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713700.0
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2023-12-11 00:00:00 UTC
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Pre-Market Most Active for Dec 14, 2023 : SQQQ, CCCC, TQQQ, TLT, XBP, TSLA, PCG, GOTU, PLTR, NIO, PFE, BABA
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DCOMP
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-14-2023-%3A-sqqq-cccc-tqqq-tlt-xbp-tsla-pcg-gotu-pltr-nio-pfe
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The NASDAQ 100 Pre-Market Indicator is up 64.79 to 16,627.16. The total Pre-Market volume is currently 59,223,924 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $14.18, with 3,427,135 shares traded., following a 52-week high recorded in prior regular session.
C4 Therapeutics, Inc. (CCCC) is -0.04 at $5.47, with 3,252,368 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
ProShares UltraPro QQQ (TQQQ) is +0.64 at $49.38, with 3,152,568 shares traded., following a 52-week high recorded in prior regular session.
iShares 20+ Year Treasury Bond ETF (TLT) is +1.0205 at $97.55, with 2,497,427 shares traded.TLT has a $3.72640800cash dividend with an Ex/Eff Date of12/14/2023
XBP Europe Holdings, Inc. (XBP) is +5.48 at $11.15, with 1,636,388 shares traded., following a 52-week high recorded in prior regular session.
Tesla, Inc. (TSLA) is +1.688 at $240.98, with 1,531,136 shares traded. TSLA's current last sale is 96.39% of the target price of $250.
Pacific Gas & Electric Co. (PCG) is +0.2 at $18.35, with 1,411,549 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
Gaotu Techedu Inc. (GOTU) is +0.28 at $3.97, with 1,179,401 shares traded. GOTU's current last sale is 172.61% of the target price of $2.3.
Palantir Technologies Inc. (PLTR) is +0.3 at $18.17, with 1,053,318 shares traded. PLTR's current last sale is 113.56% of the target price of $16.
NIO Inc. (NIO) is -0.0301 at $7.40, with 934,124 shares traded. NIO's current last sale is 71.15% of the target price of $10.4.
Pfizer, Inc. (PFE) is +0.08 at $26.74, with 933,489 shares traded., following a 52-week high recorded in prior regular session.
Alibaba Group Holding Limited (BABA) is -0.22 at $71.24, with 467,551 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $14.18, with 3,427,135 shares traded., following a 52-week high recorded in prior regular session. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock. ProShares UltraPro QQQ (TQQQ) is +0.64 at $49.38, with 3,152,568 shares traded., following a 52-week high recorded in prior regular session.
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The total Pre-Market volume is currently 59,223,924 shares traded. ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $14.18, with 3,427,135 shares traded., following a 52-week high recorded in prior regular session. XBP Europe Holdings, Inc. (XBP) is +5.48 at $11.15, with 1,636,388 shares traded., following a 52-week high recorded in prior regular session.
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ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $14.18, with 3,427,135 shares traded., following a 52-week high recorded in prior regular session. XBP Europe Holdings, Inc. (XBP) is +5.48 at $11.15, with 1,636,388 shares traded., following a 52-week high recorded in prior regular session. NIO Inc. (NIO) is -0.0301 at $7.40, with 934,124 shares traded.
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TSLA's current last sale is 96.39% of the target price of $250. GOTU's current last sale is 172.61% of the target price of $2.3. PLTR's current last sale is 113.56% of the target price of $16.
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08003f46-c871-4b7b-a1dc-42121d5e345e
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713701.0
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2023-12-11 00:00:00 UTC
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Rivian Automotive Signs With AT&T To Sell EV
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DCOMP
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https://www.nasdaq.com/articles/rivian-automotive-signs-with-att-to-sell-ev
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nan
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nan
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(RTTNews) - Rivian Automotive, Inc. (RIVN) Thursday announced that they have signed an agreement to sell Rivian electric vehicles to telecom major AT&T (T).
The financial details of the deal are not yet known.
Through a pilot program aimed at cutting transport emissions, AT&T will add Rivian Commercial Van and R1 vehicles to its fleet in early 2024 and begin evaluating the various ways these vehicles help improve safety, reduce costs, and cut its carbon footprint.
Rivian is hoping that this deal will help AT&T reach its commitment of carbon neutrality by 2035.
The Rivian Commercial Van is engineered to be one of the safest vehicles on the road having features like automatic emergency braking, collision warnings, and 360-degree visibility, as per the company.
Additionally, AT&T is the exclusive provider of connectivity to all Rivian vehicles, in the U.S. and Canada. The electric vehicle company uses AT&T connectivity for its over-the-air software updates.
In pre-market activity, Rivian shares are trading at $20.24, up 2.85% on the Nasdaq and AT&T shares are trading at $16.53 up 0.52% on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Through a pilot program aimed at cutting transport emissions, AT&T will add Rivian Commercial Van and R1 vehicles to its fleet in early 2024 and begin evaluating the various ways these vehicles help improve safety, reduce costs, and cut its carbon footprint. Rivian is hoping that this deal will help AT&T reach its commitment of carbon neutrality by 2035. The Rivian Commercial Van is engineered to be one of the safest vehicles on the road having features like automatic emergency braking, collision warnings, and 360-degree visibility, as per the company.
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(RTTNews) - Rivian Automotive, Inc. (RIVN) Thursday announced that they have signed an agreement to sell Rivian electric vehicles to telecom major AT&T (T). Through a pilot program aimed at cutting transport emissions, AT&T will add Rivian Commercial Van and R1 vehicles to its fleet in early 2024 and begin evaluating the various ways these vehicles help improve safety, reduce costs, and cut its carbon footprint. The Rivian Commercial Van is engineered to be one of the safest vehicles on the road having features like automatic emergency braking, collision warnings, and 360-degree visibility, as per the company.
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(RTTNews) - Rivian Automotive, Inc. (RIVN) Thursday announced that they have signed an agreement to sell Rivian electric vehicles to telecom major AT&T (T). Through a pilot program aimed at cutting transport emissions, AT&T will add Rivian Commercial Van and R1 vehicles to its fleet in early 2024 and begin evaluating the various ways these vehicles help improve safety, reduce costs, and cut its carbon footprint. The Rivian Commercial Van is engineered to be one of the safest vehicles on the road having features like automatic emergency braking, collision warnings, and 360-degree visibility, as per the company.
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(RTTNews) - Rivian Automotive, Inc. (RIVN) Thursday announced that they have signed an agreement to sell Rivian electric vehicles to telecom major AT&T (T). The financial details of the deal are not yet known. Through a pilot program aimed at cutting transport emissions, AT&T will add Rivian Commercial Van and R1 vehicles to its fleet in early 2024 and begin evaluating the various ways these vehicles help improve safety, reduce costs, and cut its carbon footprint.
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fa62221c-6d36-4d77-958e-60744f06000d
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713702.0
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2023-12-11 00:00:00 UTC
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3 Stocks to Gain From Ongoing US Clean Energy Transition
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DCOMP
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https://www.nasdaq.com/articles/3-stocks-to-gain-from-ongoing-us-clean-energy-transition
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nan
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nan
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The United States is currently undergoing a significant shift toward cleaner energy sources as part of the effort to combat greenhouse gas emissions. This is evident in the data provided by the U.S. Energy Information Administration (“EIA”), which indicates that last year, 20% of the country's energy was generated from coal. Projections for 2023 and 2024 imply a decline in this proportion to 17% and 15%, respectively.
As a share of U.S. electricity generation, the proportions of renewables and natural gas are on the rise. EIA’s data reflects that in 2022, the United States generated 39% of its energy from natural gas and 21% from renewables, and it projects that the respective shares are going to increase to 42% and 22% this year. In renewables, the focus is more on generating electricity from solar energy, with new solar capacities coming online.
Hence, it appears opportune for investors to closely monitor companies engaged in natural gas production and solar module provision. Employing our Stock Screener, we have identified three stocks – EQT Corporation EQT, Range Resources Corporation RRC and First Solar, Inc. FSLR – each carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks In Focus
EQT Corporation is a leading producer of natural gas in the United States, with its operations across the prolific Appalachian basin. The company’s production outlook seems bright since it has premium untapped drilling locations across the gas-rich basin and is thus well-positioned to capitalize on clean energy demand.
Range Resources is also among the well-known natural gas producers in the domestic market, with a strong foothold in the Appalachian Basin. Having huge untapped high quality drilling locations, the company’s production outlook also seems promising.
To accelerate its fight against global warming, First Solar is primarily engaged in providing eco-efficient solar modules. The advanced thin-film photovoltaic modules of First Solar represent highly advanced solar technologies of the next generation.
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
First Solar, Inc. (FSLR) : Free Stock Analysis Report
Range Resources Corporation (RRC) : Free Stock Analysis Report
EQT Corporation (EQT) : 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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EIA’s data reflects that in 2022, the United States generated 39% of its energy from natural gas and 21% from renewables, and it projects that the respective shares are going to increase to 42% and 22% this year. The company’s production outlook seems bright since it has premium untapped drilling locations across the gas-rich basin and is thus well-positioned to capitalize on clean energy demand. 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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Employing our Stock Screener, we have identified three stocks – EQT Corporation EQT, Range Resources Corporation RRC and First Solar, Inc. FSLR – each carrying a Zacks Rank #3 (Hold). Having huge untapped high quality drilling locations, the company’s production outlook also seems promising. Click to get this free report First Solar, Inc. (FSLR) : Free Stock Analysis Report Range Resources Corporation (RRC) : Free Stock Analysis Report EQT Corporation (EQT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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EIA’s data reflects that in 2022, the United States generated 39% of its energy from natural gas and 21% from renewables, and it projects that the respective shares are going to increase to 42% and 22% this year. Employing our Stock Screener, we have identified three stocks – EQT Corporation EQT, Range Resources Corporation RRC and First Solar, Inc. FSLR – each carrying a Zacks Rank #3 (Hold). Click to get this free report First Solar, Inc. (FSLR) : Free Stock Analysis Report Range Resources Corporation (RRC) : Free Stock Analysis Report EQT Corporation (EQT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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EIA’s data reflects that in 2022, the United States generated 39% of its energy from natural gas and 21% from renewables, and it projects that the respective shares are going to increase to 42% and 22% this year. In renewables, the focus is more on generating electricity from solar energy, with new solar capacities coming online. 3 Stocks In Focus EQT Corporation is a leading producer of natural gas in the United States, with its operations across the prolific Appalachian basin.
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adae5ae5-4451-4352-a0df-e6ad1d617c11
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713703.0
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2023-12-11 00:00:00 UTC
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Implied Volatility Surging for Flex (FLEX) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-flex-flex-stock-options
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nan
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nan
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Investors in Flex Ltd. FLEX need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $5.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Flex shares, but what is the fundamental picture for the company? Currently, Flex is a Zacks Rank #1 (Strong Buy) in the Electronics - Miscellaneous Products industry that ranks in the Bottom 39% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 65 cents per share to 62 cents in that period.
Given the way analysts feel about Flex right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
Flex Ltd. (FLEX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> 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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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Flex right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Flex right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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4135fe7d-a2ef-4d05-a01d-3dc1acb60fc7
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713704.0
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2023-12-11 00:00:00 UTC
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Aeterna Zentaris Enters Into Merger Agreement With Ceapro
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DCOMP
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https://www.nasdaq.com/articles/aeterna-zentaris-enters-into-merger-agreement-with-ceapro
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nan
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nan
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(RTTNews) - On Thursday, Aeterna Zentaris Inc. (AEZS) and Ceapro Inc. agreed to merge their operations in an all-stock merger of equals transaction which will be carried out through a plan of arrangement under the Canada Business Corporations Act.
As part of the deal, each outstanding common share of Ceapro will be exchanged for 0.09439 of an Aeterna common share, resulting in Ceapro becoming a wholly-owned subsidiary of Aeterna.
The merged company will be listed on the Nasdaq Capital Market and the Toronto Stock Exchange and will be given a new name in the coming weeks.
Existing security holders of Aeterna and Ceapro will each own 50% of the combined company, respectively, and will share in the future value creation of the merged entity.
The combined company will benefit from ongoing revenue from existing Ceapro products and will have a strong presence in the active ingredients market, as well as in cosmeceutical products and nutraceuticals.
The merger is expected to be completed in the first quarter of 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - On Thursday, Aeterna Zentaris Inc. (AEZS) and Ceapro Inc. agreed to merge their operations in an all-stock merger of equals transaction which will be carried out through a plan of arrangement under the Canada Business Corporations Act. The merged company will be listed on the Nasdaq Capital Market and the Toronto Stock Exchange and will be given a new name in the coming weeks. Existing security holders of Aeterna and Ceapro will each own 50% of the combined company, respectively, and will share in the future value creation of the merged entity.
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As part of the deal, each outstanding common share of Ceapro will be exchanged for 0.09439 of an Aeterna common share, resulting in Ceapro becoming a wholly-owned subsidiary of Aeterna. The merged company will be listed on the Nasdaq Capital Market and the Toronto Stock Exchange and will be given a new name in the coming weeks. The combined company will benefit from ongoing revenue from existing Ceapro products and will have a strong presence in the active ingredients market, as well as in cosmeceutical products and nutraceuticals.
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(RTTNews) - On Thursday, Aeterna Zentaris Inc. (AEZS) and Ceapro Inc. agreed to merge their operations in an all-stock merger of equals transaction which will be carried out through a plan of arrangement under the Canada Business Corporations Act. As part of the deal, each outstanding common share of Ceapro will be exchanged for 0.09439 of an Aeterna common share, resulting in Ceapro becoming a wholly-owned subsidiary of Aeterna. Existing security holders of Aeterna and Ceapro will each own 50% of the combined company, respectively, and will share in the future value creation of the merged entity.
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(RTTNews) - On Thursday, Aeterna Zentaris Inc. (AEZS) and Ceapro Inc. agreed to merge their operations in an all-stock merger of equals transaction which will be carried out through a plan of arrangement under the Canada Business Corporations Act. The merged company will be listed on the Nasdaq Capital Market and the Toronto Stock Exchange and will be given a new name in the coming weeks. Existing security holders of Aeterna and Ceapro will each own 50% of the combined company, respectively, and will share in the future value creation of the merged entity.
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09f6fe3d-b413-49e2-a590-147a45cab459
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713705.0
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2023-12-11 00:00:00 UTC
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Is the Options Market Predicting a Spike in Herbalife (HLF) Stock?
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DCOMP
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-herbalife-hlf-stock
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nan
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nan
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Investors in Herbalife Ltd. HLF need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $2.5 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Herbalife shares, but what is the fundamental picture for the company? Currently, Herbalife is a Zacks Rank #3 (Hold) in the Retail - Pharmacies and Drug Stores industry that ranks in the Bottom 29% of our Zacks Industry Rank. Over the last 60 days, our Zacks Consensus Estimate for the current quarter moved from 37 cents per share to 38 cents in that period.
Given the way analysts feel about Herbalife right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
Herbalife Ltd (HLF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Herbalife Ltd (HLF) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Herbalife right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Herbalife right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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2c3c945a-a491-4d1d-b68d-888728bb6540
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713706.0
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2023-12-11 00:00:00 UTC
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Ryan Cohen Plans to Save GameStop By Becoming Warren Buffett
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DCOMP
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https://www.nasdaq.com/articles/ryan-cohen-plans-to-save-gamestop-by-becoming-warren-buffett
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On Dec. 7, shares of GameStop (NYSE:GME) tumbled 5% after CEO Ryan Cohen proposed using his company’s $900 million in cash to buy stocks.
It’s “one of the most inane moves we have ever seen,” criticized Wedbush analyst Michael Pachter. “GameStop’s management believes it will achieve better returns by buying equities aside from its own.”
But behind this “inane” decision is a cold calculation. Cohen knows he owns a struggling business in a fast-shrinking industry. 90% of all video games are now sold digitally, and selling gaming collectibles won’t make up the difference. As a Master Yoda bobblehead might say, a dying enterprise, GameStop is.
That leaves the CEO with several choices.
Push Ahead (Best Buy Strategy). GameStop could emulate its rival and expand into related businesses.
Share Buybacks & Dividends (Redbox Strategy). The firm could also take the path of Redbox and other sunset businesses — milking cash from the business before selling leftovers to private equity.
The Warren Buffett Route. Or there’s a third route…
GME Stock: The Next Berkshire Hathaway?
Many will know that in 1965, Warren Buffett took ownership of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), a struggling New England textile maker. Much of the industry had moved into the American South, where labor costs were lower, and cotton more readily available. The left-behind mills in the north saw their values plummet.
But it turns out that “cheap” didn’t mean “bargain.” As Mr. Buffett later admitted:
My first mistake, of course, was in buying control of Berkshire. Though I knew its business — textile manufacturing – to be unpromising, I was enticed to buy because the price looked cheap. Stock purchases of that kind had proved reasonably rewarding in my early years, though by the time Berkshire came along in 1965 I was becoming aware that the strategy was not ideal.
The problem is that value investing still needs a stock to go up. If a falling company goes straight to zero, no level of cheapness will ever produce profits for a buyer.
However, failing companies have other options for surviving. Some undergo reverse mergers, using their coveted Nasdaq and New York Stock Exchange listings to take other firms public. Investors in these “backdoor registrations” can see their penny stocks suddenly become worth $10… $100… or more. Others use cash flows to invest in income-generating securities. Insurance companies call this their “float” and frequently use it to boost profits. Even struggling firms like GameStop can have millions saved up that can earn interest. The videogame retailer itself generates roughly $50 million annually from reinvesting its cash hoard.
Then, there are gurus like Warren Buffett who realized he could use his company’s “bad” assets (cash and textile equipment) to buy “good” ones that earned higher returns. By 1970, the textile firm had invested in the National Indemnity Company, National Fire & Marine Insurance Company and the Illinois National Bank & Trust Co. of Rockford, among others. These enterprises would bring in over $7 million of net income, dwarfing the $788,000 made from Berkshire’s ailing textile operations.
And Mr. Buffett didn’t stop there. A decade later, his holding company owned large stakes in GEICO and The Washington Post. In 1985, Berkshire’s textile operations ceased to exist. And today, $10,000 invested in Berkshire Hathaway’s original listing would be worth $500 million.
Could Ryan Cohen Become the Next Buffett?
Ryan Cohen’s new GameStop plans look much like Buffett’s old one: Use the cash from a failing firm to buy shares in something else. Anything else.
It’s a strategy that could work surprisingly well. GameStop currently earns a negative 4.3% return on invested capital (ROIC), which means every additional dollar invested into the firm can expect to lose money. (i.e., the company should avoid building new stores since they are unlikely to break even).
Meanwhile, the average S&P 500 firm earns roughly 21% on its invested capital. And of those leading 500 companies, 492 earn more than GameStop’s -4.3% ROIC.
Mr. Cohen also has a history of spotting bargains. In 2020, his acquisition outfit RC Ventures bought over 6 million GameStop shares in the split-adjusted $1 range. (It’s still worth $16 per share today). And in January 2022, he bought 9.4 million shares of home goods retailer Bed, Bath & Beyond before flipping it eight months later for a 56% profit. His prior investments suggest he’s an aggressive buyer who doesn’t mind purchasing assets for well below book value.
When you combine high-returning companies with low valuations, the result… well… can’t be much worse than what GameStop currently faces.
…Or The Next Sears?
However, corporate America also has a long history of CEOs who destroy capital by investing for the sake of it. Many 1980s conglomerates ended as bloated enterprises, filled with underperforming segments. Some like General Electric (NYSE:GE) would even face near-bankruptcy after their subsidiaries began blowing up.
Then there’s Eddie Lampert, once considered the “Buffett of Canada” and one of the “brightest minds on Wall Street.” In 2003, the Goldman Sachs alum began acquiring debt of struggling discount retailer Kmart and became its chairman the following year. (Sound familiar?) The Wall Street whiz would then use his company’s newly minted shares to buy shares in another company (also sound familiar?) and become a billionaire after share prices surged (to the moon, perhaps?).
But the eventual outcome was disastrous. Lampert’s Sears Holdings would become a cautionary tale about what happens when you fail to reinvest enough cash into a business. Cutting back on store renovations eventually left Sears and Kmart stores looking old and tired. Reducing inventories to raise cash left store shelves empty. And no amount of physical asset sales could eventually stem the cash outflows as customers abandoned the stores. Lampert’s enterprise went bankrupt in 2018, taking his reputation along with it.
Other Wall Street “gurus” have also failed precisely because what Warren Buffett does is so hard to do. The average U.S.-traded closed-end fund has lost 12% since 2022 and trades at a 13% discount to book value. And many, like Carl Icahn’s Icahn Enterprises (NASDAQ:IEP) has almost collapsed on allegations of capital misappropriation. Outperforming the market is hard, especially when paying celebrity-level bonuses to CEOs. Only time will tell which path GameStop will take.
Should You Buy GameStop Stock?
Today, the most common path to Berkshire-style success is through bolt-on acquisitions. This involves a firm buying up a related company and then “bolting” the acquired product onto an existing business. Advanced Micro Devices (NASDAQ:AMD) can attribute its leading position in data centers to its 2022 acquisition of Xilinx, a maker of logic chips. Drugmakers like Novo Nordisk (NYSE:NVO) and Johnson & Johnson (NYSE:JNJ) are masters at buying up smaller healthcare firms to fill their pipelines. And in a perfect world, GameStop, too, would consider buying shares in related businesses.
These acquisitions tend to be both 1) lower risk and 2) higher return. CEOs already know the business they’re buying since it’s in the same industry. And adding an existing product to a new pipeline is generally a recipe for creating value. A biotech startup does not need to build a massive sales department if it sells itself to Johnson & Johnson’s drug marketing machine.
But GameStop has no clear path forward with bolt-on acquisitions. Its efforts in Web 3.0 gaming and NFT marketplaces have fallen flat; digital collectibles seem to have few overlapping functions with in-person game retailing. And the company’s retail locations are too small to convert them into yoga studios or electric vehicle showrooms.
That means Ryan Cohen will likely reuse the Oracle of Omaha’s strategy of buying shares in completely unrelated firms. It’s a risky tactic that will likely fail, if history is a guide. Most people should not buy GameStop for that reason alone.
But there’s always a tiny chance… no matter how small… that the 38-year-old Montreal native could be the next “Buffett of Canada.” He certainly has an eye for bargains. And if he can find companies that also return enormous amounts to his investment, Mr. Cohen could well become the savior that GameStop’s fans have been waiting for all along.
On the date of publication, Thomas Yeung 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.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
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The post Ryan Cohen Plans to Save GameStop By Becoming Warren Buffett 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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Then, there are gurus like Warren Buffett who realized he could use his company’s “bad” assets (cash and textile equipment) to buy “good” ones that earned higher returns. Then there’s Eddie Lampert, once considered the “Buffett of Canada” and one of the “brightest minds on Wall Street.” In 2003, the Goldman Sachs alum began acquiring debt of struggling discount retailer Kmart and became its chairman the following year. 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 Ryan Cohen Plans to Save GameStop By Becoming Warren Buffett appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Dec. 7, shares of GameStop (NYSE:GME) tumbled 5% after CEO Ryan Cohen proposed using his company’s $900 million in cash to buy stocks. Then, there are gurus like Warren Buffett who realized he could use his company’s “bad” assets (cash and textile equipment) to buy “good” ones that earned higher returns. 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 Ryan Cohen Plans to Save GameStop By Becoming Warren Buffett appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Dec. 7, shares of GameStop (NYSE:GME) tumbled 5% after CEO Ryan Cohen proposed using his company’s $900 million in cash to buy stocks. Ryan Cohen’s new GameStop plans look much like Buffett’s old one: Use the cash from a failing firm to buy shares in something else. The Wall Street whiz would then use his company’s newly minted shares to buy shares in another company (also sound familiar?)
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Ryan Cohen’s new GameStop plans look much like Buffett’s old one: Use the cash from a failing firm to buy shares in something else. Should You Buy GameStop Stock? CEOs already know the business they’re buying since it’s in the same industry.
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2023-12-11 00:00:00 UTC
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My Shocking Tesla Cybertruck Predictions for 2024
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https://www.nasdaq.com/articles/my-shocking-tesla-cybertruck-predictions-for-2024
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Fool.com contributor Parkev Tatevosian discusses his Tesla Cybertruck predictions for 2024. Tesla (NASDAQ: TSLA) stock investors might be surprised at what he has to say.
*Stock prices used were the afternoon prices of Dec. 11, 2023. The video was published on Dec. 13, 2023.
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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Tesla (NASDAQ: TSLA) stock investors might be surprised at what he has to say. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. His opinions remain his own and are unaffected by The Motley Fool.
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2023-12-11 00:00:00 UTC
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Don't Wait for a Market Crash: These 2 Top Stocks Are on Sale
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Most investors gauge the health of the market by the action of an index like the S&P 500. That's appropriate, but it only provides a surface view of a vast market made up of individual stocks. You don't need to wait for a market crash to find stocks that are on sale. In fact, consumer staples icons Clorox (NYSE: CLX) and Hershey (NYSE: HSY), names you likely know well already, appear to be dealing with their own personal bear markets right now. Here's why you might want to buy them.
Clorox is getting back on track
Clorox stock has lagged the S&P 500 index over the past year, down nearly 5% compared to the index's gain of 17%. But go back a little further and Clorox is down nearly 30% over the trailing three-year period compared to a 25% gain for the S&P. The company is clearly in its own personal bear market. There are good reasons for this circumstance.
SPY data by YCharts
For starters, the consumer staples maker's margins got crushed coming out of the coronavirus pandemic. High operating costs, rising inflation, and a decline in demand for cleaning products, a key category for Clorox, created a triple whammy. Management moved quickly to address the problems, cutting costs and raising prices, but it was clear that it would be a multi-year effort to return profit margins back toward historical levels. Investors reacted by dumping the stock. A recent cyber attack hasn't helped as it forced the company to use, effectively, pen and paper to track the business.
However, behind this series of less-than-desirable headlines has been steady progress on management's promise to improve margins. As the chart below shows, while still down from its recent peak, the gross profit margin appears to have bottomed out in late 2022 and has been improving steadily since that point. Meanwhile, the company has increased its dividend annually for 46 consecutive years and offers a historically attractive dividend yield of 3.3%.
With the stock still well off of its highs from a few years ago, long-term investors have a chance to buy this reliable dividend payer at what look like depressed levels.
CLX Gross Profit Margin data by YCharts
Hershey is getting walloped by cocoa prices
Although inflation played a big role in Clorox's problems, inflation's rise has started to ebb in most areas. But, unfortunately for chocolate maker Hershey, cocoa prices have continued to rise. In other words, the company's margins remain under pressure and it has to tread carefully with additional price increases at a time when other consumer staples companies are pulling back on charging customers more.
Then there's the concern about new weight-loss medications, which could lead people to spend less on sweets and other snacks.
SPY data by YCharts
Indeed, there are good reasons why Hershey's stock has fallen 21% over the past year. That drop has pushed the dividend yield up to 2.5%, which isn't huge but is toward the higher side for this food maker. It is probably most appropriate to look at the stock as fairly priced. But given the 14-year streak of annual dividend increases and the hefty 9% annualized dividend increase rate over the past decade, that could be pretty attractive for long-term dividend growth types.
As for the future, well, don't get too excited over the near term. The cost headwind is real and will likely limit near-term growth. However, the company has a long history of innovation in the candy space that suggests it will remain a leading company in the food niche. It is also expanding its reach into salty snacks, like pretzels and popcorn, which should support growth.
And it is spreading out into global markets, which have been a mixed bag so far but, given the iconic brands Hershey owns, it seems likely that it will eventually figure out a way to succeed.
Betting on the laggards
Companies usually fall out of favor for good reasons, which is true of both Clorox and Hershey. However, they are both companies with iconic brands and long histories of being well run. You could wait for a stock market correction to find bargains, or you could look for companies that are in their own personal bear markets.
Clorox appears to be turning an important corner, which suggests its downturn could be nearly over. Hershey is probably going to linger in a bad space for a while, but long-term it seems likely that consumers will come back for its sweets and bring investors along with them.
Should you invest $1,000 in Clorox right now?
Before you buy stock in Clorox, consider this:
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Reuben Gregg Brewer has positions in Clorox and Hershey. The Motley Fool recommends Hershey. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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High operating costs, rising inflation, and a decline in demand for cleaning products, a key category for Clorox, created a triple whammy. Management moved quickly to address the problems, cutting costs and raising prices, but it was clear that it would be a multi-year effort to return profit margins back toward historical levels. With the stock still well off of its highs from a few years ago, long-term investors have a chance to buy this reliable dividend payer at what look like depressed levels.
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In fact, consumer staples icons Clorox (NYSE: CLX) and Hershey (NYSE: HSY), names you likely know well already, appear to be dealing with their own personal bear markets right now. CLX Gross Profit Margin data by YCharts Hershey is getting walloped by cocoa prices Although inflation played a big role in Clorox's problems, inflation's rise has started to ebb in most areas. Before you buy stock in Clorox, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Clorox wasn't one of them.
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Clorox is getting back on track Clorox stock has lagged the S&P 500 index over the past year, down nearly 5% compared to the index's gain of 17%. Before you buy stock in Clorox, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Clorox wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Reuben Gregg Brewer has positions in Clorox and Hershey.
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With the stock still well off of its highs from a few years ago, long-term investors have a chance to buy this reliable dividend payer at what look like depressed levels. CLX Gross Profit Margin data by YCharts Hershey is getting walloped by cocoa prices Although inflation played a big role in Clorox's problems, inflation's rise has started to ebb in most areas. Before you buy stock in Clorox, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Clorox wasn't one of them.
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2023-12-11 00:00:00 UTC
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Strength Seen in Mercantile Bank (MBWM): Can Its 5.8% Jump Turn into More Strength?
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https://www.nasdaq.com/articles/strength-seen-in-mercantile-bank-mbwm%3A-can-its-5.8-jump-turn-into-more-strength
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Mercantile Bank MBWM shares ended the last trading session 5.8% higher at $39.84. 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 2.7% gain over the past four weeks.
The Federal Reserve has signaled an end to the current rate hike cycle by keeping interest rates unchanged at the 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. The central bank has also indicated a 75 basis points cut in rates by 2024-end. The above-mentioned developments have attributed to bullish investor sentiments. Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This probably drove the MBWM stock higher, which touched a new 52-week high in last day’s trading session.
This holding company for Mercantile Bank of Michigan is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of -11%. Revenues are expected to be $56 million, down 4.2% 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 Mercantile Bank, 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 MBWM 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 >>>>
Mercantile Bank is a member of the Zacks Banks - Midwest industry. One other stock in the same industry, Old National Bancorp ONB, finished the last trading session 5.9% higher at $16.82. ONB has returned 6.8% over the past month.
For Old National Bancorp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.48. This represents a change of -14.3% from what the company reported a year ago. Old National Bancorp currently has a Zacks Rank of #3 (Hold).
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This holding company for Mercantile Bank of Michigan is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of -11%. 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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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Mercantile Bank is a member of the Zacks Banks - Midwest industry. For Old National Bancorp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.48. Click to get this free report Mercantile Bank Corporation (MBWM) : Free Stock Analysis Report Old National Bancorp (ONB) : 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 >>>> Mercantile Bank is a member of the Zacks Banks - Midwest industry. Click to get this free report Mercantile Bank Corporation (MBWM) : Free Stock Analysis Report Old National Bancorp (ONB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Mercantile Bank MBWM shares ended the last trading session 5.8% higher at $39.84. This holding company for Mercantile Bank of Michigan is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of -11%. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Mercantile Bank is a member of the Zacks Banks - Midwest industry.
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2023-12-11 00:00:00 UTC
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AT&T to buy Rivian electric vehicles in pilot deal to cut cost, emissions
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https://www.nasdaq.com/articles/att-to-buy-rivian-electric-vehicles-in-pilot-deal-to-cut-cost-emissions
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By Abhirup Roy
SAN FRANCISCO, Dec 14 (Reuters) - U.S. wireless carrier AT&T T.N will purchase some electric vehicles from startup Rivian RIVN.O in a pilot program to evaluate ways to reduce cost, cut carbon emissions and improve safety, the companies said on Thursday.
The deal is the first for Rivian after the company last month ended its exclusivity pact with largest shareholder Amazon AMZN.O for its delivery vans, opening the door for more customers.
AT&T expects to start adding Rivian electric commercial vans, R1T pickup trucks, and R1S sport utility vehicles in its fleet in early 2024, they said in a statement.
The companies did not disclose the number of vehicles AT&T will buy or the financial terms of the deal.
AT&T has long been investing in converting its commercial fleet to vehicles that use alternative fuels such as compressed natural gas and hybrid electric vehicles.
"This pilot is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint and embracing a cleaner future for our operations," Hardmon Williams, senior vice president of AT&T Connected Solutions said.
Environmental, social and corporate governance (ESG) goals and emission reduction targets for companies have sparked a race to shift to zero-emission fleets.
But high interest rates have made it costlier for customers to purchase electric vehicles, which that are typically more expensive than their gas-powered counterparts, and raised worries of a slowdown in demand.
Still, Rivian has said it has seen a "lot of interest and demand" for its vans beyond Amazon. On Thursday, the company declined to disclose other potential customers.
It has also reiterated its commitment to fulfilling an order for 100,000 vans to Amazon by 2030. Amazon said in October it has 10,000 of those vehicles across the U.S. and Europe.
Last month, Irvine, California-based Rivian raised its overall 2023 production forecast to 54,000 units.
(Reporting by Abhirup Roy in San Francisco; Editing by Christian Schmollinger)
((abhirup.roy@thomsonreuters.com; +1 415 941 8665; @abhiruproy30;))
The views and 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 Abhirup Roy SAN FRANCISCO, Dec 14 (Reuters) - U.S. wireless carrier AT&T T.N will purchase some electric vehicles from startup Rivian RIVN.O in a pilot program to evaluate ways to reduce cost, cut carbon emissions and improve safety, the companies said on Thursday. "This pilot is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint and embracing a cleaner future for our operations," Hardmon Williams, senior vice president of AT&T Connected Solutions said. But high interest rates have made it costlier for customers to purchase electric vehicles, which that are typically more expensive than their gas-powered counterparts, and raised worries of a slowdown in demand.
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By Abhirup Roy SAN FRANCISCO, Dec 14 (Reuters) - U.S. wireless carrier AT&T T.N will purchase some electric vehicles from startup Rivian RIVN.O in a pilot program to evaluate ways to reduce cost, cut carbon emissions and improve safety, the companies said on Thursday. AT&T expects to start adding Rivian electric commercial vans, R1T pickup trucks, and R1S sport utility vehicles in its fleet in early 2024, they said in a statement. But high interest rates have made it costlier for customers to purchase electric vehicles, which that are typically more expensive than their gas-powered counterparts, and raised worries of a slowdown in demand.
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By Abhirup Roy SAN FRANCISCO, Dec 14 (Reuters) - U.S. wireless carrier AT&T T.N will purchase some electric vehicles from startup Rivian RIVN.O in a pilot program to evaluate ways to reduce cost, cut carbon emissions and improve safety, the companies said on Thursday. The deal is the first for Rivian after the company last month ended its exclusivity pact with largest shareholder Amazon AMZN.O for its delivery vans, opening the door for more customers. AT&T expects to start adding Rivian electric commercial vans, R1T pickup trucks, and R1S sport utility vehicles in its fleet in early 2024, they said in a statement.
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By Abhirup Roy SAN FRANCISCO, Dec 14 (Reuters) - U.S. wireless carrier AT&T T.N will purchase some electric vehicles from startup Rivian RIVN.O in a pilot program to evaluate ways to reduce cost, cut carbon emissions and improve safety, the companies said on Thursday. The companies did not disclose the number of vehicles AT&T will buy or the financial terms of the deal. Still, Rivian has said it has seen a "lot of interest and demand" for its vans beyond Amazon.
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7 Top-Rated Stocks for Your December Buy List
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The month is flying by. We’re halfway through the last month of 2023, the holidays are around the corner. And you’re saying you haven’t made out your December buy list for top-rated stocks?
No worries. We’ve got you covered.
December is actually a great time find top-rated stocks. Historically, the market shows a 1.3% gain in December, which is the third-best average monthly performance.
The end of the year also sees what’s known as a “Santa Claus rally,” a time of bullishness on the market where investors are happier and more optimistic.
Whatever the reason, many investors are in the buying mood. That’s why tools like the Portfolio Grader are so helpful in assisting investors in identifying the best stocks based on metrics like earnings growth, revenue, analyst sentiment and momentum.
These top-rated stocks seem to be ideal choices for December. All are poised to continue recent rallies and profit as you roll into 2024.
SoFi Technologies (SOFI)
Source: rafapress / Shutterstock.com
SoFi Technologies (NASDAQ:SOFI) is an innovative fintech that functions as an online bank and has a variety of finance products, including student loan refinancing, mortgages, credit cards and personal loan products.
The stock has been depressed for a long time because of the Covid-19 pandemic. While much of the country has been open for a while, federal student loan repayments remained frozen until just recently this fall. Payments restarted in October.
As long as the federal government kept the repayment moratorium in place, SoFi’s bottom line was taking a beating. But now it’s poised to rebound, making it among the top-rated stocks out there.
And SoFi’s customer base is growing rapidly, up to nearly 7% at the end of the third quarter, a gain of 47% from a year ago.
Revenue is already on the way back up, reaching $531 million in the third quarter, a gain of 27% from a year ago. Adjusted EBITDA was $98 million, a far cry from the first quarter of 2022 when it was only $9 million.
SOFI stock is up 72% this year and gets a “B” rating in the Portfolio Grader.
Alphabet (GOOG, GOOGL)
Source: achinthamb / Shutterstock.com
The parent company of the ubiquitous search engine Google, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) had a solid 2023, jumping more than 50% and raising its market capitalization to $1.6 trillion. But I think that 2024 could be just as good, or even better for this perrenial member of any top-rated stocks list.
Alphabet is making some smart moves in the world of generative artificial intelligence. While it arguably trailed some competitors over the last 12 months, Alphabet is working hard to make up lost ground. Its Bard AI chatbot platform, which definitely underwhelmed when it launched in early 2023, is regaining its footing.
Reuters is reporting that Alphabet believes Bard is on a path to be used by 2 billion.
Alphabet is also profiting from a rebound in digital advertising. Advertising revenue in the third quarter reached $59.6 billion, up from $54.4 billion a year ago. That’s a huge percentage of Alphabet’s overall revenue, which was $76.6 billion for the quarter.
I see Alphabet’s advancements in AI, its continued incorporation of Bard into its Google platform and the continued growth of advertising to mean strong numbers for GOOG in the fourth quarter and into 2024. The stock has a “B” rating in the Portfolio Grader.
Toyota (TM)
Source: josefkubes / Shutterstock.com
Japanese automaker Toyota (NYSE:TM) is an outstanding automotive stock that exposes investors to the car-loving Japanese market, vigorous growth in the U.S. and increasing exposure to electric vehicles.
Toyota will also give you access to the fascinating electric vertical take-off and landing market. Toyota has a partnership with Joby Aviation (NYSE:JOBY), a California company that is working on developing an air taxi service.
But more than anything, I love Toyota for what it’s doing with hybrid and electric vehicles. Its EV sales are up 38.4% to 304,000 in October. That’s most Toyota’s sales increase. Total automotive sales for the company were up 7%, so EVs are really driving the company right now.
Toyota recorded revenue of $145.4 billion for the fiscal second quarter of 2024, up 24% from a year ago. And there appears to be more where that comes from.
TM stock is up 35% this year and gets an “A” rating in the Portfolio Grader.
Archer Aviation (ACHR)
Source: T. Schneider / Shutterstock.com
Sure, Toyota will get you some exposure to the eVTOL market. But if you’re really excited about the idea of flying vehicles and want to invest, then Archer Aviation (NYSE:ACHR) is your play.
Archer is a California-based eVTOL company that’s working on creating an electric aerial ridesharing service. Archer envisions a world where someone can hail a flying taxi in New York City and be dropped off at the international airport in Newark in just 10 minutes.
The company seeks to reach the mass market by 2028, with plans to deploy 6,000 aircraft by 2030.
Last month Archer signed a $500 million agreement with Air Chateau International to purchase Archer’s Midnight eVTOL aircraft. The Midnight line has been in testing for four years, and Archer hopes to get Federal Aviation Administration approval to put it into use by 2025.
Archer is a fascinating stock that’s up more than 230% this year. It gets a “B” rating in the Portfolio Grader.
C3.ai (AI)
Source: Shutterstock
It’s really no surprise that C3.ai (NYSE:AI) is one of the fastest-growing stocks in 2023. The ticker is “AI” and this is the year of artificial intelligence. You probably have some investors who know nothing about what C3.ai does, but see it as a window in the the AI space.
Consequently, C3.ai stock is up nearly 150% this year.
Fortunately for investors, it appears to be a solid bet. The company, which makes enterprise AI software to help build and scale AI-powered applications, makes over 40 applications for a dozen industries, including energy and financial services.
It has joint selling agreements with the biggest cloud computing companies in the world, including Alphabet. And while its currently losing money, that’s only because C3.ai is spending heavily on research and development to grow out and scale its offerings.
Earnings for the fiscal second quarter of 2024 included revenue of $73.2 million, up 17% from a year ago. The company has more than $760 million in revenue in hand, so liquidity is not a problem.
Oppenheimer analysts upgraded the stock to “outperform” and hailed the company’s growth and margin expansion. AI stock has a “B” rating in the Portfolio Grader.
Netflix (NFLX)
Source: TY Lim / Shutterstock.com
When you talk about streaming services, Netflix (NASDAQ:NFLX) is surely one of the first names that escapes your lips. At least, it should be.
While the streaming services has become super-competitive in the last few years, Netflix is an original, making it one of the top-rated stocks. It’s been around since the days of video store rentals.
The stock had a great 2023 after the company took the long-overdue step of monetizing its customers who were sharing accounts outside their households. Its program to charge those customers $8 per month led to an increase of 8.8 million paid net additions in the third quarter and helped Netflix increase its revenue by 8% from a year ago.
Netflix also is making headlines for transparency. This week is released its first-ever comprehensive report on viewership was released, which details what titles people are watching. Netflix says it will release subsequent reports twice a year to measure hours viewed for each title with more than 50,000 hours viewed in a six-month period.
Streaming services agreed as part of their recent negotiations with the Writers Guild of America to be more transparent about viewership. These reports will be another tool investors can use to evaluate Netflix and other streaming companies.
NFLX stock is up 57% in 2023 and gets a “B” rating in the Portfolio Grader.
Coinbase Global (COIN)
Source: OpturaDesign / Shutterstock.com
Regardless of how you feel about cryptocurrencies, it’s hard to ignore Coinbase Global (NASDAQ:COIN) these days. The stock is up nearly 300% in 2023, including a 50% gain in the last month.
The price is driven by some rebounding in the cryptocurrency market and investor anticipation that bitcoin exchange-traded funds could be approved by federal regulators.
Coinbase is one of the top ways for retail investors to buy cryptos, the platform has more than 230 tradable cryptocurrencies on the Coinbase platform. Users trade $76 billion in digital assets each quarter.
Coinbase recorded a net loss through the third quarter but believes it will post positive adjusted EBITDA for the full year. Its third-quarter revenue of $623 million was up 8% from a year ago. And while it had a net loss of $2 million for the quarter, that’s much better than the $545 million loss it posted in Q2 of 2022.
COIN stock gets an “A” rating in the Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post 7 Top-Rated Stocks for Your December Buy List 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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That’s why tools like the Portfolio Grader are so helpful in assisting investors in identifying the best stocks based on metrics like earnings growth, revenue, analyst sentiment and momentum. Archer envisions a world where someone can hail a flying taxi in New York City and be dropped off at the international airport in Newark in just 10 minutes. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 7 Top-Rated Stocks for Your December Buy List appeared first on InvestorPlace.
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SoFi Technologies (SOFI) Source: rafapress / Shutterstock.com SoFi Technologies (NASDAQ:SOFI) is an innovative fintech that functions as an online bank and has a variety of finance products, including student loan refinancing, mortgages, credit cards and personal loan products. Toyota (TM) Source: josefkubes / Shutterstock.com Japanese automaker Toyota (NYSE:TM) is an outstanding automotive stock that exposes investors to the car-loving Japanese market, vigorous growth in the U.S. and increasing exposure to electric vehicles. Toyota has a partnership with Joby Aviation (NYSE:JOBY), a California company that is working on developing an air taxi service.
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SOFI stock is up 72% this year and gets a “B” rating in the Portfolio Grader. Toyota (TM) Source: josefkubes / Shutterstock.com Japanese automaker Toyota (NYSE:TM) is an outstanding automotive stock that exposes investors to the car-loving Japanese market, vigorous growth in the U.S. and increasing exposure to electric vehicles. Its program to charge those customers $8 per month led to an increase of 8.8 million paid net additions in the third quarter and helped Netflix increase its revenue by 8% from a year ago.
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But now it’s poised to rebound, making it among the top-rated stocks out there. Consequently, C3.ai stock is up nearly 150% this year. The stock is up nearly 300% in 2023, including a 50% gain in the last month.
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2023-12-11 00:00:00 UTC
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Biotech ETF SBIO Sees Buy Signal Amid Hot Returns
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https://www.nasdaq.com/articles/biotech-etf-sbio-sees-buy-signal-amid-hot-returns
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It’s been a complicated year for tech firms outside those “Magnificent Seven” names that have, to some degree, outgrown a simple “tech” distinction. High interest rates have taken a toll on tech firms. That includes biotech firms that rely on borrowing in early stages before they can have patents approved. Despite that, however, at least one biotech ETF is ending the year on a high – and a big one, at that.
Indeed, the ALPS Medical Breakthroughs ETF (SBIO) has returned 21.4% over the last month, per VettaFi data. That outperforms both its ETF Database Category and FactSet Segment averages. That activity has also seen SBIO’s price recover back to the $29.6 range it last hit in October from lows around $24. That price rise has not only taken the ETF’s price above its 50-day simple moving average (SMA), but above its 200-day SMA as well.
[caption id="attachment_550323" align="aligncenter" width="625"] Per YCharts, biotech ETF SBIO has sent a strong buy signal.[/caption]
The main stock rising in SBIO’s holdings, per YCharts, is Acadia Pharmaceuticals (ACAD), which has risen significantly in recent weeks following a win in a patent lawsuit. ACAD has gained 32% since that win. Elsewhere in SBIO, China approved VYVGART, a treatment by Zai Labs Ltd (ZLAB), with ZLAB rising 14%.
Biotech ETF SBIO's Approach
SBIO holds both as part of its approach. It tracks the S-Network Medical Breakthroughs Index for a 50 basis point fee. The biotech ETF’s index takes a market-cap-weighted approach specifically including firms with one or more drugs in Phase II or Phase III FDA clinical trials. To screen out some firms that may face balance sheet struggles amid this higher-for-longer rate regime, SBIO limits itself to firms with at least $200 million in AUM. It also screens for sustainability.
See more: "Play US Gene Treatment Approval in SBIO"
A new year brings new opportunities, and with the potential for rate cuts down the line, a biotech ETF could offer some notable appeal. For investors on the lookout for exposure to ongoing advances in the space, SBIO may offer one notable route in.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for SBIO, for which it receives an index licensing fee. However, SBIO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SBIO.
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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[/caption] The main stock rising in SBIO’s holdings, per YCharts, is Acadia Pharmaceuticals (ACAD), which has risen significantly in recent weeks following a win in a patent lawsuit. See more: "Play US Gene Treatment Approval in SBIO" A new year brings new opportunities, and with the potential for rate cuts down the line, a biotech ETF could offer some notable appeal. For investors on the lookout for exposure to ongoing advances in the space, SBIO may offer one notable route in.
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Indeed, the ALPS Medical Breakthroughs ETF (SBIO) has returned 21.4% over the last month, per VettaFi data. [caption id="attachment_550323" align="aligncenter" width="625"] Per YCharts, biotech ETF SBIO has sent a strong buy signal. Biotech ETF SBIO's Approach SBIO holds both as part of its approach.
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Biotech ETF SBIO's Approach SBIO holds both as part of its approach. See more: "Play US Gene Treatment Approval in SBIO" A new year brings new opportunities, and with the potential for rate cuts down the line, a biotech ETF could offer some notable appeal. However, SBIO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SBIO.
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High interest rates have taken a toll on tech firms. That price rise has not only taken the ETF’s price above its 50-day simple moving average (SMA), but above its 200-day SMA as well. See more: "Play US Gene Treatment Approval in SBIO" A new year brings new opportunities, and with the potential for rate cuts down the line, a biotech ETF could offer some notable appeal.
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713713.0
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2023-12-11 00:00:00 UTC
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Is Alphabet Stock a Buy Now?
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https://www.nasdaq.com/articles/is-alphabet-stock-a-buy-now-10
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Advertising and tech giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has rallied Wall Street this year, with its stock up about 52% since Jan. 1. Along with the likes of Nvidia, Amazon, and Microsoft, Alphabet has joined the current boom in artificial intelligence (AI) and has solid prospects in the sector.
The company started 2023 with the launch of Bard, an AI chatbot similar to OpenAI's ChatGPT. The platform initially disappointed, with a rushed release leading to a flawed debut. However, Alphabet appears to have learned and has slightly pulled back, using the rest of the year to develop the highly anticipated large language model Gemini, which will be released in 2024.
The new model is expected to be competitive with OpenAI's GPT-4 and could open the door to countless growth opportunities for Alphabet.
Alongside AI, the company has used the popularity of platforms like Google Search and YouTube to become a leading name in digital advertising, with earnings soaring over the last five years.
The tech company is on a promising growth trajectory you won't want to miss. Here's why Alphabet stock is a screaming buy right now.
Lucrative opportunities in multiple markets
As the home of potent brands like Google, Android, and YouTube, Alphabet has prominent positions in markets across tech. The company holds an over 80% market share in search engines, dominates online video sharing with YouTube, and is experiencing rapid growth in cloud computing. In fact, Alphabet has nine products with more than 1 billion users, representing vast earnings potential.
The tech giant used the popularity of its various services to achieve a 25% market share in the $680 billion digital ad market. The industry proved vulnerable to macroeconomic headwinds last year but is quickly improving. In the third quarter of 2023, Alphabet posted revenue gains of 11% year over year, beating analysts' forecasts by $980 million.
The rise was primarily thanks to solid growth in advertising, with Google Search revenue increasing 11% and YouTube ads by 12%. The market will likely continue expanding as inflation eases and more businesses turn to digital methods to boost earnings.
Google Cloud, Alphabet's fastest-growing business, saw sales rise 23% year over year in the quarter. The platform holds the third-largest cloud market share, with the industry a promising way to expand in AI.
Demand for AI cloud services is soaring as companies increasingly seek ways to integrate the technology into their workflows. As a result, Alphabet is heavily investing in Google Cloud's AI capabilities.
The company has already seen some success in the space, revealing in August that 70% of AI start-ups worth more than $1 billion are Google Cloud customers, including Anthropic, Character.ai, and Cohere.
Alphabet is a tech behemoth showing no signs of slowing, with exciting prospects in multiple high-growth sectors.
Alphabet stock is one of the biggest bargains in tech
Alphabet has a stellar outlook over the long term. However, its business has been slightly overshadowed by competitors like Amazon and Microsoft, which experienced more significant stock gains this year. Alphabet arguably has equal, if not more, growth potential than these companies, suggesting it could be undervalued.
Data by YCharts
The charts above compare the forward price-to-earnings (P/E) and price-to-free-cash-flow ratios of some of the most prominent names in tech, all active in cloud computing and AI. For both valuation metrics, Alphabet has the lowest figures, indicating its stock offers more value than any of these companies.
Over the last five years, Alphabet's annual revenue has risen 107%, with operating income soaring about 130%. Meanwhile, free cash flow exceeded $77 billion this year, significantly more than any company in the charts above.
Alphabet has a potent position in tech, with the cash to continue investing in its business. Meanwhile, its forward P/E and price-to-free-cash-flow ratios show it is one of the biggest bargains in tech. As a result, Alphabet is absolutely a buy now and too good to pass up.
Should you invest $1,000 in Alphabet 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Alphabet appears to have learned and has slightly pulled back, using the rest of the year to develop the highly anticipated large language model Gemini, which will be released in 2024. Alongside AI, the company has used the popularity of platforms like Google Search and YouTube to become a leading name in digital advertising, with earnings soaring over the last five years. Data by YCharts The charts above compare the forward price-to-earnings (P/E) and price-to-free-cash-flow ratios of some of the most prominent names in tech, all active in cloud computing and AI.
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Advertising and tech giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has rallied Wall Street this year, with its stock up about 52% since Jan. 1. Alongside AI, the company has used the popularity of platforms like Google Search and YouTube to become a leading name in digital advertising, with earnings soaring over the last five years. The rise was primarily thanks to solid growth in advertising, with Google Search revenue increasing 11% and YouTube ads by 12%.
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Advertising and tech giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has rallied Wall Street this year, with its stock up about 52% since Jan. 1. Alphabet stock is one of the biggest bargains in tech Alphabet has a stellar outlook over the long term. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
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Alongside AI, the company has used the popularity of platforms like Google Search and YouTube to become a leading name in digital advertising, with earnings soaring over the last five years. Alphabet has a potent position in tech, with the cash to continue investing in its business. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
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713714.0
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2023-12-11 00:00:00 UTC
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Strength Seen in Alerus (ALRS): Can Its 8.8% Jump Turn into More Strength?
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https://www.nasdaq.com/articles/strength-seen-in-alerus-alrs%3A-can-its-8.8-jump-turn-into-more-strength
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Alerus (ALRS) shares rallied 8.8% in the last trading session to close at $20.87. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.4% 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. Hence, the ALRS stock gained.
This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -45.3%. Revenues are expected to be $45 million, down 14.3% 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 Alerus, 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 ALRS 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 >>>>
Alerus belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Virtu Financial (VIRT), closed the last trading session 2.6% higher at $20.08. Over the past month, VIRT has returned 10.6%.
Virtu Financial's consensus EPS estimate for the upcoming report has changed -7.9% over the past month to $0.49. Compared to the company's year-ago EPS, this represents a change of +32.4%. Virtu Financial currently boasts a Zacks Rank of #3 (Hold).
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Alerus Financial (ALRS) : Free Stock Analysis Report
Virtu Financial, Inc. (VIRT) : 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. This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -45.3%. 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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Another stock from the same industry, Virtu Financial (VIRT), closed the last trading session 2.6% higher at $20.08. Virtu Financial's consensus EPS estimate for the upcoming report has changed -7.9% over the past month to $0.49. Click to get this free report Alerus Financial (ALRS) : Free Stock Analysis Report Virtu Financial, Inc. (VIRT) : 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 >>>> Alerus belongs to the Zacks Financial - Miscellaneous Services industry. Click to get this free report Alerus Financial (ALRS) : Free Stock Analysis Report Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Hence, the ALRS stock gained. Another stock from the same industry, Virtu Financial (VIRT), closed the last trading session 2.6% higher at $20.08. Virtu Financial's consensus EPS estimate for the upcoming report has changed -7.9% over the past month to $0.49.
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2023-12-11 00:00:00 UTC
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Pfizer (PFE) Stock Sinks on Weak 2024 View as COVID Sales Fall
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https://www.nasdaq.com/articles/pfizer-pfe-stock-sinks-on-weak-2024-view-as-covid-sales-fall
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Pfizer PFE issued weak revenue and profit guidance for 2024 due to lower-than-expected demand for its COVID products — COVID-19 vaccine, Comirnaty, and its oral antiviral pill for COVID, Paxlovid. Pfizer’s guidance for 2024 includes its expectations from the acquisition of Seagen SGEN, which is expected to close today, as all regulatory approvals have been received.
Pfizer records direct sales and alliance revenues from its partner BioNTech BNTX for Comirnaty and product revenues from Paxlovid.
Pfizer expects total revenues to be in the range of $58.5 to $61.5 billion in 2024, which indicates almost flat growth from 2023’s expected range of $58.0 to $61.0 billion. The range is well short of the Zacks Consensus Estimate of $62.92 billion.
The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty, well short of our model estimate of approximately $11.7 billion. The number is also significantly lower than the expected combined revenues of $12.5 billion for 2023. The $8 billion combined guidance comprises $5 billion from Comirnaty and $3 billion from Paxlovid.
Sales of Pfizer’s COVID products witnessed a steep decline after the pandemic ended. Pfizer is launching both Comirnaty and Paxlovid in traditional commercial markets in the United States in the hope of reviving sales. However, it does not look like this strategy can lead to much improvement in sales.
The total revenue guidance also includes $3.1 billion in expected revenues from Seagen. Pfizer had offered to buy cancer drugmaker Seagen for approximately $43 billion in March. Seagen’s acquisition is expected to strengthen Pfizer’s portfolio of cancer drugs by addinga class of antibody-drug conjugates. Seagen currently markets four cancer drugs — Adcetris, Padcev, Tukysa and Tivdak. Pfizer expects the acquisition to double the size of its early-stage oncology pipeline over the long term.
The total revenue guidance also includes approximately $1 billion due to the reclassification of Pfizer’s royalty income from Other (Income)/Deductions into the Revenue line.
Excluding revenues from Seagen and the abovementioned reclassification, the revenue guidance for legacy Pfizer is $54.5 to $57.5 billion, which indicates a decline from the expected range for 2023.
Adjusted earnings are expected in the range of $2.05 to $2.25 per share including the expected impact of financing costs related to the Seagen acquisition. The earnings range was also well short of the Zacks Consensus Estimate of $3.10 per share.
However, excluding 40 cents dilution from the Seagen acquisition, adjusted earnings for legacy Pfizer are expected in the range of $2.45 to $2.65 per share.
Pfizer’s shares were down almost 6.7% on Wednesday in response to the muted guidance for 2024. Pfizer’s stock has declined 48.1% so far this year against an increase of 4.5% for the industry.
Image Source: Zacks Investment Research
Excluding COVID-19 products but including Seagen, Pfizer expects its revenues to rise 8% to 10% on an operational basis in 20243 as sales from non-COVID drugs remain strong. Excluding the contribution from COVID-19 products as well as Seagen, operational sales are expected to increase 3%-5%.
With the decline in demand for COVID products, Pfizer announced cost cuts, including layoffs, in August 2023, which it said would deliver targeted savings of at least $3.5 billion. However, the company raised its expectations of savings by $500 million to $4 billion.
Research and development expense is expected in the range of $11.0 to $12.0 billion in 2024. SI&A spending is expected in the range of $13.8 to $14.8 billion. The adjusted tax rate is expected to be approximately 15% in 2024.
Pfizer maintained its previously issued sales and earnings guidance range for 2023 of $58.0-$61.0 billion and $1.45-$1.65 per share, respectively.
Another COVID-19 vaccine maker, Moderna MRNA, is also seeing declining sales and profits due to weak demand for its only marketed product, an mRNA-based COVID-19 vaccine. Moderna and Pfizer were the first two companies to give the world vaccines for COVID-19. The profits that Moderna generated from its COVID products boosted its cash resources, which is now helping it accelerate its pipeline development.
Zacks Rank
Pfizer currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer Inc. Price and Consensus
Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote
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Pfizer Inc. (PFE) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
Seagen Inc. (SGEN) : Free Stock Analysis Report
BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Excluding COVID-19 products but including Seagen, Pfizer expects its revenues to rise 8% to 10% on an operational basis in 20243 as sales from non-COVID drugs remain strong. With the decline in demand for COVID products, Pfizer announced cost cuts, including layoffs, in August 2023, which it said would deliver targeted savings of at least $3.5 billion. The profits that Moderna generated from its COVID products boosted its cash resources, which is now helping it accelerate its pipeline development.
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Pfizer PFE issued weak revenue and profit guidance for 2024 due to lower-than-expected demand for its COVID products — COVID-19 vaccine, Comirnaty, and its oral antiviral pill for COVID, Paxlovid. Image Source: Zacks Investment Research Excluding COVID-19 products but including Seagen, Pfizer expects its revenues to rise 8% to 10% on an operational basis in 20243 as sales from non-COVID drugs remain strong. Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Seagen Inc. (SGEN) : Free Stock Analysis Report BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Pfizer expects total revenues to be in the range of $58.5 to $61.5 billion in 2024, which indicates almost flat growth from 2023’s expected range of $58.0 to $61.0 billion. Excluding revenues from Seagen and the abovementioned reclassification, the revenue guidance for legacy Pfizer is $54.5 to $57.5 billion, which indicates a decline from the expected range for 2023. Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Seagen Inc. (SGEN) : Free Stock Analysis Report BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Pfizer expects total revenues to be in the range of $58.5 to $61.5 billion in 2024, which indicates almost flat growth from 2023’s expected range of $58.0 to $61.0 billion. The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty, well short of our model estimate of approximately $11.7 billion. Excluding revenues from Seagen and the abovementioned reclassification, the revenue guidance for legacy Pfizer is $54.5 to $57.5 billion, which indicates a decline from the expected range for 2023.
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2023-12-11 00:00:00 UTC
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McDonald's Super-Sized Growth Ambitions: Why the Stock Can Still Go Higher in 2024 and Beyond
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https://www.nasdaq.com/articles/mcdonalds-super-sized-growth-ambitions%3A-why-the-stock-can-still-go-higher-in-2024-and
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nan
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nan
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McDonald's (NYSE: MCD) is a solid, dependable stock to own. But investors don't often think of it as much of a growth stock. While it offers a good dividend, this is not the type of investment people come to expect high returns from these days.
But the company has recently released some promising growth targets, which could mean some significant growth for the business. Here's a closer look at those plans, and why the stock could be a great buy not just for next year but for the long term.
50,000 restaurants by 2027
On Dec. 6, fast-food restaurant giant McDonald's unveiled some exciting growth targets for its Accelerating the Arches strategy. One of the biggest targets are plans for it to reach 50,000 restaurants worldwide by 2027. That is 8,802 more restaurants than the 41,198 it reported as of the end of September. That's a significant rate of increase given that the company finished 2017 with just 37,241 restaurants -- it has increased its restaurant count by less than 4,000 since then, which is a span of almost six years. It plans to double that rate over a shorter time frame.
By opening more locations, the company can achieve a higher growth rate than what it has averaged in the past, which could draw in more growth-oriented investors along the way.
MCD Revenue (Quarterly YoY Growth) data by YCharts
McDonald's also doesn't plan to sacrifice profitability either. The company projects that its operating margin will expand, even as it launches new restaurants.
Utilizing more technology
In addition to growing its top line, the company is also making efforts to become more efficient. McDonald's has announced a partnership with Alphabet's Google Cloud, so that it can make use of artificial intelligence (AI) at its restaurants. The end goal is for this to reduce complexity for McDonald's staff while also providing customers with a better experience.
Upgrading and improving its technological capabilities is also important in one of McDonald's other key goals -- growing its loyalty member count from 150 million users to 250 million by 2027.
More users on the McDonald's app will make it easier and more cost-effective for the company to reach those customers. It ties in well with the company's focus on AI, as more loyalty members means more data on the McDonald's app which can be utilized to tailor specific recommendations and promos to users, thereby potentially making it easier to grow sales in the long run.
Investors should be lovin' the stock
Shares of McDonald's are up a fairly modest 9% this year, and the stock trades at a fairly high 25 times earnings -- higher than the S&P 500 average of 20. But given McDonald's focus on both growing sales and improving efficiency through technological improvements and more loyalty members, the company's earnings should look a whole lot better over the next few years as it begins to execute on these ambitious growth plans.
That's why despite the seemingly elevated valuation, McDonald's could be an excellent stock to buy. Not only is the business still growing, but it also offers investors a top dividend which yields 2.3%, and it has been increasing its payouts for decades. Overall, McDonald's is a great stock that could be an ideal investment for any portfolio.
Should you invest $1,000 in McDonald's right now?
Before you buy stock in McDonald's, consider this:
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. 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 opening more locations, the company can achieve a higher growth rate than what it has averaged in the past, which could draw in more growth-oriented investors along the way. MCD Revenue (Quarterly YoY Growth) data by YCharts McDonald's also doesn't plan to sacrifice profitability either. It ties in well with the company's focus on AI, as more loyalty members means more data on the McDonald's app which can be utilized to tailor specific recommendations and promos to users, thereby potentially making it easier to grow sales in the long run.
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Upgrading and improving its technological capabilities is also important in one of McDonald's other key goals -- growing its loyalty member count from 150 million users to 250 million by 2027. It ties in well with the company's focus on AI, as more loyalty members means more data on the McDonald's app which can be utilized to tailor specific recommendations and promos to users, thereby potentially making it easier to grow sales in the long run. But given McDonald's focus on both growing sales and improving efficiency through technological improvements and more loyalty members, the company's earnings should look a whole lot better over the next few years as it begins to execute on these ambitious growth plans.
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Investors should be lovin' the stock Shares of McDonald's are up a fairly modest 9% this year, and the stock trades at a fairly high 25 times earnings -- higher than the S&P 500 average of 20. But given McDonald's focus on both growing sales and improving efficiency through technological improvements and more loyalty members, the company's earnings should look a whole lot better over the next few years as it begins to execute on these ambitious growth plans. 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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That's a significant rate of increase given that the company finished 2017 with just 37,241 restaurants -- it has increased its restaurant count by less than 4,000 since then, which is a span of almost six years. 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 Motley Fool has positions in and recommends Alphabet.
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714212b9-3eac-4c73-8404-9a626df3cdab
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713717.0
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2023-12-11 00:00:00 UTC
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Do Options Traders Know Something About Danaos (DAC) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-danaos-dac-stock-we-dont
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nan
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Investors in Danaos Corporation DAC need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $160.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Danaos shares, but what is the fundamental picture for the company? Currently, Danaos is a Zacks Rank #4 (Sell) in the Transportation - Shipping industry that ranks in the Top 32% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $7.82 per share to $7.70 in that period.
Given the way analysts feel about Danaos right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
Danaos Corporation (DAC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> 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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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Danaos Corporation (DAC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Danaos right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Danaos right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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bd4fca16-85d7-46ea-afc1-93fe6a65e445
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713718.0
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2023-12-11 00:00:00 UTC
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5 Stocks With High ROE to Buy as Fed Spurs Santa Claus Rally
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DCOMP
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https://www.nasdaq.com/articles/5-stocks-with-high-roe-to-buy-as-fed-spurs-santa-claus-rally
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nan
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nan
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The U.S. equity markets witnessed a spectacular rally yesterday, buoyed by the Federal Reserve’s decision to hold interest rates steady in the 5.25% to 5.5% range while pledging to cut the same several times next year. The much-anticipated acknowledgment of a decelerating inflation trend lifted the leading benchmark indices to 52-week highs and propelled them to record tallies.
While the S&P crossed 4,700 for the first time since January 2022, the Dow closed above the 37,000 mark — exceeding a previous record set in the same month. This buoyed the ongoing Santa Claus rally that was fueled by solid jobs and consumer price index data. The November non-farm payrolls report showed that the jobless rate fell to 3.7% from 3.9% in the prior month. The economy also added 199,000 jobs compared with 150,000 job additions in October, signifying economic strength.
The consumer price index was up 3.1% in November on a year-over-year basis and 0.1% month over month. The latest GDP data also revealed that the economy grew in the third quarter at a stronger-than-forecast annual rate of 5.2%.
As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. NRG Energy, Inc. NRG, Thomson Reuters Corporation TRI, Suzano S.A. SUZ, Cboe Global Markets, Inc. CBOE and Arch Capital Group Ltd. ACGL are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders’ Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.
Parameters Used For Screening
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow lesser than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of asset, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 12 stocks that qualified the screening:
NRG Energy: Headquarters in Houston, TX, NRG Energy is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial and commercial consumers in major competitive power markets in the United States. The company also provides system power, distributed generation, renewable products, backup generation, energy efficiency and advisory services, as well as carbon management and specialty services.
The stock delivered a trailing four-quarter earnings surprise of 4.7%, on average. NRG Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thomson Reuters: Based in Toronto, Canada, Thomson Reuters serves professionals across legal, tax, accounting, compliance, government and media sectors. Its products combine highly specialized software and insights to empower professionals with the data, intelligence and solutions needed to make informed decisions with transparency.
Thomson Reuters has a long-term earnings growth expectation of 11.1% and delivered a trailing four-quarter earnings surprise of 12.2%, on average. It carries a Zacks Rank #2.
Suzano: Headquartered in Salvador, Brazil, Suzano produces and sells eucalyptus pulp and paper products. With more than 90 years of experience, this vertically integrated firm is one of the largest producers of paper and graphic products in South America.
Suzano has a long-term earnings growth expectation of 6.9%. It has a VGM Score of B. It carries a Zacks Rank #2.
Cboe Global: Based in Chicago, IL, Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. It offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, ETPs, global foreign exchange and multi-asset volatility products based on the VIX Index.
The company has a long-term earnings growth expectation of 10.2% and delivered a trailing four-quarter earnings surprise of 4.1%, on average. Cboe Global sports a Zacks Rank #1.
Arch Capital: Headquartered in Pembroke, Bermuda, Arch Capital offers insurance, reinsurance and mortgage insurance across the world. It provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity, workers’ compensation and umbrella liability and employers’ liability insurance coverages. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines while maintaining a focus on writing specialty lines of insurance and reinsurance.
Arch Capital carries a Zacks Rank #2. It has a long-term earnings growth expectation of 10%. It delivered a trailing four-quarter earnings surprise of 35.2%, on average. It has a VGM Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
Thomson Reuters Corp (TRI) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. equity markets witnessed a spectacular rally yesterday, buoyed by the Federal Reserve’s decision to hold interest rates steady in the 5.25% to 5.5% range while pledging to cut the same several times next year. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns. Its products combine highly specialized software and insights to empower professionals with the data, intelligence and solutions needed to make informed decisions with transparency.
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NRG Energy, Inc. NRG, Thomson Reuters Corporation TRI, Suzano S.A. SUZ, Cboe Global Markets, Inc. CBOE and Arch Capital Group Ltd. ACGL are some of the stocks with high ROE to profit from. Parameters Used For Screening In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. Click to get this free report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Suzano S.A.
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NRG Energy, Inc. NRG, Thomson Reuters Corporation TRI, Suzano S.A. SUZ, Cboe Global Markets, Inc. CBOE and Arch Capital Group Ltd. ACGL are some of the stocks with high ROE to profit from. Parameters Used For Screening In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. Click to get this free report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Suzano S.A.
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A high ROE ensures that the company is reinvesting cash at a high rate of return. Want the latest recommendations from Zacks Investment Research? Click to get this free report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Suzano S.A.
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b22090da-f27b-4284-9de9-843e57faee06
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713719.0
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2023-12-11 00:00:00 UTC
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Implied Volatility Surging for Standard Motor (SMP) Stock Options
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https://www.nasdaq.com/articles/implied-volatility-surging-for-standard-motor-smp-stock-options
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Investors in Standard Motor Products, Inc. SMP need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 16, 2024 $35.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Standard Motor shares, but what is the fundamental picture for the company? Currently, Standard Motor is a Zacks Rank #3 (Hold) in the Automotive - Replacement Parts industry that ranks in the Bottom 25% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 70 cents per share to 62 cents in that period.
Given the way analysts feel about Standard Motor right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> 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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Investors in Standard Motor Products, Inc. SMP need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Click to get this free report Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Standard Motor right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. Given the way analysts feel about Standard Motor right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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b1792065-e9ec-4f96-a07c-0b30f91b643c
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713720.0
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2023-12-11 00:00:00 UTC
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Naked Put Trade Ideas For December 13th
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DCOMP
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https://www.nasdaq.com/articles/naked-put-trade-ideas-for-december-13th
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nan
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With markets looking a quite bullish these days, I thought it would be a good time to look at our Naked Put Screener.
But first, let’s find some stocks with high implied volatility.
High volatility means high option premiums for many stocks.
Implied volatility rank, or IV Rank for short, is a good way to see if the current level of implied volatility for a stock is high or low compared to the last twelve months.
An IV Rank of 100% means the current level of implied volatility is the highest it has been in the last twelve months.
An IV Rank of 0% means the current level of implied volatility is the lowest it has been in the last twelve months.
When IV Ranks is high, it can be a good idea to look at option selling strategies such as naked puts, bull put spreads, bear call spreads and iron condors.
Let’s take a look at some large cap stocks with an IV Percentile above 50%.
The parameters for this screener are:
IV Percentile above 50%
Market Cap above 40B
Total Call Volume above 2000
The above list of stocks gives us a starting point to do some more research on with a view to selling options.
Let’s go over to the Naked Puts Screener and see what that shows us.
Naked Put Screener
Here we have the results from the Naked Put Screener. We can see stocks such as Taiwan Semiconductor (TSM), Fedex (FDX), Rio Tinto (RIO), Petroleo Brasileiro (PBR), Nike (NKE) and General Electric (GE).
The parameters for this screener are as follows. I customized these slightly from the Barchart default preferences.
Market Cap above 40 billion
Days to expiration 15-45
Option volume greater than 50
Open Interest greater than 100
Moneyness -15% to -5%
Let’s now add a parameter for IV Percentile greater than 50% and only include stock with a Buy rating. Here are the results:
One way to take ownership of a stock for less than the current price is via an option strategy called a cash-secured put.
A cash-secured put is a slightly less bullish trade than buying the stock. It is considered a neutral to slightly bullish trade.
A cash-secured put involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. The goal is to either have the put expire worthless and keep the premium or be assigned and acquire the stock below the current price.
Selling put options is an easy place for investors to start with options. They are like a covered call and are pretty easy to understand once you know the basics.
Traders selling puts should understand that they may be assigned 100 shares at the strike price.
FDX Naked Put Example
Let’s look at the first line item as an example, a trader selling the January 19th, $260-strike put on FDX would receive $390 into their account, which would be theirs to keep.
If FDX falls below $260 by January 19th, they would be required to buy 100 shares at $260. The effective net cost of the position would be $256.10, thanks to the option premium received.
That is 6.92% below yesterday’s closing price.
If the stock stays above $260 at expiry, the put expires worthless, leaving the trader with a 1.50% return on capital at risk.
That works out to be 15.4% annualized.
The main risk with the trade is similar to outright stock ownership. If the stock falls quickly, the trade will suffer a loss. However, the premium received will help to offset the loss.
The maximum loss on the trade would occur if FDX fell to $0, which would see the trade lose $25,610 but most traders would cut losses long before then.
Cash-secured puts are a great way to generate a return on strong stocks, potentially without ever having to take ownership.
If the put does get assigned, the investor takes ownership with a reduced cost base and can potentially begin selling covered calls to generate additional income from the position.
Barchart’s Naked Put Screener can be a great way to find option trade ideas.
Please remember that options are risky, and investors can lose 100% of their investment.
This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Stocks Soar as Fed Signals its Rate Hike Cycle is Finished
3 Buy-Rated Growth Stocks to Own for 2024
Up 150% YTD, Should You Ride the Uber Stock Rally?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The parameters for this screener are: IV Percentile above 50% Market Cap above 40B Total Call Volume above 2000 The above list of stocks gives us a starting point to do some more research on with a view to selling options. Here are the results: One way to take ownership of a stock for less than the current price is via an option strategy called a cash-secured put. If the put does get assigned, the investor takes ownership with a reduced cost base and can potentially begin selling covered calls to generate additional income from the position.
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High volatility means high option premiums for many stocks. When IV Ranks is high, it can be a good idea to look at option selling strategies such as naked puts, bull put spreads, bear call spreads and iron condors. Barchart’s Naked Put Screener can be a great way to find option trade ideas.
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When IV Ranks is high, it can be a good idea to look at option selling strategies such as naked puts, bull put spreads, bear call spreads and iron condors. A cash-secured put involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. More Stock Market News from Barchart Stocks Soar as Fed Signals its Rate Hike Cycle is Finished 3 Buy-Rated Growth Stocks to Own for 2024 Up 150% YTD, Should You Ride the Uber Stock Rally?
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The parameters for this screener are: IV Percentile above 50% Market Cap above 40B Total Call Volume above 2000 The above list of stocks gives us a starting point to do some more research on with a view to selling options. Here are the results: One way to take ownership of a stock for less than the current price is via an option strategy called a cash-secured put. A cash-secured put is a slightly less bullish trade than buying the stock.
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0c219b4c-73f1-4642-a4a1-36a74c55e564
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713721.0
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2023-12-11 00:00:00 UTC
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Bank of Marin (BMRC) Surges 7.5%: Is This an Indication of Further Gains?
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DCOMP
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https://www.nasdaq.com/articles/bank-of-marin-bmrc-surges-7.5%3A-is-this-an-indication-of-further-gains
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nan
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Bank of Marin BMRC shares rallied 7.5% in the last trading session to close at $21.74. 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% gain over the past four weeks.
The Federal Reserve has signaled an end to the current rate hike cycle by keeping interest rates unchanged at the 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. The central bank has also indicated a 75 basis points cut in rates by 2024-end. The above-mentioned developments have attributed to bullish investor sentiments. Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This probably drove the BMRC stock higher in last day’s trading session.
This bank holding company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -60.5%. Revenues are expected to be $27.5 million, down 23.5% 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 Bank of Marin, 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 BMRC 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 >>>>
Bank of Marin belongs to the Zacks Banks - West industry. Another stock from the same industry, First Northwest Bancorp FNWB, closed the last trading session 1.1% higher at $15.44. Over the past month, FNWB has returned 4.4%.
First Northwest Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. Compared to the company's year-ago EPS, this represents a change of -69.7%. First Northwest Bancorp currently boasts a Zacks Rank of #4 (Sell).
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the fall in rates, the higher funding costs being faced by banks will likely come down somewhat next year, thus supporting net interest income and margins. This bank holding company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -60.5%. 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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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Bank of Marin belongs to the Zacks Banks - West industry. First Northwest Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. Click to get this free report Bank of Marin Bancorp (BMRC) : Free Stock Analysis Report First Northwest Bancorp (FNWB) : 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 >>>> Bank of Marin belongs to the Zacks Banks - West industry. Click to get this free report Bank of Marin Bancorp (BMRC) : Free Stock Analysis Report First Northwest Bancorp (FNWB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This bank holding company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -60.5%. Another stock from the same industry, First Northwest Bancorp FNWB, closed the last trading session 1.1% higher at $15.44. First Northwest Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20.
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713722.0
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2023-12-11 00:00:00 UTC
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US STOCKS-Futures rise after Fed signals rate cuts are on the horizon
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https://www.nasdaq.com/articles/us-stocks-futures-rise-after-fed-signals-rate-cuts-are-on-the-horizon
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By Shristi Achar A and Johann M Cherian
Dec 14 (Reuters) - U.S. stock index futures gained on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view".
The Fed had raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024.
The dovish pivot in the central bank's statement triggered a rally in equities on Wednesday and sent the Dow Jones Industrial Average Index .DJI to a record closing high.
"Continuing disinflationary pressures has offered the Fed room to maneuver. Further, there are signs that rate hikes are loosening the labor market," said Emin Hajiyev, senior economist at Insight Investment.
"If the Fed can bring inflation down without these measures deteriorating much further, it strongly improves the central bank’s prospect of achieving a 'soft landing' and avoiding a recession."
Money markets now see an 88.6% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while fully pricing in another cut in May, according to CME Group's FedWatch tool.
Treasury yields also fell to multi-month lows following Wednesday's events, with the yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9675%.US/
The falling yields further cushioned equities, with megacap stocks like Alphabet GOOGL.O, Tesla TSLA.O and Nvidia NVDA.O inching up between 0.8% and 1.0% before the bell.
Investors will now parse the retail sales data for November and the weekly jobless claims number, both due at 8:30 a.m. ET, for more clues on softening inflation.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 93 points, or 0.25%, S&P 500 e-minis EScv1 were up 12.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 59.5 points, or 0.35%.
AdobeADBE.O shed 4.5% after the Photoshop maker forecast annual and quarterly revenue below estimates.
ModernaMRNA.O advanced 6.1% after an experimental messenger RNA cancer vaccine it developed along with Merck MRK.N cut the chance of recurrence or death from melanoma by half after three years, when paired with Merck's Keytruda.
Occidental PetroleumOXY.N added 2.0% after Warren Buffett's Berkshire Hathaway BRKa.N acquired nearly 10.5 million shares of the oil giant for about $588.7 million.
Foot Locker FL.N rose 3.6% after Piper Sandler upgraded the sportswear retailer to "overweight" from "neutral".
Stocks love the Fed again https://tmsnrt.rs/3v4nD2u
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - U.S. stock index futures gained on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year. The dovish pivot in the central bank's statement triggered a rally in equities on Wednesday and sent the Dow Jones Industrial Average Index .DJI to a record closing high. "If the Fed can bring inflation down without these measures deteriorating much further, it strongly improves the central bank’s prospect of achieving a 'soft landing' and avoiding a recession."
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By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - U.S. stock index futures gained on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year. ET, Dow e-minis 1YMcv1 were up 93 points, or 0.25%, S&P 500 e-minis EScv1 were up 12.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 59.5 points, or 0.35%. Stocks love the Fed again https://tmsnrt.rs/3v4nD2u (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view". The Fed had raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. Stocks love the Fed again https://tmsnrt.rs/3v4nD2u (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Fed had raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024. Money markets now see an 88.6% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while fully pricing in another cut in May, according to CME Group's FedWatch tool.
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30ee2cad-210c-4f1b-a468-b5f608cb0703
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713723.0
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2023-12-11 00:00:00 UTC
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ANALYSIS-Investors cheer Fed's dovish pivot, as focus shifts to 2024 risks
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https://www.nasdaq.com/articles/analysis-investors-cheer-feds-dovish-pivot-as-focus-shifts-to-2024-risks
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By Lewis Krauskopf and David Randall
NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings.
The Fed held interest rates steady on Wednesday and signaled in new economic projections that the historic tightening of U.S. monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024.
The message was more dovish than many investors were expecting. Plunging Treasury yields helped the S&P 500 .SPX rise nearly 1.4% on Wednesday, the biggest gain in the index on a day that the Fed issued its monetary policy statement since July 2022. The benchmark U.S. 10-year Treasury yield, which moves inversely to bond prices, stood at around 3.96% on Thursday morning, the lowest level since late July. US10YT=RR.
"The Fed is done raising rates, and the market could not be more thrilled to have higher conviction in that," said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.
The Fed’s view is now more aligned with that of investors - though markets remain far more dovish in their outlook.
Seventeen out of 19 Fed officials project that the policy rate will be lower by the end of 2024 than it is now - with the median projection showing a fall to 4.6% from the current 5.25%-5.50% range. That compares with a rate of 3.847% reflected in futures to the Fed’s policy rate, LSEG data showed.
With few major macroeconomic events expected for the rest of December, the S&P 500 could have the momentum to end the year by matching or exceeding the closing high it set in January 2022. The index is now less than 2% below that record of 4,796.56. The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company.
Seasonal factors could provide a tailwind: December has been the third-best month for the S&P 500 since 1950, with the second half of the month typically stronger than the first, according to data from LPL Financial.
Support could also come from formerly bearish investors' abandoning their positions. Data from BofA Global Research showed that leveraged funds “are not bullish and continue to fight rallies” in stocks after increasing their net short in the face of the S&P 500’s fourth-quarter rebound, the bank said in a recent report.
“It’s getting hard for bears to have something to point to,” said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions, who recently increased his equity exposure to take advantage of seasonal trends.
Still, many investors are wondering how much of the Fed’s dovishness has already been priced in during a rally that has seen the S&P 500 rise more than 22% this year. Next year, the economy must walk a fine line to satisfy the “Goldilocks” narrative of cooling inflation coupled with still-resilient growth.
“Into this year, the market had gotten cheaper ... sentiment was bearish. Now you go into next year, the consensus is soft landing, the multiple is much higher, the earnings estimates are higher, and I think that is going to make it a tougher market environment,” said Miskin, whose firm is modestly underweight stocks versus bonds, reflecting somewhat defensive positioning.
The S&P 500 was recently trading at 19.1 times forward earnings estimates, versus its long-term average of 15.6 times, according to LSEG Datastream. S&P 500 company earnings are expected to rise 11.4% in 2024, after a 2.6% increase in 2023, according to LSEG data.
Mike Sanders, head of fixed income at Madison Investments, said the market is “far, far more aggressive in cuts than even what the Fed let on in a very dovish statement.”
The key focus of the next six months will be whether inflation can continue to fall while the jobs market remains stable, said Sanders, who is bullish five-year Treasuries. “We need to be certain that the soft landing isn’t just a prelude for a hard landing,” he said.
Carol Schleif, chief investment officer with the BMO Family Office, will be watching the health of the consumer as "we finish out the holiday season," including how consumers "are able to absorb higher credit card bills when they come in January after the holiday selling season."
Jason Pride, chief of investment strategy and research at Glenmede, said the Fed’s latest economic projections appear to forecast a soft landing.
"However, there has never been an instance where rates have remained this high for this long without causing collateral damage for the economy," Pride said.
Stocks love the Fed again https://tmsnrt.rs/3v4nD2u
(Reporting by Lewis Krauskopf and David Randall; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Leslie Adler)
((lewis.krauskopf@thomsonreuters.com; Twitter: @LKrauskopf;))
The views and 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 Lewis Krauskopf and David Randall NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings. The Fed held interest rates steady on Wednesday and signaled in new economic projections that the historic tightening of U.S. monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024. Data from BofA Global Research showed that leveraged funds “are not bullish and continue to fight rallies” in stocks after increasing their net short in the face of the S&P 500’s fourth-quarter rebound, the bank said in a recent report.
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That compares with a rate of 3.847% reflected in futures to the Fed’s policy rate, LSEG data showed. The S&P 500 was recently trading at 19.1 times forward earnings estimates, versus its long-term average of 15.6 times, according to LSEG Datastream. Stocks love the Fed again https://tmsnrt.rs/3v4nD2u (Reporting by Lewis Krauskopf and David Randall; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Leslie Adler) ((lewis.krauskopf@thomsonreuters.com; Twitter: @LKrauskopf;)) The views and 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 Lewis Krauskopf and David Randall NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings. Now you go into next year, the consensus is soft landing, the multiple is much higher, the earnings estimates are higher, and I think that is going to make it a tougher market environment,” said Miskin, whose firm is modestly underweight stocks versus bonds, reflecting somewhat defensive positioning. Mike Sanders, head of fixed income at Madison Investments, said the market is “far, far more aggressive in cuts than even what the Fed let on in a very dovish statement.” The key focus of the next six months will be whether inflation can continue to fall while the jobs market remains stable, said Sanders, who is bullish five-year Treasuries.
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The message was more dovish than many investors were expecting. The Fed’s view is now more aligned with that of investors - though markets remain far more dovish in their outlook. S&P 500 company earnings are expected to rise 11.4% in 2024, after a 2.6% increase in 2023, according to LSEG data.
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5a586a27-6c08-4605-96b4-6baf0fd9f534
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713724.0
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2023-12-11 00:00:00 UTC
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Why I Just Bought More Alphabet Stock
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https://www.nasdaq.com/articles/why-i-just-bought-more-alphabet-stock
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has been up and down in 2023, but right now the company looks well positioned to grow in search, the cloud, and even autonomous driving.
In this video, Travis Hoium explains why he recently bought shares and where there's upside for this tech giant.
*Stock prices used were end-of-day prices of Dec. 12, 2023. The video was published on Dec. 13, 2023.
Should you invest $1,000 in Alphabet right now?
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*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and General Motors. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, and Uber Technologies. 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. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Travis Hoium explains why he recently bought shares and where there's upside for this tech giant. 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, Microsoft, Nvidia, and Uber Technologies.
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Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors.
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Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors.
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The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and General Motors.
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c572a0c4-17f3-40be-a935-1d417e7720db
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713725.0
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2023-12-11 00:00:00 UTC
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META Stock Outlook: Here’s What Could Really Move the Needle for Meta Platforms
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https://www.nasdaq.com/articles/meta-stock-outlook%3A-heres-what-could-really-move-the-needle-for-meta-platforms
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The integration of AI applications played a significant role in the Meta Platforms (NASDAQ:META) stock performance this year by helping Meta better monetize its Facebook and Instagram platforms. This, along with cost reductions and increased digital ad demand, resulted in stronger results this year. These in turn have resulted in a nearly 168% run-up in price for shares.
The company may be able to capitalize on the rise of AI to a greater extent than currently perceived. Let’s dive in, to both see what I mean, and what this factor could mean for META’s stock price performance going forward.
META Stock, AI Spoils, and the Launch of Imagine
Right now, first-movers in the generative AI space, like ChatGPT developer OpenAI, or its strategic partner, Microsoft (NASDAQ:MSFT) are considered the companies that stand to gain the most from the adoption and monetization of this technology.
I remain very bullish on MSFT stock, for the strong potential for this AI catalyst to turbocharge growth. However, that’s not to say that the proliferation of AI software applications result in a “winner take all” situation, with OpenAI and Microsoft taking all of the spoils. Other top tech companies are well-positioned to capitalize greatly on this technological breakthrough.
When I say “other top tech companies,” Google parent Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) may be what first comes to mind. Yet based on some recent news, there’s even more reason to be confident in Meta’s ability to achieve levels on AI-related growth on par with its “Magnificent Seven” peers.
I’m talking about, of course, the launch of Imagine, Meta’s standalone AI image generator. While the latest among a spate of new AI products launched by the company in recent months, the fact Meta launched it as a standalone product may suggest plans to develop a new major revenue stream.
Further Fuel for the Fire
In my last article on META stock, I argued why, despite rising concerns about a slowdown or reversal for shares, this top-performing tech name remained well-positioned to keep performing strongly in 2024.
I based my view mainly on the fact that, thanks to its current AI monetization efforts, plus the company’s continued development of its AR/VR hardware business, pointed to a strong chance of Meta Platforms meeting, or even beating, present sell-side earnings growth forecasts, which call for META’s earnings to rise 22% next year.
However, depending on how quickly the company monetizes standalone AI applications like Imagine, the chances of an earnings beat could be growing. Even if it takes several years before monetization of standalone AI applications (possibly) become a contributor to Meta’s bottom-line, a move into this area could provide further fuel for the fire when it comes to multi-year growth.
That is, these products could help Meta sustain earnings growth that’s even greater than currently anticipated. Stronger-than-expected growth would keep the stock on an upward trajectory, with shares rising both on increased earnings, as well as due to re-rating of its forward multiple to the upside.
The Takeaway
Skepticism about Meta’s ability to sustain current prices keeps growing. Take another look at recent commentary. You’ll still find plenty of analysts and pundits arguing why a big reversal lies ahead for META in 2024.
Those bearish on the stock are free to hold their opinion. That said the bull case continues to strengthen. Sure, much of the company’s operational improvements came from “one and done” events, like the above-mentioned cost cuts and digital ad market rebound.
Again, though, Meta’s AI efforts point to not only increased monetization of its existing business, but the development of a new standalone AI software business as well.
With this, count on the bull case prevailing, the bear case will fizzle out.
Ahead of this happening, consider now an opportune time to lock down a META stock position.
META stock earns an A rating in Portfolio Grader.
On the date of publication, Louis Navellier had a long position in META and MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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The post META Stock Outlook: Here’s What Could Really Move the Needle for Meta Platforms 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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Further Fuel for the Fire In my last article on META stock, I argued why, despite rising concerns about a slowdown or reversal for shares, this top-performing tech name remained well-positioned to keep performing strongly in 2024. Even if it takes several years before monetization of standalone AI applications (possibly) become a contributor to Meta’s bottom-line, a move into this area could provide further fuel for the fire when it comes to multi-year growth. Stronger-than-expected growth would keep the stock on an upward trajectory, with shares rising both on increased earnings, as well as due to re-rating of its forward multiple to the upside.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The integration of AI applications played a significant role in the Meta Platforms (NASDAQ:META) stock performance this year by helping Meta better monetize its Facebook and Instagram platforms. I based my view mainly on the fact that, thanks to its current AI monetization efforts, plus the company’s continued development of its AR/VR hardware business, pointed to a strong chance of Meta Platforms meeting, or even beating, present sell-side earnings growth forecasts, which call for META’s earnings to rise 22% next year. However, depending on how quickly the company monetizes standalone AI applications like Imagine, the chances of an earnings beat could be growing.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The integration of AI applications played a significant role in the Meta Platforms (NASDAQ:META) stock performance this year by helping Meta better monetize its Facebook and Instagram platforms. META Stock, AI Spoils, and the Launch of Imagine Right now, first-movers in the generative AI space, like ChatGPT developer OpenAI, or its strategic partner, Microsoft (NASDAQ:MSFT) are considered the companies that stand to gain the most from the adoption and monetization of this technology. I based my view mainly on the fact that, thanks to its current AI monetization efforts, plus the company’s continued development of its AR/VR hardware business, pointed to a strong chance of Meta Platforms meeting, or even beating, present sell-side earnings growth forecasts, which call for META’s earnings to rise 22% next year.
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Further Fuel for the Fire In my last article on META stock, I argued why, despite rising concerns about a slowdown or reversal for shares, this top-performing tech name remained well-positioned to keep performing strongly in 2024. I based my view mainly on the fact that, thanks to its current AI monetization efforts, plus the company’s continued development of its AR/VR hardware business, pointed to a strong chance of Meta Platforms meeting, or even beating, present sell-side earnings growth forecasts, which call for META’s earnings to rise 22% next year. That is, these products could help Meta sustain earnings growth that’s even greater than currently anticipated.
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2023-12-11 00:00:00 UTC
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5 Under-$15 Stocks Wall Street Analysts Recommend Buying
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https://www.nasdaq.com/articles/5-under-%2415-stocks-wall-street-analysts-recommend-buying
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The S&P 500 hit a new high for the year lately after the November jobs report and University of Michigan consumer survey data indicated a resilient economy and cooling inflation, triggering bets on a so-called soft-landing scenario.
This year, the S&P 500 has added 22.6%, the Nasdaq Composite has gained about 40.8%, the Dow Jones has edged up 11.9% and the Russell 2000 has jumped 10.6%. Moreover, the S&P 500 enjoyed a six-week winning streak. After a stellar rally this year, investors’ fears about overvaluation in the market is quite likely.
Hence, investors may look for some low-priced equities, for example, under $15, going into next year. These stocks are normally small-cap in nature. Decent U.S. GDP growth, a less-hawkish Fed, upbeat holiday season sales, cheaper valuation and potential M&A activities should drive small-cap stocks higher in 2024.
Against this backdrop, Eton Pharmaceuticals ETON, LegalZoom.com LZ, PLAYSTUDIOS MYPS, American Public Education APEI and Cellebrite DI Ltd. CLBT emerge as winning picks.
Why Low Price is Important
Many individuals aspire to invest their money in stocks but might lack the financial means to purchase substantial holdings in high-value companies with expensive shares.For them, low-priced stocks may appear attractive as these would enable them to buy more shares instead of just a handful of higher-priced shares for the same amount.
Low-priced stocks have high levels of liquidity, giving them an added advantage. This means that equities can be converted to cash quickly.In fact, trading in higher average daily volumes keeps the bid/ask spread tight and does not lead to extra cost for investors.
In a nutshell, the smaller-capitalization feature clubbed with cheaper prices could make an intriguing investment choice at the current level. After all, with low-priced securities, retail buyers would need less cash to join the market.
Also, securities at or below $15 can reap considerable profits as the share price increase of a dollar adds 6.67% gains to one’s portfolio. On the other hand, securities priced at $100 or above see 1% or less gain if their share price rises by $1.
Stock Picks
We highlight five stocks below that have a current price less than $15 and Current Average Broker Rating less than 2. These stocks have witnessed positive earnings estimate revisions for the upcoming quarter in the last 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has an has an upbeat VGM Score A or B.
Eton Pharmaceuticals is a commercial-stage medical device company. It is focused on the development and sale of non-invasive neuromodulation products using its proprietary Deep Transcranial Magnetic Stimulation technology for the treatment of major depressive disorder and obsessive-compulsive disorder.
The stock has seen 42.86% positive earnings estimate revisions for the upcoming quarter in the last 30 days. The current average broker recommendation for Eton Pharmaceuticals is 1.00. It has a VGM Score of B. ETON currently sports a Zacks Rank #1 and its share price is $4.32. You can see the complete list of today’s Zacks #1 Rank stocks here.
LegalZoom.com provides legal services. The company focuses on forming business, corporate changes, filings, business compliance, trademark, patent, copyright, taxes, licenses, permits, agreements and additional services.
The stock has seen 2.56% positive earnings estimate revisions for the upcoming quarter in the last 30 days and has a VGM Score of B. The current average broker recommendation is 1.74. LZ sports a Zacks Rank #1 at present and its current price is $11.27.
PLAYSTUDIOS is the developer and operator of free-to-play casual games for mobile and social platforms.
The Zacks Rank #2company has seen 12.50% positive earnings estimate revisions for the upcoming quarter in the last 30 days. PLAYSTUDIOShas a VGM Score of A and the current average broker recommendation is 1.67. The current price is $2.71.
American Public Education is an online provider of higher education, focused on serving the military and public service communities.
TheZacks Rank #2 company has seen 30.77% positive earnings estimate revisions for the upcoming quarter in the last 30 days. The stock has a VGM Score of A and the current average broker recommendation is 2.00. The current price is $9.71.
Cellebrite DI Ltd provides digital intelligence solutions for the public and private sectors.The stock has seen 400% positive earnings estimate revisions for the upcoming quarter in the last 30 days.
Zacks Rank #1CLBT has a VGM Score of B. The current average broker recommendation is 1.71 and the share price is $8.27.
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
LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report
American Public Education, Inc. (APEI) : Free Stock Analysis Report
Eton Pharmaceuticals, Inc. (ETON) : Free Stock Analysis Report
PLAYSTUDIOS, Inc. (MYPS) : Free Stock Analysis Report
Cellebrite DI Ltd. (CLBT) : 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 S&P 500 hit a new high for the year lately after the November jobs report and University of Michigan consumer survey data indicated a resilient economy and cooling inflation, triggering bets on a so-called soft-landing scenario. Decent U.S. GDP growth, a less-hawkish Fed, upbeat holiday season sales, cheaper valuation and potential M&A activities should drive small-cap stocks higher in 2024. This means that equities can be converted to cash quickly.In fact, trading in higher average daily volumes keeps the bid/ask spread tight and does not lead to extra cost for investors.
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Against this backdrop, Eton Pharmaceuticals ETON, LegalZoom.com LZ, PLAYSTUDIOS MYPS, American Public Education APEI and Cellebrite DI Ltd. CLBT emerge as winning picks. It has a VGM Score of B. ETON currently sports a Zacks Rank #1 and its share price is $4.32. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Eton Pharmaceuticals, Inc. (ETON) : Free Stock Analysis Report PLAYSTUDIOS, Inc. (MYPS) : Free Stock Analysis Report Cellebrite DI Ltd. (CLBT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Why Low Price is Important Many individuals aspire to invest their money in stocks but might lack the financial means to purchase substantial holdings in high-value companies with expensive shares.For them, low-priced stocks may appear attractive as these would enable them to buy more shares instead of just a handful of higher-priced shares for the same amount. Stock Picks We highlight five stocks below that have a current price less than $15 and Current Average Broker Rating less than 2. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Eton Pharmaceuticals, Inc. (ETON) : Free Stock Analysis Report PLAYSTUDIOS, Inc. (MYPS) : Free Stock Analysis Report Cellebrite DI Ltd. (CLBT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Hence, investors may look for some low-priced equities, for example, under $15, going into next year. It has a VGM Score of B. ETON currently sports a Zacks Rank #1 and its share price is $4.32. The current average broker recommendation is 1.71 and the share price is $8.27.
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2023-12-11 00:00:00 UTC
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3 of the Best Blue Chip Stocks to Ride the Dow Rally
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https://www.nasdaq.com/articles/3-of-the-best-blue-chip-stocks-to-ride-the-dow-rally
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Dovish signals from the Federal Reserve helped the Dow finish at its highest close in history on Dec 13. The Fed’s intention to trim interest rates multiple times next year gave investors hope that the central bank has finally begun to acknowledge a slowdown in price pressures.
And with the Dow poised to continue its winning streak in the near term, it makes all the sense to invest in sturdy blue-chip players like Intel INTC, 3M MMM and NIKE NKE as of now.
Dow Finishes Above 37,000 for the First Time
The Dow is experiencing a remarkable December. The 30-stock blue-chip index surpassed the coveted 37,000 mark on Dec 13 for the first time. The index went past a previous record high set in January 2022, and it has taken 531 trading sessions for the Dow to climb 1000 points to achieve a record close.
The Dow has now been able to bounce back from last year’s dismal performance. In 2022, the 30-stock benchmark tanked 8.8%, its biggest yearly drop since 2008, as the Fed embarked on its aggressive monetary policy to curb stubbornly high inflation.
Fed Hints at Three Rate Cuts in 2024
The Dow, however, gained traction for most of this year, especially in the last trading session after the Fed kept interest rates unchanged in its latest policy meeting and hinted at further rate cuts in 2024.
The Fed has kept interest rates steady at 5.25% to 5.5% for the third time and expects at least three rate cuts next year. The Federal Open Market Committee’s “dot plot” showed chances of further rate cuts in 2025 as price pressures have shown signs of cooling down amid a resilient economy.
Inflationary Pressure Eases
The rise in prices of indispensable goods and services was essentially in line with expectations in November, allowing the Fed to hold rates steady.
The Labor Department reported that the consumer price index (CPI) was up 0.1% month over month in November and increased 3.1% from a year ago. The annual rate, in reality, indicated a decline following a 3.2% rise in October.
The core CPI that primarily excludes the volatile energy and food segments advanced 0.3% monthly and 4% from a year ago. Both the figures came in line with estimates and were little changed from a month earlier.
3 Top Blue Chip Stocks for a Winning Portfolio
Thanks to the Fed’s dovish stance and a likely Santa Claus rally knocking at the door, the Dow is expected to continue its positive momentum. Thus, the companies listed on the index are slated to move northward soon, banking on solid balance sheets, steady cash flows, and large market capitalization.
We have, therefore, selected three blue-chip stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel is one of the world's largest semiconductor companies. The company continues to dominate the PC market, while its focus on the data center and cloud is driving its profit margins.
Intel has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 55.7% over the past 60 days. INTC’s expected earnings growth rate for next year is 97.9%.
3M operates as a diversified technology firm. 3M is not only rewarding its shareholders but also helping improve its organic growth through its effective supply chain.
3M has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 2% over the past 60 days. MMM’s expected earnings growth rate for next year is 8.8%.
NIKE is engaged in the business of designing, developing and marketing athletic footwear. Nike’s brand strength, ground-breaking products and higher sales of discretionary items are improving its profit margins.
NKE has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.8% over the past 90 days. NKE’s expected earnings growth rate for next year is 16.8%.
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
Intel Corporation (INTC) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
3M Company (MMM) : 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 Fed’s intention to trim interest rates multiple times next year gave investors hope that the central bank has finally begun to acknowledge a slowdown in price pressures. The Federal Open Market Committee’s “dot plot” showed chances of further rate cuts in 2025 as price pressures have shown signs of cooling down amid a resilient economy. 3 Top Blue Chip Stocks for a Winning Portfolio Thanks to the Fed’s dovish stance and a likely Santa Claus rally knocking at the door, the Dow is expected to continue its positive momentum.
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Fed Hints at Three Rate Cuts in 2024 The Dow, however, gained traction for most of this year, especially in the last trading session after the Fed kept interest rates unchanged in its latest policy meeting and hinted at further rate cuts in 2024. The Labor Department reported that the consumer price index (CPI) was up 0.1% month over month in November and increased 3.1% from a year ago. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Fed Hints at Three Rate Cuts in 2024 The Dow, however, gained traction for most of this year, especially in the last trading session after the Fed kept interest rates unchanged in its latest policy meeting and hinted at further rate cuts in 2024. The Fed has kept interest rates steady at 5.25% to 5.5% for the third time and expects at least three rate cuts next year. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Fed Hints at Three Rate Cuts in 2024 The Dow, however, gained traction for most of this year, especially in the last trading session after the Fed kept interest rates unchanged in its latest policy meeting and hinted at further rate cuts in 2024. The Fed has kept interest rates steady at 5.25% to 5.5% for the third time and expects at least three rate cuts next year. The Labor Department reported that the consumer price index (CPI) was up 0.1% month over month in November and increased 3.1% from a year ago.
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2023-12-11 00:00:00 UTC
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TrustCo (TRST) Surges 5.6%: Is This an Indication of Further Gains?
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https://www.nasdaq.com/articles/trustco-trst-surges-5.6%3A-is-this-an-indication-of-further-gains
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TrustCo Bank (TRST) shares soared 5.6% in the last trading session to close at $30.63. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.5% 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 bank stocks, as high funding costs faced by the industry players are expected to decline in the next year, supporting spread income and margins. Hence, the TRST stock gained.
This holding company for Trustco Bank is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $44.9 million, down 16.8% 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 TrustCo, 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 TRST 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 >>>>
TrustCo is part of the Zacks Banks - Northeast industry. Bank OZK (OZK), another stock in the same industry, closed the last trading session 6.5% higher at $47.91. OZK has returned 10.1% in the past month.
Bank OZK's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.46. Compared to the company's year-ago EPS, this represents a change of +9%. Bank OZK currently boasts a Zacks Rank of #3 (Hold).
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
TrustCo Bank Corp NY (TRST) : Free Stock Analysis Report
Bank OZK (OZK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These developments turned investor sentiment bullish on bank stocks, as high funding costs faced by the industry players are expected to decline in the next year, supporting spread income and margins. This holding company for Trustco Bank is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -40%. 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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This holding company for Trustco Bank is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -40%. Bank OZK's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.46. Click to get this free report TrustCo Bank Corp NY (TRST) : Free Stock Analysis Report Bank OZK (OZK) : 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 >>>> TrustCo is part of the Zacks Banks - Northeast industry. Click to get this free report TrustCo Bank Corp NY (TRST) : Free Stock Analysis Report Bank OZK (OZK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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With this, the interest rates remain at a 22-year high of 5.25-5.5%. Hence, the TRST stock gained. This holding company for Trustco Bank is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -40%.
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2023-12-11 00:00:00 UTC
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Fortive (FTV) Stock Gains 10.6% YTD: Will the Trend Continue?
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https://www.nasdaq.com/articles/fortive-ftv-stock-gains-10.6-ytd%3A-will-the-trend-continue
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Fortive FTV witnessed strong momentum year to date, with its shares up 10.6% in the same time frame compared with the sub-industry’s growth of 2.5%.
Fortive is a diversified industrial growth company that provides industrial technology and professional instrumentation solutions on a global basis. Going ahead, the company aims to tackle the overall cyclicality of its businesses by investing in multiyear megatrends, like automation, digitization and electrification.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #3 (Hold) stock.
The company’s performance is being driven by momentum in the Intelligent Operating Solutions and Precision Technologies business segments. Solid customer demand momentum across most geographies and increased orders for software offerings bode well.
The company plans to grow its business using a five-way strategy. It plans to expand its market position in line with secular growth trends. FTV has transitioned its software offering in line with the growing demand for artificial intelligence and machine learning. The company expects software and recurring revenues to grow 45-50% and 20%, respectively, from 2023 to 2028.
The company continues to engage in mergers and acquisitions to expand its market share. In October, the company announced that it had entered into an agreement to acquire EA Elektro-Automatik Holding GmbH. The acquisition is valued at $1.45 billion in cash, accounting for $215 million in tax benefits from Bregal Unternehmerkapital.
However, the company tempered guidance for 2023. Management now expects adjusted net earnings per share (EPS) between $3.37 and $3.40 (earlier view: $3.36-$3.42). Revenues are now anticipated to be between $6 billion and $6.1 billion (earlier view: $6.070-$6.1 billion).
Few Headwinds Persist
Apart from its solid fundamentals, the company is prone to a few risks. Despite strong demand, the company's near-term prospects might be affected by global macroeconomic weakness and inflation. High research and development costs and leveraged balance sheets are concerns.
Also, softness in the healthcare business segment coupled with uncertain economic recovery in China continues to be a major concern.
A Look at Estimates
FTV’s EPS is expected to increase 7.9% and 6.7% on a year-over-year basis to $3.40 and $3.63 in 2023 and 2024, respectively.
The company’s revenues for 2023 are projected to rise 3.8% to $6.05 billion. For 2024, the revenues are anticipated to improve 4.2% to $6.31 billion.
Stocks to Consider
Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have soared 51% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.
Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 19.8% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00. Watts Water’s long-term earnings growth rate is 7.8%.
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
Flex Ltd. (FLEX) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : 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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Fortive FTV witnessed strong momentum year to date, with its shares up 10.6% in the same time frame compared with the sub-industry’s growth of 2.5%. Going ahead, the company aims to tackle the overall cyclicality of its businesses by investing in multiyear megatrends, like automation, digitization and electrification. 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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Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company plans to grow its business using a five-way strategy. The company expects software and recurring revenues to grow 45-50% and 20%, respectively, from 2023 to 2028. Shares of PEGA have soared 51% in the past year.
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2023-12-11 00:00:00 UTC
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If You Invested $1000 in A.O. Smith a Decade Ago, This is How Much It'd Be Worth Now
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https://www.nasdaq.com/articles/if-you-invested-%241000-in-a.o.-smith-a-decade-ago-this-is-how-much-itd-be-worth-now-0
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in A.O. Smith (AOS) ten years ago? It may not have been easy to hold on to AOS for all that time, but if you did, how much would your investment be worth today?
A.O. Smith's Business In-Depth
With that in mind, let's take a look at A.O. Smith's main business drivers.
Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.
A. O. Smith reports operations under two geographic segments — North America and Rest of World. The segments are briefly discussed below:
North America (75.1% of total segmental sales generated in 2022): This segment engages in manufacturing and marketing of water heaters, boilers, water treatment products, commercial solar water heating systems, expansion tanks, swimming pool and spa heaters, and others. These products are sold primarily to the company's commercial and residential customers in North America.
Main product brands under this segment are Lochinvar, Aquasana, Bradford White, Rheem, Rinnai, Navien and Aerco.
Rest of World (24.9% of total segmental sales generated in 2022): This segment comprises operations in India, China, the Middle East and Europe markets. It primarily manufactures and markets vast products, including fully modulating non-condensing gas tankless water heater. Apart from this, the segment manufactures air purifier and water treatment products, especially in Asia.
In China, the company develops water purifier, combi boiler, gas tankless, residential & commercial heat pump, air purifier, and other products.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in A.O. Smith ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $3,029.71, or a gain of 202.97%, as of December 14, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 165.14% and gold's return of 57.17% over the same time frame.
Analysts are anticipating more upside for AOS.
Improving supply chains and robust demand for residential water heaters in North America are expected to drive A. O. Smith’s growth. Higher sales from India and improvement in China operations after the pandemic-related shutdowns are supporting the Rest of the World unit’s performance. The company’s improved earnings guidance for 2023 sparks optimism. AOS’ efforts to return value to shareholders add to its appeal. Amid these positives, shares of AOS have outperformed its industry in a year. However, weakness in the core North America unit due to lower boiler sales raises concerns. Given the general weakness in the economy and lower demand, AOS has provided a conservative projection for sales in 2023. Foreign currency woes and an anticipated increase in steel costs may weigh on AOS’ performance in 2023.
Shares have gained 6.04% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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
A. O. Smith Corporation (AOS) : 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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Improving supply chains and robust demand for residential water heaters in North America are expected to drive A. O. Smith’s growth. Higher sales from India and improvement in China operations after the pandemic-related shutdowns are supporting the Rest of the World unit’s 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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North America (75.1% of total segmental sales generated in 2022): This segment engages in manufacturing and marketing of water heaters, boilers, water treatment products, commercial solar water heating systems, expansion tanks, swimming pool and spa heaters, and others. Rest of World (24.9% of total segmental sales generated in 2022): This segment comprises operations in India, China, the Middle East and Europe markets. In China, the company develops water purifier, combi boiler, gas tankless, residential & commercial heat pump, air purifier, and other products.
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries. Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. North America (75.1% of total segmental sales generated in 2022): This segment engages in manufacturing and marketing of water heaters, boilers, water treatment products, commercial solar water heating systems, expansion tanks, swimming pool and spa heaters, and others.
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What if you'd invested in A.O. A. O. Smith reports operations under two geographic segments — North America and Rest of World. If you had invested in A.O.
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2023-12-11 00:00:00 UTC
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Here's How Much a $1000 Investment in Dycom Industries Made 10 Years Ago Would Be Worth Today
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https://www.nasdaq.com/articles/heres-how-much-a-%241000-investment-in-dycom-industries-made-10-years-ago-would-be-worth
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Dycom Industries (DY) ten years ago? It may not have been easy to hold on to DY for all that time, but if you did, how much would your investment be worth today?
Dycom Industries' Business In-Depth
With that in mind, let's take a look at Dycom Industries' main business drivers.
Based in North America, Dycom Industries Inc. is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies. Dycom provides specialty constructing services to the following customers:
Telecommunications (accounting for 89.7% of fiscal 2023 contract revenues): Dycom provides integrated services for designing aerial, underground and buried fiber optic, copper, and coaxial cable systems for telecom, cable and multiple system operators. It also equips telecom providers with engineering services for designing concept boxes and terminals for various activities. For the wireless network, the company’s service package comprises tower construction, installation of lines and antenna, constructing foundation and equipment pad, fabrication for required equipment and materials as well as testing services at the site.
Underground Facility Locating (7.2%): The company provides underground facility-locating services to a number of utility companies to avoid damage of the underground facilities like telephone, cable television, power, water, sewer and gas lines. Dycom’s expertise in these not only minimizes the damage but also controls its impact on people in the surrounding areas.
Electric and Gas Utilities (3.1%): Dycom also offers services to electric and gas utility companies for both construction and maintenance of gas pipelines and power distribution network. These services are generally provided on a stand-alone basis. However, at times the company is required to provide comprehensive services for deploying both telecom and electric infrastructure at new constructions. Dycom is also adept in installation and maintenance of natural gas transmission networks.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dycom Industries, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in December 2013 would be worth $4,126.75, or a 312.68% gain, as of December 14, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 165.14% and the price of gold went up 57.17% over the same time frame.
Analysts are anticipating more upside for DY.
Dycom’s third-quarter fiscal 2024 earnings and revenues beat the Zacks Consensus Estimate by 59.3% and 6.3%, respectively. Also, the top and the bottom lines grew year over year by 9% and 56.7%, respectively. The uptrend was driven by a boost in demand from four of Dycom’s top five customers on the back of the deployment of gigabit wireline networks, wireless/wireline converged networks and wireless networks. Given the flow of new awards from its customers, the company’s backlog grew 6.5% sequentially and 8.1% year over year to $6.613 billion. Shares of Dycom have outperformed its industry in the past six months. However, the ongoing macroeconomic uncertainties and energy price fluctuations are risks. Earnings estimates for fourth-quarter fiscal 2024 have declined by 3 cents in the past 30 days, depicting analyst's concern.
The stock has jumped 27.77% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2024; the consensus estimate has moved up as well.
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
Dycom Industries, Inc. (DY) : 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 fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks. Bottom Line Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. 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 company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies. Electric and Gas Utilities (3.1%): Dycom also offers services to electric and gas utility companies for both construction and maintenance of gas pipelines and power distribution network. Click to get this free report Dycom Industries, Inc. (DY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the wireless network, the company’s service package comprises tower construction, installation of lines and antenna, constructing foundation and equipment pad, fabrication for required equipment and materials as well as testing services at the site. Electric and Gas Utilities (3.1%): Dycom also offers services to electric and gas utility companies for both construction and maintenance of gas pipelines and power distribution network. Click to get this free report Dycom Industries, Inc. (DY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries. What if you'd invested in Dycom Industries (DY) ten years ago?
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5e73c69f-54f3-4c67-b774-48a2c52c4e93
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713732.0
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2023-12-11 00:00:00 UTC
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Here's How Much You'd Have If You Invested $1000 in Accenture a Decade Ago
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DCOMP
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https://www.nasdaq.com/articles/heres-how-much-youd-have-if-you-invested-%241000-in-accenture-a-decade-ago
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Accenture (ACN) ten years ago? It may not have been easy to hold on to ACN for all that time, but if you did, how much would your investment be worth today?
Accenture's Business In-Depth
With that in mind, let's take a look at Accenture's main business drivers.
Years of investment in digital, cloud and security strategy has helped Accenture evolve as a trusted and viable consulting services provider. It is currently one of the top consultancy firms of the world by revenues that increased 4% in fiscal 2023 with a contribution of 52% from consulting services.
The company has spent decades establishing itself as a trusted advisor, continuously adjusting its business mix to take advantage of changing market conditions. It has extensive relationships with World's leading companies. Currently, Accenture’s clients comprise 92 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Ability to anticipate large, transformative technology trends and capitalize on them through mergers and acquisitions are keys to the company’s success.
Accenture reports under five segments, which are discussed below:
Communications, Media & Technology (18% of FY23 revenues): Offers services to communications, electronics, high technology, media and entertainment industries.
Financial Services (19%): Offers services to banking, capital markets and insurance industries. The segment enables clients to address growth, cost and profitability pressures, industry consolidation and regulatory changes.
Health & Public Service (19%): Offers services to the healthcare providers, government agencies, public service organizations, educational institutions and non-profit organizations.
Products (30%): Offers services to the companies which belong to Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail industries.
Resources (14%): Offers services to the companies which belong to chemicals, forest products, energy, metals and mining, utilities and related industries. The segment helps clients manage complex change initiatives and integrate digital technologies.
On the basis of nature of work, the company derives its revenues by providing Managed Services (48% of FY23 revenues) and Consulting services (52%) . Geographically, 47% of total FY23 revenues were generated in North America, 33% in Europe and 20% from Growth Markets.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Accenture a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $4,647.55, or a gain of 364.76%, as of December 14, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 165.14% and the price of gold went up 57.17% over the same time frame.
Analysts are anticipating more upside for ACN.
Accenture shares have gained 25% in the year-to-date period. Technological prowess, contribution from acquisitions, strong growth prospects and dividend payouts make the shares attractive. The company continues to witness strong demand for application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. These trends are boosting its managed services business across the world. We expect these revenues to grow 5.4% and 5.5%, respectively, in fiscal 2024 and 2025. A disciplined acquisition strategy helps Accenture to channelize business in high-growth areas. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes the company to foreign currency exchange rate fluctuations.
The stock is up 5.57% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.
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
Accenture PLC (ACN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company has spent decades establishing itself as a trusted advisor, continuously adjusting its business mix to take advantage of changing market conditions. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. 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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Years of investment in digital, cloud and security strategy has helped Accenture evolve as a trusted and viable consulting services provider. Accenture reports under five segments, which are discussed below: Communications, Media & Technology (18% of FY23 revenues): Offers services to communications, electronics, high technology, media and entertainment industries. Health & Public Service (19%): Offers services to the healthcare providers, government agencies, public service organizations, educational institutions and non-profit organizations.
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Accenture reports under five segments, which are discussed below: Communications, Media & Technology (18% of FY23 revenues): Offers services to communications, electronics, high technology, media and entertainment industries. Products (30%): Offers services to the companies which belong to Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail industries. On the basis of nature of work, the company derives its revenues by providing Managed Services (48% of FY23 revenues) and Consulting services (52%) .
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How much a stock's price changes over time is a significant driver for most investors. It may not have been easy to hold on to ACN for all that time, but if you did, how much would your investment be worth today? On the basis of nature of work, the company derives its revenues by providing Managed Services (48% of FY23 revenues) and Consulting services (52%) .
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50ee249a-b187-43f0-b25a-5ea82d1c4ba9
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713733.0
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2023-12-11 00:00:00 UTC
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Editas (EDIT) Licenses Cas9 Tool to Vertex, Stock Up 6%
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DCOMP
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https://www.nasdaq.com/articles/editas-edit-licenses-cas9-tool-to-vertex-stock-up-6
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Editas Medicine, Inc. EDIT announced entering into a licensing agreement with Vertex Pharmaceuticals VRTX for the development of the latter’s new sickle cell disease (SCD) gene therapy, Casgevy.
Per the terms of the agreement, Vertex will receive a non-exclusive license to utilize Editas’ Cas9 gene editing technology for ex vivo gene editing medicines targeting the BCL11A gene in the fields of sickle cell disease and beta thalassemia, including Casgevy (exagamglogene autotemcel [exa-cel]).
The Cas9 gene editing tool will provide Vertex access to a broad range of genetic mutations, which makes it possible to develop innovative gene-editing medicines with a novel mechanism of action.
Financial considerations for the transaction have not been stated by the companies. However, the deal with Vertex extends Editas Medicine’s cash runway into 2026.
The company’s stock gained 5.7% in the last trading session as the investors cheered the encouraging collaboration agreement. Year to date, shares of Editas have gained 17.2% against the industry’s 19.2% decline.
Image Source: Zacks Investment Research
The company reported holding exclusive licenses to certain CRISPR patent estates for making human medicines, which include a Cas9 patent estate.
Editas is currently using its CRISPR/Cas12a and CRISPR/Cas9 genome editing systems to develop its pipeline candidates for treatments for people living with serious diseases.
The company is focused on the development of its lead candidate, EDIT 301,now known as renizgamglogene autogedtemcel (reni-cel), as a potential one-time, durable gene editing medicine to treat SCD and transfusion-dependent beta thalassemia (TDT). The candidate is currently being developed in two separate early-mid-stage studies, RUBY and EdiTHAL, to treat SCD and TDT, respectively.
Earlier this week, the company reported new positive safety and efficacy data in 17 patients treated with reni-cel in the RUBY and EdiTHAL studies (11 and six patients, respectively). It was observed that the candidate was overall well tolerated. The investigational drug demonstrated a consistent safety profile in both studies.
In terms of efficacy, it was observed that all patients treated with reni-cel in the RUBY study were free of vaso-occlusive events since the start of the treatment. In the EdiTHAL study, it was observed that all patients treated with reni-cel experienced an early and robust increase of total hemoglobin, above the transfusion independence threshold of 9 g/dl.
Editas Medicine, Inc. Price and Consensus
Editas Medicine, Inc. price-consensus-chart | Editas Medicine, Inc. Quote
Last week, the FDA achieved a historic milestone when it approved two one-shot cell-based gene therapies, namely Casgevy and Lyfgenia (lovo-cel), for treating SCD in patients aged 12 years and older.
Lyfgenia has been developed by bluebird bio BLUE, while Casgevy has been jointly developed by CRISPR Therapeutics CRSP and Vertex.
Among the two gene therapies, the approval of CRISPR Therapeutics/Vertex’s Casgevy was more impressive since it marks the first time that the FDA approved a gene therapy utilizing the Nobel prize-winning CRISPR technology. Per the FDA, the Casgevy approval marks an important “innovative advancement” in the world of gene therapies. Lyfgenia uses a lentiviral vector (gene delivery vehicle) for genetic modifications.
The FDA approvals were based on positive data from the companies’ clinical studies, wherein treatment with both therapies has helped reduce painful episodes in SCD patients.
The gene therapy drugs, however, come with a hefty price tag. Vertex and CRISPR Therapeutics disclosed that they would commercially launch Casgevy at $2.1 million. In a separate press release, bluebird bio announced that it will launch Lyfgenia at $3.1 million.
It is also important to note that treatment with either the CRISPR Therapeutics/Vertex or bluebird bio gene therapies has its fair share of side effects, which include low levels of platelets, white blood cells and fertility problems.
bluebird bio‘s Lyfgenia label includes a black box warning for hematologic malignancy (blood cancer). Patients infused with bluebird bio’s therapy are required to be monitored for this malignancy for life.
Zacks Rank
Editas currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
bluebird bio, Inc. (BLUE) : Free Stock Analysis Report
Editas Medicine, Inc. (EDIT) : Free Stock Analysis Report
CRISPR Therapeutics AG (CRSP) : 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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Editas Medicine, Inc. EDIT announced entering into a licensing agreement with Vertex Pharmaceuticals VRTX for the development of the latter’s new sickle cell disease (SCD) gene therapy, Casgevy. The Cas9 gene editing tool will provide Vertex access to a broad range of genetic mutations, which makes it possible to develop innovative gene-editing medicines with a novel mechanism of action. It is also important to note that treatment with either the CRISPR Therapeutics/Vertex or bluebird bio gene therapies has its fair share of side effects, which include low levels of platelets, white blood cells and fertility problems.
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Image Source: Zacks Investment Research The company reported holding exclusive licenses to certain CRISPR patent estates for making human medicines, which include a Cas9 patent estate. Earlier this week, the company reported new positive safety and efficacy data in 17 patients treated with reni-cel in the RUBY and EdiTHAL studies (11 and six patients, respectively). Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report bluebird bio, Inc. (BLUE) : Free Stock Analysis Report Editas Medicine, Inc. (EDIT) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Per the terms of the agreement, Vertex will receive a non-exclusive license to utilize Editas’ Cas9 gene editing technology for ex vivo gene editing medicines targeting the BCL11A gene in the fields of sickle cell disease and beta thalassemia, including Casgevy (exagamglogene autotemcel [exa-cel]). Editas Medicine, Inc. Price and Consensus Editas Medicine, Inc. price-consensus-chart | Editas Medicine, Inc. Quote Last week, the FDA achieved a historic milestone when it approved two one-shot cell-based gene therapies, namely Casgevy and Lyfgenia (lovo-cel), for treating SCD in patients aged 12 years and older. Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report bluebird bio, Inc. (BLUE) : Free Stock Analysis Report Editas Medicine, Inc. (EDIT) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Editas Medicine, Inc. EDIT announced entering into a licensing agreement with Vertex Pharmaceuticals VRTX for the development of the latter’s new sickle cell disease (SCD) gene therapy, Casgevy. Editas Medicine, Inc. Price and Consensus Editas Medicine, Inc. price-consensus-chart | Editas Medicine, Inc. Quote Last week, the FDA achieved a historic milestone when it approved two one-shot cell-based gene therapies, namely Casgevy and Lyfgenia (lovo-cel), for treating SCD in patients aged 12 years and older. Lyfgenia has been developed by bluebird bio BLUE, while Casgevy has been jointly developed by CRISPR Therapeutics CRSP and Vertex.
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e678f2f1-a348-4efd-b8f7-bc085ad7bb12
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713734.0
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2023-12-11 00:00:00 UTC
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Are Options Traders Betting on a Big Move in WesBanco (WSBC) Stock?
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DCOMP
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-wesbanco-wsbc-stock
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nan
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Investors in WesBanco, Inc. WSBC need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 16, 2024 $12.50 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for WesBanco shares, but what is the fundamental picture for the company? Currently, WesBanco is a Zacks Rank #4 (Sell) in the Banks - Southeast Parts industry that ranks in the Top 23% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 60 cents per share to 57 cents in that period.
Given the way analysts feel about WesBanco right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
WesBanco, Inc. (WSBC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> 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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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report WesBanco, Inc. (WSBC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about WesBanco right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. Looking to Trade Options?
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9e551dfc-2989-40f9-87c2-a68b3678dd65
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713735.0
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2023-12-11 00:00:00 UTC
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After a Tough 2023, Solar ETFs Likely to Make a Comeback in 2024
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DCOMP
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https://www.nasdaq.com/articles/after-a-tough-2023-solar-etfs-likely-to-make-a-comeback-in-2024
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In 2023, solar stocks met with several challenges. Firstly, the Federal Reserve's decision to hike interest rates to combat inflation resulted in higher borrowing costs for solar companies. This made it more expensive for them to finance their projects, reducing profitability and investor confidence.
Secondly, consumers were cautious about investing in solar installations, partly because of the uncertain economic environment caused by the interest rate hikes. The double whammy contributed to a tough year for solar stocks.
Plus, a specific policy change that aggravated the issues facing the solar industry was a reduction in solar energy incentives in California. California, a major hub for solar energy adoption, decided to decrease the subsidies provided to rooftop solar panel owners who fed excess power back into the grid. This change lowered the financial incentives for residential solar installations in the state, impacting the overall health of the solar industry in the United States.
In 2023, the performance of solar stocks has been quite dismal. Key benchmarks in the solar and wind energy sector, such as the Invesco Solar ETF TAN and Global X Solar ETF RAYS, have experienced significant declines. TAN is down 36% year-to-date, while RAYS has lost about 43% during the same period (as of Dec 8, 2023).
Wall Street Sees Hope in Solar Industry for 2024
Despite the challenging year in 2023, Wall Street analysts are cautiously optimistic about the clean energy industry's prospects in 2024. For example, Morgan Stanley analysts have taken a positive stance by upgrading First Solar FSLR to an "Overweight" rating and increasing its price target. They believe that First Solar offers an attractive risk-reward profile, mainly due to its solid backlog and position in the thin-film module manufacturing sector, as quoted on Yahoo Finance.
Citi analysts too have identified specific investment opportunities in the solar sector. Citi's recommendation is based on factors like the growing importance of emission reduction goals and the likelihood of higher solar equipment production.
Chances of Lower Interest Rates in United States in 2024
The market's expectation of lower U.S. interest rates should boost solar stocks in 2024. As inflation eases and the labor market stabilizes, investors anticipate that the Federal Reserve may start cutting interest rates. If this takes place, it could result in improved valuations for clean energy companies.
Signs of Cost Deflation in Solar Industry
There are signs of cost deflation in recent times. The prices of critical components, including solar panels, battery storage systems, and inverters, have started to decrease. This trend is a positive development for solar developers, as it potentially lowers project costs and increase profitability.
US-based solar equipment manufacturers are poised to increase their market share in the global solar industry. Especially, the Inflation Reduction Act (IRA), which incentivizes the use of solar power by supporting local manufacturing, is a plus for the space (read: 5 ETFs Poised to Benefit from the Inflation Reduction Act).
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 >>
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
First Solar, Inc. (FSLR) : Free Stock Analysis Report
Invesco Solar ETF (TAN): ETF Research Reports
Global X Solar ETF (RAYS): 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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Firstly, the Federal Reserve's decision to hike interest rates to combat inflation resulted in higher borrowing costs for solar companies. For example, Morgan Stanley analysts have taken a positive stance by upgrading First Solar FSLR to an "Overweight" rating and increasing its price target. They believe that First Solar offers an attractive risk-reward profile, mainly due to its solid backlog and position in the thin-film module manufacturing sector, as quoted on Yahoo Finance.
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Firstly, the Federal Reserve's decision to hike interest rates to combat inflation resulted in higher borrowing costs for solar companies. Wall Street Sees Hope in Solar Industry for 2024 Despite the challenging year in 2023, Wall Street analysts are cautiously optimistic about the clean energy industry's prospects in 2024. Click to get this free report First Solar, Inc. (FSLR) : Free Stock Analysis Report Invesco Solar ETF (TAN): ETF Research Reports Global X Solar ETF (RAYS): ETF Research Reports To read this article on Zacks.com click here.
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Plus, a specific policy change that aggravated the issues facing the solar industry was a reduction in solar energy incentives in California. Key benchmarks in the solar and wind energy sector, such as the Invesco Solar ETF TAN and Global X Solar ETF RAYS, have experienced significant declines. Click to get this free report First Solar, Inc. (FSLR) : Free Stock Analysis Report Invesco Solar ETF (TAN): ETF Research Reports Global X Solar ETF (RAYS): ETF Research Reports To read this article on Zacks.com click here.
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Chances of Lower Interest Rates in United States in 2024 The market's expectation of lower U.S. interest rates should boost solar stocks in 2024. This trend is a positive development for solar developers, as it potentially lowers project costs and increase profitability. Get it free >> Want the latest recommendations from Zacks Investment Research?
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8f0de9ef-7686-443b-90cd-3c7c177d4c32
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713736.0
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2023-12-11 00:00:00 UTC
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Boston Scientific (BSX) Hits 52-Week High: What's Aiding It?
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https://www.nasdaq.com/articles/boston-scientific-bsx-hits-52-week-high%3A-whats-aiding-it
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nan
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Shares of Boston Scientific Corporation BSX scaled a new 52-week high of $56.55 on Dec 13, before closing the session marginally lower at $56.48.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 21.9% against a 4.1% decline of the industry. The S&P 500 has witnessed 19.7% growth in the said time frame.
Over the past five years, the company registered earnings growth of 5.9% compared with the industry’s 7.4% rise. The company’s long-term expected growth rate of 12.5% compares with the industry’s growth projection of 11.8%. Boston Scientific’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 4.3%.
Boston Scientific is witnessing an upward trend in its stock price, prompted by its impressive market share gain in the MedSurg segment. The optimism led by a solid third-quarter 2023 performance and continued geographical expansion are expected to contribute further. However, a competitive landscape and exposure to currency movement continue to concern the company.
Image Source: Zacks Investment Research
Let’s delve deeper.
Key Growth Drivers
Geographic Expansion: Boston Scientific successfully continues with its expansion of operations across different geographies outside the United States, raising investors’ optimism. Within its international regions, the company is putting additional efforts to expand its foothold in emerging markets, which are holding strong growth potentials based on their economic conditions, healthcare sectors, and global capabilities.
In the third quarter of 2023, despite the ongoing weaknesses in Russia, emerging markets registered sturdy growth, primarily banking on strong performance in China. During this period, emerging markets net sales grew 19% on an operational basis, year over year.
MedSurg Market Share Gain Impressive: Investors are upbeat about Boston Scientific’s consistent fast recovery within its MedSurg segment following the pandemic-led mayhem. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal and pulmonary treatment options.
In third-quarter 2023, the company reported strong organic growth contributions from single-use imaging and AXIOS technologies. Endoscopy demonstrated notable strength in the United States, Latin America and Asia-Pacific, with new product momentum and healthy procedure demand during the third quarter.
Strong Q3 Results: Boston Scientific’s robust third-quarter 2023 results raise optimism. The company registered a strong year-over-year improvement in organic sales, indicating a solid rebound in the legacy business even amid several macroeconomic issues. Organic and operational revenues at its core business segments and geographies were also up in the reported quarter.
Downsides
Exposure to Currency Movement: With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other important MedTech players too.
Competitive Landscape: The presence of a large number of players has made the medical devices market highly competitive. The company participates in several markets, including Cardiovascular, Cardiac Rhythm Management, Endosurgery and Neuromodulation, where it faces competition from large and well-capitalized companies, apart from several other smaller companies.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and DexCom, Inc. DXCM.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 49.1% compared with the industry’s 7.8% rise in the past year.
HealthEquity, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 27.5%. HQY’s earnings surpassed estimates in all the trailing four quarters, with an average of 16.5%.
HealthEquity has gained 9.4% against the industry’s 9.1% decline over the past year.
DexCom, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, with an average of 36.4%.
DexCom’s shares have gained 5.2% against the industry’s 2.5% decline in the past year.
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
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : 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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Within its international regions, the company is putting additional efforts to expand its foothold in emerging markets, which are holding strong growth potentials based on their economic conditions, healthcare sectors, and global capabilities. Endoscopy demonstrated notable strength in the United States, Latin America and Asia-Pacific, with new product momentum and healthy procedure demand during the third quarter. 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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Key Growth Drivers Geographic Expansion: Boston Scientific successfully continues with its expansion of operations across different geographies outside the United States, raising investors’ optimism. HealthEquity, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 27.5%. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Over the past year, this Zacks Rank #3 (Hold) stock has gained 21.9% against a 4.1% decline of the industry. Boston Scientific’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 4.3%. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Over the past five years, the company registered earnings growth of 5.9% compared with the industry’s 7.4% rise. The company’s long-term expected growth rate of 12.5% compares with the industry’s growth projection of 11.8%. In third-quarter 2023, the company reported strong organic growth contributions from single-use imaging and AXIOS technologies.
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c087e6e2-6c35-4d9b-89be-f76e4f7c88ae
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713737.0
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2023-12-11 00:00:00 UTC
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CrowdStrike (CRWD) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/crowdstrike-crwd-hits-fresh-high%3A-is-there-still-room-to-run-0
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nan
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nan
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Have you been paying attention to shares of CrowdStrike Holdings (CRWD)? Shares have been on the move with the stock up 23.4% over the past month. The stock hit a new 52-week high of $253.3 in the previous session. CrowdStrike Holdings has gained 139.4% since the start of the year compared to the 49.9% move for the Zacks Computer and Technology sector and the 64.9% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 28, 2023, CrowdStrike reported EPS of $0.82 versus consensus estimate of $0.74 while it beat the consensus revenue estimate by 1.13%.
For the current fiscal year, CrowdStrike is expected to post earnings of $2.93 per share on $3.05 billion in revenues. This represents a 90.26% change in EPS on a 36.05% change in revenues. For the next fiscal year, the company is expected to earn $3.63 per share on $3.91 billion in revenues. This represents a year-over-year change of 23.85% and 28.16%, respectively.
Valuation Metrics
CrowdStrike may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
CrowdStrike has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 86X current fiscal year EPS estimates, which is a premium to the peer industry average of 39.9X. On a trailing cash flow basis, the stock currently trades at 558.1X versus its peer group's average of 17.8X. Additionally, the stock has a PEG ratio of 2.38. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CrowdStrike currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CrowdStrike fits the bill. Thus, it seems as though CrowdStrike shares could still be poised for more gains ahead.
How Does CRWD Stack Up to the Competition?
Shares of CRWD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Datadog, Inc. (DDOG). DDOG has a Zacks Rank of # 2 (Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Datadog, Inc. beat our consensus estimate by 32.35%, and for the current fiscal year, DDOG is expected to post earnings of $1.71 per share on revenue of $2.11 billion.
Shares of Datadog, Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 76.73X and a P/CF of 1187.48X.
The Internet - Software industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CRWD and DDOG, even beyond their own solid fundamental situation.
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
CrowdStrike (CRWD) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fortunately, CrowdStrike currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. Datadog, Inc. beat our consensus estimate by 32.35%, and for the current fiscal year, DDOG is expected to post earnings of $1.71 per share on revenue of $2.11 billion. 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 its last earnings report on November 28, 2023, CrowdStrike reported EPS of $0.82 versus consensus estimate of $0.74 while it beat the consensus revenue estimate by 1.13%. In terms of its value breakdown, the stock currently trades at 86X current fiscal year EPS estimates, which is a premium to the peer industry average of 39.9X. Click to get this free report CrowdStrike (CRWD) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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CrowdStrike has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CrowdStrike fits the bill. Click to get this free report CrowdStrike (CRWD) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its last earnings report on November 28, 2023, CrowdStrike reported EPS of $0.82 versus consensus estimate of $0.74 while it beat the consensus revenue estimate by 1.13%. For the next fiscal year, the company is expected to earn $3.63 per share on $3.91 billion in revenues. One industry peer that looks good is Datadog, Inc. (DDOG).
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37352065-0fb6-4891-aa18-7ed629cd49e1
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713738.0
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2023-12-11 00:00:00 UTC
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Peoples Bancorp Inc. (PEBO) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/peoples-bancorp-inc.-pebo-hits-fresh-high%3A-is-there-still-room-to-run
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nan
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nan
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Have you been paying attention to shares of Peoples Bancorp (PEBO)? Shares have been on the move with the stock up 5.7% over the past month. The stock hit a new 52-week high of $31.96 in the previous session. Peoples Bancorp has gained 13.1% since the start of the year compared to the 15.3% move for the Zacks Finance sector and the -6.4% return for the Zacks Banks - Midwest industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 24, 2023, Peoples Bancorp reported EPS of $1.06 versus consensus estimate of $0.9 while it beat the consensus revenue estimate by 5.37%.
For the current fiscal year, Peoples Bancorp is expected to post earnings of $3.44 per share on $431.85 million in revenues. This represents a -7.01% change in EPS on a 29.34% change in revenues. For the next fiscal year, the company is expected to earn $3.69 per share on $464.25 million in revenues. This represents a year-over-year change of 7.1% and 7.5%, respectively.
Valuation Metrics
Peoples Bancorp may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Peoples Bancorp has a Value Score of A. The stock's Growth and Momentum Scores are D and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.2X. On a trailing cash flow basis, the stock currently trades at 7.4X versus its peer group's average of 7.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Peoples Bancorp currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Peoples Bancorp passes the test. Thus, it seems as though Peoples Bancorp shares could have potential in the weeks and months to come.
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
Peoples Bancorp Inc. (PEBO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the current fiscal year, Peoples Bancorp is expected to post earnings of $3.44 per share on $431.85 million in revenues. A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself. The 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 its last earnings report on October 24, 2023, Peoples Bancorp reported EPS of $1.06 versus consensus estimate of $0.9 while it beat the consensus revenue estimate by 5.37%. In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.2X. Click to get this free report Peoples Bancorp Inc. (PEBO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Peoples Bancorp passes the test.
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In its last earnings report on October 24, 2023, Peoples Bancorp reported EPS of $1.06 versus consensus estimate of $0.9 while it beat the consensus revenue estimate by 5.37%. For the next fiscal year, the company is expected to earn $3.69 per share on $464.25 million in revenues. Peoples Bancorp has a Value Score of A.
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2a62452d-4fc0-4f0c-8a8a-e713b525a754
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713739.0
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2023-12-11 00:00:00 UTC
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Here is What to Know Beyond Why Hubbell Inc (HUBB) is a Trending Stock
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DCOMP
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-hubbell-inc-hubb-is-a-trending-stock-1
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nan
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nan
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Hubbell (HUBB) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this electrical products manufacturer have returned +8.8%, compared to the Zacks S&P 500 composite's +6.9% change. During this period, the Zacks Manufacturing - Electrical Utilities industry, which Hubbell falls in, has gained 8.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Hubbell is expected to post earnings of $3.59 per share, indicating a change of +38.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $15.16 points to a change of +42.8% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $16.40 indicates a change of +8.1% from what Hubbell is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Hubbell is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Hubbell, the consensus sales estimate of $1.31 billion for the current quarter points to a year-over-year change of +7.6%. The $5.34 billion and $5.76 billion estimates for the current and next fiscal years indicate changes of +7.9% and +7.9%, respectively.
Last Reported Results and Surprise History
Hubbell reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $3.95 for the same period compares with $3.08 a year ago.
Compared to the Zacks Consensus Estimate of $1.42 billion, the reported revenues represent a surprise of -3.36%. The EPS surprise was -2.95%.
Over the last four quarters, Hubbell surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Hubbell is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Hubbell. However, its Zacks Rank #3 does suggest that it may perform in line with 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
Hubbell Inc (HUBB) : 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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We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. 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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For the next fiscal year, the consensus earnings estimate of $16.40 indicates a change of +8.1% from what Hubbell is expected to report a year ago. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Hubbell is rated Zacks Rank #3 (Hold). Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. For the next fiscal year, the consensus earnings estimate of $16.40 indicates a change of +8.1% from what Hubbell is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Hubbell is rated Zacks Rank #3 (Hold).
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0abeb7d7-9c5c-42f0-957e-5ae4ae151b62
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713740.0
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2023-12-11 00:00:00 UTC
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Here is What to Know Beyond Why 3M Company (MMM) is a Trending Stock
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DCOMP
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-3m-company-mmm-is-a-trending-stock-2
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nan
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nan
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3M (MMM) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of Post-it notes, industrial coatings and ceramics have returned +7.6%, compared to the Zacks S&P 500 composite's +6.9% change. During this period, the Zacks Diversified Operations industry, which 3M falls in, has gained 10.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, 3M is expected to post earnings of $2.32 per share, indicating a change of +1.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $9.12 points to a change of -9.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $9.92 indicates a change of +8.8% from what 3M is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, 3M is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of 3M, the consensus sales estimate of $7.68 billion for the current quarter points to a year-over-year change of -5%. The $31.76 billion and $32.39 billion estimates for the current and next fiscal years indicate changes of -7.2% and +2%, respectively.
Last Reported Results and Surprise History
3M reported revenues of $8.31 billion in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $2.68 for the same period compares with $2.69 a year ago.
Compared to the Zacks Consensus Estimate of $7.95 billion, the reported revenues represent a surprise of +4.52%. The EPS surprise was +14.53%.
Over the last four quarters, 3M surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
3M is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about 3M. However, its Zacks Rank #2 does suggest that it may 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.
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3M Company (MMM) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the past month, shares of this maker of Post-it notes, industrial coatings and ceramics have returned +7.6%, compared to the Zacks S&P 500 composite's +6.9% change. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. 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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A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, 3M is rated Zacks Rank #2 (Buy). Compared to the Zacks Consensus Estimate of $7.95 billion, the reported revenues represent a surprise of +4.52%.
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2023-12-11 00:00:00 UTC
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Here is What to Know Beyond Why Royal Caribbean Cruises Ltd. (RCL) is a Trending Stock
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-royal-caribbean-cruises-ltd.-rcl-is-a-trending-stock
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Royal Caribbean (RCL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this cruise operator have returned +18% over the past month versus the Zacks S&P 500 composite's +6.9% change. The Zacks Leisure and Recreation Services industry, to which Royal Caribbean belongs, has gained 12% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Royal Caribbean is expected to post earnings of $1.11 per share for the current quarter, representing a year-over-year change of +199.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The consensus earnings estimate of $6.59 for the current fiscal year indicates a year-over-year change of +187.9%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $9.05 indicates a change of +37.4% from what Royal Caribbean is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Royal Caribbean.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Royal Caribbean, the consensus sales estimate for the current quarter of $3.37 billion indicates a year-over-year change of +29.6%. For the current and next fiscal years, $13.94 billion and $15.85 billion estimates indicate +57.7% and +13.7% changes, respectively.
Last Reported Results and Surprise History
Royal Caribbean reported revenues of $4.16 billion in the last reported quarter, representing a year-over-year change of +39%. EPS of $3.85 for the same period compares with $0.26 a year ago.
Compared to the Zacks Consensus Estimate of $4.06 billion, the reported revenues represent a surprise of +2.4%. The EPS surprise was +12.24%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Royal Caribbean is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Royal Caribbean. However, its Zacks Rank #1 does suggest that it may 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
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Royal Caribbean. 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 chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Royal Caribbean. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Royal Caribbean. Compared to the Zacks Consensus Estimate of $4.06 billion, the reported revenues represent a surprise of +2.4%.
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2023-12-11 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Apple
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-1
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For Immediate Release
Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL.
Apple Stock Nears All-Time High: Is the Tech Giant Too Extended?
Apple stock has been in ultrasonic mode this year. After a series of higher highs and higher lows along with fresh 52-week highs, Apple shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. The bullish theme around artificial intelligence certainly hasn't hurt either.
Following a greater than 50% surge in 2023, are Apple shares now too far extended, or is the rally just getting underway?
Buying at New All-Time Highs
Purchasing stocks at new all-time highs following a bear market has proven to be successful in the past. It's the market's way of telling us that higher prices are on the horizon. And when we analyze the state of the economy with a sustained deceleration in inflation, better-than-expected corporate earnings, and a resilient U.S. consumer, there's plenty of reasons to suspect that the momentum can continue.
Despite the technical progress this year, most professional fund managers (along with individual investors) were underweight stocks, missing the majority of the rally. The lack of respect for the market's recovery aided the bullish move off the 2022 bear market lows.
It's normal to expect that the rally won't continue, but history tells us otherwise. The S&P 500 is less than 4% away from its own all-time high set back in January of 2022. The previous 14 times that the blue-chip index went at least a full year without a new high and then finally made one, a year later it was higher 13/14 times and up nearly 15% on average.
The Business of Apple
Apple is engaged in the designing, manufacturing, and marketing of mobile communication and media devices, personal computers, and portable digital music players. Headquartered in Cupertino, California, Apple's well-known products include the iPhone, iPad, Mac, and Apple TV, along with its software applications like iOS and the MAC OS X operating systems.
In addition to the sales generated from the devices mentioned above, Apple's business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Apple currently has more than 935 million paid subscribers across the Services portfolio.
If that all wasn't enough, Apple dominates the Wearables market, as consumers continue to adopt products like the AirPods and Apple Watch. Apple has made significant headway in this area, strengthening its presence in the personal health monitoring space. Other services include Apple News+, Apple Card, and Apple Arcade.
An increased focus on autonomous vehicles and augmented reality technologies presents a growth opportunity over the long-term. Apple is expected to ramp up its efforts with new offerings, and has clearly benefited from the AI theme this year.
Apple Stock – The Zacks Rundown
Apple is part of the Zacks Computer – Mini Computers industry, which currently ranks in the top 36% of all Zacks Ranked Industries. Because it is ranked in the top half of all industries, we expect this group to outperform the market over the next 3 to 6 months, just as it has year-to-date with a 50% return.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Apple has exceeded earnings estimates in three of the past four quarters. The company most recently delivered fiscal fourth-quarter earnings back in November of $1.46/share, beating the $1.39 Zacks Consensus Estimate by 5.04%. Apple has delivered a trailing four-quarter average earnings surprise of 3.47%.
AAPL is currently a Zacks Rank #3 (Hold) stock. The tech giant is projected to see earnings grow 7% in the current fiscal year on revenues of $393.4 billion. Given Apple's history of beating estimates, it wouldn't be too surprising if these figures ended up being a bit light.
What to Do Now
Buying stocks when they make new highs has proven to be profitable throughout history. A stock eclipsing a previous high should be viewed as a sign of strength. Apple appears to be breaking out of a multi-month consolidation pattern, bolstering the bullish case.
The market is telling us to expect the unexpected. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. Make sure to keep an eye on this tech behemoth as the stock inches closer to a new all-time high.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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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Apple Inc. (AAPL) : 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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And when we analyze the state of the economy with a sustained deceleration in inflation, better-than-expected corporate earnings, and a resilient U.S. consumer, there's plenty of reasons to suspect that the momentum can continue. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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After a series of higher highs and higher lows along with fresh 52-week highs, Apple shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. Apple Stock – The Zacks Rundown Apple is part of the Zacks Computer – Mini Computers industry, which currently ranks in the top 36% of all Zacks Ranked Industries. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs.
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In addition to the sales generated from the devices mentioned above, Apple's business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Other services include Apple News+, Apple Card, and Apple Arcade. Apple Stock – The Zacks Rundown Apple is part of the Zacks Computer – Mini Computers industry, which currently ranks in the top 36% of all Zacks Ranked Industries.
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AAPL is currently a Zacks Rank #3 (Hold) stock. Why Haven't You Looked at Zacks' Top Stocks? Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities.
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2023-12-11 00:00:00 UTC
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3 Things You Need to Know If You Buy Tesla Today
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https://www.nasdaq.com/articles/3-things-you-need-to-know-if-you-buy-tesla-today
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With a trailing-10-year return of 2,420%, Tesla (NASDAQ: TSLA) has been an outstanding stock for investors to own. A relatively small $1,000 investment in December 2013 would be worth a whopping $25,000 today.
Right now, the stock sits 42% below its all-time high in November 2021. Opportunity-seeking investors might want to pull the trigger and buy the dip. But if you're thinking of buying Tesla shares today, first take the time to understand the following important factors about this business.
Industry landscape
Tesla's huge lead in the electric vehicle (EV) industry has propelled it to an enviable position. Its cars represent half of all new EVs sold in the United States.
Growth over the past decade has been spectacular. Revenue of $23 billion in the 2023 third quarter (ended Sept. 30) was 5,236% higher than in the same period of 2013. And this year, Tesla is on pace to produce 1.8 million vehicles. For comparison's sake, the business delivered 22,000 cars in 2013.
However, outsize success doesn't go unnoticed, and capitalism invites competition. There are now numerous car manufacturers in the EV market, which will surely make it more difficult for Tesla to post the same level of rapid growth over the next 10 years.
This year, the main story in the industry has been price cuts. Even the almighty Tesla hasn't been able to escape this pressure. In the process, the company's margins have decreased.
Tesla's premium brand status and robust manufacturing capabilities have helped the company generate positive GAAP net income since 2020, an achievement that smaller rivals only dream of. This advantage gives Tesla more wiggle room to engage in ongoing price wars while maintaining profitability.
Macro headwinds
Tesla trades at a price-to-earnings (P/E) ratio of 76.7. That's extremely expensive compared with legacy auto stocks such as Ford and General Motors. It even represents a sizable premium to luxury-car brand Ferrari.
Investors have labeled Tesla as a tech company based on its disruptive and innovative potential. But the macro backdrop has revealed that there are some things this business just isn't immune to.
Just look at rising interest rates. Since the Great Recession, interest rates had until recently been at historically low levels, spurring demand from borrowers for things like auto loans. Now that interest rates are elevated, Tesla was able to post only single-digit revenue growth in the latest quarter.
"If the macroeconomic conditions are stormy, even the best ship is still going to have tough times," CEO Elon Musk said on the Q3 2023 earnings call.
Musk's ambitions
A decade from now, Tesla could look like a totally different company from what we're accustomed to today. Musk is fully focused on developing autonomous driving capabilities so that one day, Tesla can launch a robotaxi service. The hope is that people won't want to own cars anymore, since using this service would be incredibly cost-effective for a consumer looking to get from one place to another.
Ark Invest, headed by Cathie Wood, is typically extremely bullish with its forecasts. The company, which owns a significant chunk of Tesla stock, believes that by 2029, the global robotaxi market will generate annual sales of $9 trillion, from basically nothing today. Tesla is positioning itself to be at the forefront of this opportunity.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There are now numerous car manufacturers in the EV market, which will surely make it more difficult for Tesla to post the same level of rapid growth over the next 10 years. Tesla's premium brand status and robust manufacturing capabilities have helped the company generate positive GAAP net income since 2020, an achievement that smaller rivals only dream of. The company, which owns a significant chunk of Tesla stock, believes that by 2029, the global robotaxi market will generate annual sales of $9 trillion, from basically nothing today.
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Tesla's premium brand status and robust manufacturing capabilities have helped the company generate positive GAAP net income since 2020, an achievement that smaller rivals only dream of. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors.
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There are now numerous car manufacturers in the EV market, which will surely make it more difficult for Tesla to post the same level of rapid growth over the next 10 years. The company, which owns a significant chunk of Tesla stock, believes that by 2029, the global robotaxi market will generate annual sales of $9 trillion, from basically nothing today. Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market.
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With a trailing-10-year return of 2,420%, Tesla (NASDAQ: TSLA) has been an outstanding stock for investors to own. But the macro backdrop has revealed that there are some things this business just isn't immune to. Now that interest rates are elevated, Tesla was able to post only single-digit revenue growth in the latest quarter.
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2023-12-11 00:00:00 UTC
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Technology Sector Update for 12/14/2023: ADBE, DDD, HIMX, XLK, XSD
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https://www.nasdaq.com/articles/technology-sector-update-for-12-14-2023%3A-adbe-ddd-himx-xlk-xsd
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Technology stocks were advancing pre-bell Thursday, with the Technology Select Sector SPDR Fund (XLK) up 0.3% and the SPDR S&P Semiconductor ETF (XSD) 0.9% higher recently.
Adobe Systems (ADBE) was falling more than 4% after saying it expects fiscal 2024 revenue to range between $21.30 billion and $21.50 billion. Analysts surveyed by Capital IQ expect $21.73 billion.
3D Systems (DDD) named Jeffrey Creech as chief financial officer. 3D Systems was more than 2% higher in recent premarket activity.
Himax Technologies (HIMX) was up more than 1% after saying it has teamed up with automotive lighting manufacturer Ta Yih Industrial to offer the jointly developed LED Edge-Lit Type automotive lighting application.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Technology stocks were advancing pre-bell Thursday, with the Technology Select Sector SPDR Fund (XLK) up 0.3% and the SPDR S&P Semiconductor ETF (XSD) 0.9% higher recently. 3D Systems (DDD) named Jeffrey Creech as chief financial officer. Himax Technologies (HIMX) was up more than 1% after saying it has teamed up with automotive lighting manufacturer Ta Yih Industrial to offer the jointly developed LED Edge-Lit Type automotive lighting application.
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Technology stocks were advancing pre-bell Thursday, with the Technology Select Sector SPDR Fund (XLK) up 0.3% and the SPDR S&P Semiconductor ETF (XSD) 0.9% higher recently. Analysts surveyed by Capital IQ expect $21.73 billion. Himax Technologies (HIMX) was up more than 1% after saying it has teamed up with automotive lighting manufacturer Ta Yih Industrial to offer the jointly developed LED Edge-Lit Type automotive lighting application.
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Technology stocks were advancing pre-bell Thursday, with the Technology Select Sector SPDR Fund (XLK) up 0.3% and the SPDR S&P Semiconductor ETF (XSD) 0.9% higher recently. Adobe Systems (ADBE) was falling more than 4% after saying it expects fiscal 2024 revenue to range between $21.30 billion and $21.50 billion. Himax Technologies (HIMX) was up more than 1% after saying it has teamed up with automotive lighting manufacturer Ta Yih Industrial to offer the jointly developed LED Edge-Lit Type automotive lighting application.
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Technology stocks were advancing pre-bell Thursday, with the Technology Select Sector SPDR Fund (XLK) up 0.3% and the SPDR S&P Semiconductor ETF (XSD) 0.9% higher recently. Adobe Systems (ADBE) was falling more than 4% after saying it expects fiscal 2024 revenue to range between $21.30 billion and $21.50 billion. Analysts surveyed by Capital IQ expect $21.73 billion.
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2023-12-11 00:00:00 UTC
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US STOCKS-Wall St set for higher open after Fed hints at rate cuts
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-higher-open-after-fed-hints-at-rate-cuts
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By Shristi Achar A and Johann M Cherian
Dec 14 (Reuters) - Wall Street's main indexes were on course to open higher on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view".
The Fed has raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024.
The dovish pivot in the central bank's statement triggered a rally in equities on Wednesday and sent the Dow Jones Industrial Average Index .DJI to a record closing high.
"Investors are feeling pretty bullish in terms of having three rate cuts penciled in for next year, which is a little bit more than the bears were expecting," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
Money markets now see an 83.3% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while almost fully pricing in another cut in May, according to CME Group's FedWatch tool.
Treasury yields also fell to multi-month lows after Wednesday's events, with the yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9656%.US/
Investors also parsed retail sales data for November, which rose 0.3% on a monthly basis compared with estimates of a 0.1% fall, according to economists polled by Reuters.
Another report showed weekly jobless claims stood at 202,000 for the week ended Dec. 9, lower than the estimated 220,000.
"A lot of the hopes of a soft landing are pinned on the consumer staying strong, and the economy staying out of recession. As long as you see a strong consumer, that's good news for the soft landing camp," Zaccarelli said.
At 8:43 a.m. ET, Dow e-minis 1YMcv1 were up 143 points, or 0.39%, S&P 500 e-minis EScv1 were up 20 points, or 0.42%, and Nasdaq 100 e-minis NQcv1 were up 62 points, or 0.37%.
Among individual movers, AdobeADBE.O shed 3.9% after the Photoshop maker forecast annual and quarterly revenue below estimates.
ModernaMRNA.Oadvanced 11.0% after an experimental messenger RNA cancer vaccine it co-developed with Merck MRK.N cut the chance of recurrence or death from melanoma by half after three years, when paired with Merck's Keytruda drug.
Occidental PetroleumOXY.N added 2.4% after Warren Buffett's Berkshire Hathaway BRKa.N acquired nearly 10.5 million shares of the oil giant for about $588.7 million.
Foot Locker FL.N rose 4.0% after Piper Sandler upgraded the sportswear retailer to "overweight" from "neutral".
Stocks love the Fed again https://tmsnrt.rs/3v4nD2u
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes were on course to open higher on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year. The dovish pivot in the central bank's statement triggered a rally in equities on Wednesday and sent the Dow Jones Industrial Average Index .DJI to a record closing high. "Investors are feeling pretty bullish in terms of having three rate cuts penciled in for next year, which is a little bit more than the bears were expecting," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
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The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view". ET, Dow e-minis 1YMcv1 were up 143 points, or 0.39%, S&P 500 e-minis EScv1 were up 20 points, or 0.42%, and Nasdaq 100 e-minis NQcv1 were up 62 points, or 0.37%. Stocks love the Fed again https://tmsnrt.rs/3v4nD2u (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes were on course to open higher on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view". Treasury yields also fell to multi-month lows after Wednesday's events, with the yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9656%.US/ Investors also parsed retail sales data for November, which rose 0.3% on a monthly basis compared with estimates of a 0.1% fall, according to economists polled by Reuters.
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By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes were on course to open higher on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view". The Fed has raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation.
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713746.0
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2023-12-11 00:00:00 UTC
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Consumer Sector Update for 12/14/2023: AEO, JMIA, AMZN, XLP, XLY
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https://www.nasdaq.com/articles/consumer-sector-update-for-12-14-2023%3A-aeo-jmia-amzn-xlp-xly
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Consumer stocks were gaining premarket Thursday, with the Consumer Staples Select Sector SPDR Fund (XLP) 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) recently advancing by 0.7%.
American Eagle Outfitters (AEO) was more than 1% higher after it increased its quarterly dividend by 25% to $0.125 per share, payable on Jan. 19 to shareholders on record as of Jan. 5.
Jumia Technologies (JMIA) was up more than 2% after saying it plans to close its Jumia Food food delivery business following a strategic review.
The Court of Justice of the European Union has rejected an appeal by the European Commission against Amazon.com (AMZN) over a tax ruling in Luxembourg. Amazon was marginally advancing pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consumer stocks were gaining premarket Thursday, with the Consumer Staples Select Sector SPDR Fund (XLP) 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) recently advancing by 0.7%. American Eagle Outfitters (AEO) was more than 1% higher after it increased its quarterly dividend by 25% to $0.125 per share, payable on Jan. 19 to shareholders on record as of Jan. 5. Jumia Technologies (JMIA) was up more than 2% after saying it plans to close its Jumia Food food delivery business following a strategic review.
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Consumer stocks were gaining premarket Thursday, with the Consumer Staples Select Sector SPDR Fund (XLP) 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) recently advancing by 0.7%. Jumia Technologies (JMIA) was up more than 2% after saying it plans to close its Jumia Food food delivery business following a strategic review. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consumer stocks were gaining premarket Thursday, with the Consumer Staples Select Sector SPDR Fund (XLP) 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) recently advancing by 0.7%. Jumia Technologies (JMIA) was up more than 2% after saying it plans to close its Jumia Food food delivery business following a strategic review. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consumer stocks were gaining premarket Thursday, with the Consumer Staples Select Sector SPDR Fund (XLP) 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) recently advancing by 0.7%. American Eagle Outfitters (AEO) was more than 1% higher after it increased its quarterly dividend by 25% to $0.125 per share, payable on Jan. 19 to shareholders on record as of Jan. 5. Jumia Technologies (JMIA) was up more than 2% after saying it plans to close its Jumia Food food delivery business following a strategic review.
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713747.0
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2023-12-11 00:00:00 UTC
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Axon Enterprise, Inc (AXON) Is a Trending Stock: Facts to Know Before Betting on It
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https://www.nasdaq.com/articles/axon-enterprise-inc-axon-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-1
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Axon Enterprise (AXON) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of stun guns and body cameras have returned +12.2% over the past month versus the Zacks S&P 500 composite's +6.9% change. The Zacks Security and Safety Services industry, to which Axon belongs, has gained 8.9% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Axon is expected to post earnings of $0.86 per share for the current quarter, representing a year-over-year change of +22.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The consensus earnings estimate of $3.86 for the current fiscal year indicates a year-over-year change of +76.3%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.15 indicates a change of +7.6% from what Axon is expected to report a year ago. Over the past month, the estimate has changed +1.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Axon is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Axon, the consensus sales estimate for the current quarter of $418.97 million indicates a year-over-year change of +24.6%. For the current and next fiscal years, $1.55 billion and $1.87 billion estimates indicate +30.3% and +20.6% changes, respectively.
Last Reported Results and Surprise History
Axon reported revenues of $413.6 million in the last reported quarter, representing a year-over-year change of +32.7%. EPS of $1.02 for the same period compares with $0.60 a year ago.
Compared to the Zacks Consensus Estimate of $393.77 million, the reported revenues represent a surprise of +5.04%. The EPS surprise was +34.21%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Axon is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Axon. However, its Zacks Rank #2 does suggest that it may 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
Axon Enterprise, Inc (AXON) : 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 this maker of stun guns and body cameras have returned +12.2% over the past month versus the Zacks S&P 500 composite's +6.9% change. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Axon. 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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A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Axon is rated Zacks Rank #2 (Buy). Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Axon is rated Zacks Rank #2 (Buy). Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. The consensus earnings estimate of $3.86 for the current fiscal year indicates a year-over-year change of +76.3%. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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2023-12-11 00:00:00 UTC
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Pactiv Evergreen Inc. (PTVE) Is Attractively Priced Despite Fast-paced Momentum
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https://www.nasdaq.com/articles/pactiv-evergreen-inc.-ptve-is-attractively-priced-despite-fast-paced-momentum-0
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Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Pactiv Evergreen Inc. (PTVE) is one of them. Here are the key reasons why this stock is a great candidate.
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 11.2% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. PTVE meets this criterion too, as the stock gained 52.4% over the past 12 weeks.
Moreover, the momentum for PTVE is fast paced, as the stock currently has a beta of 1.49. This indicates that the stock moves 49% higher than the market in either direction.
Given this price performance, it is no surprise that PTVE has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PTVE earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, PTVE is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. PTVE is currently trading at 0.39 times its sales. In other words, investors need to pay only 39 cents for each dollar of sales.
So, PTVE appears to have plenty of room to run, and that too at a fast pace.
In addition to PTVE, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Pactiv Evergreen Inc. (PTVE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, PTVE is trading at a reasonable valuation. 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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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PTVE earn a Zacks Rank #1 (Strong Buy). Click to get this free report Pactiv Evergreen Inc. (PTVE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that PTVE has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, PTVE is trading at a reasonable valuation.
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Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Given this price performance, it is no surprise that PTVE has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to PTVE, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen.
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2023-12-11 00:00:00 UTC
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How to Find Strong Buy Computer and Technology Stocks Using the Zacks Rank
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https://www.nasdaq.com/articles/how-to-find-strong-buy-computer-and-technology-stocks-using-the-zacks-rank-12
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Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?
Enter the Zacks Rank.
What is the Zacks Rank?
The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.
The Power of Institutional Investors
The Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are the professionals who manage the trillions of dollars invested in mutual funds, investment banks, and hedge funds. Studies have shown that these investors can and do move the market due to the large amounts of money they invest with. Because of this, the market tends to move in the same direction as institutional investors.
In order to determine the fair value of a company and its shares, institutional investors design valuation models that focus on earnings and earnings estimates. Because if you raise earnings estimates, it then creates a higher fair value for a company and its stock price.
With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.
Because it can take a long time for an institutional investor to build a position -- sometimes weeks, if not months -- retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks Rank
The Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at InterDigital (IDCC), which was added to the Zacks Rank #1 list on November 28, 2023.
Headquartered in Wilmington, DE, InterDigital, Inc. is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $1 to $8.91 per share. IDCC also boasts an average earnings surprise of 170.7%.
Analysts are expecting earnings to grow 190.2% for the current fiscal year, with revenue forecasted to rise 19.7%.
Additionally, IDCC has climbed higher over the past four weeks, gaining 11.6%. The S&P 500 is up 6.9% in comparison.
Bottom Line
With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, InterDigital should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
Discover Today's Top Stocks
Our private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>
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
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals? The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. See Today's Zacks #1 Rank List >> 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 Power of Institutional Investors The Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors. Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $1 to $8.91 per share. Bottom Line With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, InterDigital should be on investors' shortlist.
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The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier. The Power of Institutional Investors The Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors. How to Invest with the Zacks Rank The Zacks Rank is known for transforming investment portfolios.
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What is the Zacks Rank? How to Invest with the Zacks Rank The Zacks Rank is known for transforming investment portfolios. Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $1 to $8.91 per share.
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2023-12-11 00:00:00 UTC
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Healthcare providers to join US plan to manage AI risks - White House
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https://www.nasdaq.com/articles/healthcare-providers-to-join-us-plan-to-manage-ai-risks-white-house
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By Andrea Shalal
WASHINGTON, Dec 14 (Reuters) - Twenty-eight healthcare companies, including CVS Health CVS.N, are signing U.S. President Joe Biden's voluntary commitments aimed at ensuring the safe development of artificial intelligence (AI), a White House official said on Thursday.
The commitments by healthcare providers and payers follow those of 15 leading AI companies, including Google, OpenAI and OpenAI partner Microsoft MSFT.O to develop AI models responsibly.
Biden's government is pushing to set parameters around AI as it makes rapid gains in capability and popularity while regulation remains limited.
"The administration is pulling every lever it has to advance responsible AI in health-related fields," the White House official said, adding AI carried enormous potential to benefit patients, doctors and hospital staff, if managed responsibly.
Biden issued an executive order on Oct. 30 requiring developers of AI systems that pose risks to U.S. national security, the economy, public health or safety to share the results of safety tests with the government before releasing them to the public.
Providers signing the commitments include Oscar OSCR.N, Curai, Devoted Health, Duke Health, Emory Healthcare and WellSpan Health, the White House official said in a statement.
"We must remain vigilant to realize the promise of AI for improving health outcomes," the official said. "Without appropriate testing, risk mitigations and human oversight, AI-enabled tools used for clinical decisions can make errors that are costly at best - and dangerous at worst."
Absent proper oversight, diagnoses by AI can be biased by gender or race, especially when AI is not trained on data representing the population it is being used treat, the official said.
The principles behind the administration plan call for companies to inform users whenever they receive content that is largely AI-generated and not reviewed or edited by people, and to monitor and address harms that applications might cause.
Companies that sign the commitments pledge to develop AI uses responsibly, including solutions that advance health equity, expand access to care, make care affordable, coordinate care to improve outcomes, reduce clinician burnout and otherwise improve the experience of patients.
(Reporting by Andrea Shalal; Editing by William Mallard)
((andrea.shalal@tr.com; +1 202-815-7432;))
The views and 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 Andrea Shalal WASHINGTON, Dec 14 (Reuters) - Twenty-eight healthcare companies, including CVS Health CVS.N, are signing U.S. President Joe Biden's voluntary commitments aimed at ensuring the safe development of artificial intelligence (AI), a White House official said on Thursday. Biden's government is pushing to set parameters around AI as it makes rapid gains in capability and popularity while regulation remains limited. The principles behind the administration plan call for companies to inform users whenever they receive content that is largely AI-generated and not reviewed or edited by people, and to monitor and address harms that applications might cause.
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The commitments by healthcare providers and payers follow those of 15 leading AI companies, including Google, OpenAI and OpenAI partner Microsoft MSFT.O to develop AI models responsibly. Providers signing the commitments include Oscar OSCR.N, Curai, Devoted Health, Duke Health, Emory Healthcare and WellSpan Health, the White House official said in a statement. Companies that sign the commitments pledge to develop AI uses responsibly, including solutions that advance health equity, expand access to care, make care affordable, coordinate care to improve outcomes, reduce clinician burnout and otherwise improve the experience of patients.
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By Andrea Shalal WASHINGTON, Dec 14 (Reuters) - Twenty-eight healthcare companies, including CVS Health CVS.N, are signing U.S. President Joe Biden's voluntary commitments aimed at ensuring the safe development of artificial intelligence (AI), a White House official said on Thursday. The commitments by healthcare providers and payers follow those of 15 leading AI companies, including Google, OpenAI and OpenAI partner Microsoft MSFT.O to develop AI models responsibly. Companies that sign the commitments pledge to develop AI uses responsibly, including solutions that advance health equity, expand access to care, make care affordable, coordinate care to improve outcomes, reduce clinician burnout and otherwise improve the experience of patients.
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Biden's government is pushing to set parameters around AI as it makes rapid gains in capability and popularity while regulation remains limited. "The administration is pulling every lever it has to advance responsible AI in health-related fields," the White House official said, adding AI carried enormous potential to benefit patients, doctors and hospital staff, if managed responsibly. Providers signing the commitments include Oscar OSCR.N, Curai, Devoted Health, Duke Health, Emory Healthcare and WellSpan Health, the White House official said in a statement.
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66ae8a23-500b-46ae-a12a-c4dbdc50ac2f
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713751.0
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2023-12-11 00:00:00 UTC
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Here's Why Hold Strategy is Apt for Valero (VLO) Stock Now
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DCOMP
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https://www.nasdaq.com/articles/heres-why-hold-strategy-is-apt-for-valero-vlo-stock-now-2
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Valero Energy Corporation VLO has gained 7.5% in the past year against a decline of 0.3% of the composite stocks belonging to the energy sector.
What’s Favoring the Stock?
Valero, currently carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in producing fuels and products that can meet the demands of modern life. Its refineries are located across the United States, Canada and the U.K. A total of 15 petroleum refineries, wherein Valero has ownership interests, have a combined throughput capacity of 3.2 million barrels per day.
The Renewable Diesel business segment of the firm comprises Diamond Green Diesel (“DGD”) — a joint venture between Darling Ingredients Inc. and Valero. DGD is a leading renewable fuel producer in North America. Low-carbon fuel policies across the globe primarily are aiding the demand for renewable diesel, therefore driving Valero’s Renewable Diesel business unit.
Valero boasts that its premium refining operations are resilient, even when the business operating environment is carbon-constrained. Its refining business has the capabilities to generate handsome cashflows that will allow it to return capital to shareholders and back growth projects.
Risks
However, being a premium refiner, the firm’s input costs are highly fluctuating, given the volatile pricing scenario of crude oil.
Stocks to Consider
Better-ranked players in the energy space include The Williams Companies, Inc. WMB, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While The Williams Companies sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is well-poised to capitalize on the mounting demand for clean energy since it is engaged in transporting, storing, gathering and processing natural gas and natural gas liquids.
Weatherfordis a key energy player and is engaged in offering exclusive drilling technologies that will maximize clients’ reservoir exposure. Weatherford is also involved in well construction and completion activities in an efficient manner.
Transportadora’s midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. It generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina. Also, TGS has lower debt exposure than the composite stocks belonging to the industry.
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
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report
Weatherford International PLC (WFRD) : 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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Valero, currently carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in producing fuels and products that can meet the demands of modern life. Stocks to Consider Better-ranked players in the energy space include The Williams Companies, Inc. WMB, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. 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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Stocks to Consider Better-ranked players in the energy space include The Williams Companies, Inc. WMB, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While The Williams Companies sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy). Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Better-ranked players in the energy space include The Williams Companies, Inc. WMB, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While The Williams Companies sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy). Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DGD is a leading renewable fuel producer in North America. You can see the complete list of today’s Zacks #1 Rank stocks here. Today, you can download 7 Best Stocks for the Next 30 Days.
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5949b7e6-3345-43f5-b5e8-cfe30ceec64d
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713752.0
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2023-12-11 00:00:00 UTC
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Constellation Energy and Winnebago Industries have been highlighted as Zacks Bull and Bear of the Day
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DCOMP
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https://www.nasdaq.com/articles/constellation-energy-and-winnebago-industries-have-been-highlighted-as-zacks-bull-and-bear
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For Immediate Release
Chicago, IL – December 14, 2023 – Zacks Equity Research shares Constellation Energy Corp. CEG as the Bull of the Day and Winnebago Industries WGO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT.
Here is a synopsis of all five stocks:
Bull of the Day:
Constellation Energy Corp. is a Zacks Rank #1 (Strong Buy) stock, and a compelling standout in the Utilities sector because of its exposure to nuclear energy. Furthermore, analysts are forecasting very strong long-term EPS share growth, which combined with its historically discounted valuation makes it a top-tier investment consideration.
Company Summary
Constellation Energy Corporation is the country's leading producer of carbon-free energy, powering 20 million homes and making up 10% of the nation's renewable electricity. Through its diversified energy assets, including nuclear, hydro, wind, and solar generation facilities it is leading the industry in the transition to renewable utilities.
Constellation as set ambitious goals intending to produce 95% carbon-free electricity by 2030, 100% carbon-free electricity by 2040, a 100% reduction of operations-driven emissions by 2040 and providing 100 percent of business customers with customized data to help them reduce their own carbon footprints.
Earnings Estimates
Analysts have been steadily revising earnings estimates over the last five months, giving it a top Zacks rank, and powering a 36% YTD return. Current quarter earnings estimates have been revised higher by 28% and are expected to climb 1,500% YoY to $1.64 per share. FY23 earnings estimates have increased by 34% and are projected to climb to $7.44 per share.
Valuation
Even with the strong appreciation in the stock, CEG still boasts a very fair relative valuation. It is currently trading at a one year forward earnings multiple of 15.4x, below the industry average of 17.2x, and below its two-year median of 20.3x.
Additionally, with EPS forecast to grow an average 26.3% annually over the next 3-5 years, CEG also enjoys a bargain PEG ratio. Considering the growth estimates and earnings multiple its PEG ratio is 0.58x, indicating a value investing opportunity.
Bottom Line
For investors looking to add exposure to alternative energy stocks, Constellation Energy Corporation is a worthy consideration. Its ambitious and innovative vision, along with its reasonable valuation and strong growth estimates also make it a unique option in the utilities sector.
Bear of the Day:
Winnebago Industries, the country's leading producer of recreational vehicles, is bumping up against the obstacle of late business cycle economics, as consumers reduce discretionary spending and tighten budgets. In addition to a Zacks Rank #5 (Strong Sell) rating, it still has a historically elevated valuation, possibly not pricing in a further slowdown in consumer spending.
Because of these developments, I think investors should look for other opportunities.
Earnings Estimates
Analysts have unanimously lowered the expectation for Winnebago Industries earnings, giving it the lowest Zacks Ranks.
Current quarter earnings have declined by -12% and are forecast to fall -40% YoY to $1.25 per share. FY24 earnings have been revised lower by -5.6% and are projected to decrease by -14.3% YoY to $6.57 per share.
Technical Perspective
WGO stock has been trading in a wide range all year and was just denied by the upper level of resistance. I think it is likely that the lower level of support will be retested at some point in early 2024, making this stock one investors should avoid.
Valuation
Winnebago Industries is trading at a one year forward earnings multiple of 10.5x, which is below the industry average and above its five-year median of 9x. The company has also been increasing the share count over the last several years, and the shares outstanding jumped 11% in just the last year.
Bottom Line
Although Winnebago Industries is an industry leading company that likely has a positive long-term future, the near-term prospects for the stocks are not good. Investors should explore other industries as the market and economy digest the shifting environment.
Additional content:
3 Tech Stock Crushing the "Magnificent 7" in 2023
In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia and Tesla. These companies are considered the new leaders in the stock market.
There is a pureplay ETF called Roundhill Magnificent Seven ETF on this theme. The ETF has surged more than 30% this year. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year.
But there are three tech stocks that have beaten even the best of Magnificent Seven, i.e., Nvidia.
Inside the Dominance of Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023.
What About Other Tech Jewels?
Even in the narrow market breadth, some tech companies shined. With the Fed expected to go slow on its rate hike spree in 2024 (or even cut rates in late 2024), overall tech space should do well as the area thrives better in a low-rate environment.
Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year.
Stock to Watch
Below, we highlight those winning tech stocks that trumped even Magnificent Seven in 2023. Since these stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), these winners have more room for growth going into 2024.
Applied Optoelectronics – Up 888.3% YTD
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The Zacks Rank #3 company belongs to a top-ranked Zacks sector (top 31%).
IonQ– Up 268.8% YTD
IonQ Inc. provides a quantum system through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ Inc., formerly known as dMY Technology Group Inc. III., is based in COLLEGE PARK, Md. The Zacks Rank #2 company hails from a top-ranked Zacks industry (top 36%) and sector (top 31%).
Vertiv– Up 271.7% YTD
Vertiv Holdings Co provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. The Zacks Rank #1 company belongs to a top-ranked Zacks industry (top 21%) and sector (top 31%). Two out of three analysts upped their earnings estimates for the upcoming quarter over the past one month.
Why Haven't You Looked at Zacks' Top Stocks?
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See Stocks Free >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
Constellation Energy Corporation (CEG) : Free Stock Analysis Report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : 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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Furthermore, analysts are forecasting very strong long-term EPS share growth, which combined with its historically discounted valuation makes it a top-tier investment consideration. Bear of the Day: Winnebago Industries, the country's leading producer of recreational vehicles, is bumping up against the obstacle of late business cycle economics, as consumers reduce discretionary spending and tighten budgets. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space.
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For Immediate Release Chicago, IL – December 14, 2023 – Zacks Equity Research shares Constellation Energy Corp. CEG as the Bull of the Day and Winnebago Industries WGO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT. Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here is a synopsis of all five stocks: Bull of the Day: Constellation Energy Corp. is a Zacks Rank #1 (Strong Buy) stock, and a compelling standout in the Utilities sector because of its exposure to nuclear energy. Additional content: 3 Tech Stock Crushing the "Magnificent 7" in 2023 In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT. But there are three tech stocks that have beaten even the best of Magnificent Seven, i.e., Nvidia. Already, market breadth has continued to broaden, and smaller tech companies are likely to excel.
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5db1c60e-cb43-4bb3-baa4-80f621079007
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713753.0
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2023-12-11 00:00:00 UTC
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How to Find Strong Transportation Stocks Slated for Positive Earnings Surprises
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DCOMP
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https://www.nasdaq.com/articles/how-to-find-strong-transportation-stocks-slated-for-positive-earnings-surprises-6
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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Delta Air Lines?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Delta Air Lines (DAL) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $1.18 a share 29 days away from its upcoming earnings release on January 12, 2024.
By taking the percentage difference between the $1.18 Most Accurate Estimate and the $1.16 Zacks Consensus Estimate, Delta Air Lines has an Earnings ESP of +2.1%. Investors should also know that DAL is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DAL is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is United Parcel Service (UPS).
Slated to report earnings on January 30, 2024, United Parcel Service holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.49 a share 47 days from its next quarterly update.
The Zacks Consensus Estimate for United Parcel Service is $2.47, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.78%.
Because both stocks hold a positive Earnings ESP, DAL and UPS could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out 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
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : 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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We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price. Check it out 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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Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank. Slated to report earnings on January 30, 2024, United Parcel Service holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.49 a share 47 days from its next quarterly update. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Earnings ESP, Explained The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. Find Stocks to Buy or Sell Before They're Reported Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price. Delta Air Lines (DAL) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $1.18 a share 29 days away from its upcoming earnings release on January 12, 2024. Because both stocks hold a positive Earnings ESP, DAL and UPS could potentially post earnings beats in their next reports.
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5a6bf3f2-283b-46fe-9380-2171400765e0
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713754.0
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2023-12-11 00:00:00 UTC
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Here's What Could Help Virco Manufacturing Corporation (VIRC) Maintain Its Recent Price Strength
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DCOMP
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https://www.nasdaq.com/articles/heres-what-could-help-virco-manufacturing-corporation-virc-maintain-its-recent-price
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Virco Manufacturing Corporation (VIRC) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. VIRC is quite a good fit in this regard, gaining 64.6% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 44.8% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, VIRC is currently trading at 97.2% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in VIRC may not reverse anytime soon.
In addition to VIRC, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. In addition to VIRC, there are several other stocks that currently pass through our "Recent Price Strength" screen. Want the latest recommendations from Zacks Investment Research?
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fc3cb185-0498-4587-8904-4236ddcbe457
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713755.0
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2023-12-11 00:00:00 UTC
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Brainsway Ltd. Sponsored ADR (BWAY) Is a Great Choice for 'Trend' Investors, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/brainsway-ltd.-sponsored-adr-bway-is-a-great-choice-for-trend-investors-heres-why
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and Brainsway Ltd. Sponsored ADR (BWAY) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. BWAY is quite a good fit in this regard, gaining 28.9% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 32.6% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, BWAY is currently trading at 83.4% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in BWAY may not reverse anytime soon.
In addition to BWAY, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Brainsway Ltd. Sponsored ADR (BWAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Sponsored ADR (BWAY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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So, the price trend in BWAY may not reverse anytime soon. In addition to BWAY, there are several other stocks that currently pass through our "Recent Price Strength" screen. Want the latest recommendations from Zacks Investment Research?
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6d9c4698-4367-452e-9b21-8e20281b6194
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713756.0
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2023-12-11 00:00:00 UTC
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Ozempic Isn't the Best Weight-Loss Treatment Anymore. Here's Why That Shouldn't Matter to Novo Nordisk Investors.
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DCOMP
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https://www.nasdaq.com/articles/ozempic-isnt-the-best-weight-loss-treatment-anymore.-heres-why-that-shouldnt-matter-to
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nan
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nan
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Two of the biggest names in healthcare today are Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO). These companies have the most popular weight loss drugs available in the market right now. And that's a key reason why shares of these two companies are up more than 40% this year.
A recent study, however, suggested that Eli Lilly's diabetes product, Mounjaro, may be more effective than Ozempic (Novo Nordisk's diabetes drug, which people have been using to lose weight). But even if that's true, that may not necessarily be a reason for Novo Nordisk investors to worry about the stock's long-term potential.
Is Novo Nordisk falling behind?
The bigger concern for Novo Nordisk investors these days is whether the company's weight-loss products are up to par with the competition. The biggest rival these days comes from Eli Lilly. The Food and Drug Administration recently approved its weight-loss drug, which it will sell under the brand Zepbound. The drug is also approved to treat diabetes under the name Mounjaro.
According to a recent study from Truveta Research, Ozempic was found to be less likely to trigger a significant weight loss in patients than those who took Eli Lilly's drug. The results were based on a real-world study that involved close to 18,000 patients who were either overweight or obese.
The results aren't surprising, however. In trials, Mounjaro demonstrated higher rates of weight loss. Data from recent trials showed that, on average, people lost 26.6% of their body weight over a period of 84 weeks. By comparison, Wegovy, which is Novo Nordisk's approved treatment for weight loss and essentially the same thing as Ozempic but contains a higher dosage of semaglutide, has helped people lose an average of 15% of their body weight over two years.
Why investors shouldn't be overly concerned
Although Wegovy and Ozempic may not be the best options for people looking to lose weight anymore, that doesn't mean it's game over for Novo Nordisk. The weight-loss drug market could be worth $100 billion by 2030, according to estimates from Goldman Sachs; there's plenty of room in the market for more than just a couple of weight-loss treatments.
Plus, another underrated factor to consider is the tolerance of these treatments. People who take these drugs have to stay on them forever. Otherwise, there is the risk that the lost weight can come back. This makes it imperative for the side effects to be tolerable. Some particularly concerning side effects associated with these drugs, which are glucagon-like peptide-1 agonists, which help people feel full faster, is that studies have shown they can cause adverse gastrointestinal issues. This includes gastroparesis, where food doesn't flow properly from the stomach to the small intestine.
These drugs are still in their early growth stages, so it may be difficult to know which one patients may end up preferring in the long run. And while patients would obviously prefer to go for the drug which can achieve higher weight loss, it may not necessarily be the best choice, depending on the side effects that come with it.
Should you invest in Novo Nordisk stock?
Shares of Novo Nordisk are up over 40% this year, as the company has been a hot buy due to the excitement surrounding both Ozempic and Wegovy. There is one potential reason investors may want to invest in it instead of Eli Lilly: It comes at a much lower premium. At 40 times earnings, the healthcare stock is a much cheaper option than its rival, which trades at an earnings multiple of more than 100.
Both stocks look investment-worthy given the opportunities ahead for each company in the weight-loss market, and investors should be careful not to assume Novo Nordisk is in trouble because it no longer has the hottest weight-loss drug available; it could still carve out a significant piece of the market for itself.
Should you invest $1,000 in Novo Nordisk right now?
Before you buy stock in Novo Nordisk, consider this:
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*Stock Advisor returns as of December 11, 2023
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to a recent study from Truveta Research, Ozempic was found to be less likely to trigger a significant weight loss in patients than those who took Eli Lilly's drug. Some particularly concerning side effects associated with these drugs, which are glucagon-like peptide-1 agonists, which help people feel full faster, is that studies have shown they can cause adverse gastrointestinal issues. Shares of Novo Nordisk are up over 40% this year, as the company has been a hot buy due to the excitement surrounding both Ozempic and Wegovy.
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A recent study, however, suggested that Eli Lilly's diabetes product, Mounjaro, may be more effective than Ozempic (Novo Nordisk's diabetes drug, which people have been using to lose weight). Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Novo Nordisk wasn't one of them. The Motley Fool recommends Novo Nordisk.
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A recent study, however, suggested that Eli Lilly's diabetes product, Mounjaro, may be more effective than Ozempic (Novo Nordisk's diabetes drug, which people have been using to lose weight). Both stocks look investment-worthy given the opportunities ahead for each company in the weight-loss market, and investors should be careful not to assume Novo Nordisk is in trouble because it no longer has the hottest weight-loss drug available; it could still carve out a significant piece of the market for itself. Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Novo Nordisk wasn't one of them.
|
A recent study, however, suggested that Eli Lilly's diabetes product, Mounjaro, may be more effective than Ozempic (Novo Nordisk's diabetes drug, which people have been using to lose weight). And while patients would obviously prefer to go for the drug which can achieve higher weight loss, it may not necessarily be the best choice, depending on the side effects that come with it. Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Novo Nordisk wasn't one of them.
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a177cbf0-64a6-4bca-a017-740595bf32ed
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713757.0
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2023-12-11 00:00:00 UTC
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Here is What to Know Beyond Why PepsiCo, Inc. (PEP) is a Trending Stock
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DCOMP
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-pepsico-inc.-pep-is-a-trending-stock-1
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nan
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nan
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PepsiCo (PEP) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this food and beverage company have returned +2.9%, compared to the Zacks S&P 500 composite's +6.9% change. During this period, the Zacks Beverages - Soft drinks industry, which PepsiCo falls in, has gained 6.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, PepsiCo is expected to post earnings of $1.72 per share, indicating a change of +3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $7.55 points to a change of +11.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $8.11 indicates a change of +7.5% from what PepsiCo is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PepsiCo is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of PepsiCo, the consensus sales estimate of $28.26 billion for the current quarter points to a year-over-year change of +0.9%. The $91.88 billion and $96.05 billion estimates for the current and next fiscal years indicate changes of +6.4% and +4.5%, respectively.
Last Reported Results and Surprise History
PepsiCo reported revenues of $23.45 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $2.25 for the same period compares with $1.97 a year ago.
Compared to the Zacks Consensus Estimate of $23.38 billion, the reported revenues represent a surprise of +0.32%. The EPS surprise was +3.69%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PepsiCo is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PepsiCo. However, its Zacks Rank #2 does suggest that it may 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
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
|
A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PepsiCo is rated Zacks Rank #2 (Buy). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PepsiCo is rated Zacks Rank #2 (Buy). Compared to the Zacks Consensus Estimate of $23.38 billion, the reported revenues represent a surprise of +0.32%.
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7feeff23-e3e4-439c-a292-8e7486ad267b
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713758.0
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2023-12-11 00:00:00 UTC
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Here is What to Know Beyond Why Celsius Holdings Inc. (CELH) is a Trending Stock
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DCOMP
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-celsius-holdings-inc.-celh-is-a-trending-stock-0
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nan
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nan
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Celsius Holdings Inc. (CELH) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +0.6% over the past month versus the Zacks S&P 500 composite's +6.9% change. The Zacks Food - Miscellaneous industry, to which Celsius Holdings Inc. belongs, has gained 8.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Celsius Holdings Inc. is expected to post earnings of $0.16 per share for the current quarter, representing a year-over-year change of +1,500%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
The consensus earnings estimate of $0.75 for the current fiscal year indicates a year-over-year change of +185.2%. This estimate has changed +3.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.97 indicates a change of +28.5% from what Celsius Holdings Inc. is expected to report a year ago. Over the past month, the estimate has changed +2.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Celsius Holdings Inc.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Celsius Holdings Inc. the consensus sales estimate for the current quarter of $326.25 million indicates a year-over-year change of +83.3%. For the current and next fiscal years, $1.3 billion and $1.81 billion estimates indicate +98.5% and +39.4% changes, respectively.
Last Reported Results and Surprise History
Celsius Holdings Inc. reported revenues of $384.76 million in the last reported quarter, representing a year-over-year change of +104.4%. EPS of $0.30 for the same period compares with -$0.24 a year ago.
Compared to the Zacks Consensus Estimate of $348.35 million, the reported revenues represent a surprise of +10.45%. The EPS surprise was +81.63%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Celsius Holdings Inc. is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Celsius Holdings Inc. However, its Zacks Rank #2 does suggest that it may 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
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Celsius Holdings Inc. 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 chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Last Reported Results and Surprise History Celsius Holdings Inc. reported revenues of $384.76 million in the last reported quarter, representing a year-over-year change of +104.4%. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Celsius Holdings Inc. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Celsius Holdings Inc. Compared to the Zacks Consensus Estimate of $348.35 million, the reported revenues represent a surprise of +10.45%.
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f94931dd-7640-4daf-9f53-182969ec5ab5
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713759.0
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2023-12-11 00:00:00 UTC
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Investors Heavily Search SoFi Technologies, Inc. (SOFI): Here is What You Need to Know
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DCOMP
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https://www.nasdaq.com/articles/investors-heavily-search-sofi-technologies-inc.-sofi%3A-here-is-what-you-need-to-know-2
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nan
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nan
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SoFi Technologies, Inc. (SOFI) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +21.3% over the past month versus the Zacks S&P 500 composite's +6.9% change. The Zacks Technology Services industry, to which SoFi Technologies, Inc. belongs, has gained 13.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
SoFi Technologies, Inc. is expected to post break-even earnings per share for the current quarter, representing a year-over-year change of +100%. Over the last 30 days, the Zacks Consensus Estimate has changed -100%.
The consensus earnings estimate of -$0.40 for the current fiscal year indicates no change from the prior year. This estimate has changed +5.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.06 indicates a change of +115.4% from what SoFi Technologies, Inc. is expected to report a year ago. Over the past month, the estimate has changed +12.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SoFi Technologies, Inc. is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For SoFi Technologies, Inc. the consensus sales estimate for the current quarter of $574.42 million indicates a year-over-year change of +25.8%. For the current and next fiscal years, $2.06 billion and $2.54 billion estimates indicate +30.7% and +23.4% changes, respectively.
Last Reported Results and Surprise History
SoFi Technologies, Inc. reported revenues of $530.72 million in the last reported quarter, representing a year-over-year change of +25.2%. EPS of -$0.03 for the same period compares with -$0.09 a year ago.
Compared to the Zacks Consensus Estimate of $516.2 million, the reported revenues represent a surprise of +2.81%. The EPS surprise was +57.14%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
SoFi Technologies, Inc. is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SoFi Technologies, Inc. However, its Zacks Rank #2 does suggest that it may 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
SoFi Technologies, Inc. (SOFI) : 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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We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SoFi Technologies, Inc. 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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A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SoFi Technologies, Inc. is rated Zacks Rank #2 (Buy). Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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For the next fiscal year, the consensus earnings estimate of $0.06 indicates a change of +115.4% from what SoFi Technologies, Inc. is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SoFi Technologies, Inc. is rated Zacks Rank #2 (Buy). Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. For the next fiscal year, the consensus earnings estimate of $0.06 indicates a change of +115.4% from what SoFi Technologies, Inc. is expected to report a year ago. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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1168266f-7025-4be2-a913-b084a39799c9
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713760.0
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2023-12-11 00:00:00 UTC
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Southwest Airlines (LUV) Rises Higher Than Market: Key Facts
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DCOMP
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https://www.nasdaq.com/articles/southwest-airlines-luv-rises-higher-than-market%3A-key-facts
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nan
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nan
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Southwest Airlines (LUV) closed the most recent trading day at $29.34, moving +0.93% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.
Coming into today, shares of the airline had gained 25.52% in the past month. In that same time, the Transportation sector gained 7.8%, while the S&P 500 gained 5.28%.
Investors will be eagerly watching for the performance of Southwest Airlines in its upcoming earnings disclosure. On that day, Southwest Airlines is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 136.84%. In the meantime, our current consensus estimate forecasts the revenue to be $6.75 billion, indicating a 9.3% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.39 per share and revenue of $25.99 billion, which would represent changes of +19.83% and +9.12%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Southwest Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.36% lower. Southwest Airlines is currently a Zacks Rank #3 (Hold).
In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 20.92. This signifies a premium in comparison to the average Forward P/E of 7.04 for its industry.
We can additionally observe that LUV currently boasts a PEG ratio of 1.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LUV's industry had an average PEG ratio of 0.3 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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
Southwest Airlines Co. (LUV) : 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 that day, Southwest Airlines is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 136.84%. In the meantime, our current consensus estimate forecasts the revenue to be $6.75 billion, indicating a 9.3% growth compared to the corresponding quarter of the prior year. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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Southwest Airlines (LUV) closed the most recent trading day at $29.34, moving +0.93% from the previous trading session. For the full year, the Zacks Consensus Estimates are projecting earnings of $1.39 per share and revenue of $25.99 billion, which would represent changes of +19.83% and +9.12%, respectively, from the prior year. Click to get this free report Southwest Airlines Co. (LUV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the full year, the Zacks Consensus Estimates are projecting earnings of $1.39 per share and revenue of $25.99 billion, which would represent changes of +19.83% and +9.12%, respectively, from the prior year. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups.
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On that day, Southwest Airlines is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 136.84%. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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fe036842-d381-41a2-b633-cb9205093597
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713761.0
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2023-12-11 00:00:00 UTC
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Rockwell Automation (ROK) Laps the Stock Market: Here's Why
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DCOMP
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https://www.nasdaq.com/articles/rockwell-automation-rok-laps-the-stock-market%3A-heres-why
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nan
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nan
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Rockwell Automation (ROK) closed the latest trading day at $279.79, indicating a +0.45% change from the previous session's end. This change outpaced the S&P 500's 0.39% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.2%.
Coming into today, shares of the industrial equipment and software maker had gained 7.78% in the past month. In that same time, the Industrial Products sector gained 7.24%, while the S&P 500 gained 5.28%.
The upcoming earnings release of Rockwell Automation will be of great interest to investors. The company is predicted to post an EPS of $2.61, indicating a 6.1% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.07 billion, up 4.57% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.83 per share and a revenue of $9.26 billion, indicating changes of +5.86% and +2.28%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rockwell Automation. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Rockwell Automation is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Rockwell Automation's current valuation metrics, including its Forward P/E ratio of 21.7. For comparison, its industry has an average Forward P/E of 27.26, which means Rockwell Automation is trading at a discount to the group.
Meanwhile, ROK's PEG ratio is currently 2.11. 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. ROK's industry had an average PEG ratio of 6.28 as of yesterday's close.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% 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.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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
Rockwell Automation, Inc. (ROK) : 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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Rockwell Automation (ROK) closed the latest trading day at $279.79, indicating a +0.45% change from the previous session's end. For comparison, its industry has an average Forward P/E of 27.26, which means Rockwell Automation is trading at a discount to the group. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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Rockwell Automation (ROK) closed the latest trading day at $279.79, indicating a +0.45% change from the previous session's end. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.83 per share and a revenue of $9.26 billion, indicating changes of +5.86% and +2.28%, respectively, from the former year. Click to get this free report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Industrial Automation and Robotics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% 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.
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Rockwell Automation (ROK) closed the latest trading day at $279.79, indicating a +0.45% change from the previous session's end. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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6c2b03c9-73c3-4ddd-9b06-0bdf11bafb60
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713762.0
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2023-12-11 00:00:00 UTC
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Symbotic Inc. (SYM) Stock Declines While Market Improves: Some Information for Investors
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DCOMP
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https://www.nasdaq.com/articles/symbotic-inc.-sym-stock-declines-while-market-improves%3A-some-information-for-investors
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nan
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nan
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In the latest trading session, Symbotic Inc. (SYM) closed at $50.27, marking a -0.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.39% for the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the company had gained 60.39% in the past month. In that same time, the Business Services sector gained 7.86%, while the S&P 500 gained 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Symbotic Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.05, marking a 58.33% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $371 million, up 79.83% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.02 per share and a revenue of $1.79 billion, signifying shifts of +94.59% and +51.71%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Symbotic Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 76.32% higher. Currently, Symbotic Inc. is carrying a Zacks Rank of #3 (Hold).
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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
Symbotic Inc. (SYM) : 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 Symbotic Inc. in its upcoming earnings disclosure. For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.02 per share and a revenue of $1.79 billion, signifying shifts of +94.59% and +51.71%, respectively, from the last year. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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In the latest trading session, Symbotic Inc. (SYM) closed at $50.27, marking a -0.12% move from the previous day. For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.02 per share and a revenue of $1.79 billion, signifying shifts of +94.59% and +51.71%, respectively, from the last year. Over the past month, the Zacks Consensus EPS estimate has moved 76.32% higher.
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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. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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In the latest trading session, Symbotic Inc. (SYM) closed at $50.27, marking a -0.12% move from the previous day. Investors can capitalize on this by using the Zacks Rank. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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8f2e8691-9bbf-4832-ae95-ef7412046c27
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713763.0
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2023-12-11 00:00:00 UTC
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Cal-Maine Foods (CALM) Stock Dips While Market Gains: Key Facts
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DCOMP
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https://www.nasdaq.com/articles/cal-maine-foods-calm-stock-dips-while-market-gains%3A-key-facts
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nan
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nan
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Cal-Maine Foods (CALM) closed at $50.78 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Coming into today, shares of the egg producer had gained 4.05% in the past month. In that same time, the Basic Materials sector gained 6.62%, while the S&P 500 gained 5.28%.
The investment community will be paying close attention to the earnings performance of Cal-Maine Foods in its upcoming release.
Investors might also notice recent changes to analyst estimates for Cal-Maine Foods. Such recent modifications usually signify the changing landscape of near-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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Cal-Maine Foods boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Cal-Maine Foods is presently trading at a Forward P/E ratio of 24.86. This represents a premium compared to its industry's average Forward P/E of 16.17.
It's also important to note that CALM currently trades at a PEG ratio of 1.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Agriculture - Products industry held an average PEG ratio of 1.49.
The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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
Cal-Maine Foods, Inc. (CALM) : 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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Cal-Maine Foods (CALM) closed at $50.78 in the latest trading session, marking a -1.78% move from the prior day. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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Cal-Maine Foods (CALM) closed at $50.78 in the latest trading session, marking a -1.78% move from the prior day. As of the close of trade yesterday, the Agriculture - Products industry held an average PEG ratio of 1.49. Click to get this free report Cal-Maine Foods, Inc. (CALM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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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Cal-Maine Foods (CALM) closed at $50.78 in the latest trading session, marking a -1.78% move from the prior day. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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ee65d6e0-9834-476a-ae24-c45af5f5ef5e
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713764.0
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2023-12-11 00:00:00 UTC
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Aehr Test Systems (AEHR) Stock Drops Despite Market Gains: Important Facts to Note
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DCOMP
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https://www.nasdaq.com/articles/aehr-test-systems-aehr-stock-drops-despite-market-gains%3A-important-facts-to-note
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nan
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nan
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In the latest market close, Aehr Test Systems (AEHR) reached $25.76, with a -0.5% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Coming into today, shares of the company had gained 5.67% in the past month. In that same time, the Computer and Technology sector gained 5.97%, while the S&P 500 gained 5.28%.
The upcoming earnings release of Aehr Test Systems will be of great interest to investors. In that report, analysts expect Aehr Test Systems to post earnings of $0.18 per share. This would mark year-over-year growth of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $20.1 million, up 35.63% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.05 per share and a revenue of $105.3 million, indicating changes of +77.97% and +62.1%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Aehr Test Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Aehr Test Systems possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Aehr Test Systems is currently trading at a Forward P/E ratio of 24.66. This signifies no noticeable deviation in comparison to the average Forward P/E of 24.66 for its industry.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 34% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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
Aehr Test Systems (AEHR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Aehr Test Systems. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.05 per share and a revenue of $105.3 million, indicating changes of +77.97% and +62.1%, respectively, from the former year. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Aehr Test Systems. Click to get this free report Aehr Test Systems (AEHR) : 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 is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Click to get this free report Aehr Test Systems (AEHR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Aehr Test Systems. Right now, Aehr Test Systems possesses a Zacks Rank of #3 (Hold). See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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560b3712-bd11-4699-9f93-79d14c4dbcf2
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713765.0
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2023-12-11 00:00:00 UTC
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D.R. Horton (DHI) Rises But Trails Market: What Investors Should Know
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DCOMP
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https://www.nasdaq.com/articles/d.r.-horton-dhi-rises-but-trails-market%3A-what-investors-should-know
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nan
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nan
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In the latest trading session, D.R. Horton (DHI) closed at $138.90, marking a +0.32% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.39% for the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the homebuilder had gained 12.84% in the past month. In that same time, the Construction sector gained 12.48%, while the S&P 500 gained 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of D.R. Horton in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.86, marking a 3.62% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.61 billion, up 4.78% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.18 per share and a revenue of $36.33 billion, signifying shifts of +2.6% and +2.45%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.61% lower. Currently, D.R. Horton is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, D.R. Horton currently has a Forward P/E ratio of 9.77. This valuation marks a premium compared to its industry's average Forward P/E of 9.52.
We can additionally observe that DHI currently boasts a PEG ratio of 0.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 0.77 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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
D.R. Horton, Inc. (DHI) : 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 annual period, the Zacks Consensus Estimates anticipate earnings of $14.18 per share and a revenue of $36.33 billion, signifying shifts of +2.6% and +2.45%, respectively, from the last year. The Building Products - Home Builders industry had an average PEG ratio of 0.77 as trading concluded yesterday. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.18 per share and a revenue of $36.33 billion, signifying shifts of +2.6% and +2.45%, respectively, from the last year. Over the past month, the Zacks Consensus EPS estimate has moved 1.61% lower. The Building Products - Home Builders industry had an average PEG ratio of 0.77 as trading concluded yesterday.
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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. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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Horton (DHI) closed at $138.90, marking a +0.32% move from the previous day. Horton currently has a Forward P/E ratio of 9.77. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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6d819f1b-5e10-442e-bb8c-1ae466c2d454
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713766.0
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2023-12-11 00:00:00 UTC
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Why General Mills (GIS) Outpaced the Stock Market Today
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DCOMP
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https://www.nasdaq.com/articles/why-general-mills-gis-outpaced-the-stock-market-today
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nan
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nan
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General Mills (GIS) closed at $66.08 in the latest trading session, marking a +0.93% move from the prior day. This change outpaced the S&P 500's 0.39% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.2%.
The the stock of maker of Cheerios cereal, Yoplait yogurt and other packaged foods has risen by 0.29% in the past month, lagging the Consumer Staples sector's gain of 1.75% and the S&P 500's gain of 5.28%.
Market participants will be closely following the financial results of General Mills in its upcoming release. The company plans to announce its earnings on December 20, 2023. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 5.45% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.37 billion, showing a 2.84% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.47 per share and a revenue of $20.6 billion, indicating changes of +3.95% and +2.5%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for General Mills. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system 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 witnessed a 0.27% decrease. General Mills presently features a Zacks Rank of #4 (Sell).
Digging into valuation, General Mills currently has a Forward P/E ratio of 14.65. This expresses a discount compared to the average Forward P/E of 17.07 of its industry.
We can also see that GIS currently has a PEG ratio of 2.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Mills, Inc. (GIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Simultaneously, our latest consensus estimate expects the revenue to be $5.37 billion, showing a 2.84% escalation compared to the year-ago quarter. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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General Mills (GIS) closed at $66.08 in the latest trading session, marking a +0.93% move from the prior day. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices. Click to get this free report General Mills, Inc. (GIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.47 per share and a revenue of $20.6 billion, indicating changes of +3.95% and +2.5%, respectively, from the former year. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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General Mills (GIS) closed at $66.08 in the latest trading session, marking a +0.93% move from the prior day. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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7b4895f7-5b5d-4ec1-883b-a50b8ac66055
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713767.0
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2023-12-11 00:00:00 UTC
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The Ultimate Growth Stock to Buy With $1,000 Right Now
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DCOMP
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https://www.nasdaq.com/articles/the-ultimate-growth-stock-to-buy-with-%241000-right-now-0
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nan
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nan
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There are many ways to approach investing.
Warren Buffett and his followers like to take a value-focused approach. But this isn't the only way to be successful in the stock market.
Another strategy is to look at growth stocks -- shares of businesses whose metrics are rapidly rising with each passing year. Even a $1,000 investment can grow to immense wealth over long periods of time with such stocks. A company such as Amazon (NASDAQ: AMZN) falls into this category.
If you have $1,000 to invest, this tech behemoth would likely make for a smart addition to your portfolio. Here's why.
Fundamental improvements
Like most other businesses, Amazon was dealing with a slowdown last year, thanks primarily to an uncertain economic backdrop. Rapidly rising interest rates and stubborn inflation pressured consumer spending and led enterprises to cut IT costs, both of which negatively impacted Amazon.
The company's sales were up just 9.4% in 2022, a much slower pace of change than the 21.7% gain posted in 2021.
However, the data from the third quarter data shows that things are picking back up. Revenue totaled $143.1 billion during the three-month period, up 12.6% year over year. This marked the third straight quarter that sales growth accelerated. It could be a clear sign that the worst is behind us now, and that Amazon will see its gains start to benefit from strong momentum.
There are also obvious improvements to Amazon's bottom line. Operating income more than quadrupled in Q3 compared to the year-ago period.
This year, Amazon has made it a focus to undergo major cost cuts and other efficiency-driving measures to rightsize its operations. This was perhaps necessary, following outsize capital investments made during the pandemic-fueled boom in demand.
Take a look at Amazon's massive logistics footprint. "Our move earlier this year from a single national fulfillment network in the U.S. to eight distinct regions represented one of the most significant changes to our fulfillment network in our history," CEO Andy Jassy highlighted on the Q3 2023 earnings call.
The results so far have been fantastic. Amazon highlighted having fewer inventory touch points and shorter distances to delivery, leading to lower costs and faster shipments to customers. It seems like a winning strategy.
For the current quarter, executives forecast revenue growth of between 7% and 12%, which would be healthy. A particularly strong holiday shopping period in the U.S. can provide an added boost.
Multiple advantages
Long-term investors should try to identify any notable advantages that a business might have that allows it to outcompete rivals in the industry. Capitalism breeds intense competition, so it's essential to find companies that are well positioned to defend themselves.
Amazon absolutely shines in this regard. I can find two distinct advantages that give me confidence in this business and its staying power.
Let's go back to the company's logistics network. The sheer scale of this operation is exemplified by the fact that Amazon delivers more packages than UPS or FedEx.
This shows just how difficult it would be for any subscale e-commerce platform to successfully compete with Amazon's well-oiled machine. Amazon possesses the technological and physical infrastructure to more cost-effectively deliver packages, while providing consumers with the best possible experience.
Another advantage Amazon has comes from the massive amounts of data that this business is able to collect from its customer base. This includes individuals and merchants on the e-commerce site, as well as enterprise-level and government clients at Amazon Web Services, the cloud division.
As the world continues to become increasingly digital, data is the new oil. However, data is a commodity that is seemingly infinite. And businesses that are better able to harness the data they collect in a safe and compliant way can utilize this advantage to improve products and services and better serve customers. And these companies will be the long-term winners.
So, a $1,000 investment in this FAANG stock right now looks like a smart move.
10 stocks we like better than Amazon
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and FedEx. The Motley Fool recommends United Parcel Service. 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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Rapidly rising interest rates and stubborn inflation pressured consumer spending and led enterprises to cut IT costs, both of which negatively impacted Amazon. Amazon highlighted having fewer inventory touch points and shorter distances to delivery, leading to lower costs and faster shipments to customers. And businesses that are better able to harness the data they collect in a safe and compliant way can utilize this advantage to improve products and services and better serve customers.
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Amazon possesses the technological and physical infrastructure to more cost-effectively deliver packages, while providing consumers with the best possible experience. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Amazon and FedEx.
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Another advantage Amazon has comes from the massive amounts of data that this business is able to collect from its customer base. 10 stocks we like better than Amazon When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 4, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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There are many ways to approach investing. However, the data from the third quarter data shows that things are picking back up. Let's go back to the company's logistics network.
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f5c45d0d-0fa7-4dd7-8876-d01f565b9de8
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713768.0
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2023-12-11 00:00:00 UTC
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Here's Why You Should Invest in Voya Financial (VOYA) Stock
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DCOMP
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https://www.nasdaq.com/articles/heres-why-you-should-invest-in-voya-financial-voya-stock
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nan
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nan
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Voya Financial, Inc.’s VOYA strategic acquisitions, favorable retention, positive impacts of the Benefitfocus acquisition, improved investment income, stronger surplus income and sufficient liquidity make it worth retaining in one’s portfolio.
Growth Projections
The consensus estimate for 2024 earnings is pegged at $8.87 per share, indicating a 17.7% increase from the year-ago reported figure on 4.8% higher revenues of $1.31 billion.
Earnings Surprise History
Voya Financial has a solid earnings surprise history. It beat estimates in three of the last four quarters and missed in one, the average being 13.12%.
Zacks Rank & Price Performance
VOYA currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 19.7%, outperforming the industry’s rise of 15.9%.
Image Source: Zacks Investment Research
Return on Equity
The life insurer’s trailing 12-month return on equity was 16.9% in the third quarter of 2023, which expanded 560 basis points year over year. The figure reflects its efficiency in utilizing its shareholders’ funds.
Business Tailwinds
VOYA’s earnings are driven by its solid segmental performances across Wealth Solutions, Investment Management and Health Solutions. These businesses are higher-growth, higher-return and capital-light units, boasting the company’s solid presence in the market.
The Wealth Solutions segment is steadily witnessing significant growth on the back of continued strength in underlying business results, higher surplus income, lower credited interest, improved investment income, weaker fee-based margin, a favorable change in deferred acquisition costs, and value of business acquired and lower administrative expenses. In Wealth Solutions, full-service recurring deposits should continue to gain from growth in the corporate markets.
The Investment Management segment should gain from higher investment capital returns due to its overall market performance and improved fee revenues, driven by higher average equity markets and positive net flows.
VOYA is constantly taking strategic steps to ramp up growth in its Investment Management segment. Voya Financial and Allianz Global Investors inked a long-term strategic partnership that added scale and diversification to Voya Investment Management. The transaction is expected to be accretive to VOYA’s adjusted operating earnings per share, which is estimated at 6-8% for 2023. In addition, Voya Investment Management’s adjusted operating margin is expected to increase 29-31% in 2023 and 30-32% in 2024.
The Health Solutions segment of Voya Financial is likely to benefit from growth across all product lines, favorable retention and the positive impacts of the Benefitfocus acquisition.
The company’s capital levels remain strong. As of Sep 30, 2023, the estimated combined risk-based capital ratio, with adjustments for certain intercompany transactions, was 403%. VOYA’s organic capital generation demonstrates the high free cash flow generation of businesses. This financial flexibility provides strength to the insurer.
Operational excellence has been helping the company to deploy capital for enhancing shareholders’ value. Increasing the dividend continues to reflect its confidence in the stability of cash flows at more than 90% free cash flow conversion and will help broaden the insurer’s investor base.
Stocks to Consider
Some better-ranked stocks from the life-insurance industry are Reinsurance Group of America, Incorporated RGA, Primerica, Inc. PRI and GoHealth, Inc. GOCO, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Reinsurance Group has a decent record of beating the earnings surprise in three of the last four quarters, while missing once, the average beat being 18.81%.
The Zacks Consensus Estimate for RGA’s 2023 and 2024 earnings has moved 3.5% and 2.3% north, respectively, in the past 30 days. In the past year, RGA’s shares have gained 22.6%.
Primerica has a decent record of beating the earnings surprise in each of the last four quarters, the average beat being 7.84%.
The Zacks Consensus Estimate for PRI’s 2023 and 2024 earnings per share indicates year-over-year increases of 39.8% and 9.8%, respectively. In the past year, PRI shares have gained 51.7%.
The Zacks Consensus Estimate for GoHealth’s 2023 and 2024 revenues indicates year-over-year increases of 29.9% and 8.5%, respectively.
The Zacks Consensus Estimate for GOCO’s 2023 and 2024 earnings per share indicates year-over-year increases of 77.8% and 40.9%, respectively. In the past year, shares of GOCO have lost 5.3%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
Primerica, Inc. (PRI) : Free Stock Analysis Report
Voya Financial, Inc. (VOYA) : Free Stock Analysis Report
GoHealth, Inc. (GOCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth Projections The consensus estimate for 2024 earnings is pegged at $8.87 per share, indicating a 17.7% increase from the year-ago reported figure on 4.8% higher revenues of $1.31 billion. The Health Solutions segment of Voya Financial is likely to benefit from growth across all product lines, favorable retention and the positive impacts of the Benefitfocus acquisition. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Voya Financial, Inc.’s VOYA strategic acquisitions, favorable retention, positive impacts of the Benefitfocus acquisition, improved investment income, stronger surplus income and sufficient liquidity make it worth retaining in one’s portfolio. Stocks to Consider Some better-ranked stocks from the life-insurance industry are Reinsurance Group of America, Incorporated RGA, Primerica, Inc. PRI and GoHealth, Inc. GOCO, carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report Voya Financial, Inc. (VOYA) : Free Stock Analysis Report GoHealth, Inc. (GOCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Voya Financial, Inc.’s VOYA strategic acquisitions, favorable retention, positive impacts of the Benefitfocus acquisition, improved investment income, stronger surplus income and sufficient liquidity make it worth retaining in one’s portfolio. The Investment Management segment should gain from higher investment capital returns due to its overall market performance and improved fee revenues, driven by higher average equity markets and positive net flows. Click to get this free report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report Voya Financial, Inc. (VOYA) : Free Stock Analysis Report GoHealth, Inc. (GOCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Business Tailwinds VOYA’s earnings are driven by its solid segmental performances across Wealth Solutions, Investment Management and Health Solutions. The transaction is expected to be accretive to VOYA’s adjusted operating earnings per share, which is estimated at 6-8% for 2023. Stocks to Consider Some better-ranked stocks from the life-insurance industry are Reinsurance Group of America, Incorporated RGA, Primerica, Inc. PRI and GoHealth, Inc. GOCO, carrying a Zacks Rank #2 (Buy) at present.
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918a59c8-4f6e-4743-b6ee-314b3680edf0
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713769.0
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2023-12-11 00:00:00 UTC
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Vertiv Holdings Co. (VRT) is Attracting Investor Attention: Here is What You Should Know
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DCOMP
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https://www.nasdaq.com/articles/vertiv-holdings-co.-vrt-is-attracting-investor-attention%3A-here-is-what-you-should-know-0
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nan
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nan
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Vertiv Holdings Co. (VRT) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned +10.2%, compared to the Zacks S&P 500 composite's +6.9% change. During this period, the Zacks Computers - IT Services industry, which Vertiv Holdings Co. falls in, has gained 9.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Vertiv Holdings Co. is expected to post earnings of $0.53 per share, indicating a change of +89.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.74 points to a change of +228.3% from the prior year. Over the last 30 days, this estimate has changed +1.4%.
For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +26.8% from what Vertiv Holdings Co. is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertiv Holdings Co. is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Vertiv Holdings Co. the consensus sales estimate of $1.87 billion for the current quarter points to a year-over-year change of +13.2%. The $6.87 billion and $7.5 billion estimates for the current and next fiscal years indicate changes of +20.7% and +9.2%, respectively.
Last Reported Results and Surprise History
Vertiv Holdings Co. reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +17.7%. EPS of $0.52 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $1.75 billion, the reported revenues represent a surprise of -0.5%. The EPS surprise was +18.18%.
Over the last four quarters, Vertiv Holdings Co. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Vertiv Holdings Co. is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertiv Holdings Co. However, its Zacks Rank #1 does suggest that it may 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
Vertiv Holdings Co. (VRT) : 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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We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertiv Holdings Co. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
|
For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +26.8% from what Vertiv Holdings Co. is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertiv Holdings Co. is rated Zacks Rank #1 (Strong Buy). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +26.8% from what Vertiv Holdings Co. is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertiv Holdings Co. is rated Zacks Rank #1 (Strong Buy). Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +26.8% from what Vertiv Holdings Co. is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertiv Holdings Co. is rated Zacks Rank #1 (Strong Buy).
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4fedbad5-4431-4d27-8732-0cfc5f9a194c
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713770.0
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2023-12-11 00:00:00 UTC
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Snap Inc. (SNAP) Is a Trending Stock: Facts to Know Before Betting on It
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DCOMP
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https://www.nasdaq.com/articles/snap-inc.-snap-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-0
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nan
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nan
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Snap (SNAP) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company behind Snapchat have returned +34.8% over the past month versus the Zacks S&P 500 composite's +6.9% change. The Zacks Internet - Software industry, to which Snap belongs, has gained 9.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Snap is expected to post earnings of $0.05 per share for the current quarter, representing a year-over-year change of -64.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.7%.
The consensus earnings estimate of $0.05 for the current fiscal year indicates a year-over-year change of -70.6%. This estimate has changed +0.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.13 indicates a change of +147.5% from what Snap is expected to report a year ago. Over the past month, the estimate has changed +8.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Snap is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Snap, the consensus sales estimate for the current quarter of $1.36 billion indicates a year-over-year change of +4.3%. For the current and next fiscal years, $4.6 billion and $5.19 billion estimates indicate 0% and +12.8% changes, respectively.
Last Reported Results and Surprise History
Snap reported revenues of $1.19 billion in the last reported quarter, representing a year-over-year change of +5.3%. EPS of $0.02 for the same period compares with $0.08 a year ago.
Compared to the Zacks Consensus Estimate of $1.11 billion, the reported revenues represent a surprise of +7.55%. The EPS surprise was +150%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snap is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snap. However, its Zacks Rank #3 does suggest that it may perform in line with 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
Snap Inc. (SNAP) : 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 is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snap. 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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For the next fiscal year, the consensus earnings estimate of $0.13 indicates a change of +147.5% from what Snap is expected to report a year ago. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Snap is rated Zacks Rank #3 (Hold). Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. For the next fiscal year, the consensus earnings estimate of $0.13 indicates a change of +147.5% from what Snap is expected to report a year ago. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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5f256250-8cc0-4b7b-81f8-dcd9ea5e703f
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713771.0
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2023-12-11 00:00:00 UTC
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First Solar, Inc. (FSLR) is Attracting Investor Attention: Here is What You Should Know
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DCOMP
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https://www.nasdaq.com/articles/first-solar-inc.-fslr-is-attracting-investor-attention%3A-here-is-what-you-should-know-4
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nan
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nan
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First Solar (FSLR) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this largest U.S. solar company have returned -3.8% over the past month versus the Zacks S&P 500 composite's +6.9% change. The Zacks Solar industry, to which First Solar belongs, has gained 21.8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
First Solar is expected to post earnings of $3.27 per share for the current quarter, representing a year-over-year change of +4,771.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.6%.
For the current fiscal year, the consensus earnings estimate of $7.78 points to a change of +1,997.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $13.23 indicates a change of +70% from what First Solar is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for First Solar.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of First Solar, the consensus sales estimate of $1.31 billion for the current quarter points to a year-over-year change of +31%. The $3.47 billion and $4.58 billion estimates for the current and next fiscal years indicate changes of +32.5% and +32%, respectively.
Last Reported Results and Surprise History
First Solar reported revenues of $801.09 million in the last reported quarter, representing a year-over-year change of +27.4%. EPS of $2.50 for the same period compares with -$0.46 a year ago.
Compared to the Zacks Consensus Estimate of $900.91 million, the reported revenues represent a surprise of -11.08%. The EPS surprise was +19.62%.
Over the last four quarters, First Solar surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
First Solar is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about First Solar. However, its Zacks Rank #3 does suggest that it may perform in line with 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
First Solar, Inc. (FSLR) : 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.
|
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about First Solar. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
|
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for First Solar. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. Over the last 30 days, the Zacks Consensus Estimate has changed -1.6%. For the next fiscal year, the consensus earnings estimate of $13.23 indicates a change of +70% from what First Solar is expected to report a year ago.
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cbcca672-f53b-4965-adee-a328b5c2a826
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713772.0
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2023-12-11 00:00:00 UTC
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Investors Heavily Search Kinsale Capital Group, Inc. (KNSL): Here is What You Need to Know
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DCOMP
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https://www.nasdaq.com/articles/investors-heavily-search-kinsale-capital-group-inc.-knsl%3A-here-is-what-you-need-to-know-1
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nan
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nan
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Kinsale Capital Group, Inc. (KNSL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned -0.1%, compared to the Zacks S&P 500 composite's +6.9% change. During this period, the Zacks Insurance - Property and Casualty industry, which Kinsale Capital Group, Inc. falls in, has gained 3.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Kinsale Capital Group, Inc. is expected to post earnings of $3.44 per share, indicating a change of +32.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $12.06 points to a change of +54.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $14.72 indicates a change of +22% from what Kinsale Capital Group, Inc. is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinsale Capital Group, Inc. is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Kinsale Capital Group, Inc. the consensus sales estimate of $334.27 million for the current quarter points to a year-over-year change of +37.6%. The $1.21 billion and $1.53 billion estimates for the current and next fiscal years indicate changes of +47.4% and +26.3%, respectively.
Last Reported Results and Surprise History
Kinsale Capital Group, Inc. reported revenues of $314.37 million in the last reported quarter, representing a year-over-year change of +44.9%. EPS of $3.31 for the same period compares with $1.64 a year ago.
Compared to the Zacks Consensus Estimate of $320.53 million, the reported revenues represent a surprise of -1.92%. The EPS surprise was +12.97%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Kinsale Capital Group, Inc. is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinsale Capital Group, Inc. However, its Zacks Rank #2 does suggest that it may 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
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinsale Capital Group, Inc. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains.
|
For the next fiscal year, the consensus earnings estimate of $14.72 indicates a change of +22% from what Kinsale Capital Group, Inc. is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinsale Capital Group, Inc. is rated Zacks Rank #2 (Buy). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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For the next fiscal year, the consensus earnings estimate of $14.72 indicates a change of +22% from what Kinsale Capital Group, Inc. is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinsale Capital Group, Inc. is rated Zacks Rank #2 (Buy). Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. For the next fiscal year, the consensus earnings estimate of $14.72 indicates a change of +22% from what Kinsale Capital Group, Inc. is expected to report a year ago. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinsale Capital Group, Inc. is rated Zacks Rank #2 (Buy).
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c54f33e3-0911-408d-a165-57a18294fe7d
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713773.0
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2023-12-11 00:00:00 UTC
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MongoDB, Inc. (MDB) Is a Trending Stock: Facts to Know Before Betting on It
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DCOMP
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https://www.nasdaq.com/articles/mongodb-inc.-mdb-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-2
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nan
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nan
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MongoDB (MDB) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this database platform have returned +4.7%, compared to the Zacks S&P 500 composite's +6.9% change. During this period, the Zacks Internet - Software industry, which MongoDB falls in, has gained 9.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, MongoDB is expected to post earnings of $0.46 per share, indicating a change of -19.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +6.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.90 points to a change of +258% from the prior year. Over the last 30 days, this estimate has changed +24.4%.
For the next fiscal year, the consensus earnings estimate of $3.20 indicates a change of +10.2% from what MongoDB is expected to report a year ago. Over the past month, the estimate has changed +14.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, MongoDB is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of MongoDB, the consensus sales estimate of $431.99 million for the current quarter points to a year-over-year change of +19.6%. The $1.66 billion and $2.01 billion estimates for the current and next fiscal years indicate changes of +29% and +21.5%, respectively.
Last Reported Results and Surprise History
MongoDB reported revenues of $432.94 million in the last reported quarter, representing a year-over-year change of +29.8%. EPS of $0.96 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $402.75 million, the reported revenues represent a surprise of +7.5%. The EPS surprise was +95.92%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
MongoDB is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about MongoDB. However, its Zacks Rank #2 does suggest that it may 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
MongoDB, Inc. (MDB) : 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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We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. 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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A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, MongoDB is rated Zacks Rank #2 (Buy). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, MongoDB is rated Zacks Rank #2 (Buy). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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And if earnings estimates go up for a company, the fair value for its stock goes up. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, MongoDB is rated Zacks Rank #2 (Buy). EPS of $0.96 for the same period compares with $0.23 a year ago.
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2967e23f-0396-4942-a6cc-3b4a7c3c8aa9
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713774.0
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2023-12-11 00:00:00 UTC
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Toll Brothers Inc. (TOL) Is a Trending Stock: Facts to Know Before Betting on It
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DCOMP
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https://www.nasdaq.com/articles/toll-brothers-inc.-tol-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-0
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nan
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nan
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Toll Brothers (TOL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this home builder have returned +13.2% over the past month versus the Zacks S&P 500 composite's +6.9% change. The Zacks Building Products - Home Builders industry, to which Toll Brothers belongs, has gained 17.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Toll Brothers is expected to post earnings of $1.78 per share for the current quarter, representing a year-over-year change of +4.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
For the current fiscal year, the consensus earnings estimate of $12.13 points to a change of -1.9% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $12.46 indicates a change of +2.8% from what Toll Brothers is expected to report a year ago. Over the past month, the estimate has changed -3.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toll Brothers.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Toll Brothers, the consensus sales estimate of $1.86 billion for the current quarter points to a year-over-year change of +4.6%. The $9.87 billion and $10.09 billion estimates for the current and next fiscal years indicate changes of -1.3% and +2.2%, respectively.
Last Reported Results and Surprise History
Toll Brothers reported revenues of $3.02 billion in the last reported quarter, representing a year-over-year change of -18.6%. EPS of $4.11 for the same period compares with $4.67 a year ago.
Compared to the Zacks Consensus Estimate of $2.78 billion, the reported revenues represent a surprise of +8.62%. The EPS surprise was +12.3%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toll Brothers is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toll Brothers. However, its Zacks Rank #3 does suggest that it may perform in line with 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
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toll Brothers. 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 chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Last Reported Results and Surprise History Toll Brothers reported revenues of $3.02 billion in the last reported quarter, representing a year-over-year change of -18.6%. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toll Brothers. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. For the next fiscal year, the consensus earnings estimate of $12.46 indicates a change of +2.8% from what Toll Brothers is expected to report a year ago. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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4d14e80f-5a32-4ab9-bedc-20ed39e508de
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713775.0
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2023-12-11 00:00:00 UTC
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Why Fast-paced Mover Dream Finders Homes (DFH) Is a Great Choice for Value Investors
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DCOMP
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https://www.nasdaq.com/articles/why-fast-paced-mover-dream-finders-homes-dfh-is-a-great-choice-for-value-investors
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nan
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nan
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Dream Finders Homes Inc. (DFH) is one of them. Here are the key reasons why this stock is a great candidate.
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 12.5% over the past four weeks positions the stock of this homebuilder well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. DFH meets this criterion too, as the stock gained 18.5% over the past 12 weeks.
Moreover, the momentum for DFH is fast paced, as the stock currently has a beta of 1.8. This indicates that the stock moves 80% higher than the market in either direction.
Given this price performance, it is no surprise that DFH has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DFH earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, DFH is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. DFH is currently trading at 0.69 times its sales. In other words, investors need to pay only 69 cents for each dollar of sales.
So, DFH appears to have plenty of room to run, and that too at a fast pace.
In addition to DFH, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DFH is trading at a reasonable valuation. 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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While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DFH earn a Zacks Rank #1 (Strong Buy). Click to get this free report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that DFH has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DFH is trading at a reasonable valuation.
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Given this price performance, it is no surprise that DFH has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to DFH, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Want the latest recommendations from Zacks Investment Research?
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66e4ea58-d3ac-4795-ba3b-2aee16bebfd5
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713776.0
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2023-12-11 00:00:00 UTC
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Here's Why 'Trend' Investors Would Love Betting on Sterling Infrastructure (STRL)
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DCOMP
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https://www.nasdaq.com/articles/heres-why-trend-investors-would-love-betting-on-sterling-infrastructure-strl
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nan
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nan
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Sterling Infrastructure (STRL) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. STRL is quite a good fit in this regard, gaining 3.2% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 14.7% over the past four weeks ensures that the trend is still in place for the stock of this civil construction company.
Moreover, STRL is currently trading at 86.6% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in STRL may not reverse anytime soon.
In addition to STRL, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Sterling Infrastructure, Inc. (STRL) : 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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Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. In addition to STRL, there are several other stocks that currently pass through our "Recent Price Strength" screen. Want the latest recommendations from Zacks Investment Research?
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59ee053e-8ed5-4bbb-a986-7c72604df98f
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713777.0
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2023-12-11 00:00:00 UTC
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Booking Holdings Inc. (BKNG) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/booking-holdings-inc.-bkng-hits-fresh-high%3A-is-there-still-room-to-run-1
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nan
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nan
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Have you been paying attention to shares of Booking Holdings (BKNG)? Shares have been on the move with the stock up 9.7% over the past month. The stock hit a new 52-week high of $3433.4 in the previous session. Booking Holdings has gained 69.9% since the start of the year compared to the 25% move for the Zacks Retail-Wholesale sector and the 51.2% return for the Zacks Internet - Commerce industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 2, 2023, Booking Holdings reported EPS of $72.32 versus consensus estimate of $67.86 while it beat the consensus revenue estimate by 1.54%.
For the current fiscal year, Booking Holdings is expected to post earnings of $149.29 per share on $21.22 billion in revenues. This represents a 49.55% change in EPS on a 24.19% change in revenues. For the next fiscal year, the company is expected to earn $177.47 per share on $23.58 billion in revenues. This represents a year-over-year change of 18.87% and 11.08%, respectively.
Valuation Metrics
Booking Holdings may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Booking Holdings has a Value Score of C. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 21.8X. On a trailing cash flow basis, the stock currently trades at 29.9X versus its peer group's average of 17X. Additionally, the stock has a PEG ratio of 1.06. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Booking Holdings currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Booking Holdings meets the list of requirements. Thus, it seems as though Booking Holdings shares could have a bit more room to run in the near term.
How Does BKNG Stack Up to the Competition?
Shares of BKNG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MercadoLibre, Inc. (MELI). MELI has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. MercadoLibre, Inc. beat our consensus estimate by 22.39%, and for the current fiscal year, MELI is expected to post earnings of $34.76 per share on revenue of $14.35 billion.
Shares of MercadoLibre, Inc. have gained 11.8% over the past month, and currently trade at a forward P/E of 70.72X and a P/CF of 91.62X.
The Internet - Commerce industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BKNG and MELI, even beyond their own solid fundamental situation.
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
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fortunately, Booking Holdings currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. MercadoLibre, Inc. beat our consensus estimate by 22.39%, and for the current fiscal year, MELI is expected to post earnings of $34.76 per share on revenue of $14.35 billion. 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 its last earnings report on November 2, 2023, Booking Holdings reported EPS of $72.32 versus consensus estimate of $67.86 while it beat the consensus revenue estimate by 1.54%. For the current fiscal year, Booking Holdings is expected to post earnings of $149.29 per share on $21.22 billion in revenues. Click to get this free report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Booking Holdings has a Value Score of C. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Booking Holdings meets the list of requirements. Click to get this free report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the current fiscal year, Booking Holdings is expected to post earnings of $149.29 per share on $21.22 billion in revenues. For the next fiscal year, the company is expected to earn $177.47 per share on $23.58 billion in revenues. Valuation Metrics Booking Holdings may be at a 52-week high right now, but what might the future hold for the stock?
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b7b5615a-7d9b-4eee-9c73-4dae4995c726
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713778.0
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2023-12-11 00:00:00 UTC
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Ligand Pharmaceuticals (LGND) Just Overtook the 200-Day Moving Average
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https://www.nasdaq.com/articles/ligand-pharmaceuticals-lgnd-just-overtook-the-200-day-moving-average
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Ligand Pharmaceuticals (LGND) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, LGND crossed above the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
LGND has rallied 19.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests LGND could be on the verge of another move higher.
Once investors consider LGND's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on LGND for more gains in the near future.
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
Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on LGND for more gains in the near future. 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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Once investors consider LGND's positive earnings estimate revisions, the bullish case only solidifies. With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on LGND for more gains in the near future. Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report To read this article on Zacks.com click here.
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With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on LGND for more gains in the near future. Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : 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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Ligand Pharmaceuticals (LGND) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, LGND crossed above the 200-day moving average, suggesting a long-term bullish trend. Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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88bf32cf-1cf0-485a-aa8f-6570f19bea09
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713779.0
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2023-12-11 00:00:00 UTC
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This Activist Investor Got Beyond's CEO Fired, but That Was Just the Start
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https://www.nasdaq.com/articles/this-activist-investor-got-beyonds-ceo-fired-but-that-was-just-the-start
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A lot is going on at Beyond (NYSE: BYON), which used to be known as Overstock.com and is the parent company of Bed Bath & Beyond. The headline-grabbing story at the moment is that JAT Capital is waging a very open fight with the company that resulted in CEO Jonathan Johnson being fired.
Despite the change in leadership, the activist investor is still not happy and investors need to understand that there's more to this drama than meets the eye. Also, the drama applies to more than just Beyond.
A brief Overstock.com timeline
To understand the situation at the company now known as Beyond, you need to go back to the point where it was known as Overstock.com. When the company was founded, it mostly sold discounted goods that it sourced from other retailers, or overstocked items. To get rid of the inventory, retailers sold it to Overstock.com at a steep discount and Overstock then passed on a portion of the savings to its online customers (pocketing the remainder as revenue).
Over time, however, Overstock shifted its business more toward selling home goods.
Image source: Getty Images.
So when Bed Bath & Beyond went bankrupt, Overstock.com saw an opportunity to step in and acquire a recognized brand name. Overstock.com rebranded its online store as Bed Bath & Beyond. The two businesses sold similar items, so it seemed like the transition should have been pretty simple. It also changed its name to Beyond to better represent its new identity.
But there's a lot of work that goes into a major corporate rebranding like this.
Minority shareholder JAT Capital wasn't happy with the way things were going and voiced its displeasure behind the scenes. According to JAT Capital, Beyond largely ignored it, leading to JAT Capital issuing an open letter. Tossing the CEO was one of the headline-grabbing requests, and it happened. Many of JAT Capital's other requests, however, were ignored, such as installing a specific board member as the new CEO. JAT Capital wrote another open letter essentially questioning the board's actions, which the activist basically said were not shareholder-friendly.
The truth is that most investors should be watching this fight from the sidelines. There's a lot of change taking place at Beyond and going through a CEO transition right now isn't exactly great timing. There's a lot that could go wrong without stability at the top and the fight with JAT Capital only makes the situation that much more difficult.
What does JAT really want?
From a fairly simplistic perspective, JAT Capital wants Beyond to do what it says. More specifically, JAT Capital is upset because it believes there are logical steps that should be taken that aren't being taken. And, more to the point, the board isn't willing to have a conversation about it. More than a fight over who the CEO is, this is really a fight over how the company is being run. And JAT Capital, which owns around 9.6% of the company's shares, suspects Beyond isn't being run for the benefit of investors.
From an everyday investor perspective, this is high drama on Wall Street. But it is worth considering more deeply the value of shareholder-friendly management. For example, at one point Energy Transfer agreed to buy Williams Companies. But Energy Transfer got cold feet and tried to scuttle the deal, as it might require a dividend cut or an unwieldy level of debt. The Motley Fool's Matthew DiLallo dug into this in great detail at the time, but part of that effort to kill the merger included the company selling convertible shares to the CEO. Those converts would have basically protected him from a dividend cut should one have come about. That's a move that should have tarnished any trust Energy Transfer had built up with shareholders.
That's not the only negative event that you'll find when it comes to corporate governance. The name Enron will forever be enshrined in Wall Street's hall of shame for the accounting games it played. That company went bankrupt. And let's not forget about the poorly thought out and monitored incentives at Wells Fargo that resulted in employees opening up fraudulent bank accounts. The company paid huge fines and destroyed a material amount of shareholder value even though it is still around.
There are smaller examples, as well. In late 2015, Kinder Morgan told investors to expect a dividend increase of as much as 10% in 2016. Less than two months later it announced a 75% dividend cut. The cut made business sense given the environment at the time in the energy sector, but it was not a shareholder-friendly move, particularly given previous management statements.
Invest like you are buying the whole company
While it is easy to see stocks as little more than a blip of information on a computer screen, they represent ownership in a company. Whether you are buying one share or 1 million shares, you should be thinking as if you are buying the entire company. The board of directors is supposed to operate on your behalf and you have every right to expect it to do so. If things happen that don't seem to make sense to you or look outright unfriendly to shareholders, you might want to rethink your investment.
JAT Capital has enough clout, via its large ownership stake, to push for change, but you probably won't. It is far better to stick with companies that have proven track records of acting in shareholder-friendly ways. The drama at Beyond is an important reminder of this fact.
Should you invest $1,000 in Beyond, Inc. right now?
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*Stock Advisor returns as of December 11, 2023
Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool recommends Beyond, Inc. 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 headline-grabbing story at the moment is that JAT Capital is waging a very open fight with the company that resulted in CEO Jonathan Johnson being fired. To get rid of the inventory, retailers sold it to Overstock.com at a steep discount and Overstock then passed on a portion of the savings to its online customers (pocketing the remainder as revenue). The Motley Fool's Matthew DiLallo dug into this in great detail at the time, but part of that effort to kill the merger included the company selling convertible shares to the CEO.
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When the company was founded, it mostly sold discounted goods that it sourced from other retailers, or overstocked items. The Motley Fool's Matthew DiLallo dug into this in great detail at the time, but part of that effort to kill the merger included the company selling convertible shares to the CEO. Before you buy stock in Beyond, Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Beyond, Inc. wasn't one of them.
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And JAT Capital, which owns around 9.6% of the company's shares, suspects Beyond isn't being run for the benefit of investors. Before you buy stock in Beyond, Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Beyond, Inc. wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Wells Fargo is an advertising partner of The Ascent, a Motley Fool company.
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Despite the change in leadership, the activist investor is still not happy and investors need to understand that there's more to this drama than meets the eye. Before you buy stock in Beyond, Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Beyond, Inc. wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Wells Fargo is an advertising partner of The Ascent, a Motley Fool company.
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368c6f9c-b56b-4822-8cbb-2282a4b2bf6e
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713780.0
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2023-12-11 00:00:00 UTC
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Zacks.com featured highlights include JAKKS Pacific, GIII Apparel Group, Brinker International and CNA Financial
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-jakks-pacific-giii-apparel-group-brinker
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For Immediate Release
Chicago, IL – December 14, 2023 – Stocks in this week’s article are JAKKS Pacific JAKK, GIII Apparel Group GIII, Brinker International EAT and CNA Financial CNA.
4 Stocks Trading Near 52-Week Highs with More Upside Potential
Investors generally consider 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as JAKKS Pacific, GIII Apparel Group, Brinker International and CNA Financial are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on "buy high, sell higher."
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors' focus (or willingness to pay the premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are our four picks of the 14 stocks that made it through the screen:
JAKKS Pacific is a multi-brand company that has been designing and marketing a broad range of toys and consumer products since 1995. The company is capitalizing on its well-established global presence, emphasis on inventive approaches, and partnerships with renowned brands and film franchises.
We consider the company's ability to successfully identify, close and integrate acquisitions to be one of its primary competitive advantages. Meanwhile, it has collaborations with Disney, Skechers, Nickelodeon, Cabbage Patch Kids and Chico to manufacture toys and merchandise related to these brands. JAKK focuses on expanding its reach to include prominent accounts such as Macy's and Amazon in the United States and Sainsbury's in the U.K.
The Zacks Consensus Estimate for JAKK's 2023 earnings has moved north by 13.9% to $5.17 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 61.8%.
G-III Apparel Group is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. G-III Apparel's strategic priorities include driving power brands across categories, enhancing its portfolio via ownership of brands and licensing opportunities, expanding its global reach, maximizing omnichannel capabilities and scaling the private label business.
G-III Apparel has also been making progress on rightsizing the inventory. Management remains optimistic about the company's diversified portfolio of key brands, namely DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, Nautica and Halston.
The Zacks Consensus Estimate for GIII's fiscal 2024 earnings has increased by 15.9% to $3.79 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 541.81%.
Brinker International owns, operates, develops and franchises various restaurants under Chili's Grill & Bar (Chili's) and Maggiano's Little Italy (Maggiano's) brands. Brinker remains steadfast in its goal to drive traffic and revenues through a range of sales-building initiatives such as streamlining its menu and its innovation, strengthening its value proposition, improving food presentation and launching advertising campaigns.
The company is benefiting from improved menu pricing and a favorable menu item mix. Also, focus on various sales-building and expansion initiatives bodes well. The company continues to focus on Chili's international expansion through development agreements with new and existing franchise partners. Chili's turnaround strategies yielded positive results, with traffic and sales moving in a positive direction. The company emphasizes the brand's new restaurant development to drive growth. Chili's has 11-12 new domestic openings and 19-24 new international openings scheduled for fiscal 2024. Brinker is also developing a more advanced CRM program to boost customer frequency.
The Zacks Consensus Estimate for EAT's fiscal 2024 earnings has increased 0.8% to $3.57 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 223.6%.
CNA Financial is one of the most versatile property and casualty (P&C) insurers, maintaining combined ratio at favorable levels despite a tough operating environment. This, in turn, leads to underwriting profitability. It offers commercial P&C insurance products, mainly across the United States. CNA Financial remains well-poised to gain from a rise in new businesses, strong rate, lower net catastrophe losses, improved non-catastrophe current accident year underwriting results and higher net earned premium, which contribute to premium growth across its Specialty, Commercial and International segments.
CNA Financial's fixed-income investment strategy with the highest allocations to diversified investment grade corporates as well as highly rated municipal securities should support investment results in the near term. CNA has been able to maintain the underlying combined ratio below 95 for 13 straight quarters. Through targeted portfolio management strategies, the company made significant progress in successfully repositioning the portfolio underwritten via Lloyd's syndicate in its effort to improve the overall underwriting results of its international operation.
The Zacks Consensus Estimate for CNA's 2023 earnings has increased 0.5% to $4.41 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 9.24%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2197145/4-stocks-trading-near-52-week-high-with-more-upside-potential
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
CNA Financial Corporation (CNA) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. Management remains optimistic about the company's diversified portfolio of key brands, namely DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, Nautica and Halston. Brinker remains steadfast in its goal to drive traffic and revenues through a range of sales-building initiatives such as streamlining its menu and its innovation, strengthening its value proposition, improving food presentation and launching advertising campaigns.
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For Immediate Release Chicago, IL – December 14, 2023 – Stocks in this week’s article are JAKKS Pacific JAKK, GIII Apparel Group GIII, Brinker International EAT and CNA Financial CNA. CNA Financial remains well-poised to gain from a rise in new businesses, strong rate, lower net catastrophe losses, improved non-catastrophe current accident year underwriting results and higher net earned premium, which contribute to premium growth across its Specialty, Commercial and International segments. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – December 14, 2023 – Stocks in this week’s article are JAKKS Pacific JAKK, GIII Apparel Group GIII, Brinker International EAT and CNA Financial CNA. Stocks such as JAKKS Pacific, GIII Apparel Group, Brinker International and CNA Financial are expected to maintain their momentum and keep scaling new highs. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Moreover, given the high price, investors often wonder if the stock is overpriced. Stocks such as JAKKS Pacific, GIII Apparel Group, Brinker International and CNA Financial are expected to maintain their momentum and keep scaling new highs. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
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713781.0
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2023-12-11 00:00:00 UTC
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Is Aflac (AFL) Outperforming Other Finance Stocks This Year?
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https://www.nasdaq.com/articles/is-aflac-afl-outperforming-other-finance-stocks-this-year
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Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Aflac (AFL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Aflac is one of 844 companies in the Finance group. The Finance group currently sits at #9 within 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 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. Aflac is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AFL's full-year earnings has moved 5.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, AFL has gained about 16.8% so far this year. In comparison, Finance companies have returned an average of 15.3%. This means that Aflac is performing better than its sector in terms of year-to-date returns.
One other Finance stock that has outperformed the sector so far this year is Assured Guaranty (AGO). The stock is up 17.4% year-to-date.
For Assured Guaranty, the consensus EPS estimate for the current year has increased 59.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Aflac belongs to the Insurance - Accident and Health industry, which includes 5 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, stocks in this group have gained 15.2% this year, meaning that AFL is performing better in terms of year-to-date returns.
Assured Guaranty, however, belongs to the Insurance - Multi line industry. Currently, this 34-stock industry is ranked #27. The industry has moved +5.7% so far this year.
Going forward, investors interested in Finance stocks should continue to pay close attention to Aflac and Assured Guaranty as they could maintain their solid 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. 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
Aflac Incorporated (AFL) : Free Stock Analysis Report
Assured Guaranty Ltd. (AGO) : 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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Aflac (AFL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Going forward, investors interested in Finance stocks should continue to pay close attention to Aflac and Assured Guaranty as they could maintain their solid 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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The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. On average, stocks in this group have gained 15.2% this year, meaning that AFL is performing better in terms of year-to-date returns. Click to get this free report Aflac Incorporated (AFL) : Free Stock Analysis Report Assured Guaranty Ltd. (AGO) : 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. Looking more specifically, Aflac belongs to the Insurance - Accident and Health industry, which includes 5 individual stocks and currently sits at #49 in the Zacks Industry Rank. Click to get this free report Aflac Incorporated (AFL) : Free Stock Analysis Report Assured Guaranty Ltd. (AGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Finance group currently sits at #9 within the Zacks Sector Rank. On average, stocks in this group have gained 15.2% this year, meaning that AFL is performing better in terms of year-to-date returns. The industry has moved +5.7% so far this year.
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fa809d97-71ac-47ea-bf87-83fb99f69266
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713782.0
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2023-12-11 00:00:00 UTC
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Here's Why Choice Hotels (CHH) is a Strong Value Stock
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DCOMP
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https://www.nasdaq.com/articles/heres-why-choice-hotels-chh-is-a-strong-value-stock
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nan
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
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 traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Choice Hotels (CHH)
Choice Hotels International is one of the largest hotel franchisors globally. As of Sep 30, 2023, the company had 7,463 hotels open, representing 627,694 rooms. This hotel chain is spread across 45 countries and territories internationally and is present in 50 states domestically and the District of Columbia.
CHH 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 18.89; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.02 to $6.02 per share. CHH also boasts an average earnings surprise of 5.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CHH should be on investors' short list.
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
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy. 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 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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio. Click to get this free report Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B.
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What are the Zacks Style Scores? The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum. That's where the Style Scores come in.
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7a76c2d2-8d16-4cd8-a45a-706466000f39
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713783.0
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2023-12-11 00:00:00 UTC
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Cencora (COR) is a Top-Ranked Value Stock: Should You Buy?
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DCOMP
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https://www.nasdaq.com/articles/cencora-cor-is-a-top-ranked-value-stock%3A-should-you-buy
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nan
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nan
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The 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?
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
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 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
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cencora (COR)
Chesterbrook, PA-based Cencora is one of the world’s largest pharmaceutical services companies, which focuses on providing drug distribution and related services to reduce health care costs and improve patient outcomes.
COR 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 15.82; value investors should take notice.
For fiscal 2024, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $12.88 per share. COR boasts an average earnings surprise of 3.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, COR should be on investors' short list.
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
Cencora, Inc. (COR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. 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. 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 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. How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio. Click to get this free report Cencora, Inc. (COR) : 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. How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B.
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The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum. That's where the Style Scores come in. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B.
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6d97b834-b8d9-4145-adb6-69c0256e53e3
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713784.0
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2023-12-11 00:00:00 UTC
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Is DexCom (DXCM) Stock Outpacing Its Medical Peers This Year?
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DCOMP
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https://www.nasdaq.com/articles/is-dexcom-dxcm-stock-outpacing-its-medical-peers-this-year
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nan
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Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has DexCom (DXCM) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.
DexCom is a member of the Medical sector. This group includes 1088 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. DexCom is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DXCM's full-year earnings has moved 16.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DXCM has returned about 8% since the start of the calendar year. In comparison, Medical companies have returned an average of -4%. As we can see, DexCom is performing better than its sector in the calendar year.
Exscientia PLC Sponsored ADR (EXAI) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.1%.
The consensus estimate for Exscientia PLC Sponsored ADR's current year EPS has increased 3.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, DexCom belongs to the Medical - Instruments industry, which includes 93 individual stocks and currently sits at #71 in the Zacks Industry Rank. This group has gained an average of 1.6% so far this year, so DXCM is performing better in this area.
On the other hand, Exscientia PLC Sponsored ADR belongs to the Medical - Drugs industry. This 194-stock industry is currently ranked #71. The industry has moved -3.2% year to date.
Investors with an interest in Medical stocks should continue to track DexCom and Exscientia PLC Sponsored ADR. These stocks will be looking to continue their solid 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. 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
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Exscientia PLC Sponsored ADR (EXAI) : 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 consensus estimate for Exscientia PLC Sponsored ADR's current year EPS has increased 3.8% over the past three months. Investors with an interest in Medical stocks should continue to track DexCom and Exscientia PLC Sponsored ADR. 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 consensus estimate for Exscientia PLC Sponsored ADR's current year EPS has increased 3.8% over the past three months. Investors with an interest in Medical stocks should continue to track DexCom and Exscientia PLC Sponsored ADR. Click to get this free report DexCom, Inc. (DXCM) : Free Stock Analysis Report Exscientia PLC Sponsored ADR (EXAI) : 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, DexCom belongs to the Medical - Instruments industry, which includes 93 individual stocks and currently sits at #71 in the Zacks Industry Rank. Click to get this free report DexCom, Inc. (DXCM) : Free Stock Analysis Report Exscientia PLC Sponsored ADR (EXAI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Has DexCom (DXCM) been one of those stocks this year? As we can see, DexCom is performing better than its sector in the calendar year. Exscientia PLC Sponsored ADR (EXAI) is another Medical stock that has outperformed the sector so far this year.
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37973296-7409-4f46-80f0-5caf336c2310
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713785.0
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2023-12-11 00:00:00 UTC
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Is Intercontinental Hotels Group (IHG) Stock Outpacing Its Consumer Discretionary Peers This Year?
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DCOMP
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https://www.nasdaq.com/articles/is-intercontinental-hotels-group-ihg-stock-outpacing-its-consumer-discretionary-peers-this
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nan
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nan
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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is InterContinental Hotels (IHG) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
InterContinental Hotels is a member of our Consumer Discretionary group, which includes 281 different companies and currently sits at #11 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. InterContinental Hotels is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for IHG's full-year earnings has moved 0.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, IHG has gained about 51.4% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 17%. This means that InterContinental Hotels is performing better than its sector in terms of year-to-date returns.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Jakks Pacific (JAKK). The stock is up 92.2% year-to-date.
For Jakks Pacific, the consensus EPS estimate for the current year has increased 62.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, InterContinental Hotels belongs to the Hotels and Motels industry, a group that includes 14 individual companies and currently sits at #67 in the Zacks Industry Rank. Stocks in this group have gained about 29.5% so far this year, so IHG is performing better this group in terms of year-to-date returns.
On the other hand, Jakks Pacific belongs to the Toys - Games - Hobbies industry. This 6-stock industry is currently ranked #92. The industry has moved +21.9% year to date.
InterContinental Hotels and Jakks Pacific could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
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
Intercontinental Hotels Group (IHG) : Free Stock Analysis Report
JAKKS Pacific, Inc. (JAKK) : 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 Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. InterContinental Hotels is a member of our Consumer Discretionary group, which includes 281 different companies and currently sits at #11 in the Zacks Sector Rank. 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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To break things down more, InterContinental Hotels belongs to the Hotels and Motels industry, a group that includes 14 individual companies and currently sits at #67 in the Zacks Industry Rank. InterContinental Hotels and Jakks Pacific could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks. Click to get this free report Intercontinental Hotels Group (IHG) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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To break things down more, InterContinental Hotels belongs to the Hotels and Motels industry, a group that includes 14 individual companies and currently sits at #67 in the Zacks Industry Rank. InterContinental Hotels and Jakks Pacific could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks. Click to get this free report Intercontinental Hotels Group (IHG) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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InterContinental Hotels is a member of our Consumer Discretionary group, which includes 281 different companies and currently sits at #11 in the Zacks Sector Rank. One other Consumer Discretionary stock that has outperformed the sector so far this year is Jakks Pacific (JAKK). Stocks in this group have gained about 29.5% so far this year, so IHG is performing better this group in terms of year-to-date returns.
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8de17285-8fc7-4058-8ddb-374035fb431c
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713786.0
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2023-12-11 00:00:00 UTC
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Why This 1 Business Services Stock Could Be a Great Addition to Your Portfolio
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DCOMP
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https://www.nasdaq.com/articles/why-this-1-business-services-stock-could-be-a-great-addition-to-your-portfolio-7
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nan
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Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides 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 like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus List
If you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List Methodology
When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: ICF International (ICFI)
Headquartered in Fairfax, VA, ICF International, Inc. is a provider of professional services and technology-based solutions to government and commercial clients. The company’s primary services include advisory, analytics, digital, engagement and program implementation services. These services are offered in four markets namely, energy, environment and infrastructure; health, education, and social programs; safety and security, and consumer and financial.
Since being added to the Focus List on April 23, 2018 at $66.60 per share, shares of ICFI have increased 111.38% to $140.78. The stock is currently a #3 (Hold) on the Zacks Rank.
For fiscal 2023, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $6.45. ICFI boasts an average earnings surprise of 6.6%.
Additionally, ICFI's earnings are expected to grow 11.8% for the current fiscal year.
Reveal Winning Stocks
Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
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
ICF International, Inc. (ICFI) : 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 service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
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The Zacks Premium service, which provides 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 like the Earnings ESP filter, makes these more manageable goals. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum. Reveal Winning Stocks Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium.
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The Zacks Premium service, which provides 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 like the Earnings ESP filter, makes these more manageable goals. The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts. Reveal Winning Stocks Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium.
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That's what the Zacks Focus List offers. The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts. For fiscal 2023, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $6.45.
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2dd63a27-1cd2-41e8-ae2e-34ac46a7984e
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713787.0
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2023-12-11 00:00:00 UTC
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What Makes Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) a Good Fit for 'Trend Investing'
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DCOMP
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https://www.nasdaq.com/articles/what-makes-vista-oil-gas-s.a.b.-de-c.v.-sponsored-adr-vist-a-good-fit-for-trend-1
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. VIST is quite a good fit in this regard, gaining 8.2% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 11.1% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, VIST is currently trading at 81.1% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in VIST may not reverse anytime soon.
In addition to VIST, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) : 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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Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Sponsored ADR (VIST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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So, the price trend in VIST may not reverse anytime soon. In addition to VIST, there are several other stocks that currently pass through our "Recent Price Strength" screen. Want the latest recommendations from Zacks Investment Research?
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6c730071-72a7-4b00-b3bd-961ca3ac5cfb
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713788.0
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2023-12-11 00:00:00 UTC
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Toast (TOST) Recently Broke Out Above the 50-Day Moving Average
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DCOMP
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https://www.nasdaq.com/articles/toast-tost-recently-broke-out-above-the-50-day-moving-average
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nan
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nan
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After reaching an important support level, Toast (TOST) could be a good stock pick from a technical perspective. TOST surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
TOST could be on the verge of another rally after moving 10.7% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case only gets stronger once investors take into account TOST's positive earnings estimate revisions. There have been 5 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TOST for more gains in the near future.
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
Toast, Inc. (TOST) : 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, Toast (TOST) could be a good stock pick from a technical perspective. Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TOST for more gains in the near future. 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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After reaching an important support level, Toast (TOST) could be a good stock pick from a technical perspective. Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TOST for more gains in the near future. Click to get this free report Toast, Inc. (TOST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TOST for more gains in the near future. Click to get this free report Toast, Inc. (TOST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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After reaching an important support level, Toast (TOST) could be a good stock pick from a technical perspective. TOST surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend. Want the latest recommendations from Zacks Investment Research?
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59148bd2-cb8f-4cfe-a939-b7b5048ad74f
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713789.0
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2023-12-11 00:00:00 UTC
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Where Will C3.ai Stock Be in 1 Year?
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DCOMP
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https://www.nasdaq.com/articles/where-will-c3.ai-stock-be-in-1-year-0
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nan
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nan
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The artificial intelligence (AI) hype has sent shares of C3.ai (NYSE: AI) soaring in 2023 with outstanding gains of 153% as of this writing. But the wheels have come off in recent months as it is becoming clear that the company is failing to capitalize on the massive opportunity in the AI software market.
C3.ai stock plunged nearly 11% earlier this month after the company released its fiscal 2024 second-quarter results (for the three months ended Oct. 31, 2023). Shares are now down 39% from their 52-week high in mid-June.
Let's take a closer look at the company's latest quarterly report and see what's going wrong for this AI stock that surged big time in the first half of 2023 before falling out of favor on Wall Street.
C3.ai's mixed results have spooked investors
C3.ai delivered fiscal Q2 revenue of $73.2 million, an increase of 17% over the year-ago quarter. The top line missed the midpoint of the company's guidance of $72 million to $76.5 million and was below the consensus estimate of $74.3 million. C3.ai also reported a wider non-GAAP loss of $0.13 per share as compared to a loss of $0.11 per share in the same period last year.
The bigger problem, however, was C3.ai's guidance, which points toward a deceleration in the company's growth. C3.ai expects $76 million in revenue in the current quarter, which is lower than the $77.7 million Wall Street estimate and points toward a year-over-year increase of 14%. That's slower than the revenue jump C3.ai recorded last quarter.
Additionally, C3.ai now expects to report a bigger non-GAAP operating loss of $115 million to $135 million in the current fiscal year. That's a substantial increase over the prior range of $70 million to $100 million. The bigger loss can be attributed to the company's aggressive investments in the generative AI software market.
However, C3.ai's aggressive spending stance isn't translating into growth yet, though the company is confident that the improving customer engagement and the sharp jump in the number of pilot projects and customer trials could help it step on the gas.
Can growth accelerate once again?
A closer look at some of C3.ai's metrics suggests that the company could indeed have a solid 2024. It witnessed a 100% year-over-year jump in bookings, while the number of new agreements that it struck increased an impressive 148% year over year. The number of pilot projects also increased 177% over the year-ago quarter.
However, a critical look at certain other metrics suggests that the growth in agreements, bookings, and pilots that C3.ai management is boasting of isn't helping the company's revenue pipeline. This is evident from the company's remaining performance obligations (RPO), a metric that measures the future value of all of C3.ai's contracts.
C3.ai's RPO fell 27% year over year in the previous quarter to $303.5 million from $417.3 million in the same period last year. The decline in this metric wasn't matched by the year-over-year increase of $11 million in the company's revenue, indicating that customers are canceling contracts. Also, C3.ai was sitting on $40 million worth of cancellable contracts last quarter, indicating that its revenue pipeline could shrink further.
One of the reasons behind the drop in C3.ai's RPO is the company's switch to a consumption-based model, under which customers pay for its services only when they use it. It was earlier using a subscription-based model, under which it used to lock customers in for larger contract sizes for a longer duration. CEO Tom Siebel pointed this out on the latest earnings conference call: "We anticipated and announced when we made that transition that it would have a short to medium negative effect on revenue growth, a long-term drag on RPO."
Not surprisingly, the switch seems to have affected the average selling price of C3.ai's services as customers only use its solutions when needed. The company reported an average selling price of $665,000 last quarter, down almost 20% year over year. Another reason C3.ai's average selling price has dropped is that it has reduced the entry price of its offerings for pilot customers in a bid to win more business.
Can the stock regain its mojo?
Analysts remain confident of an acceleration in C3.ai's revenue growth next year. According to consensus estimates, C3.ai's revenue could increase by 20% in fiscal 2025, up from the 15% growth it is expected to deliver in the current one. Despite that, the stock carries a 12-month median price target of $27 according to 12 analysts covering it. This points toward a drop of 4% from current levels, suggesting that there may not be any more upside for investors over the next year.
AI PS Ratio data by YCharts
Moreover, C3.ai is trading at an expensive 11 times sales following its 2023 surge. The chart above shows that the inflated valuation hasn't been matched by an increase in the company's top line. In simpler words, C3.ai is overvalued right now and it may not turn out to be a good investment over the next year, until and unless its growth accelerates meaningfully.
Should you invest $1,000 in C3.ai right now?
Before you buy stock in C3.ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and C3.ai wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's take a closer look at the company's latest quarterly report and see what's going wrong for this AI stock that surged big time in the first half of 2023 before falling out of favor on Wall Street. However, a critical look at certain other metrics suggests that the growth in agreements, bookings, and pilots that C3.ai management is boasting of isn't helping the company's revenue pipeline. CEO Tom Siebel pointed this out on the latest earnings conference call: "We anticipated and announced when we made that transition that it would have a short to medium negative effect on revenue growth, a long-term drag on RPO."
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C3.ai's mixed results have spooked investors C3.ai delivered fiscal Q2 revenue of $73.2 million, an increase of 17% over the year-ago quarter. Additionally, C3.ai now expects to report a bigger non-GAAP operating loss of $115 million to $135 million in the current fiscal year. The decline in this metric wasn't matched by the year-over-year increase of $11 million in the company's revenue, indicating that customers are canceling contracts.
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C3.ai's RPO fell 27% year over year in the previous quarter to $303.5 million from $417.3 million in the same period last year. The decline in this metric wasn't matched by the year-over-year increase of $11 million in the company's revenue, indicating that customers are canceling contracts. Before you buy stock in C3.ai, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and C3.ai wasn't one of them.
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C3.ai expects $76 million in revenue in the current quarter, which is lower than the $77.7 million Wall Street estimate and points toward a year-over-year increase of 14%. The decline in this metric wasn't matched by the year-over-year increase of $11 million in the company's revenue, indicating that customers are canceling contracts. Before you buy stock in C3.ai, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and C3.ai wasn't one of them.
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adb53107-e581-4a39-982c-3692ea7e7efd
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713790.0
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2023-12-11 00:00:00 UTC
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Health Care Sector Update for 12/14/2023: MRNA, MRK, EVO, GKOS, XLV, IBB
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DCOMP
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https://www.nasdaq.com/articles/health-care-sector-update-for-12-14-2023%3A-mrna-mrk-evo-gkos-xlv-ibb
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nan
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nan
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Health care stocks were advancing pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was gaining 0.5% and the iShares Biotechnology ETF (IBB) was up more than 1% recently.
Moderna (MRNA) was up more than 12% after and Merck (MRK) reported follow-up data from a phase 2b study evaluating mRNA-4157 in combination with Merck's Keytruda in patients with resected high-risk melanoma following complete resection. The companies said the drug combination continued to demonstrate a clinically meaningful improvement in recurrence-free survival and reduced the risk of recurrence or death by 49% compared with Keytruda alone.
Evotec (EVO) was gaining over 13% after saying it partnered with Charite Universitatsmedizin Berlin to develop a molecular patient database for certain autoimmune diseases characterized by blood vessel inflammation.
Glaukos (GKOS) was more than 8% higher after saying the US Food and Drug Administration has approved a new drug application for iDose TR to treat intraocular pressure in patients with ocular hypertension.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moderna (MRNA) was up more than 12% after and Merck (MRK) reported follow-up data from a phase 2b study evaluating mRNA-4157 in combination with Merck's Keytruda in patients with resected high-risk melanoma following complete resection. The companies said the drug combination continued to demonstrate a clinically meaningful improvement in recurrence-free survival and reduced the risk of recurrence or death by 49% compared with Keytruda alone. Evotec (EVO) was gaining over 13% after saying it partnered with Charite Universitatsmedizin Berlin to develop a molecular patient database for certain autoimmune diseases characterized by blood vessel inflammation.
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Health care stocks were advancing pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was gaining 0.5% and the iShares Biotechnology ETF (IBB) was up more than 1% recently. Moderna (MRNA) was up more than 12% after and Merck (MRK) reported follow-up data from a phase 2b study evaluating mRNA-4157 in combination with Merck's Keytruda in patients with resected high-risk melanoma following complete resection. The companies said the drug combination continued to demonstrate a clinically meaningful improvement in recurrence-free survival and reduced the risk of recurrence or death by 49% compared with Keytruda alone.
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Health care stocks were advancing pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was gaining 0.5% and the iShares Biotechnology ETF (IBB) was up more than 1% recently. Moderna (MRNA) was up more than 12% after and Merck (MRK) reported follow-up data from a phase 2b study evaluating mRNA-4157 in combination with Merck's Keytruda in patients with resected high-risk melanoma following complete resection. Glaukos (GKOS) was more than 8% higher after saying the US Food and Drug Administration has approved a new drug application for iDose TR to treat intraocular pressure in patients with ocular hypertension.
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Health care stocks were advancing pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was gaining 0.5% and the iShares Biotechnology ETF (IBB) was up more than 1% recently. Moderna (MRNA) was up more than 12% after and Merck (MRK) reported follow-up data from a phase 2b study evaluating mRNA-4157 in combination with Merck's Keytruda in patients with resected high-risk melanoma following complete resection. The companies said the drug combination continued to demonstrate a clinically meaningful improvement in recurrence-free survival and reduced the risk of recurrence or death by 49% compared with Keytruda alone.
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116cb464-c0dc-497e-abd5-2e58bfbf5d92
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713791.0
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2023-12-11 00:00:00 UTC
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Adobe Stock Drops After Earnings. Has the Artificial Intelligence (AI) Bubble Popped?
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DCOMP
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https://www.nasdaq.com/articles/adobe-stock-drops-after-earnings.-has-the-artificial-intelligence-ai-bubble-popped
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nan
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nan
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In this video, I will go over Adobe's (NASDAQ: ADBE) fourth-quarter earnings report. The company comfortably beat Wall Street's expectations, but that wasn't enough to keep the stock from going down.
*Stock prices used were from the trading day of Dec. 13, 2023. The video was published on Dec. 14, 2023.
Should you invest $1,000 in Adobe right now?
Before you buy stock in Adobe, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adobe wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. 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. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company comfortably beat Wall Street's expectations, but that wasn't enough to keep the stock from going down. The 10 stocks that made the cut could produce monster returns in the coming years. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Before you buy stock in Adobe, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adobe wasn't one of them. The Motley Fool has positions in and recommends Adobe. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe.
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Before you buy stock in Adobe, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adobe wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe.
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Before you buy stock in Adobe, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adobe wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe.
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5f601307-fdf3-4e30-89a3-66561f45db74
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713792.0
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2023-12-11 00:00:00 UTC
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Financial Sector Update for 12/14/2023: HOOD, UBS, NMFC, XLF, FAS, FAZ
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DCOMP
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https://www.nasdaq.com/articles/financial-sector-update-for-12-14-2023%3A-hood-ubs-nmfc-xlf-fas-faz
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nan
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nan
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Financial stocks were edging higher premarket Thursday, with the Financial Select Sector SPDR Fund (XLF) recently gaining 1.1%.
The Direxion Daily Financial Bull 3X Shares (FAS) was up 3.2%, and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.9%.
Robinhood Markets (HOOD) was gaining more than 2% after saying it recorded equity notional trading volumes of $52.9 billion for November, up from $44.7 billion a year earlier.
UBS (UBS) is increasing its efforts to recover hundreds of millions in cash bonuses paid by Credit Suisse to bankers in an attempt to keep them on board before it collapsed, Bloomberg reported, citing unnamed sources with knowledge of the matter and documents. UBS was up more than 2% pre-bell.
New Mountain Finance (NMFC) was more than 1% higher after it declared a special divided of $0.10 per share, payable on Dec. 29 to shareholders on record as of Dec. 22.
The views and 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 Direxion Daily Financial Bull 3X Shares (FAS) was up 3.2%, and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.9%. UBS (UBS) is increasing its efforts to recover hundreds of millions in cash bonuses paid by Credit Suisse to bankers in an attempt to keep them on board before it collapsed, Bloomberg reported, citing unnamed sources with knowledge of the matter and documents. New Mountain Finance (NMFC) was more than 1% higher after it declared a special divided of $0.10 per share, payable on Dec. 29 to shareholders on record as of Dec. 22.
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The Direxion Daily Financial Bull 3X Shares (FAS) was up 3.2%, and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.9%. UBS (UBS) is increasing its efforts to recover hundreds of millions in cash bonuses paid by Credit Suisse to bankers in an attempt to keep them on board before it collapsed, Bloomberg reported, citing unnamed sources with knowledge of the matter and documents. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Financial stocks were edging higher premarket Thursday, with the Financial Select Sector SPDR Fund (XLF) recently gaining 1.1%. The Direxion Daily Financial Bull 3X Shares (FAS) was up 3.2%, and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.9%. UBS (UBS) is increasing its efforts to recover hundreds of millions in cash bonuses paid by Credit Suisse to bankers in an attempt to keep them on board before it collapsed, Bloomberg reported, citing unnamed sources with knowledge of the matter and documents.
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Financial stocks were edging higher premarket Thursday, with the Financial Select Sector SPDR Fund (XLF) recently gaining 1.1%. The Direxion Daily Financial Bull 3X Shares (FAS) was up 3.2%, and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.9%. Robinhood Markets (HOOD) was gaining more than 2% after saying it recorded equity notional trading volumes of $52.9 billion for November, up from $44.7 billion a year earlier.
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af8f3bd2-14a9-404b-9b42-696de8019d31
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713793.0
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2023-12-11 00:00:00 UTC
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Is Toast Stock a Buy Now?
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DCOMP
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https://www.nasdaq.com/articles/is-toast-stock-a-buy-now-2
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nan
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For a business that is the lifeblood for its customer base, Toast (NYSE: TOST) has made for a pretty lousy investment. In 2023, when the S&P 500 and the Nasdaq Composite have both posted strong-double-digit gains, this fintech stock is down 15% year to date. Moreover, the mid-cap company's shares are currently 76% below their peak price. That's not really encouraging.
It's not all bad news, though. In fact, there are compelling reasons why Toast might be a worthy investment candidate right now. Here's what you need to know.
Making it easy for restaurants
The best way to describe what Toast does is to think of its products and services as being like the operating system for a typical restaurant. Not only does Toast sell hardware, like point-of-sale systems and kiosks, but also the necessary software to help restaurant owners better manage their operations. Key features include payment processing, employee payroll and scheduling, loyalty programs, and working capital loans.
What's important to focus on is the clear value proposition that Toast offers. A restaurant might have to use software and services from various providers that do not integrate which each other, are difficult to use, and are costly. By being built specifically for the unique needs of restaurants, Toast's end-to-end solution makes things much easier.
The data backs this up. Approximately 20% of new customers are brought on by referrals, the most powerful marketing tool around. That speaks to how impressive Toast's offering is. And in 2022, the company reported a net revenue retention rate of 118%. Anything above 100% is great as it indicates customers are satisfied enough to stick around. All signs point to incredible product-market fit.
According to the management team, there is a lot of potential over the long term. In the U.S. alone, there are 860,000 restaurant locations generating more than $900 billion in sales annually. Executives say Toast has about 10% of the market based on locations. Add this to the trailing-12-month revenue of $3.6 billion, and there is sizable financial upside.
Protecting itself from rivals
It's not surprising that a fast-growing software-based niche like this would invite stiff competition. The most notable rival is Block, specifically its Square segment. From the customer's perspective, though, Toast appears to have a leg up, mainly because it focuses exclusively on restaurants and their needs.
This means a complete set of features, like 24/7 customer support, comprehensive online ordering capabilities and integrations, and better reporting tools. A new mobile app called Toast Now, which allows owners and operators to keep tabs on what's going on with their restaurants from any location, also demonstrates ways the business is bolstering its offerings.
Toast also benefits from having an economic moat, which protects its competitive positioning. The most obvious is the presence of switching costs. Restaurants that are on Toast's platform aren't likely to switch providers because of the massive headaches it would likely cause.
And just think about the tremendous amounts of data that Toast is collecting, like what types of cuisines are the most popular, what times of the day demand is not being met fully, or what consumers' favorite ordering channels are. This business is definitely building a data advantage that could help management inform product innovations, while at the same time adding value to restaurants and their ability to make decisions.
Some red flags
Investors will probably find Toast's current price-to-sales ratio of 2.3, which is less than half the historical average of 5, to be a compelling enough reason to buy shares today, especially considering the points I made above. But it's best not to ignore two red flags.
It's not surprising that a business in the early stages of growth -- like Toast -- has yet to produce positive net income in any fiscal year. Another worrying sign is the ballooning outstanding share count, which has soared 167% in the last three years. This dilutes existing investors.
Even with these unfavorable aspects in mind, it's easy to still be optimistic about Toast. And this might warrant starting a tiny position in the stock and holding for the long term.
Should you invest $1,000 in Toast right now?
Before you buy stock in Toast, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool recommends Toast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A new mobile app called Toast Now, which allows owners and operators to keep tabs on what's going on with their restaurants from any location, also demonstrates ways the business is bolstering its offerings. And just think about the tremendous amounts of data that Toast is collecting, like what types of cuisines are the most popular, what times of the day demand is not being met fully, or what consumers' favorite ordering channels are. Some red flags Investors will probably find Toast's current price-to-sales ratio of 2.3, which is less than half the historical average of 5, to be a compelling enough reason to buy shares today, especially considering the points I made above.
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Before you buy stock in Toast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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Making it easy for restaurants The best way to describe what Toast does is to think of its products and services as being like the operating system for a typical restaurant. Some red flags Investors will probably find Toast's current price-to-sales ratio of 2.3, which is less than half the historical average of 5, to be a compelling enough reason to buy shares today, especially considering the points I made above. Before you buy stock in Toast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them.
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Making it easy for restaurants The best way to describe what Toast does is to think of its products and services as being like the operating system for a typical restaurant. A new mobile app called Toast Now, which allows owners and operators to keep tabs on what's going on with their restaurants from any location, also demonstrates ways the business is bolstering its offerings. Before you buy stock in Toast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them.
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3fdce504-3de5-4c8c-823a-f32680db9959
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713794.0
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2023-12-11 00:00:00 UTC
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GitLab Inc. (GTLB) Hits Fresh High: Is There Still Room to Run?
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https://www.nasdaq.com/articles/gitlab-inc.-gtlb-hits-fresh-high%3A-is-there-still-room-to-run
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Have you been paying attention to shares of GitLab Inc. (GTLB)? Shares have been on the move with the stock up 32.1% over the past month. The stock hit a new 52-week high of $64.89 in the previous session. GitLab Inc. has gained 42.4% since the start of the year compared to the 49.9% move for the Zacks Computer and Technology sector and the 64.9% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on December 4, 2023, GitLab Inc. reported EPS of $0.09 versus consensus estimate of $-0.01 while it beat the consensus revenue estimate by 6.23%.
For the current fiscal year, GitLab Inc. is expected to post earnings of $0.13 per share on $573.81 million in revenues. This represents a 128.26% change in EPS on a 35.23% change in revenues. For the next fiscal year, the company is expected to earn $0.34 per share on $725.17 million in revenues. This represents a year-over-year change of 168.68% and 26.38%, respectively.
Valuation Metrics
GitLab Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
GitLab Inc. has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 517.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 39.9X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 17.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, GitLab Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if GitLab Inc. passes the test. Thus, it seems as though GitLab Inc. shares could have potential in the weeks and months to come.
How Does GTLB Stack Up to the Competition?
Shares of GTLB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Zoom Video Communications, Inc. (ZM). ZM has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Zoom Video Communications, Inc. beat our consensus estimate by 19.44%, and for the current fiscal year, ZM is expected to post earnings of $4.64 per share on revenue of $4.51 billion.
Shares of Zoom Video Communications, Inc. have gained 11.7% over the past month, and currently trade at a forward P/E of 14.42X and a P/CF of 32.94X.
The Internet - Software industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GTLB and ZM, even beyond their own solid fundamental situation.
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
GitLab Inc. (GTLB) : Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. Zoom Video Communications, Inc. beat our consensus estimate by 19.44%, and for the current fiscal year, ZM is expected to post earnings of $4.64 per share on revenue of $4.51 billion. 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 its last earnings report on December 4, 2023, GitLab Inc. reported EPS of $0.09 versus consensus estimate of $-0.01 while it beat the consensus revenue estimate by 6.23%. In terms of its value breakdown, the stock currently trades at 517.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 39.9X. Click to get this free report GitLab Inc. (GTLB) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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GitLab Inc. has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if GitLab Inc. passes the test. Click to get this free report GitLab Inc. (GTLB) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its last earnings report on December 4, 2023, GitLab Inc. reported EPS of $0.09 versus consensus estimate of $-0.01 while it beat the consensus revenue estimate by 6.23%. For the current fiscal year, GitLab Inc. is expected to post earnings of $0.13 per share on $573.81 million in revenues. For the next fiscal year, the company is expected to earn $0.34 per share on $725.17 million in revenues.
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713795.0
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2023-12-11 00:00:00 UTC
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Jacobs (J) to Support Naarea for Developing New Nuclear Reactor
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https://www.nasdaq.com/articles/jacobs-j-to-support-naarea-for-developing-new-nuclear-reactor
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Jacobs Solutions Inc. J has been selected to assist a French start-up company, Nuclear Abundant Affordable Resourceful Energy for All (“Naarea”), in developing a new nuclear power reactor.
Jacobs will offer support for nuclear safety along with various engineering disciplines that include control and instrumentation, mechanical and process. Within the three-year framework of work, both companies will collaboratively focus on delivering safe, clean and sustainable nuclear energy, thus promoting energy security and global sustainability.
The development of Naarea’s power reactor is being funded through the France 2030 investment plan, a strategic initiative by the government.
Following the announcement of the new award, shares of this provider of professional, technical and construction services gained 0.3% during the trading hours on Dec 13.
Strong Backlog Level Bodes Well
Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. This is reflected in its ongoing backlog growth.
At fiscal 2023 end, the company reported a backlog of $29.1 billion, up 4.5% year over year. This reflects persistent solid demand for Jacobs' consulting services. The company is expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments.
Image Source: Zacks Investment Research
Shares of Jacobs have increased 10.9% in the past six months compared with the Zacks Technology Services industry’s 13.4% growth. Even though the shares of the company underperformed its industry, its consistent contract wins on the back of efficient project execution are likely to boost its growth prospects.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Zacks Business Services sector.
Duolingo, Inc. DUOL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 114%, on average. The stock has surged 217.7% in the past year. The Zacks Consensus Estimate for DUOL’s 2023 sales and earnings per share (EPS) suggests an increase of 42.6% and 116.6%, respectively, from the year-ago period’s levels.
TriNet Group, Inc. TNET currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 77.4%, on average. The stock has hiked 85% in the past year.
The Zacks Consensus Estimate for TNET’s 2023 sales indicates a decline of 2.7% but EPS suggests a rise of 4%, respectively, from the year-ago period’s levels.
FirstCash Holdings, Inc. FCFS currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 7.9%, on average. The stock has gained 31.6% in the past year.
The Zacks Consensus Estimate for FCFS’ 2023 sales and EPS indicates a 15.8% and a 13.1% rise, from the year-ago period’s levels.
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
FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report
TriNet Group, Inc. (TNET) : Free Stock Analysis Report
Jacobs Solutions Inc. (J) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong Backlog Level Bodes Well Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Even though the shares of the company underperformed its industry, its consistent contract wins on the back of efficient project execution are likely to boost its growth prospects. 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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Strong Backlog Level Bodes Well Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. The Zacks Consensus Estimate for DUOL’s 2023 sales and earnings per share (EPS) suggests an increase of 42.6% and 116.6%, respectively, from the year-ago period’s levels. Click to get this free report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report TriNet Group, Inc. (TNET) : Free Stock Analysis Report Jacobs Solutions Inc. (J) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Shares of Jacobs have increased 10.9% in the past six months compared with the Zacks Technology Services industry’s 13.4% growth. Zacks Rank & Key Picks Jacobs currently carries a Zacks Rank #4 (Sell). Click to get this free report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report TriNet Group, Inc. (TNET) : Free Stock Analysis Report Jacobs Solutions Inc. (J) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Shares of Jacobs have increased 10.9% in the past six months compared with the Zacks Technology Services industry’s 13.4% growth. The Zacks Consensus Estimate for DUOL’s 2023 sales and earnings per share (EPS) suggests an increase of 42.6% and 116.6%, respectively, from the year-ago period’s levels. The stock has gained 31.6% in the past year.
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c16a77fa-ceb2-46e6-8ae8-81e3fba17778
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713796.0
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2023-12-11 00:00:00 UTC
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Company News for Dec 14, 2023
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https://www.nasdaq.com/articles/company-news-for-dec-14-2023
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Shares of ABM Industries Incorporated (ABM) surged 17.9% after the company reported fourth-quarter fiscal 2023 earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.93 per share.
Pfizer Inc.’s (PFE) shares fell 6.2% after the company announced its 2024 profit and revenue forecast which was disappointing because of a sharp decline in demand for its Covid-19 products.
Shares of The Home Depot, Inc. (HD) jumped 3.1% boosted by the broader real estate rally.
The Goldman Sachs Group, Inc.’s (GS) shares gained 2.9% on the broader Dow rally.
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
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis 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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Pfizer Inc.’s (PFE) shares fell 6.2% after the company announced its 2024 profit and revenue forecast which was disappointing because of a sharp decline in demand for its Covid-19 products. Shares of The Home Depot, Inc. (HD) jumped 3.1% boosted by the broader real estate rally. 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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Shares of ABM Industries Incorporated (ABM) surged 17.9% after the company reported fourth-quarter fiscal 2023 earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.93 per share. The Goldman Sachs Group, Inc.’s (GS) shares gained 2.9% on the broader Dow rally. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report ABM Industries Incorporated (ABM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of ABM Industries Incorporated (ABM) surged 17.9% after the company reported fourth-quarter fiscal 2023 earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.93 per share. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis 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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Pfizer Inc.’s (PFE) shares fell 6.2% after the company announced its 2024 profit and revenue forecast which was disappointing because of a sharp decline in demand for its Covid-19 products. The Goldman Sachs Group, Inc.’s (GS) shares gained 2.9% on the broader Dow rally. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report ABM Industries Incorporated (ABM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-12-11 00:00:00 UTC
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This Cathie Wood Electric Vehicle Stock Is Disrupting a $1 Trillion Industry, According to Wall Street. Should You Buy?
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DCOMP
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https://www.nasdaq.com/articles/this-cathie-wood-electric-vehicle-stock-is-disrupting-a-%241-trillion-industry-according-to
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When it comes to electric vehicles (EVs), most investors probably think of car companies such as Tesla and Rivian, and for good reason. EVs are becoming more popular across the globe.
But what if EVs weren't limited to the road? There are actually a number of companies investing heavily in electric air taxis, such as the Cathie Wood favorite Archer Aviation (NYSE: ACHR). Wood is the CEO of Ark Invest, an investment management firm known for taking big bets on emerging technology.
While Archer Aviation's electric air taxis may sound like something from the future, the technology could be closer than you realize. With the stock trading below $10 per share, now could be a lucrative opportunity to buy into this little-known EV disruptor.
Is the air taxi market just hype?
It's understandable to be incredulous about the applications of air taxis. After all, what's wrong with traditional modes of transportation like cars, busses, and trains?
Well, for starters, one of the biggest use cases air taxi companies are looking to tackle is road traffic. In fact, a company called Blade Air Mobility is already solving this challenge thanks to its on-demand helicopters and jets. The challenge here is accessibility. Blade Air Mobility offers more of a luxury service and isn't as affordable as ride-hailing services such as Uber and Lyft.
Image source: Getty Images.
The $1 trillion air mobility industry
The air mobility market is comprised of many different types of aircraft, including drones, supersonic jets, and electric vertical take-off and landing (eVTOL) vehicles. Archer Aviation is focusing on eVTOL aircraft for both military operations and alternative urban mobility services.
According to a recent report from management consulting firm McKinsey, the total backlog for air mobility vehicles eclipsed $100 billion as of June. It's important to note that this figure excludes commercial airplanes. Moreover, Wall Street estimates that the urban air mobility market could be worth $1 trillion by 2040.
Invest in the future of mobility: Urban Air Mobility is projected to be a $1+ trillion market by 2040*. Sign up for updates to learn more about Archer.
*FOOTNOTE: According to Morgan Stanley
-- Archer (@ArcherAviation) March 25, 2023
Given these demand undercurrents, investors might not be surprised to learn that the market is garnering the support of institutional investors. For example, venture capital investors have poured hundreds of millions of dollars into a unicorn start-up and Archer competitor called Volocopter.
When it comes to Archer, the company has no shortage of impressive investors. In addition to Wood, Archer's backers include Stellantis, United Airlines, and Boeing. United Airlines, for its part, has a vested interest in Archer's success with a purchase order in place of up to $1.5 billion.
Additionally, the relationship with Boeing makes a lot of sense given its heavy investments in urban air mobility company Wisk. Working closely with Wisk and earning the financial support of Boeing should be a major catalyst for Archer's vision of commercial electric taxis.
Is Archer Aviation stock a good buy?
ACHR Cash and Equivalents (Quarterly) data by YCharts
The chart above might appear a little misleading. Investors can see that for the last couple of years Archer has been operating at a net loss on a consistent basis, and yet its cash balance has remained fairly robust save for a noticeable dip last summer.
The company's mounting losses can be attributed to two primary factors. The first is that Archer is pre-revenue. The second is that building aircraft is expensive. The combination of heavy capital requirements and a sales operation that is not yet operating at scale has required the company to continue raising funds.
While this may not spark much confidence, consider that multiple banks on Wall Street are bullish on Archer stock, with one believing the stock is currently undervalued. At the time of this writing, Archer stock trades for roughly $6.70 per share. This reflects a healthy uptick from its all-time lows earlier this year.
ACHR data by YCharts
At the end of the day, there are several reasons to believe that Archer Aviation could be a lucrative stock to buy. Given the positive outlook of the size of urban air mobility's total addressable market coupled with the surging demand for non-commercial aircraft, it seems obvious that Archer could be onto something big.
Moreover, the steadfast support of some of the most recognized mobility brands in the world could suggest that Archer Aviation is a leader in commercial eVTOL transportation. For investors who are looking for additional exposure to the EV space, Archer Aviation could represent a unique opportunity. With the company's commercialization efforts beginning as early as 2025, now could be a good chance to scoop up shares before they take flight.
Should you invest $1,000 in Archer Aviation right now?
Before you buy stock in Archer Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Adam Spatacco has positions in Tesla. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Working closely with Wisk and earning the financial support of Boeing should be a major catalyst for Archer's vision of commercial electric taxis. Investors can see that for the last couple of years Archer has been operating at a net loss on a consistent basis, and yet its cash balance has remained fairly robust save for a noticeable dip last summer. Given the positive outlook of the size of urban air mobility's total addressable market coupled with the surging demand for non-commercial aircraft, it seems obvious that Archer could be onto something big.
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In addition to Wood, Archer's backers include Stellantis, United Airlines, and Boeing. Additionally, the relationship with Boeing makes a lot of sense given its heavy investments in urban air mobility company Wisk. Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Archer Aviation wasn't one of them.
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There are actually a number of companies investing heavily in electric air taxis, such as the Cathie Wood favorite Archer Aviation (NYSE: ACHR). The $1 trillion air mobility industry The air mobility market is comprised of many different types of aircraft, including drones, supersonic jets, and electric vertical take-off and landing (eVTOL) vehicles. Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Archer Aviation wasn't one of them.
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When it comes to electric vehicles (EVs), most investors probably think of car companies such as Tesla and Rivian, and for good reason. Archer Aviation is focusing on eVTOL aircraft for both military operations and alternative urban mobility services. Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Archer Aviation wasn't one of them.
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2d300dd8-bbcc-4704-b735-bebc2597ed9a
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713798.0
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2023-12-11 00:00:00 UTC
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Stock Market News for Dec 14, 2023
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https://www.nasdaq.com/articles/stock-market-news-for-dec-14-2023
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U.S. stock ended higher on Wednesday, with the Dow closing at a record high for the first time in nearly two years as the Federal Reserve kept interest rates unchanged and hinted at rate cuts in 2024. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.4% or 512.30 points to end at 37,090.24 points, its first record close since January 2022.
The S&P 500 climbed 1.4% or 63.39 points, to finish at 4,707.09 points. Real estate and utility stocks were the biggest gainers.
The Real Estate Select Sector SPDR (XLRE) and the Utilities Select Sector SPDR (XLU) gained 3.6% and 3.8%, respectively.
The Consumer Discretionary Select Sector SPDR (XLY) added 1%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq also advanced 1.4% or 200.57 points to close at 14,733.96 points.
The fear-gauge CBOE Volatility Index (VIX) was up 0.99% to 12.19. A total of 11.35 billion shares were traded on Wednesday, higher than the last 20-session average of 11.04 billion. Advancers outnumbered decliners on the NYSE by a 7.01-to-1 ratio. On the Nasdaq, a 3.18-to-1 ratio favored advancing issues.
Fed Keeps Policy Rate Unchanged, Treasury Yield Fall
Stocks rallied on Wednesday, with the Dow surpassing the 37,000 mark for the first time since January 2022 after the Federal Reserve kept its benchmark policy rate steady at in the range of 5.25-5.5%.
Market participants were hopeful that the Fed would keep the interest rate unchanged in its December FOMC meeting although it has earlier hinted at another 25-basis point rate hike this year.
However, cooling inflation over the past year raised hopes that the Fed could soon end its monetary tightening campaign. The Fed’s decision was widely expected but more importantly, the central bank hinted at multiple rate cuts in 2024.
The Fed hinted at three 25 basis point rate cuts in 2024, higher than its earlier projection of two. Although the Federal Reserve didn’t give an exact time when it plans to start its rate cuts, the indication was enough to send stocks on a rally.
Fed Reserve Chairman Jerome Powell said at a press conference that he believes that the policy rate is now at its peak or at least near it. He also said that the central bank will closely watch inflation data and will try not to keep interest rates higher for a longer period.
The Fed now expects its policy rate at 4.6% by the end of 2024, a lot lower than the earlier forecast of 5.1%.
Investors are now expecting a 57% chance that the Federal Reserve will go for a 25-basis point rate cut in March 2024, according to the CME FedWatch tool.
Shares of Bank of America Corporation (BAC) jumped 4.2%, while Wells Fargo & Company (WFC) rose 2.8%. Bank of America has Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, treasury yields fell following the Fed’s announcement. The 10-year Treasury yield fell 17.3 basis points to end at 4.032% on Wednesday after rising more than 5% to a 16-year-high in October.
Economic Data
Economic data released on Wednesday showed a further decline in inflation. Wholesale inflation or the producer price index (PPI) remained unchanged in November, hinting at cooling inflation, the Bureau of Labor Statistics said. It also came in better than the consensus estimate of a rise 0.1%.
Year over year PPI increased 0.9% in November after jumping 1.2% in October. Also, core PPI, which excludes the volatile food and energy prices, remained unchanged in November, while year over year core PPI increased 2% in November, lower than economists' expectations of a rise of 2.2%.
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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%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Wells Fargo & Company (WFC) : 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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Although the Federal Reserve didn’t give an exact time when it plans to start its rate cuts, the indication was enough to send stocks on a rally. Investors are now expecting a 57% chance that the Federal Reserve will go for a 25-basis point rate cut in March 2024, according to the CME FedWatch tool. 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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Shares of Bank of America Corporation (BAC) jumped 4.2%, while Wells Fargo & Company (WFC) rose 2.8%. Also, core PPI, which excludes the volatile food and energy prices, remained unchanged in November, while year over year core PPI increased 2% in November, lower than economists' expectations of a rise of 2.2%. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. stock ended higher on Wednesday, with the Dow closing at a record high for the first time in nearly two years as the Federal Reserve kept interest rates unchanged and hinted at rate cuts in 2024. Fed Keeps Policy Rate Unchanged, Treasury Yield Fall Stocks rallied on Wednesday, with the Dow surpassing the 37,000 mark for the first time since January 2022 after the Federal Reserve kept its benchmark policy rate steady at in the range of 5.25-5.5%. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. stock ended higher on Wednesday, with the Dow closing at a record high for the first time in nearly two years as the Federal Reserve kept interest rates unchanged and hinted at rate cuts in 2024. Fed Keeps Policy Rate Unchanged, Treasury Yield Fall Stocks rallied on Wednesday, with the Dow surpassing the 37,000 mark for the first time since January 2022 after the Federal Reserve kept its benchmark policy rate steady at in the range of 5.25-5.5%. The 10-year Treasury yield fell 17.3 basis points to end at 4.032% on Wednesday after rising more than 5% to a 16-year-high in October.
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7088f920-821f-4a56-863d-da7b92c5fb4c
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713799.0
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2023-12-11 00:00:00 UTC
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Here's Why Momentum in Barrett (BBSI) Should Keep going
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DCOMP
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https://www.nasdaq.com/articles/heres-why-momentum-in-barrett-bbsi-should-keep-going
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Barrett Business Services (BBSI) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. BBSI is quite a good fit in this regard, gaining 24.3% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 2.6% over the past four weeks ensures that the trend is still in place for the stock of this human resources management company.
Moreover, BBSI is currently trading at 97.7% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in BBSI may not reverse anytime soon.
In addition to BBSI, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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So, the price trend in BBSI may not reverse anytime soon. In addition to BBSI, there are several other stocks that currently pass through our "Recent Price Strength" screen. Want the latest recommendations from Zacks Investment Research?
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33bfdb8e-a257-4844-833d-8ac7c6e39a49
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