at about $4.9 billion based on its list prices. Bohai, which holds a 70% stake in Avolon, said the purchase price was "somewhat discounted" from the list price.
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Adds details, quotes in paragraphs 4-9 DUBLIN, Dec 12 (Reuters) - Global leasing giant Avolon said on Tuesday it had agreed to order 100 A321neo aircraft from Airbus AIR.PA and 40 737 MAX aircraft from Boeing BA.N in a deal its owner said was worth a combined $18 billion at list prices. The Irish-based lessor's Chinese owner Bohai Leasing Co Ltd 000415.SZ said in filings to the Shenzhen Stock Exchange that the value of the Airbus deal was about $12.95 billion, based on the planemaker's 2018 list prices, with the Boeing transaction valued at about $4.9 billion based on its list prices. Avolon said the new jets are scheduled for delivery by 2032 and will increase the size of its owned, managed and committed fleet to 1,037 aircraft, pushing it ahead of rival SMBC Aviation Capital as the world's second largest aircraft leasing firm.
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Adds details, quotes in paragraphs 4-9 DUBLIN, Dec 12 (Reuters) - Global leasing giant Avolon said on Tuesday it had agreed to order 100 A321neo aircraft from Airbus AIR.PA and 40 737 MAX aircraft from Boeing BA.N in a deal its owner said was worth a combined $18 billion at list prices. Bohai, which holds a 70% stake in Avolon, said the purchase price was "somewhat discounted" from the list price. Avolon said the new jets are scheduled for delivery by 2032 and will increase the size of its owned, managed and committed fleet to 1,037 aircraft, pushing it ahead of rival SMBC Aviation Capital as the world's second largest aircraft leasing firm.
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037dda80-fa50-49f8-8ac6-1e114888b30b
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712372.0
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2023-12-12 00:00:00 UTC
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Best Value Stocks to Buy for December 12th
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https://www.nasdaq.com/articles/best-value-stocks-to-buy-for-december-12th-0
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Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 12th:
Griffon GFF: This diversified management and holding company conducting business through wholly-owned subsidiaries, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days.
Griffon Corporation Price and Consensus
Griffon Corporation price-consensus-chart | Griffon Corporation Quote
Griffon has a price-to-earnings ratio (P/E) of 11.28 compared with 20.54 for the S&P 500 index. The company possesses a Value Score of A.
Griffon Corporation PE Ratio (TTM)
Griffon Corporation pe-ratio-ttm | Griffon Corporation Quote
Amalgamated Financial AMAL: This full-service commercial bank and a chartered trust company which provides commercial banking and trust services nationally and offers products and services to both commercial and retail customers, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.5% over the last 60 days.
Amalgamated Financial Corp. Price and Consensus
Amalgamated Financial Corp. price-consensus-chart | Amalgamated Financial Corp. Quote
Amalgamated Financial has a price-to-earnings ratio (P/E) of 7.89 compared with 20.54 for the S&P 500 index. The company possesses a Value Score of B
Amalgamated Financial Corp. PE Ratio (TTM)
Amalgamated Financial Corp. pe-ratio-ttm | Amalgamated Financial Corp. Quote
Dole DOLE: This company which is a producer of fresh bananas and pineapples, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.54% over the last 60 days.
Dole PLC Price and Consensus
Dole PLC price-consensus-chart | Dole PLC Quote
Dole has a price-to-earnings ratio (P/E) of 10.12 compared with 20.54 for the S&P 500 index. The company possesses a Value Score of B
Dole PLC PE Ratio (TTM)
Dole PLC pe-ratio-ttm | Dole PLC Quote
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Dole PLC (DOLE) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
Amalgamated Financial Corp. (AMAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 12th: Griffon GFF: This diversified management and holding company conducting business through wholly-owned subsidiaries, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days. The company possesses a Value Score of A. Griffon Corporation PE Ratio (TTM) Griffon Corporation pe-ratio-ttm | Griffon Corporation Quote Amalgamated Financial AMAL: This full-service commercial bank and a chartered trust company which provides commercial banking and trust services nationally and offers products and services to both commercial and retail customers, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.5% over the last 60 days. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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The company possesses a Value Score of A. Griffon Corporation PE Ratio (TTM) Griffon Corporation pe-ratio-ttm | Griffon Corporation Quote Amalgamated Financial AMAL: This full-service commercial bank and a chartered trust company which provides commercial banking and trust services nationally and offers products and services to both commercial and retail customers, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.5% over the last 60 days. The company possesses a Value Score of B Amalgamated Financial Corp. PE Ratio (TTM) Amalgamated Financial Corp. pe-ratio-ttm | Amalgamated Financial Corp. Quote Dole DOLE: This company which is a producer of fresh bananas and pineapples, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.54% over the last 60 days. Click to get this free report Dole PLC (DOLE) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Amalgamated Financial Corp. (AMAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Value Score of A. Griffon Corporation PE Ratio (TTM) Griffon Corporation pe-ratio-ttm | Griffon Corporation Quote Amalgamated Financial AMAL: This full-service commercial bank and a chartered trust company which provides commercial banking and trust services nationally and offers products and services to both commercial and retail customers, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.5% over the last 60 days. The company possesses a Value Score of B Amalgamated Financial Corp. PE Ratio (TTM) Amalgamated Financial Corp. pe-ratio-ttm | Amalgamated Financial Corp. Quote Dole DOLE: This company which is a producer of fresh bananas and pineapples, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.54% over the last 60 days. Click to get this free report Dole PLC (DOLE) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Amalgamated Financial Corp. (AMAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Value Score of A. Griffon Corporation PE Ratio (TTM) Griffon Corporation pe-ratio-ttm | Griffon Corporation Quote Amalgamated Financial AMAL: This full-service commercial bank and a chartered trust company which provides commercial banking and trust services nationally and offers products and services to both commercial and retail customers, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.5% over the last 60 days. Zacks Investment Research has just released an urgent special report to help you bank on this trend. Click to get this free report Dole PLC (DOLE) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Amalgamated Financial Corp. (AMAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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712373.0
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2023-12-12 00:00:00 UTC
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Factors to Know Ahead of Costco's (COST) Q1 Earnings Release
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https://www.nasdaq.com/articles/factors-to-know-ahead-of-costcos-cost-q1-earnings-release
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Costco Wholesale Corporation COST is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on Dec 14 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $57.62 billion, indicating growth of 5.8% from the prior-year reported figure.
The bottom line of this Issaquah, WA-based company is anticipated to have improved year over year. The Zacks Consensus Estimate for first-quarter earnings per share has risen by a penny to $3.44 over the past 30 days, which suggests an increase of 11% from the year-ago period.
Costco has a trailing four-quarter earnings surprise of 2.1%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 3.2%.
Key Factors to Note
Costco’s growth strategies, better price management and decent membership trends have been contributing to its performance. The company’s strategy to sell products at discounted prices has helped attract customers who have been seeking both value and convenience. These factors, complemented by reduced supply-chain costs and an increasing penetration of private-label brands, are expected to have a positive impact on the overall results.
For the quarter in focus, we anticipate an impressive 5.5% jump in net sales and a 5.2% increase in total membership fees. Costco's paid membership base has been witnessing a steady rise, driven by a growing customer base and remarkable renewal rates. We also project 4.1% growth in comparable sales for the first quarter.
However, it is essential to acknowledge the presence of certain headwinds, including underlying inflationary pressures and a high interest rate environment, which may pose challenges. Additionally, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the SG&A rate, higher labor and occupancy costs, and increased marketing and other store-related expenses.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Costco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Costco has an Earnings ESP of +1.40% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Other Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Dollar Tree DLTR currently has an Earnings ESP of +0.25% and a Zacks Rank #3. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.65 suggests an increase from $2.04 reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.67 billion, which indicates a rise of 12.4% from the figure reported in the prior-year quarter.
Ross Stores ROST currently has an Earnings ESP of +0.14% and a Zacks Rank #3. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.62 suggests an increase of 23.7% from the year-ago quarter.
Ross Stores’ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.75 billion, which indicates an increase of 10.2% from the figure reported in the prior-year quarter. Ross Stores has a trailing four-quarter earnings surprise of 7.8%, on average.
Target TGT currently has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.38 suggests an increase of 25.9% from the year-ago quarter.
Target’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $31.88 billion, which indicates an increase of 1.6% from the figure reported in the prior-year quarter. Target has a trailing four-quarter earnings surprise of 30.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Target Corporation (TGT) : Free Stock Analysis Report
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Costco Wholesale Corporation COST is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on Dec 14 after the closing bell. The Zacks Consensus Estimate for first-quarter earnings per share has risen by a penny to $3.44 over the past 30 days, which suggests an increase of 11% from the year-ago period. Additionally, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the SG&A rate, higher labor and occupancy costs, and increased marketing and other store-related expenses.
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Costco Wholesale Corporation COST is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on Dec 14 after the closing bell. Costco Wholesale Corporation Price, Consensus and EPS Surprise Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote What the Zacks Model Unveils Our proven model predicts an earnings beat for Costco this time. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Costco Wholesale Corporation Price, Consensus and EPS Surprise Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote What the Zacks Model Unveils Our proven model predicts an earnings beat for Costco this time. The Zacks Consensus Estimate for the quarterly earnings per share of $2.65 suggests an increase from $2.04 reported in the year-ago quarter. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Costco Wholesale Corporation COST is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on Dec 14 after the closing bell. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 3.2%. Costco has an Earnings ESP of +1.40% and a Zacks Rank #3.
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2023-12-12 00:00:00 UTC
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Martin Marietta Materials, Inc. (MLM) Hit a 52 Week High, Can the Run Continue?
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DCOMP
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https://www.nasdaq.com/articles/martin-marietta-materials-inc.-mlm-hit-a-52-week-high-can-the-run-continue
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Have you been paying attention to shares of Martin Marietta (MLM)? Shares have been on the move with the stock up 4.4% over the past month. The stock hit a new 52-week high of $474.63 in the previous session. Martin Marietta has gained 39.6% since the start of the year compared to the 41.1% move for the Zacks Construction sector and the 38.2% return for the Zacks Building Products - Concrete and Aggregates 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 1, 2023, Martin Marietta reported EPS of $6.94 versus consensus estimate of $6.04 while it missed the consensus revenue estimate by 0.39%.
For the current fiscal year, Martin Marietta is expected to post earnings of $18.33 per share on $6.82 billion in revenues. This represents a 51.86% change in EPS on a 19.05% change in revenues. For the next fiscal year, the company is expected to earn $20.86 per share on $7.47 billion in revenues. This represents a year-over-year change of 13.81% and 9.55%, respectively.
Valuation Metrics
Martin Marietta may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Martin Marietta 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 25.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.7X. On a trailing cash flow basis, the stock currently trades at 23.2X versus its peer group's average of 11.5X. Additionally, the stock has a PEG ratio of 1.19. 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, Martin Marietta 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 Martin Marietta fits the bill. Thus, it seems as though Martin Marietta shares could have potential in the weeks and months to come.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. Fortunately, Martin Marietta currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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In its last earnings report on November 1, 2023, Martin Marietta reported EPS of $6.94 versus consensus estimate of $6.04 while it missed the consensus revenue estimate by 0.39%. For the current fiscal year, Martin Marietta is expected to post earnings of $18.33 per share on $6.82 billion in revenues. In terms of its value breakdown, the stock currently trades at 25.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.7X.
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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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Martin Marietta fits the bill.
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In its last earnings report on November 1, 2023, Martin Marietta reported EPS of $6.94 versus consensus estimate of $6.04 while it missed the consensus revenue estimate by 0.39%. For the next fiscal year, the company is expected to earn $20.86 per share on $7.47 billion in revenues. Martin Marietta has a Value Score of B.
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2023-12-12 00:00:00 UTC
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Zacks Industry Outlook Highlights Aurinia Pharmaceuticals, Alpine Immune Sciences, Lyra Therapeutics, Harpoon Therapeutics and Journey Medical
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-aurinia-pharmaceuticals-alpine-immune-sciences-lyra
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For Immediate Release
Chicago, IL – December 12, 2023 – Today, Zacks Equity Research discusses Aurinia Pharmaceuticals AUPH, Alpine Immune Sciences ALPN, Lyra Therapeutics LYRA, Harpoon Therapeutics HARP and Journey Medical Corp. DERM.
Industry: Drugs - Biotech
Link: https://www.zacks.com/commentary/2196116/5-small-drug-stocks-to-buy-on-hopes-of-better-prospects-in-the-new-year
The drug/biotech sector has started to pick up, with the New Year expected to be better than 2023. Concerns about the impact of Medicare drug price negotiations, regular pipeline setbacks, Federal Trade Commission's increasing scrutiny of mergers and acquisitions (M&As) in the sector and macroeconomic uncertainty and inflation remain.
Nonetheless, the fundamentals of the sector remain strong, and investors are expected to come back to this defensive space eventually. Overall, we believe that rising M&A activity, rapid innovation, a more favorable regulatory environment and insulation from recession concerns shape the biotech sector, keeping stocks like Aurinia Pharmaceuticals, Alpine Immune Sciences, Lyra Therapeutics, Harpoon Therapeutics and Journey Medical Corp. afloat.
Industry Description
The Zacks Medical-Drugs industry comprises small and some medium-sized drug companies, which make medicines for both human and veterinary use. We have a separate industry outlook discussion on big drugmakers. Small drugmakers have a limited portfolio of marketed drugs or no commercial-stage drugs at all.
Some drugmakers are dependent on just one marketed drug or pipeline candidate. For such companies, upfront or milestone payments from collaboration partners — in most cases their larger counterparts — are the main source of revenues. These companies need ample free cash flow to fund their R&D activities.
Factors Shaping the Future of the Medical-Drugs Industry
Pipeline Success: The success or failure of key pipeline candidates in clinical studies can significantly drive the stock price of industry players. Successful innovation and product line extensions in important therapeutic areas and strong clinical study results may act as important catalysts for the stocks.
Strong Collaboration Partners: These companies regularly seek external partners and collaborators for complementary strengths. A partnership deal with a popular drugmaker is a good sign about the potential of small pharma companies, especially when an equity investment is included in the deal. M&A deals are in full swing in the sector, signaling growth.
Investment in Technology for Innovation: For these smaller companies, succeeding in a shiftingglobal marketand evolving healthcare landscape requires adopting innovative business models, investing in new technologies and increasing investments in personalized medicines. Over the past few years, scientific and technological advancements have made it possible to develop personalized therapies.
Other than that, adoption and information exchange through the meaningful use of health IT, development of therapies that improve overall patient outcomes and investment in developing and emerging markets are some of the key priorities for drug companies. Artificial intelligence and machine learning techniques are being used for the rapid advancement of drug discovery and target identification processes.
Pipeline Setbacks: The smaller companies have their share of risk in the form of unstable cash flows. Also, the failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be huge setbacks for these smaller companies and significantly hurt their share price in the future.
Zacks Industry Rank Indicates Bright Prospects
The group's Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Medical-Drugs industry currently carries a Zacks Industry Rank #60, which places it in the top 24% of 251 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 you with a few top-ranked stocks to capitalize on the thriving prospects of the small and medium-sized drugmakers' space, let's take a look at the industry's recent stock-market performance and the valuation picture.
Industry Lags S&P 500, Outperforms Sector
The Zacks Medical-Drugs industry is a huge 194-stock group within the broader Medical sector. The industry has underperformed the S&P 500 but outperformed the Zacks Medical sector year to date.
Stocks in this industry have collectively declined 7.4% so far this year, while the Zacks S&P 500 composite has risen 20.7%. The Zacks Medical sector has declined 8.3% in the said time frame.
Industry's Current Valuation
On the basis of the trailing 12 months price-to-sales ratio (P/S TTM), which is a commonly used multiple for valuing these small drugmakers, the industry is currently trading at 1.97, compared with the S&P 500's 3.87 and the Zacks Medical sector's 2.97.
Over the last five years, the industry has traded as high as 4.92X, as low as 1.69X, and at the median of 2.62X.
5 Drug Stocks to Keep an Eye On
Journey Medical: This Scottsdale, AZ-based company markets eight branded and two generic products to treat some common skin conditions. Its important pipeline candidate is DFD-29, being developed for the treatment of rosacea. It has announced positive top-line data from two phase III studies. The studies achieved the co-primary and all secondary endpoints, demonstrating statistically superior efficacy over Oracea and placebo.
The studies also demonstrated the beneficial effect of DFD-29 on erythema (secondary endpoint), that is, redness, which is an important sign of rosacea severity. Improving erythema is relevant to rosacea treatment. DFD-29's significant impact on erythema reduction could prove to be the differentiating factor for DFD-29 over the current standard of care for this long-term inflammatory skin condition. The company plans to file a new drug application for DFD-29 around the end of 2023
Journey Medical's stock has risen 203.1% so far this year. The consensus estimate for 2024 loss has narrowed from 41 cents per share to 35 cents per share over the past 60 days. The company has a Zacks Rank #1 (Strong Buy).
Lyra Therapeutics: Watertown, MA-based-based Lyra Therapeutics is developing two therapies for the treatment of chronic rhinosinusitis (CRS) in late-stage studies. LYR-210 and LYR-220 are bioresorbable nasal implants designed to deliver six months of continuous anti-inflammatory medication to the sinonasal passages for the treatment of CRS, a highly prevalent inflammatory disease of the paranasal sinuses.
In September, Lyra announced positive top-line data from the BEACON phase II study of LYR-220 in CRS patients who have had prior ethmoid sinus surgery. The study met its primary safety endpoint with LYR-220 demonstrating statistically significant and clinically relevant improvements in symptom severity.
Enrollment has been completed in the pivotal phase III ENLIGHTEN I study on the second candidate, LYR-210, in CRS patients who have not had ethmoid sinus surgery, with top-line data expected in the first half of 2024. Enrollment is ongoing in the second pivotal phase III study, ENLIGHTEN II on LYR-210, also in pre-surgical CRS patient group.
The stock of Lyra Therapeutics has risen 25.1% so far this year. The consensus estimate for 2024 loss has narrowed from $1.27 per share to $1.09 per share over the past 60 days. The company has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Alpine Immune Sciences: Seattle, WA-based Alpine Immune Sciences has a diverse pipeline of clinical and preclinical candidates. Its lead pipeline candidate is povetacicept, a potentially best-in-class dual BAFF/APRIL inhibitor, which is being developed for multiple autoimmune diseases, such as systemic lupus erythematosus (SLE), autoimmune glomerulonephritis and autoimmune cytopenias. A key study is RUBY-3, which is a multi-cohort, open label, phase Ib/IIa study of povetacicept in IgA nephropathy (IgAN), lupus nephritis and primary membranous nephropathy.
Alpine Immune presented the first clinical data from the RUBY-3 study with povetacicept at the American Society of Nephrology Kidney Week. The data supported the candidate's best-in-class potential. Following the data presentation, Alpine Immune executed a follow-on equity offering of $150 million to bolster its balance sheet and accelerate pipeline development.
Alpine Immune plans to advance povetacicept into a pivotal study in IgAN and a phase II study in SLE in the second half of 2024. Initial data from another important study, the RUBY-4 study, on povetacicept in autoimmune cytopenias is also expected to be announced in 2024.
The stock of Alpine Immune Sciences has risen 129.1% so far this year. The consensus estimate for 2024 loss has narrowed from $1.47 per share to $1.38 per share over the past 60 days. The company has a Zacks Rank #2.
Harpoon Therapeutics: South San Francisco, CA-based Harpoon Therapeutics develops a novel class of T cell engagers, leveraging its proprietary Tri-specific T cell Activating Construct platform. The company has made significant progress in the development of its key pipeline candidates, HPN328 and HPN217, in recent months.
In October, Harpoon Therapeutics presented positive interim data from a phase I/II study of T cell engager HPN328 in patients with small cell lung cancer (SCLC) and other neuroendocrine tumor types. This was the largest data set so far for HPN328, showing compelling activity of HPN328 with the potential for best-in-class efficacy. The clinical benefit observed in the study, particularly the response data in the 1 mg priming dose cohorts, was encouraging.
Based on this data, Harpoon plans to select the recommended phase II dose or doses by the of this year to study multiple tumor types like SCLC and other neuroendocrine tumor types. Harpoon will meet with regulators in the first half of 2024 to discuss its development plans for HPN328.
Another important pipeline candidate is HPN217, which is being developed in a phase I study for relapsed, refractory multiple myeloma. In September, HPN217 demonstrated early and durable responses at the target dose of 12 mg.
The stock of Harpoon Therapeutics has risen 23.2% so far this year. The consensus estimate for 2024 loss has narrowed from $5.60 per share to $3.23 per share over the past 60 days. The company has a Zacks Rank #2.
Aurinia Pharmaceuticals: Canada-based Aurinia Pharmaceuticals makes medicines to treat autoimmune, kidney and rare diseases. It presently markets Lupkynis (voclosporin), an oral therapy for treating active lupus nephritis (LN). Lupkynis was launched in January 2021 and has seen strong demand trends ever since. Lupkynis was approved in the EU in September 2022.
Aurinia continues to study Lupkynis for use in expanded patient populations. Last month, its collaboration partner Otsuka filed a new drug application seeking approval for Lupkynis (voclosporin) in Japan.
Aurinia Pharmaceuticals has a Zacks Rank #2. The consensus estimate for 2024 loss has widened from 27 cents per share to 37 cents per share over the past 60 days. The company has a Zacks Rank #2. The stock has risen 105.1% so far this year.
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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.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Aurinia Pharmaceuticals Inc (AUPH) : Free Stock Analysis Report
Journey Medical Corporation (DERM) : Free Stock Analysis Report
Alpine Immune Sciences, Inc. (ALPN) : Free Stock Analysis Report
Harpoon Therapeutics, Inc. (HARP) : Free Stock Analysis Report
Lyra Therapeutics, Inc. (LYRA) : 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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Concerns about the impact of Medicare drug price negotiations, regular pipeline setbacks, Federal Trade Commission's increasing scrutiny of mergers and acquisitions (M&As) in the sector and macroeconomic uncertainty and inflation remain. 5 Drug Stocks to Keep an Eye On Journey Medical: This Scottsdale, AZ-based company markets eight branded and two generic products to treat some common skin conditions. LYR-210 and LYR-220 are bioresorbable nasal implants designed to deliver six months of continuous anti-inflammatory medication to the sinonasal passages for the treatment of CRS, a highly prevalent inflammatory disease of the paranasal sinuses.
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For Immediate Release Chicago, IL – December 12, 2023 – Today, Zacks Equity Research discusses Aurinia Pharmaceuticals AUPH, Alpine Immune Sciences ALPN, Lyra Therapeutics LYRA, Harpoon Therapeutics HARP and Journey Medical Corp. DERM. Overall, we believe that rising M&A activity, rapid innovation, a more favorable regulatory environment and insulation from recession concerns shape the biotech sector, keeping stocks like Aurinia Pharmaceuticals, Alpine Immune Sciences, Lyra Therapeutics, Harpoon Therapeutics and Journey Medical Corp. afloat. Click to get this free report Aurinia Pharmaceuticals Inc (AUPH) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Alpine Immune Sciences, Inc. (ALPN) : Free Stock Analysis Report Harpoon Therapeutics, Inc. (HARP) : Free Stock Analysis Report Lyra Therapeutics, Inc. (LYRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Industry Rank Indicates Bright Prospects The group's Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks. The Zacks Medical-Drugs industry currently carries a Zacks Industry Rank #60, which places it in the top 24% of 251 Zacks industries. Click to get this free report Aurinia Pharmaceuticals Inc (AUPH) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Alpine Immune Sciences, Inc. (ALPN) : Free Stock Analysis Report Harpoon Therapeutics, Inc. (HARP) : Free Stock Analysis Report Lyra Therapeutics, Inc. (LYRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Medical-Drugs industry currently carries a Zacks Industry Rank #60, which places it in the top 24% of 251 Zacks industries. Alpine Immune plans to advance povetacicept into a pivotal study in IgAN and a phase II study in SLE in the second half of 2024. Want the latest recommendations from Zacks Investment Research?
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712376.0
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2023-12-12 00:00:00 UTC
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Uber Technologies, Inc. (UBER) is Attracting Investor Attention: Here is What You Should Know
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https://www.nasdaq.com/articles/uber-technologies-inc.-uber-is-attracting-investor-attention%3A-here-is-what-you-should-2
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Uber Technologies (UBER) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this ride-hailing company have returned +19.6%, compared to the Zacks S&P 500 composite's +4.9% change. During this period, the Zacks Internet - Services industry, which Uber falls in, has gained 2.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Uber is expected to post earnings of $0.15 per share for the current quarter, representing a year-over-year change of -48.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
For the current fiscal year, the consensus earnings estimate of $0.37 points to a change of +108% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.08 indicates a change of +191.3% from what Uber is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Uber is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Uber, the consensus sales estimate of $9.76 billion for the current quarter points to a year-over-year change of +13.4%. The $37.1 billion and $42.85 billion estimates for the current and next fiscal years indicate changes of +16.4% and +15.5%, respectively.
Last Reported Results and Surprise History
Uber reported revenues of $9.29 billion in the last reported quarter, representing a year-over-year change of +11.4%. EPS of $0.10 for the same period compares with -$0.61 a year ago.
Compared to the Zacks Consensus Estimate of $9.47 billion, the reported revenues represent a surprise of -1.84%. The EPS surprise was -23.08%.
Over the last four quarters, Uber surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Uber is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Uber. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Uber.
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Click to get this free report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Uber is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Uber is rated Zacks Rank #3 (Hold). Compared to the Zacks Consensus Estimate of $9.47 billion, the reported revenues represent a surprise of -1.84%.
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7b41ab64-f409-429e-adf5-5ac4f4d120c7
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712377.0
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2023-12-12 00:00:00 UTC
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Shake Shack (SHAK) 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/shake-shack-shak-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, Shake Shack (SHAK) could be a good stock pick from a technical perspective. SHAK surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
SHAK could be on the verge of another rally after moving 20.4% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at SHAK's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 12 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on SHAK for more gains in the near future.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Shake Shack, Inc. (SHAK) : 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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After reaching an important support level, Shake Shack (SHAK) could be a good stock pick from a technical perspective. The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on SHAK for more gains in the near future.
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After reaching an important support level, Shake Shack (SHAK) could be a good stock pick from a technical perspective. Looking at SHAK's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. Click to get this free report Shake Shack, Inc. (SHAK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4 Oil Stocks with Massive Upsides Global demand for oil is through the roof... and oil producers are struggling to keep up. In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. Click to get this free report Shake Shack, Inc. (SHAK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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SHAK surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level. Want the latest recommendations from Zacks Investment Research?
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f3ee2795-f1ad-4bb5-805e-17cff48ecae0
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712378.0
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2023-12-12 00:00:00 UTC
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Is the Options Market Predicting a Spike in Embraer (ERJ) Stock?
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DCOMP
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-embraer-erj-stock
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Investors in Embraer S.A. ERJ 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 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Embraer shares, but what is the fundamental picture for the company? Currently, Embraer is a Zacks Rank #3 (Hold) in the Aerospace - Defense industry that ranks in the Top 18% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 68 cents per share to 38 cents in that period.
Given the way analysts feel about Embraer 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 >>
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Clearly, options traders are pricing in a big move for Embraer shares, but what is the fundamental picture for the company? Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Embraer 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. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Looking to Trade Options?
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77c6a162-8546-4483-8e30-437fc11f7677
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712379.0
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2023-12-12 00:00:00 UTC
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Recent Price Trend in Aspen Aerogels (ASPN) is Your Friend, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/recent-price-trend-in-aspen-aerogels-aspn-is-your-friend-heres-why
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Aspen Aerogels (ASPN) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. ASPN is quite a good fit in this regard, gaining 108.7% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 36.1% over the past four weeks ensures that the trend is still in place for the stock of this maker of insulation products.
Moreover, ASPN is currently trading at 87% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in ASPN may not reverse anytime soon.
In addition to ASPN, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. In addition to ASPN, there are several other stocks that currently pass through our "Recent Price Strength" screen. Want the latest recommendations from Zacks Investment Research?
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712380.0
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2023-12-12 00:00:00 UTC
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Medpace Holdings, Inc. (MEDP) Soars to 52-Week High, Time to Cash Out?
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DCOMP
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https://www.nasdaq.com/articles/medpace-holdings-inc.-medp-soars-to-52-week-high-time-to-cash-out
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Have you been paying attention to shares of Medpace (MEDP)? Shares have been on the move with the stock up 5.9% over the past month. The stock hit a new 52-week high of $305.46 in the previous session. Medpace has gained 40.3% since the start of the year compared to the -4.1% move for the Zacks Medical sector and the -5.9% return for the Zacks Medical 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 October 23, 2023, Medpace reported EPS of $2.22 versus consensus estimate of $2.04 while it beat the consensus revenue estimate by 3.41%.
For the current fiscal year, Medpace is expected to post earnings of $8.65 per share on $1.89 billion in revenues. This represents a 18.82% change in EPS on a 29.42% change in revenues. For the next fiscal year, the company is expected to earn $10.05 per share on $2.18 billion in revenues. This represents a year-over-year change of 16.24% and 15.47%, respectively.
Valuation Metrics
Medpace may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Medpace has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 34.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 22X. On a trailing cash flow basis, the stock currently trades at 34.7X versus its peer group's average of 9.1X. 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, Medpace 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 Medpace passes the test. Thus, it seems as though Medpace shares could have potential in the weeks and months to come.
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 >>
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Medpace Holdings, Inc. (MEDP) : 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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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. On a trailing cash flow basis, the stock currently trades at 34.7X versus its peer group's average of 9.1X. 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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In its last earnings report on October 23, 2023, Medpace reported EPS of $2.22 versus consensus estimate of $2.04 while it beat the consensus revenue estimate by 3.41%. In terms of its value breakdown, the stock currently trades at 34.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 22X. Click to get this free report Medpace Holdings, Inc. (MEDP) : 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 Medpace passes the test.
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For the next fiscal year, the company is expected to earn $10.05 per share on $2.18 billion in revenues. Valuation Metrics Medpace may be at a 52-week high right now, but what might the future hold for the stock? Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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712381.0
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2023-12-12 00:00:00 UTC
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Here's Why Momentum in Esco Technologies (ESE) Should Keep going
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https://www.nasdaq.com/articles/heres-why-momentum-in-esco-technologies-ese-should-keep-going-1
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Esco Technologies (ESE) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. ESE is quite a good fit in this regard, gaining 1.5% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 6.4% over the past four weeks ensures that the trend is still in place for the stock of this maker of smart meters and filtration products.
Moreover, ESE is currently trading at 92.1% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in ESE may not reverse anytime soon.
In addition to ESE, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
ESCO Technologies Inc. (ESE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. A price increase of 6.4% over the past four weeks ensures that the trend is still in place for the stock of this maker of smart meters and filtration products.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report ESCO Technologies Inc. (ESE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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In addition to ESE, there are several other stocks that currently pass through our "Recent Price Strength" screen. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." Want the latest recommendations from Zacks Investment Research?
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712382.0
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2023-12-12 00:00:00 UTC
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The Zacks Analyst Blog Highlights NVIDIA, The Progressive, Copart, W.R. Berkley and Everest Group
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-nvidia-the-progressive-copart-w.r.-berkley-and-everest
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For Immediate Release
Chicago, IL – December 12, 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: NVIDIA NVDA, The Progressive PGR, Copart CPRT, W.R. Berkley WRB and Everest Group Ltd. EG.
Here are highlights from Monday’s Analyst Blog:
What's in Store for '24 on the S&P 500?
The S&P 500 is up 19.9% this year due to a cooling in inflation, a less-hawkish Fed, an AI boom, a tech rally and an improvement in corporate earnings. We are currently in the last month of 2023, and the time is ripe to think about what lies ahead of the S&P 500 in 2024.
According to Bloomberg's Markets Live Pulse survey, the S&P 500 Index is expected to hit a new high in 2024, as quoted on Yahoo Finance. This positive outlook is driven by the belief that the U.S. economy will avoid a recession. However, a subdued consumer sector may lead to the index experiencing smaller gains compared to the notable 20% surge recorded this year.
The survey reveals that the median expectation of 518 respondents is for the S&P 500 to reach 4,808 points in the coming year, surpassing its previous closing peak of 4,797 from January 2022.
Market Resilience Despite Economic Uncertainty
The majority of respondents do not expect a massive economic downturn as the primary risk to the markets. Plus, there are high chances that the Federal Reserve will cut interest rates before July, arranging more supplies of cheap money and helping the S&P 500 Index to rally.
Wall Street Strategists' Optimism
Prominent Wall Street strategists, including those at Deutsche Bank AG and RBC Capital Markets, predict record highs for U.S. stocks (their target is 5,100) in 2024.RBC Capital Markets and Bank of America believe that the S&P 500 may hit 5,000 by the end of 2024, as quoted on MarketWatch, published on Morningstar.
Meanwhile, Fundstrat's head of research, Tom Lee, projects the benchmark S&P 500 Index to end 2024 at 5,200 as slumping inflation would lead to easing financial conditions and the U.S. economy will once again be able to avoid recession, as quoted on Yahoo Finance.
Any Wall of Worry?
Despite the overall optimism, not everyone supports the same positive outlook. The likelihood of a U.S. recession or slowdown, a dearth of rapid Fed policy easing, uncertainty regarding the U.S. presidential election in 2024, or any new political or geopolitical crisis may complicate things.
The 2024 U.S. presidential election is seen as a potential cause of concern for the stock market. RBC notes that, on average, the S&P 500 tends to grow by about 7.5% during presidential election years, which is less than its typical growth rate.
Around 33% of survey participants think a slowdown in consumer spending could act as a potential risk to the market rally in 2024.JPMorgan believes that the S&P 500 will fall next year amid a challenging macro backdrop. The J.P. Morgan target is 4,200, while Morgan Stanley and Goldman Sachs expect the index to end 2024, respectively, at 4,500 and 4,700.
Moderate Upside Gains Possible, If at all Record High Hit
While the median forecast in the survey points to a record closing high for the S&P 500, it represents only a modest 4% gain from its current levels. This is pretty lower than the historical average of a 19% annual uptick when the index grows, as quoted on the Yahoo Finance article.
Stock Picks
Below, we highlight five stocks from the S&P 500 that have solid upside left for 2024. These stocks have witnessed positive earnings estimate revisions for the upcoming quarter in the last 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has an upbeat VGM Score A or B.
NVIDIA – Zacks Rank #2
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. The stock is a huge beneficiary of the ongoing AI boom. The stock has witnessed 21.49% positive earnings estimate revisions for the upcoming quarter in the last 30 days. It has a VGM Score of B.
The Progressive – Zacks Rank #1
The Progressive Corporation is one of the major auto insurers in the country. The stock has witnessed 6.1% positive earnings estimate revisions for the upcoming quarter in the last 30 days. It has a VGM Score of B.
Copart– Zacks Rank #2
The company provides online auctions and a wide range of remarketing services to process and sell salvage and clean-title vehicles. The stock has witnessed 2.96% positive earnings estimate revisions for the upcoming quarter in the last 30 days. It has a VGM Score of B.
W.R. Berkley – Zacks Rank #1
W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty insurance business: Insurance and Reinsurance. Each of the operating units within Berkley participates in a niche market requiring specialized knowledge about a territory or product. The stock has witnessed 2.32% positive earnings estimate revisions for the upcoming quarter in the last 30 days. It has a VGM Score of B.
Everest Group Ltd. – Zacks Rank #1
Everest Group underwrites property and casualty reinsurance for insurance and reinsurance companies in the U.S. and international markets. The stock has witnessed 1.67% positive earnings estimate revisions for the upcoming quarter in the last 30 days. It has a VGM Score of A.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
Copart, Inc. (CPRT) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : 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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Meanwhile, Fundstrat's head of research, Tom Lee, projects the benchmark S&P 500 Index to end 2024 at 5,200 as slumping inflation would lead to easing financial conditions and the U.S. economy will once again be able to avoid recession, as quoted on Yahoo Finance. Around 33% of survey participants think a slowdown in consumer spending could act as a potential risk to the market rally in 2024.JPMorgan believes that the S&P 500 will fall next year amid a challenging macro backdrop. It has a VGM Score of B. Copart– Zacks Rank #2 The company provides online auctions and a wide range of remarketing services to process and sell salvage and clean-title vehicles.
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Stocks recently featured in the blog include: NVIDIA NVDA, The Progressive PGR, Copart CPRT, W.R. Berkley WRB and Everest Group Ltd. EG. Wall Street Strategists' Optimism Prominent Wall Street strategists, including those at Deutsche Bank AG and RBC Capital Markets, predict record highs for U.S. stocks (their target is 5,100) in 2024.RBC Capital Markets and Bank of America believe that the S&P 500 may hit 5,000 by the end of 2024, as quoted on MarketWatch, published on Morningstar. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report Copart, Inc. (CPRT) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Wall Street Strategists' Optimism Prominent Wall Street strategists, including those at Deutsche Bank AG and RBC Capital Markets, predict record highs for U.S. stocks (their target is 5,100) in 2024.RBC Capital Markets and Bank of America believe that the S&P 500 may hit 5,000 by the end of 2024, as quoted on MarketWatch, published on Morningstar. Each of our picks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has an upbeat VGM Score A or B. NVIDIA – Zacks Rank #2 NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report Copart, Inc. (CPRT) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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According to Bloomberg's Markets Live Pulse survey, the S&P 500 Index is expected to hit a new high in 2024, as quoted on Yahoo Finance. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. Want the latest recommendations from Zacks Investment Research?
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2d915c94-5b68-4be5-ab95-ccf187274c7e
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712383.0
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2023-12-12 00:00:00 UTC
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Casey's (CASY) Q2 Earnings Top, Inside Same-Store Sales Rise
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https://www.nasdaq.com/articles/caseys-casy-q2-earnings-top-inside-same-store-sales-rise
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Casey's General Stores, Inc. CASY came up with second-quarter fiscal 2024 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line beat the same. Notably, both metrics improved year over year. The company demonstrated strength in Inside same-store sales, underscoring its ability to engage customers effectively. Furthermore, it registered another strong quarter of fuel margin.
A Closer Look at Results
Casey's, one of the leading convenience store chains in the United States, posted quarterly earnings of $4.24 per share, which surpassed the Zacks Consensus Estimate of $3.74 and increased from earnings of $3.67 reported in the prior-year period.
Total revenues of $4,064.4 million fell short of the Zacks Consensus Estimate of $4,148 million but increased 2.2% year over year.
Total Inside sales jumped 6.2% to $1,346.9 million during the quarter. This was driven by a stellar performance in the prepared food and dispensed beverage category, including whole pizza pies, bakery and dispensed beverages as well as non-alcoholic and alcoholic beverages in the grocery and general merchandise category. Inside same-store sales increased 2.9% compared with a 7.9% rise registered in the year-ago period. We had expected Inside same-store sales to increase 3.7%.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote
Margins & Expenses
Gross profit increased 9.2% year over year to $885.6 million during the quarter. Gross margin expanded 140 basis points to 21.8%. The total Inside gross profit increased 9.7% to $553.3 million. Meanwhile, the Inside margin increased 130 basis points to 41.1% due to softening of prepared food and dispensed beverage ingredient costs as well as increased sales of private label products.
EBITDA increased 12.6% year over year to $305.9 million during the quarter under discussion. This can be attributed to higher profitability inside the store and higher fuel margin, partly offset by a rise in operating expenses owing to operating 129 more stores.
Casey's witnessed an increase of 7.5% in operating expenses of $579.7 million. The metric increased for operating 129 additional stores compared with the same period last year. We had estimated a 6.9% increase in operating expenses.
Performance of Categories
Prepared Food & Dispensed Beverage sales rose 8.9% to $382.5 million, faring better than our estimated growth of 6.6%. Same-store sales increased 6.1% compared with 10.5% in the year-ago quarter. The Prepared Food & Dispensed Beverage margin increased to 59% from 56.7% in the year-ago period.
Grocery & General Merchandise sales rose 5.2% to $964.4 million during the quarter, falling short of our projected growth of 6.9%. Same-store sales increased 1.7% compared with 6.9% growth in the year-ago quarter. The Grocery & General Merchandise margin increased to 34% from 33.3% in the year-ago period.
We note that Fuel sales increased a marginal 0.4% year over year to $2,646.5 million during the quarter. Fuel gallons sold jumped 4% to 730.4 million due to an increase in store count. We had anticipated an increase of 3.4% in fuel gallons sold.
Fuel gallons same-store sales remained flat compared with a 0.3% increase registered in the year-ago period. Fuel gross profit rose 8.6% to $308.8 million. We note that the fuel margin increased to 42.3 cents per gallon from 40.5 cents per gallon in the prior-year period.
Store Update
As of Oct 31, 2023, the company operated 2,592 stores. Casey's expects to add at least 150 stores in fiscal 2024.
Other Financial Aspects
Casey's ended the quarter with cash and cash equivalents of $409.9 million, long-term debt and finance lease obligations (net of current maturities) of $1,596.8 million and shareholders’ equity of $2,897.4 million.
During the quarter, Casey's repurchased shares worth approximately $30 million and expects to repurchase at least $100 million in shares throughout the fiscal year. The company has $340 million remaining under its existing share repurchase authorization.
FY24 Outlook
For fiscal 2024, Casey's estimates Inside same-store sales to increase between 3.5% and 5% and Inside margin in the band of 40-41%. Management foresees same-store fuel gallons sold between negative 1% and positive 1%. It expects fiscal 2024 EBITDA growth to be in line with the long-term strategic plan's target of 8-10%.
The company anticipates total operating expenses to increase approximately 6% to 8%. It expects to invest roughly $500 million to $550 million in fiscal 2024.
Shares of this Zacks Rank #2 (Buy) company have advanced 24.1% in the past six months compared with the industry’s 21.5% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Picks You Can’t Miss Out On
Here, we have highlighted three other top-ranked stocks, namely Vital Farms VITL, The Kraft Heinz Company KHC and Celsius Holdings CELH.
Vital Farms 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.
Kraft Heinz, which manufactures and markets food and beverage products, currently has a Zacks Rank #2. KHC has a trailing four-quarter earnings surprise of 9.9%, on average.
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, the maker of the leading global fitness drink, CELSIUS, currently carries a Zacks Rank #2. Celsius Holdings 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 185.2%, respectively, from the year-ago reported numbers.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Casey's General Stores, Inc. (CASY) : 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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Other Picks You Can’t Miss Out On Here, we have highlighted three other top-ranked stocks, namely Vital Farms VITL, The Kraft Heinz Company KHC and Celsius Holdings CELH. 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. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 185.2%, respectively, from the year-ago reported numbers.
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Casey's General Stores, Inc. Price, Consensus and EPS Surprise Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote Margins & Expenses Gross profit increased 9.2% year over year to $885.6 million during the quarter. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 185.2%, respectively, from the year-ago reported numbers. Click to get this free report Casey's General Stores, Inc. (CASY) : 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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Total revenues of $4,064.4 million fell short of the Zacks Consensus Estimate of $4,148 million but increased 2.2% year over year. Casey's General Stores, Inc. Price, Consensus and EPS Surprise Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote Margins & Expenses Gross profit increased 9.2% year over year to $885.6 million during the quarter. Click to get this free report Casey's General Stores, Inc. (CASY) : 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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Casey's General Stores, Inc. Price, Consensus and EPS Surprise Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote Margins & Expenses Gross profit increased 9.2% year over year to $885.6 million during the quarter. During the quarter, Casey's repurchased shares worth approximately $30 million and expects to repurchase at least $100 million in shares throughout the fiscal year. Other Picks You Can’t Miss Out On Here, we have highlighted three other top-ranked stocks, namely Vital Farms VITL, The Kraft Heinz Company KHC and Celsius Holdings CELH.
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2023-12-12 00:00:00 UTC
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Technology Sector Update for 12/12/2023: NOK, ORCL, GOOG, XLK, XSD
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https://www.nasdaq.com/articles/technology-sector-update-for-12-12-2023%3A-nok-orcl-goog-xlk-xsd
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Technology stocks were mixed premarket Tuesday, with the Technology Select Sector SPDR Fund (XLK) 1.2% lower while the SPDR S&P Semiconductor ETF (XSD) was recently up 0.1%.
Nokia (NOK) agreed to acquire Fenix Group, a privately held company specializing in communication offerings for the defense segment. Nokia also said it is working with Deutsche Telekom on an open radio access network and that it is lowering the 2026 target for comparable operating margin. Nokia was up more than 3% pre-bell.
Oracle (ORCL) reported fiscal Q2 revenue of $12.94 billion, up from $12.28 billion a year earlier. Analysts surveyed by Capital IQ expected $13.05 billion. Oracle was down more than 9% in recent premarket activity.
Alphabet's (GOOG) Google has lost an antitrust trial to Epic Games after a US court ruled the tech giant was running an illegal monopoly with its app store and payment system. Alphabet was 1% lower pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nokia (NOK) agreed to acquire Fenix Group, a privately held company specializing in communication offerings for the defense segment. Nokia also said it is working with Deutsche Telekom on an open radio access network and that it is lowering the 2026 target for comparable operating margin. Alphabet's (GOOG) Google has lost an antitrust trial to Epic Games after a US court ruled the tech giant was running an illegal monopoly with its app store and payment system.
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Technology stocks were mixed premarket Tuesday, with the Technology Select Sector SPDR Fund (XLK) 1.2% lower while the SPDR S&P Semiconductor ETF (XSD) was recently up 0.1%. Oracle was down more than 9% in recent premarket activity. Alphabet was 1% lower pre-bell.
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Technology stocks were mixed premarket Tuesday, with the Technology Select Sector SPDR Fund (XLK) 1.2% lower while the SPDR S&P Semiconductor ETF (XSD) was recently up 0.1%. Nokia also said it is working with Deutsche Telekom on an open radio access network and that it is lowering the 2026 target for comparable operating margin. Oracle (ORCL) reported fiscal Q2 revenue of $12.94 billion, up from $12.28 billion a year earlier.
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Nokia was up more than 3% pre-bell. Oracle (ORCL) reported fiscal Q2 revenue of $12.94 billion, up from $12.28 billion a year earlier. Oracle was down more than 9% in recent premarket activity.
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457ff44e-ee4e-4fc2-a553-6a6d3aa7aa53
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712385.0
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2023-12-12 00:00:00 UTC
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Health Care Sector Update for 12/12/2023: ICVX, AZN, PFE, SGEN, CNC, XLV, IBB
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DCOMP
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https://www.nasdaq.com/articles/health-care-sector-update-for-12-12-2023%3A-icvx-azn-pfe-sgen-cnc-xlv-ibb
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Health care stocks were mixed premarket Tuesday, with the Health Care Select Sector SPDR Fund (XLV) up 0.3% and the iShares Biotechnology ETF (IBB) recently unchanged.
Icosavax (ICVX) was rallying by more than 48% after AstraZeneca (AZN) agreed to acquire the company for up to $1.1 billion.
Pfizer (PFE) said it expects to close its planned acquisition of Seagen (SGEN) on Thursday after it has received all required regulatory approvals. Seagen was up over 3% pre-bell.
Centene (CNC) was advancing by more than 2% after it released 2024 guidance for adjusted earnings and said its board approved an increase of $4 billion to a share-buyback program.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Icosavax (ICVX) was rallying by more than 48% after AstraZeneca (AZN) agreed to acquire the company for up to $1.1 billion. Pfizer (PFE) said it expects to close its planned acquisition of Seagen (SGEN) on Thursday after it has received all required regulatory approvals. Centene (CNC) was advancing by more than 2% after it released 2024 guidance for adjusted earnings and said its board approved an increase of $4 billion to a share-buyback program.
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Health care stocks were mixed premarket Tuesday, with the Health Care Select Sector SPDR Fund (XLV) up 0.3% and the iShares Biotechnology ETF (IBB) recently unchanged. Centene (CNC) was advancing by more than 2% after it released 2024 guidance for adjusted earnings and said its board approved an increase of $4 billion to a share-buyback program. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Health care stocks were mixed premarket Tuesday, with the Health Care Select Sector SPDR Fund (XLV) up 0.3% and the iShares Biotechnology ETF (IBB) recently unchanged. Pfizer (PFE) said it expects to close its planned acquisition of Seagen (SGEN) on Thursday after it has received all required regulatory approvals. Centene (CNC) was advancing by more than 2% after it released 2024 guidance for adjusted earnings and said its board approved an increase of $4 billion to a share-buyback program.
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Health care stocks were mixed premarket Tuesday, with the Health Care Select Sector SPDR Fund (XLV) up 0.3% and the iShares Biotechnology ETF (IBB) recently unchanged. Icosavax (ICVX) was rallying by more than 48% after AstraZeneca (AZN) agreed to acquire the company for up to $1.1 billion. Pfizer (PFE) said it expects to close its planned acquisition of Seagen (SGEN) on Thursday after it has received all required regulatory approvals.
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f2d20902-90ee-4d2b-963a-f8cd14ced4c9
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712386.0
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2023-12-12 00:00:00 UTC
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Zacks.com featured highlights include NRG Energy, Thomson Reuters, Suzano, Cboe Global Markets and Arch Capital Group
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-nrg-energy-thomson-reuters-suzano-cboe-global
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For Immediate Release
Chicago, IL – December 15, 2023 – Stocks in this week’s article are NRG Energy, Inc. NRG, Thomson Reuters Corp. TRI, Suzano S.A. SUZ, Cboe Global Markets, Inc. CBOE and Arch Capital Group Ltd. ACGL.
5 Stocks with High ROE to Buy as the Fed Spurs Santa Claus Rally
The U.S. equity markets witnessed a spectacular rally yesterday, buoyed by the Federal Reserve's decision to hold interest rates steady in the 5.25% to 5.5% range while pledging to cut the same several times next year. The much-anticipated acknowledgment of a decelerating inflation trend lifted the leading benchmark indices to 52-week highs and propelled them to record tallies.
While the S&P crossed 4,700 for the first time since January 2022, the Dow closed above the 37,000 mark — exceeding a previous record set in the same month. This buoyed the ongoing Santa Claus rally that was fueled by solid jobs and consumer price index data. The November non-farm payrolls report showed that the jobless rate fell to 3.7% from 3.9% in the prior month. The economy also added 199,000 jobs compared with 150,000 job additions in October, signifying economic strength.
The consumer price index was up 3.1% in November on a year-over-year basis and 0.1% month over month. The latest GDP data also revealed that the economy grew in the third quarter at a stronger-than-forecast annual rate of 5.2%.
As investors employ a wait-and-see approach in a classic example of "backing and filling" in the market, they can benefit from "cash cow" stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. NRG Energy, Inc., Thomson Reuters Corp., Suzano S.A., Cboe Global Markets, Inc. and Arch Capital Group Ltd. are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders' Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management's efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 12 stocks that qualified the screening:
NRG Energy: Headquarters in Houston, TX, NRG Energy is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial and commercial consumers in major competitive power markets in the United States. The company also provides system power, distributed generation, renewable products, backup generation, energy efficiency and advisory services, as well as carbon management and specialty services.
The stock delivered a trailing four-quarter earnings surprise of 4.7%, on average. NRG Energy carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Thomson Reuters: Based in Toronto, Canada, Thomson Reuters serves professionals across legal, tax, accounting, compliance, government and media sectors. Its products combine highly specialized software and insights to empower professionals with the data, intelligence and solutions needed to make informed decisions with transparency.
Thomson Reuters has a long-term earnings growth expectation of 11.1% and delivered a trailing four-quarter earnings surprise of 12.2%, on average. It carries a Zacks Rank #2.
Suzano: Headquartered in Salvador, Brazil, Suzano produces and sells eucalyptus pulp and paper products. With more than 90 years of experience, this vertically integrated firm is one of the largest producers of paper and graphic products in South America.
Suzano has a long-term earnings growth expectation of 6.9%. It has a VGM Score of B. It carries a Zacks Rank #2.
Cboe Global: Based in Chicago, IL, Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. It offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, ETPs, global foreign exchange and multi-asset volatility products based on the VIX Index.
The company has a long-term earnings growth expectation of 10.2% and delivered a trailing four-quarter earnings surprise of 4.1%, on average. Cboe Global sports a Zacks Rank #1.
Arch Capital: Headquartered in Pembroke, Bermuda, Arch Capital offers insurance, reinsurance and mortgage insurance across the world. It 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.
Arch Capital carries a Zacks Rank #2. It has a long-term earnings growth expectation of 10%. It delivered a trailing four-quarter earnings surprise of 35.2%, on average. It has a VGM Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2197861/5-stocks-with-high-roe-to-buy-as-fed-spurs-santa-claus-rally
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
Thomson Reuters Corp (TRI) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
Suzano S.A. Sponsored ADR (SUZ) : 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 investors employ a wait-and-see approach in a classic example of "backing and filling" in the market, they can benefit from "cash cow" stocks that garner higher returns. NRG Energy, Inc., Thomson Reuters Corp., Suzano S.A., Cboe Global Markets, Inc. and Arch Capital Group Ltd. are some of the stocks with high ROE to profit from. Its products combine highly specialized software and insights to empower professionals with the data, intelligence and solutions needed to make informed decisions with transparency.
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For Immediate Release Chicago, IL – December 15, 2023 – Stocks in this week’s article are NRG Energy, Inc. NRG, Thomson Reuters Corp. TRI, Suzano S.A. SUZ, Cboe Global Markets, Inc. CBOE and Arch Capital Group Ltd. ACGL. NRG Energy, Inc., Thomson Reuters Corp., Suzano S.A., Cboe Global Markets, Inc. and Arch Capital Group Ltd. are some of the stocks with high ROE to profit from. Click to get this free report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Suzano S.A.
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For Immediate Release Chicago, IL – December 15, 2023 – Stocks in this week’s article are NRG Energy, Inc. NRG, Thomson Reuters Corp. TRI, Suzano S.A. SUZ, Cboe Global Markets, Inc. CBOE and Arch Capital Group Ltd. ACGL. Here are five of the 12 stocks that qualified the screening: NRG Energy: Headquarters in Houston, TX, NRG Energy is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial and commercial consumers in major competitive power markets in the United States. Click to get this free report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Suzano S.A.
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A high ROE ensures that the company is reinvesting cash at a high rate of return. NRG Energy, Inc., Thomson Reuters Corp., Suzano S.A., Cboe Global Markets, Inc. and Arch Capital Group Ltd. are some of the stocks with high ROE to profit from. For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2197861/5-stocks-with-high-roe-to-buy-as-fed-spurs-santa-claus-rally 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.
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2023-12-12 00:00:00 UTC
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OPEC Sees Strong Demand Growth for Oil in 2024: Here's Why
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https://www.nasdaq.com/articles/opec-sees-strong-demand-growth-for-oil-in-2024%3A-heres-why
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Despite the recent challenges, the oil-producing group OPEC remains optimistic about the future of the market. In its December Oil Market Report, the organization highlighted the strong demand for crude oil, expecting it to be higher than the increase in oil supply from non-OPEC sources. This positive view persists even though oil prices recently went down, a drop that OPEC blames on speculators and their "exaggerated concerns."
Considering OPEC’s resilient demand expectations, we believe that oil’s current levels of just over $70 allows long-term-oriented market participants to buy shares in quality companies at attractive prices. Investors interested in the sector could benefit from having stocks like Murphy USA MUSA, EOG Resources EOG and Liberty Energy LBRT in their portfolio.
OPEC's Conviction Powered by Robust Fundamentals
OPEC is sure about the demand for its own crude oil, estimating that it will need to churn out an average of 29.68 million barrels per day (b/d) in the first quarter of 2024. This is much more than the 27.84 million b/d it produced in November. To address worries in the market, OPEC members and their allies, like Russia, have decided to make deeper cuts in production by 700,000 b/d. This strategic move aims to counter the negative feelings in the market and make global oil supply even tighter.
OPEC's confidence is backed by the overall global economy. Notwithstanding certain issues, it notes that the economy grew more than expected in the first three quarters of 2023. The prospect of accommodative monetary policies and improved geopolitical conditions adds to the positive outlook. OPEC points out key factors driving demand, such as strong global GDP growth, better economic conditions in China, and growth in OECD Americas.
Recognizing Economic Challenges & Non-OPEC Supply Growth
Challenges are still present, with the risk of economic downturns in major consumer countries and difficulties in China's demand for oil. However, OPEC believes that the recent drop in oil prices is due to speculators. They say that "exaggerated concerns about oil demand growth" have made the market feel less positive. This shows that OPEC thinks the market changes are more because of speculation than real changes in how much oil is available and needed.
OPEC recognizes that more oil is being produced outside their group. They keep their prediction for how much this non-OPEC production will grow: 1.8 million b/d in 2023 and 1.4 million b/d in 2024. The United States is expected to play a big part in this increase, with American liquids production going up by 1.3 million b/d in 2023. Other countries adding to the growth include Brazil, Kazakhstan, Norway, Guyana, Mexico and China.
What Lies Ahead?
OPEC's report for December keeps its prediction of a 2.25 million b/d growth in oil demand for 2024. The organization is cautiously hopeful about the market in 2024, noting strong global economic growth and positive economic activities. Even with the recent fall in oil prices, OPEC sticks to its forecast, highlighting the need to understand the difference between short-term changes in the market and the long-term demand for oil.
3 Energy Stocks to Buy
Having gone through the latest OPEC Oil Market Report, investors interested in the energy space might consider the operators mentioned below. Each of these companies currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA: Murphy USA beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of 7%, on average.
Murphy USA is valued at around $7.7 billion. The company has seen its shares gain 25.1% in a year.
EOG Resources: EOG Resources beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. EOG has a trailing four-quarter earnings surprise of 9.2%, on average.
EOG is valued at around $69.1 billion. The company has seen its shares drop 4.1% in a year.
Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth.
Liberty Energy is valued at around $3 billion. LBRT has seen its shares rise 18.8% in a year.
Zacks 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
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This positive view persists even though oil prices recently went down, a drop that OPEC blames on speculators and their "exaggerated concerns." Considering OPEC’s resilient demand expectations, we believe that oil’s current levels of just over $70 allows long-term-oriented market participants to buy shares in quality companies at attractive prices. This strategic move aims to counter the negative feelings in the market and make global oil supply even tighter.
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In its December Oil Market Report, the organization highlighted the strong demand for crude oil, expecting it to be higher than the increase in oil supply from non-OPEC sources. Investors interested in the sector could benefit from having stocks like Murphy USA MUSA, EOG Resources EOG and Liberty Energy LBRT in their portfolio. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its December Oil Market Report, the organization highlighted the strong demand for crude oil, expecting it to be higher than the increase in oil supply from non-OPEC sources. OPEC's Conviction Powered by Robust Fundamentals OPEC is sure about the demand for its own crude oil, estimating that it will need to churn out an average of 29.68 million barrels per day (b/d) in the first quarter of 2024. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its December Oil Market Report, the organization highlighted the strong demand for crude oil, expecting it to be higher than the increase in oil supply from non-OPEC sources. OPEC's report for December keeps its prediction of a 2.25 million b/d growth in oil demand for 2024. The company has seen its shares drop 4.1% in a year.
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2023-12-12 00:00:00 UTC
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Thinking of Buying Dutch Bros Stock? Don't Ignore the Bear Case
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https://www.nasdaq.com/articles/thinking-of-buying-dutch-bros-stock-dont-ignore-the-bear-case
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Most readers might not be familiar with Dutch Bros (NYSE: BROS), an operator and franchisor of drive-thru coffee houses in the U.S. The business sells more than just espresso-based drinks, though. The menu also consists of energy drinks, juices, and teas.
However, shares of the company have been a huge disappointment. As of this writing, Dutch Bros is down 62% below its peak price from about two years ago.
If you're thinking about buying this coffee stock on the dip, it's smart not to ignore the bear case. Let's take a closer look at what investors should know.
Investors are focused on one thing
Since its initial public offering in September 2021, investors have been eyeing Dutch Bros because of its growth potential. There are currently 794 locations nationwide, but that's up significantly from 441 at the end of 2020. Just in the last 12 months, the business has opened 153 net new stores. Over the long term, management sees the opportunity to have 4,000 stores.
From an investor's perspective, it makes sense why buying the stock now could end up being a boon for a portfolio. Should Dutch Bros successfully execute these lofty goals, then shares could climb much higher than they are today.
If it had 4,000 locations, the company would benefit from scale advantages. It would become better at choosing favorable real estate to build new stores, and marketing and other corporate overhead costs can be spread out over a larger revenue base. Plus, the business could flex its negotiating power over suppliers. This can help boost profitability.
Additionally, at that size, Dutch Bros would undoubtedly have better brand recognition. And that can support customer loyalty, while also potentially helping lower spending on advertising.
It's important to understand the risks
The upside for Dutch Bros, should things work out as planned, can be exciting for bullish investors. But it's also worth paying attention to some important risk factors.
Right now, the company is posting weak profits. Net income last quarter (Q3 2023, ended Sept. 30) totaled $13.4 million, or 5% of revenue. To be fair, this is an improvement from the year-ago period, but it isn't impressive by any means. And in this economic environment, investors should be demanding sound financial behavior from the businesses they own.
For what it's worth, Dutch Bros spent $9.3 million on interest expenses in Q3, equating to 38% of operating income. That's a troubling sign.
Of course, the argument can be made that this business is fully focused on investing in growth initiatives, so profits are an afterthought. Regardless of what the long-term outlook is, I'm skeptical of companies that have poor track records as it relates to the bottom line.
Another major red flag is Dutch Bros' same-store sales growth. This metric increased by just 4% (on a systemwide basis) in the most recent quarter. That was barely higher than the 3.1% rise of the Consumer Price Index in November.
Plowing capital toward building new stores might attract investors, but it's something that any business with access to capital can do. The leadership team should also care about ways to boost revenue from each location. This should be watched closely.
At its current small scale, I don't think Dutch Bros possesses an economic moat. Look at the most successful restaurant chains you can think of, like McDonald's, Chipotle Mexican Grill, or Starbucks. All have tremendous brand recognition, which is only possible due to their massive sizes. Dutch Bros has a long way to go to be mentioned in the same sentence as these other chains, and a positive outcome isn't guaranteed.
The bear arguments for Dutch Bros are too hard to ignore, even though the business is opening new stores at a rapid pace. This adds a lot of risk to the equation, which is why I'm not a buyer of the stock right now.
Should you invest $1,000 in Dutch Bros right now?
Before you buy stock in Dutch Bros, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Dutch Bros 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 Chipotle Mexican Grill and Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It would become better at choosing favorable real estate to build new stores, and marketing and other corporate overhead costs can be spread out over a larger revenue base. It's important to understand the risks The upside for Dutch Bros, should things work out as planned, can be exciting for bullish investors. Dutch Bros has a long way to go to be mentioned in the same sentence as these other chains, and a positive outcome isn't guaranteed.
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Before you buy stock in Dutch Bros, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Dutch Bros 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. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks.
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Investors are focused on one thing Since its initial public offering in September 2021, investors have been eyeing Dutch Bros because of its growth potential. The bear arguments for Dutch Bros are too hard to ignore, even though the business is opening new stores at a rapid pace. Before you buy stock in Dutch Bros, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Dutch Bros wasn't one of them.
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Just in the last 12 months, the business has opened 153 net new stores. Should you invest $1,000 in Dutch Bros right now? Before you buy stock in Dutch Bros, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Dutch Bros wasn't one of them.
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977a2507-4f02-4671-a426-e5d3a20c6a19
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712389.0
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2023-12-12 00:00:00 UTC
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Darden Restaurants (DRI) Beats Q2 Earnings Estimates
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DCOMP
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https://www.nasdaq.com/articles/darden-restaurants-dri-beats-q2-earnings-estimates
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nan
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nan
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Darden Restaurants (DRI) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.71 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 7.60%. A quarter ago, it was expected that this owner of Olive Garden and other chain restaurants would post earnings of $1.73 per share when it actually produced earnings of $1.78, delivering a surprise of 2.89%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Darden Restaurants, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $2.73 billion for the quarter ended November 2023, missing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $2.49 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Darden Restaurants shares have added about 17.9% since the beginning of the year versus the S&P 500's gain of 22.9%.
What's Next for Darden Restaurants?
While Darden Restaurants has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Darden Restaurants: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.59 on $3.07 billion in revenues for the coming quarter and $8.77 on $11.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Kura Sushi (KRUS), is yet to report results for the quarter ended November 2023.
This company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +38.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Kura Sushi's revenues are expected to be $52.2 million, up 32.8% from the year-ago quarter.
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
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Kura Sushi USA, Inc. (KRUS) : 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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Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. 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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Darden Restaurants, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $2.73 billion for the quarter ended November 2023, missing the Zacks Consensus Estimate by 0.41%. The current consensus EPS estimate is $2.59 on $3.07 billion in revenues for the coming quarter and $8.77 on $11.58 billion in revenues for the current fiscal year. Click to get this free report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Kura Sushi USA, Inc. (KRUS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Darden Restaurants (DRI) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.71 per share. Darden Restaurants, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $2.73 billion for the quarter ended November 2023, missing the Zacks Consensus Estimate by 0.41%. Click to get this free report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Kura Sushi USA, Inc. (KRUS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Darden Restaurants (DRI) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.71 per share. The company has topped consensus revenue estimates three times over the last four quarters. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 21% of the 250 plus Zacks industries.
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fb41a801-0db0-4b37-873a-721693c22fea
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712390.0
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2023-12-12 00:00:00 UTC
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Buy These 4 Low-Beta Stocks to Counter Market Volatility
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DCOMP
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https://www.nasdaq.com/articles/buy-these-4-low-beta-stocks-to-counter-market-volatility-4
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nan
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nan
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Despite cooling inflation and strong hiring, an air of uncertainty persists. Most analysts are of the opinion that the United States is heading for a soft landing. The uncertainty may make the market volatile, prompting an immediate need to construct a portfolio comprising low-beta stocks. Such securities are expected to yield strong returns and provide a safeguard against choppy market conditions.
In this regard, stocks like Virco Mfg. Corporation VIRC, Galapagos NV GLPG, Axonics, Inc. AXNX and Stride Inc. LRN are worth betting on.
Understanding Beta
Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Screening Criteria:
We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1: Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are four of the 13 stocks that qualified for the screening:
Virco Mfg specializes in the production and design of furniture for the domestic market, possessing operational expertise to manufacture and deliver furniture totaling millions of pounds.
Galapagos is a renowned biotechnology company with operations spanning Europe and the United States. As a developer of groundbreaking medicines aimed at extending lifespan and overall quality of life, the company appears to have promising prospects.
Axonics is a prominent participant in the creation of innovative products for addressing bladder and bowel dysfunction. Increased utilization and a greater share of wallet from existing customers, along with the onboarding of accounts, are primarily supporting the company’s growth.
Stride maintains a stable business model by revolutionizing the educational experiences of individuals through the utilization of innovative, high-quality and technology-enabled educational solutions.
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.
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
Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
Stride, Inc. (LRN) : Free Stock Analysis Report
Galapagos NV (GLPG) : Free Stock Analysis Report
Axonics Inc. (AXNX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a developer of groundbreaking medicines aimed at extending lifespan and overall quality of life, the company appears to have promising prospects. Increased utilization and a greater share of wallet from existing customers, along with the onboarding of accounts, are primarily supporting the company’s growth. 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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Corporation VIRC, Galapagos NV GLPG, Axonics, Inc. AXNX and Stride Inc. LRN are worth betting on. 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. Click to get this free report Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report Stride, Inc. (LRN) : Free Stock Analysis Report Galapagos NV (GLPG) : Free Stock Analysis Report Axonics Inc. (AXNX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If a stock has a beta of 1, then the price of the stock will move with the market. Zacks Rank Equal to 1: Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. Click to get this free report Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report Stride, Inc. (LRN) : Free Stock Analysis Report Galapagos NV (GLPG) : Free Stock Analysis Report Axonics Inc. (AXNX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1. 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.
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e416e9ce-3834-4715-ad08-3418ebd4cbef
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712391.0
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2023-12-12 00:00:00 UTC
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Strength Seen in U.S. Bancorp (USB): Can Its 6.7% Jump Turn into More Strength?
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DCOMP
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https://www.nasdaq.com/articles/strength-seen-in-u.s.-bancorp-usb%3A-can-its-6.7-jump-turn-into-more-strength
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nan
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U.S. Bancorp USB shares soared 6.7% in the last trading session to close at $45.33. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.3% gain over the past four weeks.
The Federal Reserve has signaled an end to the current rate hike cycle by keeping interest rates unchanged at the 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. The central bank has also indicated a 75 basis points cut in rates by 2024-end. The above-mentioned developments have attributed to bullish investor sentiments. Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This probably drove the USB stock higher in last day’s trading session.
This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -17.5%. Revenues are expected to be $6.83 billion, up 7.8% 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 U.S. Bancorp, 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 USB 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 >>>>
U.S. Bancorp is a member of the Zacks Banks - Major Regional industry. One other stock in the same industry, JPMorgan Chase & Co. JPM, finished the last trading session 1.8% higher at $163.99. JPM has returned 7.6% over the past month.
For JPMorgan Chase & Co., the consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $3.72. This represents a change of +4.2% from what the company reported a year ago. JPMorgan Chase & Co. currently has a Zacks Rank of #2 (Buy).
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
U.S. Bancorp (USB) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -17.5%. 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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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> U.S. Bancorp is a member of the Zacks Banks - Major Regional industry. For JPMorgan Chase & Co., the consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $3.72. Click to get this free report U.S. Bancorp (USB) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> U.S. Bancorp is a member of the Zacks Banks - Major Regional industry. Click to get this free report U.S. Bancorp (USB) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -17.5%. For JPMorgan Chase & Co., the consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $3.72. 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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24ec449f-4d33-4c44-b927-df041881bd17
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712392.0
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2023-12-12 00:00:00 UTC
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Twist Bioscience (TWST) Soars 12.5%: Is Further Upside Left in the Stock?
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DCOMP
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https://www.nasdaq.com/articles/twist-bioscience-twst-soars-12.5%3A-is-further-upside-left-in-the-stock
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nan
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nan
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Twist Bioscience (TWST) shares ended the last trading session 12.5% higher at $35.12. 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 56.8% gain over the past four weeks.
Last month, the company announced robust financial results for the fiscal fourth quarter and full-year fiscal 2023. This might have driven the share price rally.
This maker of synthetic DNA for the biotechnology industry is expected to post quarterly loss of $0.80 per share in its upcoming report, which represents a year-over-year change of -8.1%. Revenues are expected to be $67.33 million, up 24.1% 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 Twist Bioscience, the consensus EPS estimate for the quarter has been revised 12.7% 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 TWST 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 >>>>
Twist Bioscience is part of the Zacks Medical - Biomedical and Genetics industry. Vertex Pharmaceuticals (VRTX), another stock in the same industry, closed the last trading session 0.4% higher at $406.60. VRTX has returned 16% in the past month.
Vertex's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $4.07. Compared to the company's year-ago EPS, this represents a change of +8.2%. Vertex currently boasts 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 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
Twist Bioscience Corporation (TWST) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : 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 maker of synthetic DNA for the biotechnology industry is expected to post quarterly loss of $0.80 per share in its upcoming report, which represents a year-over-year change of -8.1%. For Twist Bioscience, the consensus EPS estimate for the quarter has been revised 12.7% higher over the last 30 days to the current level. 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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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Twist Bioscience is part of the Zacks Medical - Biomedical and Genetics industry. Vertex's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $4.07. Click to get this free report Twist Bioscience Corporation (TWST) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : 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 >>>> Twist Bioscience is part of the Zacks Medical - Biomedical and Genetics industry. Click to get this free report Twist Bioscience Corporation (TWST) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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And a positive trend in earnings estimate revision usually translates into price appreciation. Vertex's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $4.07. Compared to the company's year-ago EPS, this represents a change of +8.2%.
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a584b908-80ba-4c97-b2eb-df33013b785b
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712393.0
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2023-12-12 00:00:00 UTC
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Synovus (SNV) Surges 7.3%: Is This an Indication of Further Gains?
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DCOMP
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https://www.nasdaq.com/articles/synovus-snv-surges-7.3%3A-is-this-an-indication-of-further-gains
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nan
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nan
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Synovus Financial SNV shares soared 7.3% in the last trading session to close at $40.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 23.6% gain over the past four weeks.
The Federal Reserve has signaled an end to the current rate hike cycle by keeping interest rates unchanged at the 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. The central bank has also indicated a 75 basis points cut in rates by 2024-end. The above-mentioned developments have attributed to bullish investor sentiments. Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This probably drove the SNV stock higher in last day’s trading session.
This holding company for Synovus Bank is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $476.85 million, down 21% 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 Synovus, the consensus EPS estimate for the quarter has been revised 1.4% 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 SNV 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 >>>>
Synovus is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, Origin Bancorp OBK, finished the last trading session 1.4% higher at $35.82. OBK has returned 6.4% over the past month.
For Origin Bancorp, the consensus EPS estimate for the upcoming report has changed +1.6% over the past month to $0.64. This represents a change of -32.6% from what the company reported a year ago. Origin Bancorp currently has a Zacks Rank of #2 (Buy).
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
Synovus Financial Corp. (SNV) : Free Stock Analysis Report
Origin Bancorp, Inc. (OBK) : 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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Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This holding company for Synovus Bank is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -33.3%. 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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This holding company for Synovus Bank is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -33.3%. For Origin Bancorp, the consensus EPS estimate for the upcoming report has changed +1.6% over the past month to $0.64. Click to get this free report Synovus Financial Corp. (SNV) : Free Stock Analysis Report Origin Bancorp, Inc. (OBK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Synovus is a member of the Zacks Banks - Southeast industry. Click to get this free report Synovus Financial Corp. (SNV) : Free Stock Analysis Report Origin Bancorp, Inc. (OBK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Synovus Financial SNV shares soared 7.3% in the last trading session to close at $40.38. This holding company for Synovus Bank is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -33.3%. For Origin Bancorp, the consensus EPS estimate for the upcoming report has changed +1.6% over the past month to $0.64.
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a65337f9-4369-404a-907b-10bd1ea73d70
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712394.0
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2023-12-12 00:00:00 UTC
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3 EV Stocks That Are Definitely Better Buys Than Tesla
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DCOMP
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https://www.nasdaq.com/articles/3-ev-stocks-that-are-definitely-better-buys-than-tesla
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There is no denying that the Electric Vehicle industry is cooling. EV makers have reduced their capital allocation toward EV production and set a lower target for the first half of 2024. This could be due to the high interest rate environment and lower consumer spending. However, it is temporary, and we will see the demand pick up. If you are enjoying the transition toward EVs, remember there is much more to the industry than Tesla (NASDAQ:TSLA). While it is a leader and one of the biggest players in the industry, the competition is growing, and several EV makers have a stronghold on the market. With that in mind, let’s look at the three EV stocks to buy that are better than Tesla.
Li Auto (LI)
Source: Carrie Fereday / Shutterstock.com
At the top of my list of electric vehicle stocks is Li Auto (NASDAQ:LI), one of the best EV makers right now. Li Auto is leading the EV race, whether you consider the delivery numbers, financials or product lineup. Trading at $34 today, the stock is up 64% year to date but still trading lower than the 52-week high of $47. It has launched Li Mega, a fully electric EV that will be available in February, and the 10,000 pre-orders already show the enthusiasm surrounding the car.
The company has impressed investors with the delivery numbers—over 40,000 cars in November. It is very close to achieving the final quarter delivery target, and we could see it report even better delivery numbers in 2024. While EV sales are slowing for several companies, Li Auto is picking up pace. At the end of November, its cumulative year-to-date deliveries stood at 325,677, higher than the target of 300,000 for the year.
Its Li-One SUV is one of the best-selling models in China, and aims to launch four new models in 2024. Li Auto’s financials prove that the company is thriving despite rising competition. In the third quarter, it reported a revenue of $4.75 billion, which is a 271% increase year over year, and its net income stood at $385.5 million, up from the net loss it reported in the prior period.
The EV maker has achieved success through its upscale SUVs which are well-priced compared to the premium cars offered by Tesla. It is the product lineup, execution, and pricing that has helped Li Auto grow over the years.
BYD Company (BYDDF)
Source: J. Lekavicius / Shutterstock.com
Next on the list of EV stocks is an obvious pick, BYD (OTCMKTS:BYDDF), a fierce Tesla competitor. The company is very close to beating Tesla on delivery numbers and is also the world’s second-largest battery maker. A huge advantage that BYD has over Tesla is its global presence. It is already exporting its cars to several countries globally and is steadily expanding its reach. BYDDF stock is exchanging hands for $26, much lower than the 52-week high of $36.
Another thing to remember is that Tesla only manufactures battery-powered EVs, whereas BYD makes BEVs and plug-in hybrid cars, which helps it achieve a larger market share. The company is expected to beat Tesla in delivery numbers in the final quarter of the year.
The company sets itself apart with the price point. It offers top-quality cars at a lower price than that of Tesla, where it benefits the most. As the EV market improves and we see higher demand, we will see BYD Co. thrive. It is at the top of the EV stocks that are better than TSLA.
In the first nine months of the year, we saw the company’s profits increase by 142% year over year to hit over $3 billion, and this is when Tesla’s profits dropped due to cost-cutting measures. It currently has a better profit margin than Tesla. The stock is highly undervalued with a huge potential to double, and if you think Tesla is expensive, this is your chance to own a strong EV stock before the year ends.
XPeng (XPEV)
Source: Koshiro K / Shutterstock
XPeng (NYSE:XPEV) disappointed investors in the third quarter results, but it expects the next year to be much better. It anticipates deliveries between 59,500 and 63,500 in the year’s final quarter, and it has already delivered 40,043 cars in October and November. It only needs to deliver 19,457 cars to achieve the lower end of its target.
Additionally, the company has revealed a 7-seater multi-purpose vehicle, which has garnered a lot of interest and attention from buyers. Its G6 EV has become the most popular SUV in China, and the launch of another car could benefit the company’s revenue.
While XPeng might find it difficult to compete with some of the industry leaders, it is still going strong. XPEV stock is trading at $15 today and is up 51% year to date. The company is still in growth mode, with much more to come.
XPEV stock was as high as $64 in Nov 2020 and has lost most of its value. Buying the stock at $15 is a good deal, not one that comes along easily. While the stock may not soar exponentially high anytime soon, there is a strong chance of it bouncing back in 2024. It is one of the top EV stocks to buy now.
Many EV makers are eyeing China’s top spot, but it is too soon to declare a winner. XPeng is still in the race and is riding strong, expecting a better 2024.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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The post 3 EV Stocks That Are Definitely Better Buys Than Tesla 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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Another thing to remember is that Tesla only manufactures battery-powered EVs, whereas BYD makes BEVs and plug-in hybrid cars, which helps it achieve a larger market share. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 EV Stocks That Are Definitely Better Buys Than Tesla appeared first on InvestorPlace.
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Li Auto (LI) Source: Carrie Fereday / Shutterstock.com At the top of my list of electric vehicle stocks is Li Auto (NASDAQ:LI), one of the best EV makers right now. In the third quarter, it reported a revenue of $4.75 billion, which is a 271% increase year over year, and its net income stood at $385.5 million, up from the net loss it reported in the prior period. The company is expected to beat Tesla in delivery numbers in the final quarter of the year.
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Li Auto (LI) Source: Carrie Fereday / Shutterstock.com At the top of my list of electric vehicle stocks is Li Auto (NASDAQ:LI), one of the best EV makers right now. BYD Company (BYDDF) Source: J. Lekavicius / Shutterstock.com Next on the list of EV stocks is an obvious pick, BYD (OTCMKTS:BYDDF), a fierce Tesla competitor. The stock is highly undervalued with a huge potential to double, and if you think Tesla is expensive, this is your chance to own a strong EV stock before the year ends.
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Li Auto (LI) Source: Carrie Fereday / Shutterstock.com At the top of my list of electric vehicle stocks is Li Auto (NASDAQ:LI), one of the best EV makers right now. The stock is highly undervalued with a huge potential to double, and if you think Tesla is expensive, this is your chance to own a strong EV stock before the year ends. Its G6 EV has become the most popular SUV in China, and the launch of another car could benefit the company’s revenue.
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2023-12-12 00:00:00 UTC
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3 Industry Stalwarts You Can Buy and Forget About
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https://www.nasdaq.com/articles/3-industry-stalwarts-you-can-buy-and-forget-about
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Don't have a lot of time to follow stocks and want some safe options for your portfolio? Three stocks that are big names within their respective industries and that can make for excellent long-term investments are UnitedHealth Group (NYSE: UNH), Coca-Cola (NYSE: KO), and Oracle (NYSE: ORCL). These businesses have excellent track records, they pay their shareholders dividends, and their futures remain bright.
1. UnitedHealth Group
Healthcare and insurance are two relatively safe places of the economy for investors to focus on. There's an ongoing need for both of those services and one company that gives you the best of both worlds is health insurance giant UnitedHealth Group. It has also made for a fantastic growth stock, having doubled in a span of just five years.
At a market capitalization of around $500 billion, it's one of the most valuable healthcare companies in the world. The company doesn't have the greatest bottom line as it has averaged a profit margin of just 6% over the trailing 12 months. But UnitedHealth generates over $300 billion in revenue on an annual basis, which means that at a 6% margin, it can still generate more than $18 billion in profit each year. Over the past four quarters, its earnings have been higher than that, at $21.7 billion.
UnitedHealth is also always on the hunt to get bigger. Earlier this year, the company announced plans to acquire home health company Amedisys for $3.3 billion. That builds off its $5.4 billion acquisition of another home health business, LHC Group. With a plethora of profits and cash coming through its business, UnitedHealth is in excellent shape to continue growing and expanding via acquisitions in the long run.
Investors also have plenty of incentive to hold on to the stock as UnitedHealth pays a dividend that yields 1.4%. And while that may seem modest, it's deceptively low as the company has an excellent track record for dividend growth.
UnitedHealth is one of the safest healthcare stocks investors can own, and it's a no-brainer if you want an investment that you don't want to worry about.
2. Coca-Cola
Soft drink giant Coca-Cola doesn't need much of an introduction. Go into any grocery store or restaurant within the country and there's a good chance you'll find one of its products either being served or available for purchase. The simplicity of its business is what makes it appealing to long-term investors such as Warren Buffett; Coca-Cola is among the top holdings in Berkshire Hathaway's portfolio.
Coca-Cola earns great margins on its products. In the past 12 months, the company's profit margin has been just under one-quarter of the top line. The business has been resilient, even in the midst of rising costs. Its low-priced products make it easier for Coca-Cola to raise prices without making them appear too expensive.
The company has been able to adapt to changing consumer trends over the years, such as launching healthier products and drinks with no sugar. That ability to evolve is an important one for long-term investors to consider, which is why the business is a solid one to hang on to for years.
Coca-Cola also pays a dividend that currently yields 3.1%. And the stock is a Dividend King, making it highly probable that the dividend income you earn from the stock will increase over time.
3. Oracle
Another big name for investors to consider is Oracle. The brand has become synonymous with databases but it's also much more than that. These days, it's also focusing on the rising popularity of artificial intelligence (AI). Chief Technology Officer and Chairman Larry Ellison stated earlier this year that the company was spending billions of dollars on AI chips from Nvidia as it aims to grow its cloud computing business.
Oracle's strong profit margins in excess of 18% put it in a great position to pump more money into AI so that it can take advantage of what's proving to be a hot trend not just in tech, but in other industries as well, with companies looking for ways to make their operations more efficient. The company pays a dividend yield of 1.4% but it's not getting in the way of growth; Oracle's payout ratio is around 43% of profits. That leaves plenty of room for the company to invest back into its growth opportunities.
Shares of Oracle are up more than 40% this year, but with a forward price-to-earnings multiple of just over 20, the stock is trading in line with the S&P 500 average. Oracle is a top tech company to invest in and as it expands its AI capabilities, there can be a lot more growth on the horizon.
Should you invest $1,000 in UnitedHealth Group right now?
Before you buy stock in UnitedHealth Group, consider this:
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Nvidia, and Oracle. The Motley Fool recommends UnitedHealth Group and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The simplicity of its business is what makes it appealing to long-term investors such as Warren Buffett; Coca-Cola is among the top holdings in Berkshire Hathaway's portfolio. Chief Technology Officer and Chairman Larry Ellison stated earlier this year that the company was spending billions of dollars on AI chips from Nvidia as it aims to grow its cloud computing business. Oracle's strong profit margins in excess of 18% put it in a great position to pump more money into AI so that it can take advantage of what's proving to be a hot trend not just in tech, but in other industries as well, with companies looking for ways to make their operations more efficient.
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Three stocks that are big names within their respective industries and that can make for excellent long-term investments are UnitedHealth Group (NYSE: UNH), Coca-Cola (NYSE: KO), and Oracle (NYSE: ORCL). Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and UnitedHealth Group wasn't one of them. The Motley Fool recommends UnitedHealth Group and recommends the following options: long January 2024 $47.50 calls on Coca-Cola.
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Three stocks that are big names within their respective industries and that can make for excellent long-term investments are UnitedHealth Group (NYSE: UNH), Coca-Cola (NYSE: KO), and Oracle (NYSE: ORCL). Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and UnitedHealth Group wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 David Jagielski has no position in any of the stocks mentioned.
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Coca-Cola earns great margins on its products. Should you invest $1,000 in UnitedHealth Group right now? Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and UnitedHealth Group wasn't one of them.
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712396.0
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2023-12-12 00:00:00 UTC
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Valley National (VLY) Surges 6.3%: Is This an Indication of Further Gains?
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https://www.nasdaq.com/articles/valley-national-vly-surges-6.3%3A-is-this-an-indication-of-further-gains
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Valley National VLY shares soared 6.3% in the last trading session to close at $11.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.3% gain over the past four weeks.
The Federal Reserve has signaled an end to the current rate hike cycle by keeping interest rates unchanged at the 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. The central bank has also indicated a 75 basis points cut in rates by 2024-end. The above-mentioned developments have attributed to bullish investor sentiments. Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This probably drove the VLY stock higher in last day’s trading session.
This holding company for Valley National Bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -28.6%. Revenues are expected to be $465.88 million, down 10.2% 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 Valley National, 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 VLY 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 >>>>
Valley National belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, NBT Bancorp NBTB, closed the last trading session 2.2% higher at $41.46. Over the past month, NBTB has returned 9.5%.
NBT's consensus EPS estimate for the upcoming report has changed -0.5% over the past month to $0.74. Compared to the company's year-ago EPS, this represents a change of -14%. NBT currently boasts 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 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 >>
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Valley National Bancorp (VLY) : Free Stock Analysis Report
NBT Bancorp Inc. (NBTB) : 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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Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This holding company for Valley National Bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -28.6%. 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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This holding company for Valley National Bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -28.6%. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Valley National belongs to the Zacks Banks - Northeast industry. Click to get this free report Valley National Bancorp (VLY) : Free Stock Analysis Report NBT Bancorp Inc. (NBTB) : 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 >>>> Valley National belongs to the Zacks Banks - Northeast industry. Click to get this free report Valley National Bancorp (VLY) : Free Stock Analysis Report NBT Bancorp Inc. (NBTB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Valley National VLY shares soared 6.3% in the last trading session to close at $11.03. This holding company for Valley National Bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -28.6%. Compared to the company's year-ago EPS, this represents a change of -14%.
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712397.0
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2023-12-12 00:00:00 UTC
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West Bancorp (WTBA) Stock Jumps 5.7%: Will It Continue to Soar?
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DCOMP
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https://www.nasdaq.com/articles/west-bancorp-wtba-stock-jumps-5.7%3A-will-it-continue-to-soar
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West Bancorp WTBA shares soared 5.7% in the last trading session to close at $20.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.8% gain over the past four weeks.
The Federal Reserve has signaled an end to the current rate hike cycle by keeping interest rates unchanged at the 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. The central bank has also indicated a 75 basis points cut in rates by 2024-end. The above-mentioned developments have attributed to bullish investor sentiments. Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This probably drove the WTBA stock higher in last day’s trading session.
This holding company for West Bank is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -41.5%. Revenues are expected to be $18.82 million, down 17.9% 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 West Bancorp, 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 WTBA 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 >>>>
West Bancorp is a member of the Zacks Financial - Savings and Loan industry. One other stock in the same industry, Northfield Bancorp NFBK, finished the last trading session 2.6% higher at $12.27. NFBK has returned 21.4% over the past month.
Northfield's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. Compared to the company's year-ago EPS, this represents a change of -45.2%. Northfield currently boasts a Zacks Rank of #4 (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 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
West Bancorporation, Inc. (WTBA) : Free Stock Analysis Report
Northfield Bancorp, Inc. (NFBK) : 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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Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This holding company for West Bank is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -41.5%. 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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This holding company for West Bank is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -41.5%. Northfield's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. Click to get this free report West Bancorporation, Inc. (WTBA) : Free Stock Analysis Report Northfield Bancorp, Inc. (NFBK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> West Bancorp is a member of the Zacks Financial - Savings and Loan industry. Click to get this free report West Bancorporation, Inc. (WTBA) : Free Stock Analysis Report Northfield Bancorp, Inc. (NFBK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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West Bancorp WTBA shares soared 5.7% in the last trading session to close at $20.81. This holding company for West Bank is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -41.5%. Compared to the company's year-ago EPS, this represents a change of -45.2%.
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2023-12-12 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Tesla, Apple and Rivian
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-tesla-apple-and-rivian
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For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN.
Why Tesla's Cheap (2024 Outlook)
An Up and Down Year for Tesla
Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Over the years, Tesla has shifted from developing niche products for affluent buyers to more affordable EVs for the masses. The firm's three-pronged business model approach of direct sales, servicing, and charging sets it apart from other carmakers. Year-to-date, shares are higher by 128%. However, investor concerns are mounting, including:
· Valuation: The EV king's market capitalization is more than the combined value of all legacy automakers.
· Underperformance: Though Tesla has more than doubled this year, it has underperformed the market and "Magnificent 7" recently.
· Recall: This week, news broke that Tesla must recall more than 2 million vehicles.
Below, I will debunk the most common investor concerns and lay out my bull case for the stock:
Don't Judge a Book By its Cover: Tesla Valuation is Cheap
The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). P/B is calculated by dividing the market price per share by the book value per share.
A low P/B ratio may suggest that a stock is undervalued, while a high ratio may indicate overvaluation. Investors use this ratio to assess a company's relative worth in the market compared to its accounting value. Tesla currently has a book value of 14.03. Compare that to another mainstream stock like Apple, whose book value is 49.54, and Tesla suddenly looks cheap.
Furthermore, it is essential to remember that Wall Street is a discounting device. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers.
Rallying on Negative Recall News
Earlier this week, Tesla was forced to recall over two million vehicles over autopilot safety concerns. As I always like to remind investors, the reaction to negative news supersedes the news itself. In the case of TSLA, the stock shook off the bad news and is green for the week.
Technical "Shakeout" and Price Rotation Higher
Savvy investors understand that price movement is the ultimate arbiter of decisions, because after all, price is the only thing that pays. TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Such price action indicates a shakeout, where weak hands get stopped out of their positions, clearing the way for the next move higher. Now, TSLA is triggering a bullish swing trade signal by clearing last week's highs.
Cybertruck Hype Real
Many Tesla bears suggest that the hype around Tesla's Cybertruck is unfounded. However, Google Trends data suggests the opposite is true. As Tesla investor and enthusiast Sawyer Merritt points out, "Tesla has surpassed Ford to become the most searched auto brand in the US. Tesla's gone from not making the rankings at all in 2022 to second place in 2023, with 29 of 155 countries listing Tesla as their #1 car brand in Google Trends."
Competition Not a Threat
Thus far, all of the fully-EV focused automakers like Rivian have yet to achieve a quarterly profit. As Elon Musk points out, it's one thing to create a prototype and a whole other thing to manufacture at scale. Meanwhile, Ford, the only other profitable EV maker in the US, announced that it would cut F-150 Lightning production in half next year. (the Lightning is seen by the market as the biggest threat to the Cybertruck)
China Sales Growing Despite Weak Economy
Despite a floundering Chinese economy, recent registration numbers suggest that Tesla is on pace to break its quarterly record for deliveries in China (156.7k).
Exponential EV Growth is on the Horizon
A recent study suggests that by 2030, two-thirds of all global car sales will be EVs.
Bottom Line
Investors using traditional valuation metrics to value Tesla are likely to be wrong. Tesla's price-to-book ratio reveals an undervalued position compared to other mainstream stocks. Meanwhile, the Cybertruck's rising popularity and Tesla's sustained growth in China further underscore its market strength. As the automotive landscape continues to evolve towards electric vehicles, Tesla's innovative approach and global expansion prospects make it a must-own.
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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
Apple Inc. (AAPL) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers. 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.
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For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Why Tesla's Cheap (2024 Outlook) An Up and Down Year for Tesla Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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2023-12-12 00:00:00 UTC
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7 Promising Penny Stocks With the Potential to Defy Expectations
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https://www.nasdaq.com/articles/7-promising-penny-stocks-with-the-potential-to-defy-expectations
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
You know you want it. High-potential penny stocks that is. And I’m here to deliver. However, from an obligatory standpoint, I must warn you from the get-go: people tend to lose money with this extremely risky endeavor. What compounds the matter is the psychological dynamics involved that can lead you to worsen already bad decisions.
Before you try your hand at promising penny stock picks, you should read up on the sunk cost fallacy. It’s the emotionally driven whirlwind effect when people begin to throw good money after bad. They’re hoping that eventually, the underlying speculation will make good. Most times, the flawed enterprise continues to become even more toxic, thus losing market value.
At the same time, if you gamble responsibly, there’s always a possibility – notice I said possibility and not probability – that one of your ideas could be a grand slam. So, if you can control your emotions, below are intriguing high-potential penny stocks to consider.
Aqua Metals (AQMS)
Source: John Brueske / Shutterstock
What it is: An entity that could tie into the electric vehicle mania, Aqua Metals (NASDAQ:AQMS) recycles metals from spent lithium batteries through its advanced extraction technology. While it appears one of the high-potential penny stocks, AQMS lost nearly 22% of equity value since the January opener. Also, it carries a market capitalization of only a bit over $97 million.
Relevance: Well, the idea here is that Aqua Metals could ride the EV sector’s coattails. According to MarketsandMarkets, the lithium metal sector will reach a valuation of $2.5 billion this year. Further, experts project that the segment could hit a value of $6.4 billion by 2028, thus representing a compound annual growth rate (CAGR) of 20.4%.
Pros: If Aqua gets just a small piece of this burgeoning pie, it could send AQMS rocketing higher. That may be what H.C. Wainwright’s Amit Dayal may be thinking, who believes AQMS could hit $4. Promising penny stock picks? Indeed!
Cons: Unfortunately, every speculative idea has cons. Glaringly, revenue has been largely eroding since 2019, which is not a good look.
Gevo (GEVO)
Source: Billion Photos / Shutterstock.com
What it is: An intriguing prospect among high-potential penny stocks, Gevo (NASDAQ:GEVO) specializes in renewable fuels. By extracting renewable diesel from plant oils and fermentation, Gevo could bolster both national security (in terms of energy independence) and broader sustainability protocols. However, GEVO carries significant risks, losing almost 34% since the start of the year.
Relevance: Fundamentally, Gevo ranks among the promising penny stock picks due to the heightened attention toward energy alternatives. For example, MarketsandMarkets noted that the North American renewable diesel market will reach a valuation of $12.9 billion at year’s end. Further, by 2044, the sector could be worth $49.1 billion, implying a CAGR of 7.1%.
Pros: Enticingly, the market cap for Gevo only sits at less than $291 million. Therefore, getting a modest piece of the pie could lead to significant upside. Analysts see shares hitting $6.07, implying growth potential of nearly 402%.
Cons: While Gevo has a decent balance sheet for being one of the penny stocks, it’s also overvalued relative to trailing-year revenue, carrying a hefty multiple of 22.64x.
LiveOne (LVO)
What it is: A possibly evocative candidate for high-potential penny stocks, LiveOne (NASDAQ:LVO) is a live event streaming and ticketing platform. It focuses on music, esports and digital media. Given the remarkable changes in the entertainment industry, LiveOne could breakthrough with investors for the long haul. Fueling the temptation, LVO gained almost 61% of equity value since the beginning of the year.
Relevance: Frankly, LiveOne will require you to have your finger on the pulse of entertainment, which isn’t my specialty. That said, just the esports segment could be a compelling catalyst for LVO, making it one of the promising penny stock picks. According to Statista, the global esports sector will print revenue of $3.8 billion by year’s end. Further, experts project that the ecosystem could ring up sales of $5.7 billion by 2028.
Pros: If LiveOne fires on all cylinders, analysts believe that shares could hit a consensus price target of $5.50. That implies almost 434% upside potential.
Cons: Financially, the company suffers from many flaws, including the constant issuing of new debt.
Eyenovia (EYEN)
Source: Shutterstock
What it is: Founded in 2014, Eyenovia (NASDAQ:EYEN) develops and markets ophthalmic micro-dose delivery technologies for treating eye diseases. From both a scientific and market upside standpoint, EYEN ranks among the high-potential penny stocks. However, shares have been all over the map, leading to a deceptively modest year-to-date return of 3.5%.
Relevance: Fundamentally, Eyenovia will be looking to create a modest niche within the massive ophthalmology industry. According to Data Bridge Market Research, the underlying global sector could expand at a CAGR of 6.4% from 2023 to 2030. At the forecast culmination, the valuation might hit nearly $84.66 billion. Last year, the industry was wroth $51.5 billion. And with Eyenovia only carrying a market cap of $78.3 million, it’s a tempting prospect.
Pros: Fueling the speculative fire, analysts peg EYEN a unanimous strong buy. Further, the average price target lands at $10, projecting 462% upside.
Cons: Since its public market debut, EYEN lost more than 82% of equity value, demonstrating the high risks involved with penny stocks. Also, revenue generation has collapsed, making EYEN a narrative play.
Arqit Quantum (ARQQ)
Source: Shutterstock
What it is: Arguably one of the top-tier high-potential penny stocks in terms of sheer excitement, Arqit Quantum (NASDAQ:ARQQ) provides quantum encryption solutions for secure data communications. However, investors must be prepared to exercise an uncommon amount of patience and bravery (if not outright recklessness). Since the January opener, ARQQ fell a staggering 84%.
Relevance: Along with artificial intelligence and machine learning, quantum computing has been all the rage. However, enterprises will need to forward cybersecurity solutions should the quantum paradigm become the norm. For example, Fortune Business Insights believes that the quantum computing market could be worth nearly $6.53 billion by 2030. Still, someone needs to protect this valuable innovation. That’s where Arqit comes in to (hopefully) save the day.
Pros: Representing one of the most promising penny stock picks, H.C. Wainwright’s Scott Buck anticipates shares hitting $3. That implies growth of over 526%, which is also astonishing.
Cons: As with other penny stocks, Arqit suffers from multiple financial red flags. Also, even with the market loss this year, ARQQ trades at an overheated 96.34x trailing-year sales.
Compugen (CGEN)
Source: Shutterstock
What it is: One of the most innovative names among high-potential penny stocks, Compugen (NASDAQ:CGEN) is a clinical-stage predictive drug discovery and development firm. Specifically, it designs computational biology tools for facilitating new therapeutics. While it offers substantial scientific intrigue, CGEN is incredibly risky priced at only 78 cents per share. Also, its market cap sits at just over $68 million.
Relevance: As with the other promising penny stock picks, Compugen is about taking a modest bite out of a massive underlying industry. According to Mordor Intelligence, the drug discovery market will reach a valuation of $93.91 billion at the end of this year. Further, experts project that the segment will expand at a CAGR of 6.59% by 2028. At the forecast culmination, the sector should print a valuation of $129.21 billion.
Pros: Although it’s a terribly risky idea, several analysts over the past year have issued a buy rating on shares. Enticingly, the most recent price target stands at $7, implying 802% upside potential.
Cons: As brilliant an idea as CGEN may be on a potential narrative basis, the company lost almost 75% of market value over the trailing five years.
Quantum Computing (QUBT)
Source: Shutterstock
What it is: Making a strong case as one of the most exciting ideas among high-potential penny stocks, Quantum Computing (NASDAQ:QUBT) aims to deliver a rich suite of full-stack quantum solutions, per its website. It helps connect its clients to the advancements of the latest computing tech through its cloud-based service network. However, it’s a risky endeavor, with shares slipping 47% since the beginning of the year.
Relevance: As McKinsey & Company pointed out, the sky may be the limit when it comes to quantum computing. Frankly, the industry could change the digital innovation paradigm. For now, experts project that the sector could hit a valuation of $106 billion by 2040. Further, this total valuation is broken down into several compelling subsegments, such as hardware, communications and sensory-based solutions.
Pros: Getting a piece of this market could be huge for QUBT, which is probably why Ascendiant’s Edward Woo is so bullish on shares. The expert anticipates the price hitting $8.75, which implies over 984% upside potential.
Cons: Much of the reason why QUBT has such robust upside potential is because it’s utterly deflated. A literal penny stock, QUBT slipped 74% over the past five years.
Penny Stocks
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The post 7 Promising Penny Stocks With the Potential to Defy Expectations 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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By extracting renewable diesel from plant oils and fermentation, Gevo could bolster both national security (in terms of energy independence) and broader sustainability protocols. Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 7 Promising Penny Stocks With the Potential to Defy Expectations appeared first on InvestorPlace.
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Gevo (GEVO) Source: Billion Photos / Shutterstock.com What it is: An intriguing prospect among high-potential penny stocks, Gevo (NASDAQ:GEVO) specializes in renewable fuels. Arqit Quantum (ARQQ) Source: Shutterstock What it is: Arguably one of the top-tier high-potential penny stocks in terms of sheer excitement, Arqit Quantum (NASDAQ:ARQQ) provides quantum encryption solutions for secure data communications. Quantum Computing (QUBT) Source: Shutterstock What it is: Making a strong case as one of the most exciting ideas among high-potential penny stocks, Quantum Computing (NASDAQ:QUBT) aims to deliver a rich suite of full-stack quantum solutions, per its website.
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Arqit Quantum (ARQQ) Source: Shutterstock What it is: Arguably one of the top-tier high-potential penny stocks in terms of sheer excitement, Arqit Quantum (NASDAQ:ARQQ) provides quantum encryption solutions for secure data communications. Quantum Computing (QUBT) Source: Shutterstock What it is: Making a strong case as one of the most exciting ideas among high-potential penny stocks, Quantum Computing (NASDAQ:QUBT) aims to deliver a rich suite of full-stack quantum solutions, per its website. Penny Stocks On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day.
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High-potential penny stocks that is. Arqit Quantum (ARQQ) Source: Shutterstock What it is: Arguably one of the top-tier high-potential penny stocks in terms of sheer excitement, Arqit Quantum (NASDAQ:ARQQ) provides quantum encryption solutions for secure data communications. Penny Stocks On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day.
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