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713100.0
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2023-12-12 00:00:00 UTC
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Strength Seen in Group 1 Automotive (GPI): Can Its 3.9% Jump Turn into More Strength?
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DCOMP
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https://www.nasdaq.com/articles/strength-seen-in-group-1-automotive-gpi%3A-can-its-3.9-jump-turn-into-more-strength
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nan
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Group 1 Automotive (GPI) shares ended the last trading session 3.9% higher at $297.49. 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 1.5% loss over the past four weeks.
Investors are optimistic about Group 1’s acquisitions of dealerships and franchises. The company has acquired revenues of more than $1 billion this year. GPI’s diversified product mix and omnichannel efforts also 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.
This auto dealer is expected to post quarterly earnings of $10.46 per share in its upcoming report, which represents a year-over-year change of -3.7%. Revenues are expected to be $4.38 billion, up 7.5% 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 Group 1 Automotive, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GPI 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 >>>>
Group 1 Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive Group (ABG), another stock in the same industry, closed the last trading session 5.7% higher at $234.34. ABG has returned -0.4% in the past month.
Asbury Automotive's consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $7.64. Compared to the company's year-ago EPS, this represents a change of -16.2%. Asbury Automotive 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
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : 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 AcceleRide platform, its online retailing initiative, active at most of the firm’s U.S. dealerships, allows the company to enjoy higher productivity. This auto dealer is expected to post quarterly earnings of $10.46 per share in its upcoming report, which represents a year-over-year change of -3.7%. 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 >>>> Group 1 Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive's consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $7.64. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : 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 >>>> Group 1 Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : 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 >>>> Group 1 Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive's consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $7.64. 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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27d35bac-a7a9-4eee-bc77-57f7e51bc5d1
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713101.0
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2023-12-12 00:00:00 UTC
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My 5 Largest Portfolio Holdings for 2024
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DCOMP
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https://www.nasdaq.com/articles/my-5-largest-portfolio-holdings-for-2024
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nan
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nan
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It's been nothing short of a phenomenal year for optimistic investors, especially those who placed their faith (and dollars) into the "Magnificent Seven" stocks. As of the closing bell on Dec. 13, the S&P 500 and Nasdaq Composite were higher by 23% and 41%, respectively.
But it's not about where Wall Street has been; it's about where equities will head next.
Despite a handful of money-based metrics and predictive indicators suggesting Wall Street and the U.S. economy could face sizable challenges in the new year, I remain optimistic as a long-term investor. All 47 positions in my portfolio (as of the time of this writing) were made with the belief that the underlying stock (or option) would increase in value over time.
However, these nearly four-dozen positions aren't weighted equally. My top five holdings account for 54% of my currently invested assets, and they're the companies I'll be counting on to deliver for me in 2024, and likely well beyond.
Image source: Getty Images.
SSR Mining
Although the broad-market indexes have been humming along in 2023, it's been a rough year for precious-metal mining stocks. Soaring Treasury yields have made bonds a potentially more attractive safe-haven investment than gold, which has weighed on miners.
The issue more specific to my largest holding, SSR Mining (NASDAQ: SSRM), is that it announced plans to ramp up spending in the coming year in order to expand its annual gold-equivalent output beginning in 2026 and beyond.
In other words, higher costs and weaker production are expected in 2024 and potentially in 2025, with a significantly more favorable production profile and life-of-mine forecast in 2026 (and many years thereafter). Investors certainly weren't thrilled with the idea that annual production could decline by 10% until these projects are completed.
However, I'm not too concerned about SSR Mining's very near-term operating performance given its already-reduced share price. Management has historically been conservative with its guidance and production expansion. The company has also been off-loading noncore assets in an effort to boost its already impressive net-cash position.
Furthermore, SSR Mining is a cash-flow machine. Its board instituted a quarterly dividend in 2021 (my annual yield to cost is 20.2%) and has not been shy about authorizing share repurchases.
Most importantly, the stock is a screaming value. I view traditional gold mining stocks as fairly valued when they reach a multiple of 10 times operating cash flow. SSR Mining is on track to deliver north of $2 in cash flow per share this year, and $1.95 to $1.99 per share over the coming two years. Its shares are currently trading at a multiple to forward-year cash flow of a little over 5.
Teva Pharmaceutical Industries
I love a good turnaround story, which is why brand-name and generic-drug developer Teva Pharmaceutical Industries (NYSE: TEVA) clocks in as my second-largest holding for 2024.
Teva has had no shortage of issues over the past seven years. It grossly overpaid for generic-drug developer Actavis, which drove up its outstanding debt. It has also faced a myriad of legal issues, including litigation over its role in the opioid crisis, as well as alleged price-fixing with select generic therapies.
But what's been impressive is watching Teva successfully navigate these challenges and put them into the back seat. In July, Teva agreed to a $4.25 billion settlement to be spread over 13 years for outstanding opioid litigation.
There's also been meaningful progress with its balance sheet. Shortly after the Actavis deal, the company had about $35 billion in net debt. As of Sept. 30, Teva had reduced its net debt to $17.7 billion. The company has reduced its annual operating expenses by billions of dollars, as well as selling off noncore assets. It has more financial flexibility now than it has had in years.
Teva also intends to focus more of its efforts on developing brand-name drugs. Novel therapies have shorter exclusivity periods, but the operating margin and pricing power for brand-name drugs is significantly higher than for generics. The expectation is that this added investment in novel therapies will lift Teva's sales and profit growth in the years to come.
With a forward price-to-earnings (P/E) ratio of 4, Teva is the definition of "dirt cheap."
Image source: Getty Images.
Meta Platforms
The third-largest portfolio holding that I'll be counting on to make me richer in 2024 and beyond is social media stock Meta Platforms (NASDAQ: META). Meta stock has had a banner year, with shares up 178%, as of Dec. 13.
The biggest concern skeptics have for Meta is growing losses associated with its Reality Labs, which is Meta's virtual and augmented reality segment. It has lost nearly $11.5 billion through the first nine months of 2023, which is $2 billion more than it lost in the comparable operating period in 2022. It's not yet clear if investments in the metaverse and augmented/virtual reality are going to pay off.
What is clear is that Meta's social media assets are at the head of the class. Facebook is the most-visited social media app, while Instagram, WhatsApp, and Facebook Messenger are some of the most consistently downloaded apps worldwide. During the third quarter, Meta attracted just shy of 4 billion monthly active users (MAUs), which equates to more than half of the world's adult population. Advertisers are willing to pay a premium to reach this many eyeballs.
I'm also not overly concerned with Reality Labs' ongoing losses. The reason? Meta closed out September with more than $61 billion in cash, cash equivalents, and marketable securities, and it has generated $51.7 billion in net cash from operations through the first nine months of 2023. It can afford to take risks in order to position itself as a future leader in the metaverse.
To keep with the theme, Meta remains inexpensive. Despite more than doubling from their 2022 bear market low, shares can be purchased for just 11 times forward-year cash flow. That compares to an average multiple to year-end cash flow of 15.6 over the previous five years.
Lovesac
My fourth-biggest holding entering 2024 is small-cap furniture retailer Lovesac (NASDAQ: LOVE).
Lovesac's stock has retraced as much as 85% from its all-time high, set in 2021. Although valuation and investor sentiment during the 2022 bear market played a role in this downturn, the primary concern has been the fear of a recession. The furniture industry is highly cyclical, with recessions almost always leading to lower consumer spending.
But among small-cap stocks, there's probably not one I'm more confident can make me richer than Lovesac can. That's because it brings easily identifiable competitive advantages to the table.
Its furniture is its most front-and-center differentiator. Just shy of 90% of its net sales derive from "sactionals" -- i.e., modular couches that can be rearranged dozens of ways to fit most living spaces.
Sactionals have over 200 different cover choices, they come with an assortment of upgrade options, and the yarn used in their production is made from recycled plastic water bottles. There is no other product that comes close to the functionality, optionality, or eco-friendliness of sactionals.
Another reason Lovesac can succeed is its omnichannel sales platform. Though it does have physical stores in most states, it also relies on direct-to-consumer sales, pop-up showrooms, and partnerships with major chain stores and warehouse clubs to sell its furniture and increase brand awareness. Having less of a reliance on brick-and-mortar locations than traditional furniture retailers has led to lower overhead expenses and higher margins.
Stop me if you've heard this before, but Lovesac is cheap. A forward P/E of less than 13 for an industry game-changer growing by a double-digit percentage is an outright bargain.
Pinterest
The fifth-largest holding that I'm counting on to make me richer in 2024, and hopefully for many years thereafter, is social media platform Pinterest (NYSE: PINS).
Similar to Lovesac, a combination of valuation, the 2022 bear market, and the expectation of U.S. economic weakness eventually drove Pinterest's stock down by more than 80% from its record closing high. The company generates most of its revenue from advertising, and advertisers are often quick to pare back their spending at the first hint of trouble with the U.S. and/or global economy.
But this is a two-sided, and highly disproportionate, coin. Even though recessions are a normal and inevitable part of the economic cycle, they don't stick around for very long. All 12 recessions after World War II have lasted between two and 18 months. By comparison, most economic expansions are measured in years. This means ad-driven businesses like Pinterest often thrive over long periods.
What's been particularly noteworthy is its ability to monetize its MAUs. Despite a slowdown in average revenue per user (ARPU) in 2023, global ARPU jumped 10% in 2022 (i.e., during a bear market!) Pinterest is closing in on a half-billion MAUs, and advertisers have demonstrated a willingness to pay a premium to get their message in front of Pinterest's motivated shoppers.
Lastly, Pinterest's platform is largely insulated from changes made by app developers -- e.g., allowing users to decide whether or not they want companies tracking their actions and choices. Pinterest's entire operating model is based on its MAUs freely sharing the things, services, and places that interest them. This is data that can be served to advertisers on a silver platter, regardless of what happens with app developers and data-tracking software.
Pinterest's earnings are expected to grow by an annual average of 39% over the next five years, making its forward P/E of 28 an absolute steal.
Should you invest $1,000 in SSR Mining right now?
Before you buy stock in SSR Mining, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SSR Mining 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
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. Sean Williams has positions in Lovesac, Meta Platforms, Pinterest, SSR Mining, and Teva Pharmaceutical Industries. The Motley Fool has positions in and recommends Meta Platforms and Pinterest. The Motley Fool recommends Lovesac. 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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Despite a handful of money-based metrics and predictive indicators suggesting Wall Street and the U.S. economy could face sizable challenges in the new year, I remain optimistic as a long-term investor. The issue more specific to my largest holding, SSR Mining (NASDAQ: SSRM), is that it announced plans to ramp up spending in the coming year in order to expand its annual gold-equivalent output beginning in 2026 and beyond. Similar to Lovesac, a combination of valuation, the 2022 bear market, and the expectation of U.S. economic weakness eventually drove Pinterest's stock down by more than 80% from its record closing high.
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Teva Pharmaceutical Industries I love a good turnaround story, which is why brand-name and generic-drug developer Teva Pharmaceutical Industries (NYSE: TEVA) clocks in as my second-largest holding for 2024. Meta Platforms The third-largest portfolio holding that I'll be counting on to make me richer in 2024 and beyond is social media stock Meta Platforms (NASDAQ: META). Sean Williams has positions in Lovesac, Meta Platforms, Pinterest, SSR Mining, and Teva Pharmaceutical Industries.
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Meta Platforms The third-largest portfolio holding that I'll be counting on to make me richer in 2024 and beyond is social media stock Meta Platforms (NASDAQ: META). Before you buy stock in SSR Mining, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SSR Mining wasn't one of them. Sean Williams has positions in Lovesac, Meta Platforms, Pinterest, SSR Mining, and Teva Pharmaceutical Industries.
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SSR Mining is on track to deliver north of $2 in cash flow per share this year, and $1.95 to $1.99 per share over the coming two years. Before you buy stock in SSR Mining, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SSR Mining wasn't one of them. The Motley Fool has positions in and recommends Meta Platforms and Pinterest.
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5f452b9f-a947-48cd-ba78-5182d0e3f2b0
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713102.0
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2023-12-12 00:00:00 UTC
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Best Growth Stocks to Buy for December 15th
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DCOMP
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https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-december-15th-1
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nan
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 15th:
Arcos Dorados Holdings Inc. ARCO: This franchisee of McDonald’s restaurants carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.
Arcos Dorados Holdings Inc. Price and Consensus
Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote
Arcos Dorados has a PEG ratio of 1.21 compared with 2.49 for the industry. The company possesses a Growth Score of A.
Arcos Dorados Holdings Inc. PEG Ratio (TTM)
Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote
LegalZoom.com, Inc. LZ: This online platform for legal and compliance solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days.
LegalZoom.com, Inc. Price and Consensus
LegalZoom.com, Inc. price-consensus-chart | LegalZoom.com, Inc. Quote
LegalZoom has a PEG ratio of 0.51 compared with 0.77 for the industry. The company possesses a Growth Score of A.
LegalZoom.com, Inc. PEG Ratio (TTM)
LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote
Casey's General Stores, Inc. CASY: This chain of convenience stores carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.6% over the last 60 days.
Casey's General Stores, Inc. Price and Consensus
Casey's General Stores, Inc. price-consensus-chart | Casey's General Stores, Inc. Quote
Casey's has a PEG ratio of 2.24 compared with 2.25 for the industry. The company possesses a Growth Score of A.
Casey's General Stores, Inc. PEG Ratio (TTM)
Casey's General Stores, Inc. peg-ratio-ttm | Casey's General Stores, Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated 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
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 15th: Arcos Dorados Holdings Inc. ARCO: This franchisee of McDonald’s restaurants carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days. 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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The company possesses a Growth Score of A. Arcos Dorados Holdings Inc. PEG Ratio (TTM) Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote LegalZoom.com, Inc. LZ: This online platform for legal and compliance solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days. The company possesses a Growth Score of A. Casey's General Stores, Inc. PEG Ratio (TTM) Casey's General Stores, Inc. peg-ratio-ttm | Casey's General Stores, Inc. Quote See the full list of top ranked stocks here. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Growth Score of A. Arcos Dorados Holdings Inc. PEG Ratio (TTM) Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote LegalZoom.com, Inc. LZ: This online platform for legal and compliance solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days. The company possesses a Growth Score of A. Casey's General Stores, Inc. PEG Ratio (TTM) Casey's General Stores, Inc. peg-ratio-ttm | Casey's General Stores, Inc. Quote See the full list of top ranked stocks here. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 15th: Arcos Dorados Holdings Inc. ARCO: This franchisee of McDonald’s restaurants carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days. The company possesses a Growth Score of A. LegalZoom.com, Inc. PEG Ratio (TTM) LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote Casey's General Stores, Inc. CASY: This chain of convenience stores carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.6% over the last 60 days. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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dc44d0d5-d1ef-4bb2-8ef2-9bfd494a6aab
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713103.0
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2023-12-12 00:00:00 UTC
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ANALYSIS-A Disney-Reliance India entertainment merger may be beset with antitrust headaches
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DCOMP
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https://www.nasdaq.com/articles/analysis-a-disney-reliance-india-entertainment-merger-may-be-beset-with-antitrust
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nan
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nan
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By Aditya Kalra, Munsif Vengattil and Arpan Chaturvedi
NEW DELHI, Dec 15 (Reuters) - A merger of Walt Disney's DIS.N India unit and billionaire Mukesh Ambani's media business would create an entertainment powerhouse in India, but lawyers say any deal would draw intense antitrust scrutiny and assets would likely need to be shed.
Disney and India's Reliance RELI.NS, which each have a major streaming service as well as 120 TV channels between them, are looking at merging into an entity in which Ambani's group would likely have a majority stake, sources said this week.
In particular, a deal could benefit Disney whose Hotstar streaming app has been loss-making. CEO Bob Iger said last month that while Disney's TV channels were doing well in India, other parts of the business were struggling and it was seeking to "improve the bottom line."
The Zee-Sony plan cleared a review by the Competition Commission of India (CCI) last year and could close in the coming weeks. The two companies have said they will divest three of Zee's Hindi TV channels as part of their agreement for regulatory acceptance.
Although Netflix NFLX.O and Amazon AMZN.O also compete in India's $28 billion media and entertainment market, the emergence of two behemoths would probably create a duopoly wielding anti-competitive power over advertisers, users and content creators, antitrust lawyers said.
"This deal may get closer scrutiny because of the increased concentration of market power post the Zee-Sony merger. That makes their path to CCI approval more challenging," said Avimukt Dar, founding partner at India's IndusLaw.
Disney declined to comment. Reliance, its broadcast unit Viacom18 and the CCI did not respond to Reuters queries.
One key area of regulatory scrutiny for a Disney-Reliance merger would be their streaming businesses and their power over advertising during cricket - a sport that commands fanatical devotion in India.
Disney Hotstar, India's biggest streaming app with 38 million users, owns the rights for International Cricket Council's matches in India until 2027, while Reliance's growing JioCinema app has the rights for popular cricket league IPL.
The CCI would be worried that the "combined entity, due to its strong market presence in streaming can command their own rates and advertisers will be left without bargaining power," said Vaibhav Choukse, head of competition law at Indian law firm JSA.
In TV too, there is much that might displease regulators.
Viacom18's 38 channels include Comedy Central and Nickelodeon, while Disney, whose Star brand has been a household name for decades in India, has 80.
Elara Capital estimates Disney and Viacom18 together will have the biggest share of the TV ads market at 43% while Zee-Sony would have 25%, making it difficult for others to compete.
Estimates from the CCI document approving the Zee-Sony merger also underscore the potential pricing power of a Disney and Viacom18 combination.
In Hindi entertainment channels, for example, as of last year Disney and Viacom18 had a combined share of 30% to 40%, compared with Zee-Sony's 30-35%, the document shows.
In local language Marathi channels, Disney had market share of 50-55% and when combined with Viacom18 that would rise to between 65% and 75%. In Bengali language entertainment channels, the two would command as much as 50% market share.
"If the market shares of the parties exceed 40-50% in any market, CCI is likely to conduct a detailed investigation," said Choukse.
While divesting certain channels would be an option to assuage CCI's concerns, the merged entity could also offer commitments to not raise ad rates for a certain period, according to Gautam Shahi of Dua Associates.
Disney, Reliance plan London meeting for India media merger talks-sources
Disney, Reliance discuss India entertainment merger, sources say
FOCUS-Disney gambles on free cricket to turn the tables in India streaming war
(Reporting by Aditya Kalra, Munsif Vengattil and Arpan Chaturvedi; Editing by Edwina Gibbs)
((aditya.kalra@thomsonreuters.com; @adityakalra;))
The views and 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 Netflix NFLX.O and Amazon AMZN.O also compete in India's $28 billion media and entertainment market, the emergence of two behemoths would probably create a duopoly wielding anti-competitive power over advertisers, users and content creators, antitrust lawyers said. One key area of regulatory scrutiny for a Disney-Reliance merger would be their streaming businesses and their power over advertising during cricket - a sport that commands fanatical devotion in India. While divesting certain channels would be an option to assuage CCI's concerns, the merged entity could also offer commitments to not raise ad rates for a certain period, according to Gautam Shahi of Dua Associates.
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By Aditya Kalra, Munsif Vengattil and Arpan Chaturvedi NEW DELHI, Dec 15 (Reuters) - A merger of Walt Disney's DIS.N India unit and billionaire Mukesh Ambani's media business would create an entertainment powerhouse in India, but lawyers say any deal would draw intense antitrust scrutiny and assets would likely need to be shed. Disney Hotstar, India's biggest streaming app with 38 million users, owns the rights for International Cricket Council's matches in India until 2027, while Reliance's growing JioCinema app has the rights for popular cricket league IPL. Disney, Reliance plan London meeting for India media merger talks-sources Disney, Reliance discuss India entertainment merger, sources say FOCUS-Disney gambles on free cricket to turn the tables in India streaming war (Reporting by Aditya Kalra, Munsif Vengattil and Arpan Chaturvedi; Editing by Edwina Gibbs) ((aditya.kalra@thomsonreuters.com; @adityakalra;)) The views and 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 Aditya Kalra, Munsif Vengattil and Arpan Chaturvedi NEW DELHI, Dec 15 (Reuters) - A merger of Walt Disney's DIS.N India unit and billionaire Mukesh Ambani's media business would create an entertainment powerhouse in India, but lawyers say any deal would draw intense antitrust scrutiny and assets would likely need to be shed. Disney Hotstar, India's biggest streaming app with 38 million users, owns the rights for International Cricket Council's matches in India until 2027, while Reliance's growing JioCinema app has the rights for popular cricket league IPL. Disney, Reliance plan London meeting for India media merger talks-sources Disney, Reliance discuss India entertainment merger, sources say FOCUS-Disney gambles on free cricket to turn the tables in India streaming war (Reporting by Aditya Kalra, Munsif Vengattil and Arpan Chaturvedi; Editing by Edwina Gibbs) ((aditya.kalra@thomsonreuters.com; @adityakalra;)) The views and 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 Aditya Kalra, Munsif Vengattil and Arpan Chaturvedi NEW DELHI, Dec 15 (Reuters) - A merger of Walt Disney's DIS.N India unit and billionaire Mukesh Ambani's media business would create an entertainment powerhouse in India, but lawyers say any deal would draw intense antitrust scrutiny and assets would likely need to be shed. Estimates from the CCI document approving the Zee-Sony merger also underscore the potential pricing power of a Disney and Viacom18 combination. In Hindi entertainment channels, for example, as of last year Disney and Viacom18 had a combined share of 30% to 40%, compared with Zee-Sony's 30-35%, the document shows.
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eee53bc7-5544-4b19-ab3e-4ef42331f9f2
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713104.0
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2023-12-12 00:00:00 UTC
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Ford and GM Just Answered a Big Question. But Does That Make the Stocks a Buy?
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DCOMP
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https://www.nasdaq.com/articles/ford-and-gm-just-answered-a-big-question.-but-does-that-make-the-stocks-a-buy
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nan
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nan
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One of the biggest questions facing automakers in a few years was this: "Will new labor contracts cripple profits?" The negotiations between United Auto Workers (UAW) and major automakers can sometimes get bitter, and with the former aggressively going after the best contracts in recent memory, it was an ominous development for auto investors.
Fortunately, we may already have an answer to the previous question, and it appears to be good news for Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) investors.
Big contracts, big costs
From the start of negotiations, the UAW made it clear it was going for an ambitious contract that would aim to be the largest amount of gains in wages seen in years. That goal was fairly well accomplished, and the price tag for the new contract hit automakers like Ford and General Motors hard.
In fact, Ford anticipates the new UAW contract to cost roughly $8.8 billion -- two times the initial expectation -- over the four-and-a-half-year deal. Ford's crosstown rival, GM, predicts its deal with UAW and Canadian union Unifor will cost up to $9.3 billion.
Those are big figures when you consider Ford's updated full-year guidance calls for adjusted earnings before interest and taxes (EBIT) in the range of $10 billion to $10.5 billion. Investors are already seeing real impact, as Ford lowered its guidance due to the new contracts from a previous range of $11 billion to $12 billion.
Let's put those figures into perhaps more understandable numbers for investors. Ford's new UAW contract will increase costs per vehicle by roughly $900. GM's number is actually lower because it employs roughly 10,000 fewer UAW members than its cross-town rival; GM expects its per-vehicle costs to increase as much as $575 on average throughout the life of the contract.
Question answered?
One of the biggest questions now facing major automakers is if they can offset these drastic cost increases. While investors should take these initial comments with a grain of salt -- we don't really expect management to fold and say they're going to go out of business -- both Ford and GM appear confident they can almost completely offset these wage increases.
GM management said it's preparing a 2024 budget that should offset much of the increases already. In fact, GM is working to cut $3 billion in fixed costs by the end of 2024.
Further, and grain of salt still in hand, it appears labor cost is less significant than it was in the past. "Labor cost is not as significant from an overall cost perspective as it was in the past," Michael Ward, equity research analyst at Benchmark, told Automotive News. "GM and Ford should be able to offset most of the increase in labor costs with other improvements."
To be fair, if GM management is puffing out its chest to show confidence, it's at least putting its money where its mouth is. GM announced it would buy back $10 billion in shares while also increasing its dividend 33%. If management can confidently announce that right after contract negotiations, they're doing everything they can to appear at ease as they work their 2024 budget to mostly offset the new contracts.
Are the stocks a buy?
Investing in cyclical industries, especially the automotive industry, which is notoriously capital intensive, isn't for everyone. However, for value investors, or perhaps income investors, there's a compelling case for both Ford and General Motors right now. Ford and GM trade at a cheap price-to-earnings ratio of 7 and 4.7 times earnings, respectively, and have declined 16% and 12%, respectively, compared to the market's 17% gain over the past year.
On top of being cheap, Ford also offers income investors a juicy 5.4% dividend yield. While GM's yield is much lower, management's recent decision to boost the dividend 33% with a $10 billion share buyback plan shows willingness to return value to shareholders.
If management of both automakers prove they can execute and offset much of the new labor costs, this could be a great entry point into the two Detroit auto stocks before they bounce back.
Should you invest $1,000 in Ford Motor Company right now?
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Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While investors should take these initial comments with a grain of salt -- we don't really expect management to fold and say they're going to go out of business -- both Ford and GM appear confident they can almost completely offset these wage increases. While GM's yield is much lower, management's recent decision to boost the dividend 33% with a $10 billion share buyback plan shows willingness to return value to shareholders. If management of both automakers prove they can execute and offset much of the new labor costs, this could be a great entry point into the two Detroit auto stocks before they bounce back.
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Fortunately, we may already have an answer to the previous question, and it appears to be good news for Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) investors. In fact, Ford anticipates the new UAW contract to cost roughly $8.8 billion -- two times the initial expectation -- over the four-and-a-half-year deal. Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ford Motor Company wasn't one of them.
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Fortunately, we may already have an answer to the previous question, and it appears to be good news for Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) investors. Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ford Motor Company wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Daniel Miller has positions in Ford Motor Company and General Motors.
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"GM and Ford should be able to offset most of the increase in labor costs with other improvements." Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ford Motor Company wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Daniel Miller has positions in Ford Motor Company and General Motors.
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a8c492a1-44d0-4ef6-97e6-70c3c9c3fdbc
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713105.0
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2023-12-12 00:00:00 UTC
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Rising Only Half the S&P's Gain In 2023, Where Is BNY Mellon Stock Headed?
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DCOMP
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https://www.nasdaq.com/articles/rising-only-half-the-sps-gain-in-2023-where-is-bny-mellon-stock-headed
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nan
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nan
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BNY Mellon stock (NYSE: BK) currently trades at $50 per share, around 22% below (28% upside) its level of $64 on February 9, 2022 (pre-inflation shock high), and seems undervalued. BNY Mellon saw its stock trading at around $42 at the end of June 2022, just before the Fed started increasing rates, and is trading 20% above that level now. In comparison, the S&P 500 gained about 23% during this period. The stock price has underperformed the broader index as the investors are cautiously optimistic toward the financial sector stocks due to the fear of potential recession and difficult macroeconomic conditions. This was despite the recovery in the net interest income driven by improvement in the interest rate environment.
Amid the current financial backdrop, BK stock has shown strong gains of 25% from levels of $40 in early January 2021 to around $50 now, vs. a similar change for the S&P 500 over this roughly 3-year period. However, the increase in BK stock has been far from consistent. Returns for the stock were 37% in 2021, -22% in 2022, and 10% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 21% in 2023 (YTD) – indicating that BK underperformed the S&P in 2022 and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Financial sector including V, JPM, and MA, and even for the megacap stars GOOG, TSLA, and MSFT. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could BK face a similar situation as it did in 2022 and 2023 and underperform the S&P over the next 12 months – or will it see a strong jump?
Returning to the pre-inflation shock level means that BK stock will have to gain around 28% from the current levels. However, we do not expect that to materialize in the short term and estimate BNY Mellon’s valuation to be around $54 per share.
Our detailed analysis of BNY Mellon’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses
Since July 2023: Fed keeps interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards.
In contrast, here’s how BK stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
BK and S&P 500 Performance During 2007-08 Crisis
BNY Mellon stock declined from nearly $32 in September 2007 (pre-crisis peak) to below $22 in March 2009 (as the markets bottomed out), implying BK stock lost almost 31% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $28 in early 2010, rising 26% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
BK Fundamentals Over Recent Years
BNY Mellon revenues decreased from $16.46 billion in 2019 to $15.81 billion in 2020 due to a drop in net interest income and fee income. However, it improved to $15.93 billion in 2021 and $16.38 billion in 2022. The growth was primarily driven by improvement in net interest income and fee revenues.
On the flip side, earnings decreased from $4.53 in 2019 to $2.91 in 2022 primarily due to higher expenses figure.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe BNY Mellon (BK) stock has the potential for strong gains once fears of a potential recession are allayed.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
BK Return 3% 10% 5%
S&P 500 Return 2% 21% 107%
Trefis Reinforced Value Portfolio 2% 30% 569%
[1] Month-to-date and year-to-date as of 12/13/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amid the current financial backdrop, BK stock has shown strong gains of 25% from levels of $40 in early January 2021 to around $50 now, vs. a similar change for the S&P 500 over this roughly 3-year period. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Financial sector including V, JPM, and MA, and even for the megacap stars GOOG, TSLA, and MSFT. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could BK face a similar situation as it did in 2022 and 2023 and underperform the S&P over the next 12 months – or will it see a strong jump?
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October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since July 2023: Fed keeps interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) BK and S&P 500 Performance During 2007-08 Crisis BNY Mellon stock declined from nearly $32 in September 2007 (pre-crisis peak) to below $22 in March 2009 (as the markets bottomed out), implying BK stock lost almost 31% of its pre-crisis value. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe BNY Mellon (BK) stock has the potential for strong gains once fears of a potential recession are allayed.
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Returning to the pre-inflation shock level means that BK stock will have to gain around 28% from the current levels. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) BK and S&P 500 Performance During 2007-08 Crisis BNY Mellon stock declined from nearly $32 in September 2007 (pre-crisis peak) to below $22 in March 2009 (as the markets bottomed out), implying BK stock lost almost 31% of its pre-crisis value. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe BNY Mellon (BK) stock has the potential for strong gains once fears of a potential recession are allayed.
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BNY Mellon stock (NYSE: BK) currently trades at $50 per share, around 22% below (28% upside) its level of $64 on February 9, 2022 (pre-inflation shock high), and seems undervalued. Returning to the pre-inflation shock level means that BK stock will have to gain around 28% from the current levels. In contrast, here’s how BK stock and the broader market performed during the 2007/2008 crisis.
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5d824cb4-f5d8-4c55-ad5b-9c3c300ca92c
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713106.0
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2023-12-12 00:00:00 UTC
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2 Highly Ranked Energy Stocks with Dividend Yields over 5%
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DCOMP
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https://www.nasdaq.com/articles/2-highly-ranked-energy-stocks-with-dividend-yields-over-5
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nan
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nan
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As markets gain steam attributed to a more dovish Fed, CrossAmerica Partners (CAPL) and Ecopetrol (EC) are two appealing energy stocks to consider.
CrossAmerica and Ecopetrol’s stock both sport a Zacks Rank #1 (Strong Buy) as they are benefiting from strong business industries while offering dividend yields well over 5% at the moment.
Strengthening Earnings Outlook
Making their hefty dividends more enticing is that earnings estimate revisions are noticeably higher for CrossAmerica and Ecopetrol over the last 60 days.
To that point, CrossAmerica’s Zacks Oil and Gas-Refining and Marketing-Master Limited Partnerships Industry is currently in the top 5% of over 250 Zacks industries.
Distributing motor fuels throughout the U.S., CrossAmerica’s fiscal 2023 earnings estimates have climbed 25% in the last 2 months from $0.68 a share to $0.85 per share. Even better, FY24 EPS estimates have soared 19% from $0.80 a share to $0.95 per share.
Image Source: Zacks Investment Research
Pivoting to Ecopetrol, the Columbia-based petroleum company also has its foot in hydrocarbon renewable energy production and is starting to look like a viable investment option among emerging markets. Notably, Ecopetrol’s Oil and Gas-Integrated-Emerging Markets Industry is in the top 1% of all Zacks industries.
Over the last 60 days, Ecopetrol’s FY23 earnings estimates are up 7% from $2.17 a share to $2.32 per share. More compelling is that FY24 EPS estimates have jumped 9% from $2.20 a share to $2.41 per share.
Image Source: Zacks Investment Research
Lofty Dividends
With rising earnings estimates usually indicative of more upside, CrossAmerica has a 9.26% annual dividend yield that towers over the S&P 500’s 1.39% average and its industry average of 4.79%.
Image Source: Zacks Investment Research
Turning to Ecopetrol it currently has a whopping 18.84% dividend yield compared to its own industry average of 7.64%. While Ecopetrol’s stock price of $13 a share may bolster its yield, it's also noteworthy that EC shares are up +24% this year and the company has raised its dividend five times in the last five years.
Image Source: Zacks Investment Research
Bottom Line
With or without their massive payouts, CrossAmerica Partners and Ecopetrol are two attractive energy stocks that look poised to move higher as markets cheer on a more dovish Fed.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Ecopetrol S.A. (EC) : Free Stock Analysis Report
CrossAmerica Partners LP (CAPL) : 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 markets gain steam attributed to a more dovish Fed, CrossAmerica Partners (CAPL) and Ecopetrol (EC) are two appealing energy stocks to consider. Image Source: Zacks Investment Research Bottom Line With or without their massive payouts, CrossAmerica Partners and Ecopetrol are two attractive energy stocks that look poised to move higher as markets cheer on a more dovish Fed. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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As markets gain steam attributed to a more dovish Fed, CrossAmerica Partners (CAPL) and Ecopetrol (EC) are two appealing energy stocks to consider. Image Source: Zacks Investment Research Lofty Dividends With rising earnings estimates usually indicative of more upside, CrossAmerica has a 9.26% annual dividend yield that towers over the S&P 500’s 1.39% average and its industry average of 4.79%. Click to get this free report Ecopetrol S.A. (EC) : Free Stock Analysis Report CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Lofty Dividends With rising earnings estimates usually indicative of more upside, CrossAmerica has a 9.26% annual dividend yield that towers over the S&P 500’s 1.39% average and its industry average of 4.79%. Image Source: Zacks Investment Research Bottom Line With or without their massive payouts, CrossAmerica Partners and Ecopetrol are two attractive energy stocks that look poised to move higher as markets cheer on a more dovish Fed. Click to get this free report Ecopetrol S.A. (EC) : Free Stock Analysis Report CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Over the last 60 days, Ecopetrol’s FY23 earnings estimates are up 7% from $2.17 a share to $2.32 per share. Image Source: Zacks Investment Research Lofty Dividends With rising earnings estimates usually indicative of more upside, CrossAmerica has a 9.26% annual dividend yield that towers over the S&P 500’s 1.39% average and its industry average of 4.79%. Image Source: Zacks Investment Research Turning to Ecopetrol it currently has a whopping 18.84% dividend yield compared to its own industry average of 7.64%.
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ff09e8a4-a6c9-4c22-8bfe-e80989ddfda6
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713107.0
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2023-12-12 00:00:00 UTC
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MSFT vs. AAPL: Which Stock Has More AI Upside Potential?
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DCOMP
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https://www.nasdaq.com/articles/msft-vs.-aapl%3A-which-stock-has-more-ai-upside-potential
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nan
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nan
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Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). Indeed, Microsoft and Apple are two tech titans that prove there are some firms out there that can keep on growing into old age. To do so, continuous reinvention by means of disruptive innovation and smart business practices have been key areas.
As we move into 2024, the main question is which tech behemoth has more AI upside. Indeed, Microsoft was/is the AI stock to own for 2023, with its exposure to ChatGPT-owner OpenAI and its new AI offerings that are released frequently, enough to keep rivals on their toes.
Though Apple has been busy with AI, incorporating it into new features (the smarter AutoCorrect in the latest iOS update), it's unknown when the company will have its own generative AI or large language model (LLM) to stack up with the growing list of competing offerings, including ChatGPT, Claude, and more.
In any case, I remain bullish on both Magnificent Seven companies heading into 2024, a year that's sure to be full of AI surprises.
The Pace of Innovation at Microsoft Has Got to Be Intimidating for AI Rivals
In recent months, Microsoft has been busy rolling out its Copilot AI across its software. Thus far, Wall Street has been absolutely loving it, rewarding shares of MSFT with enough gains to hit a new all-time high recently, just shy of $385 per share.
More recently, Microsoft stated its new AI model named Phi-2 is more capable than that of its rivals, specifically in logic-related tasks like programming and mathematics. Indeed, it seems like there's some new AI model launching every couple of weeks that's able to put the existing ones to shame. That may very well be the pace of innovation we'll come to expect in the new year as firms look to advance in what can only be described as an AI war.
Microsoft is a $2.8 trillion enterprise behemoth that is moving remarkably fast with AI -- but in a way (hopefully) as to not break things.
Meanwhile, Apple has been content sitting mostly on the sidelines when it comes to its latest and greatest AI technologies. Just because it's tighter-lipped doesn't mean it's "behind" in the AI race. For now, it's hard to tell what Apple has in store for 2024 on the AI front as it looks to launch its very first spatial computer in the Apple Vision Pro. It's hard to ignore the buzz surrounding potential AI endeavors going on behind the scenes, though.
Is MSFT Stock a Buy, According to Analysts?
On TipRanks, MSFT stock comes in as a Strong Buy. Out of 37 analyst ratings, there are 36 Buys and one Hold recommendation. The average MSFT stock price target is $421.79, implying upside potential of 15.3%. Analyst price targets range from a low of $375.00 per share to a high of $475.00 per share.
Is Apple Ready to Make an AI Splash in 2024? Analysts' Opinions Vary
Apple analyst Min-Chi Kuo, a man who's been spot on with past Apple predictions, sees the iPhone maker spending $4.75 billion on AI servers in 2024. That's a big bet on the future of AI. That said, Kuo doesn't believe Apple will launch a generative AI model in the new year.
Morgan Stanley (NYSE:MS) views Apple as one of the firms that are poised to benefit greatly from AI once it goes mainstream, going as far as to call it "an AI enabler." The investment firm sees Apple becoming one of the winners in the realm of "edge AI" as soon as early 2024.
What exactly is edge AI? Imagine having powerful AI models on your own device (think your iPhone) that don't require you to rely so heavily on the cloud. Profoundly powerful machine learning (ML) algorithms may very well be in the palm of your hand rather than on some remote server. Indeed, the concept is quite profound and could mark the next step in the world of AI.
Only time will tell how the next chapter of the AI story unfolds. Regardless, it's an exciting subsegment of AI that could put Apple at or around the front of the AI race at some point in the future. Whether the move is in 2024 or 2030, I believe Morgan Stanley is right on the money when it says Apple is one of the bigger beneficiaries of AI.
Indeed, it's hard to tell exactly where Apple stands with its AI strategy. As always, we'll probably have to wait until CEO Tim Cook is ready to announce before we can know with 100% certainty what the Cupertino-based giant is really up to and where it stands on the front of various technologies.
Is AAPL Stock a Buy, According to Analysts?
On TipRanks, AAPL stock comes in as a Strong Buy. Out of 33 analyst ratings, there are 25 Buys and eight Hold recommendations. The average AAPL stock price target is $203.70, implying upside potential of 2.8%. Analyst price targets range from a low of $150.00 per share to a high of $240.00 per share.
Bottom Line: Apple Stock Could Have More AI Upside From Here
I think Microsoft stock's upside may be limited as it's pretty common knowledge that it's an AI leader at this juncture. The stock goes for 36.3 times trailing price-to-earnings (P/E), notably above Apple's 31.8 times trailing P/E multiple. If edge AI is the next stepping stone, I'd not be shocked if Apple ends up closing the valuation gap with its long-time rival.
For now, Wall Street loves both companies but expects a bit more upside from Microsoft (15.3% vs. 2.8%). Nonetheless, expect average price targets to shift drastically as new developments arise from both firms on the front of AI.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More recently, Microsoft stated its new AI model named Phi-2 is more capable than that of its rivals, specifically in logic-related tasks like programming and mathematics. As always, we'll probably have to wait until CEO Tim Cook is ready to announce before we can know with 100% certainty what the Cupertino-based giant is really up to and where it stands on the front of various technologies. If edge AI is the next stepping stone, I'd not be shocked if Apple ends up closing the valuation gap with its long-time rival.
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Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). The average MSFT stock price target is $421.79, implying upside potential of 15.3%. The average AAPL stock price target is $203.70, implying upside potential of 2.8%.
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The Pace of Innovation at Microsoft Has Got to Be Intimidating for AI Rivals In recent months, Microsoft has been busy rolling out its Copilot AI across its software. Regardless, it's an exciting subsegment of AI that could put Apple at or around the front of the AI race at some point in the future. Bottom Line: Apple Stock Could Have More AI Upside From Here I think Microsoft stock's upside may be limited as it's pretty common knowledge that it's an AI leader at this juncture.
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The Pace of Innovation at Microsoft Has Got to Be Intimidating for AI Rivals In recent months, Microsoft has been busy rolling out its Copilot AI across its software. That said, Kuo doesn't believe Apple will launch a generative AI model in the new year. Is AAPL Stock a Buy, According to Analysts?
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50f0ad1f-0248-4f52-b59a-9651d1f4ee7e
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713108.0
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2023-12-12 00:00:00 UTC
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Lithium miner Livent buys minority stake in ILiAD Technologies parent
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DCOMP
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https://www.nasdaq.com/articles/lithium-miner-livent-buys-minority-stake-in-iliad-technologies-parent
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nan
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nan
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Adds details in paragraph 2, 3 and 4, CEO comment in paragraph 5 and background in paragraph 6
Dec 14 (Reuters) - U.S. lithium miner Livent Corp LTHM.N has acquired a minority stake in the parent company of direct lithium extraction technology firm ILiAD Technologies, the companies said on Thursday.
The companies did not disclose financial details or the size of the stake purchased.
Livent will have the right to license ILiAD technology for deployment at its lithium brine resource in Argentina, the companies said, adding that commercial utilization could begin as early as 2025.
"We are excited to partner with ILiAD Technologies as we continue to invest in processes and technologies which advance our strategy of producing high-quality lithium chemicals efficiently and sustainably," Livent's CEO Paul Graves said.
Livent received regulatory approval for its proposed $10.6 billion merger with Australia's Allkem AKE.AX last month. The combined firm will be the world's third-biggest producer of the metal, used in electric vehicle batteries, behind U.S.-based Albemarle ALB.N and Chile's SQM SQMA.SN.
(Reporting by Chandni Shah and Gnaneshwar Rajan in Bengaluru; Editing by Edmund Klamann)
((Chandni.shah@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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Livent will have the right to license ILiAD technology for deployment at its lithium brine resource in Argentina, the companies said, adding that commercial utilization could begin as early as 2025. Livent received regulatory approval for its proposed $10.6 billion merger with Australia's Allkem AKE.AX last month. The combined firm will be the world's third-biggest producer of the metal, used in electric vehicle batteries, behind U.S.-based Albemarle ALB.N and Chile's SQM SQMA.SN.
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Adds details in paragraph 2, 3 and 4, CEO comment in paragraph 5 and background in paragraph 6 Dec 14 (Reuters) - U.S. lithium miner Livent Corp LTHM.N has acquired a minority stake in the parent company of direct lithium extraction technology firm ILiAD Technologies, the companies said on Thursday. Livent will have the right to license ILiAD technology for deployment at its lithium brine resource in Argentina, the companies said, adding that commercial utilization could begin as early as 2025. "We are excited to partner with ILiAD Technologies as we continue to invest in processes and technologies which advance our strategy of producing high-quality lithium chemicals efficiently and sustainably," Livent's CEO Paul Graves said.
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Adds details in paragraph 2, 3 and 4, CEO comment in paragraph 5 and background in paragraph 6 Dec 14 (Reuters) - U.S. lithium miner Livent Corp LTHM.N has acquired a minority stake in the parent company of direct lithium extraction technology firm ILiAD Technologies, the companies said on Thursday. Livent will have the right to license ILiAD technology for deployment at its lithium brine resource in Argentina, the companies said, adding that commercial utilization could begin as early as 2025. "We are excited to partner with ILiAD Technologies as we continue to invest in processes and technologies which advance our strategy of producing high-quality lithium chemicals efficiently and sustainably," Livent's CEO Paul Graves said.
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Adds details in paragraph 2, 3 and 4, CEO comment in paragraph 5 and background in paragraph 6 Dec 14 (Reuters) - U.S. lithium miner Livent Corp LTHM.N has acquired a minority stake in the parent company of direct lithium extraction technology firm ILiAD Technologies, the companies said on Thursday. The companies did not disclose financial details or the size of the stake purchased. Livent will have the right to license ILiAD technology for deployment at its lithium brine resource in Argentina, the companies said, adding that commercial utilization could begin as early as 2025.
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fb21513e-3ce3-4094-80fb-7f4a13c8b912
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713109.0
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2023-12-12 00:00:00 UTC
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Macy’s vs. Kohl’s: Which Retail Stock is the Better Buy?
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DCOMP
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https://www.nasdaq.com/articles/macys-vs.-kohls%3A-which-retail-stock-is-the-better-buy
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nan
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nan
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In this piece, I evaluated two department store retailers, Macy's (NYSE:M) and Kohl's (NYSE:KSS), to determine which is the better stock to buy. A closer look suggests a neutral view for Macy's and a bearish view for Kohl's.
Macy's is a holding company of department stores that includes Bloomingdale's and the beauty retail chain Bluemercury in addition to Macy's stores. Meanwhile, Kohl's is a department store retail chain with over 1,100 locations spanning every U.S. state except Hawaii.
Shares of Macy's are roughly flat year-to-date following an enormous 76% rally over the last three months, with nearly all of that gain coming since November 9. On the other hand, Kohl's stock is up 21% year-to-date after a 22% gain over the last three months.
While Kohl's three-month rally is almost like a muted version of Macy's rally over the same timeframe, Macy's has something going for it that Kohl's doesn't. Rumors of a possible buyout have attached a rough price target to Macy's, although there is far more to consider with both companies to determine which stock is better.
Macy's (NYSE:M)
On the one hand, Macy's has managed to beat top- and bottom-line earnings results throughout much of this year, but on the other, its same-store sales are dropping. However, the big story is the reported buyout offer, which has slapped a rough estimate of $21 per share on Macy's, making a neutral view seem appropriate at current levels.
In fact, the rumors about a potential takeover have driven Macy's shares through the roof, carrying their price so high that it's simply too risky to buy any now. Unnamed sources told CNBC and The Wall Street Journal that Arkhouse Management and Brigade Capital offered to buy Macy's for $5.8 billion, a deal that values the department-store retailer at $21 a share.
Given Arkhouse's focus on real estate, it's believed that the deal is all about the real estate Macy's owns. In fact, the sources even suggested the firms might bid even higher based on due diligence. Unfortunately, the retailer reported a 7% year-over-year decline in same-store sales for the most recent quarter. It also guided for a decline of up to 7% in same-store sales for the holiday shopping quarter, although that was an improvement from the previous expectation of up to a 7.5% drop.
Like most brick-and-mortar retailers, Macy's is struggling against online competition, so after the recent three-month tear, it's challenging to get to a more constructive view of the retailer.
Macy's does pay a solid dividend of 3.4% with a low payout ratio of 22.41% of its net income, which suggests it may be able to continue paying its dividend in the near term. Thus, it could be worth holding while awaiting a potential buyout, but only in the event of a sizable pullback between now and then. At current levels, Macy's just looks too risky.
What is the Price Target for M stock?
Macy's has a Hold consensus rating based on five Buys, seven Holds, and two Sell ratings assigned over the last three months. At $15.92, the average Macy's stock price target implies downside potential of 18.53%.
Kohl's (NYSE:KSS)
As a brick-and-mortar retailer, Kohl's faces many of the same struggles as Macy's in the fight against online retailers. However, in some ways, it's even worse off, considering that it's struggling to break even on an annual basis. Due to the lack of positive catalysts and its ongoing struggles, a bearish view seems appropriate for Kohl's after the recent run-up in its shares.
In 2023, Kohl's has made some progress on profitability, managing to smash earnings estimates in all three of the reported quarters thus far. Meanwhile, in 2022, the retailer even posted a surprise loss in the fourth quarter and widely missed estimates in the first quarter.
However, while Kohl's has performed better on the top line, beating revenue estimates in most quarters over the last two years, its track record of steadily declining sales year-over-year continues. In the most recent quarter, same-store sales fell by 5.5% year-over-year, more than the expected 3.8% drop. In short, these sales and earnings trends don't bode well for Kohl's.
It might be tempting to buy some shares for the retailer's dividend. However, it's important to understand why Kohl's is not an attractive dividend stock despite its high 7% yield. Believe it or not, the retailer actually has a negative payout ratio (-152.67%) because it continues to pay out dividends even though it's unprofitable on an annual basis.
This ratio represents the percentage of net income that Kohl's is payout out in dividends. As a result, a negative payout ratio is a major warning sign because, in the worst-case scenario, it could suggest poor money management. At the very least, a negative payout ratio suggests the company's dividend is at risk of going away, meaning it wouldn't be a good idea to hold Kohl's stock just for the dividend.
What is the Price Target for KSS Stock?
Kohl's has a Hold consensus rating based on three Buys, five Holds, and two Sell ratings assigned over the last three months. At $24.50, the average Kohl's stock price target implies downside potential of 13.9%.
Conclusion: Neutral on M, Bearish on KSS
Unfortunately, falling same-store sales trends are red flags for both Macy's and Kohl's. However, Macy's is the winner of this pairing with a neutral view because of the buyout rumors. It could be worth holding for its dividend, but it may be best to wait and see if the shares pull back a bit, especially given the roughly $21/share cap on Macy's stock, pending clarification on whether the buyout rumors are true.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unnamed sources told CNBC and The Wall Street Journal that Arkhouse Management and Brigade Capital offered to buy Macy's for $5.8 billion, a deal that values the department-store retailer at $21 a share. However, while Kohl's has performed better on the top line, beating revenue estimates in most quarters over the last two years, its track record of steadily declining sales year-over-year continues. It could be worth holding for its dividend, but it may be best to wait and see if the shares pull back a bit, especially given the roughly $21/share cap on Macy's stock, pending clarification on whether the buyout rumors are true.
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In this piece, I evaluated two department store retailers, Macy's (NYSE:M) and Kohl's (NYSE:KSS), to determine which is the better stock to buy. At $15.92, the average Macy's stock price target implies downside potential of 18.53%. At $24.50, the average Kohl's stock price target implies downside potential of 13.9%.
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In this piece, I evaluated two department store retailers, Macy's (NYSE:M) and Kohl's (NYSE:KSS), to determine which is the better stock to buy. While Kohl's three-month rally is almost like a muted version of Macy's rally over the same timeframe, Macy's has something going for it that Kohl's doesn't. Kohl's (NYSE:KSS) As a brick-and-mortar retailer, Kohl's faces many of the same struggles as Macy's in the fight against online retailers.
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Rumors of a possible buyout have attached a rough price target to Macy's, although there is far more to consider with both companies to determine which stock is better. Macy's (NYSE:M) On the one hand, Macy's has managed to beat top- and bottom-line earnings results throughout much of this year, but on the other, its same-store sales are dropping. At the very least, a negative payout ratio suggests the company's dividend is at risk of going away, meaning it wouldn't be a good idea to hold Kohl's stock just for the dividend.
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23f3316b-f1cc-4d52-bf5a-6a91e811454d
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713110.0
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2023-12-12 00:00:00 UTC
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TipRanks’ All-Star Analyst – Who is the Best on JPM Stock?
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DCOMP
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https://www.nasdaq.com/articles/tipranks-all-star-analyst-who-is-the-best-on-jpm-stock-0
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nan
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nan
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The TipRanks All-star Analyst of the Day title goes to Susan Roth Katzke of research firm Credit Suisse. Remarkably, Katzke ranks #105 out of the 8,636 Wall Street analysts tracked by TipRanks. One of the key stocks in her coverage is a financial firm JPM (NYSE:JPM), for which she is both the Most Accurate and Most Profitable analyst.
Most Profitable and Accurate Analyst on JPM Stock
When we look at Katzke’s recommendation for JPMorgan, a global leader in financial services, we see that over the past year, Katzke has had a 82% success rate on the stock. Plus, she has earned average returns of 20.21% in the said period.
On an overall basis, copying Katzke’s trades and holding them for a year would give you an average return of 19.2%, with 70% of your trades generating a profit.
Not Just JPM
Katzke primarily focuses on covering the financial sector in the U.S. market. Importantly, her most profitable rating to date was a Buy on Morgan Stanley (NYSE:MS). This is an American multinational investment bank and financial services company. The analyst earned a massive 138% return on the call between May 6, 2020, and May 6, 2021.
Following phenomenally successful analysts’ ratings can add profit to your portfolio. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page.
To follow the best Wall Street analysts, take a look at the list of Top Analysts on TipRanks.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The TipRanks All-star Analyst of the Day title goes to Susan Roth Katzke of research firm Credit Suisse. Remarkably, Katzke ranks #105 out of the 8,636 Wall Street analysts tracked by TipRanks. Importantly, her most profitable rating to date was a Buy on Morgan Stanley (NYSE:MS).
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One of the key stocks in her coverage is a financial firm JPM (NYSE:JPM), for which she is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on JPM Stock When we look at Katzke’s recommendation for JPMorgan, a global leader in financial services, we see that over the past year, Katzke has had a 82% success rate on the stock. Following phenomenally successful analysts’ ratings can add profit to your portfolio.
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One of the key stocks in her coverage is a financial firm JPM (NYSE:JPM), for which she is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on JPM Stock When we look at Katzke’s recommendation for JPMorgan, a global leader in financial services, we see that over the past year, Katzke has had a 82% success rate on the stock. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page.
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Most Profitable and Accurate Analyst on JPM Stock When we look at Katzke’s recommendation for JPMorgan, a global leader in financial services, we see that over the past year, Katzke has had a 82% success rate on the stock. Plus, she has earned average returns of 20.21% in the said period. To follow the best Wall Street analysts, take a look at the list of Top Analysts on TipRanks.
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c95c1a94-520d-498f-814d-892115eec56b
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713111.0
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2023-12-12 00:00:00 UTC
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Increasing 2x In 2023, What Is Next For Shopify Stock?
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DCOMP
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https://www.nasdaq.com/articles/increasing-2x-in-2023-what-is-next-for-shopify-stock
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nan
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nan
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Shopify stock (NYSE: SHOP) had a solid year, rising by almost 100% since early January and is up by 16% over the past month. This is well ahead of the Nasdaq-100, which remains up by 50% over the same period. Demand for Shopify’s myriad offerings, which range from software tools businesses need to set up their e-commerce websites, to payment processing and point-of-sales terminals, has been on the uptrend over the last year. For perspective, over the most recent quarter, revenue increased by 25%, and gross profit grew by 36%, while gross merchandise volume (GMV) transacted on the company’s platforms was up 22% year over year to $56.2 billion. The company could also be set up for a strong Holiday season, if the Black Friday-Cyber Monday is any indicator, given that sales over this period rose 24% compared to a year ago.
There have been other positive developments as well. Earlier this year, Shopify exited its fledgling logistics business, which it began building out pre-Covid, selling its operations to global supply chain player Flexport. This divestment has also been viewed favorably by the markets, given that sizable cash outlays were required for Shopify to build out what is seen as a low-margin business. The company has also been cutting costs, reducing its workforce by 20% earlier this year. Shopify has also had some notable collaborations, including the integration of Amazon’s Buy With Prime option. The deal will allow Shopify vendors to offer delivery options that use Amazon’s fulfillment network on their storefront while checking out using their Amazon accounts.
SHOP stock has suffered a sharp decline of 35% from levels of $115 in early January 2021 to around $75 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. However, the decrease in SHOP stock has been far from consistent. Returns for the stock were 22% in 2021, -75% in 2022, and 109% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 21% in 2023 (YTD) – indicating that SHOP underperformed the S&P in 2021 and 2022. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; and even for the megacap stars GOOG, TSLA, and MSFT.
In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could SHOP face a similar situation as it did in 2021 and 2022 and underperform the S&P over the next 12 months – or will it see a recovery?
We think that Shopify stock has some upside. The company says that it now accounts for about 10% of all U.S. e-commerce transactions, and we believe that revenue growth is still likely to remain above the industry average for a couple of reasons. Firstly, the company looks to expand beyond its core base of smaller customers to more large sellers and enterprises with its large business-focused Shopify Plus product. This offering could be attractive from a cost standpoint for larger businesses, as they can get cutting-edge technology and support without the hassle of building out their own software and development teams. Shopify is also making solid progress with its offline business and point-of-sale operations, noting that this business is growing by 1.5x its other business, with sales projected to touch $450 million this year. Separately, Shopify is also looking to improve its margins further via cost cuts and manpower reductions. Shopify valuation multiples are lower than historical levels, with the stock trading at about 10x projected 2023 revenues, down from 20x to 40x seen between 2019 and 2021. We value Shopify stock at $80 per share, roughly 10% ahead of the current market price. See Shopify Valuation: Is SHOP Stock Expensive Or Cheap? for more details on Shopify’s valuation and Shopify Revenues for more details on the company’s revenue streams and how they are trending.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
SHOP Return 0% 109% 1591%
S&P 500 Return 2% 21% 107%
Trefis Reinforced Value Portfolio 2% 30% 569%
[1] Month-to-date and year-to-date as of 12/13/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Demand for Shopify’s myriad offerings, which range from software tools businesses need to set up their e-commerce websites, to payment processing and point-of-sales terminals, has been on the uptrend over the last year. Earlier this year, Shopify exited its fledgling logistics business, which it began building out pre-Covid, selling its operations to global supply chain player Flexport. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could SHOP face a similar situation as it did in 2021 and 2022 and underperform the S&P over the next 12 months – or will it see a recovery?
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We value Shopify stock at $80 per share, roughly 10% ahead of the current market price. for more details on Shopify’s valuation and Shopify Revenues for more details on the company’s revenue streams and how they are trending. Total [2] SHOP Return 0% 109% 1591% S&P 500 Return 2% 21% 107% Trefis Reinforced Value Portfolio 2% 30% 569% [1] Month-to-date and year-to-date as of 12/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shopify stock (NYSE: SHOP) had a solid year, rising by almost 100% since early January and is up by 16% over the past month. for more details on Shopify’s valuation and Shopify Revenues for more details on the company’s revenue streams and how they are trending. Total [2] SHOP Return 0% 109% 1591% S&P 500 Return 2% 21% 107% Trefis Reinforced Value Portfolio 2% 30% 569% [1] Month-to-date and year-to-date as of 12/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 21% in 2023 (YTD) – indicating that SHOP underperformed the S&P in 2021 and 2022. Shopify is also making solid progress with its offline business and point-of-sale operations, noting that this business is growing by 1.5x its other business, with sales projected to touch $450 million this year. See Shopify Valuation: Is SHOP Stock Expensive Or Cheap?
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c494e99c-cdfb-417b-b5b3-d4fe6ae375b4
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713112.0
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2023-12-12 00:00:00 UTC
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Up 63% This Year, Despite Higher Rates, Will The Homebuilding Theme Continue To Outperform?
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DCOMP
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https://www.nasdaq.com/articles/up-63-this-year-despite-higher-rates-will-the-homebuilding-theme-continue-to-outperform
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nan
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nan
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Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders such as Pulte Group (NYSE:PHM) and Lennar (NYSE:LEN) has fared well in 2023, rising by a solid 63% this year so far. This compares to the S&P 500 which remains up by about 21% over the same period. Mortgage rates in the U.S. have soared due to the Fed’s hawkish stance and the post-pandemic surge in inflation. The average interest rate for a 30-year, fixed loan stood at over 7% as of last week, compared to levels of under 3% in 2021. This is making home financing much more expensive compared to the pre-pandemic era.
However, this is actually benefiting builders of new homes. The increased rates make it more likely for existing homeowners, who have locked-in mortgages at lower rates, to stay in their homes, reducing the incentive to sell. This has led to a decrease in the market for both upsizing and downsizing homes due to the lock-in effect. This has resulted in a shortage of existing homes for sale. In October, existing home sales dipped by 4.1%, reaching a 13-year low, according to the National Association of Realtors. This trend has proven advantageous for new home builders, as the overall housing market still faces a significant under-supply. October sales of new single-family homes reached a seasonally adjusted annual rate of 679,000, marking a 17.7% increase from October 2022. Moreover, median sales prices for new homes have declined to $409,300., down from $496,800 in the same period last year. This lower pricing could also be stimulating demand. However, new homebuilding activity saw a bit of a slowdown with single-family housing starts increasing by 0.2% in October, compared to a rise of about 3.2% in the year-ago period.
Now LEN stock has seen extremely strong gains of 85% from levels of $75 in early January 2021 to around $140 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. However, the increase in LEN stock has been far from consistent. Returns for the stock were 52% in 2021, -22% in 2022, and 55% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 21% in 2023 (YTD) – indicating that LEN underperformed the S&P in 2022. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Discretionary sector including AMZN, TSLA, and HD, and even for the megacap stars GOOG, MSFT, and AAPL.
In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could LEN face a similar situation as it did in 2022 and underperform the S&P over the next 12 months – or will it see a strong jump?
Although it is difficult to gauge the near-term outlook for the theme, there remains a fundamental under-supply of homes, with a wide range of estimates projecting that the U.S. may be short of anywhere between 1.5 million to 5 million homes. This might indicate that housing players may still have good demand visibility, with volumes and revenues likely to hold up. This could help companies such as PulteGroup and Lennar. There is also some optimism in the market that the Federal Reserve could pause its interest rate hikes as inflation cools. The consumer price index, (CPI) a closely watched inflation gauge, rose 0.1% in November and was up by just 3.1% versus last year. This could eventually help to ease mortgage rates and drive housing demand further.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
LEN Return 10% 55% 233%
S&P 500 Return 2% 21% 107%
Trefis Reinforced Value Portfolio 2% 30% 569%
[1] Month-to-date and year-to-date as of 12/13/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, new homebuilding activity saw a bit of a slowdown with single-family housing starts increasing by 0.2% in October, compared to a rise of about 3.2% in the year-ago period. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Discretionary sector including AMZN, TSLA, and HD, and even for the megacap stars GOOG, MSFT, and AAPL. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could LEN face a similar situation as it did in 2022 and underperform the S&P over the next 12 months – or will it see a strong jump?
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Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders such as Pulte Group (NYSE:PHM) and Lennar (NYSE:LEN) has fared well in 2023, rising by a solid 63% this year so far. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could LEN face a similar situation as it did in 2022 and underperform the S&P over the next 12 months – or will it see a strong jump? Total [2] LEN Return 10% 55% 233% S&P 500 Return 2% 21% 107% Trefis Reinforced Value Portfolio 2% 30% 569% [1] Month-to-date and year-to-date as of 12/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders such as Pulte Group (NYSE:PHM) and Lennar (NYSE:LEN) has fared well in 2023, rising by a solid 63% this year so far. The increased rates make it more likely for existing homeowners, who have locked-in mortgages at lower rates, to stay in their homes, reducing the incentive to sell. Total [2] LEN Return 10% 55% 233% S&P 500 Return 2% 21% 107% Trefis Reinforced Value Portfolio 2% 30% 569% [1] Month-to-date and year-to-date as of 12/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders such as Pulte Group (NYSE:PHM) and Lennar (NYSE:LEN) has fared well in 2023, rising by a solid 63% this year so far. This compares to the S&P 500 which remains up by about 21% over the same period. Moreover, median sales prices for new homes have declined to $409,300., down from $496,800 in the same period last year.
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07ae6f42-a5d1-4a9a-a77a-8326282161a9
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713113.0
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2023-12-12 00:00:00 UTC
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Down 20% This Year Is RTX A Better Pick Over Lockheed Martin Stock?
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DCOMP
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https://www.nasdaq.com/articles/down-20-this-year-is-rtx-a-better-pick-over-lockheed-martin-stock
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nan
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nan
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We believe both Lockheed Martin stock (NYSE: LMT) and RTX Corp stock (NYSE: RTX) can see higher levels and will offer similar returns in the next three years. These companies are from the same aerospace and defense industry, with a similar revenue base of $67 billion and a similar market capitalization of $110-120 billion. Both LMT and RTX trade at 1.7x revenues. While RTX has seen superior revenue growth in recent years, Lockheed Martin is more profitable. In the sections below, we discuss the possible returns for both stocks in the next three years. We compare a slew of factors, such as historical revenue growth, stock returns, and valuation.
LMT stock has shown strong gains of 25% from levels of $355 in early January 2021 to around $450 now, while RTX stock has witnessed gains of 15% from levels of $70 in early January 2021 to around $80 now. This compares with an increase of about 25% for the S&P 500 over this roughly 3-year period.
However, the increase in both stocks has been far from consistent. Returns for LMT stock were 0% in 2021, 37% in 2022, and -7% in 2023 (YTD), while returns for RTX stock were 23% in 2021, 19% in 2022, and -20% in 2023 (YTD. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 21% in 2023 (YTD) – indicating that LMT and RTX underperformed the S&P in 2021 and 2023.
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the industrial sector, including BA, UNP, and UPS, and even for the mega-cap stars GOOG, TSLA, and MSFT. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could LMT and RTX face a similar situation as they did in 2021 and 2023 and underperform the S&P over the next 12 months – or will they see a strong jump? We believe both stocks will see higher levels and offer similar returns of 15%-20% in the next three years.
1. RTX’s Revenue Growth Is Better
RTX’s revenue growth has been better, with a 14.2% average annual growth rate in the last three years, compared to 3.4% for Lockheed Martin.
Lockheed Martin’s revenue growth over the recent years has been led by higher production volume for its Sikorsky helicopter programs, AC-3, Long Range Anti-Ship Missile (LRASM), and the Joint Air-to-Surface Standoff Missile (JASSM) program, among others.
Lockheed Martin is seeing a higher volume of production contracts for F-35 and the national security space program driving its sales growth, a trend expected to continue in the near term.
RTX Corp’s commercial airplane business was hit during the pandemic, weighing on its commercial OEM and aftermarket sales. This trend has now reversed, with both Pratt & Whitney and Collins Aerospace Systems segments driving the company’s sales growth in the recent past.
However, RTX stock has been under pressure this year due to its recall of over 1,000 Pratt & Whitney engines and associated costs.
If we look at the last twelve-month period revenues, Lockheed Martin fares better with sales growth of 4.6% vs. 1.6% for RTX.
Our Lockheed Martin Revenue Comparison and RTX Corp Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, revenue for RTX is expected to grow at a faster pace than Lockheed Martin in the next three years.
2. Lockheed Martin Is More Profitable
Lockheed Martin’s operating margin has slid from 13.3% in 2019 to 11.2% in 2022, while RTX Corp’s operating margin fell from 12.7% to 10.9% over this period.
Looking at the last twelve-month period, Lockheed Martin’s operating margin of 13.2% fares better than 7.4% for RTX.
Our Lockheed Martin Operating Income Comparison and RTX Corp Operating Income Comparison dashboards have more details.
Looking at financial risk, Lockheed Martin fares better with its 15% debt as a percentage of equity lower than 30% for RTX. Also, its 6% cash as a percentage of assets is higher than 3% for RTX, implying that Lockheed Martin has a better debt position and more cash cushion.
3. The Net of It All
We see that RTX has seen better revenue growth, while Lockheed Martin is more profitable and has a better financial position.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both will offer similar returns in the next three years.
That said, if we compare the current valuation multiples to the historical averages, RTX fares better. Lockheed Martin’s stock is currently trading at 1.7x revenues, close to its last five-year average of 1.6x. In comparison, RTX Corp is trading at 1.7x revenues, compared to its last five-year average of 2.3x.
Our Lockheed Martin (LMT) Valuation Ratios Comparison and RTX Corp (RTX) Valuation Ratios Comparison have more details.
We believe LMT and RTX will likely see gains of 15%-20% in the next three years, based on Trefis Machine Learning analysis.
While LMT and RTX may offer similar returns in the next three years, it is helpful to see how Lockheed Martin’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
LMT Return 1% -7% 81%
RTX Return -1% -20% 35%
S&P 500 Return 2% 21% 107%
Trefis Reinforced Value Portfolio 2% 30% 569%
[1] Month-to-date and year-to-date as of 12/13/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the industrial sector, including BA, UNP, and UPS, and even for the mega-cap stars GOOG, TSLA, and MSFT. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could LMT and RTX face a similar situation as they did in 2021 and 2023 and underperform the S&P over the next 12 months – or will they see a strong jump? Lockheed Martin is seeing a higher volume of production contracts for F-35 and the national security space program driving its sales growth, a trend expected to continue in the near term.
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We believe both Lockheed Martin stock (NYSE: LMT) and RTX Corp stock (NYSE: RTX) can see higher levels and will offer similar returns in the next three years. Our Lockheed Martin Operating Income Comparison and RTX Corp Operating Income Comparison dashboards have more details. Our Lockheed Martin (LMT) Valuation Ratios Comparison and RTX Corp (RTX) Valuation Ratios Comparison have more details.
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We believe both Lockheed Martin stock (NYSE: LMT) and RTX Corp stock (NYSE: RTX) can see higher levels and will offer similar returns in the next three years. RTX’s Revenue Growth Is Better RTX’s revenue growth has been better, with a 14.2% average annual growth rate in the last three years, compared to 3.4% for Lockheed Martin. Our Lockheed Martin (LMT) Valuation Ratios Comparison and RTX Corp (RTX) Valuation Ratios Comparison have more details.
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RTX’s Revenue Growth Is Better RTX’s revenue growth has been better, with a 14.2% average annual growth rate in the last three years, compared to 3.4% for Lockheed Martin. If we look at the last twelve-month period revenues, Lockheed Martin fares better with sales growth of 4.6% vs. 1.6% for RTX. Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both will offer similar returns in the next three years.
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537181b5-fcdc-4b77-b661-732803d8611d
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713114.0
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2023-12-12 00:00:00 UTC
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Best Value Stocks to Buy for December 15th
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DCOMP
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https://www.nasdaq.com/articles/best-value-stocks-to-buy-for-december-15th-0
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Here are two stocks with buy rank and strong value characteristics for investors to consider today, December 15th:
Bayerische Motoren Werke Aktiengesellschaft BMWYY: This automobile giant carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.
Bayerische Motoren Werke AG Sponsored ADR Price and Consensus
Bayerische Motoren Werke AG Sponsored ADR price-consensus-chart | Bayerische Motoren Werke AG Sponsored ADR Quote
Bayerische Motoren has a price-to-earnings ratio (P/E) of 5.11, compared with 5.90 for the industry. The company possesses a Value Score of A.
Bayerische Motoren Werke AG Sponsored ADR PE Ratio (TTM)
Bayerische Motoren Werke AG Sponsored ADR pe-ratio-ttm | Bayerische Motoren Werke AG Sponsored ADR Quote
Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 4.4% over the last 60 days.
Origin Bancorp, Inc. Price and Consensus
Origin Bancorp, Inc. price-consensus-chart | Origin Bancorp, Inc. Quote
Origin has a price-to-earnings ratio (P/E) of 12.52, compared with 20.92 for the S&P 500. The company possesses a Value Score of B.
Origin Bancorp, Inc. PE Ratio (TTM)
Origin Bancorp, Inc. pe-ratio-ttm | Origin Bancorp, Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated 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
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
Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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The company possesses a Value Score of A. Bayerische Motoren Werke AG Sponsored ADR PE Ratio (TTM) Bayerische Motoren Werke AG Sponsored ADR pe-ratio-ttm | Bayerische Motoren Werke AG Sponsored ADR Quote Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 4.4% over the last 60 days. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Bayerische Motoren Werke AG Sponsored ADR Price and Consensus Bayerische Motoren Werke AG Sponsored ADR price-consensus-chart | Bayerische Motoren Werke AG Sponsored ADR Quote Bayerische Motoren has a price-to-earnings ratio (P/E) of 5.11, compared with 5.90 for the industry. The company possesses a Value Score of A. Bayerische Motoren Werke AG Sponsored ADR PE Ratio (TTM) Bayerische Motoren Werke AG Sponsored ADR pe-ratio-ttm | Bayerische Motoren Werke AG Sponsored ADR Quote Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 4.4% over the last 60 days. Click to get this free report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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Bayerische Motoren Werke AG Sponsored ADR Price and Consensus Bayerische Motoren Werke AG Sponsored ADR price-consensus-chart | Bayerische Motoren Werke AG Sponsored ADR Quote Bayerische Motoren has a price-to-earnings ratio (P/E) of 5.11, compared with 5.90 for the industry. The company possesses a Value Score of A. Bayerische Motoren Werke AG Sponsored ADR PE Ratio (TTM) Bayerische Motoren Werke AG Sponsored ADR pe-ratio-ttm | Bayerische Motoren Werke AG Sponsored ADR Quote Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 4.4% over the last 60 days. Click to get this free report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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The company possesses a Value Score of A. Bayerische Motoren Werke AG Sponsored ADR PE Ratio (TTM) Bayerische Motoren Werke AG Sponsored ADR pe-ratio-ttm | Bayerische Motoren Werke AG Sponsored ADR Quote Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 4.4% over the last 60 days. The company possesses a Value Score of B. Click to get this free report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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1aa58efe-aeff-4698-a87b-1eeef6df4cc4
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713115.0
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2023-12-12 00:00:00 UTC
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Carrier (CARR) Strengthens Portfolio With Latest Divestiture
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DCOMP
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https://www.nasdaq.com/articles/carrier-carr-strengthens-portfolio-with-latest-divestiture
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Carrier Global CARR has been focusing on strengthening its portfolio with the divestiture of non-core assets. The company recently announced back-to-back divestiture of its commercial refrigeration and security businesses.
Carrier is selling the commercial refrigeration business (cabinets) to its long-time joint venture partner Haier for an enterprise value of $775 million, including roughly $200 million of net pension liabilities. This represents about 16.5 times of 2023 expected EBITDA. The transaction is expected to close in the second half of 2024.
Last week, Carrier announced the sale of its security business, Global Access Solutions, to Honeywell for $4.95 billion. This reflects approximately 17 times the 2023 expected EBITDA.
Net proceeds from the commercial refrigeration deal are expected to exceed $500 million, while the figure from the security business is expected to be more than $4 billion. Carrier plans to use the net proceeds to settle some of its debts.
As of Sep 30, 2023, the company had a total debt of $8.79 billion compared with $8.8 billion as of Jun 30, 2023. Cash and cash equivalents were $3.9 billion as of Sep 30 compared with $3.21 billion as of Jun 30, 2023.
Carrier Global Corporation Price and Consensus
Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote
Carrier shares have returned 8.1% in the past three months, outperforming the Zacks Computer and Technology sector’s rise of 7.8%.
Carrier’s Reorganization to Boost Prospect
Carrier is putting more focus on expanding its intelligent climate and energy solutions. As part of the transformation strategy, the company bought Viessmann Climate Solutions and expects to close the acquisition in the first week of 2024.
Viessman expands Carrier’s footprint in Europe as it provides solutions for all energy classes, including heat pumps, gas boilers and hydrogen boilers.
Carrier’s 2023 guidance remains robust thanks to portfolio strength. It expects sales in the band of $22.1-$22.2 billion with mid-single-digit organic sales growth. The Zacks Consensus Estimate for the same is pegged at $22.25 billion, suggesting growth of 8.94%.
Carrier expects organic sales growth in the container business, commercial refrigeration and the entire Refrigeration segment.
CARR anticipates earnings of nearly $2.70 per share. The Zacks Consensus Estimate for the same is pegged at $2.72.
The company expects to generate slightly more than $1.9 billion of free cash flow in 2023.
Zacks Rank & Stocks to Consider
Carrier currently has a Zacks Rank #3 (Hold).
Flex FLEX, Badger Meter BMI and Ceridian HCM CDAY are some better-ranked stocks in the broader sector, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flex shares have gained 29.7% in the past year. The long-term earnings growth rate is pegged at 12.39%.
Badger Meter shares have gained 42.6% in the past year. The long-term earnings growth rate is pegged at 20.39%.
Ceridian shares have gained 8.7% over the same timeframe. The long-term earnings growth rate is pegged at 44.15%.
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
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
Ceridian HCM (CDAY) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : 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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Last week, Carrier announced the sale of its security business, Global Access Solutions, to Honeywell for $4.95 billion. As part of the transformation strategy, the company bought Viessmann Climate Solutions and expects to close the acquisition in the first week of 2024. 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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Carrier Global Corporation Price and Consensus Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote Carrier shares have returned 8.1% in the past three months, outperforming the Zacks Computer and Technology sector’s rise of 7.8%. Flex FLEX, Badger Meter BMI and Ceridian HCM CDAY are some better-ranked stocks in the broader sector, each currently sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Ceridian HCM (CDAY) : Free Stock Analysis Report Carrier Global Corporation (CARR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Carrier Global Corporation Price and Consensus Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote Carrier shares have returned 8.1% in the past three months, outperforming the Zacks Computer and Technology sector’s rise of 7.8%. Zacks Rank & Stocks to Consider Carrier currently has a Zacks Rank #3 (Hold). Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Ceridian HCM (CDAY) : Free Stock Analysis Report Carrier Global Corporation (CARR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Net proceeds from the commercial refrigeration deal are expected to exceed $500 million, while the figure from the security business is expected to be more than $4 billion. The Zacks Consensus Estimate for the same is pegged at $22.25 billion, suggesting growth of 8.94%. CARR anticipates earnings of nearly $2.70 per share.
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a8287ba3-dd8e-408d-b6cf-7657beb18357
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713116.0
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2023-12-12 00:00:00 UTC
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Down -10.8% in 4 Weeks, Here's Why You Should You Buy the Dip in Arch Capital (ACGL)
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DCOMP
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https://www.nasdaq.com/articles/down-10.8-in-4-weeks-heres-why-you-should-you-buy-the-dip-in-arch-capital-acgl
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nan
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Arch Capital Group (ACGL) has been beaten down lately with too much selling pressure. While the stock has lost 10.8% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
Guide to Identifying Oversold Stocks
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why ACGL Could Bounce Back Before Long
The RSI reading of 27.32 for ACGL is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ACGL in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0.3% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, ACGL currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the stock has lost 10.8% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal. 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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Arch Capital Group (ACGL) has been beaten down lately with too much selling pressure. You can see the complete list of today's Zacks Rank #1 (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. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. Why ACGL Could Bounce Back Before Long The RSI reading of 27.32 for ACGL is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> 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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RSI oscillates between zero and 100. This technical indicator is not the only factor that calls for a potential rebound for the stock. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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d57c1a51-dd24-4198-a150-455119823725
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713117.0
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2023-12-12 00:00:00 UTC
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Ex-Dividend Reminder: Inter Parfums, Sonic Automotive and Service Corp. International
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DCOMP
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-inter-parfums-sonic-automotive-and-service-corp.-international
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Looking at the universe of stocks we cover at Dividend Channel, on 12/14/23, Inter Parfums, Inc. (Symbol: IPAR), Sonic Automotive, Inc. (Symbol: SAH), and Service Corp. International (Symbol: SCI) will all trade ex-dividend for their respective upcoming dividends. Inter Parfums, Inc. will pay its quarterly dividend of $0.625 on 12/31/23, Sonic Automotive, Inc. will pay its quarterly dividend of $0.30 on 1/12/24, and Service Corp. International will pay its quarterly dividend of $0.29 on 12/29/23. As a percentage of IPAR's recent stock price of $133.27, this dividend works out to approximately 0.47%, so look for shares of Inter Parfums, Inc. to trade 0.47% lower — all else being equal — when IPAR shares open for trading on 12/14/23. Similarly, investors should look for SAH to open 0.60% lower in price and for SCI to open 0.44% lower, all else being equal.
Below are dividend history charts for IPAR, SAH, and SCI, showing historical dividends prior to the most recent ones declared.
Inter Parfums, Inc. (Symbol: IPAR):
Sonic Automotive, Inc. (Symbol: SAH):
Service Corp. International (Symbol: SCI):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.88% for Inter Parfums, Inc., 2.38% for Sonic Automotive, Inc., and 1.75% for Service Corp. International.
Free Report: Top 8%+ Dividends (paid monthly)
In Tuesday trading, Inter Parfums, Inc. shares are currently up about 1.1%, Sonic Automotive, Inc. shares are up about 0.3%, and Service Corp. International shares are up about 1.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
Top Ten Hedge Funds Holding GCA
UMPQ YTD Return
Funds Holding PLTR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. If they do continue, the current estimated yields on annualized basis would be 1.88% for Inter Parfums, Inc., 2.38% for Sonic Automotive, Inc., and 1.75% for Service Corp. International. dividend stocks should be on your radar screen » Also see: Top Ten Hedge Funds Holding GCA UMPQ YTD Return Funds Holding PLTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/14/23, Inter Parfums, Inc. (Symbol: IPAR), Sonic Automotive, Inc. (Symbol: SAH), and Service Corp. International (Symbol: SCI) will all trade ex-dividend for their respective upcoming dividends. Inter Parfums, Inc. will pay its quarterly dividend of $0.625 on 12/31/23, Sonic Automotive, Inc. will pay its quarterly dividend of $0.30 on 1/12/24, and Service Corp. International will pay its quarterly dividend of $0.29 on 12/29/23. Inter Parfums, Inc. (Symbol: IPAR): Sonic Automotive, Inc. (Symbol: SAH): Service Corp. International (Symbol: SCI): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/14/23, Inter Parfums, Inc. (Symbol: IPAR), Sonic Automotive, Inc. (Symbol: SAH), and Service Corp. International (Symbol: SCI) will all trade ex-dividend for their respective upcoming dividends. Inter Parfums, Inc. will pay its quarterly dividend of $0.625 on 12/31/23, Sonic Automotive, Inc. will pay its quarterly dividend of $0.30 on 1/12/24, and Service Corp. International will pay its quarterly dividend of $0.29 on 12/29/23. Inter Parfums, Inc. (Symbol: IPAR): Sonic Automotive, Inc. (Symbol: SAH): Service Corp. International (Symbol: SCI): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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As a percentage of IPAR's recent stock price of $133.27, this dividend works out to approximately 0.47%, so look for shares of Inter Parfums, Inc. to trade 0.47% lower — all else being equal — when IPAR shares open for trading on 12/14/23. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.88% for Inter Parfums, Inc., 2.38% for Sonic Automotive, Inc., and 1.75% for Service Corp. International.
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dca50440-e477-48dd-8743-3ddbf554825f
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713118.0
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2023-12-12 00:00:00 UTC
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Should Value Investors Buy ABM Industries (ABM) Stock?
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DCOMP
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https://www.nasdaq.com/articles/should-value-investors-buy-abm-industries-abm-stock-2
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nan
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nan
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
ABM Industries (ABM) is a stock many investors are watching right now. ABM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.83 right now. For comparison, its industry sports an average P/E of 34.71. Over the last 12 months, ABM's Forward P/E has been as high as 15.83 and as low as 10.26, with a median of 12.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ABM has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.66.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ABM Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABM feels like a great value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. 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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ABM Industries (ABM) is a stock many investors are watching right now. Click to get this free report ABM Industries Incorporated (ABM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. ABM Industries (ABM) is a stock many investors are watching right now. Click to get this free report ABM Industries Incorporated (ABM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ABM Industries (ABM) is a stock many investors are watching right now. ABM has a P/S ratio of 0.38. These figures are just a handful of the metrics value investors tend to look at, but they help show that ABM Industries is likely being undervalued right now.
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f3fa0a53-c320-4817-8e90-00f15cc7bef7
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713119.0
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2023-12-12 00:00:00 UTC
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Investors: This Stock Just Became Your Best Friend
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DCOMP
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https://www.nasdaq.com/articles/investors%3A-this-stock-just-became-your-best-friend
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nan
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nan
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Excitement about the stock market has pushed some major market benchmarks to record levels in recent days. The possibility that an end to high interest rates could be in sight is making investors more optimistic than ever about 2024's prospects.
Yet no matter how rosy the market looks, investors always love a company that can deliver solid results year after year and reward them with strong total returns over time. Costco Wholesale (NASDAQ: COST) has been a stellar performer for decades, and it just made yet another move to show why the warehouse retailer's stock could be an investor's best friend.
Costco stays strong
Shares of Costco Wholesale were up between 2% and 3% early Friday morning. The retailer reported fiscal first-quarter financial results for the period ended Nov. 26 that showed the strength of the consumer economy.
Net sales at Costco were up 6.1% year over year, coming in at $56.72 billion. The company also collected $1.08 billion in membership fees, up by roughly 8% from year-ago levels. Costco attributed some of the gain to the shift in the calendar, because last year's quarter didn't include the Thanksgiving holiday, but this year's did. By its estimate, Costco picked up about half a percentage point of growth from the calendar impact.
Net income for the quarter climbed an even healthier 16% to $1.59 billion. That worked out to $3.58 per share, up from $3.07 per share a year ago.
Sales trends were generally favorable, although Costco enjoyed greater success abroad than in its home U.S. market. Comparable sales for the quarter were up just 2.6% on an adjusted basis in its 600 U.S. locations. However, the 108 stores that Costco has in Canada collectively posted comps that were up 8.2%. Comps for the other international segment, which includes 163 warehouses across the globe, were up 7.1%. E-commerce sales gained 6.1% year over year.
A big reward for Costco shareholders
Perhaps the best news for Costco investors, however, came from the warehouse retailer's board of directors. Costco announced that it would pay a special dividend of $15 per share to shareholders in mid-January. The gain in Costco's stock price was actually a bit higher than that, even though the cash payment will reduce the value of assets held by the company.
Costco does pay a modest regular dividend of $1.02 per share, which works out to a yield of less than 0.7% based on current share prices. However, the warehouse retailer has periodically made supplemental special dividend payments to its shareholders as well.
None of the previous special dividends has been this large, though. In 2020, Costco shareholders received $10 per share. Payments in 2012 and 2017 were $7 per share, with a smaller $5-per-share payment in 2015.
What's next for Costco?
With many investors having hoped that a special dividend would be coming, the next question for Costco is whether it will increase membership fees. The revenue that those fees generate comes with a high profit margin, with nearly all of it falling down to Costco's bottom line in earnings. It's been seven and a half years since Costco last raised its fees, and that's longer than the period in between previous increases historically.
For now, though, Costco has benefited from shoppers seeking any possible escape from the impact of inflation on their necessities. Even with inflationary pressures apparently subsiding, Costco still remains a favored choice among shoppers. With good tidings for the holiday season, the retail stock has earned a place in many investors' hearts -- and could make a good choice for those who like cash gifts from time to time.
Should you invest $1,000 in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. 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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Costco Wholesale (NASDAQ: COST) has been a stellar performer for decades, and it just made yet another move to show why the warehouse retailer's stock could be an investor's best friend. The retailer reported fiscal first-quarter financial results for the period ended Nov. 26 that showed the strength of the consumer economy. The gain in Costco's stock price was actually a bit higher than that, even though the cash payment will reduce the value of assets held by the company.
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However, the warehouse retailer has periodically made supplemental special dividend payments to its shareholders as well. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Dan Caplinger has no position in any of the stocks mentioned.
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Costco stays strong Shares of Costco Wholesale were up between 2% and 3% early Friday morning. A big reward for Costco shareholders Perhaps the best news for Costco investors, however, came from the warehouse retailer's board of directors. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them.
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Net sales at Costco were up 6.1% year over year, coming in at $56.72 billion. However, the warehouse retailer has periodically made supplemental special dividend payments to its shareholders as well. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them.
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f6e30c26-eebb-4c43-ae35-d74ca4b44287
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713120.0
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2023-12-12 00:00:00 UTC
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Wall Street Analysts Think C4 Therapeutics, Inc. (CCCC) Could Surge 222.95%: Read This Before Placing a Bet
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DCOMP
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https://www.nasdaq.com/articles/wall-street-analysts-think-c4-therapeutics-inc.-cccc-could-surge-222.95%3A-read-this-before
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nan
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nan
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Shares of C4 Therapeutics, Inc. (CCCC) have gained 175.3% over the past four weeks to close the last trading session at $5.01, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $16.18 indicates a potential upside of 223%.
The average comprises 11 short-term price targets ranging from a low of $1 to a high of $84, with a standard deviation of $23.25. While the lowest estimate indicates a decline of 80% from the current price level, the most optimistic estimate points to a 1576.7% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in CCCC. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You May Not Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why CCCC Could Witness a Solid Upside
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 0.7%, as one estimate has moved higher compared to no negative revision.
Moreover, CCCC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much CCCC could gain, the direction of price movement it implies does appear to be a good guide.
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
C4 Therapeutics, Inc. (CCCC) : 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 C4 Therapeutics, Inc. (CCCC) have gained 175.3% over the past four weeks to close the last trading session at $5.01, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
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That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. That's because 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 >>>> Therefore, while the consensus price target may not be a reliable indicator of how much CCCC could gain, the direction of price movement it implies does appear to be a good guide.
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Here's What You May Not Know About Analysts' Price Targets According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much CCCC could gain, the direction of price movement it implies does appear to be a good guide.
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Going by the price targets, the mean estimate of $16.18 indicates a potential upside of 223%. However, an impressive consensus price target is not the only factor that indicates a potential upside in CCCC. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much CCCC could gain, the direction of price movement it implies does appear to be a good guide.
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839eed7c-3888-4df0-8ed4-115dbfe71f13
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713121.0
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2023-12-12 00:00:00 UTC
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Should You Buy ICICI Bank Limited (IBN) After Golden Cross?
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DCOMP
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https://www.nasdaq.com/articles/should-you-buy-icici-bank-limited-ibn-after-golden-cross
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nan
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nan
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After reaching an important support level, ICICI Bank Limited (IBN) could be a good stock pick from a technical perspective. IBN recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
IBN has rallied 10.9% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates IBN could be poised for a breakout.
Looking at IBN's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 3 changes higher compared to none lower over the past 60 days, and the Zacks 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 IBN for more gains in the near future.
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
ICICI Bank Limited (IBN) : 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, ICICI Bank Limited (IBN) could be a good stock pick from a technical perspective. Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts. With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on IBN for more gains in the near future.
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IBN recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts. Click to get this free report ICICI Bank Limited (IBN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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IBN recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal.
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For the current quarter, there have been 3 changes higher compared to none lower over the past 60 days, and the Zacks 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 IBN for more gains in the near future. 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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4fb0429a-84e8-40a7-a18d-34aa074beda1
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713122.0
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2023-12-12 00:00:00 UTC
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Affiliated Managers (AMG) Soars 6.6%: Is Further Upside Left in the Stock?
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DCOMP
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https://www.nasdaq.com/articles/affiliated-managers-amg-soars-6.6%3A-is-further-upside-left-in-the-stock
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nan
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nan
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Affiliated Managers Group (AMG) shares soared 6.6% in the last trading session to close at $153.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.7% gain over the past four weeks.
After 11 interest rate hikes, the Fed's decision to pause rate hikes for the third month drove bullish sentiments across markets amid the optimism of easing inflation pressures. With this, the interest rates remain at a 22-year high of 5.25-5.5%. Further, the central bank indicated three interest rate cuts by 2024-end. These developments turned investor sentiment bullish on finance stocks, as high funding costs faced by the industry players are expected to decline in the next year, supporting margins. Hence, the AMG stock gained.
This asset manager is expected to post quarterly earnings of $5.62 per share in its upcoming report, which represents a year-over-year change of -22.8%. Revenues are expected to be $539.24 million, down 0.1% 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 Affiliated Managers, the consensus EPS estimate for the quarter has been revised 0.9% 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 AMG 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 >>>>
Affiliated Managers belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Capital Southwest (CSWC), closed the last trading session 1.3% lower at $23.38. Over the past month, CSWC has returned 7.4%.
Capital Southwest's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.67. Compared to the company's year-ago EPS, this represents a change of +8.1%. Capital Southwest currently boasts 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
Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
Capital Southwest Corporation (CSWC) : 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 sentiment bullish on finance stocks, as high funding costs faced by the industry players are expected to decline in the next year, supporting margins. This asset manager is expected to post quarterly earnings of $5.62 per share in its upcoming report, which represents a year-over-year change of -22.8%. 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 >>>> Affiliated Managers belongs to the Zacks Financial - Investment Management industry. Capital Southwest's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.67. Click to get this free report Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report Capital Southwest Corporation (CSWC) : 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 >>>> Affiliated Managers belongs to the Zacks Financial - Investment Management industry. Click to get this free report Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report Capital Southwest Corporation (CSWC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This asset manager is expected to post quarterly earnings of $5.62 per share in its upcoming report, which represents a year-over-year change of -22.8%. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Affiliated Managers belongs to the Zacks Financial - Investment Management industry. Compared to the company's year-ago EPS, this represents a change of +8.1%.
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478f0ea3-473f-4f0f-a934-f3e9c13b8b41
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713123.0
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2023-12-12 00:00:00 UTC
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Ford Motor Company (F) Surges 7.5%: Is This an Indication of Further Gains?
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DCOMP
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https://www.nasdaq.com/articles/ford-motor-company-f-surges-7.5%3A-is-this-an-indication-of-further-gains
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nan
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nan
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Ford Motor Company (F) shares soared 7.5% in the last trading session to close at $12.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.4% gain over the past four weeks.
Shares of the US legacy automaker jumped yesterday for the seventh consecutive trading session. While Ford’s fourth-quarter results are likely to get impacted due to UAW strike, investors are seemingly optimistic of the company’s long-term prospects thanks to robust BEV lineup, superior liquidity position and ambitious EV targets.
This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -74.5%. Revenues are expected to be $37.23 billion, down 10.9% 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 Ford Motor Company, the consensus EPS estimate for the quarter has been revised 7.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on F 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 >>>>
Ford Motor Company is part of the Zacks Automotive - Domestic industry. General Motors Company (GM), another stock in the same industry, closed the last trading session 6.7% higher at $36.25. GM has returned 20.8% in the past month.
For General Motors Company, the consensus EPS estimate for the upcoming report has changed +53.7% over the past month to $1.06. This represents a change of -50% from what the company reported a year ago. General Motors Company 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 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.
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Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Ford’s fourth-quarter results are likely to get impacted due to UAW strike, investors are seemingly optimistic of the company’s long-term prospects thanks to robust BEV lineup, superior liquidity position and ambitious EV targets. For Ford Motor Company, the consensus EPS estimate for the quarter has been revised 7.1% lower 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 >>>> Ford Motor Company is part of the Zacks Automotive - Domestic industry. For General Motors Company, the consensus EPS estimate for the upcoming report has changed +53.7% over the past month to $1.06. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : 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 >>>> Ford Motor Company is part of the Zacks Automotive - Domestic industry. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ford Motor Company (F) shares soared 7.5% in the last trading session to close at $12.08. This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -74.5%. For General Motors Company, the consensus EPS estimate for the upcoming report has changed +53.7% over the past month to $1.06.
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dfe0bb8a-98ef-427f-aff6-fb1876fe1a45
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713124.0
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2023-12-12 00:00:00 UTC
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Burgers & Booze (You Want to Click, Don't You?)
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DCOMP
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https://www.nasdaq.com/articles/burgers-booze-you-want-to-click-dont-you
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nan
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss:
McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day.
The sauce Bill wishes would get more love at McDonald's.
Slowing growth in the spirit markets, and how it is affecting Brown-Forman and Diageo.
Motley Fool host Deidre Woollard talks with Slutty Vegan founder Pinky Cole about building a restaurant chain, leveraging brand partnerships, and investing in the future.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Should you invest $1,000 in McDonald's right now?
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This video was recorded on Dec. 06, 2023.
Dylan Lewis: Burgers might be getting better and even closer. Motley Fool Money starts now. I'm Dylan Lewis and I'm joined over the airways by Motley Fool Senior Analyst Bill Mann. Bill, thanks for joining me.
Bill Mann: Hey Dylan. Thanks for the invite. Hope you're doing great.
Dylan Lewis: I am and I have to be honest, Bill, I feel like today's show feels a bit like an instant classic. We have two stories and an interview. All of it is about food, probably one of our favorite things to talk about. So I am incredibly excited. I hope you're bringing the excitement too.
Bill Mann: The gluttony market is ready to be entertained.
Dylan Lewis: Why don't we start with McDonald's on the gluttony market [laughs]. They have their investor day this week and they just revealed some huge growth targets as part of their investor day presentations. Bill targeting 50,000 restaurant locations by 2027, which would be the fastest period of growth in the company's history, they currently have like 42,000 locations. My first question is, does Earth have enough room for 50,000 McDonald's locations?
Bill Mann: I just want to put this in context a little bit. In the United States, there are about 13,400 McDonald's. Obviously, not all of that growth is going to happen in the US, in fact, I would suspect that very little of it will be here. So when they're talking about an additional 8,000 McDonald's, think about all of the McDonald's all around the United States and they are building 60% of those in the next couple of years targeted by 2027. They're going to do so worldwide. It's been a tough year for some of the McDonald's markets, obviously they are now out of Russia, for example, which was a big market for them. They've deemphasized China to some degree. But I suspect the later in particular you're going to see a renewed emphasis. I don't know if this has been mentioned to you before, Dylan, but there are more than a billion people in China.
Dylan Lewis: There are quite a few. I would imagine that there are probably some McDonald's locations that could go there to serve some of those people.
Dylan Lewis: Yeah. They've got several hundred McDonald's throughout China now. But there is actually plenty of room for McDonald's to grow. One of the more interesting things about this investor day was the fact that they dropped this little nugget in. Seventeen of the McDonald's menu items are billion dollar brands in their own rights.
Dylan Lewis: It's incredible. I like that you drop nugget there I don't know if that was on purpose, but the nuggets are part of the one of those 17 brands. It's an interesting way to restate just how powerful the collective brand value of McDonald's is.
Bill Mann: I'm a little bit angry that hot mustard sauce isn't a billion dollar brand. Because I feel like that is the sole reason that I go into McDonald's just to get anything with the hot mustard sauce. But going across the board, they're talking about basically breaking down and building back up not only how people interact with McDonald's through mobile ordering, through delivery even, but also in how these items are made.
Bill Mann: Yeah, they have a couple of different initiatives that tie into some of this stuff. One of them is a Best Burger initiative. This is, I think in some ways kind of a Domino's style initiative where McDonald's is revisiting one of its most iconic brands, it's Burger Line, and saying, I think we need to improve this a little bit. From what I've read from The Wall Street Journal, New Brio spun, coming to this thing, they're going to be changing how they handle ingredients, also how patties are prepared. I look at this Bill and I say, with the way that the food market has moved and just what it costs to buy something at a McDonald's or Burger King, these are no longer budget options, and it makes sense to me that they need to revisit their offering because they are no longer competing and clearly cheaper than the other burgers out there. They're reaching parity with some of those more fast casual style burgers.
Bill Mann: We've reached burger parity now. It has been the case for a long time that McDonald's was not considered a discount or a low cost place in a bunch of the markets they are in. This again is where a lot of their growth is coming from. Now the Domino's thing that you're talking about is legendary marketing where they came out and they said, hey, guess what? Our pizza isn't very good, and you know what? We're going to make it better. This is not what McDonald's is doing. I think that they are perfectly happy, satisfied with the quality of their products. But as you mentioned, as they get into higher price points, which is somewhat inevitable, they do recognize the fact that they do need to compete on quality in certain areas while keeping the McDonald's experience as similar and as familiar as it has been in the past.
Dylan Lewis: One other spot for growth that I do want to check in on with this investor day and some of the things that they've talked about is we see location growth as a major headline here. But you zoom in and the digital element and the loyalty element of their business is increasingly coming into focus. One of the other big headlines was them really wanting to expand the use of their loyalty programs and the impact and the spend that they see with their loyalty programs, Bill that to me it seems exactly like where the food industry is going and we're just going to see more and more of this from the chains.
Bill Mann: I think there's no accident at all that the only external quote that they put in their big press release came from Sundar Pichai, who's the CEO of [Alphabet's] Google. AI is going to be a very big thing for McDonald's as it is for Domino's now. You can giggle a little bit at the thought of a burger in the metaverse or your artificially intelligent, this is how the micro chip is going to get delivered into your system. They also want to expand their loyalty program by as many as 250 million active users. In the way that they're doing it, being much smarter in how they reward and attract the people they consider to be their best and most valuable customers.
Dylan Lewis: That's proven to be an incredibly valuable relationship for people to have. I think one of the things I'm interested to see as we see this grow is the system connection they have, where we see more kiosks in locations, how does that sync up with the app and how people know, and really what businesses are generally able to do in terms of pushing members to new products or higher margin products, as the relationship becomes more digital and they have a little bit more control over what people are paying attention to on the menu.
Bill Mann: Yeah, I'm just excited to walk into a McDonald's someday and have hot mustard sauce just handed to me the moment I come in regardless of whatever else I order.
Dylan Lewis: You know, Bill, if you keep mentioning it on the podcast, it's basically free advertising. It may become the billion dollar brand that you want it to be. It's going to take a while, but I think if you're consistently plugging it on the show, you might help it get its way there.
Bill Mann: Honestly speaking, my smartphone is right here next to me and I'm sure it's going, oh yeah, hot mustard sauce. You've mentioned that quite a lot. I guess this is what we're going to be delivering your direction. So yes, our AI overlords are moving into the McDonald's space as well.
Dylan Lewis: We have McDonald's projecting some incredible growth, a slightly different story. When we take a look over at the whiskey market. Jack Daniels's owner, Brown Foreman, disclosed that whiskey sales were down 2% for the first half of its fiscal year, which sent shares down 10% today, Bill, we're also seeing shares of Diagio down. It seems like generally there's a little bit of softness in the spirit markets.
Bill Mann: Yeah, so both of those companies, and those are two of the largest publicly traded spirits makers in the world. Brown Foreman is the baker of among other things, Jack Daniels is probably its most important brand. Especially in the higher end of the whiskey market, we've seen a fair amount of what people have considered to be a bubble mentality in the really high end among the collectors. The prices for whiskies have gone through the roof. It is interesting to me the fact that it is down about 1% year over year, and the stock is down about 20, which should tell you 20% over the year. It's down nine-ish percent today at Brown Foreman. It should tell you a little bit the amount of enthusiasm that was being built into the market specifically as it comes to the whiskey market, but it really goes across the board for spirits.
Dylan Lewis: Yeah, I think all told Brown Foreman revised its guidance down from 5%-7% year over year, organic sales to like 3-5% so it's still projecting growth for the year but expecting some softness. This was for me, Bill an interesting opportunity to take a step back and look at the alcohol market in the United States. You look at where spirits were in 20 years ago, early 2000, about 28% market share. It has now reached parity with beer. They both own about 40 plus percent of the overall alcohol market and Brown Foreman has been a huge beneficiary of that. Diagio has also been a huge beneficiary of that. Do you feel like we're just having to reach a point where we're moderating our growth expectations a little bit?
Bill Mann: When you put it that way, it's wild to think about because it's not like you would look at the US beer market and say that they've been resting on their laurels. There has been a huge growth in craft brewing. Maybe even just the top-line major brewers have, they're getting attacked on all end. Included in the spirits market is an area of the market called ''Ready To Drink'' and you go to grocery shelves now and you see the Moscow Mules and things that are already in cans. This was really never done before. It was a big market for them and I think it came on the tail end of the Hard Seltzer movement. If alcoholic water isn't enough for you, have we got an opportunity for you? Yes. They are looking for ways for spirits to be put out in a lower alcohol format and consumers have responded in a big, big way.
Dylan Lewis: It is interesting you bring that up because it's a category, to me, that has seen innovation in an incredible way over the last 5-10 years. It has probably never been better to be a drinker in the United States, especially if you're not someone who traditionally has liked beer or liked wine. You go to a supermarket now and you have a lot of those ready-to-drink type options that you would have had to have made at home five or 10 years ago. It seems like we are almost waiting for that next catalyst or waiting for that next trend in the space.
Bill Mann: Yeah, maybe I love how you put it that this is like a golden age for drinkers. [laughs] If you love drinking, it's never been better. Yeah. As far as I'm concerned, I prefer my alcohol to be weapons-grade so none of this is particularly of great interest to me. But you take Jack Daniels as a platform and Jack Daniels as a brand is worth billions of dollars, so the fact that Brown Foreman has moved it into different formats, lower alcohol, fruitier drinks, carbonated drinks, I don't think that we've seen the end of it. I think we are just at the beginning of those levels of innovation. Again, as far as I'm concerned though, I'm an old fuddy-duddy, give me whiskey in a glass with an ice cube maybe.
Dylan Lewis: Bill Mann is a man of weapons-grade spirits and hot condiments. Bill, I appreciate you being on the show today.
Bill Mann: Thanks, Dylan.
Dylan Lewis: Listeners we're not quite done talking burgers and fries. Up next, Deidre Woollard talks with Pinky Cole, founder of Slutty Vegan, to discuss what it takes to build a marketing company masquerading as a restaurant chain.
Deidre Woollard: I want to talk a little bit to start off with about your brand in general because a lot of people think they have the idea for the next food trend and we've seen so many food trends come and go, highly competitive space. How did it start for you and how did you find the angle that worked for you?
Pinky Cole: I was a television producer and a casting director at the time where I came up with Slutty Vegan and mind you, I had a restaurant before that cooled on fire and I lost everything. This was my redemption period. I'm thinking that, OK, I got my dream job working on TV. I'm doing well. I don't need to do anything else, but the universe has something else aligned for me and that was this crazy concept called Slutty Vegan that I came up with in my two-bedroom apartment. Not knowing that this concept would turn into a multi-million dollar brand, I was really just trying to, one, have a side hustle and two, show my friends that you could eat vegan and it could be cool. The next thing I know, I have this concept that is now becoming a household name that everybody wants to be a part of. It's been five years since I created the brand and I have done so much. We opened up 13 and counting locations, we want to bed in the airport. We've had tons of brand partnerships and the brand continues to grow. When I look back five years over my life and I'm like, I cannot believe that all of this has happened over burgers, pies, and fries. I'm excited about the growth in my business and it just really just opened up so many verticals for the other things that I'm doing.
Deidre Woollard: You've got this bold brand and then you're putting your brand in Target so how did that happen and how has the response been so far?
Pinky Cole: Target is a very interesting story. I was at a festival called Afro Punk and it was an Executive Target. And somebody was like, that's an executive target, you need to go talk to them. Me being who I'm, one thing about me is I'm always going to shoot my shot. I walked up to him and I introduced myself to him. I'm like, do you know who I am? I own Slutty Vegan. I want to talk to you and he was looking at me like, this girl is crazy. That conversation was just one so very organic and fluid and authentic. There was so much essence that was born out of that conversation. As a result of that, he was just like, I like you, I like your spirit. Beyond the business and all the things that you do, you have a really good spirit, and it just meshes with who I am and what I represent. I want to help you. From that conversation, we've been able to put our bacon in stores, our seasoning in stores, our slutty vegan dips in stores, and that was about almost two years ago and the relationship has been so beautiful. One, because Target obviously is for the community, and they've shown that time and time again, which I can appreciate. Two, to go from being a mom-and-pop shop turn corporation to be able to have products in stores and my friends and family can walk past and say, damn, that's pinky stuff in stores is the best feeling in the world because I never in my life imagined to have products on shelves of stores that I shopped at as a little girl. Now to be one of those people who has products in stores, it's a dream come true. I'm just happy, and I'm thankful for Target, and it only gets better from here.
Deidre Woollard: I'm curious about the bacon. We were talking before the show, and I've had the dips, but the bacon isn't available yet where I live. But I wanted to get your take too on the foam meat trend in general because I know you've used Beyond Meat and Impossible in some of your products. Beyond Meat publicly traded company has been one of those things where people are asking if the market is big enough for what they were planning. What do you think about the foam meat market in general?
Pinky Cole: I'm going to be totally honest because that's the only way that I could be. I believe that the market is very saturated right now. Once upon a time, when people wanted vegan food, you couldn't just go to every single restaurant and get a vegan option. Then I believe that I contributed to the craze. The trinities alongside Beyond Meat and Impossible Meat of making it super popular that all big businesses wanted to tap into the market. Everybody wants to be a part of a hot market. What happens when everybody gets a part of a hot market? It becomes saturated. When it's saturated, you don't have to look far and wide to go get it. You don't have to pay $17 for a vegan burger anymore. You can pay $3 and go to the grocery store and get that. What I think is happening now is because the market is so saturated, a lot of businesses are unable to sustain themselves who strictly focus on vegan food. The competitive advantage that I have is I've already built a true solid concept that's proven and people love it. If I don't sell another burger right now, Lady Vegan is still a brand. I could still sell other products, but a lot of other businesses can't say that. Is it difficult? Very well, it's very difficult. I still use Impossible and I still use Beyond, and I really respect and love them and love their partnership. But I also think that collectively as a market, we have to figure out how to continue to get innovative so that this wave doesn't die, so it can continue to sustain itself so that we can all be successful. But I think we'll get through it.
Deidre Woollard: Well, some of the push back, too, has been that some of the vegan options aren't healthy. There's the two camps of vegan is the healthiest option and while vegan, there's a whole spectrum within vegan. Where do you sit in that?
Pinky Cole: I think there's a lot of propaganda around veganism in the meat industry. Obviously, veganism has taken over per say when it comes to people eating meat and not eating meat. Now there's a level of competition, so obviously there's going to be some propaganda associated with it. I believe that everything is in moderation. My concept is to meet people where they are. Am I saying that you got to eat a salad every day? Absolutely not. But what I'm saying is you come in slutty vegan, and you can get a familiar option, something that you're already used to, and then it might change your mindset on eating vegan when you go to another restaurant. That's really my take on it. I believe, like I said, everything has to be in moderation. Whether you are eating chicken, beef, pork, or vegan burger, everything is in moderation. There are healthier options that is in the vegan community obviously. A lot of people push burgers and fries. But if you look a little bit deeper, you'll realize that there are a lot of healthy vegan options, and you just got to be mindful of what you eat.
Deidre Woollard: You've also taken your brand, and you've ventured into all these diverse collaborations with Steve Madden for a Pea-certified sneaker. You've got bad collection lip bar with a vegan lipstick. What have you learned from these successful collaborations, and what are you looking for in your next collaboration?
Pinky Cole: What I learned in collaboration is that is the surest way to grow your business by way of brand partnerships. You want to get exposure, you attach yourself to a brand that's bigger than yours. For anybody that's watching and listening to this, that is part of the surest way to get a different level of exposure if you're trying to get a new audience. If you want more people to hear about your brand, you got to connect with the right people. It's just like relationships, personal relationships, professional relationships. You got to align yourself with the people who are already doing it, who are already successful so that you can continue to grow your brand and grow your business. That's probably one of the biggest things that I've learned. We got a lot of really dope brand partnerships that are coming up in 2024. I'm really excited about them because a lot of the people that I like to partner with wouldn't typically brand themselves with a vegan restaurant. But I like to say that slightly vegan is more than just a restaurant. We are a marketing company that happens to sell burgers, fries, and pies. This is a lifestyle movement. When you think about Pepsi, when you think about Coca-Cola, this is a movement that's not just going to stop with food. It is a movement that makes people feel good, it makes people feel like they can conquer the world. That is how I leave with it when we do brand partnerships. I feel good about what we have going on, coming up in Q1 and Q2, even in Q3 with the brand partnerships that we've already been planning with.
Deidre Woollard: As a person who's investing in your future, investing in your family's future, how has the way that you've invested, both in your business and in your personal life changed?
Pinky Cole: That you're a great interviewer, by the way. Nobody ever asked me these kind of questions. My personal life, I'll start there. I put my kids in Montessori School. That might not seem like a big fit. But I did that because I wanted to make sure that I'm fully preparing my children for the world in a way that I didn't get that level of preparation. I'm utilizing my resources to give them the push that they need so that they could be the very best. My daughter is about to have vocal lessons, she's two years old. I get to do all the things that I didn't get to have done by way of lack of resources when I was growing up. I make sure that my environment is happy and healthy. I'm fortunate enough to live in a country club. I'm fortunate enough to have trust funds and plans for my children so that when they turn 18, whether they decide to go to college or not, they are set up for the future. Personally, it's important to make sure that my kids have what they need.
Because at the end of the day, they are now my number one priority. Making sure that my kids are good. Professionally, same thing. Like real estate. Making sure that the business that I create yields a return that I can reinvest in the business and I also can reinvest in the community. That's really important to me, and I believe that every entrepreneur should have a philanthropic arm in that business. Because it's not always about just reinvesting money in the business and that's it. You got to reinvest into the people that are investing into you, and that's how you continue to grow successful and sustainable businesses. It feels good to be able to do that on both sides, and it only continues to get better as I evolve. I've been a legitimate entrepreneur for the last five years, and it is hard, absolutely, but is it worth it? Totally. I wouldn't change a thing and the more that I can be around and surround myself with the people who are already successful, I know that my thought process will evolve and even get better more than it is right now.
Dylan Lewis: As always, people on the program may own stocks mentioned and the Motley Fool may have formal recommendations for or against. It's not buy or sell anything based solely on what you hear. I'm Dylan Lewis. Thanks for listening. We'll be back tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bill Mann has positions in Alphabet and Domino's Pizza. Deidre Woollard has positions in Alphabet. Dylan Lewis has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Beyond Meat, Domino's Pizza, and Target. The Motley Fool recommends Diageo Plc and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day. Motley Fool host Deidre Woollard talks with Slutty Vegan founder Pinky Cole about building a restaurant chain, leveraging brand partnerships, and investing in the future. Up next, Deidre Woollard talks with Pinky Cole, founder of Slutty Vegan, to discuss what it takes to build a marketing company masquerading as a restaurant chain.
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day. Motley Fool host Deidre Woollard talks with Slutty Vegan founder Pinky Cole about building a restaurant chain, leveraging brand partnerships, and investing in the future. But you take Jack Daniels as a platform and Jack Daniels as a brand is worth billions of dollars, so the fact that Brown Foreman has moved it into different formats, lower alcohol, fruitier drinks, carbonated drinks, I don't think that we've seen the end of it.
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day. Motley Fool host Deidre Woollard talks with Slutty Vegan founder Pinky Cole about building a restaurant chain, leveraging brand partnerships, and investing in the future. Before you buy stock in McDonald's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and McDonald's wasn't one of them.
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day. Dylan Lewis: Yeah, I think all told Brown Foreman revised its guidance down from 5%-7% year over year, organic sales to like 3-5% so it's still projecting growth for the year but expecting some softness. Dylan Lewis: As always, people on the program may own stocks mentioned and the Motley Fool may have formal recommendations for or against.
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766c8c78-d4c9-46ac-bd45-8a183c51307b
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713125.0
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2023-12-12 00:00:00 UTC
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Is Colony Bankcorp (CBAN) a Great Value Stock Right Now?
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DCOMP
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https://www.nasdaq.com/articles/is-colony-bankcorp-cban-a-great-value-stock-right-now
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nan
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Colony Bankcorp (CBAN). CBAN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.64. This compares to its industry's average Forward P/E of 10.55. Over the past year, CBAN's Forward P/E has been as high as 9.95 and as low as 6.81, with a median of 7.80.
Another valuation metric that we should highlight is CBAN's P/B ratio of 0.90. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.88. Over the past year, CBAN's P/B has been as high as 1.06 and as low as 0.64, with a median of 0.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CBAN has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.94.
Finally, we should also recognize that CBAN has a P/CF ratio of 6.99. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.52. Over the past 52 weeks, CBAN's P/CF has been as high as 7.88 and as low as 5.12, with a median of 5.92.
Another great Banks - Southeast stock you could consider is Hilltop Holdings (HTH), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Hilltop Holdings has a P/B ratio of 1.03 while its industry's price-to-book ratio sits at 1.88. For HTH, this valuation metric has been as high as 1.09, as low as 0.84, with a median of 0.94 over the past year.
These are just a handful of the figures considered in Colony Bankcorp and Hilltop Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBAN and HTH is an impressive value stock 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 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
Colony Bankcorp, Inc. (CBAN) : Free Stock Analysis Report
Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. 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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Another great Banks - Southeast stock you could consider is Hilltop Holdings (HTH), which is a # 1 (Strong Buy) stock with a Value Score of A. Additionally, Hilltop Holdings has a P/B ratio of 1.03 while its industry's price-to-book ratio sits at 1.88. These are just a handful of the figures considered in Colony Bankcorp and Hilltop Holdings's great Value grade. Click to get this free report Colony Bankcorp, Inc. (CBAN) : Free Stock Analysis Report Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. Another great Banks - Southeast stock you could consider is Hilltop Holdings (HTH), which is a # 1 (Strong Buy) stock with a Value Score of A. Additionally, Hilltop Holdings has a P/B ratio of 1.03 while its industry's price-to-book ratio sits at 1.88. Click to get this free report Colony Bankcorp, Inc. (CBAN) : Free Stock Analysis Report Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. Value investors also use the P/S ratio. CBAN has a P/S ratio of 1.44.
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2023-12-12 00:00:00 UTC
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METALS-Copper slides on firmer dollar ahead of Fed decision
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DCOMP
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https://www.nasdaq.com/articles/metals-copper-slides-on-firmer-dollar-ahead-of-fed-decision
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Recasts, updates prices as of 0402 GMT
BEIJING, Dec 13 (Reuters) - Copper prices slid on Wednesday as the dollar gained ahead of an interest rate decision by the U.S. Federal Reserve due later in the day.
Three-month copper on the London Metal Exchange CMCU3 slid 0.4% to $8,321 per metric ton by 0402 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 lost 0.2% to 67,850 yuan ($9,446.57) per ton.
The dollar index =USD climbed following an unexpected rise in U.S. consumer prices in November that added to expectation the Fed will not pivot to rate cuts early next year.
A stronger dollar typically weighs down metal prices as it makes it more expensive to buy the greenback-priced commodity.
Also weighing on the metal market was demand outlook from top consumer China.
A readout from an agenda-setting meeting attended by top Chinese officials early this week failed to propose any large fiscal stimulus measures and lacked details, disappointing investors, ANZ analysts said in a note.
Copper is widely used in power, construction and transportation sectors and its consumption has been hit by property woes in the world's top metal consumer.
Nevertheless, Rio Tinto's RIO.AX, RIO.L chairman on Tuesday expressed optimism about China's economic growth potential and said the global miner would stick to its long-term strategy there, according to state media.
LME aluminium CMAL3 slipped 0.1% to $2,118 a ton, tin CMSN3 dipped 0.2% to $24,540, zinc CMZN3 shed 0.5% to $2,418, nickel CMNI3 fell 1.3% to $16,300, while lead CMPB3 nudged up 0.2% to $2,041.
SHFE aluminium SAFcv1 eased 0.2% to 18,365 yuan a ton, zinc SZNcv1 eased 0.4% to 20,645 yuan, lead SPBcv1 declined 0.4% to 15,510 yuan, nickel SNIcv1 lost 1.7% to 129,110 yuan, while tin SSNcv1 was little changed at 206,280 yuan.
For the top stories in metals and other news, click
TOP/MTL or MET/L
($1 = 7.1825 Chinese yuan)
(Reporting by Siyi Liu and Dominique Patton; Editing by Janane Venkatraman and Subhranshu Sahu )
((Siyi.Liu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The dollar index =USD climbed following an unexpected rise in U.S. consumer prices in November that added to expectation the Fed will not pivot to rate cuts early next year. A readout from an agenda-setting meeting attended by top Chinese officials early this week failed to propose any large fiscal stimulus measures and lacked details, disappointing investors, ANZ analysts said in a note. Nevertheless, Rio Tinto's RIO.AX, RIO.L chairman on Tuesday expressed optimism about China's economic growth potential and said the global miner would stick to its long-term strategy there, according to state media.
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Also weighing on the metal market was demand outlook from top consumer China. Copper is widely used in power, construction and transportation sectors and its consumption has been hit by property woes in the world's top metal consumer. SHFE aluminium SAFcv1 eased 0.2% to 18,365 yuan a ton, zinc SZNcv1 eased 0.4% to 20,645 yuan, lead SPBcv1 declined 0.4% to 15,510 yuan, nickel SNIcv1 lost 1.7% to 129,110 yuan, while tin SSNcv1 was little changed at 206,280 yuan.
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Three-month copper on the London Metal Exchange CMCU3 slid 0.4% to $8,321 per metric ton by 0402 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 lost 0.2% to 67,850 yuan ($9,446.57) per ton. SHFE aluminium SAFcv1 eased 0.2% to 18,365 yuan a ton, zinc SZNcv1 eased 0.4% to 20,645 yuan, lead SPBcv1 declined 0.4% to 15,510 yuan, nickel SNIcv1 lost 1.7% to 129,110 yuan, while tin SSNcv1 was little changed at 206,280 yuan. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.1825 Chinese yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Janane Venkatraman and Subhranshu Sahu ) ((Siyi.Liu@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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Recasts, updates prices as of 0402 GMT BEIJING, Dec 13 (Reuters) - Copper prices slid on Wednesday as the dollar gained ahead of an interest rate decision by the U.S. Federal Reserve due later in the day. Three-month copper on the London Metal Exchange CMCU3 slid 0.4% to $8,321 per metric ton by 0402 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 lost 0.2% to 67,850 yuan ($9,446.57) per ton. SHFE aluminium SAFcv1 eased 0.2% to 18,365 yuan a ton, zinc SZNcv1 eased 0.4% to 20,645 yuan, lead SPBcv1 declined 0.4% to 15,510 yuan, nickel SNIcv1 lost 1.7% to 129,110 yuan, while tin SSNcv1 was little changed at 206,280 yuan.
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713127.0
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2023-12-12 00:00:00 UTC
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7 Nasdaq Stocks Down 59% Set to Soar at Least 141%
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https://www.nasdaq.com/articles/7-nasdaq-stocks-down-59-set-to-soar-at-least-141
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Wall Street loves a good comeback story. It’s why analysts often put elevated price targets on severely beaten-down stocks. All on the belief the stock may be ripe for a rebound after being unfairly sold off. Still, you can’t help but wonder what some analysts are thinking with the lofty price targets they assign to some stocks. They seem all out of whack to reality. What follows are seven high-growth potential stocks according to Wall Street.
They are down at least 59% year-to-date but analysts say they can go as high as 908%! Let’s take a closer look and see whether the price targets are grounded in substance or just pie-in-the-sky wishful thinking with these high-potential growth stocks.
bluebird bio (BLUE)
Source: rafapress / Shutterstock
Biotech bluebird bio (NASDAQ:BLUE) looked like it was on the road to recovery. Having lost 70% of its value at one point, it clawed its way back up so it was only 43% below its 52-week high. But on Friday bluebird got rocked after the US Food & Drug Administration put the strictest label on its new sickle cell disease gene therapy the agency recently approved.
Drug approvals tend to cause stocks to rise, but bluebird’s Lyfgenia got a boxed warning because blood cancers have occurred in patients taking the treatment. That could severely limit the revenue bluebird bio might generate from the drug. The biotech’s stock cratered, plunging 40.5% on the news. Now it sits 59% below where it started the year.
Analysts now have a $6.88 per share target price on the bluebird bio stock. Before the announcement, that implied a reasonable 43% upside present in its shares. Now the stock would need to climb 141% to achieve that level. That is an unlikely outcome given the new warning label on its gene therapy. Wall Street analysts will surely be revisiting their estimates and revising them lower.
DISH Network (DISH)
Source: Jonathan Weiss / Shutterstock.com
Satellite TV operator, and another one of the top high-growth potential stocks, DISH Network (NASDAQ:DISH) was also in the doghouse for most of the year but saw its stock crash and burn last month after it posted “astonishingly bad” third-quarter results in the words of MoffettNathanson analysts. DISH served up huge EBITDA losses in wireless and suffered accelerated cord-cutting in pay TV. The debacle led to CEO Erik Carlson resigning.
Shares hit a low of $3.21 per share which implied they would have to more than triple to reach Wall $10.27 per share price target. That seemed improbable as the wheels were coming off the satellite TV stock after it saddled itself with $25 billion in debt which closed off access to capital markets.
The one glimmer of hope DISH had was its pending merger with EchoStar (NASDAQ:SATS), a satellite communications provider flush with cash and comparatively little debt. A successful deal would give DISH the ability to expand its 5G network rollout while financing new mobile and broadband options.
Fortunately, the FCC signed off on the merger last Thursday. Because DISH chairman Charlie Ergen is also the chair of EchoStar, the regulatory body said there was “no substantial change of ownership or control.” The deal is on track to close by the end of the year. Whether DISH can still maneuver itself into a viable operation remains to be seen but the target price might not be so far out of reach for DISH Network stock as it once was.
Solaredge Technologies (SEDG)
Source: rafapress / Shutterstock.com
Residential solar inverter maker, and another one of the top high-growth potential stocks, Solaredge Technologies (NASDAQ:SEDG) is suffering from industry headwinds. Already laboring under rising interest rates and inflation that make financing a new residential solar system more expensive, new net metering rules may make installing a system even less attractive.
Net metering allows utility customers to sell excess electricity they generate back to the grid. The credits are received to offset the energy costs used. So if you sent as much electricity back to the grid as you used, your bill would be $0. There are programs currently available in 38 states and Washington, D.C.
Now states are changing the rules. They want to roll back the compensation offered because it is unsustainable. California slashed its net metering rates in April, Arizona is revisiting its policies, and Hawaii canceled its program altogether in 2015. It’s going to make solar a less attractive option and make Solaredge’s job of selling inverters harder. An inverter converts a solar panel’s direct current (DC) into alternating current (AC) that can be used in a house. Solaredge is the second-largest inverter manufacturer behind Enphase Energy (NASDAQ:ENPH).
Wall Street still has high hopes for Solaredge Technologies, as another one of the top high-growth potential stocks. Analysts have a $345 price target on the stock indicating they see the inverter maker rising 339% from its current $79 share price. Solar power is still attractive to many. So even if Solaredge doesn’t run as far as analysts suggest, it can still appreciate greatly in value.
SunPower (SPWR)
Source: IgorGolovniov / Shutterstock.com
SunPower (NASDAQ:SPWR) is another solar stock dented by macroeconomic events beyond its control. Shares are down 73% in 2023. Wall Street has a similarly lofty price target for the solar panel maker as it does for the inverter company. Analysts peg Sunpower’s one-year price target at $21.60 per share, a 354% increase from today’s price.
An argument can be made for this bright outlook for the industry. Interest rates seem to have peaked and some analysts are looking for lower rates in 2024. That could spur more system installations. Pricing is more affordable, too. Morgan Stanley (NYSE:MS) says, “Prices for solar panels and components have declined meaningfully since peak levels in the summer of 2023.”
As hopeful as Wall Street is, it may take a bit longer for solar stocks like SunPower to go parabolic. The future is not quite as bright as it was before the Federal Reserve started its maniacal interest rate increases. Still, Sunpower’s stock is cheap enough that investors may want to try and ride this one higher. It’s another one of the high-growth potential stocks to consider.
Plug Power (PLUG)
Source: T. Schneider / Shutterstock.com
Another alternative energy stock is Plug Power (NASDAQ:PLUG), which is involved with hydrogen fuel cells. Shares are down 68% this year after trying to rally this past summer. Analysts think PLUG stock could double, triple, or head to the stratosphere with a 620% gain.
For a company with customers as diverse as Amazon (NASDAQ:AMZN), Home Depot (NYSE:HD), and Walmart (NYSE:WMT), it’s a wonder Plug Power rarely makes good on its promise. The relationships continue to expand, but the stock goes nowhere, or worse falls.
That could be because it continues to burn through significant amounts of cash. It also reported just 5% revenue growth in the third quarter while gross margins turned sharply negative. It issued a going concern notice as well. “The company is projecting that its existing cash and available for sale and equity securities will not be sufficient to fund its operations through the next twelve months,” it wrote. Plug said it was pursuing several financing solutions, including tapping a loan program from the Energy Dept.
Money troubles are not unfamiliar to Plug Power investors. The highest stock price targets are absurd. Even forecasting a double at this point seems out of the question. Investors would do well to steer clear of Plug Power.
NovoCure (NVCR)
Source: viewimage / Shutterstock
Medical device maker NovoCure (NASDAQ:NVCR) is traveling a long path lower too. The stock lost 83% of its value this year and there are still two weeks to go. Its novel cancer-fighting device, Optune, attaches to the patient’s head and emits electric fields to slow cancer cell division and spread. It’s called tumor-treating fields (TTFs) and has been approved for use in the U.S. and nine other markets worldwide. It recently launched in France.
Yet third-quarter revenue fell as it ran into reduced collections from denied or appealed claims in the U.S. The device maker is also undergoing a restructuring. It wants to more narrowly focus on the clinical trials of TRIDENT, KEYNOTE D58, and LUNAR-2. As is common in such cases, layoffs play a big role in cost savings. NovoCure is cutting 13% of its workforce.
Analysts remain upbeat nonetheless with price targets ranging from gains of 250% to as much as 777%. All of the options seem out of reach today. If any of NovoCure’s clinical trials using TTFs to treat non-small cell lung cancer or pancreatic cancer pan out next year it could certainly give it a lift. But there’s no guarantee in clinical trials so investors would be wise to tread lightly here.
Nikola (NKLA)
Source: Dennis Diatel / Shutterstock.com
When your stock moves into literal penny stock territory as Nikola (NASDAQ:NKLA) has done, it’s not hard to project fantastic gains. That’s why penny stocks are attractive to many investors. By controlling just a handful of shares you can make tremendous profits if the stock moves up just little. Too often, though, the stock just withers and dies.
That may be the fate of electric truck maker Nikola. The stock goes for $0.68 per share as of this writing, but analysts see the stock doubling, tripling, and even rising by nearly 1,000%! Don’t hold your breath.
Nikola shares are reeling from a variety of problems. It suffered a recall of all of its battery electric vehicles (BEV) due to fire hazards and now faces a cash crunch. It announced it was raising $100 million by issuing new shares along with another $200 million in convertible debt. The new stock will dilute existing shareholders immediately while the convertible debt could dilute them even more in the future if the bondholders convert the debt into shares.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post 7 Nasdaq Stocks Down 59% Set to Soar at Least 141% 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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But on Friday bluebird got rocked after the US Food & Drug Administration put the strictest label on its new sickle cell disease gene therapy the agency recently approved. Drug approvals tend to cause stocks to rise, but bluebird’s Lyfgenia got a boxed warning because blood cancers have occurred in patients taking the treatment. Because DISH chairman Charlie Ergen is also the chair of EchoStar, the regulatory body said there was “no substantial change of ownership or control.” The deal is on track to close by the end of the year.
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bluebird bio (BLUE) Source: rafapress / Shutterstock Biotech bluebird bio (NASDAQ:BLUE) looked like it was on the road to recovery. Solaredge Technologies (SEDG) Source: rafapress / Shutterstock.com Residential solar inverter maker, and another one of the top high-growth potential stocks, Solaredge Technologies (NASDAQ:SEDG) is suffering from industry headwinds. Plug Power (PLUG) Source: T. Schneider / Shutterstock.com Another alternative energy stock is Plug Power (NASDAQ:PLUG), which is involved with hydrogen fuel cells.
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DISH Network (DISH) Source: Jonathan Weiss / Shutterstock.com Satellite TV operator, and another one of the top high-growth potential stocks, DISH Network (NASDAQ:DISH) was also in the doghouse for most of the year but saw its stock crash and burn last month after it posted “astonishingly bad” third-quarter results in the words of MoffettNathanson analysts. Analysts have a $345 price target on the stock indicating they see the inverter maker rising 339% from its current $79 share price. The stock goes for $0.68 per share as of this writing, but analysts see the stock doubling, tripling, and even rising by nearly 1,000%!
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Analysts now have a $6.88 per share target price on the bluebird bio stock. Shares hit a low of $3.21 per share which implied they would have to more than triple to reach Wall $10.27 per share price target. Wall Street has a similarly lofty price target for the solar panel maker as it does for the inverter company.
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713128.0
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2023-12-12 00:00:00 UTC
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Teradyne (TER) Soars 7.4%: Is Further Upside Left in the Stock?
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https://www.nasdaq.com/articles/teradyne-ter-soars-7.4%3A-is-further-upside-left-in-the-stock
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Teradyne TER shares rallied 7.4% in the last trading session to close at $105.39. 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 7.4% gain over the past four weeks.
Teradyne is benefiting from improving semiconductor test shipment. Also, solid demand for DRR5 and HBM memory devices for data center applications remains a tailwind.
This maker of wireless products, data storage and equipment to test semiconductors is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -22.8%. Revenues are expected to be $675.13 million, down 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 Teradyne, 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 TER 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 >>>>
Teradyne is a member of the Zacks Electronics - Testing Equipment industry. One other stock in the same industry, Fortive FTV, finished the last trading session 2.6% higher at $73.07. FTV has returned 5.6% over the past month.
Fortive's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.93. Compared to the company's year-ago EPS, this represents a change of +5.7%. Fortive 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
Teradyne, Inc. (TER) : Free Stock Analysis Report
Fortive Corporation (FTV) : 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 can be attributable to notable volume with a higher number of shares being traded than in a typical session. This maker of wireless products, data storage and equipment to test semiconductors is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -22.8%. 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 maker of wireless products, data storage and equipment to test semiconductors is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -22.8%. Fortive's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.93. Click to get this free report Teradyne, Inc. (TER) : Free Stock Analysis Report Fortive Corporation (FTV) : 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 >>>> Teradyne is a member of the Zacks Electronics - Testing Equipment industry. Click to get this free report Teradyne, Inc. (TER) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One other stock in the same industry, Fortive FTV, finished the last trading session 2.6% higher at $73.07. Fortive's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.93. Compared to the company's year-ago EPS, this represents a change of +5.7%.
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2023-12-12 00:00:00 UTC
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Why Integer (ITGR) is a Top Value Stock for the Long-Term
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https://www.nasdaq.com/articles/why-integer-itgr-is-a-top-value-stock-for-the-long-term-0
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Integer (ITGR)
Plano, TX-based Integer Holdings Corporation manufactures and develops medical devices and components primarily for original equipment manufacturers (OEMs).
ITGR is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 21.09; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.27 to $4.60 per share. ITGR also boasts an average earnings surprise of 12%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ITGR should be on investors' short list.
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
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum. Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio. Click to get this free report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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What are the Zacks Style Scores? That's where the Style Scores come in. ITGR is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
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a12ab474-0980-4d24-8e52-0e77645a4850
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713130.0
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2023-12-12 00:00:00 UTC
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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
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DCOMP
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https://www.nasdaq.com/articles/are-you-a-value-investor-this-1-stock-could-be-the-perfect-pick-384
|
nan
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nan
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Juniper Networks (JNPR)
Based in Sunnyvale, CA, Juniper Networks, Inc. is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help to build network infrastructure used for services and applications based on single Internet protocol network worldwide. The company caters to the networking needs of enterprises and public sector organizations and service providers across the globe. Hence, the two primary markets for its networking products and services happen to be Enterprise and Service Provider. Juniper offers a broad range of routing, switching and security products. Routing includes products and services from the E, M, MX, PTX, T Series, and ACX router families. Switching primarily consists of products and services for EX Series and wireless local area network solutions as well as QFabric. Security includes High-End SRX services and vGW Virtual Gateways, High-End Firewall virtual private network (VPN) systems and appliances, branch SRX, branch firewall, and J-Series product families, secure socket layer VPN appliances, intrusion detection and prevention appliances, and wide area network optimization platforms.
JNPR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.87; value investors should take notice.
For fiscal 2023, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $2.30 per share. JNPR boasts an average earnings surprise of 6.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, JNPR should be on investors' short list.
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
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. #1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame.
|
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. Security includes High-End SRX services and vGW Virtual Gateways, High-End Firewall virtual private network (VPN) systems and appliances, branch SRX, branch firewall, and J-Series product families, secure socket layer VPN appliances, intrusion detection and prevention appliances, and wide area network optimization platforms.
|
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
|
What are the Zacks Style Scores? However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day. That's where the Style Scores come in.
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71862c80-eb7e-492e-b105-a89ca3c664b5
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713131.0
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2023-12-12 00:00:00 UTC
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Here's Why RPM International (RPM) is a Strong Value Stock
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DCOMP
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https://www.nasdaq.com/articles/heres-why-rpm-international-rpm-is-a-strong-value-stock
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nan
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nan
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: RPM International (RPM)
RPM International Inc., through its subsidiaries, manufacture and market high-performance coatings, sealants and specialty chemicals, primarily for maintenance and improvement applications.
RPM is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 22.43; value investors should take notice.
For fiscal 2024, one analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0 to $5 per share. RPM boasts an average earnings surprise of 8.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, RPM should be on investors' short list.
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
RPM International Inc. (RPM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. #1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame.
|
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks. Click to get this free report RPM International Inc. (RPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
|
What are the Zacks Style Scores? That's where the Style Scores come in. RPM is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
|
8c167d58-e754-4c09-b2a3-3d31f212b1fb
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713132.0
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2023-12-12 00:00:00 UTC
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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
|
DCOMP
|
https://www.nasdaq.com/articles/are-you-a-value-investor-this-1-stock-could-be-the-perfect-pick-383
|
nan
|
nan
|
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Genuine Parts (GPC)
Atlanta-based Genuine Parts distributes automotive and industrial replacement parts and materials. As of Dec 31, 2022, the company had a network of more than 10,600 locations across 17 countries and employed approximately 58,000 people worldwide. Currently, Genuine Parts operates through two segments: Automotive Parts and Industrial Parts.
GPC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 15.07; value investors should take notice.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.03 to $9.28 per share. GPC boasts an average earnings surprise of 5.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GPC should be on investors' short list.
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
Genuine Parts Company (GPC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. Click to get this free report Genuine Parts Company (GPC) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B.
|
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
|
9c2c182e-ea19-4936-b387-e1addd21ca3c
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713133.0
|
2023-12-12 00:00:00 UTC
|
Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
|
DCOMP
|
https://www.nasdaq.com/articles/are-you-a-value-investor-this-1-stock-could-be-the-perfect-pick-385
|
nan
|
nan
|
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Paypal (PYPL)
PayPal has emerged as one of the largest online payment solutions providers on the back of its strong product portfolio and two-sided platform that enables it to offer smooth and secure transaction facility to both customers and merchants.
PYPL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.43; value investors should take notice.
For fiscal 2023, 14 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $4.98 per share. PYPL boasts an average earnings surprise of 4.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PYPL should be on investors' short list.
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
PayPal Holdings, Inc. (PYPL) : 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 Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum. #1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Momentum Score Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
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What are the Zacks Style Scores? That's where the Style Scores come in. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B.
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51a6f9cc-952b-428d-948a-83c5787b0965
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713134.0
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2023-12-12 00:00:00 UTC
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Is Arch Capital Group (ACGL) Stock Outpacing Its Finance Peers This Year?
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https://www.nasdaq.com/articles/is-arch-capital-group-acgl-stock-outpacing-its-finance-peers-this-year-4
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Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Has Arch Capital Group (ACGL) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.
Arch Capital Group is one of 843 individual stocks in the Finance sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Arch Capital Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ACGL's full-year earnings has moved 14.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ACGL has returned 18.9% so far this year. Meanwhile, the Finance sector has returned an average of 16.9% on a year-to-date basis. This means that Arch Capital Group is outperforming the sector as a whole this year.
Another stock in the Finance sector, EastGroup Properties (EGP), has outperformed the sector so far this year. The stock's year-to-date return is 25.7%.
Over the past three months, EastGroup Properties' consensus EPS estimate for the current year has increased 1.2%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Arch Capital Group belongs to the Insurance - Property and Casualty industry, which includes 37 individual stocks and currently sits at #30 in the Zacks Industry Rank. On average, stocks in this group have gained 12.2% this year, meaning that ACGL is performing better in terms of year-to-date returns.
On the other hand, EastGroup Properties belongs to the REIT and Equity Trust - Other industry. This 94-stock industry is currently ranked #146. The industry has moved +10.7% year to date.
Going forward, investors interested in Finance stocks should continue to pay close attention to Arch Capital Group and EastGroup Properties as they could maintain their solid 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
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
EastGroup Properties, Inc. (EGP) : 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 average, stocks in this group have gained 12.2% this year, meaning that ACGL is performing better in terms of year-to-date returns. Going forward, investors interested in Finance stocks should continue to pay close attention to Arch Capital Group and EastGroup Properties as they could maintain their solid performance. 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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The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. Looking more specifically, Arch Capital Group belongs to the Insurance - Property and Casualty industry, which includes 37 individual stocks and currently sits at #30 in the Zacks Industry Rank. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. Looking more specifically, Arch Capital Group belongs to the Insurance - Property and Casualty industry, which includes 37 individual stocks and currently sits at #30 in the Zacks Industry Rank. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Has Arch Capital Group (ACGL) been one of those stocks this year? Collectively, these companies sit at #9 in the Zacks Sector Rank. Over the past 90 days, the Zacks Consensus Estimate for ACGL's full-year earnings has moved 14.4% higher.
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713135.0
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2023-12-12 00:00:00 UTC
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Is Transdigm Group (TDG) Stock Outpacing Its Aerospace Peers This Year?
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https://www.nasdaq.com/articles/is-transdigm-group-tdg-stock-outpacing-its-aerospace-peers-this-year-0
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Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Has TransDigm Group (TDG) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
TransDigm Group is one of 48 individual stocks in the Aerospace sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. TransDigm Group is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for TDG's full-year earnings has moved 7.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, TDG has returned 56.8% so far this year. Meanwhile, the Aerospace sector has returned an average of -2.6% on a year-to-date basis. This means that TransDigm Group is outperforming the sector as a whole this year.
Another Aerospace stock, which has outperformed the sector so far this year, is Textron (TXT). The stock has returned 12.5% year-to-date.
In Textron's case, the consensus EPS estimate for the current year increased 3.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, TransDigm Group belongs to the Aerospace - Defense Equipment industry, a group that includes 21 individual companies and currently sits at #136 in the Zacks Industry Rank. On average, stocks in this group have gained 21.4% this year, meaning that TDG is performing better in terms of year-to-date returns.
Textron, however, belongs to the Aerospace - Defense industry. Currently, this 26-stock industry is ranked #47. The industry has moved -7.6% so far this year.
Investors with an interest in Aerospace stocks should continue to track TransDigm Group and Textron. These stocks will be looking to continue their solid 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
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
Textron Inc. (TXT) : 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 Textron's case, the consensus EPS estimate for the current year increased 3.4% over the past three months. On average, stocks in this group have gained 21.4% this year, meaning that TDG is performing better in terms of year-to-date returns. 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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The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. To break things down more, TransDigm Group belongs to the Aerospace - Defense Equipment industry, a group that includes 21 individual companies and currently sits at #136 in the Zacks Industry Rank. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. To break things down more, TransDigm Group belongs to the Aerospace - Defense Equipment industry, a group that includes 21 individual companies and currently sits at #136 in the Zacks Industry Rank. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Has TransDigm Group (TDG) been one of those stocks this year? Collectively, these companies sit at #2 in the Zacks Sector Rank. 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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713136.0
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2023-12-12 00:00:00 UTC
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Are Construction Stocks Lagging James Hardie Industries (JHX) This Year?
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https://www.nasdaq.com/articles/are-construction-stocks-lagging-james-hardie-industries-jhx-this-year-0
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For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has James Hardie (JHX) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
James Hardie is one of 97 individual stocks in the Construction sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. James Hardie is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for JHX's full-year earnings has moved 9.3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, JHX has returned 98.3% so far this year. At the same time, Construction stocks have gained an average of 50.6%. This means that James Hardie is performing better than its sector in terms of year-to-date returns.
One other Construction stock that has outperformed the sector so far this year is Lennar (LEN). The stock is up 71.1% year-to-date.
Over the past three months, Lennar's consensus EPS estimate for the current year has increased 12.8%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, James Hardie belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #37 in the Zacks Industry Rank. This group has gained an average of 58.2% so far this year, so JHX is performing better in this area.
On the other hand, Lennar belongs to the Building Products - Home Builders industry. This 19-stock industry is currently ranked #71. The industry has moved +83.2% year to date.
James Hardie and Lennar could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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
James Hardie Industries PLC. (JHX) : Free Stock Analysis Report
Lennar Corporation (LEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question. 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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The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. To break things down more, James Hardie belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #37 in the Zacks Industry Rank. (JHX) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. To break things down more, James Hardie belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #37 in the Zacks Industry Rank. James Hardie and Lennar could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Has James Hardie (JHX) been one of those stocks this year? The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. One other Construction stock that has outperformed the sector so far this year is Lennar (LEN).
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64a00e52-2703-4854-bec9-ebec0217d1cd
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2023-12-12 00:00:00 UTC
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Is Crexendo (CXDO) Outperforming Other Computer and Technology Stocks This Year?
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https://www.nasdaq.com/articles/is-crexendo-cxdo-outperforming-other-computer-and-technology-stocks-this-year
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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Crexendo (CXDO) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Crexendo is a member of our Computer and Technology group, which includes 623 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Crexendo is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CXDO's full-year earnings has moved 160% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, CXDO has moved about 76.3% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 50%. This shows that Crexendo is outperforming its peers so far this year.
IonQ, Inc. (IONQ) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 327.8%.
Over the past three months, IonQ, Inc.'s consensus EPS estimate for the current year has increased 59.3%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Crexendo belongs to the Internet - Services industry, a group that includes 40 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 51.3% so far this year, so CXDO is performing better this group in terms of year-to-date returns.
In contrast, IonQ, Inc. falls under the Computer - Integrated Systems industry. Currently, this industry has 10 stocks and is ranked #93. Since the beginning of the year, the industry has moved +16.4%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Crexendo and IonQ, Inc. as they could maintain their solid 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
Crexendo Inc. (CXDO) : Free Stock Analysis Report
IonQ, Inc. (IONQ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question. Crexendo is a member of our Computer and Technology group, which includes 623 different companies and currently sits at #5 in the Zacks Sector Rank. Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Crexendo and IonQ, Inc. as they could maintain their solid performance.
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Over the past 90 days, the Zacks Consensus Estimate for CXDO's full-year earnings has moved 160% higher. Looking more specifically, Crexendo belongs to the Internet - Services industry, a group that includes 40 individual stocks and currently sits at #54 in the Zacks Industry Rank. Click to get this free report Crexendo Inc. (CXDO) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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IonQ, Inc. (IONQ) is another Computer and Technology stock that has outperformed the sector so far this year. Looking more specifically, Crexendo belongs to the Internet - Services industry, a group that includes 40 individual stocks and currently sits at #54 in the Zacks Industry Rank. Click to get this free report Crexendo Inc. (CXDO) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Has Crexendo (CXDO) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for CXDO's full-year earnings has moved 160% higher. IonQ, Inc. (IONQ) is another Computer and Technology stock that has outperformed the sector so far this year.
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30948c41-3d0c-45e7-91c0-24b48798b719
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713138.0
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2023-12-12 00:00:00 UTC
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Is Brink's (BCO) Outperforming Other Business Services Stocks This Year?
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https://www.nasdaq.com/articles/is-brinks-bco-outperforming-other-business-services-stocks-this-year-0
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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Brink's (BCO) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
Brink's is one of 318 individual stocks in the Business Services sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Brink's is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for BCO's full-year earnings has moved 0.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, BCO has returned 63.9% so far this year. Meanwhile, the Business Services sector has returned an average of 21.1% on a year-to-date basis. This means that Brink's is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Broadridge Financial Solutions (BR). The stock has returned 44.4% year-to-date.
In Broadridge Financial Solutions' case, the consensus EPS estimate for the current year increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Brink's belongs to the Outsourcing industry, a group that includes 13 individual companies and currently sits at #19 in the Zacks Industry Rank. On average, stocks in this group have gained 8.7% this year, meaning that BCO is performing better in terms of year-to-date returns. Broadridge Financial Solutions is also part of the same industry.
Brink's and Broadridge Financial Solutions could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.
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
Brink's Company (The) (BCO) : Free Stock Analysis Report
Broadridge Financial Solutions, Inc. (BR) : 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 Broadridge Financial Solutions' case, the consensus EPS estimate for the current year increased 1.2% over the past three months. On average, stocks in this group have gained 8.7% this year, meaning that BCO is performing better in terms of year-to-date returns. 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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Another Business Services stock, which has outperformed the sector so far this year, is Broadridge Financial Solutions (BR). Brink's and Broadridge Financial Solutions could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks. Click to get this free report Brink's Company (The) (BCO) : Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. Brink's and Broadridge Financial Solutions could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks. Click to get this free report Brink's Company (The) (BCO) : Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Has Brink's (BCO) been one of those stocks this year? Brink's is one of 318 individual stocks in the Business Services sector. Another Business Services stock, which has outperformed the sector so far this year, is Broadridge Financial Solutions (BR).
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a534f1d4-f69a-494a-8823-409b2052293c
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713139.0
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2023-12-12 00:00:00 UTC
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Are Retail-Wholesale Stocks Lagging Arcos Dorados (ARCO) This Year?
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DCOMP
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https://www.nasdaq.com/articles/are-retail-wholesale-stocks-lagging-arcos-dorados-arco-this-year-1
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nan
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nan
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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Arcos Dorados (ARCO) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Arcos Dorados is a member of our Retail-Wholesale group, which includes 221 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Arcos Dorados is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 9.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ARCO has gained about 47.4% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 24.9% on average. As we can see, Arcos Dorados is performing better than its sector in the calendar year.
Wayfair (W) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 95.1%.
In Wayfair's case, the consensus EPS estimate for the current year increased 9.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Arcos Dorados is a member of the Retail - Restaurants industry, which includes 42 individual companies and currently sits at #52 in the Zacks Industry Rank. Stocks in this group have gained about 10.4% so far this year, so ARCO is performing better this group in terms of year-to-date returns.
Wayfair, however, belongs to the Internet - Commerce industry. Currently, this 42-stock industry is ranked #35. The industry has moved +50.7% so far this year.
Arcos Dorados and Wayfair could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.
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
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Wayfair Inc. (W) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Arcos Dorados is a member of our Retail-Wholesale group, which includes 221 different companies and currently sits at #8 in the Zacks Sector Rank. 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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Arcos Dorados is a member of our Retail-Wholesale group, which includes 221 different companies and currently sits at #8 in the Zacks Sector Rank. Breaking things down more, Arcos Dorados is a member of the Retail - Restaurants industry, which includes 42 individual companies and currently sits at #52 in the Zacks Industry Rank. Click to get this free report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Wayfair Inc. (W) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. Arcos Dorados and Wayfair could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks. Click to get this free report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Wayfair Inc. (W) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Has Arcos Dorados (ARCO) been one of those stocks this year? Arcos Dorados is a member of our Retail-Wholesale group, which includes 221 different companies and currently sits at #8 in the Zacks Sector Rank. Wayfair (W) is another Retail-Wholesale stock that has outperformed the sector so far this year.
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ae6cc814-50b7-456a-ac00-676bb12d7298
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713140.0
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2023-12-12 00:00:00 UTC
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Has Arvinas (ARVN) Outpaced Other Medical Stocks This Year?
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DCOMP
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https://www.nasdaq.com/articles/has-arvinas-arvn-outpaced-other-medical-stocks-this-year
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nan
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nan
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For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Arvinas, Inc. (ARVN) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.
Arvinas, Inc. is one of 1087 individual stocks in the Medical sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Arvinas, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ARVN's full-year earnings has moved 14.8% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ARVN has returned 4.3% so far this year. At the same time, Medical stocks have lost an average of 4.1%. This means that Arvinas, Inc. is performing better than its sector in terms of year-to-date returns.
One other Medical stock that has outperformed the sector so far this year is Novo Nordisk (NVO). The stock is up 44.8% year-to-date.
Over the past three months, Novo Nordisk's consensus EPS estimate for the current year has increased 21.4%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Arvinas, Inc. belongs to the Medical - Biomedical and Genetics industry, a group that includes 527 individual companies and currently sits at #57 in the Zacks Industry Rank. This group has lost an average of 14.6% so far this year, so ARVN is performing better in this area.
On the other hand, Novo Nordisk belongs to the Large Cap Pharmaceuticals industry. This 11-stock industry is currently ranked #54. The industry has moved +7.5% year to date.
Arvinas, Inc. and Novo Nordisk could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.
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
Arvinas, Inc. (ARVN) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question. 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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The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. Click to get this free report Arvinas, Inc. (ARVN) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. Click to get this free report Arvinas, Inc. (ARVN) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Has Arvinas, Inc. (ARVN) been one of those stocks this year? The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. One other Medical stock that has outperformed the sector so far this year is Novo Nordisk (NVO).
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9f898173-b1b8-4a03-aa93-04d701d23165
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713141.0
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2023-12-12 00:00:00 UTC
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Has Alarm.com (ALRM) Outpaced Other Industrial Products Stocks This Year?
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DCOMP
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https://www.nasdaq.com/articles/has-alarm.com-alrm-outpaced-other-industrial-products-stocks-this-year
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nan
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nan
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The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Alarm.com Holdings (ALRM) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Alarm.com Holdings is one of 216 individual stocks in the Industrial Products sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Alarm.com Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ALRM's full-year earnings has moved 31.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ALRM has returned 23.2% so far this year. In comparison, Industrial Products companies have returned an average of 14.2%. This shows that Alarm.com Holdings is outperforming its peers so far this year.
Another Industrial Products stock, which has outperformed the sector so far this year, is AZZ (AZZ). The stock has returned 34% year-to-date.
For AZZ, the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Alarm.com Holdings is a member of the Security and Safety Services industry, which includes 19 individual companies and currently sits at #24 in the Zacks Industry Rank. Stocks in this group have gained about 0.6% so far this year, so ALRM is performing better this group in terms of year-to-date returns.
In contrast, AZZ falls under the Manufacturing - Electronics industry. Currently, this industry has 16 stocks and is ranked #43. Since the beginning of the year, the industry has moved +23.9%.
Investors with an interest in Industrial Products stocks should continue to track Alarm.com Holdings and AZZ. These stocks will be looking to continue their solid 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
Alarm.com Holdings, Inc. (ALRM) : Free Stock Analysis Report
AZZ Inc. (AZZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. 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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The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. Click to get this free report Alarm.com Holdings, Inc. (ALRM) : Free Stock Analysis Report AZZ Inc. (AZZ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. Another Industrial Products stock, which has outperformed the sector so far this year, is AZZ (AZZ). Click to get this free report Alarm.com Holdings, Inc. (ALRM) : Free Stock Analysis Report AZZ Inc. (AZZ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. Another Industrial Products stock, which has outperformed the sector so far this year, is AZZ (AZZ). Currently, this industry has 16 stocks and is ranked #43.
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5677cd86-8c6c-4343-92f0-0c2732c62446
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713142.0
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2023-12-12 00:00:00 UTC
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Are Investors Undervaluing CRH (CRH) Right Now?
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DCOMP
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https://www.nasdaq.com/articles/are-investors-undervaluing-crh-crh-right-now-0
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nan
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nan
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is CRH (CRH). CRH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.40 right now. For comparison, its industry sports an average P/E of 15.81. Over the past 52 weeks, CRH's Forward P/E has been as high as 14.56 and as low as 10.30, with a median of 12.35.
Investors will also notice that CRH has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRH's industry has an average PEG of 1.29 right now. Over the last 12 months, CRH's PEG has been as high as 4.36 and as low as 0.56, with a median of 1.24.
These are just a handful of the figures considered in CRH's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CRH is an impressive value stock 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 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
CRH PLC (CRH) : 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.
|
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Click to get this free report CRH PLC (CRH) : 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 at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. 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 CRH PLC (CRH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One company to watch right now is CRH (CRH). Investors will also notice that CRH has a PEG ratio of 0.83. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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b2ab61e6-61c4-477d-8912-67282ad770e4
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713143.0
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2023-12-12 00:00:00 UTC
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Should Value Investors Buy CNO Financial Group (CNO) Stock?
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DCOMP
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https://www.nasdaq.com/articles/should-value-investors-buy-cno-financial-group-cno-stock-2
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nan
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nan
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is CNO Financial Group (CNO). CNO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that CNO has a P/B ratio of 1.61. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CNO's current P/B looks attractive when compared to its industry's average P/B of 2.65. CNO's P/B has been as high as 2.13 and as low as 1.15, with a median of 1.40, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNO has a P/S ratio of 0.76. This compares to its industry's average P/S of 0.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CNO Financial Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CNO feels like a great value stock at the moment.
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
CNO Financial Group, Inc. (CNO) : 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.
|
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. One company to watch right now is CNO Financial Group (CNO). Click to get this free report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. 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 CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. CNO has a P/S ratio of 0.76. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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3e38d53a-c669-47e0-b61d-a0c535e29f7e
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713144.0
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2023-12-12 00:00:00 UTC
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Are Investors Undervaluing Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Right Now?
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DCOMP
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https://www.nasdaq.com/articles/are-investors-undervaluing-bayerische-motoren-werke-ag-sponsored-adr-bmwyy-right-now-3
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nan
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nan
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Bayerische Motoren Werke AG Sponsored ADR (BMWYY). BMWYY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.98 right now. For comparison, its industry sports an average P/E of 9.01. BMWYY's Forward P/E has been as high as 6.63 and as low as 4.12, with a median of 5.86, all within the past year.
Investors should also recognize that BMWYY has a P/B ratio of 0.63. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.38. Over the past year, BMWYY's P/B has been as high as 0.63 and as low as 0.62, with a median of 0.63.
Another great Automotive - Foreign stock you could consider is Toyota Motor (TM), which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Toyota Motor currently holds a Forward P/E ratio of 9.39, and its PEG ratio is 0.38. In comparison, its industry sports average P/E and PEG ratios of 9.01 and 0.34.
Over the last 12 months, TM's P/E has been as high as 10.75, as low as 8.26, with a median of 9.31, and its PEG ratio has been as high as 2.51, as low as 0.38, with a median of 0.71.
Toyota Motor sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 1.38. In the past 52 weeks, TM's P/B has been as high as 1.16, as low as 0.84, with a median of 0.97.
Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke AG Sponsored ADR and Toyota Motor are likely undervalued currently. And when considering the strength of its earnings outlook, BMWYY and TM sticks out as one of the market's strongest value stocks.
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
Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke AG Sponsored ADR and Toyota Motor are likely undervalued currently. 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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One company value investors might notice is Bayerische Motoren Werke AG Sponsored ADR (BMWYY). Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke AG Sponsored ADR and Toyota Motor are likely undervalued currently. Click to get this free report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. Another great Automotive - Foreign stock you could consider is Toyota Motor (TM), which is a # 1 (Strong Buy) stock with a Value Score of A. Click to get this free report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. Toyota Motor sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 1.38. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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301d494a-63e5-4a6c-9928-b9835ce56807
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713145.0
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2023-12-12 00:00:00 UTC
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Are Investors Undervaluing Summit Materials (SUM) Right Now?
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DCOMP
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https://www.nasdaq.com/articles/are-investors-undervaluing-summit-materials-sum-right-now-0
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nan
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nan
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Summit Materials (SUM). SUM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that SUM has a P/B ratio of 1.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.73. SUM's P/B has been as high as 2.27 and as low as 1.55, with a median of 1.83, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SUM has a P/S ratio of 1.83. This compares to its industry's average P/S of 2.7.
Value investors will likely look at more than just these metrics, but the above data helps show that Summit Materials is likely undervalued currently. And when considering the strength of its earnings outlook, SUM sticks out at as one of the market's strongest value stocks.
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
Summit Materials, Inc. (SUM) : 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.
|
Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. 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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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Click to get this free report Summit Materials, Inc. (SUM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. 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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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. SUM has a P/S ratio of 1.83. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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f8823a59-9d69-404c-816d-96a39afbfa09
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713146.0
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2023-12-12 00:00:00 UTC
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Should Value Investors Buy Cedar Fair (FUN) Stock?
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DCOMP
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https://www.nasdaq.com/articles/should-value-investors-buy-cedar-fair-fun-stock
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nan
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nan
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Cedar Fair (FUN). FUN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.04 right now. For comparison, its industry sports an average P/E of 19.68. FUN's Forward P/E has been as high as 16.21 and as low as 8.29, with a median of 12.24, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FUN has a P/S ratio of 1.11. This compares to its industry's average P/S of 1.18.
Finally, investors should note that FUN has a P/CF ratio of 6.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FUN's current P/CF looks attractive when compared to its industry's average P/CF of 20.44. Over the past 52 weeks, FUN's P/CF has been as high as 6.70 and as low as 4.10, with a median of 4.99.
These are only a few of the key metrics included in Cedar Fair's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FUN looks like an impressive value stock at the moment.
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
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.
|
Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Click to get this free 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.
|
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. 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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Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. FUN has a P/S ratio of 1.11.
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4d230728-222a-4c82-a959-2b066196d456
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713147.0
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2023-12-12 00:00:00 UTC
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Should Value Investors Buy Colruyt (CUYTY) Stock?
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DCOMP
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https://www.nasdaq.com/articles/should-value-investors-buy-colruyt-cuyty-stock
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nan
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nan
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Colruyt (CUYTY). CUYTY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.63, while its industry has an average P/E of 9.96. CUYTY's Forward P/E has been as high as 25.75 and as low as 8.79, with a median of 17.06, all within the past year.
Investors should also recognize that CUYTY has a P/B ratio of 2.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.59. Within the past 52 weeks, CUYTY's P/B has been as high as 2.46 and as low as 1.19, with a median of 1.91.
These are only a few of the key metrics included in Colruyt's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CUYTY looks like an impressive value stock at the moment.
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
Colruyt SA Unsponsored ADR (CUYTY) : 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.
|
Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. 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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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. Click to get this free report Colruyt SA Unsponsored ADR (CUYTY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. 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.
|
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. Investors should also recognize that CUYTY has a P/B ratio of 2.38.
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f9b0b091-e14f-4fec-926d-80525902f6ee
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713148.0
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2023-12-12 00:00:00 UTC
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Australian shares end higher on miners, Fed rate pivot
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DCOMP
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https://www.nasdaq.com/articles/australian-shares-end-higher-on-miners-fed-rate-pivot
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nan
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nan
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By Shivangi Lahiri
Dec 15 (Reuters) - Australian shares ended higher on Friday, boosted by mining and financial stocks and upbeat global sentiment after the Federal Reserve signalled lower borrowing costs next year.
The S&P/ASX 200 index .AXJO closed 0.7% higher at 7,431.10. The benchmark notched gains of 3.3% for the week, its best since the start of July.
On Wednesday, the Fed stuck to its dovish script on interest rates, with policymakers expecting rates to be lower in 2024.
Meanwhile, Australian employment data on Thursday surpassed expectations, but the jobless rate rose to a one-and-a-half-year high, adding to signs of loosening in the labour market.
"In theory, the data should have led to a touch of weakness in stocks, because the numbers are reflective of an economy that could require further rate rises. However, the 'everything rally' (after the Fed meeting) flowed through to the ASX and outweighed the domestic story," said Kyle Rodda, senior market analyst at Capital.com.
In Sydney, mining stocks .AXMM led sectoral gains, rising 2% and hitting their biggest weekly high since end-April as they tracked lithium and uranium prices and other commodities.
Heavyweights BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX were up between 1.4% and 2.4%. Fortescue hit a record weekly high.
Financials .AXFJ moved up 0.5%, marking their highest weekly gains since February, while the 'Big Four' banks rose between 0.5% and 1.2%.
Energy stocks .AXEJ also advanced 2%, in-line with climbing oil prices after the Fed's bullish forecast. O/R
Sector majors Woodside Energy WDS.AX and Santos STO.AX rose 1.4% and 3.2%, respectively.
In company news, shares of Healius HLS.AX fell as much as 9.2% after Australia's competition regulator killed a $1 billion takeover of the healthcare provider by rival Australian Clinical Labs ACL.AX.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 was largely flat, closing 0.02% lower at 11,550.20.
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Sonia Cheema)
((shivangi.lahiri@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shivangi Lahiri Dec 15 (Reuters) - Australian shares ended higher on Friday, boosted by mining and financial stocks and upbeat global sentiment after the Federal Reserve signalled lower borrowing costs next year. In Sydney, mining stocks .AXMM led sectoral gains, rising 2% and hitting their biggest weekly high since end-April as they tracked lithium and uranium prices and other commodities. In company news, shares of Healius HLS.AX fell as much as 9.2% after Australia's competition regulator killed a $1 billion takeover of the healthcare provider by rival Australian Clinical Labs ACL.AX.
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By Shivangi Lahiri Dec 15 (Reuters) - Australian shares ended higher on Friday, boosted by mining and financial stocks and upbeat global sentiment after the Federal Reserve signalled lower borrowing costs next year. The S&P/ASX 200 index .AXJO closed 0.7% higher at 7,431.10. In Sydney, mining stocks .AXMM led sectoral gains, rising 2% and hitting their biggest weekly high since end-April as they tracked lithium and uranium prices and other commodities.
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By Shivangi Lahiri Dec 15 (Reuters) - Australian shares ended higher on Friday, boosted by mining and financial stocks and upbeat global sentiment after the Federal Reserve signalled lower borrowing costs next year. Meanwhile, Australian employment data on Thursday surpassed expectations, but the jobless rate rose to a one-and-a-half-year high, adding to signs of loosening in the labour market. In Sydney, mining stocks .AXMM led sectoral gains, rising 2% and hitting their biggest weekly high since end-April as they tracked lithium and uranium prices and other commodities.
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The S&P/ASX 200 index .AXJO closed 0.7% higher at 7,431.10. The benchmark notched gains of 3.3% for the week, its best since the start of July. Meanwhile, Australian employment data on Thursday surpassed expectations, but the jobless rate rose to a one-and-a-half-year high, adding to signs of loosening in the labour market.
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83f4e2e2-acef-4c93-a6d7-1475ce8fe020
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713149.0
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2023-12-12 00:00:00 UTC
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FOCUS-Hedge funds fall victim to success in dash for cash
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DCOMP
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https://www.nasdaq.com/articles/focus-hedge-funds-fall-victim-to-success-in-dash-for-cash
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nan
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nan
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By Nell Mackenzie
LONDON, Dec 15 (Reuters) - The best performing hedge funds are falling victim to their own success as institutional investors such as pension funds and university endowments cut back their most profitable positions to make up for pain elsewhere.
Investors yanked $38 billion from top performing hedge funds in the 12 months to end-October, having pulled out $14 billion in the year earlier period, data from hedge fund specialist Aurum Research shows. These hedge funds returned, on average, more than 19% and 18%, respectively, in the two 12-month periods, Aurum Research said.
While it's not unusual to ditch low performing hedge funds and redeem profits seasonally, the current exodus is being driven by pension funds and universities sacrificing their strongest investments to hold on to private equity and venture capital portfolios that now cost more than they yield, more than a dozen people familiar with these deliberations say.
To avoid selling these investments at a likely loss, institutions would prefer to maintain them in the hope they regain value someday, the sources said.
The trend is set to continue into 2024, said the sources, which include family offices, fund of funds, board and trustee members of pensions and university endowments as well as private banks advising institutions and sovereign wealth funds, overseeing a combined trillions of dollars of assets.
No one wants to sell their private equity holdings and face the discounts likely to be applied in markets, said Michael Oliver Weinberg, who was previously a portfolio manager and board member at Dutch pension fund APG and now teaches at Columbia Business School.
"These pension funds and endowments have been forced to sell what they can, even outperforming liquid hedge funds to fund their capital calls," said Weinberg.
Funds invested in private equity and venture capital are generally decided upfront but the actual payments, or "capital calls", become due a chunk at a time.
'MASSIVE WRITE DOWNS'
Auditors customarily review portfolios at the start of each year. Institutions, suspecting that these private equity and venture capital portfolios have dropped in value, are trying to free up cash because they face higher costs and pressure to maintain returns, several sources said.
Any fall in the value of private equity and venture capital holdings will need to be made up.
Veteran hedge fund investor Neil Datta said endowments, in particular, were struggling because of the high share of money they allocated to private investments in recent years.
How much these are worth is typically not determined on a regular basis and the high valuations they carried when interest rates were low may have shifted as rates rose and deal activity fell.
"Those that excelled in 2019 and '20 face massive write downs now," said Datta. "Auditors will be coming in the next quarter and some of those positions will be slashed 30-40%. You'll have redemptions now as investors, in need of cash, are getting their houses in order."
Private equity buyout and venture capital funds in the first half of 2023 asked investors to stump up $66 billion more than was paid out in profit, MSCI data shows. While full-year data is not available yet, this looks likely to be the second year running investors have paid more than they received.
Profits from private equity are paid out when merger and acquisition (M&A) deals go well or when a company matures enough to go public.
But private equity firms have struggled to exit their investments as deal making dried up. Worldwide M&A deal volumes declined during the first eleven months of 2023, to the lowest amount seen in that time period in a decade, LSEG data shows.
Initial public offering (IPO) volumes have also fallen to a 7-year low in the year to Wednesday, according to LSEG data, and distributed profits have shrunk.
Columbia's Weinberg noted that investors had piled into private equity on an assumption of low rates, higher valuations and an exit deal.
"Today, rates have risen, IPO markets are dark and M&A is diminished. These investors' models expected a flow of money, in the form of profit distributions, to return. But those monies have just not come in," he said.
Outflows mean tougher times for hedge funds and carry an opportunity cost for public pensions and university funding, with institutions needing investments that are paying today.
Just keeping the lights on has become more costly, said one university board member.
"There are people redeeming from systematic and quantitative hedge funds that probably shouldn't and maybe don't want to, but they also don't want to sell their less liquid investments at fire sale prices," said Datta.
"The challenge is, if you expect continued volatility, you may lose potential upside by taking chips off the table."
How much received v how much paid out to private equity https://tmsnrt.rs/3uLvMJ5
Number of M&A deals globally https://tmsnrt.rs/46YKmdR
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe and Kirsten Donovan)
((Nell.Mackenzie@thomsonreuters.com; https://twitter.com/nellmooney;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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No one wants to sell their private equity holdings and face the discounts likely to be applied in markets, said Michael Oliver Weinberg, who was previously a portfolio manager and board member at Dutch pension fund APG and now teaches at Columbia Business School. Institutions, suspecting that these private equity and venture capital portfolios have dropped in value, are trying to free up cash because they face higher costs and pressure to maintain returns, several sources said. Veteran hedge fund investor Neil Datta said endowments, in particular, were struggling because of the high share of money they allocated to private investments in recent years.
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Investors yanked $38 billion from top performing hedge funds in the 12 months to end-October, having pulled out $14 billion in the year earlier period, data from hedge fund specialist Aurum Research shows. While it's not unusual to ditch low performing hedge funds and redeem profits seasonally, the current exodus is being driven by pension funds and universities sacrificing their strongest investments to hold on to private equity and venture capital portfolios that now cost more than they yield, more than a dozen people familiar with these deliberations say. Outflows mean tougher times for hedge funds and carry an opportunity cost for public pensions and university funding, with institutions needing investments that are paying today.
|
Investors yanked $38 billion from top performing hedge funds in the 12 months to end-October, having pulled out $14 billion in the year earlier period, data from hedge fund specialist Aurum Research shows. While it's not unusual to ditch low performing hedge funds and redeem profits seasonally, the current exodus is being driven by pension funds and universities sacrificing their strongest investments to hold on to private equity and venture capital portfolios that now cost more than they yield, more than a dozen people familiar with these deliberations say. The trend is set to continue into 2024, said the sources, which include family offices, fund of funds, board and trustee members of pensions and university endowments as well as private banks advising institutions and sovereign wealth funds, overseeing a combined trillions of dollars of assets.
|
While it's not unusual to ditch low performing hedge funds and redeem profits seasonally, the current exodus is being driven by pension funds and universities sacrificing their strongest investments to hold on to private equity and venture capital portfolios that now cost more than they yield, more than a dozen people familiar with these deliberations say. "These pension funds and endowments have been forced to sell what they can, even outperforming liquid hedge funds to fund their capital calls," said Weinberg. Institutions, suspecting that these private equity and venture capital portfolios have dropped in value, are trying to free up cash because they face higher costs and pressure to maintain returns, several sources said.
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524bcf46-db0e-4f41-9bbe-e8ab3416d68c
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713150.0
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2023-12-12 00:00:00 UTC
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Czech CSG takes over Italian shotgun maker Armi Perazzi
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DCOMP
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https://www.nasdaq.com/articles/czech-csg-takes-over-italian-shotgun-maker-armi-perazzi
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nan
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nan
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PRAGUE, Dec 15 (Reuters) - Czech defence and industrial company Czechoslovak Group has agreed to acquire an 80% stake in Italian high-end sporting and hunting shotgun maker Armi Perazzi, CSG said on Friday.
CSG, owned by entrepreneur Michal Strnad, has seen rapid expansion thanks in part to sharp increase of supplies of equipment and ammunition to Ukraine as well as acquisitions.
Perazzi, which makes guns for top sport shooters and hunters, is based in Botticino in the northern region of Lombardy. The founding family retains the remaining 20% stake.
Last year, CSG acquired a majority stake in another Italian firm, Fiocchi Munizioni, the manufacturer of small-caliber ammunition.
In October, CSG agreed to take over U.S. firm Vista Outdoor's VSTO.N sporting products unit, including its ammunitions business, in a $1.91 billion deal expected to close next year.
(Reporting by Jan Lopatka, editing by Jason Hovet)
((jan.lopatka@thomsonreuters.com; +420 234 721 614; Reuters Messaging: jan.lopatka.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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PRAGUE, Dec 15 (Reuters) - Czech defence and industrial company Czechoslovak Group has agreed to acquire an 80% stake in Italian high-end sporting and hunting shotgun maker Armi Perazzi, CSG said on Friday. CSG, owned by entrepreneur Michal Strnad, has seen rapid expansion thanks in part to sharp increase of supplies of equipment and ammunition to Ukraine as well as acquisitions. In October, CSG agreed to take over U.S. firm Vista Outdoor's VSTO.N sporting products unit, including its ammunitions business, in a $1.91 billion deal expected to close next year.
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PRAGUE, Dec 15 (Reuters) - Czech defence and industrial company Czechoslovak Group has agreed to acquire an 80% stake in Italian high-end sporting and hunting shotgun maker Armi Perazzi, CSG said on Friday. Last year, CSG acquired a majority stake in another Italian firm, Fiocchi Munizioni, the manufacturer of small-caliber ammunition. In October, CSG agreed to take over U.S. firm Vista Outdoor's VSTO.N sporting products unit, including its ammunitions business, in a $1.91 billion deal expected to close next year.
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PRAGUE, Dec 15 (Reuters) - Czech defence and industrial company Czechoslovak Group has agreed to acquire an 80% stake in Italian high-end sporting and hunting shotgun maker Armi Perazzi, CSG said on Friday. Last year, CSG acquired a majority stake in another Italian firm, Fiocchi Munizioni, the manufacturer of small-caliber ammunition. In October, CSG agreed to take over U.S. firm Vista Outdoor's VSTO.N sporting products unit, including its ammunitions business, in a $1.91 billion deal expected to close next year.
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CSG, owned by entrepreneur Michal Strnad, has seen rapid expansion thanks in part to sharp increase of supplies of equipment and ammunition to Ukraine as well as acquisitions. Perazzi, which makes guns for top sport shooters and hunters, is based in Botticino in the northern region of Lombardy. Last year, CSG acquired a majority stake in another Italian firm, Fiocchi Munizioni, the manufacturer of small-caliber ammunition.
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9b434cc5-825a-4ee9-940a-38ea6cd52cc5
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713151.0
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2023-12-12 00:00:00 UTC
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3 Unstoppable Artificial Intelligence (AI) Stocks to Buy and Hold for the Next Decade
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DCOMP
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https://www.nasdaq.com/articles/3-unstoppable-artificial-intelligence-ai-stocks-to-buy-and-hold-for-the-next-decade
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nan
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Sure, there's a lot of hype surrounding artificial intelligence (AI). It always happens with hot technologies. But don't think for a second that AI is only a fad. The advances we've seen over the last year or so are just the beginning.
As a result, investors still have a tremendous opportunity to make money in the coming years. Here are three unstoppable AI stocks to buy and hold for the next decade (listed in alphabetical order).
1. Alphabet
Anyone who thought that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) would be left in the dust in the AI race is probably rethinking that position now. Admittedly, the company appeared to be blindsided by the early success of OpenAI's ChatGPT. And Google Cloud's less-than-impressive growth in the third quarter was widely chalked up to a perceived AI shortcoming.
However, Alphabet seems to have changed the narrative quite a bit with the introduction of its new Gemini AI model. The most powerful version of the model, Gemini Ultra, outperforms OpenAI's GPT-4 and beats human experts on the MMLU (massive multitask language understanding) test.
I think that Google Cloud will return to its previous growth trajectory, thanks to Gemini. Even if that's overly optimistic, the company's cloud platform should have huge growth prospects as customers flock to the cloud to build generative AI apps.
What about the possibility that Alphabet's search business could be disrupted by AI? I predict that it will -- but not in the way that some envision. My view is that search won't be replaced by AI. Instead, I expect that Google's use of AI will enhance its search functionality and make it more profitable.
2. Amazon
Amazon (NASDAQ: AMZN) was another AI leader that appeared to have been initially caught off guard by ChatGPT's popularity. Like Alphabet, though, the e-commerce and cloud services giant quickly rolled out its own generative AI capabilities.
My take is that Amazon is on the right track with Amazon Bedrock. This service allows Amazon Web Services (AWS) customers to quickly build generative AI apps with a range of tools at their disposal.
I'm also in full agreement with Amazon CEO Andy Jassy about the long-term potential for AWS because of AI. Jassy said in the company's Q3 conference call, "[C]ustomers want to bring the [AI] models to their data, not the other way around. And most of that data resides in AWS as the clear market segment leader in cloud infrastructure."
Investors have definitely noticed Amazon's renewed focus on increasing profitability. I anticipate that those profits will continue to grow robustly for years to come as the company harnesses the power of AI across all of its businesses.
3. Microsoft
My inclusion of Alphabet and Amazon among the unstoppable AI stocks to buy and hold doesn't mean that I think they'll grow at the expense of Microsoft (NASDAQ: MSFT). That's not the case at all. I believe that Microsoft will remain one of the biggest AI winners for a long time to come.
Microsoft's significant investment in OpenAI could go down as one of the smartest business development moves in corporate history. The two companies are now joined at the hip. And it shows with OpenAI's GPT-4 technology integrated throughout Microsoft's products.
I'm not concerned about the recent soap opera with the firing and prompt rehiring of Sam Altman as OpenAI's CEO. OpenAI -- and Microsoft, by extension -- will almost certainly continue to pioneer AI breakthroughs.
Like Alphabet and Amazon, Microsoft is poised to profit tremendously as customers move their apps and data to the cloud. AI should also help the Seattle-based tech giant in many other ways, including attracting more customers to its AI-enhanced productivity tools.
Should you invest $1,000 in Microsoft 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. Keith Speights has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The most powerful version of the model, Gemini Ultra, outperforms OpenAI's GPT-4 and beats human experts on the MMLU (massive multitask language understanding) test. I anticipate that those profits will continue to grow robustly for years to come as the company harnesses the power of AI across all of its businesses. 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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This service allows Amazon Web Services (AWS) customers to quickly build generative AI apps with a range of tools at their disposal. Like Alphabet and Amazon, Microsoft is poised to profit tremendously as customers move their apps and data to the cloud. Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Microsoft wasn't one of them.
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Microsoft My inclusion of Alphabet and Amazon among the unstoppable AI stocks to buy and hold doesn't mean that I think they'll grow at the expense of Microsoft (NASDAQ: MSFT). Like Alphabet and Amazon, Microsoft is poised to profit tremendously as customers move their apps and data to the cloud. Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Microsoft wasn't one of them.
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Microsoft My inclusion of Alphabet and Amazon among the unstoppable AI stocks to buy and hold doesn't mean that I think they'll grow at the expense of Microsoft (NASDAQ: MSFT). Like Alphabet and Amazon, Microsoft is poised to profit tremendously as customers move their apps and data to the cloud. Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Microsoft wasn't one of them.
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65ada663-1f0c-4f85-8e92-32e2a96991ed
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713152.0
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2023-12-12 00:00:00 UTC
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Validea Motley Fool Strategy Daily Upgrade Report - 12/15/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-motley-fool-strategy-daily-upgrade-report-12-15-2023
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nan
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
PHOTRONICS, INC. (PLAB) is a small-cap value stock in the Semiconductors industry. The rating according to our strategy based on Motley Fool changed from 56% to 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Photronics, Inc. is a manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. Photomasks are a key element in the manufacture of ICs and FPDs and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates during the fabrication of ICs, a variety of FPDs and, to a lesser extent, other types of electrical and optical components. The Company sells its photomasks to semiconductor designers and manufacturers, and manufacturers of FPDs. Photomask technology is also being applied to the fabrication of other electronic products such as photonics, microelectronic mechanical systems, and certain nanotechnology applications. The Company operates approximately 11 manufacturing facilities, out of which three are located in Taiwan, one in Korea, three in the United States, two in Europe, and two in China.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: FAIL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of PHOTRONICS, INC.
PLAB Guru Analysis
PLAB Fundamental Analysis
REX AMERICAN RESOURCES CORP (REX) is a small-cap growth stock in the Chemical Manufacturing industry. The rating according to our strategy based on Motley Fool changed from 69% to 83% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: REX American Resources Corporation is a holding company. The Company operates through the ethanol and by-products segment. Its ethanol operations are focused on corn, ethanol, distillers grains, non-food grade corn oil and natural gas. The Company has interests in over six ethanol production facilities, which in aggregate shipped approximately 691 million gallons of ethanol. The Company has ownership of the gallons shipped by the ethanol production facilities, which has ownership interests in approximately 271 million gallons. The Company operates through its subsidiaries, including One Earth Energy, LLC (One Earth), NuGen Energy, LLC (NuGen) and Big River Resources, LLC (Big River). Its ethanol industry consists of approximately 199 plants in over 25 states with an annual capacity of approximately 17.9 billion gallons of ethanol production in the United States. The Company has approximately 1.4 billion gallons that are exported from the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of REX AMERICAN RESOURCES CORP
REX Guru Analysis
REX Fundamental Analysis
INTERNATIONAL BANCSHARES CORP (IBOC) is a mid-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 56% to 83% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: International Bancshares Corporation is a multibank financial holding company. The Company is engaged in providing a diversified range of commercial and retail banking services in its main banking and branch facilities located in north, south, central and southeast Texas and the State of Oklahoma. The Company, through its subsidiary banks, is engaged in the business of accepting, checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile and other installment and term loans. Its international banking business includes providing letters of credit, making commercial and industrial loans and providing foreign exchange services. Its subsidiary banks also offer other related services, such as credit cards, safety deposit boxes, collections, notary public, escrow services, drive-up and walk-up facilities and other customary banking services. Its subsidiary banks include International Bank of Commerce and Commerce Bank.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of INTERNATIONAL BANCSHARES CORP
IBOC Guru Analysis
IBOC Fundamental Analysis
OWENS CORNING (OC) is a large-cap value stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Motley Fool changed from 65% to 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Owens Corning is a provider of building and industrial materials. The Company operates through three segments: Composites, Insulation and Roofing. Its Composites segment includes vertically integrated material solutions and is engaged in manufacturing, fabricating and selling glass reinforcements in the form of fiber. Its glass reinforcement materials are also used downstream by this segment to manufacture and sell glass fiber products in the form of fabrics, non-woven and other specialized products. Its Insulation segment includes a portfolio of high, mid and low-temperature products with a geographic mix of United States, Canada, Europe, Asia-Pacific, and Latin America and is engaged in manufacturing and selling thermal and acoustical batts, loose fill insulation, foam sheathing, and accessories. Its Roofing segment offers products in laminate and strip asphalt roofing shingles. Its other products include roofing components, synthetic packaging materials and oxidized asphalt.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of OWENS CORNING
OC Guru Analysis
OC Fundamental Analysis
Motley Fool Portfolio
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Company, through its subsidiary banks, is engaged in the business of accepting, checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile and other installment and term loans. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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Detailed Analysis of PHOTRONICS, INC. PLAB Guru Analysis PLAB Fundamental Analysis REX AMERICAN RESOURCES CORP (REX) is a small-cap growth stock in the Chemical Manufacturing industry. The Company operates through its subsidiaries, including One Earth Energy, LLC (One Earth), NuGen Energy, LLC (NuGen) and Big River Resources, LLC (Big River). Detailed Analysis of REX AMERICAN RESOURCES CORP REX Guru Analysis REX Fundamental Analysis INTERNATIONAL BANCSHARES CORP (IBOC) is a mid-cap value stock in the Money Center Banks industry.
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Detailed Analysis of PHOTRONICS, INC. PLAB Guru Analysis PLAB Fundamental Analysis REX AMERICAN RESOURCES CORP (REX) is a small-cap growth stock in the Chemical Manufacturing industry. Detailed Analysis of REX AMERICAN RESOURCES CORP REX Guru Analysis REX Fundamental Analysis INTERNATIONAL BANCSHARES CORP (IBOC) is a mid-cap value stock in the Money Center Banks industry. Detailed Analysis of OWENS CORNING OC Guru Analysis OC Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss.
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. The Company has interests in over six ethanol production facilities, which in aggregate shipped approximately 691 million gallons of ethanol. Detailed Analysis of OWENS CORNING OC Guru Analysis OC Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss.
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4adf50ca-0447-4385-bfa9-0d18133820a4
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713153.0
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2023-12-12 00:00:00 UTC
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Amazon Stock Will Outperform in 2024. Here’s Why.
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DCOMP
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https://www.nasdaq.com/articles/amazon-stock-will-outperform-in-2024.-heres-why.
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amazon (NASDAQ:AMZN) stock keeps benefitting as the company continues to branch out into new and exciting areas even as the company improves its core e-commerce business. Heading into 2024, Amazon increasingly looks like the stock to own for the year ahead.
A company that continues to expand at breakneck speed and has a successful stake in every important sector of the economy, from streaming and grocery delivery to artificial intelligence and cloud computing. Amazon is even broadcasting NFL football games. As we enter a new year, AMZN stock looks sure to continue the outperformance it enjoyed in 2023 when its share price rose 74%, and it could reach new heights.
AMZN Stock Post-Pandemic
Getting to this point hasn’t been easy. Amazon came out of the Covid-19 pandemic with a bunch of problems it had to resolve. The company was bloated, over-staffed and spending too much money as consumers suddenly moved offline and returned to in-person shopping.
To recover, Amazon cut more than 25,000 jobs, canceled several high-profile projects, and even temporarily halted construction on a new second headquarters it was building in Arlington, Virginia.
The decisive moves, while painful, have enabled Amazon to move past the pandemic and get its business back on track. This was clear in the company’s third-quarter financial results.
At the end of October, Amazon reported stellar earnings that showed accelerating growth across the company. Specifically, Amazon reported earnings per share of 94 cents versus 58 cents that had been expected
On Wall Street, revenue totaled $143.1 billion compared to $141.4 billion that was anticipated, and were up 13% from a year earlier driven largely by growing e-commerce sales.
Digital advertising revenue increased 26% in Q3 from a year earlier, while the Amazon Web Services cloud computing unit saw year-over-year growth of 12%. Looking ahead, Amazon executives forecast fourth-quarter sales of $167 billion, ahead of analyst estimates.
New Innovations and AMZN Stock
Key to Amazon’s success is the company’s constant innovation and diversification. Amazon is paying $1 billion per year to stream NFL games, primarily “Thursday Night Football” match-ups. However, the company also shelled out a reported $100 million to air the NFL’s first ever game on Black Friday this year. The move into live sports is helping to drive Amazon Prime subscriptions.
Another example of Amazon’s innovation can be found in the company’s new grocery subscription service, which is also exclusive to Prime members.
Amazon is now running a trial where existing Prime members are being given the option to pay an additional $9.99 per month to get unlimited grocery deliveries from Whole Foods and Amazon Fresh on orders of more than $35. The new service is being trialed in the markets of Denver, Colorado; Sacramento, California; and Columbus, Ohio.
Amazon is betting that Prime members will want to pay an additional monthly charge for fresh food to be dropped at their residence without delivery fees. The company has become a major player in the grocery industry since it acquired Whole Foods in 2017 for $13.7 billion.
Over the last five years, Amazon has launched its own chain of Fresh supermarkets, and it has united its online and brick-and-mortar grocery operations.
If all this weren’t enough, Amazon also recently announced that, starting in 2024, consumers will be able to buy cars, trucks, and SUVs on its e-commerce platform, a move that’s expected to be a major revenue driver for the company.
Push into Artificial Intelligence
Artificial intelligence has been the hot trend in the tech sector and the hot trade in the stock market. Amazon is not missing out. While AI is not yet core to its business, Amazon is pushing into the space in significant ways.
At the end of November, the company revealed an AI chatbot for businesses called “Q.” Named after the character in the James Bond movies who provides the spy with his gadgets, Q helps people understand Amazon’s cloud-computing service and can make changes to source code, among other functions.
Amazon is also spending heavily to develop a new AI model codenamed “Olympus” that reportedly has two trillion parameters, double the power of OpenAI’s GPT-4 chatbot.
A team of engineers and programmers that previously worked on Amazon’s smart home device “Alexa” have been reassigned to Olympus as the company ramps up its investments in AI. Amazon has also partnered with AI start-ups Anthropic and AI21 Labs, offering them to its Amazon Web Service cloud customers.
Buy AMZN Stock
There’s so much going on at Amazon that it’s hard to capture it all. The company has regained its footing after the Covid-19 pandemic and is succeeding in several diverse and exciting areas beyond its core e-commerce offering.
With a growing focus on AI and constant innovations, Amazon looks poised to remain a leading mega-cap technology concern into 2024 and beyond. Analysts at JPMorgan Chase recently named Amazon one of their top picks for 2024. We concur. AMZN stock is a buy.
On the date of publication, Joel Baglole 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.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post Amazon Stock Will Outperform in 2024. Here’s Why. 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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If all this weren’t enough, Amazon also recently announced that, starting in 2024, consumers will be able to buy cars, trucks, and SUVs on its e-commerce platform, a move that’s expected to be a major revenue driver for the company. At the end of November, the company revealed an AI chatbot for businesses called “Q.” Named after the character in the James Bond movies who provides the spy with his gadgets, Q helps people understand Amazon’s cloud-computing service and can make changes to source code, among other functions. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon (NASDAQ:AMZN) stock keeps benefitting as the company continues to branch out into new and exciting areas even as the company improves its core e-commerce business. Specifically, Amazon reported earnings per share of 94 cents versus 58 cents that had been expected On Wall Street, revenue totaled $143.1 billion compared to $141.4 billion that was anticipated, and were up 13% from a year earlier driven largely by growing e-commerce sales. Digital advertising revenue increased 26% in Q3 from a year earlier, while the Amazon Web Services cloud computing unit saw year-over-year growth of 12%.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon (NASDAQ:AMZN) stock keeps benefitting as the company continues to branch out into new and exciting areas even as the company improves its core e-commerce business. Amazon is now running a trial where existing Prime members are being given the option to pay an additional $9.99 per month to get unlimited grocery deliveries from Whole Foods and Amazon Fresh on orders of more than $35. Amazon has also partnered with AI start-ups Anthropic and AI21 Labs, offering them to its Amazon Web Service cloud customers.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon (NASDAQ:AMZN) stock keeps benefitting as the company continues to branch out into new and exciting areas even as the company improves its core e-commerce business. Specifically, Amazon reported earnings per share of 94 cents versus 58 cents that had been expected On Wall Street, revenue totaled $143.1 billion compared to $141.4 billion that was anticipated, and were up 13% from a year earlier driven largely by growing e-commerce sales. Digital advertising revenue increased 26% in Q3 from a year earlier, while the Amazon Web Services cloud computing unit saw year-over-year growth of 12%.
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20bffe48-f382-40cf-87cd-214f4784ff4a
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713154.0
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2023-12-12 00:00:00 UTC
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Validea John Neff Strategy Daily Upgrade Report - 12/15/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-john-neff-strategy-daily-upgrade-report-12-15-2023
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nan
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nan
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The following are today's upgrades for Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
SPIRE INC (SR) is a mid-cap growth stock in the Natural Gas Utilities industry. The rating according to our strategy based on John Neff changed from 58% to 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Spire Inc. is the holding company for Spire Missouri Inc. (Spire Missouri), Spire Alabama Inc. (Spire Alabama), other gas utilities, and gas-related businesses. Its Gas Utility segment includes the regulated operations of Spire Missouri, Spire Alabama, Spire Gulf Inc. (Spire Gulf) and Spire Mississippi Inc. (Spire Mississippi). Spire Missouri is engaged in the purchase, retail distribution and sale of natural gas. Spire Alabama is engaged in the purchase, retail distribution and sale of natural gas principally in central and northern Alabama. Spire Gulf and Spire Mississippi are utilities engaged in the purchase, retail distribution and sale of natural gas in the Mobile, Alabama area and south-central Mississippi. Its Gas Marketing segment includes Spire Marketing Inc. (Spire Marketing), a wholly owned subsidiary providing natural gas marketing services. Its Midstream segment consists of three facilities Spire STL Pipeline, Spire Storage West, and Spire Storage Salt Plains.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: FAIL
EPS PERSISTENCE: FAIL
Detailed Analysis of SPIRE INC
SR Guru Analysis
SR Fundamental Analysis
ACNB CORPORATION (ACNB) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on John Neff changed from 60% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ACNB Corporation is a financial holding company. The Company's banking operations are conducted through its subsidiary, ACNB Bank (the Bank). The ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage with a network of approximately 26 community banking offices and three loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York, and the Maryland counties of Baltimore, Carroll, and Frederick. The Company operates through two segments: Banking and Insurance. Its Banking segment includes the Bank and related financial services that the Corporation offers through its banking subsidiary. The Company's subsidiary, ACNB Insurance Services, Inc., is a full-service agency, which offers a range of property, casualty, health, life, and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, Maryland, and Gettysburg, Pennsylvania.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
Detailed Analysis of ACNB CORPORATION
ACNB Guru Analysis
ACNB Fundamental Analysis
PEOPLES BANCORP INC. (PEBO) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on John Neff changed from 60% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Peoples Bancorp Inc. is a diversified financial service holding company, which operates through its subsidiary, Peoples Bank, an Ohio state-chartered bank. Its other subsidiaries include Peoples Investment Company and Peoples Risk Management, Inc., a captive insurance subsidiary. It provides commercial and consumer banking, trust and investment, insurance, premium financing solutions, equipment leases and equipment financing agreements through its financial subsidiaries. Its financial products and services are offered through its financial service offices and automated teller machines in Ohio, West Virginia, Kentucky, Virginia, Washington, D.C. and Maryland, as well as through online resources that are web-based and mobile-based. Its Brokerage services are offered through an unaffiliated registered broker-dealer located at Peoples Bank's offices. The Peoples Bank's credit card and merchant processing services are provided through joint marketing arrangement with third parties.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
Detailed Analysis of PEOPLES BANCORP INC.
PEBO Guru Analysis
PEBO Fundamental Analysis
John Neff Portfolio
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following are today's upgrades for Validea's Low PE Investor model based on the published strategy of John Neff. The Peoples Bank's credit card and merchant processing services are provided through joint marketing arrangement with third parties. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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Its Gas Utility segment includes the regulated operations of Spire Missouri, Spire Alabama, Spire Gulf Inc. (Spire Gulf) and Spire Mississippi Inc. (Spire Mississippi). Detailed Analysis of ACNB CORPORATION ACNB Guru Analysis ACNB Fundamental Analysis PEOPLES BANCORP INC. (PEBO) is a small-cap value stock in the Money Center Banks industry. Detailed Analysis of PEOPLES BANCORP INC. PEBO Guru Analysis PEBO Fundamental Analysis John Neff Portfolio About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect.
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Company Description: Spire Inc. is the holding company for Spire Missouri Inc. (Spire Missouri), Spire Alabama Inc. (Spire Alabama), other gas utilities, and gas-related businesses. Its Gas Utility segment includes the regulated operations of Spire Missouri, Spire Alabama, Spire Gulf Inc. (Spire Gulf) and Spire Mississippi Inc. (Spire Mississippi). Detailed Analysis of PEOPLES BANCORP INC. PEBO Guru Analysis PEBO Fundamental Analysis John Neff Portfolio About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect.
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Its Banking segment includes the Bank and related financial services that the Corporation offers through its banking subsidiary. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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189c31bc-ff66-49d6-b68d-49235e7262d3
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713155.0
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2023-12-12 00:00:00 UTC
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Strength Seen in Flex (FLEX): Can Its 9.0% Jump Turn into More Strength?
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Flex (FLEX) shares rallied 9% in the last trading session to close at $28.66. 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 1.9% loss over the past four weeks.
The increase in share price can be attributed to robust demand for the company’s diversified product portfolio. The automotive business is benefiting due to program wins and steady vehicle content expansion.
The company’s industrial segment is likely to benefit from solid demand for EV charging, automation and cloud/critical power. Apart from this, the company expects Communications & Enterprise Compute segment to benefit from secular growth trends in cloud and networking technology.
This electronics designer and manufacturer is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $6.73 billion, down 13.2% 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 Flex, 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 FLEX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Flex is part of the Zacks Electronics - Miscellaneous Products industry. SiTime (SITM), another stock in the same industry, closed the last trading session 8% higher at $126.61. SITM has returned 0.2% in the past month.
For SiTime, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. This represents a change of -68.8% from what the company reported a year ago. SiTime 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
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Flex Ltd. (FLEX) : Free Stock Analysis Report
SiTime Corporation (SITM) : 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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Apart from this, the company expects Communications & Enterprise Compute segment to benefit from secular growth trends in cloud and networking technology. 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 >>>> Flex is part of the Zacks Electronics - Miscellaneous Products industry. For SiTime, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report SiTime Corporation (SITM) : 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 >>>> Flex is part of the Zacks Electronics - Miscellaneous Products industry. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report SiTime Corporation (SITM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Flex (FLEX) shares rallied 9% in the last trading session to close at $28.66. SiTime (SITM), another stock in the same industry, closed the last trading session 8% higher at $126.61. For SiTime, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20.
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62dce147-bb38-46f7-b674-b9363e882ade
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713156.0
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2023-12-12 00:00:00 UTC
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This Dividend Stock Has Returned 157% Over the Past 10 Years. You Can Buy It Today for Just $15
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One of the components of a diversified portfolio is dividend investments. While many different types of companies pay dividends, one of the more generous types is business development companies (BDCs).
BDCs are required to pay out at least 90% of taxable income to shareholders in the form of a dividend. Hercules Technology Growth Capital (NYSE: HTGC) is a leading BDC that specializes in a vehicle called venture debt for life sciences, energy, and technology businesses. The company competes with traditional banks that may not be willing to make a loan to a start-up given its risky growth profile.
Over the past decade, Hercules stock has a total return of nearly 160%. This multibagger stock could be really attractive for dividend investors. And with shares trading below their 52-week range, now could be a great opportunity to open a position.
What makes Hercules Capital Unique?
When a start-up is first getting off the ground, the founders may turn to outside investors such as venture capital (VC) or private equity firms to raise funding. In exchange for investment capital, the founders give up equity ownership in the business. Over time, this deal structure can become less attractive as founders and employees are diluted. For this reason, as the start-up matures, it may seek out alternative financing structures like debt. Debt is a non-dilutive investment vehicle and can be useful for a business that is no longer burning cash but still needs a bridge before it can become fully self-funded or tap less costly capital. This is where BDCs like Hercules come into play.
What makes Hercules unique is how it structures deals. For example, a start-up always has the option to go to a bank and fill out a loan application. However, given the newness of the business and the unpredictability of cash flow, a bank may be willing to make only a small loan -- if any at all. On the other hand, Hercules has the balance sheet strength to make larger loans to these start-ups and provide the company with adequate funding. The catch is that these loans carry much higher interest rates than a regular bank's. Nevertheless, mature start-ups are typically eager to explore these types of deals due to their nondilutive nature. Moreover, so long as the company is confident in its ability to generate sufficient cash flow to pay down the loan, these transactions can make a lot of sense.
Another aspect of Hercules' business is that its deals typically carry stock warrants, giving it the option to buy an equity stake. This provides the potential for an extra layer of return for its portfolio companies. Many of Hercules' clients either pursue an initial public offering (IPO) or end up getting acquired by a larger competitor. Not only does Hercules make money from the interest on its loans, but it can get an extra kicker from its warrants during a liquidity event.
Image source: Getty Images.
Should you buy Hercules Capital stock?
Data source: YCharts
As of the time of this article, Hercules trades at a price-to-book (P/B) ratio of 1.4. This is slightly above the company's 10-year average of 1.3. The company is fresh off another record-setting quarter, and the stock's total return of 34% so far this year has handily beaten the S&P 500. For these reasons, it's not entirely surprising to see the stock trading at a slight premium.
Right now, the stock trades for about $16 per share, roughly 11% off its 52-week high. My guess is that some investors are taking gains off the table before the year's end. Moreover, it's unclear when exactly the Federal Reserve could start tapering interest rates -- an event that could meaningfully affect Hercules Capital.
But after zooming out and considering the bigger picture, whether the Fed begins to reduce interest rates sometime in 2024 is somewhat irrelevant. Given its unique business model, Hercules is more than just a lender. During the company's third-quarterearnings call management stated that "we expect several additional M&A exits over the coming quarters." This sheds a lot of light on some of the secular tailwinds pushing the growth sectors Hercules serves.
The stock has been a solid performer for the past decade, and I don't see that stopping anytime soon. At current prices, the stock offers a juicy 12% dividend yield, and now looks like a great opportunity to scoop up some shares.
Should you invest $1,000 in Hercules Capital right now?
Before you buy stock in Hercules Capital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Hercules Capital 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
Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When a start-up is first getting off the ground, the founders may turn to outside investors such as venture capital (VC) or private equity firms to raise funding. Debt is a non-dilutive investment vehicle and can be useful for a business that is no longer burning cash but still needs a bridge before it can become fully self-funded or tap less costly capital. Moreover, so long as the company is confident in its ability to generate sufficient cash flow to pay down the loan, these transactions can make a lot of sense.
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Over the past decade, Hercules stock has a total return of nearly 160%. Another aspect of Hercules' business is that its deals typically carry stock warrants, giving it the option to buy an equity stake. Before you buy stock in Hercules Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Hercules Capital wasn't one of them.
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Should you buy Hercules Capital stock? Before you buy stock in Hercules Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Hercules Capital wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Adam Spatacco has no position in any of the stocks mentioned.
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While many different types of companies pay dividends, one of the more generous types is business development companies (BDCs). What makes Hercules Capital Unique? Before you buy stock in Hercules Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Hercules Capital wasn't one of them.
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713157.0
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2023-12-12 00:00:00 UTC
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Airbus in 'advanced' talks with Atos over unit BDS -Le Figaro
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https://www.nasdaq.com/articles/airbus-in-advanced-talks-with-atos-over-unit-bds-le-figaro
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Adds Airbus comment in paragraph 4
Dec 15 (Reuters) - Airbus AIR.PA, the world's biggest planemaker, is in "advanced" talks with Atos' ATOS.PA over the IT consulting firm's cybersecurity division BDS, French newspaper Le Figaro reported on Thursday, prompting Atos' shares to rise.
Airbus and Atos' board of directors are holding "bilateral talks", Le Figaro added, citing sources.
In late March, Airbus said it had decided not to make an offer for a 29.9% stake in Atos' division Evidian, which was renamed Eviden. BDS is part of Eviden.
Airbus said it did not comment on market rumours. Atos declined to comment.
Even as it pulled out of the Eviden deal in March, Airbus CEO Guillaume Faury said it was still open to a strategic partnership with Atos.
Faury had previously said that a deal would make sense because aerospace was increasingly driven by big data, connectivity and high-power computing.
The stumbling block on Atos is one of the reasons Airbus opted to reorganise itself from 2024, industry sources have said, leaving Faury free to focus on defence and space strategy with Christian Scherer taking over the planemaking arm.
Airbus is concerned that its position in an increasingly software-focused defence industry would be at risk if the Atos activities were absorbed by a rival such as Thales TCFP.PA, one of the sources said.
Thales has denied being interested in buying a stake in Eviden.
(Reporting by Tim Hepher, Mathieu Rosemain and Michal Aleksandrowicz in Gdansk; editing by Jason Neely)
((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Faury had previously said that a deal would make sense because aerospace was increasingly driven by big data, connectivity and high-power computing. The stumbling block on Atos is one of the reasons Airbus opted to reorganise itself from 2024, industry sources have said, leaving Faury free to focus on defence and space strategy with Christian Scherer taking over the planemaking arm. Airbus is concerned that its position in an increasingly software-focused defence industry would be at risk if the Atos activities were absorbed by a rival such as Thales TCFP.PA, one of the sources said.
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Adds Airbus comment in paragraph 4 Dec 15 (Reuters) - Airbus AIR.PA, the world's biggest planemaker, is in "advanced" talks with Atos' ATOS.PA over the IT consulting firm's cybersecurity division BDS, French newspaper Le Figaro reported on Thursday, prompting Atos' shares to rise. Airbus and Atos' board of directors are holding "bilateral talks", Le Figaro added, citing sources. Even as it pulled out of the Eviden deal in March, Airbus CEO Guillaume Faury said it was still open to a strategic partnership with Atos.
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Adds Airbus comment in paragraph 4 Dec 15 (Reuters) - Airbus AIR.PA, the world's biggest planemaker, is in "advanced" talks with Atos' ATOS.PA over the IT consulting firm's cybersecurity division BDS, French newspaper Le Figaro reported on Thursday, prompting Atos' shares to rise. In late March, Airbus said it had decided not to make an offer for a 29.9% stake in Atos' division Evidian, which was renamed Eviden. The stumbling block on Atos is one of the reasons Airbus opted to reorganise itself from 2024, industry sources have said, leaving Faury free to focus on defence and space strategy with Christian Scherer taking over the planemaking arm.
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Adds Airbus comment in paragraph 4 Dec 15 (Reuters) - Airbus AIR.PA, the world's biggest planemaker, is in "advanced" talks with Atos' ATOS.PA over the IT consulting firm's cybersecurity division BDS, French newspaper Le Figaro reported on Thursday, prompting Atos' shares to rise. In late March, Airbus said it had decided not to make an offer for a 29.9% stake in Atos' division Evidian, which was renamed Eviden. Even as it pulled out of the Eviden deal in March, Airbus CEO Guillaume Faury said it was still open to a strategic partnership with Atos.
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ac082490-0b0d-4035-8677-e9256e679bd4
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713158.0
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2023-12-12 00:00:00 UTC
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Will this year's top performing stock ETFs stay hot in '24?
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https://www.nasdaq.com/articles/will-this-years-top-performing-stock-etfs-stay-hot-in-24
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Will this year's top-performing stock ETFs stay hot in '24?
In movies, it was Everything Everywhere All at Once. In music, Bonnie Raitt’s “Just Like That.” In sports, Spain won the FIFA Women’s World Cup.
This year’s pop culture winners have included plenty of surprises.
The same can be said about U.S. equities.
Stocks brushed aside rampant inflation and rising interest rates to produce what many consider to be a surprisingly strong year. Barring an appearance from Scrooge, the S&P 500 will finish 2023 with a total return of at least 20%. It would mark the fourth time in the last five years that the index has posted high double-digit percent gains. Resilient to say the least given the recent mix of macroeconomic and geopolitical headwinds.
If the capital markets hosted an Oscars-style award show, there would be plenty of worthy nominees. Mega-cap technology, a group that typically underperforms in a rising rate environment, is crushing it. Growth stocks, which typically lag when inflation is high, are vastly outperforming. So are a bunch of emerging investment themes like artificial intelligence (AI), cybersecurity and digital currencies.
Which brings up an important question for investors heading into 2024: will this year’s disconnect between economic conditions and asset class outperformance persist? Or will we see a more normalized investment setting where value and defensive sectors attract more buyers?
The good news is that if there is a clear market rotation, it won’t happen overnight. This means shareholders in these three top performing exchange traded funds (ETFs) will have an opportunity to secure gains — and move on to be the potential trophy winners of 2024.
#1 - ARKK
This year has been sweet revenge for ARK Innovation ETF (NYSEARCA: ARKK) manager Cathie Wood. The widely followed fund is up 55% year-to-date after suffering a 67% decline in 2022. Thanks to a drastic shift in market sentiment towards high-risk tech names, last year’s worst-performing stocks have turned into some of this year’s best.
Top ARKK holding Coinbase Global is up 300% amid optimism around an upcoming Bitcoin ETF launch. Roku, the fund’s second-largest position, is up 140% on rising subscribers and an anticipated rebound in digital advertising demand (boosted by the election cycle). Meta Platforms, Palantir Technologies and Shopify have also more than doubled in 2023.
The encouraging news for Aunt Cathie loyalists is that most ARKK stocks are still trading well below their all-time highs. At 10.6% of the ETF, Coinbase will be a big driver of future performance. The crypto trading platform (and former $400 stock) is one of the most polarizing names on Wall Street with seven analysts calling it a buy and seven a sell. Street sentiment around Roku is more bullish. What looms large, however, is that both Coinbase and Roku have significant downside based on their respective consensus price targets.
#2 - FBCG
The Fidelity Blue Chip Growth ETF (BATS: FBCG) has been in the right place at the right time. Up 53% so far this year, the fund has benefitted from investors’ increased appetite for familiar tech leaders — and some unlikely heroes. While mega-caps like NVIDIA and Meta Platforms have been major return contributors, so have companies like Abercrombie & Fitch, DraftKings and Uber Technologies. The ETF has also gotten a big boost from owning Moonlake Immunotherapeutics, a mid-cap biotech that is up more than 400% year-to-date.
Whether FBCG can outperform in 2024 will depend heavily on Microsoft, Apple, NVIDIA and Amazon. Together, these stocks account for 40% of the portfolio compared to roughly 20% in the S&P 500. Although the fund is well diversified with about 150 holdings, it is quite top-heavy. Prospective investors should also be aware that the fund isn’t cheap — the expense ratio is 0.59%. There are less expensive and less concentrated ways to ride the growth train.
#3 - VCAR
The Simplify Volt RoboCar Disruption and Tech ETF (NYSEARCA: VCAR) is a thinly traded thematic ETF, but one that has performed extremely well. It invests in leading disruptive companies in the autonomous vehicle space, such as Advanced Micro Devices, Tesla and Lemonade. What’s also unique about the fund is that it “enhances” its highest conviction bets through an options overlay strategy. It is an approach that has served shareholders well, with the ETF up 54% this year.
The expense ratio is high at 0.99%, but VCAR has a surprisingly high dividend yield (3.3%) which makes this easier to swallow. The self-driving car story has been accompanied by much hype — but also much doubt. This week, Barron’s called the space a popped bubble. Robotaxis may be the future, but after a huge run-up this year, its biggest proponents will have a lot to prove in 2024. Trading well below its $19.43 peak, VCAR is a high-risk play in a nascent, regulatory-challenged industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Which brings up an important question for investors heading into 2024: will this year’s disconnect between economic conditions and asset class outperformance persist? This means shareholders in these three top performing exchange traded funds (ETFs) will have an opportunity to secure gains — and move on to be the potential trophy winners of 2024. Roku, the fund’s second-largest position, is up 140% on rising subscribers and an anticipated rebound in digital advertising demand (boosted by the election cycle).
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Thanks to a drastic shift in market sentiment towards high-risk tech names, last year’s worst-performing stocks have turned into some of this year’s best. Top ARKK holding Coinbase Global is up 300% amid optimism around an upcoming Bitcoin ETF launch. The Simplify Volt RoboCar Disruption and Tech ETF (NYSEARCA: VCAR) is a thinly traded thematic ETF, but one that has performed extremely well.
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This means shareholders in these three top performing exchange traded funds (ETFs) will have an opportunity to secure gains — and move on to be the potential trophy winners of 2024. Thanks to a drastic shift in market sentiment towards high-risk tech names, last year’s worst-performing stocks have turned into some of this year’s best. The Simplify Volt RoboCar Disruption and Tech ETF (NYSEARCA: VCAR) is a thinly traded thematic ETF, but one that has performed extremely well.
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Growth stocks, which typically lag when inflation is high, are vastly outperforming. At 10.6% of the ETF, Coinbase will be a big driver of future performance. The Simplify Volt RoboCar Disruption and Tech ETF (NYSEARCA: VCAR) is a thinly traded thematic ETF, but one that has performed extremely well.
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c41a8f8c-bec2-49eb-8029-c78f7f7c65d0
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713159.0
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2023-12-12 00:00:00 UTC
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2 Reasons to Buy Amazon, 1 Reason to Sell
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https://www.nasdaq.com/articles/2-reasons-to-buy-amazon-1-reason-to-sell
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Up 75% in 2023, Amazon (NASDAQ: AMZN) stock is once again on fire. Amazon was already a giant at the start of the year, but the company added a staggering $680 billion in market cap this year alone.
For comparison, that's more than the total market cap of McDonald's ($212 billion), Netflix ($206 billion), and Bank of America ($244 billion) -- combined.
At any rate, investors want to know whether this amazing run will continue. Here are two reasons why it should, and one reason why it may come to a screeching halt.
Image source: Getty Images.
Amazon is the world's top brand
Topping the reasons why it's time to buy Amazon is the company's fantastic brand recognition. According to research firm Brand Finance, Amazon is the most valuable brand in the world today.
That gives the company an enormous leg up as it competes with other corporate giants across multiple industries: Microsoft and Alphabet in the cloud services market, Walmart, Costco, and Target in retail and e-commerce, Disney, Apple, and Netflix in video streaming, and Meta Platforms in digital advertising.
In short, Amazon, thanks to its relentless focus on its customers, has built a brand unlike any other. And that's not easy to find.
Amazon's new leader has shown he can deliver big profits
Whenever a legendary founder or chief executive officer steps down, the new leader must prove themselves. Such was the case for Amazon CEO Andy Jassy. After hitting an all-time high just days after Jeff Bezos retired in July 2021, Amazon shares tumbled in the first 18 months of Jassy's reign. Ultimately, the stock bottomed out in late December 2022, down more than 56%.
However, as noted earlier, the stock has enjoyed a terrific run this year. So what changed? In short, Amazon's profits have come roaring back. Under Jassy's leadership, the company instituted a major cost-cutting initiative, including:
Reducing its workforce by 27,000.
Canceling or delaying key infrastructure projects (such as a second phase of its HQ2 in Virginia).
Utilizing 750,000 robots at Amazon fulfillment centers.
As a result, Amazon's net profit surged. Net income over the last 12 months stands at $20 billion. That's a complete turnaround from late 2022 when net income had slipped into the red. Similarly, Amazon's free cash flow bounced back, thus providing the company additional resources to spend on paying down debt, capital expenditures, or share repurchases.
Reason to sell: AWS growth is slowing
Despite its rock-solid brand and soaring profitability, one dark cloud is on the horizon for Amazon: Its chief growth engine is losing steam.
Amazon Web Services (AWS) is the world's leading cloud services provider. In its most recent quarter (the three months ending on Sept. 30, 2023), AWS generated $23.1 billion in revenue.
The problem? The growth rate for AWS is in steady decline. In fact, it has now declined or been flat in each of the last eight quarters, falling from 40% growth in Q4 2021 to 12% growth in Q3 2023.
Even more concerning, Amazon's competitors are gaining ground. Microsoft's cloud unit Azure reported 29% annual growth in its most recent quarter. Alphabet, the parent company of Google Cloud, registered 22% year-over-year growth.
As those competitors take market share in the lucrative cloud services market, Amazon's margins will come under pressure -- perhaps eating away at the company's overall profitability.
Find more statistics at Statista
Despite the slowing growth, Amazon remains a well-run company with a sterling brand. And while AWS' sagging growth is worth monitoring, investors shouldn't throw the baby out with the bathwater. Amazon is still a fantastic stock to own.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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. Jake Lerch has positions in Alphabet, Amazon, McDonald's, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Target, Walmart, and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That gives the company an enormous leg up as it competes with other corporate giants across multiple industries: Microsoft and Alphabet in the cloud services market, Walmart, Costco, and Target in retail and e-commerce, Disney, Apple, and Netflix in video streaming, and Meta Platforms in digital advertising. Similarly, Amazon's free cash flow bounced back, thus providing the company additional resources to spend on paying down debt, capital expenditures, or share repurchases. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Target, Walmart, and Walt Disney.
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For comparison, that's more than the total market cap of McDonald's ($212 billion), Netflix ($206 billion), and Bank of America ($244 billion) -- combined. 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. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Target, Walmart, and Walt Disney.
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Amazon is the world's top brand Topping the reasons why it's time to buy Amazon is the company's fantastic brand recognition. 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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Reason to sell: AWS growth is slowing Despite its rock-solid brand and soaring profitability, one dark cloud is on the horizon for Amazon: Its chief growth engine is losing steam. 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. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Target, Walmart, and Walt Disney.
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713160.0
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2023-12-12 00:00:00 UTC
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1 Ultra-High Dividend Yield Stock to Buy Hand Over Fist in 2024
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https://www.nasdaq.com/articles/1-ultra-high-dividend-yield-stock-to-buy-hand-over-fist-in-2024
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Investors who are looking for growth in their portfolio may be captivated by technology stocks, especially given all of the recent hoopla around artificial intelligence (AI). But portfolio construction requires balance, and one of the pillars of a well-diversified portfolio is dividend stocks.
Business development companies (BDCs) can be a great source of dividend income, in part because they are required to pay out at least 90% of their taxable income each year as dividends.
One leading BDC that has consistently outperformed the S&P 500 is Ares Capital (NASDAQ: ARCC). With the shares trading at about $20, its dividend yield is now 9.5%, making this an opportune time to open a position and set yourself up to reap the passive income rewards.
What makes Ares Capital different?
Ares Capital sits in a unique position in the BDC world. BDCs typically compete with banks and even venture capital or private equity funds depending on the deal structure. However, most investment banks typically seek out high-profile companies and offer them a variety of solutions pertaining to mergers and acquisitions, raising capital through the equity markets, or borrowing money via the debt markets.
In contrast to many large financial institutions, Ares works with a lot of middle-market companies that may be underserved by traditional capital providers. Even among its peers, this approach is unusual. Leading BDCs such as Hercules Technology Growth Capital or Horizon Technology Finance tend to partner with the best start-ups in growth industries such as energy, life sciences, and technology.
By taking a different approach, Ares is not only carving out a niche in the world of BDCs, but it has found a way to tap into the types of activities usually handled by traditional investment banks.
Image Source: Getty Images
An under-the-radar Warren Buffett stock
One of the core principles of Warren Buffett's investment philosophy is to seek out dividend income. Within the Berkshire Hathaway portfolio, some of the largest dividend generators include Apple, Coca-Cola, and Bank of America. But did you know Buffett has a little-known portfolio outside of Berkshire Hathaway?
The investment firm New England Asset Management (NEAM) is a subsidiary of Berkshire Hathaway. While NEAM is much smaller than its parent in terms of total assets, its portfolio contains a larger number of stocks -- one of which is none other than Ares Capital.
Data source: YCharts.
Given the company's steadily increasing dividend over the past 10 years and its eye-popping total returns of 195%, it's easy to understand why Buffett loves this multibagger stock.
Should you buy Ares Capital stock?
From a valuation perspective, a useful measure for assessing Ares Capital stock is the price-to-book (P/B) ratio. It's a metric commonly used in analyzing banks and other financial services businesses.
Data source: YCharts.
The P/B ratio for Ares Capital is currently 1.06, right in line with its 10-year average. But perhaps more interesting is that it's well below its peak of 1.47. Moreover, that valuation also pales in comparison to those of Hercules Technology Growth Capital and Horizon Technology Finance, which have P/B ratios of more than 1.2.
Data source: YCharts.
The chart above shows the return of Ares Capital stock relative to a number of S&P 500-themed exchange-traded funds (ETFs) over the past five years. Investors can clearly see that Ares Capital is the top-performing equity. Given its discount relative to other leading BDCs and its low valuation compared to past periods, this looks like a bargain opportunity to consider buying some shares in this market-beating dividend payer.
Should you invest $1,000 in Ares Capital right now?
Before you buy stock in Ares Capital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By taking a different approach, Ares is not only carving out a niche in the world of BDCs, but it has found a way to tap into the types of activities usually handled by traditional investment banks. Given the company's steadily increasing dividend over the past 10 years and its eye-popping total returns of 195%, it's easy to understand why Buffett loves this multibagger stock. Given its discount relative to other leading BDCs and its low valuation compared to past periods, this looks like a bargain opportunity to consider buying some shares in this market-beating dividend payer.
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Leading BDCs such as Hercules Technology Growth Capital or Horizon Technology Finance tend to partner with the best start-ups in growth industries such as energy, life sciences, and technology. Moreover, that valuation also pales in comparison to those of Hercules Technology Growth Capital and Horizon Technology Finance, which have P/B ratios of more than 1.2. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them.
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Should you buy Ares Capital stock? Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Should you buy Ares Capital stock? Should you invest $1,000 in Ares Capital right now? Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them.
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713161.0
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2023-12-12 00:00:00 UTC
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INTU, NOW, MNDY: Which Enterprise Software Stock is the Best Buy?
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https://www.nasdaq.com/articles/intu-now-mndy%3A-which-enterprise-software-stock-is-the-best-buy
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Enterprise software stocks have been in rally mode again, and it's not hard to imagine why. In addition to clocking in better-than-expected quarters, these software plays stand to benefit greatly from artificial intelligence (AI) and its productivity-enhancing effects in the workplace.
Undoubtedly, Microsoft (NASDAQ:MSFT) is the enterprise software kingpin that's shown us all how to effectively turn cutting-edge AI tech into profits. In 2024, I'd look for other enterprise software players, like INTU, NOW, and MNDY, to take a page from its AI playbook. And that entails more than merely "sprinkling" a bit of AI across various software platforms. It may change how workers use enterprise applications to get jobs done faster and more accurately.
It's an exciting time to be an investor and an even more exciting time to be in enterprise stocks while they're still viewed favorably by the Wall Street community. Therefore, let's check in with TipRanks' Comparison Tool to see where the previously mentioned trio of workplace software stocks stand going into the new year.
Intuit (NASDAQ:INTU)
Intuit is quickly becoming one of my favorite workplace software companies to benefit from AI's rise. The company behind hit accounting software Quickbooks and its more mature TurboTax tax-preparation software has been staying innovative to protect its corner of the software market.
The stock has been soaring since bottoming out late last year. Year-to-date, it's up a whopping 52%, thanks in part to strong recent quarters (the latest quarter saw adjusted earnings per share of $2.47 vs. the $1.98 consensus) and hopes for AI-driven growth in the near future.
Undoubtedly, Intuit already has a relationship with a slew of small businesses out there. As it improves its platform and looks to empower its users to do more with less with the help of AI, I view Intuit's QuickBooks platform as one of those indispensable value-adding software platforms poised for impressive growth. For this reason, I'm staying bullish on the stock alongside the Wall Street crowd.
Furthermore, Intuit seems closer to turning AI innovation into actual cash flows, at least closer than some other firms out there that are merely "dabbling" with the technology. Tax preparation and accounting seem like fields that could be vastly improved with the help of AI.
One of the new AI features coming to its tax offering is AI analysis of one's return. Tax lingo can be tough for many to deal with. With some AI, it's suddenly crystal clear. That's a big deal -- one that leads me to believe that the 37.2 times forward price-to-earnings (P/E), roughly in line with the application software industry average of 36, is not high enough.
What's the Price Target on INTU Stock?
Intuit stock is a Strong Buy, according to analysts, with 16 Buys and three Holds assigned in the past three months. The average INTU stock price target of $623.82 implies 3.8% upside potential.
ServiceNow (NASDAQ:NOW)
ServiceNow is another powerful enterprise software company that's been on a hot run of late, now up 76.5% year-to-date and 102% off its lows of last year, to hit a new all-time high of over $720 just yesterday. Solid quarterly results and increased enthusiasm over the company's role in the AI race are big reasons many analysts have been in a hurry to upgrade the stock. I stand with analysts and am staying bullish on shares heading into 2024.
Most recently, UBS Securities hiked NOW stock's price target to $820 from $650. Why the huge hike? UBS analysts are factoring in the company's Pro+ AI SKU into its financial models, and it sees the technology playing a larger role in the growth story, moving forward. Indeed, UBS is right on the money. Enterprise software (or ITSM in the case of ServiceNow) plus cutting-edge AI tech seem like the perfect formula for growth.
Going into 2024, we'll gain a glimpse of just how much of an impact AI can have on ServiceNow's fundamentals. I have a feeling UBS may need to upgrade its target again in the new year as the company looks to unleash the power of its platform.
Of all the enterprise tech firms embracing AI, ServiceNow may be the one that does it best. Even near highs and a now-lofty 56.5 times forward price-to-earnings multiple, I still don't think the stock is absurdly valued in the slightest.
What's the Price Target on NOW Stock?
NOW stock is a Strong Buy, according to analysts, with 28 Buys and one Hold assigned in the past three months. The average NOW stock price target of $681.62 implies that shares are fairly valued at the moment.
Monday.com (NASDAQ:MNDY)
Last but not least, we have Monday.com, a workplace project management platform that's starting to pick up traction after getting clobbered severely during its 2021-22 sell-off, which saw shares shed more than 78% from peak to trough.
So far this year, the stock is up 59%, a minor rally relative to the implosion in the rear-view mirror. After increasing its full-year outlook and winning some fans from the analyst community, it seems that the Israel-based enterprise tech firm is ready to continue its recovery in the new year. Given this, I find it hard not to be bullish.
For the full year, Monday.com expects 2023 sales in the $723-725 million range, up from $713 million. Also, adjusted operating income is now expected to be in the $47-49 million ballpark, up from $24-28 million. That's quite a hefty jump on the bottom line.
Last month, DA Davidson upgraded shares to Buy, also remarking on the "geopolitical risk" of the Israeli firm. With "strong cash generation," as outlined by DA Davidson, and a modest multiple, Monday.com stock certainly seems like one of the workplace software plays to keep watch of in the new year as we look for AI innovation to take center stage.
What's the Price Target on MNDY Stock?
MNDY stock is a Strong Buy, according to analysts, with 13 Buys and two Holds assigned in the past three months. The average MNDY stock price target of $211.21 implies 10.7% upside potential.
The Bottom Line
Enterprise software stocks are full of potential going into the new year as they look to turn AI innovation into real cash flows. Of the trio of names presented in this piece, Monday.com holds the most upside potential (10.7%). At this juncture, I think it's the best buy of the batch.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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UBS analysts are factoring in the company's Pro+ AI SKU into its financial models, and it sees the technology playing a larger role in the growth story, moving forward. Monday.com (NASDAQ:MNDY) Last but not least, we have Monday.com, a workplace project management platform that's starting to pick up traction after getting clobbered severely during its 2021-22 sell-off, which saw shares shed more than 78% from peak to trough. With "strong cash generation," as outlined by DA Davidson, and a modest multiple, Monday.com stock certainly seems like one of the workplace software plays to keep watch of in the new year as we look for AI innovation to take center stage.
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The average INTU stock price target of $623.82 implies 3.8% upside potential. The average MNDY stock price target of $211.21 implies 10.7% upside potential. The Bottom Line Enterprise software stocks are full of potential going into the new year as they look to turn AI innovation into real cash flows.
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Intuit stock is a Strong Buy, according to analysts, with 16 Buys and three Holds assigned in the past three months. With "strong cash generation," as outlined by DA Davidson, and a modest multiple, Monday.com stock certainly seems like one of the workplace software plays to keep watch of in the new year as we look for AI innovation to take center stage. The Bottom Line Enterprise software stocks are full of potential going into the new year as they look to turn AI innovation into real cash flows.
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Most recently, UBS Securities hiked NOW stock's price target to $820 from $650. I have a feeling UBS may need to upgrade its target again in the new year as the company looks to unleash the power of its platform. The Bottom Line Enterprise software stocks are full of potential going into the new year as they look to turn AI innovation into real cash flows.
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2023-12-12 00:00:00 UTC
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How Confident Should Nvidia Investors Be Heading Into 2024?
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https://www.nasdaq.com/articles/how-confident-should-nvidia-investors-be-heading-into-2024
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Backing Nvidia (NASDAQ:NVDA), the leading chip manufacturer in the generative AI boom, has proven lucrative in 2023. The company’s H100 and A100 chips are in high demand. And while these chips may face competition from AMD’s (NASDAQ:AMD) promising new chips, NVDA stock is launching its H200 chips, an upgrade to the H100. These chips are expected to be commercially available in Q2 2024.
Both companies competed for market share in the sector. Nvidia’s H100 chips have been in high demand. AMD stock has remained resilient, indicating the market’s recognition of AMD as a strong competitor. Investing in both Nvidia and AMD offered potential gains in the generative AI and large language models space.
That said, investors might be wondering, is NVDA a buy now? Let’s look into the numbers and recent updates on the company.
Possible Stock Split
Nvidia has undergone five stock splits, with the latest being a four-for-one split in July 2021, proving successful. Announced when shares were $560, NVDA stock surged past $800 the following month. Two years later, Nvidia shares surpassed $400 again, surging to more than $500 per share a few months ago.
Presently, Nvidia shares carry a higher price tag compared to most mega-cap peers, exceeded only by only a few massive American companies by market cap.
Regardless of stock splits, Nvidia remains a leading company in AI innovation, driven by high demand for its H100 GPUs. Tech giants like Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) recently acquired over 150,000 units of Nvidia’s chips this year, leading to prolonged delivery wait times. Wall Street anticipates Nvidia’s revenue to double to $90 billion next year.
These stock splits indicate just how fast Nvidia has grown in recent years. However, such companies always warrant caution from value-based investors given the heightened valuation multiples such companies often trade at.
Plans for Expansion in Vietnam
Nvidia CEO Jensen Huang announced plans to enhance partnerships with Vietnam’s leading tech firms, emphasizing AI talent development and digital infrastructure improvement during his first visit to Hanoi. Huang expressed interest in establishing a second Nvidia base in Vietnam.
Having invested $250 million in Vietnam, Nvidia collaborated with top companies to advance AI in cloud, automotive, and healthcare sectors. This commitment also aids supply chain diversification and aligns with deepening U.S.-Vietnam diplomatic relations amid U.S.-China tensions. Nvidia shares, having tripled in value this year, were 1.7% lower on Monday morning.
Nvidia’s Valuation Is High, But Not Crazy
Nvidia’s current price-to-sales ratio is higher than in late 2022, but its current multiple of 25-times is still below its longer-term average. The company’s recent top-line growth acceleration contributed to a decline in this ratio.
Additionally, Nvidia’s trailing price-to-earnings (P/E) ratio of 61-times is slightly lower than the 2022 year-end multiple of 62-times and well below its five-year average of 77-times. Considering Nvidia’s growth in the past and ongoing fiscal year, buying this stock remains a compelling option for long-term investors.
Nvidia concluded fiscal 2023 with a flat revenue of $27 billion. In the first three quarters of fiscal 2024, it achieved almost $39 billion, an 85% YoY increase. The Q4 revenue guidance of $20 billion suggests a potential year-end total of $59 billion, marking a significant 118% rise from fiscal 2023.
Nvidia is currently growing much faster than the previous year, justifying its valuation with rapid revenue and earnings growth. Notably, the stock’s forward sales and earnings multiples are more favorable.
Buy NVDA Stock, But Be Smart About It
Surging demand for Nvidia’s AI graphics cards is driving growth. Despite supply constraints, the company increased production each quarter in the past year and plans to triple the flagship H100 AI GPU’s output next year. A more powerful chip is also in the works, indicating potential for further revenue acceleration.
Meeting analysts’ forecasts with $90 billion in revenue next year, Nvidia’s market cap could reach $1.8 trillion, representing a potential 60% increase. Investors contemplating buying this AI stock may find an opportune moment before further potential jumps. I’d recommend waiting for dips before entering this stock, as it is pricey. But over the long-term, there’s a reason why investors have been rewarded for owning this name.
On the date of publication, Chris MacDonald has a LONG position in META. 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 How Confident Should Nvidia Investors Be Heading Into 2024? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Presently, Nvidia shares carry a higher price tag compared to most mega-cap peers, exceeded only by only a few massive American companies by market cap. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Backing Nvidia (NASDAQ:NVDA), the leading chip manufacturer in the generative AI boom, has proven lucrative in 2023. Regardless of stock splits, Nvidia remains a leading company in AI innovation, driven by high demand for its H100 GPUs. Considering Nvidia’s growth in the past and ongoing fiscal year, buying this stock remains a compelling option for long-term investors.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Backing Nvidia (NASDAQ:NVDA), the leading chip manufacturer in the generative AI boom, has proven lucrative in 2023. Regardless of stock splits, Nvidia remains a leading company in AI innovation, driven by high demand for its H100 GPUs. Considering Nvidia’s growth in the past and ongoing fiscal year, buying this stock remains a compelling option for long-term investors.
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The company’s H100 and A100 chips are in high demand. And while these chips may face competition from AMD’s (NASDAQ:AMD) promising new chips, NVDA stock is launching its H200 chips, an upgrade to the H100. Considering Nvidia’s growth in the past and ongoing fiscal year, buying this stock remains a compelling option for long-term investors.
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713163.0
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2023-12-12 00:00:00 UTC
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Evolution Petroleum (EPM) Stock Falls Amid Market Uptick: What Investors Need to Know
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https://www.nasdaq.com/articles/evolution-petroleum-epm-stock-falls-amid-market-uptick%3A-what-investors-need-to-know
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The most recent trading session ended with Evolution Petroleum (EPM) standing at $5.93, reflecting a -0.17% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.27%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.19%.
The the stock of oil and gas company has risen by 1.19% in the past month, leading the Oils-Energy sector's loss of 1.25% and undershooting the S&P 500's gain of 6.94%.
Analysts and investors alike will be keeping a close eye on the performance of Evolution Petroleum in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.12, indicating a 58.62% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.54 million, down 30.12% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.42 per share and revenue of $92.65 million. These totals would mark changes of -58.42% and -27.91%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Evolution Petroleum. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 28.45% lower. Currently, Evolution Petroleum is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Evolution Petroleum is currently trading at a Forward P/E ratio of 14.31. This denotes a premium relative to the industry's average Forward P/E of 8.33.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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Evolution Petroleum Corporation, Inc. (EPM) : 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 the stock of oil and gas company has risen by 1.19% in the past month, leading the Oils-Energy sector's loss of 1.25% and undershooting the S&P 500's gain of 6.94%. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.42 per share and revenue of $92.65 million. Over the past month, the Zacks Consensus EPS estimate has moved 28.45% lower. Click to get this free report Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.42 per share and revenue of $92.65 million. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups.
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The most recent trading session ended with Evolution Petroleum (EPM) standing at $5.93, reflecting a -0.17% shift from the previouse trading day's closing. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.42 per share and revenue of $92.65 million. Over the past month, the Zacks Consensus EPS estimate has moved 28.45% lower.
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cdbf00c4-6e3f-4e14-96ac-0e0390862e14
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713164.0
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2023-12-12 00:00:00 UTC
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Lennar (LEN) Reports Q4 Earnings: What Key Metrics Have to Say
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DCOMP
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https://www.nasdaq.com/articles/lennar-len-reports-q4-earnings%3A-what-key-metrics-have-to-say
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nan
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nan
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For the quarter ended November 2023, Lennar (LEN) reported revenue of $10.97 billion, up 7.8% over the same period last year. EPS came in at $5.17, compared to $5.02 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $10.34 billion, representing a surprise of +6.09%. The company delivered an EPS surprise of +11.42%, with the consensus EPS estimate being $4.64.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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 Lennar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Active Communities - Total: 1,260 compared to the 1,294 average estimate based on five analysts.
Deliveries - Average sales price - Total: $441 compared to the $447.29 average estimate based on five analysts.
New orders - Homes: 17,366 versus the four-analyst average estimate of 16,883.
Deliveries - Homes: 23,795 versus 22,066 estimated by four analysts on average.
Backlog - Homes: 14,892 compared to the 16,138 average estimate based on four analysts.
Revenue- Financial Services: $304.69 million versus $272.87 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +32.1% change.
Revenue- Homebuilding- Sales of homes: $10.44 billion compared to the $9.88 billion average estimate based on six analysts. The reported number represents a change of +8.2% year over year.
Revenue- Multifamily: $140.82 million compared to the $163.94 million average estimate based on five analysts. The reported number represents a change of -21.4% year over year.
Revenue- Homebuilding- Sales of land: $63.50 million versus the four-analyst average estimate of $23.52 million. The reported number represents a year-over-year change of -19.8%.
Revenue- Homebuilding: $10.52 billion versus the three-analyst average estimate of $9.91 billion. The reported number represents a year-over-year change of +8%.
Revenue- Lennar Other: $6.62 million versus the three-analyst average estimate of $12.30 million. The reported number represents a year-over-year change of -71%.
Revenue- Homebuilding- Other homebuilding: $9.70 million compared to the $12.24 million average estimate based on two analysts.
View all Key Company Metrics for Lennar here>>>
Shares of Lennar have returned +14.4% over the past month versus the Zacks S&P 500 composite's +6.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Lennar Corporation (LEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the quarter ended November 2023, Lennar (LEN) reported revenue of $10.97 billion, up 7.8% over the same period last year. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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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. Deliveries - Average sales price - Total: $441 compared to the $447.29 average estimate based on five analysts. Revenue- Homebuilding- Sales of homes: $10.44 billion compared to the $9.88 billion average estimate based on six analysts.
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Here is how Lennar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Active Communities - Total: 1,260 compared to the 1,294 average estimate based on five analysts. Revenue- Multifamily: $140.82 million compared to the $163.94 million average estimate based on five analysts. Revenue- Homebuilding- Other homebuilding: $9.70 million compared to the $12.24 million average estimate based on two analysts.
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The reported revenue compares to the Zacks Consensus Estimate of $10.34 billion, representing a surprise of +6.09%. Here is how Lennar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Active Communities - Total: 1,260 compared to the 1,294 average estimate based on five analysts. Revenue- Lennar Other: $6.62 million versus the three-analyst average estimate of $12.30 million.
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443492d0-d9b6-4355-910e-55c0226e22b5
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713165.0
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2023-12-12 00:00:00 UTC
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Ezcorp (EZPW) Gains But Lags Market: What You Should Know
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DCOMP
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https://www.nasdaq.com/articles/ezcorp-ezpw-gains-but-lags-market%3A-what-you-should-know-0
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nan
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nan
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In the latest market close, Ezcorp (EZPW) reached $8.91, with a +0.11% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.27%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.19%.
The consumer financial services company's shares have seen an increase of 3.37% over the last month, not keeping up with the Finance sector's gain of 10.49% and the S&P 500's gain of 6.94%.
Analysts and investors alike will be keeping a close eye on the performance of Ezcorp in its upcoming earnings disclosure. In that report, analysts expect Ezcorp to post earnings of $0.31 per share. This would mark year-over-year growth of 10.71%. In the meantime, our current consensus estimate forecasts the revenue to be $303.66 million, indicating a 14.88% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.97 per share and revenue of $1.19 billion, indicating changes of +5.43% and +13.1%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Ezcorp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ezcorp presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Ezcorp is holding a Forward P/E ratio of 9.18. This expresses a premium compared to the average Forward P/E of 9.15 of its industry.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
EZCORP, Inc. (EZPW) : 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 the meantime, our current consensus estimate forecasts the revenue to be $303.66 million, indicating a 14.88% growth compared to the corresponding quarter of the prior year. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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In the meantime, our current consensus estimate forecasts the revenue to be $303.66 million, indicating a 14.88% growth compared to the corresponding quarter of the prior year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.97 per share and revenue of $1.19 billion, indicating changes of +5.43% and +13.1%, respectively, compared to the previous year. Click to get this free report EZCORP, Inc. (EZPW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.97 per share and revenue of $1.19 billion, indicating changes of +5.43% and +13.1%, respectively, compared to the previous year. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
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In the latest market close, Ezcorp (EZPW) reached $8.91, with a +0.11% movement compared to the previous day. In the meantime, our current consensus estimate forecasts the revenue to be $303.66 million, indicating a 14.88% growth compared to the corresponding quarter of the prior year. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% of all 250+ industries.
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9a9f49ed-613b-4950-a6b4-e29ed0177a3e
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713166.0
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2023-12-12 00:00:00 UTC
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Dynatrace (DT) Stock Declines While Market Improves: Some Information for Investors
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DCOMP
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https://www.nasdaq.com/articles/dynatrace-dt-stock-declines-while-market-improves%3A-some-information-for-investors
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nan
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nan
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The most recent trading session ended with Dynatrace (DT) standing at $54.63, reflecting a -0.04% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.27% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.19%.
Shares of the software intellegence company witnessed a gain of 7.24% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.93% and the S&P 500's gain of 6.94%.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.28, marking a 12% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $357.55 million, reflecting a 20.2% rise from the equivalent quarter last year.
DT's full-year Zacks Consensus Estimates are calling for earnings of $1.11 per share and revenue of $1.41 billion. These results would represent year-over-year changes of +14.43% and +22.13%, respectively.
Investors might also notice recent changes to analyst estimates for Dynatrace. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dynatrace is currently a Zacks Rank #3 (Hold).
In the context of valuation, Dynatrace is at present trading with a Forward P/E ratio of 49.23. This expresses a premium compared to the average Forward P/E of 25.67 of its industry.
We can additionally observe that DT currently boasts a PEG ratio of 3.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 2.43 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Dynatrace, Inc. (DT) : 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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At the same time, our most recent consensus estimate is projecting a revenue of $357.55 million, reflecting a 20.2% rise from the equivalent quarter last year. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Click to get this free report Dynatrace, Inc. (DT) : 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 metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups.
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At the same time, our most recent consensus estimate is projecting a revenue of $357.55 million, reflecting a 20.2% rise from the equivalent quarter last year. The Computers - IT Services industry currently had an average PEG ratio of 2.43 as of yesterday's close. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.
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a5de55ea-6549-40c0-8fb5-940e3697e100
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713167.0
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2023-12-12 00:00:00 UTC
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Here's Why Tyson Foods (TSN) Gained But Lagged the Market Today
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DCOMP
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https://www.nasdaq.com/articles/heres-why-tyson-foods-tsn-gained-but-lagged-the-market-today
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nan
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nan
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Tyson Foods (TSN) closed the most recent trading day at $52.33, moving +0.08% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.27%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.19%.
Shares of the meat producer witnessed a gain of 8.24% over the previous month, beating the performance of the Consumer Staples sector with its gain of 4.85% and the S&P 500's gain of 6.94%.
The upcoming earnings release of Tyson Foods will be of great interest to investors. The company is forecasted to report an EPS of $0.38, showcasing a 55.29% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $13.3 billion, reflecting a 0.31% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.26 per share and revenue of $52.6 billion. These totals would mark changes of +68.66% and -0.53%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Tyson Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.22% lower within the past month. Tyson Foods currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Tyson Foods is currently exchanging hands at a Forward P/E ratio of 23.16. This denotes a premium relative to the industry's average Forward P/E of 20.22.
It is also worth noting that TSN currently has a PEG ratio of 0.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Food - Meat Products industry held an average PEG ratio of 2.41.
The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Tyson Foods, Inc. (TSN) : 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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At the same time, our most recent consensus estimate is projecting a revenue of $13.3 billion, reflecting a 0.31% rise from the equivalent quarter last year. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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Tyson Foods (TSN) closed the most recent trading day at $52.33, moving +0.08% from the previous trading session. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.26 per share and revenue of $52.6 billion. Click to get this free report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Click to get this free report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Tyson Foods (TSN) closed the most recent trading day at $52.33, moving +0.08% from the previous trading session. Tyson Foods currently has a Zacks Rank of #3 (Hold). Want the latest recommendations from Zacks Investment Research?
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c686e57c-7e17-44e4-ad10-c466d4a70447
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713168.0
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2023-12-12 00:00:00 UTC
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W.W. Grainger (GWW) Laps the Stock Market: Here's Why
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DCOMP
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https://www.nasdaq.com/articles/w.w.-grainger-gww-laps-the-stock-market%3A-heres-why
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nan
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nan
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W.W. Grainger (GWW) closed the most recent trading day at $828.81, moving +1.22% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.27%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.19%.
Coming into today, shares of the seller of maintenance and other supplies had gained 3.02% in the past month. In that same time, the Industrial Products sector gained 8.49%, while the S&P 500 gained 6.94%.
Investors will be eagerly watching for the performance of W.W. Grainger in its upcoming earnings disclosure. The company is forecasted to report an EPS of $8.03, showcasing a 12.46% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.05 billion, indicating a 6.42% increase compared to the same quarter of the previous year.
GWW's full-year Zacks Consensus Estimates are calling for earnings of $36.37 per share and revenue of $16.52 billion. These results would represent year-over-year changes of +22.62% and +8.51%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for W.W. Grainger. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, W.W. Grainger is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, W.W. Grainger is presently trading at a Forward P/E ratio of 22.51. This expresses a premium compared to the average Forward P/E of 14.66 of its industry.
One should further note that GWW currently holds a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Industrial Services industry held an average PEG ratio of 1.06.
The Industrial Services industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Meanwhile, the latest consensus estimate predicts the revenue to be $4.05 billion, indicating a 6.42% increase compared to the same quarter of the previous year. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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W.W. Grainger (GWW) closed the most recent trading day at $828.81, moving +1.22% from the previous trading session. As of the close of trade yesterday, the Industrial Services industry held an average PEG ratio of 1.06. Click to get this free report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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As of the close of trade yesterday, the Industrial Services industry held an average PEG ratio of 1.06. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 35% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups.
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In that same time, the Industrial Products sector gained 8.49%, while the S&P 500 gained 6.94%. As of the close of trade yesterday, the Industrial Services industry held an average PEG ratio of 1.06. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 35% of all 250+ industries.
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baa85962-f077-4161-abe9-ede78467c36a
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713169.0
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2023-12-12 00:00:00 UTC
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Alaska Air Group (ALK) Beats Stock Market Upswing: What Investors Need to Know
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DCOMP
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https://www.nasdaq.com/articles/alaska-air-group-alk-beats-stock-market-upswing%3A-what-investors-need-to-know
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nan
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nan
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Alaska Air Group (ALK) closed the most recent trading day at $39.16, moving +1.37% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.27%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.19%.
Heading into today, shares of the airline had gained 4.38% over the past month, lagging the Transportation sector's gain of 10.33% and the S&P 500's gain of 6.94% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. The company is expected to report EPS of $0.21, down 77.17% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.55 billion, indicating a 2.91% increase compared to the same quarter of the previous year.
ALK's full-year Zacks Consensus Estimates are calling for earnings of $4.45 per share and revenue of $10.42 billion. These results would represent year-over-year changes of +2.3% and +8.07%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% increase. At present, Alaska Air Group boasts a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 8.69. For comparison, its industry has an average Forward P/E of 7.26, which means Alaska Air Group is trading at a premium to the group.
It is also worth noting that ALK currently has a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.31 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Alaska Air Group, Inc. (ALK) : 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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Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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Alaska Air Group (ALK) closed the most recent trading day at $39.16, moving +1.37% from the previous trading session. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For comparison, its industry has an average Forward P/E of 7.26, which means Alaska Air Group is trading at a premium to the group. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Alaska Air Group (ALK) closed the most recent trading day at $39.16, moving +1.37% from the previous trading session. Heading into today, shares of the airline had gained 4.38% over the past month, lagging the Transportation sector's gain of 10.33% and the S&P 500's gain of 6.94% in that time. Want the latest recommendations from Zacks Investment Research?
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713170.0
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2023-12-12 00:00:00 UTC
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Magnificent Seven Could Deliver More Gains in 2024
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https://www.nasdaq.com/articles/magnificent-seven-could-deliver-more-gains-in-2024
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The magnificent seven cohort of mega-cap growth stocks have loomed large for investors. They drove a significant portion of the impressive returns notched by broad market indexes.
Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. History isn’t guaranteed to repeat. And asking for a similar upside to what was notched by the magnificent seven may be too demanding. But these beloved names may continue their bullish ways in 2024.
That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Both ETFs follow the Nasdaq-100 Index (NDX). They’re fine options for investors who want exposure to each of the magnificent seven without having to directly own those names.
Expensive, But Justifiably So
During rallies, such as the one that occurred this year, investors often that the Nasdaq-100 is richly valued. With QQQ and QQQM higher by 51.49% year-to-date, a case can be made that plenty of the stocks residing in the ETFs are expensive. But when it comes to the magnificent seven, that’s not necessarily an indictment. Why? Because these companies have the fundamentals to support elevated earnings multiples.
“The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. This might sound obvious, but these companies are some of the most profitable and cashflow generative in the world. For that reason, they command higher-than-average valuations in the stock market,” according to Schroders.
Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. Experienced investors know as much. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. Still, it’s worth remembering that there’s more to the ETFs and the magnificent seven than just AI.
“While generative AI has and will be a significant tailwind for some of these businesses (as with Nvidia), their strength in 2023 cannot be attributed solely to AI. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations. This has led to significant improvements in profitability and cash flow, particularly at Meta,” concluded Schroders.
For more news, information, and analysis, visit the ETF Education 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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Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations.
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That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). “The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year.
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That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations.
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Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year.
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713171.0
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2023-12-12 00:00:00 UTC
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3 Small-Cap Stocks That Could Skyrocket 1000% by 2030
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https://www.nasdaq.com/articles/3-small-cap-stocks-that-could-skyrocket-1000-by-2030
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Small-cap stocks are often overlooked yet they can provide investors with significant potential for outperformance. That said, not all small-cap stocks are worth considering. It’s worth noting that most small-cap companies are unprofitable and carry substantial risks.
But there exists a unique class of small-cap stocks that could be huge wealth generators. When carefully considering the best small-cap stocks to buy, profitability should be a key driver. Additionally, investors should only invest what they can afford to potentially lose. With the iShares Russell 2000 ETF (NYSE:IWM) on the move, 2024 could spell huge returns for small-cap stocks.
Now, let’s discuss the 3 best small-cap stocks to buy today.
Axcelis Technologies (ACLS)
Source: Shutterstock
Axcelis Technologies (NASDAQ:ACLS) is a leading provider of ion implantation equipment for the semiconductor industry. And over the last 3 years, the company has exhibited robust financial performance.
In addition to Axcelis’s revenue and EPS skyrocketing over the last several years, the growth is expected to continue. In particular, the growth of their Purion implantation platform continues to be supported by industry fundamentals. This includes the rapid deployment of artificial intelligence (AI), language-learning models (LLMs), and the electrification of the automotive industry.
But these are just a few reasons why the company expects growth to remain strong going forward. In Q3 2023, Axcelis’s revenue grew 28% year-over-year (YOY) to $293.3 billion. Additionally, net income increased 64% YOY to 65.93 million, or $1.99 per share. CEO Russell Low is bullish on the Purion platform’s and the long term tailwinds of the silicon carbide market.
With the Purion platform seeing high double-digit growth, Axcelis is one of the top small-cap stocks to buy.
Crispr Therapeutics AG (CRSP)
Source: rafapress / Shutterstock.com
Crispr Therapeutics AG (NASDAQ:CRSP) is a compelling small-cap stock to buy due to its ground-breaking work in gene editing. Over the years, gene editing has been an incredibly speculative investment idea due to the nascency of the industry. However, now it looks like all the research & development is starting to pay off.
The company has been at the forefront of developing CRISPR/Cas9 technology for therapeutic applications. On Dec. 8, the FDA approved Casgevy, the first-ever cell-based gene therapy for Sickle Cell disease. This novel treatment was in collaboration with pharmaceutical giant, Vertex Pharmaceuticals (NASDAQ:VRTX).
The approval of the first-ever gene therapy by the FDA is not only a huge milestone for Crispr but also for the gene therapy industry. Crispr also has other novel treatments in its pipeline, suggesting that they don’t plan to be a one-trick pony.
Sigma Lithium Corp (SGML)
Source: Pixel Enforcer/ShutterStock.com
Sigma Lithium Corp (NASDAQ:SGML) is a leading lithium mining company at the forefront of the electric vehicle (EV) revolution. The company has reached a critical point, signaling that they are positioned to generate significant FCF from their Grota do Cirilo mine.
Sigma Lithium has positioned itself as one of the world’s leading publicly traded Lithium mining companies. What separates the company from its counterparts is its sustainable mining practices. Their mine in Brazil’s Minas Gerais State is 100% green-powered, making it a must safer bet for institutional holders appealing to ESG investing guidelines.
However, the company has reached a key inflection point, with profitability being a major tailwind. In their latest quarterly results, Sigma saw a positive adjusted EBITDA of $54.6 million. Additionally, they announced positive results for their Phase 4 & 5 programs, suggesting their lithium output could reach 130 Mt.
If you’re bullish on the growth of the EV industry, Sigma is a top small-cap stock to buy.
On the date of publication, Terel Miles 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.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.
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The post 3 Small-Cap Stocks That Could Skyrocket 1000% by 2030 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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CEO Russell Low is bullish on the Purion platform’s and the long term tailwinds of the silicon carbide market. Their mine in Brazil’s Minas Gerais State is 100% green-powered, making it a must safer bet for institutional holders appealing to ESG investing guidelines. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Small-Cap Stocks That Could Skyrocket 1000% by 2030 appeared first on InvestorPlace.
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Axcelis Technologies (ACLS) Source: Shutterstock Axcelis Technologies (NASDAQ:ACLS) is a leading provider of ion implantation equipment for the semiconductor industry. Crispr Therapeutics AG (CRSP) Source: rafapress / Shutterstock.com Crispr Therapeutics AG (NASDAQ:CRSP) is a compelling small-cap stock to buy due to its ground-breaking work in gene editing. Sigma Lithium Corp (SGML) Source: Pixel Enforcer/ShutterStock.com Sigma Lithium Corp (NASDAQ:SGML) is a leading lithium mining company at the forefront of the electric vehicle (EV) revolution.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Small-cap stocks are often overlooked yet they can provide investors with significant potential for outperformance. Crispr Therapeutics AG (CRSP) Source: rafapress / Shutterstock.com Crispr Therapeutics AG (NASDAQ:CRSP) is a compelling small-cap stock to buy due to its ground-breaking work in gene editing. Sigma Lithium Corp (SGML) Source: Pixel Enforcer/ShutterStock.com Sigma Lithium Corp (NASDAQ:SGML) is a leading lithium mining company at the forefront of the electric vehicle (EV) revolution.
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That said, not all small-cap stocks are worth considering. Sigma Lithium has positioned itself as one of the world’s leading publicly traded Lithium mining companies. Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.
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2023-12-12 00:00:00 UTC
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The Grinch That Stole the Christmas Rally: 3 Cryptos to Avoid Now
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https://www.nasdaq.com/articles/the-grinch-that-stole-the-christmas-rally%3A-3-cryptos-to-avoid-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the crypto sector, utility is of paramount importance. Meme-based cryptos, reliant solely on clout, are mostly bound for entire failure. Despite their enviable current market presence, non-utilitarian cryptocurrencies face a downward trajectory. Indeed, without genuine use cases, there’s not really an underlying investment thesis long-term investors can get behind.
The crypto market now largely prioritizes strong fundamentals over speculation, prompting a strategic removal of weaker assets for portfolio strength. Mega-cap cryptocurrencies have outperformed this year, highlighting a growing performance gap. Thus, it’s clear investors aim to navigate market unpredictability and avoid potential downturns. And that means avoiding speculative cryptos at the higher end of the risk curve.
The discussed cryptos below show no meaningful signs of real-world utility, putting them on this list of cryptos to avoid heading into the holiday season.
4-Chan (4CHAN-USD)
Source: kkssr / Shutterstock.com
I’ve said this before and I’ll say it again. Investing in hype-driven meme tokens is a dangerous idea. And one good crypto example is 4-Chan (4CHAN–USD).
The 4-Chan Token, once popular, swiftly declined following an early June surge. Introduced in May with a 100 trillion token supply, its market cap remains unknown. Despite initial promise, 4CHAN faced volatility, notably after early investors sold off, causing a significant price drop since mid-June.
4-CHAN, plagued by continued inflation and a lack of supply control is especially weak in governance and vulnerable to manipulation by its creator. These issues deter conservative investors, as the risks far outweigh potential rewards, making it an undesirable asset.
Its future relies on factors like viral recognition or endorsements, with concerns about high inflation and susceptibility to manipulation. Conservative investors avoid it due to perceived risks outweighing rewards.
Shiba Inu (SHIB-USD)
Source: shutterstock.com/Vectordidak
Shiba Inu (SHIB-USD), a popular memecoin, recently experienced a remarkable 20,000% surge in burn rate, eliminating over 260 million tokens in 24 hours—setting a two-month record. Despite this, SHIB’s price remains unchanged, down 5% over the past week, amidst its ongoing scarcity strategy.
However, Shifting investor preferences toward cryptocurrencies with tangible value pose uncertainty for Shiba Inu. Despite notable token-burning efforts, the lack of key features hampers sustained interest. This year, SHIB recorded a 20.7% decline over a nine month period, signaling growing skepticism about its long-term viability.
While past surges occurred, the trend has been predominantly downward since late 2021, making a repeat scenario increasingly unlikely and the token’s future uncertain.
Pepe Coin (PEPE-USD)
Source: Shutterstock
The final cryptocurrency on this list, Pepe (PEPE-USD), may be challenging to argue against as an impractical investment, but here it goes. Launched in late April, this cartoon frog meme coin experienced an initial spike followed by a consistent decline in prices.
Initially hitting a $1.8 billion market cap during hype, Pepe now sits at $267 million, offering no utility, deemed purely speculative and high risk. Its decline accelerates, with Anarchy (ANA-USD) replacing Pepe Coin in the crypto spotlight. Raising over $3 million, Anarchy gains momentum since its June presale.
Despite the lack of utility beyond serving as a gambling mechanism, PEPE saw more than doubling in prices twice during its ongoing downturn, notably in late June and late October. Thus, like the other names on this list, these meme tokens can pop from time to time. I just don’t think they’re worth the risk right now.
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 The Grinch That Stole the Christmas Rally: 3 Cryptos to Avoid 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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Initially hitting a $1.8 billion market cap during hype, Pepe now sits at $267 million, offering no utility, deemed purely speculative and high risk. 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. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The Grinch That Stole the Christmas Rally: 3 Cryptos to Avoid Now appeared first on InvestorPlace.
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These issues deter conservative investors, as the risks far outweigh potential rewards, making it an undesirable asset. Shiba Inu (SHIB-USD) Source: shutterstock.com/Vectordidak Shiba Inu (SHIB-USD), a popular memecoin, recently experienced a remarkable 20,000% surge in burn rate, eliminating over 260 million tokens in 24 hours—setting a two-month record. Pepe Coin (PEPE-USD) Source: Shutterstock The final cryptocurrency on this list, Pepe (PEPE-USD), may be challenging to argue against as an impractical investment, but here it goes.
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Shiba Inu (SHIB-USD) Source: shutterstock.com/Vectordidak Shiba Inu (SHIB-USD), a popular memecoin, recently experienced a remarkable 20,000% surge in burn rate, eliminating over 260 million tokens in 24 hours—setting a two-month record. Initially hitting a $1.8 billion market cap during hype, Pepe now sits at $267 million, offering no utility, deemed purely speculative and high risk. Despite the lack of utility beyond serving as a gambling mechanism, PEPE saw more than doubling in prices twice during its ongoing downturn, notably in late June and late October.
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And that means avoiding speculative cryptos at the higher end of the risk curve. The 4-Chan Token, once popular, swiftly declined following an early June surge. Despite the lack of utility beyond serving as a gambling mechanism, PEPE saw more than doubling in prices twice during its ongoing downturn, notably in late June and late October.
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2023-12-12 00:00:00 UTC
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Markets Stay on a Roll; COST, LEN Beat on Earnings
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https://www.nasdaq.com/articles/markets-stay-on-a-roll-cost-len-beat-on-earnings
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Don’t look now, but all major stock market indices are up double digits year to date — even the previously beleaguered Russell 2000. This is thanks to a nearly +11% run-up in the past month on the small-cap index — 2.6% just today — as higher interest rate levels previously expected through much of next year are on the wane, thanks to a newly dovish Fed, as of yesterday. In fact, at +14% year to date, the Russell has pushed past the blue-chip Dow’s +12%, which itself is nothing to sneeze at.
Today, the Dow gained another +158 points, +0.43%, while the S&P 500 grew +0.26% and the Nasdaq +0.19% on the session. But these indices, particularly the Nasdaq, roared ahead of the pack last summer during the A.I. boom. The tech-heavy index currently resides at +42% for the year with only a couple trading weeks remaining. The S&P is up +23% since early January.
Of course, running up valuations now is going to lead to less available later — such are the ways of our market. And even though economic data currently depicts pending economic data to continue shedding excess inflation like a recent prescription of Ozempic can do for one’s physique, we may see some stickier elements of the economy emerge for various reasons over time, which might put the cork back in this bottle at some point.
For now, though, market participants and the Fed are celebrating a well-earned respite following 2022 pressures that kept big gains at bay and carried a looming dark cloud of recession ahead of it at all times. Now it looks like the clouds are parting, but only a fool would expect it to stay sunny forever.
Costco COST reported fiscal Q1 earnings results after the closing bell today, outperforming estimates on both top and bottom lines. Earnings of $3.58 per share easily surpassed the $3.45 in the Zacks consensus, while $57.799 billion in total revenues (sales and subscriptions) outpaced the $57.67 billion analysts were looking for, and grew +6.1% year over year. Shares are back up +1% in late trading on the news after lowering ahead of the report, but this is after hitting all-time highs yesterday.
Luxury homebuilder Lennar Home LEN also beat estimates on earnings and sales for its fiscal Q4 out this afternoon, with $4.82 per share coming in ahead of the $4.64 expected, while revenues of $11.0 billion soundly outperformed the $10.34 billion in the Zacks consensus. Starts were up +43% and New Orders +32%, but shares are trading down -3.5% on this news. Call it booking profits after the stock shot up +50% in just the past six weeks.
Questions or comments about this article and/or author? Click here>>
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Lennar Corporation (LEN) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is thanks to a nearly +11% run-up in the past month on the small-cap index — 2.6% just today — as higher interest rate levels previously expected through much of next year are on the wane, thanks to a newly dovish Fed, as of yesterday. For now, though, market participants and the Fed are celebrating a well-earned respite following 2022 pressures that kept big gains at bay and carried a looming dark cloud of recession ahead of it at all times. Click here>> The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
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Costco COST reported fiscal Q1 earnings results after the closing bell today, outperforming estimates on both top and bottom lines. Luxury homebuilder Lennar Home LEN also beat estimates on earnings and sales for its fiscal Q4 out this afternoon, with $4.82 per share coming in ahead of the $4.64 expected, while revenues of $11.0 billion soundly outperformed the $10.34 billion in the Zacks consensus. Click to get this free report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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Earnings of $3.58 per share easily surpassed the $3.45 in the Zacks consensus, while $57.799 billion in total revenues (sales and subscriptions) outpaced the $57.67 billion analysts were looking for, and grew +6.1% year over year. Luxury homebuilder Lennar Home LEN also beat estimates on earnings and sales for its fiscal Q4 out this afternoon, with $4.82 per share coming in ahead of the $4.64 expected, while revenues of $11.0 billion soundly outperformed the $10.34 billion in the Zacks consensus. Click to get this free report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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The tech-heavy index currently resides at +42% for the year with only a couple trading weeks remaining. Luxury homebuilder Lennar Home LEN also beat estimates on earnings and sales for its fiscal Q4 out this afternoon, with $4.82 per share coming in ahead of the $4.64 expected, while revenues of $11.0 billion soundly outperformed the $10.34 billion in the Zacks consensus. 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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2023-12-12 00:00:00 UTC
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Why Tesla Stock Triumphed Today
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https://www.nasdaq.com/articles/why-tesla-stock-triumphed-today
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Any time a company improves its business in a major (and highly competitive) market is cause for celebration. That was the case on Thursday with electric vehicle (EV) pace-setter Tesla (NASDAQ: TSLA), which revealed that it's getting its product to market more quickly in a key foreign country.
As a result, investors traded the company's stock up by almost 5%, a figure much higher than the S&P 500 index's 0.3% bump on the day.
Tesla wait times in China are coming down
As reported by stock market website StreetInsider.com, Tesla's Chinese website updated its expected delivery time frames for its popular Model 3 sedan and Model Y crossover. Previous to those updates, Tesla last updated its projected times in November.
For the former model's Long Range version, the EV company expects to deliver it from two to six weeks. That's well down from the previous anticipated period of six to nine weeks. As for the Model Y Long Range, eager customers now only need to cool their heels for the same two to six weeks. Previously, they would have had to hold steady for six to eight weeks.
China, given its size and still-growing economy, is a key market for nearly every type of company. That goes double for EV makers like Tesla, as the government continues to push for greener vehicle solutions given historically high levels of air pollution.
The country is not an easy market
That's why Tesla built and operates one of its "gigafactories" in the country, namely in the Shanghai area. While China is a country with vast potential, it's also challenging for a relatively high-end foreign manufacturer. The government clearly favors domestic vehicle makers like Nio (NYSE: NIO), plus Tesla's pricing can put its wares out of reach of many Chinese consumers. Any honing of the company's competitive edge there is welcome.
Where to invest $1,000 right now
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*Stock Advisor returns as of December 11, 2023
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nio and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That was the case on Thursday with electric vehicle (EV) pace-setter Tesla (NASDAQ: TSLA), which revealed that it's getting its product to market more quickly in a key foreign country. As a result, investors traded the company's stock up by almost 5%, a figure much higher than the S&P 500 index's 0.3% bump on the day. That goes double for EV makers like Tesla, as the government continues to push for greener vehicle solutions given historically high levels of air pollution.
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Tesla wait times in China are coming down As reported by stock market website StreetInsider.com, Tesla's Chinese website updated its expected delivery time frames for its popular Model 3 sedan and Model Y crossover. For the former model's Long Range version, the EV company expects to deliver it from two to six weeks. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.
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That was the case on Thursday with electric vehicle (EV) pace-setter Tesla (NASDAQ: TSLA), which revealed that it's getting its product to market more quickly in a key foreign country. Tesla wait times in China are coming down As reported by stock market website StreetInsider.com, Tesla's Chinese website updated its expected delivery time frames for its popular Model 3 sedan and Model Y crossover. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Eric Volkman has no position in any of the stocks mentioned.
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That was the case on Thursday with electric vehicle (EV) pace-setter Tesla (NASDAQ: TSLA), which revealed that it's getting its product to market more quickly in a key foreign country. Tesla wait times in China are coming down As reported by stock market website StreetInsider.com, Tesla's Chinese website updated its expected delivery time frames for its popular Model 3 sedan and Model Y crossover. The Motley Fool has positions in and recommends Nio and Tesla.
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9de8772f-e51a-45c2-aed1-e6eeea827ebb
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713175.0
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2023-12-12 00:00:00 UTC
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3 Cybersecurity Giants to Bulletproof Your Portfolio
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DCOMP
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https://www.nasdaq.com/articles/3-cybersecurity-giants-to-bulletproof-your-portfolio
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In an era where digital fortification reigns supreme, three cybersecurity giants stand tall, reshaping the landscape of online protection. The first one on the list showcases a financial fortress with diversified revenue streams crucial to bolstering market valuation. The second one, a sentinel in the industry, flaunts its leadership through accolades and innovations that resonate deeply with market needs. Meanwhile, the third emerges as a rising star, not just with staggering revenue growth but a profound shift in catering to modern cybersecurity demands.
Read the article to learn about the trio’s financial prowess, innovative strides, and market dominance. These industry titans reveal their fiscal resilience and strategic maneuvers in adapting to an edgy digital threat landscape. Their strategies breed resilience and valuation growth as they fortify businesses against cyber onslaughts.
Palo Alto (PANW)
Source: Sundry Photography / Shutterstock.com
Palo Alto’s (NASDAQ:PANW) solid financial performance is a key support for its market valuation. It excels at several key financial metrics such as revenue, billings, deferred revenue, and remaining performance obligation (RPO). For instance, the company reported Q1 fiscal 2024 revenue, marking 20% growth. The breakdown of product revenue grew at 3%, total service revenue grew at 25%, with subscription revenue hitting 29% growth and support revenue delivering 17% growth. As a result, the performance reveals the diversified revenue streams contributing to the top-line growth.
Additionally, Palo Alto experienced a 16% growth in billings in Q1. While this growth is substantial, the company addresses the impact of the rising cost of money on customer behavior. Therefore, the growth highlights negotiation dynamics with customers influencing billing duration, leading to variations in total billings. Fundamentally, the higher cost of money prompts customers to seek deferred payment terms or additional discounts, influencing the duration and structure of billings.
Progressively, the company emphasizes maintaining flexibility in billing structures by utilizing annual billing plans, PANFS (Palo Alto Networks Finance Manager) financing, and partner financing. This approach aims to manage the impact of these negotiations on billing trends without compromising the company’s revenue forecasts or overall demand function. Palo Alto generally expresses solid confidence in its demand outlook, pipeline visibility, and consistent demand in the market.
Finally, Palo Alto’s continuous innovation efforts across its platforms highlight advancements in network security, SASE (Secure Access Service Edge), Prisma Cloud, and Cortex. The company introduces artificial intelligence (AI) enabled tools, integrated UI enhancements, and platform consolidation efforts towards Zero Trust architecture. These moves emphasize the importance of these innovations in strengthening its market position and supporting the company’s progressive market value.
Crowdstrike (CRWD)
Source: T. Schneider / Shutterstock.com
To begin with, CrowdStrike’s (NASDAQ:CRWD) consistent recognition across industries with top ratings in protection, visibility, and analytics reinforces its market leadership. The company is positioning itself as a leader and is recognized in various industry reports, including Gartner, Forrester, and IDC. These recognitions substantiate CrowdStrike’s industry recognition and market presence. Also, CrowdStrike has attained a perfect score in MITRE’s ATT&CK testing, solidifying its credibility and excellence in delivering cybersecurity outcomes.
As a result, there is a high demand for CrowdStrike’s Exposure Management solution in its debut quarter (Q3 fiscal 2024) in the market. This demand signifies strong market acceptance and a growing customer base. Fundamentally, it demonstrates CrowdStrike’s ability to identify market needs and deliver innovative solutions that capitalize on customer requirements. The success of flagship events like Fal.Con, attracting thousands of attendees and sponsors, reflects CrowdStrike’s industry influence and ability to engage and retain customers.
On the product side, the newly introduced Falcon Platform Raptor offers standardization on LogScale for customers. This product development reinforces CrowdStrike’s position as an industry leader in Extended Detection & Response (XDR) and Security information and event management (SIEM) technologies. Falcon for IT’s introduction, unifying IT and SecOps and replacing legacy products with a single-agent architecture, reflects CrowdStrike’s edge in innovation. This module addresses critical pain points for customers. Therefore, the customer-centric fundamentals breed continued demand for the company’s products.
Lastly, the strategic acquisition of Bionic to bolster the Falcon Cloud Security Suite signals CrowdStrike’s intent to expand its offerings comprehensively. Therefore, the acquisition reflects CrowdStrike’s agility in adapting to evolving market needs and its focus on supporting its value growth by providing holistic cybersecurity solutions.
SentinelOne (S)
Source: Tada Images / Shutterstock.com
SentinelOne (NYSE:S) delivers remarkable topline growth. For instance, in Q3 fiscal 2024, the company experienced 42% year-over-year growth in revenue. Similarly, the net new annual recurring revenue (ARR) surged 11% year-over-year, exceeding typical Q3 seasonality. The revenue growth indicates an increasing market demand for SentinelOne’s security solutions. At the same time, the accelerated net new ARR suggests the successful acquisition of new customers and expansion within the existing customer base.
Furthermore, such substantial revenue growth corroborates the effectiveness and relevance of SentinelOne’s security solutions, especially the Singularity platform. SentinelOne witnessed substantial growth in Singularity Cloud and Singularity Data Lake solutions. This represented over 20% of quarterly bookings and experienced triple-digit growth. Notably, there is a transition in the market, with enterprises prioritizing more modern and comprehensive cybersecurity solutions. Hence, SentinelOne’s ability to capture this shift suggests its agility in adapting to changing market dynamics.
Moreover, Singularity Cloud and Data Lake have differentiated technologies addressing enterprise-critical needs with substantial total addressable markets (TAMs), suggesting sustained revenue streams. Also, SentinelOne’s lead in consolidating security needs onto the Singularity platform is evident through examples like the replacement of legacy SIEM solutions. Such cases indicate the platform’s ability to encompass diverse security functionalities, driving greater adoption among enterprises.
Finally, regarding the bottom line, SentinelOne achieved a record-high gross margin of 79%, marking an 8% year-over-year improvement in Q3. Further, the company continued its significant operating margin expansion trend, reaching a ninth consecutive quarter with over 0.25% year-over-year improvement. Thus, such consistency reflects the potential for long-term growth.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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The post 3 Cybersecurity Giants to Bulletproof Your Portfolio 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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Fundamentally, the higher cost of money prompts customers to seek deferred payment terms or additional discounts, influencing the duration and structure of billings. The company introduces artificial intelligence (AI) enabled tools, integrated UI enhancements, and platform consolidation efforts towards Zero Trust architecture. This product development reinforces CrowdStrike’s position as an industry leader in Extended Detection & Response (XDR) and Security information and event management (SIEM) technologies.
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Palo Alto (PANW) Source: Sundry Photography / Shutterstock.com Palo Alto’s (NASDAQ:PANW) solid financial performance is a key support for its market valuation. The breakdown of product revenue grew at 3%, total service revenue grew at 25%, with subscription revenue hitting 29% growth and support revenue delivering 17% growth. Finally, Palo Alto’s continuous innovation efforts across its platforms highlight advancements in network security, SASE (Secure Access Service Edge), Prisma Cloud, and Cortex.
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The breakdown of product revenue grew at 3%, total service revenue grew at 25%, with subscription revenue hitting 29% growth and support revenue delivering 17% growth. The revenue growth indicates an increasing market demand for SentinelOne’s security solutions. Furthermore, such substantial revenue growth corroborates the effectiveness and relevance of SentinelOne’s security solutions, especially the Singularity platform.
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Crowdstrike (CRWD) Source: T. Schneider / Shutterstock.com To begin with, CrowdStrike’s (NASDAQ:CRWD) consistent recognition across industries with top ratings in protection, visibility, and analytics reinforces its market leadership. For instance, in Q3 fiscal 2024, the company experienced 42% year-over-year growth in revenue. The revenue growth indicates an increasing market demand for SentinelOne’s security solutions.
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d59835ee-d8bf-42f0-832d-4e1c4bad6214
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713176.0
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2023-12-12 00:00:00 UTC
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Why Virgin Galactic Stock Popped Today
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DCOMP
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https://www.nasdaq.com/articles/why-virgin-galactic-stock-popped-today-1
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nan
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nan
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Shares of Virgin Galactic (NYSE: SPCE) jumped as much as 11% early Thursday then settled to close up 4.5% as investors cheered the prospect of lower interest rates in the coming year.
There was no company-specific news to justify Virgin Galactic's pop today. But even as the broader market was roughly flat (with both the S&P 500 and Nasdaq Composite indexes up around 0.2% today), many growth stocks rallied after central bank officials indicated yesterday that they will likely cut interest rates multiple times in 2024.
Why lower rates are great for Virgin Galactic
In their December meeting yesterday, policymakers on the Federal Open Market Committee not only held interest rates flat for the third straight month but also signaled there will be at least three rate cuts in 2024. This will mark the first interest-rate reductions since the Fed began raising rates in March 2022 to combat high inflation.
Lower rates are widely considered a positive catalyst for yet-to-be-profitable growth stocks, especially if their underlying businesses might need to raise additional capital to stay afloat going forward. Incidentally, Virgin Galactic stock plunged earlier this month after company founder Richard Branson indicated his flagship Virgin Group -- one of Virgin Galactic's largest shareholders with a 7.7% stake -- has no plans to invest additional capital in the leading space stock.
Branson did, however, indicate he believes Virgin Galactic should have enough cash on its balance sheet to carry it through to sustained profitability.
"We don't have the deepest pockets after Covid, and Virgin Galactic has got $1 billion," he told the Financial Times. "It should, I believe, have sufficient funds to do its job on its own."
What's next for Virgin Galactic stock?
Virgin Galactic's next spaceflight is slated for some time in January 2024, after which management has said they'll shift to a quarterly flight frequency as they focus on scaling operations.
To that end, Virgin Galactic also recently implemented a "strategic realignment" of its resources to focus on the production of its next-generation spaceships, the first of which are expected to commence weekly revenue-generating flights starting in 2026. Virgin Galactic is currently burning over $100 million in cash per quarter and can fly at most once per month with its current ships, so those next-gen vehicles will be key in significantly increasing its flight cadence and revenue-generating capabilities.
If Virgin Galactic has any missteps along the way, however, it may be forced to raise additional cash to continue its journey. Lower interest rates starting next year could certainly help it do so on more attractive terms than it would be able to receive in today's high-interest environment.
Should you invest $1,000 in Virgin Galactic right now?
Before you buy stock in Virgin Galactic, consider this:
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*Stock Advisor returns as of December 11, 2023
Steve Symington has positions in Virgin Galactic. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Virgin Galactic (NYSE: SPCE) jumped as much as 11% early Thursday then settled to close up 4.5% as investors cheered the prospect of lower interest rates in the coming year. But even as the broader market was roughly flat (with both the S&P 500 and Nasdaq Composite indexes up around 0.2% today), many growth stocks rallied after central bank officials indicated yesterday that they will likely cut interest rates multiple times in 2024. To that end, Virgin Galactic also recently implemented a "strategic realignment" of its resources to focus on the production of its next-generation spaceships, the first of which are expected to commence weekly revenue-generating flights starting in 2026.
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Lower interest rates starting next year could certainly help it do so on more attractive terms than it would be able to receive in today's high-interest environment. Before you buy stock in Virgin Galactic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Virgin Galactic wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Steve Symington has positions in Virgin Galactic.
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Incidentally, Virgin Galactic stock plunged earlier this month after company founder Richard Branson indicated his flagship Virgin Group -- one of Virgin Galactic's largest shareholders with a 7.7% stake -- has no plans to invest additional capital in the leading space stock. Before you buy stock in Virgin Galactic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Virgin Galactic wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Steve Symington has positions in Virgin Galactic.
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What's next for Virgin Galactic stock? Virgin Galactic's next spaceflight is slated for some time in January 2024, after which management has said they'll shift to a quarterly flight frequency as they focus on scaling operations. Before you buy stock in Virgin Galactic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Virgin Galactic wasn't one of them.
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b70c4f11-b88f-4890-aa5e-5df479ba7426
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713177.0
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2023-12-12 00:00:00 UTC
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Hershey Company Shares Fall 1.1% Below Previous 52-Week Low - Market Mover
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DCOMP
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https://www.nasdaq.com/articles/hershey-company-shares-fall-1.1-below-previous-52-week-low-market-mover
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nan
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nan
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Hershey Company (HSY) shares closed 1.1% lower than its previous 52 week low, giving the company a market cap of $38B. The stock is currently down 18.5% year-to-date, down 20.0% over the past 12 months, and up 89.9% over the past five years. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%.
Trading Activity
Trading volume this week was 46.5% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.3.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Consumer Staples industry sector , lags it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 236.9%
The company's stock price performance over the past 12 months lags the peer average by 164.0%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.5% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Beta, a measure of the stock’s volatility relative to the overall market stands at 0.3. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Staples industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 236.9% The company's stock price performance over the past 12 months lags the peer average by 164.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.5% higher than the average peer.
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This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%. Trading Activity Trading volume this week was 46.5% higher than the 20-day average. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Staples industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 236.9% The company's stock price performance over the past 12 months lags the peer average by 164.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.5% higher than the average peer.
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Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Staples industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 236.9% The company's stock price performance over the past 12 months lags the peer average by 164.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.5% higher than the average peer. This story was produced by the Kwhen Automated News Generator. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Staples industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 236.9% The company's stock price performance over the past 12 months lags the peer average by 164.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.5% higher than the average peer.
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1865b776-fd5c-47b6-86ce-3bcb15232662
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713178.0
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2023-12-12 00:00:00 UTC
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Radian Group, Inc. Shares Approach 52-Week High - Market Mover
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DCOMP
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https://www.nasdaq.com/articles/radian-group-inc.-shares-approach-52-week-high-market-mover-0
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nan
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nan
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Radian Group, Inc. (RDN) shares closed today at 0.3% below its 52 week high of $28.14, giving the company a market cap of $4B. The stock is currently up 52.6% year-to-date, up 58.2% over the past 12 months, and up 97.5% over the past five years. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%.
Trading Activity
Trading volume this week was 97.6% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 73.3%
The company's stock price performance over the past 12 months beats the peer average by 80.8%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -23.0% lower than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Radian Group, Inc. (RDN) shares closed today at 0.3% below its 52 week high of $28.14, giving the company a market cap of $4B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 73.3% The company's stock price performance over the past 12 months beats the peer average by 80.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -23.0% lower than the average peer.
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Radian Group, Inc. (RDN) shares closed today at 0.3% below its 52 week high of $28.14, giving the company a market cap of $4B. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 73.3% The company's stock price performance over the past 12 months beats the peer average by 80.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -23.0% lower than the average peer.
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Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 73.3% The company's stock price performance over the past 12 months beats the peer average by 80.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -23.0% lower than the average peer. This story was produced by the Kwhen Automated News Generator. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 73.3% The company's stock price performance over the past 12 months beats the peer average by 80.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -23.0% lower than the average peer.
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67cc9296-221b-4cac-a249-618df1d686a0
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713179.0
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2023-12-12 00:00:00 UTC
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MGIC Investment Corp Shares Close in on 52-Week High - Market Mover
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DCOMP
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https://www.nasdaq.com/articles/mgic-investment-corp-shares-close-in-on-52-week-high-market-mover
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nan
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nan
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MGIC Investment Corp (MTG) shares closed today at 1.6% below its 52 week high of $19.27, giving the company a market cap of $5B. The stock is currently up 51.6% year-to-date, up 50.1% over the past 12 months, and up 109.9% over the past five years. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%.
Trading Activity
Trading volume this week was 57.0% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 87.9%
The company's stock price performance over the past 12 months beats the peer average by 59.8%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -18.4% lower than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MGIC Investment Corp (MTG) shares closed today at 1.6% below its 52 week high of $19.27, giving the company a market cap of $5B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 87.9% The company's stock price performance over the past 12 months beats the peer average by 59.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -18.4% lower than the average peer.
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This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 87.9% The company's stock price performance over the past 12 months beats the peer average by 59.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -18.4% lower than the average peer.
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Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 87.9% The company's stock price performance over the past 12 months beats the peer average by 59.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -18.4% lower than the average peer. This story was produced by the Kwhen Automated News Generator. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Financials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 87.9% The company's stock price performance over the past 12 months beats the peer average by 59.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -18.4% lower than the average peer.
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7298a488-d86e-4fbf-9057-68d9a46c1014
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713180.0
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2023-12-12 00:00:00 UTC
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Strength Seen in Freshworks Inc. (FRSH): Can Its 6.1% Jump Turn into More Strength?
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DCOMP
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https://www.nasdaq.com/articles/strength-seen-in-freshworks-inc.-frsh%3A-can-its-6.1-jump-turn-into-more-strength
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Freshworks Inc. (FRSH) shares ended the last trading session 6.1% higher at $23.54. 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 22.1% gain over the past four weeks.
Freshworks extended its rally, driven by strengthening generative AI capabilities. Moreover, its increasing investments in advanced AI capabilities for customer service users are contributing well. Also, rising demand for Freshworks’ IT products is a plus.
This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +400%. Revenues are expected to be $158.11 million, up 18.7% 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 Freshworks Inc., 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 FRSH 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 >>>>
Freshworks Inc. is part of the Zacks Internet - Software industry. Paycom Software (PAYC), another stock in the same industry, closed the last trading session 2.8% higher at $203.71. PAYC has returned 11.9% in the past month.
Paycom's consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $1.78. Compared to the company's year-ago EPS, this represents a change of +2.9%. Paycom 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.
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Freshworks Inc. (FRSH) : Free Stock Analysis Report
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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 company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +400%. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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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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. Paycom's consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $1.78. Click to get this free report Freshworks Inc. (FRSH) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : 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 >>>> Freshworks Inc. is part of the Zacks Internet - Software industry. Click to get this free report Freshworks Inc. (FRSH) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : 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 $0.05 per share in its upcoming report, which represents a year-over-year change of +400%. Paycom Software (PAYC), another stock in the same industry, closed the last trading session 2.8% higher at $203.71. Paycom's consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $1.78.
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1823dd74-3b0b-4fa2-bd18-92f646a1f3ec
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713181.0
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2023-12-12 00:00:00 UTC
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US STOCKS-Futures gain as rate-cut cheer persists
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DCOMP
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https://www.nasdaq.com/articles/us-stocks-futures-gain-as-rate-cut-cheer-persists
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures up: Dow 0.43%, S&P 0.28%, Nasdaq 0.31%
Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year.
The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday.
Money markets see a 79% chance of at least a 25-basis point rate cut as soon as March 2024, up from about 50% before Wednesday's policy announcement, while almost fully pricing in another cut in May 2024, according to CME Group's FedWatch tool.
"Because we are seeing clear disinflation taking place, the market is starting to think about cutting cycles in the same way it was thinking about the hiking cycle," said Sphia Salim, head of European rates research at BofA Global Research.
"We are far from neutral and inflation is moving fast, so maybe central banks are behind the curve and ultimately may need to converge back to neutral quite rapidly."
The dovish turn of events caused equities to rally recently, with the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC eyeing six straight weeks of gains.
U.S. Treasury yields fell below 4% to multi-month lows, with yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9129%. US/
Markets will now parse the S&P Global Composite Flash PMI data for December, due after the opening bell.
At 5:32 a.m. ET, Dow e-minis 1YMcv1 were up 160 points, or 0.43%, S&P 500 e-minis EScv1 were up 13.25 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were up 51.5 points, or 0.31%.
Among stocks, AlteryxAYX.N added 1.4% before the bell as Piper Sandler upgraded the analytics automation firm's shares to "neutral" from "underweight".
Costco WholesaleCOST.O rose 1.5% after the retailer topped Wall Street estimates for first-quarter results due to demand for cheaper groceries.
First Solar FSLR.O and Enphase Energy ENPH.O added 2.4% and 3.4%, respectively, as Jefferies started coverage of the solar companies with a "buy" rating.
(Reporting by Shristi Achar A in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Shounak Dasgupta)
((Shristi.AcharA@thomsonreuters.com; https://twitter.com/ShristiAchar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.43%, S&P 0.28%, Nasdaq 0.31% Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday. The dovish turn of events caused equities to rally recently, with the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC eyeing six straight weeks of gains.
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.43%, S&P 0.28%, Nasdaq 0.31% Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. "Because we are seeing clear disinflation taking place, the market is starting to think about cutting cycles in the same way it was thinking about the hiking cycle," said Sphia Salim, head of European rates research at BofA Global Research. ET, Dow e-minis 1YMcv1 were up 160 points, or 0.43%, S&P 500 e-minis EScv1 were up 13.25 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were up 51.5 points, or 0.31%.
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.43%, S&P 0.28%, Nasdaq 0.31% Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. "Because we are seeing clear disinflation taking place, the market is starting to think about cutting cycles in the same way it was thinking about the hiking cycle," said Sphia Salim, head of European rates research at BofA Global Research. ET, Dow e-minis 1YMcv1 were up 160 points, or 0.43%, S&P 500 e-minis EScv1 were up 13.25 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were up 51.5 points, or 0.31%.
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.43%, S&P 0.28%, Nasdaq 0.31% Dec 15 (Reuters) - Futures tracking U.S. stock indexes gained on Friday as investors remained upbeat in a week marked by economic data signaling a soft landing for the economy and the Federal Reserve's hints of lower interest rates next year. The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday. Money markets see a 79% chance of at least a 25-basis point rate cut as soon as March 2024, up from about 50% before Wednesday's policy announcement, while almost fully pricing in another cut in May 2024, according to CME Group's FedWatch tool.
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23edebb7-5ffb-4ccf-a5fa-e045f9123511
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713182.0
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2023-12-12 00:00:00 UTC
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The Dow Jones Just Hit a Record High. History Says Stocks Will Do This Next.
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DCOMP
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https://www.nasdaq.com/articles/the-dow-jones-just-hit-a-record-high.-history-says-stocks-will-do-this-next.
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The Dow Jones Industrial Average (DJINDICES: ^DJI) tracks 30 large U.S. stocks. Inclusion is limited to companies that have excellent reputations, demonstrate sustained growth, and generate widespread interest among investors. To that end, the index is commonly regarded as a collection of blue chip stocks, though it also serves as one of three major barometers for the overall U.S. stock market, with the other two being the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC).
The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The upshot of that momentum is that the Dow Jones reached a record high on Wednesday, meaning the blue chip index just entered bull market territory.
Past performance is never a guarantee of future returns, but crossing the bull market threshold has historically been a good sign for stocks.
History says the Dow Jones is headed much higher
The Dow Jones has run through eight bull markets in the last 50 years. The average one lasted about five years and saw the index climb 172%. But returns varied substantially between individual bull markets, as detailed in the table below:
BULL MARKET START
DOW JONES RETURN
December 1974
76%
February 1979
38%
August 1982
250%
October 1987
73%
October 1990
396%
October 2002
94%
March 2009
348%
March 2020
98%
Average
172%
Data source: YCharts. Chart by author.
Here's the upshot: If the new bull market aligns with the historical average, the Dow Jones will increase 172% over a five-year period. But the current bull market technically started when the Dow Jones bottomed in October 2022. The index has since climbed about 27%, bringing the implied upside down to roughly 110% over four years from today's levels.
However, returns have varied dramatically between past bull markets, so investors would do better to benchmark against a different metric. Specifically, the Dow Jones returned about 9% annually over the past four decades, and its performance will likely be similar over the next four decades.
Investors looking to capitalize on that should consider buying some of the more promising blue chip stocks in the Dow Jones. For instance, Salesforce and Microsoft have strong market positions and solid growth prospects that could unlock plenty of value for patient shareholders.
Salesforce has been the leader in customer relationship management (CRM) software for 10 consecutive years, and the CRM market is forecast to grow by 14% annually through 2030. Similarly, Microsoft is the leader in enterprise software-as-a-service and operates the second-largest cloud computing platform; those markets are also projected to grow by 14% annually through the end of the decade.
Building on that, Salesforce and Microsoft are leaning into the growing demand for artificial intelligence (AI). In fact, Morgan Stanley analyst Keith Weiss argues Microsoft in particular is the software company best positioned to monetize generative AI. But both could be long-term winners as more businesses seek productivity gains through automation.
An index fund stacked with blue chip stocks
Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (NYSEMKT: DIA).
The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. The five largest holdings in the fund are detailed below:
UnitedHealth Group: 9.4%
Microsoft: 6.7%
Goldman Sachs Group: 6.4%
Home Depot: 5.9%
McDonald's: 5.2%
At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Additionally, it was slightly less volatile than the broader S&P 500, as evidenced by its 10-year beta of 0.95. The index fund bears a below-average expense ratio of 0.16%, meaning the annual fee on a $10,000 portfolio would be $16.
Here's the bottom line: The Dow Jones has consistently created wealth over long periods of time, and I'd bet my bottom dollar that trend continues in the future. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index.
Should you invest $1,000 in Dow Jones Industrial Average (Price Return) right now?
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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Home Depot, Microsoft, and Salesforce. The Motley Fool recommends Intel and UnitedHealth Group and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The upshot of that momentum is that the Dow Jones reached a record high on Wednesday, meaning the blue chip index just entered bull market territory. Similarly, Microsoft is the leader in enterprise software-as-a-service and operates the second-largest cloud computing platform; those markets are also projected to grow by 14% annually through the end of the decade. An index fund stacked with blue chip stocks Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (NYSEMKT: DIA).
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The five largest holdings in the fund are detailed below: UnitedHealth Group: 9.4% Microsoft: 6.7% Goldman Sachs Group: 6.4% Home Depot: 5.9% McDonald's: 5.2% At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index. The Motley Fool recommends Intel and UnitedHealth Group and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index. Before you buy stock in Dow Jones Industrial Average (Price Return), consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Dow Jones Industrial Average (Price Return) wasn't one of them.
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The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. Before you buy stock in Dow Jones Industrial Average (Price Return), consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Dow Jones Industrial Average (Price Return) wasn't one of them.
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8e7f2c80-0cfe-4c92-ac96-393f07940acb
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713183.0
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2023-12-12 00:00:00 UTC
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Homebuilder Murapol climbs 15% in first Warsaw IPO in two years
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DCOMP
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https://www.nasdaq.com/articles/homebuilder-murapol-climbs-15-in-first-warsaw-ipo-in-two-years
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By 0935 GMT the shares were up 15.4%.
Murapol has been operating for over 22 years in the country's residential market across 19 cities. The homebuilder says its competitive edge lays in geographic diversification as well as a large landbank.
"The debut is good, personally I was expecting (a jump of) around 10%, we have mid-teens, so it's a surprise for the market" said BDM analyst Krzysztof Pado.
The analyst said long-term performance will depend on delivering management's "ambitious" plans to increase sales to retail clients, and high dividend payouts.
He added that the company's debut performance had closed the valuation gap with most of its peers in terms of its expected earnings. Its listed rivals include Echo Investment ECH.WA, Develia DVLP.WA, Atal 1AT.WA, and Dom Development DOMP.WA which range in value from 1.69 billion to 4.05 billion zlotys.
Murapol's debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market.
In the last two months the WIG index .WIG has risen 17.8%, while the real estate index .NIER has fallen 3.3%.
($1 = 3.9189 zlotys)
(Reporting by Mateusz Rabiega; editing by Jason Neely and Elaine Hardcastle)
((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))
The views and 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 debut is good, personally I was expecting (a jump of) around 10%, we have mid-teens, so it's a surprise for the market" said BDM analyst Krzysztof Pado. The analyst said long-term performance will depend on delivering management's "ambitious" plans to increase sales to retail clients, and high dividend payouts. Murapol's debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market.
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He added that the company's debut performance had closed the valuation gap with most of its peers in terms of its expected earnings. Its listed rivals include Echo Investment ECH.WA, Develia DVLP.WA, Atal 1AT.WA, and Dom Development DOMP.WA which range in value from 1.69 billion to 4.05 billion zlotys. Murapol's debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market.
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"The debut is good, personally I was expecting (a jump of) around 10%, we have mid-teens, so it's a surprise for the market" said BDM analyst Krzysztof Pado. Murapol's debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market. ($1 = 3.9189 zlotys) (Reporting by Mateusz Rabiega; editing by Jason Neely and Elaine Hardcastle) ((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;)) The views and 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 0935 GMT the shares were up 15.4%. Murapol has been operating for over 22 years in the country's residential market across 19 cities. The homebuilder says its competitive edge lays in geographic diversification as well as a large landbank.
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59c224d9-3048-4d9b-922b-e560d3a043dc
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713184.0
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2023-12-12 00:00:00 UTC
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Foreign multinationals in Ireland shed jobs for first time in over a decade
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https://www.nasdaq.com/articles/foreign-multinationals-in-ireland-shed-jobs-for-first-time-in-over-a-decade
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Down 0.3% in year to end-October
Tech layoffs offset growth in all other sectors
DUBLIN, Dec 15 (Reuters) - Employment at foreign multinational companies in Ireland fell by 0.3% in the year to end-October in the first annual decline in over a decade as tech layoffs offset jobs growth in every other sector, the state investment agency said on Friday.
Ireland is hugely reliant on foreign multinationals, which have almost doubled their workforce in the last decade.
That number fell to 300,583 from 301,475 in the year to end-October, making up around 11.3% of the entire labour market.
The agency, IDA Ireland, said it still won slightly more new investments in the last 12 months than a year earlier, enabling the creation of almost 19,000 jobs.
However those investments led to fewer jobs than the record 32,426 added in 2022 and was the lowest annual total since 2016.
The numbers employed in the information and communications services sector fell by 2.9% after a number of big employers including Meta META.O, Accenture ACN.N and Stripe laid off Irish staff as part of global cutbacks.
Job growth was recorded across all other sectors, which IDA said underscored the importance of diversification as it seeks to attract new investment to Ireland.
(Reporting by Padraic Halpin; editing by Jason Neely)
((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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Down 0.3% in year to end-October Tech layoffs offset growth in all other sectors DUBLIN, Dec 15 (Reuters) - Employment at foreign multinational companies in Ireland fell by 0.3% in the year to end-October in the first annual decline in over a decade as tech layoffs offset jobs growth in every other sector, the state investment agency said on Friday. The agency, IDA Ireland, said it still won slightly more new investments in the last 12 months than a year earlier, enabling the creation of almost 19,000 jobs. Job growth was recorded across all other sectors, which IDA said underscored the importance of diversification as it seeks to attract new investment to Ireland.
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Down 0.3% in year to end-October Tech layoffs offset growth in all other sectors DUBLIN, Dec 15 (Reuters) - Employment at foreign multinational companies in Ireland fell by 0.3% in the year to end-October in the first annual decline in over a decade as tech layoffs offset jobs growth in every other sector, the state investment agency said on Friday. The agency, IDA Ireland, said it still won slightly more new investments in the last 12 months than a year earlier, enabling the creation of almost 19,000 jobs. Job growth was recorded across all other sectors, which IDA said underscored the importance of diversification as it seeks to attract new investment to Ireland.
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Down 0.3% in year to end-October Tech layoffs offset growth in all other sectors DUBLIN, Dec 15 (Reuters) - Employment at foreign multinational companies in Ireland fell by 0.3% in the year to end-October in the first annual decline in over a decade as tech layoffs offset jobs growth in every other sector, the state investment agency said on Friday. The numbers employed in the information and communications services sector fell by 2.9% after a number of big employers including Meta META.O, Accenture ACN.N and Stripe laid off Irish staff as part of global cutbacks. Job growth was recorded across all other sectors, which IDA said underscored the importance of diversification as it seeks to attract new investment to Ireland.
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Down 0.3% in year to end-October Tech layoffs offset growth in all other sectors DUBLIN, Dec 15 (Reuters) - Employment at foreign multinational companies in Ireland fell by 0.3% in the year to end-October in the first annual decline in over a decade as tech layoffs offset jobs growth in every other sector, the state investment agency said on Friday. That number fell to 300,583 from 301,475 in the year to end-October, making up around 11.3% of the entire labour market. Job growth was recorded across all other sectors, which IDA said underscored the importance of diversification as it seeks to attract new investment to Ireland.
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2023-12-12 00:00:00 UTC
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Homebuilder Murapol up 13.6% in first Warsaw IPO in two years
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https://www.nasdaq.com/articles/homebuilder-murapol-up-13.6-in-first-warsaw-ipo-in-two-years
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Adds details from paragraph 3
GDANSK, Dec 15 (Reuters) - Shares in Polish homebuilder Murapol MURP.WA rose 13.6% on their stock market debut in Warsaw on Friday, the market's first initial public offering (IPO) in two years.
The company priced its IPO at 33 zlotys per share, giving it a valuation of 1.35 billion zlotys ($344.48 million).
Friday's debut at 37.50 zlotys, boosted that to 1.53 billion, compared with listed rivals Echo Investment ECH.WA, Develia DVLP.WA, Atal 1AT.WA, and Dom Development DOMP.WA ranging from 1.69 billion to 4.05 billion zlotys.
Murapol's debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market.
The company's share price performance will be closely watched, especially given its high ROE and forecast of strong dividend yield, said BDM brokerage analyst Krzysztof Pado.
He added that the recent performance of the WIG index .WIG was also supportive. However, he also said that the real estate index .NIER was in "lateral movement", which could hamper investors' appetite.
The analyst said long-term performance will depend on delivering management's "ambitious" plans to increase sales to retail clients, and high dividend payouts.
The company has been operating for over 22 years in the country's residential market across 19 cities. The homebuilder says its competitive edge lays in geographic diversification as well as a large landbank.
At 0826 GMT the shares were up 14.9%.
($1 = 3.9189 zlotys)
(Reporting by Mateusz Rabiega; editing by Jason Neely and Elaine Hardcastle)
((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Murapol's debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market. The company's share price performance will be closely watched, especially given its high ROE and forecast of strong dividend yield, said BDM brokerage analyst Krzysztof Pado. The analyst said long-term performance will depend on delivering management's "ambitious" plans to increase sales to retail clients, and high dividend payouts.
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Adds details from paragraph 3 GDANSK, Dec 15 (Reuters) - Shares in Polish homebuilder Murapol MURP.WA rose 13.6% on their stock market debut in Warsaw on Friday, the market's first initial public offering (IPO) in two years. The company priced its IPO at 33 zlotys per share, giving it a valuation of 1.35 billion zlotys ($344.48 million). The company's share price performance will be closely watched, especially given its high ROE and forecast of strong dividend yield, said BDM brokerage analyst Krzysztof Pado.
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Adds details from paragraph 3 GDANSK, Dec 15 (Reuters) - Shares in Polish homebuilder Murapol MURP.WA rose 13.6% on their stock market debut in Warsaw on Friday, the market's first initial public offering (IPO) in two years. Murapol's debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market. The company's share price performance will be closely watched, especially given its high ROE and forecast of strong dividend yield, said BDM brokerage analyst Krzysztof Pado.
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Adds details from paragraph 3 GDANSK, Dec 15 (Reuters) - Shares in Polish homebuilder Murapol MURP.WA rose 13.6% on their stock market debut in Warsaw on Friday, the market's first initial public offering (IPO) in two years. The company priced its IPO at 33 zlotys per share, giving it a valuation of 1.35 billion zlotys ($344.48 million). The company's share price performance will be closely watched, especially given its high ROE and forecast of strong dividend yield, said BDM brokerage analyst Krzysztof Pado.
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7d552195-12db-4f30-8ea9-acd2c7facb78
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713186.0
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2023-12-12 00:00:00 UTC
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Britain weighs new consultation on social media impact on teens
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https://www.nasdaq.com/articles/britain-weighs-new-consultation-on-social-media-impact-on-teens
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LONDON, Dec 15 (Reuters) - Britain could look at further measures to protect young teenagers from the risks of social media in the new year following the introduction of new online safety laws focused on children and the removal of illegal content, a minister said.
The Online Safety Act, which became law in October, requires platforms like Meta's META.O Instagram and Alphabet's GOOGL.O YouTube to strengthen controls around illegal content and age-checking measures.
Major platforms including Instagram, YouTube and Snapchat require users to be at least 13 years old.
A Bloomberg report said the British government was studying a crackdown on social media access for children under the age of 16, including potential bans.
Science Minister Andrew Griffith said on Friday that the government always sought to find a balance between important freedoms and putting parents in control.
"If there is a consultation at some point in the future, and as I say that's speculation at this point, looking at how you can continue to protect minors as opposed to the freedom of the internet for adults is always something that a sensible government I think would look at," he told Times Radio.
(Reporting by Paul Sandle and Sarah Young; editing by James Davey)
((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.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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LONDON, Dec 15 (Reuters) - Britain could look at further measures to protect young teenagers from the risks of social media in the new year following the introduction of new online safety laws focused on children and the removal of illegal content, a minister said. The Online Safety Act, which became law in October, requires platforms like Meta's META.O Instagram and Alphabet's GOOGL.O YouTube to strengthen controls around illegal content and age-checking measures. A Bloomberg report said the British government was studying a crackdown on social media access for children under the age of 16, including potential bans.
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LONDON, Dec 15 (Reuters) - Britain could look at further measures to protect young teenagers from the risks of social media in the new year following the introduction of new online safety laws focused on children and the removal of illegal content, a minister said. The Online Safety Act, which became law in October, requires platforms like Meta's META.O Instagram and Alphabet's GOOGL.O YouTube to strengthen controls around illegal content and age-checking measures. Major platforms including Instagram, YouTube and Snapchat require users to be at least 13 years old.
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LONDON, Dec 15 (Reuters) - Britain could look at further measures to protect young teenagers from the risks of social media in the new year following the introduction of new online safety laws focused on children and the removal of illegal content, a minister said. The Online Safety Act, which became law in October, requires platforms like Meta's META.O Instagram and Alphabet's GOOGL.O YouTube to strengthen controls around illegal content and age-checking measures. (Reporting by Paul Sandle and Sarah Young; editing by James Davey) ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.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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LONDON, Dec 15 (Reuters) - Britain could look at further measures to protect young teenagers from the risks of social media in the new year following the introduction of new online safety laws focused on children and the removal of illegal content, a minister said. The Online Safety Act, which became law in October, requires platforms like Meta's META.O Instagram and Alphabet's GOOGL.O YouTube to strengthen controls around illegal content and age-checking measures. Science Minister Andrew Griffith said on Friday that the government always sought to find a balance between important freedoms and putting parents in control.
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2023-12-12 00:00:00 UTC
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The Federal Reserve Just Made These 2 Stocks Big Winners, and Shareholders Are More Bullish Than Ever
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https://www.nasdaq.com/articles/the-federal-reserve-just-made-these-2-stocks-big-winners-and-shareholders-are-more-bullish
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Investors have been nervous all year about the impact that the Federal Reserve has had on the overall economy. Many market participants perceived the Fed as having been late in responding to inflationary pressures. They've also been concerned about the rapid pace of interest-rate increases that the monetary-policy body implemented to fight inflation.
Therefore, when the Fed said on Wednesday that it would leave interest rates unchanged in December and expected to start cutting rates in the coming year, investors couldn't have been more pleased. The move launched a rally that sent the Dow Jones Industrial Average (DJINDICES: ^DJI) to a record high and saw other stock market indexes climb to their best levels in nearly two years.
Yet even as the broader market rallied, some stocks definitely benefited the most from the Fed's apparent pivot. Below, you'll learn more about why Upstart Holdings (NASDAQ: UPST) and Affirm Holdings (NASDAQ: AFRM) were big winners in the aftermath of the Fed announcement -- and why they could keep moving higher in 2024.
Upstart hopes for a reversal of credit trends
Shares of Upstart Holdings were up more than 20% on Wednesday following the Fed decision. They continued to gain ground on Thursday, rising another 6% and aiming to reverse what's been a precipitous drop in recent years.
The fast pace of interest-rate increases wrought havoc in some areas of the economy. Financial stocks, in particular, suffered, as many deposit customers sought to withdraw their assets to pursue higher-rate opportunities elsewhere.
Meanwhile, the steep rise in loan rates made many bank customers reluctant to take out new loans. That hurt Upstart, which has built partnerships with numerous financial institutions in originating personal and auto loans with its artificial intelligence (AI)-driven credit-rating model.
The Fed decision could help Upstart in multiple ways. If rates start to fall, then Upstart's banking partners could be in a stronger financial position from which to pursue growth opportunities in lending. That could get loan origination volume moving back upward to more normal levels.
At the same time, falling rates could also help borrowers by making them less likely to default on their loans. Notably, much of the concern about Upstart has surrounded loans it has kept on its books, so a lower default rate could produce an immediate positive impact on Upstart's business.
The company's stock is still down sharply from its highs above $300 per share in 2021. With the stock still trading below where it did shortly after its late 2020 initial public offering, Upstart looks like an attractive buy to many growth-minded investors.
Affirm looks to strong consumers
Elsewhere, shares of Affirm Holdings were up 12% on Wednesday and kept rising on Thursday, with a more modest 1% gain. The buy now, pay later (BNPL) specialist not only stands to benefit from lower rates, but also has enjoyed unexpected strength from shoppers during the holiday season.
Affirm's business model makes access to capital essential. By advancing money to merchants in exchange for taking on installment payment credit risk with shoppers, Affirm counts on being able to obtain financing cheaply. It also counts on its customers being able to repay their obligations. Rising interest rates through 2023 made capital more expensive and put pressure on purchasers.
If interest rates fall in 2024, it would potentially leave consumers in stronger financial shape and make it easier for Affirm to get the capital it needs to operate effectively. Moreover, with a greater than 70% surge in the number of shopping orders using BNPL services during the Thanksgiving holiday week, Affirm stands to benefit as a partner to major e-commerce marketplaces.
Affirm's stock remains almost 75% below its late 2021 highs. That gives it ample room to run higher, particularly if shoppers remain strong and the macroeconomic environment gets more favorable.
Should you invest $1,000 in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Upstart 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
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. 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 move launched a rally that sent the Dow Jones Industrial Average (DJINDICES: ^DJI) to a record high and saw other stock market indexes climb to their best levels in nearly two years. That hurt Upstart, which has built partnerships with numerous financial institutions in originating personal and auto loans with its artificial intelligence (AI)-driven credit-rating model. Moreover, with a greater than 70% surge in the number of shopping orders using BNPL services during the Thanksgiving holiday week, Affirm stands to benefit as a partner to major e-commerce marketplaces.
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Therefore, when the Fed said on Wednesday that it would leave interest rates unchanged in December and expected to start cutting rates in the coming year, investors couldn't have been more pleased. Notably, much of the concern about Upstart has surrounded loans it has kept on its books, so a lower default rate could produce an immediate positive impact on Upstart's business. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Upstart wasn't one of them.
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Notably, much of the concern about Upstart has surrounded loans it has kept on its books, so a lower default rate could produce an immediate positive impact on Upstart's business. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Upstart wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Dan Caplinger has no position in any of the stocks mentioned.
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Upstart hopes for a reversal of credit trends Shares of Upstart Holdings were up more than 20% on Wednesday following the Fed decision. Affirm's stock remains almost 75% below its late 2021 highs. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Upstart wasn't one of them.
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2023-12-12 00:00:00 UTC
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After This Landmark Win, Is CRISPR Therapeutics a Buy?
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https://www.nasdaq.com/articles/after-this-landmark-win-is-crispr-therapeutics-a-buy
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CRISPR Therapeutics (NASDAQ: CRSP) scored a major win in recent days, earning the world's first regulatory nod for a CRISPR-based gene-editing treatment. The U.S. Food and Drug Administration (FDA) approved Casgevy (developed as exa-cel) for sickle cell disease (SCD) and will consider it for beta thalassemia early next year. A few weeks earlier, U.K. regulators authorized the therapy for both blood disorders.
This represents CRISPR Therapeutics' first commercialized product, meaning revenue growth is just ahead. Since the U.S. approval, though, the company's shares have slipped, falling a little more than 4%. With its first major product approval behind it, has CRISPR Therapeutics said goodbye to its biggest share-performance catalyst, or could this biotech player gain over the long term? Let's find out if the shares are a buy after the company's landmark win.
Image source: Getty Images.
A gene-editing specialist
First, a bit of background on the company and its exciting new product. CRISPR Therapeutics is a specialist in gene editing, or the repair of faulty genes responsible for disease. The company uses a technique inspired by the way some bacteria protect themselves from viruses. It's called CRISPR, short for clustered regularly interspaced short palindromic repeats of genetic information.
CRISPR gene editing involves the cutting of DNA at a particular location, allowing a natural repair process to happen.
The company uses this technique throughout its pipeline, so a nod from regulatory agencies is a vote of confidence in this innovative technology.
CRISPR Therapeutics partnered with big biotech Vertex Pharmaceuticals on Casgevy. Vertex has taken on 60% of the program's expenses but also keeps 60% of profit. This is a good deal for the smaller company as it allows it to benefit from Vertex's commercial expertise -- Vertex already markets billions of dollars of cystic fibrosis drugs annually -- and minimize its costs. At the same time, even a 40% share of profit could be big for CRISPR Therapeutics as Casgevy has the potential to become a blockbuster.
Today, treatments for sickle cell disease and beta thalassemia are limited, and Casgevy is designed as a one-time curative therapy. So, in spite of the complex treatment procedure, involving blood stem cell collection and a chemotherapy phase, patients and doctors may flock to this new option. Today, about 16,000 patients are eligible for the treatment, according to CRISPR Therapeutics and Vertex.
A $2 million price tag
Revenue growth won't happen overnight though, as the treatment procedure takes a period of months, so it will take time to recruit patients and launch their therapies. The companies are also working with payers regarding reimbursements for the treatment, which carries a list price of $2.2 million.
Now, let's take a look at CRISPR Therapeutics' stock. The shares have climbed about 50% this year on anticipation of the regulatory win, but they remain considerably lower than their peak when there was much less visibility on future revenue. Even if the shares don't return to that high point, revenue growth ahead should offer them a significant lift over time.
Let's consider our question: Is CRISPR Therapeutics a buy after its big win? It's true the approval may have been baked in to today's share price, but the future revenue potential isn't. And this revenue, when it starts and as it grows, could represent an ongoing catalyst for the stock. It's also important to remember that CRISPR Therapeutics has a pipeline of candidates based on the same gene-editing technology. Any progress there could also support share performance.
So CRISPR Therapeutics' share price and growth catalysts are far from over. The stock may not soar from here overnight, but that's OK. Long-term investors are likely thinking of potential over at least five years, and from that perspective, CRISPR Therapeutics looks like an excellent buy right now.
Should you invest $1,000 in CRISPR Therapeutics right now?
Before you buy stock in CRISPR Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and CRISPR Therapeutics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CRISPR Therapeutics (NASDAQ: CRSP) scored a major win in recent days, earning the world's first regulatory nod for a CRISPR-based gene-editing treatment. The U.S. Food and Drug Administration (FDA) approved Casgevy (developed as exa-cel) for sickle cell disease (SCD) and will consider it for beta thalassemia early next year. So, in spite of the complex treatment procedure, involving blood stem cell collection and a chemotherapy phase, patients and doctors may flock to this new option.
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This represents CRISPR Therapeutics' first commercialized product, meaning revenue growth is just ahead. A $2 million price tag Revenue growth won't happen overnight though, as the treatment procedure takes a period of months, so it will take time to recruit patients and launch their therapies. Before you buy stock in CRISPR Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and CRISPR Therapeutics wasn't one of them.
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Now, let's take a look at CRISPR Therapeutics' stock. So CRISPR Therapeutics' share price and growth catalysts are far from over. Before you buy stock in CRISPR Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and CRISPR Therapeutics wasn't one of them.
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Now, let's take a look at CRISPR Therapeutics' stock. So CRISPR Therapeutics' share price and growth catalysts are far from over. Before you buy stock in CRISPR Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and CRISPR Therapeutics wasn't one of them.
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2023-12-12 00:00:00 UTC
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Better Bull Market Buy: Alibaba vs. Etsy Stock
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https://www.nasdaq.com/articles/better-bull-market-buy%3A-alibaba-vs.-etsy-stock
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Alibaba Group (NYSE: BABA) and Etsy (NASDAQ: ETSY) are two of the more beaten-down e-commerce stocks right now. The Chinese e-commerce stock has struggled with a weak economy and restrictions imposed by a government crackdown, while Etsy has seen its growth stagnate following a boom during the pandemic.
However, a new bull market could change market sentiment, lifting both of these unloved stocks in a stronger economy. But which is the better buy of the two? Two Motley Fool contributors offer their takes on which will do better in the coming bull market.
Image source: Getty Images.
Alibaba is cheap and has big growth potential
Keith Noonan: The last couple of years were generally quite brutal for Chinese tech stocks. In addition to concerns that the country's government will make moves to exercise greater control over influential tech players, lingering pandemic-related challenges dampened investors' enthusiasm, and sluggish macroeconomic recovery derailed some formerly promising growth stories. Rising geopolitical tensions between China and the U.S. also increased bearish sentiment surrounding the latter company's tech sector.
Due to the slew of macro challenges and some uneven business performance, Chinese e-commerce and cloud-computing giant Alibaba saw its stock struggle. The company's share price is down 18% year to date, and it trades 77% off of its high.
Despite the macroeconomic headwinds and big sell-offs for the stock, Alibaba's recent growth has been encouraging. Revenue increased roughly 9% year over year to reach approximately $30.8 billion in the third quarter, and non-GAAP (adjusted) earnings per American depositary share rose 21% to hit $2.14.
BABA PE Ratio (Forward) data by YCharts
Trading at just 8 times this year's expected earnings, Alibaba stock looks cheaply valued and could see its valuation rebound far above current levels. I think there's a good chance that China's e-commerce industry and the overall economy will eventually return to posting stronger growth, and Alibaba's strong industry positioning, opportunities in artificial intelligence, and deeply discounted valuation suggest the stock has the potential to be a big winner.
Of course, Etsy is also solidly profitable and trades at reasonable earnings multiples, but I think there's a greater risk that the smaller company is stagnating.
The specialty e-commerce player's gross merchandise sales actually fell 1.4% across this year's first three quarters, and the company's revenue growth was supported by increasing the commission taken for transactions conducted through its service. That's not inherently worrying, but continuing to increase the take rate could threaten engagement on the platform -- and there already seems to be some softness on that front.
While investing in Chinese companies comes with additional risks that investors need to consider, I think Alibaba's current valuation leaves the door open for patient investors to see explosive returns.
Etsy's rebound could be starting
Jeremy Bowman: There's no question that Etsy struggled of late, and management fully acknowledged that it's disappointed with its recent results. The company took a $1 billion write-down a year ago on its acquisitions of Depop and Elo7, putting a major dent in the company's "House of Brands" strategy. It was also a clear indication that it overpaid for both of those companies when it acquired them during the pandemic. Etsy later sold Elo7 over the summer for significantly less than it paid for it.
Recent results were also unimpressive as gross merchandise sales (GMS) were essentially flat over the last several quarters, but there is one key sign that things could be turning around for the online marketplace of handmade and vintage goods.
In the third quarter, the company saw flat gross merchandise sales growth, but its user base is starting to grow. It reported 19% growth year over year in active sellers, reaching 8.8 million, and 3.4% growth in active buyers to 97.3 million. While that growth in active buyers might seem weak, that includes the sale of Elo7.
Sellers and buyers are starting to return, it appears, after a long lull and a post-pandemic decline, which should lead to a gradual rebound in sales and potentially a nice bump during the key holiday quarter.
The other reason Etsy should start to recover is that consumer discretionary spending should soon normalize following a shift away from goods to services in the economic reopening. An expected decline in interest rates is likely to help boost consumer spending on sites like Etsy as well. The stock has also bounced off of recent lows, climbing more than 40% since its third-quarter earnings report, seemingly in anticipation of a recovery and broader market trends.
Finally, Etsy stock is cheap with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of around 15 based on its guidance for the year. Even on a generally accepted accounting principles (GAAP) basis, the stock is only trading at price-to-earnings ratio of around 30. In other words, if Etsy's top-line growth can spring back to life, the stock has a lot of upside potential in the next bull market.
Should you invest $1,000 in Etsy right now?
Before you buy stock in Etsy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Etsy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Jeremy Bowman has positions in Etsy. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Etsy. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to concerns that the country's government will make moves to exercise greater control over influential tech players, lingering pandemic-related challenges dampened investors' enthusiasm, and sluggish macroeconomic recovery derailed some formerly promising growth stories. BABA PE Ratio (Forward) data by YCharts Trading at just 8 times this year's expected earnings, Alibaba stock looks cheaply valued and could see its valuation rebound far above current levels. Sellers and buyers are starting to return, it appears, after a long lull and a post-pandemic decline, which should lead to a gradual rebound in sales and potentially a nice bump during the key holiday quarter.
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I think there's a good chance that China's e-commerce industry and the overall economy will eventually return to posting stronger growth, and Alibaba's strong industry positioning, opportunities in artificial intelligence, and deeply discounted valuation suggest the stock has the potential to be a big winner. In the third quarter, the company saw flat gross merchandise sales growth, but its user base is starting to grow. It reported 19% growth year over year in active sellers, reaching 8.8 million, and 3.4% growth in active buyers to 97.3 million.
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Alibaba Group (NYSE: BABA) and Etsy (NASDAQ: ETSY) are two of the more beaten-down e-commerce stocks right now. Before you buy stock in Etsy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Etsy wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jeremy Bowman has positions in Etsy.
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The Chinese e-commerce stock has struggled with a weak economy and restrictions imposed by a government crackdown, while Etsy has seen its growth stagnate following a boom during the pandemic. Before you buy stock in Etsy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Etsy wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jeremy Bowman has positions in Etsy.
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deb7c059-f4ac-4493-98d0-94d7865c3b85
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713190.0
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2023-12-12 00:00:00 UTC
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C3.ai Stock Alert: Should You Invest Before 2023 Ends?
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https://www.nasdaq.com/articles/c3.ai-stock-alert%3A-should-you-invest-before-2023-ends
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Founded in 2009, C3.ai (NYSE:AI) aims to empower businesses with artificial intelligence. CEO Thomas Siebel, who offers over 40 customizable AI applications across various industries, sees the AI opportunity as transformative as the internet or smartphones. Recent fiscal 2024 Q2 results reveal notable growth in customer engagements and revenue, prompting investor consideration. This has considerable implications for AI stock.
C3.ai’s profit expectations have shifted. Profitability (adjusted) is now projected for fiscal Q4. However, despite a solid earnings beat, disappointment arose among investors anticipating immediate profitability. This, in addition to discouraging guidance, has provided some investors with pause.
That said, as the Federal Reserve nears rate cuts, this stock may fly from here. Let’s dive into what investors should make of C3.ai right now.
C3.ai Misses Fiscal Q2
C3.ai shares fell following the company’s Q2 earnings release, in which revenue came in below estimates, and the AI software maker provided a weaker-than-expected outlook. In the October quarter, the company reported a loss of 13 cents per share, worse than the 11-cent loss a year ago.
Revenue increased by 17% to $73.2 million, slightly missing Wall Street estimates. For the current quarter ending in January, the company forecasted revenue to come in at $76 million. Despite strong new booking growth, income guidance was lowered due to increased investments.
Oppenheimer analyst Tim Horan noted that the company prioritizes pilot trials and transitions to consumption-priced services, impacting short-term growth and margins.
The software maker adjusted its profitability target due to increased investments in AI. AI stock dropped 10.8% to $26.02 after a 172% gain in 2023. The company anticipates revenue growth as AI pilot projects move to commercial production.
Deutsche Bank (NYSE:DB) analyst Brad Zelnick maintains a sell rating, expressing caution about C3’s conversion and investment pace, visible in results and guidance, with top-line and gross margins affected by a higher mix of pilots.
C3.ai, among many AI stocks, withdrew its adjusted profitability target for this fiscal year amid substantial AI investments.
Revenue Growth is Increasing But At a Slower Pace
Eighteen months ago, C3.ai shifted from a time-consuming subscription-based model to a consumption-based one for quicker deals and cost-effective customer onboarding. This move initially slowed revenue growth during the transition.
In the recent Q2 of fiscal 2024, C3.ai surpassed expectations with a 17% revenue increase to a record $73.2 million. Anticipate gradual but promising growth, requiring investor patience.
Despite ongoing losses, C3.ai invests heavily in growth as well as research and development. Q2 saw a net loss of $69 million, but adjusting for one-off and non-cash expenses like stock-based compensation, the loss was smaller at $15 million. With $762 million in cash and marketable securities, the company can sustain such losses for the foreseeable future.
However, to secure a sustainable increase in its stock price, it needs to demonstrate its ability to generate positive earnings to investors eventually.
Now’s the Time to Be Cautious C3.ai
While mixed quarterly results usually don’t trigger significant stock declines, C3.ai faced a deeper downturn. Investors disliked the near-term financial outlook, with Q3 revenue expectations below consensus estimates and full-year projections slightly below Wall Street averages.
C3.ai saw its stock price plummet more than 40% from its June peak. The company’s valuation remains high despite this more attractive entry point for investors. With a price-to-sales ratio of nearly 12-times and the company’s ongoing unprofitability, I’m not considering AI stock a buy. While a rebound is possible, there are better AI stocks with more favorable risk-reward profiles, at least right now.
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 C3.ai Stock Alert: Should You Invest Before 2023 Ends? 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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Oppenheimer analyst Tim Horan noted that the company prioritizes pilot trials and transitions to consumption-priced services, impacting short-term growth and margins. Deutsche Bank (NYSE:DB) analyst Brad Zelnick maintains a sell rating, expressing caution about C3’s conversion and investment pace, visible in results and guidance, with top-line and gross margins affected by a higher mix of pilots. Revenue Growth is Increasing But At a Slower Pace Eighteen months ago, C3.ai shifted from a time-consuming subscription-based model to a consumption-based one for quicker deals and cost-effective customer onboarding.
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Revenue increased by 17% to $73.2 million, slightly missing Wall Street estimates. The software maker adjusted its profitability target due to increased investments in AI. The company anticipates revenue growth as AI pilot projects move to commercial production.
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C3.ai Misses Fiscal Q2 C3.ai shares fell following the company’s Q2 earnings release, in which revenue came in below estimates, and the AI software maker provided a weaker-than-expected outlook. The company anticipates revenue growth as AI pilot projects move to commercial production. C3.ai, among many AI stocks, withdrew its adjusted profitability target for this fiscal year amid substantial AI investments.
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This has considerable implications for AI stock. Profitability (adjusted) is now projected for fiscal Q4. The company anticipates revenue growth as AI pilot projects move to commercial production.
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713191.0
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2023-12-12 00:00:00 UTC
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Where Will Eli Lilly Be in 5 Years?
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https://www.nasdaq.com/articles/where-will-eli-lilly-be-in-5-years-0
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Eli Lilly (NYSE: LLY) is the top healthcare stock in the world, with a valuation of around $550 billion. Its recently approved weight-loss treatment Zepbound has unlocked a new and exciting growth opportunity for the business. What should investors expect from Eli Lilly over the next five years, and is the stock still worth investing in despite its high valuation?
Eli Lilly will be a big player in the weight-loss market
There's little doubt that Eli Lilly will go after the highly coveted weight-loss market. Market research analysts at Grand View Research see a tremendous opportunity there, projecting the market for global weight management to be worth nearly $300 billion by 2030. That's up from approximately $154 billion today. It's currently growing at a compounded annual growth rate of 9.9%.
Eli Lilly already has an approved weight-loss treatment in Zepbound. In clinical trials, it has helped people lose as much as 26.6% of their body weight after 84 weeks. The company is also working on a once-daily weight-loss pill, orforglipron, which is currently in phase 3 trials. In phase 2, the pill showed that it could help people lose close to 15% of their body weight after 36 weeks.
In August, Eli Lilly acquired Versanis for $1.9 billion. Versanis also has a weight-loss drug in its portfolio, bimagrumab. While Eli Lilly's weight-loss treatments are glucagon-like peptide-1 agonists that help people feel full faster, bimagrumab works by binding to cells to reduce fat mass, without trying to reduce appetite.
It's a relatively modestly sized acquisition for Eli Lilly, but it diversifies the company's efforts in the weight-loss market. It's a clear sign that it's a significant area of focus for the business, and rightfully so given the potential for a top weight-loss drug to not just help people lose weight, but also help with other obesity-related illnesses as well.
Its annual sales could top $50 billion
In 2022, Eli Lilly generated $28.5 billion in annual revenue. But with Zepbound obtaining approval for weight loss and analysts being bullish on this potentially being a drug that can generate tens of billions in revenue at its peak, it's possible for Eli Lilly's annual sales to grow to $50 billion or higher in five years. Plus, it's not just Zepbound -- the company has other growth catalysts in its portfolio.
The company has a treatment for early-stage Alzheimer's, donanemab, which if approved could generate billions in additional revenue for the business. Earlier this year, Eli Lilly also obtained approval for blood cancer therapy, Jaypirca. In October, regulators also approved Omvoh, a treatment for moderate-to-severe active ulcerative colitis.
Given all the growth opportunities that Eli Lilly possesses, it's not unreasonable to expect the business to be on the cusp of some terrific revenue growth over the next five years. And with the business generally producing strong profit margins of at least 20%, it's highly likely that its bottom line will also rise considerably during that stretch.
Could Eli Lilly hit a $1 trillion market cap?
Eli Lilly's valuation today sits at around $550 billion. Year to date, its shares are up around 60%. But there's the potential for the business to be much more valuable in five years. If Eli Lilly generates the growth it's capable of and there are no serious hiccups along the way, there's an outside chance that it could become the first healthcare company to be worth $1 trillion. At this point, it appears to be a question of when that will happen, rather than if.
For investors, that means now could still be a great time to invest in the healthcare company. While Eli Lilly has achieved impressive returns this year, there's still a lot more room for the business to become much more valuable in the future.
Should you invest $1,000 in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And with the business generally producing strong profit margins of at least 20%, it's highly likely that its bottom line will also rise considerably during that stretch. If Eli Lilly generates the growth it's capable of and there are no serious hiccups along the way, there's an outside chance that it could become the first healthcare company to be worth $1 trillion. While Eli Lilly has achieved impressive returns this year, there's still a lot more room for the business to become much more valuable in the future.
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Its annual sales could top $50 billion In 2022, Eli Lilly generated $28.5 billion in annual revenue. But with Zepbound obtaining approval for weight loss and analysts being bullish on this potentially being a drug that can generate tens of billions in revenue at its peak, it's possible for Eli Lilly's annual sales to grow to $50 billion or higher in five years. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them.
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Eli Lilly will be a big player in the weight-loss market There's little doubt that Eli Lilly will go after the highly coveted weight-loss market. But with Zepbound obtaining approval for weight loss and analysts being bullish on this potentially being a drug that can generate tens of billions in revenue at its peak, it's possible for Eli Lilly's annual sales to grow to $50 billion or higher in five years. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them.
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What should investors expect from Eli Lilly over the next five years, and is the stock still worth investing in despite its high valuation? Eli Lilly already has an approved weight-loss treatment in Zepbound. But with Zepbound obtaining approval for weight loss and analysts being bullish on this potentially being a drug that can generate tens of billions in revenue at its peak, it's possible for Eli Lilly's annual sales to grow to $50 billion or higher in five years.
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368ba0f1-d41e-43cb-8cd1-5619fa6c74e1
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713192.0
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2023-12-12 00:00:00 UTC
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New Strong Buy Stocks for December 15th
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https://www.nasdaq.com/articles/new-strong-buy-stocks-for-december-15th-1
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
3D Systems Corporation DDD: This company that provides 3D printing and digital manufacturing solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 40.9% over the last 60 days.
3D Systems Corporation Price and Consensus
3D Systems Corporation price-consensus-chart | 3D Systems Corporation Quote
Deckers Outdoor Corporation DECK: This footwear, apparel, and accessories company has seen the Zacks Consensus Estimate for its current year earnings increasing 4.8% over the last 60 days.
Deckers Outdoor Corporation Price and Consensus
Deckers Outdoor Corporation price-consensus-chart | Deckers Outdoor Corporation Quote
Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.
Origin Bancorp, Inc. Price and Consensus
Origin Bancorp, Inc. price-consensus-chart | Origin Bancorp, Inc. Quote
Bayerische Motoren Werke Aktiengesellschaft BMWYY: This automobile giant has seen the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.
Bayerische Motoren Werke AG Sponsored ADR Price and Consensus
Bayerische Motoren Werke AG Sponsored ADR price-consensus-chart | Bayerische Motoren Werke AG Sponsored ADR Quote
Casey's General Stores, Inc. CASY: This chain of convenience stores has seen the Zacks Consensus Estimate for its current year earnings increasing 3.6% over the last 60 days.
Casey's General Stores, Inc. Price and Consensus
Casey's General Stores, Inc. price-consensus-chart | Casey's General Stores, Inc. Quote
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
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
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
3D Systems Corporation (DDD) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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Bayerische Motoren Werke AG Sponsored ADR Price and Consensus Bayerische Motoren Werke AG Sponsored ADR price-consensus-chart | Bayerische Motoren Werke AG Sponsored ADR Quote Casey's General Stores, Inc. CASY: This chain of convenience stores has seen the Zacks Consensus Estimate for its current year earnings increasing 3.6% over the last 60 days. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Deckers Outdoor Corporation Price and Consensus Deckers Outdoor Corporation price-consensus-chart | Deckers Outdoor Corporation Quote Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days. Bayerische Motoren Werke AG Sponsored ADR Price and Consensus Bayerische Motoren Werke AG Sponsored ADR price-consensus-chart | Bayerische Motoren Werke AG Sponsored ADR Quote Casey's General Stores, Inc. CASY: This chain of convenience stores has seen the Zacks Consensus Estimate for its current year earnings increasing 3.6% over the last 60 days. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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Deckers Outdoor Corporation Price and Consensus Deckers Outdoor Corporation price-consensus-chart | Deckers Outdoor Corporation Quote Origin Bancorp, Inc. OBK: This bank holding company for Origin Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days. Bayerische Motoren Werke AG Sponsored ADR Price and Consensus Bayerische Motoren Werke AG Sponsored ADR price-consensus-chart | Bayerische Motoren Werke AG Sponsored ADR Quote Casey's General Stores, Inc. CASY: This chain of convenience stores has seen the Zacks Consensus Estimate for its current year earnings increasing 3.6% over the last 60 days. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: 3D Systems Corporation DDD: This company that provides 3D printing and digital manufacturing solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 40.9% over the last 60 days. Origin Bancorp, Inc. Price and Consensus Origin Bancorp, Inc. price-consensus-chart | Origin Bancorp, Inc. Quote Bayerische Motoren Werke Aktiengesellschaft BMWYY: This automobile giant has seen the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : 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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7ed0dff3-31de-4465-b190-344608a893b4
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713193.0
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2023-12-12 00:00:00 UTC
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3 Top AI Stocks Rallying Into 2024 -- Are They a Buy Now?
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https://www.nasdaq.com/articles/3-top-ai-stocks-rallying-into-2024-are-they-a-buy-now
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After a tough summer and early autumn, the stock market is rumbling again as 2023 draws to a close. Artificial intelligence (AI) stocks, and especially beaten-down small- and mid-cap stocks, are starting to heat up. Anything to do with AI is of particular interest to investors right now.
But not all AI stocks are an automatic buy. Indeed, after rallying, some AI stocks tout high valuations again, and they will need to prove they can grow into those valuations in the coming years. Here are three rallying AI stocks, and info on whether they're a buy for 2024 and beyond.
1. Symbotic: Is it a mega-AI robotics provider in the making?
Symbotic (NASDAQ: SYM) is a supply chain infrastructure company. It sells robotics and AI software for warehouses, especially for large retailers and wholesalers, most notably for one of its big shareholders Walmart. The company is the real deal. After its mid-2022 initial public offering -- not ideal timing given the bear market last year -- revenue has risen at a fast-and-steady pace.
In the third quarter of 2023, revenue increased 61% year over year to $392 million. Suffice it to say it's been an epic run, and Symbotic stock has bucked the trend and keeps reapproaching all-time highs.
Data by YCharts.
Therein lies an issue. Symbotic's preferred profitability metric, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), did show the company flipped from red to black ink in Q3. It reported adjusted EBITDA of $13.3 million, versus a loss of $20.5 million last year. Free cash flow (which excludes $32.5 million in employee stock-based compensation, or SBC) was positive $43.6 million.
But value investors would likely pass, as generally accepted accounting principles (GAAP) net losses were still sizable at $45.4 million. More work needs to be done.
For the right investor, a smaller company like Symbotic working toward turning the corner on profitability might be investable -- especially when there's measurable progress. A clean balance sheet with no debt and $546 million in cash and short-term investments also helps.
However, I still have serious doubts about valuation. When factoring for Symbotic's class A and class V stock -- the latter of which gives founder and CEO Rick Cohen control over the business -- Symbotic is valued at a market cap of $28 billion as of this writing.
Japanese investment holdings company SoftBank Group is also a big shareholder, but Symbotic competes with some point solutions from Berkshire Grey, another supply chain robotics company that SoftBank acquired earlier in 2023. However, SoftBank and Symbotic formed a joint venture together called GreenBox over the summer of 2023, which SoftBank owns the majority of.
At over 25 times trailing-12-month revenue, it seems like a steep premium for a company that's still not turning a profit by most metrics and is being controlled by just a few shareholders. I believe this AI company should be passed up for now.
2. MongoDB: Big data software is back on the rise
Though still some 35% down from its 2021 highs, MongoDB (NASDAQ: MDB) stock rallied grandly in 2023. The stock price has more than doubled, underpinned by the Q3 fiscal 2024 earnings update (for the three-month period ended in October 2023).
MongoDB reported 30% year-over-year revenue growth in Q3 to $433 million, blowing out management's anticipated revenue of just $404 million provided a few months prior. Adjusted operating income of $78.5 million also blew away the outlook for as much as $44 million.
Free cash flow was $36 million, a sizable improvement from negative free cash flow of $7 million in Q3 a year ago -- although investors in search of a long-term value will still want to steer clear as this profit metric excludes the $116 million in employee SBC. That brings the SBC so far this year up to $333 million, although that's just 1.2% of the current market cap of $28 billion.
Nevertheless, much like the other AI stocks on this list, MongoDB still has some work to do in preventing shareholder dilution. As long as the market cap valuation remains elevated, the company's SBC will likely be overlooked. At some point, perhaps a stock repurchase plan can be used to offset this dilution. After all, the balance sheet was in good shape with over $1.9 billion in cash and short-term investments, offset by debt of $1.1 billion.
MongoDB's big data management platform has established itself as a key part of managing new generative AI workflows, as well as managing cloud software overall. New products keep rolling out with the aim of making life easier for software developers. Innovation will be important as software development in the generative AI age won't get any easier. So far, MongoDB keeps delivering the goods.
However, I called the stock a hold in early September, and shares have dipped and recovered back to early September levels since then. I'm reiterating my feelings on this stock for the time being. It boils down to valuation as the share price has gotten hot again. The company is valued at nearly 18 times trailing-12-month sales, once again a high premium as MongoDB still needs to make progress on profitability. That said, the company's knockout Q3 is promising. Keep this AI software infrastructure stock on your radar in 2024.
3. GitLab: The new building blocks of software
GitLab (NASDAQ: GTLB) is another software stock that's been off to the races as of late. The stock's story is much the same as MongoDB's, as it has been for many other software businesses. GitLab got rumbled by the bear market in 2022, but the generative AI craze is fueling a change. After a November and December rally, GitLab stock is sporting a 35% rally in 2023.
This was once again driven by Q3 financial numbers (the three months ended in October 2023). Revenue of $150 million represented a 32% year-over-year increase. And with bigger sales numbers comes improving profit margins. GAAP operating losses narrowed to $40 million (compared to a loss of $57 million). And on an adjusted basis, GitLab flipped to operating income of $4.7 million (compared to an adjusted operating loss of $22 million last year).
One big shareholder, Alphabet, is probably especially happy. It began buying more stock in GitLab earlier this year, perhaps as a way to further align its Google Cloud segment with GitLab's DevSecOps platform. Microsoft acquired similar (but not entirely the same) DevSecOps offering GitHub back in 2018.
DevSecOps (development, security, and operations) platforms like GitLab are a popular place for IT teams of all sorts to share and work on software code, and GitLab is keeping the pedal to the metal by billing itself as a full-on platform for managing software projects. And in a new era of generative AI, finding new ways to get more efficient in building applications is more important than ever. Using pre-made but customizable software building blocks and AI algorithms is one way to do it.
Additionally, GitLab has been rolling out new features using generative AI -- like its Duo Chat natural-language AI chatbot -- as a way to automate parts of the development process. But like MongoDB, GitLab stock is back into premium-price territory at nearly 18 times trailing-12-month sales. That holds me back from dropping some coin on this company just yet.
Nevertheless, GitLab seems to have weathered the worst of the bear market and is still growing. Further improvement in profitability is promising, and keeping my personal interest piqued. As I often caution, AI businesses with lots of future potential sporting high-growth but high-premium valuations should be purchased in batches over time, perhaps using a dollar-cost averaging plan.
Stock buying suggestions for 2024
For most investors, dollar-cost averaging makes sense headed into 2024, if MongoDB and GitLab meet your needs as a growth investor. Symbotic, though, looks like a safe pass for now given some questions about the business and shareholder structure.
Should you invest $1,000 in Symbotic right now?
Before you buy stock in Symbotic, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Symbotic 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. Nicholas Rossolillo and his clients have positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, GitLab, Microsoft, MongoDB, and Walmart. 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 sells robotics and AI software for warehouses, especially for large retailers and wholesalers, most notably for one of its big shareholders Walmart. Symbotic's preferred profitability metric, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), did show the company flipped from red to black ink in Q3. As I often caution, AI businesses with lots of future potential sporting high-growth but high-premium valuations should be purchased in batches over time, perhaps using a dollar-cost averaging plan.
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Free cash flow was $36 million, a sizable improvement from negative free cash flow of $7 million in Q3 a year ago -- although investors in search of a long-term value will still want to steer clear as this profit metric excludes the $116 million in employee SBC. And on an adjusted basis, GitLab flipped to operating income of $4.7 million (compared to an adjusted operating loss of $22 million last year). Before you buy stock in Symbotic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Symbotic wasn't one of them.
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MongoDB: Big data software is back on the rise Though still some 35% down from its 2021 highs, MongoDB (NASDAQ: MDB) stock rallied grandly in 2023. Free cash flow was $36 million, a sizable improvement from negative free cash flow of $7 million in Q3 a year ago -- although investors in search of a long-term value will still want to steer clear as this profit metric excludes the $116 million in employee SBC. Before you buy stock in Symbotic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Symbotic wasn't one of them.
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I believe this AI company should be passed up for now. Should you invest $1,000 in Symbotic right now? Before you buy stock in Symbotic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Symbotic wasn't one of them.
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713194.0
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2023-12-12 00:00:00 UTC
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Is This Where QuantumScape Has the Rubber Meet the Road?
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https://www.nasdaq.com/articles/is-this-where-quantumscape-has-the-rubber-meet-the-road
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s fair to say the market is warming up to the potential lithium metal battery startup QuantumScape (NYSE:QS) stock holds. The stock is up 23% year-to-date and that’s after it lost 60% of its value in late summer. There’s a tectonic shift underway in battery technology as the EV market expands and it seems likely QuantumScape will be a big part of it. Faster charging and longer range will boost EV acceptance.
That’s what QuantumScape offers. Even if its advances are just the next step in the evolution of EV batteries, the advances the battery maker is making could be financially substantial for it. Let’s see how QuantumScape is progressing and whether the trajectory of QS stock should be one significantly higher.
QS Stock Leapfrogging forward
QuantumScape reported third quarter financial results that pleasantly surprised the market. Net losses were only $0.23 per share, a nice improvement of the $0.27 per share loss last year. That also handily trounced analyst estimates. Yet, because they were really non-operational improvements, investors shouldn’t get too excited about it.
The losses narrowed because of earning greater interest income and a onetime unrealized gain on its short-term investments. That has nothing to do with how the business is running, so any enthusiasm should be tempered by that.
Except the business is improving. QuantumScape also announced its best-performing prototype battery cell the A0 is far exceeding expectations. The battery maker is looking for its batteries to achieve 800 cycles with 80% energy retention. The A0 reached 1,000 full cycle equivalents with over 95% discharge energy retention.
QuantumScape says it is “not aware of any automotive-format lithium-metal battery that has shown such high discharge energy retention over a comparable cycle count, at room temperature and modest pressure, regardless of C-rate.”
C-rates are the charge/discharge rate of batteries. A battery’s capacity rated 1C means a fully charged battery rated at one amp hour should provide one amp for one hour. The same battery discharging at 0.5C should provide 500 milliamps for two hours, etc.
What’s really of note is the A0 is using the same specification as QuantumScape’s first commercial product, QSE-5. The QSE-5 will have higher-loading cathodes thean the A0 and more efficient packaging. This really advances the potential for QuantumScape’s commercialization plans.
Don’t get too excited yet
QuantumScape is collaborating closely with “a prospective launch customer in the automotive sector” for the QSE-5. So someone is interested in using this technology when the battery maker goes commercial. But that won’t be for a few years yet. And its scale is fairly small at the moment.
It is looking to prove they will be viable across all types of EVs, from passenger and commercial vehicles, to sports-oriented motorsport types. Proof of concept testing is vitally important, but QuantumScape isn’t ready to be putting its batteries into EVs anytime soon.
Which means the battery maker is going to be producing more losses than batteries for the foreseeable future. To keep the lights on, it’s going to need to continuously raise cash. Earlier this year it sold earlier $288 million in new stock. To its credit, QuantumScape now has $1.1 billion in the bank and no debt, a major achievement for a startup, so future dilution will be minimal, at least for a while.
Crimping QuantumScape’s style
But the potential for a lithium shortage could throw a wrench into the system. According to data from BMI, a Fitch Solutions company, the “global lithium supply is expected to enter a deficit relative to demand by 2025.” That could severely crimp QuantumScape’s supply while at the same time raise costs.
The other potential problem is simply falling EV demand. Manufacturers are reporting swollen inventories and Ford (NYSE:F) just announced it is cutting production of its F-150 Lightning due to a lack of sufficient demand.
That means investors should tread lightly here. QuantumScape stock looks like it could be an eventual winner, but it’s not time to back up the truck. An investment here should only be for the smallest, high risk section of your portfolio.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Is This Where QuantumScape Has the Rubber Meet the Road? 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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QS Stock Leapfrogging forward QuantumScape reported third quarter financial results that pleasantly surprised the market. Proof of concept testing is vitally important, but QuantumScape isn’t ready to be putting its batteries into EVs anytime soon. Manufacturers are reporting swollen inventories and Ford (NYSE:F) just announced it is cutting production of its F-150 Lightning due to a lack of sufficient demand.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s fair to say the market is warming up to the potential lithium metal battery startup QuantumScape (NYSE:QS) stock holds. Even if its advances are just the next step in the evolution of EV batteries, the advances the battery maker is making could be financially substantial for it. A battery’s capacity rated 1C means a fully charged battery rated at one amp hour should provide one amp for one hour.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s fair to say the market is warming up to the potential lithium metal battery startup QuantumScape (NYSE:QS) stock holds. Even if its advances are just the next step in the evolution of EV batteries, the advances the battery maker is making could be financially substantial for it. QuantumScape says it is “not aware of any automotive-format lithium-metal battery that has shown such high discharge energy retention over a comparable cycle count, at room temperature and modest pressure, regardless of C-rate.” C-rates are the charge/discharge rate of batteries.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s fair to say the market is warming up to the potential lithium metal battery startup QuantumScape (NYSE:QS) stock holds. The battery maker is looking for its batteries to achieve 800 cycles with 80% energy retention. Rich Duprey has written about stocks and investing for the past 20 years.
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9e2c8a85-fd32-46f5-b9cc-b53eb6551169
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713195.0
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2023-12-12 00:00:00 UTC
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Is SPDR S&P Pharmaceuticals ETF (XPH) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-spdr-sp-pharmaceuticals-etf-xph-a-strong-etf-right-now-9
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Making its debut on 06/19/2006, smart beta exchange traded fund SPDR S&P Pharmaceuticals ETF (XPH) provides investors broad exposure to the Health Care ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $202.76 million, this makes it one of the average sized ETFs in the Health Care ETFs. XPH is managed by State Street Global Advisors. Before fees and expenses, XPH seeks to match the performance of the S&P Pharmaceuticals Select Industry Index.
The S&P Pharmaceuticals Select Industry Index represents the pharmaceuticals sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the US common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Pharmaceuticals Index is a modified equal weight index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.38%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
XPH's heaviest allocation is in the Healthcare sector, which is about 100% of the portfolio.
Taking into account individual holdings, Eli Lilly + Co (LLY) accounts for about 5.17% of the fund's total assets, followed by Johnson + Johnson W/d (JNJ) and Catalent Inc (CTLT).
The top 10 holdings account for about 47.51% of total assets under management.
Performance and Risk
Year-to-date, the SPDR S&P Pharmaceuticals ETF has lost about -1.08% so far, and is down about -4.52% over the last 12 months (as of 12/15/2023). XPH has traded between $35.20 and $44.25 in this past 52-week period.
XPH has a beta of 0.81 and standard deviation of 20.50% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR S&P Pharmaceuticals ETF is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. VanEck Pharmaceutical ETF has $425.81 million in assets, iShares U.S. Pharmaceuticals ETF has $596.77 million. PPH has an expense ratio of 0.36% and IHE charges 0.40%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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SPDR S&P Pharmaceuticals ETF (XPH): ETF Research Reports
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Catalent, Inc. (CTLT) : Free Stock Analysis Report
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
VanEck Pharmaceutical ETF (PPH): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. XPH has a beta of 0.81 and standard deviation of 20.50% for the trailing three-year period, which makes the fund a high risk choice in the space. Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Making its debut on 06/19/2006, smart beta exchange traded fund SPDR S&P Pharmaceuticals ETF (XPH) provides investors broad exposure to the Health Care ETFs category of the market. VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Click to get this free report SPDR S&P Pharmaceuticals ETF (XPH): ETF Research Reports Johnson & Johnson (JNJ) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Catalent, Inc. (CTLT) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here.
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Making its debut on 06/19/2006, smart beta exchange traded fund SPDR S&P Pharmaceuticals ETF (XPH) provides investors broad exposure to the Health Care ETFs category of the market. VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Click to get this free report SPDR S&P Pharmaceuticals ETF (XPH): ETF Research Reports Johnson & Johnson (JNJ) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Catalent, Inc. (CTLT) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here.
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Making its debut on 06/19/2006, smart beta exchange traded fund SPDR S&P Pharmaceuticals ETF (XPH) provides investors broad exposure to the Health Care ETFs category of the market. Before fees and expenses, XPH seeks to match the performance of the S&P Pharmaceuticals Select Industry Index. The top 10 holdings account for about 47.51% of total assets under management.
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c1513e39-819a-45c0-9101-e6b3affc2e4c
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713196.0
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2023-12-12 00:00:00 UTC
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McDonald's Gets Into AI. What Investors Need to Know
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DCOMP
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https://www.nasdaq.com/articles/mcdonalds-gets-into-ai.-what-investors-need-to-know
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nan
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It seems that just about every company is making artificial intelligence (AI) a big part of their growth plans for 2024 and beyond. Whether it's a central element of achieving revenue goals, as with software specialists such as Adobe, or merely a way to complement growth initiatives elsewhere in the business, AI tech holds the promise of boosting efficiency and speeding sales growth for many enterprises.
Even McDonald's (NYSE: MCD) is getting in on the fun. In early December, the company announced a new partnership with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google to use AI in several innovative ways as part of its new growth plan that extends through 2027.
Let's look at the project and what it could mean for McDonald's investors.
What we know
McDonald's management team outlined four pillars of the growth plan in their Dec. 6 annual investor update. AI joins big-picture projects like marketing and new restaurant development as one of these core goals.
Broadly speaking, McDonald's sees room for improving its business from both a customer and an employee perspective. Generative AI can unlock greater speed and efficiency at many steps of the process, including inventory management and tracking and responding to localized demand pattern shifts. "We're excited to see how McDonald's will use our cloud, generative AI, and edge computing tools," Alphabet CEO Sundar Pichai said.
The result should be better fundamentals like reduced order wait times, as well as hotter, fresher food, McDonald's predicts. There's a direct link between gains here and investing metrics such as comparable-store sales growth.
How to know it's working
There are several trends investors can follow to see if the partnership is delivering on its expected results. The first is customer traffic in the core U.S. market. That metric slipped into negative territory in the most recent quarter, potentially due to a mix of increased promotions by rivals.
But McDonald's credited fundamental improvements in its food prep and order delivery times for helping drive stronger traffic in early 2023, and AI could ideally spark a similar bit of positive momentum over the next several quarters and years.
MCD Operating Margin (TTM) data by YCharts
Keep an eye on operating profit margin, too. McDonald's has boosted this core metric into record territory in 2023, partly thanks to rising prices and healthy sales growth. Management believes it can squeeze even more efficiency out of the business, though, likely pushing profitability toward 50% of sales. "Over the past decade, we've evolved our business model significantly," CFO Ian Borden said in the press release. This new approach delivers a "consistently strong [total shareholder return] that's expected to grow," Borden explained.
Still a tasty buy
Investors should consider owning McDonald's stock while they watch this growth program unfold over the next several years. Shares are valued at a more attractive valuation, after all, as the chain underperformed the market in 2023. You can buy McDonald's stock for 26 times earnings today, which is still a premium price compared to the broader market but is down from the over 32 times earnings that investors were paying for the shares in early 2023.
It's always possible that this premium will shrink further, particularly if economic growth slows in the next year. But McDonald's has an ambitious yet achievable expansion plan in place. AI is one part of that strategy, which has a good shot at delivering more rapid growth and record profit margins for this highly successful fast-food business.
Should you invest $1,000 in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and McDonald's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Demitri Kalogeropoulos has positions in McDonald's. The Motley Fool has positions in and recommends Adobe and Alphabet. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Generative AI can unlock greater speed and efficiency at many steps of the process, including inventory management and tracking and responding to localized demand pattern shifts. But McDonald's credited fundamental improvements in its food prep and order delivery times for helping drive stronger traffic in early 2023, and AI could ideally spark a similar bit of positive momentum over the next several quarters and years. AI is one part of that strategy, which has a good shot at delivering more rapid growth and record profit margins for this highly successful fast-food business.
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In early December, the company announced a new partnership with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google to use AI in several innovative ways as part of its new growth plan that extends through 2027. McDonald's has boosted this core metric into record territory in 2023, partly thanks to rising prices and healthy sales growth. Before you buy stock in McDonald's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and McDonald's wasn't one of them.
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Still a tasty buy Investors should consider owning McDonald's stock while they watch this growth program unfold over the next several years. You can buy McDonald's stock for 26 times earnings today, which is still a premium price compared to the broader market but is down from the over 32 times earnings that investors were paying for the shares in early 2023. Before you buy stock in McDonald's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and McDonald's wasn't one of them.
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The first is customer traffic in the core U.S. market. McDonald's has boosted this core metric into record territory in 2023, partly thanks to rising prices and healthy sales growth. Before you buy stock in McDonald's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and McDonald's wasn't one of them.
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7158690a-609c-42f4-a068-f099c1fd4c72
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713197.0
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2023-12-12 00:00:00 UTC
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Vivendi files complaint over Telecom Italia grid sale -sources
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DCOMP
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https://www.nasdaq.com/articles/vivendi-files-complaint-over-telecom-italia-grid-sale-sources
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Adds details and background
MILAN, Dec 15 (Reuters) - Telecom Italia (TIM) TLIT.MI top investor Vivendi VIV.PA has filed a complaint with a Milan court to challenge a 19-billion-euro ($20.82 billion) sale of the former phone monopoly's domestic fixed-line network to KKR KKR.N, three sources said on Friday.
In its complaint Vivendi asked for the court to annul the decision by TIM's board to sell the network, two sources said, adding that the filing does not request the immediate suspension of the deal under a fast-track procedure.
Telecom Italia's board agreed on Nov.5 to sell the group's most valuable asset, as part of a plan championed by TIM Chief Executive Pietro Labriola to revive the telecoms group and slash its heavy debt pile.
Though backed by the Italian government, the sale was branded "unlawful" by Vivendi, which owns a 24% stake in TIM and had been demanding a shareholder vote on the deal. TIM, for its part, said the board acted within its rights.
French media group Vivendi has been seeking a higher price for the asset, and has questioned the sustainability of the business left behind.
($1 = 0.9124 euros)
(Reporting by Elvira Pollina, editing by Jason Neely)
((alvise.armellini@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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In its complaint Vivendi asked for the court to annul the decision by TIM's board to sell the network, two sources said, adding that the filing does not request the immediate suspension of the deal under a fast-track procedure. Though backed by the Italian government, the sale was branded "unlawful" by Vivendi, which owns a 24% stake in TIM and had been demanding a shareholder vote on the deal. French media group Vivendi has been seeking a higher price for the asset, and has questioned the sustainability of the business left behind.
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Adds details and background MILAN, Dec 15 (Reuters) - Telecom Italia (TIM) TLIT.MI top investor Vivendi VIV.PA has filed a complaint with a Milan court to challenge a 19-billion-euro ($20.82 billion) sale of the former phone monopoly's domestic fixed-line network to KKR KKR.N, three sources said on Friday. In its complaint Vivendi asked for the court to annul the decision by TIM's board to sell the network, two sources said, adding that the filing does not request the immediate suspension of the deal under a fast-track procedure. Telecom Italia's board agreed on Nov.5 to sell the group's most valuable asset, as part of a plan championed by TIM Chief Executive Pietro Labriola to revive the telecoms group and slash its heavy debt pile.
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Adds details and background MILAN, Dec 15 (Reuters) - Telecom Italia (TIM) TLIT.MI top investor Vivendi VIV.PA has filed a complaint with a Milan court to challenge a 19-billion-euro ($20.82 billion) sale of the former phone monopoly's domestic fixed-line network to KKR KKR.N, three sources said on Friday. In its complaint Vivendi asked for the court to annul the decision by TIM's board to sell the network, two sources said, adding that the filing does not request the immediate suspension of the deal under a fast-track procedure. Telecom Italia's board agreed on Nov.5 to sell the group's most valuable asset, as part of a plan championed by TIM Chief Executive Pietro Labriola to revive the telecoms group and slash its heavy debt pile.
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Adds details and background MILAN, Dec 15 (Reuters) - Telecom Italia (TIM) TLIT.MI top investor Vivendi VIV.PA has filed a complaint with a Milan court to challenge a 19-billion-euro ($20.82 billion) sale of the former phone monopoly's domestic fixed-line network to KKR KKR.N, three sources said on Friday. In its complaint Vivendi asked for the court to annul the decision by TIM's board to sell the network, two sources said, adding that the filing does not request the immediate suspension of the deal under a fast-track procedure. Telecom Italia's board agreed on Nov.5 to sell the group's most valuable asset, as part of a plan championed by TIM Chief Executive Pietro Labriola to revive the telecoms group and slash its heavy debt pile.
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d00610cf-d653-4b85-b8d5-592cc3aa0bf9
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713198.0
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2023-12-12 00:00:00 UTC
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Will Apple Stock Reign Supreme Yet Again in 2024?
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DCOMP
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https://www.nasdaq.com/articles/will-apple-stock-reign-supreme-yet-again-in-2024
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nan
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It seems like everyone loves Apple (NASDAQ: AAPL). Well, at least 29% of those reading this do. That is theglobal marketshare for the smartphone maker, putting it in the lead over competitors such as Samsung and Alphabet's Google. With strong marketing, quality products, and locked-in users, Apple has established itself as the premium smartphone maker around the world, which has been quite a lucrative business.
So lucrative that even the Oracle of Omaha himself, Warren Buffett, bought more than 5% of the company for Berkshire Hathaway. With the stock up 368% in the last five years, Buffett's stake is now worth over $150 billion, with shares crushing the market over the same time frame.
But the question is: What does the future of Apple stock look like? Will the smartphone leader still reign supreme in 2024?
Stagnant revenue, declining hardware sales
While the business is clearly ginormous, Apple has struggled to grow its revenue in recent quarters. For the fiscal year ending in September, its revenue actually dipped slightly from 2022 and is off 2.8% from all-time highs over the past 12 months. This led net income to fall slightly, from $100 billion in fiscal year 2022 to $97 billion this year.
The company is struggling to grow sales across each of its hardware segments. The smartphone, Mac, iPad, and wearables (watches and AirPods) segments saw sales decline in 2023.
Most important is the smartphone segment, which does more than $200 billion in annual sales. With smartphone unit volumes stagnating around the world, Apple may be finally hitting a ceiling for this massive business. It has mitigated unit declines with consistent price increases, but last year these weren't enough to get revenue moving in the positive direction.
Geopolitical risks, litigation risks
While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. This segment is smaller than smartphone hardware sales from a revenue perspective, but has much higher profit margins, making it a key growth driver for Apple at the moment.
The problem is, Apple's software service cash cows are currently under threat from lawsuits and regulators around the globe.
In numerous regions, Apple's practices with its App Store have come under threat. It currently takes a 30% charge on most purchases made through apps on its devices and restricts other mobile app stores from operating on its devices.
Apple accepts an estimated $20 billion payment every year from Alphabet to make Google Search the default search engine on its Safari web browser. The United States government is challenging this deal on anticompetitive grounds.
Over the next five years, Apple faces a big threat for these two profit pools that make up the majority of its services revenue. If things go poorly for the company, the last few years of fast services growth may come to an end.
From a longer-term perspective, investors may need to worry about Apple's geographical diversification, especially when it comes to China. Last year, it generated $72.5 billion in revenue from the Greater China region, and it has most of its manufacturing in the country. If the new Cold War with the United States gets worse, Apple's business and manufacturing could come under threat.
It is hard to quantify the exact magnitude of this risk, but it is a risk nonetheless that Apple investors should think strongly about.
Can the Vision Pro spur growth?
Even though Apple shares are up 52% year to date, the company has seen its financials stagnate and there are some growing risks to the business that should not be ignored.
But it isn't all bad news for the technology giant. In 2024, the hardware maker is coming out with what will hopefully be its next hit product: the Vision Pro.
Unveiled at a demo earlier this year, the Vision Pro is a pair of augmented reality glasses. The company is hoping to take the next step in computing with the devices, which feature highly advanced sensors and cameras, and plans to sell them at $3,500 a pop. Apple expects to sell 1 million units in 2024 and 10 million units over the next three years.
That could equate to $35 billion in revenue. That's not too material compared to the company's close to $400 billion in annual sales, but this could generate some momentum and be the start of Apple's next big business over the next five to 10 years.
The valuation is not attractive
Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024. The key reason is its valuation.
As of this writing, Apple has a price-to-earnings ratio (P/E) of 32. That is well above the S&P 500 average of 26 for a company with declining sales that is also dealing with regulatory antitrust risk and is in the middle of geopolitical tensions.
Yes, the stock has performed remarkably over the past five, 10, and 20 years, but this doesn't have any bearing on what shares will do in the future. Typically, investors should want a discounted valuation when dealing with declining revenue and mounting risks on the horizon.
Apple stock is not likely to reign supreme in 2024. Investors should avoid buying shares at current prices.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With strong marketing, quality products, and locked-in users, Apple has established itself as the premium smartphone maker around the world, which has been quite a lucrative business. This segment is smaller than smartphone hardware sales from a revenue perspective, but has much higher profit margins, making it a key growth driver for Apple at the moment. The company is hoping to take the next step in computing with the devices, which feature highly advanced sensors and cameras, and plans to sell them at $3,500 a pop.
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Stagnant revenue, declining hardware sales While the business is clearly ginormous, Apple has struggled to grow its revenue in recent quarters. Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. 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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Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. The valuation is not attractive Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024. 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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Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. The valuation is not attractive Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024. Yes, the stock has performed remarkably over the past five, 10, and 20 years, but this doesn't have any bearing on what shares will do in the future.
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6638ac93-3aef-4c0e-b6a7-f600048eedd5
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713199.0
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2023-12-12 00:00:00 UTC
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Upstart Crushed the Stock Market This Year. Will We See a Repeat Performance in 2024?
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DCOMP
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https://www.nasdaq.com/articles/upstart-crushed-the-stock-market-this-year.-will-we-see-a-repeat-performance-in-2024
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Upstart (NASDAQ: UPST), a lending platform powered by artificial intelligence (AI), has been on a wild ride since going public a few years ago. The stock climbed from $20 to nearly $400, only to fall as low as $12 earlier this year.
But shares have rallied furiously since hitting that low and are now poised to finish 2023 up more than 100%, beating the broader market. What does that portend for 2024? Will the stock fall back into the pit of despair or continue its ascension?
Here is why investors might like what Upstart has in store for 2024.
Have interest rates peaked?
Upstart uses AI to approve or deny consumer loans. Management believes the algorithms the company uses can better identify the risk of default among applicants than a traditional credit score. The company is confident enough in what it does that it publishes data to show that its models work.
Upstart makes most of its revenue on referral fees it receives from lending partners it works with who take over the loans Upstart initially approves. When someone applies for a loan through Upstart, it analyzes their data and passes them off to one of the partnering banks or credit unions in its referral network.
The crucial takeaway is that Upstart doesn't want to hold these loans on its books long-term, which would pile up on its balance sheet. Its goal is to refer loans to an ever-hungry network of partner lenders, piling up its lucrative referral fees.
But holding the loans longer term is precisely what's been happening over the past 18 months. To slow inflation, the Federal Open Market Committee (FOMC) quickly raised the federal funds rate, causing the market to sell Treasury bonds. When bond prices go down, yields go up. Treasury yields, specifically for the 10-year note, are a benchmark for economic interest rates.
The rapid rise in interest rates hurts Upstart's business in multiple ways. First, the company must charge higher interest rates on its loans to make money. Fewer people borrow when rates are high, so that hurts loan demand. The rise also means banks are less willing to take on loans from someone like Upstart when there are alternatives like Treasury bonds, which are backed by the government (and thus safer) and yield more than they used to.
As rates rose, Upstart began holding loans on its balance sheet until it couldn't anymore and had to let its loan volume plummet. As of the third quarter, it has $972 million in loans on its balance sheet.
You can see that play out below. The federal funds rate increases, the 10-year Treasury yield follows, and Upstart's revenue growth collapses.
UPST revenue (quarterly YoY growth) data by YCharts; YoY = year over year.
Ah, but let's focus on the past few months of this graph, magnified below:
UPST revenue (quarterly YoY growth) data by YCharts.
You can see that the federal funds rate hasn't moved since August, and the 10-year Treasury yield has begun falling. What does this mean? The bond market is thinking, "Hey -- inflation has slowed significantly, and the FOMC stopped hiking the federal funds rate, so it might finally be safe to buy Treasuries again."
In other words, the Treasury yield reflects what the market thinks will happen. It's telegraphing that it believes the FOMC is done raising rates.
Getting back on the horse
To be clear, any company that can collapse like this due to something it can't control is a risky investment. Upstart's magnificent rally in recent months could just be getting started. No excuses, but it's fair to point out that the FOMC's series of rate hikes over the past two years is one of the most aggressive stretches of monetary policy on record.
There is bound to be relief for Upstart's business as that settles and eases. Analysts estimate its revenue growth will flip to nearly 30% next year, and earnings under generally accepted accounting principles (GAAP) will turn positive again.
The company peaked at $1 billion in revenue before developing new loan categories like auto, small business, and home equity lines of credit. That's fallen by 50% over the past four quarters.
If interest rates do ease in 2024, there's a good chance Wall Street could continue pricing in Upstart's upside again. The business has proved too volatile to establish firm numbers for a valuation, and the stock will likely remain volatile if rates get jumpy.
It's probably best to ask yourself whether you believe in Upstart's business model, and if so, buy shares slowly and dollar-cost average into a position while waiting for stable interest rates to spark the company's growth once again.
Should you invest $1,000 in Upstart right now?
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Justin Pope has positions in Upstart. The Motley Fool has positions in and recommends Upstart. 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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Upstart (NASDAQ: UPST), a lending platform powered by artificial intelligence (AI), has been on a wild ride since going public a few years ago. The bond market is thinking, "Hey -- inflation has slowed significantly, and the FOMC stopped hiking the federal funds rate, so it might finally be safe to buy Treasuries again." It's probably best to ask yourself whether you believe in Upstart's business model, and if so, buy shares slowly and dollar-cost average into a position while waiting for stable interest rates to spark the company's growth once again.
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To slow inflation, the Federal Open Market Committee (FOMC) quickly raised the federal funds rate, causing the market to sell Treasury bonds. UPST revenue (quarterly YoY growth) data by YCharts; YoY = year over year. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Upstart wasn't one of them.
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Upstart makes most of its revenue on referral fees it receives from lending partners it works with who take over the loans Upstart initially approves. As rates rose, Upstart began holding loans on its balance sheet until it couldn't anymore and had to let its loan volume plummet. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Upstart wasn't one of them.
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Upstart makes most of its revenue on referral fees it receives from lending partners it works with who take over the loans Upstart initially approves. The federal funds rate increases, the 10-year Treasury yield follows, and Upstart's revenue growth collapses. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Upstart wasn't one of them.
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