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714100.0
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2023-12-07 00:00:00 UTC
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UBS Board Approves Execution Of UBS-Credit Suisse Merger
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https://www.nasdaq.com/articles/ubs-board-approves-execution-of-ubs-credit-suisse-merger
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(RTTNews) - Swiss banking giant UBS AG (UBS) announced Thursday its Board of Directors has approved the execution of a merger of UBS AG and Credit Suisse AG. Following approvals from their respective Boards, both entities have entered into a definitive merger agreement.
This follows the merger of the holding companies UBS Group AG and CS Group AG on June 12, 2023.
The completion of the merger is subject to regulatory approvals and is expected to happen in 2024.
Separately, UBS continues to prepare for the planned merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG also in 2024.
In March 2023, UBS agreed to buy troubled rival Credit Suisse for 3 billion Swiss francs or about $3.24 billion.
In connection with the planned merger, UBS AG is filing today with the US Securities and Exchange Commission (SEC) a Form 6-K containing unaudited pro forma condensed financial information giving effect to the merger.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Following approvals from their respective Boards, both entities have entered into a definitive merger agreement. The completion of the merger is subject to regulatory approvals and is expected to happen in 2024. In connection with the planned merger, UBS AG is filing today with the US Securities and Exchange Commission (SEC) a Form 6-K containing unaudited pro forma condensed financial information giving effect to the merger.
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(RTTNews) - Swiss banking giant UBS AG (UBS) announced Thursday its Board of Directors has approved the execution of a merger of UBS AG and Credit Suisse AG. Separately, UBS continues to prepare for the planned merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG also in 2024. In connection with the planned merger, UBS AG is filing today with the US Securities and Exchange Commission (SEC) a Form 6-K containing unaudited pro forma condensed financial information giving effect to the merger.
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(RTTNews) - Swiss banking giant UBS AG (UBS) announced Thursday its Board of Directors has approved the execution of a merger of UBS AG and Credit Suisse AG. Separately, UBS continues to prepare for the planned merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG also in 2024. In connection with the planned merger, UBS AG is filing today with the US Securities and Exchange Commission (SEC) a Form 6-K containing unaudited pro forma condensed financial information giving effect to the merger.
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(RTTNews) - Swiss banking giant UBS AG (UBS) announced Thursday its Board of Directors has approved the execution of a merger of UBS AG and Credit Suisse AG. Following approvals from their respective Boards, both entities have entered into a definitive merger agreement. This follows the merger of the holding companies UBS Group AG and CS Group AG on June 12, 2023.
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6badfb11-bfc4-42e0-a138-711a47763c39
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714101.0
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2023-12-07 00:00:00 UTC
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Best Stock to Buy: Altria vs. Realty Income
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-altria-vs.-realty-income
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If all you did was look at dividend yield, then tobacco giant Altria's (NYSE: MO) 9.2% yield would easily win out over real estate investment trust (REIT) Realty Income's (NYSE: O) comparatively small 5.5%. But investors looking to create decades of passive income shouldn't stop there because there's huge differences between these two companies.
Here's a quick look at why conservative investors will likely be much happier with the smaller yield.
Very different businesses
Altria's primary division, which makes up around 90% of its top line, sells what it calls smokable products. While that's a fancy way of saying cigarettes, with the company owning the U.S. rights to the juggernaut Marlboro brand, it also makes cigars. In short, Altria is a consumer staples company.
Realty Income, meanwhile, is a real estate investment trust that owns rental real estate using the net lease model. A net lease requires tenants to pay for most property-level operating expenses. Around 77% of the REIT's assets are retail properties, which are fairly similar in nature and relatively easy to buy, sell, and release. About 15% of its properties are industrial assets and the remaining bit falls into a broad "other" grouping, which includes vineyards and casinos.
Normally, comparing a consumer staples company to a REIT would be kind of pointless, since they are very different businesses. However, these are both stocks that dividend investors find attractive and a comparison is actually worthwhile.
Both have attractive dividend stats
As noted, Altria's yield is an eye-popping 9.2%. The dividend has been increased annually since 2009, or a bit more than a decade. The average increase over the past 10 years was around 7.5%. Those are not bad statistics, but Realty Income has a good dividend history, too. Its dividend yield is lower at 5.5%, but it has been increased annually for 29 consecutive years.
And while the average increase over the past decade was a more miserly 3.8%, that's probably more than offset by the dividend cut that Altria investors had to suffer through. In fact, Altria's dividend took more than a decade to return to the pre-cut peak level achieved in 2008. The risk of another cut is what investors need to keep in mind here.
MO Dividend Per Share (Annual) data by YCharts
The future is not equally bright
Most investors probably already know the problem facing Altria's cigarette business. Still, it is important to explain just how dire the situation is, with the volume of cigarettes sold in the third quarter down 11.6% year over year. That's not a fluke; the business has been in a steep decline for years.
To put a number on that, in the third quarter of 2018, five years ago, Altria sold 29.7 billion cigarettes. In the third quarter of 2023, that number had fallen to just 19.3 billion, a 35% drop. That's not a sustainable trend, though Altria has been able to offset the volume decline by charging its remaining customers more. That can only go on for so long before a tipping point is reached and the business starts to decline at a more rapid clip.
Realty Income, with a portfolio of over 13,000 properties, is by far the largest net lease REIT. It has to make huge investments in new assets each year to grow its business, which is part of the reason the dividend growth is so slow. This is a tortoise, not a hare. But there's no reason to believe that it can't keep growing -- note that it's in the process of buying one of its smaller peers, Spirit Realty.
Finding new ways to grow
The last point here is the one that is probably the most important. Altria needs to find a new product to sell if it doesn't want to bleed its cash cow cigarette business to death. So far it has tried vaping products and marijuana, and both have blown up in its face, leading to massive write-offs. Management is once again trying vaping, even as these products face increasing scrutiny.
It is hardly clear that Altria will be able to achieve this time what it has failed to do before. And even if it does find a new product to sell, the revenue from that business may only offset the ongoing declines in the cigarette operation. The highly uncertain future here should scare away most long-term dividend investors.
Realty Income, on the other hand, has been spreading its reach into new areas. It has started to buy properties in Europe, it entered the casino sector and indoor farming, and it has also begun to lend money to select customers. That's on top of looking to exploit new property types that fit within its existing retail focus, like medical retail, among others.
While not all of equal value or desirability, each adds a lever for future growth. And that's on top of acting as an industry consolidator, as noted above. While Realty Income needs to invest a lot of money to grow, it has so far been quite successful at doing so.
The risk is long term in nature
There's no reason to believe that Altria is on the verge of a dividend cut. In fact, the dividend was increased again in the third quarter of 2023. But if you take a longer-term view of the situation, the risk of a cut is probably higher than most conservative investors would be willing to accept based on the steady volume decline in the company's most important business line.
Realty Income, on the other hand, has a solid business that is still expanding and it is finding even more ways to invest profitably for the long term. Conservative income investors will likely find that story more appealing despite the lower yield.
10 stocks we like better than Altria Group
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Altria Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MO Dividend Per Share (Annual) data by YCharts The future is not equally bright Most investors probably already know the problem facing Altria's cigarette business. It has started to buy properties in Europe, it entered the casino sector and indoor farming, and it has also begun to lend money to select customers. But if you take a longer-term view of the situation, the risk of a cut is probably higher than most conservative investors would be willing to accept based on the steady volume decline in the company's most important business line.
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If all you did was look at dividend yield, then tobacco giant Altria's (NYSE: MO) 9.2% yield would easily win out over real estate investment trust (REIT) Realty Income's (NYSE: O) comparatively small 5.5%. Realty Income, meanwhile, is a real estate investment trust that owns rental real estate using the net lease model. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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If all you did was look at dividend yield, then tobacco giant Altria's (NYSE: MO) 9.2% yield would easily win out over real estate investment trust (REIT) Realty Income's (NYSE: O) comparatively small 5.5%. And while the average increase over the past decade was a more miserly 3.8%, that's probably more than offset by the dividend cut that Altria investors had to suffer through. MO Dividend Per Share (Annual) data by YCharts The future is not equally bright Most investors probably already know the problem facing Altria's cigarette business.
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The dividend has been increased annually since 2009, or a bit more than a decade. While Realty Income needs to invest a lot of money to grow, it has so far been quite successful at doing so. But if you take a longer-term view of the situation, the risk of a cut is probably higher than most conservative investors would be willing to accept based on the steady volume decline in the company's most important business line.
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d18eeda0-f930-4497-b344-5b4bfc6884e6
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714102.0
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2023-12-07 00:00:00 UTC
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Verizon (VZ) & Zebra Partner to Accelerate Private 5G Solutions
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https://www.nasdaq.com/articles/verizon-vz-zebra-partner-to-accelerate-private-5g-solutions
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Verizon Communications VZ and Zebra Technologies ZBRA have joined forces to launch specialized Zebra mobile devices and software solutions tailored for Verizon Private 5G users.
Tablets and computers developed by Zebra are specifically designed for frontline workers across industries like transportation, retail, and manufacturing. The devices are equipped with Zebra Mobility DNA software, which facilitates inventory tracking, project management, and seamless communication in various work environments.
Furthermore, these devices are certified to function with Verizon's private wireless networks and can utilize Zebra Workcloud software solutions. Zebra's devices can now leverage Verizon Private 5G, which will increase network capacity, which, in turn, enables secure communication and efficient process management.
Verizon Communications Inc. Price and Consensus
Verizon Communications Inc. price-consensus-chart | Verizon Communications Inc. Quote
The collaboration aims to streamline the adoption and implementation of these devices and provide businesses with quicker access to tools essential for leveraging their private networks effectively. Also, clients who own previous Zebra devices might be qualified for refunds or a trade-in for newer models via Zebra.
Verizon offers communication services in the form of local phone service, long distance, wireless and data services. The company is witnessing significant 5G adoption and fixed wireless broadband momentum. The telecom giant plans to accelerate the availability of its 5G ultra-wideband network across the country. Its growth strategy includes 5G mobility, nationwide broadband and mobile edge computing and business solutions.
Recently, the company secured a $15 million contract from Navy Morale, Welfare, and Recreation under the federal government’s Enterprise Infrastructure Solutions (EIS) program. Under the contract, Verizon will supply voice and data services across national and international locations.
The Navy divided the EIS award into two segments — voice and data. For voice services, Verizon plans to integrate innovative technologies to meet the Navy’s evolving voice needs. Simultaneously, it will upgrade data services, transitioning from the Navy’s Time Division Multiplexing voice platform to ethernet.
Verizon currently carries a Zacks Rank #3 (Hold). The stock has gained 3.8% in the past year against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the broader technology space are Pegasystems PEGA and Flex FLEX. Each stock presently sports a Zacks Rank #1 (Strong 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 49% 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 20.1% in the past year.
Only $1 to See All Zacks' Buys and Sells
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Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : Free Stock Analysis Report
Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 devices are equipped with Zebra Mobility DNA software, which facilitates inventory tracking, project management, and seamless communication in various work environments. Zebra's devices can now leverage Verizon Private 5G, which will increase network capacity, which, in turn, enables secure communication and efficient process management. Recently, the company secured a $15 million contract from Navy Morale, Welfare, and Recreation under the federal government’s Enterprise Infrastructure Solutions (EIS) program.
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Verizon Communications VZ and Zebra Technologies ZBRA have joined forces to launch specialized Zebra mobile devices and software solutions tailored for Verizon Private 5G users. Verizon Communications Inc. Price and Consensus Verizon Communications Inc. price-consensus-chart | Verizon Communications Inc. Quote The collaboration aims to streamline the adoption and implementation of these devices and provide businesses with quicker access to tools essential for leveraging their private networks effectively. Click to get this free report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Verizon Communications VZ and Zebra Technologies ZBRA have joined forces to launch specialized Zebra mobile devices and software solutions tailored for Verizon Private 5G users. Verizon Communications Inc. Price and Consensus Verizon Communications Inc. price-consensus-chart | Verizon Communications Inc. Quote The collaboration aims to streamline the adoption and implementation of these devices and provide businesses with quicker access to tools essential for leveraging their private networks effectively. Click to get this free report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Verizon Communications VZ and Zebra Technologies ZBRA have joined forces to launch specialized Zebra mobile devices and software solutions tailored for Verizon Private 5G users. The stock has gained 3.8% in the past year against the industry’s decline of 0.6%. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks in the broader technology space are Pegasystems PEGA and Flex FLEX.
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f248cbc5-582d-4462-afd0-f9e4a163d371
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714103.0
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2023-12-07 00:00:00 UTC
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Should You Buy ChargePoint Stock on the Dip for 2024?
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https://www.nasdaq.com/articles/should-you-buy-chargepoint-stock-on-the-dip-for-2024
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2023 has been a brutal year for ChargePoint Holdings (NYSE: CHPT). Despite growing sales, the electric vehicle (EV) charging infrastructure company has suffered big losses and burned through cash rapidly. The biggest blow, though, came in November when ChargePoint's CEO and CFO abruptly left the company, leaving investors worried about the company's future. ChargePoint stock crashed, plunging below $2 a share.
Since then, all eyes have been on ChargePoint's fiscal third-quarter earnings report, with impatient investors hoping the company will shed some light on its plans to turn around. Turns out, ChargePoint failed to execute in the third quarter by its own admission, although new CEO Rick Wilmer expects things to improve going forward. Since Wilmer was the chief operating officer at ChargePoint for 18 months before taking over as the CEO, he is familiar with the business and claims to have introduced several initiatives to revamp the company. Should investors then keep their faith alive and buy ChargePoint stock while it's still languishing?
ChargePoint's dual problem
ChargePoint had already warned investors that its third quarter will be a soft one. One look at this chart, and it is evident where the company is flailing.
Image source: The Motley Fool.
ChargePoint is facing a dual problem no young company would want to have: declining sales and rising costs.
As is evident from the chart, ChargePoint's revenue fell 12% year over year in Q3. Management blamed three factors for the decline: declining sales and deliveries of commercial vehicles, a fall in demand for chargers amid higher interest rates and economic uncertainty, and automotive labor disputes in the U.S. that hurt business at automotive original equipment manufacturers.
What's worrisome, though, is that even ChargePoint didn't expect its revenue to fall this much -- it had previously guided for Q3 revenue of at least $150 million. Moreover, its primary business of networked charging systems saw the biggest decline, with revenue falling 12% year over year to around $74 million. ChargePoint derives the remaining revenue from hardware and software subscriptions and other non-core professional services.
ChargePoint, however, continues to incur high fixed costs on units produced, which is why its cost of revenue rose and gross profit tanked. A noncash impairment charge primarily on inventory hit the company's bottom line further, driving its gross margin to negative 22% from positive 18% in the year-ago quarter. That's a dramatic fall, and its margin is one number investors should keep an eye on in the coming quarters as ChargePoint expects to wind down inventory in line with demand.
So is ChargePoint stock a buy for 2024?
To be fair, many of ChargePoint's challenges arise from external factors, and there's only so much the company can do about them. For instance, several of ChargePoint's customers are awaiting deliveries of their commercial vehicles and have, therefore, postponed investments in their charging infrastructure. During its third-quarterearnings call ChargePoint revealed one customer to be waiting on more than 40 buses, another waiting on 500 vans, and yet another on 100 heavy-duty trucks.
One area that's within ChargePoint's control, though, is costs, and the company claims to be working on it so that it can achieve its financial goal of turning positive non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of calendar year 2024. The company foresees modest revenue growth in the coming quarters, but it also expects margins to improve modestly quarter after quarter, which should help it achieve its goal.
Any improvement in margins could propel ChargePoint stock higher in 2024, but should you bet on that? I wouldn't, because ChargePoint has too many problems at hand to deal with. This chart, perhaps, reveals its biggest challenge and growth hurdle now.
CHPT Cash from Operations (TTM) data by YCharts
ChargePoint ended the third quarter with cash and cash equivalents of around $397 million. Given how rapidly ChargePoint is burning cash as evidenced in the chart above, that money should only last some quarters, which means the company could issue more stock to raise funds. Meanwhile, there's little or practically no scope left for ChargePoint to create a niche for itself in the EV charging market now that Tesla's North American Charging Standard could potentially become the overall standard in the U.S. Long story short, ChargePoint's latest earnings report has given investors nothing new to look forward to.
10 stocks we like better than ChargePoint
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and ChargePoint 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
Neha Chamaria 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since Wilmer was the chief operating officer at ChargePoint for 18 months before taking over as the CEO, he is familiar with the business and claims to have introduced several initiatives to revamp the company. A noncash impairment charge primarily on inventory hit the company's bottom line further, driving its gross margin to negative 22% from positive 18% in the year-ago quarter. One area that's within ChargePoint's control, though, is costs, and the company claims to be working on it so that it can achieve its financial goal of turning positive non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of calendar year 2024.
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Despite growing sales, the electric vehicle (EV) charging infrastructure company has suffered big losses and burned through cash rapidly. Management blamed three factors for the decline: declining sales and deliveries of commercial vehicles, a fall in demand for chargers amid higher interest rates and economic uncertainty, and automotive labor disputes in the U.S. that hurt business at automotive original equipment manufacturers. The company foresees modest revenue growth in the coming quarters, but it also expects margins to improve modestly quarter after quarter, which should help it achieve its goal.
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ChargePoint's dual problem ChargePoint had already warned investors that its third quarter will be a soft one. Given how rapidly ChargePoint is burning cash as evidenced in the chart above, that money should only last some quarters, which means the company could issue more stock to raise funds. Meanwhile, there's little or practically no scope left for ChargePoint to create a niche for itself in the EV charging market now that Tesla's North American Charging Standard could potentially become the overall standard in the U.S. Long story short, ChargePoint's latest earnings report has given investors nothing new to look forward to.
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So is ChargePoint stock a buy for 2024? The company foresees modest revenue growth in the coming quarters, but it also expects margins to improve modestly quarter after quarter, which should help it achieve its goal. * They just revealed what they believe are the ten best stocks for investors to buy right now... and ChargePoint wasn't one of them!
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73e321bf-beac-433b-88b7-136fb7cb65db
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714104.0
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2023-12-07 00:00:00 UTC
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Viasat (VSAT) & Airbus Partner to Enhance Aircraft Connectivity
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https://www.nasdaq.com/articles/viasat-vsat-airbus-partner-to-enhance-aircraft-connectivity
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Viasat VSAT has collaborated with Airbus to equip the Irish Air Corps' (“IAC”) Airbus C295 MSA aircraft with an advanced, secure, and adaptable Ku-band and Ka-band airborne technology — GAT-5530. The C295 MSA aircraft serves as a tactical transport and ISR platform for various military operations for the Irish Defense Forces.
The integration aims to enhance the aircraft capabilities of the Irish Defense Forces, specifically focusing on the Military Air Defense of Ireland airspace and supporting UN peacekeeping operations. Earlier this year, Airbus had completed the delivery of two C295 MSA aircraft to the Irish Defense Forces.
The inclusion of Viasat's GAT-5530 terminal significantly boosts the aircraft functionality by providing secure satellite connectivity. The technology supports a range of command, control and communication mission needs like tactical transport and communication as well as intelligence surveillance and reconnaissance.
Viasat Inc. Price and Consensus
Viasat Inc. price-consensus-chart | Viasat Inc. Quote
The distinguishing feature of the GAT-5530 is its ability to operate across the entire ITU Ku-band and Ka-band, including commercial and military Ka-band frequencies. This offers increased operational flexibility for military users seeking resilience in their communication systems.
Apart from this, Viasat's broadband SATCOM service also provides ample capacity for real-time aircraft health data monitoring, facilitating condition-based maintenance and minimizing operational downtime. Moreover, Viasat has entered into a contract with the IAC to manage SATCOM services across multiple aircraft, including the C295 MSA and a fleet of PC-12 special mission aircraft.
Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. The company provides high-bandwidth, high-performance communications solutions to the public as well as military enterprises and government enterprises.
The company is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. ViaSat-3 class of Ka-band satellites are expected to provide enhanced bandwidth with greater flexibility to move and concentrate that capacity virtually anywhere there is demand.
Viasat currently carries a Zacks Rank #2 (Buy). The stock has lost 24.4% over the past year compared with the industry's decline of 3.8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-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. 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 49% 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 20.1% 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%.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Flex Ltd. (FLEX) : Free Stock Analysis Report
Viasat Inc. (VSAT) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from this, Viasat's broadband SATCOM service also provides ample capacity for real-time aircraft health data monitoring, facilitating condition-based maintenance and minimizing operational downtime. Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. ViaSat-3 class of Ka-band satellites are expected to provide enhanced bandwidth with greater flexibility to move and concentrate that capacity virtually anywhere there is demand.
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Viasat VSAT has collaborated with Airbus to equip the Irish Air Corps' (“IAC”) Airbus C295 MSA aircraft with an advanced, secure, and adaptable Ku-band and Ka-band airborne technology — GAT-5530. 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 Viasat Inc. (VSAT) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Other Stocks to Consider Some other top-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. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Viasat Inc. (VSAT) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Viasat VSAT has collaborated with Airbus to equip the Irish Air Corps' (“IAC”) Airbus C295 MSA aircraft with an advanced, secure, and adaptable Ku-band and Ka-band airborne technology — GAT-5530. The company is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. Image Source: Zacks Investment Research Other Stocks to Consider Some other top-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS.
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714105.0
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2023-12-07 00:00:00 UTC
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3 Stocks Benefitting from the Global Electric Bike Boom
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
E-biking, or electric biking, is a form of cycling that uses a battery-powered motor to assist the rider. E-biking has risen in popularity over the past decade, particularly in urban areas, because of its convenience and affordability. Ultimately, e-biking has several benefits as part of an urban transit system: it can help people save time and money, reduce traffic congestion and air pollution, and improve their health and fitness. This has led to this list of e-bike stocks to buy.
According to a report by Markets and Markets, the global e-bike market is likely to grow at a compound annual growth rate (CAGR) of 8.4% from 2023 to 2028. Below are three stocks benefitting from this trend.
So with this industry growth in mind, here are three e-bike stocks to consider.
Uber Technologies (UBER)
Source: NYCStock / Shutterstock.com
Uber (NYSE:UBER) is a leading ride-hailing and delivery platform that operates in over 60 countries. However, outside of its normal services, Uber offers e-bike rentals and aims to expand its e-bike service to more markets and integrate it with its other mobility options.
One of the advantages of Uber’s e-bike service is that it uses a dockless system, which means that users can pick up and drop off the e-bikes anywhere within a designated area. This makes the service more convenient and accessible than traditional bike-sharing systems that require users to return the bikes to specific stations. Another advantage is that Uber’s e-bikes are equipped with GPS trackers, smart locks, and electric brakes, which enhance the safety and security of the riders and the bikes.
Due to the company’s expansive reach, it is sure to benefit from the continual uptake in e-biking.
Panasonic (PCRFY)
Source: moreimages / Shutterstock
Panasonic (OTCMKTS:PCRFY) is a Japanese multinational electronics company well-known for producing TVs, kitchen appliances, smart home technology, and a host of other consumer electronics. Beyond those, Panasonic also designs and creates batteries, sensors, and motors for e-bikes. Panasonic is one of the largest suppliers of e-bike components in the world.
The conglomerate has partnered with several e-bike manufacturers, such as Flyer, Hercules, and Crussis, to provide them with high-quality and reliable products. Panasonic also develops its own e-bike models, such as the GX Power series.
As e-biking increases in popularity, Panasonic will most likely benefit from both angles as a both a supplier of e-bike components and a manufacturer of its own e-bikes. Panasonic shares have risen more than 18% since the start of the year.
Shimano (SMNNY)
Source: Chan2545 / Shutterstock
Shimano (OTCMKTS:SMNNY) is another Japanese manufacturer focusing on bicycle components, fishing tackle, and rowing equipment. The company has been creating products for cycling for over 100 years and continues to innovate in contemporary times.
In particular, Shimano is best known for its gears, brakes, and pedals for e-bikes. Moreover, the company offers a range of e-bike systems, such as the E5000, E6100, and E7000 that cater to different types of riders and terrains.
Further investments in research and development to improve the performance of its e-bike technology could help transform Shimano into a force to be reckoned with in the cycling industry. Investors curious on e-bike stocks should definitely keep this Japanese manufacturer on their watchlists.
On the date of publication, Tyrik Torres 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.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.
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The post 3 Stocks Benefitting from the Global Electric Bike Boom 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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Ultimately, e-biking has several benefits as part of an urban transit system: it can help people save time and money, reduce traffic congestion and air pollution, and improve their health and fitness. Another advantage is that Uber’s e-bikes are equipped with GPS trackers, smart locks, and electric brakes, which enhance the safety and security of the riders and the bikes. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Stocks Benefitting from the Global Electric Bike Boom appeared first on InvestorPlace.
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Uber Technologies (UBER) Source: NYCStock / Shutterstock.com Uber (NYSE:UBER) is a leading ride-hailing and delivery platform that operates in over 60 countries. Panasonic (PCRFY) Source: moreimages / Shutterstock Panasonic (OTCMKTS:PCRFY) is a Japanese multinational electronics company well-known for producing TVs, kitchen appliances, smart home technology, and a host of other consumer electronics. Shimano (SMNNY) Source: Chan2545 / Shutterstock Shimano (OTCMKTS:SMNNY) is another Japanese manufacturer focusing on bicycle components, fishing tackle, and rowing equipment.
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However, outside of its normal services, Uber offers e-bike rentals and aims to expand its e-bike service to more markets and integrate it with its other mobility options. One of the advantages of Uber’s e-bike service is that it uses a dockless system, which means that users can pick up and drop off the e-bikes anywhere within a designated area. As e-biking increases in popularity, Panasonic will most likely benefit from both angles as a both a supplier of e-bike components and a manufacturer of its own e-bikes.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips E-biking, or electric biking, is a form of cycling that uses a battery-powered motor to assist the rider. Below are three stocks benefitting from this trend. As e-biking increases in popularity, Panasonic will most likely benefit from both angles as a both a supplier of e-bike components and a manufacturer of its own e-bikes.
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714106.0
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2023-12-07 00:00:00 UTC
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Energy Sector Update for 12/07/2023: TALO, CVX, WDS, XLE, USO, UNG
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https://www.nasdaq.com/articles/energy-sector-update-for-12-07-2023%3A-talo-cvx-wds-xle-uso-ung
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Energy stocks were advancing premarket Thursday with the Energy Select Sector SPDR Fund (XLE) up 0.4% recently.
The United States Oil Fund (USO) was 1.3% higher and the United States Natural Gas Fund (UNG) was down 0.4%.
Front-month US West Texas Intermediate crude oil was up 1.3% at $70.31 per barrel at the New York Mercantile Exchange. Global benchmark North Sea crude oil gained 1.2% to $75.21 per barrel, and natural gas futures were 0.1% lower at $2.57 per 1 million British Thermal Units.
Talos Energy (TALO) was gaining over 5% in value after saying it continues to expect Q4 average production of 66,500 to 68,500 barrels of oil equivalent per day.
Chevron (CVX) was slightly higher after saying it expects organic capital expenditure between $15.5 billion and $16.5 billion for consolidated subsidiaries and an affiliate capital expenditure budget of roughly $3 billion for 2024.
Woodside Energy Group (WDS) and Santos are in preliminary discussions over a potential merger, the companies said in separate statements in response to media speculation. Woodside Energy Group 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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Front-month US West Texas Intermediate crude oil was up 1.3% at $70.31 per barrel at the New York Mercantile Exchange. Global benchmark North Sea crude oil gained 1.2% to $75.21 per barrel, and natural gas futures were 0.1% lower at $2.57 per 1 million British Thermal Units. Woodside Energy Group (WDS) and Santos are in preliminary discussions over a potential merger, the companies said in separate statements in response to media speculation.
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The United States Oil Fund (USO) was 1.3% higher and the United States Natural Gas Fund (UNG) was down 0.4%. Global benchmark North Sea crude oil gained 1.2% to $75.21 per barrel, and natural gas futures were 0.1% lower at $2.57 per 1 million British Thermal Units. Talos Energy (TALO) was gaining over 5% in value after saying it continues to expect Q4 average production of 66,500 to 68,500 barrels of oil equivalent per day.
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Energy stocks were advancing premarket Thursday with the Energy Select Sector SPDR Fund (XLE) up 0.4% recently. The United States Oil Fund (USO) was 1.3% higher and the United States Natural Gas Fund (UNG) was down 0.4%. Talos Energy (TALO) was gaining over 5% in value after saying it continues to expect Q4 average production of 66,500 to 68,500 barrels of oil equivalent per day.
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The United States Oil Fund (USO) was 1.3% higher and the United States Natural Gas Fund (UNG) was down 0.4%. Front-month US West Texas Intermediate crude oil was up 1.3% at $70.31 per barrel at the New York Mercantile Exchange. Woodside Energy Group was marginally advancing pre-bell.
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2023-12-07 00:00:00 UTC
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Brazil auto production to grow 4.7% in 2024, association says
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https://www.nasdaq.com/articles/brazil-auto-production-to-grow-4.7-in-2024-association-says
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Recasts to add 2024 projections
SAO PAULO, Dec 7 (Reuters) - Brazil's auto industry production is expected to rise 4.7% in 2024 from this year, automaker association Anfavea said on Thursday, estimating that 2.47 million vehicles will be manufactured in the country next year.
Anfavea also said local auto sales are slated to grow 7% next year to 2.45 million units, while exports were estimated to rise 2% to 407,000 vehicles.
(Reporting by Alberto Alerigi Jr. and Gabriel Araujo; Editing by Steven Grattan)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts to add 2024 projections SAO PAULO, Dec 7 (Reuters) - Brazil's auto industry production is expected to rise 4.7% in 2024 from this year, automaker association Anfavea said on Thursday, estimating that 2.47 million vehicles will be manufactured in the country next year. Anfavea also said local auto sales are slated to grow 7% next year to 2.45 million units, while exports were estimated to rise 2% to 407,000 vehicles. (Reporting by Alberto Alerigi Jr. and Gabriel Araujo; Editing by Steven Grattan) ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts to add 2024 projections SAO PAULO, Dec 7 (Reuters) - Brazil's auto industry production is expected to rise 4.7% in 2024 from this year, automaker association Anfavea said on Thursday, estimating that 2.47 million vehicles will be manufactured in the country next year. Anfavea also said local auto sales are slated to grow 7% next year to 2.45 million units, while exports were estimated to rise 2% to 407,000 vehicles. (Reporting by Alberto Alerigi Jr. and Gabriel Araujo; Editing by Steven Grattan) ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts to add 2024 projections SAO PAULO, Dec 7 (Reuters) - Brazil's auto industry production is expected to rise 4.7% in 2024 from this year, automaker association Anfavea said on Thursday, estimating that 2.47 million vehicles will be manufactured in the country next year. Anfavea also said local auto sales are slated to grow 7% next year to 2.45 million units, while exports were estimated to rise 2% to 407,000 vehicles. (Reporting by Alberto Alerigi Jr. and Gabriel Araujo; Editing by Steven Grattan) ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts to add 2024 projections SAO PAULO, Dec 7 (Reuters) - Brazil's auto industry production is expected to rise 4.7% in 2024 from this year, automaker association Anfavea said on Thursday, estimating that 2.47 million vehicles will be manufactured in the country next year. Anfavea also said local auto sales are slated to grow 7% next year to 2.45 million units, while exports were estimated to rise 2% to 407,000 vehicles. (Reporting by Alberto Alerigi Jr. and Gabriel Araujo; Editing by Steven Grattan) ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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714108.0
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2023-12-07 00:00:00 UTC
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Financial Sector Update for 12/07/2023: HCI, HOOD, CME, XLF, FAS, FAZ
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Financial stocks were gaining premarket Thursday as the Financial Select Sector SPDR Fund (XLF) was up 0.1% recently.
The Direxion Daily Financial Bull 3X Shares (FAS) was 0.3% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.4%.
HCI Group (HCI) was down more than 7% after it priced an underwritten offering of 1 million common shares at $78 per share for gross proceeds of about $78 million.
Robinhood Markets (HOOD) said it has introduced its crypto trading platform in the European Union. Robinhood Markets was over 1% lower pre-bell.
CME Group (CME) was advancing 0.3% after saying its board has approved an amended contract to extend the tenure of Chairman and Chief Executive Officer Terry Duffy through Dec. 31, 2025.
The views and 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 0.3% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.4%. Robinhood Markets (HOOD) said it has introduced its crypto trading platform in the European Union. CME Group (CME) was advancing 0.3% after saying its board has approved an amended contract to extend the tenure of Chairman and Chief Executive Officer Terry Duffy through Dec. 31, 2025.
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The Direxion Daily Financial Bull 3X Shares (FAS) was 0.3% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.4%. HCI Group (HCI) was down more than 7% after it priced an underwritten offering of 1 million common shares at $78 per share for gross proceeds of about $78 million. CME Group (CME) was advancing 0.3% after saying its board has approved an amended contract to extend the tenure of Chairman and Chief Executive Officer Terry Duffy through Dec. 31, 2025.
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The Direxion Daily Financial Bull 3X Shares (FAS) was 0.3% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.4%. HCI Group (HCI) was down more than 7% after it priced an underwritten offering of 1 million common shares at $78 per share for gross proceeds of about $78 million. Robinhood Markets (HOOD) said it has introduced its crypto trading platform in the European Union.
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The Direxion Daily Financial Bull 3X Shares (FAS) was 0.3% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.4%. Robinhood Markets (HOOD) said it has introduced its crypto trading platform in the European Union. Robinhood Markets was over 1% lower pre-bell.
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714109.0
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2023-12-07 00:00:00 UTC
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Consumer Sector Update for 12/07/2023: DG, GEF, OXM, XLP, XLY
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https://www.nasdaq.com/articles/consumer-sector-update-for-12-07-2023%3A-dg-gef-oxm-xlp-xly
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Consumer stocks were steady pre-bell Thursday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were recently inactive.
Dollar General (DG) was over 3% higher after reported fiscal Q3 net sales of $9.69 billion compared with $9.46 billion a year earlier. Analysts surveyed by Capital IQ estimated $9.68 billion.
Greif (GEF) was more than 3% lower after it reported fiscal Q4 earnings of $1.16 per share, down from $1.67 a year earlier. Three analysts polled by Capital IQ expected $1.21.
Oxford Industries (OXM) was down nearly 7% after it reported fiscal Q3 adjusted earnings of $1.01 a share, down from $1.46 a year earlier.
The views and 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 surveyed by Capital IQ estimated $9.68 billion. Greif (GEF) was more than 3% lower after it reported fiscal Q4 earnings of $1.16 per share, down from $1.67 a year earlier. Oxford Industries (OXM) was down nearly 7% after it reported fiscal Q3 adjusted earnings of $1.01 a share, down from $1.46 a year earlier.
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Consumer stocks were steady pre-bell Thursday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were recently inactive. Dollar General (DG) was over 3% higher after reported fiscal Q3 net sales of $9.69 billion compared with $9.46 billion a year earlier. Greif (GEF) was more than 3% lower after it reported fiscal Q4 earnings of $1.16 per share, down from $1.67 a year earlier.
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Consumer stocks were steady pre-bell Thursday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were recently inactive. Dollar General (DG) was over 3% higher after reported fiscal Q3 net sales of $9.69 billion compared with $9.46 billion a year earlier. Oxford Industries (OXM) was down nearly 7% after it reported fiscal Q3 adjusted earnings of $1.01 a share, down from $1.46 a year earlier.
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Consumer stocks were steady pre-bell Thursday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were recently inactive. Dollar General (DG) was over 3% higher after reported fiscal Q3 net sales of $9.69 billion compared with $9.46 billion a year earlier. Analysts surveyed by Capital IQ estimated $9.68 billion.
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89e35672-482c-43a0-83e0-dab67dc64baf
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714110.0
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2023-12-07 00:00:00 UTC
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Paycom (PAYC) Unveils GONE for Time-off Requests Management
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https://www.nasdaq.com/articles/paycom-payc-unveils-gone-for-time-off-requests-management
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Paycom Software PAYC has recently introduced a feature named GONE that enables automated decisions for time-off requests. Companies using the new “GONE” feature will now be able to manage time-off requests efficiently by using a decision engine.
The feature considers various factors, including staffing needs, employee hours, company policies and seniority, while also ensuring fairness, transparency and promptness. GONE is designed to reduce inaccuracies in approvals or denials of requests, minimize wait time for decision making, and consistent decision making based on guidelines.
This newest feature is one in the long line of product and feature launches by Paycom this year. Previously, the company launched Paycom Everyday and Client Action Center in August and June 2023, respectively.
Paycom Software, Inc. Price and Consensus
Paycom Software, Inc. price-consensus-chart | Paycom Software, Inc. Quote
Paycom Everyday enables employees to receive their pay daily without extra fees while helping employers streamline their payroll process through a unified system where employees operate their payroll.
On the other hand, the Client Action Center from Paycom is tailored for payroll administrators and includes an intuitive dashboard. This center offers immediate visibility into wire transfers, delivering real-time updates and valuable insights.
The introduction of GONE, alongside other product launches and Paycom’s wide range of offerings, will continue to assist the company in acquiring new customers. Nevertheless, the increasing competition within the HCM software market might create pricing pressures, impacting Paycom’s margins.
Furthermore, growing concerns about a recession alongside persistent macroeconomic challenges and geopolitical issues have led to significant headcount reductions across Paycom’s clientele. The scenario may affect the company’s business due to lower transaction volumes or loss of clients.
Zacks Rank & Stocks to Consider
Paycom currently carries a Zacks Rank #3 (Hold). Shares of PAYC have declined 40.1% year to date.
Some better-ranked stocks from the broader technology sector are NetEase NTES, Bel Fuse BELFB and Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NetEase's fourth-quarter 2023 earnings has been revised upward by 10 cents to $1.83 per share in the past 30 days. For fiscal 2023, earnings estimates have increased 30 cents to $7.26 per share in the past 30 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 16.63%. Shares of NTES have gained 41.2% year to date.
The Zacks Consensus Estimate for Bel Fuse’s fourth-quarter fiscal 2023 earnings has been revised by 38 cents northward to $1.44 per share in the past 60 days. For fiscal 2024, earnings estimates have increased 72 cents to $6.28 in the past 60 days.
BELFB’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 56.92%. Shares of BELFB have surged 67.1% year to date.
The Zacks Consensus Estimate for Dropbox's fourth-quarter 2023 earnings has remained unchanged for the past 90 days at 48 cents per share. For fiscal 2023, earnings estimates have been revised 7 cents upward to $1.96 per share in the past 30 days.
DBX’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.14%. Shares of DBX have gained 23.3% year to date.
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NetEase, Inc. (NTES) : Free Stock Analysis Report
Bel Fuse Inc. (BELFB) : Free Stock Analysis Report
Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
Dropbox, Inc. (DBX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 feature considers various factors, including staffing needs, employee hours, company policies and seniority, while also ensuring fairness, transparency and promptness. Furthermore, growing concerns about a recession alongside persistent macroeconomic challenges and geopolitical issues have led to significant headcount reductions across Paycom’s clientele. Some better-ranked stocks from the broader technology sector are NetEase NTES, Bel Fuse BELFB and Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present.
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Paycom Software, Inc. Price and Consensus Paycom Software, Inc. price-consensus-chart | Paycom Software, Inc. Quote Paycom Everyday enables employees to receive their pay daily without extra fees while helping employers streamline their payroll process through a unified system where employees operate their payroll. The Zacks Consensus Estimate for Bel Fuse’s fourth-quarter fiscal 2023 earnings has been revised by 38 cents northward to $1.44 per share in the past 60 days. Click to get this free report NetEase, Inc. (NTES) : Free Stock Analysis Report Bel Fuse Inc. (BELFB) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : Free Stock Analysis Report Dropbox, Inc. (DBX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Paycom Software, Inc. Price and Consensus Paycom Software, Inc. price-consensus-chart | Paycom Software, Inc. Quote Paycom Everyday enables employees to receive their pay daily without extra fees while helping employers streamline their payroll process through a unified system where employees operate their payroll. The Zacks Consensus Estimate for Bel Fuse’s fourth-quarter fiscal 2023 earnings has been revised by 38 cents northward to $1.44 per share in the past 60 days. Click to get this free report NetEase, Inc. (NTES) : Free Stock Analysis Report Bel Fuse Inc. (BELFB) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : Free Stock Analysis Report Dropbox, Inc. (DBX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Previously, the company launched Paycom Everyday and Client Action Center in August and June 2023, respectively. Some better-ranked stocks from the broader technology sector are NetEase NTES, Bel Fuse BELFB and Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present. For fiscal 2023, earnings estimates have increased 30 cents to $7.26 per share in the past 30 days.
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2023-12-07 00:00:00 UTC
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Reasons to Retain Enterprise Products (EPD) in Your Portfolio Now
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https://www.nasdaq.com/articles/reasons-to-retain-enterprise-products-epd-in-your-portfolio-now
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Enterprise Products Partners LP EPD is a leading midstream energy player with low exposure to volume and price risks. The Zacks Consensus Estimate for the partnership’s 2024 earnings per unit is pegged at $2.63, indicating a year-over-year increase of 5.7%.
Factors Working in Favor
Enterprise Products, which currently carries a Zacks Rank #3 (Hold), has a stable business model and is not significantly exposed to the volatility in oil and gas prices. It generates stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
The midstream infrastructure provider has storage assets that can hold more than 260 million barrels of NGL, petrochemicals, refined products and crude oil. These assets can store 14 billion cubic feet of natural gas. Enterprise Products has $6.8 billion of key approved projects under construction that are likely to provide incremental fee-based revenues.
The partnership’s balance sheet has lower debt exposure than the composite stocks belonging to the industry. The liquidity profile of Enterprise Products is impressive, as it reported consolidated liquidity of $3.8 billion, which includes unrestricted cash and available borrowing capacity.
Risks
Enterprise Products has several assets that have been providing midstream services for many years. This has raised the possibility of investing massive capital in maintaining those infrastructures. Thus, EPD could witness an increase in maintenance or repair expenses.
A slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output, is hurting production. This is affecting the demand for transportation and storage to some extent.
Stocks to Consider
Some better-ranked stocks for investors interested in the energy space are Southwest Gas Holdings Inc. SWX, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Southwest Gas Holdings sports a Zacks Rank #1 (Strong Buy) at present, Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Southwest Gas Holdings is making progress in its transition to a pure-play natural gas leader. The company's affordable energy solutions are witnessing heightened demand from its growing customer base.
Weatherfordis a key energy player and engaged in offering exclusive drilling technologies that will maximize clients’ reservoir exposure. It is also involved in efficient well construction and completion activities.
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.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
Southwest Gas Corporation (SWX) : 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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Enterprise Products Partners LP EPD is a leading midstream energy player with low exposure to volume and price risks. Factors Working in Favor Enterprise Products, which currently carries a Zacks Rank #3 (Hold), has a stable business model and is not significantly exposed to the volatility in oil and gas prices. The midstream infrastructure provider has storage assets that can hold more than 260 million barrels of NGL, petrochemicals, refined products and crude oil.
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Stocks to Consider Some better-ranked stocks for investors interested in the energy space are Southwest Gas Holdings Inc. SWX, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Southwest Gas Holdings sports a Zacks Rank #1 (Strong Buy) at present, Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy) each. Click to get this free report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report Southwest Gas Corporation (SWX) : 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 Some better-ranked stocks for investors interested in the energy space are Southwest Gas Holdings Inc. SWX, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Southwest Gas Holdings sports a Zacks Rank #1 (Strong Buy) at present, Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy) each. Click to get this free report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report Southwest Gas Corporation (SWX) : 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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It generates stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products. Risks Enterprise Products has several assets that have been providing midstream services for many years. While Southwest Gas Holdings sports a Zacks Rank #1 (Strong Buy) at present, Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy) each.
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714112.0
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2023-12-07 00:00:00 UTC
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Globus Medical (GMED) Gains From NuVasive Deal, Macro Woes Stay
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https://www.nasdaq.com/articles/globus-medical-gmed-gains-from-nuvasive-deal-macro-woes-stay
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Globus Medical GMED continues to gain from the surging demand for its Musculoskeletal Solutions products. However, we are worried about the challenging pricing scenario that continues to plague Globus Medical. The stock carries a Zacks Rank #3 (Hold).
Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures.
The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants and cervical offerings. Over the past couple of quarters, this business has registered above-market growth, driven by competitive rep recruiting from prior quarters and robotic pull-through.
In September 2023, Globus Medical completed the merger with NuVasive. The combined company is expected to create a global musculoskeletal company focused on rapid innovation, addressing unmet clinical needs and improving offerings to surgeons and patients. The combination capitalizes on GMED’s complementary commercial organization and should allow the company to accelerate its globalization strategies to increase customer reach and strengthen surgeon relationships.
Globus Medical, Inc. Price
Globus Medical, Inc. price | Globus Medical, Inc. Quote
According to Globus Medical, both the companies’ operational footprints are highly complementary, allowing them to better leverage each other's manufacturing and supply-chain resources to increase internal production while reducing the amount of capital investment required as stand-alone. This way, they can redirect investment and improve cash flow.
In line with the company’s business strategy to focus on its integrated product development, Globus Medical is consistently making efforts in research and development. Per the company, its team-oriented approach, active surgeon input and demonstrated capabilities position it to maintain a rapid rate of product launches.
In September 2023, Globus Medical launched the Precice Bone Transport system commercially in the targeted areas by NuVasive Specialised Orthopaedics (“NSO”). The most recent addition to the less intrusive NSO portfolio received CE marking and approval, and it is now offered in a few regions.
Meanwhile, like other industry players, GMED is currently grappling with negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are adversely affecting the company’s operations and financial performance. Global inflation, in particular, has led to a significant rise in the cost of raw materials for GMED. In the third quarter, Globus Medical incurred a 139.6% surge in the cost of goods sold.
These macroeconomic factors, along with the rising wage and raw material costs, are also leading to a significant escalation in the company’s operating expenses. SG&A expenses in the reported quarter were up 46.6% from the year-ago quarter. Research and development expenses increased 56.8% year over year.
Further, the presence of a large number of players made the musculoskeletal device market intensely competitive. The orthopedic industry, in particular, is highly competitive with the presence of more prominent players like Zimmer Biomet, Stryker, Johnson & Johnson’s DePuy, Smith & Nephew and Medtronic. Globus Medical needs to constantly introduce or acquire new products to withstand competitive pressure and maintain its market share.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. Haemonetics and DexCom each presently carry a Zacks Rank #2 (Buy), and Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has decreased 1% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.89 in 2023 and $4.07 to $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have risen from $1.61 to $1.91 in the past 30 days. Shares of the company have dropped 36.5% in the past year compared with the industry’s decline of 3.3%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.39 to $1.43 in the past 30 days. Shares of the company have advanced 0.1% in the past year compared with the industry’s decline of 4.7%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Globus Medical, Inc. (GMED) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures. The combination capitalizes on GMED’s complementary commercial organization and should allow the company to accelerate its globalization strategies to increase customer reach and strengthen surgeon relationships. Meanwhile, like other industry players, GMED is currently grappling with negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility.
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Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures. Globus Medical, Inc. Price Globus Medical, Inc. price | Globus Medical, Inc. Quote According to Globus Medical, both the companies’ operational footprints are highly complementary, allowing them to better leverage each other's manufacturing and supply-chain resources to increase internal production while reducing the amount of capital investment required as stand-alone. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Globus Medical, Inc. Price Globus Medical, Inc. price | Globus Medical, Inc. Quote According to Globus Medical, both the companies’ operational footprints are highly complementary, allowing them to better leverage each other's manufacturing and supply-chain resources to increase internal production while reducing the amount of capital investment required as stand-alone. In line with the company’s business strategy to focus on its integrated product development, Globus Medical is consistently making efforts in research and development. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Globus Medical GMED continues to gain from the surging demand for its Musculoskeletal Solutions products. Globus Medical, Inc. Price Globus Medical, Inc. price | Globus Medical, Inc. Quote According to Globus Medical, both the companies’ operational footprints are highly complementary, allowing them to better leverage each other's manufacturing and supply-chain resources to increase internal production while reducing the amount of capital investment required as stand-alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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714113.0
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2023-12-07 00:00:00 UTC
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3 Defense Equipment Stocks to Buy Amid Persistent Supply-Chain Woes
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https://www.nasdaq.com/articles/3-defense-equipment-stocks-to-buy-amid-persistent-supply-chain-woes
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Persistent supply-chain issues may impact the operating results of the aerospace-defense equipment stocks. Also, high inflation rates and jet fuel prices continue to put pressure on airlines, which, in turn, may hurt the industry players. Nevertheless, valuable acquisitions are projected to improve economies of scale for the aerospace-defense equipment stocks. Going ahead, total airline revenues are expected to recover to around 107% of the 2019 figure, as predicted by the International Air Transport Association (IATA). This bolsters the growth prospects of aerospace-defense equipment stocks. Some key players in this industry that you may keep in your portfolio are TransDigm Group TDG Curtiss-Wright Corporation CW and AeroVironment AVAV.
About the Industry
The Zacks Aerospace-Defense Equipment industry comprises firms that manufacture various vital components for the aerospace-defense space, ranging from aerostructures, space shuttles, propulsion systems, aircraft engines, defense electronics, missile and radar systems to flight test equipment, structural adhesives, instrumentation and control systems, communication products and many more. Some of these companies also offer integrated simulation and training services to the U.S. defense force. While majority of the revenues are generated from the production of the aforementioned accompaniments, the industry players also generate revenues by providing notable aftermarket support and services like maintenance, repair and overhaul activities to aerospace and defense players.
4 Trends Shaping the Future of the Aerospace-Defense Equipment Industry
New M&As Instill Hopes: Rising competition has historically prompted industry majors to expand their product lines through valuable mergers and acquisitions (M&As). In November 2023, TransDigm Group agreed to acquire the Electron Device Business of Communications & Power Industries. Since Electron Device Business is a global manufacturer of electronic components and subsystems that primarily serve the aerospace and defense market, its addition should bolster TransDigm’s footprint in the aerospace and defense equipment industry. In October 2023, Teledyne Technologies acquired Xena Networks ApS (and affiliates), a leading provider of high-speed terabit ethernet validation, quality assurance and production test solutions. This buyout will expand Teledyne LeCroy’s Protocol Test Portfolio. Moreover, BAE Systems acquired Eurostep in October to deliver advanced digital asset management to its customers. Such consolidations should improve economies of scale for the industry as a whole, with the players having access to diversified business models.
Impressive Air Traffic View Boosts Prospects: World air travel data has been on a steady growth trajectory for the past few months, driven by pent-up passenger demand. Per the latest global outlook for air transport published by IATA in December 2023, the airline industry is expected to return to profitability in 2023, only three years after the historic loss of $140 billion in 2020. Total airline revenues are expected to recover to around 107% of the 2019 figure, with operating profits reaching $41 billion. Such projections should boost demand for aircraft parts, which, in turn, should benefit aerospace-defense equipment industry stocks, especially those engaged in commercial aviation.
Unusual Strength of the Dollar Remains a Concern: Global inflation rose to 8.7% in 2022 and is likely to pull back to 6.9% in 2023, which is still above the pre-pandemic level (as stated by the International Monetary Fund). Although this may take place at a somewhat slower pace, the price is still rising. A stronger U.S. dollar, apart from high inflation and high jet fuel prices, puts pressure on airlines. This is because U.S. dollar-denominated costs rise for all businesses whose revenues are in another currency. An appreciated U.S. dollar value is a risk for aerospace-defense equipment stocks, particularly the ones in commercial aerospace, considering the fact that the share of jet fuel in airlines’ operating costs is considerably high, between 25% and 30%.
Supply-Chain Disruption Poses Risk: The COVID-19 pandemic has led to an unprecedented crisis in the aerospace and defense supply chain. Although aircraft deliveries in 2023 are projected to increase from the 2022 level, they are likely to remain below the 2019 level. The number of aircraft scheduled for delivery in 2023 has been lowered (as per IATA), reflecting the ongoing supply-chain issues that have resulted in production delays. This, in turn, might cause the Original Equipment Manufacturers (OEMs) to scale down their production volume, resulting in lower earnings and cash flows for the aerospace and defense equipment industry in the near term.
Zacks Industry Rank Reflects Gloomy Outlook
The Zacks Aerospace-Defense Equipment industry is housed within the broader Zacks Aerospace sector. It currently carries a Zacks Industry Rank #146, which places it in the bottom 42% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few aerospace-defense equipment stocks that you may want to add to your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry Lags S&P 500, Beats Sector
The Aerospace-Defense Equipment industry has underperformed the Zacks S&P 500 Composite but outperformed its sector over the past year. The stocks in this industry have collectively risen 15.2%, while the Aerospace sector has declined 5.4%. The Zacks S&P 500 Composite has surged 16.4% in the same time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of trailing 12-month EV/Sales, which is used for valuing capital-intensive stocks like aerospace-defense equipment, the industry is currently trading at 5.77X compared with the S&P 500’s 3.56X and the sector’s 2.20X.
Over the past five years, the industry has traded as high as 5.87X, as low as 4.90X and at the median of 5.57X, as the charts show below.
EV-Sales Ratio TTM
3 Aerospace-Defense Equipment Stocks to Buy
Curtiss-Wright: Curtiss-Wright, a North-Carolina based diversified multinational company, provides highly engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies. In November 2023, the company released its third-quarter 2023 results. Its quarterly sales improved 15% year over year and new orders rose 3%, reflecting solid defense as well as commercial aerospace market demand.
The Zacks Consensus Estimate for CW’s 2023 sales implies an improvement of 9.4% from the 2022 reported figure. The Zacks Consensus Estimate for its 2023 earnings implies an improvement of 12.6% from the 2022 level. The company currently carries a Zacks Rank #2 (Buy).
Price & Consensus: CW
TransDigm Group: Based in Cleveland, OH, TransDigm Group is a leading global designer, producer and supplier of highly engineered aerospace components used in commercial and military aircraft. In November 2023, the company released its fourth-quarter fiscal 2023 results. Its net sales improved 23% year over year, while its adjusted earnings per share surged a solid 46%.
The Zacks Consensus Estimate for TransDigm’s fiscal 2024 earnings indicates a 25.5% improvement from the previous year’s registered number. The consensus mark for TDG’s fiscal 2024 sales implies an improvement of 15.3% from the previous year’s reported figure. The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: TDG
AeroVironment: Based in Arlington, VA, AeroVironment provides a technologically advanced portfolio of intelligent, multidomain robotic systems and related services to government agencies and businesses. Its portfolio includes unmanned aircraft systems (UAS), tactical missile systems (TMS), unmanned ground vehicles (UGV) and related services. In December 2023, the company released its second-quarter fiscal 2024 results. Its revenues rose 62% year over year and net income surged a massive 366%.
The Zacks Consensus Estimate for AVAV’s fiscal 2024 sales implies an improvement of 26.1% from the previous year’s reported figure. The consensus estimate for the company’s fiscal 2024 earnings indicates a 122.2% improvement from the previous year’s reported number. AVAV currently holds a Zacks Rank #2.
Price & Consensus: AVAV
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Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
AeroVironment, Inc. (AVAV) : Free Stock Analysis Report
Curtiss-Wright Corporation (CW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In October 2023, Teledyne Technologies acquired Xena Networks ApS (and affiliates), a leading provider of high-speed terabit ethernet validation, quality assurance and production test solutions. Per the latest global outlook for air transport published by IATA in December 2023, the airline industry is expected to return to profitability in 2023, only three years after the historic loss of $140 billion in 2020. An appreciated U.S. dollar value is a risk for aerospace-defense equipment stocks, particularly the ones in commercial aerospace, considering the fact that the share of jet fuel in airlines’ operating costs is considerably high, between 25% and 30%.
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About the Industry The Zacks Aerospace-Defense Equipment industry comprises firms that manufacture various vital components for the aerospace-defense space, ranging from aerostructures, space shuttles, propulsion systems, aircraft engines, defense electronics, missile and radar systems to flight test equipment, structural adhesives, instrumentation and control systems, communication products and many more. 3 Aerospace-Defense Equipment Stocks to Buy Curtiss-Wright: Curtiss-Wright, a North-Carolina based diversified multinational company, provides highly engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report AeroVironment, Inc. (AVAV) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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About the Industry The Zacks Aerospace-Defense Equipment industry comprises firms that manufacture various vital components for the aerospace-defense space, ranging from aerostructures, space shuttles, propulsion systems, aircraft engines, defense electronics, missile and radar systems to flight test equipment, structural adhesives, instrumentation and control systems, communication products and many more. Zacks Industry Rank Reflects Gloomy Outlook The Zacks Aerospace-Defense Equipment industry is housed within the broader Zacks Aerospace sector. Industry Lags S&P 500, Beats Sector The Aerospace-Defense Equipment industry has underperformed the Zacks S&P 500 Composite but outperformed its sector over the past year.
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An appreciated U.S. dollar value is a risk for aerospace-defense equipment stocks, particularly the ones in commercial aerospace, considering the fact that the share of jet fuel in airlines’ operating costs is considerably high, between 25% and 30%. Zacks Industry Rank Reflects Gloomy Outlook The Zacks Aerospace-Defense Equipment industry is housed within the broader Zacks Aerospace sector. The consensus estimate for the company’s fiscal 2024 earnings indicates a 122.2% improvement from the previous year’s reported number.
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714114.0
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2023-12-07 00:00:00 UTC
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US Airlines Make Hay in Yesterday's Trading: Here's Why
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https://www.nasdaq.com/articles/us-airlines-make-hay-in-yesterdays-trading%3A-heres-why
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Wednesday, Dec 6, saw U.S. airline stocks perform exceedingly well on the bourses. Shares of industrial heavyweights like Delta Air Lines DAL, American Airlines AAL and United Airlines UAL gained 3.54%, 2.67% and 3.38%, respectively, on Dec 6 over Dec 5’s closing. Consequently, the NYSE ARCA Airline Index appreciated 2.19% at the close of trading on Dec 6.
All of the above-mentioned companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
What Led to the Northward Price Movement?
The catalyst behind the impressive performance on the bourses was the bullish commentary of Delta’s management at the Morgan Stanley Global Consumer & Retail Conference. After a record-breaking performance during the Thanksgiving holiday period, management expects another rosy performance in terms of traffic during Christmas, thereby ending the year on a strong note.
We remind investors that more than 5.3 million customers availed of DAL flights between Nov 17 and Nov 26. DAL operated more than 43,000 flights systemwide during this period to meet the buoyant air travel demand witnessed during the Thanksgiving holiday period.
At the investor event, management also sounded optimistic about international air travel in 2024 and stated that its performance with respect to Trans-Atlantic travel had been particularly strong in the current year, leading to a significant increase in capacity to meet the buoyant demand scenario. Management expects the strong Trans-Atlantic performance to continue next year, as advanced bookings remain strong and are anticipated to pick up as we approach March.
Highlighting that air travel demand has held up well over the past few weeks, DAL maintained the fourth-quarter and 2023 outlook that it provided in October with its third-quarter results. Fourth-quarter earnings are expected to be $1.05-$1.30 per share. The Zacks Consensus Estimate for the same is pegged at $1.15 per share.
The adjusted operating margin in the December quarter is expected to be 9-11%. Management projects fourth-quarter total revenues (adjusted) to increase 9-12% on a year-over-year basis. DAL continues to anticipate adjusted earnings of $6.00-$6.25 per share for 2023. The Zacks Consensus Estimate for the same is pegged at $6.10 per share. For 2023, the adjusted operating margin is expected to be 11.5%. Management projects full-year total revenues (adjusted) to increase 20% on a year-over-year basis.
Airlines Regain Mojo Ahead of Year-end
The record traffic during the Thanksgiving period has provided the much-needed boost to airline stocks after a tough few months due to headwinds like high labor and fuel costs, and a slowdown in domestic air travel demand. We note that airline stocks have been performing well of late and the uptick on Dec 6 was part of that uptrend.
Over the past month, stocks in the Zacks Airline industry have gained 11.5%, handily outperforming the S&P 500’s 3.9% appreciation.
Image Source: Zacks Investment Research
Similar to DAL, American Airlines and United Airlines have attracted huge traffic in the Thanksgiving travel period. AAL flights attracted 6.5 million customers over the Thanksgiving holiday, thereby establishing a record for the airline, with Nov 26 being its busiest day. UAL flights, too, were packed, with a record 3.2 million passengers flying between Nov 17 and Nov 23.
The upbeat air-traffic scenario apart, the decline in oil price from the 2023 highs reached in late September bodes well for airlines. This is because expenses on fuel represent significant input costs for airlines.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 catalyst behind the impressive performance on the bourses was the bullish commentary of Delta’s management at the Morgan Stanley Global Consumer & Retail Conference. Highlighting that air travel demand has held up well over the past few weeks, DAL maintained the fourth-quarter and 2023 outlook that it provided in October with its third-quarter results. AAL flights attracted 6.5 million customers over the Thanksgiving holiday, thereby establishing a record for the airline, with Nov 26 being its busiest day.
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Shares of industrial heavyweights like Delta Air Lines DAL, American Airlines AAL and United Airlines UAL gained 3.54%, 2.67% and 3.38%, respectively, on Dec 6 over Dec 5’s closing. Image Source: Zacks Investment Research Similar to DAL, American Airlines and United Airlines have attracted huge traffic in the Thanksgiving travel period. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of industrial heavyweights like Delta Air Lines DAL, American Airlines AAL and United Airlines UAL gained 3.54%, 2.67% and 3.38%, respectively, on Dec 6 over Dec 5’s closing. Image Source: Zacks Investment Research Similar to DAL, American Airlines and United Airlines have attracted huge traffic in the Thanksgiving travel period. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of industrial heavyweights like Delta Air Lines DAL, American Airlines AAL and United Airlines UAL gained 3.54%, 2.67% and 3.38%, respectively, on Dec 6 over Dec 5’s closing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. AAL flights attracted 6.5 million customers over the Thanksgiving holiday, thereby establishing a record for the airline, with Nov 26 being its busiest day.
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714115.0
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2023-12-07 00:00:00 UTC
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Health Care Sector Update for 12/07/2023: WVE, ETNB, BMY, XLV, IBB
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https://www.nasdaq.com/articles/health-care-sector-update-for-12-07-2023%3A-wve-etnb-bmy-xlv-ibb
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Health care stocks were mixed pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was down a slight 0.1% and iShares Biotechnology ETF (IBB) was recently 0.6% higher.
WAVE Life Sciences (WVE) was declining by more than 30% after saying it started a $100 million offering of ordinary shares, and to certain investors in lieu of ordinary shares, pre-funded warrants to purchase ordinary shares.
89bio (ETNB) was over 4% lower after it launched an underwritten offering of $125 million of common shares and pre-funded warrants to purchase common stock.
Bristol-Myers Squibb (BMY) was almost 1% higher after saying a phase 3 trial of Opdivo plus Yervoy met the dual primary endpoint of progression-free survival in an interim analysis. The company also said its board has authorized the repurchase of an additional $3 billion worth of its shares under its multi-year buyback program.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Health care stocks were mixed pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was down a slight 0.1% and iShares Biotechnology ETF (IBB) was recently 0.6% higher. Bristol-Myers Squibb (BMY) was almost 1% higher after saying a phase 3 trial of Opdivo plus Yervoy met the dual primary endpoint of progression-free survival in an interim analysis. The company also said its board has authorized the repurchase of an additional $3 billion worth of its shares under its multi-year buyback program.
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Health care stocks were mixed pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was down a slight 0.1% and iShares Biotechnology ETF (IBB) was recently 0.6% higher. WAVE Life Sciences (WVE) was declining by more than 30% after saying it started a $100 million offering of ordinary shares, and to certain investors in lieu of ordinary shares, pre-funded warrants to purchase ordinary shares. 89bio (ETNB) was over 4% lower after it launched an underwritten offering of $125 million of common shares and pre-funded warrants to purchase common stock.
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Health care stocks were mixed pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was down a slight 0.1% and iShares Biotechnology ETF (IBB) was recently 0.6% higher. WAVE Life Sciences (WVE) was declining by more than 30% after saying it started a $100 million offering of ordinary shares, and to certain investors in lieu of ordinary shares, pre-funded warrants to purchase ordinary shares. 89bio (ETNB) was over 4% lower after it launched an underwritten offering of $125 million of common shares and pre-funded warrants to purchase common stock.
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Health care stocks were mixed pre-bell Thursday as the Health Care Select Sector SPDR Fund (XLV) was down a slight 0.1% and iShares Biotechnology ETF (IBB) was recently 0.6% higher. WAVE Life Sciences (WVE) was declining by more than 30% after saying it started a $100 million offering of ordinary shares, and to certain investors in lieu of ordinary shares, pre-funded warrants to purchase ordinary shares. 89bio (ETNB) was over 4% lower after it launched an underwritten offering of $125 million of common shares and pre-funded warrants to purchase common stock.
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a84e5ae7-902b-4579-a8d5-079565750e9f
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714116.0
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2023-12-07 00:00:00 UTC
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Modine Manufacturing Company (MOD) Hit a 52 Week High, Can the Run Continue?
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DCOMP
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https://www.nasdaq.com/articles/modine-manufacturing-company-mod-hit-a-52-week-high-can-the-run-continue-0
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Have you been paying attention to shares of Modine (MOD)? Shares have been on the move with the stock up 21.8% over the past month. The stock hit a new 52-week high of $54.49 in the previous session. Modine has gained 160.8% since the start of the year compared to the 35.1% move for the Zacks Auto-Tires-Trucks sector and the 5% return for the Zacks Automotive - Original Equipment 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 1, 2023, Modine reported EPS of $0.89 versus consensus estimate of $0.64 while it beat the consensus revenue estimate by 1.25%.
For the current fiscal year, Modine is expected to post earnings of $3.04 per share on $2.45 billion in revenues. This represents a 55.9% change in EPS on a 6.68% change in revenues. For the next fiscal year, the company is expected to earn $3.36 per share on $2.6 billion in revenues. This represents a year-over-year change of 10.69% and 6.06%, respectively.
Valuation Metrics
Modine 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.
Modine has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.6X. On a trailing cash flow basis, the stock currently trades at 17.2X versus its peer group's average of 7.2X. Additionally, the stock has a PEG ratio of 0.68. 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, Modine 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 Modine passes the test. Thus, it seems as though Modine shares could have potential in the weeks and months to come.
How Does MOD Stack Up to the Competition?
Shares of MOD 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 Oshkosh Corporation (OSK). OSK has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Oshkosh Corporation beat our consensus estimate by 38.81%, and for the current fiscal year, OSK is expected to post earnings of $9.77 per share on revenue of $9.65 billion.
Shares of Oshkosh Corporation have gained 7.7% over the past month, and currently trade at a forward P/E of 10.87X and a P/CF of 18.75X.
The Automotive - Original Equipment industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for MOD and OSK, even beyond their own solid fundamental situation.
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Modine Manufacturing Company (MOD) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. On a trailing cash flow basis, the stock currently trades at 17.2X versus its peer group's average of 7.2X. Oshkosh Corporation beat our consensus estimate by 38.81%, and for the current fiscal year, OSK is expected to post earnings of $9.77 per share on revenue of $9.65 billion.
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In its last earnings report on November 1, 2023, Modine reported EPS of $0.89 versus consensus estimate of $0.64 while it beat the consensus revenue estimate by 1.25%. In terms of its value breakdown, the stock currently trades at 17.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.6X. Click to get this free report Modine Manufacturing Company (MOD) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Modine passes the test. Click to get this free report Modine Manufacturing Company (MOD) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Modine has a Value Score of A. Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. One industry peer that looks good is Oshkosh Corporation (OSK).
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3cac93f2-870a-47dc-8e17-d01ee4475cd2
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714117.0
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2023-12-07 00:00:00 UTC
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Chevron (CVX) Raises 2024 Capex, Eyes Lower Carbon Future
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https://www.nasdaq.com/articles/chevron-cvx-raises-2024-capex-eyes-lower-carbon-future
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Chevron Corporation CVX recently outlined its planned capital expenditure for 2024, focusing on strategic investments in both traditional and new energy sectors. The company expects to spend between $15.5 billion and $16.5 billion on capital projects for its consolidated subsidiaries, with an additional $3 billion allocated for affiliate ventures. This announcement not only signifies a financial plan but also serves as a roadmap for Chevron's commitment to sustainable growth and innovation.
Upstream Spending: A Vision for Development
Chevron's upstream spending for 2024 is poised at an impressive $14 billion, with a significant allocation to the United States. Approximately $6.5 billion is reserved for the development of Chevron's U.S. shale and tight portfolio. Within this, a noteworthy $5 billion is dedicated to the Permian Basin development, showcasing Chevron's commitment to harnessing the potential of this prolific resource.
A substantial 25% of U.S. upstream Capex is reserved for projects in the Gulf of Mexico. Among these, the Anchor project stands out with an objective to achieve its first oil in 2024. Chevron's strategic investments in this region underscore its dedication to diversification and tapping into diverse energy sources.
Downstream Capex: Fueling Growth
Chevron's downstream Capex for 2024 is projected to be approximately $1.5 billion, with a notable 80% allocated to the United States. This underscores Chevron's focus on boosting its domestic operations, contributing to local economies and ensuring a robust energy infrastructure.
Corporate and Other Capex: Driving Innovation
Corporate and other Capex within the broader financial plan are projected to be around $0.5 billion. This allocation emphasizes Chevron's commitment to driving innovation and exploring new frontiers in energy solutions.
Embracing Sustainability: Lower Carbon Capex
A substantial $2 billion is integrated into both upstream and downstream budgets, dedicated to lower carbon Capex. This initiative aims to reduce the carbon intensity of traditional operations while venturing into new energy business lines. Chevron's Geismar renewable diesel expansion project, scheduled to start in 2024, exemplifies the company's dedication to a greener future.
Affiliate Capex: Global Ventures
Chevron's affiliate Capex is strategically planned, with a significant portion allocated to Tengizchevroil's FGP / WPMP project in Kazakhstan. This global effort is poised to make a substantial impact, with the WPMP field conversion forecasted to begin in the first half of 2024. Additionally, Chevron Phillips Chemical Company's projects, including the Golden Triangle Polymer Project and Ras Laffan Petrochemical Project, reflect the company's commitment to diverse and impactful ventures.
Strategic Acquisitions: Paving the Way Forward
With the recent acquisition of PDC Energy, Chevron has expanded its annual Capex guidance to $14-$16 billion through 2027. Furthermore, the pending acquisition of Hess Corporation HES, expected to close in the first half of 2024, positions Chevron's annual Capex budget between $19 billion and $22 billion. These strategic moves highlight Chevron's commitment to growth and pursuit of opportunities in the dynamic energy market.
Conclusion
Overall, Chevron's 2024 Capex plans demonstrate its commitment to both traditional energy production and investments in lower-carbon initiatives, positioning the company for long-term growth and shareholder value creation.
Zacks Rank and Key Picks
Currently, both CVX and HES carry a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Liberty Energy Inc. LBRT, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $44.11 billion. The company currently pays a dividend of $1.79 per share, or 4.94%, on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
Liberty Energy is valued at $3.2 billion. LBRT currently pays a dividend of 28 cents per share, or 1.48%, on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to the North American onshore exploration and production companies.
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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Hess Corporation (HES) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chevron Corporation CVX recently outlined its planned capital expenditure for 2024, focusing on strategic investments in both traditional and new energy sectors. Conclusion Overall, Chevron's 2024 Capex plans demonstrate its commitment to both traditional energy production and investments in lower-carbon initiatives, positioning the company for long-term growth and shareholder value creation. WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
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Furthermore, the pending acquisition of Hess Corporation HES, expected to close in the first half of 2024, positions Chevron's annual Capex budget between $19 billion and $22 billion. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Liberty Energy Inc. LBRT, carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Hess Corporation (HES) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Additionally, Chevron Phillips Chemical Company's projects, including the Golden Triangle Polymer Project and Ras Laffan Petrochemical Project, reflect the company's commitment to diverse and impactful ventures. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Liberty Energy Inc. LBRT, carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Hess Corporation (HES) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company expects to spend between $15.5 billion and $16.5 billion on capital projects for its consolidated subsidiaries, with an additional $3 billion allocated for affiliate ventures. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Liberty Energy Inc. LBRT, carrying a Zacks Rank #2 (Buy) at present. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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a461e5dd-9f9d-4185-ad23-cabbdd194f28
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714118.0
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2023-12-07 00:00:00 UTC
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Southern's (SO) Subsidiary & U.S. Army Join Forces for EV Infra
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https://www.nasdaq.com/articles/southerns-so-subsidiary-u.s.-army-join-forces-for-ev-infra
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The Southern Company's SO largest subsidiary, Georgia Power has joined forces with the U.S. Army Garrison Eisenhower, to expedite the expansion of electric vehicle (EV) charging infrastructure within the installation.
Under the utility privatization (UP) contract with Fort Eisenhower, Georgia Power assumes ownership, maintenance and management responsibilities for the EV infrastructure and charging program.The initial phase of this venture will entail the implementation of EV infrastructure at 14 key locations within Fort Eisenhower. The construction phase, with a total budget of $1.6 million, is slated to commence by the end of 2023.
This sizeable investment is embedded within the broader UP contract, positioning Georgia Power as the custodian of Fort Eisenhower's electric utility system. The acceleration of electric framework investments under this contract aims to cater to the evolving energy requirements of Fort Eisenhower while simultaneously curbing its carbon footprint.
Colonel Reginald K. Evans, U.S. Army Garrison Eisenhower Commander, expressed enthusiasm about the partnership, stating that building the EV infrastructure now allows Fort Eisenhower to get chargers in place ahead of government EV fleet growth expected in the near future.
The deployment of the new electric infrastructure promises benefits, including enhanced availability of EV charging stations to support government vehicles stationed at and entering Fort Eisenhower. This move aligns with broader sustainability goals, reducing reliance on fossil fuels and minimizing greenhouse gas emissions. It also complements the resiliency and decarbonization efforts of Department of Defense installations to meet the mandates of Executive Order 14057.
Zacks Rank and Key Picks
SO is an American utility firm that provides electricity to customers across the Southern United States. It is one of the country's largest energy companies, focusing on clean energy and sustainability. Currently, SO carries a Zacks Rank #3 (Hold).
Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail OTTR, Consolidated Water CWCO and CenterPoint Energy, Inc. CNP. While Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Otter Tail is valued at around $3.18 billion. In the past year, its shares have risen 29.6%.
OTTR, a company primarily focused on electric energy production, transmission, distribution and sale, also operates in Health Services Operations and Diversified Operations through its subsidiaries.
Consolidated Water is worth approximately $583.92 million. It currently pays dividends of 38 cents per share or 1.02% on an annual basis.
CWCO develops and operates seawater desalination plants and water distribution systems in scarce or nonexistent water sources, targeting tourist properties. The company operates in Retail, Bulk, Services and Manufacturing segments.
CenterPoint Energy is worth approximately $18.03 billion. It currently pays dividends of 80 cents per share or 2.80% on an annual basis.
CNP, a domestic energy delivery company, provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations.
Only $1 to See All Zacks' Buys and Sells
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Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Southern Company (The) (SO) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
Otter Tail Corporation (OTTR) : Free Stock Analysis Report
Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Southern Company's SO largest subsidiary, Georgia Power has joined forces with the U.S. Army Garrison Eisenhower, to expedite the expansion of electric vehicle (EV) charging infrastructure within the installation. The acceleration of electric framework investments under this contract aims to cater to the evolving energy requirements of Fort Eisenhower while simultaneously curbing its carbon footprint. Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail OTTR, Consolidated Water CWCO and CenterPoint Energy, Inc. CNP.
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While Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. CNP, a domestic energy delivery company, provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Under the utility privatization (UP) contract with Fort Eisenhower, Georgia Power assumes ownership, maintenance and management responsibilities for the EV infrastructure and charging program.The initial phase of this venture will entail the implementation of EV infrastructure at 14 key locations within Fort Eisenhower. While Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail OTTR, Consolidated Water CWCO and CenterPoint Energy, Inc. CNP. While Otter Tail sports a Zacks Rank #1 (Strong Buy) at present, Consolidated Water and CenterPoint Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
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5f658009-6f15-4445-892d-6dc862f9d9ad
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714119.0
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2023-12-07 00:00:00 UTC
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Lockheed (LMT) Wins Deal to Support F-35 Fighter Jet Program
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https://www.nasdaq.com/articles/lockheed-lmt-wins-deal-to-support-f-35-fighter-jet-program-1
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Lockheed Martin Corp. LMT recently secured a modification contract involving its F-35 fighter aircraft. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $13.3 million, the contract is expected to be completed by April 2027. Per the terms of the deal, Lockheed will offer reach-back support for the sustainment of all Norway and Italy Reprogramming Laboratory systems, as well as associated consumables and spare material/tooling support. These efforts will be in relation to the F-35 program for non-U.S. Department of Defense participants.
Majority of the work related to this deal will be carried out in Elgin, FL.
Importance of F-35 for LMT
Lockheed enjoys a dominant position in the global military aircraft space with its F-35 fleet. The stealth aircraft boasts features that make it an ideal choice for many nations. The company’s constant efforts to modernize and upgrade the aircraft using advanced technologies to meet current warfare needs boost demand significantly.
The F-35 program remained the largest revenue generator for the Aeronautics business unit. It also accounted for 66% of the segment’s net sales in 2022.
Lockheed has delivered 974 F-35 airplanes since the program's inception, with 391 jets in the backlog as of Sep 24, 2023. This, along with the latest contract win, boosts sales expectations for the segment.
Looking ahead, LMT expects to deliver 97 F-35 jets in 2023 and 147-153 aircraft in 2024. The jet deliveries for 2025 and beyond are still estimated to be 156. This should bolster the company’s revenues from the military aircraft field.
Growth Prospects
Amid the widespread geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchase to strengthen their warfare capabilities. This has led to an increased demand for fighter jets, which form an integral part of a country’s defense products.
Looking ahead, per Mordor Intelligence projections, the global military aircraft market is expected to witness a CAGR of 7.37% during 2023-2028. Such projections indicate immense opportunities for Lockheed to reap the benefits of military aircraft market expansion, with its portfolio containing combat-proven jets like F-16 and F-35 fighter aircraft.
Other prominent defense majors involved in the manufacturing of military aircraft are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. These stocks are also expected to gain from the military aircraft market’s growth opportunities.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, it has been providing manned solutions to customers worldwide. The company has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. Meanwhile, the Mission Systems segment offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control, the LONGBOW Fire Control Radar and the Scalable Agile Beam Radar.
Airbus Group’s military aircraft consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide.
Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft and the T-1A jet trainer.
TXT’s subsidiary, Able Aerospace Services, provides component and maintenance, repair and overhaul services in support of commercial and military fixed and rotor-wing aircraft.
Price Movement
Shares of Lockheed have lost 6.6% in the past 12 months compared with the industry’s 9.7% decline.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Textron Inc. (TXT) : Free Stock Analysis Report
Airbus Group (EADSY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth Prospects Amid the widespread geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchase to strengthen their warfare capabilities. Other prominent defense majors involved in the manufacturing of military aircraft are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide.
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Other prominent defense majors involved in the manufacturing of military aircraft are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. Image Source: Zacks Investment Research Zacks Rank Lockheed currently carries a Zacks Rank #3 (Hold). Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Such projections indicate immense opportunities for Lockheed to reap the benefits of military aircraft market expansion, with its portfolio containing combat-proven jets like F-16 and F-35 fighter aircraft. Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Other prominent defense majors involved in the manufacturing of military aircraft are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. These stocks are also expected to gain from the military aircraft market’s growth opportunities. NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems.
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96f54bbb-3fc1-44bc-b554-b9130f23b561
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714120.0
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2023-12-07 00:00:00 UTC
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Marvell (MRVL) Introduces Perseus and Spica Gen2 Optical-DSPs
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https://www.nasdaq.com/articles/marvell-mrvl-introduces-perseus-and-spica-gen2-optical-dsps
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Marvell Technology MRVL recently launched Perseus and Spica Gen2 Optical Digital Signal Processors (DSP) designed to address the widespread adoption of artificial intelligence, cloud and accelerated computing.
Optical DSPs are specialized processors designed to manipulate optical signals in optical communication systems. These systems use light to transmit data over fiber-optic cables, enabling high-speed and high-bandwidth communication.
Perseus is designed to serve active optical cables (AOCs) and short-reach optical connections spanning 5 to 500 meters, while Spica Gen2 will cater to longer-reach connections within AI clusters and hyperscale data centers.
Marvell Technology, Inc. Price and Consensus
Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote
Perseus is the first of its kind 400/800 Gbps 5nm processor merging key electrical parts of a short-reach pluggable optical module into a single die. Built on similar technology, Spica Gen2 is an 800 Gbps 5nm optical DSP. Both products will reduce power consumption, space, and costs, simplifying manufacturing and enabling faster scaling.
The quad/octal 100 Gbps/channel throughput of Perseus will enable it for high-speed data transmission. The processor is designed to accommodate 400G and 800G optical module applications, consume low power, and be reliable and easily maintainable for its Common Management Interface Specification (CMIS)-compliant advanced diagnostic features. Additionally, the Perseus is integrated with a Transimpedance Amplifier, a linear driver for Vertical-Cavity Surface-Emitting Laser and a Silicon Photonics Integrated Circuit for streamlined operations.
Spica DSP will support 1x800G, 2x400G, and 8x100G connections for switches and artificial intelligence, machine learning and data center setups. The processor is compatible with 100m SR8, 500m DR8, 2Km 2xFR4, and 10Km LR8, meeting Institute of Electrical and Electronics Engineers, Multi-Source Agreement, and CMIS standards.
The Spica Gen2 also integrates a low-power DSP with Electro-absorption Modulated Laser and Silicon Photonics support and advanced diagnostics for network health. It's flexible, offering cost-efficient bare die designs and compact BGA packages and fast-tracking time to market. Additionally, the processor stays updated with compatibility for 800 Gbps QSFP-DD and OSFP modules, making it adaptable for evolving data centers.
Marvell Benefits From a Strong Portfolio
Marvell excels in optical solutions for data centers, offering a variety of DCI modules for fiber network data transmission. The switch pluggable COLORZ module and its DSP technology have a strong history of providing internal data center connectivity.
In 2022, Marvell introduced the industry's initial 800Gbps or 8x100Gbps multimode platform solution, revolutionizing data center infrastructure for faster short-distance optical modules and AOC applications.
The company’s other specialized connectivity products include Nova for data center-based medium-to-long-reach connections, Porrima for various bandwidths, coherent DSPs for long-range connections, and copper-based electrical cable devices for server-to-server links.
Additionally, the introduction of these products will be used to enhance data traffic within data centers, optimize bandwidth and cater to different connectivity applications and use cases. Perseus and Spica Gen2 will increase opportunities for Marvell in its data center segment.
Zacks Rank & Stocks to Consider
Marvell currently carries a Zacks Rank #3 (Hold). Shares of MRVL have gained 36.2% year to date.
Some better-ranked stocks from the broader technology sector are NetEase NTES and Bel Fuse BELFB, Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NetEase's fourth-quarter 2023 earnings has been revised upward by 10 cents to $1.83 per share in the past 30 days. For fiscal 2023, earnings estimates have increased 30 cents to $7.26 per share in the past 30 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 16.63%. Shares of NTES have gained 41.2% year to date.
The Zacks Consensus Estimate for Bel Fuse’s fourth-quarter fiscal 2023 earnings has been revised by 38 cents northward to $1.44 per share in the past 60 days. For fiscal 2024, earnings estimates have increased 72 cents to $6.28 in the past 60 days.
BELFB’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 56.92%. Shares of BELFB have surged 67.1% year to date.
The Zacks Consensus Estimate for Dropbox's fourth-quarter 2023 earnings has remained unchanged for the past 90 days at 48 cents per share. For fiscal 2023, earnings estimates have been revised 7 cents upward to $1.96 per share in the past 30 days.
DBX’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.14%. Shares of DBX have rallied 23.3% year to date.
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Dropbox, Inc. (DBX) : Free Stock Analysis Report
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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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Marvell Technology MRVL recently launched Perseus and Spica Gen2 Optical Digital Signal Processors (DSP) designed to address the widespread adoption of artificial intelligence, cloud and accelerated computing. The processor is designed to accommodate 400G and 800G optical module applications, consume low power, and be reliable and easily maintainable for its Common Management Interface Specification (CMIS)-compliant advanced diagnostic features. Some better-ranked stocks from the broader technology sector are NetEase NTES and Bel Fuse BELFB, Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present.
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Some better-ranked stocks from the broader technology sector are NetEase NTES and Bel Fuse BELFB, Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present. The Zacks Consensus Estimate for Bel Fuse’s fourth-quarter fiscal 2023 earnings has been revised by 38 cents northward to $1.44 per share in the past 60 days. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Bel Fuse Inc. (BELFB) : Free Stock Analysis Report Dropbox, Inc. (DBX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Marvell Technology, Inc. Price and Consensus Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote Perseus is the first of its kind 400/800 Gbps 5nm processor merging key electrical parts of a short-reach pluggable optical module into a single die. Marvell Benefits From a Strong Portfolio Marvell excels in optical solutions for data centers, offering a variety of DCI modules for fiber network data transmission. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Bel Fuse Inc. (BELFB) : Free Stock Analysis Report Dropbox, Inc. (DBX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Perseus and Spica Gen2 will increase opportunities for Marvell in its data center segment. Some better-ranked stocks from the broader technology sector are NetEase NTES and Bel Fuse BELFB, Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present. For fiscal 2023, earnings estimates have increased 30 cents to $7.26 per share in the past 30 days.
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2023-12-07 00:00:00 UTC
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Citigroup Inc. (C) is Attracting Investor Attention: Here is What You Should Know
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Citigroup (C) 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 U.S. bank have returned +14.4% over the past month versus the Zacks S&P 500 composite's +4.4% change. The Zacks Banks - Major Regional industry, to which Citigroup belongs, has gained 9.4% 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.
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.
Citigroup is expected to post earnings of $1.15 per share for the current quarter, representing a year-over-year change of +4.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The consensus earnings estimate of $6.24 for the current fiscal year indicates a year-over-year change of -12.2%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.84 indicates a change of -6.3% from what Citigroup is expected to report a year ago. Over the past month, the estimate has remained unchanged.
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 Citigroup.
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 Citigroup, the consensus sales estimate of $19.27 billion for the current quarter points to a year-over-year change of +7%. The $79.81 billion and $79.71 billion estimates for the current and next fiscal years indicate changes of +5.9% and -0.1%, respectively.
Last Reported Results and Surprise History
Citigroup reported revenues of $20.14 billion in the last reported quarter, representing a year-over-year change of +8.8%. EPS of $1.52 for the same period compares with $1.50 a year ago.
Compared to the Zacks Consensus Estimate of $19.32 billion, the reported revenues represent a surprise of +4.22%. The EPS surprise was +20.63%.
Over the last four quarters, Citigroup 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.
Citigroup 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 Citigroup. 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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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Citigroup Inc. (C) : 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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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. 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 Citigroup.
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For the next fiscal year, the consensus earnings estimate of $5.84 indicates a change of -6.3% from what Citigroup 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. Last Reported Results and Surprise History Citigroup reported revenues of $20.14 billion in the last reported quarter, representing a year-over-year change of +8.8%.
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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 Citigroup. 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 $5.84 indicates a change of -6.3% from what Citigroup is expected to report a year ago. Compared to the Zacks Consensus Estimate of $19.32 billion, the reported revenues represent a surprise of +4.22%.
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2023-12-07 00:00:00 UTC
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Why Ensign Group (ENSG) is a Top Growth Stock for the Long-Term
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https://www.nasdaq.com/articles/why-ensign-group-ensg-is-a-top-growth-stock-for-the-long-term-1
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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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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 are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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: Ensign Group (ENSG)
Founded in 1999 and headquartered in San Juan Capistrano, CA, The Ensign Group Inc. provides health care services in the post-acute care continuum, urgent care center and mobile ancillary businesses in the United States.
ENSG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ENSG has a Growth Style Score of B, forecasting year-over-year earnings growth of 15% for the current fiscal year.
For fiscal 2023, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $4.76 per share. ENSG boasts an average earnings surprise of 1.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ENSG should be on investors' short list.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the 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 Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. 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. As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. Click to get this free report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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What are the Zacks Style Scores? However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day. ENSG has a Growth Style Score of B, forecasting year-over-year earnings growth of 15% for the current fiscal year.
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2023-12-07 00:00:00 UTC
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3 Companies Leading the Way in Augmented Reality Retail
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https://www.nasdaq.com/articles/3-companies-leading-the-way-in-augmented-reality-retail
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re interested in finding AR retail stocks to add to your portfolio, look no further. Now is a great time to go shopping for e-commerce related stocks. The industry enjoyed a historic boom during the early days of the pandemic as customers were forced to order almost everything through digital channels. As brick-and-mortar reopened, growth slowed and stock prices slumped.
However, there’s little doubt that e-commerce will continue making major market share gains in the longer-term. And the next generation of that technology, augmented reality retail, could be a game-changer. Here are three AR retail stocks that could lead the transformation.
Unity (U)
Source: viewimage / Shutterstock.com
Unity (NYSE:U) operates a leading video game graphics engine. Along with rival Unreal, the two have dominant market share in providing graphics for today’s video games.
Developers appreciate Unity for its easy cross-platform operability. A developer can build a game for PC, for example, and easily port it to consoles, mobile, and even augmented and virtual reality. Unity has been a leader on the VR and AR front, and is the game engine powering well-known applications such as Pokemon Go.
Unity is now seeking to move beyond just video games. It is aiming to commercialize its graphics for architecture & design, real estate, and e-commerce among other functions. In a few years, Unity may be able help customers virtually try on clothes and accessories on a realistic VR model of themselves. There’s still a lot of R&D to making this a mass-market technology, but Unity should have a first-mover advantage in the AR retail stocks space.
In the meantime, Unity is shaping up nicely. The company has slashed costs and reached profitability, setting the company on a good trajectory for the long-term growth of 3D graphics and augmented reality.
Matterport (MTTR)
Source: II.studio / Shutterstock.com
Matterport (NASDAQ:MTTR) is a spatial data company. Specifically, it helps companies make digital models of real world locations.
A typical user might be a hotel or entertainment venue. It can make a detailed 3D model of its facility and let prospective clients do a digital walkthrough through the site in augmented reality. As the cameras and modeling technology improves, Matterport may be able to incorporate more interactive commerce features into these 3D-modeled real estate locations.
Matterport hasn’t reached profitability yet and has had something of a messy transition moving from a fixed licensing to subscription-based revenue model. But with $163 million in annualized run-rate revenues and more than 11 million spaces under management, Matterport has already built a sizable business and could be a real winner as AR retail and commerce take off.
Qualcomm (QCOM)
Source: jejim / Shutterstock.com
An issue with investing in AR retail stocks is that a lot of the pureplays are smaller firms that are quite speculative. A company like Matterport could be a huge winner, but it could also fizzle out.
There is a way to square the circle, however. That is by investing in companies that have many irons in the fire, and thus provide investors multiple ways of profiting from a specific theme.
For augmented reality, Qualcomm (NASDAQ:QCOM) is quite active with its own solutions. Its Snapdragon computing platform powers tablets and other high-end mobile devices which can be used for VR and AR applications. Qualcomm’s 5G and forthcoming 6G technology power the data communications needed to run AR applications. And Qualcomm has intellectual property around other items such as machine vision and mobile AI which could prove instrumental in developing augmented reality solutions.
And that’s not all. Qualcomm is also an active investor in startups via its Qualcomm Ventures division. Active since the year 2000, it has invested in 360 different portfolio companies and been a part of 18 $1 billion+ exits. It is an investor in Matterport and several other companies involved in augmented reality technology.
On the date of publication, Ian Bezek held a long position in U and QCOM stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
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The post 3 Companies Leading the Way in Augmented Reality Retail appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The industry enjoyed a historic boom during the early days of the pandemic as customers were forced to order almost everything through digital channels. Qualcomm (QCOM) Source: jejim / Shutterstock.com An issue with investing in AR retail stocks is that a lot of the pureplays are smaller firms that are quite speculative. And Qualcomm has intellectual property around other items such as machine vision and mobile AI which could prove instrumental in developing augmented reality solutions.
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Unity (U) Source: viewimage / Shutterstock.com Unity (NYSE:U) operates a leading video game graphics engine. Matterport (MTTR) Source: II.studio / Shutterstock.com Matterport (NASDAQ:MTTR) is a spatial data company. Specifically, it helps companies make digital models of real world locations.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re interested in finding AR retail stocks to add to your portfolio, look no further. The company has slashed costs and reached profitability, setting the company on a good trajectory for the long-term growth of 3D graphics and augmented reality. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Companies Leading the Way in Augmented Reality Retail appeared first on InvestorPlace.
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Unity is now seeking to move beyond just video games. For augmented reality, Qualcomm (NASDAQ:QCOM) is quite active with its own solutions. It is an investor in Matterport and several other companies involved in augmented reality technology.
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2023-12-07 00:00:00 UTC
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Down 10% This Year Is Coca-Cola Stock A Better Pick Over AbbVie?
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https://www.nasdaq.com/articles/down-10-this-year-is-coca-cola-stock-a-better-pick-over-abbvie
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Given its better prospects, we believe Coca-Cola stock (NYSE: KO) is a better pick than AbbVie stock (NYSE: ABBV). Although these companies are from different sectors, we compare them because they have a similar market capitalization of a little over $250 billion. The decision to invest often comes down to finding the best stocks within the parameters of certain characteristics that suit an investment style. The size of profits can matter, as larger profits can imply greater market power. In the sections below, we discuss why we believe KO will offer higher returns than ABBV in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation.
KO stock has seen little change, moving slightly from levels of $55 in early January 2021 to around $60 now. On the other hand, ABBV stock has shown strong gains of 40% from levels of $105 in early January 2021 to around $145 now. This compares with an increase of about 20% for the S&P 500 over this roughly three-year period.
Overall, the performance of KO and ABBV with respect to the index has been quite volatile. Returns for KO were 8% in 2021, 7% in 2022, and -8% in 2023 (YTD), while returns for ABBV were 26% in 2021, 19% in 2022, and -11% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 19% in 2023 (YTD) – indicating that KO and ABBV underperformed the S&P in 2021 and 2023.
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Staples sector, including WMT, PG, and COST, and even for the megacap stars GOOG, TSLA, and MSFT. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could KO and ABBV face a similar situation as they did in 2021 and 2023 and underperform the S&P over the next 12 months – or will they see a strong jump? We expect growth in both stocks in the next three years, but KO will likely fare better between the two.
1. AbbVie’s Revenue Growth Is Better
AbbVie’s revenue growth has been better, with a 21.2% average annual growth rate in the last three years, compared to 5.6% for Coca-Cola.
For Coca-Cola, both at-home and away-from-home channels have grown, primarily driven by solid pricing trends.
North America and Latin America segments saw strong 19% y-o-y sales growth in 2022, led by both volume growth and better price realization.
Of late, the company is seeing more traction in the away-from-home business than at-home beverages.
AbbVie’s revenue growth has been buoyed by its Allergan acquisition in 2020.
AbbVie is best known for its blockbuster drug – Humira – used to treat rheumatoid arthritis and Crohn’s disease, among others. Humira garnered $21.2 billion in 2022 sales, reflecting a 3% y-o-y growth. However, Humira now faces biosimilar competition, and its sales are expected to fall meaningfully in the coming years.
For perspective, Humira’s sales fell 31% to $9.4 billion for the nine-month period ending September 2023. The company expects the drug’s sales to fall 35% this year.
AbbVie, to some extent, is able to combat the loss of revenue from Humira by market share gains for some of its relatively new drugs, primarily Skyrizi and Rinvoq. These drugs are used to treat plaque psoriasis and rheumatoid arthritis. For perspective, these two products garnered $6.6 billion for the nine-month period ending September 2023, reflecting a solid 51% y-o-y growth.
Looking at the last twelve months, Coca-Cola’s 6.3% top-line growth fares better than -4.6% for AbbVie, with a fall in Humira sales weighing on its top line.
Our Coca-Cola Revenue Comparison and AbbVie Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, Coca-Cola is expected to see mid-single-digit average growth in the next three years, while AbbVie may see little growth over this period amid falling Humira sales. That said, AbbVie’s recent acquisitions, including ImmunoGen, will help it drive long-term growth. AbbVie last week announced its plans to acquire ImmunoGen for $10 billion in an all-cash deal, giving the company a potentially blockbuster oncology drug Elahere.
2. AbbVie Is More Profitable
Coca-Cola’s reported operating margin slid from 29.9% in 2019 to 28.8% in 2022, while AbbVie’s operating margin declined from 39.0% to 31.2% over this period.
Looking at the last twelve-month period, AbbVie’s operating margin of 31.0% fares better than 28.4% for Coca-Cola.
Our Coca-Cola Operating Income Comparison and AbbVie Operating Income Comparison dashboards have more details.
Looking at financial risk, Coca-Cola fares better with its 16% debt as a percentage of equity lower than 24% for AbbVie and its 13% cash as a percentage of assets higher than 10% for the latter, implying that Coca-Cola has a better debt position and more cash cushion.
3. The Net of It All
We see that AbbVie has seen better revenue growth and is more profitable. On the other hand, Coca-Cola has a better financial position.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Coca-Cola will offer better returns in the next three years over AbbVie.
If we compare the current valuation multiples to the historical averages, KO fares slightly better. Coca-Cola’s stock trades at 5.6x sales compared to its last five-year average of 6.8x, and AbbVie stock trades at 4.5x revenues vs. the last five-year average of 5.3x.
Our Coca-Cola (KO) Valuation Ratios Comparison and AbbVie (ABBV) Valuation Ratios Comparison have more details.
While KO may outperform ABBV in the next three years, it is helpful to see how Coca-Cola’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
KO Return 0% -8% 41%
ABBV Return 1% -11% 130%
S&P 500 Return 0% 19% 104%
Trefis Reinforced Value Portfolio 2% 31% 571%
[1] Month-to-date and year-to-date as of 12/5/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Staples sector, including WMT, PG, and COST, and even for the megacap stars GOOG, TSLA, and MSFT. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could KO and ABBV face a similar situation as they did in 2021 and 2023 and underperform the S&P over the next 12 months – or will they see a strong jump? AbbVie last week announced its plans to acquire ImmunoGen for $10 billion in an all-cash deal, giving the company a potentially blockbuster oncology drug Elahere.
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Our Coca-Cola Operating Income Comparison and AbbVie Operating Income Comparison dashboards have more details. Coca-Cola’s stock trades at 5.6x sales compared to its last five-year average of 6.8x, and AbbVie stock trades at 4.5x revenues vs. the last five-year average of 5.3x. Our Coca-Cola (KO) Valuation Ratios Comparison and AbbVie (ABBV) Valuation Ratios Comparison have more details.
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AbbVie’s Revenue Growth Is Better AbbVie’s revenue growth has been better, with a 21.2% average annual growth rate in the last three years, compared to 5.6% for Coca-Cola. Looking forward, Coca-Cola is expected to see mid-single-digit average growth in the next three years, while AbbVie may see little growth over this period amid falling Humira sales. Total [2] KO Return 0% -8% 41% ABBV Return 1% -11% 130% S&P 500 Return 0% 19% 104% Trefis Reinforced Value Portfolio 2% 31% 571% [1] Month-to-date and year-to-date as of 12/5/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We expect growth in both stocks in the next three years, but KO will likely fare better between the two. The company expects the drug’s sales to fall 35% this year. Looking forward, Coca-Cola is expected to see mid-single-digit average growth in the next three years, while AbbVie may see little growth over this period amid falling Humira sales.
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9c05120f-3e50-41a2-adec-8e9e2ae3b24f
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714125.0
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2023-12-07 00:00:00 UTC
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What's Next For Nio Stock As Deliveries Continue To Fall Behind Rivals
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DCOMP
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https://www.nasdaq.com/articles/whats-next-for-nio-stock-as-deliveries-continue-to-fall-behind-rivals
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nan
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nan
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Chinese luxury electric vehicle maker Nio stock (NYSE:NIO) delivered 15,959 vehicles for November, marking an increase of 12% from November 2022, although the numbers were slightly lower on a sequential basis. While Nio didn’t spell out what drove its growth, the company likely benefited from higher sales of the updated ES6 SUV, which debuted in May, while the price cuts carried out over Q2 also likely helped drive demand to an extent. Overall Nio has delivered 142,026 vehicles year-to-date in 2023, marking an increase of 33% compared to the last year. Nio’s growth rates continue to fall meaningfully behind rivals who posted even stronger monthly deliveries. For example, Li Auto delivered a record 41,030 units, up roughly 2.7x year-over-year, driven by strong demand for its three L-Series models which combine gasoline generators to extend the range of its EVs. Xpeng also sold a record 20,041 units, up 2.4x from November 2022.
NIO stock has suffered a sharp decline of 85% from levels of $50 in early January 2021 to around $7 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. Notably, NIO stock has underperformed the broader market in each of the last 3 years. Returns for the stock were -35% in 2021, -69% in 2022, and -27% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 20% in 2023 (YTD) – indicating that NIO underperformed the S&P in 2021, 2022, and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks.
In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could NIO face a similar situation as it did in 2021, 2022, and 2023 and underperform the S&P over the next 12 months – or will it see a recovery?
Nio stock has performed the worst of its peers, declining by about 25% year-to-date, and remains down by over 88% below all-time highs seen in 2021. There are also concerns about global EV demand, with most mainstream automakers, including Volkswagen, Mercedes, Ford, and GM indicating a softer-than-expected uptake. Automotive chip suppliers have also flagged weaker-than-expected uptake for automotive semiconductors for the fourth quarter. However, demand doesn’t appear to be an issue at the moment in China, with overall automotive sales rising by 10% for October, with battery electric vehicles accounting for close to 26% of total automotive sales. However, competition is mounting and this has resulted in considerable price wars. Investors have been concerned about Nio’s price cuts, which impacted average selling prices and reduced gross margins in recent quarters. Over the June quarter, gross margins stood at just 1%, down from over 13% in the year-ago quarter, although it appears that things could get better over Q3, due to higher volumes. Nio for its part guided for double-digit gross margin in Q3 and 15% margins in Q4. There were also reports that the company could cut its workforce by about 10% in a move that could reduce costs, although this could be partly offset by higher marketing spending, as the company promotes new vehicles. The stock also presently trades at under 1.3x estimated 2023 revenues, which is well below other EV players such as Tesla and Li Auto. See our analysis of Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare? for a detailed look at how Nio stock compares with its rivals Li Auto and Xpeng.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
NIO Return -2% -27% 12%
S&P 500 Return 1% 20% 105%
Trefis Reinforced Value Portfolio 2% 31% 570%
[1] Month-to-date and year-to-date as of 12/3/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Nio didn’t spell out what drove its growth, the company likely benefited from higher sales of the updated ES6 SUV, which debuted in May, while the price cuts carried out over Q2 also likely helped drive demand to an extent. For example, Li Auto delivered a record 41,030 units, up roughly 2.7x year-over-year, driven by strong demand for its three L-Series models which combine gasoline generators to extend the range of its EVs. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could NIO face a similar situation as it did in 2021, 2022, and 2023 and underperform the S&P over the next 12 months – or will it see a recovery?
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Chinese luxury electric vehicle maker Nio stock (NYSE:NIO) delivered 15,959 vehicles for November, marking an increase of 12% from November 2022, although the numbers were slightly lower on a sequential basis. See our analysis of Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare? for a detailed look at how Nio stock compares with its rivals Li Auto and Xpeng.
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Chinese luxury electric vehicle maker Nio stock (NYSE:NIO) delivered 15,959 vehicles for November, marking an increase of 12% from November 2022, although the numbers were slightly lower on a sequential basis. See our analysis of Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare? Total [2] NIO Return -2% -27% 12% S&P 500 Return 1% 20% 105% Trefis Reinforced Value Portfolio 2% 31% 570% [1] Month-to-date and year-to-date as of 12/3/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overall Nio has delivered 142,026 vehicles year-to-date in 2023, marking an increase of 33% compared to the last year. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 20% in 2023 (YTD) – indicating that NIO underperformed the S&P in 2021, 2022, and 2023. for a detailed look at how Nio stock compares with its rivals Li Auto and Xpeng.
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f580ab30-8890-434e-9d96-4bd3e14939b9
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714126.0
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2023-12-07 00:00:00 UTC
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How to Maximize Your Retirement Portfolio with These Top-Ranked Dividend Stocks
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DCOMP
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https://www.nasdaq.com/articles/how-to-maximize-your-retirement-portfolio-with-these-top-ranked-dividend-stocks-112
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nan
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nan
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Here's a revealing data point: older Americans are scared more of outliving wealth than of death itself.
And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans.
Retirement investing approaches of the past don't work today.
In the past, investors going into retirement could invest in bonds and count on attractive yields to produce steady, reliable income streams to fund a predictable retirement. 10-year Treasury bond rates in the late 1990s hovered around 6.50%, whereas the current rate is much lower.
The effect of this drop in rates is substantial: over 20 years, the change in yield for a $1 million investment in 10-year Treasuries is over $1 million.
In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035.
Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?
Invest in Dividend Stocks
We feel that these dividend-paying equities - as long as they are from high-quality, low-risk issuers - can give retirement investors a smart option to replace low-yielding Treasury bonds (or other bonds).
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
ACNB (ACNB) is currently shelling out a dividend of $0.3 per share, with a dividend yield of 3%. This compares to the Banks - Southwest industry's yield of 0.3% and the S&P 500's yield of 1.7%. The company's annualized dividend growth in the past year was 7.69%. Check ACNB (ACNB) dividend history here>>>
First Savings Financial (FSFG) is paying out a dividend of $0.14 per share at the moment, with a dividend yield of 3.69% compared to the Financial - Savings and Loan industry's yield of 3.25% and the S&P 500's yield. The annualized dividend growth of the company was 7.69% over the past year. Check First Savings Financial (FSFG) dividend history here>>>
Currently paying a dividend of $0.39 per share, PNM Resources (PNM) has a dividend yield of 3.45%. This is compared to the Utility - Electric Power industry's yield of 3.54% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 5.76%. Check PNM Resources (PNM) dividend history here>>>
But aren't stocks generally more risky than bonds?
It is true that stocks, as an asset class, carry more risk than bonds, but high-quality dividend stocks not only have the ability to produce income growth over time but more importantly, can also reduce your overall portfolio volatility relative to the broader stock market.
An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
You may be thinking, "I like this dividend strategy, but instead of investing in individual stocks, I'm going to find a dividend-focused mutual fund or ETF." This approach can make sense, but be aware that some mutual funds and specialized ETFs carry high fees, which may reduce your dividend gains or income, and defeat the goal of this dividend investment approach. If you do wish to invest in a fund, do your research to find the best-quality dividend funds with the lowest fees.
Bottom Line
Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
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ACNB Corporation (ACNB) : Free Stock Analysis Report
PNM Resources, Inc. (PNM) : Free Stock Analysis Report
First Savings Financial Group, Inc. (FSFG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.
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Check ACNB (ACNB) dividend history here>>> First Savings Financial (FSFG) is paying out a dividend of $0.14 per share at the moment, with a dividend yield of 3.69% compared to the Financial - Savings and Loan industry's yield of 3.25% and the S&P 500's yield. Check First Savings Financial (FSFG) dividend history here>>> Currently paying a dividend of $0.39 per share, PNM Resources (PNM) has a dividend yield of 3.45%. Click to get this free report ACNB Corporation (ACNB) : Free Stock Analysis Report PNM Resources, Inc. (PNM) : Free Stock Analysis Report First Savings Financial Group, Inc. (FSFG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Check ACNB (ACNB) dividend history here>>> First Savings Financial (FSFG) is paying out a dividend of $0.14 per share at the moment, with a dividend yield of 3.69% compared to the Financial - Savings and Loan industry's yield of 3.25% and the S&P 500's yield. Check First Savings Financial (FSFG) dividend history here>>> Currently paying a dividend of $0.39 per share, PNM Resources (PNM) has a dividend yield of 3.45%. An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income.
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Retirement investing approaches of the past don't work today. Check ACNB (ACNB) dividend history here>>> First Savings Financial (FSFG) is paying out a dividend of $0.14 per share at the moment, with a dividend yield of 3.69% compared to the Financial - Savings and Loan industry's yield of 3.25% and the S&P 500's yield. An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income.
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e98b5a13-6f00-4a2e-a5e2-b0f2d09ad170
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714127.0
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2023-12-07 00:00:00 UTC
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OrthoPediatrics (KIDS) Introduces Unit for Non-Surgical Bracing
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DCOMP
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https://www.nasdaq.com/articles/orthopediatrics-kids-introduces-unit-for-non-surgical-bracing
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nan
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nan
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OrthoPediatrics Corp. KIDS recently introduced the OrthoPediatrics Specialty Bracing (“OPSB”) division, marking a significant advancement in non-surgical intervention for pediatric orthopedics. The company expects this new division to serve as a flagship house of brands and innovative products.
This is expected to expand the company’s total addressable market by nearly $600 million.
The Development Trajectory
The company forayed into the non-operative space following the acquisition of MD Orthopaedics (“MDO”) in 2022. With this, OrthoPediatrics gained a robust portfolio of bracing products and the Mitchell Ponseti Ankle-Foot Orthosis system for clubfoot treatment. Building on this foundation, KIDS is consistently putting efforts into developing a comprehensive portfolio of complementary products to address the large unmet needs for specialty bracing within the pediatric orthopedic market.
In this line, earlier in 2023, MDO acquired Rhino Pediatric Orthopedic Designs. The Rhino "Kicker" and "Cruiser" braces specifically target children with Developmental Dysplasia of the hip.
Added to this, OrthoPediatrics continues to diversify its non-surgical offerings with the introduction of the DF2 Brace, providing an alternative to the spica cast for femur fracture fixation in pediatric patients aged six months to five years. Recently, the company entered into a new partnership with Ora Medical, a Montreal-based firm. Together, they aim to distribute The Levity, a gait-trainer device designed to aid children with walking difficulties.
All these strategic developments align with the company's commitment to comprehensive pediatric orthopedic care.
Image Source: Zacks Investment Research
Market Prospects
Per a Market Data Library report, the global pediatric orthopedic implant market is projected to witness a robust CAGR of 10.2% from 2022 to 2031. The surge is propelled by an escalating incidence of orthopedic disorders in children, amplified awareness regarding pediatric orthopedic implants and technological strides.
Lifestyle-related orthopedic diseases are mounting, accentuating the demand for advanced therapies. Material and design innovations enhance implant safety and efficacy. Increased healthcare spending, growing awareness, digital accessibility to medical information and government initiatives fortify market expansion. The adoption of minimally invasive surgical techniques further contributes to the market's promising prospects.
Share Price Performance
Shares of KIDS have plunged 28.9% in the past year compared with the industry’s 4.9% decline.
Zacks Rank and Key Picks
The stock carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. Haemonetics and DexCom each presently carry a Zacks Rank #2 (Buy), and Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has decreased 1% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.89 in 2023 and $4.07 to $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.91 in the past 30 days. Shares of the company have dropped 36.5% in the past year compared with the industry’s decline of 3.3%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.39 to $1.43 in the past 30 days. Shares of the company have increased 0.1% in the past year compared with the industry’s decline of 4.7%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
OrthoPediatrics Corp. (KIDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
KIDS recently introduced the OrthoPediatrics Specialty Bracing (“OPSB”) division, marking a significant advancement in non-surgical intervention for pediatric orthopedics. Building on this foundation, KIDS is consistently putting efforts into developing a comprehensive portfolio of complementary products to address the large unmet needs for specialty bracing within the pediatric orthopedic market. Added to this, OrthoPediatrics continues to diversify its non-surgical offerings with the introduction of the DF2 Brace, providing an alternative to the spica cast for femur fracture fixation in pediatric patients aged six months to five years.
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Image Source: Zacks Investment Research Market Prospects Per a Market Data Library report, the global pediatric orthopedic implant market is projected to witness a robust CAGR of 10.2% from 2022 to 2031. Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report OrthoPediatrics Corp. (KIDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Building on this foundation, KIDS is consistently putting efforts into developing a comprehensive portfolio of complementary products to address the large unmet needs for specialty bracing within the pediatric orthopedic market. Image Source: Zacks Investment Research Market Prospects Per a Market Data Library report, the global pediatric orthopedic implant market is projected to witness a robust CAGR of 10.2% from 2022 to 2031. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report OrthoPediatrics Corp. (KIDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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KIDS recently introduced the OrthoPediatrics Specialty Bracing (“OPSB”) division, marking a significant advancement in non-surgical intervention for pediatric orthopedics. In this line, earlier in 2023, MDO acquired Rhino Pediatric Orthopedic Designs. Earnings estimates for Haemonetics have increased from $3.82 to $3.89 in 2023 and $4.07 to $4.15 in 2024 in the past 30 days.
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c9d571b5-f826-48c3-b08d-2d845de9189b
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714128.0
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2023-12-07 00:00:00 UTC
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3 Energy Stocks Priced Under $100 to Bet on Right Away
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DCOMP
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https://www.nasdaq.com/articles/3-energy-stocks-priced-under-%24100-to-bet-on-right-away
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nan
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nan
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Although crude price recently fell nearly 4% on concerns of global fuel demand, the commodity price is still highly favorable for exploration and production companies. This is due to the employment of premium drilling techniques that significantly lowered the operating costs of the upstream energy players. In fact, for most of the leading explorers and producers, the break-even oil price is well below $45, creating room for sustainable operations in a low crude pricing environment.
Midstream energy players are also well-positioned to gain amid energy market volatility. This is because they generate stable fee-based revenues from long-term bookings of transportation and storage assets by shippers for transporting natural gas and crude. Hence, their business model is relatively low-risk, which indicates considerably less exposure to oil and gas prices and volume risks.
Considering the current context, it's an opportune moment for investors to incorporate energy stocks into their portfolios. Notably, there are numerous energy stocks worth considering that are priced below $100 per share. Three such stocks are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Core Laboratories Inc. CLB.
For selecting these stocks, we have employed our proprietary Stock Screener. While one stock carries a Zacks Rank #2 (Buy) at present, the other two sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Promising Stocks
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.
With its pipeline networks spread across more than 30,000 miles, the company sports a Zacks Rank #1 at present. It connects premium basins in the United States to the key market. WMB’s assets can meet 30% of the nation’s consumption of natural gas, utilized for heating purposes and clean-energy generation.
The Williams Companies closed at $35.84 yesterday and has a very reasonable valuation. It trades at EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio of 11.4, lower than its five-year average multiple of 11.72. It is to be noted that since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA ratio.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes.
The company acquired Advance Energy Partners Holdings, LLC, in the largest deal in its two-decade history. MTDR, sporting a Zacks Rank #1 at present, expects the buyout to be accretive to important valuation and financial metrics since the deal involves a strategic bolt-on of 18,500 net acres in the core of the Northern Delaware Basin, a sub-basin of the prolific Permian Basin.
Matador closed at $53.48 yesterday and has a very reasonable valuation. MTDR trades at EV/EBITDA ratio of 4.81, lower than its five-year average multiple of 5.76.
As a well-known provider of patented reservoir description and production enhancement services, Core Laboratories is well-positioned to grow, thanks to the improving demand for its reservoir description services. The company, with a Zacks Rank of 2 at present, is focused on reducing its debt load.
Core Laboratories closed at $17.44 yesterday and has a reasonable valuation. CLB trades at EV/EBITDA ratio of 14.86, lower than its five-year average multiple of 18.58.
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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Core Laboratories Inc. (CLB) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is due to the employment of premium drilling techniques that significantly lowered the operating costs of the upstream energy players. WMB’s assets can meet 30% of the nation’s consumption of natural gas, utilized for heating purposes and clean-energy generation. Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin.
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Three such stocks are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Core Laboratories Inc. CLB. While one stock carries a Zacks Rank #2 (Buy) at present, the other two sport a Zacks Rank #1 (Strong Buy) each. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Core Laboratories Inc. (CLB) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Three such stocks are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Core Laboratories Inc. CLB. 3 Promising Stocks 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. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Core Laboratories Inc. (CLB) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Three such stocks are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Core Laboratories Inc. CLB. While one stock carries a Zacks Rank #2 (Buy) at present, the other two sport a Zacks Rank #1 (Strong Buy) each. MTDR, sporting a Zacks Rank #1 at present, expects the buyout to be accretive to important valuation and financial metrics since the deal involves a strategic bolt-on of 18,500 net acres in the core of the Northern Delaware Basin, a sub-basin of the prolific Permian Basin.
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714129.0
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2023-12-07 00:00:00 UTC
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You Can Follow Many of Warren Buffett's Investment Moves in 2024. This Shouldn't Be 1 of Them.
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https://www.nasdaq.com/articles/you-can-follow-many-of-warren-buffetts-investment-moves-in-2024.-this-shouldnt-be-1-of
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Warren Buffett is one of the most recognizable names in investing. When you consider Buffett is worth over $110 billion, and his conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), is one of the premier blue chip stocks on the market, it's easy to see why that might be the case.
Buffett and his team's success at Berkshire Hathaway has inspired many investors to attempt to mirror their investment strategies. However, one aspect of Berkshire Hathaway's portfolio that the average investor should avoid is its concentration in just a few stocks.
The portfolio consists of around 50 companies, but a handful make up most of it. As of Sept. 30, 2023, here are Berkshire Hathaway's top holdings:
COMPANY NUMBER OF SHARES OWNED PERCENTAGE OF STOCK PORTFOLIO
Apple 915,560,382 48.2%
Bank of America 1,032,852,006 8.8%
American Express 151,610,700 7.3%
Coca-Cola 400,000,000 6.5%
Chevron 110,248,289 4.4%
Data source: Berkshire Hathaway 13F Filing.
This concentration reflects Buffett and Berkshire Hathaway's philosophy of keying in on companies they believe have long-term potential and strong market positions. Even so, investors shouldn't lose sight of their personal objectives and risk tolerance.
The good is good, but the bad can be ugly
It's hard to argue against having the world's most valuable public company account for almost 50% of your stock portfolio when it's up over 860% in the past decade and 328% in the past five years. However, hindsight is always 20/20. Just as the success of a handful of stocks has boosted Berkshire Hathaway's portfolio, the opposite could also happen.
Do I think that it will happen? Not at all. But the stock market isn't logical, and nobody can predict its movements. Diversification is meant to be somewhat of a safety net. When a particular company or sector slumps or underperforms, the other parts of your portfolio can help pull some of the weight and provide stability.
If Berkshire Hathaway had seen nearly half of its stock portfolio trade like Kraft Heinz (another large holding) over the past five years, it returns would look a lot different.
Data by YCharts.
So, what makes Buffett and Berkshire Hathaway an exception?
It seems counterintuitive to say how successful Berkshire Hathaway has been and then turn around and tell you not to copy their moves, but the company's situation is simply not representative of the average investor.
To begin, Berkshire Hathaway's success results from Buffett and his team's exceptional ability to analyze a company better than most individual investors. This includes in-depth and meticulous analysis of financial statements, economic indicators, market trends, etc.
This doesn't mean the average investor can't do those things; they just realistically won't because of how time-consuming it is, nor do they have access to company executives and advisors like Berkshire does.
It's also important to note the difference in financial situations between Berkshire Hathaway and the average investor. Berkshire Hathaway is working with a ton of resources and capital, so it can afford to take larger risks or absorb potential losses that could be devastating for an individual investor.
You can mimic the investments without the allocation
If you want to mirror Berkshire Hathaway's investments, that's your choice, and plenty of investors do it. However, you don't have to mirror the allocation. You can invest in Apple, Bank of America, American Express, Coca-Cola, and Chevron, but these stock don't have to -- and probably shouldn't -- make up 75% of your stock portfolio.
A diversified portfolio might not grow the way an individual stock can, but it also carries less risk while prioritizing long-term returns and stability. There's a reason it's widely considered one of the fundamental pillars of investing.
10 stocks we like better than Berkshire Hathaway
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 29, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If Berkshire Hathaway had seen nearly half of its stock portfolio trade like Kraft Heinz (another large holding) over the past five years, it returns would look a lot different. It seems counterintuitive to say how successful Berkshire Hathaway has been and then turn around and tell you not to copy their moves, but the company's situation is simply not representative of the average investor. Berkshire Hathaway is working with a ton of resources and capital, so it can afford to take larger risks or absorb potential losses that could be devastating for an individual investor.
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Apple 915,560,382 48.2% Bank of America 1,032,852,006 8.8% American Express 151,610,700 7.3% Coca-Cola 400,000,000 6.5% Chevron 110,248,289 4.4% Data source: Berkshire Hathaway 13F Filing. You can invest in Apple, Bank of America, American Express, Coca-Cola, and Chevron, but these stock don't have to -- and probably shouldn't -- make up 75% of your stock portfolio. See the 10 stocks *Stock Advisor returns as of November 29, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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However, one aspect of Berkshire Hathaway's portfolio that the average investor should avoid is its concentration in just a few stocks. You can invest in Apple, Bank of America, American Express, Coca-Cola, and Chevron, but these stock don't have to -- and probably shouldn't -- make up 75% of your stock portfolio. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them!
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If Berkshire Hathaway had seen nearly half of its stock portfolio trade like Kraft Heinz (another large holding) over the past five years, it returns would look a lot different. So, what makes Buffett and Berkshire Hathaway an exception? You can invest in Apple, Bank of America, American Express, Coca-Cola, and Chevron, but these stock don't have to -- and probably shouldn't -- make up 75% of your stock portfolio.
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1156d7aa-b788-4809-a7b8-84f6abff41ae
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714130.0
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2023-12-07 00:00:00 UTC
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Safe Deposits: 3 Financial Stocks to Secure Your Portfolio
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https://www.nasdaq.com/articles/safe-deposits%3A-3-financial-stocks-to-secure-your-portfolio
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I wouldn’t blame you for thinking the financial sector is on shaky ground. With significant uncertainties hiding around the corner, it isn’t easy to pinpoint where the market is headed. Possibilities of higher-for-longer interest rates and sticky inflation is the news of the day, all while Wall Street demands a rate cut. Judging from the Federal Reserve’s moves, there is a significant possibility of a soft landing. However, this uncertainty is causing some investors to move their capital from bank stocks into other sectors.
According to Deloitte’s Banking Industry Outlook, the macroeconomic environment is one of the critical drivers of most banks’ ability to generate income, maintain profitability, and manage costs. For the banks to face these challenges, a greater focus on addressing higher deposit costs while anticipating modest loan growth and adapting to changing market dynamics and regulatory pressures are some of the critical things they need to do in the next fiscal year.
While the outlook might be murky, there are still great opportunities in the banking sector if you feel a bit contrarian. Additional due diligence and research are required to identify which bank stock offers the best risk-to-reward ratio and potential growth, and we’re here to help out with those. These three bank stocks are some of the best to own right now.
Customers Bancorp (CUBI)
Source: totojang1977 / Shutterstock.com
The first financial stock in our list is Customers Bancorp (NYSE:CUBI), which operates as a bank holding company. Its operations are done under its subsidiaries, providing full-service banking services from deposits, loans, commercial banking, and lending. The company also has specialty banking operations for niche businesses, offering commercial loans, equipment financing, and warehouse lending. In June 2023, the company purchased a loan portfolio from the FDIC at a significant discount alongside its venture team to increase its venture banking coverage.
CUBI reported a spectacular quarter with its 61.87% EPS surprise, a 23.97% return on Common Equity (ROCE), and an increase in net interest margin (tax equivalent) by 55 basis points from the previous quarter. Furthermore, the company outperformed its capital ratio goals with a Common Equity Tier 1 ratio of 11.3% in September 2023. This puts CUBI in the same league of financial stocks to buy.
Customers Bancorp CEO, Jay Sidhu, emphasized that its performance was due to the company’s emphasis on sustained deposit growth, robust liquidity, a diversified deposit base, and a focused approach to new loan production in a cautious environment.
We think CUBI’s positive outlook and adaptability make it a strong contender for one of the best bank stocks to buy.
Merchants Bancorp (MBIN)
Source: shutterstock.com/marozhka studio
Merchants Bancorp (NASDAQ:MBIN) is a bank holding company that operates various subsidiaries specializing in three main banking segments:
Mortgage Warehousing: Conducts residential and commercial loan segmentation.
Banking: Offering consumers and businesses a wide variety of financial products and services.
Mortgage Banking Services: These government-sponsored mortgages are intended for healthcare and multi-family facilities. The subsidiaries include Merchants Bank, FMBI (Farmers-Merchants Bank of Illinois), and MAM (Merchants Asset Management, LLC).
MBIN ended its latest quarter on a positive note. To start, it beat analysts earnings expectations by 27.27%. The company grew its net income by 39%, while diluted EPS grew by 38% YoY. Merchants Bancorp also increased its tangible book value per common share by 24%. According to the company, this strong performance was due to its conservative underwriting, effective management of asset & liability duration, and cost controls. MBIN’s effective management and solid financial performance make it one of the most attractive bank stocks to buy and include in your portfolio.
Northeast Bank (NBN)
Source: FabrikaSimf / Shutterstock
Northeast Bank (NASDAQ:NBN) is a full-service bank mainly serving clients in Portland, Maine. The company operates in several key segments. Its Community Banking Division and Small Business Administration (SBA) National Division originates loans for the business. Its National Lending Division purchases discounted performing commercial estate loans. Meanwhile, the SBA National Division develops loans to help small businesses raise funds for operations. NBN’s community banking division is focused on originating loans directly to companies in its market area.
Northeast Bank reported a strong quarter, with its earnings beating analyst ratings of 28.85%. Net income increased by $8.30 million against the same quarter last year. According to the company’s report, the growth was due to its remarkable return on average equity and assets. Its National Lending division also had improved yields and increased volume. It’s therefore one of those financial stocks to consider.
The company reported that its past-due loans and nonperforming assets increased slightly but were still at healthy levels with improved capital ratios. This substantial improvement in earnings, financials, and strengthening capital ratios puts NBN on our list of top bank stocks to buy.
As of the date of publication, Rick Orford did not have any positions (either directly or indirectly) 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.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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The post Safe Deposits: 3 Financial Stocks to Secure Your Portfolio appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the banks to face these challenges, a greater focus on addressing higher deposit costs while anticipating modest loan growth and adapting to changing market dynamics and regulatory pressures are some of the critical things they need to do in the next fiscal year. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Safe Deposits: 3 Financial Stocks to Secure Your Portfolio appeared first on InvestorPlace.
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Customers Bancorp (CUBI) Source: totojang1977 / Shutterstock.com The first financial stock in our list is Customers Bancorp (NYSE:CUBI), which operates as a bank holding company. Merchants Bancorp (MBIN) Source: shutterstock.com/marozhka studio Merchants Bancorp (NASDAQ:MBIN) is a bank holding company that operates various subsidiaries specializing in three main banking segments: Mortgage Warehousing: Conducts residential and commercial loan segmentation. Northeast Bank (NBN) Source: FabrikaSimf / Shutterstock Northeast Bank (NASDAQ:NBN) is a full-service bank mainly serving clients in Portland, Maine.
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Customers Bancorp (CUBI) Source: totojang1977 / Shutterstock.com The first financial stock in our list is Customers Bancorp (NYSE:CUBI), which operates as a bank holding company. Merchants Bancorp (MBIN) Source: shutterstock.com/marozhka studio Merchants Bancorp (NASDAQ:MBIN) is a bank holding company that operates various subsidiaries specializing in three main banking segments: Mortgage Warehousing: Conducts residential and commercial loan segmentation. Northeast Bank (NBN) Source: FabrikaSimf / Shutterstock Northeast Bank (NASDAQ:NBN) is a full-service bank mainly serving clients in Portland, Maine.
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However, this uncertainty is causing some investors to move their capital from bank stocks into other sectors. Its operations are done under its subsidiaries, providing full-service banking services from deposits, loans, commercial banking, and lending. This substantial improvement in earnings, financials, and strengthening capital ratios puts NBN on our list of top bank stocks to buy.
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714131.0
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2023-12-07 00:00:00 UTC
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Technology Sector Update for 12/07/2023: AI, SMTC, SEAT, XLK, XSD
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https://www.nasdaq.com/articles/technology-sector-update-for-12-07-2023%3A-ai-smtc-seat-xlk-xsd
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Technology stocks were edging higher premarket Thursday with the SPDR S&P Semiconductor ETF (XSD) advancing by 0.6% and the Technology Select Sector SPDR Fund (XLK) up 0.4% recently.
C3.ai (AI) was slipping past 10% after it reported a fiscal Q2 non-GAAP loss of $0.13 per diluted share, wider than a loss of $0.11 a year earlier. Analysts polled by Capital IQ expected a $0.18 loss.
Semtech (SMTC) was up more than 11% after it reported fiscal Q3 net sales of $200.9 million, up from $177.6 million a year earlier. Analysts surveyed by Capital IQ expected $200.6 million.
Vivid Seats (SEAT) was down more than 12% after saying a selling shareholder intends to issue 18.5 million of the company's class A shares through a secondary underwritten public offering.
The views and 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 edging higher premarket Thursday with the SPDR S&P Semiconductor ETF (XSD) advancing by 0.6% and the Technology Select Sector SPDR Fund (XLK) up 0.4% recently. Analysts polled by Capital IQ expected a $0.18 loss. Vivid Seats (SEAT) was down more than 12% after saying a selling shareholder intends to issue 18.5 million of the company's class A shares through a secondary underwritten public offering.
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Analysts polled by Capital IQ expected a $0.18 loss. Semtech (SMTC) was up more than 11% after it reported fiscal Q3 net sales of $200.9 million, up from $177.6 million a year earlier. Analysts surveyed by Capital IQ expected $200.6 million.
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C3.ai (AI) was slipping past 10% after it reported a fiscal Q2 non-GAAP loss of $0.13 per diluted share, wider than a loss of $0.11 a year earlier. Semtech (SMTC) was up more than 11% after it reported fiscal Q3 net sales of $200.9 million, up from $177.6 million a year earlier. Vivid Seats (SEAT) was down more than 12% after saying a selling shareholder intends to issue 18.5 million of the company's class A shares through a secondary underwritten public offering.
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Technology stocks were edging higher premarket Thursday with the SPDR S&P Semiconductor ETF (XSD) advancing by 0.6% and the Technology Select Sector SPDR Fund (XLK) up 0.4% recently. C3.ai (AI) was slipping past 10% after it reported a fiscal Q2 non-GAAP loss of $0.13 per diluted share, wider than a loss of $0.11 a year earlier. Analysts polled by Capital IQ expected a $0.18 loss.
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714132.0
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2023-12-07 00:00:00 UTC
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Is Trending Stock Nikola Corporation (NKLA) a Buy Now?
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https://www.nasdaq.com/articles/is-trending-stock-nikola-corporation-nkla-a-buy-now-0
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Nikola (NKLA) 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 pioneer in zero-emission trucks have returned -3.7%, compared to the Zacks S&P 500 composite's +4.4% change. During this period, the Zacks Automotive - Domestic industry, which Nikola falls in, has gained 8.8%. 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.
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.
Nikola is expected to post a loss of $0.13 per share for the current quarter, representing a year-over-year change of +64.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of -$0.78 points to a change of +29.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of -$0.54 indicates a change of +30.3% from what Nikola 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, Nikola 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.
In the case of Nikola, the consensus sales estimate of $14.67 million for the current quarter points to a year-over-year change of +123.6%. The $39.44 million and $215.79 million estimates for the current and next fiscal years indicate changes of -22.4% and +447.2%, respectively.
Last Reported Results and Surprise History
Nikola reported revenues of $-1.73 million in the last reported quarter, representing a year-over-year change of -107.1%. EPS of -$0.30 for the same period compares with -$0.28 a year ago.
Compared to the Zacks Consensus Estimate of $15.52 million, the reported revenues represent a surprise of -111.16%. The EPS surprise was -100%.
Over the last four quarters, Nikola surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once 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.
Nikola 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 Nikola. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nikola Corporation (NKLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nikola.
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Last Reported Results and Surprise History Nikola reported revenues of $-1.73 million in the last reported quarter, representing a year-over-year change of -107.1%. 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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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. 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.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. EPS of -$0.30 for the same period compares with -$0.28 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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798a774a-bec3-4755-8104-6cc9eabaf246
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714133.0
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2023-12-07 00:00:00 UTC
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US STOCKS-S&P, Nasdaq eye higher open on Alphabet boost, payrolls data in focus
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DCOMP
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-eye-higher-open-on-alphabet-boost-payrolls-data-in-focus
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Dec 7 (Reuters) - The S&P 500 and the Nasdaq were set to open higher on Thursday, propped up by gains in Alphabet shares, while investors looked forward to monthly payrolls data due later in the week for clues on the Federal Reserve's policy actions. Shares of the Google-parent GOOGL.Owere up 3.1% in premarket trading, a day after the release of the company's most advanced artificial intelligence model called Gemini. Other megacap stocks were mixed in premarket trading.
Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year.
Traders have almost fully priced in the likelihood of the Fed keeping interest rates unchanged at its meeting next week and have 61% odds for a rate cut as soon as March 2024, according to the CME Group's FedWatch tool.
However, some analysts have warned that markets have been too optimistic about rate cuts and also said the upcoming jobs report will be crucial in determining the chances of a soft landing - where the Fed manages to avert a recession.
"They (the Fed) certainly don't have any cuts coming soon, but are data dependent," said Joe Saluzzi, co-manager of trading at Themis Trading. "So if data is in line, that basically keeps the Fed on the current path."
The Labor Department's report, due on Friday, is expected to show that non-farm payrolls increased by 180,000 jobs last month after rising by 150,000 in October.
A separate reading showed initial jobless claims stood at 220,000 for the week ended Dec. 2, lower than estimates of 222,000, according to economists polled by Reuters.
Meanwhile, comments from Bank of Japan Governor Kazuo Ueda added to growing speculation that the central bank could soon shift away from its ultra-easy monetary policy.
At 8:36 a.m. ET, Dow e-minis 1YMcv1 were down 47 points, or 0.13%, S&P 500 e-minis EScv1 were up 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were up 45 points, or 0.28%.
Among other major movers, Advanced Micro DevicesAMD.Ogained 2.5%, a day after the chipmaker estimated there was a $45 billion market for its data center artificial intelligence processors this year.
GameStopGME.N tumbled 8.2% after the videogame retailer missed estimates for quarterly revenue, hurt by rising competition.
Bristol-Myers SquibbBMY.Nadded 1.3% after the drugmaker announced an additional $3 billion share buyback program.
Dollar GeneralDG.Nrose 3.0% as the retailer's quarterly results beat estimates.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Saumyadeb Chakrabarty and Anil D'Silva)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - The S&P 500 and the Nasdaq were set to open higher on Thursday, propped up by gains in Alphabet shares, while investors looked forward to monthly payrolls data due later in the week for clues on the Federal Reserve's policy actions. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. However, some analysts have warned that markets have been too optimistic about rate cuts and also said the upcoming jobs report will be crucial in determining the chances of a soft landing - where the Fed manages to avert a recession.
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Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. Among other major movers, Advanced Micro DevicesAMD.Ogained 2.5%, a day after the chipmaker estimated there was a $45 billion market for its data center artificial intelligence processors this year. (Reporting by Amruta Khandekar and Shristi Achar A; Editing by Saumyadeb Chakrabarty and Anil D'Silva) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - The S&P 500 and the Nasdaq were set to open higher on Thursday, propped up by gains in Alphabet shares, while investors looked forward to monthly payrolls data due later in the week for clues on the Federal Reserve's policy actions. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. Among other major movers, Advanced Micro DevicesAMD.Ogained 2.5%, a day after the chipmaker estimated there was a $45 billion market for its data center artificial intelligence processors this year.
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By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - The S&P 500 and the Nasdaq were set to open higher on Thursday, propped up by gains in Alphabet shares, while investors looked forward to monthly payrolls data due later in the week for clues on the Federal Reserve's policy actions. Shares of the Google-parent GOOGL.Owere up 3.1% in premarket trading, a day after the release of the company's most advanced artificial intelligence model called Gemini. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year.
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9bc4ce7a-21ad-4782-8d8d-d68f315481b2
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714134.0
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2023-12-07 00:00:00 UTC
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T-Mobile (TMUS) Accentuates Multi-Band Spectrum Strategy
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DCOMP
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https://www.nasdaq.com/articles/t-mobile-tmus-accentuates-multi-band-spectrum-strategy
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T-Mobile US, Inc. TMUS has successfully tested 5G standalone millimeter wave (mmWave) on its production network for faster download and upload speed. The first-of-its-kind test on the 5G network accentuates the Un-carrier’s multi-band spectrum strategy as it aims to reach a broader user base across the country.
5G mmWave refers to the radio spectrum between 24GHz and 100GHz. This range is referred to as high-band 5G and is best used in densely populated areas across shorter ranges. It delivers the fastest speed because it offers massive capacity, making it ideal for cutting-edge technology, such as autonomous vehicles. With ultra-low latency, the 5G mmWave band enables smart cities to support everything from Internet backhaul connectivity in vehicles to high-definition live security camera feeds.
However, 5G mmWave signal doesn’t travel very well through obstacles and struggles to penetrate objects such as glass, walls, buildings and dense foliage. The signals also require a fiber backhaul and rely more heavily on line of sight for coverage. Consequently, most carriers like T-Mobile have implemented a multi-band spectrum strategy using low-band to achieve maximum coverage and mid-band and high-band to deliver faster broadband speeds.
The Un-carrier is now aiming to overcome this limitation by testing 5G mmWave on 5G standalone network for crowded areas like stadiums and fixed wireless service. Collaborating with Ericsson and Qualcomm Technologies, Inc., it aggregated eight channels of mmWave spectrum to reach download speeds of 4.3 Gbps and four channels on the uplink for an upload speed of above 420 Mbps.
The company’s 5G network covers more than 330 million people in the country. The Ultra Capacity 5G delivers superfast speeds, powering 5G smartphones and enabling innovators to deliver transformational 5G experiences, covering 300 million Americans. The company now intends to bring more competition to home broadband, especially in underserved rural markets.
Shares of the company have gained 8.1% in the past year against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
T-Mobile currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comtech Telecommunications Corp. CMTL, presently carrying a Zacks Rank #2 (Buy), is a solid pick. Headquartered in Melville, NY, the company is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers.
Comtech’s key satellite earth station modems incorporate forward error correction and bandwidth compression technologies, which enable its customers to optimize their satellite networks by either reducing their satellite transponder lease costs or increasing data.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architectures and enhance their cloud experiences. Arista has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
AudioCodes Ltd. AUDC currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 14%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products, and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With ultra-low latency, the 5G mmWave band enables smart cities to support everything from Internet backhaul connectivity in vehicles to high-definition live security camera feeds. Headquartered in Melville, NY, the company is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
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T-Mobile US, Inc. TMUS has successfully tested 5G standalone millimeter wave (mmWave) on its production network for faster download and upload speed. Image Source: Zacks Investment Research Zacks Rank & Key Picks T-Mobile currently carries a Zacks Rank #3 (Hold). Arista has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
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T-Mobile US, Inc. TMUS has successfully tested 5G standalone millimeter wave (mmWave) on its production network for faster download and upload speed. Image Source: Zacks Investment Research Zacks Rank & Key Picks T-Mobile currently carries a Zacks Rank #3 (Hold). Arista Networks, Inc. ANET, carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines.
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T-Mobile US, Inc. TMUS has successfully tested 5G standalone millimeter wave (mmWave) on its production network for faster download and upload speed. Image Source: Zacks Investment Research Zacks Rank & Key Picks T-Mobile currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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b7e9fb72-c365-406e-a2a2-7368c7a3a348
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714135.0
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2023-12-07 00:00:00 UTC
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BASF gives agriculture, battery units more autonomy but no plan to split
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DCOMP
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https://www.nasdaq.com/articles/basf-gives-agriculture-battery-units-more-autonomy-but-no-plan-to-split
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nan
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nan
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By Ludwig Burger and Patricia Weiss
FRANKFURT, Dec 7 (Reuters) - BASF BASFn.DE plans to turn its agriculture, battery materials and coatings businesses into autonomous units to try to boost earnings, a major revamp for the German chemicals giant that has traditionally been highly integrated.
The company, with sales of 87 billion euros ($94 billion) last year, will create legally separate entities for the three units, trade union IGBCE said in a statement on Thursday, which was confirmed by a company spokesperson.
However, "there is no intention to sell these businesses," CEO Martin Brudermueller said during an investor conference. He earlier said external investment partners could be taken on board to share the cost of expanding the battery business.
BASF has already made its catalytic converter business, which relies on combustion-engine powered cars, a standalone subsidiary, which it said in October there were no current plans to sell.
BASF's shares rose as much as 2% before paring gains to close 1.4% higher at 45 euros each.
Other industrial groups in Germany, including ThyssenKruppTKAG.DE, have pursued separation moves, which are typically welcomed by investors who often prefer to buy shares in pure-play companies.
Bayer BAYGn.DE, a rival maker of seeds and crop chemicals, last month said it was considering breaking up its business to improve a battered share price, while chemicals distributor Brenntag BNRGn.DE will reorganise into two independent divisions as it faces pressure from activist investors.
"When something is separated, people draw their own conclusions and expect a sale," the head of BASF's works council, Sinischa Horvat, told Reuters, although he said management had assured him this was not the case.
The revamp comes as Brudermueller gets ready to retire from BASF in April 2024 to become non-executive chairman of Mercedes Benz MBGn.DE. Markus Kamieth, in charge of BASF's Asian operations and chief technology officer Melanie Maas-Brunner are vying to succeed him, a person familiar with the matter has told Reuters.
VERBUND
Unlike major rivals such as Dow DOW.N and Dupont DD.N, BASF has traditionally relied on integrated chemical complexes known as Verbund, producing most of its intermediate substances in house to cut transportation and energy costs and utilise by-products.
"Businesses that are less deeply integrated into the Verbund will gain more space to meet the needs of their specific customer industries while keeping the benefits of an integrated company," BASF said in a statement.
The union said close to 2,500 employees would be affected by the overhaul at BASF's Ludwigshafen headquarters, or almost 10% of staff at the site.
Hit by a subdued European home market, BASF in October mapped out further cost cuts, scaled back investment and said 2023 earnings and sales would be at the lower end of target ranges due to an "extremely uncertain" global macroeconomic outlook.
"The likelihood is that at least 2024 will be another difficult year," Brudermueller said.
Europe's largest chemical company also said that it would stop providing a sales outlook from January, and would guide for earnings before interest, taxes, depreciation and amortisation (EBITDA) before special items rather than EBIT.
BASF's Agricultural Solutions unit had 10.3 billion euros in sales last year, competing with Bayer, Corteva CTVA.N and China's Syngenta, while revenue at the coatings business was 4.2 billion euros, selling mainly to carmakers and repair shops.
Battery materials and related recycling business units generated sales of more than 1 billion but, along with a new chemical complex in Zhanjiang in southern China, it is one of the areas where BASF invests the most.
On China, Brudermueller said clients are starting to restock, "still soft, but definitely a big step forward".
(Reporting by Ludwig Burger and Patricia Weiss, additional reporting by Andrey Sychev Editing by Miranda Murray, Kirsten Donovan)
((ludwig.burger@thomsonreuters.com; +49 30 220133634;))
The views and 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 Ludwig Burger and Patricia Weiss FRANKFURT, Dec 7 (Reuters) - BASF BASFn.DE plans to turn its agriculture, battery materials and coatings businesses into autonomous units to try to boost earnings, a major revamp for the German chemicals giant that has traditionally been highly integrated. Unlike major rivals such as Dow DOW.N and Dupont DD.N, BASF has traditionally relied on integrated chemical complexes known as Verbund, producing most of its intermediate substances in house to cut transportation and energy costs and utilise by-products. Hit by a subdued European home market, BASF in October mapped out further cost cuts, scaled back investment and said 2023 earnings and sales would be at the lower end of target ranges due to an "extremely uncertain" global macroeconomic outlook.
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By Ludwig Burger and Patricia Weiss FRANKFURT, Dec 7 (Reuters) - BASF BASFn.DE plans to turn its agriculture, battery materials and coatings businesses into autonomous units to try to boost earnings, a major revamp for the German chemicals giant that has traditionally been highly integrated. Unlike major rivals such as Dow DOW.N and Dupont DD.N, BASF has traditionally relied on integrated chemical complexes known as Verbund, producing most of its intermediate substances in house to cut transportation and energy costs and utilise by-products. BASF's Agricultural Solutions unit had 10.3 billion euros in sales last year, competing with Bayer, Corteva CTVA.N and China's Syngenta, while revenue at the coatings business was 4.2 billion euros, selling mainly to carmakers and repair shops.
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By Ludwig Burger and Patricia Weiss FRANKFURT, Dec 7 (Reuters) - BASF BASFn.DE plans to turn its agriculture, battery materials and coatings businesses into autonomous units to try to boost earnings, a major revamp for the German chemicals giant that has traditionally been highly integrated. BASF's Agricultural Solutions unit had 10.3 billion euros in sales last year, competing with Bayer, Corteva CTVA.N and China's Syngenta, while revenue at the coatings business was 4.2 billion euros, selling mainly to carmakers and repair shops. Battery materials and related recycling business units generated sales of more than 1 billion but, along with a new chemical complex in Zhanjiang in southern China, it is one of the areas where BASF invests the most.
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By Ludwig Burger and Patricia Weiss FRANKFURT, Dec 7 (Reuters) - BASF BASFn.DE plans to turn its agriculture, battery materials and coatings businesses into autonomous units to try to boost earnings, a major revamp for the German chemicals giant that has traditionally been highly integrated. BASF's Agricultural Solutions unit had 10.3 billion euros in sales last year, competing with Bayer, Corteva CTVA.N and China's Syngenta, while revenue at the coatings business was 4.2 billion euros, selling mainly to carmakers and repair shops. Battery materials and related recycling business units generated sales of more than 1 billion but, along with a new chemical complex in Zhanjiang in southern China, it is one of the areas where BASF invests the most.
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dbdefd0b-b5cd-482c-8396-88d64b54d123
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714136.0
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2023-12-07 00:00:00 UTC
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Investors Heavily Search MercadoLibre, Inc. (MELI): Here is What You Need to Know
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DCOMP
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https://www.nasdaq.com/articles/investors-heavily-search-mercadolibre-inc.-meli%3A-here-is-what-you-need-to-know-2
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nan
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nan
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MercadoLibre (MELI) 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.
Over the past month, shares of this operator of an online marketplace and payments system in Latin America have returned +14.8%, compared to the Zacks S&P 500 composite's +4.4% change. During this period, the Zacks Internet - Commerce industry, which MercadoLibre falls in, has gained 3.8%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, MercadoLibre is expected to post earnings of $7.16 per share, indicating a change of +120.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.1% over the last 30 days.
The consensus earnings estimate of $22.80 for the current fiscal year indicates a year-over-year change of +139.2%. This estimate has changed +4.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $34.76 indicates a change of +52.5% from what MercadoLibre is expected to report a year ago. Over the past month, the estimate has changed +7.5%.
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, MercadoLibre 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
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.
In the case of MercadoLibre, the consensus sales estimate of $4.13 billion for the current quarter points to a year-over-year change of +37.7%. The $14.35 billion and $17.5 billion estimates for the current and next fiscal years indicate changes of +36.2% and +22%, respectively.
Last Reported Results and Surprise History
MercadoLibre reported revenues of $3.76 billion in the last reported quarter, representing a year-over-year change of +39.8%. EPS of $7.16 for the same period compares with $2.56 a year ago.
Compared to the Zacks Consensus Estimate of $3.57 billion, the reported revenues represent a surprise of +5.22%. The EPS surprise was +22.39%.
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.
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.
MercadoLibre 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 MercadoLibre. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Over the past month, shares of this operator of an online marketplace and payments system in Latin America have returned +14.8%, compared to the Zacks S&P 500 composite's +4.4% change. 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 MercadoLibre.
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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 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. Last Reported Results and Surprise History MercadoLibre reported revenues of $3.76 billion in the last reported quarter, representing a year-over-year change of +39.8%. 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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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, MercadoLibre is rated Zacks Rank #2 (Buy). 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. EPS of $7.16 for the same period compares with $2.56 a year ago. 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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6b1d31df-8165-4787-8268-0ade4b004b02
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714137.0
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2023-12-07 00:00:00 UTC
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Is Trending Stock Target Corporation (TGT) a Buy Now?
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DCOMP
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https://www.nasdaq.com/articles/is-trending-stock-target-corporation-tgt-a-buy-now-3
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nan
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nan
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Target (TGT) 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.
Over the past month, shares of this retailer have returned +21.4%, compared to the Zacks S&P 500 composite's +4.4% change. During this period, the Zacks Retail - Discount Stores industry, which Target falls in, has gained 7.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
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.
For the current quarter, Target is expected to post earnings of $2.38 per share, indicating a change of +25.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.7% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $8.34 points to a change of +38.5% from the prior year. Over the last 30 days, this estimate has changed +10%.
For the next fiscal year, the consensus earnings estimate of $9.09 indicates a change of +9% from what Target is expected to report a year ago. Over the past month, the estimate has changed +1.3%.
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, Target 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.
For Target, the consensus sales estimate for the current quarter of $31.88 billion indicates a year-over-year change of +1.6%. For the current and next fiscal years, $107.38 billion and $106.72 billion estimates indicate -1.6% and -0.6% changes, respectively.
Last Reported Results and Surprise History
Target reported revenues of $25.4 billion in the last reported quarter, representing a year-over-year change of -4.2%. EPS of $2.10 for the same period compares with $1.54 a year ago.
Compared to the Zacks Consensus Estimate of $25.24 billion, the reported revenues represent a surprise of +0.62%. The EPS surprise was +41.89%.
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.
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.
Target 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.
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 Target. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
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Target Corporation (TGT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. 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 Target.
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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. 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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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, Target is rated Zacks Rank #2 (Buy). 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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And if earnings estimates go up for a company, the fair value for its stock goes up. EPS of $2.10 for the same period compares with $1.54 a year ago. 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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9dbc36dd-78b9-464f-b456-b70ebb0d3537
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714138.0
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2023-12-07 00:00:00 UTC
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Here is What to Know Beyond Why Marriott International, Inc. (MAR) 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-marriott-international-inc.-mar-is-a-trending-stock-0
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nan
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nan
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Marriott International (MAR) 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 hotel company have returned +6.3% over the past month versus the Zacks S&P 500 composite's +4.4% change. The Zacks Hotels and Motels industry, to which Marriott belongs, has gained 6.7% 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.
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.
Marriott is expected to post earnings of $2.13 per share for the current quarter, representing a year-over-year change of +8.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $8.59 for the current fiscal year indicates a year-over-year change of +28.4%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $9.72 indicates a change of +13.1% from what Marriott is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
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 #3 (Hold) for Marriott.
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 Marriott, the consensus sales estimate of $6.31 billion for the current quarter points to a year-over-year change of +6.5%. The $23.87 billion and $25.46 billion estimates for the current and next fiscal years indicate changes of +14.9% and +6.7%, respectively.
Last Reported Results and Surprise History
Marriott reported revenues of $5.93 billion in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $2.11 for the same period compares with $1.69 a year ago.
Compared to the Zacks Consensus Estimate of $5.9 billion, the reported revenues represent a surprise of +0.55%. The EPS surprise was +0.48%.
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.
Marriott 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 Marriott. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. 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 Marriott.
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For the next fiscal year, the consensus earnings estimate of $9.72 indicates a change of +13.1% from what Marriott 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. Last Reported Results and Surprise History Marriott reported revenues of $5.93 billion in the last reported quarter, representing a year-over-year change of +11.6%.
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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 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. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%. For the next fiscal year, the consensus earnings estimate of $9.72 indicates a change of +13.1% from what Marriott is expected to report a year ago.
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2b0a78bd-3a14-4e3a-bb96-1321c4a8fb1b
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714139.0
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2023-12-07 00:00:00 UTC
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Wells Fargo & Company (WFC) 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/wells-fargo-company-wfc-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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Wells Fargo (WFC) 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.
Over the past month, shares of this biggest U.S. mortgage lender have returned +8.6%, compared to the Zacks S&P 500 composite's +4.4% change. During this period, the Zacks Banks - Major Regional industry, which Wells Fargo falls in, has gained 9.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Wells Fargo is expected to post earnings of $1.24 per share, indicating a change of +85.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $5.24 for the current fiscal year indicates a year-over-year change of +66.9%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.82 indicates a change of -8% from what Wells Fargo is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Wells Fargo 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
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.
In the case of Wells Fargo, the consensus sales estimate of $20.25 billion for the current quarter points to a year-over-year change of +3%. The $82.32 billion and $81.12 billion estimates for the current and next fiscal years indicate changes of +11.6% and -1.5%, respectively.
Last Reported Results and Surprise History
Wells Fargo reported revenues of $20.86 billion in the last reported quarter, representing a year-over-year change of +6.9%. EPS of $1.39 for the same period compares with $1.30 a year ago.
Compared to the Zacks Consensus Estimate of $20.21 billion, the reported revenues represent a surprise of +3.18%. The EPS surprise was +11.2%.
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.
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.
Wells Fargo 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 Wells Fargo. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free 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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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. 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 Wells Fargo.
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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 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. Last Reported Results and Surprise History Wells Fargo reported revenues of $20.86 billion in the last reported quarter, representing a year-over-year change of +6.9%. Click to get this free report Wells Fargo & Company (WFC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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, Wells Fargo is rated Zacks Rank #3 (Hold). 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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For the next fiscal year, the consensus earnings estimate of $4.82 indicates a change of -8% from what Wells Fargo is expected to report a year ago. EPS of $1.39 for the same period compares with $1.30 a year ago. 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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00b56b48-ab06-425d-bee8-3d041b8005f4
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714140.0
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2023-12-07 00:00:00 UTC
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Ex-Dividend Reminder: Best Buy, CBL & Associates Properties and Pathward Financial
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DCOMP
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-best-buy-cbl-associates-properties-and-pathward-financial
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 12/11/23, Best Buy Inc (Symbol: BBY), CBL & Associates Properties Inc (Symbol: CBL), and Pathward Financial Inc (Symbol: CASH) will all trade ex-dividend for their respective upcoming dividends. Best Buy Inc will pay its quarterly dividend of $0.92 on 1/2/24, CBL & Associates Properties Inc will pay its quarterly dividend of $0.375 on 12/29/23, and Pathward Financial Inc will pay its quarterly dividend of $0.05 on 1/2/24. As a percentage of BBY's recent stock price of $75.09, this dividend works out to approximately 1.23%, so look for shares of Best Buy Inc to trade 1.23% lower — all else being equal — when BBY shares open for trading on 12/11/23. Similarly, investors should look for CBL to open 1.59% lower in price and for CASH to open 0.10% lower, all else being equal.
Below are dividend history charts for BBY, CBL, and CASH, showing historical dividends prior to the most recent ones declared.
Best Buy Inc (Symbol: BBY):
CBL & Associates Properties Inc (Symbol: CBL):
Pathward Financial Inc (Symbol: CASH):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.90% for Best Buy Inc, 6.36% for CBL & Associates Properties Inc, and 0.39% for Pathward Financial Inc.
In Thursday trading, Best Buy Inc shares are currently up about 1.5%, CBL & Associates Properties Inc shares are down about 1.3%, and Pathward Financial Inc shares are up about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
OTTW Split History
Institutional Holders of GBB
LAYN Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. If they do continue, the current estimated yields on annualized basis would be 4.90% for Best Buy Inc, 6.36% for CBL & Associates Properties Inc, and 0.39% for Pathward Financial Inc. dividend stocks should be on your radar screen » Also see: OTTW Split History Institutional Holders of GBB LAYN Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/11/23, Best Buy Inc (Symbol: BBY), CBL & Associates Properties Inc (Symbol: CBL), and Pathward Financial Inc (Symbol: CASH) will all trade ex-dividend for their respective upcoming dividends. Best Buy Inc will pay its quarterly dividend of $0.92 on 1/2/24, CBL & Associates Properties Inc will pay its quarterly dividend of $0.375 on 12/29/23, and Pathward Financial Inc will pay its quarterly dividend of $0.05 on 1/2/24. Best Buy Inc (Symbol: BBY): CBL & Associates Properties Inc (Symbol: CBL): Pathward Financial Inc (Symbol: CASH): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/11/23, Best Buy Inc (Symbol: BBY), CBL & Associates Properties Inc (Symbol: CBL), and Pathward Financial Inc (Symbol: CASH) will all trade ex-dividend for their respective upcoming dividends. Best Buy Inc will pay its quarterly dividend of $0.92 on 1/2/24, CBL & Associates Properties Inc will pay its quarterly dividend of $0.375 on 12/29/23, and Pathward Financial Inc will pay its quarterly dividend of $0.05 on 1/2/24. Best Buy Inc (Symbol: BBY): CBL & Associates Properties Inc (Symbol: CBL): Pathward Financial Inc (Symbol: CASH): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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As a percentage of BBY's recent stock price of $75.09, this dividend works out to approximately 1.23%, so look for shares of Best Buy Inc to trade 1.23% lower — all else being equal — when BBY shares open for trading on 12/11/23. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.90% for Best Buy Inc, 6.36% for CBL & Associates Properties Inc, and 0.39% for Pathward Financial Inc.
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3ecde73d-9de4-4628-932c-bc6662b1fe69
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714141.0
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2023-12-07 00:00:00 UTC
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Investors Should Pay Attention to This Out-of-Favor Stock in 2024 -- Here's Why
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DCOMP
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https://www.nasdaq.com/articles/investors-should-pay-attention-to-this-out-of-favor-stock-in-2024-heres-why
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nan
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nan
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To say that Redfin (NASDAQ: RDFN) has been a top performer in 2023 would be an understatement. After the real estate disruptor was essentially left for dead by experts in late 2022 as the real estate market ground to a halt, management has done an excellent job of renewing its focus on Redfin's core competencies, and of emphasizing efficiency.
In fact, despite a 12% decline in revenue in the third quarter, Redfin's net loss narrowed from $90 million in the third quarter of last year to just $19 million, and the company was profitable on an adjusted basis.
Due to its (so far) effective turnaround strategy, Redfin's stock has performed well this year. While it's been quite a roller-coaster ride for investors, the stock has gained 81% year to date through Dec. 5.
Despite this year's outperformance, Redfin could be just getting started (after all, it's still about 90% below its 2021 high). There are some clear catalysts that could help Redfin's business in 2024 and beyond, and while I don't exactly think the ride will be a smooth one, Redfin looks extremely attractive from a risk-reward perspective as we head into 2024.
Why I'm adding shares of Redfin in December
I invested rather heavily in Redfin in late 2022 and early 2023, but I'm planning to add to my position significantly before the end of the year. It isn't just because of management's excellent execution of its turnaround plan -- there are three big reasons why I think 2024 could be a big year for Redfin.
First is the real estate market in general. We're finally seeing signs of normalization. Mortgage rates are well off their October highs, new listings increased by 6% year over year in November, and home prices seem to have stabilized.
Redfin itself has projected mortgage rates will decline in 2024 and existing home inventories will increase. This would be a major catalyst for the real estate industry as a whole.
Second, Redfin has said that it plans to be profitable in 2024 -- if it can achieve that goal (which seemed outlandish about a year ago), it would go a long way toward showing investors that the business model is indeed viable long term.
Third, and perhaps most significant, is the ongoing legal saga in the real estate industry regarding brokerage fees. In a high-profile lawsuit accusing the National Association of Realtors (NAR) and several major brokerages of keeping commissions artificially high, a judge ruled against them.
Make no mistake -- this is good news for Redfin. Essentially, the argument is that by requiring the sellers to pay both the listing agent and buyer's agent, it is keeping the antiquated 6% selling commission structure in place. On the other hand, if buyers had to hire and pay their own agents, prices would likely fall, and in many cases, buyers wouldn't use an agent at all.
Redfin has been saying for more than a decade that real estate commissions were too high, and the main idea behind its platform is that by automating as much of the process as possible, agents can sell more homes and still make more money while keeping commissions low. Redfin recently introduced its Redfin Max compensation structure that is very agent-friendly, and an efficient real estate platform will be an extremely valuable tool to agents as costs get more attention and fewer buyers hire agents. Plus, Redfin's platform will be a natural fit as fewer buyers use agents, as it makes the home search and touring process very easy.
A great buy for the real estate-minded
The real estate market is not only starting to thaw, but there is (finally) clear momentum toward more awareness of the fees and commissions that are paid as part of the homebuying process. Redfin is well ahead of the curve when it comes to adapting to a lower-fee real estate world and could be the best-positioned brokerage to thrive as the market evolves.
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Matthew Frankel, CFP® has positions in Redfin. The Motley Fool has positions in and recommends Redfin. The Motley Fool recommends the following options: short February 2024 $8 calls on Redfin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a high-profile lawsuit accusing the National Association of Realtors (NAR) and several major brokerages of keeping commissions artificially high, a judge ruled against them. Plus, Redfin's platform will be a natural fit as fewer buyers use agents, as it makes the home search and touring process very easy. Redfin is well ahead of the curve when it comes to adapting to a lower-fee real estate world and could be the best-positioned brokerage to thrive as the market evolves.
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Third, and perhaps most significant, is the ongoing legal saga in the real estate industry regarding brokerage fees. Essentially, the argument is that by requiring the sellers to pay both the listing agent and buyer's agent, it is keeping the antiquated 6% selling commission structure in place. Redfin recently introduced its Redfin Max compensation structure that is very agent-friendly, and an efficient real estate platform will be an extremely valuable tool to agents as costs get more attention and fewer buyers hire agents.
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After the real estate disruptor was essentially left for dead by experts in late 2022 as the real estate market ground to a halt, management has done an excellent job of renewing its focus on Redfin's core competencies, and of emphasizing efficiency. Redfin has been saying for more than a decade that real estate commissions were too high, and the main idea behind its platform is that by automating as much of the process as possible, agents can sell more homes and still make more money while keeping commissions low. Redfin recently introduced its Redfin Max compensation structure that is very agent-friendly, and an efficient real estate platform will be an extremely valuable tool to agents as costs get more attention and fewer buyers hire agents.
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This would be a major catalyst for the real estate industry as a whole. Plus, Redfin's platform will be a natural fit as fewer buyers use agents, as it makes the home search and touring process very easy. A great buy for the real estate-minded The real estate market is not only starting to thaw, but there is (finally) clear momentum toward more awareness of the fees and commissions that are paid as part of the homebuying process.
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21de86b4-018b-4a09-88fb-abec51719b54
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714142.0
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2023-12-07 00:00:00 UTC
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Abbvie to focus on smaller deals after Cerevel and ImmunoGen buyout
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DCOMP
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https://www.nasdaq.com/articles/abbvie-to-focus-on-smaller-deals-after-cerevel-and-immunogen-buyout
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nan
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nan
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Adds details from conference call and background throughout, analyst comment in paragraph 8
Dec 7 (Reuters) - U.S. drugmaker AbbVie ABBV.N said on Thursday it intends to focus on smaller deals to support its growth through the next decade, after it struck two multibillion dollar deals in the past week to acquire Cerevel Therapeutics CERE.O and ImmunoGen IMGN.O.
"I would not anticipate similar sized transactions for the foreseeable future," said AbbVie's Chief Operating Officer Robert Michael on a conference call, referring to the company's $8.7 billion buyout of Cerevel Therapeutics CERE.O announced on Wednesday.
AbbVie said it expects to return to "robust growth" in 2025, after its recent buying spree.
"With additions of Cerevel and ImmunoGen, AbbVie is in a stronger position to deliver sustainable long-term performance in the 2030s and beyond timeframe," said the company's Chairman and CEO Richard Gonzalez.
Some Wall Street analysts raised concerns that Cerevel's treatments under development might overlap with AbbVie's products, presenting a potential risk for the deal to get approval from the U.S. Federal Trade Commission.
Gonzalez said AbbVie has "confidence" the deal will get through the FTC.
AbbVie's Vraylar is approved for schizophrenia, bipolar disorder and major depressive disorder. The U.S. drugmaker also has its Parkinson's disease treatment Duodopa in the market and another candidate ABBV-951 in development.
"I think the schizophrenia overlap may warrant some additional scrutiny. However, it is a pretty fragmented kind of space," said BMO Capital analyst Evan Seigerman.
(Reporting by Bhanvi Satija and Khushi Mandowara in Bengaluru; Editing by Krishna Chandra Eluri)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"I would not anticipate similar sized transactions for the foreseeable future," said AbbVie's Chief Operating Officer Robert Michael on a conference call, referring to the company's $8.7 billion buyout of Cerevel Therapeutics CERE.O announced on Wednesday. "With additions of Cerevel and ImmunoGen, AbbVie is in a stronger position to deliver sustainable long-term performance in the 2030s and beyond timeframe," said the company's Chairman and CEO Richard Gonzalez. Some Wall Street analysts raised concerns that Cerevel's treatments under development might overlap with AbbVie's products, presenting a potential risk for the deal to get approval from the U.S. Federal Trade Commission.
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"I would not anticipate similar sized transactions for the foreseeable future," said AbbVie's Chief Operating Officer Robert Michael on a conference call, referring to the company's $8.7 billion buyout of Cerevel Therapeutics CERE.O announced on Wednesday. "With additions of Cerevel and ImmunoGen, AbbVie is in a stronger position to deliver sustainable long-term performance in the 2030s and beyond timeframe," said the company's Chairman and CEO Richard Gonzalez. Some Wall Street analysts raised concerns that Cerevel's treatments under development might overlap with AbbVie's products, presenting a potential risk for the deal to get approval from the U.S. Federal Trade Commission.
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Adds details from conference call and background throughout, analyst comment in paragraph 8 Dec 7 (Reuters) - U.S. drugmaker AbbVie ABBV.N said on Thursday it intends to focus on smaller deals to support its growth through the next decade, after it struck two multibillion dollar deals in the past week to acquire Cerevel Therapeutics CERE.O and ImmunoGen IMGN.O. "I would not anticipate similar sized transactions for the foreseeable future," said AbbVie's Chief Operating Officer Robert Michael on a conference call, referring to the company's $8.7 billion buyout of Cerevel Therapeutics CERE.O announced on Wednesday. Some Wall Street analysts raised concerns that Cerevel's treatments under development might overlap with AbbVie's products, presenting a potential risk for the deal to get approval from the U.S. Federal Trade Commission.
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Adds details from conference call and background throughout, analyst comment in paragraph 8 Dec 7 (Reuters) - U.S. drugmaker AbbVie ABBV.N said on Thursday it intends to focus on smaller deals to support its growth through the next decade, after it struck two multibillion dollar deals in the past week to acquire Cerevel Therapeutics CERE.O and ImmunoGen IMGN.O. "I would not anticipate similar sized transactions for the foreseeable future," said AbbVie's Chief Operating Officer Robert Michael on a conference call, referring to the company's $8.7 billion buyout of Cerevel Therapeutics CERE.O announced on Wednesday. AbbVie said it expects to return to "robust growth" in 2025, after its recent buying spree.
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73362d25-b251-4db5-9b26-ec4113dfaeb4
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714143.0
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2023-12-07 00:00:00 UTC
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Kontron AG, Bsquare To Consummate Merger - Quick Facts
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DCOMP
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https://www.nasdaq.com/articles/kontron-ag-bsquare-to-consummate-merger-quick-facts
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nan
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nan
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(RTTNews) - Kontron AG and Bsquare Corp. (BSQR) announced the successful completion of the tender offer by Kontron Merger Sub., Inc., an indirect subsidiary of Kontron, to acquire all of the outstanding shares of common stock of Bsquare, for $1.90 per share. The companies said all conditions to the offer have been satisfied.
As of the expiration time, approximately 14,093,157 shares were validly tendered and not validly withdrawn in the offer, representing approximately 70.9% of the total outstanding shares as of the expiration time and an additional 386,424 shares were tendered pursuant to guaranteed delivery procedures, representing an additional approximately 1.9% of total outstanding shares at the expiration time.
The companies expect to consummate the merger on or about December 7, 2023. The remaining outstanding shares will be converted into the right to receive $1.90 per share. Bsquare will become a wholly-owned, indirect subsidiary of Kontron and Bsquare common stock will cease trading on NASDAQ.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Kontron AG and Bsquare Corp. (BSQR) announced the successful completion of the tender offer by Kontron Merger Sub., Inc., an indirect subsidiary of Kontron, to acquire all of the outstanding shares of common stock of Bsquare, for $1.90 per share. As of the expiration time, approximately 14,093,157 shares were validly tendered and not validly withdrawn in the offer, representing approximately 70.9% of the total outstanding shares as of the expiration time and an additional 386,424 shares were tendered pursuant to guaranteed delivery procedures, representing an additional approximately 1.9% of total outstanding shares at the expiration time. The companies expect to consummate the merger on or about December 7, 2023.
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(RTTNews) - Kontron AG and Bsquare Corp. (BSQR) announced the successful completion of the tender offer by Kontron Merger Sub., Inc., an indirect subsidiary of Kontron, to acquire all of the outstanding shares of common stock of Bsquare, for $1.90 per share. As of the expiration time, approximately 14,093,157 shares were validly tendered and not validly withdrawn in the offer, representing approximately 70.9% of the total outstanding shares as of the expiration time and an additional 386,424 shares were tendered pursuant to guaranteed delivery procedures, representing an additional approximately 1.9% of total outstanding shares at the expiration time. Bsquare will become a wholly-owned, indirect subsidiary of Kontron and Bsquare common stock will cease trading on NASDAQ.
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(RTTNews) - Kontron AG and Bsquare Corp. (BSQR) announced the successful completion of the tender offer by Kontron Merger Sub., Inc., an indirect subsidiary of Kontron, to acquire all of the outstanding shares of common stock of Bsquare, for $1.90 per share. As of the expiration time, approximately 14,093,157 shares were validly tendered and not validly withdrawn in the offer, representing approximately 70.9% of the total outstanding shares as of the expiration time and an additional 386,424 shares were tendered pursuant to guaranteed delivery procedures, representing an additional approximately 1.9% of total outstanding shares at the expiration time. The views and 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) - Kontron AG and Bsquare Corp. (BSQR) announced the successful completion of the tender offer by Kontron Merger Sub., Inc., an indirect subsidiary of Kontron, to acquire all of the outstanding shares of common stock of Bsquare, for $1.90 per share. The companies said all conditions to the offer have been satisfied. The companies expect to consummate the merger on or about December 7, 2023.
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98f5096c-2a7c-4d06-9a71-7a705435252d
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714144.0
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2023-12-07 00:00:00 UTC
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W.P. Carey Inc. (WPC) is Attracting Investor Attention: Here is What You Should Know
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DCOMP
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https://www.nasdaq.com/articles/w.p.-carey-inc.-wpc-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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W.P. Carey (WPC) 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 real estate investment trust have returned +17.1%, compared to the Zacks S&P 500 composite's +4.4% change. During this period, the Zacks REIT and Equity Trust - Other industry, which W.P. Carey falls in, has gained 10.5%. 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.
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.
W.P. Carey is expected to post earnings of $1.20 per share for the current quarter, representing a year-over-year change of -7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $5.20 points to a change of -1.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $4.61 indicates a change of -11.4% from what W.P. Carey 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, W.P. Carey 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.
In the case of W.P. Carey, the consensus sales estimate of $423.19 million for the current quarter points to a year-over-year change of +5.1%. The $1.76 billion and $1.67 billion estimates for the current and next fiscal years indicate changes of +19.1% and -5.1%, respectively.
Last Reported Results and Surprise History
W.P. Carey reported revenues of $448.55 million in the last reported quarter, representing a year-over-year change of +16.9%. EPS of $0.58 for the same period compares with $0.51 a year ago.
Compared to the Zacks Consensus Estimate of $459.46 million, the reported revenues represent a surprise of -2.37%. The EPS surprise was 0%.
Over the last four quarters, the company surpassed EPS estimates just once. 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.
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.
W.P. Carey 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 W.P. Carey. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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W.P. Carey Inc. (WPC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 real estate investment trust have returned +17.1%, compared to the Zacks S&P 500 composite's +4.4% change. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast 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. 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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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. 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.
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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 $4.61 indicates a change of -11.4% from what W.P. EPS of $0.58 for the same period compares with $0.51 a year ago.
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039c7db9-88a1-4ff6-b300-c3c7604d8678
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714145.0
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2023-12-07 00:00:00 UTC
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ARMOUR Residential REIT, Inc. (ARR) 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/armour-residential-reit-inc.-arr-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-3
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nan
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nan
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Armour Residential REIT (ARR) 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 real estate investment trust have returned +11.4%, compared to the Zacks S&P 500 composite's +4.4% change. During this period, the Zacks REIT and Equity Trust industry, which Armour Residential REIT falls in, has gained 6.7%. 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.
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.
Armour Residential REIT is expected to post earnings of $0.90 per share for the current quarter, representing a year-over-year change of -33.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $4.54 points to a change of -21.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $3.84 indicates a change of -15.4% from what Armour Residential REIT 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, Armour Residential REIT is rated Zacks Rank #5 (Strong Sell).
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.
In the case of Armour Residential REIT, the consensus sales estimate of $38.2 million for the current quarter points to a year-over-year change of +131.4%. The $59.55 million and $183.58 million estimates for the current and next fiscal years indicate changes of -44.7% and +208.3%, respectively.
Last Reported Results and Surprise History
Armour Residential REIT reported revenues of $3.6 million in the last reported quarter, representing a year-over-year change of -85.7%. EPS of $1.08 for the same period compares with $1.60 a year ago.
Compared to the Zacks Consensus Estimate of $4.51 million, the reported revenues represent a surprise of -20.22%. The EPS surprise was -6.09%.
Over the last four quarters, the company surpassed EPS estimates just once. The company could not beat consensus revenue estimates in any of the last four quarters.
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.
Armour Residential REIT 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 Armour Residential REIT. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. In the case of Armour Residential REIT, the consensus sales estimate of $38.2 million for the current quarter points to a year-over-year change of +131.4%. 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 Armour Residential REIT.
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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, Armour Residential REIT is rated Zacks Rank #5 (Strong Sell). Last Reported Results and Surprise History Armour Residential REIT reported revenues of $3.6 million in the last reported quarter, representing a year-over-year change of -85.7%. 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, Armour Residential REIT is rated Zacks Rank #5 (Strong Sell). 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 $3.84 indicates a change of -15.4% from what Armour Residential REIT 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, Armour Residential REIT is rated Zacks Rank #5 (Strong Sell).
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155e3cad-c232-49b8-926f-ac49aa48bc3d
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714146.0
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2023-12-07 00:00:00 UTC
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The Zacks Rank Explained: How to Find Strong Buy Consumer Staples Stocks
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DCOMP
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https://www.nasdaq.com/articles/the-zacks-rank-explained%3A-how-to-find-strong-buy-consumer-staples-stocks-0
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nan
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nan
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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.
But what's the best way to find the right combination of stocks? Because funding things like your retirement, your kids' college tuition, or your short- and long-term savings goals will definitely require significant returns.
Enter the Zacks Rank.
What is the Zacks Rank?
The Zacks Rank is a unique, proprietary stock-rating model that utilizes earnings estimate revisions to help investors build a winning portfolio.
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 one of these factors is given a raw score that's recalculated every night, and then compiled into the Zacks Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "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.
These professionals manage the trillions of dollars invested in hedge funds, mutual funds, and investment banks, and studies have shown that they can and do move the market because of the large amounts of money they invest with. Thus, the market tends to move in the same direction as institutional investors.
These investors are known for designing valuation models that focus on earnings and earnings expectations in order to figure out the fair value of a company and its shares. If earnings estimates are raised, it puts a higher value on a company.
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.
Retail investors who get in at the first sign of upward revisions have a distinct advantage over larger investors since it can often take weeks, if not months, for an institutional investor to build a position. They'll also benefit from the expected institutional buying that could 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 Molson Coors Brewing (TAP), which was added to the Zacks Rank #1 list on November 9, 2023.
Molson Coors Beverage Company, previously known as Molson Coors Brewing Company, was formed by the merger of Molson Inc. and Adolph Coors Co. in February 2005. The global manufacturer and seller of beer and other beverage products has an impressive diverse portfolio of owned and partner brands. These brands include global priority brands such as Blue Moon, Miller Lite, CoorsBanquet, Coors Light, Miller Genuine Draft and Staropramen; as well as regional champion brands like Carling, Molson Canadian. The company also boasts some other major country-specific brands, along with craft and specialty beers, namely, Creemore Springs, Henry's Hard, Cobra, Doom Bar and Leinenkugel's.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.22 to $5.28 per share. TAP boasts an average earnings surprise of 41.3%.
Earnings are expected to grow 28.8% for the current fiscal year, while revenue is projected to increase 9.1%.
Even more impressive, TAP has gained in value over the past four weeks, up 4.9% compared to the S&P 500's gain of 4.4%.
Bottom Line
With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Molson Coors Brewing 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.
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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 >>
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Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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. The Zacks Rank is a unique, proprietary stock-rating model that utilizes earnings estimate revisions to help investors build a winning portfolio. The company also boasts some other major country-specific brands, along with craft and specialty beers, namely, Creemore Springs, Henry's Hard, Cobra, Doom Bar and Leinenkugel's.
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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. Bottom Line With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Molson Coors Brewing should be on investors' shortlist. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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. How to Invest with the Zacks Rank The Zacks Rank is known for transforming investment portfolios. Bottom Line With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Molson Coors Brewing should be on investors' shortlist.
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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. See Today's Zacks #1 Rank List >> Only $1 to See All Zacks' Buys and Sells We're not kidding.
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2023-12-07 00:00:00 UTC
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Bargain Hunting? This Dividend Stock Has a Lot to Prove Before It Is a Buy Again.
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https://www.nasdaq.com/articles/bargain-hunting-this-dividend-stock-has-a-lot-to-prove-before-it-is-a-buy-again.
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Calavo Growers (NASDAQ: CVGW) paid an annual dividend for many years, and it was increased regularly, building a fairly impressive dividend record. Then, in late 2022, the dividend policy changed slightly. And it was changed again in early 2023 in a decidedly negative way.
The shares are down roughly 75% from peak levels in 2018, which might interest bargain hunters looking for cheap stocks. Except that the dividend changes need to be considered before income investors buy in. Yes, Calavo Growers' stock is interesting, but it now has a lot to prove on the dividend front.
Calavo Growers is an intriguing company
A little over half of Calavo's top line comes from its "grown" segment, which is mostly driven by avocados. The company also sells tomatoes and papayas. The rest of the top line is tied to its prepared foods division, which processes and packages cut fruits, vegetables, and meat. This group also makes guacamole.
Image source: Getty Images.
The company's gross profit mix is notably different from its revenue mix. The grown segment represents nearly 70% of gross profit while the prepared foods group accounts for only about 30%. Basically, avocados are the driving force behind the business.
Although avocado prices can be volatile (in the third quarter of 2023, they were 38% below year-ago levels), Calavo Growers has benefited from a long-term trend of increasing avocado demand. The company believes that demand will continue to grow for the foreseeable future because the number of households buying avocados remains well below that of other prominent fruits, like apples and bananas.
The dividend isn't what it used to be
The big stock-price drop is largely related to a downturn in the company's earnings trends. As the chart below highlights, earnings started to fall late in the last decade and dipped deep into the red following the height of the pandemic.
That's perhaps not so surprising given the impact on eating trends that occurred due to social distancing. While financial results have begun to improve, the cash dividend payout ratio (which compares the dividend to cash flow, and not earnings) rose to unsustainable levels in 2021.
CVGW data by YCharts; EPS = earnings per share.
For many years, Calavo Growers paid an annual dividend as its business expanded. But the dramatic rise in the cash dividend payout ratio led the company to announce that it was switching from an annual dividend to a quarterly one in 2022. According to Steven Hollister, chairman of the board at the time, "Our move to a quarterly dividend improves our financial flexibility and aligns with common practice."
CVGW cash dividend payout ratio (annual); data by YCharts.
There's no question that more companies pay quarterly dividends than annual ones, so that makes sense. But the comment about financial flexibility is a bit more troubling given the spike in the cash dividend payout ratio.
Certainly, paying smaller amounts four times a year would save the company from having to squirrel up cash. But the total dividend payment didn't change, so there's only just so much benefit on the liquidity front at the end of the day. Which is why it probably shouldn't have been surprising to see the dividend cut from $0.2875 per quarter to just $0.10 in early 2023.
The cut was announced by Lee Cole, the company's onetime CEO who returned to active CEO duty in March 2023. According to the news release, "Mr. Cole has agreed to lead the Company for three years with the goal of returning the company to a position of growth and shareholder value creation."
Cutting the dividend is a quick and easy way to free up capital for other purposes. But it changes the dividend story in a big way. Basically, Calavo Growers looks like a turnaround stock right now.
Calavo seems cheap, but hold off for now
Calavo's price-to-sales ratio is roughly 0.5, well below the five-year average of around 0.9, with price-to-cash-flow and price-to-book-value also notably below their longer-term averages. (A string of losses makes the price-to-earnings ratio a less useful metric.) So it would be easy to see why bargain hunters would want to take a look at the stock now that results appear to be moving in the right direction again.
But the dividend cut needs to be considered carefully by income investors since it changes a long trend toward higher payments. Until the newly returning CEO can get the payout growing again, it is probably best for income investors to err on the side of caution here. The dividend story just isn't the same anymore.
10 stocks we like better than Calavo Growers
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Calavo Growers wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The rest of the top line is tied to its prepared foods division, which processes and packages cut fruits, vegetables, and meat. The company believes that demand will continue to grow for the foreseeable future because the number of households buying avocados remains well below that of other prominent fruits, like apples and bananas. According to Steven Hollister, chairman of the board at the time, "Our move to a quarterly dividend improves our financial flexibility and aligns with common practice."
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Calavo Growers (NASDAQ: CVGW) paid an annual dividend for many years, and it was increased regularly, building a fairly impressive dividend record. CVGW cash dividend payout ratio (annual); data by YCharts. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Calavo Growers (NASDAQ: CVGW) paid an annual dividend for many years, and it was increased regularly, building a fairly impressive dividend record. While financial results have begun to improve, the cash dividend payout ratio (which compares the dividend to cash flow, and not earnings) rose to unsustainable levels in 2021. But the dramatic rise in the cash dividend payout ratio led the company to announce that it was switching from an annual dividend to a quarterly one in 2022.
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There's no question that more companies pay quarterly dividends than annual ones, so that makes sense. Which is why it probably shouldn't have been surprising to see the dividend cut from $0.2875 per quarter to just $0.10 in early 2023. That's right -- they think these 10 stocks are even better buys.
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714148.0
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2023-12-07 00:00:00 UTC
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AMZN Stock Alert: Why Amazon Is the Only E-Commerce Stock You Should Buy and Hold Long-Term
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https://www.nasdaq.com/articles/amzn-stock-alert%3A-why-amazon-is-the-only-e-commerce-stock-you-should-buy-and-hold-long
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amazon (NASDAQ:AMZN), once a bookseller, has evolved into a global e-commerce giant with a diverse product range. With a solid market share in key high-growth sectors, the company has remained remarkably resilient in growing through periods of volatility in the past. Year-to-date, AMZN stock is up roughly 70%, nearing its 52-week high of $149 per share. Investing in this tech giant remains attractive, considering its broad portfolio spanning streaming and cloud services and its core business.
Additionally, Amazon’s focus on Artificial Intelligence, demonstrated through investments in AI startup Anthropic, positions it well for future growth. Here are a few more reasons investors should consider this stock as a long-term hold in your portfolio.
Excellent E-Commerce Contender
E-commerce is fundamental to Amazon’s history. Originating as a bookstore, Amazon swiftly acquired other e-commerce ventures, establishing its dominance. The company now owns approximately 38% of the entire U.S. market and is also a venerable global player. Despite the pandemic-driven competition, Amazon maintains its lead, recently enhancing its fulfillment network under CEO Andy Jassy.
Facing reduced demand, Amazon prioritized efficiency without compromising quality or speed. AI investments played a key role, leading to a 20% decrease in package “touches” and a 19% reduction in travel miles per order in Q2 2023. This not only enhances customer satisfaction but also cuts travel costs. As e-commerce sales are projected to grow over 10% annually through 2028, Amazon’s dominance and commitment to improvement position it favorably within these trends.
Amazon Selling Hyundai Models
Amazon and Hyundai have teamed up to sell Hyundai vehicles online in the U.S. Customers can browse, customize, and purchase cars on Amazon.com, scheduling delivery through a local Hyundai dealer and expanding on their digital showroom partnership.
Hyundai established its initial digital showroom on Amazon in 2018 and announced an updated version at the Los Angeles Auto Show. The expanded agreement includes access to Amazon’s Alexa voice assistant in Hyundai vehicles by 2025. CEO Jay Chang expressed excitement about the partnership.
Cloud-Computing Services Are Top-Tier
AWS continues to dominate the cloud computing sector with a 32% market share. In Q3, AWS sales surged by 12% year-over-year, contributing significantly to Amazon’s operating income. While growth slowed due to customer budget cuts in the inflationary climate, management anticipates a reacceleration based on emerging trends.
Despite strong numbers in Q3, Jassy did note clients have been initiating cost optimizations. Thus, several significant deals signed in September will impact Q4 with a higher volume than Q3. Amazon introduced innovative generative AI services on AWS, aiming to enhance efficiency, reduce repetitive tasks, and encourage creative work, reinforcing its leadership, market share, and sales growth.
Bet on AMZN With No Doubt
In Q3 2023, sales surged 13% year-over-year, marking a return to robust profitability after an annual loss. With an operating margin of 7.8%, close to pandemic highs, Amazon’s diverse businesses, including advertising, streaming, and healthcare, present potential growth drivers.
Despite a price-earnings ratio of 75, reflecting a premium valuation, Amazon is known for reliable growth. Thus, as the company has done in the past, I expect AMZN stock to grow into this valuation over time easily. For those thinking long-term, AMZN stock remains a no-brainer in my book.
On the date of publication, Chris MacDonald has a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post AMZN Stock Alert: Why Amazon Is the Only E-Commerce Stock You Should Buy and Hold Long-Term 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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Amazon introduced innovative generative AI services on AWS, aiming to enhance efficiency, reduce repetitive tasks, and encourage creative work, reinforcing its leadership, market share, and sales growth. With an operating margin of 7.8%, close to pandemic highs, Amazon’s diverse businesses, including advertising, streaming, and healthcare, present potential growth drivers. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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Hyundai established its initial digital showroom on Amazon in 2018 and announced an updated version at the Los Angeles Auto Show. In Q3, AWS sales surged by 12% year-over-year, contributing significantly to Amazon’s operating income. With an operating margin of 7.8%, close to pandemic highs, Amazon’s diverse businesses, including advertising, streaming, and healthcare, present potential growth drivers.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon (NASDAQ:AMZN), once a bookseller, has evolved into a global e-commerce giant with a diverse product range. Amazon Selling Hyundai Models Amazon and Hyundai have teamed up to sell Hyundai vehicles online in the U.S. Customers can browse, customize, and purchase cars on Amazon.com, scheduling delivery through a local Hyundai dealer and expanding on their digital showroom partnership. 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 AMZN Stock Alert: Why Amazon Is the Only E-Commerce Stock You Should Buy and Hold Long-Term appeared first on InvestorPlace.
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This not only enhances customer satisfaction but also cuts travel costs. As e-commerce sales are projected to grow over 10% annually through 2028, Amazon’s dominance and commitment to improvement position it favorably within these trends. Thus, as the company has done in the past, I expect AMZN stock to grow into this valuation over time easily.
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714149.0
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2023-12-07 00:00:00 UTC
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Got $2,000? Here Are 2 Beaten-Down Growth Stocks to Buy Right Now
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https://www.nasdaq.com/articles/got-%242000-here-are-2-beaten-down-growth-stocks-to-buy-right-now-12
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$2,000 may not seem like much to invest, but it's enough to make a difference if you pick the right stocks and have a long enough investment time horizon.
After all, thanks to the magic of compounding, a $2,000 investment would turn into more than $10,000 in 20 years, just by tracking with the historical 9% annual return of the S&P 500.
If you'd like to beat that return, keep reading to see two stocks you can scoop up today at a discount.
Image source: Getty Images.
1. PayPal
PayPal (NASDAQ: PYPL) was once a market darling, surging in its early history and during the pandemic. However, the economic reopening has brought a slowdown in digital spending, which has cooled off growth at digital payments companies like PayPal.
As a result, the stock is now down 81% from its pandemic-era peak, but there are signs that PayPal is starting to turn the corner. Revenue in the third quarter accelerated modestly year over year to 8%, and adjusted earnings per share jumped 20% to $1.30. Total payment volume was up 15% to $387.7 billion, showing that demand for its services is still strong.
The company has also been overhauling its management team, bringing in Alex Chriss as its new CEO and Jamie Miller as its new CFO. Chriss aims to cut costs and renew the focus on the core business instead of acquisitions. The company has also been aggressively buying back stock to take advantage of the discounted stock price, repurchasing $1.4 billion worth of shares in the third quarter and $5.4 billion over the past four quarters, reducing shares outstanding by more than 10%.
Reports from Shopify and other peers indicated that the holiday shopping season is off to a strong start after a big Black Friday, setting PayPal up to benefit from a recovery in online shopping.
Finally, the stock's valuation is hard to pass up, as it trades at less than 12 based on this year's forward price-to-earnings ratio. At that price, PayPal needs only a modest improvement in growth to deliver results for investors.
2. Ford Motor Company
The past few years have been tough on legacy automakers, which are perceived as falling behind electric-vehicle (EV) makers such as Tesla. Ford Motor Company (NYSE: F) stock, for example, is now down 57% from its peak during the pandemic.
However, the reality is that Ford continues to crank out billions in profits even while introducing new EV models and reinventing itself to stay current. Even after it took a $1.7 billion hit from the United Auto Workers strike, the carmaker still expects an operating profit of $10 billion to $10.5 billion, meaning the stock trades at just 4 times its expected operating profit for the year.
While sales growth in EVs is cooling off across the board, Ford continues to deliver stellar results in its core Ford Blue combustion-vehicle business. Revenue from that division rose 7% year over year to $25.6 billion in the third quarter, and operating profit jumped 17% to $1.7 billion.
The Ford F-150 remains the best-selling vehicle in the U.S., and the company also saw a 40% growth in hybrid vehicles year over year in the third quarter, including a 47% increase in Ford F-150 hybrid volumes.
Ford also offers a dividend that currently yields 5.7%, and the company has room to raise the quarterly payout.
The automaker also said it would postpone $12 billion in spending on EVs because of weak demand. However, that should help improve near-term profitability. If the car market is slower to shift to EVs than expected, that should favor the legacy automakers.
Based on its adjusted earnings, the stock trades at a price-to-earnings ratio of less than 5, which looks like a great price to pay for this solid profit machine.
10 stocks we like better than PayPal
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They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 4, 2023
Jeremy Bowman has positions in PayPal and Shopify. The Motley Fool has positions in and recommends PayPal, Shopify, and Tesla. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Ford Motor Company The past few years have been tough on legacy automakers, which are perceived as falling behind electric-vehicle (EV) makers such as Tesla. However, the reality is that Ford continues to crank out billions in profits even while introducing new EV models and reinventing itself to stay current. Based on its adjusted earnings, the stock trades at a price-to-earnings ratio of less than 5, which looks like a great price to pay for this solid profit machine.
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However, the economic reopening has brought a slowdown in digital spending, which has cooled off growth at digital payments companies like PayPal. Revenue in the third quarter accelerated modestly year over year to 8%, and adjusted earnings per share jumped 20% to $1.30. Even after it took a $1.7 billion hit from the United Auto Workers strike, the carmaker still expects an operating profit of $10 billion to $10.5 billion, meaning the stock trades at just 4 times its expected operating profit for the year.
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The company has also been aggressively buying back stock to take advantage of the discounted stock price, repurchasing $1.4 billion worth of shares in the third quarter and $5.4 billion over the past four quarters, reducing shares outstanding by more than 10%. Even after it took a $1.7 billion hit from the United Auto Workers strike, the carmaker still expects an operating profit of $10 billion to $10.5 billion, meaning the stock trades at just 4 times its expected operating profit for the year. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Jeremy Bowman has positions in PayPal and Shopify.
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Ford Motor Company (NYSE: F) stock, for example, is now down 57% from its peak during the pandemic. Even after it took a $1.7 billion hit from the United Auto Workers strike, the carmaker still expects an operating profit of $10 billion to $10.5 billion, meaning the stock trades at just 4 times its expected operating profit for the year. The automaker also said it would postpone $12 billion in spending on EVs because of weak demand.
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2023-12-07 00:00:00 UTC
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C3.ai Is Falling: Time to Buy This Artificial Intelligence (AI) Growth Stock?
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After the market closed on Wednesday, C3.ai (NYSE: AI) reported results for the second quarter of its current fiscal year, which ended Oct. 31. Despite posting a smaller-than-expected loss in the quarter, sales came in lower than anticipated -- and the stock fell roughly 8% in after-hours trading.
The company posted a non-GAAP (adjusted) loss of $0.13 per share on sales of $73.2 million in fiscal Q2. While the company's bottom line came in significantly better than the per-share loss of $0.18 targeted by the average analyst estimate, sales in the period fell short of Wall Street's target for revenue of $74.3 million.
If you're thinking about investing in C3.ai, take a look at this infographic breaking down the business's second-quarter performance and read on for a verdict on whether the artificial intelligence (AI) stock is a smart buy right now.
Image source: The Motley Fool.
What do C3.ai's Q2 results mean for investors?
While sales were up 17.3% year over year in the company's second quarter, they were up just 1.2% on a sequential quarterly basis. And despite solid annual sales growth in the quarter, C3's gross profit actually slipped in the period.
Due to new deals and product releases that carry a higher cost of revenue and discounted pilot pricing, the company's adjusted gross margin has been falling. The company posted an adjusted gross profit margin of 81% in last year's first quarter, and it recorded a margin of 69% in its two most recently reported quarters.
Management expects the gross margin to remain pressured in the near term, but it looks like sales will continue to climb in the remaining quarters of the company's current fiscal year.
OUTLOOK PERIOD REVENUE FORECAST ADJUSTED OPERATING LOSS FORECAST
Q3 2024 Between $74 million and $78 million Between $40 million and $46 million
Full-year 2024 Between $295 million and $320 million Between $115 million and $135 million
Data source: C3.ai.
At the midpoint of the target range, sales are projected to grow roughly 14% year over year in fiscal Q3. Meanwhile, the midpoint of the company's full-year guidance range calls for revenue growth of roughly 15%.
But investors should be cautious about expecting this level of momentum to continue further out. C3.ai posted relatively weak performance last year, so it's starting from a favorable basis of comparison when it comes to year-over-year growth.
Amid the broader backdrop of surging demand for AI services that's shaped performance for some tech companies this year, C3's sequential quarterly sales growth and guidance looks relatively muted.
While it's possible that the company's sales growth will accelerate in the near term, some metrics suggest that uneven performance may be on the horizon. Take a look at the following chart, which tracks C3.ai's remaining performance obligations (RPO).
Data source: C3.ai. Chart by author.
Remaining performance obligations are services that have been contracted for but have not yet been completed and recorded as revenue. As the chart shows, C3's remaining performance obligations have been on a sustained downward trend. Along with recent sales performance, the RPO trend suggests that the company is not seeing a huge surge in demand for its AI services.
C3.ai stock is still too expensive to be a buy
Despite some volatile trading swings, C3.ai has been one of this year's hottest stocks. While it's certainly possible that the company will continue crushing the market, I think the company's valuation remains unreasonably stretched.
AI looks poised to deliver revolutionary technology shifts and spur incredible performance for top players in the space. But thus far, it's not clear that C3.ai is really scoring big wins in the rapidly unfolding trend. On the other hand, C3 stock's incredible gains this year seem rooted in the general explosion of interest taking place around artificial intelligence.
AI PS Ratio (Forward) data by YCharts
Trading at roughly 11 times this year's expected sales, C3.ai looks too expensive given its recent business performance and near-term growth outlook. Until signs of more meaningful AI wins emerge for the company, I think investors should seek out other plays in the artificial intelligence space.
10 stocks we like better than C3.ai
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and C3.ai 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
Keith Noonan 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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If you're thinking about investing in C3.ai, take a look at this infographic breaking down the business's second-quarter performance and read on for a verdict on whether the artificial intelligence (AI) stock is a smart buy right now. Amid the broader backdrop of surging demand for AI services that's shaped performance for some tech companies this year, C3's sequential quarterly sales growth and guidance looks relatively muted. AI PS Ratio (Forward) data by YCharts Trading at roughly 11 times this year's expected sales, C3.ai looks too expensive given its recent business performance and near-term growth outlook.
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Q3 2024 Between $74 million and $78 million Between $40 million and $46 million Full-year 2024 Between $295 million and $320 million Between $115 million and $135 million Data source: C3.ai. Amid the broader backdrop of surging demand for AI services that's shaped performance for some tech companies this year, C3's sequential quarterly sales growth and guidance looks relatively muted. AI PS Ratio (Forward) data by YCharts Trading at roughly 11 times this year's expected sales, C3.ai looks too expensive given its recent business performance and near-term growth outlook.
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Management expects the gross margin to remain pressured in the near term, but it looks like sales will continue to climb in the remaining quarters of the company's current fiscal year. Q3 2024 Between $74 million and $78 million Between $40 million and $46 million Full-year 2024 Between $295 million and $320 million Between $115 million and $135 million Data source: C3.ai. Amid the broader backdrop of surging demand for AI services that's shaped performance for some tech companies this year, C3's sequential quarterly sales growth and guidance looks relatively muted.
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While sales were up 17.3% year over year in the company's second quarter, they were up just 1.2% on a sequential quarterly basis. Management expects the gross margin to remain pressured in the near term, but it looks like sales will continue to climb in the remaining quarters of the company's current fiscal year. Until signs of more meaningful AI wins emerge for the company, I think investors should seek out other plays in the artificial intelligence space.
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7eebf29d-8983-4c09-959a-ae624ca26c8e
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714151.0
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2023-12-07 00:00:00 UTC
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FedEx Corporation (FDX) is Attracting Investor Attention: Here is What You Should Know
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DCOMP
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https://www.nasdaq.com/articles/fedex-corporation-fdx-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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FedEx (FDX) 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 package delivery company have returned +8.9% over the past month versus the Zacks S&P 500 composite's +4.4% change. The Zacks Transportation - Air Freight and Cargo industry, to which FedEx belongs, has gained 9.6% 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.
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.
FedEx is expected to post earnings of $4.13 per share for the current quarter, representing a year-over-year change of +29.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
For the current fiscal year, the consensus earnings estimate of $18.19 points to a change of +21.6% 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 $22 indicates a change of +20.9% from what FedEx is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
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, FedEx 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.
For FedEx, the consensus sales estimate for the current quarter of $22.33 billion indicates a year-over-year change of -2.1%. For the current and next fiscal years, $89.56 billion and $93.97 billion estimates indicate -0.6% and +4.9% changes, respectively.
Last Reported Results and Surprise History
FedEx reported revenues of $21.68 billion in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $4.55 for the same period compares with $3.44 a year ago.
Compared to the Zacks Consensus Estimate of $21.84 billion, the reported revenues represent a surprise of -0.71%. The EPS surprise was +22.97%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
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.
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.
FedEx 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 FedEx. 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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FedEx Corporation (FDX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. 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 FedEx.
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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. 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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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, FedEx is rated Zacks Rank #3 (Hold). 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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And if earnings estimates go up for a company, the fair value for its stock goes up. EPS of $4.55 for the same period compares with $3.44 a year ago. 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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ee35c753-b143-422b-97dd-de75b85c893a
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714152.0
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2023-12-07 00:00:00 UTC
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4 Shoes & Retail Apparel Stocks to Thrive as Healthy Living Rules
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DCOMP
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https://www.nasdaq.com/articles/4-shoes-retail-apparel-stocks-to-thrive-as-healthy-living-rules
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The Zacks Shoes and Retail Apparel industry continues to witness positive demand trends on increased consumer awareness about leading a healthy lifestyle, which has been aiding the demand for activewear and athletic shoes. New and innovative designs have been the key drivers for the industry participants. Players focused on product innovation, store expansion, digital investments and omni-channel growth are expected to gain. Investments in products and e-commerce portals bode well for players like Rocky Brands RCKY, NIKE Inc. NKE, Adidas AG ADDYY and Skechers SKX.
However, the industry has been dealing with hardships from elevated costs, disrupted supply chains, reduced spending trends on discretionary items and increased marketing investments. These traits have been the key burdens on the participating companies’ profits. Additionally, adverse currency movements threaten industry players due to their worldwide presence.
About the Industry
The Zacks Shoes and Retail Apparel industry comprises companies that design, source and market clothing, footwear and accessories for men, women and children under various brand names. Product offerings of the companies mostly include athletic and casual footwear, fashion apparel and activewear, sports equipment, bags, balls, and other sports and fashion accessories. The companies showcase their products through their branded outlets and websites. Some companies distribute products via other retail stores, such as national chains, online retailers, sporting goods stores, department stores, mass merchandisers, independent retailers and catalogs.
A Look at What's Shaping Shoes and Retail Apparel Industry's Future
Consumer Demand Trends: Players in the industry have been benefiting from strong consumer demand for activewear/athleisure products and footwear, and the trend is expected to continue in 2023. Athletic goods and apparel companies offer products from footwear, sweatshirts, leggings, pants, jackets and tops to yoga wear and running clothes for men and women. The increasing focus on fashion is boosting the demand for innovative clothes and footwear in the United States. Industry participants have been focused on product innovations, active promotions, store expansion and enhancing e-commerce capabilities to gain market share. Favorable health and wellness trends have been the key to inspiring footwear manufacturers to expand their product portfolios. The companies continue to innovate styles, materials and colors, and incorporate functional designs to grab a large share of the fast-growing market. Multi-functional shoes, which cater to casual and formal looks, have been gaining popularity.
E-Commerce Investments: E-commerce has been playing a crucial role in the athleisure market’s growth. The companies in the segment are looking to build a customer base through websites, social media and other digital channels. As consumers continue to shop from home, growth of athletic-inspired apparel and digital sales are likely to continue. Companies focused on expanding their athletic-based apparel lines and building on e-commerce capabilities are expected to witness growth in the long run. Efforts to accelerate deliveries through investments in supply chains and order fulfillment avenues are likely to provide an edge to industry players. Simultaneously, companies are investing in renovations and improved checkouts, as well as mobile point-of-sale capabilities, to make stores attractive. Efforts to enhance experiences through multiple channels are likely to contribute significantly to improving traffic and transactions in stores and online.
Cost Headwinds: Companies in the industry are witnessing elevated costs due to factors like commodity cost inflation and reinvestments. Supply-chain constraints and elevated logistic costs have been acting as deterrents. Many companies expect increased logistic costs to hurt margins in the near term. Elevated marketing expenses, higher operating overhead and demand-creating expenses, and increased investments to enhance store and digital operations have been raising SG&A costs. Also, industry participants are witnessing rising costs to support brand campaigns and digital investments. The exit from the Russia business due to the Ukraine-Russia conflict is likely to be the key concern for some players. A tough and competitive labor market is another concern. These factors pose a threat to industry players’ margins.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Shoes and Retail Apparel Industry is a 12-stock group within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #38, which places it in the top 15% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects for the near term. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock-market performance and the valuation picture.
Industry Vs. Sector
The Zacks Shoes and Retail Apparel industry has underperformed the sector and the S&P 500 in the past year.
Stocks in the industry have collectively gained 0.1%. The Zacks Consumer Discretionary sector and the Zacks S&P 500 composite have rallied 6.7% and 15.6%, respectively.
One-Year Price Performance
Shoes and Retail Apparel Industry's Valuation
On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing Consumer Discretionary stocks, the industry is currently trading at 25.96X compared with the S&P 500’s 19.17X and the sector’s 16.92X.
Over the last five years, the industry has traded as high as 37.75X and as low as 20.15X, with a median of 26.76X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
4 Shoes & Retail Apparel Stocks to Add
Rocky Brands: The company is a leading footwear and accessories company that designs, manufactures and markets premium quality footwear and apparel under a portfolio of well-recognized brand names. The company’s notable brand portfolio includes Rocky, Georgia Boot, Durango, Lehigh, The Original Muck Boot Company, XTRATUF, Servus, NEOS and Ranger. RCKY is benefiting from the flexibility and ability to innovate quickly, given its small business size. The company has been witnessing robust demand for its portfolio of leading brands, which has been aiding its performance.
RCKY is making strong progress on enhancing its distribution and fulfillment capabilities, along with lower expense levels, including reduced freight rates. This is likely to position the company well in the near term. The Zacks Consensus Estimate for the company’s 2023 sales and earnings indicates declines of 24.5% and 46.8%, respectively, from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for its 2023 earnings has been unchanged in the past 30 days. It has a trailing four-quarter earnings surprise of 17.2%, on average. This Zacks Rank #1 (Strong Buy) stock has rallied 24.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: RCKY
NIKE: The global leader in athletic footwear, apparel, equipment and sports-related accessories is poised to gain from its Consumer Direct Acceleration strategy, along with strong demand, compelling products, and robust performance in its digital and DTC businesses. NKE has been benefiting from its efficient digital ecosystem, which comprises its website, as well as commercial and activity apps. With consumers’ increasing digital focus, NIKE is on track with its digital revenue growth target for fiscal 2025. NKE expects revenue growth in fiscal 2025 to be led by NIKE Direct, which is anticipated to represent 60% of the total revenues on strong digital growth. The company expects NIKE-owned and partnered Digital to reach a 50% business mix in fiscal 2025, with NIKE-owned Digital accounting for 40% of the business.
As part of the Consumer Direct Acceleration, the company’s immediate priorities include improving personalization and creating a consistent end-to-end technology platform. The Zacks Consensus Estimate for NKE’s fiscal 2024 sales and earnings indicates growth of 3.7% and 15.8%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for NKE’s fiscal 2024 earnings has been unchanged in the past 30 days. NIKE delivered an earnings surprise of 27.1%, on average, in the trailing four quarters. This Zacks Rank #2 (Buy) stock has risen 4.3% in the past year.
Price and Consensus: NKE
Adidas: The leading manufacturer and seller of athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia Pacific and Latin America is poised to gain from strong demand, compelling products and robust performance in its online business. Adidas has been benefiting from improved sell-through of all Adidas products in the market. Moreover, the company has been witnessing improved margins, driven by the recently implemented price increases and an improved channel mix.
The Zacks Consensus Estimate for ADDYY’s 2023 top and bottom lines indicates declines of 3.2% and 124.2%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for ADDYY’s 2023 loss has widened by 3 cents in the past 30 days. Adidas delivered an earnings surprise of 71.9%, on average, in the trailing four quarters. This Zacks Rank #2 stock has rallied 70.5% in the past year.
Price and Consensus: ADDYY
Skechers: This Manhattan Beach, CA-based company designs, develops, markets and distributes footwear for men, women and children in the United States and overseas under the SKECHERS name, as well as several unique brand names. The company’s emphasis on new product lines, store remodeling projects, cost-containment efforts, inventory management and global distribution platform bodes well. SKX is focused on executing its long-term growth strategy, with a diverse assortment of innovative and comfortable products. This is expected to drive its top line in the near and long terms.
Skechers is making strategic investments to improve infrastructure worldwide, primarily e-commerce platforms and distribution centers. The company’s international business is a significant sales growth driver. SKX has a trailing four-quarter earnings surprise of 50.3%, on average. The Zacks Consensus Estimate for the company’s 2023 sales and earnings indicates growth of 8.2% and 44.5%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for SKX’s 2023 EPS has moved up by a penny in the past 30 days. Shares of the Zacks Rank #2 footwear company have gained 36.8% in the past year.
Price and Consensus: SKX
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Rocky Brands, Inc. (RCKY) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Adidas AG (ADDYY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investments in products and e-commerce portals bode well for players like Rocky Brands RCKY, NIKE Inc. NKE, Adidas AG ADDYY and Skechers SKX. Athletic goods and apparel companies offer products from footwear, sweatshirts, leggings, pants, jackets and tops to yoga wear and running clothes for men and women. NIKE: The global leader in athletic footwear, apparel, equipment and sports-related accessories is poised to gain from its Consumer Direct Acceleration strategy, along with strong demand, compelling products, and robust performance in its digital and DTC businesses.
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Price-to-Earnings Ratio (Past 5 Years) 4 Shoes & Retail Apparel Stocks to Add Rocky Brands: The company is a leading footwear and accessories company that designs, manufactures and markets premium quality footwear and apparel under a portfolio of well-recognized brand names. NIKE: The global leader in athletic footwear, apparel, equipment and sports-related accessories is poised to gain from its Consumer Direct Acceleration strategy, along with strong demand, compelling products, and robust performance in its digital and DTC businesses. Click to get this free report Rocky Brands, Inc. (RCKY) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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About the Industry The Zacks Shoes and Retail Apparel industry comprises companies that design, source and market clothing, footwear and accessories for men, women and children under various brand names. Zacks Industry Rank Indicates Bright Prospects The Zacks Shoes and Retail Apparel Industry is a 12-stock group within the broader Zacks Consumer Discretionary sector. Price-to-Earnings Ratio (Past 5 Years) 4 Shoes & Retail Apparel Stocks to Add Rocky Brands: The company is a leading footwear and accessories company that designs, manufactures and markets premium quality footwear and apparel under a portfolio of well-recognized brand names.
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Industry participants have been focused on product innovations, active promotions, store expansion and enhancing e-commerce capabilities to gain market share. The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects for the near term. Price-to-Earnings Ratio (Past 5 Years) 4 Shoes & Retail Apparel Stocks to Add Rocky Brands: The company is a leading footwear and accessories company that designs, manufactures and markets premium quality footwear and apparel under a portfolio of well-recognized brand names.
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1ca84143-5388-4ad7-8368-944343598766
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714153.0
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2023-12-07 00:00:00 UTC
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Do Options Traders Know Something About ACNB Corporation (ACNB) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-acnb-corporation-acnb-stock-we-dont
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nan
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nan
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Investors in ACNB Corporation ACNB need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $30.00 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 ACNB Corporation shares, but what is the fundamental picture for the company? Currently, ACNB Corporation is a Zacks Rank #2 (Buy) in the Banks - Southwest industry that ranks in the Bottom 34% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased the earnings estimates for the current quarter, while one has revised the estimates downwards. The net effect has taken our Zacks Consensus Estimate for the current quarter from 97 cents per share to 96 cents in that period.
Given the way analysts feel ACNB Corporation 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 >>
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ACNB Corporation (ACNB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. Clearly, options traders are pricing in a big move for ACNB Corporation shares, but what is the fundamental picture for the company? Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report ACNB Corporation (ACNB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors in ACNB Corporation ACNB 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. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Given the way analysts feel ACNB Corporation right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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ed54e0a1-5206-446c-b246-dfde2684e0e3
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714154.0
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2023-12-07 00:00:00 UTC
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Recent Price Trend in Applied Industrial Technologies (AIT) is Your Friend, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/recent-price-trend-in-applied-industrial-technologies-ait-is-your-friend-heres-why-0
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
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.
There are several stocks that passed through the screen and Applied Industrial Technologies (AIT) 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. AIT is quite a good fit in this regard, gaining 4.9% 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 3.1% over the past four weeks ensures that the trend is still in place for the stock of this industrial products company.
Moreover, AIT is currently trading at 90.9% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in AIT may not reverse anytime soon.
In addition to AIT, 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.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. 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. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
|
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 Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. There are several stocks that passed through the screen and Applied Industrial Technologies (AIT) is one of them. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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ebcda8c6-737d-4e5f-93d2-a7d427fc5a6c
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714155.0
|
2023-12-07 00:00:00 UTC
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Recent Price Trend in RCM Technologies, Inc. (RCMT) is Your Friend, Here's Why
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DCOMP
|
https://www.nasdaq.com/articles/recent-price-trend-in-rcm-technologies-inc.-rcmt-is-your-friend-heres-why
|
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.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and RCM Technologies, Inc. (RCMT) 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. RCMT is quite a good fit in this regard, gaining 36.8% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 38.4% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, RCMT is currently trading at 95.7% 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 RCMT may not reverse anytime soon.
In addition to RCMT, 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.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. 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. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
|
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 RCM Technologies, Inc. (RCMT) : 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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There are several stocks that passed through the screen and RCM Technologies, Inc. (RCMT) is one of them. So, the price trend in RCMT may not reverse anytime soon. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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e620e919-f030-492a-9cbf-0532cc9e3ded
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714156.0
|
2023-12-07 00:00:00 UTC
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Recent Price Trend in HNI (HNI) is Your Friend, Here's Why
|
DCOMP
|
https://www.nasdaq.com/articles/recent-price-trend-in-hni-hni-is-your-friend-heres-why
|
nan
|
nan
|
When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
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.
HNI (HNI) 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. HNI is quite a good fit in this regard, gaining 26.4% 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 5.4% over the past four weeks ensures that the trend is still in place for the stock of this maker of office furniture and fireplaces.
Moreover, HNI is currently trading at 99% 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 HNI may not reverse anytime soon.
In addition to HNI, 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.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HNI Corporation (HNI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment 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. 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 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 HNI Corporation (HNI) : 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 HNI may not reverse anytime soon. In addition to HNI, there are several other stocks that currently pass through our "Recent Price Strength" screen. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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6629ff6a-9186-4677-89e3-baf0679e7ed9
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714157.0
|
2023-12-07 00:00:00 UTC
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Here's Why Momentum in Ponce Financial (PDLB) Should Keep going
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DCOMP
|
https://www.nasdaq.com/articles/heres-why-momentum-in-ponce-financial-pdlb-should-keep-going
|
nan
|
nan
|
Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and Ponce Financial (PDLB) 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. PDLB is quite a good fit in this regard, gaining 20.2% 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 20.4% over the past four weeks ensures that the trend is still in place for the stock of this holding company of Ponce Bank.
Moreover, PDLB is currently trading at 81.6% 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 #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 PDLB may not reverse anytime soon.
In addition to PDLB, 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.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ponce Financial Group, Inc. (PDLB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. A price increase of 20.4% over the past four weeks ensures that the trend is still in place for the stock of this holding company of Ponce Bank.
|
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 Ponce Financial Group, Inc. (PDLB) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
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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Here are the key reasons why this stock is a solid choice for "trend" investing. So, the price trend in PDLB may not reverse anytime soon. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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9482906a-d116-4704-9c22-a7c38dc24a29
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714158.0
|
2023-12-07 00:00:00 UTC
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American Public Education (APEI) Shows Fast-paced Momentum But Is Still a Bargain Stock
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DCOMP
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https://www.nasdaq.com/articles/american-public-education-apei-shows-fast-paced-momentum-but-is-still-a-bargain-stock
|
nan
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nan
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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.
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.
American Public Education (APEI) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 35.6%, the stock of this for-profit education company is certainly well-positioned 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. APEI meets this criterion too, as the stock gained 48.3% over the past 12 weeks.
Moreover, the momentum for APEI is fast paced, as the stock currently has a beta of 1.2. This indicates that the stock moves 20% higher than the market in either direction.
Given this price performance, it is no surprise that APEI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped APEI earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, APEI 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. APEI is currently trading at 0.22 times its sales. In other words, investors need to pay only 22 cents for each dollar of sales.
So, APEI appears to have plenty of room to run, and that too at a fast pace.
In addition to APEI, 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.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Public Education, Inc. (APEI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
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, APEI is trading at a reasonable valuation. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
|
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 APEI earn a Zacks Rank #2 (Buy). Click to get this free report American Public Education, Inc. (APEI) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
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. While there are numerous reasons why this stock is a great choice, here are the most vital ones: A dash of recent price momentum reflects growing interest of investors in a stock. Given this price performance, it is no surprise that APEI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
|
Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. 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 APEI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
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8f8c214a-21a1-448b-891a-3c22cf5a6ec9
|
714159.0
|
2023-12-07 00:00:00 UTC
|
Forget Profit, Bet on 4 Stocks With Increasing Cash Flows
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DCOMP
|
https://www.nasdaq.com/articles/forget-profit-bet-on-4-stocks-with-increasing-cash-flows-3
|
nan
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nan
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Achieving profit is no doubt a company’s goal, but having a healthy cash flow is imperative to its existence, development and success. And why not? Even a company generating profits succumbs to failure and faces bankruptcy while meeting its obligations if it has a dearth of cash flow. However, one can efficiently tide over any market mayhem if it has the cash to shield it.
In this regard, stocks like Griffon Corporation GFF, Arcos Dorados Holdings Inc. ARCO, HNI Corporation HNI and H&E Equipment Services, Inc. HEES are worth buying.
A healthy cash position indicates that profits are being efficiently channeled to the company’s reserves. This offers flexibility to make decisions, chase potential investments and fuel its growth engine. It is indeed an accurate indicator of a company’s financial health and a measure of resiliency.
Analyzing a company’s cash-generating efficiency has indeed become more relevant amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns.
To figure out this efficiency, one needs to consider a company’s net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.
If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
However, having a positive cash flow merely does not secure a company’s future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management’s efficiency in regulating its cash movements and less dependency on outside financing for running its business.
Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.
Screening Parameters:
To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.
In addition to this we chose:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.
Here are our four picks out of the 20 stocks that qualified the screening:
Griffon Corp, a diversified management and holding company, operates through wholly-owned subsidiaries. It provides consumer and professional, as well as home and building products.
The Zacks Consensus Estimate for Griffon Corp’s fiscal 2024 earnings per share has been revised 2.9% upward to $4.21 in the past month. GFF has a VGM Score of A.
Arcos Dorados operates as a franchisee of McDonald's, with its operations divided in Brazil, the North Latin America division, South Latin America and the Caribbean division. It also runs quick-service restaurants in Latin America and the Caribbean.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 earnings per share has been revised 2.5% upward to 82 cents in the past week. ARCO has a VGM Score of A.
HNI Corp provides products and solutions for home and workplace environments. HNI is a leading global provider and designer of office furniture and the leading manufacturer and marketer of hearth products.
The Zacks Consensus Estimate for HNI Corp’s 2023 earnings per share has been revised 11.1% upward to $2.40 in the past two months. HNI has a VGM Score of A.
H&E Equipment Services is one of the largest integrated equipment services companies in the United States. The company is focused on heavy construction and industrial equipment, as well as rents, sells, and provides parts and service support to the four core categories of specialized equipment. These are hi-lift or aerial platform equipment, cranes, earthmoving equipment and industrial lift trucks.
The Zacks Consensus Estimate for H&E Equipment Services’ current-year earnings has been revised upward by 8.2% in the past two months to $4.50 per share. HEES currently has a VGM Score of A.
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.
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.
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H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
HNI Corporation (HNI) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Analyzing a company’s cash-generating efficiency has indeed become more relevant amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns. If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
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In this regard, stocks like Griffon Corporation GFF, Arcos Dorados Holdings Inc. ARCO, HNI Corporation HNI and H&E Equipment Services, Inc. HEES are worth buying. The Zacks Consensus Estimate for Arcos Dorados’ 2023 earnings per share has been revised 2.5% upward to 82 cents in the past week. Click to get this free report H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report HNI Corporation (HNI) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In this regard, stocks like Griffon Corporation GFF, Arcos Dorados Holdings Inc. ARCO, HNI Corporation HNI and H&E Equipment Services, Inc. HEES are worth buying. Screening Parameters: To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. Click to get this free report H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report HNI Corporation (HNI) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In this regard, stocks like Griffon Corporation GFF, Arcos Dorados Holdings Inc. ARCO, HNI Corporation HNI and H&E Equipment Services, Inc. HEES are worth buying. However, having a positive cash flow merely does not secure a company’s future growth. Screening Parameters: To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share.
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e15d39ca-9126-4eba-86e7-ccee1a18d07b
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714160.0
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2023-12-07 00:00:00 UTC
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The 1 Web3 Stock to Buy in December
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DCOMP
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https://www.nasdaq.com/articles/the-1-web3-stock-to-buy-in-december
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nan
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A lot of companies wanted to carry the Web3 tag while the crypto market was hot, but now companies are running toward the new hottest trend on the market -- artificial intelligence.
While the drop in cryptocurrency values may have been bad for the industry's hype cycle, many companies in cryptocurrency and Web3 continue to build. Payment networks are getting faster and cheaper and on-chain asset ownership is being abstracted away in websites and apps, making Web3 easier to use. For long-term investors, this presents opportunities in the one publicly traded company that's focused on Web3 -- Coinbase (NASDAQ: COIN).
Coinbase's bounce back
The crypto business has been down big since the peak in late 2021, and Coinbase has had to make several changes. Management was quick to cut costs and has focused on subscriptions and services, which has helped the company return to being free cash flow positive.
COIN Free Cash Flow data by YCharts
The balance sheet is also better than you might think for a company in a down cycle. There's $5.1 billion in cash and equivalents on the balance sheet and just $3.1 billion in debt, which management is starting to buy back at a discount. More importantly, Coinbase's products are starting to get wider usage.
Subscriptions and stablecoins drive growth
As trading revenue has dropped, Coinbase has generated more revenue from non-trading products. The company's stake in the USDC token, which is now run by Circle, generated $172.4 million in revenue during the third quarter of 2023, up from $76.9 million a year ago, and interest on the company's cash generated $39.5 million.
Blockchain rewards increased from $62.8 million to $74.5 million, and that's before the Base blockchain Coinbase launched generated significant revenue. The company's focus on stablecoins and infrastructure for developers is paying off with growing sustainable sources of revenue.
Web3 and crypto are recovering
Coinbase has adjusted to the new realties of crypto and Web3, and at the same time the market is recovering. Bitcoin and Ethereum are trading higher and volume has increased sharply at Coinbase, who is no longer facing competition from FTX and has seen Binance weakened after a $4 billion fine from the Department of Justice.
Trading volume on Coinbase is $3.4 billion in the last 24 hours, and was regularly around $1 billion as recently as last summer. This should drive higher trading revenue in the fourth quarter -- and if momentum continues in 2024, that will help financials.
The future of Web3 and crypto
Most investors associate Web3 and cryptocurrencies with the boom and bust cycle of 2021 and 2022, but there's a lot more going on in the industry. Major companies are testing using stablecoins, and uses of the blockchain for financial transfers and loyalty programs are being tested as well.
Smart contracts have always been an ideal use case, but it's been too costly to use smart contracts on most blockchains. Coinbase's blockchain Base helps answer some of those cost questions, and is gaining widespread adoption as a result.
It's still early in the Web3 industry and there are ups and downs ahead for companies like Coinbase, but I think this is still the best way to invest in the future of the blockchain and Web3.
10 stocks we like better than Coinbase Global
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*Stock Advisor returns as of December 4, 2023
Travis Hoium has positions in Coinbase Global and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Payment networks are getting faster and cheaper and on-chain asset ownership is being abstracted away in websites and apps, making Web3 easier to use. Management was quick to cut costs and has focused on subscriptions and services, which has helped the company return to being free cash flow positive. Bitcoin and Ethereum are trading higher and volume has increased sharply at Coinbase, who is no longer facing competition from FTX and has seen Binance weakened after a $4 billion fine from the Department of Justice.
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For long-term investors, this presents opportunities in the one publicly traded company that's focused on Web3 -- Coinbase (NASDAQ: COIN). Management was quick to cut costs and has focused on subscriptions and services, which has helped the company return to being free cash flow positive. Subscriptions and stablecoins drive growth As trading revenue has dropped, Coinbase has generated more revenue from non-trading products.
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The company's stake in the USDC token, which is now run by Circle, generated $172.4 million in revenue during the third quarter of 2023, up from $76.9 million a year ago, and interest on the company's cash generated $39.5 million. Blockchain rewards increased from $62.8 million to $74.5 million, and that's before the Base blockchain Coinbase launched generated significant revenue. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Travis Hoium has positions in Coinbase Global and Ethereum.
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There's $5.1 billion in cash and equivalents on the balance sheet and just $3.1 billion in debt, which management is starting to buy back at a discount. Subscriptions and stablecoins drive growth As trading revenue has dropped, Coinbase has generated more revenue from non-trading products. The future of Web3 and crypto Most investors associate Web3 and cryptocurrencies with the boom and bust cycle of 2021 and 2022, but there's a lot more going on in the industry.
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c8371591-3594-4118-b348-114beea778cb
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714161.0
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2023-12-07 00:00:00 UTC
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These 2 Stocks Could Be About to Soar: Are They Buys?
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DCOMP
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https://www.nasdaq.com/articles/these-2-stocks-could-be-about-to-soar%3A-are-they-buys
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Shares of relatively small biotech companies often soar when they get positive news from regulators, and that's exactly what Madrigal Pharmaceuticals (NASDAQ: MDGL) and Bluebird Bio (NASDAQ: BLUE) are awaiting. Both companies expect to land major approvals in the coming months, which could jolt their share prices.
However, while short-term pops are great, investors will want to know whether these biotechs can perform well over the long run. So regardless of their near-term potential, are Madrigal Pharmaceuticals and Bluebird Bio likely to deliver outsized returns over the next five years and beyond?
1. Madrigal Pharmaceuticals
Madrigal Pharmaceuticals is a clinical-stage biotech that may have made a significant breakthrough. It could beat much larger peers in the industry and become the first to launch an approved therapy for non-alcoholic steatohepatitis (NASH). This is a condition caused by the abnormal accumulation of fat in patients' livers, which leads to scarring and other problems.
Obesity is one of the main risk factors. Madrigal submitted an application for resmetirom, its potential NASH therapy, to the Food and Drug Administration (FDA) for review in July. The regulator should decide whether to approve the medicine by March 14. It goes without saying that for a clinical-stage company, finally bringing a product to market is a bit of a game-changer. But unlike many small biotechs, Madrigal did not target a rare disease with a tiny patient population.
The NASH market's potential is massive. While projections vary, analysts at Vantage Market Research forecast that the NASH treatment space will be worth $108.4 billion by 2030. Sales of resmetirom could grow rapidly if it earns FDA approval next year, as expected. It delivered solid results in mid- and late-stage clinical trials.
However, that alone doesn't make Madrigal Pharmaceuticals shares a slam dunk. First, there is always the risk that some unforeseen regulatory setback (including a manufacturing or labeling problem) will delay the approval of resmetirom. If such an event occurs, Madrigal's shares will likely plunge.
Second, even if that doesn't happen, several other companies should bring NASH treatments to market not too long after Madrigal does. Larger drugmakers benefit from having more funds, established collaborations with other healthcare industry players, and large numbers of sales representatives. These are all advantages when it comes time to launch a product, giving them faster ramp-ups and broader reaches than smaller players like Madrigal.
How does Madrigal's financial situation look? Not too bad. It ended the third quarter with $232.4 million in cash and equivalents on the books, compared to $358.8 million as of the end of 2022. Since then, however, it has conducted a secondary stock offering that brought in net proceeds of $472 million.
Still, Madrigal's market capitalization of about $4 billion looks a bit high for a clinical-stage biotech, even one this promising. It might be worth considering nibbling on the stock, but investors should be advised that even with a major catalyst on the way, the road ahead could be a bumpy one for shareholders in this biotech.
2. Bluebird Bio
Bluebird Bio is a small-cap gene-editing specialist with two products on the market. The first is Zynteglo, which treats the rare blood disease beta-thalassemia. The second is Skysona, a therapy for cerebral adrenoleukodystrophy, a rare neurodegenerative disease. Bluebird Bio could be about to expand its lineup. The FDA is currently considering lovo-cel for approval.
Lovo-cel could earn the green light as a treatment for patients with sickle cell disease, another rare blood disorder, as early as this month. That approval would mean a lot for Bluebird Bio. While Zynteglo and Skysona have a combined target market of at most 1,540 patients in the U.S., lovo-cel's would be more than 10 times that at around 20,000.
Further, Bluebird Bio has set the list price for Zynteglo at $2.8 million per treatment course, and priced Skysona at $3 million. We don't know yet how much it will charge for lovo-cel (assuming it's approved), but one thing is for sure: It will be well above $1 million for the one-time therapy. In other words, the market opportunity for Bluebird Bio could be massive, so its shares may jump following the approval of the gene-editing therapy. But does that make Bluebird Bio a buy?
Consider a few things. The company will almost certainly have to share this market from the start with exa-cel, a competing gene-editing treatment for sickle cell disease (which also targets beta-thalassemia). Exa-cel was developed by the team of Vertex Pharmaceuticals and CRISPR Therapeutics. It has yet to earn the green light in the U.S., but it recently won approval in the U.K. as Casgevy.
It's difficult to know how this battle will shape up, and it's especially challenging for Bluebird Bio, a small-cap biotech that is consistently unprofitable. The company could end up delivering above-average returns if it can capture a decent share of the sickle cell disease market, but if it can't, Bluebird Bio's shares won't likely be worth much in five years. Interested investors should remember that before initiating a (hopefully small) position in this biotech stock.
10 stocks we like better than Madrigal Pharmaceuticals
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Madrigal Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends Bluebird Bio. 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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Madrigal submitted an application for resmetirom, its potential NASH therapy, to the Food and Drug Administration (FDA) for review in July. These are all advantages when it comes time to launch a product, giving them faster ramp-ups and broader reaches than smaller players like Madrigal. Lovo-cel could earn the green light as a treatment for patients with sickle cell disease, another rare blood disorder, as early as this month.
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However, that alone doesn't make Madrigal Pharmaceuticals shares a slam dunk. Lovo-cel could earn the green light as a treatment for patients with sickle cell disease, another rare blood disorder, as early as this month. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals.
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Shares of relatively small biotech companies often soar when they get positive news from regulators, and that's exactly what Madrigal Pharmaceuticals (NASDAQ: MDGL) and Bluebird Bio (NASDAQ: BLUE) are awaiting. Bluebird Bio Bluebird Bio is a small-cap gene-editing specialist with two products on the market. The company could end up delivering above-average returns if it can capture a decent share of the sickle cell disease market, but if it can't, Bluebird Bio's shares won't likely be worth much in five years.
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Shares of relatively small biotech companies often soar when they get positive news from regulators, and that's exactly what Madrigal Pharmaceuticals (NASDAQ: MDGL) and Bluebird Bio (NASDAQ: BLUE) are awaiting. So regardless of their near-term potential, are Madrigal Pharmaceuticals and Bluebird Bio likely to deliver outsized returns over the next five years and beyond? Madrigal Pharmaceuticals Madrigal Pharmaceuticals is a clinical-stage biotech that may have made a significant breakthrough.
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02e0107f-9489-4572-9f6d-fc38f1858353
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714162.0
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2023-12-07 00:00:00 UTC
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Oracle (ORCL) Opens Colombia's First Hyperscale Cloud Region
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DCOMP
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https://www.nasdaq.com/articles/oracle-orcl-opens-colombias-first-hyperscale-cloud-region
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nan
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Oracle ORCL is establishing a cloud region in Colombia, reflecting its commitment to the country's technological advancement. The company is aimed at accelerating the adoption of cloud solutions, democratizing access to technology and supporting organizations in modernizing and growing in a competitive business environment.
The new cloud region in Bogotá is part of Oracle's distributed cloud strategy. It marks Oracle's 47th public cloud region and offers more than 100 Oracle Cloud Infrastructure (“OCI”) services and cloud applications, including Autonomous Database, MySQL HeatWave Database Service, Oracle Container Engine for Kubernetes, Oracle Cloud VMware Solution and AI infrastructure.
The partnership between Oracle and Claro, co-locating the cloud region in Claro's data center in Bogotá, is seen as a significant milestone in Colombia's technological evolution. The new region is expected to accelerate the digital transformation of businesses, including small and medium-sized enterprises, which make up 90 percent of businesses in Colombia.
The establishment of the public cloud region is viewed as a positive development for Colombia's economy. The Colombian government acknowledges the impact of public cloud infrastructure on the country's economy and is designing plans to leverage cloud capabilities for data and analytics and train specialized digital talent.
Claro's data center is certified with ICREA 5. The partnership with Oracle aims to provide organizations in Colombia and neighboring countries, such as Peru, Ecuador and Panama, with access to innovative cloud services with low latency and high availability.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
OCI Ecosystem & Connectivity to Aid the Top Line
Oracle is expected to benefit from rising worldwide cloud infrastructure service spending, which gained 16% sequentially to $73.5 billion in the third quarter of 2023. Shares of Oracle have rallied 37.1% year to date compared with the Zacks Computer and Technology sector’s increase of 44.6%.
In the third quarter of 2023, the top three vendors, Amazon’s AMZN division, Amazon Web Services (“AWS"), Microsoft’s MSFT Azure and Alphabet’s GOOGL Google Cloud, jointly grew by 20%, slightly outpacing the overall market and accounting for 65% of the total spending.
AWS continued to dominate the cloud infrastructure service market in the third quarter of 2023, with a stable market share of 31%. The year-over-year growth of 12% was in line with the previous quarter.
Meanwhile, Microsoft’s Azure held the second place in the cloud infrastructure service market in the third quarter of 2023 with a 25% market share. It saw an uptick in its growth rate, which was up 29% compared with last year’s third quarter. Google Cloud reached a market share of 10% in the third quarter of 2023 after growing 24% year over year, securing third place in the cloud infrastructure service market.
OCI aims to provide a comprehensive and sustainable cloud solution, leveraging a global ecosystem of partners, emphasizing renewable energy, showcasing successful customer stories and offering a distributed cloud model for enhanced control and flexibility. OCI has a vast network of more than 90 global and regional FastConnect partners. These partners provide dedicated connectivity to Oracle Cloud Regions and OCI services.
FastConnect is positioned as an easy, flexible and cost-effective solution for creating private network connections with benefits such as higher bandwidth, lower latency and consistent performance. Notable FastConnect partners for the Oracle Cloud Bogotá Region include Cirion, Claro, Equinix and Ufinet.
Oracle is also focused on sustainable operations, which emphasizes its commitment to sustainability by pledging to match all worldwide Oracle Cloud Regions with 100% renewable energy by 2025. Several Oracle Cloud Regions already operate on 100% renewable energy. The move toward renewable energy is aimed at allowing organizations to run computing services more sustainably and reduce their carbon footprint.
Oracle and its asset recovery partners highlight their contribution to sustainability by recycling 99.7% of retired hardware collected in the fiscal year 2023.
Banco Falabella, a banking institution serving millions of customers across Latin America, is mentioned as an example of a successful customer leveraging Oracle Cloud services. The bank is using Oracle Cloud Santiago Region and plans to use the Oracle Cloud Bogotá Region to modernize its banking core and implement a digital strategy.
This Zacks Rank #3 (Hold) company’s cloud regions are credited with reducing critical process times, enhancing stability, technological robustness, resilience and scalability and providing competitive advantages. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle's distributed cloud is highlighted as offering customers the benefits of the cloud while providing greater control over operations, data residency and proximity. Low latency is emphasized, even for operations spanning multiple clouds. Oracle manages a total of 66 cloud regions across 26 countries, encompassing both public and dedicated regions.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 partnership with Oracle aims to provide organizations in Colombia and neighboring countries, such as Peru, Ecuador and Panama, with access to innovative cloud services with low latency and high availability. FastConnect is positioned as an easy, flexible and cost-effective solution for creating private network connections with benefits such as higher bandwidth, lower latency and consistent performance. This Zacks Rank #3 (Hold) company’s cloud regions are credited with reducing critical process times, enhancing stability, technological robustness, resilience and scalability and providing competitive advantages.
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Oracle Corporation Price and Consensus Oracle Corporation price-consensus-chart | Oracle Corporation Quote OCI Ecosystem & Connectivity to Aid the Top Line Oracle is expected to benefit from rising worldwide cloud infrastructure service spending, which gained 16% sequentially to $73.5 billion in the third quarter of 2023. OCI aims to provide a comprehensive and sustainable cloud solution, leveraging a global ecosystem of partners, emphasizing renewable energy, showcasing successful customer stories and offering a distributed cloud model for enhanced control and flexibility. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It marks Oracle's 47th public cloud region and offers more than 100 Oracle Cloud Infrastructure (“OCI”) services and cloud applications, including Autonomous Database, MySQL HeatWave Database Service, Oracle Container Engine for Kubernetes, Oracle Cloud VMware Solution and AI infrastructure. Oracle Corporation Price and Consensus Oracle Corporation price-consensus-chart | Oracle Corporation Quote OCI Ecosystem & Connectivity to Aid the Top Line Oracle is expected to benefit from rising worldwide cloud infrastructure service spending, which gained 16% sequentially to $73.5 billion in the third quarter of 2023. The bank is using Oracle Cloud Santiago Region and plans to use the Oracle Cloud Bogotá Region to modernize its banking core and implement a digital strategy.
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The partnership with Oracle aims to provide organizations in Colombia and neighboring countries, such as Peru, Ecuador and Panama, with access to innovative cloud services with low latency and high availability. Google Cloud reached a market share of 10% in the third quarter of 2023 after growing 24% year over year, securing third place in the cloud infrastructure service market. Oracle manages a total of 66 cloud regions across 26 countries, encompassing both public and dedicated regions.
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be54a595-090d-4a16-b6b5-50b26542c4cc
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714163.0
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2023-12-07 00:00:00 UTC
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DraftKings (DKNG) Debuts Pick6, A Peer-To-Peer Fantasy Game
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DCOMP
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https://www.nasdaq.com/articles/draftkings-dkng-debuts-pick6-a-peer-to-peer-fantasy-game
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nan
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DraftKings DKNG has introduced DraftKings Pick6, a new fantasy sports variant that operates on a peer-to-peer model, focusing on a straightforward "more or less" mechanic for individual player statistics.
After the initial launch in six states, including Maryland, Minnesota, Oklahoma, South Carolina, Tennessee and Wisconsin on December 6th, the company plans further rollouts. Pick6 will kick off with player picks for NFL and NBA contests.
DraftKings' fantasy variant, Pick6, maintains the company's tradition of peer-to-peer competition among customers, ensuring a chance at guaranteed prizes. The concept is straightforward, allowing users to construct a lineup featuring two to six players from multiple teams. Users can then decide the level of each athlete's statistic. This simplicity is central to the product's appeal.
Pick6's core gameplay is complemented by several additional features. A notable addition is the "My Picks" functionality, which provides users with a dynamic tool to monitor their picks throughout the process, whether they are submitted, live or finalized. The product interface also includes options for lineup edits, adding funds and real-time tracking of player performance.
These initiatives are expected to boost the company’s top-line growth in the upcoming quarters.
The Zacks Consensus Estimate for DraftKings’ 2023 revenues is pegged at $3.7 billion, indicating year-over-year growth of 65.29%. The consensus estimate is pegged at a loss of $1.5 per share, indicating a year-over-year rise of 52.53%.
DraftKings Inc. Price and Consensus
DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote
DraftKings Faces Tough Competition in The Online Sports Betting Market
According to a Statista report, The Online Sports Betting market in the United States is anticipated to witness an annual growth rate (CAGR 2023-2028) of 15.63%, which would result in a market volume of US$15.75bn by 2028. Furthermore, it is estimated that the number of users in this market will reach 52.0m by 2028.
This growing market has attracted many big players like Flutter Entertainment PDYPY, Caesars Entertainment CZR and MGM Resorts International MGM.
Flutter Entertainment’s FanDuel possesses a substantial base of fantasy users that it can effectively cross-promote to, capitalizing on its established brand. Flutter Entertainment also controls major brands like PokerStars, Paddy Power, SkyBet, and Betfair, and offers FanDuel access to extensive knowledge and experience, particularly in prominent gambling markets, including Europe. FanDuel and DraftKings are closely matched in terms of their geographic presence across states.
Caesars Entertainment acquired William Hill has a longstanding presence in the U.S., with sportsbooks already active in 14 states, William Hill, now under Caesars, can leverage the widespread presence of Caesars properties nationwide. The strategic alliance with Caesars, along with exclusive partnerships with CBS Sports and ESPN apps, add to William Hill's strengths.
BetMGM has a wide range of online gambling brands under its umbrella across the world, including Ladbrokes, Coral and partypoker. It is well-known in the U.S., having almost 30 properties dotted around the nation. One of BetMGM's main growth strategies is signing partnership deals with major sports teams in the states in which it is launching. Some of its partners to date include the Washington Nationals, Detroit Lions, Denver Broncos and Philadelphia 76ers.
DraftKings has recently introduced "Progressive Parlay" as an upcoming feature in its highly regarded sports betting product. This regulated sports betting wager, set against the house, involves placing a parlay bet on player props. This feature enhances the inclusivity of DraftKings' sports betting platform, providing users with more diverse and engaging options.
Shares of this Zacks Rank #3 (Hold) company have gained 216.3% year to date compared with the Zacks Consumer Discretionary sector’s rise of 10.8%. The stock has outperformed due to constant innovation with relevant and innovative features. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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MGM Resorts International (MGM) : Free Stock Analysis Report
Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
Flutter Entertainment PLC Unsponsored ADR (PDYPY) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 the initial launch in six states, including Maryland, Minnesota, Oklahoma, South Carolina, Tennessee and Wisconsin on December 6th, the company plans further rollouts. DraftKings' fantasy variant, Pick6, maintains the company's tradition of peer-to-peer competition among customers, ensuring a chance at guaranteed prizes. Flutter Entertainment also controls major brands like PokerStars, Paddy Power, SkyBet, and Betfair, and offers FanDuel access to extensive knowledge and experience, particularly in prominent gambling markets, including Europe.
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DraftKings Inc. Price and Consensus DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote DraftKings Faces Tough Competition in The Online Sports Betting Market According to a Statista report, The Online Sports Betting market in the United States is anticipated to witness an annual growth rate (CAGR 2023-2028) of 15.63%, which would result in a market volume of US$15.75bn by 2028. This growing market has attracted many big players like Flutter Entertainment PDYPY, Caesars Entertainment CZR and MGM Resorts International MGM. Click to get this free report MGM Resorts International (MGM) : Free Stock Analysis Report Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report Flutter Entertainment PLC Unsponsored ADR (PDYPY) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DraftKings DKNG has introduced DraftKings Pick6, a new fantasy sports variant that operates on a peer-to-peer model, focusing on a straightforward "more or less" mechanic for individual player statistics. DraftKings Inc. Price and Consensus DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote DraftKings Faces Tough Competition in The Online Sports Betting Market According to a Statista report, The Online Sports Betting market in the United States is anticipated to witness an annual growth rate (CAGR 2023-2028) of 15.63%, which would result in a market volume of US$15.75bn by 2028. Click to get this free report MGM Resorts International (MGM) : Free Stock Analysis Report Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report Flutter Entertainment PLC Unsponsored ADR (PDYPY) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DraftKings DKNG has introduced DraftKings Pick6, a new fantasy sports variant that operates on a peer-to-peer model, focusing on a straightforward "more or less" mechanic for individual player statistics. DraftKings Inc. Price and Consensus DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote DraftKings Faces Tough Competition in The Online Sports Betting Market According to a Statista report, The Online Sports Betting market in the United States is anticipated to witness an annual growth rate (CAGR 2023-2028) of 15.63%, which would result in a market volume of US$15.75bn by 2028. DraftKings has recently introduced "Progressive Parlay" as an upcoming feature in its highly regarded sports betting product.
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714164.0
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2023-12-07 00:00:00 UTC
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Better Buy: Berkshire Hathaway or Vanguard 500 Index Fund?
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https://www.nasdaq.com/articles/better-buy%3A-berkshire-hathaway-or-vanguard-500-index-fund
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Berkshire Hathaway CEO (NYSE: BRK.A) (NYSE: BRK.B) Warren Buffett has a well-earned reputation as one of the world's best business pickers. From 1965 to 2022, Buffett's business acumen helped Berkshire's shares deliver an astounding compound annual return of 19.8%.
If you bought a fund tracking the benchmark S&P 500 and reinvested the dividends over this period, you'd still only end up with an average compound annual return of 9.9%. That's a testament to Buffett's uncanny skill as an investor.
Nonetheless, the Oracle of Omaha himself has often said that most investors should simply buy a low-cost index fund that tracks the S&P 500 and call it a day. In Berkshire's 2013 annual letter, for instance, he specifically recommended the Vanguard 500 Index Fund (NYSEMKT: VOO) for its low fees and nearly identical performance to its benchmark index.
Image Source: Getty Images.
Should investors heed Buffett's advice or is Berkshire stock still a better growth vehicle than this popular indexed exchange-traded fund (ETF)? Let's dig deeper to find out.
Berkshire's investing thesis is changing with age
Berkshire is a diversified conglomerate that has investments in various sectors, such as insurance and energy, technology, and consumer goods, as well as large holdings of U.S. treasuries, U.S. and foreign equities, and a lot of cash. Its stock is designed to withstand both unforeseen economic shocks and normal economic downturns that occur in business cycles.
However, Berkshire does face some unique challenges due to its girth. The company has struggled to find attractive opportunities that can move the needle for its massive portfolio since the turn of the century. As a result, its stock has lagged behind the market at times over this period.
Buffett and analysts alike have acknowledged this reality and pointed to the company's size as a limiting factor. This is a key reason Apple has become the dominant position in Berkshire's stock portfolio in recent years, as it's one of the few growth companies that can match its scale.
Over the last 10 years, Berkshire stock hasn't been able to produce higher returns on capital than the S&P 500 because of its size problem and its lack of a dividend. Dividend payments allow investors to amplify capital gains over time through the power of compounding. Buffett's holding company has also underperformed the VOO over the past five years by nearly 15%, and most analysts expect this trend to continue for the foreseeable future.
BRK.B Total Return Level data by YCharts.
Better buy
At this stage in its history, Berkshire is more of a defensive play against market volatility, rather than a top-notch capital-appreciation vehicle. During short periods, the conglomerate's shares will likely do better than the broader markets because of its safety factor. It should also consistently generate positive net returns over the long term, which isn't an easy thing to do.
However, most investors would be smart to follow Buffett's advice and go with the VOO as a low-cost and tax-efficient way to grow capital over long periods. Still, Berkshire's stock could play an important role in a well-diversified portfolio as a hedge against economic and geopolitical risks, as well as other black-swan-type events.
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George Budwell has positions in Apple and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. 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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Should investors heed Buffett's advice or is Berkshire stock still a better growth vehicle than this popular indexed exchange-traded fund (ETF)? This is a key reason Apple has become the dominant position in Berkshire's stock portfolio in recent years, as it's one of the few growth companies that can match its scale. Buffett's holding company has also underperformed the VOO over the past five years by nearly 15%, and most analysts expect this trend to continue for the foreseeable future.
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From 1965 to 2022, Buffett's business acumen helped Berkshire's shares deliver an astounding compound annual return of 19.8%. Should investors heed Buffett's advice or is Berkshire stock still a better growth vehicle than this popular indexed exchange-traded fund (ETF)? The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF.
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Should investors heed Buffett's advice or is Berkshire stock still a better growth vehicle than this popular indexed exchange-traded fund (ETF)? 10 stocks we like better than Berkshire Hathaway 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 George Budwell has positions in Apple and Vanguard S&P 500 ETF.
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Should investors heed Buffett's advice or is Berkshire stock still a better growth vehicle than this popular indexed exchange-traded fund (ETF)? See the 10 stocks *Stock Advisor returns as of December 4, 2023 George Budwell has positions in Apple and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF.
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1435e248-464d-4d1e-b93e-e802b5d2374c
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714165.0
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2023-12-07 00:00:00 UTC
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Here's How Much You'd Have If You Invested $1000 in Medifast a Decade Ago
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https://www.nasdaq.com/articles/heres-how-much-youd-have-if-you-invested-%241000-in-medifast-a-decade-ago-0
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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 Medifast (MED) ten years ago? It may not have been easy to hold on to MED for all that time, but if you did, how much would your investment be worth today?
Medifast's Business In-Depth
With that in mind, let's take a look at Medifast's main business drivers.
With more than 40 years of experience in the health and wellness space, Medifast, Inc. has become a remarkable direct-selling company in the industry. The company is also known for its leading health and wellness community — OPTAVIA — which provides Lifelong Transformation, One Healthy Habit at a Time lifestyle solutions. Given consumers’ rising inclination toward health, the OPTAVIA lifestyle solution and coaching support system bode well.
Incorporated in 1989, Medifast is a leading manufacturer and distributor of clinically-proven healthy living products and programs. The company produces, distributes and sells weight loss, weight management and healthy living products throughits direct online channels as well as franchise weight control centers.
The Baltimore, MD— based company boasts of a diversified portfolio of more than 170 consumable product options, which include bars, bites, pretzels, puffs, cereal crunch, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes and soups.
Medifast’s manufacturing plant, which is approved by the United States Food and Drug Administration, is situated in Owings Mills, MD. The company sells different types of products, which are formed on the basis of its proprietary formulas across the United States and the Asia-Pacific.The products are sold under brands such as the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by Take Shape for Life and Flavors of Home.
OPTAVIA product line is sold through its community of independent coaches who offer support and guidance to their clients. In partnership with OPTAVIA coaches, franchise partners, resellers and its Scientific Advisory Board, Medifast offers comprehensive wellness products and programs that focus on creating sustainable change by helping people learn to incorporate healthy habits into their lives.
Medifast’s annual sales grew, 4.8% in 2022, 63% in 2021, 31% in 2020 and 42% in 2019 on a year-over-year basis.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Medifast ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in December 2013 would be worth $2,719.40, or a gain of 171.94%, as of December 7, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 152.03% and gold's return of 58.45% over the same time frame.
Looking ahead, analysts are expecting more upside for MED.
Medifast is focused on sustainable growth by emphasizing innovation, market diversification, and operational efficiency. The company proactively invests in technology, which supports OPTAVIA Coaches in client interactions. The company’s “Fuel for the Future” plan is another upside, which is helping generate savings. However, Medifast is battling challenges in customer acquisition due to economic changes, social media dynamics, and competition. These aspects hurt third-quarter 2023 results, wherein earnings and revenues fell year over year. Efforts to expand product offerings and include medical weight loss in its programs are likely to aid customer acquisition trends. Medifast does not expect meaningful results until 2024. Shares of the company have underperformed the industry in the past three months, reflecting these concerns.
The stock is up 9.53% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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MEDIFAST INC (MED) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Medifast’s manufacturing plant, which is approved by the United States Food and Drug Administration, is situated in Owings Mills, MD. In partnership with OPTAVIA coaches, franchise partners, resellers and its Scientific Advisory Board, Medifast offers comprehensive wellness products and programs that focus on creating sustainable change by helping people learn to incorporate healthy habits into their lives. Efforts to expand product offerings and include medical weight loss in its programs are likely to aid customer acquisition trends.
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What if you'd invested in Medifast (MED) ten years ago? The company produces, distributes and sells weight loss, weight management and healthy living products throughits direct online channels as well as franchise weight control centers. In partnership with OPTAVIA coaches, franchise partners, resellers and its Scientific Advisory Board, Medifast offers comprehensive wellness products and programs that focus on creating sustainable change by helping people learn to incorporate healthy habits into their lives.
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The company sells different types of products, which are formed on the basis of its proprietary formulas across the United States and the Asia-Pacific.The products are sold under brands such as the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by Take Shape for Life and Flavors of Home. In partnership with OPTAVIA coaches, franchise partners, resellers and its Scientific Advisory Board, Medifast offers comprehensive wellness products and programs that focus on creating sustainable change by helping people learn to incorporate healthy habits into their lives. So, if you had invested in Medifast ten years ago, you're likely feeling pretty good about your investment today.
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It may not have been easy to hold on to MED for all that time, but if you did, how much would your investment be worth today? So, if you had invested in Medifast ten years ago, you're likely feeling pretty good about your investment today. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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c9e3e2c4-12a8-4838-acfb-017ea43755d7
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714166.0
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2023-12-07 00:00:00 UTC
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Apartment REITs see silver lining as high mortgage rates force tenants to stay put
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DCOMP
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https://www.nasdaq.com/articles/apartment-reits-see-silver-lining-as-high-mortgage-rates-force-tenants-to-stay-put
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By Ananta Agarwal
Dec 7 (Reuters) - Real estate investment trusts (REITs) that own and manage apartments are expected to see a bump in their revenue from a rise in renewed leases and rental deals as fewer Americans chase their dreams of buying a new home due to higher borrowing costs.
That may come as a relief to the sector, which has struggled with lower rates for fresh leases this year as a supply glut following the pandemic has driven down rents while increasing the cost of attracting fresh tenants.
REITs have been able to charge 3-5% higher rates for tenants looking to renew their leases and that figure has remained steady for a while. Contrast that with a less than 1% hike in new lease rates, which in some markets have also turned negative, given the competition to boost the occupancy rate.
"Enticing people to take a vacant unit can be a relatively expensive proposition, particularly during uncertain times," Wedbush Securities analyst Richard Anderson said, adding this could prompt them to cut rents or offer concessions for new tenants if turnover remained high.
However, with home ownership becoming unaffordable for most Americans because of rising mortgage rates, turnover rates have slowed at most big REITs.
The pace of average overall turnover rate slowed to 48.8% in the third quarter from a typical 52.5% for the top seven REITs, including AvalonBay Communities AVB.N and Mid America Apartments MAA.N, BMO Capital Markets' John Kim said.
REITs in the United States derive their income by renting out properties that they buy and manage while distributing the bulk of their taxable profit as dividends to shareholders, making them an attractive investment option for people seeking steady returns.
However, they have lost some of their allure after year-on-year rent growth in the United States started falling from a double-digit rate by mid-2022 due to increased supply from a cheap-debt-fuelled boom in construction of multifamily apartments for rent or lease in the last two years.
The S&P 500 Equity Real Estate Investment Trusts Sub Index .SPLRCREC is up just 2.03% this year, compared with an 18.95% gain in the broader S&P 500 index .SPX.
Major REITs have also seen their shares suffer in 2023, with Mid America Apartments shedding 19% while Equity Residential EQR.N gained a meagre 1.24%.
Still, rising home prices are starting to turn the tide in their favor.
The average mortgage payment was 52% higher than the average cost-to-rent each month in the third quarter, according to real-estate intelligence provider CBRE Group.
The number of people moving out specifically to buy a home - usually 15% of the total - has dropped to well below 10% for most of the biggest multi-family REITs, Wedbush's Anderson said.
Backing Anderson's view, Camden Property Trust CPT.N CEO Richard Campo said, "The percentage of Camden residents moving out to purchase a home is currently at one of the lowest levels we have seen in our 30-year operating history."
With REITs experiencing a snapback from an era of high rent growth, more renewals also save on costs, especially with turnover expenses having more than doubled since March 2020, according to data analytics firm RealPage.
"You also see a revenue benefit from not having the unit vacant for some period of time between residents," Janney Montgomery Scott analyst Robert Stevenson said.
"So they have a vested interest in keeping existing residents."
Rental growth rate moderates in 2023 https://tmsnrt.rs/47IZ6ib
Gap between cost of owning and leasing a home widens https://tmsnrt.rs/3GpUq4N
(Reporting by Ananta Agarwal in Bengaluru; editing by Arpan Varghese and Anil D'Silva)
((Ananta.agarwal@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ananta Agarwal Dec 7 (Reuters) - Real estate investment trusts (REITs) that own and manage apartments are expected to see a bump in their revenue from a rise in renewed leases and rental deals as fewer Americans chase their dreams of buying a new home due to higher borrowing costs. "Enticing people to take a vacant unit can be a relatively expensive proposition, particularly during uncertain times," Wedbush Securities analyst Richard Anderson said, adding this could prompt them to cut rents or offer concessions for new tenants if turnover remained high. REITs in the United States derive their income by renting out properties that they buy and manage while distributing the bulk of their taxable profit as dividends to shareholders, making them an attractive investment option for people seeking steady returns.
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By Ananta Agarwal Dec 7 (Reuters) - Real estate investment trusts (REITs) that own and manage apartments are expected to see a bump in their revenue from a rise in renewed leases and rental deals as fewer Americans chase their dreams of buying a new home due to higher borrowing costs. The S&P 500 Equity Real Estate Investment Trusts Sub Index .SPLRCREC is up just 2.03% this year, compared with an 18.95% gain in the broader S&P 500 index .SPX. Backing Anderson's view, Camden Property Trust CPT.N CEO Richard Campo said, "The percentage of Camden residents moving out to purchase a home is currently at one of the lowest levels we have seen in our 30-year operating history."
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By Ananta Agarwal Dec 7 (Reuters) - Real estate investment trusts (REITs) that own and manage apartments are expected to see a bump in their revenue from a rise in renewed leases and rental deals as fewer Americans chase their dreams of buying a new home due to higher borrowing costs. However, they have lost some of their allure after year-on-year rent growth in the United States started falling from a double-digit rate by mid-2022 due to increased supply from a cheap-debt-fuelled boom in construction of multifamily apartments for rent or lease in the last two years. Rental growth rate moderates in 2023 https://tmsnrt.rs/47IZ6ib Gap between cost of owning and leasing a home widens https://tmsnrt.rs/3GpUq4N (Reporting by Ananta Agarwal in Bengaluru; editing by Arpan Varghese and Anil D'Silva) ((Ananta.agarwal@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ananta Agarwal Dec 7 (Reuters) - Real estate investment trusts (REITs) that own and manage apartments are expected to see a bump in their revenue from a rise in renewed leases and rental deals as fewer Americans chase their dreams of buying a new home due to higher borrowing costs. "Enticing people to take a vacant unit can be a relatively expensive proposition, particularly during uncertain times," Wedbush Securities analyst Richard Anderson said, adding this could prompt them to cut rents or offer concessions for new tenants if turnover remained high. The pace of average overall turnover rate slowed to 48.8% in the third quarter from a typical 52.5% for the top seven REITs, including AvalonBay Communities AVB.N and Mid America Apartments MAA.N, BMO Capital Markets' John Kim said.
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40559c85-a8c8-4ee4-9df2-1906e239cc39
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714167.0
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2023-12-07 00:00:00 UTC
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Apple at a $3 Trillion Market Cap: Buy, Sell, or Hold?
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DCOMP
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https://www.nasdaq.com/articles/apple-at-a-%243-trillion-market-cap%3A-buy-sell-or-hold
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nan
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nan
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Apple (NASDAQ: AAPL) crossed a $3 trillion market capitalization on Tuesday, following a surge in the tech company's stock price this year. The iPhone maker's shares are up about 49% year to date, crushing the S&P 500's 19% gain over this same period.
With such a staggering rise, many shareholders are likely revisiting their investment theses on Apple shares. Now trading at more than 31x earnings, is the tech stock worth its premium valuation? Or is it time to move on, looking for a better place to invest capital?
Though you might imagine shares being overvalued after such an astronomical gain, there's actually good reason to continue holding.
There's more than meets the eye
On the surface, it may be difficult to understand why Apple stock is attracting so much interest from investors this year. After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). This compares to 8% top-line growth in fiscal 2022. But there's more to the story.
First, Apple's financial results in fiscal 2023 were weighed down heavily by foreign-exchange headwinds. In the first, second, third, and fourth quarters of fiscal 2023, the negative impact on Apple's reported year-over-year growth rates was 800, 500, 400, and 200 basis points, respectively. In other words, Apple's momentum with customers is better than its reported revenue figures make it out to be.
Second, Apple's revenue trends improved throughout fiscal 2023. Total revenue fell 4% year over year during the fiscal year's first half and just 1% in the second half.
Finally, Apple's important high-margin services segment has recently seen accelerated momentum, growing an impressive 16% year over year in fiscal Q4. With approximately double the gross profit margin of its hardware sales, this key segment's strong growth played a big role in Apple's 13% year-over-year earnings-per-share growth during the period. By growing earnings so nicely despite a challenging environment, Apple is showing Wall Street its resilience.
Looking ahead
Steadily improving business trends and a promising high-margin services segment is great, but are they enough to justify a price-to-earnings multiple of more than 31? With this final point, I believe so.
This icing on the cake for Apple investors is management's recent guidance. For fiscal Q1, Apple guided for flat revenue, compared to the year-ago quarter. This occurred despite having one less week than in the same quarter of last year and in the face of foreign-exchange headwinds that are expected to pressure the company's top line by about 100 basis points. With the extra week in the year-ago quarter accounting for 7 percentage points of the period's revenue, Apple's guidance for flat revenue growth, despite such a tough comparison, shows that it's clearly entering growth mode as it rolls into fiscal 2024.
So, is Apple stock a buy, sell, or hold today? Saying it's a buy is getting tougher at this level, but it's at least a hold. Of course, there are always risks to owning stocks, so Apple's attractiveness as an investment could change.
Investors will have to watch the company closely. Overall, however, Apple's current valuation seems reasonable, relative to its business fundamentals.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple 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
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. 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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Apple (NASDAQ: AAPL) crossed a $3 trillion market capitalization on Tuesday, following a surge in the tech company's stock price this year. Looking ahead Steadily improving business trends and a promising high-margin services segment is great, but are they enough to justify a price-to-earnings multiple of more than 31? This occurred despite having one less week than in the same quarter of last year and in the face of foreign-exchange headwinds that are expected to pressure the company's top line by about 100 basis points.
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After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). Finally, Apple's important high-margin services segment has recently seen accelerated momentum, growing an impressive 16% year over year in fiscal Q4. With the extra week in the year-ago quarter accounting for 7 percentage points of the period's revenue, Apple's guidance for flat revenue growth, despite such a tough comparison, shows that it's clearly entering growth mode as it rolls into fiscal 2024.
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After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). Finally, Apple's important high-margin services segment has recently seen accelerated momentum, growing an impressive 16% year over year in fiscal Q4. With the extra week in the year-ago quarter accounting for 7 percentage points of the period's revenue, Apple's guidance for flat revenue growth, despite such a tough comparison, shows that it's clearly entering growth mode as it rolls into fiscal 2024.
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After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). In the first, second, third, and fourth quarters of fiscal 2023, the negative impact on Apple's reported year-over-year growth rates was 800, 500, 400, and 200 basis points, respectively. Finally, Apple's important high-margin services segment has recently seen accelerated momentum, growing an impressive 16% year over year in fiscal Q4.
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714168.0
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2023-12-07 00:00:00 UTC
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Revitalization Plan Keeps Molson Coors (TAP) on Growth Track
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https://www.nasdaq.com/articles/revitalization-plan-keeps-molson-coors-tap-on-growth-track
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Molson Coors Beverage Company TAP has been in a good spot, courtesy of gains from contributions of its revitalization plan, commitment toward innovation and the premiumization of its global portfolio. Strong portfolio performance, strength in both business units and continued momentum in Coors Light and Miller Lite in the United States have been aiding TAP’s performance.
This led to third-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year. The company’s adjusted earnings rose 45.5% year over year. Net sales grew 12.4% year over year and 11% on a constant-currency basis. Sales growth was driven by a favorable price and sales mix, higher financial volume and positive impacts of foreign currency.
Additionally, the company’s business trends and initiatives have been well reflected in its share price. Shares of this Zacks Rank #1 (Strong Buy) company have rallied 17.6% in the past year against the industry’s decline of 7.8%. TAP also fared better than the sector and the S&P 500’s growth of 6.8% and 15.7%, respectively, in the same period.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2023 sales and earnings suggests growth of 9.1% and 28.8%, respectively, from the year-ago numbers.
Molson Coors, one of the largest brewers in the world, is on track with its revitalization plan. The plan is focused on achieving sustainable top and bottom-line growth by streamlining the organization, and reinvesting resources into its brands and capabilities.
The company intends to invest in iconic brands and growth opportunities in the above-premium beer space. It also plans to develop digital competencies for employees, supply-chain-related system capabilities and commercial functions. As part of the plan, it has been expanding in adjacencies and beyond beer without hampering the support for its existing large brands.
To facilitate these investments, Molson Coors plans to generate savings of $150 million by simplifying its structure. It is also building on the strength of its iconic core brands. Additionally, its cost-saving program, announced in 2020, targets delivering cost savings of $600 million over three years.
Other Strategic Efforts
Molson Coors is committed to growing its market shares through innovation and premiumization. The company has been rapidly expanding its above-premium portfolio over the past few years to accelerate portfolio premiumization.
Management has emphasized that it has been working to reshape its product portfolio and grow in emerging markets. Its U.S. above-premium portfolio witnessed sales that outpaced its U.S. economy portfolio driven by rapid growth of its hard seltzers, the successful launch of Simply Spiked Lemonade and continued strength in Blue Moon and Peroni’s.
Driven by positive business trends, management raised its 2023 view. Net sales are projected to grow at the higher end of its earlier view of year-over-year high-single-digit growth on a constant-currency basis. This is mainly due to the recovery in the U.S. beer category, stronger-than-expected brand volume growth and better-than-expected pricing across global markets, particularly Canada.
Underlying EBT is likely to jump 32-36% year over year compared with earlier stated 23-26% growth on a constant-currency basis.
Other Stocks to Consider
We have highlighted three other top-ranked stocks from the Consumer Staple sector, namely Vita Coco Company COCO, The Duckhorn Portfolio NAPA and Fomento Economico Mexicano FMX.
Vita Coco, which develops, markets, and distributes coconut water products in the United States, Canada, Europe, the Middle East, and the Asia Pacific, currently sports a Zacks Rank #1. Shares of COCO have rallied 111% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco’s current financial year’s sales and earnings per share suggests growth of 13.5% and 243.5%, respectively, from the year-ago figures. COCO has a trailing four-quarter earnings surprise of 25.7%, on average.
Duckhorn Portfolio, a premier producer of wines, principally in North America, has a trailing four-quarter earnings surprise of 20.8%, on average. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Duckhorn Portfolio’s current financial-year sales and earnings suggests growth of 7.7% and 3%, respectively, from the prior-year levels. Shares of NAPA have declined 39.9% in the past year.
Fomento Economico Mexicano, alias FEMSA in the beverage industry through Coca-Cola FEMSA, is the world’s largest franchise bottler for Coca-Cola products. It currently carries a Zacks Rank #2. Shares of FMX have surged 64.1% in the past year.
The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings suggests growth of 32.3% and 60.3%, respectively, from the year-earlier figures. FMX has a trailing four-quarter earnings surprise of 23.2%, on average.
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Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Molson Coors Beverage Company TAP has been in a good spot, courtesy of gains from contributions of its revitalization plan, commitment toward innovation and the premiumization of its global portfolio. Vita Coco, which develops, markets, and distributes coconut water products in the United States, Canada, Europe, the Middle East, and the Asia Pacific, currently sports a Zacks Rank #1. The Zacks Consensus Estimate for Vita Coco’s current financial year’s sales and earnings per share suggests growth of 13.5% and 243.5%, respectively, from the year-ago figures.
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Other Stocks to Consider We have highlighted three other top-ranked stocks from the Consumer Staple sector, namely Vita Coco Company COCO, The Duckhorn Portfolio NAPA and Fomento Economico Mexicano FMX. Click to get this free report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research The Zacks Consensus Estimate for TAP’s 2023 sales and earnings suggests growth of 9.1% and 28.8%, respectively, from the year-ago numbers. The Zacks Consensus Estimate for Vita Coco’s current financial year’s sales and earnings per share suggests growth of 13.5% and 243.5%, respectively, from the year-ago figures. de C.V. (FMX) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Molson Coors Beverage Company TAP has been in a good spot, courtesy of gains from contributions of its revitalization plan, commitment toward innovation and the premiumization of its global portfolio. Other Stocks to Consider We have highlighted three other top-ranked stocks from the Consumer Staple sector, namely Vita Coco Company COCO, The Duckhorn Portfolio NAPA and Fomento Economico Mexicano FMX. The Zacks Consensus Estimate for Vita Coco’s current financial year’s sales and earnings per share suggests growth of 13.5% and 243.5%, respectively, from the year-ago figures.
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292a672e-a718-4f7e-93f8-ff7b40117788
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714169.0
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2023-12-07 00:00:00 UTC
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ChargePoint Stock: A Worthy EV Charger Gamble at $2
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https://www.nasdaq.com/articles/chargepoint-stock%3A-a-worthy-ev-charger-gamble-at-%242
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The market has practically destroyed ChargePoint (NYSE:CHPT) stock, so could it be a good contrarian bet in December? Maybe it is, as ChargePoint’s C-suite turnover presents the company with a timely opportunity to change and grow.
If you truly believe in the electric vehicle revolution, then ChargePoint stock offers an intriguing picks-and-shovels play because EVs will all need to be charged regularly. Yet, neither investors nor analysts are enthusiastic about ChargePoint. I’m not massively bullish, but risk-tolerant traders might want to take a look at ChargePoint for a potential turnaround.
Wall Street Doesn’t Love CHPT Stock
ChargePoint stock has lost most its value this year, and it’s hard to find experts on Wall Street who are very bullish about the stock. InvestorPlace contributor Josh Enomoto did an excellent job of summarizing the bearish takes of analysts from TD Cowen and Roth MKM.
To those, I’ll add some more examples. First, UBS analysts downgraded CHPT stock from “buy” to “neutral” and drastically reduced their price target on the shares from $9 to $2.25. Meanwhile, Oppenheimer analysts dropped their rating on ChargePoint from “outperform” to “perform” and withdrew their $13 price target on the shares.
Needham analyst Chris Pierce on halved his price target on ChargePoint stock from $8 to $4. In addition, Bank of America analysts reiterated their “hold” rating on ChargePoint and issued a share-price target of $2.50.
I’ll admit, I’ve been wary of ChargePoint in the past. Yet, my contrarian alarm bells are ringing now. I suspect that the market is punishing ChargePoint while piling into “Magnificent Seven” stocks because investors are worried about high interest rates taking a toll on relatively smaller businesses.
ChargePoint Stock Traders Should Embrace Change
Change can be a good thing, especially when a company is struggling and could benefit from a different strategy. On the other hand, stock traders sometimes get nervous when they sense changes are happening.
ChargePoint stock investors shouldn’t fear change. Frankly, it’s unreasonable for Oppenheimer analyst Colin Rusch to cite ChargePoint’s “management transition” as a reason to downgrade the stock.
Rusch declared ChargePoint is undergoing a “painful transition.” To that, I say, “No pain, no gain.” ChargePoint just installed Rick Wilmer as its new CEO and Mansi Khetani as the company’s interim chief financial officer (CFO).
Putting Wilmer in the driver’s seat could mark a new and better chapter in ChargePoint’s story. As the company reported, Wilmer “has completed a thorough analysis of ChargePoint’s supply chain, manufacturing partnerships and inventory management approach.”
Wilmer is unafraid to enact meaningful change at ChargePoint. Hopefully, the company can achieve Wilmer’s objective of “generating positive adjusted EBITDA in the fourth quarter of calendar 2024.”
Give CHPT Stock a Try, if You Dare
There’s no guarantee that ChargePoint will deliver better results in the coming quarters under Wilmer’s leadership. However, at least there’s some hope now that ChargePoint stock can stage a comeback at some point.
Besides, with CHPT stock recently hitting $2, it’s so beaten-down and the sentiment is so tepid that there may be a prime contrarian play here. Therefore, speculative traders might consider a very small share position in ChargePoint.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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The post ChargePoint Stock: A Worthy EV Charger Gamble at $2 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I suspect that the market is punishing ChargePoint while piling into “Magnificent Seven” stocks because investors are worried about high interest rates taking a toll on relatively smaller businesses. David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post ChargePoint Stock: A Worthy EV Charger Gamble at $2 appeared first on InvestorPlace.
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Wall Street Doesn’t Love CHPT Stock ChargePoint stock has lost most its value this year, and it’s hard to find experts on Wall Street who are very bullish about the stock. First, UBS analysts downgraded CHPT stock from “buy” to “neutral” and drastically reduced their price target on the shares from $9 to $2.25. ChargePoint Stock Traders Should Embrace Change Change can be a good thing, especially when a company is struggling and could benefit from a different strategy.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The market has practically destroyed ChargePoint (NYSE:CHPT) stock, so could it be a good contrarian bet in December? Wall Street Doesn’t Love CHPT Stock ChargePoint stock has lost most its value this year, and it’s hard to find experts on Wall Street who are very bullish about the stock. As the company reported, Wilmer “has completed a thorough analysis of ChargePoint’s supply chain, manufacturing partnerships and inventory management approach.” Wilmer is unafraid to enact meaningful change at ChargePoint.
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Yet, neither investors nor analysts are enthusiastic about ChargePoint. Meanwhile, Oppenheimer analysts dropped their rating on ChargePoint from “outperform” to “perform” and withdrew their $13 price target on the shares. Therefore, speculative traders might consider a very small share position in ChargePoint.
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61c152e6-624c-47e1-a970-e01a1dd53813
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714170.0
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2023-12-07 00:00:00 UTC
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Implied Volatility Surging for Ameris Bancorp (ABCB) Stock Options
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https://www.nasdaq.com/articles/implied-volatility-surging-for-ameris-bancorp-abcb-stock-options-0
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nan
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Investors in Ameris Bancorp ABCB need to pay close attention to the stock based on moves in the options market lately. That is because the Apr 19, 2024 $22.50 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 Ameris Bancorp shares, but what is the fundamental picture for the company? Currently, Ameris Bancorp is a Zacks Rank #3 (Hold) in the Banks - Southeast industry that ranks in the Top 25% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while one has dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.11 per share to $1.14 in that period.
Given the way analysts feel about Ameris Bancorp 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 >>
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ameris Bancorp (ABCB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Ameris Bancorp ABCB need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Ameris Bancorp (ABCB) : 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 Ameris Bancorp 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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However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Given the way analysts feel about Ameris Bancorp right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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ce80c0f3-98de-4de7-b244-c1cc218ea88f
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714171.0
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2023-12-07 00:00:00 UTC
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Is AMD the Top AI Stock to Own After Its AI Event?
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DCOMP
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https://www.nasdaq.com/articles/is-amd-the-top-ai-stock-to-own-after-its-ai-event
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nan
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nan
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In today's video, I discuss recent artificial intelligence (AI) updates impacting Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of Dec. 6, 2023. The video was published on Dec. 6, 2023.
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Jose Najarro has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through their link, they will earn some extra money that supports their channel.
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In today's video, I discuss recent artificial intelligence (AI) updates impacting Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA). See the 10 stocks *Stock Advisor returns as of December 4, 2023 Jose Najarro has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia.
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In today's video, I discuss recent artificial intelligence (AI) updates impacting Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA). See the 10 stocks *Stock Advisor returns as of December 4, 2023 Jose Najarro has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia.
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Check out the short video to learn more, consider subscribing, and click the special offer link below. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Jose Najarro has positions in Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
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692010a0-9ef4-4fc0-bcbc-0c0c9c645741
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714172.0
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2023-12-07 00:00:00 UTC
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Zoom Video (ZM) Introduces New Pricing Plans for AI Products
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https://www.nasdaq.com/articles/zoom-video-zm-introduces-new-pricing-plans-for-ai-products
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nan
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Zoom Video Communications, Inc. ZM has made significant announcements regarding enhancements to its artificial intelligence (AI) -powered CX suite and new pricing plans.
Zoom is actively working to strengthen its position in the contact center space and offer a comprehensive set of features to cater to the evolving needs of businesses.
The Zoom Contact Center has experienced substantial growth since its launch last year, with more than 700 customers. It expanded its reach across businesses of various sizes, from mid-market to global enterprises. The company has strategically invested in areas such as advanced AI, workforce management and omnichannel expansion to improve customer experience.
Zoom Contact Center will now be available in new tiered plans, each of which includes voice, video, chat, Short Message Service (“SMS”) channels, real-time transcription, remote control, Agent Computer-Telephony Integration, surveys and AI Companion capabilities, including summarization.
The top-tier plans will feature advanced capabilities like Zoom AI Expert Assist and Workforce Engagement Management. These features will also be available as add-ons to any package. Mid-tier plans will include features such as inbound email and social channel support, as well as outbound dialers.
The new plans aim to provide exceptional value at all levels, including enterprise-grade features at the base tier, which are often charged as extras by other companies. This is designed to offer flexibility to meet the diverse needs of small-to-large contact center departments.
Zoom Video Communications, Inc. Price and Consensus
Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote
Zoom’s New Packages Provide Enterprise-Grade Features
The Essentials package starts at $69 per month. It includes Zoom AI Companion, remote control, privacy and security features and support for the most critical channels: omnichannel voice, chat, SMS and video, as well as many other core capabilities.
In addition to the features offered in the Essentials package, the Premium package provides support for emails, social channels and outbound dialer, starting at $99 per month.
Elite customers have access to all the features from the Premium package, plus Zoom AI Expert Assist, Quality Management and Workforce Management, starting at $149 per month.
Customers with Essentials and Premium packages can enhance their subscriptions by purchasing add-ons such as Zoom AI Expert Assist and Workforce Engagement Management.
This tiered approach allows customers to choose the package that best fits their requirements and budget, with the flexibility to add specific features as needed. The inclusion of features like Zoom AI Expert Assist, Quality Management and Workforce Management in the higher-tier packages suggests a focus on providing advanced tools for larger enterprises with more complex needs.
What Awaits Zoom in the Near Future?
Joining the growing list of companies that offer generative AI tools, Zoom is strategically leveraging AI to increase its user base and enhance user engagement. By harnessing the power of AI, this Zacks Rank #1 (Strong Buy) company aims to attract more users to its platform and enhance the overall experience for its existing users. You can see the complete list of today’s Zacks #1 Rank stocks here.
In third-quarter fiscal 2024, customers contributing more than $100,000 in revenues in the trailing 12 months grew 13.5% to 3,731. These customers accounted for 29% of revenues, up from 27% in the year-ago quarter.
Zoom expects fourth-quarter fiscal 2024 revenues in the range of $1.125-$1.13 billion. Non-GAAP earnings per share are anticipated in the range of $1.13-$1.15.
The company has been making efforts to enhance its features for users for quite some time now.
Zoom faces stiff competition from Microsoft MSFT, Alphabet GOOGL and RingCentral RNG in the cloud communications segment.
Microsoft Teams now allows users to create a short video clip in chat.
Alphabet has rolled out an update that allows users to schedule and join meetings, add virtual backgrounds, in-meeting chat and more, apart from existing video calling features.
RNG is riding on a solid product portfolio, which provides UCaaS and CCaaS solutions.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Ringcentral, Inc. (RNG) : 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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Zoom is actively working to strengthen its position in the contact center space and offer a comprehensive set of features to cater to the evolving needs of businesses. It includes Zoom AI Companion, remote control, privacy and security features and support for the most critical channels: omnichannel voice, chat, SMS and video, as well as many other core capabilities. Alphabet has rolled out an update that allows users to schedule and join meetings, add virtual backgrounds, in-meeting chat and more, apart from existing video calling features.
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Zoom Video Communications, Inc. Price and Consensus Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote Zoom’s New Packages Provide Enterprise-Grade Features The Essentials package starts at $69 per month. In addition to the features offered in the Essentials package, the Premium package provides support for emails, social channels and outbound dialer, starting at $99 per month. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Ringcentral, Inc. (RNG) : 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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Zoom Video Communications, Inc. Price and Consensus Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote Zoom’s New Packages Provide Enterprise-Grade Features The Essentials package starts at $69 per month. Elite customers have access to all the features from the Premium package, plus Zoom AI Expert Assist, Quality Management and Workforce Management, starting at $149 per month. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Ringcentral, Inc. (RNG) : 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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Zoom Video Communications, Inc. Price and Consensus Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote Zoom’s New Packages Provide Enterprise-Grade Features The Essentials package starts at $69 per month. Joining the growing list of companies that offer generative AI tools, Zoom is strategically leveraging AI to increase its user base and enhance user engagement. By harnessing the power of AI, this Zacks Rank #1 (Strong Buy) company aims to attract more users to its platform and enhance the overall experience for its existing users.
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5b9cd3c7-ade7-486f-bc77-6bdb65d0f9dc
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714173.0
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2023-12-07 00:00:00 UTC
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Implied Volatility Surging for Community Bank (CBU) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-community-bank-cbu-stock-options
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nan
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nan
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Investors in Community Bank System, Inc. CBU need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 16, 2024 $20.00 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 Community Bank shares, but what is the fundamental picture for the company? Currently, Community Bank is a Zacks Rank #3 (Hold) in the Banks - Northeast industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 60 days, our Zacks Consensus Estimate for the current quarter has moved from 85 cents per share to 84 cents in that period.
Given the way analysts feel about Community Bank 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 >>
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Community Bank System, Inc. (CBU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Community Bank System, Inc. CBU need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Community Bank System, Inc. (CBU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Community Bank is a Zacks Rank #3 (Hold) in the Banks - Northeast industry that ranks in the Top 36% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Given the way analysts feel about Community Bank right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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b78ad066-de32-4192-8398-323f642779cd
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714174.0
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2023-12-07 00:00:00 UTC
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Do Options Traders Know Something About Capital Bancorp (CBNK) Stock We Don't?
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-capital-bancorp-cbnk-stock-we-dont
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Investors in Capital Bancorp, Inc. CBNK need to pay close attention to the stock based on moves in the options market lately. That is because the Apr 19, 2024 $25.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Capital Bancorp shares, but what is the fundamental picture for the company? Currently, Capital Bancorp is a Zacks Rank #2 (Buy) in the Banks - Northeast industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 59 cents per share to 62 cents in that period.
Given the way analysts feel about Capital Bancorp 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 >>
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Capital Bancorp, Inc. (CBNK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Capital Bancorp, Inc. CBNK need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Capital Bancorp, Inc. (CBNK) : 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 Capital Bancorp 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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However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Given the way analysts feel about Capital Bancorp right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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42ad07f7-c354-453f-989f-47d769e7fa78
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714175.0
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2023-12-07 00:00:00 UTC
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Implied Volatility Surging for On Accel Entertainment (ACEL) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-on-accel-entertainment-acel-stock-options
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Investors in Accel Entertainment, Inc. ACEL need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $7.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Accel Entertainment shares, but what is the fundamental picture for the company? Currently, Accel Entertainment is a Zacks Rank #2 (Buy) in the Gaming industry that ranks in the Top 29% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimates for the current quarter, while none has revised the estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 16 cents per share to 17 cents in that period.
Given the way analysts feel Accel Entertainment 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 >>
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Accel Entertainment, Inc. ACEL need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Accel Entertainment, Inc. (ACEL) : 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 Accel Entertainment 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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However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Given the way analysts feel Accel Entertainment right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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0d935a4d-5daf-425f-ba58-23b9a05a5856
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714176.0
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2023-12-07 00:00:00 UTC
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Should You Buy Eli Lilly Stock Now or Wait for a Dip?
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DCOMP
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https://www.nasdaq.com/articles/should-you-buy-eli-lilly-stock-now-or-wait-for-a-dip
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Growth stocks can make for great long-term investments. But the more attractive the growth stock, the higher the premium it normally commands. Just look at Nvidia, which is developing chips to help in the development of artificial intelligence models. Then there's Tesla, the leading electric vehicle maker. Both companies operate in some high-growth arenas, which is why investors often don't balk at paying a steep price tag.
Eli Lilly (NYSE: LLY) also falls into that bucket. The healthcare giant has unlocked a new growth opportunity in weight loss, with the Food and Drug Administration recently approving Zepbound for that indication. Up 60% this year, Eli Lilly has hit new all-time highs amid the excitement around Zepbound. Should investors still buy the stock at its lofty valuation, or are you better off waiting for a drop in the share price?
The stock trades at over 100 times earnings
Eli Lilly is one of the most promising growth stocks to own right now. It also looks to be the most likely healthcare stock to reach a market capitalization of $1 trillion. But there's no doubt that today it trades at a high premium. Historically, Eli Lilly hasn't been a cheap stock to buy, but it has reached new heights this year.
LLY PE Ratio data by YCharts
Prior to 2021, this was a stock that would more often sport a price-to-earnings (P/E) multiple of around 30 or less. Today, it's at more than 3 times that level. The danger with a stock trading at this kind of a premium is that it's effectively assuming everything will go perfectly for the business. That means no hiccups along the way for Zepbound, Eli Lilly's highly effective weight-loss drug, or presumably for any other products.
Eli Lilly has incurred acquisition-related expenses in its latest quarter (ended on Sept. 30) that have weighed down its earnings by close to $3 billion, and so the P/E multiple does look worse than it otherwise would. But even on a forward-looking basis, the stock is trading at close to 50 times its estimated future profits. The average stock in the S&P 500 has forward P/E of only 20.
The risk is that if there are unexpected challenges along the way for Eli Lilly, that could make the stock vulnerable to a sell-off. As a result, conservative investors may be waiting for the shares to drop in price before buying any.
Why investors shouldn't risk timing a stock
While it's always good to have a stock's valuation in mind when determining whether to buy it, there is also a risk. If you wait for a decline in price that never comes, you may end up missing the opportunity altogether. If Eli Lilly's market capitalization does hit $1 trillion, it likely won't get there without some bumps in the road. But while there will be dips along the way, they may not be significant.
Eli Lilly possesses an extremely attractive asset in its portfolio: tirzepatide, which is an approved treatment for weight loss (Zepbound) and diabetes (Mounjaro). This is more than your typical blockbuster drug -- its revenue potential could hit upwards of $68 billion at its peak, according to a recent analyst projection, which was based on the drug's opportunities in both weight loss and diabetes.
With that kind of promise, investors could -- and should -- be paying a significant premium. As long as the drug's potential remains that lucrative, investors shouldn't expect the stock to trade anywhere near a P/E of 30 again anytime soon.
More reason to buy than to wait
Investors who are too focused on P/E multiples could miss out on a great opportunity with Eli Lilly stock. While there are no guarantees that the company and its promising weight-loss treatment won't run into any challenges along the way, investors shouldn't expect a big drop in its valuation, either. As long as you're buying the stock for the long term, it may not be too late to invest in Eli Lilly.
10 stocks we like better than Eli Lilly
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Eli Lilly 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
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The healthcare giant has unlocked a new growth opportunity in weight loss, with the Food and Drug Administration recently approving Zepbound for that indication. Eli Lilly has incurred acquisition-related expenses in its latest quarter (ended on Sept. 30) that have weighed down its earnings by close to $3 billion, and so the P/E multiple does look worse than it otherwise would. Eli Lilly possesses an extremely attractive asset in its portfolio: tirzepatide, which is an approved treatment for weight loss (Zepbound) and diabetes (Mounjaro).
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That means no hiccups along the way for Zepbound, Eli Lilly's highly effective weight-loss drug, or presumably for any other products. If Eli Lilly's market capitalization does hit $1 trillion, it likely won't get there without some bumps in the road. While there are no guarantees that the company and its promising weight-loss treatment won't run into any challenges along the way, investors shouldn't expect a big drop in its valuation, either.
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The stock trades at over 100 times earnings Eli Lilly is one of the most promising growth stocks to own right now. Why investors shouldn't risk timing a stock While it's always good to have a stock's valuation in mind when determining whether to buy it, there is also a risk. See the 10 stocks *Stock Advisor returns as of December 4, 2023 David Jagielski has no position in any of the stocks mentioned.
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The stock trades at over 100 times earnings Eli Lilly is one of the most promising growth stocks to own right now. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Eli Lilly wasn't one of them! The Motley Fool has positions in and recommends Nvidia and Tesla.
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0e3ad3df-0a8b-4acc-a527-9cae5805c863
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714177.0
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2023-12-07 00:00:00 UTC
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Pre-Market Most Active for Dec 7, 2023 : SQQQ, PLTR, TQQQ, ALT, UBER, PFE, GILD, MRK, AMD, NIO, JBLU, AI
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-7-2023-%3A-sqqq-pltr-tqqq-alt-uber-pfe-gild-mrk-amd-nio-jblu
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The NASDAQ 100 Pre-Market Indicator is up 70.21 to 15,858.26. The total Pre-Market volume is currently 39,237,818 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is -0.15 at $16.37, with 2,061,124 shares traded. This represents a 6.64% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is +0.32 at $17.45, with 1,538,113 shares traded. PLTR's current last sale is 109.06% of the target price of $16.
ProShares UltraPro QQQ (TQQQ) is +0.42 at $42.94, with 1,408,932 shares traded. This represents a 166.71% increase from its 52 Week Low.
Altimmune, Inc. (ALT) is +0.04 at $6.92, with 1,312,522 shares traded. As reported by Zacks, the current mean recommendation for ALT is in the "buy range".
Uber Technologies, Inc. (UBER) is -0.1504 at $59.60, with 1,305,966 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.15. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Pfizer, Inc. (PFE) is +0.08 at $28.87, with 1,143,924 shares traded. PFE's current last sale is 78.03% of the target price of $37.
Gilead Sciences, Inc. (GILD) is unchanged at $79.36, with 1,093,482 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.82. As reported by Zacks, the current mean recommendation for GILD is in the "buy range".
Merck & Company, Inc. (MRK) is -0.25 at $105.38, with 1,073,394 shares traded. As reported by Zacks, the current mean recommendation for MRK is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is +3.53 at $120.35, with 917,522 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
NIO Inc. (NIO) is +0.0803 at $7.83, with 865,295 shares traded. NIO's current last sale is 66.64% of the target price of $11.75.
JetBlue Airways Corporation (JBLU) is +0.39 at $5.12, with 842,311 shares traded. JBLU's current last sale is 89.04% of the target price of $5.75.
C3.ai, Inc. (AI) is -2.88 at $26.28, with 641,132 shares traded. AI's current last sale is 95.56% of the target price of $27.5.
The views and 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 -0.15 at $16.37, with 2,061,124 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024.
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As reported by Zacks, the current mean recommendation for ALT is in the "buy range". Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024.
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The total Pre-Market volume is currently 39,237,818 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024.
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The NASDAQ 100 Pre-Market Indicator is up 70.21 to 15,858.26. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. C3.ai, Inc. (AI) is -2.88 at $26.28, with 641,132 shares traded.
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58372ab1-31c4-4598-9ae5-699f5a027e3b
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714178.0
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2023-12-07 00:00:00 UTC
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Here's Why Investors Should Hold Red Rock Resorts (RRR) Now
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DCOMP
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https://www.nasdaq.com/articles/heres-why-investors-should-hold-red-rock-resorts-rrr-now
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nan
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Red Rock Resorts, Inc. RRR is benefiting from robust spending per visit across its portfolio, strategic project investments and cost-saving initiatives. However, a rise in labor and commodity costs as well as softer casino demand in the Las Vegas operations remain a concern.
The Zacks Rank #3 (Hold) company’s 2023 earnings is expected to witness a decline of 62.9%. However, its 2024 earnings and sales are likely to witness 17.9% and 10.5% growth year over year, respectively.
Let’s delve deeper.
Growth Drivers
The company has witnessed strong spending per visit across its portfolio for some time now. Attributes such as strong and consistent visitation from guests (including a younger demographic), increased spending per visit, more time spent on gaming devices and a return of core customers have been adding to the positives. Also, it reported growth in food and beverage, and hotel segments fueled by higher average checks and strength in the catering business. RRR intends to focus on business optimization and cost-reduction measures to drive growth.
Also, emphasis on expansion of new amenities bodes well. During second-quarter 2023, management announced the opening of Polaris, a high-end casino bar located at Green Valley Ranch Resort, and reported solid customer feedback with respect to the same.
During the third-quarter 2023earnings call RRR announced the successful opening of Stoney's North Forty bar, a new poker room and a new high-limit slot room in its Santa Fe Station property, along with Game On sports bar in its Boulder Station property. Red Rock Resorts also stated its intention to continue its investments in additional amenities, which include the opening of new high-limit slot and table rooms at its Green Valley Ranch properties in later 2023.
On the other hand, its performance continues to benefit from several initiatives, namely, streamlining of operations, optimization of marketing initiatives, and renegotiating vendor and third-party agreements.
Management focuses on divestitures to drive growth. In 2022, it permanently closed its Texas Station, Fiesta Henderson, Fiesta Rancho and Wild West properties. It intends to divest certain land parcels to reposition its real estate portfolio for growth at Station Casinos. In 2022, the company sold approximately 113 acres for $118 million in proceeds.
The stock has risen 4.2% against the industry’s decline of 0.1%.
Image Source: Zacks Investment Research
Concerns
A rise in labor and commodity costs continues to hurt Red Rock Resorts. During the second quarter, it witnessed impacts of inflation, increased energy costs and rising interest rates. It also reported price inflation in ordinary goods and services such as food costs, supplies, energy costs and construction costs.
During the third quarter, food and beverage expenses increased 4.4% year over year to $57.7 million. The company intends to focus on cost controls and price adjustments to counter the same.
Although Red Rock Resorts derives a significant portion of its business from Las Vegas, uncertainty in the economic environment remains a concern. The unemployment rate in the Las Vegas metropolitan region inched down to 5.7% in September 2023 from 5.8% in September 2022.
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. Shares of RCL have surged 107% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates a rise of 57.7% and 187.9%, respectively, from the year-ago levels.
Live Nation Entertainment, Inc. LYV flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have increased 15.5% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS suggests an improvement of 28.6% and 132.8%, respectively, from the prior-year levels.
Skechers U.S.A., Inc. SKX carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 50.3% on average. Shares of SKX have jumped 36.8% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS implies a climb of 8.2% and 44.5%, respectively, from the year-earlier levels.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the 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
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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During second-quarter 2023, management announced the opening of Polaris, a high-end casino bar located at Green Valley Ranch Resort, and reported solid customer feedback with respect to the same. Red Rock Resorts also stated its intention to continue its investments in additional amenities, which include the opening of new high-limit slot and table rooms at its Green Valley Ranch properties in later 2023. Image Source: Zacks Investment Research Concerns A rise in labor and commodity costs continues to hurt Red Rock Resorts.
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Image Source: Zacks Investment Research Concerns A rise in labor and commodity costs continues to hurt Red Rock Resorts. Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Concerns A rise in labor and commodity costs continues to hurt Red Rock Resorts. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates a rise of 57.7% and 187.9%, respectively, from the year-ago levels. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Red Rock Resorts, Inc. RRR is benefiting from robust spending per visit across its portfolio, strategic project investments and cost-saving initiatives. The Zacks Rank #3 (Hold) company’s 2023 earnings is expected to witness a decline of 62.9%. However, its 2024 earnings and sales are likely to witness 17.9% and 10.5% growth year over year, respectively.
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714179.0
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2023-12-07 00:00:00 UTC
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Top 5 Consumer Discretionary Stocks for December
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https://www.nasdaq.com/articles/top-5-consumer-discretionary-stocks-for-december
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The consumer discretionary sector has flourished in 2023. Year to date, out of the 11 broad sectors of the market’s benchmark — the S&P 500 Index — the Consumer Discretionary Select Sector SPDR (XLY) has climbed 32.2%
This sector is generally recognized as being growth-oriented. Notably, growth sectors are highly sensitive to the movement of the market interest rate and are inversely related. We expect this trend to continue for the rest of 2023 as the ongoing quarter is characterized as the holiday season.
The consumer discretionary sector comprises businesses that sell goods and services that are considered non-essential by consumers. These are the products that consumers can avoid without any major consequences to their well-being. In fact, these goods are desirable only if the available income of an individual is sufficient to purchase them.
The fundamentals of the U.S. economy remain strong. The GDP grew at an astonishing 5.1% in third-quarter 2023. Consumer spending remains solid, and the inflation rate has been gradually declining since June 2022.
Our Top Picks
We have narrowed our search to five consumer discretionary stocks that have strong growth potential for December. These stocks have seen positive earnings estimate revision in the past 60 days. Each of our picks carries either a Zacks Rank # 1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Live Nation Entertainment Inc. LYV is benefiting from pent-up demand for live events, robust ticket sales and the sponsorship and advertising business. LYV remains optimistic about its growth prospects in 2023.
For concerts, LYV stated that it has already sold more than 117 million tickets (as of June 2023), up 20% from the 2022 levels. In terms of tickets, LYV is likely to benefit from the market pricing trend. Also, the emphasis on new client and venue additions bodes well.
Zacks Rank #1 Live Nation Entertainment has an expected revenue and earnings growth rate of 28.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 19.2% over the past 30 days.
InterContinental Hotels Group plc IHG owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. IHG also provides the IHG Rewards loyalty program.
IHG operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, EVEN Hotels, HUALUXE, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, avid, Staybridge Suites, Atwell Suites, Candlewood Suites, voco, and Crowne Plaza.
Zacks Rank #2 InterContinental Hotels has an expected revenue and earnings growth rate of 58.3% and 30.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days.
Royal Caribbean Cruises Ltd. RCL has been benefiting from solid demand for cruising and acceleration in booking volumes. RCL’s emphasis on strong pricing (on closer-in-demand) bodes well.
In the third quarter, RCL reported accelerating demand for 2024 sailings. RCL intends to focus on new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins.
Zacks Rank #1 Royal Caribbean Cruises has an expected revenue and earnings growth rate of 57.7% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 30 days.
NIKE Inc. NKE displayed strength over the past year. Continued progress on Consumer Direct Acceleration strategy, compelling product innovation and digital leadership have been drivers of growth. This aided NKE’s retail sales across Nike Direct and wholesale businesses in first-quarter fiscal 2024.
NKE’s digital business has been gaining from robust consumer trends, including momentum in the NIKE mobile app led by improved traffic and increased member buying frequency. Backed by solid consumer momentum, a robust innovation pipeline and strong inventory, management provided a solid outlook for fiscal 2024.
Zacks Rank #2 NIKE has an expected revenue and earnings growth rate of 3.8% and 15.8%, respectively, for the current year (ending May 2024). The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the past 60 days.
Warner Music Group Corp. WMG is a music-based content company. WMG’s operating segment consist Recorded Music and Music Publishing. The Recorded Music segment is involved in the discovery and development of recording artists. The Music Publishing segment owns and acquires rights. WMG operates principally in the United States, the United Kingdom and internationally.
Zacks Rank #2 Warner Music Group has an expected revenue and earnings growth rate of 6% and 23.8%, respectively, for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 6.6% over the past 30 days.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
Intercontinental Hotels Group (IHG) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Warner Music Group Corp. (WMG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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RCL intends to focus on new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins. NKE’s digital business has been gaining from robust consumer trends, including momentum in the NIKE mobile app led by improved traffic and increased member buying frequency. Zacks Rank #2 Warner Music Group has an expected revenue and earnings growth rate of 6% and 23.8%, respectively, for the current year (ending September 2024).
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Image Source: Zacks Investment Research Live Nation Entertainment Inc. LYV is benefiting from pent-up demand for live events, robust ticket sales and the sponsorship and advertising business. Zacks Rank #1 Live Nation Entertainment has an expected revenue and earnings growth rate of 28.6% and more than 100%, respectively, for the current year. Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report Intercontinental Hotels Group (IHG) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank #2 InterContinental Hotels has an expected revenue and earnings growth rate of 58.3% and 30.5%, respectively, for the current year. Zacks Rank #2 Warner Music Group has an expected revenue and earnings growth rate of 6% and 23.8%, respectively, for the current year (ending September 2024). Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report Intercontinental Hotels Group (IHG) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The consumer discretionary sector comprises businesses that sell goods and services that are considered non-essential by consumers. Zacks Rank #2 InterContinental Hotels has an expected revenue and earnings growth rate of 58.3% and 30.5%, respectively, for the current year. Zacks Rank #2 NIKE has an expected revenue and earnings growth rate of 3.8% and 15.8%, respectively, for the current year (ending May 2024).
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2023-12-07 00:00:00 UTC
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Top 5 Mid-Cap Stocks Likely to Turn Large-Cap in 2024
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https://www.nasdaq.com/articles/top-5-mid-cap-stocks-likely-to-turn-large-cap-in-2024
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Wall Street has seen an impressive turnaround in 2023 after a highly disappointing 2022. Year to date, the three major stock indexes — the Dow, the S&P 500 500 and the Nasdaq Composite — have rallied 9%, 19% and 36%, respectively. The mid-cap benchmark — the S&P 400 index — also advanced 7.4% year to date.
Within the mid-cap space, a handful of stocks (market capital > $9 billion< $10 billion) have the potential to become large-cap in 2024. Investment in these stocks with a favorable Zacks Rank should provide handsome returns in 2024.
Why Mid-Cap Stocks?
Investment in mid-cap stocks is often recognized as a good portfolio diversification strategy. These stocks combine the attractive attributes of both small and large-cap stocks. Top-ranked, mid-cap stocks have a high potential to enhance their profitability, productivity, and market share. These may also become over time.
If the economic growth slows down due to any unforeseen internal or external disturbance, mid-cap stocks will be less susceptible to losses than their large-cap counterparts owing to less international exposure.
On the other hand, if the economy continues to thrive, these stocks will gain more than small caps due to established management teams, a broad distribution network, brand recognition and ready access to the capital markets.
Our Top Picks
We have narrowed our search to five mid-caps that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the past 30 days. Finally, each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
DaVita Inc. DVA has been expanding its global presence via its Integrated Kidney Care business. DVA has been generating solid revenues by providing dialysis services. DVA has been opening and acquiring several dialysis centers both within the United States and overseas, which is promising. A strong solvency position is an added plus.
DaVita has an expected revenue and earnings growth rate of 2.7% and 4.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 9.1% over the past 30 days.
XPO Inc. XPO is a provider of asset-based less-than-truckload transportation with proprietary technology that moves goods efficiently. XPO provides freight transportation services in the United States, the rest of North America, France, the United Kingdom, the rest of Europe and internationally. XPO operates in two segments, North American LTL and European Transportation.
XPO has an expected revenue and earnings growth rate of 5.8% and 26%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 11.4% over the past 30 days.
Duolingo Inc. DUOL operates as a mobile learning platform in the United States, China, the United Kingdom, and internationally. DUOL offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. DUOL also provides a digital language proficiency assessment exam.
Duolingo has an expected revenue and earnings growth rate of 29.3% and more than 100%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the past 30 days.
EMCOR Group Inc.’s EME U.S. businesses remained solid backed by strong end-market demand and top-tier execution initiatives. EME is witnessing resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum.
EME’s remaining performance obligations, as of Sep 30, 2023, were $8.64 billion, up 21.7% year over year. Owing to these tailwinds, EME raised its revenues and earnings outlook for 2023.
EMCOR Group has an expected revenue and earnings growth rate of 5% and 1.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.3% over the past 30 days.
Assurant Inc. AIZ is focused on inorganic and organic growth strategies, which bode well for growth. For 2023, AIZ expects adjusted EBITDA, excluding reportable catastrophes, to increase by mid-to high-teens. Growth in Global Housing is being driven by improved performance in Homeowners reflecting higher lender-placed net earned premiums.
Global Lifestyle stands to gain from growth across Connected Living and Global Automotive. AIZ plans to deploy capital, mainly to fund business growth and return capital to shareholders via share buybacks and dividends.
Assurant has an expected revenue and earnings growth rate of 4% and 3.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the past seven days.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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DaVita Inc. (DVA) : Free Stock Analysis Report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
XPO, Inc. (XPO) : 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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On the other hand, if the economy continues to thrive, these stocks will gain more than small caps due to established management teams, a broad distribution network, brand recognition and ready access to the capital markets. DUOL offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. EME is witnessing resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum.
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The Zacks Consensus Estimate for next-year earnings has improved 9.1% over the past 30 days. XPO provides freight transportation services in the United States, the rest of North America, France, the United Kingdom, the rest of Europe and internationally. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report XPO, Inc. (XPO) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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XPO has an expected revenue and earnings growth rate of 5.8% and 26%, respectively, for next year. Duolingo has an expected revenue and earnings growth rate of 29.3% and more than 100%, respectively, for next year. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report XPO, Inc. (XPO) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Within the mid-cap space, a handful of stocks (market capital > $9 billion< $10 billion) have the potential to become large-cap in 2024. Why Mid-Cap Stocks? EME’s remaining performance obligations, as of Sep 30, 2023, were $8.64 billion, up 21.7% year over year.
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2023-12-07 00:00:00 UTC
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Ciena (CIEN) Beats Q4 Earnings and Revenue Estimates
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https://www.nasdaq.com/articles/ciena-cien-beats-q4-earnings-and-revenue-estimates-0
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Ciena (CIEN) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 10.29%. A quarter ago, it was expected that this developer of high-speed networking technology would post earnings of $0.53 per share when it actually produced earnings of $0.59, delivering a surprise of 11.32%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ciena, which belongs to the Zacks Fiber Optics industry, posted revenues of $1.13 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.54%. This compares to year-ago revenues of $971.01 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ciena shares have lost about 10.2% since the beginning of the year versus the S&P 500's gain of 18.5%.
What's Next for Ciena?
While Ciena has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ciena: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $1.02 billion in revenues for the coming quarter and $3.18 on $4.56 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Fiber Optics is currently in the bottom 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Computer and Technology sector, Adobe Systems (ADBE), has yet to report results for the quarter ended November 2023. The results are expected to be released on December 13.
This software maker is expected to post quarterly earnings of $4.13 per share in its upcoming report, which represents a year-over-year change of +14.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Adobe Systems' revenues are expected to be $5.01 billion, up 10.7% from the year-ago quarter.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
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Ciena Corporation (CIEN) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. Another stock from the broader Zacks Computer and Technology sector, Adobe Systems (ADBE), has yet to report results for the quarter ended November 2023. This software maker is expected to post quarterly earnings of $4.13 per share in its upcoming report, which represents a year-over-year change of +14.7%.
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Ciena, which belongs to the Zacks Fiber Optics industry, posted revenues of $1.13 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.54%. The current consensus EPS estimate is $0.50 on $1.02 billion in revenues for the coming quarter and $3.18 on $4.56 billion in revenues for the current fiscal year. Click to get this free report Ciena Corporation (CIEN) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ciena (CIEN) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.68 per share. Ciena, which belongs to the Zacks Fiber Optics industry, posted revenues of $1.13 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.54%. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock.
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This compares to earnings of $0.61 per share a year ago. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock.
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2023-12-07 00:00:00 UTC
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SecureWorks (SCWX) Reports Break-Even Earnings for Q3
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https://www.nasdaq.com/articles/secureworks-scwx-reports-break-even-earnings-for-q3
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SecureWorks (SCWX) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this information security services provider would post a loss of $0.16 per share when it actually produced a loss of $0.10, delivering a surprise of 37.50%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
SecureWorks, which belongs to the Zacks Computers - IT Services industry, posted revenues of $89.36 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 1.57%. This compares to year-ago revenues of $110.94 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
SecureWorks shares have lost about 8.3% since the beginning of the year versus the S&P 500's gain of 18.5%.
What's Next for SecureWorks?
While SecureWorks has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SecureWorks: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.04 on $84.65 million in revenues for the coming quarter and -$0.42 on $359.99 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Computer and Technology sector, Bridgeline Digital, Inc. (BLIN), is yet to report results for the quarter ended September 2023.
This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bridgeline Digital, Inc.'s revenues are expected to be $3.83 million, down 9% from the year-ago quarter.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SecureWorks Corp. (SCWX) : Free Stock Analysis Report
Bridgeline Digital, Inc. (BLIN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SecureWorks (SCWX) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.07. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. One other stock from the broader Zacks Computer and Technology sector, Bridgeline Digital, Inc. (BLIN), is yet to report results for the quarter ended September 2023.
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SecureWorks (SCWX) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.07. SecureWorks, which belongs to the Zacks Computers - IT Services industry, posted revenues of $89.36 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 1.57%. Click to get this free report SecureWorks Corp. (SCWX) : Free Stock Analysis Report Bridgeline Digital, Inc. (BLIN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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SecureWorks (SCWX) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.07. SecureWorks, which belongs to the Zacks Computers - IT Services industry, posted revenues of $89.36 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 1.57%. The current consensus EPS estimate is -$0.04 on $84.65 million in revenues for the coming quarter and -$0.42 on $359.99 million in revenues for the current fiscal year.
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SecureWorks (SCWX) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.07. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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2023-12-07 00:00:00 UTC
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4 Growth Stocks to Buy Ahead of a Strong Year-End Rally
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https://www.nasdaq.com/articles/4-growth-stocks-to-buy-ahead-of-a-strong-year-end-rally
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This week may have been topsy-turvy for the U.S. stock market, but it followed the best five-week stretch for the broader S&P 500 since 2020, per Dow Jones Market Data.
Keeping in mind the magnitude of the rally, it’s evident that there has been some profit-taking this week, leading to a pullback. However, historically, whenever the S&P 500 has registered five weeks of gains, the index has invariably moved northward in the next six-month period.
December, anyhow, has been a favorable month for the stock market, with solid gains widely expected during the latter half of the month. This is because of the Santa Claus rally when the stock market traditionally scales northward in the last five trading sessions of the month.
Moreover, December has always seen solid gains following strong returns in November. Ryan Detrick, Carson Group’s chief market strategist, had said that the S&P 500, on average, jumped 1.8% monthly after growth of 8% or more in the previous month since 1950. The S&P 500, by the way, had already jumped 8.9% in November.
The Dow Jones Market Data further added that if the S&P 500 scales up more than 15% till November, then the index is set to finish December in the positive territory 75% of the time.
Having said that, seasonal trends may not necessarily determine the future stock price movement. But much of the recent strength in the stock market can be attributed to the Federal Reserve’s initiative to curtail its aggressive interest rate hike program amid signs of cooling inflation and a resilient U.S. economy.
Increasing signals from other parts of the world, including the European Central Bank and the Bank of England, that they are done with hiking interest rates also buoyed investors’ sentiment in recent times.
Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply BECN, TopBuild BLD, Journey Medical DERM, and Shift4 Payments FOUR seems prudent.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products. Beacon Roofing Supply currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.8% over the past 60 days. BECN’s expected earnings growth rate for the current year is 8.2%.
TopBuild is an installer and distributor of insulation and other building products to the U.S. construction industry. TopBuild currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.2% over the past 60 days. BLD’s expected earnings growth rate for the current year is 14%.
Journey Medical is a commercial-stage pharmaceutical company. Journey Medical currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 87.5% over the past 60 days. DERM’s expected earnings growth rate for the current year is 90.5%.
Shift4 Payments is a provider of integrated payment processing and technology solutions. Shift4 Payments currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.7% over the past 60 days. FOUR’s expected earnings growth rate for the current year is 110.1%.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
TopBuild Corp. (BLD) : Free Stock Analysis Report
Journey Medical Corporation (DERM) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is because of the Santa Claus rally when the stock market traditionally scales northward in the last five trading sessions of the month. The Dow Jones Market Data further added that if the S&P 500 scales up more than 15% till November, then the index is set to finish December in the positive territory 75% of the time. But much of the recent strength in the stock market can be attributed to the Federal Reserve’s initiative to curtail its aggressive interest rate hike program amid signs of cooling inflation and a resilient U.S. economy.
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Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply BECN, TopBuild BLD, Journey Medical DERM, and Shift4 Payments FOUR seems prudent. Beacon Roofing Supply currently has a Zacks Rank #2 and a Growth Score of A. Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report TopBuild Corp. (BLD) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply BECN, TopBuild BLD, Journey Medical DERM, and Shift4 Payments FOUR seems prudent. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report TopBuild Corp. (BLD) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply BECN, TopBuild BLD, Journey Medical DERM, and Shift4 Payments FOUR seems prudent. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. FOUR’s expected earnings growth rate for the current year is 110.1%.
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9c175ea4-92ba-4166-97b4-fe740a332405
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714184.0
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2023-12-07 00:00:00 UTC
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This Latest News Could Spell Trouble for ChargePoint Stock Investors
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https://www.nasdaq.com/articles/this-latest-news-could-spell-trouble-for-chargepoint-stock-investors
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Electric vehicle (EV) charging network company ChargePoint Holdings (NYSE: CHPT) warned investors in mid-November that its fiscal 2024 third-quarter earnings would be disappointing. That earnings report was just released, and the results were as advertised.
To make the situation seem even more concerning, ChargePoint also replaced its CEO last month, making this the first quarterly report with new CEO Rick Wilmer at the helm. The quarterly results for the period ended Oct. 31 were in line with what ChargePoint pre-announced about three weeks ago.
A sharp turn in the wrong direction
ChargePoint reported a 12% year-over-year decline in revenue and hit the middle of the range it provided in its recent pre-release. That helps explain why the stock didn't react strongly to the news. But the $110 million in quarterly revenue was also a sharp sequential decline from the $150 million reported in the prior quarter. The annual and sequential drops in sales represent a major step back for the largest EV charging network, not named Tesla.
The report itself didn't move ChargePoint stock, largely because shares had already dropped by 33% over the last month. There was good reason for that, too. The declines in both annual and sequential revenue are in stark contrast to the growing sales ChargePoint had been seeing. Consider that revenue soared by 94% in the company's fiscal 2023 period (ended Jan. 31, 2023) and the 65% year-over-year growth in fiscal 2022.
Losses also mounted for ChargePoint, with the company reporting a loss from operations that grew by 85% versus last year. That was partly due to a $42 million impairment charge "to address supply overruns related to product transitions and to better align inventory with current demand."
ChargePoint's sales are dropping, and losses are growing.
Two-pronged headache
Therein lies part of the problem. And that problem doesn't have a great solution. ChargePoint has been counting on the adoption of EVs growing in both North America and Europe. But that growth has slowed for many EV makers planning to challenge Tesla and take some of that company's leading market share.
Legacy automakers are throttling back plans to invest in building new electric models in the wake of a demand slowdown. Even Tesla CEO Elon Musk acknowledged that the economic environment of higher interest rates has impacted consumers' abilities to purchase new EVs. That macroeconomic picture helps explain ChargePoint's declining sales, but another serious headwind just appeared on the horizon.
Several Tesla competitors have negotiated with the EV leader to allow non-Tesla owners to use its Supercharger fast-charging network. Now, ChargePoint is accelerating the production of Tesla-compatible chargers using Tesla's North American Charging Standard (NACS) plugs.
Tesla has also started selling its charging hardware to third parties for the first time. In October, Tesla and BP announced a $100 million deal for the energy company to purchase Tesla's fast-charging equipment. Tesla followed that with another deal to sell its ultra-fast-charging equipment directly to a third party in the U.K.
Still optimistic
Even with those headwinds, ChargePoint management remains optimistic. The new CEO still believes the company will deliver positive non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of calendar year 2024.
The company also still held about $400 million in cash and equivalents on its balance sheet as of Oct. 31. But that cash won't last long if Tesla continues to expand sales of its Superchargers while overall EV sales growth slows.
10 stocks we like better than ChargePoint
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*Stock Advisor returns as of December 4, 2023
Howard Smith has positions in ChargePoint and Tesla. The Motley Fool has positions in and recommends BP and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Electric vehicle (EV) charging network company ChargePoint Holdings (NYSE: CHPT) warned investors in mid-November that its fiscal 2024 third-quarter earnings would be disappointing. That was partly due to a $42 million impairment charge "to address supply overruns related to product transitions and to better align inventory with current demand." The new CEO still believes the company will deliver positive non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of calendar year 2024.
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Electric vehicle (EV) charging network company ChargePoint Holdings (NYSE: CHPT) warned investors in mid-November that its fiscal 2024 third-quarter earnings would be disappointing. Consider that revenue soared by 94% in the company's fiscal 2023 period (ended Jan. 31, 2023) and the 65% year-over-year growth in fiscal 2022. In October, Tesla and BP announced a $100 million deal for the energy company to purchase Tesla's fast-charging equipment.
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Electric vehicle (EV) charging network company ChargePoint Holdings (NYSE: CHPT) warned investors in mid-November that its fiscal 2024 third-quarter earnings would be disappointing. In October, Tesla and BP announced a $100 million deal for the energy company to purchase Tesla's fast-charging equipment. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Howard Smith has positions in ChargePoint and Tesla.
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The report itself didn't move ChargePoint stock, largely because shares had already dropped by 33% over the last month. ChargePoint's sales are dropping, and losses are growing. In October, Tesla and BP announced a $100 million deal for the energy company to purchase Tesla's fast-charging equipment.
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cc70ab2f-d4ff-4ab7-b5c3-6f37d2c03284
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714185.0
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2023-12-07 00:00:00 UTC
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Is the Options Market Predicting a Spike in BGSF Stock?
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-bgsf-stock
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Investors in BGSF, Inc. BGSF need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $5.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for BGSF shares, but what is the fundamental picture for the company? Currently, BGSF is a Zacks Rank #3 (Hold) in the Business - Services industry that ranks in the Top 15% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while two have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 16 cents per share to 8 cents in that period.
Given the way analysts feel about BGSF 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 >>
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BGSF, Inc. (BGSF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. Clearly, options traders are pricing in a big move for BGSF shares, but what is the fundamental picture for the company? Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report BGSF, Inc. (BGSF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors in BGSF, Inc. BGSF 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. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Given the way analysts feel about BGSF right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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7b2c4a66-a5cd-445c-a12d-26485f598194
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714186.0
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2023-12-07 00:00:00 UTC
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NetApp (NTAP) Appears Primed for Uptrend With 49% YTD Growth
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https://www.nasdaq.com/articles/netapp-ntap-appears-primed-for-uptrend-with-49-ytd-growth
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NetApp NTAP witnessed strong momentum this year, with its shares rallying 48.8% year to date compared with S&P 500 composite’s 19.6% growth.
The Sunnyvale, CA-based company provides enterprise storage as well as data management software and hardware products, and services.
NTAP remains well-poised to gain from data-driven digital and cloud transformations. Frequent product launches, and secular trends in generative AI and high-performance computing bode well. Cost cutting efforts and new go-to-market measures, along with focused approach to boost storage and cloud business, are added positives.
The company recently reported second-quarter fiscal 2024 results, wherein both top and bottom-lines surpassed Zacks Consensus Estimate. Non-GAAP earnings per share (EPS) of $1.58 increased 7% year over year. Management anticipated non-GAAP EPS in the range of $1.35-$1.45.
Image Source: Zacks Investment Research
Though revenues of $1.562 billion decreased 6% (down 8% at constant currency basis) year over year, it remained within management’s guidance of $1.455-$1.605 billion band. Weak IT spending was an overhang.
Extensive cost discipline aided margin performance. Non-GAAP gross margin of 72% expanded 570 basis points (bps) from the prior-year levels. Non-GAAP operating income improved 6.6% year over year to $419 million. Non-GAAP operating margin extended 320 bps to 26.8%.
NetApp’s cash, cash equivalents and investments were $2.620 billion. Its long-term debt was $1.991 billion as of Oct 27, 2023. For the fiscal second quarter, the company generated net cash from operations of $135 million and free cash flow of $97 million (free cash flow margin was 6.2%).
Strong balance sheet helps NetApp to continue shareholder-friendly initiatives of dividend payouts. In second-quarter fiscal 2024, it returned $403 million to shareholders as dividend payouts and share repurchases. For fiscal 2023, the company had returned $1.28 billion to shareholders in the form of dividends and share repurchases.
Raised Outlook
Despite soft macroeconomic conditions, management expects strength in product, and hyper-scaler first-party and marketplace services to drive revenues. As a result, NTAP updated its fiscal 2024 revenue guidance.
NetApp now expects revenues to inch down 2% year over year compared with the earlier projection of a decline in mid-to-low single-digit range on a year-over-year basis.
It now forecasts non-GAAP (EPS to be between $6.05 and $6.25 (previous prediction: $5.65 and $5.85).
NetApp anticipates non-GAAP gross margin to be nearly 71% compared with 70% expected earlier. Non-GAAP operating margin is envisioned to be nearly 26% compared with 25% expected earlier.
A Few Near-Term Headwinds
Currently, NetApp’s performance is affected by a muted IT spending environment amid global macroeconomic turbulence. Weakness in public cloud subscription services is likely to remain a headwind in the near term for this Zacks Rank #3 (Hold) stock.
A Look at Estimates
NTAP’s fiscal 2025 revenues are anticipated to rise 3.4% year over year. The company’s earnings are expected to climb 8.6% and 4.6% on a year-over-year basis in fiscal 2024 and 2025, respectively.
Over the past 60 days, EPS estimates for fiscal 2024 have improved 5.9% to $6.07, while the same for fiscal 2025 has risen 3.8% to $6.37.
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cadence’s 2023 EPS has remained unchanged in the past seven days at $5.11. CDNS’ long-term earnings growth rate is 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 4.1%. Shares of CDNS have surged 57.1% in the past year.
The Zacks Consensus Estimate for Adobe’s fiscal 2024 EPS has remained unchanged in the past 30 days at $17.86. ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have gained 79.1% 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.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have jumped 28.1% in the past year.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NetApp, Inc. (NTAP) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cost cutting efforts and new go-to-market measures, along with focused approach to boost storage and cloud business, are added positives. Raised Outlook Despite soft macroeconomic conditions, management expects strength in product, and hyper-scaler first-party and marketplace services to drive revenues. A Few Near-Term Headwinds Currently, NetApp’s performance is affected by a muted IT spending environment amid global macroeconomic turbulence.
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For the fiscal second quarter, the company generated net cash from operations of $135 million and free cash flow of $97 million (free cash flow margin was 6.2%). Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). Click to get this free report NetApp, Inc. (NTAP) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Non-GAAP earnings per share (EPS) of $1.58 increased 7% year over year. Image Source: Zacks Investment Research Though revenues of $1.562 billion decreased 6% (down 8% at constant currency basis) year over year, it remained within management’s guidance of $1.455-$1.605 billion band. Click to get this free report NetApp, Inc. (NTAP) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Management anticipated non-GAAP EPS in the range of $1.35-$1.45. Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). Shares of ADBE have gained 79.1% in the past year.
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c20be43a-d84a-41fd-a87a-bf74d95d171f
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714187.0
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2023-12-07 00:00:00 UTC
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Ollie's Bargain (OLLI) Q3 Earnings Top Estimates, FY23 View Up
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https://www.nasdaq.com/articles/ollies-bargain-olli-q3-earnings-top-estimates-fy23-view-up
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Ollie's Bargain Outlet Holdings, Inc. OLLI reported third-quarter fiscal 2023 results, wherein both the top and bottom lines beat the Zacks Consensus Estimate. Both metrics exhibited year-over-year growth. This Harrisburg, PA-based company also witnessed an uptick in comparable store sales.
Sales and margins exceeded management's expectations, driven by a robust flow of closeout deals, reduced supply-chain costs and sustained effective execution throughout the organization. The exceptional third-quarter results and ongoing business momentum prompted management to lift the fiscal 2023 view.
Here’s How the Top & Bottom Lines Fared
This extreme-value retailer of brand-name merchandise posted adjusted earnings of 51 cents a share, which comfortably beat the Zacks Consensus Estimate of 45 cents and increased meaningfully from 37 cents reported in the year-ago quarter.
Net sales of $480.1 million jumped 14.8% year over year due to a comparable store sales increase and new store unit growth. The top line came ahead of the consensus mark of $471 million and marked the fourth straight beat.
We note that comparable store sales rose 7% in the quarter under discussion compared with the 1.9% increase registered in the prior-year period. The reported figure also fared far better than our expectation of 2.6% growth.
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
Ollie's Bargain Outlet Holdings, Inc. price-consensus-eps-surprise-chart | Ollie's Bargain Outlet Holdings, Inc. Quote
A Look at Margins
The gross profit grew 17.9% to $194.1 million during the quarter. The gross margin expanded 100 basis points to 40.4% due to decreased supply-chain costs, partly offset by lower merchandise margins related to shrink and merchandise mix. We had anticipated 60 basis points of gross margin expansion.
SG&A expenses shot up 13.5% to $141.7 million from the prior-year quarter’s level due to an increase in selling expenses associated with new store openings and higher incentive compensation. As a percentage of net sales, SG&A leveraged 40 basis points to 29.5%. We had expected SG&A expenses to increase 12.4% year over year.
The operating income surged 32.3% to $39.1 million, while the operating margin expanded 100 basis points to 8.1%. Adjusted EBITDA advanced 29.5% to $51.1 million during the quarter under review. The adjusted EBITDA margin increased 120 basis points to 10.6%.
Store Update
During the quarter, Ollie’s Bargain opened 23 new stores, thereby bringing the total count to 505 stores in 30 states at the end of the period. This reflected an increase of 9.1% in the store count on a year-over-year basis. The company plans to open 44 net new stores in fiscal 2023.
Other Financial Aspects
Ollie’s Bargain ended the quarter with cash and cash equivalents of $159.6 million. The company had no borrowings outstanding under its $100 million revolving credit facility and $91.8 million of availability under the facility as of the end of the quarter.
As of Oct 28, 2023, Ollie’s Bargain’s total borrowings (consisting solely of finance lease obligations) were $1.5 million. Inventories, as of the end of the third quarter, increased 1.7% to $532.4 million.
During the quarter, the company incurred capital expenditures of $36.1 million. For fiscal 2023, management projected capital expenditures of $125 million.
During the quarter under discussion, Ollie’s Bargain repurchased 142,453 shares worth $10.8 million. The company had $98.4 million remaining under its share repurchase program. On Nov 30, 2023, the board of directors approved an extension of the current share repurchase program, originally set to conclude on Dec 15, 2023, now extended until Mar 31, 2026.
Guidance
Management now envisions fiscal 2023 net sales between $2.097 billion and $2.104 billion, suggesting an increase from $1.827 billion reported in fiscal 2022. Ollie’s Bargain now anticipates comparable store sales to rise in the band of 5.3-5.6% against the comparable store sales decline of 3% reported last fiscal year.
The company had earlier guided net sales in the band of $2.076-$2.091 billion and comparable store sales growth of 4% to 4.5%.
Ollie’s Bargain envisions the gross margin rate in the bracket of 39.2-39.3% for fiscal 2023. The company had reported a gross margin of 35.9% in the last fiscal year. Ollie’s Bargain now anticipates an operating income in the range of $221-$225 million for fiscal 2023, up from $130 million reported in fiscal 2022.
Management now foresees fiscal 2023 adjusted earnings in the range of $2.77-$2.83 per share, up from the adjusted earnings of $1.62 reported last fiscal. The company had earlier projected adjusted earnings between $2.65 and $2.74 per share.
Shares of this Zacks Rank #3 (Hold) company have advanced 26.3% in the past six months against the industry’s decline of 18.3%.
3 Picks You Can’t Miss Out On
Here, we have highlighted three better-ranked stocks, namely Target TGT, The Kraft Heinz Company KHC and Celsius Holdings CELH.
Target, a general merchandise retailer, currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Target’s current financial-year earnings suggests growth of 38.5% from the year-ago reported numbers. TGT has a trailing four-quarter earnings surprise of 30.8%, on average.
Kraft Heinz, which manufactures and markets food and beverage products, currently has a Zacks Rank #2. KHC has a trailing four-quarter earnings surprise of 9.9%, on average.
The Zacks Consensus Estimate for Kraft Heinz’s current financial-year sales and earnings suggests growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Celsius Holdings, the maker of the leading global fitness drink, CELSIUS, currently carries a Zacks Rank #2. Celsius Holdings has a trailing four-quarter earnings surprise of 110.9%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Target Corporation (TGT) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis 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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Sales and margins exceeded management's expectations, driven by a robust flow of closeout deals, reduced supply-chain costs and sustained effective execution throughout the organization. On Nov 30, 2023, the board of directors approved an extension of the current share repurchase program, originally set to conclude on Dec 15, 2023, now extended until Mar 31, 2026. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
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Ollie's Bargain Outlet Holdings, Inc. OLLI reported third-quarter fiscal 2023 results, wherein both the top and bottom lines beat the Zacks Consensus Estimate. Here’s How the Top & Bottom Lines Fared This extreme-value retailer of brand-name merchandise posted adjusted earnings of 51 cents a share, which comfortably beat the Zacks Consensus Estimate of 45 cents and increased meaningfully from 37 cents reported in the year-ago quarter. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise Ollie's Bargain Outlet Holdings, Inc. price-consensus-eps-surprise-chart | Ollie's Bargain Outlet Holdings, Inc. Quote A Look at Margins The gross profit grew 17.9% to $194.1 million during the quarter. Ollie’s Bargain now anticipates comparable store sales to rise in the band of 5.3-5.6% against the comparable store sales decline of 3% reported last fiscal year. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Net sales of $480.1 million jumped 14.8% year over year due to a comparable store sales increase and new store unit growth. During the quarter under discussion, Ollie’s Bargain repurchased 142,453 shares worth $10.8 million. Management now foresees fiscal 2023 adjusted earnings in the range of $2.77-$2.83 per share, up from the adjusted earnings of $1.62 reported last fiscal.
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714188.0
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2023-12-07 00:00:00 UTC
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Best Growth Stocks to Buy for December 7th
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https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-december-7th-1
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 7th:
8x8 EGHT: This company which is the provider of the world's first Communications Cloud, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.0% over the last 60 days.
8x8 Inc Price and Consensus
8x8 Inc price-consensus-chart | 8x8 Inc Quote
8x8 has a PEG ratio of 0.28 compared with 0.70 for the industry. The company possesses a Growth Score of A.
8x8 Inc PEG Ratio (TTM)
8x8 Inc peg-ratio-ttm | 8x8 Inc Quote
DaVita DVA: This company which is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD), carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days.
DaVita Inc. Price and Consensus
DaVita Inc. price-consensus-chart | DaVita Inc. Quote
DaVita has a PEG ratio of 0.71 compared with 1.39 for the industry. The company possesses a Growth Score of A.
DaVita Inc. PEG Ratio (TTM)
DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote
Barrett Business Services BBSI: This company which provides light industrial, clerical and technical employees to a wide range of businesses through staff leasing, contract staffing, site management and temporary staffing arrangements, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 days.
Barrett Business Services, Inc. Price and Consensus
Barrett Business Services, Inc. price-consensus-chart | Barrett Business Services, Inc. Quote
Barrett Business Services has a PEG ratio of 1.12 compared with 1.49 for the industry. The company possesses a Growth Score of B.
Barrett Business Services, Inc. PEG Ratio (TTM)
Barrett Business Services, Inc. peg-ratio-ttm | Barrett Business Services, Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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DaVita Inc. (DVA) : Free Stock Analysis Report
Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
8x8 Inc (EGHT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 7th: 8x8 EGHT: This company which is the provider of the world's first Communications Cloud, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.0% over the last 60 days. 8x8 Inc PEG Ratio (TTM) 8x8 Inc peg-ratio-ttm | 8x8 Inc Quote DaVita DVA: This company which is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD), carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days. The company possesses a Growth Score of A. DaVita Inc. PEG Ratio (TTM) DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote Barrett Business Services BBSI: This company which provides light industrial, clerical and technical employees to a wide range of businesses through staff leasing, contract staffing, site management and temporary staffing arrangements, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 days.
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The company possesses a Growth Score of A. DaVita Inc. PEG Ratio (TTM) DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote Barrett Business Services BBSI: This company which provides light industrial, clerical and technical employees to a wide range of businesses through staff leasing, contract staffing, site management and temporary staffing arrangements, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 days. The company possesses a Growth Score of B. Barrett Business Services, Inc. PEG Ratio (TTM) Barrett Business Services, Inc. peg-ratio-ttm | Barrett Business Services, Inc. Quote See the full list of top ranked stocks here. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report 8x8 Inc (EGHT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Growth Score of A. DaVita Inc. PEG Ratio (TTM) DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote Barrett Business Services BBSI: This company which provides light industrial, clerical and technical employees to a wide range of businesses through staff leasing, contract staffing, site management and temporary staffing arrangements, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 days. Barrett Business Services, Inc. Price and Consensus Barrett Business Services, Inc. price-consensus-chart | Barrett Business Services, Inc. Quote Barrett Business Services has a PEG ratio of 1.12 compared with 1.49 for the industry. The company possesses a Growth Score of B. Barrett Business Services, Inc. PEG Ratio (TTM) Barrett Business Services, Inc. peg-ratio-ttm | Barrett Business Services, Inc. Quote See the full list of top ranked stocks here.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 7th: 8x8 EGHT: This company which is the provider of the world's first Communications Cloud, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.0% over the last 60 days. The company possesses a Growth Score of A. DaVita Inc. PEG Ratio (TTM) DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote Barrett Business Services BBSI: This company which provides light industrial, clerical and technical employees to a wide range of businesses through staff leasing, contract staffing, site management and temporary staffing arrangements, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 days. The company possesses a Growth Score of B. Barrett Business Services, Inc. PEG Ratio (TTM) Barrett Business Services, Inc. peg-ratio-ttm | Barrett Business Services, Inc. Quote See the full list of top ranked stocks here.
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51262d09-700b-4ce2-a9c8-818e56e1b359
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714189.0
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2023-12-07 00:00:00 UTC
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Tyler (TYL) Workforce Suite Sees Growing Adoption by Fed Agencies
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DCOMP
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https://www.nasdaq.com/articles/tyler-tyl-workforce-suite-sees-growing-adoption-by-fed-agencies
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Tyler Technologies, Inc. TYL is witnessing the growing selection and implementation of its Workforce Case Management suite by federal government agencies. This suite includes Equal Employment Opportunity (“EEO”), Military Employment Opportunity, Anti-Harassment, Reasonable Accommodation, Labor Relations and Civil Rights solutions.
The increased adaptability of this solution suite is primarily attributable to U.S. President Joe Biden’s Jun 25, 2021 executive order on maintaining diversity, equity, inclusion and accessibility in the federal workforce. This requires the creation of a government-wide diversity, equity, inclusion and accessibility plan and agency-specific strategic plans.
Since then, federal agencies have been trying to ensure that they have the right system in place to capture, manage and report on complaints across the full workforce case management spectrum. Being the only vendor to provide a comprehensive suite of Workforce Case Management Applications, Tyler has grabbed several deals from different federal agencies over the past year.
Tyler possesses significant expertise in delivering workforce case management applications within the federal sector. Presently, the company handles 80% of federal EEO claims through its software.
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems. TYL has been consistently enhancing its core software applications and expanding complementary product and service portfolios to cater to the changing needs of customers while keeping pace with technological advancements.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Portfolio Expansion via Acquisitions
TYL has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically. In August 2023, the company completed the acquisition of Orlando, FL-headquartered Computing System Innovations, LLC (“CSI”) to enhance its electronic filing and redaction solutions.
Tyler integrated CSI’s artificial intelligence (AI)-driven redaction and indexing solution — Intellidact Platform — into its eFile & Serve solution portfolio to automate data entry and document processing options for its clientele. It is also likely to leverage CSI’s AI and automation solution across its other verticals like Municipal & Schools, Property & Recording and Platform Solutions.
In March 2023, TYL revealed that it acquired Safeground Analytics — a Massachusetts-based analytics company offering exemplary real estate appraisals and assessments for states, counties and municipalities. With this buyout, the company has been able to accelerate its appraisal service businesses by bringing a team of experienced appraisers, analysts, statisticians, economists, computer scientists and assessors from Safeground Analytics.
However, Tyler’s near-term growth prospects are likely to be affected by a delay in the procurement process and a lengthy sales cycle amid ongoing macroeconomic uncertainties. Also, many customers are expected to face budget pressures in the near term.
Additionally, high investments in R&D initiatives are likely to hurt margins. Intensifying competition from the likes of Oracle, SAP and Workday might keep Tyler’s pricing under pressure and negatively impact its gross margin.
Zacks Rank & Stocks to Consider
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have rallied 25.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 56.2% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 7.4% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 21 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 55.4% YTD.
Only $1 to See All Zacks' Buys and Sells
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Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Intel Corporation (INTC) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Tyler Technologies, Inc. (TYL) : 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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The increased adaptability of this solution suite is primarily attributable to U.S. President Joe Biden’s Jun 25, 2021 executive order on maintaining diversity, equity, inclusion and accessibility in the federal workforce. TYL has been consistently enhancing its core software applications and expanding complementary product and service portfolios to cater to the changing needs of customers while keeping pace with technological advancements. However, Tyler’s near-term growth prospects are likely to be affected by a delay in the procurement process and a lengthy sales cycle amid ongoing macroeconomic uncertainties.
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The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Tyler Technologies, Inc. Price and Consensus Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote Portfolio Expansion via Acquisitions TYL has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically. The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). The consensus estimate for 2023 earnings has increased 21 cents to $1.53 per share in the past 30 days. See Stocks Now >> Want the latest recommendations from Zacks Investment Research?
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8e092cae-a42e-41aa-900d-40f64d42001c
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714190.0
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2023-12-07 00:00:00 UTC
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ANALYSIS-Global small-cap stocks lure bargain hunters after sluggish 2023
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https://www.nasdaq.com/articles/analysis-global-small-cap-stocks-lure-bargain-hunters-after-sluggish-2023
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By Samuel Indyk and Lewis Krauskopf
LONDON/NEW YORK, Dec 7 (Reuters) - Shares of smaller companies that have lagged for most of 2023 are drawing investors on both sides of the Atlantic, as they weigh the benefits from an expected fall in interest rates next year against worries about a possible economic downturn.
In the U.S., the small-cap Russell 2000 .RUT has jumped over 13% from its October lows, while the MSCI Europe Small and Mid Cap Index .MIEU000D0PEU is up 12% since late last month.
That underperformance has helped make small caps look cheaper than their larger peers when compared to their historical valuations.
U.S. small caps are near their lowest-ever relative values to large caps, according to LSEG Datastream. The small-cap S&P 600 .SPCY trades at 13.7 times forward earnings against its long-term average of 18 and well below the S&P 500's current level of 19.
European small caps trade at a forward price-to-earnings ratio of 12.2, below the 15-year average of 15 and below the broader MSCI Europe's current P/E of 12.3.
"We're approaching 2-1/2 years of relative underperformance and if you look at the valuation multiples of small caps now, they're very, very cheap," said Rory Stokes, portfolio manager on the European equities team at Janus Henderson.
Those valuations have boosted the appeal of small caps in a multi-asset rally sparked by bets central banks globally will begin cutting rates in 2024 if inflation keeps falling. Recent data has shown U.S., European and British consumer prices cooling more than forecast.
Markets are pricing in over 125 basis points of rate cuts each by the Federal Reserve and European Central Bank next year following a hiking cycle that has lifted borrowing costs to their highest in decades, while benchmark government bond yields also have dropped.
That is good news for small caps, investors said.
Elevated borrowing costs can be more damaging to smaller companies, which tend to be more reliant on shorter-term debt that is now being financed at higher costs after years of rock-bottom interest rates.
The recent fall in Treasury yields "loosened the noose" around many small-cap companies, said Jack Ablin, chief investment officer at Cresset Capital.
U.S. small caps have outperformed large ones during periods of increasing growth and slowing inflation, with the Russell 2000 up an 25.2% on an annualized basis versus 17.3% for the S&P 500, a Morningstar Wealth analysis of data since the 1970s showed.
The firm is overweight small-caps in its U.S. equity fund, as cheap valuations give the stocks "some margin of safety," said Marta Norton, Morningstar Wealth's chief investment officer in the Americas. "That valuation opportunity has just expanded relative to large cap."
Small-cap earnings also are expected to pick up. Russell 2000 companies' earnings are forecast to increase about 30% next year after falling 11.5% in 2023, LSEG data showed.
Recent small-cap stock winners include wireless audio company Sonos SONO.O, which has jumped over 40% in the past month, while Victoria's Secret & Co VSCO.N has gained 33% during that period, and Britain's Hotel Chocolat HOTC.L soared after the company agreed earlier this month to a takeover offer from confectionary giant Mars Inc.
Reasons for caution remain. While hopes of a so-called economic soft landing have supported stocks, some investors worry the rate hikes will bring a recession in 2024.
That would likely hurt small caps, which tend to suffer disproportionately in downturns. Since 1980, the Russell 2000 has lagged the S&P 500 by an average of about four percentage points in the six months after the economic cycle has peaked, ahead of a recession, data from Strategas showed.
"There is a legitimate case to be made that the economy could struggle sometime in the next 12 to 18 months," said Bryant VanCronkhite, senior portfolio manager at Allspring Global Investments. "If that's the case, the valuations we see today are probably not going to support small caps."
Mabrouk Chetouane, Natixis IM's head ofglobal marketstrategy, believes that thinning year-end trading, recession worries and central banks' insistence that it is too early to consider cutting rates argue for avoiding small caps.
"If we have a negative shock, then volatility will be more elevated in segments of the market where liquidity is weak," Chetouane said. "From a tactical point of view, it's not the time to buy or add small caps."
Large cap stocks vs small cap stocks https://tmsnrt.rs/3T67QKK
(Reporting by Lewis Krauskopf and Samuel Indyk; Editing by Ira Iosebashvili and Richard Chang)
((Ira.Iosebashvili@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Samuel Indyk and Lewis Krauskopf LONDON/NEW YORK, Dec 7 (Reuters) - Shares of smaller companies that have lagged for most of 2023 are drawing investors on both sides of the Atlantic, as they weigh the benefits from an expected fall in interest rates next year against worries about a possible economic downturn. Markets are pricing in over 125 basis points of rate cuts each by the Federal Reserve and European Central Bank next year following a hiking cycle that has lifted borrowing costs to their highest in decades, while benchmark government bond yields also have dropped. Mabrouk Chetouane, Natixis IM's head ofglobal marketstrategy, believes that thinning year-end trading, recession worries and central banks' insistence that it is too early to consider cutting rates argue for avoiding small caps.
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The firm is overweight small-caps in its U.S. equity fund, as cheap valuations give the stocks "some margin of safety," said Marta Norton, Morningstar Wealth's chief investment officer in the Americas. Russell 2000 companies' earnings are forecast to increase about 30% next year after falling 11.5% in 2023, LSEG data showed. Large cap stocks vs small cap stocks https://tmsnrt.rs/3T67QKK (Reporting by Lewis Krauskopf and Samuel Indyk; Editing by Ira Iosebashvili and Richard Chang) ((Ira.Iosebashvili@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U.S. small caps are near their lowest-ever relative values to large caps, according to LSEG Datastream. Those valuations have boosted the appeal of small caps in a multi-asset rally sparked by bets central banks globally will begin cutting rates in 2024 if inflation keeps falling. Large cap stocks vs small cap stocks https://tmsnrt.rs/3T67QKK (Reporting by Lewis Krauskopf and Samuel Indyk; Editing by Ira Iosebashvili and Richard Chang) ((Ira.Iosebashvili@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"We're approaching 2-1/2 years of relative underperformance and if you look at the valuation multiples of small caps now, they're very, very cheap," said Rory Stokes, portfolio manager on the European equities team at Janus Henderson. Russell 2000 companies' earnings are forecast to increase about 30% next year after falling 11.5% in 2023, LSEG data showed. While hopes of a so-called economic soft landing have supported stocks, some investors worry the rate hikes will bring a recession in 2024.
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6c9fb6cc-aeed-47e5-909b-1b23d1e0fd5b
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714191.0
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2023-12-07 00:00:00 UTC
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Looking for the Next Big Thing? Add This AI Biotech to Your Watch List Right Now
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DCOMP
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https://www.nasdaq.com/articles/looking-for-the-next-big-thing-add-this-ai-biotech-to-your-watch-list-right-now
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What's more cool than a biotech company developing cutting-edge cures for intractable maladies? A biotech company developing cutting-edge cures using artificial intelligence (AI), of course. Exscientia (NASDAQ: EXAI) is one such business undertaking this effort, and it's worth adding to your watch list today.
Off to a running start
Much like the other biotech businesses hoping to use AI for drug development, Exscientia believes that its AI-based platform can shorten development timelines, reduce failure rates in pre-clinical and clinical trials, and lower costs for drug makers.
Solid evidence supporting those claims may be a ways off and might not be available for years, as all of its pipeline programs are in either pre-clinical stages or in early-stage clinical trials. That means they have a long way to go before the possibility of approval and commercialization.
But if the advancements that information technology delivered in terms of bolstering pharmaceutical discovery and design are any indication of what this next tech revolution could do, the benefits AI could eventually bring to the process could be significant.
Exscientia's flagship program is cancer treatment candidate GTAEXS617. It's currently in phase 1/2 trials to investigate its usefulness in treating non-small cell lung cancer, colorectal cancer, breast cancer, and ovarian cancer, among other indications. In total, management thinks that its addressable market could be roughly 75,000 patients annually in the U.S. alone, under the right conditions.
These trials are expected to wrap up sometime in mid-2028. There's not yet any data to analyze, but if -- and it's a big if -- the candidate is ultimately commercialized for just a couple of the indications on the table right now, it could potentially rake in billions in sales annually.
This company is making the right friends
Exscientia doesn't yet have any sources of revenue outside of the occasional cash injection it earns from reaching a collaboration milestone. Therefore, it's in a race against time to get one of its first treatments out the door before it runs out of money, and before its partners get to thinking that they'll have better success rates on their collaboration programs by working with a competitor instead. For that reason alone, this is a risky biotech stock.
Nonetheless, at this early stage, Exscientia has plenty of resources on hand, and it could also access even more in the future via its collaborations. According to management, the company's $448 million in cash, equivalents, fixed-term bank deposits, and short-term investments should be enough to cover its costs through the start of 2026. Based on its trailing 12-month operating expenses of $208 million, that estimate looks correct.
German pharma giant Merck Kommanditgesellschaft auf Aktien (which is not the same as the U.S.-based drugmaker with a very similar name) is among the most notable businesses collaborating with Exscientia, hoping to make use of its AI-based drug discovery methods for three projects in oncology and immunology. If the partnership goes as planned and those three programs end up being commercialized, the biotech could net as much as $674 million in milestone payments, $113 million of which would be disbursed for meeting discovery-stage goals. For now, it only has a $20 million upfront payment in hand, and it might take years before that changes, assuming it ever does.
Exscientia also has ongoing agreements to co-develop drugs with Bristol Myers Squibb and Sanofi. While it doesn't appear to have a privileged status with either of the two giants, as cash outlays and direct investment have remained limited so far, that could change with time, especially if its platform technologies yield the drug discovery leads that those partners are seeking.
So on the basis of the above, should you buy this stock today? Probably not. The company is a long way from becoming self-sustaining, and it may not ever get there. Still, its balance sheet and roster of benefactors are positive early signs that could become the pillars of any future successes.
Add Exscientia to your watch list and keep track of it for the next couple of years. If the AI in its platform can do what management believes, more pharma players and biotechs will likely come knocking. That would be a signal that the technology is mature enough to be worth making an investment.
10 stocks we like better than Exscientia Plc
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Exscientia Plc wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 29, 2023
Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But if the advancements that information technology delivered in terms of bolstering pharmaceutical discovery and design are any indication of what this next tech revolution could do, the benefits AI could eventually bring to the process could be significant. German pharma giant Merck Kommanditgesellschaft auf Aktien (which is not the same as the U.S.-based drugmaker with a very similar name) is among the most notable businesses collaborating with Exscientia, hoping to make use of its AI-based drug discovery methods for three projects in oncology and immunology. While it doesn't appear to have a privileged status with either of the two giants, as cash outlays and direct investment have remained limited so far, that could change with time, especially if its platform technologies yield the drug discovery leads that those partners are seeking.
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What's more cool than a biotech company developing cutting-edge cures for intractable maladies? Off to a running start Much like the other biotech businesses hoping to use AI for drug development, Exscientia believes that its AI-based platform can shorten development timelines, reduce failure rates in pre-clinical and clinical trials, and lower costs for drug makers. German pharma giant Merck Kommanditgesellschaft auf Aktien (which is not the same as the U.S.-based drugmaker with a very similar name) is among the most notable businesses collaborating with Exscientia, hoping to make use of its AI-based drug discovery methods for three projects in oncology and immunology.
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Off to a running start Much like the other biotech businesses hoping to use AI for drug development, Exscientia believes that its AI-based platform can shorten development timelines, reduce failure rates in pre-clinical and clinical trials, and lower costs for drug makers. 10 stocks we like better than Exscientia Plc When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Alex Carchidi has no position in any of the stocks mentioned.
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Off to a running start Much like the other biotech businesses hoping to use AI for drug development, Exscientia believes that its AI-based platform can shorten development timelines, reduce failure rates in pre-clinical and clinical trials, and lower costs for drug makers. Exscientia's flagship program is cancer treatment candidate GTAEXS617. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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35d7adde-392f-4334-859d-0d458b76d1a1
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714192.0
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2023-12-07 00:00:00 UTC
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Dollar General (DG) Tops Q3 Earnings and Revenue Estimates
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DCOMP
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https://www.nasdaq.com/articles/dollar-general-dg-tops-q3-earnings-and-revenue-estimates
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Dollar General (DG) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $2.33 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this discount retailer would post earnings of $2.49 per share when it actually produced earnings of $2.13, delivering a surprise of -14.46%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Dollar General, which belongs to the Zacks Retail - Discount Stores industry, posted revenues of $9.69 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 0.50%. This compares to year-ago revenues of $9.46 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Dollar General shares have lost about 45.6% since the beginning of the year versus the S&P 500's gain of 18.5%.
What's Next for Dollar General?
While Dollar General has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Dollar General: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.74 on $9.76 billion in revenues for the coming quarter and $7.43 on $38.56 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Discount Stores is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Costco (COST), has yet to report results for the quarter ended November 2023. The results are expected to be released on December 14.
This warehouse club operator is expected to post quarterly earnings of $3.44 per share in its upcoming report, which represents a year-over-year change of +11%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level.
Costco's revenues are expected to be $57.62 billion, up 5.8% from the year-ago quarter.
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Dollar General Corporation (DG) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. This warehouse club operator is expected to post quarterly earnings of $3.44 per share in its upcoming report, which represents a year-over-year change of +11%.
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Dollar General, which belongs to the Zacks Retail - Discount Stores industry, posted revenues of $9.69 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 0.50%. The current consensus EPS estimate is $1.74 on $9.76 billion in revenues for the coming quarter and $7.43 on $38.56 billion in revenues for the current fiscal year. Click to get this free report Dollar General Corporation (DG) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Dollar General (DG) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.19 per share. Dollar General, which belongs to the Zacks Retail - Discount Stores industry, posted revenues of $9.69 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 0.50%. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock.
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Dollar General (DG) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $2.33 per share a year ago. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock.
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624b7fc3-f227-457d-81c7-7d824a098426
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714193.0
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2023-12-07 00:00:00 UTC
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IHS seeks to scupper rival's deal on MTN Nigeria towers
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DCOMP
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https://www.nasdaq.com/articles/ihs-seeks-to-scupper-rivals-deal-on-mtn-nigeria-towers
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nan
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By Nqobile Dludla
JOHANNESBURG, Dec 7 (Reuters) - IHS Holding IHS.N has offered improved commercial terms to MTN Nigeria MTNN.LG for the lease of 2,500 towers it lost to American Tower Corporation (ATC) AMT.N, saying the move would prevent network disruption in Africa's most populous country.
MTN Nigeria, owned by South Africa's MTN Group MTNJ.J announced in September that the leasing on 2,500 sites due to expire in 2024 and 2025 was awarded to ATC Nigeria after a bidding process.
The mobile network operator said the deal would diversify its towers portfolio and unlock significant network cost efficiencies.
IHS Towers Chairman and CEO Sam Darwish told Reuters that these towers represent only a small fraction of his company's total tenancies but it is willing to match ATC's terms.
"IHS has offered improved commercial terms on the 2,500 towers to close the gap (between the offers) as our main aim is to prevent network disruption in Nigeria," he said, without providing details on the terms.
MTN said the agreement with ATC is final and that MTN would continue to engage constructively with IHS on further opportunities that arise, including renewal of its other sites.
"Our preference is always for bilateral renewal, subject to competitive pricing and terms. In this instance the ATC proposal was superior," the operator told Reuters.
IHS owns 16,000 towers in Nigeria, of which 14,600 are leased by MTN. About 13% of MTN's portfolio sits with ATC, while 80% sits with IHS.
There is mounting fear that the cell-tower operator may lose more contracts as MTN Nigeria reviews other tower contracts coming up for renewal. The remaining tower leases with IHS expire between 2025 and 2029. The majority of those expire in 2029.
IHS is also embroiled in a shareholder dispute with MTN Group, its largest shareholder with a 26% stake, along with French financial investor Wendel and activist investor Blackwells Capital over governance issues.
Darwish said that IHS continues to engage with Wendel and MTN on the issues.
(Reporting by Nqobile Dludla Editing by David Goodman)
((nqobile.dludla@thomsonreuters.com; +27103461066;))
The views and 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 Nqobile Dludla JOHANNESBURG, Dec 7 (Reuters) - IHS Holding IHS.N has offered improved commercial terms to MTN Nigeria MTNN.LG for the lease of 2,500 towers it lost to American Tower Corporation (ATC) AMT.N, saying the move would prevent network disruption in Africa's most populous country. MTN Nigeria, owned by South Africa's MTN Group MTNJ.J announced in September that the leasing on 2,500 sites due to expire in 2024 and 2025 was awarded to ATC Nigeria after a bidding process. IHS is also embroiled in a shareholder dispute with MTN Group, its largest shareholder with a 26% stake, along with French financial investor Wendel and activist investor Blackwells Capital over governance issues.
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By Nqobile Dludla JOHANNESBURG, Dec 7 (Reuters) - IHS Holding IHS.N has offered improved commercial terms to MTN Nigeria MTNN.LG for the lease of 2,500 towers it lost to American Tower Corporation (ATC) AMT.N, saying the move would prevent network disruption in Africa's most populous country. MTN Nigeria, owned by South Africa's MTN Group MTNJ.J announced in September that the leasing on 2,500 sites due to expire in 2024 and 2025 was awarded to ATC Nigeria after a bidding process. "IHS has offered improved commercial terms on the 2,500 towers to close the gap (between the offers) as our main aim is to prevent network disruption in Nigeria," he said, without providing details on the terms.
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By Nqobile Dludla JOHANNESBURG, Dec 7 (Reuters) - IHS Holding IHS.N has offered improved commercial terms to MTN Nigeria MTNN.LG for the lease of 2,500 towers it lost to American Tower Corporation (ATC) AMT.N, saying the move would prevent network disruption in Africa's most populous country. MTN Nigeria, owned by South Africa's MTN Group MTNJ.J announced in September that the leasing on 2,500 sites due to expire in 2024 and 2025 was awarded to ATC Nigeria after a bidding process. "IHS has offered improved commercial terms on the 2,500 towers to close the gap (between the offers) as our main aim is to prevent network disruption in Nigeria," he said, without providing details on the terms.
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By Nqobile Dludla JOHANNESBURG, Dec 7 (Reuters) - IHS Holding IHS.N has offered improved commercial terms to MTN Nigeria MTNN.LG for the lease of 2,500 towers it lost to American Tower Corporation (ATC) AMT.N, saying the move would prevent network disruption in Africa's most populous country. MTN Nigeria, owned by South Africa's MTN Group MTNJ.J announced in September that the leasing on 2,500 sites due to expire in 2024 and 2025 was awarded to ATC Nigeria after a bidding process. Darwish said that IHS continues to engage with Wendel and MTN on the issues.
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f3b490ce-6041-478d-a2bd-70ac9ce349ab
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714194.0
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2023-12-07 00:00:00 UTC
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A Bull Market Is Coming: 1 Stock to Buy on the Dip and 1 to Avoid Like the Plague
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DCOMP
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-1-stock-to-buy-on-the-dip-and-1-to-avoid-like-the-plague-1
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A bull market always follows a bearish one, and so the best way to benefit when the market is down is to buy stocks that can soar when the bull period returns.
With the S&P 500 up some 20% so far this year, it's no stretch to say that a bull market is coming. It's a great time to buy top stocks at low prices before they start soaring, but it's important to know the difference between undervalued stocks and stocks that are cheap because pessimism is appropriate.
With that in mind, I'm going to recommend an undervalued stock to buy and a cheap stock to avoid, both in the food industry.
The IPO stock you didn't notice
There were a lot of initial public offerings (IPO) in 2021. In fact, it was a record year, with more than 1,000 IPOs. To put that into perspective, 2020 itself was a record IPO year with 480. This year, there have been 148 so far. A few stocks from 2021 caught investor attention quickly, but you can be forgiven for not noticing some of stocks with great potential that faded next to the hype of others.
Toast (NYSE: TOST) stock surged when it went public, but as with many IPO stocks, especially from that inauspicious year, it tanked soon after. It's been rough since then as high-growth, unprofitable stocks fell out of favor with the market last year. But Toast has continued to demonstrate robust growth and improving profitability, and investors should take a closer look at this beaten-down stock.
Toast markets a software-as-a-service (SaaS) platform for the restaurant industry. It provides everything a restaurant needs, including hardware and software, menu options, delivery options, payment options, and more. It positions itself as the go-to source for the restaurant industry, which is its competitive edge against its biggest competitor, Block's Square seller's business.
Restaurant growth has persevered despite inflation, and Toast gets a bite of all the growth from its client base. Investors love SaaS companies like Toast because they have sticky recurring revenue -- clients pay a regular fee so long as they remain clients. As Toast increases its client base and offers more services and solutions, revenue is almost guaranteed to keep growing. Its annualized recurring revenue run rate increased 40% year over year as of the end of the third quarter.
Plus, Toast added 6,500 new locations to its platform, bringing the total to nearly 100,000. This scale is leading to improved profits, which is what you want to see for a growing company. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) turned positive and are growing, and its net loss shrank from $98 million in last year's third quarter to $31 million in the same period this year.
Image source: Toast.
Toast stock trades at a price-to-sales ratio of 2.2, which looks like a bargain price for a stock with massive growth potential.
The IPO stock you did notice
Beyond Meat (NASDAQ: BYND) did catch investor attention when it went public in 2019, and it rose rapidly before falling off a cliff. The meat alternative brand hasn't caught on with its consumers the way investors initially had hoped, and sales have been declining.
One problem is the macro headwinds of inflation, which are impacting many food and retail brands. Customers are simply conserving their money and switching down to cheap brands instead of indulging in expensive alternatives.
But Beyond Meat is also struggling with massive competition from other brands and a concept that hasn't taken off. Management positioned the company to target meat eaters, who just aren't all that interested in giving up meat, and health advocates don't find meat alternatives all that healthy.
Add to this that costs are rising, and Beyond Meat is not only posting a net loss and an operating loss but also a gross loss and negative gross margin. In the 2023 third quarter, sales fell almost 9% from last year in the quarter, and gross profit margin was -9.6%. Third-quarter performance was worse than expected.
Beyond Meat stock trades at a price-to-sales ratio of 1.4, or much lower than Toast's. But don't be misled by what looks like a value trap. Beyond Meat stock is cheap because of its dire outlook.
Don't get me wrong, there's always the contrary argument and the chance for a turnaround. Management is cutting expenses all around and trying to drive growth through pricing action and messaging about health, and the company is demonstrating better performance in its international markets than in its U.S. market. Those trends could become meaningful to company operations.
But investors are better served by investing in cheap stocks that are demonstrating high growth now and that can become profitable at scale, like Toast.
10 stocks we like better than Toast
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Toast wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 29, 2023
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat and 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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But Toast has continued to demonstrate robust growth and improving profitability, and investors should take a closer look at this beaten-down stock. It positions itself as the go-to source for the restaurant industry, which is its competitive edge against its biggest competitor, Block's Square seller's business. The IPO stock you did notice Beyond Meat (NASDAQ: BYND) did catch investor attention when it went public in 2019, and it rose rapidly before falling off a cliff.
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Its annualized recurring revenue run rate increased 40% year over year as of the end of the third quarter. Add to this that costs are rising, and Beyond Meat is not only posting a net loss and an operating loss but also a gross loss and negative gross margin. In the 2023 third quarter, sales fell almost 9% from last year in the quarter, and gross profit margin was -9.6%.
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It's a great time to buy top stocks at low prices before they start soaring, but it's important to know the difference between undervalued stocks and stocks that are cheap because pessimism is appropriate. Toast (NYSE: TOST) stock surged when it went public, but as with many IPO stocks, especially from that inauspicious year, it tanked soon after. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jennifer Saibil has no position in any of the stocks mentioned.
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This year, there have been 148 so far. The meat alternative brand hasn't caught on with its consumers the way investors initially had hoped, and sales have been declining. Management is cutting expenses all around and trying to drive growth through pricing action and messaging about health, and the company is demonstrating better performance in its international markets than in its U.S. market.
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837907bc-eb3e-4f86-82e3-e066c3a480df
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714195.0
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2023-12-07 00:00:00 UTC
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Best Value Stock to Buy for December 7th
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DCOMP
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https://www.nasdaq.com/articles/best-value-stock-to-buy-for-december-7th
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Here is the stock with buy rank and strong value characteristics for investors to consider today, December 7th:
Ryerson RYI: This services company that processes and distributes metals, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.1% over the last 60 days.
Ryerson Holding Corporation Price and Consensus
Ryerson Holding Corporation price-consensus-chart | Ryerson Holding Corporation Quote
Ryerson has a price-to-earnings ratio (P/E) of 8.19 compared with 12.80 for the industry. The company possesses a Value Score of A.
Ryerson Holding Corporation PE Ratio (TTM)
Ryerson Holding Corporation pe-ratio-ttm | Ryerson Holding Corporation Quote
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Ryerson Holding Corporation (RYI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here is the stock with buy rank and strong value characteristics for investors to consider today, December 7th: Ryerson RYI: This services company that processes and distributes metals, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.1% over the last 60 days. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more.
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Ryerson Holding Corporation Price and Consensus Ryerson Holding Corporation price-consensus-chart | Ryerson Holding Corporation Quote Ryerson has a price-to-earnings ratio (P/E) of 8.19 compared with 12.80 for the industry. The company possesses a Value Score of A. Ryerson Holding Corporation PE Ratio (TTM) Ryerson Holding Corporation pe-ratio-ttm | Ryerson Holding Corporation Quote See the full list of top ranked stocks here. Click to get this free report Ryerson Holding Corporation (RYI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here is the stock with buy rank and strong value characteristics for investors to consider today, December 7th: Ryerson RYI: This services company that processes and distributes metals, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.1% over the last 60 days. Ryerson Holding Corporation Price and Consensus Ryerson Holding Corporation price-consensus-chart | Ryerson Holding Corporation Quote Ryerson has a price-to-earnings ratio (P/E) of 8.19 compared with 12.80 for the industry. The company possesses a Value Score of A. Ryerson Holding Corporation PE Ratio (TTM) Ryerson Holding Corporation pe-ratio-ttm | Ryerson Holding Corporation Quote See the full list of top ranked stocks here.
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Here is the stock with buy rank and strong value characteristics for investors to consider today, December 7th: Ryerson RYI: This services company that processes and distributes metals, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.1% over the last 60 days. The company possesses a Value Score of A. Ryerson Holding Corporation PE Ratio (TTM) Ryerson Holding Corporation pe-ratio-ttm | Ryerson Holding Corporation Quote See the full list of top ranked stocks here. Learn more about the Value score and how it is calculated here.
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0ea2e311-8a4c-489f-b123-3a7ff12833d3
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714196.0
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2023-12-07 00:00:00 UTC
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East West Bancorp (EWBC) Rides on Rates, Weak Asset Quality Ails
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DCOMP
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https://www.nasdaq.com/articles/east-west-bancorp-ewbc-rides-on-rates-weak-asset-quality-ails
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nan
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East West Bancorp EWBC remains well-poised for growth on decent loan balances and higher interest rates. However, elevated operating expenses and deteriorating credit quality are concerns.
East West Bancorp is focused on improving revenues. Its primary source of revenues, net interest income (NII), witnessed a CAGR of 11.5% over the last six years (2017-2022), mainly driven by a rise in loan balances. The decent demand for loans and higher interest rates are expected to keep supporting NII. We project the company's NII to witness a CAGR of 4.6% by 2025. Management expects NII to increase 12-15% in 2023.
With the Federal Reserve expected to keep interest rates high in the near term, EWBC's net interest margin (NIM) is anticipated to improve in the quarters ahead, while rising funding costs might weigh on it. In 2022, NIM witnessed a year-over-year rise to 3.45%, with the uptrend continuing in the first nine months of 2023. Per our estimates, NIM will increase to 3.60% in 2023.
East West Bancorp’s capital distribution activities seem impressive. In January 2023, the company hiked its quarterly dividend by 20%. The company also has a share repurchase plan in place. As of Sep 30, 2023, $254 million remained available under the buyback authorization. After pausing buybacks for more than a year, EWBC intends to resume the same in the fourth quarter of 2023. Given a solid capital position and earnings strength, the company’s capital distribution plan looks sustainable.
In the past six months, shares of this Zacks Rank #3 (Hold) company have jumped 24.5%, outperforming the industry's 15.1% rally.
Image Source: Zacks Investment Research
Weakening credit quality is a major headwind for EWBC. Provision for credit losses has witnessed a CAGR of 9.7% over the five years ended 2022, with the uptrend continuing in the first nine months of 2023. We expect to see a similar rise in the coming quarters on a deteriorating macroeconomic outlook. Per our estimates, provision for credit losses will witness a CAGR of 31.2% in the three years ended 2025.
However, EWBC continues to record a rise in non-interest expenses over the past several years. The metric has recorded a CAGR of 5.4% over the last five years (2017-2022). The increase was mainly due to a rise in compensation and employee benefit costs. Expenses are expected to remain elevated due to an increase in headcount, inflationary pressure and investments in technology to improve non-interest income. Per our estimates, total non-interest expenses will rise 16.9% in 2023, 6.4% in 2024 and 3.8% in 2025.
Banks Worth a Look
A couple of top-ranked stocks from the banking space are WSFS Financial Corporation WSFS and Byline Bancorp BY.
Earnings estimates for WSFS have remained unchanged for 2023 over the past 30 days at $4.47. The company’s shares have gained 2.5% over the past six months. WSFS Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Byline Bancorp’s earnings estimates have moved 1.4% north for the current year at $2.83 over the past 30 days. In six months’ time, BY’s shares have gained 11.2%. The company carries a Zacks Rank #2 at present.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report
WSFS Financial Corporation (WSFS) : Free Stock Analysis Report
Byline Bancorp, Inc. (BY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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East West Bancorp EWBC remains well-poised for growth on decent loan balances and higher interest rates. Its primary source of revenues, net interest income (NII), witnessed a CAGR of 11.5% over the last six years (2017-2022), mainly driven by a rise in loan balances. Expenses are expected to remain elevated due to an increase in headcount, inflationary pressure and investments in technology to improve non-interest income.
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East West Bancorp EWBC remains well-poised for growth on decent loan balances and higher interest rates. Its primary source of revenues, net interest income (NII), witnessed a CAGR of 11.5% over the last six years (2017-2022), mainly driven by a rise in loan balances. Click to get this free report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report Byline Bancorp, Inc. (BY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Its primary source of revenues, net interest income (NII), witnessed a CAGR of 11.5% over the last six years (2017-2022), mainly driven by a rise in loan balances. With the Federal Reserve expected to keep interest rates high in the near term, EWBC's net interest margin (NIM) is anticipated to improve in the quarters ahead, while rising funding costs might weigh on it. Click to get this free report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report Byline Bancorp, Inc. (BY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Its primary source of revenues, net interest income (NII), witnessed a CAGR of 11.5% over the last six years (2017-2022), mainly driven by a rise in loan balances. However, EWBC continues to record a rise in non-interest expenses over the past several years. The company’s shares have gained 2.5% over the past six months.
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9adc9ac0-e20e-4312-b2fa-d966ab274878
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714197.0
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2023-12-07 00:00:00 UTC
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Dollar General tops quarterly results as more shoppers turn to its stores
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DCOMP
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https://www.nasdaq.com/articles/dollar-general-tops-quarterly-results-as-more-shoppers-turn-to-its-stores
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nan
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By Granth Vanaik
Dec 7 (Reuters) - Dollar General DG.N posted a smaller-than-expected drop in quarterly sales and beat profit estimates on Thursday, as more shoppers turned to its stores for cheaper groceries and other essentials amid sticky inflation pinching household budgets.
Shares of the company, down 45% so far this year, were up more than 4% in premarket trading after it also reaffirmed its full-year sales and profit forecasts.
Dollar General, which in October re-appointed former CEO Todd Vasos for a second stint, in a move to stabilize its struggling business, has already trimmed its annual sales and profit forecasts for a third time this year.
After several earnings misses and lowered forecasts, Dollar General reiterating its outlook suggests that the company is finally reaching a bottom for earnings for 2023, Truist Securities analyst Scot Ciccarelli wrote in a note.
Discount store operators in recent quarters have been struggling with a shift in shopper preferences for essentials over general merchandise, while they face a stiff competition from larger retailers such as Walmart WMT.N.
To counter this, Dollar General has been taking measures to keep prices low on everyday staples as well as offering discounts and promotions to clear excess stock.
Last week, rival Dollar Tree DLTR.O trimmed its annual sales forecast on weaker spending from lower-income households.
Dollar General's total merchandise inventories in the third quarter declined 1.8% year-on-year. But gross margins fell 147 basis points, as it grappled with a rise in retail shrink, where inventory is either lost, damaged or stolen.
Same-store sales fell 1.3% for the quarter, compared with LSEG estimates of a 2.08% drop.
It posted a per-share profit of $1.26, versus analysts' expectations of $1.19.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shilpi Majumdar)
((Granth.Vanaik@thomsonreuters.com | X : https://twitter.com/Vanaik_Granth;))
The views and 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 Granth Vanaik Dec 7 (Reuters) - Dollar General DG.N posted a smaller-than-expected drop in quarterly sales and beat profit estimates on Thursday, as more shoppers turned to its stores for cheaper groceries and other essentials amid sticky inflation pinching household budgets. Dollar General, which in October re-appointed former CEO Todd Vasos for a second stint, in a move to stabilize its struggling business, has already trimmed its annual sales and profit forecasts for a third time this year. Discount store operators in recent quarters have been struggling with a shift in shopper preferences for essentials over general merchandise, while they face a stiff competition from larger retailers such as Walmart WMT.N.
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By Granth Vanaik Dec 7 (Reuters) - Dollar General DG.N posted a smaller-than-expected drop in quarterly sales and beat profit estimates on Thursday, as more shoppers turned to its stores for cheaper groceries and other essentials amid sticky inflation pinching household budgets. Dollar General, which in October re-appointed former CEO Todd Vasos for a second stint, in a move to stabilize its struggling business, has already trimmed its annual sales and profit forecasts for a third time this year. Last week, rival Dollar Tree DLTR.O trimmed its annual sales forecast on weaker spending from lower-income households.
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By Granth Vanaik Dec 7 (Reuters) - Dollar General DG.N posted a smaller-than-expected drop in quarterly sales and beat profit estimates on Thursday, as more shoppers turned to its stores for cheaper groceries and other essentials amid sticky inflation pinching household budgets. Dollar General, which in October re-appointed former CEO Todd Vasos for a second stint, in a move to stabilize its struggling business, has already trimmed its annual sales and profit forecasts for a third time this year. After several earnings misses and lowered forecasts, Dollar General reiterating its outlook suggests that the company is finally reaching a bottom for earnings for 2023, Truist Securities analyst Scot Ciccarelli wrote in a note.
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By Granth Vanaik Dec 7 (Reuters) - Dollar General DG.N posted a smaller-than-expected drop in quarterly sales and beat profit estimates on Thursday, as more shoppers turned to its stores for cheaper groceries and other essentials amid sticky inflation pinching household budgets. Dollar General, which in October re-appointed former CEO Todd Vasos for a second stint, in a move to stabilize its struggling business, has already trimmed its annual sales and profit forecasts for a third time this year. Discount store operators in recent quarters have been struggling with a shift in shopper preferences for essentials over general merchandise, while they face a stiff competition from larger retailers such as Walmart WMT.N.
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a08fe405-3760-42ac-a490-856d80666796
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714198.0
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2023-12-07 00:00:00 UTC
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US STOCKS-Futures mixed as payrolls data eyed for policy cues
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DCOMP
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https://www.nasdaq.com/articles/us-stocks-futures-mixed-as-payrolls-data-eyed-for-policy-cues
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Dec 7 (Reuters) - Futures tracking the Dow and the S&P 500 indexes were subdued on Thursday as caution prevailed ahead of the monthly payrolls data due later in the week, while Nasdaq futures were propped up by a rise in Google shares.
Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year.
Traders have nearly fully priced in the likelihood of the Fed keeping interest rates unchanged at its meeting next week, with 61% betting on a rate cut as soon as March 2024, according to the CME Group's FedWatch tool.
However, some analysts have warned that markets have been too optimistic about rate cuts and also said the upcoming jobs report will be crucial in determining the chances of a soft landing - where the Fed manages to avert a recession.
"U.S. jobs numbers tomorrow and central bank meetings next week could inform the market if it has got carried away with the level of rate cuts which are now being priced in for 2024," Russ Mould, investment director at AJ Bell, wrote in a note.
The Labor Department's report is expected to show non-farm payrolls increased by 180,000 jobs last month after rising by 150,000 in October.
Another report due at 8:30 a.m. ET is expected to show initial jobless claims ticked up to 222,000 for the week ended Dec. 2, compared with 218,000 in the prior week.
Meanwhile, comments from Bank of Japan Governor Kazuo Ueda added to growing speculation that the central bank could soon shift away from its ultra-easy monetary policy.
At 7:02 a.m. ET, Dow e-minis 1YMcv1 were down 75 points, or 0.21%, S&P 500 e-minis EScv1 were down 0.25 points, or 0.01%, and Nasdaq 100 e-minis NQcv1 were up 30 points, or 0.19%.
Shares of Google-parent AlphabetGOOGL.O were up 2.9% in premarket trading, a day after the release of its most advanced artificial intelligence model. Other megacap stocks were mixed.
Among other major movers, Advanced Micro DevicesAMD.Ogained 2.2% before the bell, a day after the chipmaker estimated there was a $45 billion market for its data center artificial intelligence processors this year.
GameStopGME.N tumbled 7.3% after the videogame retailer missed estimates for quarterly revenue, hurt by rising competition.
Bristol-Myers SquibbBMY.N added 1.2% after the drugmaker announced an additional $3 billion share buyback program.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Saumyadeb Chakrabarty and Anil D'Silva)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. However, some analysts have warned that markets have been too optimistic about rate cuts and also said the upcoming jobs report will be crucial in determining the chances of a soft landing - where the Fed manages to avert a recession. "U.S. jobs numbers tomorrow and central bank meetings next week could inform the market if it has got carried away with the level of rate cuts which are now being priced in for 2024," Russ Mould, investment director at AJ Bell, wrote in a note.
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By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - Futures tracking the Dow and the S&P 500 indexes were subdued on Thursday as caution prevailed ahead of the monthly payrolls data due later in the week, while Nasdaq futures were propped up by a rise in Google shares. Among other major movers, Advanced Micro DevicesAMD.Ogained 2.2% before the bell, a day after the chipmaker estimated there was a $45 billion market for its data center artificial intelligence processors this year. (Reporting by Amruta Khandekar and Shristi Achar A; Editing by Saumyadeb Chakrabarty and Anil D'Silva) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - Futures tracking the Dow and the S&P 500 indexes were subdued on Thursday as caution prevailed ahead of the monthly payrolls data due later in the week, while Nasdaq futures were propped up by a rise in Google shares. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. "U.S. jobs numbers tomorrow and central bank meetings next week could inform the market if it has got carried away with the level of rate cuts which are now being priced in for 2024," Russ Mould, investment director at AJ Bell, wrote in a note.
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By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - Futures tracking the Dow and the S&P 500 indexes were subdued on Thursday as caution prevailed ahead of the monthly payrolls data due later in the week, while Nasdaq futures were propped up by a rise in Google shares. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. "U.S. jobs numbers tomorrow and central bank meetings next week could inform the market if it has got carried away with the level of rate cuts which are now being priced in for 2024," Russ Mould, investment director at AJ Bell, wrote in a note.
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7fed161d-e6c9-42c6-9e91-713d82889ee9
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714199.0
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2023-12-07 00:00:00 UTC
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ExxonMobil Adds Another $3 Billion to a Plan That Could Pay Big Dividends by 2030
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DCOMP
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https://www.nasdaq.com/articles/exxonmobil-adds-another-%243-billion-to-a-plan-that-could-pay-big-dividends-by-2030
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nan
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ExxonMobil (NYSE: XOM) currently makes most of its money producing carbon-spewing fossil fuels. However, that could change by the end of this decade.
The oil company continues ramping up spending on projects to reduce emissions and build out several lower-emissions businesses. These investments could start paying off by 2030. Here's a look at ExxonMobil's lower-carbon strategy, which could create a lot of value for shareholders in the coming years.
Boosting its lower-carbon bet
ExxonMobil recently provided an update to its corporate plan. A key aspect of its strategy is reducing emissions (both those it produces and from its customers). The oil giant now plans to invest more than $20 billion in lower-emissions opportunities. That's a $3 billion increase from last year and the third time the company has increased its lower-carbon spending plan since launching the strategy three years ago.
The company is spreading this investment across several opportunities. About half the capital will go toward reducing its corporate emissions as it aims to reach net zero emissions from its Permian Basin assets by 2030. It's also accelerating Pioneer Natural Resources' time frame to achieve net zero in the region by 15 years to 2035. Exxon also aims to reduce its global methane emissions by 70%-80% by 2030 while striving to reach net zero emissions for its global operations by 2050.
In addition to cutting its own emissions, Exxon is building several businesses to help reduce third-party emissions. It's investing the other half of its capital into emerging lower-carbon technologies like lithium, hydrogen, biofuels, and carbon capture and storage.
The company estimates these businesses could reduce global emissions by more than 50 million metric tons annually by 2030. That's equivalent to replacing 17.5 million gas-powered cars with electric vehicles (EVs).
Good for the environment and shareholders
Exxon is a very disciplined investor. It's not spending all this money to be a good corporate citizen -- it's investing this capital because it believes it can earn a strong return. The company estimates that its investments to build out lower-carbon solutions will generate returns of around 15%.
While that's lower than the returns it can earn from its oil and gas business (about 30%), that's still a solid return. Meanwhile, some projects will achieve even higher returns. (Exxon has a dozen biofuel projects under development that should deliver returns of more than 20%.)
The energy giant has made a lot of progress on its lower-carbon energy strategy over the past year. It enhanced its carbon capture and storage capabilities by acquiring Denbury Resources in a $4.9 billion deal. That acquisition provided the company with the country's largest carbon dioxide pipeline network.
Exxon believes that providing carbon capture and storage solutions could become a multibillion-dollar annual revenue stream for the company. Further, this income would be very stable since it would come from long-term contracts, which would help mute some of the volatility of its oil and gas businesses.
The company also unveiled plans to become a leading lithium producer by 2030. Exxon acquired land in Arkansas that holds significant lithium deposits and plans to start producing the key mineral for EV batteries from the state by 2027. It's also evaluating other lithium opportunities around the world. By 2030, the company hopes to produce enough lithium to supply the needs of 1 million EVs per year.
Adding multiple new fuel sources
Exxon continues to ramp up its investments in lower-carbon solutions by adding another $3 billion to its plan. This strategy could pay off in the coming years by enabling the company to build out several lower-carbon businesses that generate solid returns.
Those platforms could become more meaningful growth drivers in the future. That enhances Exxon's long-term investment thesis by putting the oil company in a better position to thrive in a lower-carbon world.
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Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's investing the other half of its capital into emerging lower-carbon technologies like lithium, hydrogen, biofuels, and carbon capture and storage. Exxon believes that providing carbon capture and storage solutions could become a multibillion-dollar annual revenue stream for the company. Exxon acquired land in Arkansas that holds significant lithium deposits and plans to start producing the key mineral for EV batteries from the state by 2027.
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The oil company continues ramping up spending on projects to reduce emissions and build out several lower-emissions businesses. Adding multiple new fuel sources Exxon continues to ramp up its investments in lower-carbon solutions by adding another $3 billion to its plan. This strategy could pay off in the coming years by enabling the company to build out several lower-carbon businesses that generate solid returns.
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That's a $3 billion increase from last year and the third time the company has increased its lower-carbon spending plan since launching the strategy three years ago. This strategy could pay off in the coming years by enabling the company to build out several lower-carbon businesses that generate solid returns. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Matthew DiLallo has no position in any of the stocks mentioned.
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The oil company continues ramping up spending on projects to reduce emissions and build out several lower-emissions businesses. The company estimates that its investments to build out lower-carbon solutions will generate returns of around 15%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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3ec6f364-5d52-4bd0-b324-a1e6d1d54dde
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