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2023-12-06 00:00:00 UTC
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Focus on These 5 Stocks That Recently Hiked Dividends
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https://www.nasdaq.com/articles/focus-on-these-5-stocks-that-recently-hiked-dividends
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Wall Street has managed to give investors positive returns so far this year. The Dow, the S&P 500 and the tech-heavy NASDAQ have given 9%, 19% and 36% returns, respectively, over the year-to-date period. Investors’ confidence recovered as inflation in the United States showed a favorable trend in the past couple of months, thus raising hopes that the Federal Reserve may ease its monetary policy outlook in the near future.
The consumer price index (CPI) for the month of October remains unchanged from the previous month at 0.4% on a seasonally adjusted basis. For 12 months through October, CPI climbed 3.2% after rising 3.7% in September before seasonal adjustment. The annual rise in underlying inflation for the month of October was marked the smallest in the past two years.
According to the reports published by the Labor Department on Dec 5, 2023, job openings for the month of October decreased to 8.7 million, the lowest since March 20021. Although job openings fell dramatically, the total number of hires and total separations changed little at 5.9 million and 5.6 million, respectively.
A decline in job openings suggests that the Federal Reserve’s aggressive interest rates since March 2022 to slow the labor market and cool inflation is making its way through the economy. Although inflation is expected to cool off, it will likely be significantly higher than the Fed’s ambitious target of 2%. Investors are expecting the central bank to be less hawkish in its upcoming policy meet next week, and in the process, reduce the borrowing cost, which is affecting the corporate profitability. Fed Chairman Jerome Powell has kept the door open for further rate hikes or can keep the interest rate high for longer to win the inflation battle.
On the international front, the persistent war in the Middle East between Israel and the Palestine-based militant group Hamas amid ceasefires has disrupted the global supply chain. Such events also hurt corporate performance.
Keeping such uncertainties in mind, prudent investors seeking regular income and capital preservation can invest in dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
On this note, let us look at companies like Alexandria Real Estate Equities ARE, Suzano SUZ, Graco GGG, ChoiceOne Financial Services COFS and LaZBoy LZB that have lately hiked their dividend payouts.
Alexandria Real Estate Equities is headquartered in Pasadena, CA. This Zacks Rank #3 (Hold) company is an urban office real estate investment trust (REIT) with a particular focus on collaborative life science, agtech and technology campuses. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Dec 4, ARE declared that its shareholders would receive a dividend of $1.27 cents a share on Jan 12, 2024. ALV has a dividend yield of 4.1%.
Over the past five years, ARE has increased its dividend 11 times, and its payout ratio presently sits at 56% of earnings. Check Alexandria Real Estate Equities’ dividend history here.
Alexandria Real Estate Equities, Inc. Dividend Yield (TTM)
Alexandria Real Estate Equities, Inc. dividend-yield-ttm | Alexandria Real Estate Equities, Inc. Quote
Suzano is based in Salvador, Brazil. This Zacks Rank #2 (Buy) company is a producer of eucalyptus pulp as well as paper producers.
On Dec 1, SUZ declared that its shareholders would receive a dividend of 20 cents a share on Jan 18, 2024. SUZ has a dividend yield of 3.1%.
In the past five years, SUZ has increased its dividend two times. Its payout ratio at present sits at 13% of earnings. Check Suzano’s dividend history here.
Suzano S.A. Sponsored ADR Dividend Yield (TTM)
Suzano S.A. Sponsored ADR dividend-yield-ttm | Suzano S.A. Sponsored ADR Quote
Graco is headquartered in Minneapolis, MN. This Zacks Rank #3 company is engaged in designing, manufacturing and marketing equipment and systems used to measure, move, control, spray and dispense fluid as well as powder materials.
On Dec 1, GGG declared that its shareholders would receive a dividend of 26 cents a share on Feb 7, 2024. GGG has a dividend yield of 1.1%.
In the past five years, GGG has increased its dividend six times. Its payout ratio at present sits at 32% of earnings. Check Graco’s dividend history here.
Graco Inc. Price and Consensus
Graco Inc. price-consensus-chart | Graco Inc. Quote
ChoiceOne Financial Services is headquartered in Sparta, MI. This Zacks Rank #3 company offers insurance and investment products through its subsidiary.
On Nov 29, COFS declared that its shareholders would receive a dividend of 27 cents a share on Dec 29, 2023. COFS has a dividend yield of 3.9%.
In the past five years, COFS has increased its dividend five times. Its payout ratio at present sits at 35% of earnings. Check ChoiceOne Financial Services’ dividend history here.
ChoiceOne Financial Services, Inc. Dividend Yield (TTM)
ChoiceOne Financial Services, Inc. dividend-yield-ttm | ChoiceOne Financial Services, Inc. Quote
LaZBoy is headquartered in Monroe, MI. This Zacks Rank #1 (Strong Buy) company is one of the world's leading residential furniture producers, marketing furniture for every room of the home.
On Nov 29, LZB announced that its shareholders would receive a dividend of 20 cents a share on Dec 18, 2023. LZB has a dividend yield of 2%.
Over the past five years, LZB has increased its dividend seven times. Its payout ratio now sits at 22% of earnings. Check LaZBoy’s dividend history here.
La-Z-Boy Incorporated Dividend Yield (TTM)
La-Z-Boy Incorporated dividend-yield-ttm | La-Z-Boy Incorporated Quote
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
Graco Inc. (GGG) : Free Stock Analysis Report
La-Z-Boy Incorporated (LZB) : Free Stock Analysis Report
Alexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis Report
Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report
ChoiceOne Financial Services, Inc. (COFS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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’ confidence recovered as inflation in the United States showed a favorable trend in the past couple of months, thus raising hopes that the Federal Reserve may ease its monetary policy outlook in the near future. On this note, let us look at companies like Alexandria Real Estate Equities ARE, Suzano SUZ, Graco GGG, ChoiceOne Financial Services COFS and LaZBoy LZB that have lately hiked their dividend payouts. This Zacks Rank #3 (Hold) company is an urban office real estate investment trust (REIT) with a particular focus on collaborative life science, agtech and technology campuses.
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Alexandria Real Estate Equities, Inc. Dividend Yield (TTM) Alexandria Real Estate Equities, Inc. dividend-yield-ttm | Alexandria Real Estate Equities, Inc. Quote Suzano is based in Salvador, Brazil. Click to get this free report Graco Inc. (GGG) : Free Stock Analysis Report La-Z-Boy Incorporated (LZB) : Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis Report Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report ChoiceOne Financial Services, Inc. (COFS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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On this note, let us look at companies like Alexandria Real Estate Equities ARE, Suzano SUZ, Graco GGG, ChoiceOne Financial Services COFS and LaZBoy LZB that have lately hiked their dividend payouts. Alexandria Real Estate Equities, Inc. Dividend Yield (TTM) Alexandria Real Estate Equities, Inc. dividend-yield-ttm | Alexandria Real Estate Equities, Inc. Quote Suzano is based in Salvador, Brazil. Click to get this free report Graco Inc. (GGG) : Free Stock Analysis Report La-Z-Boy Incorporated (LZB) : Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis Report Suzano S.A.
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On this note, let us look at companies like Alexandria Real Estate Equities ARE, Suzano SUZ, Graco GGG, ChoiceOne Financial Services COFS and LaZBoy LZB that have lately hiked their dividend payouts. Sponsored ADR Dividend Yield (TTM) Suzano S.A. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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b0c0c529-bd33-4b8f-9786-28cc230e47e2
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714801.0
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2023-12-06 00:00:00 UTC
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Better Growth Vehicle: Invesco QQQ Trust or Vanguard Information Technology Index Fund?
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DCOMP
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https://www.nasdaq.com/articles/better-growth-vehicle%3A-invesco-qqq-trust-or-vanguard-information-technology-index-fund
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Picking stocks capable of outperforming the broader markets consistently is a tremendously difficult task. Scores of academic studies have proved this fact. A recent study, for example, showed that only 2.39% of stocks are responsible for literally all of the gains of the global equity markets over the past 30 years. Worse still, the same study found that one of the most common outcomes among stocks on a global basis is a 95% to 100% loss in under a decade. Ouch.
Highly similar trends have been detected by other researchers dating back to 1926, which is the beginning of the database at the Center for Research in Security Prices. This unfavorable dynamic is the core reason why super investors like Warren Buffett, George Soros, and Peter Lynch, who have dramatically outperformed the S&P 500 index over their careers, are revered on Wall Street and Main Street alike.
Image Source: Getty Images.
Even so, non-professionals do have some remarkably attractive options to grow their capital over time. Low-cost index and exchange-traded funds (ETFs) that focus on technological innovation are prime examples. Fueled by the rapid pace of innovation in the tech sector, many of these funds have dramatically outperformed the S&P 500 over the past two decades, and this trend has been accelerating in recent times due to breakthroughs in machine learning and artificial intelligence.
While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. Both funds sport relatively low expense ratios, are passively managed, and have delivered stellar returns for stakeholders since inception.
Which fund is the better buy right now? Let's compare and contrast these two popular tech-oriented funds to find out.
The case for the QQQ
The QQQ tracks the Nasdaq-100 index, which consists of the 100 largest non-financial companies listed on the Nasdaq stock exchange. The Nasdaq-100 index is heavily weighted toward technology companies. Reflecting this fact, the QQQ's top five holdings are comprised of some of the most innovative tech companies on the planet, namely Apple, Microsoft, Amazon, Nvidia, and Meta Platforms.
Even so, the QQQ is broadly diversified across several economic sectors, although the bulk of holdings are concentrated in the the technology, consumer discretionary, healthcare, telecommunications, industrials, and consumer staples sectors.
Compared to its peer group, the QQQ has a relatively low expense ratio of 0.2%, along with a fairly average yield of 0.62%. It also has a long history of outperforming several benchmarks. Over the prior 10 years, for instance, the QQQ has outperformed the S&P 500 by a staggering 186.2%. Its superb performance stems from its exposure to ultra-fast-growing tech segments such as cloud computing, e-commerce, social media, electric vehicles, and artificial intelligence.
The fund's main risk factor is the premium valuation of many of its top holdings. Wall Street expects top levels of growth from these industry titans, and any setback on this front could trigger a sell-off.
The case for the VGT
The VGT tracks the MSCI US Investable Market Information Technology 25/50 Index. The fund's portfolio consists of 318 companies engaged in various segments of the informational technology space, such as software, communications equipment, internet services, semiconductors, and IT consulting. It has an extremely low expense ratio of 0.10% and offers a yield of 0.63% at current levels. Over the prior 10 years, the VGT has outperformed the S&P 500 by 288.3%.
The VGT's impressive performance can be explained by its exposure to some of the most profitable and dominant companies in the realm of information technology. Its top five holdings currently consist of Apple, Microsoft, Nvidia, Broadcom, and Adobe. These companies have entrenched competitive positions, loyal customers, recurring revenue streams, and high-profit margins. They also benefit from secular trends such as digital payments, software-as-a-service (SaaS), cybersecurity, and cloud computing.
Like the QQQ, the VGT's largest holdings all sport premium valuations, which is an important risk factor prospective investors should bear in mind. However, the VGT has an additional risk in the form of its high concentration in the area of information technology. The QQQ isn't exactly a bastion of diversification, but it is more diversified across a wider range of sectors than the VGT.
Verdict
Both the QQQ and the VGT are excellent choices for growth investors who want to gain exposure to the high-growth tech sector without having to run the risks associated with picking individual stocks. However, some key differences between them may appeal to different types of investors. The QQQ is more broadly diversified than the VGT, but it also comes with a higher expense ratio.
So, the argument truly boils down to one of fit. If you are only going with one tech-heavy fund, the QQQ is probably the better choice because it offers a higher diversification factor. But if you plan to supplement your portfolio with other low-cost growth funds like the Vanguard Growth Index Fund
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. George Budwell has positions in Apple. The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fueled by the rapid pace of innovation in the tech sector, many of these funds have dramatically outperformed the S&P 500 over the past two decades, and this trend has been accelerating in recent times due to breakthroughs in machine learning and artificial intelligence. Its superb performance stems from its exposure to ultra-fast-growing tech segments such as cloud computing, e-commerce, social media, electric vehicles, and artificial intelligence. Verdict Both the QQQ and the VGT are excellent choices for growth investors who want to gain exposure to the high-growth tech sector without having to run the risks associated with picking individual stocks.
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While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe.
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While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. The case for the QQQ The QQQ tracks the Nasdaq-100 index, which consists of the 100 largest non-financial companies listed on the Nasdaq stock exchange. But if you plan to supplement your portfolio with other low-cost growth funds like the Vanguard Growth Index Fund 10 stocks we like better than Invesco QQQ Trust When our analyst team has a stock tip, it can pay to listen.
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While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF.
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45a82128-4202-4d47-879d-64ca8675ee96
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714802.0
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2023-12-06 00:00:00 UTC
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Disney’s Comeback Tale: Is DIS Stock Poised for a Magical Rebound?
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https://www.nasdaq.com/articles/disneys-comeback-tale%3A-is-dis-stock-poised-for-a-magical-rebound
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While Disney (NYSE:DIS) consumers may perceive the company operating as usual, shareholders understand the challenges beneath the surface. There’s plenty to be concerned about from industry strikes to streaming hurdles. Indeed, given the drop we’ve seen in DIS stock from its 2021 peak, it’s clear many concerns are currently priced into this stock.
Accordingly, I’m among the bullish investors on Disney who believe this is a stock worth considering at these levels. There will always be volatility in any individual stock or the market as a whole. However, despite the turmoil, there’s optimism for Disney’s future growth.
Disney operates a robust model as the world’s largest entertainment company. Creative teams produce popular characters, leading to various assets like content, toys, and theme park rides. Disney consistently dominates the box office, owning major film studios like 20th Century and Pixar.
Additionally, the company’s theme park dominance is unparalleled globally. The unique experiences it offers through its expansive parks and exclusive Disney-owned attractions set it apart with minimal competition.
DIS Dividend is Back
Among the most notable catalysts for DIS stock is the company’s reinstating of its cash distributions. Recently, Disney announced a semi-annual dividend of $0.30 per share for the second half of the fiscal year ending in September. The dividend was confirmed in February, and the payout will be on Jan. 10, 2024, for shareholders as of Dec. 11, 2023.
Disney resumed semi-annual dividends at $0.30 per share, marking the first payout in four years. Though modest, with a yield just above 0.6%, it signifies a return to normalcy for the media giant after disruptions from the COVID-19 crisis.
Over the past four fiscal years, Disney’s landscape has transformed. Notably, Disney+ has emerged, contributing about a quarter of total revenue. Despite changes in linear networks and movies, overall top-line results are 28% higher than in fiscal 2019.
Disney’s stock and earnings have dipped since four years ago, with significant losses in Disney+, Hulu, and ESPN+. Despite cost-saving efforts, the return on dividends signals optimism, suggesting Disney aims to make its streaming business profitable by the new fiscal year. The small dividend marks a return to normalcy, making Disney more appealing to income-focused money managers and risk-averse individual investors.
The modest yield is not inconsequential. Indeed, Disney has never been a high-yielding investment. The return to this semi-annual dividend is reminiscent of when Disney stock held a more prominent position in portfolios. If Disney’s recovery continues, there’s ample potential for substantial dividend growth. This isn’t just a dividend; it’s a symbol and a catalyst of what could come.
Disney’s Magic is Back and Will Be Better
Disney shareholders might yearn for a more joyful centennial celebration as the company contends with challenges in advertising, declining linear TV, and streaming losses. Most investors know that DIS stock has trailed the broader market across various timeframes, significantly descending from its historical top-tier stock status.
However, despite the recent challenges for DIS shareholders, analysts express optimism. Rated as one of the top Dow Jones stocks, 19 out of 32 analysts label Disney as Strong Buy, indicating confidence in its potential. With an average target price of $103.71, the stock is anticipated to have approximately 13% upside in the coming year.
Argus Research analyst Joseph Bonner highlights Disney’s competition with Netflix in long-form video streaming and emphasizes the company’s strategic steps toward profitability in its direct-to-consumer ventures under the leadership of CEO Bob Iger.
Smart money in the market shows growing interest in Disney stock. Despite a drop in hedge funds’ list of favorites in Q3, they boosted their net ownership of Disney by over 12%, acquiring 23 million shares during the period.
Important December Dates
Disney opted to skip a significant theatrical release this month, a strategic move after lackluster performances of recent releases. Initially set for December 8, Magazine Dreams was pulled in late October without an official explanation, possibly due to legal issues involving star Jonathan Majors.
Disney has reinstated its semiannual dividend on December 11, with shareholders set to receive the first payout in four years. Despite the modest $0.30 per share every six months, it signals a significant step toward normality as Disney’s revenue reaches record levels and Disney+ aims for profitability in the new fiscal year.
Lastly, the company is expanding its themed attractions overseas on December 20, with the recent debut of a Zootopia-themed area at Shanghai Disneyland featuring a new ride called Zootopia: Hot Pursuit. This move aims to attract new visitors and focuses on bolstering franchise appeal, particularly at its minority-owned Hong Kong and Shanghai parks.
DIS stock enthusiasts, like ValueAct Capital, are placing their confidence in Bob Iger. With a focus on cost-cutting measures, strategic layoffs, and the theme parks valued at $80/share, they anticipate a lucrative streaming strategy, including the $8.61 billion acquisition of Hulu, which will enable a comprehensive streaming package.
Walt Disney Co.’s future rests on Bob Iger’s ongoing adjustments, making it a calculated bet on his leadership.
On the date of publication, Chris MacDonald has a LONG position in DIS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
More From InvestorPlace
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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Disney’s Comeback Tale: Is DIS Stock Poised for a Magical Rebound? 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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Argus Research analyst Joseph Bonner highlights Disney’s competition with Netflix in long-form video streaming and emphasizes the company’s strategic steps toward profitability in its direct-to-consumer ventures under the leadership of CEO Bob Iger. Initially set for December 8, Magazine Dreams was pulled in late October without an official explanation, possibly due to legal issues involving star Jonathan Majors. Lastly, the company is expanding its themed attractions overseas on December 20, with the recent debut of a Zootopia-themed area at Shanghai Disneyland featuring a new ride called Zootopia: Hot Pursuit.
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Despite cost-saving efforts, the return on dividends signals optimism, suggesting Disney aims to make its streaming business profitable by the new fiscal year. The small dividend marks a return to normalcy, making Disney more appealing to income-focused money managers and risk-averse individual investors. However, despite the recent challenges for DIS shareholders, analysts express optimism.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips While Disney (NYSE:DIS) consumers may perceive the company operating as usual, shareholders understand the challenges beneath the surface. Despite cost-saving efforts, the return on dividends signals optimism, suggesting Disney aims to make its streaming business profitable by the new fiscal year. Disney’s Magic is Back and Will Be Better Disney shareholders might yearn for a more joyful centennial celebration as the company contends with challenges in advertising, declining linear TV, and streaming losses.
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Additionally, the company’s theme park dominance is unparalleled globally. DIS Dividend is Back Among the most notable catalysts for DIS stock is the company’s reinstating of its cash distributions. Despite the modest $0.30 per share every six months, it signals a significant step toward normality as Disney’s revenue reaches record levels and Disney+ aims for profitability in the new fiscal year.
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2023-12-06 00:00:00 UTC
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Best Value Stocks to Buy for December 6th
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https://www.nasdaq.com/articles/best-value-stocks-to-buy-for-december-6th-1
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Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 6th:
Stellantis STLA: This company which is an automaker and a mobility provider, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days.
Stellantis N.V. Price and Consensus
Stellantis N.V. price-consensus-chart | Stellantis N.V. Quote
Stellantis has a price-to-earnings ratio (P/E) of 3.55 compared with 5.90 for the industry. The company possesses a Value Score of A.
Stellantis N.V. PE Ratio (TTM)
Stellantis N.V. pe-ratio-ttm | Stellantis N.V. 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 price-to-earnings ratio (P/E) of 7.18 compared with 9.70 for the industry. The company possesses a Value Score of A.
Everest Group, Ltd. PE Ratio (TTM)
Everest Group, Ltd. pe-ratio-ttm | Everest Group, Ltd. Quote
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, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.7% 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 price-to-earnings ratio (P/E) of 15.01 compared with 34.70 for the industry. The company possesses a Value Score of A.
Arcos Dorados Holdings Inc. PE Ratio (TTM)
Arcos Dorados Holdings Inc. pe-ratio-ttm | Arcos Dorados Holdings Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Value 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
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Stellantis N.V. (STLA) : 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 rank and strong value characteristics for investors to consider today, December 6th: Stellantis STLA: This company which is an automaker and a mobility provider, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.6% 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. 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 company possesses a Value Score of A. Everest Group, Ltd. PE Ratio (TTM) Everest Group, Ltd. pe-ratio-ttm | Everest Group, Ltd. Quote 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, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.7% over the last 60 days. The company possesses a Value Score of A. Arcos Dorados Holdings Inc. PE Ratio (TTM) Arcos Dorados Holdings Inc. pe-ratio-ttm | Arcos Dorados Holdings Inc. Quote See the full list of top ranked stocks here. Click to get this free report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Stellantis N.V. (STLA) : 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 Value Score of A. Stellantis N.V. PE Ratio (TTM) Stellantis N.V. pe-ratio-ttm | Stellantis N.V. 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 Value Score of A. Everest Group, Ltd. PE Ratio (TTM) Everest Group, Ltd. pe-ratio-ttm | Everest Group, Ltd. Quote 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, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.7% over the last 60 days. Click to get this free report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Stellantis N.V. (STLA) : 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 rank and strong value characteristics for investors to consider today, December 6th: Stellantis STLA: This company which is an automaker and a mobility provider, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.6% 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 Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Stellantis N.V. (STLA) : 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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714804.0
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2023-12-06 00:00:00 UTC
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AutoZone (AZO) Q1 Earnings & Revenues Surpass Estimates
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https://www.nasdaq.com/articles/autozone-azo-q1-earnings-revenues-surpass-estimates
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AutoZone Inc. AZO reported earnings of $32.55 per share for first-quarter fiscal 2024 (ended Nov 18, 2023), up 18.6% year over year. Earnings surpassed the Zacks Consensus Estimate of $31.01 per share.
Net sales grew 5.1% year over year to $4,190.3 million. The top line also surpassed the Zacks Consensus Estimate of $4,171.9 million.
In the reported quarter, domestic commercial sales totaled $1,092.9 million, up from $1,034.4 million recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) rose by 1.2%.
Gross profit increased to $2,214 million from the prior-year quarter’s figure of $1,994.6 million. Operating profit increased 17.4% year over year to $848.6 million.
AutoZone, Inc. Price, Consensus and EPS Surprise
AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote
Store Opening & Inventory
During the quarter, AutoZone opened 17 new stores and closed one store in the United States, five new stores in Mexico and four stores in Brazil. It exited the quarter with 6,316 stores in the United States, 745 in Mexico and 104 in Brazil. The total store count was 7,165 as of Nov 18, 2023.
Its inventory increased by 3% year over year in the reported quarter, led by new store growth. At quarter-end, the inventory per location was negative $197,000 compared with negative $249,000 a year ago.
Financials and Share Repurchases
As of Nov 18, 2023, AutoZone had cash and cash equivalents of $282.9 million, up from $269.7 million as of Nov 19, 2022.
Its total debt amounted to $8,583.5 million as of Nov 18, 2023, increasing from $6,328.3 million as of Nov 19, 2022.
The company repurchased 580,000 shares of its common stock for $1.5 billion during the fiscal first quarter at an average price of $2,590 per share. At quarter-end, it had $333.1 million remaining under its current share repurchase authorization.
Zacks Rank & Key Picks
AZO currently carries Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, 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 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 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 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
AutoZone, Inc. (AZO) : Free Stock Analysis Report
AB Volvo (VLVLY) : Free Stock Analysis Report
RENAULT (RNLSY) : 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 in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting Zacks Rank #1 (Strong Buy). 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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AutoZone, Inc. Price, Consensus and EPS Surprise AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote Store Opening & Inventory During the quarter, AutoZone opened 17 new stores and closed one store in the United States, five new stores in Mexico and four stores in Brazil. Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting Zacks Rank #1 (Strong Buy). Click to get this free report AutoZone, Inc. (AZO) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report RENAULT (RNLSY) : 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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AutoZone, Inc. Price, Consensus and EPS Surprise AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote Store Opening & Inventory During the quarter, AutoZone opened 17 new stores and closed one store in the United States, five new stores in Mexico and four stores in Brazil. Its inventory increased by 3% year over year in the reported quarter, led by new store growth. Click to get this free report AutoZone, Inc. (AZO) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report RENAULT (RNLSY) : 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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AutoZone Inc. AZO reported earnings of $32.55 per share for first-quarter fiscal 2024 (ended Nov 18, 2023), up 18.6% year over year. Its inventory increased by 3% year over year in the reported quarter, led by new store growth. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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a665c1c5-2e7a-4465-8d85-4e39267a70ed
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714805.0
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2023-12-06 00:00:00 UTC
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Korn/Ferry (KFY) Tops Q2 Earnings and Revenue Estimates
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https://www.nasdaq.com/articles/korn-ferry-kfy-tops-q2-earnings-and-revenue-estimates
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Korn/Ferry (KFY) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 1.04%. A quarter ago, it was expected that this staffing company would post earnings of $0.92 per share when it actually produced earnings of $0.99, delivering a surprise of 7.61%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Korn/Ferry, which belongs to the Zacks Staffing Firms industry, posted revenues of $704 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.81%. This compares to year-ago revenues of $727.85 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.
Korn/Ferry shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 19%.
What's Next for Korn/Ferry?
While Korn/Ferry 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 Korn/Ferry: 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 $0.90 on $663.36 million in revenues for the coming quarter and $3.82 on $2.74 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, Staffing Firms is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Resources Connection (RGP), is yet to report results for the quarter ended November 2023.
This consulting company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -81.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Resources Connection's revenues are expected to be $162.29 million, down 19% 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
Korn/Ferry International (KFY) : Free Stock Analysis Report
Resources Connection, Inc. (RGP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 consulting company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -81.4%.
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Korn/Ferry, which belongs to the Zacks Staffing Firms industry, posted revenues of $704 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.81%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Click to get this free report Korn/Ferry International (KFY) : Free Stock Analysis Report Resources Connection, Inc. (RGP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Korn/Ferry (KFY) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.96 per share. Korn/Ferry, which belongs to the Zacks Staffing Firms industry, posted revenues of $704 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.81%. 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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Korn/Ferry (KFY) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.96 per share. In terms of the Zacks Industry Rank, Staffing Firms is currently in the bottom 33% of the 250 plus Zacks industries. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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7bd0117d-40f8-4684-a265-96d1dd20d82f
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714806.0
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2023-12-06 00:00:00 UTC
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This Flying Car Stock Could Be a Dominant Player In the eVTOL Space
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https://www.nasdaq.com/articles/this-flying-car-stock-could-be-a-dominant-player-in-the-evtol-space
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Archer Aviation (NYSE:ACHR) surged 225% this year. The company recently inked an MOU with Air Chateau, expecting up to 100 Midnight aircraft purchases. Air Chateau paid a $1 million pre-delivery fee, with the potential for an additional $4 million upon a formal agreement. This will have significant implications for ACHR stock.
Indeed, the surge in ACHR stock is notable. That’s particularly true when comparing this company to stocks in the aerospace sector, which have lost about 6.6% on average. This shows that Archer Aviation is outperforming its peers so far this year.
Here’s more on why I think this stock is still worth considering for investors looking for a speculative growth stock to buy right now.
Financials Appear Robust
Despite being a pre-revenue operation, Archer has a financial outlook that remains compelling for speculators and growth investors. Indeed, the company reported no revenue or earnings in Q3, but its operating expenses came in at $46.2 million (down 47% year-over-year).
This led to a net loss of only $51.6 million, while cash and cash equivalents came in at $461.4 million, suggesting the company has plenty of capital to reach its production stage from here. Furthermore, Q4 estimates include GAAP total operating expenses of $100-110 million and non-GAAP operational costs of $75-85 million.
During Q3, Archer Aviation achieved key milestones. The company’s Midnight electric air taxi progressed from hover to full wing-borne, setting the stage for FAA testing within the next 12 months. Archer partnered for air taxi services in the UAE and India. Collaborations include interoperable charging with access to BETA’s electric aviation charging system. The company received an initial payment of approximately $142 million from the U.S. Air Force for recently announced contracts.
Air Taxis Flying to India in 2026
InterGlobe Enterprises, India’s top travel conglomerate, and Archer Aviation Inc. (NYSE: ACHR), a leader in eVTOL aircraft, have signed an MOU to launch an all-electric air taxi service in India, pending regulatory approvals.
InterGlobe’s Rahul Bhatia and Archer’s Nikhil Goel inked an MOU for a proposed partnership to introduce a revolutionary electric air taxi service in India, aiming to enhance urban mobility with safe, low-noise, and cost-competitive flights. The plan involves collaborating with local partners, building vertiport infrastructure, and acquiring up to 200 Archer Midnight aircraft for operations in India.
The Midnight aircraft, a piloted four-passenger eVTOL, is designed for quick, back-to-back flights with minimal charge time, offering a swift 7-minute trip from Connaught Place to Gurugram.
Buy ACHR Stock Now
To be sure, ACHR stock is a promising yet speculative investment for investors seeking companies with robust growth prospects. Pending deals suggest the company is well-positioned to capitalize on the eVTOL market once these aircraft become publicly accessible. The success of the Midnight aircraft reinforces industry trust.
That said, a lot can happen between now and 2025, and it’s unclear how the competitive landscape will evolve. Of course, the spoils in picking trends early typically go to those who invest early, so accepting some inherent risk is likely going to be necessary to capture these stocks’ upside, should the eVTOL space turn into what many think is possible. In this sector, I think Archer Aviation is among the stocks to consider right now, due to its catalysts and production timeline.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post This Flying Car Stock Could Be a Dominant Player In the eVTOL Space 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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InterGlobe’s Rahul Bhatia and Archer’s Nikhil Goel inked an MOU for a proposed partnership to introduce a revolutionary electric air taxi service in India, aiming to enhance urban mobility with safe, low-noise, and cost-competitive flights. The Midnight aircraft, a piloted four-passenger eVTOL, is designed for quick, back-to-back flights with minimal charge time, offering a swift 7-minute trip from Connaught Place to Gurugram. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post This Flying Car Stock Could Be a Dominant Player In the eVTOL Space appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Archer Aviation (NYSE:ACHR) surged 225% this year. The company recently inked an MOU with Air Chateau, expecting up to 100 Midnight aircraft purchases. Pending deals suggest the company is well-positioned to capitalize on the eVTOL market once these aircraft become publicly accessible.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Archer Aviation (NYSE:ACHR) surged 225% this year. Air Taxis Flying to India in 2026 InterGlobe Enterprises, India’s top travel conglomerate, and Archer Aviation Inc. (NYSE: ACHR), a leader in eVTOL aircraft, have signed an MOU to launch an all-electric air taxi service in India, pending regulatory approvals. Buy ACHR Stock Now To be sure, ACHR stock is a promising yet speculative investment for investors seeking companies with robust growth prospects.
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The company recently inked an MOU with Air Chateau, expecting up to 100 Midnight aircraft purchases. Here’s more on why I think this stock is still worth considering for investors looking for a speculative growth stock to buy right now. Air Taxis Flying to India in 2026 InterGlobe Enterprises, India’s top travel conglomerate, and Archer Aviation Inc. (NYSE: ACHR), a leader in eVTOL aircraft, have signed an MOU to launch an all-electric air taxi service in India, pending regulatory approvals.
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2023-12-06 00:00:00 UTC
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enCore Energy to sell 30% of US uranium project to Australia's Boss Energy
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https://www.nasdaq.com/articles/encore-energy-to-sell-30-of-us-uranium-project-to-australias-boss-energy
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Dec 6 (Reuters) - Uranium producer enCore Energy EU.A said on Wednesday it will sell 30% of its Alta Mesa project in South Texas to Australia's Boss Energy BOE.AX for $70 million.
Alta Mesa has an annual production capacity of 1.5 million pounds of U3O8, a uranium compound also known as yellowcake, commonly processed to serve as fuel for nuclear reactors.
Boss Energy will pay $60 million in cash, invest $10 million into enCore shares at $3.90 per share, and loan the company up to 200,000 pounds of yellowcake for enCore's commercial use over the next year.
enCore will use the net proceeds from the deal, which is expected to be completed in February 2024, to accelerate its uranium production pipeline in South Texas and develop other projects.
"The accelerated production plan is designed to take advantage of what is projected to be a very strong uranium market over the next decade," said enCore Executive Chair William Sheriff.
enCore will establish a new unit to hold the Alta Mesa project and it will be jointly owned by the two companies.
(Reporting by Vallari Srivastava and Seher Dareen in Bengaluru; Editing by Devika Syamnath)
((Srivastava.Vallari@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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Alta Mesa has an annual production capacity of 1.5 million pounds of U3O8, a uranium compound also known as yellowcake, commonly processed to serve as fuel for nuclear reactors. enCore will use the net proceeds from the deal, which is expected to be completed in February 2024, to accelerate its uranium production pipeline in South Texas and develop other projects. "The accelerated production plan is designed to take advantage of what is projected to be a very strong uranium market over the next decade," said enCore Executive Chair William Sheriff.
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Dec 6 (Reuters) - Uranium producer enCore Energy EU.A said on Wednesday it will sell 30% of its Alta Mesa project in South Texas to Australia's Boss Energy BOE.AX for $70 million. Boss Energy will pay $60 million in cash, invest $10 million into enCore shares at $3.90 per share, and loan the company up to 200,000 pounds of yellowcake for enCore's commercial use over the next year. enCore will use the net proceeds from the deal, which is expected to be completed in February 2024, to accelerate its uranium production pipeline in South Texas and develop other projects.
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Dec 6 (Reuters) - Uranium producer enCore Energy EU.A said on Wednesday it will sell 30% of its Alta Mesa project in South Texas to Australia's Boss Energy BOE.AX for $70 million. Boss Energy will pay $60 million in cash, invest $10 million into enCore shares at $3.90 per share, and loan the company up to 200,000 pounds of yellowcake for enCore's commercial use over the next year. (Reporting by Vallari Srivastava and Seher Dareen in Bengaluru; Editing by Devika Syamnath) ((Srivastava.Vallari@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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Dec 6 (Reuters) - Uranium producer enCore Energy EU.A said on Wednesday it will sell 30% of its Alta Mesa project in South Texas to Australia's Boss Energy BOE.AX for $70 million. Boss Energy will pay $60 million in cash, invest $10 million into enCore shares at $3.90 per share, and loan the company up to 200,000 pounds of yellowcake for enCore's commercial use over the next year. "The accelerated production plan is designed to take advantage of what is projected to be a very strong uranium market over the next decade," said enCore Executive Chair William Sheriff.
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2023-12-06 00:00:00 UTC
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Teleflex (TFX) Signs Peripheral Access Purchasing Deal With PINC
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Teleflex TFX recently signed the Peripheral Access purchasing agreement with the leading healthcare improvement company, Premier, Inc. PINC. Effective from Dec 1, 2023, the new agreement allows Premier members, at their discretion, to take advantage of special pricing and terms pre-negotiated by Premier for Teleflex’s Peripheral Access products.
Premier has awarded Teleflex a national multi-source agreement for Peripherally Inserted Central Catheters (PICCs), PICC navigation equipment and Midlines. The latest development will boost the company’s Vascular Access segment.
News in Detail
Teleflex strives to deliver vascular access products that are designed to benefit both clinicians and patients while helping to protect against vascular access-related complications. Through its Arrow Peripheral Access products, the company recently refreshed the portfolio to help healthcare providers optimize patient outcomes, reduce catheter colonization of the major central line-associated infection (CLABSI)-causing pathogens and efficiently streamline insertion procedures.
Image Source: Zacks Investment Research
TFX is pleased to continue to support Premier members with these PICC, Midline and Navigation products. The group purchasing agreement includes access to the Arrow VPS Rhythm DLX Device capital equipment portfolio for PICC placements, Arrow PICCs preloaded with the NaviCurve Stylet, Arrow VPS G4 Capital Equipment portfolio for PICC placements, Traditional Arrow PICCs, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic PICCs, Traditional Arrow Midlines, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic Midlines, Arrow Twin Cath Peripheral Catheters and Peripheral Access accessories.
More on the News
Teleflex aims to support vascular access specialists in their efforts to reduce vascular-related complications by offering the world's first antimicrobial and antithrombogenic PICCs and Midlines. Arrowg+ard Blue Advance PICCs and Midlines guards against CLABSI-causing pathogens in areas that are clinically out of reach. This protection lasts while the line is in the patient for at least 30 days.
The next-generation VPS Rhythm DLX Device provides real-time catheter tip location information by using the patient’s cardiac electrical activity. The device features optional ultrasound and works in concert with the Arrow PICC preloaded with the NaviCurve Stylet, providing innovative tip navigation/location technologies. The VPS Rhythm DLX Device with TipTracker Technology eliminates the need for a confirmatory x-ray, helping the clinician insert seamlessly through ultrasound vessel assessment and PICC navigation to final tip confirmation in the lower third of the superior vena cava.
Industry Prospects
Per a Research report, the global vascular access devices market was valued at $1.8 billion in 2022 and is expected to witness a CAGR of 5% by 2030.
Other Developments of Vascular Access
Over the long term, the company is well-placed for dependable growth with category leadership in Central Venous Catheters and Midlines, anticipated share gains with a novel coated PICC portfolio and new product introductions. In the third quarter of 2023, the segment managed to grow 0.3% in revenues amid initiating the voluntary recall for the Arrow Endurance Extended Dwell Peripheral Catheter System.
On the third-quarterearnings callheld last month, the company stated that the initial launch activities for the next-generation Arrow VPS Rhythm DLX navigation device and the new Arrow PICC pre-loaded with the NaviCurve Stylet continue to generate a positive customer response and system placements. In August 2023, TFX announced the release of the Arrow ErgoPack Complete Kits with Hemodialysis and Large Bore catheters in the United States. The expanded kit configuration is intended to streamline insertion workflow for clinicians and provide more options to suit their needs.
Price Performance
In the past six months, TFX shares have decreased 3.5% compared with the industry’s decline of 6.2%.
Zacks Rank and Key Picks
Teleflex currently carries a Zacks Rank #3 (Hold).
Two better-ranked stocks in the broader medical space are Haemonetics HAE and Insulet PODD. While Haemonetics presently carries 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 decreased 1% in the past year. Earnings estimates for Haemonetics have increased from $3.86 to $3.89 in 2023 and $4.11 to $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.85 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 >>
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Haemonetics Corporation (HAE) : Free Stock Analysis Report
Teleflex Incorporated (TFX) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Premier, Inc. (PINC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Through its Arrow Peripheral Access products, the company recently refreshed the portfolio to help healthcare providers optimize patient outcomes, reduce catheter colonization of the major central line-associated infection (CLABSI)-causing pathogens and efficiently streamline insertion procedures. The VPS Rhythm DLX Device with TipTracker Technology eliminates the need for a confirmatory x-ray, helping the clinician insert seamlessly through ultrasound vessel assessment and PICC navigation to final tip confirmation in the lower third of the superior vena cava. Other Developments of Vascular Access Over the long term, the company is well-placed for dependable growth with category leadership in Central Venous Catheters and Midlines, anticipated share gains with a novel coated PICC portfolio and new product introductions.
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The group purchasing agreement includes access to the Arrow VPS Rhythm DLX Device capital equipment portfolio for PICC placements, Arrow PICCs preloaded with the NaviCurve Stylet, Arrow VPS G4 Capital Equipment portfolio for PICC placements, Traditional Arrow PICCs, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic PICCs, Traditional Arrow Midlines, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic Midlines, Arrow Twin Cath Peripheral Catheters and Peripheral Access accessories. On the third-quarterearnings callheld last month, the company stated that the initial launch activities for the next-generation Arrow VPS Rhythm DLX navigation device and the new Arrow PICC pre-loaded with the NaviCurve Stylet continue to generate a positive customer response and system placements. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report Teleflex Incorporated (TFX) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Premier, Inc. (PINC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The group purchasing agreement includes access to the Arrow VPS Rhythm DLX Device capital equipment portfolio for PICC placements, Arrow PICCs preloaded with the NaviCurve Stylet, Arrow VPS G4 Capital Equipment portfolio for PICC placements, Traditional Arrow PICCs, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic PICCs, Traditional Arrow Midlines, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic Midlines, Arrow Twin Cath Peripheral Catheters and Peripheral Access accessories. On the third-quarterearnings callheld last month, the company stated that the initial launch activities for the next-generation Arrow VPS Rhythm DLX navigation device and the new Arrow PICC pre-loaded with the NaviCurve Stylet continue to generate a positive customer response and system placements. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report Teleflex Incorporated (TFX) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Premier, Inc. (PINC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The group purchasing agreement includes access to the Arrow VPS Rhythm DLX Device capital equipment portfolio for PICC placements, Arrow PICCs preloaded with the NaviCurve Stylet, Arrow VPS G4 Capital Equipment portfolio for PICC placements, Traditional Arrow PICCs, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic PICCs, Traditional Arrow Midlines, Arrowg+ard Blue Advance Antimicrobial/Antithrombogenic Midlines, Arrow Twin Cath Peripheral Catheters and Peripheral Access accessories. Estimates for Insulet’s 2023 earnings per share have increased from $1.85 to $1.91 in the past 30 days. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2812504c-4a9b-447a-8a08-40957805ea47
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714809.0
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2023-12-06 00:00:00 UTC
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1 Electric Vehicle Stock to Buy Hand Over Fist in December
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DCOMP
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https://www.nasdaq.com/articles/1-electric-vehicle-stock-to-buy-hand-over-fist-in-december
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nan
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nan
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If you're looking to invest in electric vehicles (EVs), there's one glaring option available in the market: Tesla (NASDAQ: TSLA). While other up-and-coming EV makers and legacy companies are starting their transition to an electric fleet, Tesla still stands above its competition in terms of investment quality. It's not a perfect investment, but Tesla is still the top EV stock to buy right now. Here's why.
Its margins have been under pressure recently
Tesla is far and away the leader in the U.S. EV market. In the third quarter, over 313,000 EVs were sold, up nearly 50% from last year. Of those EVs, about half were Teslas. This shows Tesla's dominance, and a new product could widen its lead.
With Cybertruck deliveries now beginning, Tesla has another revenue stream that will be activated after investing a lot of money into its EV truck line. It could also help reverse a concerning trend for Tesla investors.
One of Tesla's biggest advantages over its legacy rivals was its gross margin. Tesla's input costs were much lower than those of its competitors, so it could produce a greater gross profit. However, now that Tesla has slashed prices to stay competitive with other options in a rising interest rate environment, its gross margin has deteriorated to the point where it's nearly in line with traditional automakers.
TSLA Gross Profit Margin (Quarterly) data by YCharts
However, some of the highest-margin vehicles for makers like General Motors and Ford Motor Company are their pickup trucks, which often have gross profits over $10,000 per vehicle. This far outweighs the margins on typical sedans, making it worth paying attention to what kind of profit margins investors can expect from the Cybertruck.
If Tesla can pull off superior margins with its truck, it will receive a much-needed gross margin boost. But even if it doesn't, having a strong pickup offering is key for competing in the U.S. market, as the top three selling vehicles so far in 2023 are the pickup lines from the Big Three in Detroit: Ram, Chevy Silverado, and the Ford F-series. Now that Tesla has a viable option, it could capture some market share as the other three introduce their EV pickups.
But even without pickups in its lineup, Tesla is still doing fine. In Q3, its production numbers were up 18%, and deliveries increased by 27%. But because of price cuts, its revenue only rose by 9% while net income declined by 44%.
Investors will need to keep an eye on prices, but if Tesla can raise prices once interest rates rise, it will clearly demonstrate whether the company has pricing power. If Tesla can exercise this practice, it will solidify the stock as a solid investment. Additionally, Tesla has the upside of full self-driving (FSD) capability on a subscription product that could bring in massive revenue once it's fully built out.
Tesla's stock is incredibly expensive
But many of those points are in the future; what about now? An investment in Tesla is an investment in the future; there's no way around it. The stock's current valuation makes no sense to investors with a short-term mindset.
TSLA PE Ratio data by YCharts
Tesla's 77 times trailing and 75 times forward earnings are incredibly high valuations to pay for any company, let alone an automaker. So if you're looking for a short-term bargain, Tesla isn't your stock.
However, if you think it can raise prices once interest rates decline, capture a chunk of the American truck market, and deploy FSD or other long-shot Tesla technologies, then the valuation makes more sense. Tesla is a five-year investment -- at minimum -- unless something drastic changes with the company.
I still think Tesla is the top EV stock in the market, but you must have a long-term mindset if you're going to invest in it.
Find out why Tesla is one of the 10 best stocks to buy now
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*Stock Advisor returns as of November 29, 2023
Keithen Drury has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While other up-and-coming EV makers and legacy companies are starting their transition to an electric fleet, Tesla still stands above its competition in terms of investment quality. However, now that Tesla has slashed prices to stay competitive with other options in a rising interest rate environment, its gross margin has deteriorated to the point where it's nearly in line with traditional automakers. However, if you think it can raise prices once interest rates decline, capture a chunk of the American truck market, and deploy FSD or other long-shot Tesla technologies, then the valuation makes more sense.
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If you're looking to invest in electric vehicles (EVs), there's one glaring option available in the market: Tesla (NASDAQ: TSLA). TSLA Gross Profit Margin (Quarterly) data by YCharts However, some of the highest-margin vehicles for makers like General Motors and Ford Motor Company are their pickup trucks, which often have gross profits over $10,000 per vehicle. However, if you think it can raise prices once interest rates decline, capture a chunk of the American truck market, and deploy FSD or other long-shot Tesla technologies, then the valuation makes more sense.
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If you're looking to invest in electric vehicles (EVs), there's one glaring option available in the market: Tesla (NASDAQ: TSLA). It's not a perfect investment, but Tesla is still the top EV stock to buy right now. I still think Tesla is the top EV stock in the market, but you must have a long-term mindset if you're going to invest in it.
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TSLA Gross Profit Margin (Quarterly) data by YCharts However, some of the highest-margin vehicles for makers like General Motors and Ford Motor Company are their pickup trucks, which often have gross profits over $10,000 per vehicle. An investment in Tesla is an investment in the future; there's no way around it. I still think Tesla is the top EV stock in the market, but you must have a long-term mindset if you're going to invest in it.
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7fd5da61-d086-4543-a5f2-78bc4bc97208
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714810.0
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2023-12-06 00:00:00 UTC
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Bargain Buys: 7 Undervalued Stocks Set to Soar
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DCOMP
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https://www.nasdaq.com/articles/bargain-buys%3A-7-undervalued-stocks-set-to-soar
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amidst the market volatility, discerning investors are often on the lookout for valuable opportunities in wagering on undervalued stocks. Moreover, the recent market rebound has opened the door to multiple attractive bets, offering robust upside ahead of a sustained bull run next year.
However, identifying the best undervalued stocks requires a nuanced approach. It’s not just about spotting stocks with attractive pricing metrics. Although these metrics can’t be discounted, a comprehensive evaluation must include assessing a stock’s current position and its potential future trajectory, ensuring a well-rounded investment decision.
Therefore, skillfully selecting undervalued stocks in volatile markets offers significant opportunities. This is evidenced by the S&P 500’s growth post-2008 crisis, where a $100 investment would have given a 344.05% return. Such historical trends underscore the potential of these investments, making these stocks a particularly promising choice for discerning investors.
Undervalued Stocks: SharkNinja (SN)
Source: shutterstock.com/Digital Genetics
SharkNinja (NYSE:SN), a standout in the consumer discretionary sector, has made impressive strides in the stock market since its late-summer debut. Since its listing, SharkNinja’s stock has surged remarkably, nearly doubling in value, bolstered by consistent annual sales growth of 20% since 2008 across a diverse product range, including vacuums, coffee makers, and others.
In its latest financial showcase, SharkNinja reported exceptional performance, with revenues soaring to $1.07 billion. This remarkable achievement is further highlighted by a 34% jump in adjusted net income to $133 million. Underpinning these financial triumphs is SharkNinja’s growing investment in research and development, rising by 12.5% in 2023, underscoring its dedication to innovation and expansion into new product categories and markets.
However, the real allure of SharkNinja as a top stock choice lies in its fundamental undervaluation. Wall Street analysts endorse SharkNinja with a ‘Buy’ rating, setting an average price target at $60, signaling a potential 40% bump from current price levels.
Electric Arts Incorporated (EA)
Source: Konstantin Savusia / Shutterstock.com
Electronic Arts Incorporated (NASDAQ:EA) stands out in the gaming sector with its strong financials and market resilience. Its stock has risen 12.69% year-to-date, with analysts forecasting a promising future, predicting a 12-month price increase to $162.
Moreover, EA’s market position strengthened recently, with its shares jumping 7.6%, surpassing the S&P 500 since releasing its last earnings report. This surge resulted from a notable 37.4% increase in yearly earnings to $1.47 per share, driven by new releases and robust user engagement. These factors collectively underscore EA’s thriving presence in the gaming industry. Furthermore, EA’s strategic NFL licensing, a key to its gaming dominance, has notably elevated the Madden franchise. Moreover, bookings for Madden NFL 24 rose by 6%, as it wrapped up its its second quarter with a comfortable beat across both lines. It’s not the cheapest of the stocks in its category, but it’s trading at almost an 11% discount to its 5-year earnings multiple.
Undervalued Stocks: PayPal (PYPL)
PayPal (NASDAQ:PYPL) is a compelling choice for investors due to its undervalued status and a shift towards more efficient operations under new CEO Alex Chriss. His strategic cost-cutting measures are setting the stage for enhanced profitability and are likely to attract major investors, potentially driving up the stock value.
Moreover, in its third quarter, PayPal showcased robust performance with a total payment volume of $387.7 billion, an 8% increase in net revenues, and a notable 20% rise in non-GAAP EPS. The company is actively pushing for further revenue growth in Q4 and plans to buy back $5 billion in shares in fiscal year 2023.
Adding to its appeal, PayPal’s venture into the cryptocurrency world with PayPal USD, a regulated stablecoin, marks a significant advancement. Available on Venmo, PYUSD is quickly gaining traction for efficient online transactions. Furthermore, with an average price target of $74.29, indicating a potential 24% rise from TipRanks analysts, PayPal stands out as a promising investment.
General Electric (GE)
Source: Sundry Photography / Shutterstock.com
General Electric (NYSE:GE) has been a standout performer, with its stock climbing an impressive 84% over the past year. This surge underscores GE’s success in both revenue and earnings during the third quarter, marking a notable transformation. The company’s momentum is further emphasized by its third upward revision of the full-year guidance, showcasing its strategic success and growing dynamism.
The company’s earnings specifics are impressive, with a Non-GAAP EPS of 82 cents, surpassing forecasts by 26 cents. Moreover, GE reported a substantial revenue jump to $17.3 billion, a 19.6% increase year-over-year (YOY), affirming its strong financial health.
Furthermore, GE’s strategy to streamline its operations is yielding results, notably through the spinoff of its healthcare business and the establishment of Aerospace and Vernova as independent entities. These strategic moves are sharpening GE’s focus and promise a bright future. The stock currently holds a moderate buy rating from TipRanks analysts, indicating a potential 9% upside from its present value.
Undervalued Stocks: Torm (TRMD)
Source: Igor Karasi / Shutterstock.com
Torm (NASDAQ:TRMD) is steering its way to success by focusing on premium trades and regions. Their integrated platform, One Torm, plays a pivotal role in bolstering strong customer support and securing access to favorable cargo combinations. This strategy is crucial for optimizing their fleet’s positioning and maximizing earning potential.
Demonstrating its financial prowess, the company has achieved historically high TCE earnings for the first nine months of 2023, outdoing the previous year by 26%. This remarkable performance has enabled TORM to reward its shareholders generously with a substantial dividend distribution totaling $123.2 million.
Furthermore, TipRanks analysts are casting a favorable light on TORM, giving it a moderate buy rating with an upside potential of 37.28%, setting their sights on an average price target of $39 from the current price of $28.4. This forecast indicates a wave of optimism about the company’s future.
Opera (OPRA)
Source: bangoland / Shutterstock.com
Opera (NASDAQ:OPRA) is strategically advancing in the tech world, specifically targeting high-value users in Western markets. This approach has led to an 11% increase in Average Revenue Per User (ARPU) quarter-over-quarter and a notable 24% rise YOY, achieving $1.31. Boosting this growth, advertising revenue surged by 24%, contributing 59% to Opera’s total revenue.
Moreover, Opera is intensifying its focus on Aria, an AI-driven feature within its browsers. Aria’s advanced composer architecture taps into various language models, boosting accuracy and offering real-time web insights. This innovative approach is set to transform browsing experiences, aiming to elevate user engagement and propel Opera’s technological advancement.
Furthermore, OPRA is fueling revenue growth by leveraging its massive user base, offering advertisers global reach through real-time bidding. This system efficiently processes high ad requests, significantly boosting brand visibility and return on investment. Additionally, TipRanks analysts suggest a strong buy with an upside potential of 82.46%, underscoring a bright financial forecast for Opera in the tech market.
Luminar Technologies (LAZR)
Source: JHVEPhoto/shutterstock.com
Luminar Technologies (NASDAQ:LAZR) is at the forefront of transforming the autonomous vehicle industry with its innovative LiDAR technology. The vehicle autonomy and safety market is on a swift upward trajectory. With forecasts suggesting an impressive surge to a $150 billion valuation by 2030, LAZR’s impactful contributions are becoming increasingly essential.
Financially, Luminar is on a strong trajectory. The company reported a robust 33% YOY increase in revenues, reaching $17 million. More striking is its forward revenue growth estimate of 80.27%, dramatically surpassing the sector median of 5.53% by over 1,300%.
Additionally, LAZR is pioneering in the realm of flying cars through its partnership with Airbus (OTCMKTS:EADSY). CEO Austin Russell’s vision to apply automotive advancements to aviation signifies LAZR’s innovative spirit. With TipRanks analysts giving LAZR a moderate buy rating and a notable 164% upside potential, the company stands out as a forward-thinking player in tech stocks.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post Bargain Buys: 7 Undervalued Stocks Set to Soar 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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Although these metrics can’t be discounted, a comprehensive evaluation must include assessing a stock’s current position and its potential future trajectory, ensuring a well-rounded investment decision. Since its listing, SharkNinja’s stock has surged remarkably, nearly doubling in value, bolstered by consistent annual sales growth of 20% since 2008 across a diverse product range, including vacuums, coffee makers, and others. 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 Bargain Buys: 7 Undervalued Stocks Set to Soar appeared first on InvestorPlace.
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Electric Arts Incorporated (EA) Source: Konstantin Savusia / Shutterstock.com Electronic Arts Incorporated (NASDAQ:EA) stands out in the gaming sector with its strong financials and market resilience. Opera (OPRA) Source: bangoland / Shutterstock.com Opera (NASDAQ:OPRA) is strategically advancing in the tech world, specifically targeting high-value users in Western markets. Additionally, TipRanks analysts suggest a strong buy with an upside potential of 82.46%, underscoring a bright financial forecast for Opera in the tech market.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amidst the market volatility, discerning investors are often on the lookout for valuable opportunities in wagering on undervalued stocks. Undervalued Stocks: SharkNinja (SN) Source: shutterstock.com/Digital Genetics SharkNinja (NYSE:SN), a standout in the consumer discretionary sector, has made impressive strides in the stock market since its late-summer debut. With TipRanks analysts giving LAZR a moderate buy rating and a notable 164% upside potential, the company stands out as a forward-thinking player in tech stocks.
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This surge resulted from a notable 37.4% increase in yearly earnings to $1.47 per share, driven by new releases and robust user engagement. Boosting this growth, advertising revenue surged by 24%, contributing 59% to Opera’s total revenue. Additionally, TipRanks analysts suggest a strong buy with an upside potential of 82.46%, underscoring a bright financial forecast for Opera in the tech market.
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2528a247-0bf1-45bf-a01c-5242be80df2c
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714811.0
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2023-12-06 00:00:00 UTC
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Enphase (ENPH) Unveils Its Enphase Energy System in Italy
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DCOMP
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https://www.nasdaq.com/articles/enphase-enph-unveils-its-enphase-energy-system-in-italy
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nan
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nan
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Enphase Energy, Inc. ENPH recently introduced its most powerful home energy system to date, the Enphase Energy System, in Italy. This launch should enhance ENPH’s footprint in the rapidly expanding European solar market.
The new Enphase Energy System is equipped with the new IQ Battery 5P and IQ8 microinverters. The shipment for its new IQ8 microinverter is projected to begin this month, while that of IQ Battery 5P is expected in January 2024.
Significance of the New Energy System
The IQ Battery 5P has a capacity of 5kWh and the IQ8 microinverters provide peak AC power up to 384 watts (W). Configured with these equipment, the Enphase Energy system is functional in the range of 5-60 kWh.
With increased power, resilient wired communication and an improved commissioning experience, the system will ease the installation process for customers and reduce their electricity costs.
The new microinverters, IQ8MC, IQ8AC and IQ8HC, which feature a peak output power of 330 W, 366 W and 384 W, respectively, are designed to pair seamlessly with a full range of solar modules up to 560 W DC. These microinverters can manage a continuous direct current of 14 amperes, thereby supporting high-powered solar modules through increased energy harvesting.
ENPH’s Prospects in European Solar Market
Europe’s solar market provides significant growth opportunities, primarily driven by increased investment and deployment of solar plants and various government policies favoring the development. Per a report from SolarPower Europe, the 27 EU Member States saw 41.4 GW of new solar PV capacity connected to their grids in 2022, indicating a 47% increase from the 2021 level.
Enphase experienced strong sales of microinverters in Europe in the third quarter of 2023. During the past two months, it has expanded its shipment of IQ8 microinverters and IQ batteries to Austria, Switzerland and Greece. On Oct 2, 2023, the company launched the IQ Combiner 3P in nine European countries to dramatically improve the experience of installing the Enphase Energy System.
Looking ahead, the report estimates more than 50 GW deployment level in 2023. It also expects a deployment of 85 GW in 2026 (more than double the figure recorded in 2022). Considering such abounding growth prospects offered by the European solar market and the latest introduction of Enphase Energy System in Italy, we may expect ENPH to witness solid revenue growth prospects from the European region in the coming quarters.
Peers to Benefit
Other prominent players like Canadian Solar Inc. CSIQ, SolarEdge Technologies Inc. SEDG and Emeren Group Ltd. SOL are also expanding their footprint in the European region to reap the benefits of the solar market’s prospects here.
Canadian Solar has a presence in Germany, the U.K., Poland, Spain, Italy, France and the Netherlands. As of September 2023, the company had 3,756 MW of early-stage pipeline in the EMEA region. Its subsidiary, CSI Energy Storage, inked a supply agreement with Cero Generation and Enso Energy in Europe during the same time. The deal involves the delivery of 49.5 MW/99 MWh of turnkey battery energy storage solutions.
The Zacks Consensus Estimate for CSIQ’s 2023 earnings per share (EPS) implies growth of 7% from the 2022 reported figure. The Zacks Consensus Estimate for 2023 sales implies an improvement of 1.2% from the prior-year reported number.
SolarEdge has a strong presence in Germany, the U.K. and Switzerland. It expects the momentum to continue to grow in Europe, particularly in Germany, where installation activity is anticipated to rise from 7.5 GW in 2022 to 10 GW in 2024. In June 2023, SEDG launched its Commercial Storage System at Intersolar Europe, providing 58kWh of battery capacity.
SEDG has a long-term (three-to-five years) earnings growth rate of 18.7%. Its shares have risen 11.9% in the past month.
Emeren has its presence in Europe since 2012. As of September 2023, it had 1,503 MW of advanced-stage project pipeline, 6,440 MWh of advanced-stage storage pipeline and 60 MW of IPP assets. On Nov 9, 2023, Emeren completed the sale of its state-of-the-art portfolio, comprising five Battery Energy Storage Systems in Italy, to Matrix Renewables.
The Zacks Consensus Estimate for SOL’s 2023 sales implies an increase of 37% from the 2022 reported figure. The Zacks Consensus Estimate for fourth-quarter 2023 earnings implies an improvement of 33.3% from the prior-year quarter’s recorded number.
Price Performance
In the past three months, shares of ENPH have lost 10.6% compared with the industry’s 22.8% decline.
Image Source: Zacks Investment Research
Zacks Rank
Enphase currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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
Emeren Group Ltd. Sponsored ADR (SOL) : Free Stock Analysis Report
Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With increased power, resilient wired communication and an improved commissioning experience, the system will ease the installation process for customers and reduce their electricity costs. Per a report from SolarPower Europe, the 27 EU Member States saw 41.4 GW of new solar PV capacity connected to their grids in 2022, indicating a 47% increase from the 2021 level. On Oct 2, 2023, the company launched the IQ Combiner 3P in nine European countries to dramatically improve the experience of installing the Enphase Energy System.
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ENPH’s Prospects in European Solar Market Europe’s solar market provides significant growth opportunities, primarily driven by increased investment and deployment of solar plants and various government policies favoring the development. Peers to Benefit Other prominent players like Canadian Solar Inc. CSIQ, SolarEdge Technologies Inc. SEDG and Emeren Group Ltd. SOL are also expanding their footprint in the European region to reap the benefits of the solar market’s prospects here. Sponsored ADR (SOL) : Free Stock Analysis Report Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Enphase Energy, Inc. ENPH recently introduced its most powerful home energy system to date, the Enphase Energy System, in Italy. Considering such abounding growth prospects offered by the European solar market and the latest introduction of Enphase Energy System in Italy, we may expect ENPH to witness solid revenue growth prospects from the European region in the coming quarters. Sponsored ADR (SOL) : Free Stock Analysis Report Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The new Enphase Energy System is equipped with the new IQ Battery 5P and IQ8 microinverters. The Zacks Consensus Estimate for CSIQ’s 2023 earnings per share (EPS) implies growth of 7% from the 2022 reported figure. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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a7cc7393-3de2-4a00-8110-762b3e028573
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714812.0
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2023-12-06 00:00:00 UTC
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Here's Why Hold Strategy is Apt for Bread Financial (BFH) Now
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DCOMP
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https://www.nasdaq.com/articles/heres-why-hold-strategy-is-apt-for-bread-financial-bfh-now
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nan
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nan
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Bread Financial Holdings, Inc. BFH has been in investors’ good books because of higher retained earnings, active risk management, solid consumer spending and capital deployment.
Growth Projections
The Zacks Consensus Estimate for Bread Financial’s 2023 earnings is pegged at $12.98 per share, indicating a 190.38% increase from the year-ago reported figure, driven by 11% higher revenues of $4.25 billion.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 has moved up nearly 0.4% in the past 60 days, reflecting investors’ optimism.
Zacks Rank
Bread Financial currently carries a Zacks Rank #3 (Hold).
Earnings Surprise History
BFH surpassed earnings estimates in each of the last four quarters, the average being 139.93%.
Style Score
Bread Financial has a favorable VGM Score of A. The VGM Score helps identify stocks with the most attractive value, best growth and most promising momentum.
Return on Equity
Bread Financial’s return on average equity of 24.8% in the third quarter of 2023 expanded 200 basis points year over year. Return on equity is a profitability measure that shows how efficiently a company is utilizing shareholders’ money.
Business Tailwinds
The credit sales performance is expected to improve on the back of solid consumer spending. With the continued growth of credit sales, average loans are likely to increase. With new partner additions and holiday spending, BFH continues to expect strong credit sales.
Credit metrics should remain strong with delinquency and net loss rates remaining below the historical averages. Given disciplined, proactive risk management and strong consumer payment behavior, net loss rates are expected to remain low.
Capital ratios are likely to improve on the back of a rise in retained earnings, thus providing flexibility to continue to support profitable growth.
Bread Financial boasts a strong balance sheet by virtue of its solid cash position and has sufficient cash reserves to meet debt obligations.
BFH remains focused on returning value to its shareholders. It uses share repurchases as a tool to mitigate the adverse impact of foreign exchange and intends to focus more on share buybacks and mergers and acquisitions.
Key Concerns
Bread Financial expects fourth-quarter expenses to be higher than the third quarter, attributable to increased seasonal marketing and employee benefits costs. It also estimates depreciation and amortization expenses to a run rate below $25 million per quarter as the capitalized software development project reached the end of its useful life in the second quarter of 2023.
Price Performance
In the past year, the stock has lost 22.9% against the industry’s rise of 17%. Strong fundamentals of Bread Financial are likely to help the stock bounce back.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked financial transaction service providers are Shift4 Payments, Inc. FOUR, OppFi Inc. OPFI and FirstCash Holdings, Inc. FCFS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shift4 Payments’ earnings surpassed estimates in each of the last four quarters, the average being 25.03%. In the past year, FOUR has gained 45.6%.
The Zacks Consensus Estimate for FOUR’s 2023 and 2024 earnings indicates a respective year-over-year increase of 110% and 28.9%.
OppFi earnings surpassed estimates in three of the last four quarters and missed in one, the average being 383.33%. In the past year, OPFI has gained 64.3%.
The Zacks Consensus Estimate for OPFI’s 2023 and 2024 earnings indicates a respective year-over-year increase of 700% and 47.9%.
FirstCash’s earnings surpassed estimates in each of the last four quarters, the average being 7.86%. In the past year, FCFS has gained 26.2%.
The Zacks Consensus Estimate for FCFS’ 2023 and 2024 earnings indicates a respective year-over-year increase of 13.1% and 21.8%.
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
FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
OppFi Inc. (OPFI) : Free Stock Analysis Report
Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bread Financial Holdings, Inc. BFH has been in investors’ good books because of higher retained earnings, active risk management, solid consumer spending and capital deployment. Growth Projections The Zacks Consensus Estimate for Bread Financial’s 2023 earnings is pegged at $12.98 per share, indicating a 190.38% increase from the year-ago reported figure, driven by 11% higher revenues of $4.25 billion. Key Concerns Bread Financial expects fourth-quarter expenses to be higher than the third quarter, attributable to increased seasonal marketing and employee benefits costs.
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Bread Financial Holdings, Inc. BFH has been in investors’ good books because of higher retained earnings, active risk management, solid consumer spending and capital deployment. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked financial transaction service providers are Shift4 Payments, Inc. FOUR, OppFi Inc. OPFI and FirstCash Holdings, Inc. FCFS, each sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report OppFi Inc. (OPFI) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Growth Projections The Zacks Consensus Estimate for Bread Financial’s 2023 earnings is pegged at $12.98 per share, indicating a 190.38% increase from the year-ago reported figure, driven by 11% higher revenues of $4.25 billion. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked financial transaction service providers are Shift4 Payments, Inc. FOUR, OppFi Inc. OPFI and FirstCash Holdings, Inc. FCFS, each sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report OppFi Inc. (OPFI) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Growth Projections The Zacks Consensus Estimate for Bread Financial’s 2023 earnings is pegged at $12.98 per share, indicating a 190.38% increase from the year-ago reported figure, driven by 11% higher revenues of $4.25 billion. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked financial transaction service providers are Shift4 Payments, Inc. FOUR, OppFi Inc. OPFI and FirstCash Holdings, Inc. FCFS, 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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c197e8db-ace2-4b0c-98eb-dd4587482153
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714813.0
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2023-12-06 00:00:00 UTC
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Buy These 5 Low Price-to-Book Value Stocks in December
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DCOMP
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https://www.nasdaq.com/articles/buy-these-5-low-price-to-book-value-stocks-in-december
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nan
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nan
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The price-to-book (P/B) ratio is widely favored by value investors for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book value.
The P/B ratio is calculated as below:
P/B ratio = market price per share/book value of equity per share
The P/B ratio reflects how many times book value investors are ready to pay for a share. Therefore, if the share price is $10 and the book value of equity is $5, investors are ready to pay two times the book value. Ideally, a P/B value under 1.0 is considered good, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value under 3.0.
The P/B ratio helps to identify low-priced stocks with high growth prospects. Solo Brands DTC, Park Hotels & Resorts PK, Flex Ltd. FLEX, Centene CNC and Deluxe Corporation DLX are some such stocks.
Now, let us understand the concept of book value.
What is Book Value?
There are several ways by which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to the common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from the total assets to determine book value.
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening Parameters
Price to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are the five picks that qualified the screening:
Headquartered in Southlake, TX, Solo Brands is a direct-to-consumer platform, which offers outdoor and lifestyle-branded products directly to consumers, primarily online. Its products are camp stoves under the Solo Stove Lite brand name; fire pits under the Solo Stove brand name; kayaks under the Oru brand name; paddle boards under the ISLE brand name; and storage solutions for fire pits, firewood and other accessories.
Solo Brandscurrently has a Zacks Rank #2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Solo Brandshas a projected 3-5-year EPS growth rate of 11.65%.
Mc Lean, VA-based Park Hotels & Resorts is a lodging real estate company. The company has a diverse portfolio of iconic and market-leading hotels and resorts in the United States and the international markets.
PK presently sports a Zacks Rank #1 and has a Value Score of A. The company has a projected 3-5-year EPS growth rate of 7.95%.
Singapore-based Flex offers advanced manufacturing solutions and supply-chain services throughout the product lifecycle development, including fulfillment, after-market support and circular economy solutions. Flex serves companies of all sizes in various industries and end markets, including medical, automotive, industrial, home appliances, capital equipment, energy, telecom, networking, enterprise computing, wearables, connected living and mobile.
FLEX currently flaunts a Zacks Rank #1 and has a Value Score of A. PK has a projected 3-5-year EPS growth rate of 12.39%.
Centene is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
Centene has a projected 3-5-year EPS growth rate of 12.83%. CNC currently has a Zacks Rank #2 and a Value Score of A.
Headquartered in Minneapolis, MN, Deluxe Corp provides technology-enabled solutions to enterprises, small businesses and financial institutions in the United States, Canada, Australia, South America and Europe.
Deluxe Corp has a Zacks Rank #2 and a Value Score of A at present. DLX has a projected 3–5-year EPS growth rate of 12.0%.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Zacks 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
Centene Corporation (CNC) : Free Stock Analysis Report
Deluxe Corporation (DLX) : Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report
Solo Brands, Inc. (DTC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Screening Parameters Price to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain. Here are the five picks that qualified the screening: Headquartered in Southlake, TX, Solo Brands is a direct-to-consumer platform, which offers outdoor and lifestyle-branded products directly to consumers, primarily online. CNC currently has a Zacks Rank #2 and a Value Score of A. Headquartered in Minneapolis, MN, Deluxe Corp provides technology-enabled solutions to enterprises, small businesses and financial institutions in the United States, Canada, Australia, South America and Europe.
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The P/B ratio is calculated as below: P/B ratio = market price per share/book value of equity per share The P/B ratio reflects how many times book value investors are ready to pay for a share. Solo Brands DTC, Park Hotels & Resorts PK, Flex Ltd. FLEX, Centene CNC and Deluxe Corporation DLX are some such stocks. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report Deluxe Corporation (DLX) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report Solo Brands, Inc. (DTC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The P/B ratio is calculated as below: P/B ratio = market price per share/book value of equity per share The P/B ratio reflects how many times book value investors are ready to pay for a share. Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report Deluxe Corporation (DLX) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report Solo Brands, Inc. (DTC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The P/B ratio is calculated as below: P/B ratio = market price per share/book value of equity per share The P/B ratio reflects how many times book value investors are ready to pay for a share. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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8aa981a9-17eb-4fcc-b55c-e27912102b8b
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714814.0
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2023-12-06 00:00:00 UTC
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Best Income Stocks to Buy for December 6th
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DCOMP
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https://www.nasdaq.com/articles/best-income-stocks-to-buy-for-december-6th-1
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Here are three stocks with buy rank and strong income characteristics for investors to consider today, December 6th:
Dole DOLE: This company which is a producer of fresh bananas and pineapples, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.8% over the last 60 days.
Dole PLC Price and Consensus
Dole PLC price-consensus-chart | Dole PLC Quote
This Zacks Rank #1 company has a dividend yield of 2.7%, compared with the industry average of 0.0%.
Dole PLC Dividend Yield (TTM)
Dole PLC dividend-yield-ttm | Dole PLC Quote
Adecoagro AGRO: This agricultural company which is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days.
Adecoagro S.A. Price and Consensus
Adecoagro S.A. price-consensus-chart | Adecoagro S.A. Quote
This Zacks Rank #1 company has a dividend yield of 2.99%, compared with the industry average of 0.0%.
Adecoagro S.A. Dividend Yield (TTM)
Adecoagro S.A. dividend-yield-ttm | Adecoagro S.A. Quote
Arcos Dorados ARCO: This company which operates as a franchisee of McDonald's with its operations divided in Brazil, Latin America and the Caribbean, has witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 6.7% over the last 60 days.
Arcos Dorados Holdings Inc. Price and Consensus
Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote
This Zacks Rank #1 (Strong Buy) company has a dividend yield of 1.7%, compared with the industry average of 0.0%.
Arcos Dorados Holdings Inc. Dividend Yield (TTM)
Arcos Dorados Holdings Inc. dividend-yield-ttm | Arcos Dorados Holdings Inc. Quote
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens
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
Dole PLC (DOLE) : Free Stock Analysis Report
Adecoagro S.A. (AGRO) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks with buy rank and strong income characteristics for investors to consider today, December 6th: Dole DOLE: This company which is a producer of fresh bananas and pineapples, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.8% over the last 60 days. 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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Dole PLC Dividend Yield (TTM) Dole PLC dividend-yield-ttm | Dole PLC Quote Adecoagro AGRO: This agricultural company which is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days. Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote This Zacks Rank #1 (Strong Buy) company has a dividend yield of 1.7%, compared with the industry average of 0.0%. Click to get this free report Dole PLC (DOLE) : Free Stock Analysis Report Adecoagro S.A. (AGRO) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Dole PLC Dividend Yield (TTM) Dole PLC dividend-yield-ttm | Dole PLC Quote Adecoagro AGRO: This agricultural company which is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days. Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote This Zacks Rank #1 (Strong Buy) company has a dividend yield of 1.7%, compared with the industry average of 0.0%. Click to get this free report Dole PLC (DOLE) : Free Stock Analysis Report Adecoagro S.A. (AGRO) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote This Zacks Rank #1 (Strong Buy) company has a dividend yield of 1.7%, compared with the industry average of 0.0%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Dole PLC (DOLE) : Free Stock Analysis Report Adecoagro S.A. (AGRO) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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23a156a2-ac6c-41de-b515-a24064cbd77e
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714815.0
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2023-12-06 00:00:00 UTC
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Universal Stainless (USAP) Rallies 35% in 3 Months: Here's Why
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DCOMP
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https://www.nasdaq.com/articles/universal-stainless-usap-rallies-35-in-3-months%3A-heres-why
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nan
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nan
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Universal Stainless & Alloy Products, Inc.‘s USAP shares have rallied 35% in the last three months. Owing to the upside, the stock outperformed its industry’s fall of 2% over the same time frame. The company has topped the S&P 500’s nearly 1.6% rise over the same period.
Image Source: Zacks Investment Research
Let’s look at the factors driving this Zacks Rank #2 (Buy) stock.
What’s Driving Universal Stainless?
In the third quarter, USAP reported robust financial performance, with earnings doubling from the previous quarter’s figure and an impressive 54% year-over-year growth in sales, reaching $71.3 million. The upswing in premium alloy sales, driven by increased aerospace demand, played a pivotal role in advancing specialty alloy development. Aerospace sales in the third quarter achieved a record high of $53.9 million, contributing 75.6% to total sales and surging 70.3% from the prior-year quarter’s levels.
The company's gross margin continued to exhibit improvement, reaching $10.9 million or 15.2% of sales — the highest level since the second quarter of 2018. This positive trend was fueled by a favorable product mix and higher selling prices, effectively overcoming challenges posed by negative surcharge misalignment resulting from declining commodity prices.
USAP is in the commissioning phase of its capital project, integrating two Vacuum-Arc Remelt (VAR) furnaces into the North Jackson facility. Upon completion, this initiative is anticipated to boost the company's capacity in premium and specialty alloys by 20%, facilitating the expansion of its portfolio with technologically advanced, higher-margin products — particularly in aerospace applications, including defense.
In the third quarter, USAP exceeded expectations by reporting adjusted earnings of 20 cents per share, surpassing the Zacks Consensus Estimate of 15 cents. This marked the company's fourth consecutive quarter of positive earnings surprises, with an average beat of 44.4%. The Zacks Consensus Estimate for USAP's 2023 earnings is pegged at 52 cents, suggesting a remarkable year-over-year surge of 170.3%. The consensus estimate for current-year earnings experienced a positive revision of 15.6% in the past 60 days, underscoring the robust growth potential of the company.
Universal Stainless & Alloy Products, Inc. Price and Consensus
Universal Stainless & Alloy Products, Inc. price-consensus-chart | Universal Stainless & Alloy Products, Inc. Quote
Zacks Rank & Other Key Picks
Some other top-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. ANDE and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 23.1% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised upward by 5.1% in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8% on average. ANDE’s shares have rallied around 48.9% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 43.1% 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
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : 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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USAP is in the commissioning phase of its capital project, integrating two Vacuum-Arc Remelt (VAR) furnaces into the North Jackson facility. Upon completion, this initiative is anticipated to boost the company's capacity in premium and specialty alloys by 20%, facilitating the expansion of its portfolio with technologically advanced, higher-margin products — particularly in aerospace applications, including defense. The consensus estimate for current-year earnings experienced a positive revision of 15.6% in the past 60 days, underscoring the robust growth potential of the company.
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Universal Stainless & Alloy Products, Inc. Price and Consensus Universal Stainless & Alloy Products, Inc. price-consensus-chart | Universal Stainless & Alloy Products, Inc. Quote Zacks Rank & Other Key Picks Some other top-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. ANDE and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2. The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report Alamos Gold Inc. (AGI) : 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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In the third quarter, USAP exceeded expectations by reporting adjusted earnings of 20 cents per share, surpassing the Zacks Consensus Estimate of 15 cents. Universal Stainless & Alloy Products, Inc. Price and Consensus Universal Stainless & Alloy Products, Inc. price-consensus-chart | Universal Stainless & Alloy Products, Inc. Quote Zacks Rank & Other Key Picks Some other top-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. ANDE and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report Alamos Gold Inc. (AGI) : 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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Image Source: Zacks Investment Research Let’s look at the factors driving this Zacks Rank #2 (Buy) stock. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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3b8b55a6-2a80-4f80-a12e-b0dd72759491
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714816.0
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2023-12-06 00:00:00 UTC
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Is Nuveen ESG Mid-Cap Value ETF (NUMV) a Strong ETF Right Now?
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DCOMP
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https://www.nasdaq.com/articles/is-nuveen-esg-mid-cap-value-etf-numv-a-strong-etf-right-now-3
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nan
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A smart beta exchange traded fund, the Nuveen ESG Mid-Cap Value ETF (NUMV) debuted on 12/13/2016, and offers broad exposure to the Style Box - Mid Cap Value 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 Nuveen. NUMV has been able to amass assets over $362.76 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index.
The TIAA ESG USA Mid-Cap Value Index comprises of equity securities issued by mid- capitalization companies listed on US exchanges. It uses a rules-based methodology that seeks to provide investment exposure that generally replicates mid-cap value benchmarks through a portfolio of securities that adhere to predetermined ESG, controversial business involvement and low-carbon screening criteria.
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 NUMV are 0.31%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.14%.
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.
NUMV's heaviest allocation is in the Financials sector, which is about 16% of the portfolio. Its Industrials and Real Estate round out the top three.
Looking at individual holdings, Ferguson Plc accounts for about 2.31% of total assets, followed by Baker Hughes Co (BKR) and Oneok Inc (OKE).
The top 10 holdings account for about 21.48% of total assets under management.
Performance and Risk
The ETF has gained about 0.77% so far this year and is down about -1.79% in the last one year (as of 12/06/2023). In the past 52-week period, it has traded between $26.41 and $32.94.
The ETF has a beta of 1.10 and standard deviation of 18.97% for the trailing three-year period. With about 89 holdings, it effectively diversifies company-specific risk.
Alternatives
Nuveen ESG Mid-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $7.63 billion in assets, iShares ESG Aware MSCI USA ETF has $12.77 billion. JEPQ has an expense ratio of 0.35% and ESGU charges 0.15%.
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 - Mid Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nuveen ESG Mid-Cap Value ETF (NUMV): ETF Research Reports
ONEOK, Inc. (OKE) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): 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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A smart beta exchange traded fund, the Nuveen ESG Mid-Cap Value ETF (NUMV) debuted on 12/13/2016, and offers broad exposure to the Style Box - Mid Cap Value category of the market. It uses a rules-based methodology that seeks to provide investment exposure that generally replicates mid-cap value benchmarks through a portfolio of securities that adhere to predetermined ESG, controversial business involvement and low-carbon screening criteria. Alternatives Nuveen ESG Mid-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market.
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JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $7.63 billion in assets, iShares ESG Aware MSCI USA ETF has $12.77 billion. Click to get this free report Nuveen ESG Mid-Cap Value ETF (NUMV): ETF Research Reports ONEOK, Inc. (OKE) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here.
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JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. 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 Nuveen ESG Mid-Cap Value ETF (NUMV): ETF Research Reports ONEOK, Inc. (OKE) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here.
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A smart beta exchange traded fund, the Nuveen ESG Mid-Cap Value ETF (NUMV) debuted on 12/13/2016, and offers broad exposure to the Style Box - Mid Cap Value category of the market. 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. This particular fund, before fees and expenses, seeks to match the performance of the TIAA ESG USA Mid-Cap Value Index.
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87e21466-0f1c-4d51-94f6-44b6cb3449f7
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714817.0
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2023-12-06 00:00:00 UTC
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Is WisdomTree U.S. High Dividend ETF (DHS) a Strong ETF Right Now?
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DCOMP
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-high-dividend-etf-dhs-a-strong-etf-right-now-9
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. High Dividend ETF (DHS) is a smart beta exchange traded fund launched on 06/16/2006.
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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track 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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Wisdomtree, DHS has amassed assets over $1.07 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. DHS, before fees and expenses, seeks to match the performance of the WisdomTree U.S. High Dividend Index.
The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for DHS are 0.38%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.38%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
DHS's heaviest allocation is in the Energy sector, which is about 19.90% of the portfolio. Its Financials and Utilities round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.84% of total assets, followed by Chevron Corp (CVX) and Abbvie Inc (ABBV).
The top 10 holdings account for about 39.99% of total assets under management.
Performance and Risk
So far this year, DHS has lost about -4.28%, and is down about -5.72% in the last one year (as of 12/06/2023). During this past 52-week period, the fund has traded between $73.70 and $89.17.
The ETF has a beta of 0.81 and standard deviation of 14.60% for the trailing three-year period, making it a medium risk choice in the space. With about 382 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $51.76 billion in assets, Vanguard Value ETF has $101.19 billion. IWD has an expense ratio of 0.19% and VTV 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 - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): 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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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. High Dividend ETF (DHS) is a smart beta exchange traded fund launched on 06/16/2006. Fund Sponsor & Index Managed by Wisdomtree, DHS has amassed assets over $1.07 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. Alternatives WisdomTree U.S. High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index. IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here.
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IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. 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 WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here.
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. High Dividend ETF (DHS) is a smart beta exchange traded fund launched on 06/16/2006. DHS, before fees and expenses, seeks to match the performance of the WisdomTree U.S. High Dividend Index. The top 10 holdings account for about 39.99% of total assets under management.
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6df354a9-6de6-4394-b0aa-1269e6782759
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714818.0
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2023-12-06 00:00:00 UTC
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Bet on the Strength of DuPont Analysis & Pick 5 Top Stocks
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DCOMP
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https://www.nasdaq.com/articles/bet-on-the-strength-of-dupont-analysis-pick-5-top-stocks
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Return on equity (ROE) is one of the most favored metrics of investors. It is a profitability ratio that measures earnings generated by a company from its equity. Investors can follow the ROE trend in companies and compare this to historical or industry benchmarks to pick a winning stock.
However, stepping beyond the basic ROE and analyzing it at an advanced level could lead to even better returns. Here is where the DuPont analysis comes into play. It is an analytical method, which examines three major elements – operating management, management of assets and the capital structure – related to the financial condition of a company. Below we show how DuPont breaks down ROE into its different components:
ROE = Net Income/Equity
Net Income / Equity = (Net Income / Sales) * (Sales / Assets) * (Assets / Equity)
ROE = Profit Margin * Asset Turnover Ratio * Equity Multiplier
The screener yields winning stocks like Vita Coco Company COCO, EMCOR Group EME, Casey's General Stores CASY, Global Industrial Company GIC and Lifeway Foods LWAY.
Why Use DuPont?
Although one can’t play down the importance of normal ROE calculation, the fact remains that it doesn’t always provide a complete picture. The DuPont analysis, on the other hand, allows investors to assess the elements that play a dominant role in any change in ROE. It can help investors to segregate companies having higher margins from those having high turnover. For example, high-end fashion brands generally survive on high margin as compared with retail goods, which rely on higher turnover.
In fact, it also sheds light on the company’s leverage status, which can go a long way in selecting stocks poised for gains. A lofty ROE could be due to the overuse of debt. Thus, the strength of a company can be misleading if it has a high debt load.
So, an investor confined solely to an ROE perspective may be confused if he or she has to judge between two stocks of equal ratio. This is where DuPont analysis wins over and spots the better stock.
Investors can simply do this analysis by taking a look at the company’s financials.However, looking at financial statements of each company separately can be a tedious task. Screening tools like Zacks Research Wizard can come to your rescue and help you shortlist the stocks that look impressive with a DuPont analysis.
Screening Parameters
• Profit Margin more than or equal to 3: As the name suggests, it is a measure of how profitably the business is running. Generally, it is the key contributor to ROE.
• Asset Turnover Ratio more than or equal to 2: It allows an investor to assess management’s efficiency in using assets to drive sales.
• Equity Multiplier between 1 and 3: It’s an indication of how much debt the company uses to finance its assets.
• Zacks Rank less than or equal to 2: Stocks having a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environment.
• Current Price more than $5: This screens out the low-priced stocks. However, when looking for lower-priced stocks, this criterion can be removed.
Here are five out of six stocks that made it through the screen:
Vita Coco Company (COCO): The Zacks Rank #1 company provides beverage platform.
The average earnings surprise of COCO for the past four quarters is 25.69%.
EMCOR Group (EME): This Zacks Rank #1 company is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of EME for the past four quarters is 24.95%.
Casey's General Stores (CASY): The Zacks Rank #2 company operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois.
The average earnings surprise of CASY for the past four quarters is 17.50%.
Global Industrial Company (GIC): The Zacks Rank #1 company, through its operating subsidiaries, is a provider of industrial products principally in North America.
The average earnings surprise of GIC for the past four quarters is 8.55%.
Lifeway Foods (LWAY): The Zacks Rank #2 company produces Kefir, a drinkable product similar to, but distinct from yogurt, in several flavors sold under the name Lifeway's Kefir.
The average earnings surprise of LWAY for the past four quarters is 89.58%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks 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
Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
Lifeway Foods, Inc. (LWAY) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Global Industrial Company (GIC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ROE = Profit Margin * Asset Turnover Ratio * Equity Multiplier The screener yields winning stocks like Vita Coco Company COCO, EMCOR Group EME, Casey's General Stores CASY, Global Industrial Company GIC and Lifeway Foods LWAY. For example, high-end fashion brands generally survive on high margin as compared with retail goods, which rely on higher turnover. EMCOR Group (EME): This Zacks Rank #1 company is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses.
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ROE = Profit Margin * Asset Turnover Ratio * Equity Multiplier The screener yields winning stocks like Vita Coco Company COCO, EMCOR Group EME, Casey's General Stores CASY, Global Industrial Company GIC and Lifeway Foods LWAY. Casey's General Stores (CASY): The Zacks Rank #2 company operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. Click to get this free report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Lifeway Foods, Inc. (LWAY) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Global Industrial Company (GIC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ROE = Profit Margin * Asset Turnover Ratio * Equity Multiplier The screener yields winning stocks like Vita Coco Company COCO, EMCOR Group EME, Casey's General Stores CASY, Global Industrial Company GIC and Lifeway Foods LWAY. Here are five out of six stocks that made it through the screen: Vita Coco Company (COCO): The Zacks Rank #1 company provides beverage platform. Click to get this free report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Lifeway Foods, Inc. (LWAY) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report Global Industrial Company (GIC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It is a profitability ratio that measures earnings generated by a company from its equity. ROE = Profit Margin * Asset Turnover Ratio * Equity Multiplier The screener yields winning stocks like Vita Coco Company COCO, EMCOR Group EME, Casey's General Stores CASY, Global Industrial Company GIC and Lifeway Foods LWAY. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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3280a2b2-4a70-4d9c-bbcb-bbfab893f457
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714819.0
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2023-12-06 00:00:00 UTC
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Why Advanced Micro Devices Rallied 23% in November
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DCOMP
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https://www.nasdaq.com/articles/why-advanced-micro-devices-rallied-23-in-november
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nan
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Advanced Micro Devices (NASDAQ: AMD) rallied 23% in the month of November, according to data from S&P Global Market Intelligence.
AMD's performance was buoyed by its third-quarter earnings report, released after the close of trading on Oct. 31. In addition, management gave a strong outlook for its data center segment and specifically sales of its MI300 accelerator for AI applications, which is in its first stages of commercial ramp-up.
After that blast-off to start the month, AMD continued marching higher through November, as two inflation reports came in softer-than-expected and long-term interest rates came down.
All eyes on the MI300
In its third quarter, AMD grew revenue 4.1%, with adjusted (non-GAAP) earnings per share of $0.70, beating analyst expectations.
Even though its reported numbers beat muted expectations, it was still surprising AMD actually rallied, given its light guidance. Management said it expects just $6.1 billion in fourth-quarter revenue, which was actually lower than analyst expectations of $6.4 billion. Usually, a stock moves according to a company's guidance more than its backwards-looking reported results.
However, AMD management explained the light guidance was due to weakness in the gaming sector, as well as continued weakness in field programmable gate array (FPGA) chips gained in the Xilinx acquisition, which are used in a lot of communications and industrial markets.
But investors really care much more about AMD's data center segment, and specifically adoption of AMD's new MI300 accelerators, which the company hopes will compete with Nvidia's (NASDAQ: NVDA) GPUs in artificial intelligence applications. There, CEO Lisa Su said AMD's data center business should see strong growth in Q4, helped along by the launch of MI300. Su even went on to give more specific guidance for the MI300, which she believes will do $400 million in sales in the fourth quarter and over $2 billion in 2024.
That forecast, while far, far below what Nvidia is making from its data center chips today, still signified enough early adoption to get investors excited about the product's future growth.
Of note, AMD will be hosting an analyst event focused on artificial intelligence today at 1 p.m. EDT.
Promising prospects, but AMD stock reflects them
AMD is an interesting play on data center growth, but the stock is not exactly cheap after its November run, at 32 times next year's earnings estimates. I also wouldn't expect nearly as big of a lift from AI growth as Nvidia will get in the year ahead. Although AMD is working from a small base, its data center segment accounted for only 28% of revenue last quarter, with the rest of the business in the less-attractive client, gaming, and embedded markets. And if AMD achieves $400 million in new MI300 revenue next quarter, that would only make up less than 7% of overall revenue.
While data center growth should grow by leaps and bounds next year, that may not lift AMD's overall results as much as some might think. That being said, the AI accelerator market is forecast to be huge in a few years, so if AMD can really make more significant inroads into Nvidia's dominant market share, it could in fact justify today's valuation -- and then some. But that's a tough hill to climb.
10 stocks we like better than Advanced Micro Devices
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 Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, management gave a strong outlook for its data center segment and specifically sales of its MI300 accelerator for AI applications, which is in its first stages of commercial ramp-up. That forecast, while far, far below what Nvidia is making from its data center chips today, still signified enough early adoption to get investors excited about the product's future growth. Although AMD is working from a small base, its data center segment accounted for only 28% of revenue last quarter, with the rest of the business in the less-attractive client, gaming, and embedded markets.
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Advanced Micro Devices (NASDAQ: AMD) rallied 23% in the month of November, according to data from S&P Global Market Intelligence. In addition, management gave a strong outlook for its data center segment and specifically sales of its MI300 accelerator for AI applications, which is in its first stages of commercial ramp-up. But investors really care much more about AMD's data center segment, and specifically adoption of AMD's new MI300 accelerators, which the company hopes will compete with Nvidia's (NASDAQ: NVDA) GPUs in artificial intelligence applications.
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Advanced Micro Devices (NASDAQ: AMD) rallied 23% in the month of November, according to data from S&P Global Market Intelligence. But investors really care much more about AMD's data center segment, and specifically adoption of AMD's new MI300 accelerators, which the company hopes will compete with Nvidia's (NASDAQ: NVDA) GPUs in artificial intelligence applications. Promising prospects, but AMD stock reflects them AMD is an interesting play on data center growth, but the stock is not exactly cheap after its November run, at 32 times next year's earnings estimates.
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Advanced Micro Devices (NASDAQ: AMD) rallied 23% in the month of November, according to data from S&P Global Market Intelligence. Promising prospects, but AMD stock reflects them AMD is an interesting play on data center growth, but the stock is not exactly cheap after its November run, at 32 times next year's earnings estimates. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Billy Duberstein has no position in any of the stocks mentioned.
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c4e13b04-6b33-41d7-abc1-d88fb3daf089
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714820.0
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2023-12-06 00:00:00 UTC
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Kinder Morgan Expects to Increase Its 6.3%-Yielding Dividend Again in 2024
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DCOMP
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https://www.nasdaq.com/articles/kinder-morgan-expects-to-increase-its-6.3-yielding-dividend-again-in-2024
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nan
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Kinder Morgan (NYSE: KMI) recently provided its financial guidance for 2024. The natural gas pipeline giant expects its earnings and free cash flow to rise next year. That's giving the company the fuel to raise its already attractive 6.3%-yielding dividend once again.
Here's a look at what Kinder Morgan sees ahead in 2024.
Solid growth with more in the pipeline
Kinder Morgan revealed its financial expectations for the coming year. The pipeline company expects to generate $8 billion of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). That's 5% higher than what it expects to produce this year. The company also expects its distributable cash flow (DCF) to rise by 5% to $5 billion, or $2.21 per share.
The company sees several factors fueling growth next year. Market fundamentals in the natural gas sector are strong, driving volume growth across its existing assets and creating new expansion opportunities. The company also expects to benefit from higher rates in its refined products business and growing demand for renewable diesel, renewable diesel feedstocks, and renewable natural gas (RNG).
It's important to note that these numbers don't include the incremental income from the company's pending acquisition of STX Midstream from NextEra Energy Partners (NYSE: NEP). Last month, Kinder Morgan agreed to pay roughly $1.8 billion for NextEra Energy Partners' South Texas pipeline assets. That purchase price implied Kinder Morgan is paying 8.6 times EBITDA for STX Midstream (suggesting it will produce around $210 million in EBITDA for the full year). Kinder Morgan expects to close that deal in the first quarter of next year. Because of that, it should provide an additional boost to the company's adjusted EBITDA and DCF in 2024.
The flexibility to be opportunistic
Kinder Morgan expects to use its robust cash flow to pay dividends, invest in high-return capital projects, and enhance its already robust financial flexibility. The company intends to increase its dividend by 1.8% in 2024 to an annualized rate of $1.15 per share. That would be the seventh straight year of dividend growth for the company. This rate would put its dividend payout ratio at 52%.
It also expects to invest around $2.3 billion into expansion projects, about $400 million more than this year. The company is investing $1.4 billion into high-return infrastructure projects that generate predictable cash flow, including gas pipeline expansions and RNG facilities. In addition, it plans to invest about $900 million in projects with more market-sensitive cash flows, like gathering and processing expansions and enhanced oil recovery projects.
Despite the increased dividend and investment spending, Kinder Morgan will have a lot of financial flexibility next year. It expects its leverage ratio to fall to 3.8 times (down from 4 times in 2023 and well below its 4.5 times target). While it expects to use some of its financial flexibility to acquire STX Midstream, it only sees the deal increasing its leverage ratio by 0.1 times after factoring in the incremental earnings.
That low leverage ratio gives Kinder Morgan the flexibility to be opportunistic. It could use its financial capacity to repurchase shares and make additional value-enhancing acquisitions. It has demonstrated its ability to be opportunistic in 2023, capitalizing on the opportunity to buy STX Midstream from the financially strapped NextEra Energy Partners. It also made $470 million of unbudgeted share repurchases, buying back 28 million shares at $16.58 apiece (about 7.5% below the current price).
A strong base with ample upside
Kinder Morgan expects to grow its earnings and cash flow by at least 5% next year. That number doesn't include its pending acquisition of STX Midstream or the potential to opportunistically use its financial flexibility to drive additional earnings-per-share growth. Those factors give the company the confidence and fuel to increase its dividend again. Add that rock-solid and steadily growing income stream to the company's rising earnings, and Kinder Morgan has the fuel to potentially produce a double-digit total return in 2024. That's an excellent return potential from such a low-risk stock.
10 stocks we like better than Kinder Morgan
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 Kinder Morgan wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Matthew DiLallo has positions in Kinder Morgan and NextEra Energy Partners. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's important to note that these numbers don't include the incremental income from the company's pending acquisition of STX Midstream from NextEra Energy Partners (NYSE: NEP). The company is investing $1.4 billion into high-return infrastructure projects that generate predictable cash flow, including gas pipeline expansions and RNG facilities. Add that rock-solid and steadily growing income stream to the company's rising earnings, and Kinder Morgan has the fuel to potentially produce a double-digit total return in 2024.
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It's important to note that these numbers don't include the incremental income from the company's pending acquisition of STX Midstream from NextEra Energy Partners (NYSE: NEP). The flexibility to be opportunistic Kinder Morgan expects to use its robust cash flow to pay dividends, invest in high-return capital projects, and enhance its already robust financial flexibility. The company is investing $1.4 billion into high-return infrastructure projects that generate predictable cash flow, including gas pipeline expansions and RNG facilities.
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Solid growth with more in the pipeline Kinder Morgan revealed its financial expectations for the coming year. The flexibility to be opportunistic Kinder Morgan expects to use its robust cash flow to pay dividends, invest in high-return capital projects, and enhance its already robust financial flexibility. Despite the increased dividend and investment spending, Kinder Morgan will have a lot of financial flexibility next year.
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The company also expects its distributable cash flow (DCF) to rise by 5% to $5 billion, or $2.21 per share. While it expects to use some of its financial flexibility to acquire STX Midstream, it only sees the deal increasing its leverage ratio by 0.1 times after factoring in the incremental earnings. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Matthew DiLallo has positions in Kinder Morgan and NextEra Energy Partners.
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350e1d0f-100e-4189-82fd-5b44e95652ec
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714821.0
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2023-12-06 00:00:00 UTC
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2 Growth Stocks That Aren't Slowing Down
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DCOMP
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https://www.nasdaq.com/articles/2-growth-stocks-that-arent-slowing-down-0
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nan
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An uncertain economic environment is impacting some companies more than others. In the world of software, some vendors are facing customers reluctant to spend, while for others, it's business as usual. GitLab (NASDAQ: GTLB) and CrowdStrike (NASDAQ: CRWD) are still growing by leaps and bounds, and both companies have enormous long-term growth opportunities.
Neither stock is cheap, but for growth investors looking for the best of the best, GitLab and CrowdStrike fit the bill.
Image source: Getty Images.
GitLab
In the world of source-code management, Microsoft's GitHub reigns supreme. The tech giant paid $7.5 billion for GitHub back in 2018, a move that made a lot of sense given Microsoft's other developer-focused products. Microsoft's Azure cloud platform is for running applications; its Visual Studio family of software is for developing applications; and GitHub is for managing code and automating application deployment.
GitHub isn't the only player, though. Another popular option is GitLab, which aims to be a one-stop shop for developers. GitLab follows an open-source model, making its core software available for free while also offering a paid-subscription service. More than 30 million users use GitLab's platform, and almost all of them don't pay the company a dime. But the 8,175 paying customers, including 874 that shell out at least $100,000 annually, generate nearly $600 million in annual run-rate revenue.
GitLab uses a land-and-expand business model, getting developers on board and then expanding within those developers' companies. GitLab's platform can replace a wide variety of point solutions, reducing complexity for customers, and making it unlikely that those customers will want to go back to a fragmented mess of tools and software products.
This strategy is working wonders. GitLab's revenue rose 32% year over year in the third quarter, driven by a dollar-based net-retention rate of 128%. In other words, once GitLab lands a paying customer, that customer tends to increase spending on GitLab's platform over time. The company also booked its first adjusted-operating profit in Q3, although GitLab is still unprofitable on a generally accepted accounting principles (GAAP) basis.
GitLab's platform is resonating with both developers and large enterprises that are ramping up spending. While the stock isn't cheap, valued at around 16 times full-year revenue guidance, a $40 billion market opportunity gives the company a long runway for growth. A lofty valuation makes the stock risky, but investors should be impressed by the company's ability to grow so quickly in the shadow of Microsoft's GitHub.
CrowdStrike
Cybersecurity is something that companies can't afford to skimp on. The cost of dealing with a data breach, both in dollars and in reputation, can be staggering. The average monetary cost of a breach in 2023 is $4.45 million, according to IBM, and companies that fall victim may feel repercussions in terms of lost customers for years.
Securing applications, data, and networks has become more complex in the age of cloud computing. Larger enterprises tend to mix multiple public and private clouds, a setup that requires cloud-first cybersecurity tools. CrowdStrike's modular Falcon platform has emerged as one of the go-to options, enabling companies to consolidate and simplify their cybersecurity efforts.
CrowdStrike's results speak for themselves. The company grew revenue by 35% year over year in Q3, and it surpassed $3 billion in annual-recurring revenue. The plan is to more than triple that figure to $10 billion within the next five to seven years, a feasible goal given the size of CrowdStrike's market opportunity. The company expects its total addressable market to reach $100 billion by 2024 and $225 billion by 2028.
In addition to winning over new customers, CrowdStrike can grow by selling existing customers additional modules. As the company expands its platform to cover new areas, including AI-powered tools, asset visibility and management, and identity security, it creates more ways for customers to expand spending. To get a sense of the opportunity: If all of CrowdStrike's customers were to adopt every available module, it would generate an additional $19.6 billion of annual revenue.
About 63% of customers pay for at least 5 modules, a percentage that has grown from just 2% in 2018. This strong internal growth has pushed up adjusted profits and free cash flow, and CrowdStrike is now targeting positive and sustained pre-tax profit on a GAAP basis starting in fiscal 2024.
Like GitLab, CrowdStrike is an expensive stock. Valued at $57 billion, shares trade for around 19 times annual revenue based on analyst expectations for fiscal 2024. But with cybersecurity spending unlikely to stop growing in the years ahead as companies grapple with escalating threats, CrowdStrike is well positioned to grow at an impressive rate for a very long time.
10 stocks we like better than GitLab
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 GitLab wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Timothy Green has positions in International Business Machines. The Motley Fool has positions in and recommends CrowdStrike, GitLab, and Microsoft. The Motley Fool recommends International Business Machines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the stock isn't cheap, valued at around 16 times full-year revenue guidance, a $40 billion market opportunity gives the company a long runway for growth. A lofty valuation makes the stock risky, but investors should be impressed by the company's ability to grow so quickly in the shadow of Microsoft's GitHub. The average monetary cost of a breach in 2023 is $4.45 million, according to IBM, and companies that fall victim may feel repercussions in terms of lost customers for years.
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While the stock isn't cheap, valued at around 16 times full-year revenue guidance, a $40 billion market opportunity gives the company a long runway for growth. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends International Business Machines.
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GitLab (NASDAQ: GTLB) and CrowdStrike (NASDAQ: CRWD) are still growing by leaps and bounds, and both companies have enormous long-term growth opportunities. In other words, once GitLab lands a paying customer, that customer tends to increase spending on GitLab's platform over time. While the stock isn't cheap, valued at around 16 times full-year revenue guidance, a $40 billion market opportunity gives the company a long runway for growth.
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In other words, once GitLab lands a paying customer, that customer tends to increase spending on GitLab's platform over time. While the stock isn't cheap, valued at around 16 times full-year revenue guidance, a $40 billion market opportunity gives the company a long runway for growth. But with cybersecurity spending unlikely to stop growing in the years ahead as companies grapple with escalating threats, CrowdStrike is well positioned to grow at an impressive rate for a very long time.
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8b139424-5689-4ee3-866a-78d5d154ab62
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714822.0
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2023-12-06 00:00:00 UTC
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Covered Call Screener Results For December 6th
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DCOMP
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https://www.nasdaq.com/articles/covered-call-screener-results-for-december-6th
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Covered calls are a great strategy to add to any portfolio, particularly in this era of low yields. Covered calls can offer enhanced yield from stock holdings, in some case, that can be a significant increase.
To trade a covered call we need to own (or buy) 100 shares of a stock and then sell a call option against that stock position.
The goal is to generate income from the stock holding in addition to any dividends. The premium received from selling the call also covers a small decline in the stock price. However, the trade off is that stock gains are limited above the call option strike price.
High volatility stocks have the highest return potential with covered calls, but they also have the highest risk of an adverse price movement. It’s all about finding a strategy that fits the investors risk tolerance.
Let’s look at a few examples using Barchart’s Covered Call Screener.
This first example shows the results of the screener with the default parameters selected.
This result returns some stocks with very low market capitalization and, while the returns look great, the risks can also be very high. There are also 1159 results, so let’s try and narrow things down a little
Let’s add the following filters:
Now, we’re seeing some more mainstream names such as PLTR, AMD, SHOP, UBER, AMAT, AMZN, INTC and AMAT.
PLTR Covered Call Example
Let’s evaluate the first line item, a covered call on PLTR. Buying 100 shares of PLTR would cost $1,830.
The March $20-strike call option was trading yesterday around $1.75, generating $175 in premium per contract for covered call sellers.
Selling the call option generates an income of 10.57% in 100 days, equalling around 38.21% annualized.
The breakeven price is equal to the stock purchase price less the premium received, which in this case is 16.55.
PLTR is currently followed by 14 analysts with 2 Strong Buy ratings, 1 Moderate Buy rating, 5 Hold ratings, 1 Moderate Sell rating and 5 Strong Sell ratings.
The Barchart Technical Opinion rating is an 80% Buy with a weakening short term outlook on maintaining the current direction.
The current IV Percentile is 8% which means that the current level of implied volatility is higher than only 8% of all occurrences in the last 12 months.
AMD Covered Call Example
Let’s look at another example, this time using AMD.
Buying 100 shares of AMD would cost $11,838. The March $130-strike call option was trading yesterday around $6.10, generating $610 in premium per contract for covered call sellers.
Selling the call option generates an income of 5.43% in 100 days, equalling around 19.63% annualized.
The breakeven price is 112.28.
AMD is currently followed by 29 analysts with 22 Strong Buy ratings, 1 Moderate Buy rating and 6 Hold ratings.
The Barchart Technical Opinion rating is a 72% Buy with a weakening short term outlook on maintaining the current direction.
The current IV Percentile is 2% which means that the current level of implied volatility is higher than just 2% of all occurrences in the last 12 months.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Is This Warren Buffett Stock Under $50 a Good Buy Right Now?
Stocks Settle Mixed as U.S. Job Openings Fall to a 2-1/2 Year Low
Is Brazil's Biggest Oil Stock a Value Buy Right Now?
Unbelievable Mortgage Rates? How Smart Home Buyers Are Paying Under 5%
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Barchart Technical Opinion rating is an 80% Buy with a weakening short term outlook on maintaining the current direction. The Barchart Technical Opinion rating is a 72% Buy with a weakening short term outlook on maintaining the current direction. How Smart Home Buyers Are Paying Under 5% On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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PLTR is currently followed by 14 analysts with 2 Strong Buy ratings, 1 Moderate Buy rating, 5 Hold ratings, 1 Moderate Sell rating and 5 Strong Sell ratings. The Barchart Technical Opinion rating is an 80% Buy with a weakening short term outlook on maintaining the current direction. The Barchart Technical Opinion rating is a 72% Buy with a weakening short term outlook on maintaining the current direction.
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To trade a covered call we need to own (or buy) 100 shares of a stock and then sell a call option against that stock position. The March $20-strike call option was trading yesterday around $1.75, generating $175 in premium per contract for covered call sellers. PLTR is currently followed by 14 analysts with 2 Strong Buy ratings, 1 Moderate Buy rating, 5 Hold ratings, 1 Moderate Sell rating and 5 Strong Sell ratings.
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To trade a covered call we need to own (or buy) 100 shares of a stock and then sell a call option against that stock position. Let’s look at a few examples using Barchart’s Covered Call Screener. AMD Covered Call Example Let’s look at another example, this time using AMD.
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6c3f39d4-562a-42ea-89aa-a71f90f9409a
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714823.0
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2023-12-06 00:00:00 UTC
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Delta Air Lines To Present At The Morgan Stanley Conference; Webcast At 8:00 AM ET
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DCOMP
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https://www.nasdaq.com/articles/delta-air-lines-to-present-at-the-morgan-stanley-conference-webcast-at-8%3A00-am-et
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nan
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(RTTNews) - Delta Air Lines Inc (DAL) will participate in a fireside chat at the Morgan Stanley Global Consumer & Retail Conference.
The event is scheduled to begin at 8:00 AM ET on Dec. 6, 2023.
To access the live webcast, log on to https://ir.delta.com/events-and-presentations/default.aspx
The views and 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) - Delta Air Lines Inc (DAL) will participate in a fireside chat at the Morgan Stanley Global Consumer & Retail Conference. The event is scheduled to begin at 8:00 AM ET on Dec. 6, 2023. To access the live webcast, log on to https://ir.delta.com/events-and-presentations/default.aspx The views and 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) - Delta Air Lines Inc (DAL) will participate in a fireside chat at the Morgan Stanley Global Consumer & Retail Conference. The event is scheduled to begin at 8:00 AM ET on Dec. 6, 2023. To access the live webcast, log on to https://ir.delta.com/events-and-presentations/default.aspx The views and 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) - Delta Air Lines Inc (DAL) will participate in a fireside chat at the Morgan Stanley Global Consumer & Retail Conference. The event is scheduled to begin at 8:00 AM ET on Dec. 6, 2023. To access the live webcast, log on to https://ir.delta.com/events-and-presentations/default.aspx The views and 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) - Delta Air Lines Inc (DAL) will participate in a fireside chat at the Morgan Stanley Global Consumer & Retail Conference. The event is scheduled to begin at 8:00 AM ET on Dec. 6, 2023. To access the live webcast, log on to https://ir.delta.com/events-and-presentations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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6b6054bb-678d-48fb-b2d9-c65545afe5f7
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714824.0
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2023-12-06 00:00:00 UTC
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Is Index Funds S&P 500 Equal Weight (INDEX) a Strong Mutual Fund Pick Right Now?
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https://www.nasdaq.com/articles/is-index-funds-sp-500-equal-weight-index-a-strong-mutual-fund-pick-right-now-0
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Are you on the hunt for a Mutual Fund Equity Report fund? You should think about starting with Index Funds S&P 500 Equal Weight (INDEX). INDEX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Index Funds is based in Denver, CO, and is the manager of INDEX. The Index Funds S&P 500 Equal Weight made its debut in April of 2015 and INDEX has managed to accumulate roughly $94.87 million in assets, as of the most recently available information. Michael Willis is the fund's current manager and has held that role since April of 2015.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 8.41%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 9.76%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. INDEX's standard deviation over the past three years is 19.34% compared to the category average of 17.84%. Looking at the past 5 years, the fund's standard deviation is 20.81% compared to the category average of 18.87%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.07, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. INDEX's 5-year performance has produced a negative alpha of -2.62, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
The mutual fund currently has 78.64% of its holdings in stocks and it has 3.89% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Industrial Cyclical
Non-Durable
This fund's turnover is about 42%, so the fund managers are making more trades per year than the comparable average.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, INDEX is a no load fund. It has an expense ratio of 0.25% compared to the category average of 0.76%. So, INDEX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $1,000.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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
Get Your Free (INDEX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 9.76%, which places it in the middle third during this time-frame. INDEX's 5-year performance has produced a negative alpha of -2.62, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns. Expenses For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing.
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Are you on the hunt for a Mutual Fund Equity Report fund? Looking at the past 5 years, the fund's standard deviation is 20.81% compared to the category average of 18.87%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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Are you on the hunt for a Mutual Fund Equity Report fund? INDEX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost. The fund has the heaviest exposure to the following market sectors: Technology Finance Industrial Cyclical Non-Durable This fund's turnover is about 42%, so the fund managers are making more trades per year than the comparable average.
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INDEX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost. This fund in particular has delivered a 5-year annualized total return of 8.41%, and it sits in the bottom third among its category peers. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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57613af2-ac06-4d90-9e5c-9450c0a32531
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714825.0
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2023-12-06 00:00:00 UTC
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Why Spotify Will Have a Magnificent 2024
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DCOMP
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https://www.nasdaq.com/articles/why-spotify-will-have-a-magnificent-2024
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nan
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Spotify (NYSE: SPOT) announced Monday it will cut 17% of its workforce as the business becomes more efficient. This was a shock to the market because Spotify's business has been growing nicely in 2023, but that's one reason the cuts were made. Reducing operating expenses hasn't slowed growth, so the focus is now on getting as efficient as possible.
In this video, Travis Hoium covers the news and shares why Spotify is set for a great year in 2024.
*Stock prices used were end-of-day prices of Dec. 4, 2023. The video was published on Dec. 4, 2023.
Find out why Spotify Technology is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Spotify Technology is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of December 4, 2023
Travis Hoium has positions in Spotify Technology. The Motley Fool has positions in and recommends Spotify Technology. 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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Spotify (NYSE: SPOT) announced Monday it will cut 17% of its workforce as the business becomes more efficient. In this video, Travis Hoium covers the news and shares why Spotify is set for a great year in 2024. Find out why Spotify Technology is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market.
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In this video, Travis Hoium covers the news and shares why Spotify is set for a great year in 2024. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of December 4, 2023 Travis Hoium has positions in Spotify Technology.
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Find out why Spotify Technology is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. *Stock Advisor returns as of December 4, 2023 Travis Hoium has positions in Spotify Technology. The Motley Fool has positions in and recommends Spotify Technology.
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Find out why Spotify Technology is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. The Motley Fool has positions in and recommends Spotify Technology. Their opinions remain their own and are unaffected by The Motley Fool.
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d89d772c-8564-4598-a8f1-79230acc6e38
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714826.0
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2023-12-06 00:00:00 UTC
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AT&T's 7% Dividend Yield Is Too Good to Pass Up
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DCOMP
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https://www.nasdaq.com/articles/atts-7-dividend-yield-is-too-good-to-pass-up
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nan
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AT&T (NYSE: T) is exiting a huge investment phase as it builds out a 5G network. But that phase of spending is now over and the company's cash flow is trending higher.
In this video, Travis Hoium covers the cash-flow and business trends for AT&T and shares why this 7% dividend yield is simply too good for investors to pass up.
*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 AT&T
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 AT&T wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Travis Hoium has positions in Verizon Communications. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Travis Hoium covers the cash-flow and business trends for AT&T and shares why this 7% dividend yield is simply too good for investors to pass up. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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In this video, Travis Hoium covers the cash-flow and business trends for AT&T and shares why this 7% dividend yield is simply too good for investors to pass up. 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 positions in Verizon Communications.
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10 stocks we like better than AT&T 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 positions in Verizon Communications.
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That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Travis Hoium has positions in Verizon Communications. Their opinions remain their own and are unaffected by The Motley Fool.
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714827.0
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2023-12-06 00:00:00 UTC
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The Verdict on BlackRock: Time to Buy, Hold, or Offload BLK Stock?
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https://www.nasdaq.com/articles/the-verdict-on-blackrock%3A-time-to-buy-hold-or-offload-blk-stock
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
BlackRock (NYSE:BLK), which has been described as the world’s largest asset manager, is truly a whale in the world of finance. Does this mean you should invest in BLK stock in December? If you’re seeking exposure to the world of cryptocurrency, you should certainly put BlackRock on your watch list and consider a share position.
On the other hand, some value-focused investors might contend that BlackRock stock isn’t cheap right now. There may be merit to this argument, and BlackRock insider selling could set off some alarm bells. So, let’s get into the bearish and bullish arguments now.
Who Sold Millions of Dollars’ Worth of BLK Stock?
Here’s the scoop. Reportedly, BlackRock Chairman and CEO Larry Fink sold $25 million worth of BLK stock during the past 12 months. Fink is a celebrity in the financial sector, so his stock purchases and sales are a big deal.
Yet, that’s not the full story. The aforementioned $25 million worth of share selling only represents 6.9% of Fink’s holdings of BlackRock stock. Hence, Fink remains heavily invested in his company, and evidently still has confidence in BlackRock’s future prospects.
Then, there’s the question of valuation. BlackRock’s GAAP-measured trailing 12-month price-to-earnings ratio of 21.21x might seem fine, but relatively speaking, it’s on the high end of the spectrum. For comparison, the sector median P/E ratio is 9.97x.
Also, BLK stock staged a big rally in November. Value-conscious contrarians may choose to wait until the stock pulls back 10% before re-assessing and re-strategizing.
Get Cryptocurrency Exposure Through BlackRock Stock
I just presented a reason to be cautious about BlackRock stock, but cryptocurrency enthusiasts may choose to start a share position, anyway. That’s because BlackRock, a veritable giant among financiers, is preparing to introduce a couple of important exchange traded funds.
First, BlackRock reportedly met with the trading and markets division of the U.S. Securities and Exchange Commission to discuss the details of a proposed spot Bitcoin (BTC-USD) ETF. Eric Balchunas, a a senior ETF analyst at Bloomberg, stated that BlackRock “has made first step towards filing for” a spot Ethereum (ETH-USD) ETF.
So far, the SEC hasn’t officially approved a spot Bitcoin ETF for U.S. investors. That’s what makes BlackRock stock so interesting now, though. BlackRock could make history if it’s the first company in the U.S. to introduce a fully approved spot Bitcoin ETF followed by a spot Ethereum ETF.
And if any company can achieve this, it would be BlackRock. Dominik Rohe, head of BlackRock Americas ETF and Index Investments business, stated, “In the U.S., we expect total assets in managed models will more than double from $4.5 trillion today to over $10 trillion by 2027.” BlackRock is a financial behemoth with the means and the determination to get approvals, eventually, for spot Bitcoin and Ethereum ETFs.
BLK Stock: Buy Now, or Wait?
If cryptocurrency just doesn’t capture your interest, then there’s no hurry to buy BlackRock stock. You can let it pull back 10% before considering a long position.
In contrast, cryptocurrency aficionados should think about grabbing a few BLK stock shares now. After all, it might not be long before BlackRock gets the SEC’s approval for one or more spot crypto ETFs.
Either way, you’ll surely want to keep BlackRock on your radar. This is a gigantic and highly influential financier that can’t be ignored. So, depending on your stance on cryptocurrency, you’ll probably want to own some BlackRock shares sooner or later.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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The post The Verdict on BlackRock: Time to Buy, Hold, or Offload BLK Stock? 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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First, BlackRock reportedly met with the trading and markets division of the U.S. Securities and Exchange Commission to discuss the details of a proposed spot Bitcoin (BTC-USD) ETF. David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The Verdict on BlackRock: Time to Buy, Hold, or Offload BLK Stock?
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Reportedly, BlackRock Chairman and CEO Larry Fink sold $25 million worth of BLK stock during the past 12 months. The aforementioned $25 million worth of share selling only represents 6.9% of Fink’s holdings of BlackRock stock. BlackRock could make history if it’s the first company in the U.S. to introduce a fully approved spot Bitcoin ETF followed by a spot Ethereum ETF.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips BlackRock (NYSE:BLK), which has been described as the world’s largest asset manager, is truly a whale in the world of finance. Get Cryptocurrency Exposure Through BlackRock Stock I just presented a reason to be cautious about BlackRock stock, but cryptocurrency enthusiasts may choose to start a share position, anyway. Dominik Rohe, head of BlackRock Americas ETF and Index Investments business, stated, “In the U.S., we expect total assets in managed models will more than double from $4.5 trillion today to over $10 trillion by 2027.” BlackRock is a financial behemoth with the means and the determination to get approvals, eventually, for spot Bitcoin and Ethereum ETFs.
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So far, the SEC hasn’t officially approved a spot Bitcoin ETF for U.S. investors. BlackRock could make history if it’s the first company in the U.S. to introduce a fully approved spot Bitcoin ETF followed by a spot Ethereum ETF. BLK Stock: Buy Now, or Wait?
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2023-12-06 00:00:00 UTC
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These 3 Dividend Stocks Yield Investors 9.6% or More. Here's Which 1 I'd Buy First.
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https://www.nasdaq.com/articles/these-3-dividend-stocks-yield-investors-9.6-or-more.-heres-which-1-id-buy-first.
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Dividend stocks can be excellent options for those seeking to generate passive income. Companies that pay dividends display a commitment to shareholders and tend to have prudent capital management. However, not all dividend stocks are the same.
Some companies offer consistent dividend payments year in and year out, but those payments offer modest yields of 2% or less. Others offer attractive yields that sometimes get into double-digit percentages but there also tends to be a much higher risk that the dividend won't last.
This article will focus on three dividend stocks that yield investors between 9.7% and 17.3% annually. They are B. Riley Financial (NASDAQ: RILY), Blackstone Secured Lending Fund (NYSE: BXSL), and Ares Capital (NASDAQ: ARCC). These companies offer some of the highest-yielding dividends you can find, but investors should keep a few things in mind before buying in. I'll also clue you in on which one I'd buy first.
1. B. Riley Financial's lofty 17.3% dividend yield comes with big question marks
B. Riley Financial provides financial services including investment banking, wealth and asset management, business advisory, and asset disposal. The company was a big beneficiary of the blistering investment activity seen in 2021. According to financial analytics firm Refinitiv, dealmaking like initial public offerings (IPOs) and mergers and acquisitions (M&As) was at an all-time high that year. As a result, B. Riley experienced explosive growth, and revenue surged 72% and net income was 118% higher.
B. Riley's revenue dipped last year on tough comps, but it has recovered in recent quarters. However, the company continues to struggle to generate a profit. Over the past 12 months, it has lost $68 million.
RILY Revenue (TTM) data by YCharts
A recent report from short-seller The Friendly Bear adds to its struggles. In the report, the short-seller states that B. Riley "continues to mark an asset at anywhere from 2-3x its fair value" and that the company is "being incredibly misleading in its accounting and in its disclosures around the nature of control it exercises over companies that it invests in."
Investors must be critical of companies they invest in, including reports that are overly bullish or bearish on a company. However, The Friendly Bear report adds fuel to the fire for the already struggling B. Riley Financial. The stock price is down 67% since late 2021 and its dividend yield of 17.3% does not look sustainable based on its current earnings.
Over the last 12 months, B. Riley's dividend per share is $4. Meanwhile, its diluted loss per share over the same period is $2.55. B. Riley's yield is high for a reason, and it needs to see a huge business turnaround to continue making the same dividend payment. If that turnaround doesn't come, a dividend cut is likely.
2. Blackstone Secured Lending Fund invests in underserved companies and sports a 11.2% dividend yield
The Blackstone Secured Lending Fund is a business development corporation (BDC) that invests in private company debt to generate income for dividend-focused investors. BDCs invest in companies primarily through loans, although they also invest in equity positions. These companies get tax treatment similar to real estate investment trusts (REITs) that requires them to pay out 90% of all taxable income to shareholders through dividends or other distributions.
BDCs like the Blackstone Secured Lending Fund invest in middle-market companies that banks have neglected to invest in over recent decades. Increasing regulations and capital requirements have caused banks to pull back funding to this segment of companies, preferring to extend loans to large, established companies at the expense of smaller peers. According to S&P Global Capital IQ LCD, the U.S. banks' share of senior secured loans went from 33% in 1995 to just 8% in 2022.
The fund leverages Blackstone's expansive trove of data on private companies to find attractive opportunities and primarily provides capital in return for secured debt. Secured debt is debt backed by collateral, which helps reduce the risks associated with lending. Most of the fund's debt investments are in first-lien loans (over 98%), meaning it has the first claim to collateral if a company goes under.
Although BDCs are vulnerable to an economic slowdown, nearly all the fund's loans have floating rates and a weighted average yield of 11.9%, making it a solid hedge if inflation and interest rates are persistently high. Additionally, the large composition of first-lien loans has it well positioned even during an economic downturn.
The Blackstone Secured Lending Fund currently yields investors 11.2% annually, paying out $2.17 in dividends per share this year. This dividend is well supported by its earnings per share of $2.77 through the first three quarters of the year. Also, over the last four years, its payout ratio has been around 84%, a high but sustainable ratio for a BDC, making it a solid high-yield dividend stock for income-focused investors.
3. Ares Capital has a 9.7% dividend yield and a longer history as a BDC
Like the Blackstone Secured Lending Fund, Ares Capital is a BDC that invests in middle-market companies through debt and equity investments.
Ares Capital has been around longer than the Blackstone Secured Lending Fund, so investors can better understand how the company performed across different economic environments. Since 2004, Ares Capital has delivered solid returns for patient investors who rode out multiple recessions.
Ares Capital also invests heavily in first-lien and second-lien loans, which make up 43% and 17% of its portfolio, respectively. Additionally, 78% of its loans are floating rate, and its investments have a weighted average yield of around 11.2%, which should support its lofty dividend payout.
Ares Capital yields investors 9.7% annually and has paid out $1.44 in dividends per share this year. The dividend is also well supported by its earnings per share of $2.03 through three quarters of the year. Additionally, over the last five years, Ares Capital's dividend payout ratio was around 83% of its earnings -- making it a quality high-yield dividend stock for investors to consider today.
Final verdict
When analyzing high-yield dividend stocks, it's important to consider the businesses and the companies' histories. B. Riley Financial has a lofty dividend yield, but the business has experienced a dramatic slowdown, and its high payout does not look very sustainable.
For me, it comes down to the two BDCs with more sound business models that better support their high dividend yields. Ares Capital has a more extended history, and investors can take comfort in knowing it has performed well over a long time despite multiple recessions.
However, if I had to pick one today, I would give the Blackstone Secured Lending Fund a slight edge. Although the company has only been around for a few short years, it has significantly more investments in first-lien debt, which could help it hold up slightly better if a deep recession were to occur.
10 stocks we like better than B. Riley Financial
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 B. Riley Financial wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Blackstone. 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 financial analytics firm Refinitiv, dealmaking like initial public offerings (IPOs) and mergers and acquisitions (M&As) was at an all-time high that year. These companies get tax treatment similar to real estate investment trusts (REITs) that requires them to pay out 90% of all taxable income to shareholders through dividends or other distributions. The fund leverages Blackstone's expansive trove of data on private companies to find attractive opportunities and primarily provides capital in return for secured debt.
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B. Riley Financial's lofty 17.3% dividend yield comes with big question marks B. Riley Financial provides financial services including investment banking, wealth and asset management, business advisory, and asset disposal. Blackstone Secured Lending Fund invests in underserved companies and sports a 11.2% dividend yield The Blackstone Secured Lending Fund is a business development corporation (BDC) that invests in private company debt to generate income for dividend-focused investors. Ares Capital has a 9.7% dividend yield and a longer history as a BDC Like the Blackstone Secured Lending Fund, Ares Capital is a BDC that invests in middle-market companies through debt and equity investments.
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Blackstone Secured Lending Fund invests in underserved companies and sports a 11.2% dividend yield The Blackstone Secured Lending Fund is a business development corporation (BDC) that invests in private company debt to generate income for dividend-focused investors. Ares Capital has a 9.7% dividend yield and a longer history as a BDC Like the Blackstone Secured Lending Fund, Ares Capital is a BDC that invests in middle-market companies through debt and equity investments. Additionally, over the last five years, Ares Capital's dividend payout ratio was around 83% of its earnings -- making it a quality high-yield dividend stock for investors to consider today.
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BDCs like the Blackstone Secured Lending Fund invest in middle-market companies that banks have neglected to invest in over recent decades. The Blackstone Secured Lending Fund currently yields investors 11.2% annually, paying out $2.17 in dividends per share this year. Ares Capital has a 9.7% dividend yield and a longer history as a BDC Like the Blackstone Secured Lending Fund, Ares Capital is a BDC that invests in middle-market companies through debt and equity investments.
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2023-12-06 00:00:00 UTC
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LendingTree Buys Back Approx. $100 Mln Of Outstanding 0.50% Senior Notes
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https://www.nasdaq.com/articles/lendingtree-buys-back-approx.-%24100-mln-of-outstanding-0.50-senior-notes
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(RTTNews) - Online financial platform, LendingTree, Inc. (TREE), Wednesday announced that it has repurchased 0.50% convertible senior notes worth approx. $100 million, which were issued in July 2020 and will be due in 2025.
The company has spent approx. $81.4 million in cash for this transaction.
On Tuesday, LendingTree's stock closed at $19.62, down by 0.66%.
The views and 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) - Online financial platform, LendingTree, Inc. (TREE), Wednesday announced that it has repurchased 0.50% convertible senior notes worth approx. $100 million, which were issued in July 2020 and will be due in 2025. On Tuesday, LendingTree's stock closed at $19.62, down by 0.66%.
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(RTTNews) - Online financial platform, LendingTree, Inc. (TREE), Wednesday announced that it has repurchased 0.50% convertible senior notes worth approx. $100 million, which were issued in July 2020 and will be due in 2025. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Online financial platform, LendingTree, Inc. (TREE), Wednesday announced that it has repurchased 0.50% convertible senior notes worth approx. $100 million, which were issued in July 2020 and will be due in 2025. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Online financial platform, LendingTree, Inc. (TREE), Wednesday announced that it has repurchased 0.50% convertible senior notes worth approx. $100 million, which were issued in July 2020 and will be due in 2025. The company has spent approx.
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2023-12-06 00:00:00 UTC
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ServiceNow (NOW) Stock Moves -0.29%: What You Should Know
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https://www.nasdaq.com/articles/servicenow-now-stock-moves-0.29%3A-what-you-should-know
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ServiceNow (NOW) closed the latest trading day at $686.23, indicating a -0.29% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.39%. On the other hand, the Dow registered a loss of 0.19%, and the technology-centric Nasdaq decreased by 0.59%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 12.1% in the past month. In that same time, the Computer and Technology sector gained 6.19%, while the S&P 500 gained 5.08%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is expected to report EPS of $2.78, up 21.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.4 billion, up 23.47% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.44 per share and revenue of $8.93 billion. These totals would mark changes of +37.55% and +23.27%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.99% higher. ServiceNow currently has a Zacks Rank of #2 (Buy).
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 65.93. This denotes a premium relative to the industry's average Forward P/E of 24.78.
We can also see that NOW currently has a PEG ratio of 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry currently had an average PEG ratio of 2.34 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.
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
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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Coming into today, shares of the maker of software that automates companies' technology operations had gained 12.1% in the past month. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.44 per share and revenue of $8.93 billion. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
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Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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ServiceNow currently has a Zacks Rank of #2 (Buy). Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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4e2ee736-d38f-4b8b-af25-a424844490b5
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2023-12-06 00:00:00 UTC
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ADP 103K, Productivity +5.2%: Goldilocks-Adjacent
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https://www.nasdaq.com/articles/adp-103k-productivity-5.2%3A-goldilocks-adjacent
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Good news hits the tape this Hump Day on economic data across the board — when’s the last time we said that? Pre-market futures are ebbing upward on the news from Automatic Data Processing ADP private-sector payrolls, a revision to Q3 Productivity and an October Trade Balance. The S&P 500 is currently +10 points, the Dow +53 and the Nasdaq +46 points.
ADP results for November came in below expectations: 103K new private-sector jobs were realized; 128K had been anticipated. This is also lower than the downwardly revised previous month, which moved from 113K originally reported to 106K today. Goods-making jobs came in negative, -14K, while Services made up +117K. This figure is off September cycle lows of 89K, but a long way from 455K reported in June of this year.
We can see where the pullback is located when we look at the new private-sector jobs allotment by industry: Trade/Transportation/Utilities gained the most, +55K, followed by Education/Healthcare +44K and Financial Services, +11K. But for the first time in 16 months, Leisure/Hospitality — long the industry leader in private-sector jobs gains — actually lost jobs for the month: -7K. Manufacturing was down -15K.
Small businesses (fewer than 50 employees), which largely consist of companies in the Leisure/Hospitality space, grew by +6K last month. Medium-sized firms (50-499 employees) gained the most private-sector positions for the month, +68K, and large firms made +33K new hires in November.
According to ADP Chief Economist Nela Richardson on CNBC’s “Squawk Box” this morning, these numbers represent a pronounced change in the labor market. The Leisure & Hospitality space, which helped lead wage growth over the past year and a half, has now brought this metric lower as well: job-changers now can expect +8.3% in wage gains, and there has never been this small a “premium for changing jobs” since this has been tracked, according to Richardson.
At roughly 100K private-sector job gains per month, Richardson says we’re “still on track for a soft landing” in the overall economy. Between retiring Baby Boomers out of the workforce and new hires in Gen-Z, 100K is slightly above what is needed in monthly jobs gains to keep labor market levels buoyant. For Friday’s Employment Situation report from the U.S. Bureau of Labor Statistics (BLS), expectations had been for 190K jobs filled in November; we’ll keep an eye out for downward revisions ahead of that release.
The final revision to Q3 Productivity was also better than expected: +5.2% is 30 basis-points (bps) higher than expected, 50 bps above the previous print. It’s the best quarter for productivity since we first emerged from the Covid pandemic back in Q3 2020. Unit Labor Costs also presented good news: with -1.2% revised down from the previous -0.8% — the biggest drop since Q4 2022. As any Econ 101 student knows, higher productivity and lower wage costs make for a stronger economy. Mark another notch for staying out of a recession.
The U.S. Trade Balance for October is arguably the only piece of “bad news” this morning: -$64.255 billion is the deepest cut we’ve seen since July. The good news here is that we are well off the -$70+ billion monthly trade deficits we’d seen as recently as April of this year. Going back to early 2022, we were seeing trade deficits sink below -$100 billion — a dire situation irritated by supply chain issues, etc. Pre-pandemic, our trade balance per month was hovering around -$50 billion; we hope to pull back to those levels in 2024.
It looks as if the big market gains in November was a well-placed bet on a stronger economy and cooling jobs market — relative Goldilocks levels when we consider whether we are truly suited for a “soft landing.” The Fed, which brings forth its next interest rate decision a week from today, has got to like what it sees. Had expectations been more negative over the past few weeks of trading, we’d likely be seeing a big jump in pre-markets, but a lot of this is baked in the cake.
Questions or comments about this article and/or author? Click 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
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pre-market futures are ebbing upward on the news from Automatic Data Processing ADP private-sector payrolls, a revision to Q3 Productivity and an October Trade Balance. According to ADP Chief Economist Nela Richardson on CNBC’s “Squawk Box” this morning, these numbers represent a pronounced change in the labor market. For Friday’s Employment Situation report from the U.S. Bureau of Labor Statistics (BLS), expectations had been for 190K jobs filled in November; we’ll keep an eye out for downward revisions ahead of that release.
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Pre-market futures are ebbing upward on the news from Automatic Data Processing ADP private-sector payrolls, a revision to Q3 Productivity and an October Trade Balance. Medium-sized firms (50-499 employees) gained the most private-sector positions for the month, +68K, and large firms made +33K new hires in November. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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But for the first time in 16 months, Leisure/Hospitality — long the industry leader in private-sector jobs gains — actually lost jobs for the month: -7K. The Leisure & Hospitality space, which helped lead wage growth over the past year and a half, has now brought this metric lower as well: job-changers now can expect +8.3% in wage gains, and there has never been this small a “premium for changing jobs” since this has been tracked, according to Richardson. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here.
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But for the first time in 16 months, Leisure/Hospitality — long the industry leader in private-sector jobs gains — actually lost jobs for the month: -7K. Medium-sized firms (50-499 employees) gained the most private-sector positions for the month, +68K, and large firms made +33K new hires in November. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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627cf873-96c6-432b-b266-59f535b87e3f
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714832.0
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2023-12-06 00:00:00 UTC
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Danish pension fund to sell its Tesla shares over union dispute
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https://www.nasdaq.com/articles/danish-pension-fund-to-sell-its-tesla-shares-over-union-dispute
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COPENHAGEN, Dec 6 (Reuters) - PensionDanmark, one of Denmark's largest pension funds, said on Wednesday it had decided to sell its holdings in Tesla TSLA.O over the U.S. auto company's refusal to enter into agreements with labour unions.
The decision is part of a growing Nordic movement to force Tesla to sign collective bargaining agreements with Swedish mechanics, who have been on strike since October.
Labour unions in Norway and Denmark this week said they would start blocking transit shipments of Tesla cars meant for the Swedish market.
Tesla has a policy of not agreeing to collective bargaining and says its employees have as good or better terms than those the Swedish union is demanding.
"In the light of the conflict now spreading to Denmark as well as Tesla's recent very categorical refusal to enter a labour union agreement in any country, we have come to the conclusion that we as investors at present hardly can influence the company," the pension fund said in an emailed statement.
"That is why we're now putting Tesla on our exclusion list," it said.
PensionDanmark, which manages pensions for 823,000 Danes, has 317.3 billion Danish crowns ($45.81 billion) under asset management.
The fund did not say how big its holdings in Tesla are.
($1 = 6.9268 Danish crowns)
(Reporting by Jacob Gronholt-Pedersen; Editing by Sandra Maler)
((jacob.pedersen@thomsonreuters.com; Twitter: @JacobGronholt;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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COPENHAGEN, Dec 6 (Reuters) - PensionDanmark, one of Denmark's largest pension funds, said on Wednesday it had decided to sell its holdings in Tesla TSLA.O over the U.S. auto company's refusal to enter into agreements with labour unions. The decision is part of a growing Nordic movement to force Tesla to sign collective bargaining agreements with Swedish mechanics, who have been on strike since October. "In the light of the conflict now spreading to Denmark as well as Tesla's recent very categorical refusal to enter a labour union agreement in any country, we have come to the conclusion that we as investors at present hardly can influence the company," the pension fund said in an emailed statement.
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COPENHAGEN, Dec 6 (Reuters) - PensionDanmark, one of Denmark's largest pension funds, said on Wednesday it had decided to sell its holdings in Tesla TSLA.O over the U.S. auto company's refusal to enter into agreements with labour unions. "In the light of the conflict now spreading to Denmark as well as Tesla's recent very categorical refusal to enter a labour union agreement in any country, we have come to the conclusion that we as investors at present hardly can influence the company," the pension fund said in an emailed statement. PensionDanmark, which manages pensions for 823,000 Danes, has 317.3 billion Danish crowns ($45.81 billion) under asset management.
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COPENHAGEN, Dec 6 (Reuters) - PensionDanmark, one of Denmark's largest pension funds, said on Wednesday it had decided to sell its holdings in Tesla TSLA.O over the U.S. auto company's refusal to enter into agreements with labour unions. Labour unions in Norway and Denmark this week said they would start blocking transit shipments of Tesla cars meant for the Swedish market. "In the light of the conflict now spreading to Denmark as well as Tesla's recent very categorical refusal to enter a labour union agreement in any country, we have come to the conclusion that we as investors at present hardly can influence the company," the pension fund said in an emailed statement.
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COPENHAGEN, Dec 6 (Reuters) - PensionDanmark, one of Denmark's largest pension funds, said on Wednesday it had decided to sell its holdings in Tesla TSLA.O over the U.S. auto company's refusal to enter into agreements with labour unions. The decision is part of a growing Nordic movement to force Tesla to sign collective bargaining agreements with Swedish mechanics, who have been on strike since October. Labour unions in Norway and Denmark this week said they would start blocking transit shipments of Tesla cars meant for the Swedish market.
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ea626111-9784-4469-aa01-e6479bf7c09d
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714833.0
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2023-12-06 00:00:00 UTC
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Sportsman's Warehouse (SPWH) Reports Q3 Loss, Tops Revenue Estimates
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https://www.nasdaq.com/articles/sportsmans-warehouse-spwh-reports-q3-loss-tops-revenue-estimates
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nan
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Sportsman's Warehouse (SPWH) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 90.91%. A quarter ago, it was expected that this outdoor sporting goods specialty retailer would post earnings of $0.02 per share when it actually produced a loss of $0.04, delivering a surprise of -300%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Sportsman's Warehouse, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $340.57 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 7.65%. This compares to year-ago revenues of $359.72 million. The company has topped consensus revenue estimates two 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.
Sportsman's Warehouse shares have lost about 46.1% since the beginning of the year versus the S&P 500's gain of 19%.
What's Next for Sportsman's Warehouse?
While Sportsman's Warehouse 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 Sportsman's Warehouse: 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 $0.14 on $364.76 million in revenues for the coming quarter and -$0.47 on $1.26 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - 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.
One other stock from the broader Zacks Retail-Wholesale sector, GMS (GMS), is yet to report results for the quarter ended October 2023. The results are expected to be released on December 7.
This company is expected to post quarterly earnings of $2.24 per share in its upcoming report, which represents a year-over-year change of -19.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
GMS's revenues are expected to be $1.39 billion, down 3.1% 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
Sportsman's Warehouse Holdings, Inc. (SPWH) : Free Stock Analysis Report
GMS Inc. (GMS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A quarter ago, it was expected that this outdoor sporting goods specialty retailer would post earnings of $0.02 per share when it actually produced a loss of $0.04, delivering a surprise of -300%. 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. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Sportsman's Warehouse, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $340.57 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 7.65%. The current consensus EPS estimate is $0.14 on $364.76 million in revenues for the coming quarter and -$0.47 on $1.26 billion in revenues for the current fiscal year. Click to get this free report Sportsman's Warehouse Holdings, Inc. (SPWH) : Free Stock Analysis Report GMS Inc. (GMS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Sportsman's Warehouse, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $340.57 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 7.65%. 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. Click to get this free report Sportsman's Warehouse Holdings, Inc. (SPWH) : Free Stock Analysis Report GMS Inc. (GMS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Sportsman's Warehouse, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $340.57 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 7.65%. 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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f90f8910-8e17-4a3d-ade9-9d4622a9b9fc
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714834.0
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2023-12-06 00:00:00 UTC
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2 Warren Buffett Stocks to Buy Hand Over Fist in December
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-hand-over-fist-in-december-0
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Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), owns lots of stocks. Two of its biggest holdings are oil stocks: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). They currently rank as Berkshire's fifth- and sixth-largest holdings. Together, they represent over 10% of its publicly traded stock portfolio.
Investors should consider scooping up that oil stock duo this month. Here's why they have the fuel to potentially produce strong total returns in 2024.
Catalysts for crude
Oil prices have meandered along this year. WTI, the primary U.S. oil price benchmark, currently trades around $75 per barrel. While WTI has been as high as $95 per barrel (and sank below $65 a barrel at one point), it has spent most of the year in the $75-to-$80 per barrel range. Meanwhile, Brent oil (the global benchmark) has been around that same range.
Most oil market watchers expect crude to be higher next year. The U.S. Energy Information Administration's (EIA) latest short-term energy outlook forecasts Brent oil to average $93 a barrel next year. That's the same price point pegged by Barclays. Meanwhile, Goldman Sachs sees oil trading between $70 and $100 a barrel next year, with clear catalysts to push crude to the upper end of that range.
OPEC is one of those catalysts. The group of oil-producing nations is currently debating whether to extend their production cuts into 2024. The group, plus some nonmembers (known collectively as OPEC+), reportedly plans to extend their current 1.3 million-barrel-per-day (BPD) cuts through March and could ultimately cut its output by 2.2 million BPD.
The market is skeptical that OPEC+ will deliver the expected cuts for next year. However, if OPEC limits supply, oil prices could trend toward the triple digits.
Meanwhile, there's always the potential for an oil supply shock. We got one in 2022 when Russia invaded Ukraine, sending the price of crude into the triple digits. There's a real risk for another one in 2024 if the Israel-Hamas war boils over into a larger conflict in the Middle East. Credit rating agency Fitch sees the potential for a higher oil price scenario where crude averages $120 a barrel next year in the event of a supply shock.
Crude is one of many catalysts for these Buffett stocks
Higher oil prices would enable Chevron and Occidental Petroleum to produce more earnings and cash flow in 2024. That alone would likely drive their share prices higher, following their slides in 2023:
OXY data by YCharts
It would also give them more cash to buy back more of their beaten-down shares. Chevron currently plans to repurchase $20 billion in stock next year, the top end of its $10 billion-$20 billion range. Occidental would also be able to repurchase more shares if oil prices were higher next year. That would likely trigger additional preferred stock repurchases from Buffett's company, enabling it to eliminate more of the high-cost funding it used to buy Anadarko in 2019.
However, oil isn't their only upside catalyst. Chevron is currently working to close its needle-moving deal for Hess. That transaction would significantly enhance its free cash flow and growth profile.
It's driving Chevron's view that it will be able to increase its dividend by 8% next year and boost its share repurchase rate by $2.5 billion per year to $20 billion annually. That's assuming $70 oil. If oil prices are higher, Chevron will generate more cash that it can allocate toward creating additional value for investors next year.
Meanwhile, Occidental is eyeing a needle-moving deal of its own. It has reportedly emerged as the leading bidder for CrownRock. An acquisition would significantly enhance the company's already meaningful position in the low-cost Permian Basin. A deal could also help it generate more cash next year, especially if oil prices increase.
In addition, both companies are working to advance their lower-carbon energy strategies. Occidental continues to move ahead with its direct-air capture (DAC) strategy, including securing commercial and financial partners for its first facility, which it expects to complete in 2025. Chevron is working on a range of lower-carbon opportunities, including carbon capture and biofuels. As investors start seeing more clarity on the future earnings from these new ventures, it could help boost their valuations.
2024 could be a strong year for these Buffett-backed oil stocks
Catalysts abound for Chevron and Occidental. Several factors could push oil prices higher, enabling them to generate more cash flow. Meanwhile, both oil companies could complete a needle-moving deal, enhancing their ability to cash in on higher crude prices. Finally, they continue to advance their lower-carbon energy strategies, which could become more evident growth drivers over the next year.
These factors make Chevron and Occidental compelling Buffett stocks to buy this month.
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Matthew DiLallo has positions in Berkshire Hathaway and Chevron. The Motley Fool has positions in and recommends Berkshire Hathaway and Goldman Sachs Group. The Motley Fool recommends Barclays Plc, Chevron, and Occidental Petroleum. 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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Credit rating agency Fitch sees the potential for a higher oil price scenario where crude averages $120 a barrel next year in the event of a supply shock. Crude is one of many catalysts for these Buffett stocks Higher oil prices would enable Chevron and Occidental Petroleum to produce more earnings and cash flow in 2024. Occidental continues to move ahead with its direct-air capture (DAC) strategy, including securing commercial and financial partners for its first facility, which it expects to complete in 2025.
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Two of its biggest holdings are oil stocks: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). Crude is one of many catalysts for these Buffett stocks Higher oil prices would enable Chevron and Occidental Petroleum to produce more earnings and cash flow in 2024. Several factors could push oil prices higher, enabling them to generate more cash flow.
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Crude is one of many catalysts for these Buffett stocks Higher oil prices would enable Chevron and Occidental Petroleum to produce more earnings and cash flow in 2024. If oil prices are higher, Chevron will generate more cash that it can allocate toward creating additional value for investors next year. 2024 could be a strong year for these Buffett-backed oil stocks Catalysts abound for Chevron and Occidental.
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Meanwhile, Goldman Sachs sees oil trading between $70 and $100 a barrel next year, with clear catalysts to push crude to the upper end of that range. Crude is one of many catalysts for these Buffett stocks Higher oil prices would enable Chevron and Occidental Petroleum to produce more earnings and cash flow in 2024. Meanwhile, both oil companies could complete a needle-moving deal, enhancing their ability to cash in on higher crude prices.
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e19f74b9-cf82-49f2-aec6-3081386e9ab7
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714835.0
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2023-12-06 00:00:00 UTC
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Q4 Earnings: What Can Investors Expect?
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https://www.nasdaq.com/articles/q4-earnings%3A-what-can-investors-expect
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nan
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Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
Q4 earnings for the S&P 500 index are currently expected to be up +0.1% from the year-earlier level on +2.3% higher revenues, which would follow the +3.4% earnings growth in 2023 Q3 on +2.0% higher revenues.
Earnings estimates for Q4 have been steadily coming down since the quarter got underway, with the current +0.1% growth pace down from +5.5% in early October. This is a bigger decline in earnings estimates compared to what we saw in the comparable periods for the first three quarters of 2023.
The negative revisions trend for Q4 is fairly broad-based, with earnings estimates for 12 of the 16 Zacks sectors coming down since the quarter got underway.
The Q3 earnings season isn’t officially finished yet, with results from 6 S&P 500 members still awaited. Earnings growth turned positive in Q3 after three back-to-back quarters of declines.
The Q3 earnings season showed that the overall earnings picture was stable and largely positive. Earnings growth for the S&P 500 index, which was negative for three back-to-back quarters, turned positive in Q3.
One major sector whose results really stood out in Q3 was the Tech sector, whose earnings increased +24.5% from the same period last year on +4.7% higher revenues. The sector had been going through a profitability drought since the start of 2022, but appears on track to resume its traditional growth attributes going forward, with double-digit earnings growth expected in each of the coming quarters.
For the current period (2023 Q4), the expectation is for S&P 500 earnings to be up +0.1% from the same period last year on +2.3% higher revenues.
The chart below shows how estimates for 2023 Q4 have evolved since the quarter got underway.
Image Source: Zacks Investment Research
This is a bigger decline in quarterly estimates compared to what we had seen in the comparable periods to either of the preceding two quarters. This is a reversal of the favorable revisions trend we have spotlighted in this space since April 2023.
Not only is there a bigger magnitude of cuts to Q4 estimates, but the pressure is also widespread, with estimates for 12 of the 16 Zacks getting cut since the start of October. The most significant cuts to estimates have been for the Autos, Medical, Consumer Discretionary, Transportation, and Basic Materials sectors.
We noted Disney DIS from the Consumer Discretionary sector and United Airlines UAL from the Transportation sector as examples of the aforementioned negative revisions trend.
The current Q4 Zacks Consensus EPS for Disney of $1.04 is down from $1.13 a month ago and $1.39 two months back. Disney shares were up following last week’s better-than-expected results, but the company’s near-term earnings outlook is under pressure.
The negative revisions trend is even more pronounced for United Airlines, which is currently expected to bring in $1.73 per share, down from $2.46 per share in the year-earlier period. United’s $1.73 estimate is down from $2.33 two months ago and $2.94 three months back.
You can see the pressure on full-year 2024 earnings estimates in the chart below, which shows the aggregate earnings estimates for the S&P 500 index since mid-May 2024.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture on a quarterly basis.
Image Source: Zacks Investment Research
As you can see from these quarterly earnings-growth expectations, the long-feared recession doesn’t appear in this near-term earnings outlook.
Below, we show the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
This big-picture view of corporate profitability doesn’t leave much room for that development either, as shown in the chart above. That said, we know that macroeconomic growth is moderating, which should have a negative impact on estimates. We showed earlier how estimates for the current and coming periods have started coming down lately, a trend that will most likely remain in place for some time.
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 Airlines Holdings Inc (UAL) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 negative revisions trend for Q4 is fairly broad-based, with earnings estimates for 12 of the 16 Zacks sectors coming down since the quarter got underway. Image Source: Zacks Investment Research As you can see from these quarterly earnings-growth expectations, the long-feared recession doesn’t appear in this near-term earnings outlook. Image Source: Zacks Investment Research This big-picture view of corporate profitability doesn’t leave much room for that development either, as shown in the chart above.
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Image Source: Zacks Investment Research This is a bigger decline in quarterly estimates compared to what we had seen in the comparable periods to either of the preceding two quarters. We noted Disney DIS from the Consumer Discretionary sector and United Airlines UAL from the Transportation sector as examples of the aforementioned negative revisions trend. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: Q4 earnings for the S&P 500 index are currently expected to be up +0.1% from the year-earlier level on +2.3% higher revenues, which would follow the +3.4% earnings growth in 2023 Q3 on +2.0% higher revenues. The negative revisions trend for Q4 is fairly broad-based, with earnings estimates for 12 of the 16 Zacks sectors coming down since the quarter got underway. You can see the pressure on full-year 2024 earnings estimates in the chart below, which shows the aggregate earnings estimates for the S&P 500 index since mid-May 2024.
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The negative revisions trend for Q4 is fairly broad-based, with earnings estimates for 12 of the 16 Zacks sectors coming down since the quarter got underway. Image Source: Zacks Investment Research The chart below shows the overall earnings picture on a quarterly basis. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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cceb44ef-d0a0-4fd4-a7aa-ccb9a9026f6e
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714836.0
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2023-12-06 00:00:00 UTC
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Suncor (SU) Anticipates Increased Production, CapEx for 2024
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https://www.nasdaq.com/articles/suncor-su-anticipates-increased-production-capex-for-2024
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Suncor Energy SU, a Canadian energy company, anticipates higher production in 2024 compared with the year-ago level, driven by strong performance from its Fort Hills asset. The company also expects increased capital expenditures for 2024, with a focus on growth projects.
Let’s delve into the company's projections, strategies and challenges, providing a detailed outlook for investors and industry enthusiasts.
Suncor's 2024 Production Forecast
Suncor anticipates production to be in the range of 770,000-810,000 barrels per day (bpd) in 2024. This reflects a 7% increase from the company's 2023 production guidance. The main reason behind this is the robust performance expected from its Fort Hills asset.
Fort Hills Operational Challenges
Fort Hills, an open-pit mine vital to Suncor's operations, faced operational challenges since its initiation in early 2018. Despite these hurdles, SU remains persistent in its commitment to overcoming obstacles through a methodically planned three-year improvement program.
Capital Expenditure Projections
The company’s capital expenditure for 2024 is expected to be in the range of C$6.3-C$6.5 billion, surpassing the current-year forecast of C$5.4 billion-C$5.8 billion. This substantial investment emphasizes Suncor's dedication to enhancing its infrastructure and positioning itself for long-term success.
Fort Hills Improvement Plan
Last year, SU predicted a 5% reduction in gross production and higher operating costs per barrel at Fort Hills. This was part of the company’s long-term improvement plan for the project. Suncor confirms that the three-year improvement plan is on target, with promising opportunities to further increase value.
Cost Efficiency Measures
In a bid to maximize shareholder returns, Suncor aims to implement focused cost reductions. The company's Fort Hills cash operating costs for the next year are estimated to be in the band of C$33-C$36 per barrel. This particular cost management strategy aligns with Suncor's commitment to improving free funds flow per share.
CEO Rich Kruger's Vision
Suncor CEO Rich Kruger highlighted the company's commitment to enhancing shareholder returns through cost reductions, production growth and strategic capital investments, as reflected in its 2024 guidance.
Refining Utilization and Throughput
Apart from its upstream focus, Suncor projects a refining utilization rate of 92-96% in 2024, with throughput ranging between 430,000 bpd and 445,000 bpd. This diversification strategy showcases the company’s commitment to maintaining a balanced and resilient portfolio in a dynamic energy market.
Global Oil Market Dynamics
While global oil prices have scaled back compared with the previous year’s number, they remain at a level that allows companies, including Suncor, to drill profitably. Suncor's forward-looking approach takes into account the evolving dynamics of the oil market, positioning the company for sustainable growth amid market fluctuations.
Conclusion
Suncor’s 2024 forecast paints a promising picture of growth and resilience. By addressing operational challenges, implementing cost-efficient measures and diversifying its portfolio, it is poised to capitalize on opportunities in the energy sector.
Zacks Rank and Key Picks
Currently, SU carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International, Inc. OII and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $45 billion. The company currently pays a dividend of $1.79 per share, or 4.84%, on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
Oceaneering International is worth $2.08 billion. In the past year, its shares have risen 36.3%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
Liberty Energy is valued at $3.35 billion. LBRT currently pays a dividend of 20 cents per share, or 1.01%, on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to the North American onshore exploration and production companies.
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
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : 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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By addressing operational challenges, implementing cost-efficient measures and diversifying its portfolio, it is poised to capitalize on opportunities in the energy sector. WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments. The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
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CEO Rich Kruger's Vision Suncor CEO Rich Kruger highlighted the company's commitment to enhancing shareholder returns through cost reductions, production growth and strategic capital investments, as reflected in its 2024 guidance. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International, Inc. OII and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Suncor Energy SU, a Canadian energy company, anticipates higher production in 2024 compared with the year-ago level, driven by strong performance from its Fort Hills asset. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International, Inc. OII and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Suncor's 2024 Production Forecast Suncor anticipates production to be in the range of 770,000-810,000 barrels per day (bpd) in 2024. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International, Inc. OII and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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9da8df0a-eab0-4e81-92ef-8b76b713c9fc
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714837.0
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2023-12-06 00:00:00 UTC
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Accuray (ARAY) Launches VitalHold in Japan for Use With Radixact
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https://www.nasdaq.com/articles/accuray-aray-launches-vitalhold-in-japan-for-use-with-radixact
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Accuray Incorporated ARAY announced the launch of its VitalHold package in Japan. The company commenced sales from Nov 30, 2023. This package supports surface-guided radiation therapy (SGRT) on the Radixact System, advancing breast cancer treatment.
The Radixact System, with the VitalHold package, will widen Accuray's offerings. With more than 100 units of the Radixact System in routine use for cancer treatment in the Japanese market, this latest technological innovation is poised to play a pivotal role, particularly in the treatment of breast cancer.
Accuray's focus on advancing radiotherapy will likely solidify its foothold in the Japanese market and reinforce its contribution to the development of cancer care.
Price Performance
Shares of ARAY have risen 31.6% year to date against the industry’s 3.3% decline. The S&P 500 has increased 19.6% in the said time frame.
Image Source: Zacks Investment Research
Enhancing Precision With SGRT
The VitalHold feature integrates SGRT capability on the Radixact System using the Catalyst+ HD system by C-RAD. This integration facilitates deep inspiration breath hold (DIBH) treatments, particularly crucial in addressing left-sided breast cancers. SGRT technology ensures highly accurate positioning by scanning the patient's body surface with a high-resolution camera and reconstructing it as a real-time 3D image. This capability aids medical teams in visualizing and maintaining the precise alignment of the patient during treatment, contributing to increased reproducibility.
DIBH irradiation is currently the gold standard in treating left breast cancer due to its ability to separate the chest wall and targeted tumor from the heart. The VitalHold package, by enabling markerless patient setup and real-time confirmation of correct positioning, not only streamlines the treatment process but also reduces stress on patients. This is particularly significant as it eliminates the need for permanent marks or lines on the patient's body.
The markerless patient setup and the ease of performing DIBH treatments mark a considerable advancement in the efficiency and patient experience of breast cancer radiotherapy.
Industry Prospects
Per a report by Market Data Forecast, the radiation therapy market in the Asia Pacific region was estimated at $1.37 billion in 2023 and is anticipated to reach $1.90 billion by 2028 at a CAGR of 6.8%. Several factors like large and increasing elderly population, better healthcare infrastructure, increasing per capita income and rising cancer cases are likely to drive demand for radiation therapies.
Given the market potential, the latest product offering is expected to provide a significant boost to Accuray’s business in the country.
Recent Developments
Last month, the company reported first-quarter fiscal 2024 results, wherein its overall top-line performance and robust Product revenues were encouraging. Geographically, Accuray’s performance was strong in EIMEA (Europe, India, the Middle East and Africa), China and Japan, which was also impressive. The expansion in the global installed base looks promising.
Continued strong demand for Accuray’s CyberKnife, Radixact and TomoTherapy platforms buoys optimism. The gross margin expansion also bodes well. However, dismal bottom-line performance and a decline in gross orders were disappointing.
In October, Accuray announced that an online adaptive therapy option, Cenos, is under review with the FDA for a 501(k) clearance. Cenos will be used with ARAY’s Radixact system, enabling medical care teams to quickly and efficiently make the necessary adjustments to a treatment plan while operating.
The therapy option leverages real-time adaptive therapy through the company's proprietary Synchrony technology and offline adaptive with PreciseART radiotherapy to check for any anatomical changes during radiation delivery. The solution was developed in partnership with Limbus AI. The latest offering is expected to significantly strengthen Accuray’s TomoTherapy radiation therapy platform on a global scale.
In October, the CNNC-Accuray joint venture Tomo C radiation therapy system got approval from the Chinese National Medical Products Administration.
Accuray Incorporated Price
Accuray Incorporated price | Accuray Incorporated Quote
Zacks Rank & Stocks to Consider
Currently, Accuray carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Biodesix BDSX and Integer Holdings Corporation ITGR.
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.55%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 35.9% year to date compared with the industry’s 2.3% growth.
Biodesix, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 32.3% for 2024. BDSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.76%.
Biodesix’s shares have lost 35.2% year to date compared with the industry’s 11.9% decline.
Integer Holdings, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 27.4% year to date against the industry’s 4.9% decline.
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
Accuray Incorporated (ARAY) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
Biodesix, Inc. (BDSX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SGRT technology ensures highly accurate positioning by scanning the patient's body surface with a high-resolution camera and reconstructing it as a real-time 3D image. DIBH irradiation is currently the gold standard in treating left breast cancer due to its ability to separate the chest wall and targeted tumor from the heart. Cenos will be used with ARAY’s Radixact system, enabling medical care teams to quickly and efficiently make the necessary adjustments to a treatment plan while operating.
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Accuray Incorporated Price Accuray Incorporated price | Accuray Incorporated Quote Zacks Rank & Stocks to Consider Currently, Accuray carries a Zacks Rank #3 (Hold). DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 18.3%. Click to get this free report Accuray Incorporated (ARAY) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Biodesix, Inc. (BDSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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With more than 100 units of the Radixact System in routine use for cancer treatment in the Japanese market, this latest technological innovation is poised to play a pivotal role, particularly in the treatment of breast cancer. Accuray Incorporated Price Accuray Incorporated price | Accuray Incorporated Quote Zacks Rank & Stocks to Consider Currently, Accuray carries a Zacks Rank #3 (Hold). Click to get this free report Accuray Incorporated (ARAY) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Biodesix, Inc. (BDSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This package supports surface-guided radiation therapy (SGRT) on the Radixact System, advancing breast cancer treatment. The Radixact System, with the VitalHold package, will widen Accuray's offerings. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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ad2b43d9-22e3-4c3b-9466-e5605cd19a38
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714838.0
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2023-12-06 00:00:00 UTC
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Palo Alto Networks (PANW) Completes Dig Security Acquisition
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https://www.nasdaq.com/articles/palo-alto-networks-panw-completes-dig-security-acquisition
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Palo Alto Networks PANW revealed on Tuesday that it has completed the previously announced acquisition of Dig Security, an innovative provider of Data Security Posture Management (“DSPM”). The two companies entered into a definitive agreement in late October 2023, under which Palo Alto agreed to acquire Dig Security.
Israel-based Dig Security has developed a DSPM platform that allows organizations to discover, classify, monitor and protect sensitive data across all cloud data stores. The platform can automatically map out the data assets residing across a company’s cloud environment as well as on-premise file-sharing applications. Therefore, the acquisition of Dig Security will provide Palo Alto’s customers with enhanced visibility into and control of their multi-cloud data estate.
Dig to Boost PANW’s Prisma Cloud Capabilities
The Prisma Cloud platform brings all of Palo Alto’s cloud security solutions under one umbrella to meet the need for end-to-end networking and security solutions. This enables enterprises to better focus on business growth without worrying about security loopholes in the system.
Palo Alto Networks, Inc. Price and Consensus
Palo Alto Networks, Inc. price-consensus-chart | Palo Alto Networks, Inc. Quote
Palo Alto has integrated Dig Security’s cutting-edge capabilities into its Prisma Cloud platform. With this integration, the company has fortified Prisma Cloud capabilities, which will now be able to provide organizations with near-real-time data protection across the entire cloud estate.
Palo Alto has been continuously focusing on strengthening the Prisma Cloud platform’s comprehensive cloud security capabilities through acquisitions and the addition of new tools and features. In December 2022, the company completed the acquisition of Tel Aviv-Yafo, Israel-based company, Cider Security.
Cider Security provides application security and software supply-chain security solutions, which offer continuous integration/continuous delivery platforms from a single place. These allow IT teams to build AppSec programs more securely. Thus, Cider Security platforms help bridge the gap between security and the engineering of applications.
Prior to that, in October 2022, the company added software composition analysis tools to Prisma Cloud. By combining Cider Security’s solutions with the newly launched software composition analysis tools, Prisma Cloud will now offer the industry's most comprehensive supply-chain security solution as part of its code-to-cloud security platform.
In 2021, the company had acquired Bridgecrew. The acquisition not only strengthened the Prisma Cloud platform’s comprehensive cloud security capabilities but also made PANW the first company to provide end-to-end security across the full application lifecycle.
Zacks Rank & Stocks to Consider
Currently, Palo Alto carries a Zacks Rank #3 (Hold). Shares of PANW have surged 109.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 58.5% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 5% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 21 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 60.7% 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
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Therefore, the acquisition of Dig Security will provide Palo Alto’s customers with enhanced visibility into and control of their multi-cloud data estate. 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 Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days.
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Palo Alto Networks, Inc. Price and Consensus Palo Alto Networks, Inc. price-consensus-chart | Palo Alto Networks, Inc. Quote Palo Alto has integrated Dig Security’s cutting-edge capabilities into its Prisma Cloud platform. Cider Security provides application security and software supply-chain security solutions, which offer continuous integration/continuous delivery platforms from a single place. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Dig to Boost PANW’s Prisma Cloud Capabilities The Prisma Cloud platform brings all of Palo Alto’s cloud security solutions under one umbrella to meet the need for end-to-end networking and security solutions. Palo Alto Networks, Inc. Price and Consensus Palo Alto Networks, Inc. price-consensus-chart | Palo Alto Networks, Inc. Quote Palo Alto has integrated Dig Security’s cutting-edge capabilities into its Prisma Cloud platform. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Palo Alto has been continuously focusing on strengthening the Prisma Cloud platform’s comprehensive cloud security capabilities through acquisitions and the addition of new tools and features. The acquisition not only strengthened the Prisma Cloud platform’s comprehensive cloud security capabilities but also made PANW the first company to provide end-to-end security across the full application lifecycle. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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60e3bc33-8c0c-4df9-964d-84b52cc27829
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714839.0
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2023-12-06 00:00:00 UTC
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Eni (E) Signs MoU With Ministry of Defence for Italy's Security
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https://www.nasdaq.com/articles/eni-e-signs-mou-with-ministry-of-defence-for-italys-security
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Eni SpA E CEO, Claudio Descalzi, and the minister of Defence, Guido Crosetto, officially signed a Memorandum of Understanding (MoU) in Rome, aimed at enhancing Italy's security and boosting national defense capabilities.
The agreement signifies an intensified strategic collaboration between the Ministry of Defence and Eni to gather the expertise and information crucial for security and risk assessment in areas of common geopolitical interest.
The MoU specifically addresses scenarios related to safeguarding critical infrastructure and areas of strategic importance aligned with national interests. It outlines joint initiatives to support local communities and highlights the promotion of innovation, with a focus on emerging technologies.
Additionally, the agreement highlights organizational, educational and training aspects that will contribute to the development of a robust and resilient security framework.
Crosetto expressed his enthusiasm about the signed agreement, stating that the MoU marks a significant step and strengthens the synergy between the Ministry of Defence and Eni. The partnership represents a shared commitment to national defense and the well-being of local communities.
Descalzi emphasized the importance of the partnership, stating that the agreement strengthens the cooperation already in place and confirms the importance of public-private partnerships as an effective risk management tool to protect strategic activities and national economic and industrial initiatives.
Zacks Rank & Key Picks
E currently has a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Matador Resources Company MTDR, Liberty Energy Inc. LBRT and Viper Energy, Inc. VNOM. While Matador Resources sports a Zacks Rank #1 (Strong Buy), both Liberty Energy and Viper Energy carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
Viper Energy is a variable distribution MLP based in Midland, TX. It generates strong and steady royalty income from mineral interests in Eagle Ford and Permian Basin. The business strategies of the partnership include acquiring mineral interests from third parties and the parent company.
VNOM’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 92.62%.
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
Eni SpA (E) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Viper Energy Inc. (VNOM) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eni SpA E CEO, Claudio Descalzi, and the minister of Defence, Guido Crosetto, officially signed a Memorandum of Understanding (MoU) in Rome, aimed at enhancing Italy's security and boosting national defense capabilities. The agreement signifies an intensified strategic collaboration between the Ministry of Defence and Eni to gather the expertise and information crucial for security and risk assessment in areas of common geopolitical interest. Crosetto expressed his enthusiasm about the signed agreement, stating that the MoU marks a significant step and strengthens the synergy between the Ministry of Defence and Eni.
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Some better-ranked stocks in the energy sector are Matador Resources Company MTDR, Liberty Energy Inc. LBRT and Viper Energy, Inc. VNOM. While Matador Resources sports a Zacks Rank #1 (Strong Buy), both Liberty Energy and Viper Energy carry a Zacks Rank #2 (Buy) at present. Click to get this free report Eni SpA (E) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report Viper Energy Inc. (VNOM) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Some better-ranked stocks in the energy sector are Matador Resources Company MTDR, Liberty Energy Inc. LBRT and Viper Energy, Inc. VNOM. While Matador Resources sports a Zacks Rank #1 (Strong Buy), both Liberty Energy and Viper Energy carry a Zacks Rank #2 (Buy) at present. Click to get this free report Eni SpA (E) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report Viper Energy Inc. (VNOM) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Some better-ranked stocks in the energy sector are Matador Resources Company MTDR, Liberty Energy Inc. LBRT and Viper Energy, Inc. VNOM. While Matador Resources sports a Zacks Rank #1 (Strong Buy), both Liberty Energy and Viper Energy carry a Zacks Rank #2 (Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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e01c7f32-7beb-4167-ad2b-58941fce1349
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714840.0
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2023-12-06 00:00:00 UTC
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Got $3,000? These Stocks Could Double Your Money by 2030
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https://www.nasdaq.com/articles/got-%243000-these-stocks-could-double-your-money-by-2030-6
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Investors with cash to spare right now are in a great position to build their wealth. The market's volatility has pushed shares of quality companies well below their previous highs, but many of these companies have continued to grow, potentially setting up a timely opportunity to buy shares ahead of a rebound.
If you don't have more important things to do with your cash (such as paying down high-interest-rate debt), here are three great stocks that could potentially double your money by 2030.
1. Dutch Bros
Shares of Dutch Bros (NYSE: BROS) have underperformed this year, as traffic and sales slowed. The popular coffee shop chain hasn't been as resilient to inflation as more established restaurant brands, but its stock is a good buy right now for a few reasons.
Dutch Bros has posted two consecutive quarters of accelerating same-shop sales, a metric that measures the revenue growth of stores open 15 months or longer. While its 4% growth was not on the level of what Starbucks was achieving, Dutch Bros can grow much faster than that. It regularly posted same-shop sales increases in the 5% to 10% range a few years ago.
Another reason to like the stock is that Dutch Bros has room to expand for many years. It ended last quarter with 794 locations in 16 states. Management intends to boost that to 4,000 shops over the next 10 to 15 years.
But most importantly, Dutch Bros is starting to show improving profitability. In Q3, its company-operated shops had a high contribution margin of 31%, which was an improvement from 25.6% in the same quarter last year.
Combine its annual double-digit percentage sales growth prospects with a profitable business model, and investors could be looking at a rewarding investment. The stock's price-to-sales ratio of 1.77 positions it for returns that could mirror the company's underlying sales growth. That could easily result in the share price doubling by 2030.
2. Global-E Online
Global-E Online's (NASDAQ: GLBE) shares are up 42% since the company's initial public offering in 2021. It serves a rapidly growing market in cross-border online shopping, which makes it a promising growth stock to hold in your portfolio.
Cross-border e-commerce is expected to grow nearly 10-fold from 2021 through 2030, according to Statista. Global-E is well positioned in this market. It's the backbone of Shopify Markets Pro, a platform that helps merchants grow their businesses internationally.
Businesses love Global-E because it localizes the shopping experience for overseas customers. It translates websites into other languages, offers payment methods that are widely used in the specific customer's home market, and handles import duties and taxes for international transactions.
The proof is in the numbers. Global-E's platform saw a 53% year-over-year increase in e-commerce sales during Black Friday weekend. Management expects full-year revenue to be up roughly 39% in 2023. Despite the recent weakness in consumer spending in certain retail categories, management expects growth rates to accelerate in the near term.
Global-E Online continues to onboard top brands around the world, which is a testament to the value it brings merchants. With Shopify Markets Pro now available for the U.S. market, Global-E should see growing sales on its platform over the next year, which could kick-start a run toward the share price doubling by 2030.
3. Take-Two Interactive
Shares of Take-Two Interactive (NASDAQ: TTWO) are up 52% this year. As one of the leading video game producers, Take-Two stock delivered outstanding returns for investors over the last 10 years, and has plenty of opportunities for more growth.
The company's top-selling game in recent years -- Grand Theft Auto V -- has sold more than 190 million copies, and its NBA 2K series continues to rank as one of the top sports titles every year. These franchises have gained a wide reputation in the industry for quality gameplay, and Take-Two is looking to extend its expertise across more titles in the years to come.
Take-Two has guided for record financial results in fiscal 2025, with bookings expected to reach $8 billion, up from an expected $5.4 billion in fiscal 2024, which ends in March.
"Our development pipeline is robust and diverse, and we're getting closer to delivering the groundbreaking titles that our audiences throughout the world have been anticipating eagerly," CEO Strauss Zelnick said on the most recent earnings call.
Based on Wall Street's estimates for fiscal 2025, the stock trades at a forward price-to-sales ratio of 3.44, which is low for a video game stock. If the shares were to trade at a comparable sales ratio to Electronic Arts, that would push Take-Two stock up 33% over the next year. Factoring in future growth in the business, the stock should at least double in value by 2030.
10 stocks we like better than Dutch Bros
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 Dutch Bros 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 Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Global-e Online, Shopify, Starbucks, and Take-Two Interactive Software. The Motley Fool recommends Electronic Arts. 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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Dutch Bros has posted two consecutive quarters of accelerating same-shop sales, a metric that measures the revenue growth of stores open 15 months or longer. It translates websites into other languages, offers payment methods that are widely used in the specific customer's home market, and handles import duties and taxes for international transactions. "Our development pipeline is robust and diverse, and we're getting closer to delivering the groundbreaking titles that our audiences throughout the world have been anticipating eagerly," CEO Strauss Zelnick said on the most recent earnings call.
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Global-E Online Global-E Online's (NASDAQ: GLBE) shares are up 42% since the company's initial public offering in 2021. It's the backbone of Shopify Markets Pro, a platform that helps merchants grow their businesses internationally. The Motley Fool has positions in and recommends Global-e Online, Shopify, Starbucks, and Take-Two Interactive Software.
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Dutch Bros Shares of Dutch Bros (NYSE: BROS) have underperformed this year, as traffic and sales slowed. With Shopify Markets Pro now available for the U.S. market, Global-E should see growing sales on its platform over the next year, which could kick-start a run toward the share price doubling by 2030. See the 10 stocks *Stock Advisor returns as of November 29, 2023 John Ballard has no position in any of the stocks mentioned.
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Global-E is well positioned in this market. With Shopify Markets Pro now available for the U.S. market, Global-E should see growing sales on its platform over the next year, which could kick-start a run toward the share price doubling by 2030. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Dutch Bros wasn't one of them!
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1572840d-c753-4037-b31d-2412fe5f5248
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714841.0
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2023-12-06 00:00:00 UTC
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Cathie Wood Is Selling This Innovative Growth Stock. Should You?
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DCOMP
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https://www.nasdaq.com/articles/cathie-wood-is-selling-this-innovative-growth-stock.-should-you
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Fool.com contributor Parkev Tatevosian highlights one growth stock that Cathie Wood is unloading from her investment portfolio.
*Stock prices used were the afternoon prices of Dec. 3, 2023. The video was published on Dec. 5, 2023.
10 stocks we like better than Shopify
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 Shopify wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian highlights one growth stock that Cathie Wood is unloading from her investment portfolio. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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*Stock prices used were the afternoon prices of Dec. 3, 2023. 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 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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10 stocks we like better than Shopify 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 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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See the 10 stocks *Stock Advisor returns as of December 4, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. His opinions remain his own and are unaffected by The Motley Fool.
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497ed845-d382-4bb1-b184-dfd26c2ec6ae
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714842.0
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2023-12-06 00:00:00 UTC
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New Strong Buy Stocks for December 6th
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DCOMP
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https://www.nasdaq.com/articles/new-strong-buy-stocks-for-december-6th-1
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Everest Group, Ltd. EG: This company which is a property and casualty insurer and reinsurer, has seen 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
Adecoagro AGRO: This company which is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation, has seen the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days.
Adecoagro S.A. Price and Consensus
Adecoagro S.A. price-consensus-chart | Adecoagro S.A. Quote
Arcos Dorados ARCO: This company which operates as a franchisee of McDonald's with its operations divided in Brazil, Latin America and the Caribbean, has seen the Zacks Consensus Estimate for its current year earnings increasing 6.7% over the last 60 day.
Arcos Dorados Holdings Inc. Price and Consensus
Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote
Stellantis STLA: This company which is an automakers and a mobility provider, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days.
Stellantis N.V. Price and Consensus
Stellantis N.V. price-consensus-chart | Stellantis N.V. Quote
Insight Enterprises NSIT: This company which is a global direct marketer of brand name computers, hardware and software, has seen the Zacks Consensus Estimate for its current year earnings increasing 2.0% over the last 60 days.
Insight Enterprises, Inc. Price and Consensus
Insight Enterprises, Inc. price-consensus-chart | Insight Enterprises, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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
Adecoagro S.A. (AGRO) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report
Stellantis N.V. (STLA) : 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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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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Everest Group, Ltd. Price and Consensus Everest Group, Ltd. price-consensus-chart | Everest Group, Ltd. Quote Adecoagro AGRO: This company which is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation, has seen the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days. Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote Stellantis STLA: This company which is an automakers and a mobility provider, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days. Click to get this free report Adecoagro S.A. (AGRO) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report Stellantis N.V. (STLA) : 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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Everest Group, Ltd. Price and Consensus Everest Group, Ltd. price-consensus-chart | Everest Group, Ltd. Quote Adecoagro AGRO: This company which is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation, has seen the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days. Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote Stellantis STLA: This company which is an automakers and a mobility provider, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days. Click to get this free report Adecoagro S.A. (AGRO) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report Stellantis N.V. (STLA) : 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 five stocks added to the Zacks Rank #1 (Strong Buy) List today: Everest Group, Ltd. EG: This company which is a property and casualty insurer and reinsurer, has seen the Zacks Consensus Estimate for its current year earnings increasing 16.4% over the last 60 days. Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote Stellantis STLA: This company which is an automakers and a mobility provider, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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84d8b6be-c2a6-4a89-9bc2-b8b789214d14
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714843.0
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2023-12-06 00:00:00 UTC
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Can Nvidia Ever Be a $2 Trillion Stock?
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DCOMP
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https://www.nasdaq.com/articles/can-nvidia-ever-be-a-%242-trillion-stock
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was always a matter of time before Nvidia (NASDAQ:NVDA) stock broke through the trillion-dollar threshold. It was simply when, not if. The rise of AI finally propelled the chip stock across the threshold earlier this summer. Today Nvidia is valued at $1.15 trillion and the question naturally arises, can it become a $2 trillion stock?
Yes, would seem the obvious answer, but when? Nvidia stock is not cheap. It trades at 61 times earnings, 25 times sales, and 65 times free cash flow. Those are lofty valuations even for a business hitting on all cylinders like Nvidia. So let’s look more closely at whether the chipmaker falls back below $1 trillion before it hits $2 trillion.
Paying up for Quality
Only four other companies have such richly valuations: Apple, Microsoft, Alphabet, and Amazon are all worth north of $1 trillion. All five stocks also have the distinction of being included in the so-called Magnificent 7 group of stocks that counted for almost all the S&P 500’s gains for most of the year. Meta Platforms and Tesla are the other two.
Of those seven companies, however, none has performed better than NVDA stock. Its shares are up 220% year-to-date. Because the chip stock represents about 3% of the broad index’s total valuation, Nvidia had an outsized influence on its performance.
As noted before, AI was the driving force behind the gains. OpenAI’s release of ChatGPT almost exactly one year ago ignited a torrent of interest in the technology. Other generative AI models soon followed and now the genie is out of the bottle. Nvidia remains perfectly positioned to capture much of the demand.
Its AI chip architecture offers the sort of computing power needed for the complex computations AI demands. And customer demand for its chips remains strong. Data center revenue quadrupled from last year and networking revenue nearly tripled. Cloud service providers, for example, account for half of all the demand Nvidia’s data center segment saw in the third quarter.
CFO Collete Kress told analysts, “Some of the most exciting generative AI applications are built and run on Nvidia, including Adobe, Firefly, ChatGPT, (and) Microsoft 365 Copilot.”
NVDA Stock Weakness?
The gains speak to a long road of expansion for Nvidia, but it’s not all open highway. New government restrictions on the computer chips companies can sell to China will affect NVDA stock.
China represents 22%, or $4 billion of the chipmaker’s total $18 billion revenue stream. They accounted for one-fifth to one-quarter of Nvidia’s data center revenue. Kress said she did not have good visibility into the magnitude the export controls will have on its business.
CEO Jensen Huang remains convinced Nvidia will keep growing. It has new customers coming online all the time, including new sovereign AI clouds. Revenue could expand not only next year, but in 2025 as well.
There is also a lot of uncertainty as to the ultimate impact AI will have on customer bottom lines. While it’s the hot new thing, if cost savings or productivity improvements don’t materialize on the scale expected, that could lead to a slowdown in demand. And at some point, demand will slow naturally. That could also deflate Nvidia’s prospects.
Nvidia looks primed to benefit. However, it is also priced for perfection. The first speed bump it hit was China export controls for new technology. They caused NVDA stock to fall back to the $400 per share level.
To hit $2 trillion, NVDA stock will need to almost double from here. Some time in the future it appears likely to achieve that. But there are enough potential hiccups ahead that an investor should proceed with caution. A pullback to below $400 a share would be a better value proposition to buy in.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Can Nvidia Ever Be a $2 Trillion Stock? 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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Paying up for Quality Only four other companies have such richly valuations: Apple, Microsoft, Alphabet, and Amazon are all worth north of $1 trillion. CFO Collete Kress told analysts, “Some of the most exciting generative AI applications are built and run on Nvidia, including Adobe, Firefly, ChatGPT, (and) Microsoft 365 Copilot.” NVDA Stock Weakness? While it’s the hot new thing, if cost savings or productivity improvements don’t materialize on the scale expected, that could lead to a slowdown in demand.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was always a matter of time before Nvidia (NASDAQ:NVDA) stock broke through the trillion-dollar threshold. So let’s look more closely at whether the chipmaker falls back below $1 trillion before it hits $2 trillion. China represents 22%, or $4 billion of the chipmaker’s total $18 billion revenue stream.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was always a matter of time before Nvidia (NASDAQ:NVDA) stock broke through the trillion-dollar threshold. Today Nvidia is valued at $1.15 trillion and the question naturally arises, can it become a $2 trillion stock? CFO Collete Kress told analysts, “Some of the most exciting generative AI applications are built and run on Nvidia, including Adobe, Firefly, ChatGPT, (and) Microsoft 365 Copilot.” NVDA Stock Weakness?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was always a matter of time before Nvidia (NASDAQ:NVDA) stock broke through the trillion-dollar threshold. Of those seven companies, however, none has performed better than NVDA stock. Nvidia remains perfectly positioned to capture much of the demand.
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29928314-7207-49bb-ae8f-ff6868e97e08
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714844.0
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2023-12-06 00:00:00 UTC
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Is IonQ Stock a Buy?
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DCOMP
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https://www.nasdaq.com/articles/is-ionq-stock-a-buy
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nan
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Quantum computing is something you may have seen in a sci-fi movie. However, the technology has existed since the late 1990s. Today, it's becoming increasingly practical, and companies are rushing to build systems capable of harnessing the power of quantum physics to build computer systems more capable than ever thought possible.
IonQ (NYSE: IONQ) is among the companies trying to bring these remarkable machines to life. Understandably, any company working on cutting-edge technology will garner interest from Wall Street. IonQ's stock is up more than 160% over the past year.
That sounds good, but IonQ might be a riskier stock than some may think. Here's why.
Quantum computing: What's going on?
Quantum technology can create the most powerful computers the world has ever seen. Today's computers function on bits, or tiny binary pieces of data that act like a switch. They are either on or off, or in computer language, a one or a zero. All computer data today is broken down to its simplest form: strings of ones and zeros.
But quantum computing potentially changes how basic computing rules work. Quantum computing uses quantum bits, called qubits. Bits are binary, either at a one or zero. However, qubits can be a one, zero, or anything between. One qubit could be half-zero and half-one, or 20% zero and 80% one.
This flexibility, called superposition, is the potential secret sauce to create these quantum computers that can be significantly more powerful than existing technology. There's a reasonable chance that quantum computing will be vital in developing advanced artificial intelligence and other emerging technologies over the coming decades.
A sea of competition
IonQ isn't alone in the race to develop quantum computing technology. From tech giants like Amazon, IBM, Alphabet, and Microsoft to a range of smaller upstarts, a gaggle of companies is competing in the space.
Of course, IonQ claims its technology is better than the pack. It uses individual atomic ion qubits in an ion trap, which the company says is highly configurable and environmentally stable, allowing it to make faster progress in development.
It's also the only quantum hardware compatible with all three major cloud platforms: Amazon's AWS, Google Cloud, and Microsoft Azure.
More hype than substance right now
Investors should note that the company needs to translate this to commercial success; Q3 revenue was just $6.1 million, a drop in the buck for a company with a market cap of almost $3 billion. It's still very early and, thus, a little harsh to judge revenue today. Analysts see revenue growing to nearly $200 million by late 2026.
The company recently announced a new $25 million contract with the U.S. Air Force for research. Getting government business is always a good thing and opens up the door to future potential agreements. IonQ's management cites an estimate that quantum computing will be a $65 billion market by 2030. There is potential for the company when you look at least five years out.
However, investors should avoid assuming IonQ will dominate and win business over its competitors. Even if IonQ's quantum product is superior, more goes into a company than having the best technology. Until meaningful revenue arrives, investors are taking a leap of faith, naturally making the stock riskier.
Is IonQ stock a buy?
The company's $3 billion market cap on little revenue shows the market is pricing in success that technically has yet to happen. That will always make a stock riskier, because you're buying a story with potential, not concrete financials. Investors have yet to determine what margins or cash flow the company will generate.
It's also tough trying to look years in the future, especially when talking about cutting-edge technology that's still in development. Technical setbacks could slow progress, and IonQ's position among competitors could improve or worsen.
For most, IonQ has too many questions to become a high-priority investment. Consider waiting for more evidence of what the business could look like before risking your money. If you're afraid of missing out, consider buying a little at a time to safeguard yourself from the ups and downs a speculative stock like IonQ can have.
10 stocks we like better than IonQ
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 IonQ wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends International Business Machines. 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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This flexibility, called superposition, is the potential secret sauce to create these quantum computers that can be significantly more powerful than existing technology. There's a reasonable chance that quantum computing will be vital in developing advanced artificial intelligence and other emerging technologies over the coming decades. From tech giants like Amazon, IBM, Alphabet, and Microsoft to a range of smaller upstarts, a gaggle of companies is competing in the space.
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Today, it's becoming increasingly practical, and companies are rushing to build systems capable of harnessing the power of quantum physics to build computer systems more capable than ever thought possible. Quantum computing uses quantum bits, called qubits. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft.
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Quantum computing uses quantum bits, called qubits. A sea of competition IonQ isn't alone in the race to develop quantum computing technology. 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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Quantum computing: What's going on? Quantum computing uses quantum bits, called qubits. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft.
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de272adc-950d-42a5-aca1-51a283622fe9
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714845.0
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2023-12-06 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 12/6/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-12-6-2023
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
MICROVAST HOLDINGS INC (MVST) is a small-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Microvast Holdings, Inc. is an advanced battery technology company. The Company designs, develops and manufactures battery components and systems primarily for electric commercial vehicles and utility-scale energy storage systems (ESS). The Company has developed technologies covering the entire battery system through its vertically integrated approach, from basic cell materials like the cathode, anode, electrolyte, and separator, to cooling systems and software controls for the battery pack. It develops and commercializes a range of cell chemistries, including lithium titanate oxide (LTO), lithium iron phosphate (LFP), nickel manganese cobalt version 1 (NMC-1) and nickel manganese cobalt version 2 (NMC-2). The Company provides battery solutions to various commercial vehicle applications, including light, medium, and heavy-duty trucks, buses, trains, mining trucks, marine and port vehicles, automated guided and specialty vehicles.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of MICROVAST HOLDINGS INC
MVST Guru Analysis
MVST Fundamental Analysis
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins. It develops and commercializes a range of cell chemistries, including lithium titanate oxide (LTO), lithium iron phosphate (LFP), nickel manganese cobalt version 1 (NMC-1) and nickel manganese cobalt version 2 (NMC-2). Detailed Analysis of MICROVAST HOLDINGS INC MVST Guru Analysis MVST Fundamental Analysis Kenneth Fisher Portfolio About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist.
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The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. The Company has developed technologies covering the entire battery system through its vertically integrated approach, from basic cell materials like the cathode, anode, electrolyte, and separator, to cooling systems and software controls for the battery pack. Detailed Analysis of MICROVAST HOLDINGS INC MVST Guru Analysis MVST Fundamental Analysis Kenneth Fisher Portfolio About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist.
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. The Company designs, develops and manufactures battery components and systems primarily for electric commercial vehicles and utility-scale energy storage systems (ESS). Detailed Analysis of MICROVAST HOLDINGS INC MVST Guru Analysis MVST Fundamental Analysis Kenneth Fisher Portfolio About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist.
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14923c2a-fff2-4790-8f84-7215b5ab98a8
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714846.0
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2023-12-06 00:00:00 UTC
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Validea Motley Fool Strategy Daily Upgrade Report - 12/6/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-motley-fool-strategy-daily-upgrade-report-12-6-2023
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
SECURITY NATIONAL FINANCIAL CORP (SNFCA) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Motley Fool changed from 63% to 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Security National Financial Corporation is a life insurance company that operates Life Insurance, Cemetery and Mortuary, and Mortgages segments. The Life Insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. The Cemetery and Mortuary segment consists of eight mortuaries and five cemeteries in the state of Utah, one cemetery in the state of California, and one cemetery and four mortuaries in the state of New Mexico. The Company is also engaged in pre-need selling of funeral, cemetery, mortuary, and cremation services through its Utah, California, and New Mexico operations. The Mortgage segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes, and other real estate projects primarily in Florida, Nevada, Texas, and Utah. The Mortgage segment operates through approximately 118 retail offices in approximately 26 states.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of SECURITY NATIONAL FINANCIAL CORP
SNFCA Guru Analysis
SNFCA Fundamental Analysis
IRADIMED CORP (IRMD) is a small-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: IRadimed Corporation develops, manufactures, markets and distributes magnetic resonance imaging (MRI) compatible medical devices and accessories and services. Its MRidium 3860+ MRI Compatible IV infusion pump system provides non-magnetic Intravenous (IV) infusion pump system that is specifically designed for safe use during MRI procedures. Its MRidium MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor with non-ferrous parts and other special features to deliver anesthesia safely and predictably and other IV medications or fluids during various MRI procedures. Its IRadimed 3880 MRI Compatible patient vital signs monitoring system has been designed with non-magnetic components and other features to monitor a patient's vital signs safely and accurately during various MRI procedures. The Company sells its products primarily to hospitals and acute care facilities. The IRADIMED 3880 system operates dependably in magnetic fields up to 30,000 gausses.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: FAIL
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of IRADIMED CORP
IRMD Guru Analysis
IRMD Fundamental Analysis
Motley Fool Portfolio
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Mortgage segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes, and other real estate projects primarily in Florida, Nevada, Texas, and Utah. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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Company Description: Security National Financial Corporation is a life insurance company that operates Life Insurance, Cemetery and Mortuary, and Mortgages segments. Detailed Analysis of SECURITY NATIONAL FINANCIAL CORP SNFCA Guru Analysis SNFCA Fundamental Analysis IRADIMED CORP (IRMD) is a small-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of IRADIMED CORP IRMD Guru Analysis IRMD Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss.
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Company Description: Security National Financial Corporation is a life insurance company that operates Life Insurance, Cemetery and Mortuary, and Mortgages segments. Detailed Analysis of SECURITY NATIONAL FINANCIAL CORP SNFCA Guru Analysis SNFCA Fundamental Analysis IRADIMED CORP (IRMD) is a small-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of IRADIMED CORP IRMD Guru Analysis IRMD Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss.
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. Company Description: Security National Financial Corporation is a life insurance company that operates Life Insurance, Cemetery and Mortuary, and Mortgages segments. Detailed Analysis of IRADIMED CORP IRMD Guru Analysis IRMD Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss.
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d291dd95-ebd7-43cd-8834-a3e630c10baa
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714847.0
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2023-12-06 00:00:00 UTC
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This Dow Dividend Giant Missed the 2023 Rally. Is It a Buy Now?
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DCOMP
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https://www.nasdaq.com/articles/this-dow-dividend-giant-missed-the-2023-rally.-is-it-a-buy-now
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The Dow Jones Industrial Average recently touched a 2023 record, rising to an 8% overall return through late November. Investors have been thrilled to see signs of slowing inflation and strong economic growth, and are responding to the good news by pushing the index higher.
Not all Dow stocks are benefiting from this surging optimism. Coca-Cola (NYSE: KO) shares are down 8%, in fact, making the beverage giant the sixth worst-performing stock out of the 30-member index.
Let's look at why Wall Street is down on Coke and how that pessimism could set investors up for excellent long-term returns.
No need to worry
Coke's business trends aren't what you might expect to see from one of the Dow's worst performers of the year. Organic sales were up a healthy 11% in the most recent quarter. That's better than PepsiCo's 6% increase in its beverage division in Q3.
The business benefited from strong demand for its on-the-go drinks, both for traditional sodas and growth niches, such as energy drinks and sparkling water.
Coke isn't being forced to slash prices to keep volumes rising, either. Rather, prices increased 9% this past quarter and volume was up 2%.
"We delivered an overall solid quarter," CEO James Quincey said in a late October press release.
Profits and cash flow
There's a lot to like about Coke's earnings and cash-flow trends, too. Profitability ticked up to 30% of sales last quarter, thanks to the combination of higher selling prices, rising volume, and cost cuts. Free cash flow has been ample so far this year at $8 billion, up from $7.9 billion a year earlier.
KO Operating Margin (TTM) data by YCharts.
These successes have given management flexibility to invest aggressively in growth initiatives and to support popular brands like Smartwater. They also likely mean much more cash will be headed to shareholders' pockets through dividends and stock buybacks. That dividend has increased in each of the last 60 years and is on track to approach $8 billion of total payout in 2023.
Price and value
Coke looks expensive when compared to PepsiCo, which is valued at about half of its price-to-sales valuation. But Coke is also priced at a discount to what investors have been used to paying for the stock over the last few years. At less than 6 times annual sales today, its premium has only been lower -- briefly -- during the market slump at the start of the pandemic.
Yet Coke's business is stronger than it was almost four years ago, both in terms of annual sales and annual earnings power. The beverage titan's dividend is likely to continue rising and complementing shareholders' overall returns. Management is forecasting an 8% earnings increase in 2023 following last year's 7% boost.
Given that accelerating profit gain, it's hard not to conclude that Wall Street is missing the bigger picture on this stock. Coke has a bright future ahead in a massive consumer staples industry niche.
Sure, sales growth won't reach levels that might be more associated with popular tech stocks. But in exchange for slower revenue gains, investors get stability, high profits, and ample cash flow. Those factors should support market-beating returns over the long term.
10 stocks we like better than Coca-Cola
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 Coca-Cola 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
Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors have been thrilled to see signs of slowing inflation and strong economic growth, and are responding to the good news by pushing the index higher. Coca-Cola (NYSE: KO) shares are down 8%, in fact, making the beverage giant the sixth worst-performing stock out of the 30-member index. Profitability ticked up to 30% of sales last quarter, thanks to the combination of higher selling prices, rising volume, and cost cuts.
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Yet Coke's business is stronger than it was almost four years ago, both in terms of annual sales and annual earnings power. But in exchange for slower revenue gains, investors get stability, high profits, and ample cash flow. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Demitri Kalogeropoulos has no position in any of the stocks mentioned.
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But Coke is also priced at a discount to what investors have been used to paying for the stock over the last few years. 10 stocks we like better than Coca-Cola 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 Demitri Kalogeropoulos has no position in any of the stocks mentioned.
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That's better than PepsiCo's 6% increase in its beverage division in Q3. But Coke is also priced at a discount to what investors have been used to paying for the stock over the last few years. Yet Coke's business is stronger than it was almost four years ago, both in terms of annual sales and annual earnings power.
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8d811195-681c-4e5a-9577-10b73bbac11f
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714848.0
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2023-12-06 00:00:00 UTC
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Validea Peter Lynch Strategy Daily Upgrade Report - 12/6/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-12-6-2023
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The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
MERIT MEDICAL SYSTEMS INC (MMSI) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 54% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Merit Medical Systems, Inc. designs, develops, manufactures, markets, and sells medical products for interventional and diagnostic procedures. It operates in two segments: cardiovascular and endoscopy. Its cardiovascular segment consists of four product categories: peripheral intervention, cardiac intervention, custom procedural solutions, and original equipment manufacturer (OEM). It sells a variety of products, including cardiology and radiology devices, which assist in diagnosing and treating coronary arterial disease and peripheral vascular disease, as well as, cardiac rhythm management, electrophysiology, critical care, breast cancer localization and guidance, biopsy, and interventional oncology and spine devices. Its endoscopy segment consists of gastroenterology and pulmonology devices which assist in the palliative treatment of expanding esophageal, and tracheobronchial. It also offers a portfolio of dialysis catheter products and the BioSentry Biopsy Tract Sealant System.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of MERIT MEDICAL SYSTEMS INC
MMSI Guru Analysis
MMSI Fundamental Analysis
NETEASE INC (ADR) (NTES) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NetEase Inc is a China-based technology company. The Company operates through four business segments. The Online Game Service segment is engaged in developing and operating online game services that cover mobile games and personal computer (PC) games. The games include Westward Journey, Onmyoji series and others. The Youdao segment provides intelligent learning services. Its products and services include Online Courses, Youdao Dictionary, Youdao Dictionary Pen, Youdao Listening Treasure, Youdao Smart Learning Lamp, Youdao Translator King, Youdao Super Dictionary and others. The Cloud Music segment provides online music services and social entertainment services. Products offered by the Innovation and Others segment include Yanxuan, NetEase Live, advertising services, high-end email and other value-added services. The Company mainly operates its businesses in the domestic and overseas markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of NETEASE INC (ADR)
NTES Guru Analysis
NTES Fundamental Analysis
BROOKFIELD RENEWABLE CORP (BEPC) is a mid-cap value stock in the Electric Utilities industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Brookfield Renewable Corp. operates renewable power platforms. The Company's portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia. The Company has approximately 31,300 megawatts of installed capacity and a development pipeline with approximately 134,400 megawatts. The Company's businesses include Renewable Power & Transition, Infrastructure, Private Equity, Real Estate, Credit and Insurance Solutions. The Company's Renewable Power & Transition business operates across five continents, managing a diverse portfolio of hydro, wind, solar, distributed energy and sustainable solutions. Its Infrastructure business owns and operates assets across the transport, data, utilities and midstream sectors. Its Private Equity business sectors include business services, infrastructure services and industrials. Its Real Estate business sectors include housing, logistics, hospitality, science & innovation, office and retail.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of BROOKFIELD RENEWABLE CORP
BEPC Guru Analysis
BEPC Fundamental Analysis
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Company's businesses include Renewable Power & Transition, Infrastructure, Private Equity, Real Estate, Credit and Insurance Solutions. The Company's Renewable Power & Transition business operates across five continents, managing a diverse portfolio of hydro, wind, solar, distributed energy and sustainable solutions. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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Detailed Analysis of MERIT MEDICAL SYSTEMS INC MMSI Guru Analysis MMSI Fundamental Analysis NETEASE INC (ADR) (NTES) is a large-cap growth stock in the Software & Programming industry. Detailed Analysis of NETEASE INC (ADR) NTES Guru Analysis NTES Fundamental Analysis BROOKFIELD RENEWABLE CORP (BEPC) is a mid-cap value stock in the Electric Utilities industry. Detailed Analysis of BROOKFIELD RENEWABLE CORP BEPC Guru Analysis BEPC Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time.
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The Online Game Service segment is engaged in developing and operating online game services that cover mobile games and personal computer (PC) games. Its products and services include Online Courses, Youdao Dictionary, Youdao Dictionary Pen, Youdao Listening Treasure, Youdao Smart Learning Lamp, Youdao Translator King, Youdao Super Dictionary and others. Detailed Analysis of BROOKFIELD RENEWABLE CORP BEPC Guru Analysis BEPC Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time.
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The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. The Company operates through four business segments. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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6a9daeda-02dd-4150-8a2a-e6aad29ca14c
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714849.0
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2023-12-06 00:00:00 UTC
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Berkshire Hathaway Unit, GM, EVgo Open First Stations In EV Fast Charging Network
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DCOMP
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https://www.nasdaq.com/articles/berkshire-hathaway-unit-gm-evgo-open-first-stations-in-ev-fast-charging-network
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(RTTNews) - Pilot Travel Centers LLC, a majority owned unit of Berkshire Hathaway, said it has joined with auto major General Motors and EVgo Inc. to open the first 17 locations of their national electric vehicle fast charging network.
Under the partnership, the companies plan to open at least 25 Pilot and Flying J travel centers offering 100 fast charging stalls by the end of 2023 for convenient, accessible charging, while around 200 locations are targeted by the end of 2024.
In total, 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.
The charging stalls, co-branded "Pilot Flying J" and "Ultium Charge 360", will be powered by EVgo eXtend and open to all EV brands.
In its Coast-to-Coast EV charging network, first stations are now available in 13 states. The network features an elevated charging experience, providing EV travelers access to the same amenities offered at existing Pilot and Flying J travel center locations. These include 24/7 amenities, including 350kW chargers, onsite staff monitoring and more.
EV travelers will be able to easily find available charging locations through GM's vehicle brand apps, Pilot's myRewards Plus app, the EVgo app, PlugShare and other applications designed for EV drivers.
Beginning in spring 2024, GM and Pilot Travel Centers will introduce exclusive benefits for GM drivers, including the ability to reserve a charger, and discounts on charging.
At Pilot and Flying J locations, all EV travelers can save with regular deals on food, beverages and merchandise available in the myRewards Plus app.
Pilot Travel Centers, the largest network of travel centers, along with GM, and EVgo, are joining with multiple public agencies and utilities, to grow the nation's public fast charging infrastructure.
Wade Sheffer, vice president of GM Energy, said, "As GM continues to advance its vision of an all-electric future, we're collaborating broadly to accelerate access to convenient charging at home and on the go, offering additional confidence to prospective single vehicle customers considering an EV. This new network will provide EV drivers with a quality charging experience and greater peace of mind during road trips."
As announced earlier, EVgo is also working with GM to add more than 3,250 fast chargers in American cities and suburbs by the end of 2025.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At Pilot and Flying J locations, all EV travelers can save with regular deals on food, beverages and merchandise available in the myRewards Plus app. This new network will provide EV drivers with a quality charging experience and greater peace of mind during road trips." As announced earlier, EVgo is also working with GM to add more than 3,250 fast chargers in American cities and suburbs by the end of 2025.
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Under the partnership, the companies plan to open at least 25 Pilot and Flying J travel centers offering 100 fast charging stalls by the end of 2023 for convenient, accessible charging, while around 200 locations are targeted by the end of 2024. The network features an elevated charging experience, providing EV travelers access to the same amenities offered at existing Pilot and Flying J travel center locations. EV travelers will be able to easily find available charging locations through GM's vehicle brand apps, Pilot's myRewards Plus app, the EVgo app, PlugShare and other applications designed for EV drivers.
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Under the partnership, the companies plan to open at least 25 Pilot and Flying J travel centers offering 100 fast charging stalls by the end of 2023 for convenient, accessible charging, while around 200 locations are targeted by the end of 2024. EV travelers will be able to easily find available charging locations through GM's vehicle brand apps, Pilot's myRewards Plus app, the EVgo app, PlugShare and other applications designed for EV drivers. Pilot Travel Centers, the largest network of travel centers, along with GM, and EVgo, are joining with multiple public agencies and utilities, to grow the nation's public fast charging infrastructure.
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Under the partnership, the companies plan to open at least 25 Pilot and Flying J travel centers offering 100 fast charging stalls by the end of 2023 for convenient, accessible charging, while around 200 locations are targeted by the end of 2024. In total, 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. The network features an elevated charging experience, providing EV travelers access to the same amenities offered at existing Pilot and Flying J travel center locations.
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5089d586-3b9e-4fd3-9375-5cf2b3147522
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714850.0
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2023-12-06 00:00:00 UTC
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1 Reason to Buy Intel Stock Instead of AMD
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DCOMP
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https://www.nasdaq.com/articles/1-reason-to-buy-intel-stock-instead-of-amd
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Advanced Micro Devices' (NASDAQ: AMD) turnaround over the past six years couldn't have gone any better. A combination of good products, industry-leading manufacturing technology from Taiwan Semiconductor Manufacturing Company (TSMC), and delays and missteps by Intel (NASDAQ: INTC) has made AMD competitive. In PCs, AMD's Ryzen chips hold their own, and in servers, the company's latest EPYC chips are performance and efficiency powerhouses.
AMD is now worth more than Intel, a situation that would have been unthinkable a few years ago. But looking ahead, there's one clear reason to favor Intel stock over AMD stock.
More ways to win
AMD spun off its semiconductor-manufacturing operations way back in 2009. There's little question that it was the right move at the time. The business of manufacturing leading-edge semiconductors is as capital-intensive as it comes, and there was just no way AMD could have kept pace or justified the necessary investments. A leaner AMD freed from the manufacturing arms race survived long enough to eventually strike gold with its Zen architecture in 2017.
Intel never gave up on manufacturing even as delays piled up. TSMC eventually made enough progress to erase Intel's manufacturing edge, long a source of competitive advantage. As it stands today, AMD's chips manufactured on TSMC's most advanced nodes are generally more efficient than Intel's.
But Intel's persistence in manufacturing is likely to pay off as two key trends alter the semiconductor industry in the years ahead. First, chips other than computer processing units (CPUs) continue to scoop up a greater share of semiconductor spending. This includes graphics processing units (GPUs), which are widely used for AI workloads, as well as more specialized chips. Second, the utter dominance of the x86 instruction set, exclusive to Intel and AMD, is slowly eroding, opening the door for an explosion of competition in the PC and server-chip markets.
AMD has a horse in many of these races. It makes x86 CPUs along with Intel; it's No. 2 in the graphics card market behind NVIDIA; it's going after the AI accelerator market with new AI-focused chips; and it designs specialized chips via its acquisition of Xilinx. AMD is also reportedly toying with the idea of developing a PC CPU based on the Arm architecture as Arm chips start to gain some traction in the PC market.
Intel also competes directly in the PC CPU, server CPU, graphics card, and AI accelerator markets. But the company's foundry business, which manufactures chips for third parties, allows it to benefit no matter which direction the semiconductor market goes.
If Arm chips become prolific in the PC and server markets, Intel will likely manufacture some of those chips. Intel and Arm announced an agreement earlier this year to optimize the upcoming Intel 18A manufacturing process for future Arm-based chips, starting with smartphone systems-on-a-chip (SoCs). If another instruction set starts to gain traction, such as RISC-V, Intel could manufacture those chips as well.
Demand for AI chips is exploding. Both AMD and Intel compete directly in this market, but Intel could also manufacture advanced AI chips for others down the road. Intel expects the Intel 18A process, slated to be ready by the end of 2024, to overtake TSMC and deliver a manufacturing edge. Coupled with Intel's investments in advanced packaging, critical for complex chips, Intel should be a compelling alternative to TSMC in 2025 and beyond.
It's time to buy Intel stock
Shares of Intel have surged this year, but the stock is still down around 38% from its pre-pandemic high. The company's results have been bogged down by a terrible PC market that's been in correction mode for two years. Market-share losses in the server CPU market to AMD have also stung.
But Intel's investments in manufacturing grant the company immense optionality. Instead of entering markets directly, like its failed smartphone-chip efforts in the past, Intel can benefit from the growth of the broader semiconductor industry by becoming a viable alternative to TSMC. The global semiconductor foundry market is expected to top $230 billion by 2030.
None of this is to say that investing in AMD won't work out well for shareholders in the long run. But Intel's long-term story, centered on its manufacturing efforts, looks more compelling.
10 stocks we like better than Intel
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 Intel wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A leaner AMD freed from the manufacturing arms race survived long enough to eventually strike gold with its Zen architecture in 2017. Second, the utter dominance of the x86 instruction set, exclusive to Intel and AMD, is slowly eroding, opening the door for an explosion of competition in the PC and server-chip markets. Instead of entering markets directly, like its failed smartphone-chip efforts in the past, Intel can benefit from the growth of the broader semiconductor industry by becoming a viable alternative to TSMC.
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Intel also competes directly in the PC CPU, server CPU, graphics card, and AI accelerator markets. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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If Arm chips become prolific in the PC and server markets, Intel will likely manufacture some of those chips. Both AMD and Intel compete directly in this market, but Intel could also manufacture advanced AI chips for others down the road. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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AMD is also reportedly toying with the idea of developing a PC CPU based on the Arm architecture as Arm chips start to gain some traction in the PC market. If Arm chips become prolific in the PC and server markets, Intel will likely manufacture some of those chips. Both AMD and Intel compete directly in this market, but Intel could also manufacture advanced AI chips for others down the road.
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09e748d4-2f36-4c1d-b3da-12963e310bf1
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714851.0
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2023-12-06 00:00:00 UTC
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Nvidia Was the Best 'Magnificent Seven' Stock in 2023. Can It Repeat in 2024?
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DCOMP
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https://www.nasdaq.com/articles/nvidia-was-the-best-magnificent-seven-stock-in-2023.-can-it-repeat-in-2024
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The "magnificent seven" when referencing stocks is a term created by investing personality Jim Cramer and includes the seven stocks he thinks control the market. They are:
Apple
Amazon
Alphabet
Nvidia (NASDAQ: NVDA)
Meta Platforms
Microsoft
Tesla
This group had a phenomenal year, with the "worst" (if you can even call it a "worst" performer) being Apple, whose stock has risen by about 48% this year. On the other end of the spectrum is Nvidia, which increased by more than 200%.
That kind of performance is uncommon, but can Nvidia defend its title as the top magnificent seven stock to own in 2024?
Supercomputers for AI are creating massive demand for Nvidia's GPUs
Nvidia's 2023 rise can be attributed to one trend: artificial intelligence (AI). Its graphics processing units (GPUs) are the best available and are in high demand as companies race to build out their AI computing capabilities.
When consumers buy GPUs, they only buy one to power a computer. But when commercial customers purchase GPUs to outfit their data centers, they buy thousands. For example, Tesla's Dojo computer, which it uses to train its full self-driving (FSD) program, utilizes 10,000 H100 GPUs. While the actual cost of the H100 GPU isn't publicly available, they can be purchased second-hand for about $30,000 apiece. From there, it's pretty easy to calculate that Tesla spent around $300 million with Nvidia to outfit its Dojo computer.
Now, expand that spending to other tech giants trying to complete their supercomputers and the cloud computing companies building data centers so others can rent out the computing power, and it's pretty evident why Nvidia has had such a good year in 2023.
NVDA Revenue (Quarterly) data by YCharts
In the third quarter of fiscal 2024, Nvidia's revenue rose 206% to $18.12 billion over the year-ago quarter. That's a lot of GPUs sold, and it's just getting started. In the fourth quarter, management expects revenue of $20 billion.
But with Nvidia's outstanding growth in 2023, the question remains: Can it maintain its gains in 2024?
Nvidia is a cyclical business
My biggest concern with Nvidia is that its GPUs aren't a subscription product. For example, Tesla spent a lot of money to build its computer; does it need to spend another $300 million to make another? It likely won't for a while, which concerns Nvidia's long-term prospects.
If everyone is rushing to build their AI computers now, will any business be left in a few years? That's my biggest problem with investing in Nvidia, and it does not have an obvious answer until after the demand disappears (or doesn't).
But Nvidia's stock price requires that the demand stays around and grows, as it has a premium valuation of 62 times earnings. With the stock's valuation, Nvidia must continue growing at warp speed, or the bottom may fall out of the stock. Additionally, if its sales drop due to demand deterioration, Nvidia's stock will also likely fall alongside it.
While it's unknown if the demand for its GPUs will stay strong in 2024, eventually it will see some headwinds. As a result, I would be shocked if Nvidia ends up being the best-performing "magnificent seven" stock in 2024.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Alphabet and Tesla. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its graphics processing units (GPUs) are the best available and are in high demand as companies race to build out their AI computing capabilities. But Nvidia's stock price requires that the demand stays around and grows, as it has a premium valuation of 62 times earnings. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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They are: Apple Amazon Alphabet Nvidia (NASDAQ: NVDA) Meta Platforms Microsoft Tesla This group had a phenomenal year, with the "worst" (if you can even call it a "worst" performer) being Apple, whose stock has risen by about 48% this year. Supercomputers for AI are creating massive demand for Nvidia's GPUs Nvidia's 2023 rise can be attributed to one trend: artificial intelligence (AI). The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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They are: Apple Amazon Alphabet Nvidia (NASDAQ: NVDA) Meta Platforms Microsoft Tesla This group had a phenomenal year, with the "worst" (if you can even call it a "worst" performer) being Apple, whose stock has risen by about 48% this year. Supercomputers for AI are creating massive demand for Nvidia's GPUs Nvidia's 2023 rise can be attributed to one trend: artificial intelligence (AI). Nvidia is a cyclical business My biggest concern with Nvidia is that its GPUs aren't a subscription product.
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If everyone is rushing to build their AI computers now, will any business be left in a few years? As a result, I would be shocked if Nvidia ends up being the best-performing "magnificent seven" stock in 2024. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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2023-12-06 00:00:00 UTC
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2024 Starter Kit: 7 Stocks You Can’t Afford to Miss for a Strong Financial Year
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DCOMP
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https://www.nasdaq.com/articles/2024-starter-kit%3A-7-stocks-you-cant-afford-to-miss-for-a-strong-financial-year
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Certain stocks shape the investment landscape of the coming year. These are the stocks to buy for 2024. These seven stocks lead industry revolutions.
These stocks are great for savvy investors, promising robust growth, strategic vision, and groundbreaking market approaches.
Read the article to unravel the narrative of these transformative stocks to buy in 2024 that are poised to redefine industries and financial trajectories in the year ahead.
PayPal (PYPL)
PayPal’s (NASDAQ:PYPL) Enterprise Solutions and Expansion segment exhibits significant potential for sustained growth. The company has processed over $450 billion in transactions (Q3 2023) for many major companies.
This indicates PayPal’s strong credibility and capacity to handle substantial transaction volumes.
PayPal plans to expand services for larger enterprises. It emphasizes adapting to changing market demands. PayPal aims to strengthen its role in facilitating diverse operations for major corporations.
PayPal’s focus on large enterprises strengthens its position in this market segment.
Meta (META)
Source: Blue Planet Studio / Shutterstock.com
Meta’s (NASDAQ:META) strategically focuses on expanding business messaging, especially in regions like India. It reveals a concerted effort to capitalize on the burgeoning potential of messaging platforms for commercial activities.
The company’s intent to facilitate more than 600 million daily conversations between people and businesses across its platforms signifies a paradigm shift in how businesses interact with customers.
Moreover, the statistic indicating that over 60% of people on WhatsApp in India engage with business app accounts weekly emphasizes the early success of this approach.
The emphasis on business AI highlights Meta’s vision to democratize access to sophisticated tools for customer interaction, thereby breaking barriers in economies where traditional labor costs might have limited business-customer communication. META is eaily one of the best stocks to buy for 2024.
Alibaba (BABA)
Source: testing / Shutterstock.com
Alibaba’s (NYSE:BABA) e-commerce domains, including Taobao and Tmall Group, serve as foundational pillars within its business ecosystem.
Taobao and Tmall focus on user needs and preferences, boosting the company’s daily active users and creating a surge in organic user growth.
Introducing various sales models within Taobao and Tmall—from brand marketing-driven sales to everyday low-priced product sales and live streaming content-driven sales—has provided users with a comprehensive and seamless shopping experience.
This approach ensures that consumers with specific purchases find what they seek efficiently and facilitates an enjoyable browsing experience for those exploring without a particular agenda.
AMD (AMD)
Source: JHVEPhoto / Shutterstock.com
AMD’s (NASDAQ:AMD) has made concerted efforts and notable achievements in bolstering its AI roadmap. This showcases a focus on innovation and future-proofing its offerings.
The acquisition of Mipsology and Nod.ai further underscores AMD’s focus on enhancing its AI capabilities. AMD leverages the expertise of its strategic alliances and acquisitions to develop AI solutions for diverse markets.
Additionally, the launch and projected success of the MI300 Data Center GPU exemplify AMD’s strides in AI technology. With an anticipated revenue surpassing $2 billion by 2024, the MI300 holds immense promise in catering to a spectrum of AI workloads, spanning training and inference.
Overall, the forecasted rapid revenue growth signifies a strong market reception and suggests AMD’s potential to significantly penetrate the AI solutions space, making it one of the best stocks to buy for 2024.
Disney (DIS)
Source: David Tran Photo / Shutterstock.com
Disney’s (NYSE:DIS) focus on the Experiences segment is a cornerstone of its long-term growth strategy.
The Experiences business, notably Parks and Resorts, has showcased resilience and adaptability, marked by consistent revenue and operating income growth (23% year-over-year fiscal 2023), particularly evident in Walt Disney World’s impressive performance.
Over the last five years, Disney has doubled the return on invested capital within domestic parks. This underscores Disney’s adeptness in generating substantial returns from its capital-intensive ventures.
Moreover, Disney’s strategic foresight is evident in the substantial investments it plans to make over the next decade. These initiatives are poised to turbocharge growth within the Experiences segment. They leverage extensive intellectual property innovative technological advancements, and creative excellence.
Therefore, the company can manage its Experiences portfolio exceptionally well despite the challenges posed by the pandemic.
Enphase Energy (ENPH)
Source: IgorGolovniov / Shutterstock.com
Enphase Energy (NASDAQ:ENPH) boasts a diversified product portfolio that underscores its adaptability and performance leads (72 million micro inverter shipments as of Q3 2023) in the dynamic renewable energy market.
The company’s multifaceted offerings, spanning micro inverters, batteries, and Electric Vehicle (EV) chargers, mitigate dependence on a singular product line. This diversification safeguards against market fluctuations and amplifies Enphase’s appeal to a broader consumer seeking integrated energy solutions.
Furthermore, Enphase’s adaptability is exemplified by its strategic product tailoring for specific market needs. For instance, the development and rollout of the IQ8P microinverter caters to high-powered solar panels in emerging markets, including Brazil, India, South Africa, Mexico, and Spain.
As a result, it demonstrates the company’s acute understanding of diverse market requirements. This adaptive approach strengthens Enphase’s competitive edge by crafting products to suit regional demands while tapping into burgeoning solar markets worldwide.
Lastly, the company’s ability to pivot and innovate in response to varying market dynamics (like introducing V2X) underscores its flexibility and forward-thinking strategy. Thus, by continually diversifying and customizing its product offerings, Enphase ensures resilience against market fluctuations and positions itself as an industry leader responsive to evolving market needs.
Palantir (PLTR)
Source: Iljanaresvara Studio / Shutterstock.com
Palantir’s (NYSE:PLTR) remarkable revenue growth and segment performance are fundamental pillars underpinning its trajectory. The company’s demonstrated ability to achieve a 17% year-over-year revenue increase in Q3 showcases robust market traction.
The U.S. commercial segment’s impressive 33% year-over-year growth is particularly noteworthy, evidence of Palantir’s effectiveness in penetrating and expanding within this crucial market.
Simultaneously, international commercial business growth at 15% year-over-year, albeit in challenging conditions in Continental Europe, indicates Palantir’s strategic pursuit of growth opportunities across diverse global regions.
The government segment grew steadily, with a 12% year-over-year increase, reinforcing Palantir’s foothold in providing crucial solutions to government entities.
Palantir’s emphasis on mission-critical technology for global defense is highlighted by the increase in U.S. government revenue and support for allied countries. The 29% increase in TCV shows growing demand for Palantir’s offerings and value growth.
As of this writing, Yiannis Zourmpanos held long positions in PYPL, META, BABA, AMD, DIS, ENPH, and PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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The post 2024 Starter Kit: 7 Stocks You Can’t Afford to Miss for a Strong Financial Year appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The emphasis on business AI highlights Meta’s vision to democratize access to sophisticated tools for customer interaction, thereby breaking barriers in economies where traditional labor costs might have limited business-customer communication. Overall, the forecasted rapid revenue growth signifies a strong market reception and suggests AMD’s potential to significantly penetrate the AI solutions space, making it one of the best stocks to buy for 2024. The Experiences business, notably Parks and Resorts, has showcased resilience and adaptability, marked by consistent revenue and operating income growth (23% year-over-year fiscal 2023), particularly evident in Walt Disney World’s impressive performance.
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Meta (META) Source: Blue Planet Studio / Shutterstock.com Meta’s (NASDAQ:META) strategically focuses on expanding business messaging, especially in regions like India. The Experiences business, notably Parks and Resorts, has showcased resilience and adaptability, marked by consistent revenue and operating income growth (23% year-over-year fiscal 2023), particularly evident in Walt Disney World’s impressive performance. Enphase Energy (ENPH) Source: IgorGolovniov / Shutterstock.com Enphase Energy (NASDAQ:ENPH) boasts a diversified product portfolio that underscores its adaptability and performance leads (72 million micro inverter shipments as of Q3 2023) in the dynamic renewable energy market.
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Meta (META) Source: Blue Planet Studio / Shutterstock.com Meta’s (NASDAQ:META) strategically focuses on expanding business messaging, especially in regions like India. Overall, the forecasted rapid revenue growth signifies a strong market reception and suggests AMD’s potential to significantly penetrate the AI solutions space, making it one of the best stocks to buy for 2024. Enphase Energy (ENPH) Source: IgorGolovniov / Shutterstock.com Enphase Energy (NASDAQ:ENPH) boasts a diversified product portfolio that underscores its adaptability and performance leads (72 million micro inverter shipments as of Q3 2023) in the dynamic renewable energy market.
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The company has processed over $450 billion in transactions (Q3 2023) for many major companies. The company’s demonstrated ability to achieve a 17% year-over-year revenue increase in Q3 showcases robust market traction. The U.S. commercial segment’s impressive 33% year-over-year growth is particularly noteworthy, evidence of Palantir’s effectiveness in penetrating and expanding within this crucial market.
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2023-12-06 00:00:00 UTC
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New Strong Sell Stocks for December 6th
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DCOMP
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-december-6th-1
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
Atlas Energy Solutions Inc. AESI is a provider of proppant and logistics services to customers engaged in the oil and natural gas industry principally within the Permian Basin of West Texas and New Mexico. The Zacks Consensus Estimate for its current year earnings has been revised almost 8.4% downward over the last 60 days.
Equitable Holdings EQH is a financial service holding company that provides advice, protection and retirement strategies to individuals, families and small businesses. The Zacks Consensus Estimate for its current year earnings has been revised 6.1% downward over the last 60 days.
Thermo Fisher Scientific TMO is a scientific instrument maker and a world leader in serving science. The Zacks Consensus Estimate for its current year earnings has been revised 3.8% downward over the last 60 days.
View the entire Zacks Rank #5 List.
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
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Equitable Holdings, Inc. (EQH) : Free Stock Analysis Report
Atlas Energy Solutions Inc. (AESI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Atlas Energy Solutions Inc. AESI is a provider of proppant and logistics services to customers engaged in the oil and natural gas industry principally within the Permian Basin of West Texas and New Mexico. 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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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Atlas Energy Solutions Inc. AESI is a provider of proppant and logistics services to customers engaged in the oil and natural gas industry principally within the Permian Basin of West Texas and New Mexico. The Zacks Consensus Estimate for its current year earnings has been revised 6.1% downward over the last 60 days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Equitable Holdings, Inc. (EQH) : Free Stock Analysis Report Atlas Energy Solutions Inc. (AESI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Atlas Energy Solutions Inc. AESI is a provider of proppant and logistics services to customers engaged in the oil and natural gas industry principally within the Permian Basin of West Texas and New Mexico. The Zacks Consensus Estimate for its current year earnings has been revised almost 8.4% downward over the last 60 days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Equitable Holdings, Inc. (EQH) : Free Stock Analysis Report Atlas Energy Solutions Inc. (AESI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Equitable Holdings, Inc. (EQH) : Free Stock Analysis Report Atlas Energy Solutions Inc. (AESI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-12-06 00:00:00 UTC
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Coya Therapeutics, Dr. Reddy's Laboratories Join For Development, Commercialization Of COYA 302
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DCOMP
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https://www.nasdaq.com/articles/coya-therapeutics-dr.-reddys-laboratories-join-for-development-commercialization-of-coya
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(RTTNews) - Dr. Reddy's Laboratories SA, subsidiary of Dr. Reddy's Laboratories Ltd. (RDY), and Coya Therapeutics, Inc. (COYA) have entered into a development and license agreement for the development and commercialization of COYA 302, an investigational combination therapy for the treatment of Amyotrophic Lateral Sclerosis.
Coya has granted Dr. Reddy's an exclusive license to commercialize COYA 302 in the United States, Canada, the European Union and the United Kingdom for ALS. This is in addition to the in-licensing agreement with Dr. Reddy's signed in early 2023. Coya retains the right to commercialize COYA 302 for patients with amyotrophic lateral sclerosis in Japan, Mexico, and each country in South America.
Dr. Reddy's will make a $7.5 million upfront payment to Coya. Upon the first FDA acceptance of an IND application, Dr. Reddy's will pay Coya an additional $4.2 million. Upon dosing of the first patient in the first Phase 2 trial, Dr. Reddy's will pay Coya an additional $4.2 million. Coya expects that the IND filing will be made in the first half of 2024.
The deal also includes development and regulatory milestones up to $40 million. Additionally, Coya is eligible to receive sales-based milestone payments of up to $677.25 million. Dr. Reddy's will pay Coya royalties based on a percentage net sales of COYA 302 ranging from low to middle teens.
For More Such Health News, visit rttnews.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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Upon the first FDA acceptance of an IND application, Dr. Reddy's will pay Coya an additional $4.2 million. Upon dosing of the first patient in the first Phase 2 trial, Dr. Reddy's will pay Coya an additional $4.2 million. Additionally, Coya is eligible to receive sales-based milestone payments of up to $677.25 million.
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Coya retains the right to commercialize COYA 302 for patients with amyotrophic lateral sclerosis in Japan, Mexico, and each country in South America. Upon the first FDA acceptance of an IND application, Dr. Reddy's will pay Coya an additional $4.2 million. Upon dosing of the first patient in the first Phase 2 trial, Dr. Reddy's will pay Coya an additional $4.2 million.
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(RTTNews) - Dr. Reddy's Laboratories SA, subsidiary of Dr. Reddy's Laboratories Ltd. (RDY), and Coya Therapeutics, Inc. (COYA) have entered into a development and license agreement for the development and commercialization of COYA 302, an investigational combination therapy for the treatment of Amyotrophic Lateral Sclerosis. Coya has granted Dr. Reddy's an exclusive license to commercialize COYA 302 in the United States, Canada, the European Union and the United Kingdom for ALS. Dr. Reddy's will pay Coya royalties based on a percentage net sales of COYA 302 ranging from low to middle teens.
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(RTTNews) - Dr. Reddy's Laboratories SA, subsidiary of Dr. Reddy's Laboratories Ltd. (RDY), and Coya Therapeutics, Inc. (COYA) have entered into a development and license agreement for the development and commercialization of COYA 302, an investigational combination therapy for the treatment of Amyotrophic Lateral Sclerosis. Upon the first FDA acceptance of an IND application, Dr. Reddy's will pay Coya an additional $4.2 million. Additionally, Coya is eligible to receive sales-based milestone payments of up to $677.25 million.
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714855.0
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2023-12-06 00:00:00 UTC
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Magnificent Seven ETFs: A Review of 2023 & What Lies Ahead
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DCOMP
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https://www.nasdaq.com/articles/magnificent-seven-etfs%3A-a-review-of-2023-what-lies-ahead
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In the current investment landscape, the focus has shifted away from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market.
These stocks have exposure to ETFs like Roundhill Magnificent Seven ETF MAGS, Invesco S&P 500 Top 50 ETF XLG, iShares S&P 100 ETF OEF and Vanguard Mega Cap Growth ETF MGK.
Dominance of the Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for major portion of its total weighting. Unlike the price-weighted Dow Jones Industrial Average, both the Nasdaq Composite and the S&P 500 indexes are weighted based on market capitalization. This means that the combined market capitalization of these seven companies disproportionately influences the Nasdaq Composite and Nasdaq 100.
Nasdaq's Efforts to Address Concentration
To mitigate the concentration of the Magnificent Seven Stocks in the Nasdaq index, the Nasdaq conducted a rebalancing on Jul 24. This rebalancing aimed at reducing the individual weighting of these seven mega-cap stocks. However, even after the rebalancing, the collective influence of these stocks remains significant, with their total weighting decreasing only slightly from over 50% to nearly 50%.
Ongoing Market Trends
Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index. Their performance plays a crucial role in influencing the index's overall direction.
Specific Stock Insights
Examining individual stocks within the Magnificent Seven reveals varying performance trends. For instance, Nvidia, Meta, Microsoft, Amazon and Tesla have all experienced recent breakouts in the stock market. However, Nvidia and Google have faced challenges, with their stock prices slipping below the key moving averages. Microsoft and Amazon remain in a buy range, while Nvidia and Meta are just below their recent buy points.
Apple's Position in the Market
Apple's performance in the market has been a subject of interest, with its post-earnings rally stalling due to soft iPhone sales data. Nevertheless, Apple's stock continues to set up a potential buy point at 192.93 in a cup-with-handle pattern, indicating ongoing market dynamics and investor sentiment toward the company's prospects, per Investors Business Daily.
A Bright 2024 Awaiting?
With the Fed expected to go slow on its rate hike spree in 2024 (or even cut rates in late 2024), big tech should do well as the space thrives better in a low-rate environment. Plus, the AI boom is continuing, which is expected to push the space to another height next year.
Inside the Valuation of Magnificent Seven
Meta’s P/E (ttm) is 30.16X, lower than Computer Software-Services Market’s P/E of 36.47X. Alphabet’s P/E (ttm) is 29.51X, lower than the concerned industry Computer Software-Services Market’s P/E. Microsoft’s P/E (ttm) is 33.65X, lower than the concerned industry Computer Software-Services Market’s P/E. Apple’s P/E (ttm) stands at 29.55X, in line with Computer-Office Equipment Market’s P/E of 28.24X.
However, Amazon, Tesla and Nvidia are pricey. Amazon’s P/E (ttm) is 94.91X, lower than Nonfood Retail-Wholesale market’s P/E of 26.97X. Tesla’s P/E (ttm) 68.75X is way higher than the concerned industry Autos-Tires-Trucks market’s P/E of 23.13X. Nvidia’s P/E (ttm) 96.56X is also much higher than the concerned industry Electronics-Semiconductors market’s P/E of 41.04X.
Risks to “Magnificent Seven” Investing
Big Tech grapples with three regulatory hurdles: Privacy, content oversight, and antitrust scrutiny. These tech giants face challenges in safeguarding user privacy, moderating content and addressing potential antitrust actions. Big Tech companies are currently under intense antitrust scrutiny, with regulators and lawmakers closely examining their market dominance and potential anti-competitive practices.
Meanwhile, privacy, a complex issue with numerous trade-offs, is progressing slowly on the legislative front. Companies are taking active self-regulatory measures, which can have a more disruptive impact on the industry than government regulations.
Content oversight of Big Tech companies involves monitoring user-generated content on their platforms, which is a big task given that billions of users post numerous content every day. Plus, government regulations can also go against the big tech companies’ revenues.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
iShares S&P 100 ETF (OEF): ETF Research Reports
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Risks to “Magnificent Seven” Investing Big Tech grapples with three regulatory hurdles: Privacy, content oversight, and antitrust scrutiny. These tech giants face challenges in safeguarding user privacy, moderating content and addressing potential antitrust actions. Big Tech companies are currently under intense antitrust scrutiny, with regulators and lawmakers closely examining their market dominance and potential anti-competitive practices.
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These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These stocks have exposure to ETFs like Roundhill Magnificent Seven ETF MAGS, Invesco S&P 500 Top 50 ETF XLG, iShares S&P 100 ETF OEF and Vanguard Mega Cap Growth ETF MGK. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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These stocks have exposure to ETFs like Roundhill Magnificent Seven ETF MAGS, Invesco S&P 500 Top 50 ETF XLG, iShares S&P 100 ETF OEF and Vanguard Mega Cap Growth ETF MGK. Ongoing Market Trends Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ongoing Market Trends Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index. Content oversight of Big Tech companies involves monitoring user-generated content on their platforms, which is a big task given that billions of users post numerous content every day. Plus, government regulations can also go against the big tech companies’ revenues.
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c6e2aaa9-17fa-4b89-8b82-1b81fb55c618
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714856.0
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2023-12-06 00:00:00 UTC
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Forget Dutch Bros: Consider This Magnificent Coffee Stock Instead
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DCOMP
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https://www.nasdaq.com/articles/forget-dutch-bros%3A-consider-this-magnificent-coffee-stock-instead
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nan
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nan
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Thanks to its outsize growth potential, Dutch Bros (NYSE: BROS) has drawn keen interest from some investors as a possible long-term holding in a diversified portfolio. However, this upstart drive-thru coffee chain has yet to reward shareholders. The stock currently sits some 64% below its all-time high and just a tad above its 2021 initial public offering price.
There's still hope, though. Should this business make substantial progress toward management's goals, the shares might be a big winner. However, I'm here to tell investors they should just forget about Dutch Bros altogether -- and consider an already dominant coffee stock instead.
Cracks under the surface
Investors love to see companies grow, and Dutch Bros has been doing plenty of it, opening 39 net new locations in just the third quarter alone. This brings its total store count to 794, which is up from 641 a year ago. Clearly, aggressively opening new locations is a key part of the leadership team's strategy, as it sees the potential for 4,000 stores one day.
To its credit, Dutch Bros does possess some attractive qualities that have supported its success. For starters, the company's stores are drive-thru only, which caters to the convenience and accessibility factors that consumers became so used to thanks to the coronavirus pandemic. This can drive greater volume per store, while at the same time limiting overhead costs because there is no indoor seating.
Additionally, Dutch Bros operates a franchise model. This means part of the capital to fund growth comes from third parties. Done successfully, this setup can be very lucrative.
But despite these positive attributes, I see glaring red flags that investors need to pay attention to now. Dutch Bros' impressive store growth can easily mask weak same-store sales gains. This is one of the most important metrics for any retail business as it looks at the change in revenue at locations open at least 15 months. In the third quarter, this figure rose by just 4%, a possible indication that Dutch Bros could be saturating the markets it's currently in.
I also don't see the presence of an economic moat for this business. Dutch Bros is small enough that many people in this country, especially those in the eastern half of the U.S., have likely never heard of it. This gives it poor brand recognition. And due to aggressive store investments, profits aren't anything to write home about so far. This business posted an operating margin of 6% through the first nine months of this year.
Dominating the industry
The areas that Dutch Bros lacks are exactly where Starbucks (NASDAQ: SBUX) shines. In its most recent fiscal period (fourth quarter of 2023, ended Oct. 1), the world's biggest coffeehouse chain saw its same-store sales rise by 8% in North America, a faster pace of change than Dutch Bros reported.
You'd expect the smaller, earlier-stage business to post faster growth than the massive Starbucks. This could be a sign that Starbucks has more levers to pull, whether via its top-notch tech foundation or through employee productivity training, to boost its store-level sales volume.
Next, Starbucks indeed possesses an economic moat, which is supported by its incredibly strong brand. This is without a doubt one of the most widely recognized consumer brands in the world. And it helps Starbucks charge premium prices for its food and beverages.
The company isn't done growing, either. Starbucks is already one of the largest restaurants concepts on the face of the planet, with 38,038 stores worldwide, but management has set a target of having 55,000 locations by 2030. It's not hard to have confidence in this goal due to the fact that Starbucks has a proven playbook that it simply needs to replicate.
For long-term investors looking to own an already successful business that still has meaningful potential, Starbucks clearly looks like the better stock to own than Dutch Bros.
10 stocks we like better than Starbucks
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 Starbucks wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cracks under the surface Investors love to see companies grow, and Dutch Bros has been doing plenty of it, opening 39 net new locations in just the third quarter alone. In its most recent fiscal period (fourth quarter of 2023, ended Oct. 1), the world's biggest coffeehouse chain saw its same-store sales rise by 8% in North America, a faster pace of change than Dutch Bros reported. This could be a sign that Starbucks has more levers to pull, whether via its top-notch tech foundation or through employee productivity training, to boost its store-level sales volume.
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Thanks to its outsize growth potential, Dutch Bros (NYSE: BROS) has drawn keen interest from some investors as a possible long-term holding in a diversified portfolio. Dutch Bros' impressive store growth can easily mask weak same-store sales gains. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Thanks to its outsize growth potential, Dutch Bros (NYSE: BROS) has drawn keen interest from some investors as a possible long-term holding in a diversified portfolio. However, I'm here to tell investors they should just forget about Dutch Bros altogether -- and consider an already dominant coffee stock instead. For long-term investors looking to own an already successful business that still has meaningful potential, Starbucks clearly looks like the better stock to own than Dutch Bros. 10 stocks we like better than Starbucks When our analyst team has a stock tip, it can pay to listen.
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However, I'm here to tell investors they should just forget about Dutch Bros altogether -- and consider an already dominant coffee stock instead. This business posted an operating margin of 6% through the first nine months of this year. For long-term investors looking to own an already successful business that still has meaningful potential, Starbucks clearly looks like the better stock to own than Dutch Bros. 10 stocks we like better than Starbucks When our analyst team has a stock tip, it can pay to listen.
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e43208d7-fbb0-4bc8-8011-5643887a7f06
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714857.0
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2023-12-06 00:00:00 UTC
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5 Stocks to Buy for Remarkable Earnings Acceleration
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DCOMP
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https://www.nasdaq.com/articles/5-stocks-to-buy-for-remarkable-earnings-acceleration
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nan
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nan
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Earnings acceleration is the incremental growth in a company’s earnings per share (EPS). In other words, if the rate of a company’s quarter-over-quarter earnings growth increases within a stipulated frame of time, it can be called earnings acceleration.
Studies have shown that most successful stocks have seen an acceleration in earnings before an uptick in the stock price. In the case of earnings growth, you pay for something that is already reflected in the stock price. But earnings acceleration helps spot stocks that haven’t yet caught the attention of investors and, once secured, will invariably lead to a rally in the share price. This is because earnings acceleration considers both the direction and magnitude of growth rates.
An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Meanwhile, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may at times drag prices down.
Screening Parameters
Let’s look at stocks for which the last two quarter-over-quarter percentage EPS growth rates exceed the previous periods' growth rates. The projected quarter-over-quarter percentage EPS growth rates are also expected to be higher than the previous periods’ growth rates.
EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1).
EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2).
EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3).
In addition to this, we have added the following parameters:
Current Price greater than or equal to $5: This screens out low-priced stocks.
Average 20-day volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
The above criteria narrowed the universe of around 7,735 stocks to only seven. Here are the top five stocks:
Freshpet FRPT is a pet food company. Freshpet currently has a Zacks Rank #2 (Buy). FRPT’s expected earnings growth rate for the current year is 27.1%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
American Public Education APEI is an online and campus-based postsecondary education provider. American Public Education currently has a Zacks Rank #2. APEI’s expected earnings growth rate for the current year is 43.4%.
Aspen Aerogels ASPN is an energy technology company. Aspen Aerogels currently has a Zacks Rank #2. ASPN’s expected earnings growth rate for the current year is 61.4%.
Cerence CRNC provides AI-powered assistants and innovations for connected and autonomous vehicles. Cerence currently has a Zacks Rank #2. CRNC’s expected earnings growth rate for the current year is 300%.
Pinterest PINS provides a platform to show its users (called Pinners) visual recommendations (called Pins) based on their tastes and interests. Pinterest currently has a Zacks Rank #2. PINS’ expected earnings growth rate for the current year is 72.6%.
You can sign up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks 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 Public Education, Inc. (APEI) : Free Stock Analysis Report
Freshpet, Inc. (FRPT) : Free Stock Analysis Report
Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Cerence Inc. (CRNC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But earnings acceleration helps spot stocks that haven’t yet caught the attention of investors and, once secured, will invariably lead to a rally in the share price. 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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EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1). EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2). Click to get this free report American Public Education, Inc. (APEI) : Free Stock Analysis Report Freshpet, Inc. (FRPT) : Free Stock Analysis Report Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2). EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3). Click to get this free report American Public Education, Inc. (APEI) : Free Stock Analysis Report Freshpet, Inc. (FRPT) : Free Stock Analysis Report Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Earnings acceleration is the incremental growth in a company’s earnings per share (EPS). Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report American Public Education, Inc. (APEI) : Free Stock Analysis Report Freshpet, Inc. (FRPT) : Free Stock Analysis Report Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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954a87b6-7c15-451d-aca6-6f7ba21461ef
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714858.0
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2023-12-06 00:00:00 UTC
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Here Are 3 Favorite Stock Ideas From Deutsche Bank — Including One With 60% Upside Potential
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DCOMP
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https://www.nasdaq.com/articles/here-are-3-favorite-stock-ideas-from-deutsche-bank-including-one-with-60-upside-potential
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nan
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nan
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Heading into the New Year, the markets are facing a confusing mix of currents. The pace of inflation is dropping, but prices remain high. Interest rates remain high, but there’s hope that the Fed will start cutting back sooner rather than later. Unemployment is low and corporate profits are up, but sales numbers show that the profits are coming from higher prices rather than higher demand.
Which way things will go is still up in the air. There is still a chance of recession – or of a strong rebound. And that’s on top of the natural uncertainties of a Presidential election year.
Watching the situation from Deutsche Bank, Industrials expert Nicole DeBlase notes that the macro clouds “have yet to clear, with the possibility of recession looming into 1H24.”
Yet with that as backdrop, DeBlase has a clear idea which stocks are ripe for the picking. “We remain selective with our recommendations,” says the 5-star analyst, “seeking out names that stand to outperform even amidst a more challenging macro backdrop for various reasons, including: 1) secular growth potential, 2) superior end market exposure, 3) outstanding operational execution, 4) self-help margin improvement opportunity, 5) significant upside to consensus EPS forecasts, 6) capital allocation optionality, and 7) extremely discounted valuation paired with any of the aforementioned factors.”
Now let’s follow this lead. Using the TipRanks platform, we’ve pulled up details on 3 stocks that DeBlase is recommending as favorites; each gets a Buy-rating from the Street, and DB sees 60%+ upside on one of them. Here they are.
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CNH Industrial (CNHI)
We’ll start in the realm of heavy machinery, where CNH Industrial has a global presence in the market for agricultural and construction machinery and equipment. The company owns more than 10 well-known brand names, including CASE Construction Equipment, Case IH, New Holland, and Steyr, and can trace its roots back to 1842. CNH has a strong reputation with working farmers, both large-and small-scale, for providing quality tractors and other specialized machinery.
CNH is a truly international company, with its headquarters in the UK, its corporate ownership hailing from Italy, and its incorporation established in the Netherlands. CNH has an industrial and financial presence in 32 countries, and sells its product lines in a total of 170 countries.
As of the end of 2022, the company owned 43 manufacturing facilities, with nearly half of these, 20, in the US. The firm’s factories include extensive research and development facilities, as well as manufacturing.
CNHI shares, though, have shed 30% this year, with disappointing results in its last quarterly release, for 3Q23, not helping its case. Citing softness in its South American market, the revenue total, of $5.99 billion, gained a modest 2% year-over-year – but missed the forecast by $220 million. The bottom line was reported as 42 cents per diluted share, in non-GAAP measures, and while it was up a penny from 3Q22 it was also a penny less than anticipated.
Despite these misses, Deutsche Bank’s DeBlase still recommends the stock. She notes that the company has a solid position relative to peers – and that recent share depreciation has put the stock into discount territory. In her words, “While we are generally avoiding ag equipment market exposure at the moment, given the cycle is only just beginning to roll over, we think CNHI brings a unique value proposition through its self-help margin initiatives. To this point, as it executes on $550m+ of cost savings in 2024, we think the company will be able to at least hold margins/earnings flattish Y/Y, which will make CNHI stand out vs. its peers. Moreover, the stock trades at a sharp discount to past pre-ag downturn multiples.”
These comments support the DB view of CNHI as a Buy, and the price target, at $18, suggests a robust upside potential of 64%. (To watch DeBlase’s track record, click here.)
Where Deutsche Bank is bullish, the Street generally takes a more guardedly positive view here. The stock’s Moderate Buy consensus rating is based on 14 recent reviews that include 7 Buys and Holds, each. The shares are trading for $10.96 and the $15.93 average price target implies a one-year gain of 45%. (See CNH Industrial’s stock forecast.)
Paccar, Inc. (PCAR)
Next up is Paccar, Inc., a name that truckers will recognize – the company is a major producer of heavy duty trucks, and it owns the Kenworth, Peterbilt, and DAF nameplates. These first two lines are known as the high-end in big-rig quality, and are found on highways all across North America, while DAF vehicles are common on Europe’s roads. Paccar has lines of light-, medium-, heavy-duty trucks under each of these nameplates, and also designs and builds the advanced diesel engines and drivetrains needed to power the vehicles.
Paccar got its start early in the history of the automotive industry, in 1905, as a builder of railway and logging equipment. In 1945, the company acquired Kenworth, and followed with Peterbilt in 1958. The 1996 acquisition of DAF, a Netherlands-based truck builder, put Paccar on the map in Europe. Today, the company has a global footprint and its high-quality products have built up a reservoir of brand loyalty and goodwill.
In addition to its core truck business, Paccar also operates Parts and Financial divisions, which in recent years have increased their share of the bottom line. On the R&D side, Paccar works with both suppliers and technology partners to streamline the process form drawing board to commercialization. Paccar’s products are available in more than 100 countries, through a network of more than 2,200 dealers. The company generates about half of its revenue and profits in the US, and half internationally.
In the third quarter of this year, Paccar reported record net income of $1.23 billion, resulting in a GAAP EPS figure of $2.34. The EPS was up some 60% year-over-year and was 21 cents per share better than the estimates. The company’s revenue total also beat the forecast, by $790 million, and came in at $8.7 billion for the quarter – a y/y gain of 23%. Shares in PCAR are up by 45% this year, outperforming the broader markets.
DeBlase, in her most recent note on the stock, points out that Deutsche Bank upgraded its stance on PCAR in October and goes on to express her belief that the company is primed for continued outperformance, writing, “We recently upgraded PCAR to Buy, as we believe that 2024 consensus forecasts are still too low, and the forthcoming Y/Y NA Class 8 truck production decline is likely to be muted and short-lived given the potential for pre-buy in 2025 ahead of the 2027 emissions standard change. PCAR also tends to execute very well during downturns, with low 15-20% decremental margins. And the balance sheet is in pristine condition, allowing the company to continue returning significant excess cash to shareholders.”
DeBlase’s Buy rating here is backed by a $115 price target indicating potential for a 23% upside in the next 12 months.
Once again, we’re looking at a stock with a Moderate Buy consensus rating with the 9 recent analyst reviews here including 4 each to Buy or Hold and 1 to Sell. Shares are trading for $93.87 and the $96.67 average price target suggests the shares will stay rangebound over the coming year. (See Paccar’s stock forecast.)
Johnson Controls (JCI)
Last on our DB-backed list is Johnson Controls, a venerable name in the world of HVAC and one of Fortune’s Global 500 names. Johnson Controls is a ~$37 billion company that brought in over $25 billion in revenue last year. The company offers solutions to building owners and facility managers for indoor climate control issues, such matters as building automation and controls, fire prevention and suppression, industrial refrigeration and energy efficiency, as well as the more traditional HVAC fare.
In addition, Johnson Controls also offers a line of Smart Building systems, designed to ensure a healthier building interior environment. These systems can improve indoor air quality while also creating a more energy efficient space, saving money for the building’s managers while providing tenants and workers with a better working environment.
Johnson Controls might not be a household name, but it’s certainly well-known in a wide range of industries. The company boasts customers across the economy, and has worked with Federal and State governments, healthcare providers, the hospitality sector, educational institutions at all levels from K through college, industrial and manufacturing facilities, and data centers – for whom proper climate control is essential.
The company’s last earnings report, for fiscal 3Q23, showed a revenue total of $7.1 billion, up 8% y/y, although $70 million under the estimates. At the bottom line, the $1.03 per share, by non-GAAP measures, was up a solid 21% y/y and matched with the pre-release estimates.
Since the August print, however, shares have mostly been in a downtrend due to a disappointing outlook. For fiscal 2023, the company said it now expects growth in high single-digits, as opposed to the 10%+ anticipated beforehand.
DeBlase, in her coverage for Deutsche Bank, does not shy away from the issues in this stock – but she also notes that the company has real potential to recover and that the share price currently presents a good entry point. DeBlase writes, “This is not a stock for the faint of heart, and we view it more as a high risk/high reward option within the MI/EE group. JCI is among the cheapest names in our coverage universe following two years of patchy operational execution, but we remain attracted to the company's secular growth opportunity and self-help margin initiatives. If execution gets back on track, the stock could benefit from the winning combination of EPS upside and a multiple re-rating.”
These comments back up the 5-star analyst’s Buy rating, and her $74 price target implies a 36% gain waiting ahead for the stock.
Overall, it seems that Wall Street comes down on the side of the bulls here. The Moderate Buy consensus rating is based on 11 recent analyst reviews, including 8 to Buy and 3 to Hold. The stock’s $68.73 price target and $54.42 trading price together suggest a 26% potential upside by this time next year. (See Johnson Controls’ stock forecast.)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and 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 remain selective with our recommendations,” says the 5-star analyst, “seeking out names that stand to outperform even amidst a more challenging macro backdrop for various reasons, including: 1) secular growth potential, 2) superior end market exposure, 3) outstanding operational execution, 4) self-help margin improvement opportunity, 5) significant upside to consensus EPS forecasts, 6) capital allocation optionality, and 7) extremely discounted valuation paired with any of the aforementioned factors.” Now let’s follow this lead. And the balance sheet is in pristine condition, allowing the company to continue returning significant excess cash to shareholders.” DeBlase’s Buy rating here is backed by a $115 price target indicating potential for a 23% upside in the next 12 months. The company boasts customers across the economy, and has worked with Federal and State governments, healthcare providers, the hospitality sector, educational institutions at all levels from K through college, industrial and manufacturing facilities, and data centers – for whom proper climate control is essential.
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“We remain selective with our recommendations,” says the 5-star analyst, “seeking out names that stand to outperform even amidst a more challenging macro backdrop for various reasons, including: 1) secular growth potential, 2) superior end market exposure, 3) outstanding operational execution, 4) self-help margin improvement opportunity, 5) significant upside to consensus EPS forecasts, 6) capital allocation optionality, and 7) extremely discounted valuation paired with any of the aforementioned factors.” Now let’s follow this lead. The company owns more than 10 well-known brand names, including CASE Construction Equipment, Case IH, New Holland, and Steyr, and can trace its roots back to 1842. The stock’s Moderate Buy consensus rating is based on 14 recent reviews that include 7 Buys and Holds, each.
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Don’t miss Bank of America Says the S&P 500 Will Hit a New Record High in 2024 — Here Are 2 Stocks to Play That Bullish Sentiment These 3 stocks are Cowen’s best ideas for 2024 including AstraZeneca and Datadog There’s an Opportunity in the Latin American Consumer Sector, Says Jefferies – Here Are 2 Stocks to Take Advantage CNH Industrial (CNHI) We’ll start in the realm of heavy machinery, where CNH Industrial has a global presence in the market for agricultural and construction machinery and equipment. DeBlase, in her most recent note on the stock, points out that Deutsche Bank upgraded its stance on PCAR in October and goes on to express her belief that the company is primed for continued outperformance, writing, “We recently upgraded PCAR to Buy, as we believe that 2024 consensus forecasts are still too low, and the forthcoming Y/Y NA Class 8 truck production decline is likely to be muted and short-lived given the potential for pre-buy in 2025 ahead of the 2027 emissions standard change. If execution gets back on track, the stock could benefit from the winning combination of EPS upside and a multiple re-rating.” These comments back up the 5-star analyst’s Buy rating, and her $74 price target implies a 36% gain waiting ahead for the stock.
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Despite these misses, Deutsche Bank’s DeBlase still recommends the stock. (See CNH Industrial’s stock forecast.) (See Paccar’s stock forecast.)
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693995cd-3a09-4a63-9f0c-97d256cb8c48
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714859.0
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2023-12-06 00:00:00 UTC
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US STOCKS-Futures edge up on Fed pivot hopes, jobs data in focus
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DCOMP
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https://www.nasdaq.com/articles/us-stocks-futures-edge-up-on-fed-pivot-hopes-jobs-data-in-focus
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.08%, S&P 0.19%, Nasdaq 0.28%
Dec 6 (Reuters) - U.S. stock index futures inched higher on Wednesday as investors remained optimistic about rate cuts from the Federal Reserve starting early next year, while waiting for more data on the 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 softening labor demand bolstered bets that the Fed was done raising rates.
Traders have nearly fully priced in the probability that the central bank will hold rates steady next week and see rate cuts being delivered as soon as the first quarter of next year.
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 5:16 a.m. ET, Dow e-minis 1YMcv1 were up 30 points, or 0.08%, S&P 500 e-minis EScv1 were up 8.75 points, or 0.19%, and Nasdaq 100 e-minis NQcv1 were up 44.5 points, or 0.28%.
"With the Fed wanting to be sure that inflation is truly tied down before it loosens policy, we’re going to see this guessing game, where the market tries to position itself ahead of the Fed’s next move," Steve Clayton, head of equity funds at Hargreaves Lansdown said in a note.
Most megacap stocks edged higher in premarket trading. NvidiaNVDA.O rose 1.2% 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.
Optimism about peaking interest rates have 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.
Employment data is in focus this week, with November's non-farm payrolls report due on Friday likely to shape expectations for the interest rate path ahead.
Before that, investors will get another glimpse into the state of the labor market with the ADP National Employment report due at 8:15 a.m. ET on Wednesday.
Among individual stocks, Plug PowerPLUG.O slipped 4.2% before the bell as Morgan Stanley downgraded the hydrogen fuel cell firm to "underweight" from "equal weight" on liquidity concerns.
(Reporting by Amruta Khandekar; 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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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 softening labor demand bolstered bets that the Fed was done raising rates. Optimism about peaking interest rates have 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. Among individual stocks, Plug PowerPLUG.O slipped 4.2% before the bell as Morgan Stanley downgraded the hydrogen fuel cell firm to "underweight" from "equal weight" on liquidity concerns.
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Futures up: Dow 0.08%, S&P 0.19%, Nasdaq 0.28% Dec 6 (Reuters) - U.S. stock index futures inched higher on Wednesday as investors remained optimistic about rate cuts from the Federal Reserve starting early next year, while waiting for more data on the labor market. ET, Dow e-minis 1YMcv1 were up 30 points, or 0.08%, S&P 500 e-minis EScv1 were up 8.75 points, or 0.19%, and Nasdaq 100 e-minis NQcv1 were up 44.5 points, or 0.28%. Before that, investors will get another glimpse into the state of the labor market with the ADP National Employment report due at 8:15 a.m.
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Futures up: Dow 0.08%, S&P 0.19%, Nasdaq 0.28% Dec 6 (Reuters) - U.S. stock index futures inched higher on Wednesday as investors remained optimistic about rate cuts from the Federal Reserve starting early next year, while waiting for more data on the 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 softening labor demand bolstered bets that the Fed was done raising rates. ET, Dow e-minis 1YMcv1 were up 30 points, or 0.08%, S&P 500 e-minis EScv1 were up 8.75 points, or 0.19%, and Nasdaq 100 e-minis NQcv1 were up 44.5 points, or 0.28%.
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.08%, S&P 0.19%, Nasdaq 0.28% Dec 6 (Reuters) - U.S. stock index futures inched higher on Wednesday as investors remained optimistic about rate cuts from the Federal Reserve starting early next year, while waiting for more data on the labor market. Optimism about peaking interest rates have 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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2023-12-06 00:00:00 UTC
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48% of Warren Buffett's $363 Billion Portfolio Is Invested in Just 1 Stock
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https://www.nasdaq.com/articles/48-of-warren-buffetts-%24363-billion-portfolio-is-invested-in-just-1-stock
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett once said, "Diversification is protection against ignorance. It makes little sense if you know what you are doing." Indeed, he lives by that philosophy: Berkshire has nearly half of its $363 billion stock portfolio in a single company.
For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Meanwhile, his co-investment managers Todd Combs and Ted Weschler handle the other 10% of the portfolio.
The five companies listed above account for an astonishing 75% of the $363 billion that Berkshire has invested in stocks, and Apple alone accounts for 48%. That screams high conviction. Indeed, Berkshire has never sold a single share of Apple since first taking a position in 2016. In fact, the company has added to the position as recently as the first quarter of 2023, and Buffett said he believes Apple is the best business in which Berkshire has a stake.
Is Apple stock worth buying?
Apple has a durable economic moat built on brand authority and proprietary technology
Warren Buffett believes an enduring economic moat is one of the most important qualities a business can possess, and moats generally boil down to pricing power. Apple has that in spades. Its ability to pair appealing hardware, proprietary software, and services creates a unique user experience that has led to profound customer loyalty and brand authority.
Those qualities allow Apple to charge a premium for its products. The average iPhone sells for 3.5 times more than the average Alphabet-owned Android smartphone. Customer loyalty and brand authority have also helped Apple achieve a strong presence in several consumer electronics markets.
Apple is the largest smartphone manufacturer in the U.S. (55% market share) and the second-largest smartphone manufacturer worldwide (16% market share). It is also the fourth-largest personal computer manufacturer globally, and the leader in tablets and smartwatches. Collectively, that hints at mid-single-digit revenue growth in hardware through 2030, simply because the broader consumer electronics market is forecasted to increase at 6.6% annually during that period.
However, those products are only the first half of the equation. The second half is the services ecosystem that Apple uses to monetize its installed base, which currently exceeds 2 billion devices. Those services include App Store sales, iCloud storage, Apple Pay, and subscription products like Apple TV+ and Apple Music, among other ancillary revenue streams.
Apple's services business is particularly compelling because (1) it earns higher margins than the hardware business and (2) the company has a strong presence in several relevant markets. For instance, the Apple App Store makes twice as much money as Alphabet's Google Play Store, and Apple Pay is the most popular in-store mobile wallet among U.S. consumers.
Ultimately, I think Apple could achieve high-single-digit revenue growth on an annual basis through the end of the decade, provided the company continues to draw consumers into its services ecosystem.
Apple's full-year financial performance left much to be desired
Apple reported lackluster financial results in fiscal 2023 (ended Sept. 30) as difficult economic conditions weighed on consumer spending. Total revenue dropped 3% to $383 billion, driven by declines in every device category, offset by a modest increase in services revenue, as detailed below:
iPhone sales declined 2% to $201 billion
Mac sales declined 27% to $29 billion
iPad sales declined 3% to $28 billion
Wearables, Home, and Accessories sales declined 3% to $40 billion
Services sales increased 9% to $85 billion
Additionally, despite an 80-basis-point expansion in gross margin, net income still declined 3% to $97 billion as operating costs continued to climb. However, earnings per share actually increased (less than a percentage point) because Apple plowed $77.6 billion into stock buybacks.
On the bright side, services revenue growth accelerated to 16% year over year in the fourth quarter, and Apple achieved record sales in several service categories, including App Store, AppleCare, iCloud, Apple Pay, and Apple TV+. That bodes well for the business because the services segment will likely be the primary growth driver going forward.
Apple stock quadrupled over the last five years, but shares look expensive
Apple is a wonderful business with a durable economic moat built on brand authority and proprietary technology, and those qualities afford the company a great deal of pricing power. To that end, Apple has been an extraordinary investment in the past. The stock soared 328% during the last five years.
However, I doubt shareholders will see anything close to that over the next five years. The stock traded at 15 times earnings five years ago, a much cheaper multiple than its current valuation of 31.3 times earnings. But the multiple itself is not necessarily important. What matters is how quickly Apple can grow its bottom line in the future, and Wall Street expects annual earnings growth of 10% on a per-share basis over the next three to five years.
That forecast makes its current valuation look quite expensive. So I plan to steer clear of Apple stock for the time being. But Buffett clearly has high conviction in the company, so I would not fault anyone for buying a small position in Apple stock today.
The last piece of advice I would offer is that readers should not allocate half of their portfolios to any single stock. Buffett is a highly skilled and highly accomplished stock picker, and his lead is almost always worth following. But diversification is important for the vast majority of retail investors because it reduces risk.
10 stocks we like better than Apple
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American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Its ability to pair appealing hardware, proprietary software, and services creates a unique user experience that has led to profound customer loyalty and brand authority. Ultimately, I think Apple could achieve high-single-digit revenue growth on an annual basis through the end of the decade, provided the company continues to draw consumers into its services ecosystem.
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For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Apple has a durable economic moat built on brand authority and proprietary technology Warren Buffett believes an enduring economic moat is one of the most important qualities a business can possess, and moats generally boil down to pricing power. On the bright side, services revenue growth accelerated to 16% year over year in the fourth quarter, and Apple achieved record sales in several service categories, including App Store, AppleCare, iCloud, Apple Pay, and Apple TV+.
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Total revenue dropped 3% to $383 billion, driven by declines in every device category, offset by a modest increase in services revenue, as detailed below: iPhone sales declined 2% to $201 billion Mac sales declined 27% to $29 billion iPad sales declined 3% to $28 billion Wearables, Home, and Accessories sales declined 3% to $40 billion Services sales increased 9% to $85 billion Additionally, despite an 80-basis-point expansion in gross margin, net income still declined 3% to $97 billion as operating costs continued to climb. On the bright side, services revenue growth accelerated to 16% year over year in the fourth quarter, and Apple achieved record sales in several service categories, including App Store, AppleCare, iCloud, Apple Pay, and Apple TV+. Apple stock quadrupled over the last five years, but shares look expensive Apple is a wonderful business with a durable economic moat built on brand authority and proprietary technology, and those qualities afford the company a great deal of pricing power.
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Apple stock quadrupled over the last five years, but shares look expensive Apple is a wonderful business with a durable economic moat built on brand authority and proprietary technology, and those qualities afford the company a great deal of pricing power. The stock traded at 15 times earnings five years ago, a much cheaper multiple than its current valuation of 31.3 times earnings. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Berkshire Hathaway.
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2023-12-06 00:00:00 UTC
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The 3 Best Warren Buffett Stocks to Buy in December
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https://www.nasdaq.com/articles/the-3-best-warren-buffett-stocks-to-buy-in-december
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Identifying the best Warren Buffett stocks requires a keen eye for value. Very few investors are able to effectively embody this philosophy. Known for his long term approach, Buffett seeks growth in companies that will provide sustainable and reliable returns.
Some of his key philosophies include companies with strong economic moats and a history of consistent earnings growth. By focusing on companies with solid fundamentals, Buffett has positioned his portfolio for both the best and worst of times. Now, let’s discuss the three best Warren Buffett Stocks to buy in December!
American Express (AXP)
Source: Shutterstock
American Express (NYSE:AXP) is a multinational financial services company headquartered in Manhattan, New York. Over the last few decades, American Express has grown into one of the strongest global brands in the world. They are one of the largest card networks globally, processing more $1.5 trillion in 2022.
With the current macroeconomic backdrop, American Express is well positioned for sustained revenue and EPS growth. Consumer spending has remained relatively high in 2023 despite higher interest rates and inflation. In fact, consumer credit card debt hit a record $1 trillion in Q3 2023 with average rates on retail credit cards hitting 29%. In Q3 2023, American Express saw record revenue of $15.4 billion, up 13% year-over-year (YOY). Net income swelled to $2.45 billion, or $3.30 per share. They are also seeing strong growth in the Millennial and Gen Z segment, with spending up 18% from the year prior.
CEO, Stephen Squeri said that ‘’we remain confident in our ability to achieve revenue and EPS growth for the full year consistent with our annual guidance.’’ American Express is the third largest position in Berkshire Hathaway’s (NYSE:BRK-A, NYSE:BRK-B) portfolio, making it one of the best Warren Buffett stocks to buy.
D.R. Horton (DHI)
Source: Casimiro PT / Shutterstock.com
D.R. Horton (NYSE:DHI) is an American home construction company headquartered in Arlington, Texas. Since 2022, they have been America’s largest homebuilder by volume, closing more than 1 million homes. Over the last decade the company has seen strong revenue growth, and its dividend has grown favorably alongside it.
The company is seeing strong growth, despite the real estate market softening amid inflation and higher mortgage rates. In Q4 FY23, D.R. Horton revenue grew 9% YOY to $10.5 billion. Net sales for the quarter increased 34% YOY to 18,939 homes and up 34% in market value. Their execution has resulted in incremental gains, solidifying their footing as the largest homebuilder in the U.S. for 22 consecutive years.
Furthermore, D.R. Horton has delivered high double digit dividend growth over the last decade. This includes a 20% increase to 30 cents per share attributable to shareholders of record after their FY23 results. With a P/E of just 9.44, D.R. Horton should be kept on your radar as a top Warren Buffett stocks going into 2024.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon (NASDAQ:AMZN) stock has had an impressive run in 2023. The stock is up nearly 70% YTD, as a result of restructuring efforts from CEO, Andy Jassy. They have been making serious progress in their generative AI efforts, with cost-cutting driving profitable growth.
Overall, Amazon has been seeing growth across all segments of its business. But focus has been on generative AI services for its AWS customers. More recently, they announced a blockbuster investment of up to $4 billion in AI startup, Anthropic. This investment showcased their commitment to being a leader in the AI race. In Q3 2023 financial results, Amazon’s revenue grew 13% YOY to $143.1 billion. Free cash flow swelled to $21.4 billion, a significant improvement from negative FCF in the year prior. Operating income also grew more than 4X to $11.2 billion, with North America and AWS being the sole drivers. As generative AI continues to shape the future, Amazon is one of the best Warren Buffet stocks to buy in December.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.
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The post The 3 Best Warren Buffett 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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CEO, Stephen Squeri said that ‘’we remain confident in our ability to achieve revenue and EPS growth for the full year consistent with our annual guidance.’’ American Express is the third largest position in Berkshire Hathaway’s (NYSE:BRK-A, NYSE:BRK-B) portfolio, making it one of the best Warren Buffett stocks to buy. 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 Warren Buffett Stocks to Buy in December appeared first on InvestorPlace.
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American Express (AXP) Source: Shutterstock American Express (NYSE:AXP) is a multinational financial services company headquartered in Manhattan, New York. In fact, consumer credit card debt hit a record $1 trillion in Q3 2023 with average rates on retail credit cards hitting 29%. Amazon (AMZN) Source: Tada Images / Shutterstock.com Amazon (NASDAQ:AMZN) stock has had an impressive run in 2023.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Identifying the best Warren Buffett stocks requires a keen eye for value. American Express (AXP) Source: Shutterstock American Express (NYSE:AXP) is a multinational financial services company headquartered in Manhattan, New York. CEO, Stephen Squeri said that ‘’we remain confident in our ability to achieve revenue and EPS growth for the full year consistent with our annual guidance.’’ American Express is the third largest position in Berkshire Hathaway’s (NYSE:BRK-A, NYSE:BRK-B) portfolio, making it one of the best Warren Buffett stocks to buy.
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Horton revenue grew 9% YOY to $10.5 billion. In Q3 2023 financial results, Amazon’s revenue grew 13% YOY to $143.1 billion. As generative AI continues to shape the future, Amazon is one of the best Warren Buffet stocks to buy in December.
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2023-12-06 00:00:00 UTC
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2 Small-Cap Stocks With Big Potential in 2024
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https://www.nasdaq.com/articles/2-small-cap-stocks-with-big-potential-in-2024
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Investing in small-cap stocks can come with some incredible upside. These are stocks that don't trade at high valuations, which means that if they're successful there can be a lot of room for their valuations to rise higher in the future. On the flip side, however, they are often riskier options than larger, more established businesses.
A couple of small-cap stocks that have the potential to achieve significant gains next year are InMode (NASDAQ: INMD) and Bitfarms (NASDAQ: BITF). Here's why these two small-cap stocks could be attractive investments to buy today.
1. InMode
InMode's stock is down 30% this year and its market cap is at around $2.1 billion. The medical device company's forward price-to-earnings ratio is a modest 9. That low P/E suggests it's a potential bargain, especially for a business that has some promising growth prospects.
InMode specializes in the manufacture and marketing of minimally invasive and non-invasive procedures for body contouring, skin treatment, and various medical aesthetic applications. Some of the company's devices help contour skin, and that can be in high demand, especially as many weight-loss products have been rising in popularity in recent years. As people lose weight, they'll have an incentive to get rid of that excess skin. InMode's treatments offer attractive alternatives when compared to more invasive plastic surgery. The problem at the moment is that demand isn't taking off just yet because of consumer uncertainty about the economy.
If the outlook for the global economy improves in 2024, that could drive up the price of InMode's stock, as forward-thinking investors bet on the opportunities here. The company expects revenue to come in between $500 million and $510 million in 2023, which (at the midpoint) would represent an 11% increase from 2022. This is in what should be a slow year for the business. You can expect InMode to achieve stronger growth rates.
Analyst price targets suggest the healthcare stock could rise by more than 60% over the next 12-18 months. But if you're willing to hang on for longer, even better returns are possible. InMode's modest valuation and strong business model make it an undervalued buy heading into next year.
2. Bitfarms
Bitfarms is a much smaller company, with a valuation of $550 million. And that's with 2023 being a phenomenal year for the crypto operation, as its share price is up a staggering 290%.
The Canada-based crypto mining company benefited in 2023 from renewed interest in Bitcoin. The digital currency rose in popularity again as people became concerned with the economy. There's also the hope that a spot Bitcoin exchange-traded fund (ETF) may soon gain regulatory approval, which could lead to more demand for digital currencies.
Not only will an increase in the price of Bitcoin help Bitfarms fetch a higher price for its output, but the mining company is also working on increasing its efficiency. It estimates that by the second half of next year, its rate of exahashes per second could rise to as high as 21, up from 6.3 right now. This is what is also known as the company's hash rate, and it's an important key performance metric for crypto mining companies.
Profitability is a big concern around the business, and in the quarter ending Sept. 30, Bitfarms incurred an operating loss of $18.6 million. That loss is an improvement on the $97.8 million operating loss it incurred during the same period in 2022.
Bitfarms could be a risky option for investors given its exposure to crypto, which is highly volatile. But for investors who are comfortable with the risk and who want a way to benefit from the growing popularity of digital currencies, this could be an attractive investment to hang on to next year, as it could have a lot of upside.
10 stocks we like better than InMode
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and InMode. 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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InMode specializes in the manufacture and marketing of minimally invasive and non-invasive procedures for body contouring, skin treatment, and various medical aesthetic applications. There's also the hope that a spot Bitcoin exchange-traded fund (ETF) may soon gain regulatory approval, which could lead to more demand for digital currencies. But for investors who are comfortable with the risk and who want a way to benefit from the growing popularity of digital currencies, this could be an attractive investment to hang on to next year, as it could have a lot of upside.
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A couple of small-cap stocks that have the potential to achieve significant gains next year are InMode (NASDAQ: INMD) and Bitfarms (NASDAQ: BITF). The Canada-based crypto mining company benefited in 2023 from renewed interest in Bitcoin. See the 10 stocks *Stock Advisor returns as of December 4, 2023 David Jagielski has no position in any of the stocks mentioned.
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A couple of small-cap stocks that have the potential to achieve significant gains next year are InMode (NASDAQ: INMD) and Bitfarms (NASDAQ: BITF). InMode InMode's stock is down 30% this year and its market cap is at around $2.1 billion. See the 10 stocks *Stock Advisor returns as of December 4, 2023 David Jagielski has no position in any of the stocks mentioned.
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The digital currency rose in popularity again as people became concerned with the economy. But for investors who are comfortable with the risk and who want a way to benefit from the growing popularity of digital currencies, this could be an attractive investment to hang on to next year, as it could have a lot of upside. * They just revealed what they believe are the ten best stocks for investors to buy right now... and InMode wasn't one of them!
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2023-12-06 00:00:00 UTC
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1 Stock Down 19% This Year That Could Rebound in 2024
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https://www.nasdaq.com/articles/1-stock-down-19-this-year-that-could-rebound-in-2024
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Fintech specialist PayPal (NASDAQ: PYPL) has been a disappointing investment in 2023. The company's share prices are down 19% so far this year over concerns about slowing growth, a major leadership change, and other issues. It might be tempting for some PayPal investors to cut their losses at this point and dump their stock, but that could be a mistake.
Despite recent struggles, there are reasons to believe PayPal can reverse course next year. And more importantly, it remains an excellent stock for long-term investors. Let's consider why.
PYPL data by YCharts
PayPal's two-sided network
PayPal's growth slowed once the worst of the pandemic subsided and the need for its services eased. Compared to the incredible highs it hit in the early days of the outbreak -- which included some of the company's best quarters ever -- it isn't performing particularly well right now. However, it's not clear that the fintech leader is on balance worse off due to the disruptions caused by the coronavirus outbreak.
As PayPal management reported at the beginning of the year, some of the company's key metrics registered excellent compound annual growth rates (CAGR) between 2017 and 2022. To take just one example, PayPal's revenue clocked in a CAGR of 16% through this period. PayPal's top-line growth fell below that average this year but is still growing. In the third quarter, the company's revenue increased by 8% year over year to $7.4 billion.
PayPal's results partly depend on people's spending habits and patterns. The company's consumer-facing business includes various services, from its peer-to-peer payment app Venmo to fast online checkout on thousands of retailers' websites. PayPal also offers multiple services to businesses, including a payment gateway platform through its subsidiary Braintree.
PayPal's top-line growth is likely to improve right along with the economy, higher business activity for companies, and increased consumer spending. While parts of the economy weren't great this year, things haven't been that bad, especially when you consider that a recession was expected when 2023 started. In the third quarter, U.S. gross domestic product grew by about 5% -- a level of growth not seen since the fourth quarter of 2021.
This doesn't mean the economy won't tank in 2024, but at the very least, it is a decent sign of progress.
A strong economic moat
Something else going PayPal's way is the company's strong competitive advantage. First, it has developed a solid brand name that customers and businesses trust. That matters in every industry, but especially in the financial sector. When businesses offer PayPal as a checkout option, customers tend to view that business as trustworthy. That helps provide peace of mind to everyone involved in the transaction.
Second, PayPal benefits from a strong network effect. The more individuals use PayPal as a digital wallet, the more its ecosystem becomes attractive to businesses. That ensures that the company will continue adding individuals and businesses to its network over the long run, especially since it provides a comprehensive suite of services. PayPal recently expanded into buy now, pay later (BNPL) services, among other similar areas.
As of the end of 2022, PayPal's acceptance rate among the 2,500 largest retailers in North America and Europe was 79%, up from 76% the year prior. No company was even close to this: The distant second had an acceptance rate of 28%. What's more, PayPal's year-over-year three-percentage-point growth rate in the acceptance category was also larger than the other prominent digital wallets -- an impressive achievement considering its already high acceptance rate.
PayPal's economic moat will continue to matter as digital wallets rise in popularity and the fintech industry continues to expand.
The valuation looks attractive
PayPal's stock sell-off over the past 18 months has left the stock looking reasonably valued.
PYPL PE Ratio (Forward) data by YCharts
For context, the average forward price-to-earnings ratio in the financial industry is 13.8, while PayPal's forward price-to-sales ratio of about 2 and under is generally considered undervalued. Given PayPal's valuation, the fact that the business isn't performing as bad as it seems, its economic moat, and the prospects of the larger fintech industry, the stock is a solid buy ahead of 2024, at least in my view.
That's especially true for investors planning to hold the stock for five years or more. Eventually, patience will be rewarded with this top company.
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Prosper Junior Bakiny has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As PayPal management reported at the beginning of the year, some of the company's key metrics registered excellent compound annual growth rates (CAGR) between 2017 and 2022. The company's consumer-facing business includes various services, from its peer-to-peer payment app Venmo to fast online checkout on thousands of retailers' websites. Given PayPal's valuation, the fact that the business isn't performing as bad as it seems, its economic moat, and the prospects of the larger fintech industry, the stock is a solid buy ahead of 2024, at least in my view.
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PYPL data by YCharts PayPal's two-sided network PayPal's growth slowed once the worst of the pandemic subsided and the need for its services eased. When businesses offer PayPal as a checkout option, customers tend to view that business as trustworthy. PYPL PE Ratio (Forward) data by YCharts For context, the average forward price-to-earnings ratio in the financial industry is 13.8, while PayPal's forward price-to-sales ratio of about 2 and under is generally considered undervalued.
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PYPL data by YCharts PayPal's two-sided network PayPal's growth slowed once the worst of the pandemic subsided and the need for its services eased. As PayPal management reported at the beginning of the year, some of the company's key metrics registered excellent compound annual growth rates (CAGR) between 2017 and 2022. Given PayPal's valuation, the fact that the business isn't performing as bad as it seems, its economic moat, and the prospects of the larger fintech industry, the stock is a solid buy ahead of 2024, at least in my view.
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In the third quarter, the company's revenue increased by 8% year over year to $7.4 billion. When businesses offer PayPal as a checkout option, customers tend to view that business as trustworthy. Given PayPal's valuation, the fact that the business isn't performing as bad as it seems, its economic moat, and the prospects of the larger fintech industry, the stock is a solid buy ahead of 2024, at least in my view.
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2023-12-06 00:00:00 UTC
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3 Undervalued Agriculture Stocks to Harvest Long-Term Gains
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Agriculture stocks have been experiencing a downturn due to declining crop prices and high costs associated with interest rates. This may offer an opportunity to get into some undervalued agriculture stocks looking to gain from precision agriculture. However, a little patience may be worth the wait as the U.S. Department of Agriculture predicts a 23% drop in farmer incomes this year following last year’s boom.
Although the short-term potential for some of the market’s most undervalued agricultural stocks is not too bright, some players are strategically positioned to benefit from precision agriculture. Farmers may still hold off replacing their aged fleets in hopes of better interest rates, but this could change soon. Not only must they upgrade their fleets, but the U.S. Federal Reserve is also expected to commence its rate-cut cycle next May.
Despite the economic ebbs and flows, there are still undervalued agriculture stocks which appear well-poised to harvest long-term gains.
CNH Industrial N.V (CNHI)
Source: Pavel Kapysh / Shutterstock.com
Despite facing difficulties in the market, CNH Industrial’s (NYSE:CNHI) net income rose slightly from $566 million to $567 million year-over-year in Q3 2023. The company simplified its corporate structure into a sole listing on the NYSE to focus its resources and reduce costs. As a short-term play, CNHI may not be a good bet as one of the top undervalued agriculture stocks to harvest long-term gains.
Trading at a PE ratio of 6.2x, significantly lower than the S&P 500’s 24.6x, CNH Industrial appears as an undervalued agriculture stock down 33% year-to-date. Despite the challenging market conditions, the company saw a 2% increase in net income year-over-year (YOY). It also anticipates a free cash flow between $1 billion to $1.2 billion this year. And, the company expects sales to increase between 3% to 6%.
Recently, Fitch Ratings affirmed CNH Industrial at BBB+ with a stable outlook, indicating a reasonably solid investment grade. The company exhibits a sound balance sheet, margin expansion and growth opportunities, making it appealing at a bargain valuation.
Deere & Co. (DE)
Source: Jim Lambert / Shutterstock.com
Deere & Co’s (NYSE:DE) net income rose 5% YOY in the most recent quarter despite market headwinds. While anticipating a sales decline next year, it increased profit this year and plans to focus on cost reduction.
Deere & Co has a PE ratio of 10.5x, less than half of the agricultural average of 24.3x. Its stock is also down 15% YTD, presenting a promising undervalued agriculture stock to buy and hold. The company expects volumes to return to mid-cycle levels next year.
While the near-term agricultural economy presents challenges, Deere’s long-term prospects make the agricultural stock attractive for patient investors seeking value and growth.
AGCO Corp (AGCO)
Source: Pavel Kapysh/ShutterStock.com
AGCO Corporation (NYSE:AGCO) is another long-term agriculture stock ready to harvest growth. It has a PE ratio of 7.4x, and its stock is also down this year by about 18%. Interestingly, that is despite the company expecting improved sales in 2023. Despite the ongoing conflict in Ukraine impacting farmer sentiment, it expects only a modest decline in retail tractor demand compared to 2022.
The company’s annual revenue has consistently increased over the past few years. In 2023, AGCO reported a revenue between $1.3 billion to 1.4 billion in precision Agriculture. This follows a steady growth pattern, with a 21% increase in quarterly dividends seen as adding to the optimism of long-term growth.
AGCO also aims to boost productivity through precision technology, which allows farmers to use smart solutions to optimize crop yields. By leveraging innovations for sustainable agriculture, AGCO helps farmers reduce costs and increase efficiency.
On the date of publication, Stavros Tousios 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.
Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.
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The post 3 Undervalued Agriculture Stocks to Harvest Long-Term Gains 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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With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights. 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 3 Undervalued Agriculture Stocks to Harvest Long-Term Gains appeared first on InvestorPlace.
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CNH Industrial N.V (CNHI) Source: Pavel Kapysh / Shutterstock.com Despite facing difficulties in the market, CNH Industrial’s (NYSE:CNHI) net income rose slightly from $566 million to $567 million year-over-year in Q3 2023. Deere & Co. (DE) Source: Jim Lambert / Shutterstock.com Deere & Co’s (NYSE:DE) net income rose 5% YOY in the most recent quarter despite market headwinds. AGCO Corp (AGCO) Source: Pavel Kapysh/ShutterStock.com AGCO Corporation (NYSE:AGCO) is another long-term agriculture stock ready to harvest growth.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Agriculture stocks have been experiencing a downturn due to declining crop prices and high costs associated with interest rates. Although the short-term potential for some of the market’s most undervalued agricultural stocks is not too bright, some players are strategically positioned to benefit from precision agriculture. AGCO Corp (AGCO) Source: Pavel Kapysh/ShutterStock.com AGCO Corporation (NYSE:AGCO) is another long-term agriculture stock ready to harvest growth.
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While anticipating a sales decline next year, it increased profit this year and plans to focus on cost reduction. Its stock is also down 15% YTD, presenting a promising undervalued agriculture stock to buy and hold. AGCO Corp (AGCO) Source: Pavel Kapysh/ShutterStock.com AGCO Corporation (NYSE:AGCO) is another long-term agriculture stock ready to harvest growth.
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2023-12-06 00:00:00 UTC
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3 Top Energy Stocks to Buy in December
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The energy sector encompasses a lot of different industries, and every investor should probably have a little exposure somewhere along the line. If you are looking at this broad area as December gets underway, you might want to consider Chevron (NYSE: CVX), Duke Energy (NYSE: DUK), and Brookfield Renewable (NYSE: BEP) (NYSE: BEPC).
Here's a quick look at why these three energy stocks are potential buys this month.
1. Chevron is built for safety
Despite the volatile nature of oil and natural gas prices, Chevron has managed to increase its dividend annually for 36 consecutive years. There are two big reasons for this. First, the company is an integrated energy major, which means its business spans from the upstream (drilling) through the midstream (pipelines) and all the way to the downstream (refining and chemicals). Having exposure to all aspects of the energy sector helps to smooth out the inherent ups and downs of the industry because some areas usually benefit while others are suffering.
That's important, but the bigger story is probably Chevron's balance sheet. With a debt-to-equity ratio of roughly 0.12 times, it has the strongest finances of any of its closest peers. Essentially, during the lean times, it can take on debt to keep funding its business and dividend while it waits for better days. When energy prices recover, as they always have historically, the company reduces its leverage to prepare for the next downturn. With a dividend yield of 4.1%, even the most conservative dividend investors should probably feel comfortable owning Chevron.
2. Duke Energy has managed to get even more boring
Duke Energy is one of the largest regulated utilities in the United States. What's interesting here today is that the company recently sold a small contracted renewable power business that it had built up. While driven by long-term contracts, contracted renewable power assets aren't as reliable as regulated assets. Duke's regulated operations have monopolies in the regions they serve and, in return, must get their rates and capital investment plans approved by the government. That limits growth, but it also tends to lead to a highly reliable business with slow and steady returns.
The dividend yield today is around 4.3%, and it has been increased annually for 19 consecutive years. Don't expect rapid dividend growth, but management has a clear line of sight for the future. It currently has a capital spending plan of around $65 billion (including a lot of clean energy investment) over the next five years that should drive earnings growth of between 5% and 7% a year through 2027. What investors will like about this is that the spending is largely regulator-approved and should take place no matter what is happening on Wall Street. So the growth management expects should be fairly reliable.
3. Brookfield Renewable is all in on clean energy
Duke Energy happened to have sold its contract clean energy business to Brookfield Renewable, the last stock on this list. Brookfield Renewable is a pure-play renewable power investment with around 32 gigawatts of power in its globally diversified clean energy portfolio. It is one of the most prominent players in the clean energy space thanks to the fact that it is backed by investment powerhouse Brookfield Asset Management (NYSE: BAM), which often helps to finance the deals it inks. But the really exciting opportunity is the growth built into the portfolio via the company's 130-plus gigawatt backlog of projects it has yet to build. That backlog should support growth for years to come.
There are two ways to invest in Brookfield Renewable that both represent the same entity -- Brookfield Renewable Partners and Brookfield Renewable Corp. As the names suggest, one is a partnership and the other a normal corporation. Brookfield Renewable Corp. was created so that entities unable to invest in partnerships (like pension funds) could invest, broadening Brookfield Renewable's access to capital. The partnership's yield is 5.2%, while the corporation's yield is 4.8%, largely because there is more demand for this structure. Both will provide high yield and clean energy exposure -- the partnership (the entity with the longer history) has increased its distribution annually for more than a decade.
A broad set of energy opportunities
Energy is a bit of a catch-all term, encompassing everything from oil drillers to electricity providers. There are good options for investors throughout the sector in December. Chevron is a rock-solid oil and natural gas stock. Duke is a regulated utility with a solid list of capital investment projects to build. And Brookfield Renewable is an expanding renewable power company with a massive backlog to complete. And all three have attractive yields above 4%.
10 stocks we like better than Chevron
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Asset Management and Brookfield Renewable. The Motley Fool recommends Brookfield Renewable Partners, Chevron, and Duke Energy. 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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First, the company is an integrated energy major, which means its business spans from the upstream (drilling) through the midstream (pipelines) and all the way to the downstream (refining and chemicals). It is one of the most prominent players in the clean energy space thanks to the fact that it is backed by investment powerhouse Brookfield Asset Management (NYSE: BAM), which often helps to finance the deals it inks. Both will provide high yield and clean energy exposure -- the partnership (the entity with the longer history) has increased its distribution annually for more than a decade.
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Chevron is built for safety Despite the volatile nature of oil and natural gas prices, Chevron has managed to increase its dividend annually for 36 consecutive years. Brookfield Renewable is all in on clean energy Duke Energy happened to have sold its contract clean energy business to Brookfield Renewable, the last stock on this list. The Motley Fool recommends Brookfield Renewable Partners, Chevron, and Duke Energy.
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Brookfield Renewable is all in on clean energy Duke Energy happened to have sold its contract clean energy business to Brookfield Renewable, the last stock on this list. Brookfield Renewable is a pure-play renewable power investment with around 32 gigawatts of power in its globally diversified clean energy portfolio. There are two ways to invest in Brookfield Renewable that both represent the same entity -- Brookfield Renewable Partners and Brookfield Renewable Corp. As the names suggest, one is a partnership and the other a normal corporation.
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The energy sector encompasses a lot of different industries, and every investor should probably have a little exposure somewhere along the line. Brookfield Renewable is all in on clean energy Duke Energy happened to have sold its contract clean energy business to Brookfield Renewable, the last stock on this list. Both will provide high yield and clean energy exposure -- the partnership (the entity with the longer history) has increased its distribution annually for more than a decade.
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2023-12-06 00:00:00 UTC
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3 No-Brainer Stocks to Buy With $300 Right Now
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https://www.nasdaq.com/articles/3-no-brainer-stocks-to-buy-with-%24300-right-now-9
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Who needs a theme park when you have Wall Street? Since the start of the decade, the three major stock indexes have navigated two separate bull and bear markets.
Although 2023 has featured a sizable rally for Wall Street, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite remain below their all-time closing highs. For long-term investors, it means opportunities still abound to snatch up high-quality companies at a discount.
Image source: Getty Images.
One of the best aspects of putting your money to work on Wall Street is that it's easier than ever for retail investors to get started or continue on their path to financial independence. Most online brokerages have completely done away with commission fees for trades on major U.S. exchanges, as well as minimum deposit requirements. This means any amount of money -- even $300 -- can represent the perfect amount to invest.
If you have $300 that's ready to invest, and you're 100% certain this cash won't be needed to pay bills or cover emergency expenses, the following three stocks stand out as no-brainer buys right now.
NextEra Energy
The first magnificent stock to add to your portfolio right now with $300 is none other than electric utility NextEra Energy (NYSE: NEE).
After two decades of virtually uninterrupted gains, NextEra's stock has hit the skids in 2023, with higher interest rates and a big uptick in Treasury yields to blame. Higher interest rates will make future projects financed by debt costlier.
Meanwhile, Treasury bonds are virtually risk-free investments offering yields of around 5% at the moment. Most investors flock to utility stocks for their low volatility and market-topping yields. However, investors have been able to net similar yields, with practically no risk to their principal, from Treasury bonds, which has made industry leaders like NextEra Energy less popular among income seekers.
However, NextEra Energy is an industry leader for a reason. Its competitive advantage is its renewable energy portfolio. As of the end of September, NextEra had 34 gigawatts (GW) of clean-energy capacity in operation, including 23 GW of wind capacity and 6 GW of solar capacity. Both figures are high-water marks globally.
Though undertaking clean-energy projects has been costly, it's benefited NextEra's bottom line in a big way. Electricity generation costs have tumbled, leading to a compound annual adjusted earnings growth rate of just shy of 10% over the previous 10 years. By comparison, most electric utilities are growing their earnings per share by a low-single-digit percentage on an annualized basis.
In addition to its world-leading renewables segment, NextEra's traditional utility operations are regulated. In other words, it can't raise rates on its customers without the approval of state-level utility commissions (i.e., the Florida Public Service Commission). While this might sound like a nuisance, it's actually a benefit in disguise. Regulated utilities avoid wholesale pricing, which makes their operating cash flow highly predictable.
Lastly, NextEra Energy is historically inexpensive. Shares are currently trading at 17 times forward-year earnings, which is the cheapest they've been since 2015.
Lovesac
A second no-brainer stock to buy with $300 right now is small-cap furniture retailer Lovesac (NASDAQ: LOVE).
Like most growth stocks, Lovesac was clobbered during the 2022 bear market. Fears of a potential U.S. recession clearly have investors concerned. If economic growth stalls or reverses, it's expected that consumers will pare back their discretionary spending in a highly cyclical industry (furniture).
But what's interesting about Lovesac is that it's nothing like traditional furniture retailers. This is a company that's completely differentiating itself with its products and omnichannel sales presence.
Lovesac's primary means of standing out from the rest of the pack is its furniture. While originally known for its beanbag-style chairs called "sacs," approximately 90% of net sales now derive from modular couches known as "sactionals." Sactionals can be rearranged dozens of ways to fit most living spaces, and they come with over 200 different cover choices and a multitude of upgrade options (e.g., built-in surround sound). Best of all, the yarn used in these covers is made entirely from recycled plastic water bottles. This makes sactionals unique in their functionality, optionality, and eco-friendliness.
As you can probably guess from these options, sactionals are pricier than traditional sofas and sectional couches. But that's just fine with Lovesac. The company predominantly targets middle- to upper-income clientele with its products. The advantage of this approach is that high-earners are less likely to alter their spending habits during periods of economic instability. In short, it leads to predictable sales and cash flow for Lovesac.
The other differentiating factor with Lovesac is its omnichannel sales platform. While it does have a physical store presence in most U.S. states, it was able to shift a significant percentage of its sales online during the COVID-19 pandemic.
Additionally, it operates popup showrooms and has partnerships with a couple of brand-name businesses -- Best Buy and Costco Wholesale. These alternative channels are improving brand awareness and, most importantly, keeping overhead costs low. The end result should be a consistently higher operating margin than its peers.
Sporting a long-term double-digit growth rate and a forward price-to-earnings ratio below 10, Lovesac is a screaming buy.
Image source: Getty Images.
Alibaba
The third no-brainer stock that's begging to be bought with $300 right now is China-based e-commerce company Alibaba (NYSE: BABA).
Perhaps the biggest thorn in Alibaba's side has been the tightening oversight of Chinese regulators. In 2021, the company was hit with a record fine of $2.75 billion by regulators for its anti-monopoly practices. Alibaba is the leading online marketplace in China. If regulators continue to tighten their grip, its growth rate could be adversely impacted.
Alibaba is also dealing with the recent departure of Daniel Zhang. Zhang was Alibaba's CEO for eight years, and he'd recently stepped down from the CEO role to head the company's burgeoning cloud services division. Investors are visibly concerned about the direction of the company with its key figurehead of nearly a decade no longer there.
Despite these challenges, there are a few reasons for investors to be increasingly optimistic about Alibaba's future.
To begin with, it absolutely dominates the e-commerce arena in China. Based on data from the International Trade Administration, Alibaba's online shopping sites Taobao and Tmall accounted for almost 51% of e-commerce market share in the world's No. 2 economy by gross domestic product. Considering that China's economy is still bouncing back from three years of supply chain constraints during the COVID-19 pandemic, there's reason to believe e-commerce has a lengthy upward trajectory.
Another reason for investors to be excited for Alibaba's future is its cloud services segment. Estimates from tech-analysis company Canalys from the March-ended quarter show Alibaba accounts for 34% of cloud infrastructure service spending in China. That's nearly double its next-closest competitor. Enterprise cloud spending is still in its early stages, which suggests there's a sustained double-digit growth opportunity for the company to take advantage of.
Alibaba wouldn't make the list of no-brainer buys if it wasn't also historically inexpensive. Even factoring in the added regulatory risks of putting your money to work in China, Alibaba is jaw-droppingly cheap at roughly 7 times forward-year earnings.
10 stocks we like better than NextEra Energy
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 NextEra Energy 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 November 29, 2023
Sean Williams has positions in Lovesac and NextEra Energy. The Motley Fool has positions in and recommends Best Buy, Costco Wholesale, and NextEra Energy. The Motley Fool recommends Alibaba Group and Lovesac. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After two decades of virtually uninterrupted gains, NextEra's stock has hit the skids in 2023, with higher interest rates and a big uptick in Treasury yields to blame. However, investors have been able to net similar yields, with practically no risk to their principal, from Treasury bonds, which has made industry leaders like NextEra Energy less popular among income seekers. Based on data from the International Trade Administration, Alibaba's online shopping sites Taobao and Tmall accounted for almost 51% of e-commerce market share in the world's No.
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In addition to its world-leading renewables segment, NextEra's traditional utility operations are regulated. Regulated utilities avoid wholesale pricing, which makes their operating cash flow highly predictable. The Motley Fool has positions in and recommends Best Buy, Costco Wholesale, and NextEra Energy.
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NextEra Energy The first magnificent stock to add to your portfolio right now with $300 is none other than electric utility NextEra Energy (NYSE: NEE). Lovesac A second no-brainer stock to buy with $300 right now is small-cap furniture retailer Lovesac (NASDAQ: LOVE). See the 10 stocks *Stock Advisor returns as of November 29, 2023 Sean Williams has positions in Lovesac and NextEra Energy.
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However, NextEra Energy is an industry leader for a reason. Alibaba is the leading online marketplace in China. That's right -- they think these 10 stocks are even better buys.
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2023-12-06 00:00:00 UTC
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NNGRY vs. BRP: Which Stock Is the Better Value Option?
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https://www.nasdaq.com/articles/nngry-vs.-brp%3A-which-stock-is-the-better-value-option-0
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Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY) or BRP Group (BRP). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
NN Group NV Unsponsored ADR has a Zacks Rank of #1 (Strong Buy), while BRP Group has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that NNGRY likely has seen a stronger improvement to its earnings outlook than BRP has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NNGRY currently has a forward P/E ratio of 6.62, while BRP has a forward P/E of 17.98. We also note that NNGRY has a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BRP currently has a PEG ratio of 0.62.
Another notable valuation metric for NNGRY is its P/B ratio of 0.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BRP has a P/B of 2.13.
Based on these metrics and many more, NNGRY holds a Value grade of A, while BRP has a Value grade of D.
NNGRY sticks out from BRP in both our Zacks Rank and Style Scores models, so value investors will likely feel that NNGRY is the better option right 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.
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NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report
BRP Group, Inc. (BRP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY) or BRP Group (BRP). NN Group NV Unsponsored ADR has a Zacks Rank of #1 (Strong Buy), while BRP Group has a Zacks Rank of #3 (Hold) right now. Click to get this free report NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report BRP Group, Inc. (BRP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY) or BRP Group (BRP). Based on these metrics and many more, NNGRY holds a Value grade of A, while BRP has a Value grade of D. NNGRY sticks out from BRP in both our Zacks Rank and Style Scores models, so value investors will likely feel that NNGRY is the better option right now. Click to get this free report NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report BRP Group, Inc. (BRP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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BRP currently has a PEG ratio of 0.62. Based on these metrics and many more, NNGRY holds a Value grade of A, while BRP has a Value grade of D. NNGRY sticks out from BRP in both our Zacks Rank and Style Scores models, so value investors will likely feel that NNGRY is the better option right now. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714868.0
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2023-12-06 00:00:00 UTC
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This Generative Artificial Intelligence (AI) Stock Has Doubled in 2023, and It Can Still Deliver Magnificent Growth
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https://www.nasdaq.com/articles/this-generative-artificial-intelligence-ai-stock-has-doubled-in-2023-and-it-can-still
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Generative artificial intelligence (AI) applications have gained a lot of popularity since the end of 2022 thanks to the technology's user-friendly nature, which allows users to quickly get answers to their queries with the help of simple text prompts.
From generating search results to creating marketing campaigns, writing code, and creating images, the use cases of generative AI applications such as chatbots have increased tremendously this year. The good part is that generative AI adoption is expected to jump significantly over the next decade. Bloomberg Intelligence forecasts that the generative AI market could be worth a whopping $1.3 trillion in 2032 as compared to just $40 billion last year.
The cybersecurity market is set to be one of the big beneficiaries of the growth in generative AI. According to Bloomberg Intelligence, generative AI-based cybersecurity spending could jump from just $9 million last year to almost $14 billion in 2032, clocking a terrific compound annual growth rate (CAGR) of 109% over the next decade.
CrowdStrike (NASDAQ: CRWD) allows investors to tap into this lucrative niche. Share prices of the cybersecurity specialist have more than doubled this year, securing gains of 123%. More importantly, its latest results sent the stock up 10% on Nov. 29 and also indicate that it is built for more upside in the future. Let's see why that may be the case.
Generative AI could accelerate CrowdStrike's impressive growth
CrowdStrike released fiscal 2024 third-quarter results (for the three months ended Oct. 31, 2023) on Nov. 28. The company's revenue increased 35% year over year to $786 million, exceeding the $777 million consensus estimate. CrowdStrike's adjusted earnings, meanwhile, increased to $0.82 per share last quarter from $0.40 per share in the prior-year period. Analysts would have settled for $0.74 per share in revenue.
More importantly, CrowdStrike ended the quarter with annual recurring revenue (ARR) of $3.15 billion, an increase of 35% over the year-ago quarter. The company calculates ARR as the annualized value of its subscription contracts at the end of a period, so the healthy growth in this metric indicates that the company is building a solid revenue pipeline for the future.
One of the reasons why the company's ARR is growing at a robust pace is that customers are purchasing more cybersecurity solutions from the company. For instance, the number of CrowdStrike subscription customers using seven or more modules from the company stood at 26%, up from 21% in the year-ago period. What's more, the number of CrowdStrike customers using five or more of its modules was up to 63% last quarter compared to 60% a year ago.
One of the reasons behind the growing customer adoption of CrowdStrike's security offerings could be the company's focus on integrating AI into its solutions. The company's AI-powered extended detection and response platform, known as Falcon, is witnessing "strong demand," which is "driving our pipeline to new heights," according to CFO Burt Podbere, speaking on the company's Q3earnings call
The Falcon platform harnesses the power of AI to collect data across multiple security endpoints to improve the pace of threat detection, investigation, and response. In May this year, CrowdStrike added a generative AI-powered virtual security analyst known as Charlotte AI to Falcon, pointing out that it built this security assistant into the "core" of the platform.
CrowdStrike points out that Charlotte AI has been designed to "help users of all skill levels improve their ability to stop breaches while reducing security operations complexity." The company claims that even novice users on the Falcon platform could operate like power users with Charlotte AI, as they can simply ask questions to the generative AI-powered assistant to get relevant answers concerning the organization's cybersecurity operations.
On the Q3earnings call CrowdStrike CEO George Kurtz claimed that generative AI "can turn hours of work into minutes while democratizing cybersecurity," and he believes that this has been a key factor in the growing adoption of the Falcon platform. Management points out that Charlotte AI is currently in preview mode, but customers who are using it are "able to do things way faster than they ever could and they're able to explore and ask questions that they haven't been able to do in the past."
CrowdStrike says Charlotte AI's pricing has been "incredibly well received," so there is a good chance that this solution could drive even stronger growth for the company once it is commercially released.
Stronger growth could be in the cards
CrowdStrike expects to finish the current fiscal year with revenue of almost $3.05 billion, which would be a 35% increase over last year. That's impressive considering that CrowdStrike is currently witnessing a "challenging macro environment and geopolitical tensions" that's leading customers to scrutinize their cybersecurity budgets.
Analysts anticipate CrowdStrike will clock 25%-plus revenue growth over the next couple of years.
CRWD Revenue Estimates for Current Fiscal Year data by YCharts
What's more, the company's bottom line could increase at an annual pace of 40% over the next five years as per analyst estimates. However, the advent of generative AI within the cybersecurity market and the steps taken by CrowdStrike to capitalize on this opportunity could eventually help the company grow more quickly.
Assuming CrowdStrike's earnings do increase at an annual rate of 41% for the next five years, its bottom line could hit $15.22 per share at the end of fiscal 2029 (using fiscal 2024's estimated earnings of $2.83 per share as the base). CrowdStrike is currently trading at 60 times forward earnings, which is on the expensive side. But that's well below its five-year average forward earnings multiple of 388.
Even if CrowdStrike trades at 30 times forward earnings after five years, its stock price could increase to $456 based on the projected earnings of $15.22. That would be nearly double the company's current stock price, which is why investors looking for a fast-growing cybersecurity company that's benefiting from the AI boom may want to buy CrowdStrike stock before it flies higher.
Find out why CrowdStrike is one of the 10 best stocks to buy now
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Generative artificial intelligence (AI) applications have gained a lot of popularity since the end of 2022 thanks to the technology's user-friendly nature, which allows users to quickly get answers to their queries with the help of simple text prompts. According to Bloomberg Intelligence, generative AI-based cybersecurity spending could jump from just $9 million last year to almost $14 billion in 2032, clocking a terrific compound annual growth rate (CAGR) of 109% over the next decade. On the Q3earnings call CrowdStrike CEO George Kurtz claimed that generative AI "can turn hours of work into minutes while democratizing cybersecurity," and he believes that this has been a key factor in the growing adoption of the Falcon platform.
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Generative AI could accelerate CrowdStrike's impressive growth CrowdStrike released fiscal 2024 third-quarter results (for the three months ended Oct. 31, 2023) on Nov. 28. More importantly, CrowdStrike ended the quarter with annual recurring revenue (ARR) of $3.15 billion, an increase of 35% over the year-ago quarter. In May this year, CrowdStrike added a generative AI-powered virtual security analyst known as Charlotte AI to Falcon, pointing out that it built this security assistant into the "core" of the platform.
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Generative AI could accelerate CrowdStrike's impressive growth CrowdStrike released fiscal 2024 third-quarter results (for the three months ended Oct. 31, 2023) on Nov. 28. In May this year, CrowdStrike added a generative AI-powered virtual security analyst known as Charlotte AI to Falcon, pointing out that it built this security assistant into the "core" of the platform. That would be nearly double the company's current stock price, which is why investors looking for a fast-growing cybersecurity company that's benefiting from the AI boom may want to buy CrowdStrike stock before it flies higher.
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In May this year, CrowdStrike added a generative AI-powered virtual security analyst known as Charlotte AI to Falcon, pointing out that it built this security assistant into the "core" of the platform. The company claims that even novice users on the Falcon platform could operate like power users with Charlotte AI, as they can simply ask questions to the generative AI-powered assistant to get relevant answers concerning the organization's cybersecurity operations. Assuming CrowdStrike's earnings do increase at an annual rate of 41% for the next five years, its bottom line could hit $15.22 per share at the end of fiscal 2029 (using fiscal 2024's estimated earnings of $2.83 per share as the base).
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714869.0
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2023-12-06 00:00:00 UTC
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Cloud Computing Kings: 3 Companies Outperforming AWS and Azure
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https://www.nasdaq.com/articles/cloud-computing-kings%3A-3-companies-outperforming-aws-and-azure
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cloud computing has helped companies save money and improve efficiency. This technology is the backbone of many corporations and is one of the last expenses these entities will cut. The significance of cloud computing stocks has helped tech stalwarts like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) power up the S&P 500 and Nasdaq-100 for several years.
While Microsoft and Amazon have been the leaders for many years, other cloud computing companies are catching up. While these companies have less market share than the tech conglomerates, they are gaining momentum.
More importantly, these three stocks have outperformed Microsoft and Amazon. Investors looking to optimize their returns in cloud computing stocks may want to consider these picks.
ServiceNow (NOW)
Source: Sundry Photography / Shutterstock.com
ServiceNow (NYSE:NOW) is a cloud computing company with over 7,700 global enterprise customers. The company’s software helps corporations streamline their work and stay safe from cyberattacks.
ServiceNow’s $140 billion market cap isn’t in the trillion-dollar territory like Microsoft and Amazon. However, NOW shares have gained 77% year-to-date and have almost quadrupled over the past five years. Shares are closing in on the all-time high they set near the end of 2021.
ServiceNow exhibits high revenue growth rates that are dwarfed by the company’s recent profit expansion. The firm exceeded its guidance in the third quarter and raised its benchmarks for the end of the year. Revenue increased by 25% year-over-year while net income surged by 202.5% year-over-year.
The dramatic growth in net income helped the company achieve a double-digit profit margin. ServiceNow has an impressive 98% renewal rate, which suggests that the rising profit margins and growing revenue are here to stay. ServiceNow can even consider price hikes in the future to drum up more revenue.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) helps business owners stay on top of their cloud infrastructure. Cloud computing software needs effective cybersecurity measures to ensure critical data doesn’t fall into the wrong hands.
Instead of creating a cloud computing solution like AWS or Microsoft Azure, Datadog allows you to watch over those platforms. The company has many high-profile customers including Twilio (NYSE:TWLO), Nasdaq (NASDAQ:NDAQ) and Maersk (OTCMKTS:AMKBY).
DDOG stock has comfortably outperformed the market with a 63.78% year-to-date gain and a 226% increase over the past five years. The company recently flipped the switch to profitability and can see rapid profit expansion in the upcoming quarters. Revenue growth is still looking good as the company posted 25.4% year-over-year growth in the third quarter.
The growth among customers paying over $100,000 in annual recurring revenue is also a good sign. This figure went up from about 2,600 customers to about 3,130 customers in one year. That’s a 20.4% year-over-year growth rate using the estimated figures provided by Datadog.
Zscaler (ZS)
Source: Sundry Photography / Shutterstock.com
Zscaler (NASDAQ:ZS) is well removed from its all-time high. The stock price has been cut by nearly half but remains one of the top-performing cloud computing stocks in the market. Shares are up by 81% year-to-date and have gained 392% over the past five years.
Zscaler is a cloud security platform that keeps critical documents and data points safe. Corporations can connect it with public and private clouds to enhance their security. Zscaler prevents over nine billion incidents and policy violations per day and processes over 500 trillion daily signals. The firm has helped customers achieve faster user experiences, fewer infected machines and reduced cloud infrastructure costs.
Zscaler is a popular choice that has over 40% of the Fortune 500 companies as its customers. It’s also popular among investors for its high historical returns and impressive top-line growth.
Zscaler recently kicked off its first quarter of fiscal 2024 with 40% year-over-year revenue growth. Billings grew by 34% year-over-year which indicates the revenue growth is sticky. The company also narrowed its net losses. Once this company becomes profitable, it has the potential to rapidly expand profit margins in a short period of time.
On the date of publication, Marc Guberti 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.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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The post Cloud Computing Kings: 3 Companies Outperforming AWS and Azure appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The firm has helped customers achieve faster user experiences, fewer infected machines and reduced cloud infrastructure costs. 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 Cloud Computing Kings: 3 Companies Outperforming AWS and Azure appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cloud computing has helped companies save money and improve efficiency. ServiceNow (NOW) Source: Sundry Photography / Shutterstock.com ServiceNow (NYSE:NOW) is a cloud computing company with over 7,700 global enterprise customers. Zscaler (ZS) Source: Sundry Photography / Shutterstock.com Zscaler (NASDAQ:ZS) is well removed from its all-time high.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cloud computing has helped companies save money and improve efficiency. The significance of cloud computing stocks has helped tech stalwarts like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) power up the S&P 500 and Nasdaq-100 for several years. ServiceNow (NOW) Source: Sundry Photography / Shutterstock.com ServiceNow (NYSE:NOW) is a cloud computing company with over 7,700 global enterprise customers.
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Shares are closing in on the all-time high they set near the end of 2021. Revenue growth is still looking good as the company posted 25.4% year-over-year growth in the third quarter. This figure went up from about 2,600 customers to about 3,130 customers in one year.
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2023-12-06 00:00:00 UTC
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Big News for Fisker Stock Investors
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https://www.nasdaq.com/articles/big-news-for-fisker-stock-investors
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Fool.com contributor Parkev Tatevosian discusses the major hurdles Fisker (NYSE: FSR) faces amid a struggling EV market.
*Stock prices used were the afternoon prices of Dec. 3, 2023. The video was published on Dec. 5, 2023.
10 stocks we like better than Fisker
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 Fisker wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Parkev Tatevosian, CFA 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian discusses the major hurdles Fisker (NYSE: FSR) faces amid a struggling EV market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor Parkev Tatevosian discusses the major hurdles Fisker (NYSE: FSR) faces amid a struggling EV market. 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 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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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 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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* They just revealed what they believe are the ten best stocks for investors to buy right now… and Fisker wasn't one of them! The Motley Fool has no position in any of the stocks mentioned. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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714871.0
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2023-12-06 00:00:00 UTC
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1 Unstoppable Warren Buffett Growth Stock to Buy Now in December
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https://www.nasdaq.com/articles/1-unstoppable-warren-buffett-growth-stock-to-buy-now-in-december
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Fool.com contributor Parkev Tatevosian highlights one of his favorite growth stocks that Warren Buffett owns in his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio.
*Stock prices used were the afternoon prices of Dec. 3, 2023. The video was published on Dec. 5, 2023.
10 stocks we like better than Nu
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 Nu wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Nu. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Fool.com contributor Parkev Tatevosian highlights one of his favorite growth stocks that Warren Buffett owns in his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Berkshire Hathaway.
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10 stocks we like better than Nu 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 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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See the 10 stocks *Stock Advisor returns as of December 4, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Nu. His opinions remain his own and are unaffected by The Motley Fool.
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2f4a4014-4bf8-4e22-9607-bd6293f4ef32
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714872.0
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2023-12-06 00:00:00 UTC
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Safran urges realistic aero output plans as supply remains tight
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https://www.nasdaq.com/articles/safran-urges-realistic-aero-output-plans-as-supply-remains-tight
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By Tim Hepher
CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand.
Together with GE GE.N, Safran co-produces LEAP jet engines for all Boeing BA.N and more than half of Airbus AIR.PA narrow-body jets through their CFM International venture.
"The supply chain is still struggling to recover from the shock of the pandemic, as well as the other shocks: Ukraine, energy, inflation and labour," Olivier Andries said during a visit to Morocco to sign a government pact on boosting supply chains.
"The supply chain was really shaken, and today it has not returned to a normal level," Andries told reporters. "So for us the question is what is the right speed for the ramp-up. It's not a question of demand ... demand is there."
Citing supply issues, CFM recently trimmed a percentage growth forecast for LEAP deliveries in 2023 to 40-45% from around 50%, implying deliveries of around 1,600 to 1,650 units.
Andries reiterated a preliminary target of 2,000 LEAP engine deliveries in 2024, subject to final discussions with GE ahead of annual forecasts in February.
He indicated, however, that this represented a ceiling as pressure remained on items including raw materials.
"It is already very ambitious given the state of the supply chain today and for me to tell you today that we can do 2,100 or 2,200 in 2024 - no. So we are targeting 2,000."
'REMAIN REALISTIC'
For 2025, Andries said CFM would raise LEAP deliveries but that there was no urgency to agree precise volumes with aircraft manufacturers until around the middle of next year.
"Everyone is very conscious that in a difficult supply chain situation, we all have to be ambitious for sure, but also challenge ourselves and remain realistic," Andries said. "There is no point in making commitments you can't achieve."
Engine makers have been generally more cautious than Airbus, in particular, about raising output to meet new travel demand. Planemakers say engine supplies are among their biggest risks.
Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus.
But he cautioned that planemakers had recently shown a tendency to lower their demand as years progress. He also noted that Airbus had pushed back a target of 75 a month from 2025 to 2026. Airbus has said it is on track towards reaching this goal after missing targets in 2022.
In a further clue to CFM's output potential beyond next year, Andries said it continues to base assumptions on a market share of 60% at Airbus, where it competes with Pratt & Whitney RTX.N, and 100% at Boeing where it is sole 737 supplier.
Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
The comments came as Safran outlined a new framework agreement with the Moroccan government designed to develop local supply chains, with an emphasis on training. Safran repairs engines, produces engine nacelles and operates a cabling joint-venture with Boeing - Matis Aerospace - in Morocco.
(Reporting by Tim Hepher, Editing by Louise Heavens and Mark Potter)
((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Tim Hepher CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand. Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus. In a further clue to CFM's output potential beyond next year, Andries said it continues to base assumptions on a market share of 60% at Airbus, where it competes with Pratt & Whitney RTX.N, and 100% at Boeing where it is sole 737 supplier.
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By Tim Hepher CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand. Together with GE GE.N, Safran co-produces LEAP jet engines for all Boeing BA.N and more than half of Airbus AIR.PA narrow-body jets through their CFM International venture. Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
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By Tim Hepher CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand. "The supply chain is still struggling to recover from the shock of the pandemic, as well as the other shocks: Ukraine, energy, inflation and labour," Olivier Andries said during a visit to Morocco to sign a government pact on boosting supply chains. Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
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It's not a question of demand ... demand is there." Citing supply issues, CFM recently trimmed a percentage growth forecast for LEAP deliveries in 2023 to 40-45% from around 50%, implying deliveries of around 1,600 to 1,650 units. Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus.
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2023-12-06 00:00:00 UTC
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TipRanks All-Star Analyst – Who is the Best on AAPL Stock?
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https://www.nasdaq.com/articles/tipranks-all-star-analyst-who-is-the-best-on-aapl-stock-1
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The TipRanks All-star Analyst of the Day title goes to Krish Sankar of research firm TD Cowen. Remarkably, Sankar ranks #243 out of the 8,617 Wall Street analysts tracked by TipRanks. One of the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst.
Most Profitable and Accurate Analyst on AAPL Stock
When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. Plus, he has earned average returns of 47.08% in the said period.
On an overall basis, copying Sankar’s trades and holding them for a year would give you an average return of 16.3%, with 67% of your trades generating a profit.
Not Just AAPL
Sankar primarily focuses on covering the technology sector in the U.S. and U.K. markets. Importantly, his most profitable rating to date was a Buy on COHU (NASDAQ:COHU). This company provides semiconductor test equipment and services. The analyst earned a massive 206% return on the call between April 17, 2020, and April 17, 2021.
Following phenomenally successful analysts’ ratings can add profit to your portfolio. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page.
To follow the best Wall Street analysts, take a look at the list of Top Analysts on TipRanks.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The TipRanks All-star Analyst of the Day title goes to Krish Sankar of research firm TD Cowen. Remarkably, Sankar ranks #243 out of the 8,617 Wall Street analysts tracked by TipRanks. One of the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst.
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One of the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. Following phenomenally successful analysts’ ratings can add profit to your portfolio.
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Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page. To follow the best Wall Street analysts, take a look at the list of Top Analysts on TipRanks.
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Remarkably, Sankar ranks #243 out of the 8,617 Wall Street analysts tracked by TipRanks. Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. Plus, he has earned average returns of 47.08% in the said period.
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2023-12-06 00:00:00 UTC
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Venture Global LNG expects extended start-up at second plant, says CEO
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https://www.nasdaq.com/articles/venture-global-lng-expects-extended-start-up-at-second-plant-says-ceo
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By Curtis Williams
HOUSTON, Dec 6 (Reuters) - A Venture Global LNG export plant due to begin operating in 2024 will undergo a lengthy startup similar to its Calcasieu Pass LNG facility, with customers likely to receive their first cargoes in 2026 at the earliest, Chief Executive Mike Sabel told Reuters.
The nearly three-year commissioning at Calcasieu Pass prevented its original backers from obtaining any of the liquefied natural gas (LNG) cargoes shipped and has stirred a firestorm of accusations and arbitration claims from those customers.
The new Plaquemines LNG plant, which sits 20 miles (32km) south of New Orleans along the Mississippi River, includes some of the same customers that fiercely protested their inability to obtain their cargoes from Calcasieu Pass.
Asked whether Plaquemines' commissioning period would be as extended as the Calcasieu Pass plant's nearly 36 months, Sabel said "absolutely."
"Keep in mind our total timeline from FID (financial investment decision) to COD (commercial operation date) is shorter than most of the world," he added.
The earliest date that first cargoes are available to long-term contract customers is 2026 or 2027, but Venture Global expects to sell commissioning cargoes in 2024.
Venture Global LNG has said its contracts give it sole authority to determine when a facility is commercial.
The company has said equipment problems at the first plant have prevented it from reaching full commercial production, allowing it to withhold cargoes from big name contract customers including BP BP.L, Edison EDNn.MI, Repsol REP.MC, Shell SHEL.L and others, and sell them as commissioning cargoes.
Customers claim Venture Global LNG has deprived them of tens of billions of dollars in LNG sales at a time when global prices were much higher than what they were promised. Sabel said the companies knew Venture Global's use of a modular approach to the plant's design would lead to a lengthy commissioning.
"Just signing a contract, especially when it is at a spectacularly lower price, doesn't lead to easy capital," Sabel said, pushing back at customers who argue their contracts helped get the projects financed.
Poland's state energy company Orlen, which has agreements to acquire a combined 5.5 million metric tons per annum (MTPA) of LNG from the two facilities, said it would "take measures appropriate to the situation," if it does not receive its first Plaquemines cargo as promised in 2026.
China Gas, which agreed to buy 1 MTPA from Plaquemines, is unaware of an extended period facing the Plaquemines startup. It expects to receive its first gas from the project in early 2027 under its contract, a representative said.
Shell "would never entertain a contract that allowed for commissioning to be extended for an undetermined amount of time," said a spokesperson. Chevron CVX.N, France's EDF and New Fortress Energy NFE.O, three other Plaquemines contract holders, declined to comment.
(Reporting by Curtis Williams in Houston; Editing by Sonali Paul)
((Curtis.Williams@thomsonreuters.com; +1 346 324 7560))
The views and 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 nearly three-year commissioning at Calcasieu Pass prevented its original backers from obtaining any of the liquefied natural gas (LNG) cargoes shipped and has stirred a firestorm of accusations and arbitration claims from those customers. The new Plaquemines LNG plant, which sits 20 miles (32km) south of New Orleans along the Mississippi River, includes some of the same customers that fiercely protested their inability to obtain their cargoes from Calcasieu Pass. Poland's state energy company Orlen, which has agreements to acquire a combined 5.5 million metric tons per annum (MTPA) of LNG from the two facilities, said it would "take measures appropriate to the situation," if it does not receive its first Plaquemines cargo as promised in 2026.
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By Curtis Williams HOUSTON, Dec 6 (Reuters) - A Venture Global LNG export plant due to begin operating in 2024 will undergo a lengthy startup similar to its Calcasieu Pass LNG facility, with customers likely to receive their first cargoes in 2026 at the earliest, Chief Executive Mike Sabel told Reuters. The earliest date that first cargoes are available to long-term contract customers is 2026 or 2027, but Venture Global expects to sell commissioning cargoes in 2024. Customers claim Venture Global LNG has deprived them of tens of billions of dollars in LNG sales at a time when global prices were much higher than what they were promised.
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By Curtis Williams HOUSTON, Dec 6 (Reuters) - A Venture Global LNG export plant due to begin operating in 2024 will undergo a lengthy startup similar to its Calcasieu Pass LNG facility, with customers likely to receive their first cargoes in 2026 at the earliest, Chief Executive Mike Sabel told Reuters. The earliest date that first cargoes are available to long-term contract customers is 2026 or 2027, but Venture Global expects to sell commissioning cargoes in 2024. The company has said equipment problems at the first plant have prevented it from reaching full commercial production, allowing it to withhold cargoes from big name contract customers including BP BP.L, Edison EDNn.MI, Repsol REP.MC, Shell SHEL.L and others, and sell them as commissioning cargoes.
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The new Plaquemines LNG plant, which sits 20 miles (32km) south of New Orleans along the Mississippi River, includes some of the same customers that fiercely protested their inability to obtain their cargoes from Calcasieu Pass. Asked whether Plaquemines' commissioning period would be as extended as the Calcasieu Pass plant's nearly 36 months, Sabel said "absolutely." The earliest date that first cargoes are available to long-term contract customers is 2026 or 2027, but Venture Global expects to sell commissioning cargoes in 2024.
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2023-12-06 00:00:00 UTC
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A New Bull Market Is Nearly Here for the Dow Jones: 3 Great Stocks for Dividend Investors to Buy Hand Over Fist
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https://www.nasdaq.com/articles/a-new-bull-market-is-nearly-here-for-the-dow-jones%3A-3-great-stocks-for-dividend-investors
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Don't let this year's seemingly meager gain for the Dow Jones Industrial Average fool you. Sure, the index is up only less than 10% year to date compared to a 19% jump for the S&P 500. However, the Dow has soared 26% since its previous low set on Sept. 30, 2022.
All that's needed for the Dow Jones to begin a new bull run is for the index to establish a new high. It's less than 2% away from doing so.
A new bull market is nearly here for the Dow Jones. And there are three great Dow stocks for dividend investors to buy hand over fist.
1. Chevron
2023 hasn't been good for Chevron (NYSE: CVX). Shares of the oil and gas giant have tumbled nearly 20%, making it the Dow's second-worst-performing stock of the year.
But this dismal showing has made Chevron's valuation even more attractive. The stock trades at a forward price-to-earnings ratio of only 10. The decline has also boosted Chevron's dividend yield to a lofty 4.2%.
Look for that dividend to grow soon. Chevron has increased its dividend for 36 consecutive years. The company typically announces its dividend hikes in January. I fully expect that Chevron will keep its streak going next month with another dividend increase.
There's a good chance that the stock could rebound in the new year as well. The average Wall Street 12-month price target for Chevron reflects an upside potential of 25%. With oil prices forecast to trade between $70 and $100 a barrel in 2024, the company should be able to generate strong revenue and profits.
2. Microsoft
It's been a completely different story for Microsoft (NASDAQ: MSFT) in 2023. The tech stock has skyrocketed over 50% thanks in large part to the generative AI boom.
Microsoft's dividend yield is only a little over 0.8%. Why should dividend investors consider buying a stock with such a paltry yield? I think there are two reasons.
First, Microsoft's dividend payout continues to grow by leaps and bounds. The company increased its dividend by 10% in September 2023. Over the last 10 years, Microsoft has more than tripled its dividend payout.
Second, Microsoft should have tremendous overall growth prospects. The company is a leader in nearly every important technology of the future, including AI, gaming, quantum computing, and more.
3. Verizon Communications
Verizon Communications (NYSE: VZ) started off 2023 with its share price steadily declining. However, the telecommunications leader has turned things around in a dramatic way in the fourth quarter. Verizon could even end the year in positive territory.
It's easy to pinpoint the reason behind Verizon's comeback. The company reported better-than-expected Q3 results in October. Importantly, Verizon generated year-to-date free cash flow of $14.6 billion, up from $12.4 billion in 2022.
This strong free cash flow should mean that Verizon's dividends will continue flowing and growing. Income investors will no doubt love the company's dividend yield of 6.9%. They'll probably also like the fact that Verizon has increased its dividend for 17 consecutive years.
Granted, Verizon continues to face some challenges. Wireless, in particular, remains a highly competitive business with a lot of customer churn. However, the company plans to launch a bundled streaming deal for its wireless customers that includes the ad-supported versions of Netflix and Max. This move could enable Verizon to hold onto more customers while attracting new ones.
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*Stock Advisor returns as of December 4, 2023
Keith Speights has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft and Netflix. The Motley Fool recommends Chevron and Verizon Communications. 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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Don't let this year's seemingly meager gain for the Dow Jones Industrial Average fool you. Shares of the oil and gas giant have tumbled nearly 20%, making it the Dow's second-worst-performing stock of the year. However, the company plans to launch a bundled streaming deal for its wireless customers that includes the ad-supported versions of Netflix and Max.
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Importantly, Verizon generated year-to-date free cash flow of $14.6 billion, up from $12.4 billion in 2022. This strong free cash flow should mean that Verizon's dividends will continue flowing and growing. The Motley Fool recommends Chevron and Verizon Communications.
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And there are three great Dow stocks for dividend investors to buy hand over fist. They'll probably also like the fact that Verizon has increased its dividend for 17 consecutive years. 10 stocks we like better than Verizon Communications When our analyst team has a stock tip, it can pay to listen.
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Chevron 2023 hasn't been good for Chevron (NYSE: CVX). Chevron has increased its dividend for 36 consecutive years. The company increased its dividend by 10% in September 2023.
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2023-12-06 00:00:00 UTC
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Palantir’s AI Surge: Is PLTR Stock Really Worth the Hype?
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https://www.nasdaq.com/articles/palantirs-ai-surge%3A-is-pltr-stock-really-worth-the-hype
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After a year of being hyped as the ultimate AI winner, Palantir (NASDAQ:PLTR) stock is up over 200%, rising from $7 in January to a little more than $18 today. I have long been skeptical of Palantir. Its claims have long been well ahead of its financials.
PLTR stock has a market cap of over $40 billion on $2.1 billion of revenue, growing at 20% per year. The company is only marginally profitable, although it may now be added to the S&P 500.
The AI Hype Cycle and PLTR Stock
Palantir is riding an AI hype cycle. When the hype cycle goes up, so does the stock. When the hype cycle goes down, so does Palantir.
Delivering insights from large databases is now defined as AI. The insights are called machine learning. The databases are large language models. Palantir was doing this before it was cool. This is why analysts are hyping the stock.
Palantir developed its technology for use by the military and has extended contracts proving its value. Data can “see” what’s happening on a battlefield and help plan a campaign. It can catch changing conditions and alert leaders to threats quickly.
The challenge has been to go beyond this niche. Palantir calls the commercial version of its technology the Foundry. It has been lining up partners to deliver it. Any drop in the shares is seen as a buying opportunity.
Foundry has found success in applications like hospital scheduling. Matching what’s available to what’s needed can be useful to planners of all kinds. It’s not as sexy as delivering pictures based on prompts, but it’s a lot more useful.
This may be why Blackrock now has a $1.5 billion stake in Palantir. It’s why Jim Cramer recently told investors to buy it, despite its sky high valuation. Whenever Palantir signs a new commercial partner, analysts start comparing it to Nvidia.
The Danger Signs
Palantir’s success in anticipating needs helped it win a contract with England’s National Health Service, but PLTR stock fell after the deal was announced. Its past as a military contractor quickly drew pushback. Patients were leery of giving it access to the data needed for Foundry to do its job.
The Generative AI boom has also brought competition to Palantir’s party. Many if not most big tech players are in the game. They see big profits in delivering different output, including computer code, from Internet-sized databases. They also don’t have Palantir’s proprietary attitude or history of military secrecy to contend with.
The Bottom Line
I have been wrong about Palantir stock for a long time. Any company whose leading edge technology delivers growth is going to command a big price. This is especially true if it can deliver profits, even small ones. Palantir’s entry into the S&P 500 will be a catalyst for buying.
To be worth my money, however, Palantir needs to grow faster than it is doing right now. It must deliver a lot more profit. Yet the company, being conservative in the best possible way, is not promising that.
As of this writing, Dana Blankenhorn had LONG positions in MSFT, AMZN, NVDA, and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The post Palantir’s AI Surge: Is PLTR Stock Really Worth the Hype? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Danger Signs Palantir’s success in anticipating needs helped it win a contract with England’s National Health Service, but PLTR stock fell after the deal was announced. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Palantir’s AI Surge: Is PLTR Stock Really Worth the Hype?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After a year of being hyped as the ultimate AI winner, Palantir (NASDAQ:PLTR) stock is up over 200%, rising from $7 in January to a little more than $18 today. The AI Hype Cycle and PLTR Stock Palantir is riding an AI hype cycle. Whenever Palantir signs a new commercial partner, analysts start comparing it to Nvidia.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After a year of being hyped as the ultimate AI winner, Palantir (NASDAQ:PLTR) stock is up over 200%, rising from $7 in January to a little more than $18 today. The AI Hype Cycle and PLTR Stock Palantir is riding an AI hype cycle. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Palantir’s AI Surge: Is PLTR Stock Really Worth the Hype?
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Palantir calls the commercial version of its technology the Foundry. They see big profits in delivering different output, including computer code, from Internet-sized databases. Any company whose leading edge technology delivers growth is going to command a big price.
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2023-12-06 00:00:00 UTC
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3 Dividend Stocks That Have Hiked Their Payouts by 10% or More This Year
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https://www.nasdaq.com/articles/3-dividend-stocks-that-have-hiked-their-payouts-by-10-or-more-this-year
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If you're looking for dividend stocks, consider companies that have raised their payouts in the past. Otherwise, your real dividend income may diminish over the years, due to inflation. And if a company is increasing its dividend, that's generally a positive sign that the business is growing and doing well.
Three stocks that recently announced dividend increases (of at least 10%) are McDonald's (NYSE: MCD), Roper Technologies (NASDAQ: ROP), and General Motors (NYSE: GM). Not all of them are high-yielding stocks, but they can be promising income investments to hold for the long term.
1. McDonald's
Fast-food giant McDonald's has been a top dividend stock to own for years. It has regularly increased its payouts, and generous rate hikes are no surprise to its seasoned shareholders.
In October, the company announced its latest increase, which was a 10% increase to the payout. The company will distribute the new quarterly cash dividend of $1.67 on Dec. 15.
At the new rate, the stock now yields 2.3%, which is higher than the S&P 500 average of 1.5%. McDonald's has increased its dividend payments for 47 straight years and is on track to become a Dividend King in a few more years.
The company's robust business makes it an attractive option for dividend investors. In the trailing 12 months, McDonald's has generated revenue of more than $25 billion, with earnings totaling $8.3 billion -- good for a margin of 33%.
The company's high margin at a time of high inflation is a testament to its ability to protect its margins and do well, despite facing challenging macroeconomic conditions that are crippling other businesses.
McDonald's is a solid, steady investment you can safely hold in your portfolio for perhaps forever. Its strong brand and growing dividend make it an ideal stock to hang on to for the long haul.
2. Roper Technologies
Roper Technologies is a diversified technology company that focuses on niche markets. From healthcare to education to media and entertainment, its software helps many different industries.
Many of its businesses generate less than $250 million in revenue, but in total, this business routinely reports more than $5 billion in annual revenue. And in the trailing 12 months, Roper has accumulated $2.9 billion in earnings on just under $6 billion in sales, for an impressive profit margin of nearly 50%.
The company's strong financials give the business plenty of stability and room to raise its payout. Last month, it announced it would be raising its dividend for the 31st consecutive year. The 10% increase would push the quarterly payment to $0.75.
Although the stock yields a fairly modest 0.6%, Roper's large gains over the years more than compensate for the lackluster payout. In five years, shares of Roper have risen by 78% (the S&P 500 is up by 63%).
The stock gives investors a good mix of dividend income and growth potential. And with a payout ratio of less than 25%, there's plenty of room for the payout to go higher.
3. General Motors
General Motors (GM) and other automakers recently hammered out new labor deals with the United Auto Workers. Now that the parties have reached new agreements, there's clarity about the path ahead.
And while GM is expecting $9.3 billion in additional costs through until 2028 due to the new deals, it still plans to buy back $10 billion shares of stock and is increasing its dividend by 33%.
The formal dividend increase hasn't been declared just yet (that will happen next month), but management expects to increase the dividend to $0.12, up from the current payment of $0.09. The increase would put GM's dividend yield at around 1.4% -- currently, it's at 1.1%.
The company expects strong profits this year, with net income in the range of $9.1 billion to $9.7 billion. Last year, GM reported a profit of $8.9 billion.
The economy isn't in great shape and demand for new cars may not be strong in the near term. However, with GM's stock trading at less than 5 times its estimated future earnings and the labor dispute over, now could be an advantageous time to buy shares of the automaker, as there's a good margin of safety there for investors.
10 stocks we like better than McDonald's
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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.
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*Stock Advisor returns as of December 4, 2023
David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends General Motors and Roper Technologies and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its strong brand and growing dividend make it an ideal stock to hang on to for the long haul. The company's strong financials give the business plenty of stability and room to raise its payout. Although the stock yields a fairly modest 0.6%, Roper's large gains over the years more than compensate for the lackluster payout.
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Three stocks that recently announced dividend increases (of at least 10%) are McDonald's (NYSE: MCD), Roper Technologies (NASDAQ: ROP), and General Motors (NYSE: GM). In the trailing 12 months, McDonald's has generated revenue of more than $25 billion, with earnings totaling $8.3 billion -- good for a margin of 33%. The Motley Fool recommends General Motors and Roper Technologies and recommends the following options: long January 2025 $25 calls on General Motors.
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Three stocks that recently announced dividend increases (of at least 10%) are McDonald's (NYSE: MCD), Roper Technologies (NASDAQ: ROP), and General Motors (NYSE: GM). McDonald's has increased its dividend payments for 47 straight years and is on track to become a Dividend King in a few more years. And while GM is expecting $9.3 billion in additional costs through until 2028 due to the new deals, it still plans to buy back $10 billion shares of stock and is increasing its dividend by 33%.
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And if a company is increasing its dividend, that's generally a positive sign that the business is growing and doing well. And while GM is expecting $9.3 billion in additional costs through until 2028 due to the new deals, it still plans to buy back $10 billion shares of stock and is increasing its dividend by 33%. However, with GM's stock trading at less than 5 times its estimated future earnings and the labor dispute over, now could be an advantageous time to buy shares of the automaker, as there's a good margin of safety there for investors.
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2023-12-06 00:00:00 UTC
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Safran warns against over-promising as aerospace supply remains tight
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https://www.nasdaq.com/articles/safran-warns-against-over-promising-as-aerospace-supply-remains-tight
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By Tim Hepher
CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand.
Together with GE GE.N, Safran co-produces LEAP jet engines for all Boeing BA.N and more than half of Airbus AIR.PA narrow-body jets through their CFM International venture.
"The supply chain is still struggling to recover from the shock of the pandemic, as well as the other shocks: Ukraine, energy, inflation and labour," Olivier Andries said during a visit to Morocco to sign a government pact on boosting supply chains.
"The supply chain was really shaken, and today it has not returned to a normal level," Andries told reporters. "So for us the question is what is the right speed for the ramp-up. It's not a question of demand ... demand is there."
Citing supply issues, CFM recently trimmed a percentage growth forecast for LEAP deliveries in 2023 to 40-45% from around 50%, implying deliveries of around 1,600 to 1,650 units.
Andries reiterated a preliminary target of 2,000 LEAP engine deliveries in 2024, subject to final discussions with GE ahead of annual forecasts in February.
He indicated, however, that this represented a ceiling as pressure remained on items including raw materials.
"It is already very ambitious given the state of the supply chain today and for me to tell you today that we can do 2,100 or 2,200 in 2024 - no. So we are targeting 2,000."
'REMAIN REALISTIC'
For 2025, Andries said CFM would raise LEAP deliveries but that there was no urgency to agree precise volumes with aircraft manufacturers until around the middle of next year.
"Everyone is very conscious that in a difficult supply chain situation, we all have to be ambitious for sure, but also challenge ourselves and remain realistic," Andries said. "There is no point in making commitments you can't achieve."
Engine makers have been generally more cautious than Airbus, in particular, about raising output to meet new travel demand. Planemakers say engine supplies are among their biggest risks.
Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus.
But he cautioned that planemakers had recently shown a tendency to lower their demand as years progress. He also noted that Airbus had pushed back a target of 75 a month from 2025 to 2026. Airbus has said it is on track towards reaching this goal after missing targets in 2022.
In a further clue to CFM's output potential beyond next year, Andries said it continues to base assumptions on a market share of 60% at Airbus, where it competes with Pratt & Whitney RTX.N, and 100% at Boeing where it is sole 737 supplier.
Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
The comments came as Safran outlined a new framework agreement with the Moroccan government designed to develop local supply chains, with an emphasis on training. Safran repairs engines, produces engine nacelles and operates a cabling joint-venture with Boeing - Matis Aerospace - in Morocco.
(Reporting by Tim Hepher, Editing by Louise Heavens and Mark Potter)
((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Tim Hepher CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand. Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus. In a further clue to CFM's output potential beyond next year, Andries said it continues to base assumptions on a market share of 60% at Airbus, where it competes with Pratt & Whitney RTX.N, and 100% at Boeing where it is sole 737 supplier.
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By Tim Hepher CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand. Together with GE GE.N, Safran co-produces LEAP jet engines for all Boeing BA.N and more than half of Airbus AIR.PA narrow-body jets through their CFM International venture. Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
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By Tim Hepher CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand. "The supply chain is still struggling to recover from the shock of the pandemic, as well as the other shocks: Ukraine, energy, inflation and labour," Olivier Andries said during a visit to Morocco to sign a government pact on boosting supply chains. Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
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It's not a question of demand ... demand is there." Citing supply issues, CFM recently trimmed a percentage growth forecast for LEAP deliveries in 2023 to 40-45% from around 50%, implying deliveries of around 1,600 to 1,650 units. Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus.
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2023-12-06 00:00:00 UTC
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Here's Why You Should Retain Align Technology (ALGN) Stock Now
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https://www.nasdaq.com/articles/heres-why-you-should-retain-align-technology-algn-stock-now-0
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Align Technologies ALGN is well-poised for growth in the coming quarters, backed by its global expansion to address the vast untapped demand in the malocclusion space. The company launched its first subscription-based clear aligner program DSP worldwide, which looks encouraging.
Mounting expenses are putting pressure on margins. Strong FX headwind impedes growth.
In the past year, this Zacks Rank #3 (Hold) stock has increased 15% compared with the 9.9% rise of the industry and 16.4% growth of the S&P 500 composite.
The renowned medical device company has a market capitalization of $16.83 billion. ALGN projects a long-term estimated earnings growth rate of 17.5% compared with 12.5% of the industry.
Let’s delve deeper.
Upsides
Invisalign Portfolio Expansion: Align Technology’s Invisalign portfolio offers orthodontic treatment to straighten teeth without metal braces.
In the third quarter of 2023, the company continued to roll out the Invisalign Comprehensive Three and Three product in APAC, where it is available in China, Hong Kong, Korea, Taiwan and India. Instead of unlimited additional aligners within five years of the treatment end date, the latest configuration offers Invisalign comprehensive treatment with three other aligners included within three years of the treatment end date.
Geographic Expansion Continues: Align Technology is expanding its sales and marketing by reaching new countries and regions, including new areas within Africa and Latin America. The company also performs digital treatment planning and interpretation for restorative cases worldwide, including Costa Rica, China, Germany, Spain, Poland and Japan, among others. Align Technology continues to expand its business in 2023 through investments in resources, infrastructure and initiatives that drive growth in Invisalign treatment, intraoral scanners and Exocad CAD/CAM software in existing and new international markets.
Strategic Alliances: Align Technology's slew of strategic alliances looks impressive. The company has well-established relationships with many DSOs, especially in the United States, and is consistently exploring collaboration with others that drive the adoption of digital dentistry.
Image Source: Zacks Investment Research
In the Americas, Align Technology is focused on reaching young adults as well as teens and their parents through influencer and creator-centric campaigns in 2023. It is partnering with leading smile squad creators, including Marshall Martin, Rally Shaw and Jeremy Lin. Each of these creators shared their personal experiences with Invisalign treatment and why they chose to transform their smile with Invisalign aligners.
Downsides
Currency Headwinds: Foreign exchange is a major headwind for Align Technology due to a considerable percentage of its revenues coming from outside the United States (in 2022, 44% of the company’s consolidated revenues came from international regions). Through the first nine months of 2023, the strengthening of the U.S. dollar against nearly every other major currency hampered Align Technology’s revenues in the international markets. This was mainly due to the Fed’s 10 consecutive aggressive hikes in interest rates to tackle inflation since March 2022.
Competitive Landscape: Align Technology faces significant competition from traditional orthodontic appliance (or wires and brackets) players such as 3M’s Unitek, Danaher Corporation’s Sybron Dental Specialties and Dentsply International. The company also competes with products similar to Invisalign Technology, such as the ones from Ormco Orthodontics, a division of Sybron Dental Specialties.
Estimate Trend
The Zacks Consensus Estimate for Align Technologies’ 2023 earnings per share (EPS) has dropped from $8.77 to $8.42 in the past 90 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at 3.86 billion. The projection suggests a 3.3% rise from the year-ago reported number.
Other Key Picks
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 have increased from $1.61 to $1.90 in the past 30 days. The company's shares 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 fallen 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
Align Technology, Inc. (ALGN) : 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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The company also performs digital treatment planning and interpretation for restorative cases worldwide, including Costa Rica, China, Germany, Spain, Poland and Japan, among others. Align Technology continues to expand its business in 2023 through investments in resources, infrastructure and initiatives that drive growth in Invisalign treatment, intraoral scanners and Exocad CAD/CAM software in existing and new international markets. Image Source: Zacks Investment Research In the Americas, Align Technology is focused on reaching young adults as well as teens and their parents through influencer and creator-centric campaigns in 2023.
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Upsides Invisalign Portfolio Expansion: Align Technology’s Invisalign portfolio offers orthodontic treatment to straighten teeth without metal braces. Instead of unlimited additional aligners within five years of the treatment end date, the latest configuration offers Invisalign comprehensive treatment with three other aligners included within three years of the treatment end date. Click to get this free report Align Technology, Inc. (ALGN) : 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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Instead of unlimited additional aligners within five years of the treatment end date, the latest configuration offers Invisalign comprehensive treatment with three other aligners included within three years of the treatment end date. Estimate Trend The Zacks Consensus Estimate for Align Technologies’ 2023 earnings per share (EPS) has dropped from $8.77 to $8.42 in the past 90 days. Click to get this free report Align Technology, Inc. (ALGN) : 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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In the past year, this Zacks Rank #3 (Hold) stock has increased 15% compared with the 9.9% rise of the industry and 16.4% growth of the S&P 500 composite. ALGN projects a long-term estimated earnings growth rate of 17.5% compared with 12.5% of the industry. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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d855155e-5027-4a34-98f2-0e5cf161e467
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714880.0
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2023-12-06 00:00:00 UTC
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Bear of the Day: Floor & Decor (FND)
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https://www.nasdaq.com/articles/bear-of-the-day%3A-floor-decor-fnd-0
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Floor & Decor Holdings FND 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
Bottom Line
Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.
Floor & Decor Holdings FND 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.
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
Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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 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. Image Source: Zacks Investment Research Bottom Line Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term. Floor & Decor Holdings FND is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
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Image Source: Zacks Investment Research Bottom Line Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term. 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 Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research In addition, the company resides in the Zacks Building Products – Wood industry, which is currently ranked in the bottom 27% of all Zacks industries. Floor & Decor Holdings FND 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.
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Image Source: Zacks Investment Research Shares saw bullish activity post-earnings following its latest earnings release, helping spark a rally. Floor & Decor Holdings FND is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714881.0
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2023-12-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights Johnson & Johnson, T-Mobile US, Caterpillar, Broadcom and Starbucks
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-johnson-johnson-t-mobile-us-caterpillar-broadcom-and
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For Immediate Release
Chicago, IL – December 6, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Johnson & Johnson JNJ, T-Mobile US, Inc. TMUS, Caterpillar Inc. CAT, Broadcom Inc. AVGO and Starbucks Corp. SBUX.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for Johnson & Johnson, T-Mobile and Caterpillar
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Johnson & Johnson, T-Mobile US, Inc. and Caterpillar Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Johnson & Johnson have gained +2.0% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +6.8%. With the separation of the Consumer Health unit, J&J has now become a two-sector company focused on the Pharma and MedTech fields.
The Pharma unit is performing at above-market levels. Growth in 2023 is being driven by existing products like Darzalex, Tremfya, Erleada, Invega Sustenna and Uptravi, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by recovery in surgical procedures and contribution from new products.
J&J is making rapid progress with its pipeline and line extensions. However, headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, uncertainty exists regarding the talc litigations
(You can read the full research report on Johnson & Johnson here >>>)
T-Mobile shares have outperformed the Zacks Wireless National industry over the past six months (+19.4% vs. +13.8%). The company reached its full-year target of covering 300 million Americans with ultra-capacity 5G network two months before its deadline.
Strong emphasis on developing advanced 5G use cases, such as roaming service on a 5G Standalone (SA) network will likely boost commercial prospect. Improvement in Postpaid average revenues per account and a record low postpaid churn rate are tailwinds.
However, management’s strategy of introducing several promotional activities to gain customers is weighing on margins. High debt obligations and macroeconomic challenges remain headwinds. Declining Equipment revenues and weak demand for Prepaid services are impeding the revenue growth.
(You can read the full research report on T-Mobile here >>>)
Shares of Caterpillar have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+13.5% vs. +12.5%). The company’s revenues and earnings have grown year over year due to its cost-saving actions, strong end-market demand and pricing actions, which offset the impact of the supply-chain snarls and cost pressures.
The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.
The Energy & Transportation segment remains well-poised for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
(You can read the full research report on Caterpillar here >>>)
Other noteworthy reports we are featuring today include Broadcom Inc. and Starbucks Corp.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Growth in 2023 is being driven by existing products like Darzalex, Tremfya, Erleada, Invega Sustenna and Uptravi, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Stocks recently featured in the blog include: Johnson & Johnson JNJ, T-Mobile US, Inc. TMUS, Caterpillar Inc. CAT, Broadcom Inc. AVGO and Starbucks Corp. SBUX. Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for Johnson & Johnson, T-Mobile and Caterpillar The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Tuesday’s Analyst Blog: Top Analyst Reports for Johnson & Johnson, T-Mobile and Caterpillar The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Johnson & Johnson, T-Mobile US, Inc. and Caterpillar Inc. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Johnson & Johnson have gained +2.0% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +6.8%. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714882.0
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2023-12-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights United Bankshares, Wintrust Financial, First BanCorp, TowneBank and WSFS Financial
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DCOMP
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-united-bankshares-wintrust-financial-first-bancorp
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For Immediate Release
Chicago, IL – December 6, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: United Bankshares, Inc. UBSI, Wintrust Financial Corp. WTFC, First BanCorp. FBP, TowneBank TOWN and WSFS Financial Corp. WSFS.
Here are highlights from Tuesday’s Analyst Blog:
5 Top-Ranked Banks That Outperformed the S&P 500 in November
November turned out to be the best month for the U.S. stock markets since 2022. All three major indexes – S&P 500, Nasdaq and Dow Jones – witnessed substantial monthly upswings. This was driven by investors’ shift in focus to the possibility of interest rate cuts in the future by the Federal Reserve from previous attention to the timeline on rate hikes.
The robust market performance in November was attributable to the sectors that are sensitive to interest rates. Among the top five best-performing sectors is the Financial Services, which rallied 12.9%. The major constituent of the Financial Services sector, banks, are highly sensitive to interest rates. Though the U.S. regional banking crisis earlier this year hurt investor sentiments and turned them bearish on the industry, they have regained confidence.
Hence, we have selected five banks – United Bankshares, Inc., Wintrust Financial Corp., First BanCorp., TowneBank and WSFS Financial Corp. – that performed impressively in November. These stocks outperformed the S&P 500 index, which recorded a monthly gain of 7.8%.
The central bank played a key role in leading the markets higher in November. The month started with the Fed announcing no change in the interest rates after its two-day FOMC meeting. Currently, the interest rates stand at a 22-year high of 5.25-5.5%.
Further, October’s inflation numbers (showing further cooling down) and other economic data, like the job market and GDP numbers, reinforced investors’ confidence that the Fed is done raising rates. This fueled hopes of a ‘soft landing’ in the U.S. economy and potential interest rate cuts as early as March 2024.
5 Banks to Bet On
Despite the solid performance in November, banks are not out of the woods.
The issue of high rates is expected to exert pressure on NII well into 2024 as business activities continue to slow down. So, banks’ ability to boost profits remains a big challenge. This is further aggravated by huge unrealized losses on bonds and competition for deposits. The rating agencies – Moody’s and Fitch – have cautioned against ‘sticky’ inflation.
Therefore, one must exercise caution while investing in bank stocks.
The five selected banks are fundamentally strong and are expected to withstand worsening operating backdrop. The stocks have a market cap of $2 billion or more and currently carry a Zacks Rank of 2 (Buy).
United Bankshares, based in Charleston, WV, offers commercial and retail banking products and services through approximately 250 offices in Virginia, Maryland, Washington, DC, North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia and Ohio.
Higher interest rates, decent loan demand and efforts to improve fee income will continue to support the company’s financials. Over the years, UBSI has expanded through acquisitions. Also, solid liquidity position and capital levels aid the company.
United Bankshares has a market cap of $4.7 billion. The company’s shares have gained 16.6% in November.
Wintrust Financial, based in Rosemont, IL, has more than 150 Wintrust Community Bank locations in Illinois, Wisconsin and Indiana through its 15 community bank subsidiaries. Higher interest rates, decent loan demand and efforts to bolster non-interest income will keep supporting the company’s financials.
Over the years, WTFC, which has a market cap of $5.6 billion, has grown substantially through acquisitions. Also, solid liquidity position and capital levels aid the company.
Wintrust Financial’s shares have rallied 14.9% in November.
San Juan, PR-based First BanCorp provides a range of financial products and services to consumers and commercial customers. Solid loan balance, improving market share and high rates will support the company’s financials.
Further, a strong balance sheet and capital levels will help FBP amid a challenging operating environment.
First BanCorp has a market cap of $2.7 billion. The company’s shares have gained 11.3% in November.
TowneBank, headquartered in Portsmouth, VA, provides retail and commercial banking services for individuals, commercial enterprises and professionals. The company operates more than 45 banking offices across Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina.
Moderate loan demand, higher rates and strategic acquisitions continue to support TOWN’s financials. The company acquired Farmers Bankshares, Inc. in January 2023, and this has significantly aided the company's top-line growth.
TowneBank has a market cap of $2.1 billion. The company’s shares have gained 9.3% in November.
WSFS Financial, based in Wilmington, DE, operates as a savings and loan holding company. The company operates from 116 offices and offers financial services, including commercial banking, consumer banking, treasury management and trust and wealth management.
Higher rates, decent loan demand, efforts to bolster fee income and strategic acquisitions continue to support the company’s top-line growth. In January 2022, WSFS acquired Bryn Mawr Bank Corporation.
WSFS Financial has a market cap of $2.5 billion. The company’s shares have gained 8.3% in November.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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
Wintrust Financial Corporation (WTFC) : Free Stock Analysis Report
WSFS Financial Corporation (WSFS) : Free Stock Analysis Report
United Bankshares, Inc. (UBSI) : Free Stock Analysis Report
First BanCorp. (FBP) : Free Stock Analysis Report
Towne Bank (TOWN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Higher interest rates, decent loan demand and efforts to improve fee income will continue to support the company’s financials. Higher rates, decent loan demand, efforts to bolster fee income and strategic acquisitions continue to support the company’s top-line growth. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Higher rates, decent loan demand, efforts to bolster fee income and strategic acquisitions continue to support the company’s top-line growth. Click to get this free report Wintrust Financial Corporation (WTFC) : Free Stock Analysis Report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report United Bankshares, Inc. (UBSI) : Free Stock Analysis Report First BanCorp. (FBP) : Free Stock Analysis Report Towne Bank (TOWN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Hence, we have selected five banks – United Bankshares, Inc., Wintrust Financial Corp., First BanCorp., TowneBank and WSFS Financial Corp. – that performed impressively in November. Click to get this free report Wintrust Financial Corporation (WTFC) : Free Stock Analysis Report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report United Bankshares, Inc. (UBSI) : Free Stock Analysis Report First BanCorp. (FBP) : Free Stock Analysis Report Towne Bank (TOWN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Hence, we have selected five banks – United Bankshares, Inc., Wintrust Financial Corp., First BanCorp., TowneBank and WSFS Financial Corp. – that performed impressively in November. Solid loan balance, improving market share and high rates will support the company’s financials. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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9e0ad95b-739c-456b-9072-30f0586b26a0
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714883.0
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2023-12-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights Nvidia, Royal Caribbean Cruises, Arista Networks, ServiceNow and Amazon.com
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DCOMP
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-nvidia-royal-caribbean-cruises-arista-networks
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For Immediate Release
Chicago, IL – December 6, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Nvidia NVDA, Royal Caribbean Cruises RCL, Arista Networks Inc. ANET, ServiceNow Inc. NOW and Amazon.com AMZN.
Here are highlights from Tuesday’s Analyst Blog:
5 Top-Ranked Stocks Pushing the S&P 500 to 2023 Peak
After several twists and turns, the S&P 500 set a record high of 2023, extending its blockbuster November rally. With the latest surge, the benchmark quickly erased its steep drop seen in the summer and has gained nearly 20% so far this year. The rally was driven by optimism that the Fed is done with interest rate hikes, which has pushed the Treasury yields down and rekindled investors’ risk-on trade. Yields on U.S. Treasuries saw the biggest monthly drop since 2008.
The gains were broad-based across various segments and many stocks in the S&P 500 have gained more than 75% this year. We have highlighted five stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy), a Momentum Score of B or better and saw positive earnings estimate revisions for the current fiscal year over the past 30 days, suggesting continued outperformance. These are Nvidia, Royal Caribbean Cruises, Arista Networks Inc., ServiceNow Inc. and Amazon.com. You can see the complete list of today’s Zacks #1 Rank stocks here.
There is a growing confidence among investors that the Fed might be nearing the end of its rate hike cycle. This optimism was further fueled by comments from Fed Chair Jerome Powell that the central bank could cut rates starting in March. According to CME’s FedWatch tool, traders are pricing in a 70% chance for a rate cut by the U.S. central bank by next March. The latest round of data points has also strengthened the idea that the Fed is done with rate hikes.
A significant portion of the S&P 500's gains can be attributed to the strong performance of a group of large-cap stocks, referred to as the "Magnificent Seven." This group, comprising Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla, has seen significant stock gains from 47% to 220% so far this year. The perceived safety of these investments, their sizes, competitive advantages and the potential of emerging technologies like artificial intelligence have been the key factors driving their performances.
Further, better-than-expected earnings added to the strength. 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.
Best Stocks of S&P 500
Nvidia is the worldwide leader in visual computing technologies and the inventor of graphic processing unit or GPU. The stock skyrocketed 220% this year. It has seen a solid earnings estimate revision of $1.43 for the fiscal year ending January 2024 over the past 30 days, and has an estimated growth of 264.4%.
Nvidia currently has a Zacks Rank #2 and a Growth Score of A.
Royal Caribbean is a cruise company that owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. The stock soared 124% and saw a solid earnings estimate revision of 13 cents over the past 30 days for this year, with an estimated earnings growth rate of 187.9%.
Royal Caribbean sports a Zacks Rank #1 at present and has a Growth Score of B.
Arista Networks is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks. The stock surged nearly 78% this year.
Arista Networks saw a positive earnings estimate revision of 4 cents for this year and has an earnings growth rate of 43%. It has a Zacks Rank #2 and a solid Growth Score of B.
ServiceNow provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. The stock soared nearly 78% in 2023. It has seen a positive earnings estimate revision of four cents over the past 30 days for this year, with an estimated earnings growth rate of 37.5%.
ServiceNow has a Zacks Rank #2.
Amazonis one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. It has gained 75% and has an estimated earnings growth of 276.1% for this year.
Amazon has a Zacks Rank #2 and a Growth Score of A.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Nvidia NVDA, Royal Caribbean Cruises RCL, Arista Networks Inc. ANET, ServiceNow Inc. NOW and Amazon.com AMZN. Here are highlights from Tuesday’s Analyst Blog: 5 Top-Ranked Stocks Pushing the S&P 500 to 2023 Peak After several twists and turns, the S&P 500 set a record high of 2023, extending its blockbuster November rally. It has a Zacks Rank #2 and a solid Growth Score of B. ServiceNow provides cloud computing services that automate digital workflows to accelerate enterprise IT operations.
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Stocks recently featured in the blog include: Nvidia NVDA, Royal Caribbean Cruises RCL, Arista Networks Inc. ANET, ServiceNow Inc. NOW and Amazon.com AMZN. The stock soared 124% and saw a solid earnings estimate revision of 13 cents over the past 30 days for this year, with an estimated earnings growth rate of 187.9%. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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We have highlighted five stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy), a Momentum Score of B or better and saw positive earnings estimate revisions for the current fiscal year over the past 30 days, suggesting continued outperformance. The stock soared 124% and saw a solid earnings estimate revision of 13 cents over the past 30 days for this year, with an estimated earnings growth rate of 187.9%. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has gained 75% and has an estimated earnings growth of 276.1% for this year. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. 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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Looking to Boost Your Portfolio Before the New Year? 2 Spectacular Stock-Split Stocks to Buy Now.
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https://www.nasdaq.com/articles/looking-to-boost-your-portfolio-before-the-new-year-2-spectacular-stock-split-stocks-to
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The stock market is rallying, and in this environment, it looks tempting to jump on the bandwagon and buy stocks that have led the gain. This isn't always a good idea, though, because some of these stocks may have climbed too far too fast. But in certain cases, these high-momentum stocks actually offer more room to run.
How do you find these jewels? By looking at companies' long-term prospects. If they're promising, these rallying stocks may advance some more in the near term and go on to extend gains over time. It's also a good idea to study the companies' track records as successful ones give you another reason to get in on these players.
Often, a recent stock split indicates a company has been doing well, too, and expects its shares to increase again in the long run. With a stock split, companies offer more shares to current holders to bring down the price of each individual share.
Let's check out two spectacular stock-split stocks that have led gains so far -- and could continue rising. They may boost your portfolio before the new year and beyond.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) completed a stock split last year after years of gains pushed the stock price over $3,000. The stock didn't immediately roar higher, but this year, it's advanced about 70% and has what it takes to keep climbing -- thanks to the company's dominance in two high-growth markets: e-commerce and cloud computing. These industries both are expanding in the double-digits, and Amazon, as a longtime leader, should benefit now and into the future.
The company is especially set to thrive thanks to recent moves it made to improve its cost structure. Faced with a challenging economy and some internal issues, like excess fulfillment capacity, Amazon focused on cost cuts, efficiency, and investing in high-growth areas like technology infrastructure, and artificial intelligence (AI).
These efforts are bearing fruit, as investors have seen in recent earnings reports. In the latest quarter, Amazon reported gains in net sales, net income, free cash flow, and other key financial metrics. The company also made gains in delivery times, thanks to shifting its fulfillment model from a national one to a regional one. Delivering across shorter distances makes the process quicker -- pleasing customers -- and saves Amazon time and money.
As for cloud services, Amazon has made progress here, too. The company recently said that Amazon Web Services (AWS) customers are deploying new projects after watching their budgets earlier in the year. This is great news since AWS generally has driven profit at Amazon.
Meanwhile, Amazon shares are trading for 54x forward earnings estimates, lower than more than 80 a couple of years ago. This represents a solid buying opportunity right now.
2. Tesla
Tesla (NASDAQ: TSLA) also split its stock last year after the price soared above $1,000. Like many other growth stocks, including Amazon, it fell last year as investors shied away from stocks that were most sensitive to the economy. But Tesla shares have taken off this year, increasing 90%, and the gains likely aren't over. And here's why.
Even though Tesla faces economic headwinds and has had to deal with rising costs and negative currency impact, the long-term outlook remains bright. The company is the leader in the electric-vehicle (EV) market, and although it may lose some share to rivals, it has the brand strength necessary to stay in the lead. Tesla's brand is its moat, or competitive advantage, and a solid moat is a huge plus, offering some visibility on future revenue.
Tesla also is investing in key areas that should help it stand out -- and stay ahead of the competition -- over time. For example, its investments in AI have led to the creation of its Dojo supercomputer, an AI-based technology that could help the company rapidly update self-driving software and complete other crucial tasks.
Through today's difficult economy, Tesla also has managed to grow revenue, production, deliveries, and its cash position -- and remain profitable. The automaker recently said its cash position reached $26 billion, a huge plus for a company that needs to invest heavily to meet growth goals.
Tesla may not look cheap trading at more than 70x forward earnings estimates. But the EV-giant's shares are less expensive by this measure than they were a couple of years ago -- and at the same time, Tesla has grown revenue and vehicle deliveries. So this isn't an excessively high price to pay for Tesla stock today, especially considering the potential for long-term share performance.
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 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. Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock didn't immediately roar higher, but this year, it's advanced about 70% and has what it takes to keep climbing -- thanks to the company's dominance in two high-growth markets: e-commerce and cloud computing. Faced with a challenging economy and some internal issues, like excess fulfillment capacity, Amazon focused on cost cuts, efficiency, and investing in high-growth areas like technology infrastructure, and artificial intelligence (AI). For example, its investments in AI have led to the creation of its Dojo supercomputer, an AI-based technology that could help the company rapidly update self-driving software and complete other crucial tasks.
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Amazon Amazon (NASDAQ: AMZN) completed a stock split last year after years of gains pushed the stock price over $3,000. Meanwhile, Amazon shares are trading for 54x forward earnings estimates, lower than more than 80 a couple of years ago. Tesla's brand is its moat, or competitive advantage, and a solid moat is a huge plus, offering some visibility on future revenue.
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Amazon Amazon (NASDAQ: AMZN) completed a stock split last year after years of gains pushed the stock price over $3,000. Like many other growth stocks, including Amazon, it fell last year as investors shied away from stocks that were most sensitive to the economy. 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 Amazon (NASDAQ: AMZN) completed a stock split last year after years of gains pushed the stock price over $3,000. But Tesla shares have taken off this year, increasing 90%, and the gains likely aren't over. Through today's difficult economy, Tesla also has managed to grow revenue, production, deliveries, and its cash position -- and remain profitable.
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2023-12-06 00:00:00 UTC
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Zacks Industry Outlook Highlights Coty, Inter Parfums, e.l.f. Beauty and European Wax Center
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-coty-inter-parfums-e.l.f.-beauty-and-european-wax-center
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For Immediate Release
Chicago, IL – December 6, 2023 – Today, Zacks Equity Research discusses Coty Inc. COTY, Inter Parfums, Inc. IPAR, e.l.f. Beauty, Inc. ELF and European Wax Center, Inc. EWCZ.
Industry: Cosmetics
Link: https://www.zacks.com/commentary/2193407/4-cosmetics-stocks-worth-watching-amid-industry-headwinds
Players in the Zacks Cosmetics industry are operating amid an inflationary environment and supply-chain challenges. Reduced discretionary spending owing to the overall inflationary landscape has been affecting demand for several companies’ products.
That being said, efforts to boost digital operations and innovations have been working for companies like Coty Inc., Inter Parfums, Inc., e.l.f. Beauty, Inc. and European Wax Center, Inc.
About the Industry
The Zacks Cosmetics industry includes companies providing beauty and personal care products. Players in the industry manufacture, distribute, sell and market skincare, fragrance, makeup and hair care products. Many firms in the space market via sales representatives, whereas some sell products through retailers, independent and chain drug stores and pharmacies, upscale perfumeries, department stores and beauty salons.
These companies also operate through retailer websites, third-party distributors and in-flight and duty-free shops. Some of the products offered by the industry participants include moisturizers, serums, toners and cleansers under skincare; perfume sprays, candles and soaps under fragrance; lipsticks, mascaras, powders, eye shadows, foundation and nail polishes under makeup; and shampoos, conditioner and hair color products under hair care.
Trends Shaping the Future of the Cosmetics Industry
Inflationary Headwinds: Cosmetic companies have been battling inflationary pressure thanks to operating costs like labor, supplies and travel, among others. Several players are witnessing supply-chain bottlenecks from wide-scale shortages of materials, higher freight prices and port congestions. Rising cost of living, hiked interest rates and rising household debt are compelling consumers to cut down on discretionary purchases, thus impacting demand for products offered by cosmetic players. A highly competitive cosmetic market compels companies to indulge in heavy research and development, thus putting pressure on margins.
Volatile Currency Movements: Several industry players remain vulnerable to unfavorable foreign currency movements due to their exposure to international markets. This is because a strengthening U.S. dollar will shrink margins in every case where the company is unable to raise prices and pass the impact on to customers. Adverse currency fluctuations are likely to have affected several industry players’ performance during 2023.
Innovation & Digitization – Major Drivers: Consumers keep looking for unique product offerings that incorporate the latest technologies and expert scientific formulations in the beauty and skincare space. Focus on resonating with consumers’ ever-changing preferences has kept cosmetic players engaged in innovation and product launches. Increased consumer awareness has also stimulated demand for organic skincare and “clean beauty” products.
These firms’ foremost priority has been to broaden their market reach by boosting e-commerce capabilities. They have made significant progress, evident from tools like virtual try, new digital payment solutions and digital marketing efforts. Players have been fueling brand portfolios through prudent buyouts and strategic alliances. Such upsides are likely to continue supporting the top-line performance of cosmetics companies.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Cosmetics industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #190, which places it in the bottom 24% 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 solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries leads to a negative aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since the beginning of September 2023, the industry’s consensus estimate for current financial year earnings has plunged 37.5%.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock-market performance and valuation picture.
Industry Vs. Broader Market
The Zacks Cosmetics industry has underperformed the Zacks S&P 500 composite and the broader Zacks Consumer Staples sector over the past year.
The industry has moved down 29.1% over this period, against the S&P 500’s increase of 16.8%. The broader sector has dropped 9.7% in the said time frame.
Industry's Current Valuation
On the basis of forward 12-month Price-to-earnings (P/E), which is commonly used for valuing consumer staples stocks, the industry is currently trading at 31.57X compared with the S&P 500’s 19.30X and the sector’s 16.99X.
In the past five years, the industry has traded as high as 45.92X, as low as 19.64X, and at the median of 30.77X.
4 Cosmetic Stocks Worth Watching
e.l.f. Beauty: This provider of cosmetic and skincare products sports a Zacks Rank #1 (Strong Buy). The company appears well-placed to benefit from its commitment to solidifying its brand portfolio through innovation. Focus on effective marketing strategies helps the company reach new audiences and penetrate new platforms. It is undertaking significant investments in its digital business, which are yielding. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ELF’s current fiscal year earnings per share (EPS) has increased 3.1% in the past 30 days to $2.68. e.l.f. Beauty’s stock has declined 5.4% in the past three months.
Inter Parfums: The Zacks Rank #2 (Buy) company manufactures, distributes and markets a wide range of fragrances and related products. Inter Parfums has been reaping the benefits of the favorable trends and the momentum in the fragrance market. The company is growing its market share with innovative programs. Management is expanding its business through new licenses or acquisitions.
The Zacks Consensus Estimate for IPAR’s current fiscal year EPS has moved up 4.2% to $4.75 in the past 30 days. Shares of Inter Parfums have dropped 1.1% in the past three months.
Coty: The manufacturer, marketer and distributor of beauty products presently carries a Zacks Rank #3 (Hold). Coty is benefiting from its focus on six strategic pillars aimed at sustainable growth, including expanding makeup brands and mass fragrances and establishing a strong skincare portfolio. Management has made several strategic partnerships to enhance its brand portfolio. COTY is committed to optimizing the overall cost structure.
The Zacks Consensus Estimate for Coty’s current fiscal year EPS has moved down 15.2% in the past 30 days to 39 cents. COTY’s stock has gained 6.3% in the past three months.
European Wax Center: The largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States carries a Zacks Rank #3. EWCZ is gaining on solid business momentum from franchisees and in-center partners. Solid brand loyalty and recurring revenue stream have been upsides for European Wax Center. Focus on undertaking increased digital promotions has been aiding growth.
The Zacks Consensus Estimate for European Wax’s current fiscal year EPS has moved down a couple of cents in the past 30 days to 34 cents. EWCZ’s stock has declined 9.9% in the past three months.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Coty (COTY) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
European Wax Center, Inc. (EWCZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Innovation & Digitization – Major Drivers: Consumers keep looking for unique product offerings that incorporate the latest technologies and expert scientific formulations in the beauty and skincare space. Coty is benefiting from its focus on six strategic pillars aimed at sustainable growth, including expanding makeup brands and mass fragrances and establishing a strong skincare portfolio. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Beauty, Inc. and European Wax Center, Inc. About the Industry The Zacks Cosmetics industry includes companies providing beauty and personal care products. Click to get this free report Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report Coty (COTY) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report European Wax Center, Inc. (EWCZ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Beauty, Inc. and European Wax Center, Inc. About the Industry The Zacks Cosmetics industry includes companies providing beauty and personal care products. Zacks Industry Rank Indicates Dull Prospects The Zacks Cosmetics industry is housed within the broader Zacks Consumer Staples sector. Broader Market The Zacks Cosmetics industry has underperformed the Zacks S&P 500 composite and the broader Zacks Consumer Staples sector over the past year.
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That being said, efforts to boost digital operations and innovations have been working for companies like Coty Inc., Inter Parfums, Inc., e.l.f. Industry Vs. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities.
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2023-12-06 00:00:00 UTC
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Zacks Industry Outlook Highlights Woodward, Badger Meter and Thermon Group
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-woodward-badger-meter-and-thermon-group-0
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For Immediate Release
Chicago, IL – December 6, 2023 – Today, Zacks Equity Research discusses Woodward, Inc. WWD, Badger Meter, Inc. BMI and Thermon Group Holdings, Inc. THR.
Industry: Instruments - Control
Link: https://www.zacks.com/commentary/2193488/3-instruments-stocks-to-ride-on-energy-efficiency-focus
The Zacks Instruments – Control industry is poised to benefit from the surging demand for state-of-the-art technology for replacing legacy industrial control systems with automated products. In addition, a focus on energy-efficient production processes and integrated software systems is likely to be conducive to growth.
However, commodity price inflation amid uncertain macroeconomic conditions might hurt the process automation and instrumentation market. Nevertheless, Woodward, Inc., Badger Meter, Inc. and Thermon Group Holdings, Inc. are likely to gain from thrust on digitized technologies, greater emphasis on energy efficiency, focus on cost reduction, adoption of industrial automation and optimum resource utilization.
Industry Description
The Zacks Instruments – Control industry comprises manufacturers of precision and specialty motion control components and systems used in a wide range of industries. These companies deliver sophisticated flow measurement, control and communication solutions for air, water and other forms of gas and liquid used for commercial and residential purposes. The companies offer an array of products for fuel, combustion, fluid, actuation, electronic applications, energy control and optimization, particularly for the process industry.
Some industry players offer heating, ventilation and air conditioning products. These include water heaters and electric heating systems for under-floor radiant applications for boiler manufacturers and alternative energy control packages. Few firms provide water reuse products, consisting of drainage and rainwater harvesting solutions.
What's Shaping the Future of Instruments - Control Industry
Industrial Automation Thrust: Greater focus on increased adoption of automation across all industry verticals and higher investments in new technologies are expected to drive growth over the next few years. North America is expected to continue dominating the market in terms of adopting automation. Rising infrastructural investments in the energy and power sector, increasing demand for organic food and nutritional beverages and favorable government policies are aiding the growth.
The pharmaceutical industry's process automation and instrumentation market are also growing due to low-cost factors and an evolving regulatory environment. Focus on high-quality equipment indicates progressive buyer maturity and willingness to partner with process control industry players.
Strained Margins: Material cost inflation, resulting from constant inflationary pressures, has affected margins. Transportation costs are also on the rise. Moreover, high raw material prices due to inflation, the Israel-Hamas conflict, the prolonged Russia-Ukraine war and the consequent economic sanctions against the Putin regime have affected the production schedules of various firms.
While the companies are focused on improving their operating performance, the inability to obtain adequate supplies of raw materials and product parts at favorable prices is likely to hurt their businesses. With firms being unable to pass on the entire increase in raw material prices to customers due to stiff competition, profitability is mostly on the wane.
The companies primarily operate in markets that are susceptible to high competitive pressures and are under constant threat by low-cost suppliers, primarily based in China. Due to an international footprint, these firms are further exposed to foreign exchange fluctuations that affect their cash flows. Changes in competitive conditions, including the availability of the latest products and services, the introduction of new distribution channels and changes in OEM pricing, are likely to hamper operations and affect sales.
Digitized Technologies Gaining Precedence: The industry’s growth is largely driven by an emphasis on digitized technologies in manufacturing activities, such as the Industrial Internet of Things. The demand for process automation, instrumentation products, safety automation systems and multivariable pressure transmitters for the fast-track manufacturing process is likely to fuel long-term growth opportunities.
The use of process instrumentation equipment offers a host of benefits, including improvement in the quality of the product and emission reduction. So, the rapid adoption of technology across various industries and growing regulation and compliance requirements will continue to be major growth drivers.
In addition, field instruments play a significant role in process control by measuring the key elements such as temperature, pressure, flow and level in process industries such as chemicals, mining and pharmaceuticals. These include transmitters that primarily measure the pressure, flow, temperature, level and humidity of liquids and gases, which are essential for achieving optimum productivity. A differentiated product offering gives greater opportunities for companies to strengthen their market position.
Zacks Industry Rank Indicates Bullish Trends
The Zacks Instruments – Control industry is housed within the broader Zacks Computer and Technology sector. It currently has a Zacks Industry Rank #10, which places it in the top 4% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few instruments control 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 S&P 500, Lags Sector
The Zacks Instruments – Control industry has outperformed the S&P 500 composite in the past year but lagged the broader Zacks Computer and Technology sector.
The industry has soared 16.6% compared with the S&P 500 and sector’s growth of 15.1% and 35.5%, respectively.
Industry's Current Valuation
The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is commonly used for valuing instruments control stocks. The industry has a trailing 12-month EV/EBITDA of 13.19X compared with the S&P 500’s 13.29X. It is above the sector’s trailing 12-month EV/EBITDA of 12.60X.
Over the past five years, the industry has traded as high as 17.78X, as low as 6.83X, with a median of 12.41X.
3 Instruments Control Stocks to Watch Out
Woodward: Headquartered in Fort Collins, CO, Woodward is an independent designer, manufacturer and service provider of energy control and optimization solutions. The company provides a wide array of products for fuel, combustion, fluid, actuation and electronic applications, which serve the commercial aerospace, business jet, military and energy markets. Woodward plans to shift some of the machine components to its own factories/capable third-party suppliers to reduce cost and lead time.
The company also plans to invest about $10 million to create machine centers that are expected to solve the problem of component shortage. The stock has gained 32.1% in the past year and has a VGM Score of A. It has a long-term earnings growth expectation of 15.2% and delivered an earnings surprise of 14.7%, on average, in the trailing four quarters. The stock has gained 47.6% in the past year.
The Zacks Consensus Estimate for current-year and next-year earnings has been revised 16.6% and 37.8% upward, respectively, over the past year. Woodward carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Badger Meter: Headquartered in Milwaukee, WI, Badger Meter provides flow measurement, control and communications solutions, serving water and gas utilities, municipalities and industrial customers worldwide. The company’s products measure water, oil, chemicals and other fluids, and are known for accuracy, long-lasting durability and for providing valuable and timely measurement data.
With its industry-leading ORION Cellular endpoints, along with communication and software technologies, Badger Meter is focused on creating robust digital solutions to operationalize real-time data into actionable insights. Its BEACON software-as-a-service offering facilitates the collection and analysis of data within the distribution network to improve operational awareness.
The Zacks Consensus Estimate for current-year and next-year earnings for this Zacks Rank #1 stock has been revised 19.5% and 22.3% upward, respectively, over the past year. The stock has gained 34% in the past year. It has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 10.3%, on average, in the trailing four quarters.
Thermon: Headquartered in Austin, TX, Thermon provides engineered industrial process heating solutions for process industries worldwide. Its products include air heaters, boilers, controlling and monitoring solutions, heat tracing systems, tank heating systems, thermostats, tubing bundles, enclosure and explosion-proof gas catalytic heaters, gas-fired blowers and gas heating accessories that comprise regulators, valves, mounting brackets and battery cables.
The buyout of Powerblanket has augmented Thermon's exposure to growing industrial and commercial end markets through its freeze protection, temperature control and flow assurance solutions. It has also enabled the company to expand into adjacent product lines and increase access to diversified end markets.
The Zacks Consensus Estimate for current-year and next-year earnings has been revised 25.2% and 78.2% upward, respectively, over the past year. This Zacks Rank #1 stock has gained 54.6% in the past year. It delivered an earnings surprise of 34%, on average, in the trailing four quarters.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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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
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
Thermon Group Holdings, Inc. (THR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and 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, Woodward, Inc., Badger Meter, Inc. and Thermon Group Holdings, Inc. are likely to gain from thrust on digitized technologies, greater emphasis on energy efficiency, focus on cost reduction, adoption of industrial automation and optimum resource utilization. Moreover, high raw material prices due to inflation, the Israel-Hamas conflict, the prolonged Russia-Ukraine war and the consequent economic sanctions against the Putin regime have affected the production schedules of various firms. The company provides a wide array of products for fuel, combustion, fluid, actuation and electronic applications, which serve the commercial aerospace, business jet, military and energy markets.
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Nevertheless, Woodward, Inc., Badger Meter, Inc. and Thermon Group Holdings, Inc. are likely to gain from thrust on digitized technologies, greater emphasis on energy efficiency, focus on cost reduction, adoption of industrial automation and optimum resource utilization. Badger Meter: Headquartered in Milwaukee, WI, Badger Meter provides flow measurement, control and communications solutions, serving water and gas utilities, municipalities and industrial customers worldwide. Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report Thermon Group Holdings, Inc. (THR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Industry: Instruments - Control Link: https://www.zacks.com/commentary/2193488/3-instruments-stocks-to-ride-on-energy-efficiency-focus The Zacks Instruments – Control industry is poised to benefit from the surging demand for state-of-the-art technology for replacing legacy industrial control systems with automated products. What's Shaping the Future of Instruments - Control Industry Industrial Automation Thrust: Greater focus on increased adoption of automation across all industry verticals and higher investments in new technologies are expected to drive growth over the next few years. Zacks Industry Rank Indicates Bullish Trends The Zacks Instruments – Control industry is housed within the broader Zacks Computer and Technology sector.
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The Zacks Consensus Estimate for current-year and next-year earnings for this Zacks Rank #1 stock has been revised 19.5% and 22.3% upward, respectively, over the past year. This Zacks Rank #1 stock has gained 54.6% 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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Zacks.com featured highlights Abercrombie & Fitch, Amphastar and NetEase
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-abercrombie-fitch-amphastar-and-netease
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For Immediate Release
Chicago, IL – December 6, 2023 – Stocks in this week’s article are Abercrombie & Fitch ANF, Amphastar Pharmaceuticals AMPH and NetEase NTES.
3 Best Momentum Stocks to Buy Using Driehaus Strategy
The Driehaus strategy can be applied to choose the best momentum stocks. The Driehaus strategy applies the “buy high and sell higher" theory, which is undoubtedly a successful investment approach that helped Richard Driehaus earn a place in Barron’s All-Century Team.
To that end, stocks like Abercrombie & Fitch, Amphastar Pharmaceuticals and NetEase have been selected as the momentum picks for the day using the Driehaus strategy.
A Detailed Look Into the Driehaus Strategy
Regarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the percentage 50-day moving average as one of the key criteria before creating a portfolio following Driehaus’ philosophy.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.
Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.
Here are three of the seven stocks:
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids. It has a Momentum Score of A. The trailing four-quarter earnings surprise for ANF is 713%, on average.
Amphastar Pharmaceuticals is a specialty pharmaceutical company. It has a Momentum Score of B. The trailing four-quarter earnings surprise for AMPH is 52.1%, on average.
NetEase is an Internet technology company. It has a Momentum Score of A. The trailing four-quarter earnings surprise for NTES is 16.6%, on average.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2193348/3-best-momentum-stocks-to-buy-using-the-driehaus-strategy
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
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
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Amphastar Pharmaceuticals, Inc. (AMPH) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – December 6, 2023 – Stocks in this week’s article are Abercrombie & Fitch ANF, Amphastar Pharmaceuticals AMPH and NetEase NTES. To that end, stocks like Abercrombie & Fitch, Amphastar Pharmaceuticals and NetEase have been selected as the momentum picks for the day using the Driehaus strategy. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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For Immediate Release Chicago, IL – December 6, 2023 – Stocks in this week’s article are Abercrombie & Fitch ANF, Amphastar Pharmaceuticals AMPH and NetEase NTES. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Amphastar Pharmaceuticals, Inc. (AMPH) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report To read this article on Zacks.com click here.
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3 Best Momentum Stocks to Buy Using Driehaus Strategy The Driehaus strategy can be applied to choose the best momentum stocks. A Detailed Look Into the Driehaus Strategy Regarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the percentage 50-day moving average as one of the key criteria before creating a portfolio following Driehaus’ philosophy. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Amphastar Pharmaceuticals, Inc. (AMPH) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report To read this article on Zacks.com click here.
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To that end, stocks like Abercrombie & Fitch, Amphastar Pharmaceuticals and NetEase have been selected as the momentum picks for the day using the Driehaus strategy. Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance. 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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TIM Issues Update On Talks With KKR Regarding Sparkle - Quick Facts
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DCOMP
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https://www.nasdaq.com/articles/tim-issues-update-on-talks-with-kkr-regarding-sparkle-quick-facts
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(RTTNews) - TIM said Optics Bidco, a unit of Kohlberg Kravis Roberts & Co. L.P. or KKR, confirmed its interest in the continuation of the talks for the purchase of Sparkle. In order to have all the necessary information to submit a final offer, Optics Bidco has requested to be allowed to deepen the due diligence activities until the end of January 2024, TIM stated.
TIM said the request from Optics Bidco will be submitted to the Board of Directors' meeting scheduled for 14 December.
The views and 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) - TIM said Optics Bidco, a unit of Kohlberg Kravis Roberts & Co. L.P. or KKR, confirmed its interest in the continuation of the talks for the purchase of Sparkle. In order to have all the necessary information to submit a final offer, Optics Bidco has requested to be allowed to deepen the due diligence activities until the end of January 2024, TIM stated. TIM said the request from Optics Bidco will be submitted to the Board of Directors' meeting scheduled for 14 December.
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(RTTNews) - TIM said Optics Bidco, a unit of Kohlberg Kravis Roberts & Co. L.P. or KKR, confirmed its interest in the continuation of the talks for the purchase of Sparkle. In order to have all the necessary information to submit a final offer, Optics Bidco has requested to be allowed to deepen the due diligence activities until the end of January 2024, TIM stated. TIM said the request from Optics Bidco will be submitted to the Board of Directors' meeting scheduled for 14 December.
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(RTTNews) - TIM said Optics Bidco, a unit of Kohlberg Kravis Roberts & Co. L.P. or KKR, confirmed its interest in the continuation of the talks for the purchase of Sparkle. In order to have all the necessary information to submit a final offer, Optics Bidco has requested to be allowed to deepen the due diligence activities until the end of January 2024, TIM stated. The views and 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) - TIM said Optics Bidco, a unit of Kohlberg Kravis Roberts & Co. L.P. or KKR, confirmed its interest in the continuation of the talks for the purchase of Sparkle. In order to have all the necessary information to submit a final offer, Optics Bidco has requested to be allowed to deepen the due diligence activities until the end of January 2024, TIM stated. TIM said the request from Optics Bidco will be submitted to the Board of Directors' meeting scheduled for 14 December.
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2023-12-06 00:00:00 UTC
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Zacks.com featured highlights JAKKS Pacific, Modine, Barrett Business Services and RCM Technologies
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DCOMP
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-jakks-pacific-modine-barrett-business-services-and-rcm
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For Immediate Release
Chicago, IL – December 6, 2023 – Stocks in this week’s article are JAKKS Pacific, Inc. JAKK, Modine Manufacturing Co. MOD, Barrett Business Services, Inc. BBSI and RCM Technologies, Inc. RCMT.
Grab These 4 Solid Net Profit Stocks for Strong Returns
Investors eye businesses that generate profits on a regular basis. In order to gauge the extent of profits, there is no better metric than net profit margin.
A higher net margin underlines a company’s efficiency in translating sales into actual profits. Moreover, this metric lends insight into how well a company is run and the headwinds weighing on it. JAKKS Pacific, Inc., Modine Manufacturing Co., Barrett Business Services, Inc. and RCM Technologies, Inc. boast solid net profit margins.
Net Profit Margin = Net profit/Sales * 100.
In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses. In fact, the net profit margin can turn out to be a potent point of reference to gauge the strength of a company’s operations and its cost-control measures.
Also, higher net profit is essential for rewarding stakeholders. Further, strength in the metric attracts investors and draws well-skilled employees, who eventually enhance business value.
Moreover, a higher net profit margin compared with its peers provides the company with a competitive edge.
Pros and Cons
Net profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.
However, net profit margin as an investment criterion has its share of pitfalls. The metric varies widely from industry to industry. While net income is a key metric for investment measurement in traditional industries, it is not that important for technology companies.
In addition, the difference in accounting treatment of various items — especially non-cash expenses like depreciation and stock-based compensation — makes comparison a daunting task.
Furthermore, for companies preferring to grow with debt instead of equity funding, higher interest expenses usually weigh on net profit. In such cases, the measure is rendered ineffective while analyzing a company’s performance.
The Winning Strategy
A healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.
Apart from these, we have added a few criteria to ensure maximum returns from this strategy.
Here we discuss our four picks from the 37 stocks that qualified the screen.
JAKKS Pacific is a multi-brand company that has been designing and marketing a broad range of toys and consumer products since 1995. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for JAKKS’s 2023 earnings has been revised upward by 37.9% to $5.17 per share in the past 30 days. JAKK surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 61.8%.
Modine Manufacturing operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. These include heat exchangers for cooling all types of engines, transmissions, auxiliary hydraulic equipment, air conditioning components used in cars, trucks, farm and construction machinery and equipment, and heating and cooling equipment for residential and commercial building heating, ventilating, air conditioning and refrigeration equipment. The stock flaunts a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate of $3.04 per share for Modine Manufacturing’s fiscal 2024 earnings has moved 16 cents north in the past 30 days. MOD surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 47%.
Barrett Business provides light industrial, clerical and technical employees to a wide range of businesses through staff leasing, contract staffing, site management and temporary staffing arrangements. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for Barrett Business’ 2023 earnings has been revised upward by 32 cents to $7.10 per share in the past 30 days. BBSI surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 74%.
RCM Technologies is a national provider of business, technology and resource solutions in information technology and professional engineering to customers in corporate and government sectors. The stock flaunts a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for RCM Technologies’ 2023 earnings has been revised upward by 20 cents to $2.00 per share in the past 30 days. RCMT surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 13.3%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2193366/grab-these-4-solid-net-profit-margin-stocks-for-strong-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
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
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JAKKS Pacific, Inc., Modine Manufacturing Co., Barrett Business Services, Inc. and RCM Technologies, Inc. boast solid net profit margins. Pros and Cons Net profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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For Immediate Release Chicago, IL – December 6, 2023 – Stocks in this week’s article are JAKKS Pacific, Inc. JAKK, Modine Manufacturing Co. MOD, Barrett Business Services, Inc. BBSI and RCM Technologies, Inc. RCMT. JAKKS Pacific, Inc., Modine Manufacturing Co., Barrett Business Services, Inc. and RCM Technologies, Inc. boast solid net profit margins. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report Modine Manufacturing Company (MOD) : Free Stock Analysis Report RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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See Stocks Free >> Follow us on Twitter: https://www.twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report Modine Manufacturing Company (MOD) : Free Stock Analysis Report RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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JAKKS Pacific, Inc., Modine Manufacturing Co., Barrett Business Services, Inc. and RCM Technologies, Inc. boast solid net profit margins. Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714890.0
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2023-12-06 00:00:00 UTC
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Iron ore rises on upbeat economic data, easing intervention concerns
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https://www.nasdaq.com/articles/iron-ore-rises-on-upbeat-economic-data-easing-intervention-concerns
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Dalian and SGX iron ore up
Steelmaking ingredients rise
Updates with closing prices
SINGAPORE, Dec 6 (Reuters) - Dalian iron ore futures rose on Wednesday, buoyed by positive economic data and persistently strong demand and as concerns over China's supervision of the markets to ensure price stability began to fade.
The most-traded January iron ore on China's Dalian Commodity Exchange (DCE) DCIOcv1 closed up 1.9% at 980 yuan ($136.92) per metric ton.
On the Singapore Exchange, the benchmark January iron ore SZZFF4 was up 2% at $129.05 a metric ton by 0730 GMT.
State-backed DCE on Nov. 30 said it will enhance supervision of the iron ore market for safe and stable market operation. This came after an announcement on Nov. 24 that China will reinforce oversight and curb a price rally.
However, the influence of market supervision is now waning despite its initial effectiveness at price control, with analysts noting a diminishing impact as market participants increasingly overlook its significance.
Meanwhile, confidence has been creeping back into the market amid efforts to boost China's troubled property sector.
China's iron ore imports have also been relatively robust so far in 2023.
Declines in Chinese exports likely slowed in November, a Reuters poll showed on Wednesday, amid mixed signs that factories in the world's second-largest economy may be finding their footing after a bruising slump in demand.
Rio Tinto RIO.AX, RIO.L on Wednesday brought forward the start of production at its Simandou iron ore project in Guinea to 2025 from 2026, which will add around 5% to global seaborne supply when it comes on line.
Steel benchmarks on the Shanghai Futures Exchange were mixed. The most-active rebar contract SRBcv1 was up 1.1%, hot-rolled coil SHHCcv1 grew 1.3%, and wire rod SWRcv1 increased by 1.5%. Meanwhile, stainless steel SHSScv1 decreased 0.2%.
Other steelmaking ingredients Dalian coking coal DJMcv1 and coke DCJcv1 inched up 1.6% and 1.4%, respectively.
The market awaits a batch of Chinese import and export data due this Thursday for directions.
($1 = 7.1577 yuan)
(Reporting by Ashley Fang; Editing by Mrigank Dhaniwala and Varun H K)
((ashley.fang@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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Dalian and SGX iron ore up Steelmaking ingredients rise Updates with closing prices SINGAPORE, Dec 6 (Reuters) - Dalian iron ore futures rose on Wednesday, buoyed by positive economic data and persistently strong demand and as concerns over China's supervision of the markets to ensure price stability began to fade. Declines in Chinese exports likely slowed in November, a Reuters poll showed on Wednesday, amid mixed signs that factories in the world's second-largest economy may be finding their footing after a bruising slump in demand. Rio Tinto RIO.AX, RIO.L on Wednesday brought forward the start of production at its Simandou iron ore project in Guinea to 2025 from 2026, which will add around 5% to global seaborne supply when it comes on line.
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Dalian and SGX iron ore up Steelmaking ingredients rise Updates with closing prices SINGAPORE, Dec 6 (Reuters) - Dalian iron ore futures rose on Wednesday, buoyed by positive economic data and persistently strong demand and as concerns over China's supervision of the markets to ensure price stability began to fade. The most-traded January iron ore on China's Dalian Commodity Exchange (DCE) DCIOcv1 closed up 1.9% at 980 yuan ($136.92) per metric ton. On the Singapore Exchange, the benchmark January iron ore SZZFF4 was up 2% at $129.05 a metric ton by 0730 GMT.
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Dalian and SGX iron ore up Steelmaking ingredients rise Updates with closing prices SINGAPORE, Dec 6 (Reuters) - Dalian iron ore futures rose on Wednesday, buoyed by positive economic data and persistently strong demand and as concerns over China's supervision of the markets to ensure price stability began to fade. The most-traded January iron ore on China's Dalian Commodity Exchange (DCE) DCIOcv1 closed up 1.9% at 980 yuan ($136.92) per metric ton. State-backed DCE on Nov. 30 said it will enhance supervision of the iron ore market for safe and stable market operation.
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Dalian and SGX iron ore up Steelmaking ingredients rise Updates with closing prices SINGAPORE, Dec 6 (Reuters) - Dalian iron ore futures rose on Wednesday, buoyed by positive economic data and persistently strong demand and as concerns over China's supervision of the markets to ensure price stability began to fade. The most-traded January iron ore on China's Dalian Commodity Exchange (DCE) DCIOcv1 closed up 1.9% at 980 yuan ($136.92) per metric ton. State-backed DCE on Nov. 30 said it will enhance supervision of the iron ore market for safe and stable market operation.
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714891.0
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2023-12-06 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Aflac and Brown & Brown
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-aflac-and-brown-brown
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For Immediate Release
Chicago, IL – December 6, 2023 – Today, Zacks Investment Ideas feature highlights Aflac AFL and Brown & Brown BRO.
2 Insurance Stocks Poised for New Highs in December
With insurance coverage and services being somewhat vital in today’s society, Aflac and Brown & Brown are two insurance stocks that are worthy of investors' consideration.
After hitting 52-week highs last week both stocks looked poised to keep rising in correlation with the trend of positive earnings estimate revisions.
Recent Performance Overview
Voluntary supplemental and life insurance behemoth Aflac has seen its stock rise +15% for the year while Brown & Brown shares have soared +30% YTD with the company also providing a variety of insurance products including commercial packages, group medical, and workers' compensation.
Their strong price performances could continue with Aflac’s Zacks Insurance-Accident and Health Industry currently in the top 18% of over 250 Zacks industries while Brown & Brown’s Zacks Insurance-Brokerage Industry is in the top 4%.
Attractive EPS Growth
Benefitting from the essentiality and strengthening outlook of their business industries, Aflac and Brown & Brown are experiencing stellar EPS growth this year.
Aflac’s fiscal 2023 earnings are now expected to be up 18% to $6.30 per share compared to $5.33 a share last year. Fiscal 2024 earnings are projected to slightly edge up to $6.33 per share and this would represent 27% EPS growth over the last five years with earnings at $4.96 a share in 2020.
Turning to Brown & Brown, annual earnings are forecasted to climb 21% this year to $2.76 per share versus $2.28 a share in 2022. Plus, FY24 earnings are projected to jump another 9% to $3.02 per share and this would be an 80% increase over the last five years with 2020 earnings at $1.67 a share.
Reasonable P/E Valuations
In regards to their P/E valuations, Aflac trades at a very reasonable 13.1X forward earnings multiple and near the Zacks Insurance-Accident and Health Industry’s 11.1X. Furthermore, Aflac is one of the leaders in its space and trades at an attractive discount to the S&P 500’s 21.3X.
While Brown & Brown trades above the benchmark at 26.9X forward earnings, this is not a stretched premium considering the company’s expansive bottom line as it is also near its own industry average of 22.7X.
Bottom Line
Over the last 60 days, annual earnings estimates have continued to rise for both Aflac’s and Brown & Brown’s fiscal 2023 and FY24. In correlation with such they share the commonality of a Zacks Rank #2 (Buy). The trend of positive earnings estimate revisions is also supportive of their reasonable P/E valuations and as these two insurance companies benefit from strong business industries their stocks may be in store for higher highs in December.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After hitting 52-week highs last week both stocks looked poised to keep rising in correlation with the trend of positive earnings estimate revisions. The trend of positive earnings estimate revisions is also supportive of their reasonable P/E valuations and as these two insurance companies benefit from strong business industries their stocks may be in store for higher highs in December. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Their strong price performances could continue with Aflac’s Zacks Insurance-Accident and Health Industry currently in the top 18% of over 250 Zacks industries while Brown & Brown’s Zacks Insurance-Brokerage Industry is in the top 4%. Bottom Line Over the last 60 days, annual earnings estimates have continued to rise for both Aflac’s and Brown & Brown’s fiscal 2023 and FY24. Click to get this free report Aflac Incorporated (AFL) : Free Stock Analysis Report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Recent Performance Overview Voluntary supplemental and life insurance behemoth Aflac has seen its stock rise +15% for the year while Brown & Brown shares have soared +30% YTD with the company also providing a variety of insurance products including commercial packages, group medical, and workers' compensation. Their strong price performances could continue with Aflac’s Zacks Insurance-Accident and Health Industry currently in the top 18% of over 250 Zacks industries while Brown & Brown’s Zacks Insurance-Brokerage Industry is in the top 4%. Click to get this free report Aflac Incorporated (AFL) : Free Stock Analysis Report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Their strong price performances could continue with Aflac’s Zacks Insurance-Accident and Health Industry currently in the top 18% of over 250 Zacks industries while Brown & Brown’s Zacks Insurance-Brokerage Industry is in the top 4%. Bottom Line Over the last 60 days, annual earnings estimates have continued to rise for both Aflac’s and Brown & Brown’s fiscal 2023 and FY24. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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714892.0
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2023-12-06 00:00:00 UTC
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Is It too Late to Buy AMD Stock?
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-amd-stock-10
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Chip stocks captivated Wall Street this year as the artificial intelligence (AI) market has exploded. Demand for high-powered hardware has skyrocketed as more companies pivot their businesses to developing the sector. Chipmakers like Advanced Micro Devices (NASDAQ: AMD) and Nvidia are well positioned to profit substantially from AI over the long term, with bullish investors sending their stocks soaring 87% and 220%, respectively, since Jan. 1.
Nvidia has taken center stage in AI since the start of 2023, getting a head start over its competitors and snapping up a majority-market share. However, AMD has looked like an attractive alternative to invest in the booming industry, with potentially more room for growth ahead of it.
So, is it too late to invest in AMD stock? Let's find out.
The most expensive stock in AI
AMD's stock has risen high this year based on its prospects in artificial intelligence. However, earnings have yet to match its valuation.
In 2022, macroeconomic headwinds caused reduced spending in the PC market and led to steep declines in AMD's chip sales. The market has improved this year, but the company still faced residual challenges.
In the third quarter of 2023, data-center revenue fell 1% year over year, while its gaming segment tumbled 8%. Comparatively, the same quarter saw Nvidia's data-center and gaming revenue climb 279% and 81%, respectively.
Data by YCharts.
AMD's rapid stock rise and dismal earnings have made it one of the most expensive stocks in AI right now. The chart above compares the price-to-earnings ratios and price-to-free cash flows of some of the biggest names in tech and AI, with AMD shares losing out on both fronts. The figures show that AMD's stock offers the least value out of these companies.
The tech giant likely has much to offer over the long term, but it might be best to look at other investment options until its share price comes down to a more attractive price point.
Can investors expect much growth from AMD stock?
AMD has made investors bullish this year as it moved to challenge Nvidia's AI dominance in 2024.
In June, the company unveiled the newest addition to its MI300 lineup of chips with what it calls its most powerful graphics processing unit (GPU) ever, the MI300X. Anticipation for the chip has grown since Microsoft announced last month that Azure would become the first cloud service to begin using the GPU. The MI300X will begin shipping next year and could shake up the AI chip market if it can offer a competitive price-to-performance ratio.
Moreover, purchases of AI start-ups Nod.ai and Mipsology this year provided more proof of AMD's significant potential in the market as it expands its technology and resources. These acquisitions could help the company create GPU software that allows developers to get the most out of its chips.
AMD likely has much to gain from AI over the next decade. However, the company's high valuation indicates much of its projected financial growth is already priced into its shares.
For reference, Nvidia has experienced a similar issue. The chipmaker delivered stellar Q3 2024 (ended October 2023) results, with revenue jumping 206% year over year and operating income up over 1,600%. However, Nvidia's stock has actually dipped 7% since its earnings release.
Nvidia's business has exploded alongside soaring AI chip sales, but stockholders seem unwilling to invest further until it can match its current valuation.
Heading into 2024, AMD has a lot to live up to. Its stock price is sky-high, with investors betting on the success of its new AI chips.
Judging by how high Nvidia sales have soared this year, AMD could enjoy significant boosts to revenue. However, it is unlikely to positively affect the company's stock price.
As a result, it's too late to invest in AMD's stock this year, but it remains a company worth keeping on your radar to strike when the time is right.
10 stocks we like better than Advanced Micro Devices
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 Advanced Micro Devices 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 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chipmakers like Advanced Micro Devices (NASDAQ: AMD) and Nvidia are well positioned to profit substantially from AI over the long term, with bullish investors sending their stocks soaring 87% and 220%, respectively, since Jan. 1. The chart above compares the price-to-earnings ratios and price-to-free cash flows of some of the biggest names in tech and AI, with AMD shares losing out on both fronts. Moreover, purchases of AI start-ups Nod.ai and Mipsology this year provided more proof of AMD's significant potential in the market as it expands its technology and resources.
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Chipmakers like Advanced Micro Devices (NASDAQ: AMD) and Nvidia are well positioned to profit substantially from AI over the long term, with bullish investors sending their stocks soaring 87% and 220%, respectively, since Jan. 1. Nvidia's business has exploded alongside soaring AI chip sales, but stockholders seem unwilling to invest further until it can match its current valuation. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia.
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Chipmakers like Advanced Micro Devices (NASDAQ: AMD) and Nvidia are well positioned to profit substantially from AI over the long term, with bullish investors sending their stocks soaring 87% and 220%, respectively, since Jan. 1. The most expensive stock in AI AMD's stock has risen high this year based on its prospects in artificial intelligence. AMD's rapid stock rise and dismal earnings have made it one of the most expensive stocks in AI right now.
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The tech giant likely has much to offer over the long term, but it might be best to look at other investment options until its share price comes down to a more attractive price point. Judging by how high Nvidia sales have soared this year, AMD could enjoy significant boosts to revenue. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia.
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2023-12-06 00:00:00 UTC
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1 FAANG Stock to Buy Hand Over Fist in December and 1 to Avoid Like the Plague
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https://www.nasdaq.com/articles/1-faang-stock-to-buy-hand-over-fist-in-december-and-1-to-avoid-like-the-plague
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For the better part of the past four years, Wall Street and investors have been taken on a roller-coaster ride. All three major stock indexes have oscillated between bear and bull markets in successive years, beginning in 2020.
When the going gets tough on Wall Street, the recipe for investors over the past decade has been to turn their attention to the FAANG stocks.
Image source: Getty Images.
When I say "FAANG," I'm talking about:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META).
Amazon (NASDAQ: AMZN).
Apple (NASDAQ: AAPL).
Netflix (NASDAQ: NFLX).
Google, is which now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG).
Investors flock to the FAANG stocks during periods of heightened volatility for two reasons. To start with, these are industry leaders with sustained, competitive advantages.
Meta Platforms closed out the third quarter drawing nearly 4 billion monthly active users (MAUs) with its top-notch social media "real estate."
Amazon is the world's leading online marketplace and is also the global No. 1 in cloud-infrastructure service spending via Amazon Web Services (AWS).
Apple's iPhone consistently accounts for more than half of U.S. domestic-smartphone share, and its capital-return program is second to none.
Netflix is the domestic and international market-share leader when it comes to streaming services.
Alphabet's Google is a virtual monopoly in global-internet search, with a nearly 92% share in October 2023. It's also behind Google Cloud, the world's No. 3 cloud-infrastructure service provider.
The other reason investors gravitate to the FAANG stocks during periods of instability is their historic outperformance of the broader market.
META data by YCharts.
Whereas the benchmark S&P 500 has delivered an admirable 149% return over the trailing-10-year period, the worst-performing FAANG is Alphabet's Class A shares (GOOGL), which are higher by "only" 373%. On the other end of the spectrum, Apple, the world's largest publicly traded company by market cap, has sextupled the return of the S&P 500 over the trailing 10 years.
But as the famous investment saying goes, "past performance is no guarantee of future results."
While one high-flying FAANG stock stands out as a plain-as-day bargain in December, another perennial outperformer is rife with red flags.
The FAANG stock to buy hand over fist in December: Meta Platforms
Among the five accomplished businesses listed above, the one that's the best value of all is social media company Meta Platforms.
Before diving into the catalysts that can push Meta's market cap even higher, let's first examine the two headwinds that could weigh on its share price.
The biggest ongoing concern for Meta is the company's operating losses tied to its augmented- and virtual-reality segment Reality Labs. This pet project of CEO Mark Zuckerberg has lost nearly $11.5 billion through the first nine months of 2023, which is a little over $2 billion more than in the comparable period last year.
The other source of skepticism is the health of the U.S. economy. Even though U.S. gross domestic product is moving higher, and the unemployment rate is historically low, a basket of predictive indicators and money-based metrics signal trouble ahead. Meta generates over 98% of its net sales from advertising, and advertisers aren't shy about paring back their spending at the first sign of trouble for the U.S. economy. In other words, economic turbulence has the potential to hit Meta harder than the other FAANG stocks.
However, the economic cycle is a two-sided coin, and it's far from proportionate. Whereas nine out of 12 U.S. recessions since the end of World War II have ended in less than a year, most periods of expansion have lasted for multiple years, if not a full decade. These long-winded periods of expansion allow Meta to command exceptional pricing power for ad placement.
Something else that helps Meta succeed is its aforementioned "top-notch social media real estate." Collectively, Facebook, WhatsApp, Instagram, and Facebook Messenger are among the four most downloaded apps globally, and they attracted 3.96 billion MAUs during Q3. Furthermore, Threads reached 100 million users faster than any other social media app (five days) following its July launch.
Despite growing operating losses from Reality Labs, Meta has the ability to more than offset these losses with bountiful profits from its advertising operations. Meta has generated $51.7 billion in net cash from its operating activities through the first nine months of the current year, and it closed out September with more than $61 billion in cash, cash equivalents, and marketable securities. Meta's balance sheet and operating performance make it one of the few companies that has the luxury to take big risks. By the second half of the decade, Reality Labs could have Meta positioned to be a leading on-ramp to the metaverse.
As promised, Meta is also historically inexpensive. Even after more than tripling from its 2022 bear-market low, Meta is currently valued at less than 11 times forward-year cash flow, and its earnings per share (EPS) are forecast to nearly triple between 2022 and 2026. For context, Meta has traded at an average of almost 16 times year-end cash flow over the previous five years.
Image source: Apple.
The FAANG stock to avoid like the plague in December: Apple
Unfortunately, not every FAANG stock is worth buying at the moment. The one FAANG to consider avoiding like the plague in December is none other than the largest publicly traded company in the U.S. -- Apple.
Let me be clear that I'm not taking anything away from what Apple has accomplished in becoming the largest domestic public company. There's no denying that the iPhone is a juggernaut.
Likewise, CEO Tim Cook deserves credit for his leadership over the past 12 years. He's successfully overseeing the evolution of Apple from a physical products-focused company to one that'll rely on subscription services as its long-term foundation. Subscriptions tend to generate highly predictable sales and operating cash flow, which should help smooth out the revenue lumpiness that can occur during major iPhone upgrade cycles (e.g., moving from 4G LTE to 5G capability).
I'll also add that Apple is one of the most recognized and trusted brands in the world. Few companies command customer loyalty quite like it.
However, past performance is no guarantee of future results. Though Apple has a mammoth share-repurchase program in place, its operating performance has left a lot to be desired.
In Apple's fiscal 2023, which came to a close on Sept. 30, all of the company's physical products endured a sales decline. The company's iPhone sales dropped by $4.9 billion to $200.6 billion, while Mac sales plunged by more than a quarter from the prior-year period to $29.4 billion. The return to the office following the worst of the COVID-19 pandemic looks to be behind weaker Mac demand.
What makes this sales slump even more egregious is that it occurred with an above-average inflation rate. Even with a strong brand name and pricing power as tailwinds, Apple's net sales declined by $11 billion (2.8%) to $383.3 billion in fiscal 2023.
Earnings growth has stalled as well. Thanks to share repurchases, Apple was able to eke out an adjusted $0.02 per-share year-over-year improvement. But based solely on net income, Apple reported a $2.8 billion year-over-year decline in fiscal 2023.
Even with iPhone 15 expected to lift Apple's operating performance in fiscal 2024, shares of the company are currently trading at a historically high 27 times forward-year earnings. While this aggressive valuation could potentially be defended with a double-digit growth rate, Apple's growth engine has stalled.
The final issue is that rapidly rising interest rates -- the federal funds rate has jumped by 525 basis points since March 2022 -- have removed Apple's access to cheap capital. Though it's generating plenty of cash organically, Apple hasn't been shy about borrowing at historically low lending rates to fuel its aggressive share-repurchase program. A higher interest-rate environment may lead to fewer buybacks and weaker EPS growth for Apple.
10 stocks we like better than Meta Platforms
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 Meta Platforms 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 November 29, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Netflix. 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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Even though U.S. gross domestic product is moving higher, and the unemployment rate is historically low, a basket of predictive indicators and money-based metrics signal trouble ahead. Subscriptions tend to generate highly predictable sales and operating cash flow, which should help smooth out the revenue lumpiness that can occur during major iPhone upgrade cycles (e.g., moving from 4G LTE to 5G capability). Though it's generating plenty of cash organically, Apple hasn't been shy about borrowing at historically low lending rates to fuel its aggressive share-repurchase program.
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Meta Platforms closed out the third quarter drawing nearly 4 billion monthly active users (MAUs) with its top-notch social media "real estate." Even with iPhone 15 expected to lift Apple's operating performance in fiscal 2024, shares of the company are currently trading at a historically high 27 times forward-year earnings. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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The FAANG stock to buy hand over fist in December: Meta Platforms Among the five accomplished businesses listed above, the one that's the best value of all is social media company Meta Platforms. Meta has generated $51.7 billion in net cash from its operating activities through the first nine months of the current year, and it closed out September with more than $61 billion in cash, cash equivalents, and marketable securities. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Netflix.
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When I say "FAANG," I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META). The FAANG stock to buy hand over fist in December: Meta Platforms Among the five accomplished businesses listed above, the one that's the best value of all is social media company Meta Platforms. Even with iPhone 15 expected to lift Apple's operating performance in fiscal 2024, shares of the company are currently trading at a historically high 27 times forward-year earnings.
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2023-12-06 00:00:00 UTC
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Why NextEra Energy and NextEra Energy Partners Are Both Charging Higher Today
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https://www.nasdaq.com/articles/why-nextera-energy-and-nextera-energy-partners-are-both-charging-higher-today
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NextEra Energy Partners (NYSE: NEP) is closing in on the funding needed to refinance its debt due early next year, and markets are applauding the added certainty. Shares of NextEra Energy Partners were up 5% as of 11 a.m. ET, and shares of parent NextEra Energy (NYSE: NEE) were up nearly 3%, on the deal and positive commentary from one Wall Street analyst.
2024 comes into focus
It has been a tough year for holders of NextEra Energy Partners. The company, a master limited partnership (MLP), or yieldco, is highly reliant on debt to fund its business model. Higher rates have eaten into profitability, causing a midyear profit warning that caused the stock to fall about 75% from its all-time highs and down 60% in 2023.
NextEra Energy, its electric utility parent, has done better but is also down about 30% for the year. One of the key questions lingering over NextEra Energy Partners is whether its dividend is sustainable as some of its loans come up for refinancing.
On Tuesday, NEP priced a private offering of $750 million in unsecured notes at 7.25%. The net proceeds will be used to repay 4.25% senior notes due in July and September 2024 as well as borrowings outstanding under NextEra Energy Partners' revolving credit facility. The borrowing rate is a bit higher than what Wall Street had expected, but the markets appear to be cheering the added clarity about how NEP will deal with its debt.
Both companies also got a positive mention from Guggenheim. The investment bank raised its price target on NextEra Energy to $70 from $65 and reiterated its buy rating, saying the company's Florida utility remains "an underappreciated growth vehicle." The bank lowered its price target on NEP to $37, from $42, but kept a buy rating on the shares.
Down big in 2023, are NextEra Energy and NEP buys?
These two companies have similar names and a shared heritage, but investors should consider them separately. Of the two, NextEra Energy appears the safer bet thanks to its regulated utility business and its significant portfolio of renewable energy assets. NextEra Energy could require some patience, but investors buying in today are likely to be glad they did in the years to come.
NextEra Energy Partners is a bit more of a wild card. Its current 13% dividend yield looks enticing, but the yield is high in part because Wall Street is betting the current dividend is unsustainable. Management is trying to prove naysayers wrong, but investors seeking income should be aware that even after the private offering of notes, NEP still has a rocky path ahead.
NextEra Energy has a relatively modest yield by comparison, paying just 3% right now. But given its better risk profile, it is the better stock to buy right now for those looking to add to their energy exposure.
10 stocks we like better than NextEra Energy
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*Stock Advisor returns as of December 4, 2023
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. 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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NextEra Energy Partners (NYSE: NEP) is closing in on the funding needed to refinance its debt due early next year, and markets are applauding the added certainty. The net proceeds will be used to repay 4.25% senior notes due in July and September 2024 as well as borrowings outstanding under NextEra Energy Partners' revolving credit facility. The investment bank raised its price target on NextEra Energy to $70 from $65 and reiterated its buy rating, saying the company's Florida utility remains "an underappreciated growth vehicle."
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NextEra Energy Partners (NYSE: NEP) is closing in on the funding needed to refinance its debt due early next year, and markets are applauding the added certainty. ET, and shares of parent NextEra Energy (NYSE: NEE) were up nearly 3%, on the deal and positive commentary from one Wall Street analyst. Its current 13% dividend yield looks enticing, but the yield is high in part because Wall Street is betting the current dividend is unsustainable.
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NextEra Energy Partners (NYSE: NEP) is closing in on the funding needed to refinance its debt due early next year, and markets are applauding the added certainty. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them!
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Shares of NextEra Energy Partners were up 5% as of 11 a.m. ET, and shares of parent NextEra Energy (NYSE: NEE) were up nearly 3%, on the deal and positive commentary from one Wall Street analyst. That's right -- they think these 10 stocks are even better buys.
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2023-12-06 00:00:00 UTC
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Verizon Bundles Netflix and Max in Latest Effort to Stem Wireless Subscriber Losses
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Of the three major U.S. wireless providers, Verizon (NYSE: VZ) has been having the most trouble winning and keeping customers. Verizon has reported a net loss of wireless retail postpaid phone subscribers in six of the past seven quarters.
Rival AT&T's (NYSE: T) postpaid phone net adds have slowed down this year, but the company is still reliably adding a few hundred thousand net new subscribers each quarter. T-Mobile (NASDAQ: TMUS) has been doing even better, gaining new subscribers at an impressive clip.
Verizon launched a new set of wireless plans earlier this year collectively called myPlan. The idea was to offer subscribers their choices from a menu of $10 monthly add-ons to the core wireless plans. In theory, the more add-ons a subscriber chooses, the less likely that subscriber will be to switch away from Verizon.
Bundling Netflix and Max
So far, the add-on options have been somewhat limited. The Disney bundle, which includes ad-supported versions of Disney+, Hulu, and ESPN+, is the most notable option. Others include a slightly discounted subscription to Walmart's Walmart+ service and add-ons featuring various Apple services.
On Monday, Verizon announced that it was adding another streaming option to the mix. Its new $10 add-on, which includes ad-supported versions of both Netflix (NASDAQ: NFLX) and Warner Bros. Discovery's (NASDAQ: WBD) Max streaming service, will be available on Dec. 7. The price represents a discount of about 40% compared to subscribing to both services independently.
In contrast to Verizon's strategy, T-Mobile bundles Netflix with its two priciest wireless plans without any additional fees. AT&T doesn't bundle streaming services with its wireless plans, but it does offer discounted bundles for those who opt for both its wireless and fiber home internet services.
Comparing wireless plans can be tricky, but one problem Verizon has is that its plans tend to be more expensive than those of competitors. This premium pricing strategy isn't really working anymore. Verizon's Ultimate plan goes for $55 per line with 4 lines before any add-ons. T-Mobile's Go5G Plus plan is $50 per line with 3 lines, and includes Netflix. AT&T's Unlimited Premium plan is $50 per line with 4 lines without any streaming services bundled.
Someone who already subscribes to multiple streaming services could potentially save money by switching to Verizon and taking advantage of both streaming add-ons, but ultimately, the savings aren't very meaningful. A few dollars a month may not be enough to compel many people to switch wireless providers.
Generating cash
While Verizon is struggling to grow its subscriber count, the company is still generating plenty of cash. Through the first nine months of 2023, it grew its free-cash-flow generation by more than $2 billion to $14.6 billion. For the full year, the company expects free cash flow to top $18 billion.
Verizon's ability to extract cash from its massive subscriber base is a positive, but its inability to prevent that subscriber base from slowly eroding is one reason to be skeptical of it as an investment. Verizon stock looks cheap, trading for about 9 times free-cash-flow guidance. But AT&T stock is even cheaper, and it's not having the same problems with subscriber losses.
Verizon's bundling strategy could start to work as its slate of optional add-ons grows. Bundling together Netflix and Max at a significant discount could be an attractive proposition, particularly for consumers tired of managing too many subscriptions. But the price to access that discount is paying for one of Verizon's expensive wireless plans. For many smartphone users, the add-ons may not be compelling enough to offset its premium pricing.
10 stocks we like better than Verizon Communications
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*Stock Advisor returns as of December 4, 2023
Timothy Green has positions in AT&T, Walt Disney, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Apple, Netflix, Walmart, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends T-Mobile US and Verizon Communications. 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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Verizon has reported a net loss of wireless retail postpaid phone subscribers in six of the past seven quarters. In contrast to Verizon's strategy, T-Mobile bundles Netflix with its two priciest wireless plans without any additional fees. Bundling together Netflix and Max at a significant discount could be an attractive proposition, particularly for consumers tired of managing too many subscriptions.
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In contrast to Verizon's strategy, T-Mobile bundles Netflix with its two priciest wireless plans without any additional fees. AT&T doesn't bundle streaming services with its wireless plans, but it does offer discounted bundles for those who opt for both its wireless and fiber home internet services. The Motley Fool has positions in and recommends Apple, Netflix, Walmart, Walt Disney, and Warner Bros.
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In contrast to Verizon's strategy, T-Mobile bundles Netflix with its two priciest wireless plans without any additional fees. AT&T doesn't bundle streaming services with its wireless plans, but it does offer discounted bundles for those who opt for both its wireless and fiber home internet services. Someone who already subscribes to multiple streaming services could potentially save money by switching to Verizon and taking advantage of both streaming add-ons, but ultimately, the savings aren't very meaningful.
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Discovery's (NASDAQ: WBD) Max streaming service, will be available on Dec. 7. AT&T doesn't bundle streaming services with its wireless plans, but it does offer discounted bundles for those who opt for both its wireless and fiber home internet services. The Motley Fool recommends T-Mobile US and Verizon Communications.
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2023-12-06 00:00:00 UTC
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Why Is OPKO Health (OPK) Up 18.7% Since Last Earnings Report?
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https://www.nasdaq.com/articles/why-is-opko-health-opk-up-18.7-since-last-earnings-report
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A month has gone by since the last earnings report for OPKO Health (OPK). Shares have added about 18.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is OPKO Health due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
OPKO Health Q3 Earnings Lag Estimates, Revenues Top
OPKO Health delivered a loss per share of 11 cents in the third quarter of 2023, flat compared with the year-ago period’s loss per share. However, the figure was wider than the Zacks Consensus Estimate of a loss of 9 cents per share.
Revenues in Detail
OPKO Health registered revenues of $178.6 million in the third quarter, down 0.6% year over year. The figure, however, surpassed the Zacks Consensus Estimate by 2.1%.
Lower revenues from services dragged the overall top line.
Segmental Revenues
OPKO Health manages its operations through two reportable segments – Diagnostics and Pharmaceuticals.
Within the Diagnostics arm, revenues from services amounted to $131.7 million in the reported quarter, down 7.8% year over year, primarily due to lower COVID-19 testing volume and reimbursement. Clinical test reimbursement also decreased due to the mix of testing ordered, partially offset by an increase in clinical test volume.
Within the Pharmaceuticals arm, revenues from products rose 25.6% to $40.7 million, primarily on the back of higher sales in OPKO Health’s international operating companies and increased revenues from Rayaldee sales.
Revenues from sales of Rayaldee in the third quarter of 2023 were $7.3 million, up 5.8% from the prior-year period.
Revenues from the transfer of intellectual property and other totaled $6.2 million, up 37.8% from the prior-year period.
Margin Analysis
In the quarter under review, OPKO Health’s gross profit rose 52.4% to $47.7 million. The gross margin expanded by a huge 929 basis points to 26.7%.
Selling, general and administrative expenses fell 9.3% to $72.3 million. R&D expenses climbed 3.2% year over year to $19.4 million. Adjusted operating expenses of $91.7 million decreased 6.9% year over year.
Adjusted operating loss totaled $44 million compared with the prior-year quarter’s adjusted operating loss of $67.2 million.
Financial Position
OPKO Health exited third-quarter 2023 with cash and cash equivalents of $138.6 million compared with $108.1 million at the second-quarter end.
Cumulative net cash provided by operating activities at the end of third-quarter 2023 was $10.1 million against cumulative net cash used in operating activities of $63.6 million a year ago.
Guidance
OPKO Health has provided its financial outlook for the fourth quarter of 2023.
For the fourth quarter, it expects total revenues between $170 million and $180 million. The Zacks Consensus Estimate currently stands at $191.3 million.
OPKO Health expects its revenues from services to lie between $126 million and $132 million and revenues from product sales to be in the range of $33 million-$36 million. Other revenues are expected to be between $8 million and $12 million, inclusive of the estimated Pfizer gross profit share of $8 million to $10 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -28.57% due to these changes.
VGM Scores
At this time, OPKO Health has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, OPKO Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
OPKO Health belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Penumbra (PEN), has gained 12.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Penumbra reported revenues of $270.95 million in the last reported quarter, representing a year-over-year change of +26.8%. EPS of $0.67 for the same period compares with $0.01 a year ago.
Penumbra is expected to post earnings of $0.71 per share for the current quarter, representing a year-over-year change of +343.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Penumbra. Also, the stock has a VGM Score of B.
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
OPKO Health, Inc. (OPK) : Free Stock Analysis Report
Penumbra, Inc. (PEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is OPKO Health due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. 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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Within the Diagnostics arm, revenues from services amounted to $131.7 million in the reported quarter, down 7.8% year over year, primarily due to lower COVID-19 testing volume and reimbursement. Cumulative net cash provided by operating activities at the end of third-quarter 2023 was $10.1 million against cumulative net cash used in operating activities of $63.6 million a year ago. Click to get this free report OPKO Health, Inc. (OPK) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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OPKO Health Q3 Earnings Lag Estimates, Revenues Top OPKO Health delivered a loss per share of 11 cents in the third quarter of 2023, flat compared with the year-ago period’s loss per share. OPKO Health expects its revenues from services to lie between $126 million and $132 million and revenues from product sales to be in the range of $33 million-$36 million. Other revenues are expected to be between $8 million and $12 million, inclusive of the estimated Pfizer gross profit share of $8 million to $10 million.
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A month has gone by since the last earnings report for OPKO Health (OPK). Within the Diagnostics arm, revenues from services amounted to $131.7 million in the reported quarter, down 7.8% year over year, primarily due to lower COVID-19 testing volume and reimbursement. Other revenues are expected to be between $8 million and $12 million, inclusive of the estimated Pfizer gross profit share of $8 million to $10 million.
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2023-12-06 00:00:00 UTC
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Vornado (VNO) Cuts Dividend by 20%, to Pay One Dividend in 2024
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Vornado Realty Trust VNO recently announced that its board of trustees has declared a dividend of 30 cents per common share for the fourth quarter of 2023, marking a reduction of 20% from 37.50 cents paid out in the first quarter of 2023.
The dividend will be paid out on Dec 27, 2023, to shareholders on record as of Dec 15. The aggregate dividend for 2023 is 67.50 cents per share.
Solid dividend payouts remain the biggest attraction for REIT investors. However, in April 2023, the company postponed the dividend payment until the end of 2023, projecting reduced taxable income for this year, mainly due to higher interest expenses.
Before this, in January 2023, VNO had announced a 29.2% cut in its quarterly cash dividend from 53 cents per share to 37.50 cents per share.
For 2024, Vornado anticipates paying a single common share dividend in the fourth quarter of the following year as part of its common share dividend policy for the year.
The United States office real estate market has remained choppy for almost the entirety of 2023, with negative absorption and increasing vacancy levels. The lackluster environment can be attributed to the continuation of work-from-home, flexible or hybrid work setups, which have diminished office space utilization.
Although the demand for premier office spaces remains healthy and continues to aid leasing activity at the company’s properties, which have a significant presence in New York City, persistent macroeconomic uncertainty has led to an overall slowdown in leasing activity.
This has most likely curbed the company’s potential to reach its full leasing capacity over the past few quarters, stalling its growth temp to a certain extent. In the third quarter of 2023, occupancy in the New York portfolio was 89.9%, down 40 basis points year over year.
In addition, with prevailing high-interest rates, Vornado’s interest expenses have gone up significantly. In the third quarter of 2023, interest and debt expense rose 14.8% year over year, hurting the company’s funds from operations (FFO) per share growth. The company may also find it difficult to purchase or develop real estate with borrowed funds in a high-interest rate environment as the costs are likely to be on the higher side.
Therefore, it becomes imperative for Vornado to focus on maintaining its retained cash flow at desirable levels and preserve balance sheet strength.
As of Sep 30, 2023, the company had $3.2 billion of liquidity, consisting of $1.3 billion of cash and cash equivalents and restricted cash and $ 1.9 billion available under its $2.5-billion revolving credit facilities.
Analysts seem bearish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for Vornado’s 2023 FFO does not indicate a favorable outlook as it has been revised 1.1% downward over the past month.
Its shares have gained 24.6% in the quarter-to-date period compared with its industry’s 11.9% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK. While PK sports a Zacks Rank #1 (Strong Buy), EGP and STAG carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EastGroup Properties’ 2023 FFO per share has moved marginally upward in the past month to $7.70.
The consensus estimate for Stag Industrial’s ongoing year’s FFO per share has been raised 1.3% over the past two months to $2.28.
The consensus estimate for Park Hotels & Resorts’ current-year FFO per share has moved 1.5% northward over the past month to $1.98.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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
Vornado Realty Trust (VNO) : Free Stock Analysis Report
Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
EastGroup Properties, Inc. (EGP) : 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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However, in April 2023, the company postponed the dividend payment until the end of 2023, projecting reduced taxable income for this year, mainly due to higher interest expenses. The United States office real estate market has remained choppy for almost the entirety of 2023, with negative absorption and increasing vacancy levels. The company may also find it difficult to purchase or develop real estate with borrowed funds in a high-interest rate environment as the costs are likely to be on the higher side.
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Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks from the REIT sector are EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK. The consensus estimate for Park Hotels & Resorts’ current-year FFO per share has moved 1.5% northward over the past month to $1.98. Click to get this free report Vornado Realty Trust (VNO) : Free Stock Analysis Report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : 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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For 2024, Vornado anticipates paying a single common share dividend in the fourth quarter of the following year as part of its common share dividend policy for the year. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks from the REIT sector are EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK. Click to get this free report Vornado Realty Trust (VNO) : Free Stock Analysis Report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : 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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In the third quarter of 2023, interest and debt expense rose 14.8% year over year, hurting the company’s funds from operations (FFO) per share growth. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks from the REIT sector are EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK. 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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AeroVironment (AVAV) Q2 2024 Earnings Call Transcript
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https://www.nasdaq.com/articles/aerovironment-avav-q2-2024-earnings-call-transcript
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Image source: The Motley Fool.
AeroVironment (NASDAQ: AVAV)
Q2 2024 Earnings Call
Dec 05, 2023, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day and thank you for standing by. Welcome to AeroVironment's fiscal year 2024 second quarter conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.
[Operator instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jonah Teeter-Balin. Please go ahead, sir.
Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations
Thanks and good afternoon, ladies and gentlemen. Welcome to AeroVironment's fiscal year 2024 second quarterearnings call This is Jonah Teeter-Balin, senior director of corporate development and investor relations. Before we begin, please note that certain information presented on this call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve many risks and uncertainties that could cause actual results to differ materially from our expectations. Further information on these risks and uncertainties is contained in the company's 10-K and other filings with the SEC, in particular, in the risk factors and forward-looking statements portions of such filings. Copies are available from the SEC, on the AeroVironment website at www.avinc.com, or from our investor relations team. This afternoon, we also filed a slide presentation with our earnings release and posted the presentation to the investors section of our website under events and presentations.
10 stocks we like better than AeroVironment
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They just revealed what they believe are the ten best stocks for investors to buy right now... and AeroVironment wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
The content of this conference call contains time-sensitive information that is accurate only as of today, December 5, 2023. The company undertakes no obligation to make any revision to any forward-looking statements contained in our remarks today or to update them to reflect events or circumstances occurring after this conference call. Joining me today from AeroVironment are chairman, president, and chief executive officer, Mr. Wahid Nawabi; and senior vice president and chief financial officer, Mr.
Kevin McDonnell. We will now begin with remarks from Wahid Nawabi. Wahid.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Thank you, Jonah. Welcome, everyone, to our fiscal year 2024 second quarterearnings conference call I'll start by summarizing our performance and recent achievements. After which, Kevin will review our financial results in detail.
I will then provide information about our outlook, including our increased revenue projections for the remainder of fiscal year 2024. Kevin, Jonah, and I will then take your questions. I'm pleased to report that our second quarter results once again exceeded expectations, and we remain on track for our best year ever. Our key messages, which are also included on Slide Number 3 of our earnings presentation, are as follows.
First, second quarter revenue rose to $180.8 million, up 62% year over year, representing a record Q2 for AeroVironment. We also posted very strong bottom-line results, powered by record demand, strong operating execution, and effective supply chain management. Second, we have a healthy backlog of $487 million, which is higher than the start of our fiscal year and provides solid visibility for the quarters ahead. Third, on our last call, we announced our intention to acquire privately held Tomahawk Robotics, which we successfully completed in September.
As I will review in a moment, we are well on our way to fully integrate the two businesses while leveraging our combined technology across our portfolio. And fourth, we are updating guidance, including an increase to our revenue target, reflecting our strong performance and the impact from the Tomahawk acquisition. Overall, we're very pleased with our performance through the first half of this fiscal year, which included significant top-line revenue acceleration and record EBITDA. We remain optimistic about our future, exemplified by higher growth, improving operating results, and enhanced value creation for our shareholders.
As we said last quarter, this reflects not only near-term demand dynamics related to global conflicts, but also a long-term shift in military strategy to the more frequent use of intelligent, multidomain unmanned systems, which are easy to use, highly effective, and provide a compelling value proposition. Our differentiated portfolio offers the greatest breadth and depth of unmanned solutions to meet the growing demands of our country and allies. We are an industry leader in contested environment, as well as AI-enabled autonomous operations, and governments are -- around the globe are witnessing these unmatched capabilities effectively perform on real and highly contested battlefields. As a testament to the incredible effectiveness of our innovative solutions, we now have nine different unmanned platforms deployed in Ukraine, all receiving high levels of praise.
We could not be prouder and more honored of how our solutions and team members are helping our customers successfully achieve their vital missions. We're also pleased with our progress on fully integrating Tomahawk Robotics into our existing business. As a reminder, Tomahawk, now part of our unmanned systems segment, is a leader in AI-enabled robotic common control systems and open standard communications. As a company, we are increasing interconnectivity and interoperability across our portfolio, making it easier for our customers to successfully manage their growing fleet of unmanned systems.
We have already received positive feedback from our customers and intend to leverage this combination to better support their current and future missions. We now offer an unmatched capability to integrate unmanned platforms across multiple domains while providing a common operating picture for the warfighter. For all the reasons just mentioned, we remain confident in our ability to deliver strong value to our stakeholders in fiscal year 2024. We expect that our cutting-edge solutions will be at the forefront of government decision-making for years to come.
Now, let me provide an update on current developments within our segments. Starting with our unmanned systems segment, revenue more than doubled year over year. Shipments during the quarter continued to reflect strong demand across nearly all our product lines, with significant growth in our Puma and JUMP 20 systems. We have nearly completed delivering all the Puma LE and Puma 3 AE systems, which were part of last year's large Ukraine FMS order.
We have received additional follow-on orders for Ukraine, which we expect to fulfill later this fiscal year. A portion of these new orders for Ukraine are direct commercial sales to the government of Ukraine. This is another testament to the battle-proven and industry-leading capabilities of our Puma system. We also began delivering the initial batch of JUMP 20 systems to Ukraine as part of our previously announced $42 million award under the Ukraine Security Assistance Initiative.
We remain confident that the JUMP 20 system is also the most capable solution in its class and expect additional shipments to Ukraine in the third and fourth quarters. Additionally, it is important to highlight two recent successful tests of the JUMP 20. First, we successfully demonstrated a fully autonomous flight at the U.S. Navy's Hybrid Fleet Campaign in Key West, Florida.
During the exercise, we showcased the JUMP 20's ability to launch and recover from a vessel moving more than 20 knots without user intervention. Second, our team supported the U.S. Army and several allies at their Arcane Thunder exercise in Poland. This event, held in September, utilized several of our systems as part of a demonstration of the Army's modernization initiative.
The customer response to the JUMP 20 has been very positive, and we plan to continue investing in this platform to meet our customers' future needs. In summary, segment growth this quarter was due to record deliveries overseas and the demand for our system is expanding. There are multiple potential orders in the pipeline, which are not yet reflected in our backlog. The global trends we discussed previously, plus our healthy pipeline of opportunities, provide even more reason to be optimistic about our unmanned systems segment for the remainder of fiscal year 2024 and beyond.
Moving to our loitering munitions segment. As anticipated, this quarter's revenue was approximately flat year over year. Our shipments are meeting expectations, and we continue to build inventory in anticipation of the numerous opportunities and our growing pipeline. Namely, we're expanding sales to allied countries across the globe, continuing shipments to Ukraine, backfilling U.S.
stockpiles, and pursuing future DOD programs of record. We're actively in negotiations with the U.S. government to secure a large, multiyear, sole source IDIQ contract for our loitering munitions products, which will meet the substantial U.S. DOD and international allies' demands.
There's also proposed legislation in Congress to continue supporting Ukraine, Israel, and Taiwan, which includes additional funding for Switchblade. We continue to make progress with new international customers. We're currently engaged with more than 20 countries who wish to receive Switchblades, and about a third of those cases are actively in the U.S. DOD's export approval process.
At the same time, we have responded to multiple U.S. DOD customer RFPs for multiyear programs of record acquisitions this past quarter. These include the U.S. Marine Corps solicitation for its Organic Precision Fires, or OPF program; and the U.S.
Army's Low Altitude Stalking and Strike Ordnance, or LASSO program. The U.S. Army recently stated that AeroVironment will receive a sole source contract to provide 100 Switchblade 600s for LASSO Increment 1 for testing and fielding. We're optimistic about the future of this program due to the incredible real-world performance of our Switchblades and our significant high-volume manufacturing capacity.
We're also working on integrating Switchblades onto other vehicle platforms such as Abrams tanks, Humvees, the next-generation Optionally Manned Fighting Vehicles, and on helicopters through the Long Range Precision Munition program. To summarize, the LMS pipeline is robust, with many opportunities not yet reflected in our backlog, and we remain optimistic about the future growth potential of this business. We expect the LMS segment to be a stronger contributor of revenue growth in the second half of this fiscal year. Moving to our MacCready Works segment.
Quarterly revenue was also roughly in line with last fiscal year as this segment continues to focus on developing key technologies and incubating future solutions. Our HAPS team continues to make progress on the development of a full-scale next-generation Sunglider while also working with the U.S. DOD on defense missions. We expect to benefit from additional funding, perhaps, in the government fiscal year 2024 budget, which is awaiting approval by Congress.
In addition, we continue to see strong engagement in developing novel next-generation defense solutions. Last quarter, we spoke about DARPA's ANCILLARY program, where we have now been awarded a small contract for phase 1 of its development. We're also progressing on a jointly funded program under development by the U.S. Army's Combat Capabilities Development Command, or DEVCOM, in Natick, Massachusetts called the Squad Operations Advanced Resupply or SOAR.
This large autonomous unmanned aircraft system will provide long-range precision delivery within contested environments. Flight testing of the first system is currently underway, and we expect phase 3 development to be funded by the government fiscal year 2024 budget as well. As you can see, we have many exciting and innovative development projects in our MacCready Works pipeline and remain excited about the potential to develop new capabilities, which could lead to new lines of business from this segment. With that, I would like to now turn the call over to Kevin McDonnell for a review of the quarterly financials.
Kevin.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Thank you, Wahid. Today, I'll be reviewing the highlights of our second quarter performance, during which, I will occasionally refer to both our press release and earnings presentation available on our website. Overall, we had another outstanding financial quarter as the second quarter finished strong in terms of revenue, adjusted gross margins, adjusted EBITDA, and backlog. As Wahid mentioned in his remarks, revenue for the second quarter of fiscal 2024 was $180.8 million, an increase of 62% as compared to the $111.6 million for the second quarter of fiscal 2023.
Slide 5 of the earnings presentation provides a breakdown of revenue by segment for the quarter. Our largest segment during the quarter was unmanned systems, UMS, which is a combination of our small UAS, medium UAS, UGV, and recently added Tomahawk businesses. UMS had revenue of 132.8 million in the quarter, which is up 115% from last year's 61.6 million, driven primarily by strong international demand for our Puma systems. As Wahid mentioned, we began -- we also began shipments of the JUMP 20 product to Ukraine during the quarter, which contributed to the revenue growth.
Loitering munitions systems, or LMS, recorded revenue of 30.2 million, a 3% decrease as compared to the 31.1 million last year during Q2. The Switchblade 600 product was a primary driver of revenue during the quarter. And at the same time, we are beginning to ramp up the production of the Switchblade 300 Block 20 product, which was introduced earlier this year. Revenue from our MacCready Works segment came in at 17.8 million, a decrease of 6% as compared to the 18.8 million from the second quarter of last fiscal year.
We continue to see strong demand for machine learning and autonomy capabilities with various agencies of the U.S. DOD and U.S. government agencies, which was offset by lower SoftBank-funded HAPS revenue. In Slide 5 of the earnings presentation, there's a breakdown between product and service revenue.
Specifically during the second quarter, product revenue accounted for 81% of total revenues, a notable increase from the 56% in the corresponding quarter of the previous year, due to strong product revenue from small UAS and, to a lesser extent, from lower COCO service operations. For the remainder of fiscal 2024, although we expect product revenue to be close to 80% of total revenue, we also expect the LMS revenue to increase as a percentage of product revenue. LMS revenues have lower gross margins relative to small UAS products, so expect a shift to reduced product gross margins. Speaking of gross margins, Slide 6 of the earnings presentation shows the trend of adjusted product and service gross margins, while Slide 12 reconciles the GAAP gross margins to adjusted gross margins, which excludes intangible amortization expense and other noncash purchase accounting items.
In the second quarter, consolidated GAAP gross margins finished at 42%, up from 23% in the previous year. The improvement in GAAP gross margins was largely a result of improved product service mix and strong product gross margins from international small UAS. Second quarter adjusted gross margins reached 43%, marking a substantial increase from the 27% recorded in the same period last year. This improvement was driven by the same factors as for the GAAP gross margins.
Adjusted product gross margins for the quarter were 47%, versus 38% in the second quarter of last fiscal year, due to the high mix of international revenue from our small UAS products during the quarter. In terms of adjusted service gross margins, the second quarter was at 28%, versus 12% in the same quarter last year. Last year, we had accelerated depreciation on a portion of our assets, which negatively impacted our service gross margins. We expect fiscal year 2024 adjusted gross margins to end up in the high 30s to low 40s following the anticipated increase in loitering munitions systems revenue in the second half of the fiscal year, both in terms of dollars and percentage of total revenues.
In terms of adjusted EBITDA, Slide 18 -- Slide 13 of our earnings presentation shows the reconciliation of the GAAP net income to adjusted EBITDA. In the second quarter of fiscal 2024, adjusted EBITDA was $40 million, representing an increase of $33 million as compared to the $7 million from the second quarter of last fiscal year. The main factors contributing to this increase were higher revenue and favorable revenue mix, which was partially offset by incremental SG&A expenses and investments in R&D. SG&A expense, excluding intangible amortization and acquisition-related expense, for the second quarter was $26 million, or 14% of revenue, compared to $19 million, or 17% of revenue in the prior year.
While R&D expense increased year over year in terms of -- in dollar terms, R&D expense as a percentage of revenue was 12%, versus 15% in the corresponding quarter of last year. We expect R&D to continue to run closer to 12% for the full year as we continue to invest in new products and upgrade existing products to meet the evolving needs of our customers. This also includes internal funding of our HAPS solar aircraft. Now, turning to GAAP earnings.
In the second quarter, the company generated a net income of $17.8 million, versus a net loss of $6.7 million recorded in the same period last year. The increase in net income of 24.5 million can be attributed to several factors, namely a $49.5 million increase in gross margin, driven by a rise in sales volume and improvements in revenue mix; and two -- and a $2.9 million decrease to intangible amortization and other acquisition-related expenses, were partially offset by a $11.6 million increase in taxes, a $6.7 million increase in SG&A expense, a $5.4 million increase in R&D spending, and a $3.8 million increase in unrealized losses in equity-related investments. Slide 10 shows the reconciliation of GAAP and adjusted or non-GAAP diluted EPS. The company posted adjusted earnings per share of -- diluted per share of $0.97 for the second quarter of fiscal 2024, versus a $0.01 per diluted share for the second quarter of fiscal 2023.
Turning to our balance sheet. Total cash and investments at the end of the quarter was 121.5 million, which is a decrease of 6.9 million from the second quarter of fiscal 2023. During the quarter, we reduced our term debt by $50 million to $80 million. Inventories increased 6 million during the second quarter of fiscal 2024, primarily driven by the Tomahawk acquisition.
Inventories remain at these higher levels as we prepare for shipments in coming quarters and carry extra inventory as a result of supply chain risk minimization. We continue to have a strong balance sheet with over $100 million of cash and investments and approximately $100 million available under our working capital facility. I'd like to conclude with some highlights of our backlog metrics. Slide 8 of the earnings presentation provides a summary of our current fiscal 2024 visibility.
As Wahid mentioned, our funded backlog at the end of the second quarter of fiscal 2024 finished at $487 million. Visibility to the midpoint of a revised FY '24 revenue guidance range is 98%. Now, I'd like to turn things back to Wahid.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Thanks, Kevin. Given our strong quarter performance and the addition of Tomahawk Robotics, we have revised our guidance and increased revenue outlook for fiscal year 2024 as follows. We anticipate revenues of $685 million to $705 million, net income guidance of $45 million to $51 million, or $1.66 to $1.90 per diluted share. This decrease reflects Tomahawk acquisition-related expenses.
Non-GAAP adjusted EBITDA of $119 million to $127 million and non-GAAP earnings of $2.46 to $2.70 per diluted share. We expect an evenly distributed second half revenue split between each of the remaining two quarters of this fiscal year. Based on our record first half performance and a strong backlog, we now have almost full visibility to the midpoint of our revised revenue guidance. And as expected, gross margin for the second half of this fiscal year is anticipated to be lower than first half, primarily due to product mix.
Lastly, while the situation in Washington has led to slower decision-making, we know our solutions are crucial to our customers in the U.S. and around the world. While operating under a continuing resolution slows down new program starts, we remain optimistic that budget priorities will be resolved and that our programs will eventually get funded. We hope that our supporters on both sides of the aisle can achieve consensus in the very near future.
We are very pleased with our position midway through the fiscal year as we continue to meet the needs of our growing customers. The trends we see now represent an inflection point in our growth, which should drive greater demand beyond our current fiscal year. As I've stated in the past, our nation and allies are realizing the immense value proposition of our distributed autonomous unmanned solutions enabled by AI. We expect strong growth, even when the active conflicts wind down, as there will be still an underlying need for deterrence, with many new programs supporting further adoption of our innovative and battle-tested solutions.
We continue to lead the industry in contested environment operations, autonomous missions, and true loitering munitions capability. AeroVironment solutions can identify threats, track them in real time, and neutralize them with maximum effectiveness while minimizing collateral damage. We will continue to invest in our innovative solutions to ensure they meet our customers' exacting standards and perform, when needed, in real-world environments. Now, let me once again summarize the key points from today's call.
First, we delivered record second quarter results, exceeding expectations, and raised our revenue outlook for fiscal year 2024. Second, our backlog remains strong, reflecting global demand for our innovative and combat-proven solutions. Third, we successfully completed the Tomahawk Robotics acquisition and are on track for onboarding this business into our unmanned systems segment. And fourth, the outlook for AeroVironment solutions continues to improve due to the strength of our product lines and accelerating global demand.
We're well prepared to execute in the second half of this fiscal year and now expect further double-digit top-line growth in fiscal year 2025. Before turning the call over to questions, we're excited to welcome retired General Joseph Votel to our board of directors. General Votel brings extensive knowledge of today's military operations and strategy, especially with Joint Special Operations Command, or JSOC, and Central Command, or CENTCOM. His guidance will be instrumental in helping AV meet the current and future needs of our country and allies abroad.
And finally, thank you to our investors for their unwavering support of our mission, and thank you to our customers for putting their faith in AeroVironment. Our success is due to the talent of our team, who go above and beyond to continuously improve our products, strive for new innovative solutions, effectively manage the company's supply chain, and meet our customers' needs in a timely and expeditious manner. We are honored to support our country and allies at this critical time, and we expect further success during the remainder of fiscal year 2024 and beyond. And with that, Kevin, Jonah, and I will now take your questions.
Questions & Answers:
Operator
Certainly. [Operator instructions] And our first question comes from the line of Greg Konrad from Jefferies. Your question, please.
Greg Konrad -- Jefferies -- Analyst
Good evening and great quarter.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Thank you, Greg.
Greg Konrad -- Jefferies -- Analyst
Maybe just to start and might have missed it, but did you give any color around the contribution from Tomahawk in the revised guidance, or how do we think about the higher guidance from core versus the Tomahawk contribution?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
So, Greg, Tomahawk Robotics is now part of -- is a product line within our unmanned systems segment. And as you know, we don't break down the details of each of our product lines because we have several of them. However, what I can say is that in terms of our guidance, the increased revenue top-line guidance is attributed to both organic demand and growth in our business, as well as the -- a portion of it is related to the acquisition of Tomahawk. We believe that both of these two are fairly equally represented in terms of the demand for the second half of this year.
We see strong growth and -- across our product lines and our core businesses, as well as the addition of Tomahawk. So, we're very excited about both.
Greg Konrad -- Jefferies -- Analyst
And then maybe just for the second one, staying on Tomahawk, you mentioned integration. Can you maybe provide road map and kind of timing and major milestones when you think about that integration and maybe potential revenue synergies and how you're thinking about timing and magnitude of some of those events?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Of course. For sure. So, the feedback so far from our customers, which is the most important thing for me, in particular, has been extremely positive about the acquisition and the synergies that we're going to be able to deliver in terms of improving our customers' experiences in the common operating picture for the warfighter. In terms of integration, we have a very detailed multiphase integration plan.
We're on track or ahead of our schedule. They are now already integrated with our business in terms of being part of our unmanned systems segment. We have actually expanded the role and responsibility of the two co-founders of Tomahawk Robotics. They're now general managers of our larger businesses within AeroVironment.
They're very excited about the prospects of the future. In terms of the road maps, we're already working on some of those. We're very excited. And in fact, we're more bullish now than we were even before that there's tremendous synergies between our capabilities and our products and technologies.
Namely, in the foreseeable future, we're going to be able to integrate pretty much all of our products, our unmanned ground vehicles, our unmanned UAVs, air vehicles, all with the Tomahawk Robotics common controller, as well as would allow us to actually integrate other third-party platforms into this effort. Now, that effort is a multiyear effort because there are lots and lots of demand for integration from external customers, even in partners, but also in our side, there's significant opportunities for integrate. The last thing I want to mention is that their location in southern -- in Florida, in eastern Florida, actually, is very positive for us, too. They've got a tremendous team.
We're very excited and encouraged by their talent, both engineering and business, and we're going to actually start to scale our resources in terms of headcount, even at their facilities. So, it actually gives us a better footprint in the East Coast, where most of our customers are, as well as allow us to hire and grow our talent as our growth desires or requires it.
Greg Konrad -- Jefferies -- Analyst
Thank you.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
You're welcome, Greg.
Operator
Thank you. One moment for our next question. And our next question comes from the line of Peter Arment from Baird. Your question, please.
Peter Arment -- Baird -- Analyst
Yeah. Good afternoon, Wahid, Kevin, and Jonah. Nice results.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Good afternoon, Peter.
Peter Arment -- Baird -- Analyst
Hey. Wahid, could you give us the latest kind of status update on the Switchblade 600? I know there's been some recent articles out there about some of the Eastern European countries looking to, you know, start to take delivery of that product. Where are we in terms of the potential production for the Switchblade 600?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Sure. So, I'm glad to report that we've had many -- several of the U.S. government and U.S. DOD's leadership, as well as congressional leaders, visit us in the last couple of weeks related to our Switchblade production.
We have a significant amount of production capacity, which we've invested in. We were very fortunate. And that's a major plus because we can deliver Switchblade by the thousands now, and we can deliver them at U.S. DOD program of record quality and caliber and maturity.
Secondly, there are several, about 20 different countries, that we're engaged in in terms of their interest in acquiring Switchblade or wanting to receive Switchblade. About a third of those cases are already in active Department of State and Department of Defense export approval process. So, I expect in the next six months or so that this process will go faster than before because the demand is very high and the U.S. defense organizations, as well as Department of State, is very favorable toward helping us equip these countries with Switchblade.
We've delivered quite a good chunk of those Switchblade 600s and 300s so far to the U.S. DOD. All of these cases so far for Switchblade remain to be FMS cases. So, A, we delivered a lot.
There's five countries that have already spoken for them, and they've gone public about it and made its statements. There's a total of 20 countries that we're actively involved with, and about a third of those are actively in the export approval process, which is really, really encouraging and positive. In addition to that, Peter, I also want to mention that we're actively negotiating with the U.S. DOD on a very large, multiyear, IDIQ sole source Switchblade contract that allows the U.S.
DOD to purchase large quantities of Switchblade for multiple years from AeroVironment, and then actually fulfill the need for Ukraine, for the U.S. DOD stockpiles and programs, as well as for our allies and FMS cases. That actively is in process. It'll take some time, but it's very encouraging.
Peter Arment -- Baird -- Analyst
That's all great color. I appreciate that, Wahid. And, Kevin, maybe just a quick one for you on you made some comments about that you kind of expected the gross margin -- adjusted gross margin for the year to end up in the low 40s to high 30s. Maybe you could just -- that implies, I guess, in the second half of the year, if you're going to be in the high 30s that you'd see that gross margin come down, I guess, maybe in the mid-30s or so.
Is that primarily tied to the LMS revenue ramp, or can you maybe highlight maybe some of the puts and takes there? Thanks.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Right. Right. So, you kind of have a combination of a little bit lower small UAS revenue, and then that's kind of replaced by the lower margin LMS revenue in the second half.
Peter Arment -- Baird -- Analyst
OK. Great. Thanks again. Nice results.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Thank you, Peter.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Thank you.
Operator
Thank you. One moment for our next question. And our next question comes from the line of Ken Herbert from RBC Capital Markets. Your question, please.
Ken Herbert -- RBC Capital Markets -- Analyst
Yeah. Hi. Good afternoon, everybody.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Hey. Good afternoon, Ken.
Ken Herbert -- RBC Capital Markets -- Analyst
Hey. Wahid, maybe if I could -- just to sort of put a finer point on the mix impact in the second half of the fiscal year, what's your outlook for growth specifically within LMS of -- within the LMS segment for the second half of the year? I mean, second quarter growth there, I mean consistent with your expectations but flattish, down slightly. How much of the second half growth is going to come from that segment relative to UMS or MacCready Works?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
So, Ken, I'm glad you asked that question. First of all, this fiscal year, loitering munitions as a whole, we expect it to be the strongest driver of our growth overall. It's going to be very, very robust growth for the whole year. That's our expectation.
As we expected and as I said on my comments, the first half of the year is very much in line to our expectations and how we thought it's going to play out, primarily because the contracts for Switchblade are very large, lumpy contracts. We had a very strong fourth quarter, if you remember, last fiscal year, which we had record shipments and record bookings. That has allowed us to ship on the first quarter and the second quarter according to our plans. Second half is going to be very dominant in terms of growth and revenue driver for our Switchblade 300 and 600.
We have a robust pipeline for Switchblade that is not only going to fuel our second half performance in terms of revenue and bookings, but it's also going to fuel our fiscal '25 and beyond. I mean, the pipeline for Switchblade 300 and 600 looks extremely promising. It just takes a little while, primarily because of the nature of the product, the government contracting process, and the FMS approval process that we have to go through for all these exports. But overall, I think second half is going to be dominated by our loitering munitions business, both in terms of bookings, as well as in terms of revenue performance for the year.
Ken Herbert -- RBC Capital Markets -- Analyst
OK. That's helpful. Thank you. And maybe, Wahid or Kevin, what's your outlook for full year free cash flow? I mean, you've sort of used 36 or so through the first half of the year.
You have significant investments in working capital. Do we expect much relief and positive free cash in the second half of the year, or how do we think about the full year from a cash basis?
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
I mean, I'm not banking too much on a lot of relief. I would think those working capital levels will stay around this mark here in the third and fourth quarter, maybe even up a little in the third quarter, and then come down a little bit in the fourth quarter. And then I think you'll start to see some improvement, at least as a percentage of overall sales, in FY '25.
Ken Herbert -- RBC Capital Markets -- Analyst
OK. Great. Thank you very much.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
You're welcome, Ken.
Operator
Thank you. [Operator instructions] And our next question comes from the line of Pete Skibitski from Alembic Global. Your question, please.
Pete Skibitski -- Alembic Global -- Analyst
Yeah. Good afternoon, guys. I guess one for me. How do you guys -- what's the right way to think about the -- kind of the time frame or the path to improve LMS gross margins and, you know, what are the major factors that impact that through the midterm?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
So, Pete, we actually have seen fairly strong improvement on the gross margin of our Switchblade product line as a whole relative to the last several years, and we continue to make even more progress. Having said that, you know, our small UAS, especially international contracts and orders, are by far the most profitable products because we've invested for many, many years in that product line and we're able to sell those as a commercial item to a lot of our international customers. So, while our small UAS has set a very, very high bar in the industry, if not only just for AeroVironment, Switchblade gross margins and profitability is fairly strong, and it's improving. How well? That it's going to be -- you know, usually, our hardwares are in the upper 40 -- mid-40s to low 40s, and Switchblades are in the mid to high 30s.
So, it's not that much off of our small UAS, and it's improving. We have several activities and strategies on improving that, one of which, of course, is volume and lowering the cost inputs and allowing us to actually get more efficient in production, which we are making significant improvements, and our team has managed that really well. The second thing is also in terms of improving the cost in terms of the Block 20 product. Switchblade Block 20 and the next-generation systems are actually easier to manufacture, has less labor content and much more automation in terms of its manufacturing capability.
So, we've got several activities, which many of them have already paid some dividend, and they'll continue to pay dividend going forward as well.
Pete Skibitski -- Alembic Global -- Analyst
OK. That's great color. I appreciate it. Just one more for me.
I just want to understand, guys, in terms of this big Switchblade IDIQ that's coming down the pipe, how will that product sort of -- and how that meets Army requirements? How would that differ from the LASSO contract for the Army, assuming you win, you know, LASSO at some point? I don't know what time frame is on that. But it seems like similar products. So, I don't know if LASSO is deemed as a mid to long-term replacement for the, you know, Switchblade IDIQ, or what's the right way to think about that?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Sure, Pete. So, let me add some comments or color to this thing. Historically, U.S. Army has been the main contracting office for procuring Switchblades for U.S.
DOD, as well as for our allies. And that remains still the case right now for the most part. And they used to have a large contract that we bought under for multiple years. And since the demand has gone up so much higher, that contract has reached its ceiling.
So, now, the U.S. government basically buys these on individual UCAs, or undefinitized contract action items -- actions, which is laborious for both the government, as well as for us. What they have started to do is to actually initiate another very large, multiyear, sole source IDIQ contract for all Switchblade, both for U.S DOD, as well as our allies. So, the LASSO contract and some of the other ones, until that large multiyear contract is in place, will still be executed and awarded to us based on these UCAs.
But long term, what we want is a larger contract vehicle that allows the U.S. government to buy for many customers many opportunities and funding sources and fulfill those much easier. So, we're very pleased that the U.S. Army and U.S.
DOD has taken that initiative. We're actively working that. It's going to take some while because of the CR situation, as well as with the bandwidth of the U.S. DOD in terms of contracting resources, but we feel very good.
We've already turned in our proposals. We're negotiating the rate structures. And I think it's going to be more a matter of when versus if. And when that goes into effect, then it actually allows a lot more volume to go through and a lot more procurement to happen much faster in terms of timing.
And so, we're looking forward to that. It'll be very, very positive for us and for our customers.
Pete Skibitski -- Alembic Global -- Analyst
OK. Thanks so much, guys.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Thank you.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Thank you.
Operator
Thank you. One moment for our next question. And our next question comes from the line of Louie DiPalma from William Blair. Your question, please.
Louie DiPalma -- William Blair -- Analyst
Wahid, Kevin, and Jonah, good afternoon.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Good afternoon, Louie.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Good afternoon, Louie.
Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations
Good afternoon.
Louie DiPalma -- William Blair -- Analyst
I'm following up on several of the recent questions. You mentioned the Army announcing that they awarded AeroVironment 100 LASSO systems. Is -- are those 100 systems already in backlog, and what's the general expected timeline for the LASSO program in terms of phase 1 and subsequent phases?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Sure. So, Louie, that particular contract award has two very positive aspects to it, and that's why I highlighted it. Number one, it is the first initial tranche of the LASSO program, a record potentially, which puts us in a very, very good position. So, eventually, as you know, these programs will be competed, but to be already selected on the first phase and have product go into the U.S.
Army for testing and fielding is very, very positive. Secondly, that order is not in our backlog. So, while our Switchblade and loitering munitions business backlog is pretty healthy, we -- many of these opportunities that I mentioned on the -- on my comments is not reflected on our current backlog. All of these opportunities are additional orders and contracts that we expect to book in the next six to 12 months.
And in fact, that demand continues to increase rather than decrease in terms of its pace, as well as the top line. So, our pipeline and our portfolio looks very robust for Switchblade, both 300 and 600. And domestically, we've got several programs. Internationally, we've got lots of countries.
And we're also working on many other platforms to integrate Switchblade onto, such as the Humvees, the Abrams, and OFMV, etc., etc. So, all in all, we've got a lot more upside on our Switchblade product lines over the next six months -- six to 12 months in terms of orders.
Louie DiPalma -- William Blair -- Analyst
Great. And I think you and Kevin both mentioned that the second half of the year should be heavy in terms of both Switchblade 300s and Switchblade 600s. And will Switchblade 600s also be shipped to those five international customers in the second half, or some of those five international customers?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Yeah. The answer is yes, Louie. Many of those international customers, I can't specifically name any of them because of the respect and confidentiality for our customers, but the vast majority, if not all of those customers, desire and have requested both Switchblade 300 and 600. And same is true for the supplemental budget that is in front of Congress for Ukraine, the $100 million-plus budget item, the supplemental package that's in front of Congress that is for Israel, Ukraine, and potentially Taiwan, there are line item dollars for both Switchblade 300 and 600 for those three countries.
And so, we feel pretty strong that long term, since Switchblade 600 is a fairly newer product in terms of its life in the market, it's going to be equally as large of a product and revenue generator for us as our 300. And, you know, obviously, the selling price of the 600 is significantly higher because it's a much bigger loitering munition.
Louie DiPalma -- William Blair -- Analyst
Great. And one last one for Kevin. Do you expect SoftBank -- or for both of you, do you expect SoftBank to continue funding HAPS and is AeroVironment prepared to continue funding HAPS and Sunglider on its own if SoftBank drops out?
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Sure. So, A, SoftBank is very committed to this program. We are working with them very closely. They continue to fund us, although the funding for them has been reduced slightly because of their financial situation over the last couple of years.
There's a much bigger discussion and known variables in the Japan's economic situation and the pandemic, etc. that's affecting that. Number one, that's the underlying reason. But -- however, SoftBank is very committed to us.
We're actively engaged with them. We're talking to them all the time, very regularly. And we're progressing that process. So, I do not expect them to stop funding our Sunglider anytime soon.
They're committed to the mission. They still believe in the platform, and they believe in the long-term value proposition of HAPS. It's just that they have intentionally slowed down over the last two years because of the overall macroeconomic situations that they're faced with. Secondly, we are funding it to some small amount, primarily because there is IP involved that we would like to make sure that we own and we protect.
We've always done that, and we'll continue to do that. And lastly, we have received our initial contract award from the U.S. DOD, and there is additional funding, a significant amount of funding, actually, relatively speaking, in the government fiscal year '24 budget for HAPS and the U.S. DOD budget.
So, when the government fiscal year '24 budget is approved, we expect that eventually to transition into a contract with AeroVironment, and we're actively working this program with the U.S. DOD. There's very strong support and desire for this capability in the U.S. DOD as well.
Louie DiPalma -- William Blair -- Analyst
Excellent. Thanks, Wahid. Thanks, Kevin and Jonah as well.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Thank you.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
You're welcome, Louie.
Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations
Thanks, Louie.
Operator
Thank you. One moment for our next question. And our next question is a follow-up from Ken Herbert from RBC Capital Markets. Your question, please.
Ken Herbert -- RBC Capital Markets -- Analyst
Yeah. Hi. Good afternoon. I just wanted to follow up on the EPS guidance.
I mean, you did just under $2 in adjusted EPS in the first half. The guidance implies, you know, $0.60 to $0.70 in the second half of the year at the upper end of the range. Aside from mix as you really ramp Switchblade sales, is there anything else in particular on the EPS that's sort of driving the significant step down first half to second half?
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
We definitely expect to step up in R&D in the second half of the year, so that's going to be part of the equation there for the EPS. So, you're going to see a little bit lower margins. You're going to see a step up of the R&D expense in the second half.
Ken Herbert -- RBC Capital Markets -- Analyst
OK. So, mix and R&D, I guess, would be how we should think about that.
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Yeah. That's right. Normally, our ears are all reversed around. So, there's a little bit of a backwards here.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Yeah. And as I said, too, Ken, in my remarks, as you saw, we have an exciting number of other programs and projects where there's a lot of demand for those systems, including the DARPA ANCILLARY, the SOAR program with the U.S. Army, and with the OSD for a large contested logistics capability. Those programs are getting a lot of traction.
And we do not want to slow down those efforts and make sure that even though if there's a continuing resolution, we accelerate those things because the desire and demand by the U.S. DOD for those capabilities is very high. And we also believe that we're very unique in the sense that our solutions are considered the most innovative and the most capable in these categories that the U.S. DOD is feeling very strongly about.
So, we're going to expect to actually ramp up R&D investments in the second half to support those developments in order to fuel our future growth and shareholder value creation.
Ken Herbert -- RBC Capital Markets -- Analyst
OK. Great. Appreciate it. Thanks, Wahid and Kevin.
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
You're welcome.
Operator
Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Jonah for any further remarks.
Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations
Thank you once again for joining today's conference call and for your interest in AeroVironment. As a reminder, an archived version of this call, SEC filings, and relevant news can be found under the investor section of our website. We wish you a good evening and look forward to speaking with you again following next quarter's results.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations
Wahid Nawabi -- Chairman, President, and Chief Executive Officer
Kevin McDonnell -- Senior Vice President and Chief Financial Officer
Greg Konrad -- Jefferies -- Analyst
Peter Arment -- Baird -- Analyst
Ken Herbert -- RBC Capital Markets -- Analyst
Pete Skibitski -- Alembic Global -- Analyst
Louie DiPalma -- William Blair -- Analyst
More AVAV analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has positions in and recommends AeroVironment. 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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As we said last quarter, this reflects not only near-term demand dynamics related to global conflicts, but also a long-term shift in military strategy to the more frequent use of intelligent, multidomain unmanned systems, which are easy to use, highly effective, and provide a compelling value proposition. Our success is due to the talent of our team, who go above and beyond to continuously improve our products, strive for new innovative solutions, effectively manage the company's supply chain, and meet our customers' needs in a timely and expeditious manner. Wahid Nawabi -- Chairman, President, and Chief Executive Officer So, Pete, we actually have seen fairly strong improvement on the gross margin of our Switchblade product line as a whole relative to the last several years, and we continue to make even more progress.
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Joining me today from AeroVironment are chairman, president, and chief executive officer, Mr. Wahid Nawabi; and senior vice president and chief financial officer, Mr. Kevin McDonnell. Speaking of gross margins, Slide 6 of the earnings presentation shows the trend of adjusted product and service gross margins, while Slide 12 reconciles the GAAP gross margins to adjusted gross margins, which excludes intangible amortization expense and other noncash purchase accounting items. Operator [Operator signoff] Duration: 0 minutes Call participants: Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations Wahid Nawabi -- Chairman, President, and Chief Executive Officer Kevin McDonnell -- Senior Vice President and Chief Financial Officer Greg Konrad -- Jefferies -- Analyst Peter Arment -- Baird -- Analyst Ken Herbert -- RBC Capital Markets -- Analyst Pete Skibitski -- Alembic Global -- Analyst Louie DiPalma -- William Blair -- Analyst More AVAV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool.
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Adjusted product gross margins for the quarter were 47%, versus 38% in the second quarter of last fiscal year, due to the high mix of international revenue from our small UAS products during the quarter. We expect fiscal year 2024 adjusted gross margins to end up in the high 30s to low 40s following the anticipated increase in loitering munitions systems revenue in the second half of the fiscal year, both in terms of dollars and percentage of total revenues. Operator [Operator signoff] Duration: 0 minutes Call participants: Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations Wahid Nawabi -- Chairman, President, and Chief Executive Officer Kevin McDonnell -- Senior Vice President and Chief Financial Officer Greg Konrad -- Jefferies -- Analyst Peter Arment -- Baird -- Analyst Ken Herbert -- RBC Capital Markets -- Analyst Pete Skibitski -- Alembic Global -- Analyst Louie DiPalma -- William Blair -- Analyst More AVAV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool.
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Adjusted product gross margins for the quarter were 47%, versus 38% in the second quarter of last fiscal year, due to the high mix of international revenue from our small UAS products during the quarter. Wahid Nawabi -- Chairman, President, and Chief Executive Officer So, Pete, we actually have seen fairly strong improvement on the gross margin of our Switchblade product line as a whole relative to the last several years, and we continue to make even more progress. Operator [Operator signoff] Duration: 0 minutes Call participants: Jonah Teeter-Balin -- Senior Director, Corporate Development and Investor Relations Wahid Nawabi -- Chairman, President, and Chief Executive Officer Kevin McDonnell -- Senior Vice President and Chief Financial Officer Greg Konrad -- Jefferies -- Analyst Peter Arment -- Baird -- Analyst Ken Herbert -- RBC Capital Markets -- Analyst Pete Skibitski -- Alembic Global -- Analyst Louie DiPalma -- William Blair -- Analyst More AVAV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool.
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2023-12-06 00:00:00 UTC
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Stitch Fix (SFIX) Q1 2024 Earnings Call Transcript
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DCOMP
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https://www.nasdaq.com/articles/stitch-fix-sfix-q1-2024-earnings-call-transcript
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Image source: The Motley Fool.
Stitch Fix (NASDAQ: SFIX)
Q1 2024 Earnings Call
Dec 05, 2023, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon and thank you for standing by. Welcome to the first quarter of fiscal year 2024 Stitch Fixearnings call At this time, all participants will be in a listen-only mode. After the speakers' presentation, you will be invited to participate in a question-and-answer session.
[Operator instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Hayden Blair.
Hayden Blair -- Senior Director of Investor Relations and Treasury
Good afternoon and thank you for joining us today for the Stitch Fix first quarter fiscal 2024earnings call With me on the call are Matt Baer, chief executive officer; and David Aufderhaar, chief financial officer. We have posted complete first quarter 2024 financial results in a press release on the quarterly results section of our website, investors.stitchfix.com. A link to the webcast of today's conference call can also be found on our site.
We would like to remind everyone that we will be making forward-looking statements on this call, which involve risks and uncertainties. Actual results could differ materially from those contemplated by our forward-looking statements. Reported results should not be considered as an indication of future performance. Please review our filings with the SEC for a discussion of the factors that could cause the results to differ, in particular, our press release issued and filed today, as well as the risk factors sections of our annual report on Form 10-K for our fourth quarter and full year 2023 previously filed with the SEC and the quarterly report on Form 10-Q for our first quarter 2024, which we expect to be filed later this week.
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Also, note that the forward-looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements except as required by law. During this call, we will discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the press release on our investor relations website.
These non-GAAP measures are not intended to be a substitute for our GAAP results. In the first quarter of fiscal 2024, we met the requirements to report our U.K. business as a discontinued operation. Accordingly, all metrics discussed on today's call represent our continuing operations.
Finally, this call, in its entirety, is being webcast on our investor relations website, and a replay of this call will be available on the website shortly. And now, let me turn the call over to our CEO, Matt Baer.
Matt Baer -- Chief Executive Officer
Thanks, Hayden. Good afternoon. I'm pleased to share that Q1 revenue came in at the high end of our guidance, and we outpaced our guidance on adjusted EBITDA as a result of the work we are doing to manage the business to profitability. While these results are encouraging, there is much more work to be done to change the trajectory of our business.
We began the fiscal year carefully assessing all areas of our company to identify impactful opportunities to transform our operations and improve our performance. And that work is ongoing. All that I've learned and observed in my first five months, as well as my experience in retail over many years, has reinforced my conviction in our company's ability to deliver sustainable profitable growth. The original vision of Stitch Fix is as powerful, as relevant, and as compelling today as it was when it launched.
Over the last 12 years, we have served millions of clients with a more innovative and more convenient way to shop for apparel and accessories, and new technology is making it possible for us to take personalization to a new level. To ensure that we continue to fully realize our vision into the future, we must think differently, work differently, and approach our business differently, and we have already begun to do that with three significant bodies of work. First, we are strengthening our foundation and embedding retail best practices throughout the organization. Second, we are building a healthier client base by more precisely targeting high lifetime value clients that we expect will help us expand our client base over time.
And third, we are developing a long-term strategy to better serve the clients we have today and those we intend to attract in the future. We have begun to embed retail best practices that are already changing the way certain choices and decisions are being made. We will make operational excellence the standard for everything we do. And we will ruthlessly prioritize how our teams are spending their time.
This approach is intended to be comprehensive, from merchandising and pricing science to transportation and warehouse operations. And to ensure a high degree of rigor and accountability, we have a dedicated team in place to drive efficiency across the organization and transform the way we operate. This may not be headline-grabbing, but it is exactly the work that we need to be doing right now, and we believe it will fuel our ability to deliver sustainable profitable growth. We saw encouraging results in Q1 as we continued to strengthen our foundation and apply those retail best practices across a number of functions.
Let me share a few examples. In merchandising, we began to establish best-in-class buying, assortment planning, and inventory allocation strategies and we increased our focus on private brands. We expect it to improve operational efficiencies, grow margin, and ensure we have the right product in the right location at the right time to best serve our clients. Our private brands play an outsized role in improving both client outcomes and profitability.
Over the last few years, we have increased our private brands from approximately one-third to nearly 50% of total sales. Because these brands perform well, generating higher keep rates and margins, we plan to emphasize them in our assortments moving forward. We also continued to refine our brand portfolio in order to better serve our clients, unlock greater operational efficiencies, and build deeper relationships with national brand partners. Over the last two quarters, we have reduced the number of brands, and we will continue to assess brands and optimize categories to deliver newness and trend while also driving growth.
In technology, we continue to advance a broader set of generative AI initiatives. As one example, we launched a generative AI-enabled tool that makes it easier and more efficient for stylists to personalize the notes clients receive within their fixes. Through the use of this tool, notes are informed by a client's prior purchase history and reflect item-specific descriptions and selling points. This lets us deliver a more robust experience to clients at a lower cost to serve and lets stylists redirect their time to conduct deeper analysis of client profiles, curate the best possible fixes, and spend more time building relationships with clients.
We also continue to scale the use of our AI buying tool, which helps to drive more informed decisions and fresher assortments. We already see improved keep rates in the initial phase, and we expect this tool to be utilized in more than 50% of all units ordered by the end of fiscal year 2024. In our product and technology organizations, we welcomed seasoned leaders with experience at Amazon Fashion, eBay, Airbnb, and Nike to solidify and advance these teams. Headlining the additions is Tony Bacos, who joined the company a few weeks ago as chief product and technology officer.
He brings tremendous subject matter expertise, sharp business acumen, and exceptional product instincts, as well as an impressive track record of delivering results. We will assess opportunities to advance all of our teams across the organization, carefully evaluating structure and capabilities to ensure that our workforce is aligned to our strategic objectives. We have strong talent in the company, and our teams have been stepping up nicely in response to new leadership, new objectives, and new expectations. Speaking to the long term, development of this strategy is progressing well, and we are already transforming our ways of thinking and working.
We can and plan to seize the opportunity to methodically widen the aperture of target client segments and introduce many more people to the convenience and benefits of personalized styling. And we plan to radically reimagine the client experience to firmly position and differentiate Stitch Fix within the retail landscape. As the best practices and operational efficiencies I described take hold, I believe we will have a much stronger foundation to build upon. I look forward to sharing more about our strategy in the future and the specific ways we plan to innovate for our clients, drive growth for our business, and create value for our shareholders.
The past five months have given me a solid grounding in where our business is today, a clear understanding of the current obstacles, and increased conviction about the path to return to profitable growth. I'm confident that the work we are doing now is essential to setting Stitch Fix up for future success, and I want to thank our teams for their ongoing commitment to our clients, their openness and enthusiasm around new ways of working, and their belief in the bright future of our company. With that, I'll turn the call over to David, who will speak to our Q1 financial results and future outlook.
David Aufderhaar -- Chief Financial Officer
Thanks, Matt. In Q1, we continued to focus on near-term profitability and cash flow throughout our organization while also doing the work to strengthen our foundation and set ourselves up for sustainable profitable growth. We successfully ceased operations of our Bethlehem, Pennsylvania warehouse and are on track to do the same in Dallas by the end of Q3. We expect this new three fulfillment center strategy will have immediate cost savings and be cash flow neutral throughout the transition.
Once complete, the reduced warehouse footprint will allow us to have inventory in fewer warehouses and make it easier for stylists to build more personalized assortments for clients. We also expect to realize the benefit of inventory efficiencies as we scale. Additionally, we completed the wind-down of our business operations in the U.K. in the first quarter.
On behalf of the leadership team, Matt and I want to thank the teams in Bethlehem, Dallas, and the U.K. for their professionalism and hard work during these transitions. Because of the work our teams have done to improve gross margin and variable cost leverage, we continue to have enviable unit and order economics. Our contribution profit remains at the high end of its historical 25% to 30% range.
We will continue to identify further opportunities to improve fixed and variable costs in order to increase both contribution margin and fixed cost leverage over time. Now, let me get into the Q1 results. Q1 net revenue was $365 million, flat quarter over quarter and at the high end of our guidance range, driven by higher-than-expected volume and stronger sequential AOV heading into the fall-winter season. Net active clients ended the quarter down 4% sequentially at approximately 3 million clients.
Revenue per active client declined 6% year over year to $506. AOV improved year over year, but we continue to see the lower fix frequencies we have seen in the last few quarters. Gross margin for the quarter was 43.6%, up 140 basis points year over year, driven by continued improvement in inventory health and transportation leverage. Net inventory increased 23% quarter over quarter, as expected, due to buying ahead of the fall-winter season, but was down 24% year over year to $161 million.
We expect inventory balances to decrease in Q2 and remain at lower levels for the remainder of FY '24 as we align our inventory position with demand and increase the assortment composition of our successful private brands. Advertising was 8% of revenue in the quarter, down $11 million, or 27% year over year, but up sequentially due to an investment in our fall brand campaign and the scaling of reactivation initiatives. Q1 adjusted EBITDA came in at $8.6 million, up $10 million year over year and exceeding the high end of our guidance range as a result of continued successful cost controls. We generated $17 million of cash flow in the quarter and ended the quarter with over $260 million in cash, cash equivalents, and investments, and no bank debt.
Turning to our outlook. We continue to focus on what is within our control. As Matt highlighted, our first priority is to strengthen the foundation of our business and embed retail best practices throughout the organization. This means continuing to focus on improving the client experience, retaining and attracting clients, maximizing the effectiveness of our marketing, increasing leverage in our cost structure, and driving positive free cash flow.
For Q2, we expect total net revenue to be between $325 million and $335 million. We expect Q2 adjusted EBITDA will be between $2 million and $7 million. We expect both Q2 and full year gross margin to be approximately 43% to 44% as we continue to drive improvement in our inventory position with a higher percentage of private brands and ongoing efficiencies in our transportation costs. We expect both Q2 and full year advertising to be between 7% and 8% of revenue, but we will be opportunistic and may increase that if we see the right return on our investment.
For the full year, we are reaffirming our expectations for net revenue to be between $1.3 billion and $1.37 billion. We are now expecting adjusted EBITDA to be between $10 million and $30 million. This guidance still assumes we'd be free cash flow positive for the full year, though we do expect Q2 to be negative due to the timing of working capital requirements related to inventory purchases. As we strengthen our foundation, stay focused on leverage and profitability, along with acquisition and engagement of high lifetime value clients, I'm confident in our ability to maintain profitability today and provide a solid foundation for the future.
Now, let me turn the call back to Matt.
Matt Baer -- Chief Executive Officer
Thanks, David. This is an important time for our company. We are encouraged by all that has been accomplished, and we are focused on what is still to come. We are organizing, orienting, and galvanizing around transformational work on the foundation and operations of our business.
We are making better decisions and marked progress after taking a step back, performing a holistic assessment and challenging prior assumptions. Our teams are energized by new ways of working and motivated by early indicators of what we can achieve. I'm confident that our best days are ahead of us, and we are working to accelerate the pace with which we will reach them. I said at the beginning of this call that over the past 12 years, Stitch Fix has served millions of clients with a more innovative, more personalized, and more convenient way to shop for apparel and accessories.
Let me quantify that. We recently shipped our 100 millionth fix. That is an extraordinary achievement, and it is both a testament to a great idea and a credit to the incredible people who bring their knowledge, skills, and determination every day. We celebrated this milestone internally.
And now, I want to take this opportunity to publicly recognize everyone at Stitch Fix for this accomplishment. Thank you all for joining today's call, and I'll turn it over to the operator so we can take your questions.
Questions & Answers:
Operator
Thank you. [Operator instructions] And our first question comes from the line of Youssef Squali from Truist. Your line is open.
Youssef Squali -- Truist Securities
Great. Thank you very much. Hi, guys. So, just two quick questions for me.
First, as you step back a little bit and you look at kind of the future drivers of positive growth, can you maybe talk about the two or three key initiatives you believe should help reverse the active client decline and kind of when do you believe that could happen? When do we reach that inflection point? Is it possible that we -- you know, it happens in the next 12, 18 months? And then on the Q2 guide, in particular, the revenue guide implies for your further deterioration in the top-line growth. Maybe can you just help us -- can you help parse out maybe macro versus kind of things that are -- that you guys are doing, you know, company-specific that may thinks -- that may make things maybe step back before starting to grow again? Thank you.
Matt Baer -- Chief Executive Officer
Hey, Youssef. Appreciate the question. You've got Matt here. I'll speak to the first part of your question in terms of the future drivers of positive growth.
We'll let David add any additional context to that, as well as answer your question around the Q2 guide and implications for the balance of the year. In terms of the future drivers of positive growth, I think important just to reframe and reinforce that where our focus remains is just to ensure that -- at the moment, is to ensure that we have a healthy foundation for our business. This healthy foundation, that includes a seamless client experience, it includes compelling assortment, it includes well-planned inventory, it includes the emphasis that we're putting on efficient and scalable operations and a best-in-class customer service that we offer our clients. It also includes the continued advancements that we're making in the technology that's deeply rooted and embedded within our company and throughout the Stitch Fix ecosystem.
As part of that, we also remain committed to building a healthy client franchise, and that's through a judicious marketing strategy that rationalizes every dollar spent. We do that to ensure our investment acquires high lifetime value clients. We're also, as we've discussed on prior calls, equally committed to engaging our current clients in an effort to reduce any future dormancy, as well as building on our successes to reengage those clients that may have lapsed. And as I mentioned on the call, you know, a lot of the ways that we're building this foundation is to focus our efforts on retail operation best practices.
A couple of things that we're doing there that have already proven positive results for us. The first is our focus of the team to improve that foundational client experience, and that's across all of our touchpoints, in order to drive conversion through the onboarding, as well as all of our shopping funnels. And as that experience improves, we'll see conversion through the funnel improve that will also unlock greater efficiencies then for all of our media investments. Another example is our continued investments within our CRM capabilities.
And within those, we have an outsized emphasis on continuing to evolve and improve our SMS and push notification communications. This is a critical tool for us as we focus on that engagement and reengagement of our clients, as well as to introduce more content into the experience and capitalize on promotional opportunities to drive the top line. And all this work that the team has been doing has begun to show some early and positive results. We've seen our 90-day revenue per active client, our keep rates, and our AOV all moving in the right direction.
Now, we've also seen some softness in our client conversion and some opportunities to drive a more efficient client acquisition cost. And going forward, we'll continue to balance those bright spots with our opportunities and remain judicious across all of our investments. And importantly, we just continue to have this very strong perspective that a continued focus on the healthy foundation and healthy client franchise, that will unlock sustainable profitable growth in the future and ensure that when that inflection point occurs, we will be set up for long-term profitable growth.
David Aufderhaar -- Chief Financial Officer
And then, Youssef, just some adds on the guide. From a revenue perspective, just a reminder, I think we touched on this last time that the negative active clients from prior periods, so from what we saw in FY '23 and in Q1, that is a contributor to the revenue headwinds. I think we also talked about, you know, expecting lower fix frequency within our existing client base. And so, that's another factor in the revenue guide.
To what Matt called out earlier, we did see higher AOV this quarter, and that's certainly an encouraging sign. And then also, for Q2, we are expecting active clients to be negative for the quarter, and we expect that to be pretty much similar or slightly higher sequentially from a percentage standpoint than what we saw in Q1. And, you know, for that, we don't provide a full year guide. But as we've said in the past, we will continue to focus on driving healthy engaged active clients.
I think Matt touched on this as well in what he just said. But, you know, we are seeing, you know, from a near-term perspective, the clients that are converting are healthier. You know, we're seeing a higher three-month active RPAC. We've seen that this quarter and last quarter.
And part of that, we're also seeing increased fix frequency in some of those newer client cohorts.
Youssef Squali -- Truist Securities
Great. Thanks for the color.
Operator
Thank you. One moment for our next question. Our next question comes from the line of Aneesha Sherman from Bernstein. Your line is open.
Aneesha Sherman -- Bernstein Research -- Analyst
Thank you so much. So, I just wanted to continue that same discussion topic around the clients you're attracting. So, Matt, it sounds like you're saying you're improving, you said, client experience, assortment, etc. And it sounds like you're focusing on retention and reengagement.
So, how do you square that within the expectation of continued negative net adds? Is there still some adverse selection from Freestyle-first clients that you're now seeing churning out before your base is healthy or why do you expect the net adds number to continue to be negative while you're seeing all of these retention metrics start to improve? And then I have a follow-up as well.
Matt Baer -- Chief Executive Officer
Yeah. Aneesha, I appreciate the question and happy to provide a little bit more context. And what I would do is I would reference back to what I mentioned in this conversation, as well as on our lastearnings call and that's just how judicious we're being in terms of where we're spending our marketing dollars. So, the customers or the clients that we do acquire are those that are delivering -- going to deliver a high lifetime value.
And I've been a witness to organizations or practices where, you know, chasing short-term revenue growth or short-term client acquisition. And if you're doing that without a really firm conviction that those clients are going to deliver a high lifetime value for you, that becomes a losing proposition. And as I and David just mentioned, we are seeing some promising signs in terms of those newer clients that we have acquired. But it's also early innings there, and we want to continue to be judicious and be methodical in terms of that spend.
As I've onboarded into Stitch Fix, I've also learned more and more about the uniqueness of our business model, and it's one that's different from traditional e-commerce in many ways, as you know. And in this particular instance, I think the relevant context is that when you're going out in traditional e-commerce to acquire new clients, you're often thinking about it at a transactional level. Even some of the largest retailers out there are acquiring every single visit and every single purchase from even their most loyal clients. For us, we have that really unique competitive advantage in the differentiation of our business model such that when we acquire the right client, we get organic reengagement over the long term from them.
You see that in terms of where our media or marketing investment has been relative to that client -- the client results that we just spoke to. In other retailers, you're normally going to see that from a 1-to-1 degradation standpoint in terms of your reduction in media and reduction in client count. For us, we have that benefit where once we get the right client on board and they get a fix and they're happy with that, a subsequent fix, another fix, we get that organic reengagement, that organic recurring revenue stream. But it also takes time to ensure that investment is fully optimized as that occurs over a period of several months as opposed to something that you're able and other e-commerce businesses able to assess in much closer to real time.
So, we're going to make sure and continue to be judicious, continue to be methodical, and we are encouraged by these early results, and we'll continue to build on those and invest into those into the future as we see appropriate.
David Aufderhaar -- Chief Financial Officer
Aneesha, just to add one more data point on sort of the dormancy side of active clients, we expect, you know, similar levels of dormancy from a client perspective. And I think I touched on this earlier, but, you know, as we said on some of the prior calls, we saw a dip in first fix engagement last year, and that's impacted dormancy results over the last few quarters. Again, early results, but we're seeing progress here where recent client cohorts, we saw improved first fix outcomes in Q1 with higher retention both quarter over quarter and year over year. But the challenge with that is dormancy is a lagging metric.
So, it's one of those things that's going to take a little bit for us to see that come through in the overall metrics.
Aneesha Sherman -- Bernstein Research -- Analyst
OK. That makes sense. And a quick follow-up, please. So, what is inherently different about the new clients that is making them higher quality? Is it a demographic difference or a behavioral difference? Can you give a little bit more color about why you're seeing this much higher quality in your new client base?
Matt Baer -- Chief Executive Officer
Yeah, happy to speak to that at a high level. And, David, feel free to add any additional context. So, in terms of the new clients that we've been acquiring, I think it starts with, again, a conversation we started on the last call is just in terms of how we're going to market. We have our marketing team that's really working hard to find the right balance between upper funnel, brand-driven messaging that creates the right awareness and consideration for potential clients that we onboard into the system such that they have an understanding of the service, they demonstrate interest, and when we get them into the onboarding funnel and they become a client of ours, they have a high intent and a high knowledge and level of interest in the service and are more likely to become not just a client that has a first fix shipped to them but has a subsequent and then the third fix and so forth.
So, I think we've done a really good job in terms of finding that balance in our media and marketing spend such that we can build awareness, build consideration in the upper funnel, as well as have a really optimized lower funnel programmatic marketing campaign in order to acquire all of those clients toward the bottom of the funnel.
David Aufderhaar -- Chief Financial Officer
And I think where we're seeing that in the metrics is the RPAC callout that we talked about earlier that we are seeing encouraging signs in three-month RPAC, and that's both sides of it. You know, we're seeing positive signs from new clients who are receiving more fixes in their first few months compared to new clients last year. And I think we also mentioned that AOV was a strong point for total RPAC as well, and that's -- that was driven by hitting a multiyear high in Q1 that helped boost up the three-month RPAC.
Aneesha Sherman -- Bernstein Research -- Analyst
Got it. Thank you.
Matt Baer -- Chief Executive Officer
Yeah.
Operator
Thank you. [Operator instructions] Our next question comes from the line of Kunal Madhukar from UBS. Your line is open.
Kunal Madhukar -- UBS -- Analyst
All right. Thanks for taking my question. So, continuing along the same lines in terms of RPAC and given that fiscal second quarter, the AOV should be much higher since [Inaudible] winter clothing. Why should we think that the guide that you've given, the top-line guide of flat Q over Q should be the case? Why shouldn't the revenue come in much higher simply because the trends are all improving and the AOV will be much higher in the fiscal second quarter? Thank you.
David Aufderhaar -- Chief Financial Officer
Yeah. Kunal, like -- sorry, I just had a little bit of difficulty hearing the question, but if I understood correctly, you know, one of the things that we're seeing, though, is, you know, new clients versus the total client base. And I think one of the things that we had highlighted earlier is, you know, RPAC, the reason it declined from a quarter-over-quarter standpoint is because we continue to see the challenges from a fix frequency perspective that we've seen in the last few quarters. And that's more of a drag on clients.
And then we also have the active client loss as well, and that plays into the revenue guide. And so, those are probably the two factors that would be impacting that.
Kunal Madhukar -- UBS -- Analyst
Got it. And then as far as one-time and restructuring expenses are concerned, are we done with everything or do you still anticipate some more restructuring expenses in the second quarter?
David Aufderhaar -- Chief Financial Officer
We may have some small charges related to it just because we're still closing out the warehouses that we had identified before, but nothing very material to call out. And also, Kunal, on the active client, just one more point on the active clients, you know, just to clarify, the quarter-over-quarter in Q2, we expect the decline to be similar from a percentage standpoint, slightly higher negative from a percentage standpoint than what we saw this quarter.
Kunal Madhukar -- UBS -- Analyst
Got it. Thank you so much.
Matt Baer -- Chief Executive Officer
Yeah.
Operator
Thank you. [Operator signoff]
Duration: 0 minutes
Call participants:
Hayden Blair -- Senior Director of Investor Relations and Treasury
Matt Baer -- Chief Executive Officer
David Aufderhaar -- Chief Financial Officer
Youssef Squali -- Truist Securities
Aneesha Sherman -- Bernstein Research -- Analyst
Kunal Madhukar -- UBS -- Analyst
More SFIX analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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We expect both Q2 and full year gross margin to be approximately 43% to 44% as we continue to drive improvement in our inventory position with a higher percentage of private brands and ongoing efficiencies in our transportation costs. This guidance still assumes we'd be free cash flow positive for the full year, though we do expect Q2 to be negative due to the timing of working capital requirements related to inventory purchases. Is there still some adverse selection from Freestyle-first clients that you're now seeing churning out before your base is healthy or why do you expect the net adds number to continue to be negative while you're seeing all of these retention metrics start to improve?
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We expect both Q2 and full year gross margin to be approximately 43% to 44% as we continue to drive improvement in our inventory position with a higher percentage of private brands and ongoing efficiencies in our transportation costs. And importantly, we just continue to have this very strong perspective that a continued focus on the healthy foundation and healthy client franchise, that will unlock sustainable profitable growth in the future and ensure that when that inflection point occurs, we will be set up for long-term profitable growth. [Operator signoff] Duration: 0 minutes Call participants: Hayden Blair -- Senior Director of Investor Relations and Treasury Matt Baer -- Chief Executive Officer David Aufderhaar -- Chief Financial Officer Youssef Squali -- Truist Securities Aneesha Sherman -- Bernstein Research -- Analyst Kunal Madhukar -- UBS -- Analyst More SFIX analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool.
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Hayden Blair -- Senior Director of Investor Relations and Treasury Good afternoon and thank you for joining us today for the Stitch Fix first quarter fiscal 2024earnings call With me on the call are Matt Baer, chief executive officer; and David Aufderhaar, chief financial officer. We have our marketing team that's really working hard to find the right balance between upper funnel, brand-driven messaging that creates the right awareness and consideration for potential clients that we onboard into the system such that they have an understanding of the service, they demonstrate interest, and when we get them into the onboarding funnel and they become a client of ours, they have a high intent and a high knowledge and level of interest in the service and are more likely to become not just a client that has a first fix shipped to them but has a subsequent and then the third fix and so forth. [Operator signoff] Duration: 0 minutes Call participants: Hayden Blair -- Senior Director of Investor Relations and Treasury Matt Baer -- Chief Executive Officer David Aufderhaar -- Chief Financial Officer Youssef Squali -- Truist Securities Aneesha Sherman -- Bernstein Research -- Analyst Kunal Madhukar -- UBS -- Analyst More SFIX analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool.
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Hayden Blair -- Senior Director of Investor Relations and Treasury Good afternoon and thank you for joining us today for the Stitch Fix first quarter fiscal 2024earnings call With me on the call are Matt Baer, chief executive officer; and David Aufderhaar, chief financial officer. We do that to ensure our investment acquires high lifetime value clients. [Operator signoff] Duration: 0 minutes Call participants: Hayden Blair -- Senior Director of Investor Relations and Treasury Matt Baer -- Chief Executive Officer David Aufderhaar -- Chief Financial Officer Youssef Squali -- Truist Securities Aneesha Sherman -- Bernstein Research -- Analyst Kunal Madhukar -- UBS -- Analyst More SFIX analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool.
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