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714700.0
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2023-12-06 00:00:00 UTC
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Why You Should Add Blue Owl Capital (OBDC) to Your Portfolio
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DCOMP
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https://www.nasdaq.com/articles/why-you-should-add-blue-owl-capital-obdc-to-your-portfolio
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nan
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nan
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Blue Owl Capital Corporation OBDC is well-poised to grow on the back of portfolio growth and a high-interest rate environment, which is boosting its investment income. Its strategic acquisitions enhance business strength.
Blue Owl Capital — with a market cap of $5.7 billion — is a specialty finance company that lends funds to U.S. middle market companies. Courtesy of solid prospects, this stock is worth buying at the moment.
Zacks Rank & Price Performance
OBDC currently sports a Zacks Rank #1 (Strong Buy). In the past year, the stock has gained 20.4% compared with the industry’s growth of 6%.
Image Source: Zacks Investment Research
Rising Estimates
The Zacks Consensus Estimate for OBDC’s 2023 earnings is pegged at $1.91 per share, which remained stable in the past week. The estimate indicates a 35.5% year-over-year increase. Blue Owl Capital beat on earnings in all the last four quarters, with an average surprise of 3.4%.
The consensus mark for current-year revenues stands at $1.6 billion, suggesting a 30.4% rise from the prior-year reported number. Our estimate indicates a significant increase in interest income, which is likely to support the top-line growth.
Key Drivers
We expect the company’s interest income to rise nearly 28.7% year over year in 2023. As a significant portion of its assets are floating in nature, the high-interest rate environment is projected to drive its investment income in 2023. Our estimate for this year’s total investment income signals 30% year-over-year growth. The company expects repayment activity to increase as the rate environment stabilizes, thereby resulting in improved income for OBDC and enabling it to pursue new opportunities.
The company’s focus on increasing shareholder value is commendable. Apart from providing regular dividends, Blue Owl Capital also offers a quarterly supplemental dividend. Its dividend yield of 9% is significantly higher than the industry average of 2.1%.
OBDC possesses a diversified portfolio with balanced weightage in different industries. This is expected to keep the company on its growth path, even in tough times. Its investments in Senior Secured loans enable it to avoid the impacts of volatility.
However, its rising expenses on the back of higher interest costs will constrain bottom-line growth. We expect total operating expenses to jump 26.4% this year. Also, its return on equity of 12.1% is lower than the industry average of 15.3%. Nevertheless, we believe that a systematic and strategic plan of action will drive OBDC’s growth in the long term.
Other Stocks to Consider
Some other top-ranked stocks from the broader Finance space are Primerica, Inc. PRI, Reinsurance Group of America, Incorporated RGA and Aflac Incorporated AFL. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Primerica’s current-year earnings indicates a 39.9% year-over-year increase. Furthermore, the consensus estimate for PRI’s revenues in 2023 suggests 3.2% year-over-year growth.
The Zacks Consensus Estimate for Reinsurance Group of America’s current-year earnings has improved 3.4% in the past 30 days. The consensus mark for RGA’s current-year earnings and revenues indicates 36% and 10.1% year-over-year growth, respectively.
The consensus mark for Aflac’s current-year earnings indicates an 18.2% year-over-year increase. The Zacks Consensus Estimate for AFL’s current-year earnings has improved 1.1% in the past 30 days.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Aflac Incorporated (AFL) : Free Stock Analysis Report
Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
Primerica, Inc. (PRI) : Free Stock Analysis Report
Blue Owl Capital Corporation (OBDC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Blue Owl Capital Corporation OBDC is well-poised to grow on the back of portfolio growth and a high-interest rate environment, which is boosting its investment income. As a significant portion of its assets are floating in nature, the high-interest rate environment is projected to drive its investment income in 2023. The company expects repayment activity to increase as the rate environment stabilizes, thereby resulting in improved income for OBDC and enabling it to pursue new opportunities.
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Image Source: Zacks Investment Research Rising Estimates The Zacks Consensus Estimate for OBDC’s 2023 earnings is pegged at $1.91 per share, which remained stable in the past week. Other Stocks to Consider Some other top-ranked stocks from the broader Finance space are Primerica, Inc. PRI, Reinsurance Group of America, Incorporated RGA and Aflac Incorporated AFL. Click to get this free report Aflac Incorporated (AFL) : Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report Blue Owl Capital Corporation (OBDC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Blue Owl Capital Corporation OBDC is well-poised to grow on the back of portfolio growth and a high-interest rate environment, which is boosting its investment income. Image Source: Zacks Investment Research Rising Estimates The Zacks Consensus Estimate for OBDC’s 2023 earnings is pegged at $1.91 per share, which remained stable in the past week. Click to get this free report Aflac Incorporated (AFL) : Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report Blue Owl Capital Corporation (OBDC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Blue Owl Capital Corporation OBDC is well-poised to grow on the back of portfolio growth and a high-interest rate environment, which is boosting its investment income. Our estimate for this year’s total investment income signals 30% year-over-year growth. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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38984810-a410-4593-b186-aa8a1f819234
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714701.0
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2023-12-06 00:00:00 UTC
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Better Stock Buy: Shopify vs. Amazon
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DCOMP
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https://www.nasdaq.com/articles/better-stock-buy%3A-shopify-vs.-amazon
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nan
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nan
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Don't call it a comeback, but e-commerce is finally a growth sector again. Investors avoided the industry thanks to a demand slump in late 2022 into early 2023 following huge gains during the pandemic.
Sales are rising again now, though, and that boost is helping stocks like Amazon (NASDAQ: AMZN) and Shopify (NYSE: SHOP) recover some lost ground. Both stocks are valued at a discount to where they were during the height of the pandemic, but which one is the better fit for your portfolio? Let's dive right in.
Buy Amazon for the services
In the long list of reasons why an investor might want to own Amazon's stock, e-commerce likely doesn't crack the top 5. More exciting factors supporting the business today include its services segment, which is becoming more valuable thanks to artificial intelligence (AI) tech. The AWS platform is still early on its growth curve, too, with many more years of gains ahead as businesses transition to cloud-based infrastructures.
Amazon isn't growing nearly as quickly as Shopify, to be sure. Amazon sales this year are projected to be roughly flat while most Wall Street pros expect an increase of over 20% for marketplace platform specialist Shopify.
Zoom into Amazon's services segment, and that picture changes, though. This division is responsible for over half of sales right now and is expanding much more quickly than the e-commerce unit. Amazon's service business is highly profitable and delivers cash flow that can be directed toward high-return growth investments. As a result, the stock could generate great returns as the operating profit margin breaks free from the low single-digit range in the coming years.
Buy Shopify for the innovation
Shopify stock offers a similarly strong outlook for rising profit margins and cash flow. Sure, you don't get the safety that comes with Amazon's over $500 billion of annual sales. But in exchange for that increased risk, there's potential to benefit from major improvements in Shopify's business over the coming years.
The business looks much different than it did just a year ago, after all. Shopify recently exited the logistics and fulfillment niche, which immediately reduced costs and allowed the company to focus on higher return areas around its platform services.
Merchants love the wider services offerings, which include big new revenue lines like payments processing, as illustrated by its surging subscription revenue. Investors are right to be excited about where Shopify's business is headed as it capitalizes on the software-as-a-service selling model in the coming years.
The better price
The biggest risk facing investors is just paying too high a price for these well-positioned businesses. That's more of a concern for Shopify, which is valued at 14 times annual sales. A growth stock investor could own tech giant Microsoft for a cheaper premium than that.
Amazon is priced at 2.7 times sales today, which is near its 2023 high. Yet investors were paying over 4 times sales before the pandemic struck.
That discount seems to make the tech giant a preferable choice here. You get exposure to excellent growth niches and rising profitability with Amazon. But you won't need to take on the risk associated with Shopify's less-established business. For most investors, then, Amazon is the better stock to buy today.
10 stocks we like better than Amazon
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 Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 29, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Demitri Kalogeropoulos has positions in Amazon and Shopify. The Motley Fool has positions in and recommends Amazon and Shopify. 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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Amazon sales this year are projected to be roughly flat while most Wall Street pros expect an increase of over 20% for marketplace platform specialist Shopify. As a result, the stock could generate great returns as the operating profit margin breaks free from the low single-digit range in the coming years. Shopify recently exited the logistics and fulfillment niche, which immediately reduced costs and allowed the company to focus on higher return areas around its platform services.
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Amazon's service business is highly profitable and delivers cash flow that can be directed toward high-return growth investments. Buy Shopify for the innovation Shopify stock offers a similarly strong outlook for rising profit margins and cash flow. See the 10 stocks *Stock Advisor returns as of November 29, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Sales are rising again now, though, and that boost is helping stocks like Amazon (NASDAQ: AMZN) and Shopify (NYSE: SHOP) recover some lost ground. Buy Amazon for the services In the long list of reasons why an investor might want to own Amazon's stock, e-commerce likely doesn't crack the top 5. See the 10 stocks *Stock Advisor returns as of November 29, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Buy Amazon for the services In the long list of reasons why an investor might want to own Amazon's stock, e-commerce likely doesn't crack the top 5. Buy Shopify for the innovation Shopify stock offers a similarly strong outlook for rising profit margins and cash flow. For most investors, then, Amazon is the better stock to buy today.
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ad97d0d8-8a39-494f-87ba-1645cb03cc3b
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714702.0
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2023-12-06 00:00:00 UTC
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The 3 Best EV Stocks to Buy in December
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DCOMP
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https://www.nasdaq.com/articles/the-3-best-ev-stocks-to-buy-in-december
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In a strong sign that the U.S. electric-vehicle market is not dead yet and is thriving, Ford (NYSE:F) sold a record number of its F-150 Lightning electric SUVs in November. Specifically, the sales of the EV soared 113% year-over-year in November to 4,393 vehicles, the company reported. Also noteworthy is that the automaker’s total EV sales jumped 43% year-over-year last month to a robust total of 8,958 EVs.
The latter mark represented another record for Ford. Moreover, research firm Atlas Public Policy recently predicted that EVs’ share of new U.S. passenger vehicle sales would reach 9% in 2023, up from 7.3% last year. Finally, Atlas expects annual U.S. EV sales to exceed 1 million for the first time this year, coming in at 1.3 million to 1.4 million.
So, with these developments in mind, here are three top stocks to buy for investors who want to exploit the thriving U.S. EV market.
Rivian (RIVN)
Source: The Bold Bureau / Shutterstock.com
After Tesla (NASDAQ:TSLA) revealed the specs on its Cybertruck, Elektrek, a news website that focuses on the electrification of transportation, wrote that “Tesla’s botched Cybertruck event is good news for Rivian, other EV truck makers.”
Elektrek noted that the Cybertruck will be sold for roughly double the amount that it was originally supposed to cost, while its payload, towing capacity, and range will all be around 30% below the levels that were previously promised. (Cybertruck buyers can increase their range to close to the promised 500 miles, but to do so, they will have to add batteries to their trucks’ beds).
That is great news for Rivian (NASDAQ:RIVN), whose R1T truck was the second-highest-selling electric truck in the U.S. in the first 11 months of 2023, coming in only slightly behind Ford’s F150 Lightning.
In September, there was speculation that pre-orders for the Cybetruck had reached the 2 million level. Now, amid widespread disappointment about the EV specs, tens of thousands of those reservation holders will likely buy Rivian’s R1T instead of the Cybetruck.
Xpeng (XPEV)
Source: Koshiro K / Shutterstock
The sales growth of Chinese EV startup Xpeng (NASDAQ:XPEV) continues to be impressive. Last month, its deliveries soared 245% versus November 2022 to 20,041, while its EV sales have increased month-over-month “for the past 10 consecutive months.”
Moreover, its G6 EV has become China’s most popular SUV, costing 200,000-250,000 Chinese yuan (USD 28,000 to 35,000).
Also importantly, the company has launched a 7-seat multi-purpose vehicle at a capacity level that is fairly unique in China and other markets. Moreover, the X9 MPV has 17 anti-drag features, a large 21.4-inch (entertainment) display in the second row of passenger seats, and “active rear-wheel steering.” A reviewer says the EV is “a good looker” and has up to 496 horsepower.
Finally, as I’ve pointed out in past columns, Xpev has some of the most impressive ADAS capabilities in the world.
EVgo (EVGO)
Source: shutterstock.com/Larich
EV charging operator EVgo (NASDAQ:EVGO) recently unveiled an ambitious plan to build out a huge, national network of fast EV chargers in partnership with General Motors (NYSE: GM) and Pilot Travel Centers, owned by Warren Buffett. Pilot operates travel centers featuring gas pumps and food and beverage stores.
This initiative will significantly accelerate EVgo’s impressive growth by the middle of 2024.
By the end of this year, the partnership expects to be operating fast chargers at 25+ locations, while that total is expected to soar to 200+ locations by the end of next year. Ultimately, “the network will include up to 2,000 high-power fast charging stalls at up to 500 Pilot and Flying J travel centers across the U.S., connecting urban and rural communities,” EVgo reported.
The venture will include special benefits for the owners of GM EVs, “including the ability to reserve a charger and discounts on charging.” As a result, I believe that a high percentage of the large and growing number of GM EV owners will utilize EVgo’s chargers at these locations.
As I noted in a past column, EVgo reported stellar third-quarter results on Nov., 8, featuring a year-over-year revenue gain of 234%.
On the date of publication, Larry Ramer held long positions in RIVN, XPEV, and EVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post The 3 Best EV Stocks to Buy in December 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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Moreover, the X9 MPV has 17 anti-drag features, a large 21.4-inch (entertainment) display in the second row of passenger seats, and “active rear-wheel steering.” A reviewer says the EV is “a good looker” and has up to 496 horsepower. Ultimately, “the network will include up to 2,000 high-power fast charging stalls at up to 500 Pilot and Flying J travel centers across the U.S., connecting urban and rural communities,” EVgo reported. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips In a strong sign that the U.S. electric-vehicle market is not dead yet and is thriving, Ford (NYSE:F) sold a record number of its F-150 Lightning electric SUVs in November. EVgo (EVGO) Source: shutterstock.com/Larich EV charging operator EVgo (NASDAQ:EVGO) recently unveiled an ambitious plan to build out a huge, national network of fast EV chargers in partnership with General Motors (NYSE: GM) and Pilot Travel Centers, owned by Warren Buffett. By the end of this year, the partnership expects to be operating fast chargers at 25+ locations, while that total is expected to soar to 200+ locations by the end of next year.
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Rivian (RIVN) Source: The Bold Bureau / Shutterstock.com After Tesla (NASDAQ:TSLA) revealed the specs on its Cybertruck, Elektrek, a news website that focuses on the electrification of transportation, wrote that “Tesla’s botched Cybertruck event is good news for Rivian, other EV truck makers.” Elektrek noted that the Cybertruck will be sold for roughly double the amount that it was originally supposed to cost, while its payload, towing capacity, and range will all be around 30% below the levels that were previously promised. EVgo (EVGO) Source: shutterstock.com/Larich EV charging operator EVgo (NASDAQ:EVGO) recently unveiled an ambitious plan to build out a huge, national network of fast EV chargers in partnership with General Motors (NYSE: GM) and Pilot Travel Centers, owned by Warren Buffett. The venture will include special benefits for the owners of GM EVs, “including the ability to reserve a charger and discounts on charging.” As a result, I believe that a high percentage of the large and growing number of GM EV owners will utilize EVgo’s chargers at these locations.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips In a strong sign that the U.S. electric-vehicle market is not dead yet and is thriving, Ford (NYSE:F) sold a record number of its F-150 Lightning electric SUVs in November. Specifically, the sales of the EV soared 113% year-over-year in November to 4,393 vehicles, the company reported. EVgo (EVGO) Source: shutterstock.com/Larich EV charging operator EVgo (NASDAQ:EVGO) recently unveiled an ambitious plan to build out a huge, national network of fast EV chargers in partnership with General Motors (NYSE: GM) and Pilot Travel Centers, owned by Warren Buffett.
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22f9ae1f-3204-4454-bcfc-b03decdf0a81
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714703.0
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2023-12-06 00:00:00 UTC
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Brokers Suggest Investing in Nu Holdings Ltd. (NU): Read This Before Placing a Bet
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DCOMP
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https://www.nasdaq.com/articles/brokers-suggest-investing-in-nu-holdings-ltd.-nu%3A-read-this-before-placing-a-bet-0
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nan
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nan
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nu Holdings Ltd. (NU).
Nu Holdings Ltd. currently has an average brokerage recommendation (ABR) of 1.75, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.75 approximates between Strong Buy and Buy.
Of the 10 recommendations that derive the current ABR, six are Strong Buy, representing 60% of all recommendations.
Brokerage Recommendation Trends for NU
Check price target & stock forecast for Nu Holdings Ltd. here>>>
While the ABR calls for buying Nu Holdings Ltd., it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is NU a Good Investment?
In terms of earnings estimate revisions for Nu Holdings Ltd., the Zacks Consensus Estimate for the current year has increased 4.8% over the past month to $0.22.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nu Holdings Ltd. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nu Holdings Ltd. may serve as a useful guide for investors.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Nu Holdings Ltd. (NU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nu Holdings Ltd. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Nu Holdings Ltd. may serve as a useful guide for investors.
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Nu Holdings Ltd. currently has an average brokerage recommendation (ABR) of 1.75, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. In terms of earnings estimate revisions for Nu Holdings Ltd., the Zacks Consensus Estimate for the current year has increased 4.8% over the past month to $0.22.
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Nu Holdings Ltd. currently has an average brokerage recommendation (ABR) of 1.75, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nu Holdings Ltd. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Nu Holdings Ltd. may serve as a useful guide for investors.
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Brokerage Recommendation Trends for NU The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nu Holdings Ltd. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Nu Holdings Ltd. may serve as a useful guide for investors. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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3e840d4d-a441-4d38-8a30-163a6d185d02
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714704.0
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2023-12-06 00:00:00 UTC
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Is It Worth Investing in Griffon (GFF) Based on Wall Street's Bullish Views?
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DCOMP
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https://www.nasdaq.com/articles/is-it-worth-investing-in-griffon-gff-based-on-wall-streets-bullish-views
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nan
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nan
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Griffon (GFF).
Griffon currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by four brokerage firms. An ABR of 1.00 indicates Strong Buy.
Of the four recommendations that derive the current ABR, four are Strong Buy, representing 100% of all recommendations.
Brokerage Recommendation Trends for GFF
Check price target & stock forecast for Griffon here>>>
The ABR suggests buying Griffon, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is GFF Worth Investing In?
Looking at the earnings estimate revisions for Griffon, the Zacks Consensus Estimate for the current year has increased 2.9% over the past month to $4.21.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Griffon. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Griffon may serve as a useful guide for investors.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
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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In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Griffon may serve as a useful guide for investors.
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Griffon currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance.
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Griffon currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
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An ABR of 1.00 indicates Strong Buy. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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f704bc26-7a9e-4651-821d-699dcca5b0f3
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714705.0
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2023-12-06 00:00:00 UTC
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Is Axcelis (ACLS) a Buy as Wall Street Analysts Look Optimistic?
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DCOMP
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https://www.nasdaq.com/articles/is-axcelis-acls-a-buy-as-wall-street-analysts-look-optimistic
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nan
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nan
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Axcelis Technologies (ACLS).
Axcelis currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by seven brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.
Of the seven recommendations that derive the current ABR, five are Strong Buy, representing 71.4% of all recommendations.
Brokerage Recommendation Trends for ACLS
Check price target & stock forecast for Axcelis here>>>
The ABR suggests buying Axcelis, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ACLS a Good Investment?
Looking at the earnings estimate revisions for Axcelis, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.25.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Axcelis. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Axcelis.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Axcelis.
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future.
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Axcelis currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
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According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. ABR Should Not Be Confused With Zacks Rank Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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dc443206-3d5e-48d5-909c-151dc4ad3b82
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714706.0
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2023-12-06 00:00:00 UTC
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Campbell (CPB) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
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DCOMP
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https://www.nasdaq.com/articles/campbell-cpb-q1-earnings%3A-how-key-metrics-compare-to-wall-street-estimates
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nan
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nan
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Campbell Soup (CPB) reported $2.52 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 2.2%. EPS of $0.91 for the same period compares to $1.02 a year ago.
The reported revenue represents a surprise of +0.40% over the Zacks Consensus Estimate of $2.51 billion. With the consensus EPS estimate being $0.87, the EPS surprise was +4.60%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Campbell performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net sales- Meals and Beverages: $1.40 billion versus the five-analyst average estimate of $1.39 billion. The reported number represents a year-over-year change of -3.5%.
Net sales- Snacks: $1.11 billion compared to the $1.12 billion average estimate based on five analysts. The reported number represents a change of -0.5% year over year.
Operating income- Meals and Beverages: $287 million compared to the $276.59 million average estimate based on five analysts.
Operating income- Snacks: $161 million versus the five-analyst average estimate of $156.20 million.
Operating income- Corporate: -$88 million versus the three-analyst average estimate of -$48.25 million.
View all Key Company Metrics for Campbell here>>>
Shares of Campbell have returned -0.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Campbell Soup Company (CPB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Campbell Soup (CPB) reported $2.52 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 2.2%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Here is how Campbell performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net sales- Meals and Beverages: $1.40 billion versus the five-analyst average estimate of $1.39 billion. Operating income- Meals and Beverages: $287 million compared to the $276.59 million average estimate based on five analysts. Operating income- Snacks: $161 million versus the five-analyst average estimate of $156.20 million.
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As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Campbell performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net sales- Meals and Beverages: $1.40 billion versus the five-analyst average estimate of $1.39 billion. Click to get this free report Campbell Soup Company (CPB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here is how Campbell performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net sales- Meals and Beverages: $1.40 billion versus the five-analyst average estimate of $1.39 billion. The reported number represents a year-over-year change of -3.5%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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b2792231-bbac-48fd-a823-059d6127bf95
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714707.0
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2023-12-06 00:00:00 UTC
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Ollie's Bargain Outlet (OLLI) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
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DCOMP
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https://www.nasdaq.com/articles/ollies-bargain-outlet-olli-q3-earnings%3A-how-key-metrics-compare-to-wall-street-estimates
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nan
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nan
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Ollie's Bargain Outlet (OLLI) reported $480.05 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 14.8%. EPS of $0.51 for the same period compares to $0.37 a year ago.
The reported revenue represents a surprise of +1.94% over the Zacks Consensus Estimate of $470.94 million. With the consensus EPS estimate being $0.45, the EPS surprise was +13.33%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Ollie's Bargain Outlet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable store sales change: 7% versus 3.5% estimated by seven analysts on average.
Average Net Sales per Store: $0.97 million versus $0.95 million estimated by four analysts on average.
Number of stores - End of period: 505 versus the four-analyst average estimate of 505.
Number of new stores: 23 versus the four-analyst average estimate of 23.
Number of stores open at the beginning of period: 482 compared to the 482 average estimate based on four analysts.
View all Key Company Metrics for Ollie's Bargain Outlet here>>>
Shares of Ollie's Bargain Outlet have returned -4.8% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment 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 investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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Ollie's Bargain Outlet (OLLI) reported $480.05 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 14.8%. Here is how Ollie's Bargain Outlet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales change: 7% versus 3.5% estimated by seven analysts on average. Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Ollie's Bargain Outlet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales change: 7% versus 3.5% estimated by seven analysts on average. Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ollie's Bargain Outlet (OLLI) reported $480.05 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 14.8%. Here is how Ollie's Bargain Outlet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales change: 7% versus 3.5% estimated by seven analysts on average. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2052f247-3e9a-4012-9098-0b0b7548a7ee
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714708.0
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2023-12-06 00:00:00 UTC
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United Natural (UNFI) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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DCOMP
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https://www.nasdaq.com/articles/united-natural-unfi-q1-earnings%3A-taking-a-look-at-key-metrics-versus-estimates
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nan
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nan
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United Natural Foods (UNFI) reported $7.55 billion in revenue for the quarter ended October 2023, representing a year-over-year increase of 0.3%. EPS of -$0.04 for the same period compares to $1.13 a year ago.
The reported revenue represents a surprise of -0.16% over the Zacks Consensus Estimate of $7.56 billion. With the consensus EPS estimate being -$0.26, the EPS surprise was +84.62%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how United Natural performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Independent retailers: $1.90 billion versus the two-analyst average estimate of $1.85 billion.
Net Sales- Other - Consolidated: $646 million versus the two-analyst average estimate of $605.37 million.
Net Sales- Supernatural: $1.61 billion versus the two-analyst average estimate of $1.55 billion.
View all Key Company Metrics for United Natural here>>>
Shares of United Natural have returned +4.4% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Natural Foods (UNFI) reported $7.55 billion in revenue for the quarter ended October 2023, representing a year-over-year increase of 0.3%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
|
United Natural Foods (UNFI) reported $7.55 billion in revenue for the quarter ended October 2023, representing a year-over-year increase of 0.3%. Here is how United Natural performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Independent retailers: $1.90 billion versus the two-analyst average estimate of $1.85 billion. Click to get this free report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how United Natural performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Independent retailers: $1.90 billion versus the two-analyst average estimate of $1.85 billion. Click to get this free report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here is how United Natural performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Independent retailers: $1.90 billion versus the two-analyst average estimate of $1.85 billion. View all Key Company Metrics for United Natural here>>> Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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7b11507f-559b-4e09-b0d2-73da53be375c
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714709.0
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2023-12-06 00:00:00 UTC
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Why This 1 Consumer Discretionary Stock Could Be a Great Addition to Your Portfolio
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DCOMP
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https://www.nasdaq.com/articles/why-this-1-consumer-discretionary-stock-could-be-a-great-addition-to-your-portfolio-4
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nan
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nan
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Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus List
Building an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List Methodology
When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Lululemon (LULU)
Founded in 1998 and based in Vancouver, Canada, lululemon athletica inc. is a yoga-inspired athletic apparel company that creates lifestyle components. The company designs, manufactures and distributes athletic apparel and accessories for women, men and female youth.
Since being added to the Focus List on December 12, 2017 at $73.64 per share, shares of LULU have increased 520.49% to $456.93. The stock is currently a #3 (Hold) on the Zacks Rank.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.02 to $12.15. LULU also boasts an average earnings surprise of 6.8%.
Additionally, LULU's earnings are expected to grow 20.7% for the current fiscal year.
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Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
lululemon athletica inc. (LULU) : 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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The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum. Gain full access now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. Reveal Winning Stocks Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Click to get this free report lululemon athletica inc. (LULU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts. Reveal Winning Stocks Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium.
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One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Focus List Methodology When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
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9da0788d-2a7d-42e4-8a30-77b292934e00
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714710.0
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2023-12-06 00:00:00 UTC
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Toll Brothers (TOL) Q4 Earnings & Revenues Beat, Stock Up
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DCOMP
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https://www.nasdaq.com/articles/toll-brothers-tol-q4-earnings-revenues-beat-stock-up
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Toll Brothers, Inc. TOL reported mixed results for fourth-quarter fiscal 2023 (ended Oct 31, 2023), wherein its top and bottom lines surpassed the Zacks Consensus Estimate but decreased on a year-over-year basis.
In the recent earnings release on Tuesday, chief executive Doug Yearley stated that the company experienced "strong demand" throughout the fiscal fourth quarter. He also mentioned that Toll Brothers is actively striving to maintain lower unit prices in the coming year.
As TOL approaches the onset of the spring selling season in January, the company finds optimism in the recent decline in mortgage rates. Given the historical lows in resale inventories, prospective buyers are increasingly attracted to new homes. Additionally, the anticipation of lower rates coupled with reduced inflation is expected to further bolster the already robust demand.
This, combined with its policy of boosting its supply of spec homes and focus on operational efficiency, has helped TOL deliver solid fiscal 2023 results.
Shares of this leading luxury homebuilder gained 1.9% in the after-hours trading session on Dec 5, following the release. Investors’ sentiment might have gotten a boost from solid net signed contracts for the quarter.
Earnings & Revenue Discussion
This Fort Washington, PA-based homebuilder delivered earnings per share (EPS) of $4.11, which beat the Zacks Consensus Estimate of $3.66 by 12.3% but decreased 12% from the year-ago period. The decrease was due to an approximate $103 million net after-tax benefit related to a litigation settlement in the year-ago quarter.
Total revenues (including Home sales and Land sales and others) came in at $3.02 billion, which beat the consensus mark of $2.78 billion by 8.6% but decreased by 18.6% year over year.
Toll Brothers Inc. Price, Consensus and EPS Surprise
Toll Brothers Inc. price-consensus-eps-surprise-chart | Toll Brothers Inc. Quote
Inside the Headlines
The company’s total home sales revenues declined 17.6% from the prior-year quarter to $2.95 billion. Homes delivered were down 27% year over year to 2,755 units. Deliveries decreased across the company’s geographic regions served by the company. The average price of homes delivered was $1,071,100 for the quarter, up from the year-ago level of $950,700.
Nonetheless, net-signed contracts for the reported quarter were 2,038 units, up 72% year over year. The value of net signed contracts was $2.01 billion, reflecting a rise of 53%.
At the fiscal fourth-quarter end, Toll Brothers had a backlog of 6,578 homes, representing a year-over-year decrease of 19%. Potential revenues from backlog declined by 22% year over year to $6.95 billion. The average price of homes in the backlog totaled $1,055,800, down from $1,095,800 a year ago.
The cancelation rate (as a percentage of signed contracts) for the reported quarter was 10.8% compared with 20.8% in the prior-year period.
Margins
The company’s adjusted home sales gross margin was 29.1%, expanding 10 basis points (bps) for the quarter. SG&A expenses, as a percentage of home sales revenues, were 8.2%, which increased 50 bps from the year-ago quarter.
Fiscal 2023 Highlights
Total revenues were $9.99 billion, down 2.7% from $10.28 billion. Toll Brothers generated $9.9 billion from home sales (up 1.6% year over year), boosting its earnings per share by 13% to $12.36. This growth was fueled by a 120-bps rise in adjusted gross margin to 28.7% and a 90-bps drop in SG&A expenses to 9.2%.
Financials
TOL had cash and cash equivalents of $1,300.1 million at the end of fiscal 2023 compared with $1,346.8 million at the fiscal 2022-end. At October 2023-end, it had $1.79 billion available under the $1.91 billion bank revolving credit facility, scheduled to mature in February 2028.
Total debt at the fiscal 2023-end was $2.86 billion, down from $3.33 billion at the fiscal 2022-end. Debt to capital was 29.6% at the fiscal 2023-end, down from 35.7% at the fiscal 2022-end.
During the year, the company repurchased 7.9 million shares of its common stock at an average price of $72 per share for approximately $565.9 million.
Fiscal First-Quarter Guidance
Toll Brothers expect home deliveries of 1,800-1,900 units (versus 1,826 units delivered in the prior-year quarter) at an average price of $985,000-$1,005,000 (suggesting a rise from $958,300 a year ago).
Adjusted home sales gross margin is expected to be 28%, implying an increase from 27.5% in the year-ago period. SG&A expenses are estimated to be 12.4% of home sales revenues, indicating a rise from 12.1% in the year-ago period. The company expects the effective tax rate to be 26%.
Fiscal 2024 Guidance
For fiscal 2024, home deliveries are anticipated to be in the range of 9,850-10,350 units. The estimated range reflects growth from 9,597 units in fiscal 2023.
The average price of delivered homes is expected to be $940,000-$960,000. The estimated range reflects a decrease from $1,027,900 reported in fiscal 2023.
Toll Brothers expects an adjusted home sales gross margin of 27.9% compared with 28.7% reported in fiscal 2023. SG&A expenses, as a percentage of home sales revenues, are projected to be 9.9% for fiscal 2023. In the year-ago period, the metric was 9.2%. The company expects the effective tax rate to be 26%.
Zacks Rank
Toll Brothers currently carries a Zacks Rank #3 (Hold).
Key Picks
M-tron Industries, Inc. MPTI currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. It has surged 297.6% YTD.
The Zacks Consensus Estimate for MPTI’s 2023 sales and EPS indicates growth of 30.6% and 156.7%, respectively, from the previous year.
Acuity Brands, Inc. AYI currently carries a Zacks Rank of 2 (Buy). AYI delivered a trailing four-quarter earnings surprise of 12%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has gained 9.8% year to date (YTD). The Zacks Consensus Estimate for AYI’s fiscal 2024 sales EPS indicates a decline of 3% and 4.7%, respectively, from a year ago.
EMCOR Group, Inc. EME presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.6%, on average. Shares of EME have rallied 42.9% YTD.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS indicates an improvement of 12% and 52.8%, respectively, from the prior-year levels.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
Acuity Brands Inc (AYI) : Free Stock Analysis Report
M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Toll Brothers, Inc. TOL reported mixed results for fourth-quarter fiscal 2023 (ended Oct 31, 2023), wherein its top and bottom lines surpassed the Zacks Consensus Estimate but decreased on a year-over-year basis. In the recent earnings release on Tuesday, chief executive Doug Yearley stated that the company experienced "strong demand" throughout the fiscal fourth quarter. This, combined with its policy of boosting its supply of spec homes and focus on operational efficiency, has helped TOL deliver solid fiscal 2023 results.
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Toll Brothers Inc. Price, Consensus and EPS Surprise Toll Brothers Inc. price-consensus-eps-surprise-chart | Toll Brothers Inc. Quote Inside the Headlines The company’s total home sales revenues declined 17.6% from the prior-year quarter to $2.95 billion. Fiscal First-Quarter Guidance Toll Brothers expect home deliveries of 1,800-1,900 units (versus 1,826 units delivered in the prior-year quarter) at an average price of $985,000-$1,005,000 (suggesting a rise from $958,300 a year ago). Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Acuity Brands Inc (AYI) : Free Stock Analysis Report M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Toll Brothers Inc. Price, Consensus and EPS Surprise Toll Brothers Inc. price-consensus-eps-surprise-chart | Toll Brothers Inc. Quote Inside the Headlines The company’s total home sales revenues declined 17.6% from the prior-year quarter to $2.95 billion. Fiscal First-Quarter Guidance Toll Brothers expect home deliveries of 1,800-1,900 units (versus 1,826 units delivered in the prior-year quarter) at an average price of $985,000-$1,005,000 (suggesting a rise from $958,300 a year ago). Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Acuity Brands Inc (AYI) : Free Stock Analysis Report M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Toll Brothers generated $9.9 billion from home sales (up 1.6% year over year), boosting its earnings per share by 13% to $12.36. Toll Brothers expects an adjusted home sales gross margin of 27.9% compared with 28.7% reported in fiscal 2023. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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d52bfdf2-1e7d-4128-bf47-5a1884f34286
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714711.0
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2023-12-06 00:00:00 UTC
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Ollie's Bargain Outlet (OLLI) Q3 Earnings and Revenues Beat Estimates
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DCOMP
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https://www.nasdaq.com/articles/ollies-bargain-outlet-olli-q3-earnings-and-revenues-beat-estimates
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Ollie's Bargain Outlet (OLLI) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this retailer would post earnings of $0.61 per share when it actually produced earnings of $0.67, delivering a surprise of 9.84%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Ollie's Bargain Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $480.05 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 1.94%. This compares to year-ago revenues of $418.07 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.
Ollie's Bargain Outlet shares have added about 62.8% since the beginning of the year versus the S&P 500's gain of 19%.
What's Next for Ollie's Bargain Outlet?
While Ollie's Bargain Outlet has outperformed 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 Ollie's Bargain Outlet: 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 $1.12 on $644.48 million in revenues for the coming quarter and $2.74 on $2.09 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, Consumer Products - Staples is currently in the bottom 29% 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.
RH (RH), another stock in the same industry, has yet to report results for the quarter ended October 2023. The results are expected to be released on December 7.
This furniture and housewares company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -84%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level.
RH's revenues are expected to be $752.55 million, down 13.4% from the year-ago quarter.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
RH (RH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. This furniture and housewares company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -84%.
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Ollie's Bargain Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $480.05 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 1.94%. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 29% of the 250 plus Zacks industries. Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ollie's Bargain Outlet (OLLI) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.45 per share. Ollie's Bargain Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $480.05 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 1.94%. Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While Ollie's Bargain Outlet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? 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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802236e3-4393-4c0a-9e13-22b8429c7c1b
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714712.0
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2023-12-06 00:00:00 UTC
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Novartis (NVS) Gets FDA Nod for Rare Blood Disorder Drug
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DCOMP
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https://www.nasdaq.com/articles/novartis-nvs-gets-fda-nod-for-rare-blood-disorder-drug
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Novartis NVS announced that the FDA approved iptacopan as the first oral monotherapy for the treatment of adults with paroxysmal nocturnal hemoglobinuria (“PNH”) under the brand name Fabhalta.
PNH is a rare, chronic and serious complement-mediated blood disorder. There is a significant need for treatments for this disease, as a large proportion of patients can remain anemic and dependent on blood transfusions despite anti-C5 treatments.
The FDA approval was based on the phase III APPLY-PNH trial, which evaluated the efficacy and safety of twice-daily, oral Fabhalta monotherapy (200 mg) for the treatment of PNH by assessing if switching to Fabhalta was superior to continuing anti-C5 therapies (Soliris and Ultomiris) in adult patients with residual anemia (Hb <10 g/dL) despite a stable regimen of anti-C5 treatment in the last six months prior to randomization.
Results of this study demonstrated that patients who switched to Fabhalta experienced superior increases of hemoglobin levels in the absence of red blood cell transfusions as compared with patients who continued with anti-C5 treatment. The approval was also supported by the APPOINT-PNH study in complement inhibitor-naïve patients.
Fabhalta has previously received Breakthrough Therapy Designation by the FDA in PNH.
The drug is also being evaluated for a range of complement-mediated diseases, including immunoglobulin A nephropathy (IgA nephropathy), C3 glomerulopathy (C3G), immune complex membranoproliferative glomerulonephritis and atypical hemolytic uremic syndrome.
The FDA also granted Breakthrough Therapy Designation to Fabhalta for C3G. Fabhalta also enjoys orphan drug designations from the FDA and European Medicines Agency in PNH and C3G. The European Medicines Agency has also granted orphan drug designation to Fabhalta for in IgAN.
Shares of Novartis have risen 6.9% year to date compared with the industry’s 5.4% growth.
Image Source: Zacks Investment Research
Novartis is now a pure-play innovative medicine company following the spin-off of its generic division, Sandoz.
The approval of new drugs will expand its diverse pharmaceutical portfolio.
Earlier in 2023, Novartis acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition added two late-stage candidates, atrasentan and zigakibart, for the treatment of IgA nephropathy to NVS’ pipeline.
Strong performance of key drugs, a deep pipeline and a streamlined focus should help NVS maintain momentum amid competition.
We remind investors that Ultomiris, the first and only long-acting C5 complement inhibitor, was added to AstraZeneca’s AZN portfolio with the acquisition of erstwhile Alexion. It is approved in the U.S., EU and Japan for certain adults and children with PNH. Ultomiris is also approved by the FDA for the treatment of adult patients with generalized myasthenia gravis (gMG).
Strong sales of the drug have boosted AstraZeneca’s top line. The drug recorded sales of $2.1 billion in the first nine months of 2023, up 58% at the constant exchange rate. Ultomiris sales are benefiting from label expansion for the gMG indication, expansion into new markets and continued conversion from Alexion’s older drug, Soliris.
Zacks Rank and Stocks to Consider
Novartis currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the overall healthcare sector are Entrada Therapeutics TRDA and Dynavax Technologies DVAX. While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Entrada’s loss per share estimate for 2023 has narrowed from $2.07 to 9 cents in the past 30 days. The same for 2024 has narrowed from $2.35 to $2.04 during the same time frame.
Dynavax’s loss per share estimate for 2023 has narrowed from 23 cents to 12 cents in the past 30 days. Earnings estimate for 2024 rose from 12 cents to 18 cents during the same period. Shares of DVAX have risen 29.3% year to date.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report
Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Novartis NVS announced that the FDA approved iptacopan as the first oral monotherapy for the treatment of adults with paroxysmal nocturnal hemoglobinuria (“PNH”) under the brand name Fabhalta. The FDA approval was based on the phase III APPLY-PNH trial, which evaluated the efficacy and safety of twice-daily, oral Fabhalta monotherapy (200 mg) for the treatment of PNH by assessing if switching to Fabhalta was superior to continuing anti-C5 therapies (Soliris and Ultomiris) in adult patients with residual anemia (Hb <10 g/dL) despite a stable regimen of anti-C5 treatment in the last six months prior to randomization. Image Source: Zacks Investment Research Novartis is now a pure-play innovative medicine company following the spin-off of its generic division, Sandoz.
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The FDA approval was based on the phase III APPLY-PNH trial, which evaluated the efficacy and safety of twice-daily, oral Fabhalta monotherapy (200 mg) for the treatment of PNH by assessing if switching to Fabhalta was superior to continuing anti-C5 therapies (Soliris and Ultomiris) in adult patients with residual anemia (Hb <10 g/dL) despite a stable regimen of anti-C5 treatment in the last six months prior to randomization. While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX carries a Zacks Rank #2 (Buy) at present. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Novartis NVS announced that the FDA approved iptacopan as the first oral monotherapy for the treatment of adults with paroxysmal nocturnal hemoglobinuria (“PNH”) under the brand name Fabhalta. The FDA approval was based on the phase III APPLY-PNH trial, which evaluated the efficacy and safety of twice-daily, oral Fabhalta monotherapy (200 mg) for the treatment of PNH by assessing if switching to Fabhalta was superior to continuing anti-C5 therapies (Soliris and Ultomiris) in adult patients with residual anemia (Hb <10 g/dL) despite a stable regimen of anti-C5 treatment in the last six months prior to randomization. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The FDA approval was based on the phase III APPLY-PNH trial, which evaluated the efficacy and safety of twice-daily, oral Fabhalta monotherapy (200 mg) for the treatment of PNH by assessing if switching to Fabhalta was superior to continuing anti-C5 therapies (Soliris and Ultomiris) in adult patients with residual anemia (Hb <10 g/dL) despite a stable regimen of anti-C5 treatment in the last six months prior to randomization. Ultomiris is also approved by the FDA for the treatment of adult patients with generalized myasthenia gravis (gMG). Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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8a6bab0d-c29d-4004-a3d8-c3539e40973b
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714713.0
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2023-12-06 00:00:00 UTC
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4 Stocks in Focus as Construction Spending Gathers Pace
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DCOMP
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https://www.nasdaq.com/articles/4-stocks-in-focus-as-construction-spending-gathers-pace
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nan
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The fight for recovery for the construction sector continues, with investment in projects steadily gathering steam. Homebuilding, which had been the key driver for investments in construction projects, is also trying to rebound from its earlier lows.
Given this scenario, investing in homebuilding stocks like D.R. Horton, Inc. DHI, Lennar Corporation LEN, Dream Finders Homes, Inc. DFH and Toll Brothers Inc. TOL would be a wise decision.
Construction Spending Expands
The Commerce Department said on Dec 1 that spending on construction projects surpassed economists' expectations, rising 0.6% in October. While September's data was revised downward to a 0.2% increase from the initially reported 0.4%, there has been a consistent upward trend in construction activity in recent months.
Construction spending has now increased 10.7% in the first ten months of the year. The uptick in overall construction spending in October was primarily driven by a 0.7% jump in investments in private construction projects. Spending on residential construction projects increased 1.2% during the same period.
Specifically, spending on the construction of single-family homes rose by 1.1%, contributing to the reversal of a nine-quarter decline in residential investment during the third quarter, fueled by robust spending on new single-family home construction.
Private non-residential structures, including factories, saw a modest 0.1% increase in outlays in October. Spending on public construction projects jumped 0.2%, with state and local government spending rising marginally by 0.1%. Notably, spending on federal government projects jumped an impressive 2.2%.
The housing market suffered a major setback as mortgage rates surged following last year's interest rate hikes by the Federal Reserve. Both homebuyers and builders faced challenges as the Federal Reserve has hiked interest rate hikes by 525 basis points since March 2022.
While the homebuilding industry played a crucial role in propelling construction spending during the peak of the pandemic, it has since experienced a notable decline.
The surge in raw material and labor costs has contributed to the escalation of home prices, and the current 30-year fixed mortgage rate, exceeding 7%, has added to the challenges for potential buyers.
Despite these obstacles, there is sustained high demand driven by a shortage of existing homes, prompting increased spending on private residential construction projects.
Stocks in Focus
Given this scenario, it will be prudent to keep a watch on these four homebuilding stocks that are poised to gain from the rise in spending on construction projects. Each of these stocks carries a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
D.R. Horton, Inc. is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. DHI’s operations are spread across 11 markets in 33 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States.
D.R. Horton has an expected earnings growth rate of 8.3% for next year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 30 days. DHI presently carries a Zacks Rank #3.
Lennar Corporation is engaged in homebuilding and financial services in the United States. LEN’s reportable segments consist of Homebuilding, Lennar Financial Services, Rialto and Lennar Multifamily.
Lennar Corporation’s expected earnings growth rate for next year is 7.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 30 days. LEN presently carries a Zacks Rank #2.
Dream Finders Homes, Inc. is a homebuilding company. DFH operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland. Dream Finders Homes is based in Jacksonville, FL.
Dream Finders Homes has an expected earnings growth rate of 10.1% for next year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 60 days. DFH presently has a Zacks Rank #2.
Toll Brothers Inc. builds single-family detached and attached home communities, master-planned luxury residential resort-style golf communities, and urban low, mid, and high-rise communities, principally on the land it develops and improves. TOL operates in Arizona, California, Florida, Delaware, Maryland, Pennsylvania, and South Carolina. Toll Brothers offers homes under two segments, namely Traditional Home Building Product and City Living.
Toll Brothers’ expected earnings growth rate for the current year is 1.5%. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the past 60 days. Toll Brothers presently sports a Zacks Rank #1.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
Lennar Corporation (LEN) : Free Stock Analysis Report
D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While September's data was revised downward to a 0.2% increase from the initially reported 0.4%, there has been a consistent upward trend in construction activity in recent months. The surge in raw material and labor costs has contributed to the escalation of home prices, and the current 30-year fixed mortgage rate, exceeding 7%, has added to the challenges for potential buyers. Despite these obstacles, there is sustained high demand driven by a shortage of existing homes, prompting increased spending on private residential construction projects.
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Horton, Inc. DHI, Lennar Corporation LEN, Dream Finders Homes, Inc. DFH and Toll Brothers Inc. TOL would be a wise decision. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report D.R. Horton, Inc. (DHI) : Free Stock Analysis Report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Specifically, spending on the construction of single-family homes rose by 1.1%, contributing to the reversal of a nine-quarter decline in residential investment during the third quarter, fueled by robust spending on new single-family home construction. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report D.R. Horton, Inc. (DHI) : Free Stock Analysis Report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Horton, Inc. DHI, Lennar Corporation LEN, Dream Finders Homes, Inc. DFH and Toll Brothers Inc. TOL would be a wise decision. The uptick in overall construction spending in October was primarily driven by a 0.7% jump in investments in private construction projects. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714714.0
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2023-12-06 00:00:00 UTC
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Oil & Gas Stock Roundup: BP's Lightsource Deal, Equinor's Nigeria Exit & More
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https://www.nasdaq.com/articles/oil-gas-stock-roundup%3A-bps-lightsource-deal-equinors-nigeria-exit-more
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It was another week when both oil and natural gas prices posted losses.
On the news front, the headlines revolved around European supermajor BP plc’s BP decision to take full ownership of solar power developer Lightsource BP and Norwegian behemoth Equinor’s EQNR sale of its Nigerian business. Developments associated with Cheniere Energy LNG, Petrobras PBR and TC Energy TRP also made it to the headlines.
Overall, it was a bearish seven-day period for the sector. West Texas Intermediate (WTI) crude futures decreased around 2% to close at $74.07 per barrel, while natural gas prices moved down 6.2% to end at $2.81 per million British thermal units (MMBtu).
The crude price action remained negative for the sixth week running after government data showed a surprise build in inventories and record-high crude production. Even the OPEC+ announcement of nearly 2 million barrels per day of additional production cuts was unable to shore up oil prices as the market looked for stronger commitments.
Meanwhile, natural gas settled with another big weekly loss, overwhelmed by high production and insipid weather-related demand.
Recap of the Week’s Most Important Stories
1. BP announced the acquisition of the remaining 50.03% stake in Lightsource BP, a leading solar and battery storage developer. The deal, valued at approximately $322 million (£254 million), marks a milestone in the London-based oil major’s commitment to expanding its presence in the renewable energy sector.
Operating with a proven capital-light business model, Lightsource BP specializes in developing, engineering, constructing, and farming down utility-scale solar and battery storage projects. The company has built a solid reputation for delivering renewable projects with equity returns in the mid-teens, thanks to its strategic approach of selling its majority interests in assets to partners.
The acquisition will give BP full ownership of Lightsource BP, providing the energy giant with the opportunity to leverage its capabilities and strengths in areas such as finance and trading. The move aligns with BP's broader strategy to diversify its portfolio and transition toward cleaner and more sustainable energy sources. It is also in sync with BP's strategy to attain double-digit equity returns from the renewable energy business. (BP Expands Green Footprint With Lightsource BP Acquisition)
2. . Equinor entered an agreement to divest its Nigeria business to the country-based Chappal Energies. The move is part of the Stavanger, Norway-headquartered integrated major’s initiatives to optimize asset allocation and align its portfolio with its core business strategy.
The divestment encompasses the Zacks Rank #3 (Hold) company’s stake in the Agbami oil field. The Agbami oilfield project stands as one of Nigeria’s major deepwater developments. Since its commencement in 2008, the Agbami field has yielded more than 1 billion barrels of oil.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Nigeria has long been a pivotal element of Equinor’s international operations. The company’s decision to divest its Nigeria business marks a substantial shift in its global footprint. Equinor’s Nigeria business includes a 53.85% interest in exploration licenses OMLs 128 and a 20.21% stake in the Agbami field. The transaction’s completion is subject to obtaining all necessary regulatory and contractual approvals. (Equinor Scores Deal to Divest Its Nigeria Business)
3. Natural gas exporter Cheniere Energy entered into a long-term gas supply agreement with ARC Resources, a prominent Canadian natural gas producer, and a liquefied natural gas sale (LNG) and purchase agreement with OMV, one of Austria’s largest listed industrial companies. These deals represent a substantial boost for Cheniere's LNG portfolio and underscore the company’s commitment to delivering reliable, clean-burning energy to customers worldwide.
According to Cheniere’s pact with ARC Resources, the latter will provide the former with 140,000 MMBtu of natural gas per day for a period of 15 years. This agreement is a critical step for Cheniere, as it will help ensure a reliable source of gas for its liquefaction facilities.
On the other hand, the deal with OMV will see Cheniere supply OMV with up to 12 LNG cargoes per year, equivalent to approximately 0.85 million tons per annum (mtpa) of LNG. (Cheniere Energy Secures Gas Supply, LNG Sales Deals)
4. Petrobras, Brazil's state-controlled oil company, is set to join OPEC+ as an observer in January 2024. This strategic decision marks a key shift in Brazil's energy strategy. Notably, the country’s position as an observer exempts it from production quotas, a crucial consideration for Petrobras, as emphasized by CEO Jean Paul Prates.
Petrobras' decision to join OPEC+ stems from a desire to collaborate on energy transition initiatives. Prates acknowledges OPEC+'s diverse membership, comprising both voting and non-voting participants, with Brazil falling into the latter category. He firmly asserts Petrobras' commitment to maintaining its status as a publicly traded company, highlighting the incompatibility with production quotas.
The unexpected announcement of Brazil's OPEC+ observer membership has raised questions about the nation's participation in voluntary production cuts. Prates promptly clarified that Brazil will not partake in any production cuts, reinforcing the nation's commitment to maintaining its current production level. (Petrobras Confirms Brazil's OPEC+ Entry, Maintains Output).
5. TC Energy has announced that it expects comparable EBITDA for 2023 to be 8% higher than last year, surpassing initial expectations, thanks to a strong October and favorable exchange rates. The Canada-based energy infrastructure provider also gave a robust outlook for 2024, forecasting comparable EBITDA to grow 5-7% year over year, excluding any potential impact of its planned asset sale program or the South Bow spinoff.
During its annual Investor Day, TC Energy decorated its significant progress in executing its 2023 priorities, which include project execution, deleveraging and maximizing asset value. The company highlighted its commitment to maintaining a disciplined financial approach, targeting a debt-to-EBITDA ratio of 4.75X by the year-end and maintaining its targeted C$6-C$7 billion annual net capital spending in 2025 and beyond.
TC Energy announced plans to advance an incremental C$3 billion of asset sales in 2024, further streamlining its portfolio and enhancing its financial flexibility. The company also reiterated its plans to spin off its South Bow business into a separate, publicly traded company in the second half of 2024. This spinoff is expected to create two strong, independent companies, each with a clear strategic focus and enhanced growth prospects. (TC Energy Expects Strong Results, Boosts 2024 Outlook).
Price Performance
The following table shows the price movement of some major oil and gas players over the past week and during the last six months.
Company Last Week Last 6 Months
XOM -1.5% -3.1%
CVX +0.3% -7.3%
COP +0.4% +11.9%
OXY -2.2% -3.1%
SLB -0.4% +11.3%
RIG 0% -3.2%
VLO +1.1% +15.7%
MPC +1.3% +39%
Stocks had a mixed week, indicative of the uncertain trading in oil and gas. The Energy Select Sector SPDR — a popular way to track energy companies — edged up 0.1% last week. Over the past six months, the sector tracker has increased 5.9%.
What’s Next in the Energy World?
As usual, market participants will closely track the regular releases to look for guidance on the direction of the commodities. In this context, the U.S. Government’s statistics on oil and natural gas — one of the few solid indicators that come out regularly — will be on energy traders' radar. Data on rig count from the oilfield service firm Baker Hughes, which is a pointer to the trends in U.S. crude/natural gas production, is closely followed, too.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
BP p.l.c. (BP) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
TC Energy Corporation (TRP) : Free Stock Analysis Report
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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West Texas Intermediate (WTI) crude futures decreased around 2% to close at $74.07 per barrel, while natural gas prices moved down 6.2% to end at $2.81 per million British thermal units (MMBtu). Operating with a proven capital-light business model, Lightsource BP specializes in developing, engineering, constructing, and farming down utility-scale solar and battery storage projects. The company has built a solid reputation for delivering renewable projects with equity returns in the mid-teens, thanks to its strategic approach of selling its majority interests in assets to partners.
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Developments associated with Cheniere Energy LNG, Petrobras PBR and TC Energy TRP also made it to the headlines. Natural gas exporter Cheniere Energy entered into a long-term gas supply agreement with ARC Resources, a prominent Canadian natural gas producer, and a liquefied natural gas sale (LNG) and purchase agreement with OMV, one of Austria’s largest listed industrial companies. (BP) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report TC Energy Corporation (TRP) : Free Stock Analysis Report Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Natural gas exporter Cheniere Energy entered into a long-term gas supply agreement with ARC Resources, a prominent Canadian natural gas producer, and a liquefied natural gas sale (LNG) and purchase agreement with OMV, one of Austria’s largest listed industrial companies. The Energy Select Sector SPDR — a popular way to track energy companies — edged up 0.1% last week. (BP) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report TC Energy Corporation (TRP) : Free Stock Analysis Report Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It was another week when both oil and natural gas prices posted losses. You can see the complete list of today’s Zacks #1 Rank stocks here. Company Last Week Last 6 Months
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714715.0
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2023-12-06 00:00:00 UTC
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Health Care Sector Update for 12/06/2023: PHVS, PHR, NBIX, XLV, IBB
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https://www.nasdaq.com/articles/health-care-sector-update-for-12-06-2023%3A-phvs-phr-nbix-xlv-ibb
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Health care stocks were mixed premarket Wednesday with the Health Care Select Sector SPDR Fund (XLV) up 0.3% while the iShares Biotechnology ETF (IBB) was recently inactive.
Pharvaris (PHVS) was gaining over 28% after saying a phase 2 clinical study of deucrictibant to prevent hereditary angioedema attacks met its primary endpoint.
Phreesia (PHR) was up more than 14% after it reported a Q3 loss of $0.58 per diluted share, narrower than a loss of $0.76 a year earlier. Analysts polled by Capital IQ expected a loss of $0.68.
Neurocrine Biosciences (NBIX) was over 2% higher after saying it has received Breakthrough Therapy designation from the US Food and Drug Administration for crinecerfont in congenital adrenal hyperplasia, a group of genetic disorders that involve the adrenal glands.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Health care stocks were mixed premarket Wednesday with the Health Care Select Sector SPDR Fund (XLV) up 0.3% while the iShares Biotechnology ETF (IBB) was recently inactive. Pharvaris (PHVS) was gaining over 28% after saying a phase 2 clinical study of deucrictibant to prevent hereditary angioedema attacks met its primary endpoint. Neurocrine Biosciences (NBIX) was over 2% higher after saying it has received Breakthrough Therapy designation from the US Food and Drug Administration for crinecerfont in congenital adrenal hyperplasia, a group of genetic disorders that involve the adrenal glands.
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Health care stocks were mixed premarket Wednesday with the Health Care Select Sector SPDR Fund (XLV) up 0.3% while the iShares Biotechnology ETF (IBB) was recently inactive. Pharvaris (PHVS) was gaining over 28% after saying a phase 2 clinical study of deucrictibant to prevent hereditary angioedema attacks met its primary endpoint. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Health care stocks were mixed premarket Wednesday with the Health Care Select Sector SPDR Fund (XLV) up 0.3% while the iShares Biotechnology ETF (IBB) was recently inactive. Phreesia (PHR) was up more than 14% after it reported a Q3 loss of $0.58 per diluted share, narrower than a loss of $0.76 a year earlier. Neurocrine Biosciences (NBIX) was over 2% higher after saying it has received Breakthrough Therapy designation from the US Food and Drug Administration for crinecerfont in congenital adrenal hyperplasia, a group of genetic disorders that involve the adrenal glands.
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Health care stocks were mixed premarket Wednesday with the Health Care Select Sector SPDR Fund (XLV) up 0.3% while the iShares Biotechnology ETF (IBB) was recently inactive. Pharvaris (PHVS) was gaining over 28% after saying a phase 2 clinical study of deucrictibant to prevent hereditary angioedema attacks met its primary endpoint. Phreesia (PHR) was up more than 14% after it reported a Q3 loss of $0.58 per diluted share, narrower than a loss of $0.76 a year earlier.
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73564679-024c-494b-a4f1-bfc2c6128a01
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714716.0
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2023-12-06 00:00:00 UTC
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Omnicell's (OMCL) Global Expansion Strong, Macro Issues Ail
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https://www.nasdaq.com/articles/omnicells-omcl-global-expansion-strong-macro-issues-ail
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Omnicell’s OMCL geographic expansion and portfolio development aid growth. However, persistent inflationary pressures pose a threat to Omnicell’s cost-saving actions. The stock carries a Zacks Rank #3 (Hold).
Omnicell is progressing well with its three-legged strategy that covers market expansion through the delivery of differentiated, innovative solutions, expansion into new markets, primarily outside the United States, and expansion through strategic partnerships and the acquisition of new technologies.
In this line, the company earlier expanded its autonomous pharmacy portfolio with the strategic and accretive acquisition of PSG's 340B Link business, now called Omnicell 340B. 340B is a significant part of an increasingly complex pharmacy supply chain, requiring solutions designed to help providers manage compliance and reporting while capturing drug cost savings.
Omnicell has also accelerated a shift to cloud-based solutions and tech-enabled services through the launches of Inventory Optimization Service (formerly Omnicell One) and Central Pharmacy Dispensing Services. In the third quarter of 2023, several of OMCL’s health system partners extended their sole-source agreements, including a Florida-based health system that plans to replace its existing point-of-care footprint with Omnicell XT systems. One of Georgia's largest healthcare networks has contracted for Omnicell's inventory optimization service to help strengthen its pharmacy supply chain.
Omnicell, Inc. Price
Omnicell, Inc. price | Omnicell, Inc. Quote
In terms of its 2025 financial roadmap, Omnicell is targeting to reach 1.9 billion to 2 billion of revenues by 2025 — a 14% to 15% compounded total annual revenue growth rate from 2021 to 2025. Over the same period, it is also targeting an expansion of the non-GAAP EBITDA margin from 21% in 2021 to 25% by 2025, representing a margin expansion of approximately 400 bps.
The company is well-positioned to deliver on the 2025 total revenue growth targets, driven by factors like growing its tech service revenues, the benefits of long-term sole source customer partnerships, multi-year co-development plans and increased average deal sizes.
Further, given the fact that the international market is less than 1% penetrated, with very few hospitals adopting medication control systems, Omnicell has specified its second leg of strategies for expanding into new markets. In the first half of 2023, the company’s international sales represented 12% of the total sales.
Meanwhile, Omnicell has adopted several strategies to drive its top line, including portfolio expansion, acquisitions and further penetration in the medication adherence market. Similar to its healthcare system partners, the company’s operations continue to be affected by persisting labor shortages and increased inflationary costs related to components’ raw materials and freight.
In the third quarter of 2023, the gross profit declined 17.1%, resulting in a year-over-year contraction in the gross margin of 152 basis points. The operating profit also decreased 79.9% compared to the third quarter of 2022. For the full year 2023, management anticipates cost-saving measures to be partially offset by year-over-year increases in compensation and vendor price increases.
Omnicell’s operations are subjected to continued and increased competition from current and future competitors in the medication management automation solution market and the medication adherence solution market, including price competition, industry and competitor consolidation, competitor brand recognition and in terms of relationships with suppliers and current and potential customers. This increased competition could result in pricing pressure and a reduced margin, which may have an adverse impact on the company’s performance.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics HAE, DexCom DXCM and Insulet PODD. 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 0.5% 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 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 to 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%.
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%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Omnicell, Inc. (OMCL) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this line, the company earlier expanded its autonomous pharmacy portfolio with the strategic and accretive acquisition of PSG's 340B Link business, now called Omnicell 340B. 340B is a significant part of an increasingly complex pharmacy supply chain, requiring solutions designed to help providers manage compliance and reporting while capturing drug cost savings. Similar to its healthcare system partners, the company’s operations continue to be affected by persisting labor shortages and increased inflationary costs related to components’ raw materials and freight.
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Meanwhile, Omnicell has adopted several strategies to drive its top line, including portfolio expansion, acquisitions and further penetration in the medication adherence market. Omnicell’s operations are subjected to continued and increased competition from current and future competitors in the medication management automation solution market and the medication adherence solution market, including price competition, industry and competitor consolidation, competitor brand recognition and in terms of relationships with suppliers and current and potential customers. Click to get this free report Omnicell, Inc. (OMCL) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Omnicell, Inc. Price Omnicell, Inc. price | Omnicell, Inc. Quote In terms of its 2025 financial roadmap, Omnicell is targeting to reach 1.9 billion to 2 billion of revenues by 2025 — a 14% to 15% compounded total annual revenue growth rate from 2021 to 2025. Omnicell’s operations are subjected to continued and increased competition from current and future competitors in the medication management automation solution market and the medication adherence solution market, including price competition, industry and competitor consolidation, competitor brand recognition and in terms of relationships with suppliers and current and potential customers. Click to get this free report Omnicell, Inc. (OMCL) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Omnicell is progressing well with its three-legged strategy that covers market expansion through the delivery of differentiated, innovative solutions, expansion into new markets, primarily outside the United States, and expansion through strategic partnerships and the acquisition of new technologies. This increased competition could result in pricing pressure and a reduced margin, which may have an adverse impact on the company’s performance. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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f93f9174-ed1a-40e1-9bec-6c4f5084b249
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714717.0
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2023-12-06 00:00:00 UTC
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3 Steel Producer Stocks to Watch in a Promising Industry
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https://www.nasdaq.com/articles/3-steel-producer-stocks-to-watch-in-a-promising-industry
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The Zacks Steel Producers industry is expected to benefit from an uptick in steel demand in automotive, a major market, driven by a ramp-up in automotive production following the easing of the semiconductor crisis. A resilient non-residential construction market and healthy demand in the energy space also act as tailwinds for the industry.
The sizable infrastructure investment augurs well for the U.S. steel industry. Infrastructure spending and higher end-market demand are also expected to support steel prices. Players from the industry, such as Nucor Corporation NUE, United States Steel Corporation X and Universal Stainless & Alloy Products, Inc. USAP are set to gain from these trends.
About the Industry
The Zacks Steel Producers industry serves a vast spectrum of end-use industries such as automotive, construction, appliance, container, packaging, industrial machinery, mining equipment, transportation, and oil and gas with various steel products. These products include hot-rolled and cold-rolled coils and sheets, hot-dipped and galvanized coils and sheets, reinforcing bars, billets and blooms, wire rods, strip mill plates, standard and line pipe, and mechanical tubing products. Steel is primarily produced using two methods — Blast Furnace and Electric Arc Furnace. It is regarded as the backbone of the manufacturing industry. The automotive and construction markets have historically been the largest consumers of steel. Notably, the housing and construction sector is the biggest consumer of steel, accounting for roughly half of the world’s total consumption.
What's Shaping the Future of the Steel Producers' Industry?
Strong Demand in Major End-use Markets: Steel producers are set to gain from strong demand across major steel end-use markets, including automotive and construction. They are expected to benefit from higher order booking from the automotive market. Steel demand in automotive is expected to rise on the back of an easing global shortage in semiconductor chips that weighed heavily on the automotive industry for nearly two years. Also, the United Auto Workers (UAW) reached a deal with the Detroit Big Three in November 2023, ending the roughly six-week strike that weighed on the U.S. steel industry due to a slowdown in automotive demand. The resolution to the UAW strikes augurs well for steel demand moving ahead. Meanwhile, order activities in the non-residential construction market remain strong, underscoring the inherent strength of this industry. Demand in the energy sector has improved on the back of strength in oil and gas prices. Favorable trends across these markets bode well for the steel industry.
A Recovery in Steel Prices Bodes Well: Steel prices witnessed a sharp correction globally in 2022 as the Russia-Ukraine conflict, skyrocketing energy costs in Europe, persistently high inflation, interest rate hikes and the slowdown in China due to new COVID-19 lockdowns dampened demand for steel across key end-use markets. After rebounding during the first three months of 2023, the benchmark hot-rolled coil ("HRC") prices tumbled more than 40% from their April 2023 peak of around $1,200 per short ton to below the $700 per short ton level. The downward drift was partly driven by shorter lead times. The UAW strike and lower cost of raw materials (including scrap prices) also weighed on HRC prices. However, HRC prices have rebounded of late, driven by U.S. steel mills’ price hike actions and supply tightness, as well as a recovery in demand. The massive infrastructure development project should also act as a catalyst for the American steel industry and U.S. HRC prices. The sizable federal infrastructure spending should favor the U.S. steel industry, given the expected rise in consumption of the commodity. Moreover, the Inflation Reduction Act and the CHIPS and Science Act will spur demand for domestic steel in the United States.
Slowdown in China a Worry: Steel demand in China, the world’s top consumer of the commodity, has softened due to a slowdown in the country’s economy due to the protracted property crisis and weak global demand. The real estate sector has taken a hard hit amid a decline in new home prices, property investment and housing sales. Notably, real estate accounts for roughly 40% of China's steel consumption. A slowdown in manufacturing activities has led to a contraction in demand for steel in China. The manufacturing sector has taken a beating due to weaker external demand for manufactured goods and a slowdown in infrastructure spending. China has also seen a slowdown in the construction sector. The sluggishness in these key steel-consuming sectors is expected to hurt demand for steel over the short term.
Zacks Industry Rank Indicates Upbeat Prospects
The Zacks Steel Producers industry is part of the broader Zacks Basic Materials Sector. It carries a Zacks Industry Rank #86, which places it at the top 34% 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 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 stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector and S&P 500
The Zacks Steel Producers industry has outperformed both the Zacks S&P 500 composite and the broader Zacks Basic Materials sector over the past year.
The industry has gained 17.3% over this period compared with the S&P 500’s rise of 16.1% and the broader sector’s rise of 1.2%.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA) ratio, which is a commonly used multiple for valuing steel stocks, the industry is currently trading at 8.34X, below the S&P 500’s 13.21X and the sector’s 11.28X.
Over the past five years, the industry has traded as high as 11.85X, as low as 2.55X and at the median of 6.09X, as the chart below shows.
Enterprise Value/EBITDA (EV/EBITDA) Ratio
Enterprise Value/EBITDA (EV/EBITDA) Ratio
3 Steel Producers Stocks to Invest in
U.S. Steel: Pennsylvania-based U.S. Steel produces and sells flat-rolled and tubular steel products. It is gaining from strong demand across its end markets, diverse order book and cost actions. U.S. Steel remains focused on executing its ongoing strategic investments. It is executing its “Best for All” strategy by expanding the mini-mill steelmaking advantage. The investment in Big River Steel is expected to be accretive to its earnings and will generate significant synergies. Cost-saving initiatives and efforts to improve operation efficiency should drive its results.
The Zacks Consensus Estimate for current-year earnings for U.S. Steel has been revised 5.4% upward over the last 60 days. The company has also surpassed the Zacks Consensus Estimate in each of the trailing four quarters at an average of 24.1%. X currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: X
Universal Stainless & Alloy Products: Pennsylvania-based Universal Stainless & Alloy Products, carrying a Zacks Rank #2, makes and markets finished and semi-finished specialty steels, including stainless steel, tool steels and other alloy steels. The company is benefiting from strengthening demand in the aerospace market, which is driving its premium alloy sales and the top line. USAP is seeing strong growth in aerospace sales as demand for new airplanes is being driven by a recovery in air travel and higher demand for business jets and freighters. The company is also gaining from a favorable product mix and higher selling prices. The completion of its capital project is expected to enable the expansion of its portfolio with technologically advanced, higher-margin products.
Universal Stainless & Alloy Products has an expected earnings growth rate of 170.3% for the current year. USAP has a trailing four-quarter earnings surprise of roughly 44.4%, on average.
Price and Consensus: USAP
Nucor: Charlotte, NC-based Nucor makes steel and steel products with operating facilities in the United States, Canada and Mexico. Nucor is expected to gain from the strength in the non-residential construction market. The company remains focused on achieving greater penetration in automotive. Nucor should also gain from considerable market opportunities from its strategic investments in its most significant growth projects. NUE remains committed to boosting production capacity, which should drive growth and strengthen its position as a low-cost producer.
Nucor carries a Zacks Rank #3 (Hold). Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. NUE has a trailing four-quarter earnings surprise of roughly 11.3%, on average.
Price and Consensus: NUE
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
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United States Steel Corporation (X) : Free Stock Analysis Report
Nucor Corporation (NUE) : Free Stock Analysis Report
Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Notably, the housing and construction sector is the biggest consumer of steel, accounting for roughly half of the world’s total consumption. Also, the United Auto Workers (UAW) reached a deal with the Detroit Big Three in November 2023, ending the roughly six-week strike that weighed on the U.S. steel industry due to a slowdown in automotive demand. The real estate sector has taken a hard hit amid a decline in new home prices, property investment and housing sales.
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Strong Demand in Major End-use Markets: Steel producers are set to gain from strong demand across major steel end-use markets, including automotive and construction. Price and Consensus: X Universal Stainless & Alloy Products: Pennsylvania-based Universal Stainless & Alloy Products, carrying a Zacks Rank #2, makes and markets finished and semi-finished specialty steels, including stainless steel, tool steels and other alloy steels. Click to get this free report United States Steel Corporation (X) : Free Stock Analysis Report Nucor Corporation (NUE) : Free Stock Analysis Report Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Steel Producers industry is expected to benefit from an uptick in steel demand in automotive, a major market, driven by a ramp-up in automotive production following the easing of the semiconductor crisis. About the Industry The Zacks Steel Producers industry serves a vast spectrum of end-use industries such as automotive, construction, appliance, container, packaging, industrial machinery, mining equipment, transportation, and oil and gas with various steel products. Price and Consensus: X Universal Stainless & Alloy Products: Pennsylvania-based Universal Stainless & Alloy Products, carrying a Zacks Rank #2, makes and markets finished and semi-finished specialty steels, including stainless steel, tool steels and other alloy steels.
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Zacks Industry Rank Indicates Upbeat Prospects The Zacks Steel Producers industry is part of the broader Zacks Basic Materials Sector. Industry Outperforms Sector and S&P 500 The Zacks Steel Producers industry has outperformed both the Zacks S&P 500 composite and the broader Zacks Basic Materials sector over the past year. 3 Steel Producers Stocks to Invest in U.S. Steel: Pennsylvania-based U.S. Steel produces and sells flat-rolled and tubular steel products.
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693e489c-71b8-458c-81d8-41a2bc4d7c79
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714718.0
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2023-12-06 00:00:00 UTC
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HealthEquity (HQY) Q3 Earnings Surpass Estimates, Margins Up
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DCOMP
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https://www.nasdaq.com/articles/healthequity-hqy-q3-earnings-surpass-estimates-margins-up
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HealthEquity, Inc. HQY reported adjusted earnings per share (EPS) of 60 cents in third-quarter fiscal 2024, which surpassed the Zacks Consensus Estimate by 22.5%. The bottom line improved 57.9% on a year-over-year basis.
GAAP EPS in the fiscal third quarter was 17 cents against the year-ago quarter’s loss of 2 cents.
Revenues in Detail
In the fiscal third quarter, the company generated revenues of $249.2 million, beating the Zacks Consensus Estimate by 2.3%. The top line improved 15.3% from the prior-year quarter.
HSA Details
As of Oct 31, 2023, the total number of Health Savings Accounts (HSA) for which HealthEquity served as a non-bank custodian (HSA members) was 8.3 million, up 8.4% year over year.
HealthEquity reported 592,000 HSAs with investments as of Oct 31, 2023, up 11.9% year over year. Total Accounts, as of Oct 31, 2023, were 15.3 million, up 5.4% year over year. This uptick included total HSAs and 6.9 million other Consumer Direct Benefits (CDBs).
Total HSA assets were $22.57 billion at the end of Oct 31, 2023, up 11.7% year over year. This included $13.97 billion of HSA cash and $8.59 billion of HSA investments.
This figure compares to our fiscal third-quarter HSA cash and HSA investments projection of $14.4 billion and $8.4 billion, respectively. We had projected total HSA assets of $22.8 billion in the fiscal third quarter.
Client-held funds, which are deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $0.76 billion as of Oct 31, 2023.
Revenue Sources
HealthEquity derives revenues from three sources: Service revenues, Custodial revenues and Interchange revenues.
Service revenues totaled $107.5 million in the quarter, down 0.9% year over year. This figure compares to our Service revenues’ fiscal third-quarter projection of $122.5 million.
Custodial revenues totaled $106.6 million, up 42.8% from the year-ago period. This figure compares to our Custodial revenues’ fiscal third-quarter projection of $80.7 million.
Interchange revenues totaled $35.1 million, up 6.9% year over year. This figure compares to our Interchange revenues’ fiscal third-quarter projection of $38 million.
HealthEquity, Inc. Price, Consensus and EPS Surprise
HealthEquity, Inc. price-consensus-eps-surprise-chart | HealthEquity, Inc. Quote
Margin Details
In the quarter under review, HealthEquity’s gross profit rose 24.9% to $158.4 million. The gross margin expanded 485 basis points (bps) to 63.6%.
We had projected 57.4% of gross margin for the fiscal third quarter.
Sales and marketing expenses climbed 19.7% to $13.9 million year over year, whereas technology and development expenses climbed 13.8% to $55.6 million. General and administrative expenses also increased 4.9% year over year to $26.4 million. Adjusted operating expenses of $101.6 million increased 11.4%.
Adjusted operating profit totaled $56.8 million, improving 59.5% from the prior-year quarter. Adjusted operating margin in the quarter expanded 630 bps to 22.8%.
Financial Position
The company exited third-quarter fiscal 2024 with cash and cash equivalents of $334.1 million compared with $290.3 million at the fiscal second-quarter end. Total debt (net of issuance costs) at the end of third-quarter fiscal 2024 was $874.3 million compared with $873.6 million at the end of the fiscal second quarter.
Cumulative net cash flow from operating activities at the end of third-quarter fiscal 2024 totaled $165.8 million compared with $95.2 million in the year-ago period.
FY24 Guidance
HealthEquity has upped its revenue and EPS outlook for fiscal 2024.
For fiscal 2024, revenues are now projected to be between $985 million and $995 million, up from the earlier projections of $980 million and $990 million. The Zacks Consensus Estimate is currently pegged at $990.3 million.
Adjusted EPS is now expected to be in the range of $2.08 to $2.16, up from the prior outlook of $1.97-$2.06. The Zacks Consensus Estimate currently stands at $2.03.
Our Take
HealthEquity exited third-quarter fiscal 2024 with better-than-expected results. The company witnessed solid top-line and bottom-line performances in the reported quarter. The top line benefited from robust contributions from the majority of its revenue sources. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. The expansion of both margins also bodes well. The company raising its revenue and adjusted EPS outlook for the fiscal year raises our optimism.
However, a decline in Service revenues in the reported quarter is disappointing. The continued inflationary pressure leading to higher wage inflation issues does not bode well.
Zacks Rank and Other Key Picks
HealthEquity currently sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are DaVita Inc. DVA, DexCom, Inc. DXCM and Integer Holdings Corporation ITGR.
DaVita, flaunting a Zacks Rank of 1, reported third-quarter 2023 adjusted EPS of $2.85, beating the Zacks Consensus Estimate by 48.4%. Revenues of $3.12 billion outpaced the consensus mark by 3.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita has a long-term estimated growth rate of 18.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.6%.
DexCom reported third-quarter 2023 adjusted EPS of 50 cents, beating the Zacks Consensus Estimate by 47.1%. Revenues of $975 million surpassed the Zacks Consensus Estimate by 4%. It currently carries a Zacks Rank #2 (Buy).
DexCom has a long-term estimated growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%.
Integer Holdings reported third-quarter 2023 adjusted EPS of $1.27, beating the Zacks Consensus Estimate by 20.9%. Revenues of $404.7 million surpassed the Zacks Consensus Estimate by 8.7%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
DaVita Inc. (DVA) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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HealthEquity, Inc. HQY reported adjusted earnings per share (EPS) of 60 cents in third-quarter fiscal 2024, which surpassed the Zacks Consensus Estimate by 22.5%. Client-held funds, which are deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $0.76 billion as of Oct 31, 2023. A few other top-ranked stocks in the broader medical space that have announced quarterly results are DaVita Inc. DVA, DexCom, Inc. DXCM and Integer Holdings Corporation ITGR.
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HealthEquity, Inc. HQY reported adjusted earnings per share (EPS) of 60 cents in third-quarter fiscal 2024, which surpassed the Zacks Consensus Estimate by 22.5%. A few other top-ranked stocks in the broader medical space that have announced quarterly results are DaVita Inc. DVA, DexCom, Inc. DXCM and Integer Holdings Corporation ITGR. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Revenues in Detail In the fiscal third quarter, the company generated revenues of $249.2 million, beating the Zacks Consensus Estimate by 2.3%. For fiscal 2024, revenues are now projected to be between $985 million and $995 million, up from the earlier projections of $980 million and $990 million. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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HealthEquity, Inc. HQY reported adjusted earnings per share (EPS) of 60 cents in third-quarter fiscal 2024, which surpassed the Zacks Consensus Estimate by 22.5%. Revenues in Detail In the fiscal third quarter, the company generated revenues of $249.2 million, beating the Zacks Consensus Estimate by 2.3%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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489fdec8-a153-44cd-8571-9da6cc12323d
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714719.0
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2023-12-06 00:00:00 UTC
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Wall Street Bulls Look Optimistic About Nvidia (NVDA): Should You Buy?
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DCOMP
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https://www.nasdaq.com/articles/wall-street-bulls-look-optimistic-about-nvidia-nvda%3A-should-you-buy-0
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nvidia (NVDA).
Nvidia currently has an average brokerage recommendation (ABR) of 1.18, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.18 approximates between Strong Buy and Buy.
Of the 36 recommendations that derive the current ABR, 31 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 86.1% and 8.3% of all recommendations.
Brokerage Recommendation Trends for NVDA
Check price target & stock forecast for Nvidia here>>>
The ABR suggests buying Nvidia, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is NVDA a Good Investment?
Looking at the earnings estimate revisions for Nvidia, the Zacks Consensus Estimate for the current year has increased 14.7% over the past month to $12.17.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nvidia. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nvidia may serve as a useful guide for investors.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Nvidia may serve as a useful guide for investors.
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future.
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Nvidia currently has an average brokerage recommendation (ABR) of 1.18, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
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According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. ABR Should Not Be Confused With Zacks Rank Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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dfc8276f-6940-4555-b7ac-79567760bab4
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714720.0
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2023-12-06 00:00:00 UTC
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Coinbase Global, Inc. (COIN) is Attracting Investor Attention: Here is What You Should Know
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https://www.nasdaq.com/articles/coinbase-global-inc.-coin-is-attracting-investor-attention%3A-here-is-what-you-should-know-0
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Coinbase Global, Inc. (COIN) 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 company have returned +57.4%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Securities and Exchanges industry, which Coinbase Global, Inc. falls in, has gained 12.6%. 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
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.
Coinbase Global, Inc. is expected to post a loss of $0.22 per share for the current quarter, representing a year-over-year change of +91.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +12.5%.
For the current fiscal year, the consensus earnings estimate of -$0.98 points to a change of +91.7% from the prior year. Over the last 30 days, this estimate has changed +7.2%.
For the next fiscal year, the consensus earnings estimate of -$0.70 indicates a change of +29.3% from what Coinbase Global, Inc. is expected to report a year ago. Over the past month, the estimate has changed -31.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Coinbase Global, Inc.
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.
For Coinbase Global, Inc. the consensus sales estimate for the current quarter of $687.75 million indicates a year-over-year change of +9.3%. For the current and next fiscal years, $2.84 billion and $2.99 billion estimates indicate -11% and +5.3% changes, respectively.
Last Reported Results and Surprise History
Coinbase Global, Inc. reported revenues of $674.15 million in the last reported quarter, representing a year-over-year change of +14.2%. EPS of -$0.01 for the same period compares with -$2.43 a year ago.
Compared to the Zacks Consensus Estimate of $656.61 million, the reported revenues represent a surprise of +2.67%. The EPS surprise was +98.15%.
Over the last four quarters, Coinbase Global, Inc. 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.
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.
Coinbase Global, Inc. is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Coinbase Global, Inc. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 Coinbase Global, Inc.
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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 Coinbase Global, Inc. reported revenues of $674.15 million in the last reported quarter, representing a year-over-year change of +14.2%. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Coinbase Global, Inc. 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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Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. And if earnings estimates go up for a company, the fair value for its stock goes up. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2023-12-06 00:00:00 UTC
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Financial Sector Update for 12/06/2023: MA, CBOE, XLF, FAS, FAZ
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https://www.nasdaq.com/articles/financial-sector-update-for-12-06-2023%3A-ma-cboe-xlf-fas-faz
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Financial stocks were edging higher pre-bell Wednesday with the Financial Select Sector SPDR Fund (XLF) recently gaining 0.4%.
The Direxion Daily Financial Bull 3X Shares (FAS) was 1.2% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.1%.
Mastercard (MA) was up 0.7% after its board approved a new share repurchase program of up to $11 billion of its common shares and a 16% increase in quarterly dividend.
Cboe Global Markets (CBOE) was advancing 0.5% after saying the average daily trading volume of its index options contracts reached nearly 4 million in November, up 22% from 3.3 million 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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Financial stocks were edging higher pre-bell Wednesday with the Financial Select Sector SPDR Fund (XLF) recently gaining 0.4%. The Direxion Daily Financial Bull 3X Shares (FAS) was 1.2% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.1%. Cboe Global Markets (CBOE) was advancing 0.5% after saying the average daily trading volume of its index options contracts reached nearly 4 million in November, up 22% from 3.3 million a year earlier.
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The Direxion Daily Financial Bull 3X Shares (FAS) was 1.2% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.1%. Cboe Global Markets (CBOE) was advancing 0.5% after saying the average daily trading volume of its index options contracts reached nearly 4 million in November, up 22% from 3.3 million 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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The Direxion Daily Financial Bull 3X Shares (FAS) was 1.2% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.1%. Cboe Global Markets (CBOE) was advancing 0.5% after saying the average daily trading volume of its index options contracts reached nearly 4 million in November, up 22% from 3.3 million 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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Financial stocks were edging higher pre-bell Wednesday with the Financial Select Sector SPDR Fund (XLF) recently gaining 0.4%. The Direxion Daily Financial Bull 3X Shares (FAS) was 1.2% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.1%. Mastercard (MA) was up 0.7% after its board approved a new share repurchase program of up to $11 billion of its common shares and a 16% increase in quarterly dividend.
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2023-12-06 00:00:00 UTC
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McDonald's plans to add about 10,000 new stores by 2027, double loyalty program sales
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https://www.nasdaq.com/articles/mcdonalds-plans-to-add-about-10000-new-stores-by-2027-double-loyalty-program-sales
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Adds shares in paragraph 5 and background in paragraph 10
Dec 6 (Reuters) - McDonald's MCD.N is planning to open about 10,000 restaurants globally by 2027 and more than double revenue from its loyalty program, the company said on Wednesday, as it invests heavily to automate processes and speed up service at its stores.
The expansion plans it laid out would take its restaurant count to about 50,000 in over 100 countries and mark the fastest period of growth in the company's history, McDonald's said ahead of its investor day.
The company also said that it planned to increase the user base of its loyalty program to 250 million customers by 2027, putting it on track to deliver $45 billion in annual sales.
The program currently has 150 million active users, who generate over $20 billion in system-wide sales.
Shares of the company were down marginally in volatile premarket trading.
McDonald's has doubled down on its marketing strategies over the past several years, including piloting its "Best Burger" initiative to improve the quality of its burgers.
The initiative - which the company scaled to 70 markets recently - will be deployed to nearly all markets by 2026, it said.
For 2024, McDonald's expects nearly 2% growth in system-wide sales, on a constant currency basis, compared with the 1.5% growth it expects for 2023. Operating margins next year are estimated to be in the mid-to-high 40% range.
It also partnered with Alphabet's GOOGL.O Google Cloud to deploy artificial intelligence (AI) solutions to its restaurants worldwide. That would include automating processes to help deliver hotter, fresher food to customers faster.
Although U.S. consumer spending has been pressured, McDonald's has remained largely unaffected due to its affordable menu items and aggressive promotions. McDonald's topped estimates for sales and profit in the quarter ended September.
(Reporting by Deborah Sophia in Bengaluru; Editing by Anil D'Silva)
((DeborahMary.Sophia@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The expansion plans it laid out would take its restaurant count to about 50,000 in over 100 countries and mark the fastest period of growth in the company's history, McDonald's said ahead of its investor day. The company also said that it planned to increase the user base of its loyalty program to 250 million customers by 2027, putting it on track to deliver $45 billion in annual sales. Although U.S. consumer spending has been pressured, McDonald's has remained largely unaffected due to its affordable menu items and aggressive promotions.
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The company also said that it planned to increase the user base of its loyalty program to 250 million customers by 2027, putting it on track to deliver $45 billion in annual sales. The program currently has 150 million active users, who generate over $20 billion in system-wide sales. For 2024, McDonald's expects nearly 2% growth in system-wide sales, on a constant currency basis, compared with the 1.5% growth it expects for 2023.
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Adds shares in paragraph 5 and background in paragraph 10 Dec 6 (Reuters) - McDonald's MCD.N is planning to open about 10,000 restaurants globally by 2027 and more than double revenue from its loyalty program, the company said on Wednesday, as it invests heavily to automate processes and speed up service at its stores. The expansion plans it laid out would take its restaurant count to about 50,000 in over 100 countries and mark the fastest period of growth in the company's history, McDonald's said ahead of its investor day. The company also said that it planned to increase the user base of its loyalty program to 250 million customers by 2027, putting it on track to deliver $45 billion in annual sales.
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The company also said that it planned to increase the user base of its loyalty program to 250 million customers by 2027, putting it on track to deliver $45 billion in annual sales. For 2024, McDonald's expects nearly 2% growth in system-wide sales, on a constant currency basis, compared with the 1.5% growth it expects for 2023. Operating margins next year are estimated to be in the mid-to-high 40% range.
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2023-12-06 00:00:00 UTC
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3 High-Potential Penny Stocks That Can Be 5-Baggers by 2025
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https://www.nasdaq.com/articles/3-high-potential-penny-stocks-that-can-be-5-baggers-by-2025
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Considering the broad market outlook, I believe it’s a good time to buy potential multibagger penny stocks with an investment horizon of 24 months. There is a strong case for multiple rate cuts in 2024 and potentially in 2025 to avoid a recession. This would imply that the financial markets will be flooded with liquidity. Penny stocks tend to perform well in this scenario.
However, I am not talking about the likes of GameStop (NYSE:GME) that skyrocketed during the meme stock euphoria. The rally fizzled out relatively soon. My focus is on penny stocks that represent companies with an attractive underlying business or asset that trade at a valuation gap.
Positive market sentiments coupled with business developments will ensure that these stocks surge higher. In my view, these are 5-bagger penny stocks and I expect these returns before the end of 2025.
Let’s discuss the reasons why these stocks deserve a place in the portfolio.
Bitfarms (BITF)
Source: PHOTOCREO Michal Bednarek / Shutterstock.com
This is not the first time that I am discussing Bitfarms (NASDAQ:BITF) in the last few months. I am pleased that BITF stock has surged by 47% in the last one months. With Bitcoin (BTC-USD) trading above $40,000, I maintain my bullish view on the stock for multibagger returns.
Potential rate cuts in 2024, Bitcoin halving, and the possibility of a spot Bitcoin ETF are some reasons to be bullish on the cryptocurrency. Earlier this year, Standard Chartered had predicted that Bitcoin is likely to touch $120,000 by the end of 2024. If this holds true, I expect BITF stock to be trading in double digits.
Of course, the Bitcoin rally must be associated with positive company specific developments. There is good news on that front with Bitfarms undertaking massive hash rate capacity expansion. As of November, Bitfarms reported hash rate capacity of 6.4EH/s. The target is to boost capacity to 17EH/s by the second half of 2024. This will translate into stellar revenue and cash flow upside.
Yatra Online (YTRA)
Source: Olena Yakobchuk / Shutterstock
With healthy GDP growth, favourable demographics, and an increasing per capita income, the travel and tourism market in India is at an inflection point of growth. Yatra Online (NASDAQ:YTRA), an online travel company, is expected to benefit from positive industry tailwinds. After a correction in the last 12 months, YTRA stock seems undervalued and poised for a big rally.
For Q2 2024, Yatra reported revenue of $11.4 million, which was higher by 14% on a year-on-year (YOY) basis. Further, the Company reported positive adjusted EBITDA. I believe that revenue is likely to accelerate in the coming quarters.
In terms of growth catalyst, Yatra has a customer base of 800 large corporations with an addressable employee base of more than seven million. The corporate travel market is likely to be a key growth driver. The consumer market provides an additional growth momentum.
It’s worth noting that MakeMyTrip (NASDAQ:MMYT) is the largest Indian online travel booking company and trades at a valuation of $4.5 billion. In comparison, Yatra has a valuation of $94 million. With a big addressable market, there is ample scope for multiple players to grow and Yatra is likely to create immense value.
Curaleaf Holdings (CURLF)
Source: Shutterstock
Towards the end of October, Curaleaf Holdings (OTCMKTS:CURLF) stock had touched lows of $2.6. Currently, CURLF stock trades higher by 48% at $3.86. I believe this is just the beginning of the upside and the stock is poised for multibagger returns.
There are multiple reasons to be bullish on Curaleaf. First, unlike several cannabis companies, Curaleaf is not struggling with cash burn. For Q3 2023, the company reported operating and free cash flow of $47 million and $33 million respectively. Curaleaf therefore has high financial flexibility to pursue aggressive growth.
Further, Curaleaf reported muted revenue growth in Q3 2023. However, the company has guided for “a strong end to 2023 and an exciting 2024.” It’s likely that revenue and EBITDA growth will accelerate in the coming quarters and this will translate into positive stock price action.
I must add that Curaleaf has been investing heavily in research and development. The medicinal cannabis segment is likely to be a potential value creator in the European markets.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post 3 High-Potential Penny Stocks That Can Be 5-Baggers by 2025 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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It’s worth noting that MakeMyTrip (NASDAQ:MMYT) is the largest Indian online travel booking company and trades at a valuation of $4.5 billion. However, the company has guided for “a strong end to 2023 and an exciting 2024.” It’s likely that revenue and EBITDA growth will accelerate in the coming quarters and this will translate into positive stock price action. 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 High-Potential Penny Stocks That Can Be 5-Baggers by 2025 appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Considering the broad market outlook, I believe it’s a good time to buy potential multibagger penny stocks with an investment horizon of 24 months. Yatra Online (NASDAQ:YTRA), an online travel company, is expected to benefit from positive industry tailwinds. Curaleaf Holdings (CURLF) Source: Shutterstock Towards the end of October, Curaleaf Holdings (OTCMKTS:CURLF) stock had touched lows of $2.6.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Considering the broad market outlook, I believe it’s a good time to buy potential multibagger penny stocks with an investment horizon of 24 months. Curaleaf Holdings (CURLF) Source: Shutterstock Towards the end of October, Curaleaf Holdings (OTCMKTS:CURLF) stock had touched lows of $2.6. However, the company has guided for “a strong end to 2023 and an exciting 2024.” It’s likely that revenue and EBITDA growth will accelerate in the coming quarters and this will translate into positive stock price action.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Considering the broad market outlook, I believe it’s a good time to buy potential multibagger penny stocks with an investment horizon of 24 months. Of course, the Bitcoin rally must be associated with positive company specific developments. Further, Curaleaf reported muted revenue growth in Q3 2023.
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2023-12-06 00:00:00 UTC
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Walmart Inc. (WMT) Is a Trending Stock: Facts to Know Before Betting on It
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https://www.nasdaq.com/articles/walmart-inc.-wmt-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-6
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Walmart (WMT) 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 world's largest retailer have returned -6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Retail - Supermarkets industry, to which Walmart belongs, has lost 5.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
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, Walmart is expected to post earnings of $1.63 per share, indicating a change of -4.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.
The consensus earnings estimate of $6.44 for the current fiscal year indicates a year-over-year change of +2.4%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.99 indicates a change of +8.5% from what Walmart is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
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 Walmart.
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 Walmart, the consensus sales estimate of $170.25 billion for the current quarter points to a year-over-year change of +3.8%. The $644.5 billion and $665.73 billion estimates for the current and next fiscal years indicate changes of +5.4% and +3.3%, respectively.
Last Reported Results and Surprise History
Walmart reported revenues of $160.8 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $1.53 for the same period compares with $1.50 a year ago.
Compared to the Zacks Consensus Estimate of $159.49 billion, the reported revenues represent a surprise of +0.83%. The EPS surprise was 0%.
Over the last four quarters, Walmart 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.
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.
Walmart 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 Walmart. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Walmart Inc. (WMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Last Reported Results and Surprise History Walmart reported revenues of $160.8 billion in the last reported quarter, representing a year-over-year change of +5.2%. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Walmart. 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. Last Reported Results and Surprise History Walmart reported revenues of $160.8 billion in the last reported quarter, representing a year-over-year change of +5.2%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2023-12-06 00:00:00 UTC
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Flying High: 3 Stocks to Invest in the Up-and-Coming eVTOL Aircraft Sector
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https://www.nasdaq.com/articles/flying-high%3A-3-stocks-to-invest-in-the-up-and-coming-evtol-aircraft-sector
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you want to try your hand at compelling innovation but are tired of researching the next big idea for artificial intelligence, you might consider electric vertical takeoff and landing or eVTOL stocks. Representing the next wave of mobility, eVTOL effectively combine the advancements undergirding helicopters, airplanes and electric vehicles.
From a social impact standpoint, eVTOLs are quiet or at least relatively quiet compared to helicopters. Thanks to the use of wing-borne lift along with lower rotor speeds, this air mobility platform could replace the incessant buzzing of helicopters over major metropolitan areas. And as the acronym implies, this brand of mobility features zero emissions.
To be fair, eVTOL stocks don’t have completely clear skies ahead. Because of their capacity issues, eVTOLs might not be as useful as traditional platforms. As well, the sector faces problems associated with any new endeavor such as regulation and infrastructure development.
Nevertheless, with EVs rapidly taking over our roadways, zero-emission air taxis might not be too far behind. Therefore, speculators may want to consider the below eVTOL stocks.
Toyota (TM)
Source: josefkubes / Shutterstock.com
As an automotive icon, Toyota (NYSE:TM) might not immediately sound like a natural idea for eVTOL stocks. However, Toyota partners with Joby Aviation (NYSE:JOBY), a pure-play enterprise for the next-generation of air mobility services. So, why not just get JOBY stock rather than dealing with Toyota, even though the latter is the largest external shareholder of the former?
Of course, you’re more than welcome to acquire JOBY. However, after gaining about 90% since the beginning of the year, JOBY has incurred significant market volatility. Now, to be fair, in the trailing five sessions, JOBY returned almost 16% of equity value. So, it could very well be on a comeback. Nevertheless, Toyota offers a stable exposure to eVTOL stocks.
Second, as exciting as air taxis are, the sector isn’t without risks. As stated earlier, the regulatory environment – along with consumer acceptance – could represent challenges. Therefore, if eVTOLs simply don’t take off, if you own Toyota, you’re left with a well-run organization that pays dividends.
If there’s a better way to fail, I’d love to hear it.
Archer Aviation (ACHR)
Source: T. Schneider / Shutterstock.com
Of course, we can’t talk about eVTOL stocks without mentioning pure-play enterprises. For that, speculative investors should check out Archer Aviation (NYSE:ACHR). Despite its incredible performance this year, analysts still peg ACHR as a consensus strong buy. What’s more, the average price target lands at $8.13, implying almost 25% growth potential.
Adding to the appeal, the high-side target clocks in at $10. That’s from analysts at Cantor Fitzgerald, who reiterated their bullish assessment on ACHR in early November. If shares hit the target, that would imply about a 54% return from the time of writing. It could very well be a believable forecast.
As InvestorPlace’s Faisal Humayun stated, Archer secured a $142 million order from the U.S. Air Force. As well, the company is growing internationally, signing with various partners with an eye on conducting operations in 2026. Significantly, the air mobility specialist also commands a liquidity buffer of $600 million, which should support operations until it achieves commercialization in 2025. It’s risky because it’s already gained over 237% year-to-date. Still, the fundamentals point to more gas in the tank.
Blade Air Mobility (BLDE)
Source: Wirestock Creators / Shutterstock.com
For those looking for a relative deal among eVTOL stocks, Blade Air Mobility (NASDAQ:BLDE) could be quite attractive. On paper, it admittedly appears BLDE represents the riskiest of the bunch. While other eVTOL specialists are printing returns of nearly double or more on a YTD basis, BLDE is actually below parity since the January opener.
Indeed, in the trailing 52 weeks, shares gave up over 30% of equity value. So, it’s clearly a laggard. Nevertheless, that could inspire contrarians because theoretically, BLDE isn’t as vulnerable to bag-holding concerns as its pure-play brethren. But the real catalyst is the expert opinion. Right now, shares command a unanimous buy rating among three experts. Further, the average price target stands at $8.17, implying almost 145% upside potential.
Perhaps most importantly, what distinguishes Blade Air from many of its rivals is that it’s not a pre-revenue enterprise. Conspicuously, in the third quarter, the company rang up sales of $71.4 million, up from $45.7 million in the year-ago quarter. As well, it posted net income of $300,000, which may be a small sign of things to come.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
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The post Flying High: 3 Stocks to Invest in the Up-and-Coming eVTOL Aircraft Sector 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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Thanks to the use of wing-borne lift along with lower rotor speeds, this air mobility platform could replace the incessant buzzing of helicopters over major metropolitan areas. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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However, Toyota partners with Joby Aviation (NYSE:JOBY), a pure-play enterprise for the next-generation of air mobility services. Archer Aviation (ACHR) Source: T. Schneider / Shutterstock.com Of course, we can’t talk about eVTOL stocks without mentioning pure-play enterprises. Blade Air Mobility (BLDE) Source: Wirestock Creators / Shutterstock.com For those looking for a relative deal among eVTOL stocks, Blade Air Mobility (NASDAQ:BLDE) could be quite attractive.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you want to try your hand at compelling innovation but are tired of researching the next big idea for artificial intelligence, you might consider electric vertical takeoff and landing or eVTOL stocks. Blade Air Mobility (BLDE) Source: Wirestock Creators / Shutterstock.com For those looking for a relative deal among eVTOL stocks, Blade Air Mobility (NASDAQ:BLDE) could be quite attractive. 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 Flying High: 3 Stocks to Invest in the Up-and-Coming eVTOL Aircraft Sector appeared first on InvestorPlace.
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However, Toyota partners with Joby Aviation (NYSE:JOBY), a pure-play enterprise for the next-generation of air mobility services. Second, as exciting as air taxis are, the sector isn’t without risks. Blade Air Mobility (BLDE) Source: Wirestock Creators / Shutterstock.com For those looking for a relative deal among eVTOL stocks, Blade Air Mobility (NASDAQ:BLDE) could be quite attractive.
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b406f054-cd73-44b5-bf69-b68f529760ee
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714726.0
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2023-12-06 00:00:00 UTC
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Xponential (XPOF) Enters Into a Partnership With KINRGY
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https://www.nasdaq.com/articles/xponential-xpof-enters-into-a-partnership-with-kinrgy
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Xponential Fitness, Inc. XPOF collaborated with KINRGY, a dance and fitness platform, for the debut of brick-and-mortar KINRGY studio locations.
Per the agreement, Xponential will acquire certain intellectual property of KINRGY along with the opportunity to rebrand three studio locations of its dance-cardio brand, AKT, and operate it as KINRGY Studios.
Xponential is optimistic about the new partnership with Julianne Hough’s KINRGY as it believes that by leveraging its platform and proven success in operating fitness studios, its team can create and deliver a top-tier in-studio experience.
Xponential’s Expansion Initiatives
Xponential is one of the largest global franchisors of boutique fitness brands and is witnessing robust demand for its brands outside of North America. The company’s growth durability is primarily backed by new studios opened by its franchisees, collaborations and other additional business in the existing locations.
As of Sep 30, 2023, Xponential operated about 2,980 studios globally with a total of 6,088 licenses sold across its 10 leading fitness brands. As of the third quarter of 2023, the company has franchise, master franchise and international expansion agreements in 23 countries globally. In the same quarter, the franchise revenues of the company grew 21% to $36.4 million year over year.
The company’s persistent expansion initiatives into new markets have reflected in 1,000 studios obligated to open under its master franchise agreements.
Image Source: Zacks Investment Research
Shares of XPOF have lost 47.2% in the past six months compared with the Zacks Leisure and Recreation Services industry’s 1.5% decline. Although the shares of the company have underperformed the industry, its accretive expansion strategies will help it gain traction in this high-cost environment in the upcoming period.
Zacks Rank & Key Picks
Xponential currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has rallied 102.1% in the past year. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates an improvement of 57.7% and 187.9%, respectively, from the year-ago period’s level.
Live Nation Entertainment, Inc. LYV currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 37.5%, on average. The stock has risen 14.4% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates growth of 28.6% and 132.8%, respectively, from the year-ago period’s level.
Grand Canyon Education, Inc. LOPE currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 9.9%, on average. The stock has risen 29.8% in the past year.
The Zacks Consensus Estimate for LOPE’s 2023 sales and EPS indicates an improvement of 7.1% and 17.1%, respectively, from the year-ago period’s level.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report
Xponential Fitness, Inc. (XPOF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Xponential is optimistic about the new partnership with Julianne Hough’s KINRGY as it believes that by leveraging its platform and proven success in operating fitness studios, its team can create and deliver a top-tier in-studio experience. The company’s growth durability is primarily backed by new studios opened by its franchisees, collaborations and other additional business in the existing locations. Although the shares of the company have underperformed the industry, its accretive expansion strategies will help it gain traction in this high-cost environment in the upcoming period.
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Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy) at present. Live Nation Entertainment, Inc. LYV currently sports a Zacks Rank of 1. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report Xponential Fitness, Inc. (XPOF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Shares of XPOF have lost 47.2% in the past six months compared with the Zacks Leisure and Recreation Services industry’s 1.5% decline. Zacks Rank & Key Picks Xponential currently carries a Zacks Rank #3 (Hold). Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report Xponential Fitness, Inc. (XPOF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Per the agreement, Xponential will acquire certain intellectual property of KINRGY along with the opportunity to rebrand three studio locations of its dance-cardio brand, AKT, and operate it as KINRGY Studios. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates an improvement of 57.7% and 187.9%, respectively, from the year-ago period’s level. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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0cf3d9ae-a2c9-4b41-8a77-d99e690274da
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714727.0
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2023-12-06 00:00:00 UTC
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Ferguson plc (FERG) Hits Fresh High: Is There Still Room to Run?
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https://www.nasdaq.com/articles/ferguson-plc-ferg-hits-fresh-high%3A-is-there-still-room-to-run
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Have you been paying attention to shares of Ferguson plc (FERG)? Shares have been on the move with the stock up 11.2% over the past month. The stock hit a new 52-week high of $176.48 in the previous session. Ferguson plc has gained 37.1% since the start of the year compared to the 7% move for the Zacks Industrial Products sector and the 14.4% return for the Zacks Manufacturing - General Industrial industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on December 5, 2023, Ferguson plc reported EPS of $2.65 versus consensus estimate of $2.61 while it beat the consensus revenue estimate by 1.26%.
For the current fiscal year, Ferguson plc is expected to post earnings of $9.69 per share on $29.72 billion in revenues. This represents a -1.52% change in EPS on a -0.05% change in revenues. For the next fiscal year, the company is expected to earn $10.70 per share on $31.5 billion in revenues. This represents a year-over-year change of 10.46% and 5.97%, respectively.
Valuation Metrics
Ferguson plc may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ferguson plc has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.1X. On a trailing cash flow basis, the stock currently trades at 16.1X versus its peer group's average of 11.2X. Additionally, the stock has a PEG ratio of 14.15. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Ferguson plc 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 Ferguson plc passes the test. Thus, it seems as though Ferguson plc shares could have a bit more room to run in the near term.
How Does FERG Stack Up to the Competition?
Shares of FERG 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 Applied Industrial Technologies, Inc. (AIT). AIT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Applied Industrial Technologies, Inc. beat our consensus estimate by 15.46%, and for the current fiscal year, AIT is expected to post earnings of $9.43 per share on revenue of $4.54 billion.
Shares of Applied Industrial Technologies, Inc. have gained 4.3% over the past month, and currently trade at a forward P/E of 17.48X and a P/CF of 15.96X.
The Manufacturing - General Industrial industry may rank in the bottom 58% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for FERG and AIT, even beyond their own solid fundamental situation.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Ferguson plc (FERG) : Free Stock Analysis 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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Applied Industrial Technologies, Inc. beat our consensus estimate by 15.46%, and for the current fiscal year, AIT is expected to post earnings of $9.43 per share on revenue of $4.54 billion. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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In its last earnings report on December 5, 2023, Ferguson plc reported EPS of $2.65 versus consensus estimate of $2.61 while it beat the consensus revenue estimate by 1.26%. For the current fiscal year, Ferguson plc is expected to post earnings of $9.69 per share on $29.72 billion in revenues. Click to get this free report Ferguson plc (FERG) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ferguson plc has gained 37.1% since the start of the year compared to the 7% move for the Zacks Industrial Products sector and the 14.4% return for the Zacks Manufacturing - General Industrial industry. 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 Ferguson plc passes the test. Click to get this free report Ferguson plc (FERG) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ferguson plc has gained 37.1% since the start of the year compared to the 7% move for the Zacks Industrial Products sector and the 14.4% return for the Zacks Manufacturing - General Industrial industry. Ferguson plc has a Value Score of B. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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10a98a89-bd86-470e-bc2c-0258f7edc29d
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714728.0
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2023-12-06 00:00:00 UTC
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Vera Bradley (VRA) Beats Q3 Earnings Estimates
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https://www.nasdaq.com/articles/vera-bradley-vra-beats-q3-earnings-estimates
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Vera Bradley (VRA) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 111.11%. A quarter ago, it was expected that this handbag and accessories company would post earnings of $0.12 per share when it actually produced earnings of $0.33, delivering a surprise of 175%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Vera Bradley, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $114.99 million for the quarter ended October 2023, missing the Zacks Consensus Estimate by 6.59%. This compares to year-ago revenues of $124.04 million. 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.
Vera Bradley shares have added about 52.8% since the beginning of the year versus the S&P 500's gain of 19%.
What's Next for Vera Bradley?
While Vera Bradley has outperformed 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 Vera Bradley: 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 $0.27 on $148.7 million in revenues for the coming quarter and $0.53 on $494.32 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, Retail - Apparel and Shoes is currently in the bottom 40% 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, Torrid Holdings (CURV), has yet to report results for the quarter ended October 2023. The results are expected to be released on December 7.
This women's apparel retailer is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -171.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Torrid Holdings' revenues are expected to be $245.51 million, down 15.4% from the year-ago quarter.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Vera Bradley, Inc. (VRA) : Free Stock Analysis Report
Torrid Holdings Inc. (CURV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 #3 (Hold) for the stock. This women's apparel retailer is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -171.4%. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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Vera Bradley, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $114.99 million for the quarter ended October 2023, missing the Zacks Consensus Estimate by 6.59%. The current consensus EPS estimate is $0.27 on $148.7 million in revenues for the coming quarter and $0.53 on $494.32 million in revenues for the current fiscal year. Click to get this free report Vera Bradley, Inc. (VRA) : Free Stock Analysis Report Torrid Holdings Inc. (CURV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Vera Bradley (VRA) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.09 per share. Vera Bradley, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $114.99 million for the quarter ended October 2023, missing the Zacks Consensus Estimate by 6.59%. Click to get this free report Vera Bradley, Inc. (VRA) : Free Stock Analysis Report Torrid Holdings Inc. (CURV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Vera Bradley (VRA) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.09 per share. 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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a9c9a645-43f5-494f-9b2f-5daf9967a2bf
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714729.0
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2023-12-06 00:00:00 UTC
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3 Hot Stocks to Hold On to for Long-Term Growth
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https://www.nasdaq.com/articles/3-hot-stocks-to-hold-on-to-for-long-term-growth
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While enterprises focused on expanding the top line tend to cater to a short-and-sweet methodology, compelling long-term growth stocks to buy and hold may reward speculators that are not necessarily in a big hurry. Over time, these ideas could lead to significant gains. Plus, they have advantages that many flavors of the week lack.
First and foremost, hot growth stocks that require a bit of marination benefits speculators with busy lives. Let’s face it – not everybody has the time (or the patience) to watch trading monitors all day. That’s especially true for folks living in the west coast. By the time you’ve had your morning coffee and are ready to tackle the day, it’s already afternoon in New York.
Second, your typical ideas for hot growth stocks can fly high and quickly sink lower. That might limit the market for such entities as again, many if not most people can’t sit around at a trading station all day. Yes, you want confidence that your investment can grow. But you also want some reassurance that they won’t completely collapse in a day or two.
With that, below are intriguing ideas for long-term growth stocks to buy and hold.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
I remember a time when Facebook under Meta Platforms (NASDAQ:META) approached monthly active users (MAUs) of nearly 2 billion people. Now, the latest statistic states that this already wild status has jumped to over 3 billion MAUs. It seems there’s no slowing this massive giant, making it one of the long-term growth stocks to consider.
Analysts agree, rating META one a consensus strong buy. This assessment breaks down as 37 buys, one hold and zero sells. Overall, the average price target lands at $387.71, a decent upside potential given the dominance and maturity of the underlying business. However, the high-side target comes in at $435 by Tigress Financial’s Ivan Feinseth.
In my view, that’s still a reasonable target over the next 12 months. Fundamentally, Facebook represents a consumer data goldmine. Barring a catastrophic failure, the social network is permanently relevant. Despite major headwinds that saw Facebook incur negative sales growth in 2022, on a trailing-12-month (TTM) basis, the company’s back on track with sales of nearly $127 billion.
Thus, it’s one of the growth stocks to buy and hold.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
At this point, it’s easy to dismiss Amazon (NASDAQ:AMZN) as an e-commerce and technology behemoth that has little room to expand. Further, debate has erupted over whether Amazon should become a dividend-paying enterprise or just broken up into smaller entities. Either approach could unlock shareholder value. Yet the core narrative remains intact, making it one of the long-term growth stocks to consider.
First, let’s check in with the analysts. Right now, the experts peg AMZN as a unanimous strong buy. Here, we’re not just talking about garden-variety unanimity. Rather, 42 analysts stated that AMZN is a buy. Overall, the average price target lands at $176.50. Further, the maximum price target stands at $210, courtesy of Tigress’ Ivan Feinseth.
Second, the fundamentals support the overwhelming optimism. For example, e-commerce represented 16.5% of all retail transactions in the second quarter of 2020. After sliding conspicuously in subsequent quarters, this metric is now back up at 15.6%. That’s a powerful backdrop for AMZN.
Also, despite nearly posting $514 billion in sales last year, TTM revenue soars at $554 billion. Despite its age, AMZN is one of the hot growth stocks.
IonQ (IONQ)
Source: Amin Van / Shutterstock.com
Admittedly, the prior long-term growth stocks to buy and hold represented relatively safe ideas. For those that want to dial up the risk-reward quotient, they may consider IonQ (NYSE:IONQ). As an entity that already gained almost 300% of equity value since the start of the year, there’s a chance of bag-holding with IONQ. Still, analysts believe in the sustained bullishness of the quantum computing hardware and software company.
To be fair, we’re not talking about a significant number of experts – only three. That said, the consensus does land at moderate buy. Also, the average price target sees shares hitting $16.67. On paper, that’s relatively modest for the risk involved. Now, the high-side target is an improvement at $21, which comes courtesy of Craig-Hallum’s Richard Shannon.
Nevertheless, with so much talk about artificial intelligence and machine learning, there may come a time when current-paradigm computing equipment just isn’t a match for the advancements in digital innovation. Over time, we may need to make a radical computing pivot, which could benefit IONQ.
To clarify, this company is about banking on narratives and what could be. However, it’s an extremely powerful storyline for hot growth stocks.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The post 3 Hot Stocks to Hold On to for Long-Term Growth 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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Nevertheless, with so much talk about artificial intelligence and machine learning, there may come a time when current-paradigm computing equipment just isn’t a match for the advancements in digital innovation. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Hot Stocks to Hold On to for Long-Term Growth appeared first on InvestorPlace.
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With that, below are intriguing ideas for long-term growth stocks to buy and hold. Meta Platforms (META) Source: Ascannio / Shutterstock.com I remember a time when Facebook under Meta Platforms (NASDAQ:META) approached monthly active users (MAUs) of nearly 2 billion people. IonQ (IONQ) Source: Amin Van / Shutterstock.com Admittedly, the prior long-term growth stocks to buy and hold represented relatively safe ideas.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips While enterprises focused on expanding the top line tend to cater to a short-and-sweet methodology, compelling long-term growth stocks to buy and hold may reward speculators that are not necessarily in a big hurry. Meta Platforms (META) Source: Ascannio / Shutterstock.com I remember a time when Facebook under Meta Platforms (NASDAQ:META) approached monthly active users (MAUs) of nearly 2 billion people. IonQ (IONQ) Source: Amin Van / Shutterstock.com Admittedly, the prior long-term growth stocks to buy and hold represented relatively safe ideas.
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Thus, it’s one of the growth stocks to buy and hold. Rather, 42 analysts stated that AMZN is a buy. IonQ (IONQ) Source: Amin Van / Shutterstock.com Admittedly, the prior long-term growth stocks to buy and hold represented relatively safe ideas.
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714730.0
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2023-12-06 00:00:00 UTC
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Do Options Traders Know Something About Range Resources (RRC) Stock We Don't?
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-range-resources-rrc-stock-we-dont-1
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Investors in Range Resources Corporation RRC need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $3.00 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 Range Resources shares, but what is the fundamental picture for the company? Currently, Range Resources is a Zacks Rank #3 (Hold) in the Oil and Gas - Exploration and Production - United States 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 four have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 50 cents per share to 47 cents in that period.
Given the way analysts feel about Range Resources right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Range Resources Corporation (RRC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Range Resources Corporation (RRC) : 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, Range Resources is a Zacks Rank #3 (Hold) in the Oil and Gas - Exploration and Production - United States 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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Given the way analysts feel about Range Resources right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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76a4e5ab-55c6-43d6-9423-0b89d7f83c1d
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714731.0
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2023-12-06 00:00:00 UTC
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Consumer Sector Update for 12/06/2023: BTI, OLLI, CPB, XLP, XLY
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https://www.nasdaq.com/articles/consumer-sector-update-for-12-06-2023%3A-bti-olli-cpb-xlp-xly
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Consumer stocks were mixed premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) was slightly lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.8%.
British American Tobacco (BTI) was slipping 9% after saying it is writing down the value of some of its US cigarette brands by 25 billion pounds ($31.48 billion) as it acknowledged that the US cigarette market may not be profitable in the long run.
Ollie's Bargain Outlet Holdings (OLLI) was over 3% higher after it reported fiscal Q3 adjusted net income of $0.51 per diluted share, up from $0.37 a year earlier. Analysts polled by Capital IQ expected $0.45.
Campbell Soup (CPB) reported fiscal Q1 fiscal adjusted earnings of $0.91 per diluted share, down from $1.02 a year earlier. Analysts polled by Capital IQ expected $0.88. Campbell Soup was advancing by over 2% pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consumer stocks were mixed premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) was slightly lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.8%. British American Tobacco (BTI) was slipping 9% after saying it is writing down the value of some of its US cigarette brands by 25 billion pounds ($31.48 billion) as it acknowledged that the US cigarette market may not be profitable in the long run. Ollie's Bargain Outlet Holdings (OLLI) was over 3% higher after it reported fiscal Q3 adjusted net income of $0.51 per diluted share, up from $0.37 a year earlier.
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Consumer stocks were mixed premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) was slightly lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.8%. Analysts polled by Capital IQ expected $0.45. Campbell Soup (CPB) reported fiscal Q1 fiscal adjusted earnings of $0.91 per diluted share, down from $1.02 a year earlier.
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Consumer stocks were mixed premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) was slightly lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.8%. Ollie's Bargain Outlet Holdings (OLLI) was over 3% higher after it reported fiscal Q3 adjusted net income of $0.51 per diluted share, up from $0.37 a year earlier. Campbell Soup (CPB) reported fiscal Q1 fiscal adjusted earnings of $0.91 per diluted share, down from $1.02 a year earlier.
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Consumer stocks were mixed premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) was slightly lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.8%. British American Tobacco (BTI) was slipping 9% after saying it is writing down the value of some of its US cigarette brands by 25 billion pounds ($31.48 billion) as it acknowledged that the US cigarette market may not be profitable in the long run. Campbell Soup (CPB) reported fiscal Q1 fiscal adjusted earnings of $0.91 per diluted share, down from $1.02 a year earlier.
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c35595a5-a706-4a5a-bd97-23cdc22c6ccb
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714732.0
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2023-12-06 00:00:00 UTC
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NIO Q3 Loss Narrower Than Expected Due to Higher Deliveries
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https://www.nasdaq.com/articles/nio-q3-loss-narrower-than-expected-due-to-higher-deliveries
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NIO Inc. NIO incurred a loss per American Depositary Share of 37 cents in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 43 cents. However, the reported loss is wider than the year-ago period's reported loss of 36 cents.
This China-based electric vehicle maker posted revenues of $2,613.3 million, which lagged the Zacks Consensus Estimate of $2,631.1 million but increased roughly 43% year over year due to higher delivery volumes.
NIO Inc. Price, Consensus and EPS Surprise
NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote
Key Details
NIO delivered 55,432 vehicles in the third quarter, up 75.4% year over year, including 37,585 SUVs and 17,847 sedans.
Revenues generated from vehicle sales amounted to $2,386.1 million, up 42.2% year over year. The increase in sales was mainly attributable to higher delivery volume. Other sales of $227.2 million rose 51.2%. Strong sales of used cars and car accessories and the provision of power solutions contributed to the growth.
Gross profit came in at $208.8 million, down 14.4% year over year. Vehicle margin in the reported quarter fell to 11% from 16.4% in third-quarter 2022 due to changes in product mix. Gross margin was 8%, down from 13.3% in the year-ago quarter.
Research & development and selling, general & administrative costs amounted to $416.5 million and $494.7 million, respectively, indicating a year-over-year increase of 0.6% and 29.7%.
As of Sep 30, 2023, cash and cash equivalents totaled $3,301 million and long-term debt amounted to $1,666 million.
For fourth-quarter 2023, NIO projects deliveries in the range of 47,000-49,000 vehicles, implying a 17.3-22.3% increase year over year. Revenues are estimated to be between $2,204 million and $2,289 million.
Zacks Rank & Key Picks
NIO currently carries a Zacks Rank #3 (Hold).
Some better-ranked players for investors interested in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting 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 VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimate for 2023 and 2024 has increased 3 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2023 and 2024 has increased 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimate for 2023 and 2024 has increased 59 cents and 55 cents, respectively, in the past 60 days.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
AB Volvo (VLVLY) : Free Stock Analysis Report
RENAULT (RNLSY) : Free Stock Analysis Report
NIO Inc. (NIO) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked players for investors interested in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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This China-based electric vehicle maker posted revenues of $2,613.3 million, which lagged the Zacks Consensus Estimate of $2,631.1 million but increased roughly 43% year over year due to higher delivery volumes. Some better-ranked players for investors interested in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report AB Volvo (VLVLY) : Free Stock Analysis Report RENAULT (RNLSY) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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NIO Inc. NIO incurred a loss per American Depositary Share of 37 cents in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 43 cents. This China-based electric vehicle maker posted revenues of $2,613.3 million, which lagged the Zacks Consensus Estimate of $2,631.1 million but increased roughly 43% year over year due to higher delivery volumes. Click to get this free report AB Volvo (VLVLY) : Free Stock Analysis Report RENAULT (RNLSY) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Other sales of $227.2 million rose 51.2%. The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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bd6ba186-665f-4aaa-83b2-22806f3a0aab
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714733.0
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2023-12-06 00:00:00 UTC
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Oracle Corporation (ORCL) Is a Trending Stock: Facts to Know Before Betting on It
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https://www.nasdaq.com/articles/oracle-corporation-orcl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-2
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Oracle (ORCL) 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.
Over the past month, shares of this software maker have returned +5.1%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Computer - Software industry, which Oracle falls in, has gained 7.5%. 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
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.
For the current quarter, Oracle is expected to post earnings of $1.32 per share, indicating a change of +9.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $5.52 points to a change of +7.8% from the prior year. Over the last 30 days, this estimate has changed -0.5%.
For the next fiscal year, the consensus earnings estimate of $6.15 indicates a change of +11.4% from what Oracle is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Oracle.
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 Oracle, the consensus sales estimate of $13.05 billion for the current quarter points to a year-over-year change of +6.3%. The $53.58 billion and $57.8 billion estimates for the current and next fiscal years indicate changes of +7.3% and +7.9%, respectively.
Last Reported Results and Surprise History
Oracle reported revenues of $12.45 billion in the last reported quarter, representing a year-over-year change of +8.8%. EPS of $1.19 for the same period compares with $1.03 a year ago.
Compared to the Zacks Consensus Estimate of $12.45 billion, the reported revenues represent a surprise of 0%. The EPS surprise was +4.39%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
Oracle is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Oracle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Oracle Corporation (ORCL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 Oracle.
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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 Oracle reported revenues of $12.45 billion in the last reported quarter, representing a year-over-year change of +8.8%. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The 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. 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. 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 Oracle. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714734.0
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2023-12-06 00:00:00 UTC
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Improve Your Retirement Income with These 3 Top-Ranked Dividend Stocks
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https://www.nasdaq.com/articles/improve-your-retirement-income-with-these-3-top-ranked-dividend-stocks-119
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Here's a revealing data point: older Americans are scared more of outliving wealth than of death itself.
And older Americans have legitimate reasons for this worry, even if they have dutifully saved for their golden years. That's because the traditional ways people manage retirement may no longer provide enough income to meet expenses - and with people generally living longer, the principal retirement savings is exhausted far too early in the retirement period.
Retirement investing approaches of the past don't work today.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.
While this yield reduction may not seem drastic, it adds up: for a $1 million investment in 10-year Treasuries, the rate drop means a difference in yield of more than $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
As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek.
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.
NextEra Energy (NEE) is currently shelling out a dividend of $0.47 per share, with a dividend yield of 3.21%. This compares to the Utility - Electric Power industry's yield of 3.56% and the S&P 500's yield of 1.68%. The company's annualized dividend growth in the past year was 10%. Check NextEra Energy (NEE) dividend history here>>>
Park Hotels & Resorts (PK) is paying out a dividend of $0.93 per share at the moment, with a dividend yield of 4.06% compared to the REIT and Equity Trust - Other industry's yield of 4.31% and the S&P 500's yield. The annualized dividend growth of the company was 1400% over the past year. Check Park Hotels & Resorts (PK) dividend history here>>>
Currently paying a dividend of $1.25 per share, Prudential (PRU) has a dividend yield of 5.1%. This is compared to the Insurance - Multi line industry's yield of 1.66% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 4.17%. Check Prudential (PRU) dividend history here>>>
But aren't stocks generally more risky than bonds?
Yes, that's true. As a broad category, bonds carry less risk than stocks. However, the stocks we are talking about - dividend -paying stocks from high-quality companies - can generate income over time and also mitigate the overall volatility of your portfolio compared to the stock market as a whole.
A silver lining to owning dividend stocks for your retirement portfolio is that many companies, especially blue chip stocks, increase their dividends over time, helping offset the effects of inflation on your potential retirement income.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges.
Bottom Line
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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. 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 NextEra Energy (NEE) dividend history here>>> Park Hotels & Resorts (PK) is paying out a dividend of $0.93 per share at the moment, with a dividend yield of 4.06% compared to the REIT and Equity Trust - Other industry's yield of 4.31% and the S&P 500's yield. Check Park Hotels & Resorts (PK) dividend history here>>> Currently paying a dividend of $1.25 per share, Prudential (PRU) has a dividend yield of 5.1%. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Invest in Dividend Stocks As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek. Check NextEra Energy (NEE) dividend history here>>> Park Hotels & Resorts (PK) is paying out a dividend of $0.93 per share at the moment, with a dividend yield of 4.06% compared to the REIT and Equity Trust - Other industry's yield of 4.31% and the S&P 500's yield. A silver lining to owning dividend stocks for your retirement portfolio is that many companies, especially blue chip stocks, increase their dividends over time, helping offset the effects of inflation on your potential retirement income.
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Retirement investing approaches of the past don't work today. Check NextEra Energy (NEE) dividend history here>>> Park Hotels & Resorts (PK) is paying out a dividend of $0.93 per share at the moment, with a dividend yield of 4.06% compared to the REIT and Equity Trust - Other industry's yield of 4.31% and the S&P 500's yield. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714735.0
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2023-12-06 00:00:00 UTC
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The 3 Best EV Charging Stocks to Buy in December
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https://www.nasdaq.com/articles/the-3-best-ev-charging-stocks-to-buy-in-december
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The electric vehicle industry continues to be confronted by many negative factors. That has sent EV charging stocks much lower throughout 2023. Several of the world’s leading names have seen their share prices suffer dramatic falls.
Meanwhile, upstart firms in the space continue to make progress, making equity in those firms particularly attractive. Beyond that, established firms in the space continue to make inroads into the EV infrastructure sector. There’s plenty of reason to continue to believe in the space. Governments continue to subsidize the build-out of EV charging infrastructure. and electric vehicles are here to stay. A dollar invested today certainly has the potential to multiply and value.
ChargePoint (CHPT)
Source: shutterstock.com/JLStock
Few firms have suffered as much as ChargePoint (NYSE:CHPT) has in 2023. The cost of developing electric vehicle charging infrastructure is particularly high, introducing risk to the company and its operating model.
So, the company faces significant trouble when broader troubles affect its industry. That’s essentially what’s happened to ChargePoint, particularly in the most recent quarter. The company faces multiple pressures, leading to a drastic decrease in demand. As a result, the company has had to drastically decrease its revenue guidance relative to previous expectations.
That has broadly been the story for the company and its stock throughout 2023, and share prices have fallen from $10 to $2. All of that said, there is a silver lining in this gray cloud. ChargePoint Remains the leader in EV charging stations and EV charging infrastructure overall. It continues to have a strong first-mover advantage that makes it a contrarian pick in the space. At such a low price, it’s very hard to argue against the company right now.
Tesla (TSLA)
Source: Khairil Azhar Junos/Shutterstock.com
There’s little arguing against the notion that Tesla (NASDAQ:TSLA) is the best EV stock overall. The company continues to be a pioneering force in the tech industry and, of course, in the electric vehicle space.
Tesla’s Model 3, Model S, Model Y, and cybertruck continue to define the EV space. the company has had to lower its prices multiple times throughout 20-23 in an effort to capture greater Market share. based on recent earnings performance, it’s easy to suggest that Tesla continues to be a well-run company. Tesla continues to focus on reducing the cost of goods per unit sold and investing in AI, among other things. This then makes it one of those EV charging stocks to consider.
Until recently, Tesla’s charging network was essentially off-limits to manufacturers of other vehicles. That’s changing. Tesla is opening its charging network, and other manufacturers are anticipated to be able to use Tesla superchargers beginning in 2024. It is but one more reason to consider investing in Tesla.
EVgo (EVGO)
Source: Marko Aliaksandr / Shutterstock
EVgo (NASDAQ:EVGO) operates a direct current fast charging network And is one of many potential disruptors in the EV infrastructure space. Its stock is inexpensive and continues to hold lots of potential based on analyst target prices.
The company continues to make massive fundamental strides. In the third quarter, EVgo’s revenues grew by 234%, reaching $35.1 million. That impressive growth allowed the company to transition from a GAAP loss to GAAP profitability profitability. The company still produces significant net losses; however, those losses narrowed by 45% during the period.
The company currently boasts 785,000 customer accounts, 106,000 of which were added during the third quarter. The company’s DC fast charging stations are in $950 locations across the United States. 145 million Americans are within 10 miles of one of its charging stations. The company also boasts 10 OEM partners spanning the biggest names in the automotive industry.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
More From InvestorPlace
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The post The 3 Best EV Charging Stocks to Buy in December 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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Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The 3 Best EV Charging Stocks to Buy in December appeared first on InvestorPlace.
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ChargePoint Remains the leader in EV charging stations and EV charging infrastructure overall. EVgo (EVGO) Source: Marko Aliaksandr / Shutterstock EVgo (NASDAQ:EVGO) operates a direct current fast charging network And is one of many potential disruptors in the EV infrastructure space. That impressive growth allowed the company to transition from a GAAP loss to GAAP profitability profitability.
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ChargePoint Remains the leader in EV charging stations and EV charging infrastructure overall. The company continues to be a pioneering force in the tech industry and, of course, in the electric vehicle space. EVgo (EVGO) Source: Marko Aliaksandr / Shutterstock EVgo (NASDAQ:EVGO) operates a direct current fast charging network And is one of many potential disruptors in the EV infrastructure space.
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ChargePoint Remains the leader in EV charging stations and EV charging infrastructure overall. This then makes it one of those EV charging stocks to consider. It is but one more reason to consider investing in Tesla.
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1eca181b-5df6-419f-8606-c5ad2e1a7446
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714736.0
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2023-12-06 00:00:00 UTC
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Implied Volatility Surging for DLocal (DLO) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-dlocal-dlo-stock-options-0
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nan
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nan
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Investors in DLocal Limited DLO 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 DLocal shares, but what is the fundamental picture for the company? Currently, DLocal is a Zacks Rank #4 (Sell) in the Financial Transaction Services industry that ranks in the Bottom 43% of our Zacks Industry Rank. Over the last 60 days, our Zacks Consensus Estimate for the current quarter has moved from 17 cents per share to 16 cents in that period.
Given the way analysts feel about DLocal right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
DLocal Limited (DLO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report DLocal Limited (DLO) : 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, DLocal is a Zacks Rank #4 (Sell) in the Financial Transaction Services industry that ranks in the Bottom 43% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel about DLocal right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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edcd3163-e407-444f-b0a7-a2d952c70a6c
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714737.0
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2023-12-06 00:00:00 UTC
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Compared to Estimates, Thor Industries (THO) Q1 Earnings: A Look at Key Metrics
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DCOMP
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https://www.nasdaq.com/articles/compared-to-estimates-thor-industries-tho-q1-earnings%3A-a-look-at-key-metrics
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nan
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nan
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Thor Industries (THO) reported $2.5 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 19.5%. EPS of $0.99 for the same period compares to $2.53 a year ago.
The reported revenue represents a surprise of -0.38% over the Zacks Consensus Estimate of $2.51 billion. With the consensus EPS estimate being $0.87, the EPS surprise was +13.79%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Thor Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Units - Recreation Vehicles - European: 11,892 versus the three-analyst average estimate of 10,926.
Units - Recreational vehicles - North American Towable: 28,107 versus the three-analyst average estimate of 29,236.
Unit sales - Total: 45,581 versus the three-analyst average estimate of 45,741.
Unit sales - Total recreation vehicles(Total North America): 33,689 compared to the 34,816 average estimate based on three analysts.
Units - Recreational vehicles - North American Motorized: 5,582 versus the three-analyst average estimate of 5,579.
Net Sales- Recreational vehicles- European: $708.20 million compared to the $569.28 million average estimate based on four analysts. The reported number represents a change of +40.4% year over year.
Net Sales- Recreational vehicles- Total North America: $1.66 billion versus $1.79 billion estimated by four analysts on average.
Net Sales- Recreational vehicles- North American Towable: $945.45 million versus the four-analyst average estimate of $1 billion. The reported number represents a year-over-year change of -28.3%.
Net Sales- Total Recreational vehicles: $2.36 billion versus the four-analyst average estimate of $2.36 billion.
Net Sales- Recreational vehicles- North American Motorized: $711.16 million versus $791.81 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -36.7% change.
Net Sales- Intercompany eliminations: -$62.98 million compared to the -$47.12 million average estimate based on three analysts. The reported number represents a change of -10.3% year over year.
Net Sales- Other: $198.92 million compared to the $191.51 million average estimate based on three analysts. The reported number represents a change of -14.5% year over year.
View all Key Company Metrics for Thor Industries here>>>
Shares of Thor Industries have returned +9.6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Thor Industries, Inc. (THO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Here is how Thor Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Units - Recreation Vehicles - European: 11,892 versus the three-analyst average estimate of 10,926. Net Sales- Recreational vehicles- North American Towable: $945.45 million versus the four-analyst average estimate of $1 billion.
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Net Sales- Recreational vehicles- Total North America: $1.66 billion versus $1.79 billion estimated by four analysts on average. Net Sales- Recreational vehicles- North American Towable: $945.45 million versus the four-analyst average estimate of $1 billion. Net Sales- Recreational vehicles- North American Motorized: $711.16 million versus $791.81 million estimated by four analysts on average.
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Here is how Thor Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Units - Recreation Vehicles - European: 11,892 versus the three-analyst average estimate of 10,926. Net Sales- Recreational vehicles- Total North America: $1.66 billion versus $1.79 billion estimated by four analysts on average. Net Sales- Recreational vehicles- North American Motorized: $711.16 million versus $791.81 million estimated by four analysts on average.
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Here is how Thor Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Units - Recreation Vehicles - European: 11,892 versus the three-analyst average estimate of 10,926. View all Key Company Metrics for Thor Industries here>>> Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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e74bb6ef-944d-4fe7-a426-5e08bac85377
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714738.0
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2023-12-06 00:00:00 UTC
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Here is What to Know Beyond Why Builders FirstSource, Inc. (BLDR) 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-builders-firstsource-inc.-bldr-is-a-trending-stock-1
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nan
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nan
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Builders FirstSource (BLDR) 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 construction supply company have returned +13.6%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Building Products - Retail industry, which Builders FirstSource falls in, has gained 8.6%. 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
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.
Builders FirstSource is expected to post earnings of $2.73 per share for the current quarter, representing a year-over-year change of -15%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.1%.
For the current fiscal year, the consensus earnings estimate of $13.82 points to a change of -26.1% from the prior year. Over the last 30 days, this estimate has changed +0.4%.
For the next fiscal year, the consensus earnings estimate of $12.77 indicates a change of -7.6% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has changed +1.1%.
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 Builders FirstSource.
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.
For Builders FirstSource, the consensus sales estimate for the current quarter of $3.96 billion indicates a year-over-year change of -9.2%. For the current and next fiscal years, $16.9 billion and $17.34 billion estimates indicate -25.6% and +2.6% changes, respectively.
Last Reported Results and Surprise History
Builders FirstSource reported revenues of $4.53 billion in the last reported quarter, representing a year-over-year change of -21.3%. EPS of $4.24 for the same period compares with $5.20 a year ago.
Compared to the Zacks Consensus Estimate of $4.87 billion, the reported revenues represent a surprise of -6.87%. The EPS surprise was +4.69%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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.
Builders FirstSource 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 Builders FirstSource. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 Builders FirstSource.
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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 Builders FirstSource reported revenues of $4.53 billion in the last reported quarter, representing a year-over-year change of -21.3%. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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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 Builders FirstSource. 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. Compared to the Zacks Consensus Estimate of $4.87 billion, the reported revenues represent a surprise of -6.87%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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574378e0-347f-4bb4-bb14-e4be7b340eee
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714739.0
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2023-12-06 00:00:00 UTC
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JPMorgan Chase & Co. (JPM) is Attracting Investor Attention: Here is What You Should Know
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DCOMP
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https://www.nasdaq.com/articles/jpmorgan-chase-co.-jpm-is-attracting-investor-attention%3A-here-is-what-you-should-know-6
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nan
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nan
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JPMorgan Chase & Co. (JPM) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +9.7% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Banks - Major Regional industry, to which JPMorgan Chase & Co. belongs, has gained 9.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
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, JPMorgan Chase & Co. is expected to post earnings of $3.72 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed 0% over the last 30 days.
The consensus earnings estimate of $16.84 for the current fiscal year indicates a year-over-year change of +39.3%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $15.51 indicates a change of -7.9% from what JPMorgan Chase & Co. 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 #1 (Strong Buy) for JPMorgan Chase & Co.
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 JPMorgan Chase & Co. the consensus sales estimate of $38.83 billion for the current quarter points to a year-over-year change of +12.4%. The $157.87 billion and $157.95 billion estimates for the current and next fiscal years indicate changes of +22.7% and +0.1%, respectively.
Last Reported Results and Surprise History
JPMorgan Chase & Co. reported revenues of $39.87 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $4.33 for the same period compares with $3.12 a year ago.
Compared to the Zacks Consensus Estimate of $39.14 billion, the reported revenues represent a surprise of +1.89%. The EPS surprise was +11.31%.
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.
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.
JPMorgan Chase & Co. 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 JPMorgan Chase & Co. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
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 JPMorgan Chase & Co.
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Last Reported Results and Surprise History JPMorgan Chase & Co. reported revenues of $39.87 billion in the last reported quarter, representing a year-over-year change of +21.9%. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for JPMorgan Chase & Co. 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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The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for JPMorgan Chase & Co. Last Reported Results and Surprise History JPMorgan Chase & Co. reported revenues of $39.87 billion in the last reported quarter, representing a year-over-year change of +21.9%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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b66725f4-4060-48ec-99ba-2ecb7255cc20
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714740.0
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2023-12-06 00:00:00 UTC
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8 Under-the-Radar Active ETFs for the Holidays
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DCOMP
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https://www.nasdaq.com/articles/8-under-the-radar-active-etfs-for-the-holidays
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nan
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nan
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The winter holiday season is here, and I wanted to join in the festivities. Recently, advisors have become more comfortable turning to active ETFs to help them and their clients navigate the uncertain market environment. Actively managed ETFs have gained traction in 2023.
For example, the JPMorgan Equity Premium Income ETF (JEPI) gathered $13 billion and now has $30 billion in assets. Meanwhile, the Dimensional US Core Equity 2 ETF (DFAC) added $4 billion to push assets to $23 billion. These firms also have some new, under-the-radar family members like the JPMorgan U.S. Tech Leaders ETF (JTEK) and the Dimensional California Municipal Bond ETF (DFCA). However, there are many other actively managed that warrant more attention.
To celebrate, here are eight active ETFs that I think are under radar. One for each night of Chanukah that I will be celebrating at the end of this week. Freely consider putting a present under your Christmas tree for each as well.
Equity ETFs Worthy of a Spin
The Fidelity Enhanced Large Cap ETF (FELC) has $1.9 billion in assets. This might seem too large for an under-the-radar ETF. However, FELC just became an ETF in mid-November, converting from a mutual fund. Most people are probably unaware the ETF already has an established track record. In the three-year period ended October, the fund rose 11.6% on an annualized basis, beating the S&P 500 by 140 basis points. The U.S. equity fund takes a systematic active approach incorporating risk management into its process.
In contrast, the T. Rowe Price International Equity ETF (TOUS) has just $70 million in assets. While the firm launched some U.S. equity ETFs in the past, this international fund came to market in June 2023. TOUS is overweighted relative to the MSCI EAFE toward European stocks, with sector tilts for healthcare and information technology. The fund focuses on high-quality businesses like ASML and Novo Nordisk.
The BNY Mellon Concentrated International Equity ETF (BKCI) has $80 million in assets and is turning one year old this week. The fund owns just 30 stocks, less than one-fifth found in TOUS. The ETF is subadvised by Walter Scott & Partners. Air Liquide, Compass Group, and SAP were among the recent top positions. VettaFi will be talking with the management of BKCI during the Market Outlook Symposium on December 14. Registration is open.
Shining a Light on an Active Thematic ETF
When many investors think of actively managed thematic ETFs, ARK Investments’ fund likely comes to mind. However, there are many others offering security selection expertise.
The Goldman Sachs Future Consumer ETF (GBUY) also has $80 million in assets and launched two years ago. Goldman believes that companies aligned with younger consumers’ differentiated spending preferences may represent compelling investment opportunities. Top holdings include mega-cap U.S. stocks like Alphabet, Amazon.com, and Mastercard. However, LVMH, MercadoLibre, and Taiwan Semiconductor are also well-represented. We talked about GBUY during the VettaFi Artificial Intelligences Symposium in August.
A Latke to Like About Active Bond ETFs
This equity-laden list of active ETFs needs some diversification. Indeed, many find the municipal bond and convertible bond market hard to navigate alone. Active management can help.
The Hartford Schroders Tax Aware Bond (HTAB) is older than most on this list. HTAB launched in April 2018 with a solid record. However, the fund’s 4.4% year-to-date gain has significantly outperformed its peers. Despite its success, HTEB has $185 million in assets. The fund primarily invests in high-investment-grade bonds and takes on some interest-rate risk.
The PIMCO Multisector Bond Active ETF (PYLD) launched in June 2023 and has $190 million in assets. Run by PIMCO’s Chief Investment Officer, Dan Ivascyn, and a team of sector-specific managers, PYLD is a best-ideas strategy. Seeking attractive yield, the fund invests in corporates, mortgages, and sovereign bonds including those with noninvestment-grade ratings.
The Calamos Convertible Equity Alternative ETF (CVRT) launched in October 2023 and has less than $10 million in assets. However, we think given the firm’s convertible bond heritage and its unique approach will help it to grow. CVRT focuses on convertible bonds with a high level of equity sensitivity. At next week’s VettaFi Market Outlook Symposium, we will also be joined by experts from Calamos Investments.
Carrying on the Tradition Through ETFs
The Franklin Income Focus ETF (INCM) rounds out our list's blended exposure to fixed income, stocks, and convertible bonds. The now $100 million multi-asset ETF launched in June 2023 and is based on the 75-year-old Frankin Income mutual fund that manages more than $65 billion in assets. The fund’s fixed income exposure is mostly to BBB and below-investment-grade bonds.
While asset allocation ETFs often struggled to gather assets, we think Franklin’s experience running a similar strategy makes it unique.
We hope you have a great holiday and celebrate with friends and family. Freely discuss active ETFs and impress them with your insights. We appreciate your being part of our community in 2023.
For more news, information, and strategy, visit ETF Trends.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Goldman believes that companies aligned with younger consumers’ differentiated spending preferences may represent compelling investment opportunities. Run by PIMCO’s Chief Investment Officer, Dan Ivascyn, and a team of sector-specific managers, PYLD is a best-ideas strategy. The now $100 million multi-asset ETF launched in June 2023 and is based on the 75-year-old Frankin Income mutual fund that manages more than $65 billion in assets.
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Shining a Light on an Active Thematic ETF When many investors think of actively managed thematic ETFs, ARK Investments’ fund likely comes to mind. The PIMCO Multisector Bond Active ETF (PYLD) launched in June 2023 and has $190 million in assets. The Calamos Convertible Equity Alternative ETF (CVRT) launched in October 2023 and has less than $10 million in assets.
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Shining a Light on an Active Thematic ETF When many investors think of actively managed thematic ETFs, ARK Investments’ fund likely comes to mind. A Latke to Like About Active Bond ETFs This equity-laden list of active ETFs needs some diversification. Carrying on the Tradition Through ETFs The Franklin Income Focus ETF (INCM) rounds out our list's blended exposure to fixed income, stocks, and convertible bonds.
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Active management can help. The Calamos Convertible Equity Alternative ETF (CVRT) launched in October 2023 and has less than $10 million in assets. The now $100 million multi-asset ETF launched in June 2023 and is based on the 75-year-old Frankin Income mutual fund that manages more than $65 billion in assets.
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2023-12-06 00:00:00 UTC
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Industrial Automation Spending Is Set to Snap Back in 2024. Here Are 3 Robotics Stocks to Buy.
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https://www.nasdaq.com/articles/industrial-automation-spending-is-set-to-snap-back-in-2024.-here-are-3-robotics-stocks-to
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This year hasn't been a particularly great one for the industrial robotics market. After four consecutive years of growth, market researcher Interact Analysis says worldwide warehouse automation revenue will end 2023 down slightly from 2022's levels. As the firm's research manager Rueben Scruen explains, "The rise and fall of warehouse construction [stemming from pandemic-prompted investment in e-commerce] has led to a corresponding increase and decrease of end-to-end warehouse automation solutions." The robotics market may see a slow start to 2024 as well, held back by high interest rates and economic uncertainty.
Before 2024 comes to a close, however, the world may be seeing the convergence of several factors all working in favor of automation technologies. Now paired with the power of artificial intelligence (AI), manufacturers and retailers will likely clamor for the efficiency that such solutions can now offer.
The International Federation of Robotics believes the total number of worldwide robotic installations will grow by an average of 7% per year through 2026, jibing with Interact Analysis' market growth forecast of less than $35 billion in 2023 to more than $50 billion in 2027. An enterprising automation company may even be able to capture more than its fair share of that growth.
With that as the backdrop, here's a closer look at three robotics stocks to consider stepping into before 2024 gets here. The market will likely start realizing the growth that awaits before we get too deep into the coming year.
Rockwell Automation
It's the biggest pure-play in the business largely because it was the first major name to be in the business -- before terms like "automation" and "robotics" became what we understand them to be today. The thing is, its sheer size and pedigree continue to help Rockwell Automation (NYSE: ROK) grow its business.
If your car rolls on Cooper tires, if you own a Stanley Black & Decker power tool, or if you use Brawny paper towels made by paper giant Georgia-Pacific, then you're already benefiting from the dozens of different kinds of solutions Rockwell Automation brings to thousands of manufacturing processes. The company sold more than $2.5 billion worth of automation solutions during its fiscal fourth quarter ending in September, in fact, defying the industry's headwind by improving on last year's comparison to the tune of 20%. Adjusted per-share earnings of $3.64 were also up 20% year over year, capping off a year marked by comparable top- and bottom-line growth rates.
The fiscal year now underway won't be as impressive. The company believes its sales and profits will more or less mirror last year's numbers. Analysts are calling for slight revenue and earnings growth next year (although only slight), with the same growth cadence in the cards for several years after that.
This collective outlook, however, arguably doesn't fully reflect Rockwell's growth potential now that it's adding a game-changing dimension to its automation solutions: AI. October's acquisition of Clearpath Robotics and its OTTO Motors brand of autonomous robots is just a taste of the bigger paradigm shift this company is pushing itself to make. In September it unveiled an AI-powered asset risk predictor platform that helps manufacturers figure out when a piece of automation equipment is about to break.
This sliver of the automation market is still relatively young. But it shouldn't take long for most companies to recognize AI-driven automation solutions like these more than pay for themselves in pretty short order.
Symbotic
Rockwell may be the original big name in industrial automation, yet it's only now embracing the benefits of artificial intelligence. Symbotic (NASDAQ: SYM) is built from the ground up to meld AI with robotics. And, it's a specialist.
Any process that requires physical movement can be automated. Processes like stocking a warehouse with a variety of goods and picking a list of items off of a warehouse shelf to fulfill an online order, however, can be tricky. It's historically required a human being to make a decision or selection based on what that person sees. Of course, any process that requires human involvement is subject to errors and fatigue.
Enter Symbotic.
This company manufactures a variety of robots specifically designed to meet retailers' warehousing needs. Its autonomous, mobile robotic arms can not only pick and pack an entire pallet's worth of customer orders, but can unpack and shelve a pallet of mixed merchandise too. These automation solutions simply didn't exist just a few years back. And once they became available, it didn't take Walmart, Target, and Albertsons long to join its roster of customers.
And yet, this game-changing tech's growth is just getting started. As EY's assessment of robotics' growth in the coming year explains:
... because of high capex and retraining costs, the efficiencies gained by automation through robotics have been out of reach for all but the largest companies. That will still be the case for some SMEs (small and medium-sized enterprises) but may not be for long. The average price of an industrial robot has halved over the past decade, to about US$23,000 in 2022 from US$47,000 in 2011, according to Ark Invest, which predicts that costs will fall a further 50% to 60% by 2025.
And Symbotic's certainly got the numbers to confirm it's the go-to name in this sliver of the autonomous warehouse robotics space. The top line of nearly $1.2 billion for the fiscal year ending in September of this year was up nearly 100% from fiscal 2022's sales.
UiPath
Last but not least, add UiPath (NYSE: PATH) to your list of tickers perfectly positioned to benefit from the impending rebound in automation spending.
It's actually more of a software solution than a means of making a manufacturing or materials-handling process more efficient. For workers who use a computer to process digital data, UiPath helps them automate sequences that would otherwise require several manual steps to complete. Its customers are found in industries ranging from banking to healthcare to government agencies, and more. But the end goal is the same -- making people and processes more efficient by handling the time-consuming duties that don't require ongoing oversight so those individuals can devote more time and attention to more important matters.
That said, manufacturers will still find real fiscal benefit by utilizing UiPath's offerings.
Perhaps the most bullish aspect of UiPath, however, isn't so much what it does but how it does it. Access to its automation software is rented rather than outright sold, translating into recurring revenue. The company's annualized revenue run rate now stands at $1.38 billion, up 24% year over year thanks to the $70 million worth of subscription-based revenue UiPath picked up during a relatively challenging three-month stretch ending in October.
Better still, UiPath is inching its way toward real generally accepted accounting principles (GAAP) profitability, and may even swing to a true profit within a couple of years -- particularly if Interact Analysis' expectations for the automation industry are on target.
Those investors who've been keeping close tabs on UiPath probably know the stock was catapulted higher last week in response to blowout quarterly earnings. The move even pushed the stock past its current consensus price target of $23.88. This could certainly make it tough to log more gains in the immediate future. It wouldn't be crazy to hold off for a while and let this froth settle before stepping in.
Just don't wait too long if you make this choice. The market's strongest stocks have a funny way of staying strong even when it seems like they shouldn't.
10 stocks we like better than Symbotic
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*Stock Advisor returns as of December 4, 2023
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target, UiPath, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company sold more than $2.5 billion worth of automation solutions during its fiscal fourth quarter ending in September, in fact, defying the industry's headwind by improving on last year's comparison to the tune of 20%. This collective outlook, however, arguably doesn't fully reflect Rockwell's growth potential now that it's adding a game-changing dimension to its automation solutions: AI. But the end goal is the same -- making people and processes more efficient by handling the time-consuming duties that don't require ongoing oversight so those individuals can devote more time and attention to more important matters.
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After four consecutive years of growth, market researcher Interact Analysis says worldwide warehouse automation revenue will end 2023 down slightly from 2022's levels. The International Federation of Robotics believes the total number of worldwide robotic installations will grow by an average of 7% per year through 2026, jibing with Interact Analysis' market growth forecast of less than $35 billion in 2023 to more than $50 billion in 2027. The company sold more than $2.5 billion worth of automation solutions during its fiscal fourth quarter ending in September, in fact, defying the industry's headwind by improving on last year's comparison to the tune of 20%.
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The International Federation of Robotics believes the total number of worldwide robotic installations will grow by an average of 7% per year through 2026, jibing with Interact Analysis' market growth forecast of less than $35 billion in 2023 to more than $50 billion in 2027. The company sold more than $2.5 billion worth of automation solutions during its fiscal fourth quarter ending in September, in fact, defying the industry's headwind by improving on last year's comparison to the tune of 20%. As EY's assessment of robotics' growth in the coming year explains: ... because of high capex and retraining costs, the efficiencies gained by automation through robotics have been out of reach for all but the largest companies.
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This year hasn't been a particularly great one for the industrial robotics market. Now paired with the power of artificial intelligence (AI), manufacturers and retailers will likely clamor for the efficiency that such solutions can now offer. And Symbotic's certainly got the numbers to confirm it's the go-to name in this sliver of the autonomous warehouse robotics space.
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2023-12-06 00:00:00 UTC
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What Makes Wolters Kluwer NV (WTKWY) a Good Fit for 'Trend Investing'
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https://www.nasdaq.com/articles/what-makes-wolters-kluwer-nv-wtkwy-a-good-fit-for-trend-investing
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Wolters Kluwer NV (WTKWY) 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. WTKWY is quite a good fit in this regard, gaining 14.3% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 11.9% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, WTKWY is currently trading at 96.4% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in WTKWY may not reverse anytime soon.
In addition to WTKWY, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Wolters Kluwer NV (WTKWY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Wolters Kluwer NV (WTKWY) : 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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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). In addition to WTKWY, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714743.0
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2023-12-06 00:00:00 UTC
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McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
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https://www.nasdaq.com/articles/mcdonalds-corporation-mcd-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-0
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McDonald's (MCD) 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 world's biggest hamburger chain have returned +6.7% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Retail - Restaurants industry, to which McDonald's belongs, has gained 3.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
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, McDonald's is expected to post earnings of $2.81 per share, indicating a change of +8.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The consensus earnings estimate of $11.75 for the current fiscal year indicates a year-over-year change of +16.3%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.44 indicates a change of +5.8% from what McDonald's is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
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 McDonald's.
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 McDonald's, the consensus sales estimate of $6.46 billion for the current quarter points to a year-over-year change of +9.1%. The $25.55 billion and $27.25 billion estimates for the current and next fiscal years indicate changes of +10.2% and +6.6%, respectively.
Last Reported Results and Surprise History
McDonald's reported revenues of $6.69 billion in the last reported quarter, representing a year-over-year change of +14%. EPS of $3.19 for the same period compares with $2.68 a year ago.
Compared to the Zacks Consensus Estimate of $6.57 billion, the reported revenues represent a surprise of +1.79%. The EPS surprise was +6.33%.
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.
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.
McDonald's is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about McDonald's. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
McDonald's Corporation (MCD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Last Reported Results and Surprise History McDonald's reported revenues of $6.69 billion in the last reported quarter, representing a year-over-year change of +14%. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. Last Reported Results and Surprise History McDonald's reported revenues of $6.69 billion in the last reported quarter, representing a year-over-year change of +14%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2023-12-06 00:00:00 UTC
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QUALCOMM Incorporated (QCOM) 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/qualcomm-incorporated-qcom-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-6
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Qualcomm (QCOM) 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 chipmaker have returned +8.3%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Wireless Equipment industry, which Qualcomm falls in, has gained 8.1%. 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.
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.
Qualcomm is expected to post earnings of $2.34 per share for the current quarter, representing a year-over-year change of -1.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
For the current fiscal year, the consensus earnings estimate of $9.10 points to a change of +8% from the prior year. Over the last 30 days, this estimate has changed +0.4%.
For the next fiscal year, the consensus earnings estimate of $10.02 indicates a change of +10.2% from what Qualcomm is expected to report a year ago. Over the past month, the estimate has changed +0.8%.
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, Qualcomm is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Qualcomm, the consensus sales estimate for the current quarter of $9.46 billion indicates a year-over-year change of +0%. For the current and next fiscal years, $37.41 billion and $40.15 billion estimates indicate +4.5% and +7.3% changes, respectively.
Last Reported Results and Surprise History
Qualcomm reported revenues of $8.63 billion in the last reported quarter, representing a year-over-year change of -24.3%. EPS of $2.02 for the same period compares with $3.13 a year ago.
Compared to the Zacks Consensus Estimate of $8.55 billion, the reported revenues represent a surprise of +0.94%. The EPS surprise was +5.21%.
Over the last four quarters, Qualcomm surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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.
Qualcomm 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 Qualcomm. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 Qualcomm.
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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. Last Reported Results and Surprise History Qualcomm reported revenues of $8.63 billion in the last reported quarter, representing a year-over-year change of -24.3%. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Qualcomm is rated Zacks Rank #3 (Hold). Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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Last Reported Results and Surprise History Qualcomm reported revenues of $8.63 billion in the last reported quarter, representing a year-over-year change of -24.3%. Compared to the Zacks Consensus Estimate of $8.55 billion, the reported revenues represent a surprise of +0.94%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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e49a6f77-9dfa-49e0-a478-cb2870bfd7ca
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714745.0
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2023-12-06 00:00:00 UTC
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Kimberly-Clark Corporation (KMB) 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/kimberly-clark-corporation-kmb-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-1
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nan
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nan
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Kimberly-Clark (KMB) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of consumer products such as Huggies diapers and Kleenex tissue have returned +0.9% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Consumer Products - Staples industry, to which Kimberly-Clark belongs, has gained 2.2% 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.
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.
For the current quarter, Kimberly-Clark is expected to post earnings of $1.53 per share, indicating a change of -0.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.59 points to a change of +17.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $7.08 indicates a change of +7.4% from what Kimberly-Clark is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
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 Kimberly-Clark.
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 Kimberly-Clark, the consensus sales estimate for the current quarter of $5.01 billion indicates a year-over-year change of +0.8%. For the current and next fiscal years, $20.47 billion and $20.73 billion estimates indicate +1.5% and +1.3% changes, respectively.
Last Reported Results and Surprise History
Kimberly-Clark reported revenues of $5.13 billion in the last reported quarter, representing a year-over-year change of +1.6%. EPS of $1.74 for the same period compares with $1.40 a year ago.
Compared to the Zacks Consensus Estimate of $5.14 billion, the reported revenues represent a surprise of -0.06%. The EPS surprise was +10.13%.
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.
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.
Kimberly-Clark 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 Kimberly-Clark. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of this maker of consumer products such as Huggies diapers and Kleenex tissue have returned +0.9% over the past month versus the Zacks S&P 500 composite's +5.1% change. 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 Kimberly-Clark.
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Last Reported Results and Surprise History Kimberly-Clark reported revenues of $5.13 billion in the last reported quarter, representing a year-over-year change of +1.6%. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The 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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And if earnings estimates go up for a company, the fair value for its stock goes up. 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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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d1ae51ac-255c-40f5-85d3-993d163f9f6e
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714746.0
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2023-12-06 00:00:00 UTC
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Investors Heavily Search Honeywell International Inc. (HON): Here is What You Need to Know
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DCOMP
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https://www.nasdaq.com/articles/investors-heavily-search-honeywell-international-inc.-hon%3A-here-is-what-you-need-to-know-2
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nan
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nan
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Honeywell International Inc. (HON) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +5.5% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Diversified Operations industry, to which Honeywell International Inc. belongs, has gained 8.3% 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.
Honeywell International Inc. is expected to post earnings of $2.59 per share for the current quarter, representing a year-over-year change of +2.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
For the current fiscal year, the consensus earnings estimate of $9.16 points to a change of +4.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $9.97 indicates a change of +8.9% from what Honeywell International Inc. 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, Honeywell International Inc. is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Honeywell International Inc. the consensus sales estimate for the current quarter of $9.7 billion indicates a year-over-year change of +5.6%. For the current and next fiscal years, $36.92 billion and $38.86 billion estimates indicate +4.1% and +5.2% changes, respectively.
Last Reported Results and Surprise History
Honeywell International Inc. reported revenues of $9.21 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $2.27 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $9.21 billion, the reported revenues represent a surprise of +0.04%. The EPS surprise was +2.25%.
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.
Honeywell International Inc. is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Honeywell International Inc. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Honeywell International Inc. (HON) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. 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 Honeywell International Inc.
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For the next fiscal year, the consensus earnings estimate of $9.97 indicates a change of +8.9% from what Honeywell International Inc. is expected to report a year ago. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. 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, Honeywell International Inc. 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. 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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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454e22ab-282f-4e16-b650-65b45f6d1c8b
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714747.0
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2023-12-06 00:00:00 UTC
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American Express Company (AXP) is Attracting Investor Attention: Here is What You Should Know
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DCOMP
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https://www.nasdaq.com/articles/american-express-company-axp-is-attracting-investor-attention%3A-here-is-what-you-should-0
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nan
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nan
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American Express (AXP) 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.
Shares of this credit card issuer and global payments company have returned +11.6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Financial - Miscellaneous Services industry, to which American Express belongs, has gained 8.9% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, American Express is expected to post earnings of $2.62 per share, indicating a change of +26.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The consensus earnings estimate of $11.20 for the current fiscal year indicates a year-over-year change of +13.7%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.40 indicates a change of +10.8% from what American Express is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
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 American Express.
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 American Express, the consensus sales estimate of $16.01 billion for the current quarter points to a year-over-year change of +12.9%. The $60.73 billion and $66.41 billion estimates for the current and next fiscal years indicate changes of +14.9% and +9.4%, respectively.
Last Reported Results and Surprise History
American Express reported revenues of $15.38 billion in the last reported quarter, representing a year-over-year change of +13.5%. EPS of $3.30 for the same period compares with $2.47 a year ago.
Compared to the Zacks Consensus Estimate of $15.41 billion, the reported revenues represent a surprise of -0.22%. The EPS surprise was +11.49%.
Over the last four quarters, American Express surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once 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.
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.
American Express 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 American Express. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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 Express Company (AXP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of this credit card issuer and global payments company have returned +11.6% over the past month versus the Zacks S&P 500 composite's +5.1% 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 American Express.
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Last Reported Results and Surprise History American Express reported revenues of $15.38 billion in the last reported quarter, representing a year-over-year change of +13.5%. 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. Click to get this free report American Express Company (AXP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for American Express. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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When earnings estimates for a company go up, the fair value for its stock goes up as well. 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 American Express. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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b91daf40-ce48-43b6-b3ab-0049197e30d5
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714748.0
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2023-12-06 00:00:00 UTC
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Energy Fuels Inc (UUUU) is Attracting Investor Attention: Here is What You Should Know
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https://www.nasdaq.com/articles/energy-fuels-inc-uuuu-is-attracting-investor-attention%3A-here-is-what-you-should-know-2
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Energy Fuels (UUUU) 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 uranium and vanadium miner and developer have returned -3.7% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Mining - Non Ferrous industry, to which Energy Fuels belongs, has gained 0.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
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.
For the current quarter, Energy Fuels is expected to post a loss of $0.03 per share, indicating a change of +72.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +33.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $0.73 points to a change of +292.1% from the prior year. Over the last 30 days, this estimate has changed +5.6%.
For the next fiscal year, the consensus earnings estimate of -$0.20 indicates a change of -126.7% from what Energy Fuels 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 #2 (Buy) for Energy Fuels.
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 Energy Fuels, the consensus sales estimate for the current quarter of $6.45 million indicates a year-over-year change of +3483.3%. For the current and next fiscal years, $43.95 million and $29.61 million estimates indicate +251.2% and -32.6% changes, respectively.
Last Reported Results and Surprise History
Energy Fuels reported revenues of $10.99 million in the last reported quarter, representing a year-over-year change of +275.1%. EPS of -$0.02 for the same period compares with -$0.06 a year ago.
Compared to the Zacks Consensus Estimate of $3.34 million, the reported revenues represent a surprise of +229.05%. The EPS surprise was +66.67%.
Over the last four quarters, Energy Fuels surpassed consensus EPS estimates two times. 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.
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.
Energy Fuels is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Energy Fuels. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Energy Fuels Inc (UUUU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 Energy Fuels.
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For the next fiscal year, the consensus earnings estimate of -$0.20 indicates a change of -126.7% from what Energy Fuels 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 Energy Fuels reported revenues of $10.99 million in the last reported quarter, representing a year-over-year change of +275.1%.
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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 #2 (Buy) for Energy Fuels. 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. Last Reported Results and Surprise History Energy Fuels reported revenues of $10.99 million in the last reported quarter, representing a year-over-year change of +275.1%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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8825cf21-3d3f-40c9-9743-f394c392f1e3
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714749.0
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2023-12-06 00:00:00 UTC
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Hidden Gems: 3 Small-Cap Tech Stocks With Huge Potential
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https://www.nasdaq.com/articles/hidden-gems%3A-3-small-cap-tech-stocks-with-huge-potential
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Fed Chair Jerome Powell’s recent comments signal a lenient approach, making it highly unlikely for interest-rate hikes to occur soon, even in the face of a potentially heating economy. This bodes well for American households as the cost of borrowing, from credit cards to mortgages, is expected to decline gradually, along with everyday expenses. Amid this backdrop, this has led to this list of small-cap tech stocks.
Financial markets are poised to benefit, with stock returns anticipated to surge as interest rates stabilize or decrease. If 2023 focuses on stabilizing the economy, 2024 seems poised to enjoy the fruits of these efforts.
Investors are eyeing growth opportunities, and there are promises in these three carefully chosen small-cap stocks poised for expansion in this favorable economic climate.
Doximity (DOCS)
Source: Gorodenkoff/Shutterstock.com
Doximity (NYSE:DOCS) is a health information services company best known for its telemedicine platform. Yahoo! Finance has 7 analysts predicting a 1-year price range on DOCS to be between $21.00 and $31.00, with a mean of $26.27.
$113.6 million revenue for Q3 2023 grew at an 11.1% 1-year CAGR. Signs of profitability are evident in a 0.21 EPS, growing 24.7% YoY, and an 88.15% gross profit margin well above the sector median. Management demonstrates exemplary abilities in handling operational expenditures through a 28.4% levered FCF margin and a $165.4 million cash from operations.
Doximity demonstrates its capability for further growth through innovative product releases and partnerships made this year. This year, Doximity has released products such as www.BestDoc.ai, which helps patients find medical experts in a localized area for any treatment or procedure. Product innovations like this will help users find what they need faster, improving the user experience. Doximity has also entered a partnership with MEDITECH, integrating the company’s electronic health record (EHR) system into its video telehealth visits. This integration allows doctors to conduct a telehealth visit while pulling patient records simultaneously, significantly improving time management for doctors in telehealth visits. This makes it one of those small-cap tech stocks to consider.
Doximity is a telehealth stock investors should not want to miss out on from its healthy financials, a partnership that improves the telehealth visit process, and more.
PubMatic (PUBM)
Source: weedezign via Shutterstock
PubMatic (NASDAQ:PUBM) is a digital advertising firm responsible for developing online advertising software. Currently valued at $17.19, PUBM grew 30.52% YTD.
In 2022, the digital marketing and advertising industry was valued at $531 billion, which is forecasted to increase to $1.5 trillion by 2030 at a 13.9% CAGR. PubMatic is expected to capitalize on this industry growth with its 75.93% market share.
PubMatic displayed strong financials last quarter despite revenue, EPS, and net income all decreasing YoY; EPS and revenue outlasted projections by 950% for EPS and 7.05% for revenue. These positive outlooks of beating projections suggest recovering financials. All in all, PUBM’s strong financials makes it one of those small-cap tech stocks to have on your watchlist.
Ultimately, the largest catalyst backing PubMatic has been the great catalog of publisher clients the company operates with. This list includes industry giants in streaming services, news organizations, and even e-commerce platforms like eBay. Further, the growth of the connected TV business holds great stances for the future of PubMatic’s business strategies, as seen by recent year-over-year connected TV revenue. Strong factors from various PubMatic teams combine to push PUBM into a strong stock for future growth.
PUBM stock, from its recovering financials and market-leading grasp, will provide long-term growth.
Enfusion Limited (ENFN)
Enfusion Limited (NYSE:ENFN) is a growing SaaS platform in the investment management industry. Yahoo! Finance has 7 analysts predicting a 1-year price range on ENFN to be between $8.00 and $12.00, with a mean of $10.10.
Efusion reports $44.3 million in revenue for Q4 2023, growing at a 13.3% 1-year CAGR. Revenue growth of 13.3% outpaced operational expenditure growth of 13.07%, generating profitability, and $8.6 million FCF grew 26.2% YoY. Management has significantly improved return on investments over the past year, well above sector medians.
Enfusion has forged partnerships and deals that position that company for future growth. Earlier this year, Enfusion announced a partnership with Quontigo. The partnership will offer Enfusion clients access to Quontigo’s premier Axioma risk analytics platform through a subscription service, improving the Enfusion user experience. Enfusion has also secured a $100 revolving credit facility from Bank of America. With the capability for flexible loans, the new credit facility will greatly improve the company’s balance sheet as a cost-effective capital source, setting itself up for future expansions or acquisitions.
With an approximate market cap of $1.29 billion, Enfusion is a ”buy” small-cap stock for investors because of the company’s strong financials. This partnership improves customers’ user experience and more is mentioned above.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post Hidden Gems: 3 Small-Cap Tech Stocks With Huge Potential 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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Investors are eyeing growth opportunities, and there are promises in these three carefully chosen small-cap stocks poised for expansion in this favorable economic climate. With the capability for flexible loans, the new credit facility will greatly improve the company’s balance sheet as a cost-effective capital source, setting itself up for future expansions or acquisitions. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Hidden Gems: 3 Small-Cap Tech Stocks With Huge Potential appeared first on InvestorPlace.
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Doximity (DOCS) Source: Gorodenkoff/Shutterstock.com Doximity (NYSE:DOCS) is a health information services company best known for its telemedicine platform. Enfusion Limited (ENFN) Enfusion Limited (NYSE:ENFN) is a growing SaaS platform in the investment management industry. Revenue growth of 13.3% outpaced operational expenditure growth of 13.07%, generating profitability, and $8.6 million FCF grew 26.2% YoY.
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Doximity is a telehealth stock investors should not want to miss out on from its healthy financials, a partnership that improves the telehealth visit process, and more. PubMatic displayed strong financials last quarter despite revenue, EPS, and net income all decreasing YoY; EPS and revenue outlasted projections by 950% for EPS and 7.05% for revenue. With an approximate market cap of $1.29 billion, Enfusion is a ”buy” small-cap stock for investors because of the company’s strong financials.
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Strong factors from various PubMatic teams combine to push PUBM into a strong stock for future growth. Enfusion has forged partnerships and deals that position that company for future growth. With an approximate market cap of $1.29 billion, Enfusion is a ”buy” small-cap stock for investors because of the company’s strong financials.
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2023-12-06 00:00:00 UTC
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LyondellBasell (LYB) Acquires Minority Share in Source One
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https://www.nasdaq.com/articles/lyondellbasell-lyb-acquires-minority-share-in-source-one
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LyondellBasell Industries N.V. LYB announced the acquisition of a minority stake in Source One GmbH, Leiferde, Germany, a plastic waste sourcing and engineering firm focused on developing technical solutions for difficult-to-recycle post-consumer plastic waste. Both LyondellBasell and Landbell will be shareholders in Source One. Landbell is a global service provider with a global network of Extended Producer Responsibility (EPR) and take-back organizations.
LyondellBasell has gained access to Source One's engineering and plastic waste-sourcing services as a result of this strategic investment. It also forms a collaboration with Landbell to supply plastic packaging waste volumes for LYB's advanced recycling operations. Processing plastic waste volumes from EPR Service Providers like Landbell strengthens LYB’s commitment to assisting brand owners in closing the plastic packaging loop.
LyondellBasell is taking another important step to secure access to plastic waste for recycling activities and to strengthen its Circulen product portfolio of materials made from recyclable or renewable resources by investing in Source One, LYB noted.
Source One will be 50% owned by 23 Oaks Investments, Leiferde, Germany, which has formed the joint venture Source One Plastics with LyondellBasell in 2022. Source One Plastics is currently building an energy-efficient, advanced plastic waste sorting and recycling facility in Germany.
Shares of LyondellBasell have gained 13.7% over the past year against the 12.5% decline of its industry.
Image Source: Zacks Investment Research
The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to decline.
Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LyondellBasell plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently sports a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock has gained 62.5% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently flaunts a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock has rallied 20.6% in a year.
Andersons currently carries a Zacks Rank #2 (Buy). The stock has gained roughly 50.1% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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 Andersons, Inc. (ANDE) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LyondellBasell has gained access to Source One's engineering and plastic waste-sourcing services as a result of this strategic investment. It also forms a collaboration with Landbell to supply plastic packaging waste volumes for LYB's advanced recycling operations. Image Source: Zacks Investment Research The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter.
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LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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LyondellBasell Industries N.V. LYB announced the acquisition of a minority stake in Source One GmbH, Leiferde, Germany, a plastic waste sourcing and engineering firm focused on developing technical solutions for difficult-to-recycle post-consumer plastic waste. LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). The stock has gained roughly 50.1% in the past year. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2023-12-06 00:00:00 UTC
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Accenture (ACN) Announces AI Collaboration With Unilever
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https://www.nasdaq.com/articles/accenture-acn-announces-ai-collaboration-with-unilever
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Accenture plc ACN shares have gained 17.7% in the past year, outperforming the 16.2% growth of the Zacks S&P 500 composite.
The company announced yesterday that it is partnering with fast-moving consumer goods giant Unilever to leverage next-generation AI. The financial terms of this agreement are kept under wraps.
Unilever is currently one of the world’s largest suppliers of personal care, home care, beauty & wellbeing, and nutrition products, with its business expanded across 190 countries.
Accenture PLC Price
Accenture PLC price | Accenture PLC Quote
Collaboration to Explore New Applications of Generative AI
The partnership aims at integrating Accenture’s expertise and ecosystem of partnerships with Unilever’s disruptive innovation to enhance and expand generative AI across Unilever’s business. Accenture will link Unilever to its top data and AI experts.
Initial work will commence from Unilever’s global AI Lab "Horizon3 Labs," recently opened in Toronto, the city that houses one of Accenture’s six Gen AI studios in North America.
The collaboration is a part of Accenture’s growth strategy that focuses on delivering 360° value to its stakeholders, mainly through the use of technology. The company focuses on long-term growth through building a digital core with the help of cloud, data and AI, technology evolution and investment in talent.
Zacks Rank & Stocks to Consider
Accenture currently carries a Zacks Rank #4 (Sell).
Investors interested in the Zacks Business Services sector can consider the following stocks:
Rollins ROL currently carries a Zacks Rank #2 (Buy). For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents per share, indicating year-over-year growth of 17.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.
FTI Consulting FCN also carries a Zacks Rank of 2. The consensus mark for fourth-quarter 2023 earnings is pegged at $1.57 per share, indicating 3.3% year-over-year growth.
FCN has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 8.5%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Accenture PLC (ACN) : Free Stock Analysis Report
FTI Consulting, Inc. (FCN) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company focuses on long-term growth through building a digital core with the help of cloud, data and AI, technology evolution and investment in talent. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents per share, indicating year-over-year growth of 17.7%. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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Accenture PLC Price Accenture PLC price | Accenture PLC Quote Collaboration to Explore New Applications of Generative AI The partnership aims at integrating Accenture’s expertise and ecosystem of partnerships with Unilever’s disruptive innovation to enhance and expand generative AI across Unilever’s business. ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report FTI Consulting, Inc. (FCN) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Accenture PLC Price Accenture PLC price | Accenture PLC Quote Collaboration to Explore New Applications of Generative AI The partnership aims at integrating Accenture’s expertise and ecosystem of partnerships with Unilever’s disruptive innovation to enhance and expand generative AI across Unilever’s business. Zacks Rank & Stocks to Consider Accenture currently carries a Zacks Rank #4 (Sell). Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report FTI Consulting, Inc. (FCN) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Accenture will link Unilever to its top data and AI experts. Investors interested in the Zacks Business Services sector can consider the following stocks: Rollins ROL currently carries a Zacks Rank #2 (Buy). Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714752.0
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2023-12-06 00:00:00 UTC
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Bargain Buys: 7 Stocks Lagging the S&P 500 With Big Potential
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https://www.nasdaq.com/articles/bargain-buys%3A-7-stocks-lagging-the-sp-500-with-big-potential
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the S&P 500 index stunningly back to its winning ways, it may be time to get on the bandwagon but with bargain stocks with potential. In other words, these enterprises presently lag the benchmark on a year-to-date basis. However, they could offer better bang for the buck over the intermediate to long term.
First, while the broader equities space has responded positively to strong holiday sales, it’s not entirely clear that the underlying consumer base can keep up the spending. For example, inflation remains stubbornly high while borrowing costs are elevated against prior norms. Therefore, it may be sensible to consider bargain stocks over already-hyped entities.
Second, major companies that are lagging the benchmark index offer a sensible starting point for stocks with potential for upside. Unlike other businesses, the securities mentioned below are part of the S&P 500. Therefore, red ink may have a better chance of turning black rather than a darker shade of crimson.
On that note, check out these compelling bargain stocks with potential.
Nike (NKE)
Source: mimohe / Shutterstock.com
According to Wall Street analysts, athletic apparel and equipment manufacturer Nike (NYSE:NKE) carries a moderate buy view. This assessment breaks down as 18 buys, 12 holds and zero sells. Overall, the average price target lands at $118.08, which is admittedly modest. However, the high-side target hits $150, which may give cautious speculators hope for a robust upside.
Looking at the financials, the $150 target isn’t something pulled out of a dark cavernous place. Despite the risks associated with the consumer discretionary sector, Nike has proven resilient. Yes, its total revenue slipped for its fiscal year ended May 2020 against the prior year. However, since then, it has consistently increased the top line.
Just as importantly, the company’s gross profit margin remains stable. In the quarter ended August 2023, this metric hit 44.21%, basically in line with the prior year’s result. Also, the long-term average stands around 44% to 45%. That implies Nike benefits from pricing power, making NKE one of the bargain stocks with potential.
Northrop Grumman (NOC)
Source: Kristi Blokhin / Shutterstock.com
An aeronautics and defense company, Northrop Grumman (NYSE:NOC) has been disappointing relative to the benchmark index. Since the start of the year, NOC is firmly in negative territory. However, analysts remain cautiously optimistic, pegging it a moderate buy. This assessment breaks down as seven buys, four holds and one sell. Overall, the average price target comes out to $500.17.
To be sure, that’s not a whole lot. However, the most optimistic analyst – Bank of America Securities’ Ronald Epstein – sees NOC hitting $615. If so, acquiring shares now would make it one of the compelling bargain stocks with potential. Fundamentally, the catalyst centers on the geopolitical tensions that have erupted in Eastern Europe and more recently, the Middle East.
Part of the bullish tale involves the losing of naïve arguments. With the world spiraling out of control, the U.S. simply needs to restore order. That’s a plus for Northrop Grumman. Also, company sales have witnessed a conspicuous spike in 2022 and in the trailing-12-month (TTM) period, aligning with the aforementioned flashpoints.
Public Storage (PSA)
Source: Ken Wolter / Shutterstock.com
One of the biggest names in, well, public storage facilities, the aptly named Public Storage (NYSE:PSA) offers arguably permanent relevance. After all, irrespective of outside conditions, everyone finds themselves in need of extra storage. However, while the S&P 500 is enjoying solid double-digit returns, PSA sits in negative territory. Still, that could change according to the Street’s experts.
Right now, analysts rate PSA a consensus strong buy. This assessment breaks down as seven buys, two holds, and no sells. Overall, the average price target lands at $292.44. That’s an okay return over the next 12 months. However, the max price target comes in at $330, which symbolizes a very solid performance. Fundamentally, it’s not out of the question.
First, as I stated earlier, we all need storage at some point in our lives. Second and more importantly, the blistering costs of living (here and abroad) have forced many folks to downsize. Therefore, putting away bulky stuff that doesn’t see regular use could result in greater demand for PSA. I see it as one of the bargain stocks with potential.
Johnson & Johnson (JNJ)
Source: Sundry Photography / Shutterstock.com
A pharmaceutical and medical technologies giant, Johnson & Johnson (NYSE:JNJ) usually offers a reliable platform for positive returns. I anticipate a return to normal programming given the recent uptick in momentum for JNJ. But in the meantime, yeah, it noticeably lags the S&P 500. For some, that’s bad news. For others, it’s one of the underappreciated bargain stocks with potential.
Let’s check in with the analysts first. Currently, they peg JNJ as a consensus moderate buy with a $177.45 average price target. That’s a decent potential return because you’re also getting a dividend yield of 2.97% with a reasonable payout ratio of 44.8%. Further, the high-side target clocks in at $215, which comes from Cantor Fitzgerald’s Louise Chen.
Fundamentally, J&J symbolizes an insulated investment idea in that pharmaceuticals and medical tech don’t necessarily correlate with broader market and economic performances. Basically, when you need such innovations, you try to get them irrespective of the costs. Also, JNJ offers great value, trading at trailing-year earnings multiple of 11.76x, below the sector median of 23.42x.
Philip Morris (PM)
Source: Vytautas Kielaitis / Shutterstock
Controversial for its tobacco business, Philip Morris (NYSE:PM) nevertheless deserves consideration for bargain stocks with potential. First, it meets the qualifications. It’s one of the S&P 500 companies yet it underperforms the benchmark index with a negative return this year. However, analysts remain hopeful about PM, rating it a consensus moderate buy with a $107.59 price target.
As I mentioned with J&J above, that’s a decent upside prospect because you’ve got to take into account the dividend. At 5.43%, that’s a strong rate of passive income, though you must watch the high payout ratio of 84.54%. Adding to the bullish sentiment, the maximum price target comes in at $120. That’s courtesy of TD Cowen’s Vivien Azer.
Fundamentally, I believe it’s a reasonable forecast. Yes, global smoking prevalence has declined over the past several years. However, in many countries, the prevalence either did not change or it actually increased. More importantly, Philip Morris develops heat-not-burn products and other alternative devices that appeal to tobacco aficionados.
And it’s a consistently profitable enterprise, warranting a second look despite the controversy.
Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
Another somewhat controversial idea for bargain stocks with potential, Exxon Mobil (NYSE:XOM) doesn’t exactly put a smile on everyone’s faces due to the underlying big oil business. Plus, forward-looking relevance concerns exist as people shift their mobility to the electric platform. So, it’s definitely an underperformer to the S&P 500.
Still, Exxon Mobil deserves another look in my opinion. For starters, analysts peg XOM as a consensus strong buy with an average price target of $131. That’s a solid return during any market cycle. Additionally, the company features a dividend yield of 3.57% along with a low (sustainable) payout ratio of 35.24%.
Fundamentally, hydrocarbons are likely here to stay for the long haul. Fundamentally, very few energy sources command the energy density of fossil fuels. Additionally, population expansion and possibly worsening geopolitical tensions should shift emphasis toward energy diversification rather than complete transitions. Aside from an understandable blip in 2020, Exxon has been consistently profitable over the past several years.
General Motors (GM)
Source: Katherine Welles / Shutterstock.com
Perhaps the riskiest idea on this list of bargain stocks with potential, automaker General Motors (NYSE:GM) should not be entered into lightly. Following a relatively brief but painful labor union dispute, General Motors has the unenviable task of restoring investor confidence. However, in recent sessions, GM stock has demonstrated significant signs of life.
Certainly, analysts remain optimistic about the auto giant, pegging shares a consensus moderate buy. Overall, their average price target stands at $45.33. Further, the high-side target is much more aggressive at $90. That’s a recent late-November call by Citi’s Itay Michaeli. Fundamentally, the company’s concerted effort to pivot to electric vehicles should pay off handsomely. After all, GM benefits from several iconic brands that it can pivot toward electric mobility.
However, it’s not giving up entirely on its racing heritage, as evidenced by the company’s eighth-generation Corvette. This car pumps out a mid-engine confirmation V8, which is unheard of at the price point GM is offering it. That should bring some excitement to the table. Finally, GM trades for a lowly forward earnings multiple of 4.81x. If you want to speculate on the blue chips, GM could be it.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The post Bargain Buys: 7 Stocks Lagging the S&P 500 With Big Potential appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fundamentally, J&J symbolizes an insulated investment idea in that pharmaceuticals and medical tech don’t necessarily correlate with broader market and economic performances. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Bargain Buys: 7 Stocks Lagging the S&P 500 With Big Potential appeared first on InvestorPlace.
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Johnson & Johnson (JNJ) Source: Sundry Photography / Shutterstock.com A pharmaceutical and medical technologies giant, Johnson & Johnson (NYSE:JNJ) usually offers a reliable platform for positive returns. Philip Morris (PM) Source: Vytautas Kielaitis / Shutterstock Controversial for its tobacco business, Philip Morris (NYSE:PM) nevertheless deserves consideration for bargain stocks with potential. Exxon Mobil (XOM) Source: Jonathan Weiss / Shutterstock.com Another somewhat controversial idea for bargain stocks with potential, Exxon Mobil (NYSE:XOM) doesn’t exactly put a smile on everyone’s faces due to the underlying big oil business.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips With the S&P 500 index stunningly back to its winning ways, it may be time to get on the bandwagon but with bargain stocks with potential. Exxon Mobil (XOM) Source: Jonathan Weiss / Shutterstock.com Another somewhat controversial idea for bargain stocks with potential, Exxon Mobil (NYSE:XOM) doesn’t exactly put a smile on everyone’s faces due to the underlying big oil business. General Motors (GM) Source: Katherine Welles / Shutterstock.com Perhaps the riskiest idea on this list of bargain stocks with potential, automaker General Motors (NYSE:GM) should not be entered into lightly.
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Second, major companies that are lagging the benchmark index offer a sensible starting point for stocks with potential for upside. Overall, the average price target comes out to $500.17. Currently, they peg JNJ as a consensus moderate buy with a $177.45 average price target.
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33e7cb3e-9638-472f-b6c1-17728a1038ca
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714753.0
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2023-12-06 00:00:00 UTC
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Is the Options Market Predicting a Spike in Wendy's (WEN) Stock?
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DCOMP
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-wendys-wen-stock
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nan
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nan
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Investors in The Wendy's Company WEN need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $3.00 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 Wendy's shares, but what is the fundamental picture for the company? Currently, Wendy's is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 25% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimates for the current quarter, while four have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 24 cents per share to 23 cents in that period.
Given the way analysts feel about Wendy's right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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 Wendy's Company (WEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report The Wendy's Company (WEN) : 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, Wendy's is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 25% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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af1b38d6-de21-46ba-8112-3b7110fa7f38
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714754.0
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2023-12-06 00:00:00 UTC
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US STOCKS-Wall St set for higher open on rate cut optimism
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DCOMP
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-higher-open-on-rate-cut-optimism
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Dec 6 (Reuters) - Wall Street was set to open higher on Wednesday as investors were optimistic about rate cuts from the Federal Reserve early next year, after data showed further signs of a cooling labor market.
The S&P 500 .SPX and the Dow .DJI closed lower in the previous session, but the tech-heavy Nasdaq .IXIC was propped up by a fall in Treasury yields after data showing a fall in job openings bolstered bets that the Fed was done raising rates.
Providing more evidence of labor market weakness, the ADP National Employment report showed private payrolls increased by 103,000 jobs in November, below economists' expectation of 130,000.
"This is basically what markets are looking for (as) weaker labor growth would reduce the threat of inflation," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Bets of a cut of at least 25 basis points in March currently stand at 59%, according to the CME Group's FedWatch tool.
At 8:27 a.m. ET, Dow e-minis 1YMcv1 were up 48 points, or 0.13%, S&P 500 e-minis EScv1 were up 10.25 points, or 0.22%, and Nasdaq 100 e-minis NQcv1 were up 40.5 points, or 0.25%.
"The market is beginning to level off after a few days of negative activity," Cardillo said.
Optimism about peaking interest rates has led to a rebound in equities from their October lows, with the benchmark S&P 500 gaining nearly 9% in November, hitting its highest close of the year last week.
Investors will get more clarity on the state of the labor market and the outlook for interest rates from November's non-farm payrolls report, due on Friday.
Most megacap stocks edged higher in premarket trading. NvidiaNVDA.O rose 1.1% after the chip designer said it was working with the U.S. government to ensure new chips for the Chinese market are compliant with export curbs.
Among other stocks, Plug PowerPLUG.O fell 7.5% before the bell, as Morgan Stanley downgraded the hydrogen fuel cell firm to "underweight" from "equal weight" on liquidity concerns.
Tobacco giants Altria Group MO.N and Philip Morris International PM.Nslipped 1.0% and 1.1%, respectively, after UK peer British American Tobacco BATS.L said it will take a $31.5 billion hit from writing down the value of some U.S. cigarette brands.
Campbell SoupCPB.Nrose 1.9% on surpassing quarterly profit expectations, helped by higher prices for its packaged meals and snacks.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Pooja Desai)
((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 6 (Reuters) - Wall Street was set to open higher on Wednesday as investors were optimistic about rate cuts from the Federal Reserve early next year, after data showed further signs of a cooling labor market. Providing more evidence of labor market weakness, the ADP National Employment report showed private payrolls increased by 103,000 jobs in November, below economists' expectation of 130,000. Optimism about peaking interest rates has led to a rebound in equities from their October lows, with the benchmark S&P 500 gaining nearly 9% in November, hitting its highest close of the year last week.
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The S&P 500 .SPX and the Dow .DJI closed lower in the previous session, but the tech-heavy Nasdaq .IXIC was propped up by a fall in Treasury yields after data showing a fall in job openings bolstered bets that the Fed was done raising rates. Providing more evidence of labor market weakness, the ADP National Employment report showed private payrolls increased by 103,000 jobs in November, below economists' expectation of 130,000. Investors will get more clarity on the state of the labor market and the outlook for interest rates from November's non-farm payrolls report, due on Friday.
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By Amruta Khandekar and Shristi Achar A Dec 6 (Reuters) - Wall Street was set to open higher on Wednesday as investors were optimistic about rate cuts from the Federal Reserve early next year, after data showed further signs of a cooling labor market. Providing more evidence of labor market weakness, the ADP National Employment report showed private payrolls increased by 103,000 jobs in November, below economists' expectation of 130,000. ET, Dow e-minis 1YMcv1 were up 48 points, or 0.13%, S&P 500 e-minis EScv1 were up 10.25 points, or 0.22%, and Nasdaq 100 e-minis NQcv1 were up 40.5 points, or 0.25%.
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By Amruta Khandekar and Shristi Achar A Dec 6 (Reuters) - Wall Street was set to open higher on Wednesday as investors were optimistic about rate cuts from the Federal Reserve early next year, after data showed further signs of a cooling labor market. "This is basically what markets are looking for (as) weaker labor growth would reduce the threat of inflation," said Peter Cardillo, chief market economist at Spartan Capital Securities. Investors will get more clarity on the state of the labor market and the outlook for interest rates from November's non-farm payrolls report, due on Friday.
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76f40a99-1eef-4b17-b4be-7927f487e911
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714755.0
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2023-12-06 00:00:00 UTC
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Radian Group (RDN) Up 39.8% in a Year: More Room for Growth?
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DCOMP
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https://www.nasdaq.com/articles/radian-group-rdn-up-39.8-in-a-year%3A-more-room-for-growth
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nan
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nan
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Radian Group, Inc.'s RDN shares have risen 39.8% in the past year compared with the industry's 0.7% growth. The Finance sector has grown 8.9% and the Zacks S&P 500 index has gained 16.5% in the said time frame. With a market capitalization of $4 billion, the average volume of shares traded in the last three months totaled 1.1 million.
Image Source: Zacks Investment Research
The rally was largely driven by improved persistency and mortgage insurance portfolio, robust capital position as well as prudent capital deployment.
The multi-line insurer has a solid track record of beating on earnings in each of the last four quarters, delivering an average surprise of 25.26%.
Radian Group’s return on equity for the trailing 12 months is 15.6%, better than the industry average of 13.2%. This reflects its efficiency in utilizing shareholders’ funds.
Can It Retain the Momentum?
The Zacks Consensus Estimate for RDN’s 2023 earnings has moved 4.2% north in the past 30 days, reflecting analysts’ optimism about the stock.
Radian’s earnings are poised to grow on the strength of its mortgage insurance portfolio. The primary mortgage insurance in force should benefit from an increase in single premium policy insurance in force and a higher monthly premium policy. Notably, in terms of the housing market and based on industry projections for the total mortgage originations of $1.6 trillion, RDN expects the private mortgage insurance market in 2023 to be around $300 billion.
Persistency rate is poised to show improvement, given lower refinance activity, due to an increase in mortgage interest rates. Its business restructuring moves are focused on the core business and services with higher growth potential, ensuring a predictable and recurring fee-based revenue stream.
This Zacks Rank #3 (Hold) insurer has been witnessing declining claims over the past few years. Given the strong credit characteristics of the new loans insured, we expect the company to witness a lesser number of claims, favoring profitability.
However, Radian Group’s homegenius title and real estate businesses are affected by a decrease in industry-wide mortgage and real estate transaction volume, inflationary pressures and a higher interest rate environment. Nonetheless, with the continuing focus on disciplined cost management, the insurer remains hopeful about managing the homegenius business through this challenging environment.
Banking on operational excellence, this mortgage insurer maintains a solid balance sheet with sufficient liquidity and strong cash flows.
Solid liquidity favors effective capital deployment. RDN has increased dividends for four straight years and boasts the highest dividend yield in the private MI industry. Its current dividend yield of 3.5% is better than the industry average of 2.6%. The company has $230 million remaining under its buyback authorization.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Assurant, Inc. AIZ, Everest Group, Ltd. EG and Goosehead Insurance GSHD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Assurant’s earnings surpassed estimates in each of the last four quarters, delivering an average surprise of 42.38%.
The Zacks Consensus Estimate for AIZ’s 2023 and 2024 earnings implies 30.8% and 3.6% growth, respectively, on a year-over-year basis. In the past year, the insurer has gained 32.8%.
Everest Group’s earnings surpassed estimates in three of the last four quarters and missed in one, delivering an average surprise of 24.50%.
The Zacks Consensus Estimate for EG’s 2023 and 2024 earnings implies 105.32% and 10.98% growth, respectively, on a year-over-year basis. In the past year, the insurer has gained 19.3%.
Goosehead Insurance’s earnings surpassed estimates in three of the last four quarters and missed in one, delivering an average surprise of 100.43%.
The Zacks Consensus Estimate for GSHD’s 2023 and 2024 earnings implies 150.9% and 28.2% growth, respectively, on a year-over-year basis. In the past year, the insurer has gained 83.7%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Assurant, Inc. (AIZ) : Free Stock Analysis Report
Radian Group Inc. (RDN) : Free Stock Analysis Report
Goosehead Insurance (GSHD) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for RDN’s 2023 earnings has moved 4.2% north in the past 30 days, reflecting analysts’ optimism about the stock. Given the strong credit characteristics of the new loans insured, we expect the company to witness a lesser number of claims, favoring profitability. Banking on operational excellence, this mortgage insurer maintains a solid balance sheet with sufficient liquidity and strong cash flows.
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Notably, in terms of the housing market and based on industry projections for the total mortgage originations of $1.6 trillion, RDN expects the private mortgage insurance market in 2023 to be around $300 billion. Stocks to Consider Some better-ranked stocks from the multi-line insurance industry are Assurant, Inc. AIZ, Everest Group, Ltd. EG and Goosehead Insurance GSHD, each sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Goosehead Insurance (GSHD) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for RDN’s 2023 earnings has moved 4.2% north in the past 30 days, reflecting analysts’ optimism about the stock. Stocks to Consider Some better-ranked stocks from the multi-line insurance industry are Assurant, Inc. AIZ, Everest Group, Ltd. EG and Goosehead Insurance GSHD, each sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Goosehead Insurance (GSHD) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for RDN’s 2023 earnings has moved 4.2% north in the past 30 days, reflecting analysts’ optimism about the stock. Stocks to Consider Some better-ranked stocks from the multi-line insurance industry are Assurant, Inc. AIZ, Everest Group, Ltd. EG and Goosehead Insurance GSHD, each sporting a Zacks Rank #1 (Strong Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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9bfc4a4c-9e9b-472f-a968-08ba21f31132
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714756.0
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2023-12-06 00:00:00 UTC
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Do Options Traders Know Something About 2U (TWOU) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-2u-twou-stock-we-dont
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nan
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nan
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Investors in 2U, Inc. TWOU need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $40 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 2U shares, but what is the fundamental picture for the company? Currently, 2U is a Zacks Rank #3 (Hold) in the Internet – Software industry that ranks in the Top 14% of our Zacks Industry Rank. Over the last 30 days, our Zacks Consensus Estimate for the current quarter moved from 55 cents per share to 61 cents.
Given the way analysts feel about 2U right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
2U, Inc. (TWOU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
|
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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
|
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, 2U is a Zacks Rank #3 (Hold) in the Internet – Software industry that ranks in the Top 14% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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ba78441b-7c26-4751-9cf5-b77ee801fb2f
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714757.0
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2023-12-06 00:00:00 UTC
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Griffon (GFF) is on the Move, Here's Why the Trend Could be Sustainable
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DCOMP
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https://www.nasdaq.com/articles/griffon-gff-is-on-the-move-heres-why-the-trend-could-be-sustainable-1
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nan
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nan
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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.
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 Griffon (GFF) 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. GFF is quite a good fit in this regard, gaining 23.2% 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 15.6% over the past four weeks ensures that the trend is still in place for the stock of this garage door and building products maker.
Moreover, GFF is currently trading at 97.3% 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 GFF may not reverse anytime soon.
In addition to GFF, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
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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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 15.6% over the past four weeks ensures that the trend is still in place for the stock of this garage door and building products maker.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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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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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. In addition to GFF, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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641a64ef-a599-4018-a04f-11a2a4455a1c
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714758.0
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2023-12-06 00:00:00 UTC
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Recent Price Trend in TScan Therapeutics, Inc. (TCRX) is Your Friend, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/recent-price-trend-in-tscan-therapeutics-inc.-tcrx-is-your-friend-heres-why
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nan
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nan
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
TScan Therapeutics, Inc. (TCRX) 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. TCRX is quite a good fit in this regard, gaining 158% 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 64.9% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, TCRX is currently trading at 93.2% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #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 TCRX may not reverse anytime soon.
In addition to TCRX, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
TScan Therapeutics, Inc. (TCRX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report TScan Therapeutics, Inc. (TCRX) : 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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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). In addition to TCRX, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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4b847a97-03fa-4e98-a0c3-e609e8627dfd
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714759.0
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2023-12-06 00:00:00 UTC
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Recent Price Trend in Northrim (NRIM) is Your Friend, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/recent-price-trend-in-northrim-nrim-is-your-friend-heres-why
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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.
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 Northrim BanCorp (NRIM) 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. NRIM is quite a good fit in this regard, gaining 28.9% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 19.8% over the past four weeks ensures that the trend is still in place for the stock of this holding company for Northrim Bank.
Moreover, NRIM is currently trading at 86.3% 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 NRIM may not reverse anytime soon.
In addition to NRIM, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Northrim BanCorp Inc (NRIM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. A price increase of 19.8% over the past four weeks ensures that the trend is still in place for the stock of this holding company for Northrim Bank.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Northrim BanCorp Inc (NRIM) : 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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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. In addition to NRIM, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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92334f99-dae7-4006-928d-4519b1eaddd3
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714760.0
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2023-12-06 00:00:00 UTC
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The Pennant Group, Inc. (PNTG) Shows Fast-paced Momentum But Is Still a Bargain Stock
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DCOMP
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https://www.nasdaq.com/articles/the-pennant-group-inc.-pntg-shows-fast-paced-momentum-but-is-still-a-bargain-stock
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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.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
The Pennant Group, Inc. (PNTG) 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:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 16.1% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. PNTG meets this criterion too, as the stock gained 17.5% over the past 12 weeks.
Moreover, the momentum for PNTG is fast paced, as the stock currently has a beta of 2.04. This indicates that the stock moves 104% higher than the market in either direction.
Given this price performance, it is no surprise that PNTG 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 PNTG 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, PNTG 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. PNTG is currently trading at 0.77 times its sales. In other words, investors need to pay only 77 cents for each dollar of sales.
So, PNTG appears to have plenty of room to run, and that too at a fast pace.
In addition to PNTG, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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 Pennant Group, Inc. (PNTG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, PNTG 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.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PNTG earn a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, PNTG is trading at a reasonable valuation.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that PNTG 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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, PNTG is trading at a reasonable valuation.
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Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. In addition to PNTG, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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063c2b17-16d0-4ee9-a7ee-a2ed946b01ee
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714761.0
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2023-12-06 00:00:00 UTC
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Here's How Much You'd Have If You Invested $1000 in Fortinet a Decade Ago
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DCOMP
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https://www.nasdaq.com/articles/heres-how-much-youd-have-if-you-invested-%241000-in-fortinet-a-decade-ago-0
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nan
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nan
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Fortinet (FTNT) ten years ago? It may not have been easy to hold on to FTNT for all that time, but if you did, how much would your investment be worth today?
Fortinet's Business In-Depth
With that in mind, let's take a look at Fortinet's main business drivers.
Headquartered in Sunnyvale, CA, Fortinet, Inc. is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide.
Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking (VPN), antivirus, intrusion prevention (IP), web filtering, anti-spam and wide area network (WAN) acceleration.
Through its products and subscription services, the company provides integrated protection against dynamic security threats while simplifying the IT security infrastructure. Its solutions incorporate application-specific integrated circuits, hardware architecture, operating system, and associated security and networking functions to defend against multiple categories of IT security attacks without impacting network performance.
The company’s network security gateways protect customer data, reduce security complexities and lower the total cost of ownership. Customers are able to implement their security policies on traffic between internal networks and the Internet, as well as between internal and private networks shared with partners.
Its flagship UTM solution consists of the FortiGate appliance product line and FortiGuard security subscription services.
Its products and services are sold through a network of more than 20,000 channel partners worldwide, including distributors, resellers, value-added resellers and managed service providers. The company caters to more than 450,000 customers worldwide that includes most of the Fortune 100 companies.
The company derives a significant portion of total sales from the top 10 biggest distributors, of which Exclusive Networks Group has the highest share and accounted for 31% of 2021 total revenues followed by Ingram Micro’s 12%.
Fortinet reported revenues of $4.42 billion in 2022, which increased 32.2% from 2021. Product revenue was $1.78 billion, up 41.9% while Service revenue of $2.64 billion improved 26.3% year over year in 2022.
The company faces significant competition with Palo Alto Networks, CyberArk, Qualys and Cisco in the network security as well as cloud security space.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Fortinet, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in December 2013 would be worth $14,886.62, or a gain of 1,388.66%, as of December 6, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 155.86% and the price of gold increased 57.87% over the same time frame in comparison.
Going forward, analysts are expecting more upside for FTNT. Fortinet is benefiting from rising demand from small enterprise customers and growth in the company's security subscriptions. The company is also gaining from the robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings. Continued deal wins, especially those of high value, are a key driver. Higher IT spending on cybersecurity is further expected to aid Fortinet in growing faster than the security market. We expect 2023 net sales to increase 19.7% from 2022. The focus on enhancing its unified threat management (UTM) portfolio through product development and acquisitions is a tailwind for the company. However, intensifying competition because of increasing consolidation in the security industry poses concerns. Increased hiring and mergers & acquisitions spends remain overhangs on margin. The stock is up 6.06% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 16 higher, for fiscal 2023. The consensus estimate has moved up as well.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Bottom Line Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. The company is also gaining from the robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Headquartered in Sunnyvale, CA, Fortinet, Inc. is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide. Through its products and subscription services, the company provides integrated protection against dynamic security threats while simplifying the IT security infrastructure. Its products and services are sold through a network of more than 20,000 channel partners worldwide, including distributors, resellers, value-added resellers and managed service providers.
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries. Headquartered in Sunnyvale, CA, Fortinet, Inc. is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide. The company faces significant competition with Palo Alto Networks, CyberArk, Qualys and Cisco in the network security as well as cloud security space.
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It may not have been easy to hold on to FTNT for all that time, but if you did, how much would your investment be worth today? The company faces significant competition with Palo Alto Networks, CyberArk, Qualys and Cisco in the network security as well as cloud security space. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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bc398939-89c4-47af-b991-f04e01007c6e
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714762.0
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2023-12-06 00:00:00 UTC
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Why Fast-paced Mover Dick's (DKS) Is a Great Choice for Value Investors
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DCOMP
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https://www.nasdaq.com/articles/why-fast-paced-mover-dicks-dks-is-a-great-choice-for-value-investors-0
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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.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Dick's Sporting Goods (DKS) 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:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 20.4% over the past four weeks positions the stock of this sporting goods retailer well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. DKS meets this criterion too, as the stock gained 24% over the past 12 weeks.
Moreover, the momentum for DKS is fast paced, as the stock currently has a beta of 1.52. This indicates that the stock moves 52% higher than the market in either direction.
Given this price performance, it is no surprise that DKS has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DKS 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, DKS 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. DKS is currently trading at 0.88 times its sales. In other words, investors need to pay only 88 cents for each dollar of sales.
So, DKS appears to have plenty of room to run, and that too at a fast pace.
In addition to DKS, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DKS 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.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DKS earn a Zacks Rank #2 (Buy). Click to get this free report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that DKS has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DKS is trading at a reasonable valuation.
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Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. In addition to DKS, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2616f2ea-1b61-4bec-99e8-e47253fea934
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714763.0
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2023-12-06 00:00:00 UTC
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Fast-paced Momentum Stock Insight Enterprises (NSIT) Is Still Trading at a Bargain
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DCOMP
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https://www.nasdaq.com/articles/fast-paced-momentum-stock-insight-enterprises-nsit-is-still-trading-at-a-bargain
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nan
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nan
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Insight Enterprises (NSIT) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 16.9%, the stock of this information technology provider 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. NSIT meets this criterion too, as the stock gained 13.9% over the past 12 weeks.
Moreover, the momentum for NSIT is fast paced, as the stock currently has a beta of 1.5. This indicates that the stock moves 50% higher than the market in either direction.
Given this price performance, it is no surprise that NSIT has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped NSIT earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, NSIT 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. NSIT is currently trading at 0.59 times its sales. In other words, investors need to pay only 59 cents for each dollar of sales.
So, NSIT appears to have plenty of room to run, and that too at a fast pace.
In addition to NSIT, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. 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, NSIT is trading at a reasonable valuation.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped NSIT earn a Zacks Rank #1 (Strong Buy). Click to get this free report Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that NSIT has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, NSIT is trading at a reasonable valuation.
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Momentum investors typically don't time the market or "buy low and sell high." In addition to NSIT, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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e57033be-7e5b-4b9b-9688-ad372c5bebdf
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714764.0
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2023-12-06 00:00:00 UTC
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Despite Fast-paced Momentum, Subsea 7 SA (SUBCY) Is Still a Bargain Stock
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DCOMP
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https://www.nasdaq.com/articles/despite-fast-paced-momentum-subsea-7-sa-subcy-is-still-a-bargain-stock
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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.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Subsea 7 SA (SUBCY) is one of them. Here are the key reasons why this stock is a great candidate.
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 4.7% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. SUBCY meets this criterion too, as the stock gained 0% over the past 12 weeks.
Moreover, the momentum for SUBCY is fast paced, as the stock currently has a beta of 1.77. This indicates that the stock moves 77% higher than the market in either direction.
Given this price performance, it is no surprise that SUBCY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped SUBCY earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, SUBCY 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. SUBCY is currently trading at 0.72 times its sales. In other words, investors need to pay only 72 cents for each dollar of sales.
So, SUBCY appears to have plenty of room to run, and that too at a fast pace.
In addition to SUBCY, 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Subsea 7 SA (SUBCY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment 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, SUBCY 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), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped SUBCY earn a Zacks Rank #1 (Strong Buy). Click to get this free report Subsea 7 SA (SUBCY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that SUBCY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, SUBCY is trading at a reasonable valuation.
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Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. In addition to SUBCY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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7685ec2a-8560-46b3-903c-941718ba00e1
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714765.0
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2023-12-06 00:00:00 UTC
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Want Better Returns? Don?t Ignore These 2 Computer and Technology Stocks Set to Beat Earnings
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DCOMP
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https://www.nasdaq.com/articles/want-better-returns-dont-ignore-these-2-computer-and-technology-stocks-set-to-beat-14
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nan
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nan
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Micron?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Micron (MU) earns a #3 (Hold) right now and its Most Accurate Estimate sits at -$1 a share, just 14 days from its upcoming earnings release on December 20, 2023.
MU has an Earnings ESP figure of +1.78%, which, as explained above, is calculated by taking the percentage difference between the -$1 Most Accurate Estimate and the Zacks Consensus Estimate of -$1.01. Micron is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MU is just one of a large group of Computer and Technology stocks with a positive ESP figure. Salesforce.com (CRM) is another qualifying stock you may want to consider.
Salesforce.com is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on March 6, 2024. CRM's Most Accurate Estimate sits at $2.26 a share 91 days from its next earnings release.
The Zacks Consensus Estimate for Salesforce.com is $2.26, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.22%.
Because both stocks hold a positive Earnings ESP, MU and CRM could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise. Check it out here >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Because both stocks hold a positive Earnings ESP, MU and CRM could potentially post earnings beats in their next reports. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Earnings ESP, Explained The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. Because both stocks hold a positive Earnings ESP, MU and CRM could potentially post earnings beats in their next reports. Find Stocks to Buy or Sell Before They're Reported Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading.
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Because both stocks hold a positive Earnings ESP, MU and CRM could potentially post earnings beats in their next reports. Find Stocks to Buy or Sell Before They're Reported Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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0d6dc22b-4643-4aff-bdb3-d39f9f4b3c89
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714766.0
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2023-12-06 00:00:00 UTC
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These 2 Consumer Discretionary Stocks Could Beat Earnings: Why They Should Be on Your Radar
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DCOMP
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https://www.nasdaq.com/articles/these-2-consumer-discretionary-stocks-could-beat-earnings%3A-why-they-should-be-on-your-11
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nan
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nan
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Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Lululemon?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Lululemon (LULU) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $2.30 a share one day away from its upcoming earnings release on December 7, 2023.
By taking the percentage difference between the $2.30 Most Accurate Estimate and the $2.27 Zacks Consensus Estimate, Lululemon has an Earnings ESP of +0.92%. Investors should also know that LULU is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
LULU is part of a big group of Consumer Discretionary stocks that boast a positive ESP, and investors may want to take a look at Royal Caribbean (RCL) as well.
Royal Caribbean, which is readying to report earnings on February 6, 2024, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $1.12 a share, and RCL is 62 days out from its next earnings report.
Royal Caribbean's Earnings ESP figure currently stands at +1.23% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.11.
Because both stocks hold a positive Earnings ESP, LULU and RCL could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price. LULU is part of a big group of Consumer Discretionary stocks that boast a positive ESP, and investors may want to take a look at Royal Caribbean (RCL) as well. Check it out here >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Royal Caribbean's Earnings ESP figure currently stands at +1.23% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.11. Click to get this free report lululemon athletica inc. (LULU) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Earnings ESP, Explained The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. Find Stocks to Buy or Sell Before They're Reported Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Click to get this free report lululemon athletica inc. (LULU) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter. Royal Caribbean's Earnings ESP figure currently stands at +1.23% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.11. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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c496e97f-b662-4e28-bf29-8c76c51ef63e
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714767.0
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2023-12-06 00:00:00 UTC
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Is the Options Market Predicting a Spike in Suncor Energy (SU) Stock?
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-suncor-energy-su-stock-0
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Investors in Suncor Energy Inc. SU need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $3 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 Suncor Energy shares, but what is the fundamental picture for the company? Currently, Suncor Energy is a Zacks Rank #3 (Hold) in the Oil and Gas - Integrated - Canadian industry that ranks in the Bottom 14% of our Zacks Industry Rank. Over the last 30 days, our Zacks Consensus Estimate for the current quarter moved from 96 cents per share to 90 cents.
Given the way analysts feel about Suncor Energy right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Suncor Energy Inc. (SU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Suncor Energy Inc. (SU) : 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, Suncor Energy is a Zacks Rank #3 (Hold) in the Oil and Gas - Integrated - Canadian industry that ranks in the Bottom 14% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel about Suncor Energy right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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43477c99-9de4-4d51-9313-8b3d73201e8c
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714768.0
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2023-12-06 00:00:00 UTC
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Engine Capital pushes for changes at cancer therapy developer 2seventy bio
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https://www.nasdaq.com/articles/engine-capital-pushes-for-changes-at-cancer-therapy-developer-2seventy-bio
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Adds company statement in paragraph 3
Dec 6 (Reuters) - Activist investor Engine Capital on Wednesday sent a letter to the board of cancer therapy developer 2seventy bio TSVT.O, urging a board refresh and the appointment of Chief Operating Officer Chip Baird as CEO, among other changes.
Engine Capital, which owns about a 3% stake in 2seventy bio, said the company should exclusively focus on its blood cancer therapy Abecma, and explore ways to "immediately cease or monetize all development programs".
In response, 2seventy bio said its board had commenced a process to consider all options to maximize shareholder value and ensure that its important therapies become available to patients in need.
Engine Capital pushed for a shareholder representative to be added to the company's board and asked for a special committee of independent directors to be established for communicating with the shareholders.
The push from Engine Capital comes after 2seventy bio disclosed restructuring plans in September, along with CEO Nick Leschly's intention to step down and transition to the role of chairman.
The biotech firm had said it plans to lay off about 40% of its workforce to lower costs and focus on Abecma.
Abecma, for which 2seventy bio partners with Bristol Myers Squibb BMY.N, faces competition from Johnson & Johnson JNJ.N and Legend Biotech's LEGN.O Carvykti.
Both the therapies belong to a class of treatments called CAR-T therapies, which are under investigation by the U.S. Food and Drug Administration over the risk of hospitalizations and death due to a serious safety issue.
In November, the health regulator also delayed its decision on the expanded use of Abecma in earlier lines of treatment as it plans to seek the advice of experts.
Abecma is currently approved for treating multiple myeloma patients after four or more prior therapies fail to show improvement.
(Reporting by Bhanvi Satija and Christy Santhosh 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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Engine Capital, which owns about a 3% stake in 2seventy bio, said the company should exclusively focus on its blood cancer therapy Abecma, and explore ways to "immediately cease or monetize all development programs". The push from Engine Capital comes after 2seventy bio disclosed restructuring plans in September, along with CEO Nick Leschly's intention to step down and transition to the role of chairman. In November, the health regulator also delayed its decision on the expanded use of Abecma in earlier lines of treatment as it plans to seek the advice of experts.
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Adds company statement in paragraph 3 Dec 6 (Reuters) - Activist investor Engine Capital on Wednesday sent a letter to the board of cancer therapy developer 2seventy bio TSVT.O, urging a board refresh and the appointment of Chief Operating Officer Chip Baird as CEO, among other changes. Engine Capital, which owns about a 3% stake in 2seventy bio, said the company should exclusively focus on its blood cancer therapy Abecma, and explore ways to "immediately cease or monetize all development programs". Engine Capital pushed for a shareholder representative to be added to the company's board and asked for a special committee of independent directors to be established for communicating with the shareholders.
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Adds company statement in paragraph 3 Dec 6 (Reuters) - Activist investor Engine Capital on Wednesday sent a letter to the board of cancer therapy developer 2seventy bio TSVT.O, urging a board refresh and the appointment of Chief Operating Officer Chip Baird as CEO, among other changes. Engine Capital, which owns about a 3% stake in 2seventy bio, said the company should exclusively focus on its blood cancer therapy Abecma, and explore ways to "immediately cease or monetize all development programs". (Reporting by Bhanvi Satija and Christy Santhosh 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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Adds company statement in paragraph 3 Dec 6 (Reuters) - Activist investor Engine Capital on Wednesday sent a letter to the board of cancer therapy developer 2seventy bio TSVT.O, urging a board refresh and the appointment of Chief Operating Officer Chip Baird as CEO, among other changes. Engine Capital, which owns about a 3% stake in 2seventy bio, said the company should exclusively focus on its blood cancer therapy Abecma, and explore ways to "immediately cease or monetize all development programs". In response, 2seventy bio said its board had commenced a process to consider all options to maximize shareholder value and ensure that its important therapies become available to patients in need.
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56e425d6-6c0b-4594-8ba9-b6dd5c20e788
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714769.0
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2023-12-06 00:00:00 UTC
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LyondellBasell (LYB) Acquires Minority Share in Source One
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https://www.nasdaq.com/articles/lyondellbasell-lyb-acquires-minority-share-in-source-one-0
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LyondellBasell Industries N.V. LYB announced the acquisition of a minority stake in Source One GmbH, Leiferde, Germany, a plastic waste sourcing and engineering firm focused on developing technical solutions for difficult-to-recycle post-consumer plastic waste. Both LyondellBasell and Landbell will be shareholders in Source One. Landbell is a global service provider with a global network of Extended Producer Responsibility (EPR) and take-back organizations.
LyondellBasell has gained access to Source One's engineering and plastic waste-sourcing services as a result of this strategic investment. It also forms a collaboration with Landbell to supply plastic packaging waste volumes for LYB's advanced recycling operations. Processing plastic waste volumes from EPR Service Providers like Landbell strengthens LYB’s commitment to assisting brand owners in closing the plastic packaging loop.
LyondellBasell is taking another important step to secure access to plastic waste for recycling activities and to strengthen its Circulen product portfolio of materials made from recyclable or renewable resources by investing in Source One, LYB noted.
Source One will be 50% owned by 23 Oaks Investments, Leiferde, Germany, which has formed the joint venture Source One Plastics with LyondellBasell in 2022. Source One Plastics is currently building an energy-efficient, advanced plastic waste sorting and recycling facility in Germany.
Shares of LyondellBasell have gained 13.7% over the past year against the 12.5% decline of its industry.
Image Source: Zacks Investment Research
The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to decline.
Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LyondellBasell plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently sports a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock has gained 62.5% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently flaunts a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock has rallied 20.6% in a year.
Andersons currently carries a Zacks Rank #2 (Buy). The stock has gained roughly 50.1% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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 Andersons, Inc. (ANDE) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LyondellBasell has gained access to Source One's engineering and plastic waste-sourcing services as a result of this strategic investment. It also forms a collaboration with Landbell to supply plastic packaging waste volumes for LYB's advanced recycling operations. Image Source: Zacks Investment Research The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter.
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LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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LyondellBasell Industries N.V. LYB announced the acquisition of a minority stake in Source One GmbH, Leiferde, Germany, a plastic waste sourcing and engineering firm focused on developing technical solutions for difficult-to-recycle post-consumer plastic waste. LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). The stock has gained roughly 50.1% in the past year. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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c2a67860-353e-43d9-ab97-57436c6336eb
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714770.0
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2023-12-06 00:00:00 UTC
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Albemarle Corporation (ALB) Is a Trending Stock: Facts to Know Before Betting on It
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https://www.nasdaq.com/articles/albemarle-corporation-alb-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-6
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Albemarle (ALB) 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 specialty chemicals company have returned -7.3% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Chemical - Diversified industry, to which Albemarle belongs, has lost 1.2% 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.
Albemarle is expected to post earnings of $1.70 per share for the current quarter, representing a year-over-year change of -80.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -44%.
For the current fiscal year, the consensus earnings estimate of $22.21 points to a change of +1.1% from the prior year. Over the last 30 days, this estimate has changed -0.8%.
For the next fiscal year, the consensus earnings estimate of $13.26 indicates a change of -40.3% from what Albemarle is expected to report a year ago. Over the past month, the estimate has changed -15.3%.
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, Albemarle is rated Zacks Rank #4 (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.
For Albemarle, the consensus sales estimate for the current quarter of $2.44 billion indicates a year-over-year change of -6.8%. For the current and next fiscal years, $9.59 billion and $8.7 billion estimates indicate +31% and -9.3% changes, respectively.
Last Reported Results and Surprise History
Albemarle reported revenues of $2.31 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $2.74 for the same period compares with $7.50 a year ago.
Compared to the Zacks Consensus Estimate of $2.39 billion, the reported revenues represent a surprise of -3.45%. The EPS surprise was -25.95%.
Over the last four quarters, Albemarle surpassed consensus EPS estimates three times. 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.
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.
Albemarle is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Albemarle. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Albemarle Corporation (ALB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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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. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Albemarle is rated Zacks Rank #4 (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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And if earnings estimates go up for a company, the fair value for its stock goes up. 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. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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8b37e29c-c17d-4669-9b12-61503f865adc
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714771.0
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2023-12-06 00:00:00 UTC
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Is Aurora Cannabis Stock a Buy Now?
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https://www.nasdaq.com/articles/is-aurora-cannabis-stock-a-buy-now-1
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If you're a fan of investing in turnaround plays, Aurora Cannabis (NASDAQ: ACB) is a stock that you should probably know about. The Canadian marijuana company is mapping out a path to ultimately overcome the intense turbulence it encountered over the last couple of years, and if management's guidance proves correct, it may even see its shares begin to appreciate in value.
But at the end of the day, it's still a risky pot stock in the midst of finding its footing, and there are a few potential stumbling blocks ahead. Here's what you need to know about whether to buy the stock or not.
Is this the start of the turnaround?
Aurora shareholders have had a (very) rough few years. The company's shares are down 96% compared to three years ago, and its quarterly revenue is down by 9% in the same period, leaving it with around 63 million Canadian dollars in sales. Multiple factors are to blame, starting with its now-abandoned leave-no-customer-behind strategy, wherein it seriously overbuilt its cannabis production capacity as well as its retail footprint in an attempt to seize as much of the Canadian marijuana market as possible.
At that time, the Canadian cannabis market was booming, with one gram of legal marijuana selling for around CA$6. But as more and more cultivation capacity came online between Aurora and its competitors, eventually there was more product on the market than there was demand. That caused prices to collapse, taking the margins of many companies with it. Aurora and its peers were forced to scale back their operations sharply as a result. Now, with the green shoots of the Canadian market's recovery starting to appear, one gram of cannabis is priced closer to CA$5. An improving price level could thus support recovery of margins and thus potentially synergize with a turnaround wrought from newly efficient operations. It's also making some headway in European markets like Germany, France, Poland, and the U.K., which might drive some faster revenue growth.
Thanks to a couple of years spent scaling down and reducing spending, CEO Miguel Martin maintains that the company will reach positive free cash flow (FCF) sometime in 2024. That looks a lot more possible now than it did a couple of years ago, when its cost-cutting transformation plan was in full swing. In its fiscal Q2, which corresponds to the quarter that closed at the end of September, it reported positive operating income of CA$2 million for the first time since early 2016. But it still lost CA$35 million in cash during the quarter.
At its current pace of spending, the business can sustain that cash burn rate for a while without worry. It still has $129 million in cash, equivalents, and short-term investments, and on Oct. 3 it closed a bought deal stock offering to raise CA$39 million in gross proceeds. Management doesn't think it'll need to pursue any at-the-market share offerings for the medium term. So if you decide to invest, you can be somewhat confident that your shares won't get diluted immediately. And if the company can continue to post positive operating income while finalizing the work of trimming its overhead, real profitability could be just a couple of quarters around the corner. At that point, the stock would likely see its valuation multiples expand, and further earnings growth could start to drive its shares upward.
There's an opportunity shaping up, but it's risky
Now is a more favorable time to buy Aurora Cannabis stock than in the last handful of years. The combination of its still-forming operational efficiency and the potential for rising cannabis prices could make for a steady comeback. It's possible that its shares will eventually fly once the market notices the progress it's made.
But if you aren't comfortable with a risky bet, this isn't the stock for you. The business's turnaround, while looking probable at the moment, is not in any way guaranteed.
Despite owning a bunch of different cannabis brands in different segments of the market, it has not yet demonstrated any competitive advantage with which to retain its market share. Therefore, it will be forced to spend significant amounts on marketing to make inroads in crowded major markets like Canada. Furthermore, it is not positioned to take advantage of cannabis legalization in the U.S. in any way, assuming it happens at all. In other words, its competitors could potentially soon grow rapidly outside of Canada while also crimping Aurora's growth at home.
So is this stock a buy now? For most investors, no, but for those who are highly tolerant of risk, and who like the idea of investing in a turnaround, it could be a good time to start thinking about starting a position.
10 stocks we like better than Aurora Cannabis
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.*
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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 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 Canadian marijuana company is mapping out a path to ultimately overcome the intense turbulence it encountered over the last couple of years, and if management's guidance proves correct, it may even see its shares begin to appreciate in value. Multiple factors are to blame, starting with its now-abandoned leave-no-customer-behind strategy, wherein it seriously overbuilt its cannabis production capacity as well as its retail footprint in an attempt to seize as much of the Canadian marijuana market as possible. Thanks to a couple of years spent scaling down and reducing spending, CEO Miguel Martin maintains that the company will reach positive free cash flow (FCF) sometime in 2024.
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Now, with the green shoots of the Canadian market's recovery starting to appear, one gram of cannabis is priced closer to CA$5. In its fiscal Q2, which corresponds to the quarter that closed at the end of September, it reported positive operating income of CA$2 million for the first time since early 2016. There's an opportunity shaping up, but it's risky Now is a more favorable time to buy Aurora Cannabis stock than in the last handful of years.
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There's an opportunity shaping up, but it's risky Now is a more favorable time to buy Aurora Cannabis stock than in the last handful of years. 10 stocks we like better than Aurora Cannabis 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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Is this the start of the turnaround? An improving price level could thus support recovery of margins and thus potentially synergize with a turnaround wrought from newly efficient operations. There's an opportunity shaping up, but it's risky Now is a more favorable time to buy Aurora Cannabis stock than in the last handful of years.
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45d8e59e-5103-42fd-8a19-2c445fcd12a3
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714772.0
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2023-12-06 00:00:00 UTC
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Best Growth Stocks to Buy for December 6th
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DCOMP
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https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-december-6th-1
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nan
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nan
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 6th:
Arcos Dorados ARCO: This company which operates as a franchisee of McDonald's with its operations divided in Brazil, Latin America and the Caribbean, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.
Arcos Dorados Holdings Inc. Price and Consensus
Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote
Arcos Dorados has a PEG ratio of 1.16 compared with 2.30 for the industry. The company possesses a Growth Score of A.
Arcos Dorados Holdings Inc. PEG Ratio (TTM)
Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote
Everest Group, Ltd. EG: This company which is a property and casualty insurer and reinsurer in all states, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.4% over the last 60 days.
Everest Group, Ltd. Price and Consensus
Everest Group, Ltd. price-consensus-chart | Everest Group, Ltd. Quote
Everest Group has a PEG ratio of 0.19 compared with 0.77 for the industry. The company possesses a Growth Score of B.
Everest Group, Ltd. PEG Ratio (TTM)
Everest Group, Ltd. peg-ratio-ttm | Everest Group, Ltd. Quote
H&E Equipment Services HEES: This company which is one of the largest integrated equipment services companies in the United States with full-service facilities throughout the Intermountain, Southwest, Gulf Coast & Southeast regions of the United States, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.2% over the last 60 days.
H&E Equipment Services, Inc. Price and Consensus
H&E Equipment Services, Inc. price-consensus-chart | H&E Equipment Services, Inc. Quote
H&E Equipment Services has a PEG ratio of 0.76 compared with 0.88 for the industry. The company possesses a Growth Score of B.
H&E Equipment Services, Inc. PEG Ratio (TTM)
H&E Equipment Services, Inc. peg-ratio-ttm | H&E Equipment Services, Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 6th: Arcos Dorados ARCO: This company which operates as a franchisee of McDonald's with its operations divided in Brazil, Latin America and the Caribbean, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days. The company possesses a Growth Score of B. Everest Group, Ltd. PEG Ratio (TTM) Everest Group, Ltd. peg-ratio-ttm | Everest Group, Ltd. Quote H&E Equipment Services HEES: This company which is one of the largest integrated equipment services companies in the United States with full-service facilities throughout the Intermountain, Southwest, Gulf Coast & Southeast regions of the United States, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.2% over the last 60 days. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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The company possesses a Growth Score of A. Arcos Dorados Holdings Inc. PEG Ratio (TTM) Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote Everest Group, Ltd. EG: This company which is a property and casualty insurer and reinsurer in all states, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.4% over the last 60 days. The company possesses a Growth Score of B. Everest Group, Ltd. PEG Ratio (TTM) Everest Group, Ltd. peg-ratio-ttm | Everest Group, Ltd. Quote H&E Equipment Services HEES: This company which is one of the largest integrated equipment services companies in the United States with full-service facilities throughout the Intermountain, Southwest, Gulf Coast & Southeast regions of the United States, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.2% over the last 60 days. 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 Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Growth Score of A. Arcos Dorados Holdings Inc. PEG Ratio (TTM) Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote Everest Group, Ltd. EG: This company which is a property and casualty insurer and reinsurer in all states, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.4% over the last 60 days. The company possesses a Growth Score of B. Everest Group, Ltd. PEG Ratio (TTM) Everest Group, Ltd. peg-ratio-ttm | Everest Group, Ltd. Quote H&E Equipment Services HEES: This company which is one of the largest integrated equipment services companies in the United States with full-service facilities throughout the Intermountain, Southwest, Gulf Coast & Southeast regions of the United States, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.2% over the last 60 days. 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 Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today December 6th: Arcos Dorados ARCO: This company which operates as a franchisee of McDonald's with its operations divided in Brazil, Latin America and the Caribbean, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? 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 Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4978ef8f-f6b0-48df-919e-99ad1bab634a
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714773.0
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2023-12-06 00:00:00 UTC
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Landstar (LSTR) Cheers Investors With Buyback, Special Dividend
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DCOMP
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https://www.nasdaq.com/articles/landstar-lstr-cheers-investors-with-buyback-special-dividend
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nan
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nan
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In a shareholder-friendly move, Landstar System, Inc. LSTR announced an increase in its share repurchase authorization program. LSTR’s board of directors has raised the number of shares of its common stock, which the company is authorized to purchase, to 3,000,000. The latest uptick allows the company to purchase 319,332 new shares, apart from the existing authorization to purchase 2,680,668 shares.
Additionally, LSTR’s board has declared a special one-time cash dividend of $2.00 per share. This special dividend will be paid on Jan 19, 2024, to all its shareholders of record as of the close of the business on Jan 3, 2024.
Landstar president and chief executive officer, Jim Gattoni, stated, “Landstar’s strong balance sheet and free cash flow generation enable us to continue to return value to our stockholders.”
Landstar has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. During the first 11 months of 2023, LSTR purchased 319,332 shares for almost $53.9 million. The trucking company has also rewarded its shareholders through $117.1 million of dividend payments so far this year.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like LSTR, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
LSTR management’s decision to increase its share buyback program and special dividend payout reflects the company’s commitment to boosting shareholder value apart from underlining confidence in its business. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact this Zacks Rank #5 (Strong Sell) stock bottom line.
Stocks to Consider
Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.02% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 5.1% over the past 90 days. Shares of WAB have gained 20.4% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 31.5% over the past 90 days. Shares of SKYW have surged 191.9% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dividend stocks, like LSTR, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario. LSTR management’s decision to increase its share buyback program and special dividend payout reflects the company’s commitment to boosting shareholder value apart from underlining confidence in its business. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact this Zacks Rank #5 (Strong Sell) stock bottom line.
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LSTR management’s decision to increase its share buyback program and special dividend payout reflects the company’s commitment to boosting shareholder value apart from underlining confidence in its business. Stocks to Consider Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Click to get this free report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report Landstar System, Inc. (LSTR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Landstar president and chief executive officer, Jim Gattoni, stated, “Landstar’s strong balance sheet and free cash flow generation enable us to continue to return value to our stockholders.” Landstar has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. Stocks to Consider Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Click to get this free report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report Landstar System, Inc. (LSTR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The trucking company has also rewarded its shareholders through $117.1 million of dividend payments so far this year. LSTR management’s decision to increase its share buyback program and special dividend payout reflects the company’s commitment to boosting shareholder value apart from underlining confidence in its business. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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7db15369-3cce-4c38-ba8c-1df686b07227
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714774.0
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2023-12-06 00:00:00 UTC
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Company News for Dec 6, 2023
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DCOMP
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https://www.nasdaq.com/articles/company-news-for-dec-6-2023
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nan
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nan
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The J. M. Smucker Company (SJM) shares jumped 3.3% after the company reported second-quarter earnings of 2.59 per share, beating the Zacks Consensus Estimate of $2.47 per share.
Signet Jewelers Limited (SIG) shares gained 5.9% after the company reported third-quarter earnings of 0.24 per share, beating the Zacks Consensus Estimate of $0.15 per share.
AutoZone, Inc. (AZO) shares rose 0.3% after the company reported first-quarter earnings of 32.55 per share, beating the Zacks Consensus Estimate of $31.01 per share.
Shares of Telefonaktiebolaget LM Ericsson (publ) (ERIC) shares surged by 4% following the announcement of the five-year deal with AT&T Inc. (T).
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
AT&T Inc. (T) : Free Stock Analysis Report
Ericsson (ERIC) : Free Stock Analysis Report
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
AutoZone, Inc. (AZO) : Free Stock Analysis Report
Signet Jewelers Limited (SIG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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The J. M. Smucker Company (SJM) shares jumped 3.3% after the company reported second-quarter earnings of 2.59 per share, beating the Zacks Consensus Estimate of $2.47 per share. Signet Jewelers Limited (SIG) shares gained 5.9% after the company reported third-quarter earnings of 0.24 per share, beating the Zacks Consensus Estimate of $0.15 per share. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Ericsson (ERIC) : Free Stock Analysis Report The J. M. Smucker Company (SJM) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report Signet Jewelers Limited (SIG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The J. M. Smucker Company (SJM) shares jumped 3.3% after the company reported second-quarter earnings of 2.59 per share, beating the Zacks Consensus Estimate of $2.47 per share. Signet Jewelers Limited (SIG) shares gained 5.9% after the company reported third-quarter earnings of 0.24 per share, beating the Zacks Consensus Estimate of $0.15 per share. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Ericsson (ERIC) : Free Stock Analysis Report The J. M. Smucker Company (SJM) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report Signet Jewelers Limited (SIG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Signet Jewelers Limited (SIG) shares gained 5.9% after the company reported third-quarter earnings of 0.24 per share, beating the Zacks Consensus Estimate of $0.15 per share. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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050f7fa7-61b7-4c4e-84a3-aacfd2259b57
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714775.0
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2023-12-06 00:00:00 UTC
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Ansys' (ANSS) RaptorX Receives Samsung Foundry Certification
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DCOMP
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https://www.nasdaq.com/articles/ansys-anss-raptorx-receives-samsung-foundry-certification
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nan
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nan
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Ansys ANSS announced that Samsung Foundry has certified RaptorX on-chip electromagnetic solution for analyzing advanced high-speed products developed using Samsung's 8nm LN08LPP Low Power Plus silicon process.
The certification will help customers leverage Samsung's manufacturing prowess for enhanced product reliability and performance in 5G, WiFi, automotive, and HPC applications. The certification aims to address the semiconductor industry's increasing need for electromagnetic modeling.
RaptorX's reliability in predicting circuit behavior empowers designers to optimize their products, which ensures that they meet performance expectations. RaptorX has performed well across various intricate layout designs, including dense dummy-metal fill, aligning well with silicon measurements.
ANSYS, Inc. Price and Consensus
ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote
Per a report from Mordor Intelligence, the electromagnetic simulation software market size is estimated at $1.24 billion in 2023 and is expected to reach $2.01 billion by 2028, witnessing a CAGR of 10.14% from 2023 to 2028.
Ansys develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a spectrum of industries and academia.
In November, the company announced that its simulation solutions are being leveraged by a leading nuclear technology company — NuScale Power. Ansys will help NuScale Power develop the NPM, which is the first small modular reactor approved by the U.S. Nuclear Regulatory Commission.
Prior to that, the company announced that its simulation solutions are being leveraged by uPI Semiconductor Corp to enhance the efficiency of its product packaging processes and achieve a two-fold improvement in thermal reliability.
ANSS now projects 2023 non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. Management expects non-GAAP operating margin between 41% and 42%.
Non-GAAP earnings per share (EPS) are anticipated to be in the range of $8.34-$8.75 compared with the previous guidance of $8.39-$8.88.
ANSS currently carries a Zacks Rank #3 (Hold). Shares of ANSYS have gained 14.9% in the past year compared with the sub-industry’s growth of 52.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have jumped 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%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Flex Ltd. (FLEX) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
ANSYS, Inc. (ANSS) : 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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The certification will help customers leverage Samsung's manufacturing prowess for enhanced product reliability and performance in 5G, WiFi, automotive, and HPC applications. RaptorX's reliability in predicting circuit behavior empowers designers to optimize their products, which ensures that they meet performance expectations. Prior to that, the company announced that its simulation solutions are being leveraged by uPI Semiconductor Corp to enhance the efficiency of its product packaging processes and achieve a two-fold improvement in thermal reliability.
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Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report ANSYS, Inc. (ANSS) : 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 Stocks to Consider Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report ANSYS, Inc. (ANSS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ansys ANSS announced that Samsung Foundry has certified RaptorX on-chip electromagnetic solution for analyzing advanced high-speed products developed using Samsung's 8nm LN08LPP Low Power Plus silicon process. Non-GAAP earnings per share (EPS) are anticipated to be in the range of $8.34-$8.75 compared with the previous guidance of $8.39-$8.88. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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5f348452-47d1-4e8f-a8d0-1ecb953fe350
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714776.0
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2023-12-06 00:00:00 UTC
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Hain Celestial (HAIN) Gains From Growth Strategies Amid Risks
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DCOMP
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https://www.nasdaq.com/articles/hain-celestial-hain-gains-from-growth-strategies-amid-risks
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nan
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nan
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The Hain Celestial Group, Inc. HAIN is well poised to benefit from its focus on global strategic goals and continues to make marketing investments in key brands. Recently, the company revealed its Reimagined strategy to boost sustainable growth in the long term. It looks forward to materially simplifying its footprint with a direct presence across five major markets, comprising the United States, Canada, the U.K., Ireland and Europe.
HAIN has been experiencing solid momentum in its International Segment of late. For instance, in the first quarter of fiscal 2024, the segment’s net sales increased 9.3% to $165 million. This growth was driven by strength in its meal preparation and beverages businesses. Solid demand for several categories, including soup, grocery, non-dairy beverages and baby & kids, has been boosting the segment’s performance.
Hain Celestial plans to elevate its approach toward brand building and expand its reach across under-penetrated, margin-accretive channels like omnichannel e-commerce. It also remains focused on simplifying its portfolio, identifying additional areas of productivity savings, enhancing margins, reviving top-line growth and improving cash flow.
For fiscal 2024, HAIN projects balanced growth across the portfolio, along with the North America and International segments registering low-single digit organic net sales growth. It anticipates overall adjusted net sales to increase by 2-4% year over year. It expects adjusted EBITDA in the $155-$165 million range during the same time frame.
Image Source: Zacks Investment Research
The company carries a Zacks Rank #3 (Hold) at present. Its shares have risen 10.9% in the past three months against the industry’s 2.2% decline.
Despite the positives, the company has been witnessing weakness across its North America segment. In the fiscal first quarter, net sales from the North America segment declined 9.8% to $260.1 million. The decline was attributable to lower sales in the baby & kids business due to industry-wide supply constraints in its organic baby formula business. Softness in personal care owing to the timing shift of a sun care program also hurt its results.
Higher operating costs and expenses have also been a major concern for the company. Its selling, general and administrative expenses grew 2.9% year over year in the fiscal first quarter. The increase was primarily driven by growth in the wage rate and inflation in other support costs. The company’s adjusted EBITDA margin decreased by 250 basis points to 5.7% in the quarter.
Stocks to Consider
Some better-ranked stocks from the same industry are Celsius CELH, The Kraft Heinz Company KHC and Vital Farms Inc. VITL, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Celsius specializes in commercializing nutritional foods, beverages and dietary supplements. CELH has a trailing four-quarter earnings surprise of 110.9% on average. The Zacks Consensus Estimate for Celsius’s current financial-year sales and earnings implies growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
Kraft Heinz is a food and beverage product company. 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 indicates growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Vital Farms offers a range of pasture-raised foods. VITL has a trailing four-quarter earnings surprise of 145% on average. The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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 Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It looks forward to materially simplifying its footprint with a direct presence across five major markets, comprising the United States, Canada, the U.K., Ireland and Europe. Hain Celestial plans to elevate its approach toward brand building and expand its reach across under-penetrated, margin-accretive channels like omnichannel e-commerce. It also remains focused on simplifying its portfolio, identifying additional areas of productivity savings, enhancing margins, reviving top-line growth and improving cash flow.
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Stocks to Consider Some better-ranked stocks from the same industry are Celsius CELH, The Kraft Heinz Company KHC and Vital Farms Inc. VITL, each carrying a Zacks Rank #2 (Buy) at present. The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure. Click to get this free report The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For fiscal 2024, HAIN projects balanced growth across the portfolio, along with the North America and International segments registering low-single digit organic net sales growth. Stocks to Consider Some better-ranked stocks from the same industry are Celsius CELH, The Kraft Heinz Company KHC and Vital Farms Inc. VITL, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the fiscal first quarter, net sales from the North America segment declined 9.8% to $260.1 million. Stocks to Consider Some better-ranked stocks from the same industry are Celsius CELH, The Kraft Heinz Company KHC and Vital Farms Inc. VITL, each carrying a Zacks Rank #2 (Buy) at present. Kraft Heinz is a food and beverage product company.
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baa445e6-cc0a-4c34-bf1d-906dd2ffe15a
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714777.0
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2023-12-06 00:00:00 UTC
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Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%
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https://www.nasdaq.com/articles/semiconductors-lead-decades-top-gainers%3A-3-etfs-up-at-least-550
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In the past decade, we have seen “the king of all bull markets” in Wall Street. The run was the longest ever. Though Wall Street’s record bull run ended on Mar 12, 2020 on COVID-induced selloffs, markets again shrugged off all worries and are hovering around all-time high levels.
The ebbing pandemic, a less-hawkish Fed in 2023, the artificial intelligence (AI) boom, earnings recovery and resilient American consumers have been propelling the Wall Street. Earnings growth for the S&P 500 index, which was negative for each of the preceding three quarters, turned positive in the third quarter of 2023.
Notably, SPDR S&P 500 ETF SPY gained about 205% during the past 10 years, SPDR Dow Jones Industrial Average ETF DIA advanced 182.6% and the tech-heavy Invesco QQQ Trust QQQ added 393% (as of Dec 6, 2023).
Against this backdrop, we would like to note that semiconductor ETFs emerged as the best ETFs of the past decade. VanEck Semiconductor ETF SMH added about 677%. Invesco Semiconductors ETF PSI jumped 616% and SPDR S&P Semiconductor ETF XSD soared 585% in the past decade.
Inside the Recent Surge in Semiconductor ETFs
There are now signs of the Federal Reserve's aggressive interest rate hiking campaign nearing an end. And the demand for artificial intelligence (AI) applications is extremely high. As a result, several chip ETFs have been hovering around a lofty level. A significant portion of the S&P 500's 2023 gains can be attributed to the strong performance of a group of large-cap stocks, referred to as the "Magnificent Seven." And chip giant Nvidia NVDA is a part of "Magnificent Seven."
Semiconductors have been the most important drivers of the overall growth in technology, given the use of chips in day-to-day life, from cars, electronic gadgets to planes and weapons. The demand will continue to trend higher given the increased digitization in various corners like healthcare, transport, financial systems, defense, agriculture and retail, among others.
The rapid adoption of cutting-edge technology like cloud, Internet of Things, gaming, wearables, VR headsets, drones, virtual reality devices, artificial intelligence, cryptocurrencies, 5G and other advanced information technologies, as well as the solar power industry, should continue to fuel growth.
The CHIPS-Plus bill, dubbed the Chips and Science Act, in the United States is another plus. The bill would provide $54 billion in grants for semiconductor manufacturing and research, tens of billions to support regional technology hubs and a tax credit covering 25% of investments in semiconductor manufacturing through 2026. As such, it will encourage investment in chip manufacturing and spur the innovation and development of other U.S. technologies.
Maybe PC sales are not up to the mark and there is saturation in smartphone demand in the developed market, but that is not likely to hold back the demand for semiconductors. The smartphone market is expected to grow again in the coming days after some downbeat years. Greater rollout and availability of 5G models and the promotion of 5G service packages globally should boost smartphone demand. Further, the semiconductor space has also been witnessing mergers and acquisitions, providing a boost to stock prices.
In any case, semiconductor is the value-centric traditional tech area, which is likely to have an upper hand in an edgy investing backdrop. Excessively higher demand from the automotive sector is also acting as a tailwind for the semiconductor space. However, semiconductors for mobile devices have their own set of challenges. They have to be priced lower. Global growth worries are negatives for the space.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
Invesco Semiconductors ETF (PSI): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
SPDR S&P Semiconductor ETF (XSD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though Wall Street’s record bull run ended on Mar 12, 2020 on COVID-induced selloffs, markets again shrugged off all worries and are hovering around all-time high levels. The ebbing pandemic, a less-hawkish Fed in 2023, the artificial intelligence (AI) boom, earnings recovery and resilient American consumers have been propelling the Wall Street. Inside the Recent Surge in Semiconductor ETFs There are now signs of the Federal Reserve's aggressive interest rate hiking campaign nearing an end.
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Notably, SPDR S&P 500 ETF SPY gained about 205% during the past 10 years, SPDR Dow Jones Industrial Average ETF DIA advanced 182.6% and the tech-heavy Invesco QQQ Trust QQQ added 393% (as of Dec 6, 2023). Invesco Semiconductors ETF PSI jumped 616% and SPDR S&P Semiconductor ETF XSD soared 585% in the past decade. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Invesco Semiconductors ETF (PSI): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR S&P Semiconductor ETF (XSD): ETF Research Reports To read this article on Zacks.com click here.
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Notably, SPDR S&P 500 ETF SPY gained about 205% during the past 10 years, SPDR Dow Jones Industrial Average ETF DIA advanced 182.6% and the tech-heavy Invesco QQQ Trust QQQ added 393% (as of Dec 6, 2023). Invesco Semiconductors ETF PSI jumped 616% and SPDR S&P Semiconductor ETF XSD soared 585% in the past decade. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Invesco Semiconductors ETF (PSI): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR S&P Semiconductor ETF (XSD): ETF Research Reports To read this article on Zacks.com click here.
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Though Wall Street’s record bull run ended on Mar 12, 2020 on COVID-induced selloffs, markets again shrugged off all worries and are hovering around all-time high levels. Excessively higher demand from the automotive sector is also acting as a tailwind for the semiconductor space. Global growth worries are negatives for the space.
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32e24e49-adc3-4b19-8b98-96364d2563de
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714778.0
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2023-12-06 00:00:00 UTC
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3 Energy Companies Supported by Excellent Balance Sheets
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https://www.nasdaq.com/articles/3-energy-companies-supported-by-excellent-balance-sheets
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In the business world, a stable balance sheet and ample cash reserves are indispensable, especially in the cyclical Oil/Energy sector. A solid financial foundation not only enhances a company's valuation but also serves as a safeguard during industry downturns.
Excessive debt can erode financial flexibility, making low debt levels crucial in times of plummeting oil prices. Major players may need to borrow during lean years, while smaller entities require cash for survival. Conversely, in periods of soaring oil and gas prices, a robust balance sheet provides a financial stronghold.
The unpredictable nature of the sector underscores the strategic imperative of maintaining a healthy balance sheet. This key factor can determine a company's ability to thrive during periods of plenty and weather the storms of a volatile industry.
Below, we discuss three energy companies with a light debt load, healthy balance sheet, and the willingness to distribute cash to their shareholders. Each of these three companies — Chevron CVX, ExxonMobil XOM and Coterra Energy CTRA — currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron: Chevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. The only energy component of the Dow Jones Industrial Average, San Ramon, CA-based Chevron is fully integrated, meaning it participates in every aspect related to energy — from oil production to refining and marketing.
The company boasts a clean balance sheet, manifested by its fairly low debt-to-equity ratio. As of Sep 30, CVX had $5.9 billion in cash and cash equivalents and a total debt of $20.6 billion with a debt-to-total capitalization of a modest 11%, well below the Zacks Oil and Gas Integrated International industry average of 23.5%. This is why the supermajor carries a high investment grade rating of AA from S&P, which translates into low borrowing rates.
Chevron is using its balance sheet strength to pay a safe quarterly dividend of $1.51 per share (or $6.04 per share annualized) and run an outsized stock repurchase program of up to $75 billion.
ExxonMobil: Another bellwether in the energy space, ExxonMobil also has a strong balance sheet. XOM’s optimal integrated capital structure that has historically produced industry-leading returns and an impressive track of capex discipline across the commodity price cycle makes it a relatively lower-risk play in a volatile sector.
ExxonMobil is in excellent financial health. It has an AA credit rating, and used its strong balance sheet to invest throughout the pandemic-driven energy market downturn. With $33 billion, the company is awash in cash. Moreover, XOM finished the third quarter of 2023 with a total debt of $41.3 billion and a debt-to-total capitalization of just 15%.
The company’s fortress-like balance sheet has allowed it to reward shareholders handsomely. ExxonMobil pays a quarterly dividend of 95 cents per share and is on track to buy back up to $17.5 billion during the year.
Coterra Energy: It is an explorer and producer of oil, natural gas and natural gas liquid. Headquartered in Houston, TX, the firm is focused on the Permian Basin, Marcellus Shale and Anadarko Basin.
CTRA has one of the strongest balance sheets as far as shale producers are concerned, which should help it tide over tough times. The company ended the third quarter with cash and cash equivalents of $856 million and total debt of $2.2 billion, with a very manageable debt-to-capitalization of 14.5%, which is also below the Zacks Oil and Gas Exploration and Production US industry average of 26.1%.
Given its healthy balance sheet, CTRA paid out a base dividend of 20 cents per share. This yields above 3% — well above the S&P 500 and one of the highest in the upstream energy space. Coterra also has an active share repurchase program, with $1.6 billion existing under authorization.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Coterra Energy Inc. (CTRA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 key factor can determine a company's ability to thrive during periods of plenty and weather the storms of a volatile industry. Below, we discuss three energy companies with a light debt load, healthy balance sheet, and the willingness to distribute cash to their shareholders. XOM’s optimal integrated capital structure that has historically produced industry-leading returns and an impressive track of capex discipline across the commodity price cycle makes it a relatively lower-risk play in a volatile sector.
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Each of these three companies — Chevron CVX, ExxonMobil XOM and Coterra Energy CTRA — currently carries a Zacks Rank #3 (Hold). As of Sep 30, CVX had $5.9 billion in cash and cash equivalents and a total debt of $20.6 billion with a debt-to-total capitalization of a modest 11%, well below the Zacks Oil and Gas Integrated International industry average of 23.5%. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Coterra Energy Inc. (CTRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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As of Sep 30, CVX had $5.9 billion in cash and cash equivalents and a total debt of $20.6 billion with a debt-to-total capitalization of a modest 11%, well below the Zacks Oil and Gas Integrated International industry average of 23.5%. The company ended the third quarter with cash and cash equivalents of $856 million and total debt of $2.2 billion, with a very manageable debt-to-capitalization of 14.5%, which is also below the Zacks Oil and Gas Exploration and Production US industry average of 26.1%. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Coterra Energy Inc. (CTRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has an AA credit rating, and used its strong balance sheet to invest throughout the pandemic-driven energy market downturn. Moreover, XOM finished the third quarter of 2023 with a total debt of $41.3 billion and a debt-to-total capitalization of just 15%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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16647a71-aa55-4691-9045-f2c7279eb994
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714779.0
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2023-12-06 00:00:00 UTC
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Pre-market Movers: DUNE, IPA, S, PHIO, ACRS…
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https://www.nasdaq.com/articles/pre-market-movers%3A-dune-ipa-s-phio-acrs...
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(RTTNews) - The following are some of the stocks making big moves in Wednesday's pre-market trading (as of 04.53 A.M. ET).
In the Green
Dune Acquisition Corporation (DUNE) is up over 28% at $6.30. SentinelOne, Inc. (S) is up over 17% at $23.52. Phio Pharmaceuticals Corp. (PHIO) is up over 16% at $1.31. Aclaris Therapeutics, Inc. (ACRS) is up over 16% at $1.15. Altimmune, Inc. (ALT) is up over 9% at $5.67. Tupperware Brands Corporation (TUP) is up over 8% at $2.02. Captivision Inc. (CAPT) is up over 5% at $3.98.
In the Red
ImmunoPrecise Antibodies Ltd. (IPA) is down over 28% at $1.10. Yext, Inc. (YEXT) is down over 15% at $5.92. Asana, Inc. (ASAN) is down over 12% at $20.35. NexImmune, Inc. (NEXI) is down over 9% at $3.14. British American Tobacco p.l.c. (BTI) is down over 8% at $28.93. Fluence Energy, Inc. (FLNC) is down over 8% at $23.60. ZyVersa Therapeutics, Inc. (ZVSA) is down over 5% at $2.06.
The views and 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) - The following are some of the stocks making big moves in Wednesday's pre-market trading (as of 04.53 A.M. Tupperware Brands Corporation (TUP) is up over 8% at $2.02. In the Red ImmunoPrecise Antibodies Ltd. (IPA) is down over 28% at $1.10.
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In the Green Dune Acquisition Corporation (DUNE) is up over 28% at $6.30. Phio Pharmaceuticals Corp. (PHIO) is up over 16% at $1.31. Yext, Inc. (YEXT) is down over 15% at $5.92.
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In the Green Dune Acquisition Corporation (DUNE) is up over 28% at $6.30. Yext, Inc. (YEXT) is down over 15% at $5.92. The views and 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) - The following are some of the stocks making big moves in Wednesday's pre-market trading (as of 04.53 A.M. In the Green Dune Acquisition Corporation (DUNE) is up over 28% at $6.30. SentinelOne, Inc. (S) is up over 17% at $23.52.
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acaa94d1-7838-4d17-96c8-ff400c47249d
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714780.0
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2023-12-06 00:00:00 UTC
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Kraft Heinz (KHC) Looks Attractive on Pricing & Transformation
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https://www.nasdaq.com/articles/kraft-heinz-khc-looks-attractive-on-pricing-transformation
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The Kraft Heinz Company KHC appears well positioned, courtesy of effective pricing strategies. The consumer products company is on track to transform its business to unleash its full potential. The company is focused on strategic growth pillars, which is yielding. These factors boosted KHC’s third-quarter 2023 results, with the top and the bottom line increasing year over year.
The Zacks Rank #2 (Buy) company’s shares have increased 9.6% in the past three months against the industry’s 2.2% decline.
Let’s delve deeper.
Effective Pricing Drives Growth
Kraft Heinz is undertaking strategic pricing initiatives to improve its performance. In fact, robust pricing strategies have been shielding margin performance amid inflation. In the third quarter of 2023, the company’s organic net sales increased 1.7% on favorable pricing to the tune of 7.1 percentage points — stemming from higher list prices to counter escalated input costs. Adjusted gross margin expanded 396 basis points (bps) to 34%, driven by pricing actions undertaken to offset inflation, solid gross supply chain efficiencies and a favorable mix in North America. Management expects an adjusted gross margin expansion of 200-250 bps, driven by pricing and efficiencies in 2023.
Transformation Efforts Solid
Kraft Heinz is committed to accelerating its profit and enhancing the long-term shareholders’ value. As part of its transformation phase, management unveiled AGILE@SCALE in February 2022. The strategy helps Kraft Heinz to improve its agile expertise and capabilities via partnerships with technology giants and cutting-edge innovators.
Management is on track to build its innovation pipeline aided by the Agile Innovation Engine. Strength in Kraft Heinz’s AGILE@SCALE and strategic partnerships are generating solutions throughout the value chain to drive growth and efficiency. As part of the AGILE@SCALE strategy, management is building digital-first solutions to fuel gross efficiencies.
Growth Pillars on Track
Kraft Heinz has been benefiting from strength in its three key pillars — Foodservice, Emerging Markets and U.S. Retail Grow platforms. In the Foodservice business, management prioritizes higher margin spaces and undertakes customer-friendly innovations to drive growth. Kraft Heinz’s data-driven and repeatable go-to-market model has been yielding across Emerging Markets. Strength in the company’s Heinz brand bodes well in such markets.
The Road Ahead Looks Promising
Kraft Heinz is focused on enhancing productivity throughout its value chain and channeling operational efficiencies into crucial areas. These investments are pivotal to KHC’s strategic framework. Strength in the company’s transformations coupled with gains from sales growth in the company’s three key pillars bodes well.
Management expects adjusted EBITDA to increase 5-7% at constant currency. The adjusted earnings per share (EPS) for 2023 are projected in the range of $2.91-$2.99, reflecting growth from the year-ago quarter’s level.
Some Other Top-Ranked Stocks
MGP Ingredients, Inc. MGPI produces and markets ingredients and distillery products to the packaged goods industry. The company currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MGP Ingredients’ current financial year sales and EPS suggests growth of 6% and 14.2%, respectively, from the year-ago reported figures. MGPI has a trailing four-quarter earnings surprise of 16.2% on average.
Celsius Holdings CELH, which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2. CELH delivered an earnings surprise of 81.6% in the third quarter of 2023.
The Zacks Consensus Estimate for Celsius Holdings’ current financial year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
Vital Farms Inc. VITL offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2. VITL has a trailing four-quarter earnings surprise of 145% on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Kraft Heinz Company (KHC) : Free Stock Analysis Report
MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Road Ahead Looks Promising Kraft Heinz is focused on enhancing productivity throughout its value chain and channeling operational efficiencies into crucial areas. The Zacks Consensus Estimate for MGP Ingredients’ current financial year sales and EPS suggests growth of 6% and 14.2%, respectively, from the year-ago reported figures. 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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The Zacks Consensus Estimate for MGP Ingredients’ current financial year sales and EPS suggests growth of 6% and 14.2%, respectively, from the year-ago reported figures. The Zacks Consensus Estimate for Celsius Holdings’ current financial year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for MGP Ingredients’ current financial year sales and EPS suggests growth of 6% and 14.2%, respectively, from the year-ago reported figures. The Zacks Consensus Estimate for Celsius Holdings’ current financial year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Strength in Kraft Heinz’s AGILE@SCALE and strategic partnerships are generating solutions throughout the value chain to drive growth and efficiency. The company currently has a Zacks Rank #2. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2023-12-06 00:00:00 UTC
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The Progressive and Floor & Decor have been highlighted as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/the-progressive-and-floor-decor-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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For Immediate Release
Chicago, IL – December 6, 2023 – Zacks Equity Research shares The Progressive Corp PGR as the Bull of the Day and Floor & Decor Holdings FND as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford Motor Company F, Volvo VLVLY and BYD Company Ltd. BYDDY.
Here is a synopsis of all five stocks.
Bull of the Day:
The Progressive Corp, a current Zacks Rank #1 (Strong Buy), is a massive American insurance company. Analysts have taken their expectations higher across the board, particularly following its latest quarterly release back in mid-October.
In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 13% of all Zacks industries. Let’s take a deeper look at the company.
The Progressive Corp.
Progressive snapped a streak of negative surprises in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 20% and posting a modest 0.3% revenue surprise.
Drilling a bit deeper, Progressive saw total Policies in Force grow 10% from the year-ago period, reflecting continued business momentum. PGR shares enjoyed buying pressure following the print, now heading toward all-time highs.
It’s worth noting that Progressive shares have been monster performers in general over the last decade, delivering a remarkable 23% annualized return vs. the S&P 500’s 12.3%.
In addition, the stock could be a target among growth-focused investors, as reflected by its Style Score of “A” for Growth. Consensus estimates for its current fiscal year (FY23) suggest 34% earnings growth paired with an 18% sales climb, with expectations for FY24 suggesting earnings and revenue growth rates of 49% and 13%, respectively.
The company’s revenue growth has remained steady.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
The Progressive Corp. would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Floor & Decor Holdings is a multi-channel specialty retailer of hard surface flooring and related accessories. The stock is currently a Zacks Rank #5 (Strong Sell), with analysts taking their earnings expectations lower across the board.
In addition, the company resides in the Zacks Building Products – Wood industry, which is currently ranked in the bottom 27% of all Zacks industries. Let’s take a closer look at its current standing.
Floor & Decor
Floor & Decor has faced a challenging environment amid broader economic challenges (housing affordability, slower sales of large-ticket discretionary purchases), with earnings forecasted to pull back roughly 20% in its current year on 2.5% higher revenues.
Earnings growth resumes modestly in FY24, with consensus expectations alluding to 0.6% growth paired with an 8% sales bump.
Shares are a bit expensive given the forecasted growth, with the current 44.5X forward earnings multiple (F1) undoubtedly on the higher end of the spectrum and above the 38.9X five-year median.
The current value is also well above the respective Zacks industry average of 28.2X. The stock carries a Style Score of “D” for Value.
Shares saw bullish activity post-earnings following its latest earnings release, helping spark a rally. Concerning headline figures, FND posted an 11% beat relative to the Zacks Consensus EPS Estimate and reported revenue modestly below expectations.
As shown below, the recent rally post-earnings has pushed shares above the 200-day daily moving average, a level that’s consistently seen action in previous instances. It looks worthwhile for investors to see if shares can hold and continue trading above this level, helping to further establish a meaningful positive trend.
Bottom Line
Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.
Floor & Decor Holdings is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Ford Invests in Indonesian Plant to Secure Nickel for EVs
Ford Motor Company is investing in a battery-nickel plant in Indonesia to strengthen its supply chain. It is collaborating with PT Vale Indonesia and Zhejiang Huayou Cobalt Co. in a project to produce 120,000 tons of nickel chemicals per year for electric vehicle (“EV”) batteries, per Bloomberg.
The nickel plant called Pomalaa, which is currently under construction, is likely to commence commercial production in 2026. Although the share of investment of each company in the project is unknown, the total investment is estimated to be around $4.5 billion.
In light of the rising demand for EVs, automakers are striving to secure raw materials like lithium, cobalt and nickel for EV batteries. Ford’s arch-rivals have also shown interest in similar investments. In January, General Motors invested $650 million in a lithium mine in the United States. Also, Tesla is planning on buying a lithium producer.
Amid growing refinery investment in Indonesia, the country has become a significant producer of battery-compatible nickel.
Per Lisa Drake, vice president of Ford's EV Programs and Energy Supply Chain, the direct investment in plants allows Ford to source nickel in cost-efficient ways. It also allows the automaker to keep the amount of nickel mined in line with the company’s sustainability target.
Ford aims to produce more than 2 million EVs by 2026-end. By 2030, it expects EVs to account for 50% of its global sales, which will cement its position in the red-hot EV landscape.
Zacks Rank & Key Picks
F currently carries Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo and BYD Company Ltd., each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 2 cents each in the past 30 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimates for 2023 and 2024 have increased by 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased by 62 cents and 57 cents, respectively, in the past 60 days.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Ford Motor Company (F) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
AB Volvo (VLVLY) : Free Stock Analysis Report
Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bottom Line Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge. Shares are a bit expensive given the forecasted growth, with the current 44.5X forward earnings multiple (F1) undoubtedly on the higher end of the spectrum and above the 38.9X five-year median. It is collaborating with PT Vale Indonesia and Zhejiang Huayou Cobalt Co. in a project to produce 120,000 tons of nickel chemicals per year for electric vehicle (“EV”) batteries, per Bloomberg.
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In addition, Zacks Equity Research provides analysis on Ford Motor Company F, Volvo VLVLY and BYD Company Ltd. BYDDY. For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 13% of all Zacks industries. For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Progressive Corp. would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). The current value is also well above the respective Zacks industry average of 28.2X. Additional content: Ford Invests in Indonesian Plant to Secure Nickel for EVs Ford Motor Company is investing in a battery-nickel plant in Indonesia to strengthen its supply chain.
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2023-12-06 00:00:00 UTC
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Barclays (BCS) Dips as Qatar's Wealth Fund Sells Half Its Stake
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https://www.nasdaq.com/articles/barclays-bcs-dips-as-qatars-wealth-fund-sells-half-its-stake
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Shares of Barclays PLC BCS have lost 4.9% on the NYSE since Qatar’s wealth fund sold almost half of its stake in the British bank. According to the terms of the offering seen by Bloomberg, Qatar Holding LLC, owned by Qatar Investment Authority (“QIA”) sold 361.7 million shares in Barclays, raising £510 million.
Notably, Qatar became the largest shareholder of Barclays during the 2008 financial crisis when it injected £4 billion into the British bank to help it prevent a state bailout.
While Qatar’s above-mentioned intervention helped BCS avoid a government bailout, the emergency fund-raising has been a legal headache ever since.
In 2022, the Financial Conduct Authority announced its plans of fining Barclays £50 million for failing to disclose an agreement to pay advisory fees to Qatari investment vehicles during the fund-raising efforts.
While the Middle Eastern state remains a significant shareholder of Barclays, its decision to slash support for the bank comes as a surprise, adding pressure on CEO C.S. Venkatakrishnan, months before he discloses a new strategy for the bank.
Notably, Venkatakrishnan is overhauling Barclays in an effort to boost the company’s performance.
Last month, it was reported that BCS plans to lay off up to 2,000 staff across its legal, compliance and human resource divisions to reduce expenses by $1.25 billion (around 7% of total operating costs incurred in 2022).
Also, its investment bank is planning to axe thousands of unprofitable clients, including sovereign wealth funds, governments and large institutional investors.
Moreover, in sync with its strategy to improve market share in the U.K., Barclays also seems interested in acquiring Edinburgh-based Tesco Bank.
According to a report by Reuters, citing people familiar with the matter, BCS seems to have already made a bid for Tesco Bank, formed in 1997 through a 50-50 joint venture between Royal Bank of Scotland (now known as NatWest Group plc) and Britain’s large food retailer Tesco Plc. In 2008, Tesco Plc took full ownership of the venture.
Barclays is primarily interested in Tesco Bank’s credit card and savings account products. The deal offers an opportunity to cross-sell products to Tesco Plc’s huge retail customer base.
The above-mentioned efforts taken by Venkatakrishnan are expected to boost Barclays’ share price, which has fallen 9.7% on the NYSE year to date against the industry’s 13.4% growth.
Image Source: Zacks Investment Research
Currently, BCS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In order to remain profitable amid the high interest rate environment and navigate their way through the current tough economic backdrop, finance firms across the globe have been undertaking several restructuring efforts, majorly job cuts.
Last month, Citigroup Inc. C commenced the elimination of various job positions as part of its major organizational overhaul process. The job cuts involved approximately 10% of Citigroup’s senior manager roles aggregating to around 300 managers.
According to C’s press release, “Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organizational structure with our new, simplified operating model. As we’ve acknowledged, the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy and ensure we consistently deliver excellence to our clients”.
In an effort to streamline business operations, Ally Financial Inc. ALLY started trimming its workforce, a move that is expected to impact less than 5% of ALLY’s overall headcount.
Spokesperson Peter Gilchrist said in an emailed statement that the workforce reduction would occur across divisions and is not restricted to a single line of business.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Citigroup Inc. (C) : Free Stock Analysis Report
Barclays PLC (BCS) : Free Stock Analysis Report
Ally Financial Inc. (ALLY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 2022, the Financial Conduct Authority announced its plans of fining Barclays £50 million for failing to disclose an agreement to pay advisory fees to Qatari investment vehicles during the fund-raising efforts. In order to remain profitable amid the high interest rate environment and navigate their way through the current tough economic backdrop, finance firms across the globe have been undertaking several restructuring efforts, majorly job cuts. As we’ve acknowledged, the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy and ensure we consistently deliver excellence to our clients”.
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According to the terms of the offering seen by Bloomberg, Qatar Holding LLC, owned by Qatar Investment Authority (“QIA”) sold 361.7 million shares in Barclays, raising £510 million. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Barclays PLC (BCS) : Free Stock Analysis Report Ally Financial Inc. (ALLY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Barclays PLC BCS have lost 4.9% on the NYSE since Qatar’s wealth fund sold almost half of its stake in the British bank. According to a report by Reuters, citing people familiar with the matter, BCS seems to have already made a bid for Tesco Bank, formed in 1997 through a 50-50 joint venture between Royal Bank of Scotland (now known as NatWest Group plc) and Britain’s large food retailer Tesco Plc. Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Barclays PLC (BCS) : Free Stock Analysis Report Ally Financial Inc. (ALLY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Barclays PLC BCS have lost 4.9% on the NYSE since Qatar’s wealth fund sold almost half of its stake in the British bank. Notably, Qatar became the largest shareholder of Barclays during the 2008 financial crisis when it injected £4 billion into the British bank to help it prevent a state bailout. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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40d4cdb3-2c2d-450d-b701-50b492785b4c
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714783.0
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2023-12-06 00:00:00 UTC
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3 Gold Mining Stocks to Buy as Interest Rates Look to Subside
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https://www.nasdaq.com/articles/3-gold-mining-stocks-to-buy-as-interest-rates-look-to-subside
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Gold has made a solid comeback on Wall Street recently. Through the third quarter, 157 metric tons of gold worth $10 billion was scooped up by market participants, 56% more than the year-ago quarter.
In recent weeks, coinciding with the fall of treasury yields from their October peaks, the price of gold has been hitting all-time highs. On Monday, Dec 4, spot gold briefly hit $2,135.39/ounce, an all-time high, before settling back down to $2027 midday. The day before, gold futures had hit an intra-day high of $2152.30 before sliding 2% to close the session.
Geopolitical turmoils historically have had a positive effect on the gold sector. As the war rages between Israel and Hamas, and other parties such as Hezbollah in Lebanon and Houthi rebels in Yemen become more involved in the conflict, the possibility of the war lingering on increases. Also, it is worth remembering that the Russia-Ukraine conflict has never de-escalated, even as the focus has shifted to the Middle East. Investors usually add gold to their portfolios during times of geopolitical turmoil, especially military conflicts.
However, the biggest impact behind the rise of gold has been falling dollar prices and market participants expecting lower interest rates from the Fed. Currently, investors believe that the central bank has already come to the end of its rate-hike cycle and will be lowering rates as early as the first quarter of 2024. This would entail a rise in stock prices and a fall in bond yields. In a volatile market, when bond yields fall, gold prices pick up as people rush to the safe haven of the precious yellow metal. So, it would be prudent to buy gold mining stocks at this juncture, in what seems to be the early stages of a bull market for the metal.
Our Choices
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comstock Inc. LODE is a decarbonization and mining company that mines, among various other metals, gold.
Comstock’s expected earnings growth rate for the current year is 93.5%. The Zacks Consensus Estimate for its current-year earnings has improved 78.6% over the past 60 days. Comstock currently sports a Zacks Rank #1.
Alamos Gold Inc. AGI is a company engaged in the exploration, development and extraction of precious metals in Canada and Mexico, primarily focused on gold and silver.
Alamos’ expected earnings growth rate for the current year is 89.3%. The Zacks Consensus Estimate for its current-year earnings has improved 23.3% over the past 60 days. Alamos currently carries a Zacks Rank #2.
Galiano Gold Inc. GAU is an explorer, developer and producer of gold properties.
Galiano’s expected earnings growth rate for the current year is 500%. The Zacks Consensus Estimate for its current-year earnings has improved 12.5% over the past 60 days. Galiano currently has a Zacks Rank #2.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Comstock Inc. (LODE) : Free Stock Analysis Report
Galiano Gold Inc. (GAU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 recent weeks, coinciding with the fall of treasury yields from their October peaks, the price of gold has been hitting all-time highs. However, the biggest impact behind the rise of gold has been falling dollar prices and market participants expecting lower interest rates from the Fed. In a volatile market, when bond yields fall, gold prices pick up as people rush to the safe haven of the precious yellow metal.
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However, the biggest impact behind the rise of gold has been falling dollar prices and market participants expecting lower interest rates from the Fed. Alamos’ expected earnings growth rate for the current year is 89.3%. Click to get this free report Alamos Gold Inc. (AGI) : Free Stock Analysis Report Comstock Inc. (LODE) : Free Stock Analysis Report Galiano Gold Inc. (GAU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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However, the biggest impact behind the rise of gold has been falling dollar prices and market participants expecting lower interest rates from the Fed. Alamos Gold Inc. AGI is a company engaged in the exploration, development and extraction of precious metals in Canada and Mexico, primarily focused on gold and silver. Click to get this free report Alamos Gold Inc. (AGI) : Free Stock Analysis Report Comstock Inc. (LODE) : Free Stock Analysis Report Galiano Gold Inc. (GAU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In recent weeks, coinciding with the fall of treasury yields from their October peaks, the price of gold has been hitting all-time highs. However, the biggest impact behind the rise of gold has been falling dollar prices and market participants expecting lower interest rates from the Fed. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714784.0
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2023-12-06 00:00:00 UTC
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Tech Set to Roar in 2024 After an Astounding 2023: 5 Top Picks
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https://www.nasdaq.com/articles/tech-set-to-roar-in-2024-after-an-astounding-2023%3A-5-top-picks
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Buoyed by steadily deceasing inflation and a simultaneous reduction in the magnitude and number of interest rate hike by the Fed, the technology sector has witnessed an astonishing rally in 2023. The impressive northbound journey of Wall Street this year after a highly disappointing 2022, has been predominantly driven by tech rally.
Year to date, out of the 11 broad sectors of the market’s benchmark — the S&P 500 Index — the technology Select Sector SPDR (XLK) is the clear winner surging 48.2%. The Communication Select Sector SPDR (XLC) — a close resemblance to the XLK — has also advanced 43.6% in the same period.
Investors' growing belief that the Federal Reserve will halt rate hikes amid cooling inflation is turning attention to potential rate cuts in the upcoming year. According to CME’s FedWatch tool, traders are currently associating nearly 100% probability that the central bank will keep the benchmark lending rate unchanged at the range of 5.25-5.5% in the December FOMC meeting. Moreover, 62% respondents are expecting the first rate cut to be initiated in March 2024 FOMC meeting.
A low market rate of interest always boosts growth stocks like technology. At this stage, it will be prudent to invest in large-cap technology stocks with a favorable Zacks Rank.
Our Top Picks
We have narrowed our search to five technology behemoth (market capital > $50 billion) that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
NVIDIA Corp. NVDA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. Collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space.
NVIDIA has an expected revenue and earnings growth rate of 51.7% and 52.6%, respectively, for next year (ending January 2025). The Zacks Consensus Estimate for next-year earnings has improved 3.8% over the last 30 days.
Intel Corp. INTC designs, develops, manufactures, markets, and sells computing and related products worldwide. INTC operates through the Client Computing Group, Data Center and AI, Network and Edge, Mobileye, Accelerated Computing Systems and Graphics, Intel Foundry Services, and Other segments.
INTC mainly offers platform products, such as central processing units and chipsets, system-on-chip and multichip packages, accelerators, boards and systems, connectivity products, and memory and storage products.
Intel has an expected revenue and earnings growth rate of 13.7% and 98.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.6% over the last 30 days.
Broadcom Inc. AVGO has been benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises. AVGO expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022.
Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids AVGO’s prospects. An expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. AVGO expects networking revenues to grow nearly 20% year over year in the fiscal third quarter.
Broadcom has an expected revenue and earnings growth rate of 7.2% and 8.6%, respectively, for next year (ending October 2025). The Zacks Consensus Estimate for next-year earnings has improved 0.2% over the last 30 days.
ServiceNow Inc. NOW has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. NOW’s expanding global presence, solid partner base and strategic buyouts are positives. New solutions — Automated Service Suggestions, Service Request Playbook and Workplace Scenario Planning — are helping NOW win new customers. An expanding portfolio with new generative AI solutions is expected to drive top-line growth for NOW.
ServiceNow has an expected revenue and earnings growth rate of 20.7% and 22.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.3% over the last 30 days.
Synopsys Inc. SNPS is benefiting from strong design wins owing to a robust product portfolio. Growth in the hybrid working trend is driving demand for bandwidth. Strong traction for SNPS’ Fusion Compiler product boosted the top line. Growing demand for advanced technology, design, IP and security solutions is also creating solid prospects for SNPS.
Synopsys has an expected revenue and earnings growth rate of 13% and 14%, respectively, for the current year (ending October 2024). The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last seven days.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Intel Corporation (INTC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buoyed by steadily deceasing inflation and a simultaneous reduction in the magnitude and number of interest rate hike by the Fed, the technology sector has witnessed an astonishing rally in 2023. According to CME’s FedWatch tool, traders are currently associating nearly 100% probability that the central bank will keep the benchmark lending rate unchanged at the range of 5.25-5.5% in the December FOMC meeting. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
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Image Source: Zacks Investment Research NVIDIA Corp. NVDA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. Broadcom Inc. AVGO has been benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research NVIDIA Corp. NVDA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. Intel has an expected revenue and earnings growth rate of 13.7% and 98.5%, respectively, for next year. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Broadcom Inc. AVGO has been benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises. An expanding portfolio with new generative AI solutions is expected to drive top-line growth for NOW. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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ecab49ec-1860-4b37-8700-f79385dcbcb5
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714785.0
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2023-12-06 00:00:00 UTC
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2 Consumer Loan Stocks to Buy Amid Gloomy Industry Prospects
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https://www.nasdaq.com/articles/2-consumer-loan-stocks-to-buy-amid-gloomy-industry-prospects
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The Zacks Consumer Loans industry continues to bear the brunt of weak consumer sentiments, high inflation and expectations of economic slowdown. This will dampen the demand for consumer loans and hamper industry players’ top-line growth. Deteriorating asset quality is a major near-term headwind too.
However, easing lending standards, which have increased the number of clients eligible for consumer loans, and the digitization of operations will keep benefiting consumer loan providers. Hence, industry players like Mr. Cooper Group Inc. COOP and Navient Corporation NAVI are worth betting on right now.
About the Industry
The Zacks Consumer Loans industry comprises companies that provide mortgages, refinancing, home equity lines of credit, credit card loans, automobile loans, education/student loans and personal loans, among others. These help the industry players generate net interest income (NII), which forms the most important part of total revenues. Prospects of the companies in this industry are highly sensitive to the nation’s overall economic condition and consumer sentiments. In addition to offering the abovementioned products and services, many consumer loan providers are involved in other businesses like commercial lending, insurance, loan servicing and asset recovery. These support the companies in generating fee revenues. Furthermore, this helps the firms diversify revenue sources and be less dependent on the vagaries of the economy.
3 Themes Shaping the Future of the Consumer Loan Industry
Weakening Consumer Sentiments: The persistently high inflation (though cooling now) and other macroeconomic headwinds continue to weigh on consumer sentiments. Though the Conference Board Consumer Confidence Index improved marginally in November, the Expectations Index, which shows a six-month outlook, was below 80 for the third straight month. This level historically indicated a recession within the next year.
Similar sentiments were recently echoed by several top executives of large banks, with their numbers reflecting slowing consumer spending. Therefore, this will result in muted demand for consumer loans in the near term. Thus, growth in net interest margin (NIM) and NII for consumer loan companies is likely to decline.
Worsening Asset Quality: For the major part of 2020, consumer loan providers built additional provisions to tide over unexpected defaults and payment delays due to the economic downturn resulting from the COVID-19 mayhem. This considerably hurt their financials. However, with solid economic growth and support from government stimulus packages, industry players began to release these reserves back into the income statement.
The current macroeconomic headwinds may curtail consumers’ ability to pay back loans. Thus, consumer loan providers are building additional reserves to counter any adverse fallout from unexpected defaults and payment delays. This is leading to a deterioration in industry players’ asset quality, and several credit quality metrics have crept up toward pre-pandemic levels.
Easing Lending Standards: With the nation’s big credit reporting agencies removing all tax liens from consumer credit reports since 2018, several consumers' credit scores have improved. This has raised the number of consumers for the industry participants. Further, easing credit lending standards is helping consumer loan providers meet loan demand.
Zacks Industry Rank Reflects Grim Picture
The Zacks Consumer Loans industry is a 16-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #225, which places it in the bottom 10% 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 underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a disappointing earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Over the past year, the industry’s earnings estimates for 2023 have moved 10.2% lower.
Before we present a couple of stocks that you may want to buy, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry vs. Broader Market
The Zacks Consumer Loans industry has underperformed both the Zacks S&P 500 composite and its sector over the past two years.
The stocks in this industry have collectively dropped 21.4% over this period, while the Zacks S&P 500 composite and the Zacks Finance sector have declined 4% and 4.9%, respectively.
Two-Year Price Performance
Industry's Valuation
One might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TBV), commonly used for valuing consumer loan stocks because of significant variations in their earnings results from one quarter to the next.
The industry currently has a trailing 12-month P/TBV of 0.95X, below the median level of 1.13X, over the past five years. This compares with the highest level of 1.56X and the lowest level of 0.48X over this period. The industry is trading at a considerable discount when compared with the market at large, as the trailing 12-month P/TBV ratio for the S&P 500 is 9.93X and the median level is 10.10X.
Price-to-Tangible Book Ratio (TTM)
As finance stocks typically have a lower P/TBV, comparing consumer loan providers with the S&P 500 may not make sense to many investors. However, a comparison of the group’s P/TBV ratio with that of its broader sector ensures that the group is trading at a decent discount. The Zacks Finance sector’s trailing 12-month P/TBV of 4.54X for the same period is way above the Zacks Consumer Loan industry’s ratio, as the chart below shows.
Price-to-Tangible Book Ratio (TTM)
2 Consumer Loan Stocks to Invest in
Cooper Group: Headquartered in Coppell, TX, the company is engaged in non-banking services for mortgage loans. The company operates through its primary brands — Mr. Cooper and Xome.
Though the demand for mortgages is subdued now due to higher rates, COOP is well-placed to leverage its scale (it is one of the largest non-bank mortgage servicers in the United States) and bolster its top-line growth. Further, the strategic acquisitions of Home Point Capital Inc. and Roosevelt Management Company, LLC in August 2023 will boost the company’s servicing business.
With the Federal Reserve likely to keep interest rates high in the near term to control inflation, this Zacks Rank #2 (Buy) company’s NII and NIM are expected to witness improvements, though rising funding costs will weigh on both. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for earnings for 2023 and 2024 has remained unchanged over the past seven days. Also, COOP shares have jumped 27.3% over the past six months.
Price and Consensus: COOP
Navient: This Zacks Rank #2 stock is a leading provider of education loan management and business processing solutions. Headquartered in Wilmington, DE, the company is one of the leading servicers to the U.S. Department of Education under its Direct Student Loan Program.
NAVI is growing its in-school originations. Nonetheless, with the increase in overall interest rates, the extension of the federal loan payment holiday, loan forgiveness proposals and programs are anticipated to create uncertainty and limit refinance loan origination volume in the near term. However, the demand for refinancing loans is likely to rebound once direct federal loan repayments begin.
A focus on introducing new products leveraged with technology and cost-control efforts will continue supporting Navient in the quarters ahead. Also, the company focuses on delivering operating efficiency and improving customer experience by building technology-enabled solutions.
Navient shares have rallied 1.1% over the past six months. Over the past week, the Zacks Consensus Estimate for earnings has remained unchanged for both 2023 and 2024.
Price and Consensus: NAVI
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
MR. COOPER GROUP INC (COOP) : Free Stock Analysis Report
Navient Corporation (NAVI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Worsening Asset Quality: For the major part of 2020, consumer loan providers built additional provisions to tide over unexpected defaults and payment delays due to the economic downturn resulting from the COVID-19 mayhem. Price-to-Tangible Book Ratio (TTM) As finance stocks typically have a lower P/TBV, comparing consumer loan providers with the S&P 500 may not make sense to many investors. With the Federal Reserve likely to keep interest rates high in the near term to control inflation, this Zacks Rank #2 (Buy) company’s NII and NIM are expected to witness improvements, though rising funding costs will weigh on both.
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About the Industry The Zacks Consumer Loans industry comprises companies that provide mortgages, refinancing, home equity lines of credit, credit card loans, automobile loans, education/student loans and personal loans, among others. Zacks Industry Rank Reflects Grim Picture The Zacks Consumer Loans industry is a 16-stock group within the broader Zacks Finance sector. Click to get this free report MR. COOPER GROUP INC (COOP) : Free Stock Analysis Report Navient Corporation (NAVI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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About the Industry The Zacks Consumer Loans industry comprises companies that provide mortgages, refinancing, home equity lines of credit, credit card loans, automobile loans, education/student loans and personal loans, among others. Zacks Industry Rank Reflects Grim Picture The Zacks Consumer Loans industry is a 16-stock group within the broader Zacks Finance sector. Broader Market The Zacks Consumer Loans industry has underperformed both the Zacks S&P 500 composite and its sector over the past two years.
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In addition to offering the abovementioned products and services, many consumer loan providers are involved in other businesses like commercial lending, insurance, loan servicing and asset recovery. Industry vs. The Zacks Finance sector’s trailing 12-month P/TBV of 4.54X for the same period is way above the Zacks Consumer Loan industry’s ratio, as the chart below shows.
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714786.0
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2023-12-06 00:00:00 UTC
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Neogen (NEOG) to Offer Biosecurity Products With New Pact
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https://www.nasdaq.com/articles/neogen-neog-to-offer-biosecurity-products-with-new-pact
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Neogen Corporation NEOG recently collaborated with the TerraNova Equestrian Center in Myakka City, FL. With this collaboration, Neogen becomes the official biosecurity provider of the facility.
The recent development will bolster Neogen’s (NEOG) Animal Safety business.
More on the News
The TerraNova Equestrian Center is a premier Florida equestrian destination, which is designed to offer an unrivaled experience for participants and horses while prioritizing safety. The equestrian center includes world-class facilities such as six all-weather arenas, a cross-country course and stables that welcome riders and horses of all levels of equestrian competition.
Significance of the Collaboration
Through this partnership, Neogen will be able to highlight its biosecurity and horse health products — such as the COMPANION range of cleansers and disinfection solutions. To safeguard horses, their owners and everyone else who visit the showgrounds, the company is thrilled to collaborate with TerraNova.
TerraNova is optimistic about Neogen’s commitment to raising the bar for animal welfare. With this collaboration, the center can easily uphold its dedication to quality at its facilities thanks to NEOG’s product line.
Industry Prospects
Per a report by Equine Healthcare, the global equine healthcare market is expected to cross $972.8 million by 2028. The key driving factors include growth in spending toward activities pertaining to equine care across major parts of the globe.
Recent Developments in the Animal Safety Segment
In September 2023, Neogen introduced the latest professional pest management solution in the SureKill line — SureKill Evolve SC. The SureKill line of products specifically caters to the needs of a pest management professional with insecticides, rodenticides, cleaners and disinfectants.
Image Source: Zacks Investment Research
In August 2023, Neogen launched a new and progressive genomic data management tool — Igenity Enhanced Dairy. The platform delivers a genomic evaluation of dairy cattle by integrating in-herd phenotypic data, pedigree information and existing predicted transmitting abilities from the Council on Dairy Cattle Breeding.
Price Performance
In the past six months, Neogen has outperformed its industry. Shares of the company have increased 15.2% against the industry’s decline of 3.4%.
Zacks Rank and Key Picks
Neogen currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. While Haemonetics and DexCom each carry a Zacks Rank #2 (Buy), 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 risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 in 2023 and $4.07 to $4.11 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 (EPS) have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have plunged 40.9% in the past year compared with the industry’s decline of 7%.
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 EPS have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have dropped 7.8% in the past year compared with the industry’s decline of 7.1%.
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%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Neogen Corporation (NEOG) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Significance of the Collaboration Through this partnership, Neogen will be able to highlight its biosecurity and horse health products — such as the COMPANION range of cleansers and disinfection solutions. The key driving factors include growth in spending toward activities pertaining to equine care across major parts of the globe. Image Source: Zacks Investment Research In August 2023, Neogen launched a new and progressive genomic data management tool — Igenity Enhanced Dairy.
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Neogen Corporation NEOG recently collaborated with the TerraNova Equestrian Center in Myakka City, FL. Recent Developments in the Animal Safety Segment In September 2023, Neogen introduced the latest professional pest management solution in the SureKill line — SureKill Evolve SC. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank and Key Picks Neogen currently carries a Zacks Rank #3 (Hold). While Haemonetics and DexCom each carry a Zacks Rank #2 (Buy), Insulet sports a Zacks Rank #1 (Strong Buy). Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Neogen Corporation NEOG recently collaborated with the TerraNova Equestrian Center in Myakka City, FL. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 in 2023 and $4.07 to $4.11 in 2024 in the past 30 days. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714787.0
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2023-12-06 00:00:00 UTC
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3 Reasons to Buy McDonald's Like There's No Tomorrow
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https://www.nasdaq.com/articles/3-reasons-to-buy-mcdonalds-like-theres-no-tomorrow
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Few companies are as synonymous with their industry as McDonald's (NYSE: MCD) is with fast food. Since its founding decades ago, McDonald's has revolutionized fast food and helped make it what it is today. Its brand and iconic golden arches are recognized in most places of the world.
There is no doubt that McDonald's has been a timeless brand and remarkable business that has made many of its investors rich along the way, but that alone doesn't automatically make it a great investment going forward. However, these three reasons emphasize why investors should be buying McDonald's for the long haul.
1. Its dividend is growing rapidly
McDonald's has been around for quite some time, so it's unreasonable to expect its stock price to skyrocket in a month or year. However, its dividend is a major attraction for investors. Its current quarterly dividend is $1.67 per share, with a trailing-12-month yield of just under 2.2%. It's far from the most lucrative dividend on the stock market, but it's reliable and headed in the right direction.
An above-average dividend is nice, but a dividend that increases annually is better. McDonald's has increased its annual dividend for 47 straight years, putting it on a clear path to becoming a Dividend King. The latest 10% increase to its dividend has capped off a decade during which the company has more than doubled its payout.
MCD Dividend data by YCharts
Investors shouldn't be concerned about the stability of McDonald's dividend, either. Its payout ratio, which measures the proportion of earnings paid in dividends, is 53%. That leaves plenty of money for McDonald's to spend on expansion, marketing, and building out its technology capabilities (app, kiosk ordering, etc.).
2. It leans on localization to expand globally
Although McDonald's got its start in San Bernardino, California, it has since grown to over 40,000 locations in more than 115 countries. McDonald's has been doing well in its global strategy.
It's relatively easy (I say that loosely) to operate successfully in your home country where you're familiar with the workings. It's not as easy to operate successfully internationally because each country has its own preferences, customs, and other unique factors. McDonald's has addressed this through effective localization, in which specific locations are tailored to match local tastes.
For example, Japan has the Ebi Filet-O, India has the McSpicy Paneer, the Netherlands has the McKroket, and Malaysia has the Bubur Ayam McD. These are just a few examples, too; there are dozens of examples like this worldwide.
In the third quarter, McDonald's internationally operated markets and international developmental licensed markets segments increased sales by 8.3% and 10.5% year over year, respectively. This outpaced its U.S. growth with 8.1%.
3. Its franchisee business model is helping its margins
Despite the tens of thousands of McDonald's locations globally, most people would be surprised to know just how little of them McDonald's operates: roughly 5%. The remaining restaurants are owned and operated by the franchisees.
In many cases, McDonald's owns the real estate that franchisees must lease or rent. This allows the company to collect money from its franchisee fees as well as through leases and rents. Through the first three quarters of 2023, McDonald's made just over $19 billion in revenue, with around $11.5 billion coming from franchised restaurants. Most of the revenue from franchised restaurants came from rental income.
MCD Gross Profit Margin (Quarterly) data by YCharts
The transition to a more franchisee-based model has increased McDonald's gross profit margin because rental income is generally higher-margin than operating income from food. That puts the company in a position to keep being shareholder-friendly with share buybacks (over $2.2 billion worth through three quarters of 2023) and dividends, both of which provide long-term value for investors.
10 stocks we like better than McDonald's
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 McDonald's 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
Stefon Walters has positions in McDonald's. 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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There is no doubt that McDonald's has been a timeless brand and remarkable business that has made many of its investors rich along the way, but that alone doesn't automatically make it a great investment going forward. That leaves plenty of money for McDonald's to spend on expansion, marketing, and building out its technology capabilities (app, kiosk ordering, etc.). For example, Japan has the Ebi Filet-O, India has the McSpicy Paneer, the Netherlands has the McKroket, and Malaysia has the Bubur Ayam McD.
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In the third quarter, McDonald's internationally operated markets and international developmental licensed markets segments increased sales by 8.3% and 10.5% year over year, respectively. Its franchisee business model is helping its margins Despite the tens of thousands of McDonald's locations globally, most people would be surprised to know just how little of them McDonald's operates: roughly 5%. MCD Gross Profit Margin (Quarterly) data by YCharts The transition to a more franchisee-based model has increased McDonald's gross profit margin because rental income is generally higher-margin than operating income from food.
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MCD Dividend data by YCharts Investors shouldn't be concerned about the stability of McDonald's dividend, either. Its franchisee business model is helping its margins Despite the tens of thousands of McDonald's locations globally, most people would be surprised to know just how little of them McDonald's operates: roughly 5%. MCD Gross Profit Margin (Quarterly) data by YCharts The transition to a more franchisee-based model has increased McDonald's gross profit margin because rental income is generally higher-margin than operating income from food.
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Its franchisee business model is helping its margins Despite the tens of thousands of McDonald's locations globally, most people would be surprised to know just how little of them McDonald's operates: roughly 5%. 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 McDonald's wasn't one of them!
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714788.0
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2023-12-06 00:00:00 UTC
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Amazon Is Launching a Chatbot, and It's Undercutting Microsoft and Alphabet
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https://www.nasdaq.com/articles/amazon-is-launching-a-chatbot-and-its-undercutting-microsoft-and-alphabet
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It's been a year since ChatGPT emerged on the scene. Since then, artificial intelligence (AI) has been a big theme in investing. Businesses have been eager to talk up their AI-powered products and services, regardless of how significant they are. AI is the new buzzword for companies to lure in customers and investors alike.
If you've been focusing on AI stocks, your attention may have been on Nvidia, Microsoft, or Alphabet. The latter two unveiled their own chatbots and have even rolled out products for their enterprise clients. But investors shouldn't forget about Amazon (NASDAQ: AMZN). The company is no stranger to AI, and it recently announced its own chatbot.
Amazon Q to focus on businesses
Amazon recently unveiled its new AI-powered assistant, called Amazon Q. But unlike ChatGPT or Bard, this new chatbot is tailored toward businesses. There is no link or app that will allow people to easily test it out on their own to compare to those other chatbots.
According to its website, "Amazon Q can be tailored to your business by connecting it to company data, information, and systems, made simple with more than 40 built-in connectors." The chatbot can help ensure users only see information that they are allowed access to.
It will be priced lower than Alphabet and Microsoft's AI-powered services
Amazon is pricing the service out aggressively right at the start. At $20 per month, it's cheaper than the $30/month that both Microsoft and Alphabet are charging for their AI-powered business applications, which focus on spreadsheet, word processing, email, and other productivity applications.
The services aren't the same as what Amazon is offering, which appears to be a custom chatbot tailored for a specific business. But it may be a more useful service. For example, Amazon Q can work with Amazon Web Services to help a business develop a web application and get information about its supply chain. With Microsoft's Copilot, one of the key features the company advertises is the ability to create a proposal based on meeting notes or helping to analyze trends or visuals in Microsoft Excel -- something that intermediate-level Excel users would already know how to do.
While it's still too early to tell how big of a benefit Microsoft Copilot may be to users, I don't see anything there that's much of a game changer, where at $30 per month, would offer more value for businesses than Amazon Q. Microsoft and Alphabet being the early movers into the space and offering AI-powered office applications and services may give them a head start, but I wouldn't count on that leading to a sustainable advantage in the long run.
Could Amazon be the better AI stock to buy?
It's still the very early innings of AI products and services making their way into the business world, and it's far too early to call a winner. Businesses are the right type of customer to focus on, however, given the need for companies to become more efficient and do more with less, particularly at a time when costs are rising due to inflation.
Investors should be careful not to assume that one AI stock will be a clear winner, as a lot can still change. Alphabet, for instance, hasn't yet launched Google Gemini, which will be a more direct rival to ChatGPT. Apple is also working on a chatbot of its own.
Which AI product becomes the preference for a business may come down to which one safeguards data and privacy the best.
Amazon has been involved with AI for years (consumers only need to remember its personalized recommendations when shopping online as the easiest example of that), and it would be premature to say that it has fallen behind to Microsoft or Alphabet. This is still a long race, and any of these companies could come out on top. If you're not sure which stock is the best option for your portfolio, you may want to spread your investment across any of the AI stocks mentioned here -- these are all solid growth stocks to hold.
10 stocks we like better than Amazon
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 Amazon 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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to its website, "Amazon Q can be tailored to your business by connecting it to company data, information, and systems, made simple with more than 40 built-in connectors." While it's still too early to tell how big of a benefit Microsoft Copilot may be to users, I don't see anything there that's much of a game changer, where at $30 per month, would offer more value for businesses than Amazon Q. Microsoft and Alphabet being the early movers into the space and offering AI-powered office applications and services may give them a head start, but I wouldn't count on that leading to a sustainable advantage in the long run. Amazon has been involved with AI for years (consumers only need to remember its personalized recommendations when shopping online as the easiest example of that), and it would be premature to say that it has fallen behind to Microsoft or Alphabet.
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Amazon Q to focus on businesses Amazon recently unveiled its new AI-powered assistant, called Amazon Q. It will be priced lower than Alphabet and Microsoft's AI-powered services Amazon is pricing the service out aggressively right at the start. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia.
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Amazon Q to focus on businesses Amazon recently unveiled its new AI-powered assistant, called Amazon Q. While it's still too early to tell how big of a benefit Microsoft Copilot may be to users, I don't see anything there that's much of a game changer, where at $30 per month, would offer more value for businesses than Amazon Q. Microsoft and Alphabet being the early movers into the space and offering AI-powered office applications and services may give them a head start, but I wouldn't count on that leading to a sustainable advantage in the long run. See the 10 stocks *Stock Advisor returns as of December 4, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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Amazon Q to focus on businesses Amazon recently unveiled its new AI-powered assistant, called Amazon Q. The services aren't the same as what Amazon is offering, which appears to be a custom chatbot tailored for a specific business. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia.
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714789.0
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2023-12-06 00:00:00 UTC
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Is First Trust NYSE Arca Biotechnology ETF (FBT) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-first-trust-nyse-arca-biotechnology-etf-fbt-a-strong-etf-right-now-10
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A smart beta exchange traded fund, the First Trust NYSE Arca Biotechnology ETF (FBT) debuted on 06/19/2006, and offers broad exposure to the Health Care ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by First Trust Advisors. FBT has been able to amass assets over $1.18 billion, making it one of the larger ETFs in the Health Care ETFs. This particular fund, before fees and expenses, seeks to match the performance of the NYSE Arca Biotechnology Index.
The NYSE Arca Biotechnology Index is an equal dollar weighted index designed to measure the performance of a cross section of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for FBT are 0.56%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
FBT's heaviest allocation is in the Healthcare sector, which is about 100% of the portfolio.
Looking at individual holdings, Sarepta Therapeutics, Inc. (SRPT) accounts for about 3.90% of total assets, followed by Exelixis, Inc. (EXEL) and Biontech Se (adr) (BNTX).
The top 10 holdings account for about 37.02% of total assets under management.
Performance and Risk
The ETF has lost about -6.62% so far this year and is down about -7.76% in the last one year (as of 12/06/2023). In the past 52-week period, it has traded between $132.50 and $165.37.
The ETF has a beta of 0.73 and standard deviation of 22.41% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NYSE Arca Biotechnology ETF is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index and the iShares Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index. SPDR S&P Biotech ETF has $6.44 billion in assets, iShares Biotechnology ETF has $6.65 billion. XBI has an expense ratio of 0.35% and IBB charges 0.45%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust NYSE Arca Biotechnology ETF (FBT): ETF Research Reports
Exelixis, Inc. (EXEL) : Free Stock Analysis Report
iShares Biotechnology ETF (IBB): ETF Research Reports
Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report
SPDR S&P Biotech ETF (XBI): ETF Research Reports
BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings. Looking at individual holdings, Sarepta Therapeutics, Inc. (SRPT) accounts for about 3.90% of total assets, followed by Exelixis, Inc. (EXEL) and Biontech Se (adr) (BNTX). The ETF has a beta of 0.73 and standard deviation of 22.41% for the trailing three-year period, making it a high risk choice in the space.
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A smart beta exchange traded fund, the First Trust NYSE Arca Biotechnology ETF (FBT) debuted on 06/19/2006, and offers broad exposure to the Health Care ETFs category of the market. SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index and the iShares Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index. Click to get this free report First Trust NYSE Arca Biotechnology ETF (FBT): ETF Research Reports Exelixis, Inc. (EXEL) : Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report SPDR S&P Biotech ETF (XBI): ETF Research Reports BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A smart beta exchange traded fund, the First Trust NYSE Arca Biotechnology ETF (FBT) debuted on 06/19/2006, and offers broad exposure to the Health Care ETFs category of the market. SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index and the iShares Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index. Click to get this free report First Trust NYSE Arca Biotechnology ETF (FBT): ETF Research Reports Exelixis, Inc. (EXEL) : Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report SPDR S&P Biotech ETF (XBI): ETF Research Reports BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The top 10 holdings account for about 37.02% of total assets under management. The ETF has a beta of 0.73 and standard deviation of 22.41% for the trailing three-year period, making it a high risk choice in the space. SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index and the iShares Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index.
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f5c49f10-e52e-426a-87c1-d38bec994e12
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714790.0
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2023-12-06 00:00:00 UTC
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Stitch Fix (SFIX) Loss Narrows in Q1, Revenues Down Y/Y
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DCOMP
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https://www.nasdaq.com/articles/stitch-fix-sfix-loss-narrows-in-q1-revenues-down-y-y
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Stitch Fix, Inc. SFIX posted a narrower-than-expected loss per share and better-than-expected revenues in its first-quarter fiscal 2024 results. While the bottom line fared better year over year, the top line deteriorated from the year-earlier quarter’s figure. The results were hurt by a tough macroeconomic backdrop and a tighter consumer wallet.
Q1 Details
Stitch Fix reported an adjusted loss of 22 cents per share, narrower than the Zacks Consensus Estimate of a loss of 23 cents. The metric also narrowed from a loss of 46 cents per share reported in the year-ago quarter.
SFIX recorded net revenues of $364.8 million, which outpaced the Zacks Consensus Estimate of $362 million. However, the metric declined 18% from the year-ago quarter figure due to lower net active clients.
Stitch Fix, Inc. Price, Consensus and EPS Surprise
Stitch Fix, Inc. price-consensus-eps-surprise-chart | Stitch Fix, Inc. Quote
Margins & Costs
In the fiscal first quarter, gross profit declined to $159.1 million from $187.3 million reported in the year-ago period. However, the gross margin expanded 140 basis points (bps) year over year to 43.6%, supported by improvements in SFIX’s inventory position and transportation leverage. We expected the figure to expand by 130 bps to 43.5% for the fiscal quarter under review.
The company’s cost of goods sold declined from $256.4 million reported in the year-ago period to $205.7 million in the fiscal first quarter. Selling, general and administrative expenses (“SG&A”) fell from $235.8 million in the prior-year quarter to $187.8 million in the quarter under review. SG&A expenses, as a percentage of net revenues, were 51.5%, down 160 bps from 53.1% reported in the prior-year quarter. We expected the metric to be 53.2% for the quarter.
Stitch Fix reported an adjusted EBITDA of $8.6 million for the fiscal quarter under review compared with the adjusted EBITDA loss of $1.7 million posted in the year-ago fiscal quarter.
Other Financial Aspects
The company ended the fiscal first quarter with cash and cash equivalents of $256.9 million, short-term investments of $5.4 million, net inventory of $160.7 million and shareholders’ equity of $230.7 million.
SFIX generated $20.6 million in cash from operating activities and had a free cash flow of $16.9 million during the first quarter of fiscal 2024.
Outlook
For the second quarter of fiscal 2024, management projects net revenues of $325-$335 million, indicating a 16-19% decline from the year-ago fiscal quarter’s reported figure. This decline is due to challenges related to the tough macroeconomic backdrop. Stitch Fix expects adjusted EBITDA in the band of $2-$7 million, with a margin of 1% to 2%.
Management is persistently navigating the ongoing macroeconomic uncertainties and remains committed to improving gross margins with better product margins, transportation efficiency and inventory efficiency over time. For both second-quarter fiscal 2024 and fiscal 2024, management anticipates a gross margin of 43-44%.
For fiscal 2024, SFIX continues to project net revenues of $1.30-$1.37 billion, indicating a 14-18% decline from the year-ago fiscal quarter’s reported figure.
For the fiscal year, Stitch Fix currently expects adjusted EBITDA in the range of $10-$30 million with a margin of 1% to 2% compared with an adjusted EBITDA of $5-$30 million with a margin of 0% to 2% envisioned earlier.
This Zacks Rank #3 (Hold) stock has lost 4.2% in the past three months against the industry’s growth of 12.3%.
3 Red-Hot Stocks
Some better-ranked stocks are MINISO Group Holding Limited MNSO, Deckers Outdoor Corporation DECK and MarineMax HZO. While MINISO Group sports a Zacks Rank #1 (Strong Buy), Deckers Outdoor and MarineMax, each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MINISO Group operates as a retailer and wholesaler of lifestyle products. The Zacks Consensus Estimate for MNSO’s current financial-year earnings per share and sales suggests growth of 43.6% and 29.9%, respectively, from the corresponding year-ago reported figures.
Deckers Outdoor is a leading producer and brand manager of innovative, niche footwear and accessories. The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 20.9% and 11.4%, respectively, from the previous year’s reported figures. DECK has a trailing four-quarter earnings surprise of 26.3% on average.
MarineMax is a recreational boat and yacht retailer and a superyacht services company. MarineMax’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter. The Zacks Consensus Estimate for HZO’s current financial year sales suggests growth of 3.1% from the year-ago period’s figures.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
MarineMax, Inc. (HZO) : Free Stock Analysis Report
Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 Zacks Consensus Estimate for MNSO’s current financial-year earnings per share and sales suggests growth of 43.6% and 29.9%, respectively, from the corresponding year-ago reported figures. The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 20.9% and 11.4%, respectively, from the previous year’s reported figures. The Zacks Consensus Estimate for HZO’s current financial year sales suggests growth of 3.1% from the year-ago period’s figures.
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Stitch Fix, Inc. Price, Consensus and EPS Surprise Stitch Fix, Inc. price-consensus-eps-surprise-chart | Stitch Fix, Inc. Quote Margins & Costs In the fiscal first quarter, gross profit declined to $159.1 million from $187.3 million reported in the year-ago period. Stitch Fix reported an adjusted EBITDA of $8.6 million for the fiscal quarter under review compared with the adjusted EBITDA loss of $1.7 million posted in the year-ago fiscal quarter. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report MarineMax, Inc. (HZO) : Free Stock Analysis Report Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stitch Fix, Inc. Price, Consensus and EPS Surprise Stitch Fix, Inc. price-consensus-eps-surprise-chart | Stitch Fix, Inc. Quote Margins & Costs In the fiscal first quarter, gross profit declined to $159.1 million from $187.3 million reported in the year-ago period. Stitch Fix reported an adjusted EBITDA of $8.6 million for the fiscal quarter under review compared with the adjusted EBITDA loss of $1.7 million posted in the year-ago fiscal quarter. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report MarineMax, Inc. (HZO) : Free Stock Analysis Report Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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3 Red-Hot Stocks Some better-ranked stocks are MINISO Group Holding Limited MNSO, Deckers Outdoor Corporation DECK and MarineMax HZO. MarineMax’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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db138e80-3247-4bca-85e9-52eafaab4945
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714791.0
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2023-12-06 00:00:00 UTC
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Blackbaud (BLKB) Gains 41% YTD: Will the Uptrend Continue?
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DCOMP
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https://www.nasdaq.com/articles/blackbaud-blkb-gains-41-ytd%3A-will-the-uptrend-continue
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Blackbaud BLKB witnessed strong momentum this year. Its shares have rallied 41% year to date compared with the S&P 500 Composite’s 19.6% growth.
BLKB is a well-known cloud software company. It offers a full spectrum of cloud-based and on-premise software solutions and related services for organizations of all sizes, especially the ones engaged in driving social good. It continues to invest heavily in cloud-based applications and software that is expected to bolster its long-term growth.
The company's performance is being driven by robust organic growth and extensive cost-cutting measures. In the last reported quarter, non-GAAP organic revenues grew 6.6% on a reported basis and 5.9% at constant currency, year over year. Non-GAAP organic recurring revenues rose 8.3% year over year. Total revenues jumped 6.2% year over year to $277.6 million.
Non-GAAP operating margin increased 960 basis points from the year-ago level to 28.7%, owing to extensive cost discipline. Non-GAAP adjusted EBITDA margin was 35%, up 940 bps year over year.
Momentum in both contractual and transactional recurring revenue streams, coupled with rising volumes across its other payment solutions, bodes well. Frequent product launches along with rising customer renewal rates and bookings are likely to be beneficial.
Image Source: Zacks Investment Research
The company is investing in generative AI to further expand its footprint. In October 2023, it announced that it was working on a new AI-powered, social impact reporting and storytelling solution — Impact Edge. Impact Edge will be integrating YourCause from Blackbaud and EVERFI from Blackbaud solutions within a single tool to consolidate data gathered from all reliable sources into one centralized location.
BLKB has a five-point growth strategy with an objective to deliver innovative products, drive booking growth, transactional revenue expansion, modernize pricing and multi-year customer contracts, and improve cost management.
Strategic buyouts have played a pivotal role in driving the top line. The acquisition of EVERFI has helped the company to expand its total addressable market (TAM) by about two times. It added more than $14 billion in TAM through acquisitions and new product launches from 2014 to 2021.
Driven by steady business momentum, Blackbaud reiterated its guidance for 2023. Management continues to expect non-GAAP revenues to be between $1.095 billion and $1.125 billion. It projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5%.
Non-GAAP earnings per share (EPS) are anticipated to be between $3.63 and $3.94. Non-GAAP adjusted free cash flow for the year is forecasted in the $190-$210 million range.
A Look at Estimates
BLKB’s 2023 and 2024 revenues are anticipated to rise 4.8% and 8%, respectively, year over year. The company’s earnings are expected to increase 40.9% and 17.3% in 2023 and 2024, respectively, on a year-over-year basis.
Over the past 60 days, EPS estimates for 2023 have remained unchanged at $3.79, while the same for 2024 improved 2 cents to $4.45.
A Few Headwinds Persist
Weakness prevailing over global macroeconomic conditions, forex volatility, a leveraged balance sheet and stiff competition continue to be concerns for this Zacks Rank #3 (Hold) stock.
Stocks to Consider
Some better-ranked stocks for investors interested in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy) at present. 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, delivering an average surprise of 4.1%. Shares of CDNS have risen 63.3% 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 rallied 84.3% 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 trailing four quarters, delivering an average surprise of 11.8%. Shares of WTS have rallied 29.7% in the past year.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Adobe Inc. (ADBE) : Free Stock Analysis Report
Blackbaud, Inc. (BLKB) : 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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It offers a full spectrum of cloud-based and on-premise software solutions and related services for organizations of all sizes, especially the ones engaged in driving social good. Non-GAAP operating margin increased 960 basis points from the year-ago level to 28.7%, owing to extensive cost discipline. A Few Headwinds Persist Weakness prevailing over global macroeconomic conditions, forex volatility, a leveraged balance sheet and stiff competition continue to be concerns for this Zacks Rank #3 (Hold) stock.
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Stocks to Consider Some better-ranked stocks for investors interested in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy) at present. 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 Adobe Inc. (ADBE) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : 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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In the last reported quarter, non-GAAP organic revenues grew 6.6% on a reported basis and 5.9% at constant currency, year over year. A Look at Estimates BLKB’s 2023 and 2024 revenues are anticipated to rise 4.8% and 8%, respectively, year over year. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : 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 organic recurring revenues rose 8.3% year over year. A Look at Estimates BLKB’s 2023 and 2024 revenues are anticipated to rise 4.8% and 8%, respectively, year over year. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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44d75cd5-3257-480e-9a3d-a9457f25903d
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714792.0
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2023-12-06 00:00:00 UTC
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Infosys' (INFY) Topaz Accelerates Spotlight's Customer Growth
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DCOMP
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https://www.nasdaq.com/articles/infosys-infy-topaz-accelerates-spotlights-customer-growth
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nan
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Infosys Limited INFY recently revealed that Spotlight Retail Group has achieved unprecedented customer growth in the past 12 months through an omnichannel digital fulfillment and advanced analytics platform built on its AI-first offering — Infosys Topaz.
With the help of this platform, the Australian retail giant, Spotlight Retail, has been able to provide a hyper-personalized online shopping experience for its customers. The enhanced customer experience has led to growth of 113% in the retailer’s customer base and 93% in transaction volume in the past 12 months.
Powered by Infosys Topaz, Spotlight Retail’s digital commerce platform is scalable on-demand, which is helping the Australian retailer meet the significant surge in transaction volumes among customers.
Integrated with advanced analytical capabilities powered by Topaz, the platform is also helping Spotlight Retail manage inventories better while reducing the occurrences of order cancellations due to insufficient stock. Additionally, the platform has fastened order fulfillment, thereby significantly improving customer satisfaction levels.
The robust customer and transaction volume growth witnessed by Spotlight Retail ensures that the Infosys Topaz product has significant growth potential. Topaz is an AI-first set of services, solutions and platforms using generative AI technologies. The product suite helps amplify the potential of humans, enterprises and communities to tap into the next generation of opportunities.
Infosys Limited Price and Consensus
Infosys Limited price-consensus-chart | Infosys Limited Quote
Infosys Boosts AI Offering
INFY has been ramping up its AI offerings as the success of OpenAI’s ChatGPT has demonstrated the AI technology’s potential to improve operations in almost every industry. Additionally, the company is strategically leveraging its AI capabilities at a time when cost efficiency and consolidation are the top priorities for its clients. It has already undertaken more than 90 generative AI projects for clients, as reported during the second-quarter fiscal 2024 earnings conference.
Infosys’ AI segment is seeing some potential in Retail, Communication and Original Equipment Manufacturer clients, who are focusing on digital transformation, cost saving, operational optimization and automation.
Considering the huge growth opportunity in the AI space, Infosys is continuously focusing on enhancing its Topaz capabilities through partnerships with the likes of Microsoft Corporation MSFT and Alphabet Inc.’s GOOGL Google.
In September 2023, Infosys and Microsoft collaborated to leverage their AI solutions, such as Infosys Topaz, Azure OpenAI Service and Azure Cognitive Service, to develop industry-scale solutions. This collaboration has enabled customers of both companies to transition from digital to AI-based solutions that will enhance the democratization of data and intelligence, boosting productivity and operational efficiency while decreasing the turn-around time.
Later, in October 2023, Infosys and Alphabet’s Google expanded their strategic partnership to help enterprises build AI-powered solutions. The expanded alliance has brought together Google Cloud's generative AI solutions to Infosys Topaz.
The integration has helped the Bengaluru, India-based IT consulting and outsourcing company create offerings that customers can adopt and easily integrate generative AI into their businesses. Therefore, this collaboration has enabled the customers to transition from digital to AI-based solutions.
Infosys’ AI Offerings Strike Large Deals
In the last few months, Infosys has struck several billion-dollar deals for its AI-based solutions and services. In September 2023, the company secured a $1.5 billion deal with an undisclosed global company for 15 years, according to an exchange filing. Through this agreement, INFY will provide an array of upgraded digital experiences and operational services based on its platforms and AI solutions.
This marked the company’s second AI deal in September, with the first being a strategic and multi-year collaboration with STARK Group to drive its digital transformation based on Infosys' Topaz. In July 2023, INFY signed a $2 billion deal with an existing client, committing to deliver AI and automation services for five years.
Despite these AI achievements, Infosys is facing a mixed bag of challenges. Its business is being affected by near-term uncertainties stemming from inflation and higher interest rates. Slow decision-making processes, along with softness in digital transformation programs and discretionary spending in the current uncertain macroeconomic environment, are hurting INFY’s volumes.
Zacks Rank & a Stock to Consider
Currently, Microsoft and Alphabet each carry a Zacks Rank #3 (Hold), while Infosys has a Zacks Rank #4 (Sell). Palo Alto carries a Zacks Rank #3. Shares of MSFT and GOOGL have rallied 55.4% and 48.5%, respectively, while INFY has fallen 3% year to date (YTD).
A better-ranked stock from the broader technology sector is Intel Corporation INTC, which sports 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 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 58.5% YTD.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Intel Corporation (INTC) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
American Noble Gas Inc. (INFY) : 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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Integrated with advanced analytical capabilities powered by Topaz, the platform is also helping Spotlight Retail manage inventories better while reducing the occurrences of order cancellations due to insufficient stock. Infosys’ AI segment is seeing some potential in Retail, Communication and Original Equipment Manufacturer clients, who are focusing on digital transformation, cost saving, operational optimization and automation. This collaboration has enabled customers of both companies to transition from digital to AI-based solutions that will enhance the democratization of data and intelligence, boosting productivity and operational efficiency while decreasing the turn-around time.
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Infosys Limited INFY recently revealed that Spotlight Retail Group has achieved unprecedented customer growth in the past 12 months through an omnichannel digital fulfillment and advanced analytics platform built on its AI-first offering — Infosys Topaz. Infosys Limited Price and Consensus Infosys Limited price-consensus-chart | Infosys Limited Quote Infosys Boosts AI Offering INFY has been ramping up its AI offerings as the success of OpenAI’s ChatGPT has demonstrated the AI technology’s potential to improve operations in almost every industry. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report American Noble Gas Inc. (INFY) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Infosys Limited INFY recently revealed that Spotlight Retail Group has achieved unprecedented customer growth in the past 12 months through an omnichannel digital fulfillment and advanced analytics platform built on its AI-first offering — Infosys Topaz. Infosys Limited Price and Consensus Infosys Limited price-consensus-chart | Infosys Limited Quote Infosys Boosts AI Offering INFY has been ramping up its AI offerings as the success of OpenAI’s ChatGPT has demonstrated the AI technology’s potential to improve operations in almost every industry. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report American Noble Gas Inc. (INFY) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Infosys Limited INFY recently revealed that Spotlight Retail Group has achieved unprecedented customer growth in the past 12 months through an omnichannel digital fulfillment and advanced analytics platform built on its AI-first offering — Infosys Topaz. A better-ranked stock from the broader technology sector is Intel Corporation INTC, which sports a Zacks Rank #1 (Strong Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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d4e331cc-e31b-456d-b67b-707238e49819
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714793.0
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2023-12-06 00:00:00 UTC
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RTX Secures a $321M Contract to Build Silent Knight Radar Systems
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DCOMP
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https://www.nasdaq.com/articles/rtx-secures-a-%24321m-contract-to-build-silent-knight-radar-systems
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RTX Corp. RTX recently clinched a multi-year contract involving Silent Knight Radar systems. The award has been offered by the U.S. Special Operations Command (USSOCOM), MacDill Air Force Base, FL.
Valued at $321.3 million, the contract is expected to be completed by Dec 31, 2028. Per the terms of the deal, RTX will be engaged in continued production and delivery of Silent Knight Radar systems and initial spare components to support USSOCOM.
Work related to this deal will be performed in McKinney, TX and Forest, MS.
Radars & RTX
With the rapid escalation of geopolitical tensions globally in recent times, developed as well as developing nations have been boosting their defense arsenal significantly. Radars constitute a vital part of their defense equipment. While radars have been in use since World War II for locating threats and targets, they are being used today for multiple purposes like ground surveillance, missile control, fire control, air traffic control, moving target indication, weapons location and vehicle search.
Demand for military radar systems has expanded manifold in recent times, driven by factors like a rise in defense spending of emerging economies, an increase in regional tensions and inter-country conflicts that have increased threats from missiles and aircraft. These, in turn, have been benefiting radar manufacturing companies like RTX in the form of contract wins like the latest one.
Notably, RTX’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. Radars like AN-SPY 6, AN-TPY-2, APG-79 and APG-82 are some of the company’s combat-proven products that enjoy solid demand in the global military radar market.
Growth Prospects
Amid the invasion of Russia in Ukraine in the recent past, as well as the ongoing hostile conflict in the Middle East, nations across the globe can be expected to have strengthened their surveillance system to avoid any unprecedented attack. Consequently, it is reasonable to expect that the demand for an effective radar system, which boasts the features of next-generation technology-based warfare capabilities, will gain further momentum in the coming days due to the growing importance of radars in military surveillance.
To this end, the Fortune Business Insights firm projects the global military radar market to reach $22.1 billion by 2028 at a CAGR of 6.3% from the 2021 level. Such growth projections should benefit RTX and other prominent radar manufacturers like Northrop Grumman NOC, Lockheed Martin LMT and L3Harris Technologies LHX.
Northrop’s radar solutions provide total surveillance for air and missile defense as well as air traffic control. Its diverse product portfolio includes a handful of radars like the F-35 fire control radar and Distributed Aperture System, the LONGBOW Fire Control Radar, the Scalable Agile Beam Radar, the APR-39 DV(2), the EV(2) Radar Warning Receiver programs and a few more.
NOC boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for its 2023 sales indicates an improvement of 6.6% from the 2022 reported figure.
Lockheed Martin’s radars are designed with the highest degree of commonality and fully integrated systems. These radars can operate in all environments, are available in highly mobile configurations and can be deployed worldwide. Its portfolio of radars includes the AN/APY-9 radar, the IRST21 Sensos system, AN/TPQ-53 radar systems, SPY-7, the long-range discrimination radar and a few more.
LMT boasts a long-term earnings growth rate of 8.6%. The stock has a trailing four-quarter average earnings surprise of 4.35%.
L3Harris manufactures a handful of combat-proven radars like the SPS-48, land-based surveillance radars, the AN/APY-11 Multimode radar, the Tactical Air Surveillance radar, the AN/SPS-48G Long-range 3D surveillance radar and many more.
L3Harris boasts a long-term earnings growth rate of 3.6%. The Zacks Consensus Estimate for its 2023 sales indicates an improvement of 12.6% from the 2022 reported figure.
Price Performance
In the past year, RTX’s shares have lost 16.5% compared with the industry’s 9.1% decline.
Image Source: Zacks Investment Research
Zacks Rank
RTX 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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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Per the terms of the deal, RTX will be engaged in continued production and delivery of Silent Knight Radar systems and initial spare components to support USSOCOM. Growth Prospects Amid the invasion of Russia in Ukraine in the recent past, as well as the ongoing hostile conflict in the Middle East, nations across the globe can be expected to have strengthened their surveillance system to avoid any unprecedented attack. Such growth projections should benefit RTX and other prominent radar manufacturers like Northrop Grumman NOC, Lockheed Martin LMT and L3Harris Technologies LHX.
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Notably, RTX’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. Such growth projections should benefit RTX and other prominent radar manufacturers like Northrop Grumman NOC, Lockheed Martin LMT and L3Harris Technologies LHX. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Notably, RTX’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. L3Harris manufactures a handful of combat-proven radars like the SPS-48, land-based surveillance radars, the AN/APY-11 Multimode radar, the Tactical Air Surveillance radar, the AN/SPS-48G Long-range 3D surveillance radar and many more. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Notably, RTX’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. L3Harris manufactures a handful of combat-proven radars like the SPS-48, land-based surveillance radars, the AN/APY-11 Multimode radar, the Tactical Air Surveillance radar, the AN/SPS-48G Long-range 3D surveillance radar and many more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714794.0
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2023-12-06 00:00:00 UTC
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Got $1,000? This Super Boring (Yet Magnificent) Dividend Stock Is an Incredible Bargain Right Now.
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https://www.nasdaq.com/articles/got-%241000-this-super-boring-yet-magnificent-dividend-stock-is-an-incredible-bargain-right
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Stag Industrial (NYSE: STAG) can be a real yawner. The real estate investment trust (REIT) acquires and operates single-tenant industrial properties across the country. It signs long-term leases with tenants that generate very stable rental income, giving it the cash to pay a monthly dividend that currently yields around 4%.
While Stag Industrial has a relatively boring business model, the company is a pretty exciting investment opportunity these days. It sells at a bargain price, giving investors a nice entry point into what has been a magnificent wealth creator over the years.
A quiet wealth creator
Stag Industrial came public in 2011 with relatively little fanfare. At the time, the industrial REIT owned 91 properties with 13.9 million rentable square feet across 26 states. It has since grown into a much larger company, with 568 properties and 112 million square feet in 41 states.
Stag Industrial has primarily acquired income-producing industrial properties. However, a focus in recent years has been on making value-add acquisitions (acquiring properties it can add value to through expansion projects, redevelopment, or leasing). The company has also gotten more into ground-up development projects in recent years, which are higher-risk/higher-upside investments.
The REIT's growing portfolio has significantly increased its rental income. That has allowed the company to give its investors a slight pay bump each year, while enabling it to retain an increasing amount of free cash to fund new investments. Its dividend payout ratio had fallen from about 99% at its IPO to 73.9% this year, allowing it to retain about $95 million in annual excess free cash flow.
The company's steadily growing cash flow and dividend have combined to produce a pretty compelling total return over the years:
STAG data by YCharts
The chart shows that the company has produced a nearly 500% total return since its IPO, significantly outpacing the S&P 500. It would have grown a hypothetical $1,000 investment at its IPO into nearly $6,000 today. That's about $1,500 more than the same investment in an S&P 500 index fund.
A premier value creator at a bargain price
Companies with excellent track records of growing value for their shareholders typically trade at a premium valuation compared to their peers. However, that's not the case with Stag Industrial:
Data source: Stag Industrial.
As that slide shows, Stag Industrial trades at a higher implied real estate capitalization rate (cap rate) than its peers (meaning it has a lower valuation and higher income yield). It also trades at a lower funds from operations (FFO) multiple (including adjusted FFO). This lower valuation is a big reason why it has a higher dividend yield.
That higher yield enables investors to generate a higher-income return on a new investment. For example, a $1,000 investment in Stag Industrial would produce about $40 of annual dividend income, while that same investment would only produce roughly $30 of annual dividend income from its peers.
This income stream should grow as Stag's FFO increases, driven by rising rental income and continued acquisitions. The company's legacy portfolio has lots of built-in growth. Its current leases have escalators that will increase rents by a 2.6% annual rate.
Meanwhile, there's even more rental growth upside as its long-term leases expire, given the strong demand for industrial real estate. That has driven a more than 30% increase in rents this year as legacy leases expired and Stag Industrial signed new ones covering the same space at the much-higher going market rate.
Meanwhile, the company has lots of financial flexibility to continue acquiring new properties. It has an investment grade-rated balance sheet backed by a low leverage ratio (4.9 times at the end of the third quarter, down from 5.2 times at the end of last year). Add in its meaningful (and growing) post-dividend free cash flow, and Stag Industrial can continue buying properties as compelling investment opportunities arise.
A well-rounded investment opportunity
Stag Industrial has quietly done a magnificent job growing shareholder value over the years. Despite that, it trades at a bargain valuation these days. That makes it look like a very compelling investment opportunity right now. It's in an excellent position to continue expanding its portfolio and increasing its high-yielding dividend in the coming years, which should allow it to keep growing shareholder value.
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Matthew DiLallo has positions in Stag Industrial. The Motley Fool has positions in and recommends Stag Industrial. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That has allowed the company to give its investors a slight pay bump each year, while enabling it to retain an increasing amount of free cash to fund new investments. A premier value creator at a bargain price Companies with excellent track records of growing value for their shareholders typically trade at a premium valuation compared to their peers. Add in its meaningful (and growing) post-dividend free cash flow, and Stag Industrial can continue buying properties as compelling investment opportunities arise.
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The company's steadily growing cash flow and dividend have combined to produce a pretty compelling total return over the years: STAG data by YCharts The chart shows that the company has produced a nearly 500% total return since its IPO, significantly outpacing the S&P 500. For example, a $1,000 investment in Stag Industrial would produce about $40 of annual dividend income, while that same investment would only produce roughly $30 of annual dividend income from its peers. Add in its meaningful (and growing) post-dividend free cash flow, and Stag Industrial can continue buying properties as compelling investment opportunities arise.
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The company's steadily growing cash flow and dividend have combined to produce a pretty compelling total return over the years: STAG data by YCharts The chart shows that the company has produced a nearly 500% total return since its IPO, significantly outpacing the S&P 500. For example, a $1,000 investment in Stag Industrial would produce about $40 of annual dividend income, while that same investment would only produce roughly $30 of annual dividend income from its peers. Add in its meaningful (and growing) post-dividend free cash flow, and Stag Industrial can continue buying properties as compelling investment opportunities arise.
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The real estate investment trust (REIT) acquires and operates single-tenant industrial properties across the country. As that slide shows, Stag Industrial trades at a higher implied real estate capitalization rate (cap rate) than its peers (meaning it has a lower valuation and higher income yield). Add in its meaningful (and growing) post-dividend free cash flow, and Stag Industrial can continue buying properties as compelling investment opportunities arise.
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714795.0
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2023-12-06 00:00:00 UTC
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The 3 Best Dow Stocks to Buy in December
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https://www.nasdaq.com/articles/the-3-best-dow-stocks-to-buy-in-december
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dow Jones Industrial Average, also known as the Dow 30, is on a hot streak. After trailing the benchmark S&P 500 and tech-laden Nasdaq indices for most of 2023, the Dow has been leading in recent weeks, having gained 8% in November and hitting a new 52-week high. This is a good indication for the stock market as a whole, as the Dow contains 30 blue-chip stocks that are supposed to be emblematic of the entire market and the U.S. economy.
Analysts have taken the current rise in the Dow as a sign that the bull market is broadening out beyond a few tech stocks tied to artificial intelligence (AI). They believe this could portend good things for the American economy, especially if we manage to avoid falling into a recession, as has been widely predicted for more than a year. Here are the three best Dow stocks to buy in December.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
The best-performing stock in the Dow 30 this year has been cloud computing giant Salesforce (NYSE:CRM). Its share price has gained nearly 90% this year and is streets ahead of most of the other components in the index. CRM stock got a nice 10% boost recently after the cloud-computing giant issued fiscal third-quarter financial results that handily beat Wall Street forecasts. The company reported earnings per share (EPS) of $2.11, well ahead of the $2.06 expected among analysts who cover the company.
Salesforce reported revenue in the quarter of $8.72 billion, up 11% from a year earlier and in line with analyst expectations. Remaining performance obligations, which measure work still to be performed within the next 12 months, stood at $23.9 billion, up 14% from a year ago. Regarding artificial intelligence (AI), Salesforce executives said the company is seeing early adoption of its new AI data-cloud offering. The company is also buying back $10 billion of its own stock currently.
Boeing (BA)
Source: Marco Menezes / Shutterstock.com
It’s been a difficult few years for aircraft manufacturer Boeing (NYSE:BA) and its shareholders. However, BA stock has surged 24% since the start of November following a slate of good news for the company. Critical to the stock’s reversal were reports that the Federal Aviation Administration (FAA) has cleared its 737 Max 10 aircraft to begin test flights. The clearance represents an important step forward for Boeing after the previous 737 Max jets were grounded following two deadly crashes.
The 737-10 is the largest aircraft in Boeing’s MAX series of single-aisle jets and a global bestseller for the company. Boeing had hoped to secure FAA certification for the 737-10 back in 2022, but that clearance was delayed, sending BA stock lower as a result. Now, Boeing executives confidently say they plan to have the 737-10 back in commercial service sometime in 2024. Boeing is one of only two commercial aircraft manufacturers in the entire world along with France’s Airbus SA (OTCMKTS:EADSY), forming a global duopoly.
BA stock is up 31% over the last 12 months, though its shares are trading 28% lower than where they were five years ago. Buy the dip.
Procter & Gamble (PG)
Source: gyn9037 / Shutterstock
It hasn’t lit the world on fire this year, but consumer goods company and Dow member Procter & Gamble (NYSE:PG) is a good long-term stock to hold in a portfolio. So far this year, PG stock is largely flat. However, the stock has gained 59% over the past five years and 80% over the past decade. The company also pays its stockholders a healthy quarterly dividend of 94 cents a share for a yield of 2.47%. The maker of Tide laundry detergent and Gillette razor blades is also a good stock to own in an economic downturn.
Most recently, Procter & Gamble issued third-quarter financial results that beat Wall Street forecasts. The company reported EPS of $1.83 versus the $1.72 expected. Revenue totaled $21.87 billion compared to $21.58 billion experts anticipated. The company’s earnings have managed to stay buoyant as inflation has risen because it has pricing power. PG said its sales got a boost in the latest quarter from a 7% price increase for its products.
On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post The 3 Best Dow Stocks to Buy in December 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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CRM stock got a nice 10% boost recently after the cloud-computing giant issued fiscal third-quarter financial results that handily beat Wall Street forecasts. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia. 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 The 3 Best Dow Stocks to Buy in December appeared first on InvestorPlace.
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CRM stock got a nice 10% boost recently after the cloud-computing giant issued fiscal third-quarter financial results that handily beat Wall Street forecasts. Procter & Gamble (PG) Source: gyn9037 / Shutterstock It hasn’t lit the world on fire this year, but consumer goods company and Dow member Procter & Gamble (NYSE:PG) is a good long-term stock to hold in a portfolio. Most recently, Procter & Gamble issued third-quarter financial results that beat Wall Street forecasts.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dow Jones Industrial Average, also known as the Dow 30, is on a hot streak. This is a good indication for the stock market as a whole, as the Dow contains 30 blue-chip stocks that are supposed to be emblematic of the entire market and the U.S. economy. Procter & Gamble (PG) Source: gyn9037 / Shutterstock It hasn’t lit the world on fire this year, but consumer goods company and Dow member Procter & Gamble (NYSE:PG) is a good long-term stock to hold in a portfolio.
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This is a good indication for the stock market as a whole, as the Dow contains 30 blue-chip stocks that are supposed to be emblematic of the entire market and the U.S. economy. The company reported earnings per share (EPS) of $2.11, well ahead of the $2.06 expected among analysts who cover the company. The company is also buying back $10 billion of its own stock currently.
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714796.0
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2023-12-06 00:00:00 UTC
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-10
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Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $14.25 billion, which makes it the largest ETF in the Style Box - All Cap Growth. IUSG seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for IUSG are 0.04%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.05%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For IUSG, it has heaviest allocation in the Information Technology sector --about 35.70% of the portfolio --while Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.35% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
IUSG's top 10 holdings account for about 43.81% of its total assets under management.
Performance and Risk
The ETF has added about 24.26% and was up about 17.37% so far this year and in the past one year (as of 12/06/2023), respectively. IUSG has traded between $79.81 and $100.86 during this last 52-week period.
IUSG has a beta of 1.04 and standard deviation of 21.24% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 496 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity Blue Chip Growth ETF (FBCG) tracks ---------------------------------------- and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. Fidelity Blue Chip Growth ETF has $918.69 million in assets, iShares Morningstar Growth ETF has $1.84 billion. FBCG has an expense ratio of 0.59% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. For IUSG, it has heaviest allocation in the Information Technology sector --about 35.70% of the portfolio --while Healthcare and Consumer Discretionary round out the top three. IUSG has a beta of 1.04 and standard deviation of 21.24% for the trailing three-year period, which makes the fund a medium risk choice in the space.
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Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. Fidelity Blue Chip Growth ETF (FBCG) tracks ---------------------------------------- and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here.
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Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here.
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Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. IUSG's top 10 holdings account for about 43.81% of its total assets under management. IUSG has a beta of 1.04 and standard deviation of 21.24% for the trailing three-year period, which makes the fund a medium risk choice in the space.
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2023-12-06 00:00:00 UTC
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Philip Morris' (PM) Smoke-Free Unit Solid, Cigarette Volumes Low
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https://www.nasdaq.com/articles/philip-morris-pm-smoke-free-unit-solid-cigarette-volumes-low-0
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Philip Morris International Inc. PM has strengthened its position in the tobacco space by leveraging its pricing strategy and emphasizing smoke-free products in response to evolving consumer preferences. These advantages have proven effective for this Zacks Rank #3 (Hold), especially in the face of declining cigarette volumes.
For the full year 2023, PM continues to expect 10-10.5% growth in adjusted earnings per share (EPS), excluding currency movements. Management expects robust organic top-line growth. The company’s guidance is supported by the constant success of its smoke-free portfolio, driven by the exceptional performance of its flagship premium brands — IQOS and ZYN.
Higher Pricing, a Key Driver
Strong pricing power has been helping Philip Morris stay firm amid soft cigarette shipment volumes and times of higher taxes. Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases due to the addictive quality of cigarettes. Higher pricing variance was an upside to the company’s performance in the third quarter of 2023, mainly due to increased combustible tobacco pricing.
Image Source: Zacks Investment Research
Solid Smoke-Free Products
Consumers are increasingly gravitating toward reduced-risk products (RRPs) or smoke-free alternatives, driven by the well-acquainted health risks associated with traditional cigarette smoking. In response to this evolving market dynamic, Philip Morris has been focused on strengthening its smoke-free alternatives. The company is making significant strides in its business transformation, with smoke-free products contributing to 36.2% of the company's net revenues in the third quarter of 2023.
Markedly, Philip Morris is well-placed to become a majority smoke-free company by 2025. To this end, PM’s IQOS, a heat-not-burn device, counts as one of the leading RRPs in the industry. The company expects such advanced and high-quality products to aid adult smokers in switching from traditional cigarettes to smoke-free options.
Among other initiatives, Philip Morris became the majority owner of Swedish Match on Nov 11, 2022. The company witnessed impressive results from the Swedish Match business in the third quarter, driven by ZYN in the United States. Management expects this strength to continue in 2023.
In the third quarter of 2023, revenues from smoke-free products (excluding Wellness and Healthcare) jumped 35.7% to $3,234 million (up 16.2% organically). In the quarter, the company witnessed continued strength in IQOS performance. Total IQOS users at the end of the third quarter were estimated at roughly 27.4 million (including nearly 19.7 million who switched to IQOS and stopped smoking).
Soft Cigarette Volumes & High Costs
The overall cigarette industry has been bearing the brunt of the inflationary environment, which has affected Adult Tobacco Consumers’ (“ATC”) spending patterns. Also, cigarette volumes, in general, have been affected by consumers’ rising health consciousness and a shift to low-risk tobacco alternatives.
In the third quarter of 2023, Philip Morris’ cigarette shipment volumes dropped 0.5% to 161.1 billion units. In 2023, the total international industry volume for cigarettes and HTUs is estimated to decline in the range of 1.5-2% now (excluding China and the United States) compared with a decline of 0.5-1.5% expected earlier. For Philip Morris, cigarette shipment volumes are expected to decrease 1-2% in 2023.
On its third-quarterearnings call Philip Morris also stated that it expects to make additional growth-oriented investments in 2023, including the commercialization of ILUMA. These are likely to weigh on the company’s margins. While management expects robust organic operating margin growth in the fourth quarter of 2023, the same is likely to decline toward the upper end of the 50-150 basis point range in the full year 2023.
Wrapping Up
Nonetheless, these investments bode well for Philip Morris’ long-term growth. Management is confident about its CAGR targets for 2024-2026. These include organic top-line growth of 6-8%, organic operating income growth of 8-10 and currency-neutral adjusted EPS growth of 9-11%.
Shares of Philip Morris have dropped 4% in a year compared with the industry’s decline of 5%.
3 Staple Picks
The Kraft Heinz Company KHC, a food and beverage product company, currently carries a Zacks Rank #2 (Buy). KHC has a trailing four-quarter earnings surprise of 9.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kraft Heinz’s current financial-year sales and earnings suggests growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Celsius Holdings, Inc. CELH, which develops, processes, markets, distributes and sells functional drinks and liquid supplements, holds a Zacks Rank #2. CELH has a trailing four-quarter earnings surprise of 110.9%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
Vital Farms Inc. VITL offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2. VITL has a trailing four-quarter earnings surprise of 145%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Philip Morris International Inc. PM has strengthened its position in the tobacco space by leveraging its pricing strategy and emphasizing smoke-free products in response to evolving consumer preferences. The company’s guidance is supported by the constant success of its smoke-free portfolio, driven by the exceptional performance of its flagship premium brands — IQOS and ZYN. While management expects robust organic operating margin growth in the fourth quarter of 2023, the same is likely to decline toward the upper end of the 50-150 basis point range in the full year 2023.
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Image Source: Zacks Investment Research Solid Smoke-Free Products Consumers are increasingly gravitating toward reduced-risk products (RRPs) or smoke-free alternatives, driven by the well-acquainted health risks associated with traditional cigarette smoking. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Solid Smoke-Free Products Consumers are increasingly gravitating toward reduced-risk products (RRPs) or smoke-free alternatives, driven by the well-acquainted health risks associated with traditional cigarette smoking. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the quarter, the company witnessed continued strength in IQOS performance. For Philip Morris, cigarette shipment volumes are expected to decrease 1-2% in 2023. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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a3b97aef-053a-4198-9617-3540e94c7c05
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714798.0
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2023-12-06 00:00:00 UTC
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Campbell Soup (CPB) Q1 Earnings and Revenues Beat Estimates
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DCOMP
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https://www.nasdaq.com/articles/campbell-soup-cpb-q1-earnings-and-revenues-beat-estimates
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nan
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nan
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Campbell Soup (CPB) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4.60%. A quarter ago, it was expected that this maker of canned soup, Pepperidge Farm cookies and V8 juice would post earnings of $0.50 per share when it actually produced earnings of $0.50, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Campbell, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $2.52 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 0.40%. This compares to year-ago revenues of $2.58 billion. 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.
Campbell shares have lost about 28.9% since the beginning of the year versus the S&P 500's gain of 19%.
What's Next for Campbell?
While Campbell 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 Campbell: 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 $0.81 on $2.48 billion in revenues for the coming quarter and $3.06 on $9.52 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, Food - Miscellaneous is currently in the bottom 35% 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.
Conagra Brands (CAG), another stock in the same industry, has yet to report results for the quarter ended November 2023. The results are expected to be released on January 4.
This company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -17.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Conagra Brands' revenues are expected to be $3.25 billion, down 1.9% from the year-ago quarter.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right 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
Campbell Soup Company (CPB) : Free Stock Analysis Report
Conagra Brands (CAG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Campbell, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $2.52 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 0.40%. The current consensus EPS estimate is $0.81 on $2.48 billion in revenues for the coming quarter and $3.06 on $9.52 billion in revenues for the current fiscal year. Click to get this free report Campbell Soup Company (CPB) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Campbell Soup (CPB) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.87 per share. Campbell, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $2.52 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 0.40%. Click to get this free report Campbell Soup Company (CPB) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Campbell Soup (CPB) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.87 per share. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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15812631-01d3-40cf-946f-12fb041a08b9
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714799.0
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2023-12-06 00:00:00 UTC
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How Costco Crushes Competitors Like Target and Walmart
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DCOMP
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https://www.nasdaq.com/articles/how-costco-crushes-competitors-like-target-and-walmart
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nan
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nan
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Costco (NASDAQ: COST) isn't playing by the same rules as other retailers. The company makes nearly all of its profit from memberships, which means the retail operations can be run at breakeven.
In this video, Travis Hoium goes through the numbers and shows why even the best big-box retailers can't compete with Costco's prices.
*Stock prices used were end-of-day prices of Dec. 1, 2023. The video was published on Dec. 4, 2023.
10 stocks we like better than Costco Wholesale
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Costco Wholesale 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
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company makes nearly all of its profit from memberships, which means the retail operations can be run at breakeven. In this video, Travis Hoium goes through the numbers and shows why even the best big-box retailers can't compete with Costco's prices. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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In this video, Travis Hoium goes through the numbers and shows why even the best big-box retailers can't compete with Costco's prices. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Travis Hoium has no position in any of the stocks mentioned.
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10 stocks we like better than Costco Wholesale 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. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Travis Hoium has no position in any of the stocks mentioned.
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In this video, Travis Hoium goes through the numbers and shows why even the best big-box retailers can't compete with Costco's prices. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Travis Hoium has no position in any of the stocks mentioned. Their opinions remain their own and are unaffected by The Motley Fool.
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80d1b8d4-0292-454a-ba94-e487af89e13b
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