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2021-07-07 00:00:00 UTC
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Hot Stock or Hot Air: Analyzing the Virgin Galactic Battle
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DE
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https://www.nasdaq.com/articles/hot-stock-or-hot-air%3A-analyzing-the-virgin-galactic-battle-2021-07-07
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you want drama, Virgin Galactic (NYSE:SPCE) stock has it all.
Source: rafapress / Shutterstock.com
The company claims to be pioneering a new industry in space tourism. It has numerous prominent investors and a solid management team. A special purpose acquisition company (SPAC) with a celebrity financier took it public.
Short sellers saw all this and declared the company to be a sham. The SPCE stock chart has resembled a spaceflight too, with numerous rocket launches and harrowing declines.
The Virgin Galactic saga entered another exciting arc over the past month. Short sellers slammed the company once again, raising questions about the company’s basic business model. But then the firm struck back, securing pivotal Federal Aviation Agency clearance for its flights. This sent SPCE stock to the stratosphere.
7 Top-Rated REITs to Buy Today
But will it be heading toward a crash landing? Here’s the state of the SPCE stock controversy as it stands today.
FAA Clearance: Big Deal or Big Whoop?
Last Friday, the FAA gave Virgin Galactic the go-ahead on its application for a commercial launch license. This was a pivotal development for the company, and the stock shot up 39% in a single day on the news. Great, right?
However, bears say this is an overreaction. Virgin Galactic would have essentially worthless without an operating license. So, it was already largely priced into the stock that it would eventually gain FAA approval. If traders weren’t worried about actually securing the FAA license, then this was more of a formality than a game-changer.
Time will tell which interpretation ends up being right. However, don’t be surprised if the stock dips a bit on profit-taking; that’s only natural after a 39% one-day move.
Niche Product Or Mass Market Winner?
A key disagreement lies at the heart of the SPCE stock debate. The bulls believe Virgin Galactic represents a bold step toward the final frontier. People have a longing to see something bigger than this present world, and Virgin Galactic’s space tourism offering gives humanity a glimpse of something beyond this mortal coil.
The bears, by contrast, say Virgin Galactic is an incredibly niche product that doesn’t really scratch the space itch. Bears note that the Virgin Galactic product will only take customers into the air for a few minutes and fail to reach beyond the actual limits of space as it is often defined. The customer will only spend a few minutes on average in a weightless state.
Investors that haven’t done deep diligence on Virgin Galactic might think the company’s product offering is much more robust than it actually is. The product isn’t like going to the moon or even the space station. It’s a ride maybe 50 miles up into for the air, spend a few minutes in zero gravity, and then right back to earth.
Bears argue this doesn’t come close to justifying the price tag, time, or safety risk that goes into buying a Virgin Galactic experience. Indeed, if the critics are right, Virgin Galactic’s product might be more akin to the world’s most expensive roller coaster than actual space tourism.
Competitor To SpaceX Or Different Beast?
Bears suggest that much of Virgin Galactic’s value might be coming because investors think they are investing in SpaceX rather than Virgin Galactic. The SPCE stock ticker could easily cause investors to expect some affiliation with SpaceX after all.
The thing is, these are actually very different businesses. Space-X designs and builds rockets and launch equipment. Its founder, Elon Musk, is eventually aiming to colonize Mars in large part with equipment and technical know-how from Space-X. Virgin Galactic, by contrast, is a tourism company focusing on taking people into brief flights that never go far from Earth. Both the business model and level of technical capability required to run these businesses is quite different.
This leads to an interesting point when analyzing SPCE stock. It’s fundamentally seeking to accomplish something quite different from SpaceX or Jeff Bezos’ Blue Origin. The fact that Virgin Galactic hired a Disney (NYSE:DIS) executive to be its CEO is a huge hint there.
So, will investors will treat Virgin Galactic as its own entity, or just lump it with the space colonization and exploration theme in general?
Insider Selling: Natural Or Alarming?
That last point ties into another bearish argument: notable selling. We have to start this discussion with Cathie Wood. She launched her latest sector fund, the ARK Space Exploration & Innovation ETF (BATS:ARKX). When it launched, it held a position in SPCE stock, as you’d expect for such an ETF. However, the ARKX fund sold its SPCE stock in May.
Incredibly, while Wood now owns no Virgin Galactic, she does own Netflix (NASDAQ:NFLX) and John Deere (NYSE:DE) in her space exploration fund. That’s not a great sign of confidence in Virgin Galactic, running a high-profile space fund and deciding to sell Virgin Galactic to double down on tractors and Netflix. Wood didn’t sell her position at the highs either, rather she was selling back when SPCE stock was in the $20s.
Ark Investments isn’t the only notable seller of SPCE stock either. Chamath Palihapitiya sold a notable chunk of his SPCE stock exposure at much lower prices. In addition, Virgin Galactic itself has been raising money by issuing stock on various occasions. With these sales all occurring well south of the current share price, it casts some doubt on the present valuation.
On the other hand, bulls can rightly say some of the stock sales make sense. Ark’s selling is an ugly look, no doubt. But Palihapitiya is running a zillion different SPACs, it’s not surprising that he would want to harvest gains from one of his more successful deals to reinvest elsewhere. And Virgin Galactic needs a ton of capital to get to full commercialization, so raising money is natural, even if it could have been timed better.
SPCE Stock Verdict
Buy low, sell high. It’s a simple adage, but it’s based in a real truth. You often make money fading the consensus. SPCE stock has dipped back to $20 on numerous occasions in recent months. Each purchase there would have been highly profitable with patience.
Meanwhile, Virgin Galactic stock has tended to witness sharp falls each time it gains too much altitude. When the crowd is most excited about SPCE stock, that’s generally a good time to cash in some chips. And when it dips, that’s the time to add some exposure.
I find a decent chunk of the bearish argument compelling. As such, I certainly wouldn’t be a buyer of SPCE stock up in the $50s. That said, I’ve been bullish on it at lower levels, particularly after the company hired a Disney executive to run the firm. Virgin Galactic probably won’t beat SpaceX in the big picture, but it might not need to; there’s potentially quite a niche for theme-park styled suborbital space tourism.
On the date of publication, Ian Bezek 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.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
The post Hot Stock or Hot Air: Analyzing the Virgin Galactic Battle 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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Bears note that the Virgin Galactic product will only take customers into the air for a few minutes and fail to reach beyond the actual limits of space as it is often defined. Short sellers saw all this and declared the company to be a sham. The SPCE stock chart has resembled a spaceflight too, with numerous rocket launches and harrowing declines.
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Short sellers saw all this and declared the company to be a sham. The SPCE stock chart has resembled a spaceflight too, with numerous rocket launches and harrowing declines. Short sellers slammed the company once again, raising questions about the company’s basic business model.
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That’s not a great sign of confidence in Virgin Galactic, running a high-profile space fund and deciding to sell Virgin Galactic to double down on tractors and Netflix. Short sellers saw all this and declared the company to be a sham. The SPCE stock chart has resembled a spaceflight too, with numerous rocket launches and harrowing declines.
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Short sellers slammed the company once again, raising questions about the company’s basic business model. Short sellers saw all this and declared the company to be a sham. The SPCE stock chart has resembled a spaceflight too, with numerous rocket launches and harrowing declines.
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23c94e00-7206-41ac-a7e6-025089c9d664
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721501.0
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2021-07-06 00:00:00 UTC
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EXCLUSIVE-Biden sides with farmers over 'Right to Repair' tractor software battle
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DE
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https://www.nasdaq.com/articles/exclusive-biden-sides-with-farmers-over-right-to-repair-tractor-software-battle-2021-07-0
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By David Shepardson and Diane Bartz
WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday.
Biden's planned executive order on competition, expected to be released in the coming days, will encourage the FTC to address the issue, the source said. Some tractor manufacturers like Deere & Co DE.N use proprietary repair tools and software to prevent third parties from performing some repairs. Deere and the FTC did not immediately comment.
The FTC wrote a report for Congress in May that discussed "Right to Repair," which addresses the issue of limits that manufacturers put on who can repair items ranging from mobile phones to home appliances to cars. Those limits may also raise the price of those repairs.
The source noted the scope of any "Right to Repair" rules would be set by the FTC.
Biden separately plans to direct the U.S. Agriculture Department (USDA) to write a series of rules to increase competition in agricultural industries, including one under the Packers and Stockyards Act making it easier for farmers to bring claims and adopt anti-retaliation protections for farmers who raise concerns about bad practices, the source said.
Biden will also direct USDA to issue new rules defining when meat can bear “Product of USA” labels. Under current labeling rules, meat can be labeled “Product of USA” if it processed in the United States —including when meat is raised overseas and then processed into cuts of meat at a U.S. facility.
Biden's sweeping competition order will address issues across the economy, from directing new rules on delayed airline baggage to even addressing Department of Defense contracts and cell phones, the source told Reuters.
The FTC said that repairs were frequently limited by product design that makes repairs more difficult or less safe, disparagement of parts not made by the original manufacturer and license agreements.
The source said Biden and USDA "believe farmers should have the right to repair their own equipment how they like."
Jahmy Hindman, chief technology officer at John Deere, told the Verge in an interview last month that "98% of the repairs that customers want to do on John Deere products today, they can do."
He defended the decision to restrict repairs related to software, saying if owners modified diesel engine software it could impact emissions or other changes that could impact safety.
"Do you really want a tractor going down the road with software on it that has been modified for steering or modified for braking in some way that might have a consequence that nobody thought of?"
There is also a bill before Congress, the Fair Repair Act, which would allow the FTC to penalize companies which block consumers from repairing products by limiting access to replacement parts.
(Reporting by David Shepardson and Diane Bartz Editing by Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and 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 David Shepardson and Diane Bartz WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday. Biden's planned executive order on competition, expected to be released in the coming days, will encourage the FTC to address the issue, the source said. Biden separately plans to direct the U.S. Agriculture Department (USDA) to write a series of rules to increase competition in agricultural industries, including one under the Packers and Stockyards Act making it easier for farmers to bring claims and adopt anti-retaliation protections for farmers who raise concerns about bad practices, the source said.
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Biden separately plans to direct the U.S. Agriculture Department (USDA) to write a series of rules to increase competition in agricultural industries, including one under the Packers and Stockyards Act making it easier for farmers to bring claims and adopt anti-retaliation protections for farmers who raise concerns about bad practices, the source said. Biden will also direct USDA to issue new rules defining when meat can bear “Product of USA” labels. Under current labeling rules, meat can be labeled “Product of USA” if it processed in the United States —including when meat is raised overseas and then processed into cuts of meat at a U.S. facility.
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By David Shepardson and Diane Bartz WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday. The FTC said that repairs were frequently limited by product design that makes repairs more difficult or less safe, disparagement of parts not made by the original manufacturer and license agreements. Biden's planned executive order on competition, expected to be released in the coming days, will encourage the FTC to address the issue, the source said.
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Some tractor manufacturers like Deere & Co DE.N use proprietary repair tools and software to prevent third parties from performing some repairs. Biden will also direct USDA to issue new rules defining when meat can bear “Product of USA” labels. Biden's sweeping competition order will address issues across the economy, from directing new rules on delayed airline baggage to even addressing Department of Defense contracts and cell phones, the source told Reuters.
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af623df8-f4c6-49c2-976e-bbc6c2ee1bbc
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721502.0
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2021-07-06 00:00:00 UTC
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EXCLUSIVE-Biden sides with farmers over 'Right to Repair' tractor software battle
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DE
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https://www.nasdaq.com/articles/exclusive-biden-sides-with-farmers-over-right-to-repair-tractor-software-battle-2021-07-06
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nan
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nan
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WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday.
Biden's planned executive order on competition will encourage the FTC to address the issue, the source said. Some tractor manufacturers like Deere & Co DE.N use proprietary repair tools and software to prevent third parties from performing some repairs. Deere did not immediately comment.
(Reporting by David Shepardson Editing by Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday. Biden's planned executive order on competition will encourage the FTC to address the issue, the source said. Some tractor manufacturers like Deere & Co DE.N use proprietary repair tools and software to prevent third parties from performing some repairs.
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WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday. Some tractor manufacturers like Deere & Co DE.N use proprietary repair tools and software to prevent third parties from performing some repairs. Biden's planned executive order on competition will encourage the FTC to address the issue, the source said.
|
WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday. Some tractor manufacturers like Deere & Co DE.N use proprietary repair tools and software to prevent third parties from performing some repairs. Biden's planned executive order on competition will encourage the FTC to address the issue, the source said.
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WASHINGTON, July 6 (Reuters) - U.S. President Joe Biden wants the Federal Trade Commission to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or complete some repairs on their own, a source briefed on the matter told Reuters Tuesday. Biden's planned executive order on competition will encourage the FTC to address the issue, the source said. Some tractor manufacturers like Deere & Co DE.N use proprietary repair tools and software to prevent third parties from performing some repairs.
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8847955f-2a8f-4b7e-8e9d-768fb447cea7
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721503.0
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2021-07-06 00:00:00 UTC
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No Matter How ‘Techy’ Tractor Maker Deere Might Seem, It’s No Tech Stock
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DE
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https://www.nasdaq.com/articles/no-matter-how-techy-tractor-maker-deere-might-seem-its-no-tech-stock-2021-07-06
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE:DE) is not a tech company. It’s not a growth company. It’s a tractor company. To an investor this means DE stock is a a cyclical company. Right now, the business cycle is with it. But that doesn’t mean you value it like it always will be.
Source: Deere & Company
Investors just learned this lesson the hard way. Deere stock rolled over after earning $1.78 billion, $5.68 per share, on revenue of $12 billion for the quarter ending in April. Sales were up 34% over a year earlier, and the number beat analyst estimates by 25%.
7 A-Rated Growth Stocks to Buy That Are Ready for More
Since then, shares of Deere have sputtered, losing 2% while the S&P 500 index is up 2%. It traded below $325 a share on June 17 but went into the Fourth of July holiday at $352.50. That’s a market cap of $110 billion and a price-to-earnings ratio of 24.3.
DE Bulls Show ‘Nothing Runs Like a Deere’
Those who are bullish on DE stock, like CNBC analyst Jim Cramer, say it’s just at the start of a new growth cycle, one that has “more legs” than previous ones. Kinda reminds me of the equipment maker’s iconic “Nothing Runs Like a Deere” motto.
But that’s not what the stock’s chart says. Shares peaked at $394 soon after Deere raised its dividend, to 90 cents a share. This was on the back of steady hype by analysts. There are 13 out of 19 analysts who have the buy light out, with a price target that’s 20.5% higher than the July 2 close.
One Deere bull calls it the “Tesla (NASDAQ:TSLA) of farming.” The stock is 2.54% (13 of 47 stocks) of Cathie Woods’ ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) as well as the ARK Space Exploration and Innovation ETF (BATS:ARKX) (1.53%, at 24 of 40) . This last led one wag to show a Deere tractor as a spaceship taking off, and Deere itself to tweet a picture of a tractor being captured by an alien spaceship.
Deere is serious about the tech story. It’s putting out Jahmy Hindman, who has been chief technology office for a year, to say tout that the equipment maker employs more software engineers than mechanical ones.
Bears Are Lurking
Deere isn’t the only company putting more chips into tractors. Its rivals are on top of the trend, too.
CNH Industrial (NYSE:CNHI), spun-out of Fiat in 2012 with brands including Case and New Holland, is buying Raven Industries (NASDAQ:RAVN). The idea of their tech is to treat each plant as a separate data point and customize its care.
AGCO (NYSE:AGCO), which owns Massey Ferguson, is pushing a German-made line called Fendt, which has been taking market share from Deere.
The entire tractor market was worth $60.3 billion in 2020 and is growing at 4.4% per year. China is the fastest-growing market, but that country is intent on domestic equipment. Within North America, Mexico is the fastest-growing market.
This means there’s a limited opportunity for the fancy tractors and combines Deere and its main rivals are pushing. Much of the industry’s growth remains with small farms just now becoming mechanized.
The Bottom Line
Reporters pounced on word that Bill Gates gave his wife Melinda $850 million in DE stock as part of their divorce settlement. The value of those shares has fallen 9% since the story came out.
None of this is to disparage Deere, its products, plans or short-term prospects. The farm equipment sector seems to be at the start of a growth cycle. But Deere won’t get all that growth and the market’s growth is not all at the leading edge.
To be sure, Deere is the General Motors (NYSE:GM) of tractors, not the Tesla. Not that there’s anything wrong with that. GM is up 50% in the first half of 2021. Just don’t bet on Deere going to the moon, either. See it for what it is.
On the date of publication, Dana Blankenhorn 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.
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. Write him at danablankenhorn@gmail.com or tweet him at @danablankenhorn. He writes a Substack newsletter, Facing the Future, which covers technology, markets, and politics.
The post No Matter How ‘Techy’ Tractor Maker Deere Might Seem, It’s No Tech 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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The Bottom Line Reporters pounced on word that Bill Gates gave his wife Melinda $850 million in DE stock as part of their divorce settlement. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE:DE) is not a tech company. To an investor this means DE stock is a a cyclical company.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE:DE) is not a tech company. One Deere bull calls it the “Tesla (NASDAQ:TSLA) of farming.” The stock is 2.54% (13 of 47 stocks) of Cathie Woods’ ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) as well as the ARK Space Exploration and Innovation ETF (BATS:ARKX) (1.53%, at 24 of 40) . This last led one wag to show a Deere tractor as a spaceship taking off, and Deere itself to tweet a picture of a tractor being captured by an alien spaceship.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE:DE) is not a tech company. DE Bulls Show ‘Nothing Runs Like a Deere’ Those who are bullish on DE stock, like CNBC analyst Jim Cramer, say it’s just at the start of a new growth cycle, one that has “more legs” than previous ones. This last led one wag to show a Deere tractor as a spaceship taking off, and Deere itself to tweet a picture of a tractor being captured by an alien spaceship.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE:DE) is not a tech company. To an investor this means DE stock is a a cyclical company. Source: Deere & Company Investors just learned this lesson the hard way.
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347654fe-56b0-4dd2-96f2-5477cda76760
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721504.0
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2021-07-02 00:00:00 UTC
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Top 5 Dividend Growth Stocks to Buy in July
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DE
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https://www.nasdaq.com/articles/top-5-dividend-growth-stocks-to-buy-in-july-2021-07-02
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nan
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Have you heard of the magic of compound interest? It's been called the eighth wonder of the world, and it can be an extremely powerful wealth-creation tool. Compounding allows a sum of money to grow faster than simple interest since you are earning returns on top of returns. By investing in dividend stocks and reinvesting your dividends, also known as a dividend reinvestment plan (DRIP), you can harness the power of compounding.
Although I generally focus on growth stocks, my heart has a soft spot for dividend growth investing, and a portion of my portfolio is dedicated to dividend stocks. In fact, "FIRED" in FIRED Up Wealth is an acronym meaning "Financial Independence Retire Early w/Dividends." Traditional dividend growth investing, also known as DGI, is geared toward the growth of the dividend annually to outpace inflation. DGI is often used by income investors, especially in retirement or early retirement.
I like to focus on what I call "Dividend Growth Investing for FIRED stocks," also called DGIF stocks. This is a term I created to identify stocks focused on total growth, meaning the growth of both the dividend and the appreciation of the share price. Here are my general guidelines for DGIF stocks:
A 3% dividend or less in most cases. You want this low. Dividend yield is good, but you want the company to have cash to invest in growth of the company as well.
A low dividend payout ratio of 50% or less, and the lower the better. I usually prefer 35% or less.
Five years of dividend growth or more. The more consecutive years, the better.
At least 10% growth in that five-year period, and the more the better.
Ten-year annualized growth of 10% or more per year. Of course, the higher the better.
These metrics help ensure total growth for your investing portfolio. Of course, additional analysis and due diligence is required before making any investment decisions. In the below video, I provide my top DGIF stocks to buy now for July 2021, as well as high-level analysis. Stocks like Apple (NASDAQ: AAPL), John Deere (NYSE: DE), Lam Research (NASDAQ: LRCX), and more! Watch to see the other picks -- plus a bonus stock -- and why I think these stocks are reasonably priced to buy now.
*This video was published on July 1.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Eric Cuka owns shares of Apple, Deere & Company, and Lam Research. The Motley Fool owns shares of and recommends Activision Blizzard, Apple, and Lam Research. The Motley Fool recommends Brunswick and Logitech International and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric 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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In the below video, I provide my top DGIF stocks to buy now for July 2021, as well as high-level analysis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. It's been called the eighth wonder of the world, and it can be an extremely powerful wealth-creation tool.
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I like to focus on what I call "Dividend Growth Investing for FIRED stocks," also called DGIF stocks. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Eric Cuka owns shares of Apple, Deere & Company, and Lam Research. It's been called the eighth wonder of the world, and it can be an extremely powerful wealth-creation tool.
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By investing in dividend stocks and reinvesting your dividends, also known as a dividend reinvestment plan (DRIP), you can harness the power of compounding. Although I generally focus on growth stocks, my heart has a soft spot for dividend growth investing, and a portion of my portfolio is dedicated to dividend stocks. I like to focus on what I call "Dividend Growth Investing for FIRED stocks," also called DGIF stocks.
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I like to focus on what I call "Dividend Growth Investing for FIRED stocks," also called DGIF stocks. Five years of dividend growth or more. In the below video, I provide my top DGIF stocks to buy now for July 2021, as well as high-level analysis.
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d2ff659f-623b-4438-a8c1-295be0c01f1d
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721505.0
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2021-06-30 00:00:00 UTC
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7 Stocks to Buy That Look Cheap Based on Their Cash Flows
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DE
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https://www.nasdaq.com/articles/7-stocks-to-buy-that-look-cheap-based-on-their-cash-flows-2021-06-30
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffet’s famous quote “Cash Is King” emphasizes the importance of a company’s value. The argument is that strong cash flows both increase a company’s growth prospects and provide a higher intrinsic value to the stock. In today’s article, we’re covering companies with outstanding cash flow. I’ve selected a mix of stocks to buy that provide prospects for dividends, deep value, and growth.
The market’s getting rid of a bit of froth, and investors must opt for high-quality stocks moving forward. I believe that good earnings make good companies, and good companies make good stocks.
7 Triple A-Rated Stocks to Buy for the Second Half of 2021
Let’s get into my seven stocks to buy, and I hope you all enjoy the read!
International Business Machines (NYSE:IBM)
Pool Corporation (NASDAQ:POOL)
Target Corporation (NYSE:TGT)
Deere & Company (NYSE:DE)
Crocs, Inc. (NASDAQ:CROX)
ROKU, Inc. (NASDAQ:ROKU)
Hibbett, Inc. (NASDAQ:HIBB)
Stocks to Buy: International Business Machines (IBM)
Source: JHVEPhoto / Shutterstock.com
IBM has done well in increasing its operating efficiency through both productivity gains and growth acquisitions. The company is well positioned to benefit from cloud uptake, and the acquisition of Red Hat will assist with synergies in the hybrid cloud market. A quality patent portfolio and the company’s blockchain, security and other digital transformation products provide prospects for sustainability.
Due to strong cash flows, IBM can be both a dividend and a value play at the moment. A five-year average free cash flow yield of 10.3% beats the sector median of 1.1%. IBM has predominantly used its cash to repurchase shares as well as pay attractive dividends. IBM’s dividend yields 4.5%, and the company’s paying out 60% of its net income.
Based on a multiples valuation, the stock is set for tremendous upside. The forward P/E multiple implies a price target of $283.55, while the intrinsic value based on free cash flows suggests a $212.77 price target. Wall Street has a more modest outlook, with Bank of America being the latest to release a report with a $175 12-month price target.
In my opinion, big banking analysts are often behind the curve and will probably revise their targets upward as the company continues to produce strong EPS.
Pool Corporation (POOL)
Click to Enlarge
Source: Chart by Gurufocus
Being the world’s leading distributor of pool equipment says a lot about the efficiency of the company. Pool Corp has expanded well the past year, with 57% year-over-year growth in overall sales.
In addition, The company has also acquired additional distribution centers in New York, New Jersey, Texas and Florida in the past year.
Pool’s free cash flow of $284.9 million is at its highest since 2009. Share repurchases accompanied by strong operating cash flows have resulted in an increase in free cash flow yield.
Goldman Sachs set a $535 price target on the stock last month. Pool Corp’s residual to investors has consistently increased over the years, and in May, it decided to increase its quarterly dividend by 38%, subsequently pushing the forward yield up to 0.74%. Pool is an underfollowed stock with a high-quality business model.
7 of the Hottest Energy Stocks to Buy This Summer
I think factors such as the company’s increasing cash flows and profitability, the low number of shares outstanding, and repurchase programs make it cheap at the moment.
Stocks to Buy: Target Corporation (TGT)
TGT) logo on a storefront." width="300" height="169">
Source: jejim / Shutterstock.com
Earlier this month, Target increased its quarterly dividend by an astronomical rate of 32.4%. Target’s cash from operations has increased nearly 50% year over year to $10.5 billion. Aspects such as an omnichannel strategy, same-day delivery, and brand creation have served the company well of late. The company’s Q1 comparable sales for in-store purchases were up 18% while digitally-oriented rose 50.2%, implying that they’ve balanced in-store and online shopping well.
A free cash flow yield of 8.7% exceeds the industry average of 3.5%. Target’s been repurchasing shares aggressively over recent years, which has maximized shareholder value.
The stock is undervalued according to relative valuation metrics. I think the stock’s cheap due to the current share buyback program and EPS consensus being positive. I also believe that dividend investors can’t go wrong with a stock that’s been paying out a dividend for 53 consecutive years at a five-year growth rate of 3.96%.
Deere & Company (DE)
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Source: Chart by GuruFocus
Despite a recent pullback, I still believe that Deere stock is highly inexpensive. Increased productivity in the farming and construction industries will most probably lead to higher profits for Deere. From a long-term perspective, further market share is anticipated, since the company is growing rapidly in precision farming and tapping into underserved markets.
In last quarter’s earnings report, Deere’s unlevered free cash flow nearly doubled year over year. A 5.6% free cash flow yield along with a forward dividend growth rate of 1.01% adds to my optimism.
According to Evercore, the stock could reach $455 per share within the next 12 months. Dividends have increased at a five-year rate of 6.7%.
7 Stocks to Buy From the 'Goldman Sachs Renewable Energy Picks' List
Dividend investors should pay attention, as net income is at its highest point in seven years; I expect dividend growth to persist.
Stocks to Buy: Crocs (CROX)
CROX) store in Chiang Mai, Thailand." width="300" height="169">
Source: Wannee_photographer / Shutterstock.com
It has not just been Crocs products that have returned to fashion of late — the stock has as well. Crocs stock has beaten the S&P 500 by nearly six times over the past year.
The company’s growth in both online and in-stores sales has surged of late, with its latest earnings release reporting a 64% year-over-year growth rate in revenue. Its operating income has increased by 22.83% since 2015 due to increases in asset and inventory management efficiency.
Crocs doesn’t pay a dividend, but it holds significant value and growth prospects. The free cash flow has increased by $109.30 million year-over-year. Piper Sandler recently placed a $140 price target on the stock.
Roku (ROKU)
Source: JHVEPhoto / Shutterstock.com
Roku’s performance has been labeled a lockdown anomaly by many, but I believe in its longevity.
Roku’s user growth had increased gradually prior to the pandemic, and the lockdown period was just what the stock needed to really get going. Deutsche Bank sees secular gains ahead for ROKU due to its market positioning and predicted sustainability in online streaming.
ROKU turned in a net profit during the last quarter worth $113.4 million.
10 Best Stocks to Buy to Build Up Passive Income Streams
If the company looks for acquisitions for growth purposes with its residual, it will continue to produce impressive cash flows. The stock returns will be bound to ROKU’s ability to maintain market share and the synergies it adds to its arsenal.
Stocks to Buy: Hibbett (HIBB)
Source: LisaCarter / Shutterstock.com
The last stock I’m covering today is Hibbett. Hibbett is a very underrated company and stock, in my opinion. The sports apparel retailer has targeted underserved locations since 1945. The company has managed to open more than a thousand stores across the United States in high-growth areas.
Central to the company’s recent growth has been e-commerce development, selective store expansion, and its customer loyalty programs.
Hibbett’s has a 5-year free cash flow yield of 16.5%. The company’s managed to increase its cash by an impressive $164.6 million in the past quarter.
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Source: Chart by Gurufocus
The company is tremendously shareholder-driven with constant share repurchases since 2005. Hibbett announced in May that it would increase its share repurchase program by $500 million; the extension is authorized until February 2025.
Hibbett’s already gained north of 300% over the past year, but I don’t think that investors should cash in their profits just yet. The stock’s still trading well below its peers on key multiples. The stock’s P/E ratio is still below its five-year average, which is an indicator of relative value.
Hibbett is still a buy with a $110 price target, according to Bank of America.
All of the stocks in this article hold value based on cash flow and should perform well under efficient market circumstances. I’d recommend that investors diversify a portfolio by adding at least a few cash flow-driven stocks to their major holdings. If you have any questions regarding my picks, feel free to contact me directly!
On the date of publication, Steve Booyens was long POOL and HIBB. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for equity research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa, and his articles are published on various reputable web pages such as Seeking Alpha, Benzinga, Gurufocus, and Yahoo Finance. Steve’s content for InvestorPlace includes stock recommendations, with occasional articles on crowdfunding, cryptocurrency, and ESG.
The post 7 Stocks to Buy That Look Cheap Based on Their Cash Flows 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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Deutsche Bank sees secular gains ahead for ROKU due to its market positioning and predicted sustainability in online streaming. The argument is that strong cash flows both increase a company’s growth prospects and provide a higher intrinsic value to the stock. I’ve selected a mix of stocks to buy that provide prospects for dividends, deep value, and growth.
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International Business Machines (NYSE:IBM) Pool Corporation (NASDAQ:POOL) Target Corporation (NYSE:TGT) Deere & Company (NYSE:DE) Crocs, Inc. (NASDAQ:CROX) ROKU, Inc. (NASDAQ:ROKU) Hibbett, Inc. (NASDAQ:HIBB) Stocks to Buy: International Business Machines (IBM) Source: JHVEPhoto / Shutterstock.com IBM has done well in increasing its operating efficiency through both productivity gains and growth acquisitions. The argument is that strong cash flows both increase a company’s growth prospects and provide a higher intrinsic value to the stock. I’ve selected a mix of stocks to buy that provide prospects for dividends, deep value, and growth.
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The argument is that strong cash flows both increase a company’s growth prospects and provide a higher intrinsic value to the stock. International Business Machines (NYSE:IBM) Pool Corporation (NASDAQ:POOL) Target Corporation (NYSE:TGT) Deere & Company (NYSE:DE) Crocs, Inc. (NASDAQ:CROX) ROKU, Inc. (NASDAQ:ROKU) Hibbett, Inc. (NASDAQ:HIBB) Stocks to Buy: International Business Machines (IBM) Source: JHVEPhoto / Shutterstock.com IBM has done well in increasing its operating efficiency through both productivity gains and growth acquisitions. I’ve selected a mix of stocks to buy that provide prospects for dividends, deep value, and growth.
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International Business Machines (NYSE:IBM) Pool Corporation (NASDAQ:POOL) Target Corporation (NYSE:TGT) Deere & Company (NYSE:DE) Crocs, Inc. (NASDAQ:CROX) ROKU, Inc. (NASDAQ:ROKU) Hibbett, Inc. (NASDAQ:HIBB) Stocks to Buy: International Business Machines (IBM) Source: JHVEPhoto / Shutterstock.com IBM has done well in increasing its operating efficiency through both productivity gains and growth acquisitions. A 5.6% free cash flow yield along with a forward dividend growth rate of 1.01% adds to my optimism. The argument is that strong cash flows both increase a company’s growth prospects and provide a higher intrinsic value to the stock.
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2021-06-29 00:00:00 UTC
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3 Stocks This Top Hedge Fund Manager Has Been Buying
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https://www.nasdaq.com/articles/3-stocks-this-top-hedge-fund-manager-has-been-buying-2021-06-29
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Leading hedge fund manager Ole Andreas Halvorsen of Viking Global Investors bought more stock in industrial companies Deere (NYSE: DE) and Fortive (NYSE: FTV) and elevator and escalator company Otis (NYSE: OTIS) earlier in the year, according to SEC filings.
Halvorsen is a highly successful long/short stock picker and his firm currently manages $44 billion in assets, having notably managed a portfolio that finished flat in 2008, the same year that the S&P 500 index fell nearly 40%.
A quick look at the performance of the three industrial stocks reveals that Fortive has underperformed the S&P 500, while Deere and Otis have outperformed.
Year-to-date performance
Data by YCharts.
That said, should investors, follow Halvorsen and his hedge fund into these stocks now? Let's take a closer look at these three companies.
1. Fortive
Let's start with Fortive. The underperformance of this stock is somewhat surprising, as its mix of industrial business gives it cyclical exposure to the improving economy. Moreover, management already hiked full-year adjusted diluted EPS guidance from the range of $2.40-$2.55 given in February to $2.50-$2.60 in April.
Perhaps one reason for the underperformance is because Fortive isn't the easiest company to understand. Around 40% of its revenue comes from its intelligent operating solutions (IOS) segment; the largest business within it is electronic test and measurement company Fluke. As such, the IOS is a play on the growth of automation and digitization and the need to ensure safety and reliability -- not least to meet regulatory requirements in the industrial economy.
Image source: Getty Images.
Precision technologies (PT) generates 35% of revenue and makes products that help engineers develop new electrical and electronic products. Key customers read like a who's who of the major industrial companies, including GE, Siemens, Apple, Samsung, and Lockheed Martin. Management sees a growth opportunity from its customers developing internet of things (IoT) and automation solutions. Finally, advanced healthcare solutions (AHS) helps hospitals deliver healthcare. Its largest business is an infection prevention business, ASP.
Fortive has powerful tailwinds behind it. The collection of business that CEO Jim Lico has built up over the years generates a 58% gross profit margin and 23% profit margin while converting 18% of revenue into free cash flow (FCF). Lico believes a combination of mid-single-digit percentage revenue growth and margin expansion could lead to $1.6 billion in free cash flow (FCF) in five years -- equivalent to around 6.8% of the company's market cap. That would be an attractive valuation, but a lot can happen in five years.
On balance, Fortive is a very attractive company -- but trading at 27 times estimated 2021 earnings, it's hard to argue the stock is a compelling value right now.
2. Deere
This industrial company can do no wrong in 2021. If it isn't a recovery in key crop prices driving spending on agricultural machinery, it's the ongoing growth in adopting Deere's precision agriculture solutions. If it isn't the housebuilding boom encouraging Deere's construction and forestry equipment sales, it's the promise of a boost in infrastructure spending for Deere's roadbuilding equipment. Meanwhile, Deere's core U.S. agricultural equipment is primed for a replacement cycle due to the advanced age of the fleet.
Image source: Getty Images.
Deere is firing on all cylinders right now, and Halvorsen's investment has probably paid off handsomely. Still, the question is whether the stock is still a good value now. On balance, I think the answer is yes. Crop prices continue to rise, and industry dynamics look favorable given U.S. soybean exports to China. In addition, Deere's precision agriculture solutions help raise the price of Deere's agriculture equipment, and the tangible improvements they provide to farmers will help keep them loyal to the iconic brand.
It's tough to predict where crop prices will go -- but if you assume they stay where they are now, then Deere's underlying conditions still look favorable.
3. Otis
One of the three new companies created out of the breakup of United Technologies, Otis is the world's leading escalator and elevator company. Given that China is the world's largest end market for escalators and elevators, the country looms large in Otis' end-market prospects.
The second growth opportunity comes from growing the company's higher-margin services revenue through technology that helps it differentiate itself from the competition. For example, Otis continues to equip its service personnel with mobile devices that help identify problems and quickly order replacement parts. Meanwhile, using web-enabled devices on installed Otis equipment allows the company to monitor and respond quickly when servicing remotely. This creates added value to customers, keeps them loyal, and adds to Otis' service revenue -- and services, rather than equipment, tend to generate 80% of Otis' profits.
Image source: Getty Images.
The company is enjoying the recovery in the global economy, and it upgraded its full-year 2021 sales outlook in April. Management now expects organic new equipment sales to grow 7.5%-8.5%, compared to a previous estimate of 2%-5%, with service sales growing 2%-4%. Overall organic sales are now forecast to grow 4%-6%, compared to a prior estimate of 2%-4%.
Trading at 26 times 2022 earnings estimates, Otis is not a cheap stock. But if you are bullish on China's construction markets in particular, then Otis' long-term growth plans will excite you.
Stocks to buy?
All told, Halvorsen looks to have made good money on Deere and Otis. Deere stock is still attractive if you believe a multi-year expansion in crop prices and agricultural machinery sales is coming, and Otis will attract China bulls. Fortive is a very attractive company, but its valuation suggests it's one for the watch list for now.
{%sfr%
10 stocks we like better than Deere & Company
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company 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 June 7, 2021
Lee Samaha owns shares of Siemens Aktiengesellschaft. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends Lockheed Martin and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, Otis continues to equip its service personnel with mobile devices that help identify problems and quickly order replacement parts. Leading hedge fund manager Ole Andreas Halvorsen of Viking Global Investors bought more stock in industrial companies Deere (NYSE: DE) and Fortive (NYSE: FTV) and elevator and escalator company Otis (NYSE: OTIS) earlier in the year, according to SEC filings. Halvorsen is a highly successful long/short stock picker and his firm currently manages $44 billion in assets, having notably managed a portfolio that finished flat in 2008, the same year that the S&P 500 index fell nearly 40%.
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Leading hedge fund manager Ole Andreas Halvorsen of Viking Global Investors bought more stock in industrial companies Deere (NYSE: DE) and Fortive (NYSE: FTV) and elevator and escalator company Otis (NYSE: OTIS) earlier in the year, according to SEC filings. If it isn't a recovery in key crop prices driving spending on agricultural machinery, it's the ongoing growth in adopting Deere's precision agriculture solutions. Halvorsen is a highly successful long/short stock picker and his firm currently manages $44 billion in assets, having notably managed a portfolio that finished flat in 2008, the same year that the S&P 500 index fell nearly 40%.
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Leading hedge fund manager Ole Andreas Halvorsen of Viking Global Investors bought more stock in industrial companies Deere (NYSE: DE) and Fortive (NYSE: FTV) and elevator and escalator company Otis (NYSE: OTIS) earlier in the year, according to SEC filings. A quick look at the performance of the three industrial stocks reveals that Fortive has underperformed the S&P 500, while Deere and Otis have outperformed. Deere stock is still attractive if you believe a multi-year expansion in crop prices and agricultural machinery sales is coming, and Otis will attract China bulls.
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A quick look at the performance of the three industrial stocks reveals that Fortive has underperformed the S&P 500, while Deere and Otis have outperformed. Deere stock is still attractive if you believe a multi-year expansion in crop prices and agricultural machinery sales is coming, and Otis will attract China bulls. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them!
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2021-06-28 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for June 29, 2021
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-for-june-29-2021-2021-06-28
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Deere & Company (DE) will begin trading ex-dividend on June 29, 2021. A cash dividend payment of $0.9 per share is scheduled to be paid on August 09, 2021. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 18.42% increase over prior dividend payment. At the current stock price of $349.99, the dividend yield is 1.03%.
The previous trading day's last sale of DE was $349.99, representing a -12.58% decrease from the 52 week high of $400.34 and a 136.18% increase over the 52 week low of $148.19.
DE is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. (ASML) and Danaher Corporation (DHR). DE's current earnings per share, an indicator of a company's profitability, is $14.51. Zacks Investment Research reports DE's forecasted earnings growth in 2021 as 105.89%, compared to an industry average of 23.1%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
VanEck Vectors Natural Resources ETF (DE)
VanEck Vectors Agribusiness ETF (DE)
SPDR Select Sector Fund - Industrial (DE)
iShares MSCI Agriculture Producers Fund (DE)
First Trust Indxx Global Agriculture ETF (DE).
The top-performing ETF of this group is XLI with an increase of 17.01% over the last 100 days. HAP has the highest percent weighting of DE at 8.34%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DE's forecasted earnings growth in 2021 as 105.89%, compared to an industry average of 23.1%. For more information on the declaration, record and payment dates, visit the DE Dividend History page.
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This represents an 18.42% increase over prior dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $14.51. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF (DE) VanEck Vectors Agribusiness ETF (DE) SPDR Select Sector Fund - Industrial (DE) iShares MSCI Agriculture Producers Fund (DE) First Trust Indxx Global Agriculture ETF (DE).
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DE Dividend History page. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF (DE) VanEck Vectors Agribusiness ETF (DE) SPDR Select Sector Fund - Industrial (DE) iShares MSCI Agriculture Producers Fund (DE) First Trust Indxx Global Agriculture ETF (DE).
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 18.42% increase over prior dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $14.51.
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2021-06-25 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq set for record open after May inflation data misses estimates
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-set-for-record-open-after-may-inflation-data-misses-estimates-2021
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By Devik Jain and Medha Singh
June 25 (Reuters) - The S&P 500 and the Nasdaq were set for record highs at open on Friday, following robust earnings forecast from Nike, while weaker-than-expected inflation data eased worries about monetary policy tightening in the near term.
Inflation has been front-and-center of investors' minds, with latest personal consumption expenditures (PCE) data showing a measure of underlying inflation rose less than expected in May. Core PCE rose 3.4% year-over-year, above the Fed's 2% flexible target.
"We don't believe that this data will impact the Fed's current plans for reducing extraordinary stimulus," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
"The current state of near-zero interest rates and $120/billion per month in asset purchases have created extremely loose financial conditions, which in conjunction with the vaccines and re-opening process, is what has allowed the stock market to hit all-time highs."
The S&P 500 and the Nasdaq reclaimed record highs this week, looking at their best weekly jumps since early April, as U.S. President Joe Biden's bipartisan infrastructure deal and reassurances from Fed Chair Jerome Powell calmed nerves after the central bank's hawkish surprise last week.
Construction and mining equipment maker Caterpillar CAT.N, farm-equipment maker Deere DE.N and aerospace firm Boeing BA.N all edged higher.
Bank of America expects U.S. inflation to remain elevated for two to four years, against a rising perception of it being transitory, and said that only a financial market crash would prevent central banks from tightening policy in the next six months.
Nike Inc NKE.N surged 13% to a record high in premarket trading after the sneaker maker forecast fiscal full-year sales ahead of Wall Street estimates, helping Dow futures 1YMcv1 rise 0.4%.
Big banks Morgan Stanley MS.N, Citigroup C.N, Bank of America BAC.N, JPMorgan JPM.N and Wells Fargo WFC.N added between 0.6% and 1.6% after the Fed announced they have cleared latest stress test and will no longer face pandemic-era restrictions on buying back stock and paying dividends.
At 8:53 a.m. ET, Dow e-minis were up 144 points, or 0.42%, S&P 500 e-minis EScv1 were up 7.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were up 23.75 points, or 0.17%.
Latest evidence of a labor shortage came from FedEx Corp FDX.N as the U.S. delivery firm missed 2022 earnings forecast due to hiring difficulties. Its shares shed 3.3%.
Rival United Parcel Service Inc UPS.N also fell 1.3%.
CarMax Inc KMX.N jumped 6.2% after the used-car retailer topped Wall Street estimates for quarterly revenue, helped by strong demand as more people opted for personal vehicles over public transport due to the COVID-19 pandemic.
Investors are also girding for probably the biggest trading event of the year, as FTSE Russell reconstitutes its indexes which could reflect a wild trading year marked by the pandemic and a "meme" stock craze.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and 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 Devik Jain and Medha Singh June 25 (Reuters) - The S&P 500 and the Nasdaq were set for record highs at open on Friday, following robust earnings forecast from Nike, while weaker-than-expected inflation data eased worries about monetary policy tightening in the near term. CarMax Inc KMX.N jumped 6.2% after the used-car retailer topped Wall Street estimates for quarterly revenue, helped by strong demand as more people opted for personal vehicles over public transport due to the COVID-19 pandemic. Inflation has been front-and-center of investors' minds, with latest personal consumption expenditures (PCE) data showing a measure of underlying inflation rose less than expected in May.
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By Devik Jain and Medha Singh June 25 (Reuters) - The S&P 500 and the Nasdaq were set for record highs at open on Friday, following robust earnings forecast from Nike, while weaker-than-expected inflation data eased worries about monetary policy tightening in the near term. Inflation has been front-and-center of investors' minds, with latest personal consumption expenditures (PCE) data showing a measure of underlying inflation rose less than expected in May. "We don't believe that this data will impact the Fed's current plans for reducing extraordinary stimulus," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
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By Devik Jain and Medha Singh June 25 (Reuters) - The S&P 500 and the Nasdaq were set for record highs at open on Friday, following robust earnings forecast from Nike, while weaker-than-expected inflation data eased worries about monetary policy tightening in the near term. The S&P 500 and the Nasdaq reclaimed record highs this week, looking at their best weekly jumps since early April, as U.S. President Joe Biden's bipartisan infrastructure deal and reassurances from Fed Chair Jerome Powell calmed nerves after the central bank's hawkish surprise last week. Inflation has been front-and-center of investors' minds, with latest personal consumption expenditures (PCE) data showing a measure of underlying inflation rose less than expected in May.
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By Devik Jain and Medha Singh June 25 (Reuters) - The S&P 500 and the Nasdaq were set for record highs at open on Friday, following robust earnings forecast from Nike, while weaker-than-expected inflation data eased worries about monetary policy tightening in the near term. Inflation has been front-and-center of investors' minds, with latest personal consumption expenditures (PCE) data showing a measure of underlying inflation rose less than expected in May. "We don't believe that this data will impact the Fed's current plans for reducing extraordinary stimulus," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
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2021-06-25 00:00:00 UTC
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3 Top Infrastructure Stocks To Watch With The New Infrastructure Deal In Place
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https://www.nasdaq.com/articles/3-top-infrastructure-stocks-to-watch-with-the-new-infrastructure-deal-in-place-2021-06-25
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Do You Have These Top Infrastructure Stocks On Your Watchlist Right Now?
As we end this week of trading, infrastructure stocks appear to be the name of the game in the stock market now. Namely, news of President Biden coming to an agreement with Republican Senators on an infrastructure package for the country would explain this. Yesterday, the President confirmed that both sides have indeed “struck a deal” with $579 billion in funds set to bolster U.S. infrastructure across the board. As a result, the move is estimated to create millions of jobs for Americans but also an opportunity for eagle-eyed investors.
Now, understandably, the current infrastructure plan will see significant funds being channeled towards bolstering physical infrastructure. The likes of which include the power grid, public transportation, high-speed internet access in rural areas, and water pipes. If anything, this would highlight numerous industrial stocks now. Companies such as Nucor (NYSE: NUE) and Freeport-McMoRan would be vital as they provide raw construction materials. At the same time, the likes of John Deere (NYSE: DE) would serve to provide the necessary equipment to carry out heavy-duty work as well. By and large, the current deal serves to boost the current reopening trade tailwinds seen by infrastructure stocks now. All three of these companies’ shares are already looking at gains of over 120% in the past year.
Not to mention, there is also room in President Biden’s budget for the increasingly relevant electric vehicle (EV) industry. Specifically, $15 billion in funds will go towards EV infrastructure such as charging stations. This would put companies such as Blink Charging (NASDAQ: BLNK) in the spotlight now. As you can see, there are plenty of entry points into the hot infrastructure market now. On that note, here are three worth knowing in the stock market today.
Top Infrastructure Stocks To Buy [Or Sell] Now
United Rentals Inc. (NYSE: URI)
Caterpillar Inc. (NYSE: CAT)
ChargePoint Holdings Inc. (NYSE: CHPT)
United Rentals Inc.
Starting us off today is United Rentals Inc. (URI). In brief, it is the world’s largest equipment rental company thanks to its massive rental fleet of about 660,000 units. The likes of which total about $13.49 billion in original equipment cost, according to URI. Moreover, URI also boasts a huge integrated network consisting of 1,167 rental locations across the U.S. Canada, and Europe. With the eventual uptick in construction projects now, URI’s services would be in demand. Likewise, demand for URI stock could also be up amongst investors now. With gains of over 115% in the past year, would it have more room to run this year?
Well, for one thing, Citi (NYSE: C) analyst Timothy Thein seems to believe so. Earlier this week, Thein hit URI stock with a Buy rating and maintained a price target of $350. The analyst cited strength in the construction and industrial markets as well as tight rental markets as possible growth drivers. Meanwhile, URI does not seem to be sitting idly by as well. Last month, the company acquired General Finance Corporation, a leading specialty rental services company. Specifically, General Finance offers portable storage, modular space, and liquid containment solutions. According to CEO Matthew Flannery, this would greatly expand URI’s growth capacity.
If that wasn’t enough, URI also appears optimistic about the current fiscal year ahead. In its latest quarter fiscal posted in April, the company raked in earnings per share of $2.80 on revenue of $2.057 billion. Because of this, the company is raising its full-year guidance citing stronger growth in its core businesses. Given all of this, would you consider URI stock a top infrastructure stock to invest in now?
Source: TD Ameritrade TOS
Read More
4 Top EV Charging Stocks To Watch This Week
Best Stocks To Invest In Right Now? 5 Leisure Stocks In Focus
Caterpillar Inc.
Another key name to know in the infrastructure trade now would be Caterpillar Inc. In short, Caterpillar is the world’s leading manufacturer of construction and mining equipment. Aside from that, the company also produces diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Supporting its massive portfolio would be Caterpillar’s global dealer network. The likes of which are present on every continent worldwide. Given the relevance of Caterpillar’s wares in both the construction and mining industries, investors could be watching CAT stock now. Evidently, the company’s shares are already up by over 125% since its pandemic-era low.
For the most part, business appears to be good for Caterpillar now. In its first-quarter fiscal posted back in April, the company saw green across the board. To begin with, Caterpillar posted total revenue of $11.9 billion for the quarter. Additionally, the company saw sizable year-over-year jumps of 40% in net income and 39% in earnings per share. This was also followed by a 67% increase in cash on hand over the same time. CEO Jim Umpleby highlights improving conditions in Caterpillar’s end markets as an encouraging sign for the company. By proactively managing supply chain risks, Umpleby believes that Caterpillar can continue to strive for long-term profitable growth.
Supporting this current trajectory, the company also recently increased its quarterly cash dividend. Earlier this month, the board of directors at Caterpillar voted towards an 8% dividend raise, totaling $1.11 per share. With a strong balance sheet and positive industry tailwinds backing it, would you consider CAT stock a buy?
Source: TD Ameritrade TOS
[Read More] Best Dividend Stocks To Buy Today? 3 To Watch Before July 2021
ChargePoint Holdings Inc.
Next up, we have ChargePoint Holdings Inc., a leading player in the EV infrastructure industry. The California-based company operates one of the largest networks of independently-owned EV charging stations globally. In terms of scale, ChargePoint’s stations are present across 14 countries today. Arguably, CHPT stock offers investors a means to bet on both EV trends and infrastructure stocks at the same time. Even now, the company’s shares appear to be on investors’ radars. This can be seen as CHPT stock is currently up by over 35% in the past month.
Regardless, Needham analyst Vikram Bagri recently hit CHPT stock with a Buy rating and $39 price target. This would indicate a potential upside of 22% over its closing price of $31.91 as of Thursday’s closing bell. Bagri argues that ChargePoint’s “capital-light model” of merely providing the necessary hardware and software for EV charging units is a sound one. So much so, that the analyst expects ChargePoint to increase revenue at a compound annual growth rate of 49%. He also mentions that this would be on the conservative end as EV adoption could potentially ramp up faster than expected.
While institutional investors seem to be bullish on CHPT stock, ChargePoint continues to expand its services. As of last week, the company is currently collaborating with luxury automotive manufacturer, Mercedes. The duo will be launching the “Mercedes me Charge” service together with the all-new Mercedes-EQ all-electric luxury sedan. According to ChargePoint, Mercedes me Charge account holders will have access to the largest charging point network in North America. In detail, the company currently operates via 60,000 charging stations, with plans to double this figure moving forward. With ChargePoint firing on all cylinders now, will you be adding CHPT stock to your portfolio?
Source: TD Ameritrade TOS
The views and 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 likes of which include the power grid, public transportation, high-speed internet access in rural areas, and water pipes. Namely, news of President Biden coming to an agreement with Republican Senators on an infrastructure package for the country would explain this. Yesterday, the President confirmed that both sides have indeed “struck a deal” with $579 billion in funds set to bolster U.S. infrastructure across the board.
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Source: TD Ameritrade TOS Read More 4 Top EV Charging Stocks To Watch This Week Best Stocks To Invest In Right Now? Namely, news of President Biden coming to an agreement with Republican Senators on an infrastructure package for the country would explain this. Yesterday, the President confirmed that both sides have indeed “struck a deal” with $579 billion in funds set to bolster U.S. infrastructure across the board.
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Given all of this, would you consider URI stock a top infrastructure stock to invest in now? Namely, news of President Biden coming to an agreement with Republican Senators on an infrastructure package for the country would explain this. Yesterday, the President confirmed that both sides have indeed “struck a deal” with $579 billion in funds set to bolster U.S. infrastructure across the board.
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Namely, news of President Biden coming to an agreement with Republican Senators on an infrastructure package for the country would explain this. Yesterday, the President confirmed that both sides have indeed “struck a deal” with $579 billion in funds set to bolster U.S. infrastructure across the board. Now, understandably, the current infrastructure plan will see significant funds being channeled towards bolstering physical infrastructure.
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721510.0
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2021-06-25 00:00:00 UTC
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The Tesla of Farming? -- Should You Buy John Deere Stock Now?
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DE
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https://www.nasdaq.com/articles/the-tesla-of-farming-should-you-buy-john-deere-stock-now-2021-06-25
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nan
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Believe it or not, Deere & Company (NYSE: DE) currently employs more software engineers than mechanical engineers. How is this possible? The farming industry is experiencing significant disruption. Innovative technology is enabling what is called "precision agriculture" to come to fruition. Farmers are able to leverage technology to monitor their crops in ways that were once unfathomable. John Deere's next-generation machines use artificial intelligence (AI) to exponentially increase efficiencies, enabling farmers to reap increased crop yields with less work and lower costs.
Deere does not manufacture electric vehicles like Tesla (NASDAQ: TSLA), but you may be surprised to hear it is working on autonomous electric tractors, semiautonomous tractors, autonomous drone sprayers, and much more. Is John Deere the Tesla of agriculture?
In July 2020 John Deere hired Jahmy Hindman as the company's first chief technology officer in its 184-year history. Did that number surprise you? That's right, John Deere was founded in 1837. Hindman leads Deere's Intelligent Solutions Group, and his role is responsible for building out the company's tech stack, which includes connectivity, embedded software, data platforms, and applications.
ARK Innovation's autonomous ETF, ARK Industrial Innovation (NYSEMKT: ARKQ), consists of approximately 2.5% of Deere and Company. Given that it's a 184-year-old blue chip company, many would be surprised to think of John Deere as an innovative technology company, but the business is pivoting into a new era, and it could be an opportunity for a long-term investing portfolio.
John Deere's stock pays just over a 1% dividend, and the current P/E ratio is under 23. The stock price recently pulled back from an all-time high of $400.34. Should you buy John Deere stock now? Please watch the below video for a detailed breakdown of the stock and opinions on the share price.
10 stocks we like better than Deere & Company
When our award-winning 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 Deere & Company 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 June 7, 2021
Eric Cuka owns shares of Deere & Company and Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy. Eric 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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In July 2020 John Deere hired Jahmy Hindman as the company's first chief technology officer in its 184-year history. Hindman leads Deere's Intelligent Solutions Group, and his role is responsible for building out the company's tech stack, which includes connectivity, embedded software, data platforms, and applications. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Deere does not manufacture electric vehicles like Tesla (NASDAQ: TSLA), but you may be surprised to hear it is working on autonomous electric tractors, semiautonomous tractors, autonomous drone sprayers, and much more. ARK Innovation's autonomous ETF, ARK Industrial Innovation (NYSEMKT: ARKQ), consists of approximately 2.5% of Deere and Company. John Deere's stock pays just over a 1% dividend, and the current P/E ratio is under 23.
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Given that it's a 184-year-old blue chip company, many would be surprised to think of John Deere as an innovative technology company, but the business is pivoting into a new era, and it could be an opportunity for a long-term investing portfolio. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Eric Cuka owns shares of Deere & Company and Tesla.
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Given that it's a 184-year-old blue chip company, many would be surprised to think of John Deere as an innovative technology company, but the business is pivoting into a new era, and it could be an opportunity for a long-term investing portfolio. Should you buy John Deere stock now? See the 10 stocks *Stock Advisor returns as of June 7, 2021 Eric Cuka owns shares of Deere & Company and Tesla.
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721511.0
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2021-06-24 00:00:00 UTC
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Why You Might Be Interested In Deere & Company (NYSE:DE) For Its Upcoming Dividend
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DE
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https://www.nasdaq.com/articles/why-you-might-be-interested-in-deere-company-nyse%3Ade-for-its-upcoming-dividend-2021-06-24
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Deere & Company (NYSE:DE) is about to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. This means that investors who purchase Deere's shares on or after the 29th of June will not receive the dividend, which will be paid on the 9th of August.
The company's next dividend payment will be US$0.90 per share, and in the last 12 months, the company paid a total of US$3.60 per share. Looking at the last 12 months of distributions, Deere has a trailing yield of approximately 1.0% on its current stock price of $347.75. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Deere has a low and conservative payout ratio of just 22% of its income after tax. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 16% of its free cash flow as dividends last year, which is conservatively low.
It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:DE Historic Dividend June 24th 2021
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's encouraging to see Deere has grown its earnings rapidly, up 20% a year for the past five years. Deere earnings per share have been sprinting ahead like the Road Runner at a track and field day; scarcely stopping even for a cheeky "beep-beep". We also like that it is reinvesting most of its profits in its business.'
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Deere has delivered 12% dividend growth per year on average over the past 10 years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.
To Sum It Up
Is Deere worth buying for its dividend? Deere has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. It's a promising combination that should mark this company worthy of closer attention.
On that note, you'll want to research what risks Deere is facing. For example - Deere has 1 warning sign we think you should be aware of.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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 ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Deere earnings per share have been sprinting ahead like the Road Runner at a track and field day; scarcely stopping even for a cheeky "beep-beep". Deere has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination.
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NYSE:DE Historic Dividend June 24th 2021 Have Earnings And Dividends Been Growing? Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Deere has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination.
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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share.
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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Deere has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination.
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721512.0
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2021-06-23 00:00:00 UTC
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FOCUS-Manufacturers have an answer to higher costs: Pass them on
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DE
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https://www.nasdaq.com/articles/focus-manufacturers-have-an-answer-to-higher-costs%3A-pass-them-on-2021-06-23
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nan
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By Rajesh Kumar Singh
CHICAGO, June 23 (Reuters) - In 2018, Whirlpool Corp WHR.N swung to a loss after a tariff-fueled rally in U.S. steel prices drove up its raw-materials costs.
This year, it is paying $1 billion for steel and other materials, but the West Michigan appliance maker is on track to post its highest profit in decades.
The difference? Booming demand, spurred by nearly $6 trillion in pandemic stimulus from Washington - more than the country's World War Two budget - and consumers flush with savings.
With so much money coursing through the economy at a time when the pandemic-induced disruptions have constrained supplies and prevented a buildup in inventories, companies are able to charge higher prices without hurting sales.
Whirlpool has raised prices by as much as 12% this year in various markets to compensate for increased raw-material costs. Many other manufacturers that make goods ranging from heavy equipment to SUVs are using a similar playbook.
It helps explain why corporate profits have soared to the highest level in a decade, even though factories across the United States are starved of components and prices for everything from steel to oil to labor and computer chips are surging.
An analysis by Bank of America Corp BAC.N shows S&P 500 .SPX companies surpassed analysts' profit expectations in the first quarter by the biggest margin in history even as "inflation" found more mentions on earnings conference calls than at any time since 2011.
"We're in this weird market where there's a shortage of everything," said Stephen Volkmann, an analyst at Jefferies. "When you're in that sort of shortage situation ... you're willing to pay more."
Soaring prices are testing the U.S. Federal Reserve's jobs-first monetary policy as inflation is now projected to exceed its 2% target by a wide margin this year and remain slightly elevated for the next two years. The Fed, however, still attributes the run-up in prices to "transitory" factors.
A SUPPLY-DEMAND MISMATCH
A sharp correction in lumber prices has raised hopes that other commodities would follow a similar trajectory once demand and supply start to rebalance. Raw-materials producers, however, say a roaring economy will keep prices relatively high.
The current economy fulfills, almost too well, the ubiquitous dream of manufacturers - a world in which supply and demand are finely balanced so that prices always stay firm and sales do not collapse.
For manufacturers serving the Big Six appliance categories - washers, dryers, dishwashers, refrigerators, freezers and ranges and ovens - demand is the strongest in at least 12 years, according to data from the Association of Home Appliance Manufacturers (AHAM).
But it is taking appliance makers at least two to three months to fill new orders because steel, semiconductors and resins are in short supply, said Kevin Messner, head of AHAM's government relations and policy.
Whirlpool's average order backlog is about six to seven weeks, compared with one to two weeks normally. The company did not respond to requests for an interview. But Chief Executive Marc Bitzer told investors in late April that the order backlog would remain elevated because of "unconstrained" consumer demand and restricted access to components.
FEWER DEALS
Data from Goldman Sachs shows the average discount on appliances around Memorial Day weekend this year was just 7%, lower than 19% a year ago. Whirlpool was the least promotional, with discounts of only 2%, down from 9% a year ago, the data showed.
The price cuts are expected to be equally modest for the Fourth of July holiday, according to sales executives at Home Depot HD.N and Best Buy BBY.N stores in Chicago.
"Prices have gone up and some items are out of stock," said one of the sales executives.
The benefit to corporate profits from what amounts to a double-digit price hike is "fantastic," said David MacGregor, president at Longbow Research LLC.
In the auto industry, too, reduced production due to shortages of semiconductors has resulted in the lowest levels of unsold cars and trucks on dealer lots in years, according to consulting firm AlixPartners.
In response, discounts as a percentage of a vehicle's price were slashed to less than 8% in May from more than 12% in early 2020, AlixPartners said. And the average prices have gone up globally by nearly $1,700 a vehicle, offsetting much of automakers' cost increases.
Tight inventories "allowed this pricing power. It's allowed OEMs (automakers) to move the mix to more profitable vehicles," said Mark Wakefield, co-head of AlixPartners' automotive practice.
Both General Motors Co GM.N and Ford Motor Co F.N have raised their profit outlook - a contrast from 2018 when higher steel prices hurt their earnings.
CONSTRUCTION BOOM DRIVES DEMAND
In the heavy farm and construction machinery industry, companies say customers already are placing orders for next year to try to beat the price and delivery crunch.
Industry sales of construction machines in North America are projected to be up 25% this year. The sales are expected to grow next year as well on the back of a buoyant housing market and higher infrastructure spending.
Stephen Roy, head of sales in the Americas for Volvo AB VOLVb.ST, says the company is prioritizing orders from customers over those meant to replenish inventories at dealerships. Supply bottlenecks have tripled the lead times for its products.
The company is facing intense cost pressure, but customers have been willing to accept higher prices.
"They seem to be able to pass along price increases to their customers," he told Reuters. "So far, we don't hear any concerns from our customers."
To be sure, not all companies are able to flex their pricing-power muscle.
Take Pennsylvania-based startup Optimus Technologies. The biodiesel engine maker is grappling with higher raw-material costs, but has been unable to fully pass them along to its customers.
Chief Executive Colin Huwyler says his company needs to be cost-competitive to increase its market share. "We have some unique challenges that maybe an OEM manufacturer would not have," he said.
(Reporting by Rajesh Kumar Singh in Chicago Editing by Joe White and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It helps explain why corporate profits have soared to the highest level in a decade, even though factories across the United States are starved of components and prices for everything from steel to oil to labor and computer chips are surging. In the auto industry, too, reduced production due to shortages of semiconductors has resulted in the lowest levels of unsold cars and trucks on dealer lots in years, according to consulting firm AlixPartners. This year, it is paying $1 billion for steel and other materials, but the West Michigan appliance maker is on track to post its highest profit in decades.
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This year, it is paying $1 billion for steel and other materials, but the West Michigan appliance maker is on track to post its highest profit in decades. Booming demand, spurred by nearly $6 trillion in pandemic stimulus from Washington - more than the country's World War Two budget - and consumers flush with savings. With so much money coursing through the economy at a time when the pandemic-induced disruptions have constrained supplies and prevented a buildup in inventories, companies are able to charge higher prices without hurting sales.
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With so much money coursing through the economy at a time when the pandemic-induced disruptions have constrained supplies and prevented a buildup in inventories, companies are able to charge higher prices without hurting sales. In the heavy farm and construction machinery industry, companies say customers already are placing orders for next year to try to beat the price and delivery crunch. This year, it is paying $1 billion for steel and other materials, but the West Michigan appliance maker is on track to post its highest profit in decades.
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With so much money coursing through the economy at a time when the pandemic-induced disruptions have constrained supplies and prevented a buildup in inventories, companies are able to charge higher prices without hurting sales. This year, it is paying $1 billion for steel and other materials, but the West Michigan appliance maker is on track to post its highest profit in decades. Booming demand, spurred by nearly $6 trillion in pandemic stimulus from Washington - more than the country's World War Two budget - and consumers flush with savings.
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721513.0
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2021-06-23 00:00:00 UTC
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Deere & Company's (NYSE:DE) Business Is Yet to Catch Up With Its Share Price
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DE
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https://www.nasdaq.com/articles/deere-companys-nyse%3Ade-business-is-yet-to-catch-up-with-its-share-price-2021-06-23
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When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Deere & Company (NYSE:DE) as a stock to potentially avoid with its 23.4x P/E ratio. However, the P/E might be high for a reason and it requires further investigation to determine if it's justified.
Recent times have been advantageous for Deere as its earnings have been rising faster than most other companies. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
NYSE:DE Price Based on Past Earnings June 23rd 2021
Want the full picture on analyst estimates for the company? Then our free report on Deere will help you uncover what's on the horizon.
Does Growth Match The High P/E?
In order to justify its P/E ratio, Deere would need to produce impressive growth in excess of the market.
Retrospectively, the last year delivered an exceptional 64% gain to the company's bottom line. Pleasingly, EPS has also lifted 158% in aggregate from three years ago, thanks to the last 12 months of growth. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Shifting to the future, estimates from the analysts covering the company suggest earnings should grow by 15% per annum over the next three years. Meanwhile, the rest of the market is forecast to expand by 14% per year, which is not materially different.
In light of this, it's curious that Deere's P/E sits above the majority of other companies. Apparently many investors in the company are more bullish than analysts indicate and aren't willing to let go of their stock right now. Although, additional gains will be difficult to achieve as this level of earnings growth is likely to weigh down the share price eventually.
The Bottom Line On Deere's P/E
Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that Deere currently trades on a higher than expected P/E since its forecast growth is only in line with the wider market. When we see an average earnings outlook with market-like growth, we suspect the share price is at risk of declining, sending the high P/E lower. Unless these conditions improve, it's challenging to accept these prices as being reasonable.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Deere, and understanding should be part of your investment process.
If P/E ratios interest you, you may wish to see this free collection of other companies that have grown earnings strongly and trade on P/E's below 20x.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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NYSE:DE Price Based on Past Earnings June 23rd 2021 Want the full picture on analyst estimates for the company? The Bottom Line On Deere's P/E Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. When we see an average earnings outlook with market-like growth, we suspect the share price is at risk of declining, sending the high P/E lower.
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When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Deere & Company (NYSE:DE) as a stock to potentially avoid with its 23.4x P/E ratio. The Bottom Line On Deere's P/E Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. However, the P/E might be high for a reason and it requires further investigation to determine if it's justified.
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When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Deere & Company (NYSE:DE) as a stock to potentially avoid with its 23.4x P/E ratio. NYSE:DE Price Based on Past Earnings June 23rd 2021 Want the full picture on analyst estimates for the company? The Bottom Line On Deere's P/E Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
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However, the P/E might be high for a reason and it requires further investigation to determine if it's justified. The Bottom Line On Deere's P/E Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. If P/E ratios interest you, you may wish to see this free collection of other companies that have grown earnings strongly and trade on P/E's below 20x.
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721514.0
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2021-06-21 00:00:00 UTC
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What's Next For Terex Stock After An 11% Fall In 5 Days?
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DE
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https://www.nasdaq.com/articles/whats-next-for-terex-stock-after-an-11-fall-in-5-days-2021-06-22
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nan
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The stock price of Terex (NYSE:TEX), an aerial work platforms and materials processing machinery manufacturer, has seen an 11% drop over the last five trading days. While there was no company-specific announcement, the industrial stocks at large saw a sell-off last week, with Caterpillar, AGCO, and Deere also down over 5% over the same period.
Now that Terex stock has fallen 11% in just five days, will it resume its downward trajectory over the coming weeks, or is a rise in the stock imminent? According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data, returns for Terex stock average nearly 6% in the next one-month (21 trading days) period after experiencing a 11% drop over the previous week (5 trading days). Also, given high vaccination rates is several countries, the demand for industrial equipment is expected to see a sharp rebound, boding well for TEX stock.
But how would these numbers change if you are interested in holding TEX stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Terex stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
Some Fun Scenarios, FAQs & Making Sense of Terex Stock Movements:
Question 1: Is the average return for Terex stock higher after a drop?
Answer: Consider two situations,
Case 1: Terex stock drops by -5% or more in a week
Case 2: Terex stock rises by 5% or more in a week
Is the average return for Terex stock higher over the subsequent month after Case 1 or Case 2?
TEX stock fares better after Case 2, with an average return of 1.8% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 2% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Terex stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Terex stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For TEX stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for Terex after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
It’s pretty powerful to test the trend for yourself for Terex stock by changing the inputs in the charts above.
While TEX stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Techne vs Generac Holdings.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, given high vaccination rates is several countries, the demand for industrial equipment is expected to see a sharp rebound, boding well for TEX stock. While there was no company-specific announcement, the industrial stocks at large saw a sell-off last week, with Caterpillar, AGCO, and Deere also down over 5% over the same period. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data, returns for Terex stock average nearly 6% in the next one-month (21 trading days) period after experiencing a 11% drop over the previous week (5 trading days).
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According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data, returns for Terex stock average nearly 6% in the next one-month (21 trading days) period after experiencing a 11% drop over the previous week (5 trading days). While there was no company-specific announcement, the industrial stocks at large saw a sell-off last week, with Caterpillar, AGCO, and Deere also down over 5% over the same period. Also, given high vaccination rates is several countries, the demand for industrial equipment is expected to see a sharp rebound, boding well for TEX stock.
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According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data, returns for Terex stock average nearly 6% in the next one-month (21 trading days) period after experiencing a 11% drop over the previous week (5 trading days). Answer: Consider two situations, Case 1: Terex stock drops by -5% or more in a week Case 2: Terex stock rises by 5% or more in a week Is the average return for Terex stock higher over the subsequent month after Case 1 or Case 2? TEX stock fares better after Case 2, with an average return of 1.8% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 2% for Case 2.
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According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data, returns for Terex stock average nearly 6% in the next one-month (21 trading days) period after experiencing a 11% drop over the previous week (5 trading days). Answer: Consider two situations, Case 1: Terex stock drops by -5% or more in a week Case 2: Terex stock rises by 5% or more in a week Is the average return for Terex stock higher over the subsequent month after Case 1 or Case 2? While there was no company-specific announcement, the industrial stocks at large saw a sell-off last week, with Caterpillar, AGCO, and Deere also down over 5% over the same period.
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2021-06-21 00:00:00 UTC
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8 Blue-Chip Stocks to Buy to Fortify Your Portfolio
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https://www.nasdaq.com/articles/8-blue-chip-stocks-to-buy-to-fortify-your-portfolio-2021-06-21
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dow Jones Industrial Average — the 30 blue-chip stocks at the heart of the U.S. economy — spent most of last week down. Much of that was traders jockeying with positions to see what the Federal Reserve was going to do about inflation.
Now that the decision is made — the Fed has bumped up its inflation forecast but left rates alone for now — the markets can get back to more day-to-day action.
The $1+ trillion infrastructure bill looks like it’s going to pass now and there may be a second stage to it. That’s good for high-quality blue-chip stocks, since they tend to be at the heart of the economy. When spending rises some of it’s usually landing in their pockets.
8 High-Risk Stocks to Buy That Are Worth Taking a Chance On
Not all the of the blue-chip stocks here are Dow stocks. However, they’re all quality stocks that are sector leaders and will do well as the global economy gets growing. And most are consolidating, which is a good time to buy.
Caterpillar (NYSE:CAT)
Deere & Co (NYSE:DE)
Danaher (NYSE:DHR)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL)
United Parcel Service (NYSE:UPS)
Target (NYSE:TGT)
Philip Morris International (NYSE:PM)
Taiwan Semiconductor (NYSE:TSM)
Blue-Chip Stocks to Buy: Caterpillar (CAT)
CAT) logo on it" width="300" height="169">
Source: astudio / Shutterstock.com
With a market cap of $118 billion, this is one of the biggest industrial equipment companies in the world. From locomotives to mining equipment to on-site generators, CAT has built a global reputation for hard-working, heavy-duty equipment.
And if you’re interested in investing in the new efforts in space, then CAT is one of the blue-chip stocks planning the trip. It’s developing unmanned equipment that can be used to build out a colony site or mining operation remotely.
If you look at CAT’s long-term chart, you can see that CAT is a cyclical stock; it does well when economies are expanding and falls off when economic growth slows. Up 15% year to date and still distributing a 2.1% dividend, it’s off its 52-week highs. Now is the time to make hay.
The stock gets an ‘A’ rating from my Portfolio Grader.
Deere & Co (DE)
Source: Jim Lambert / Shutterstock.com
DE is like the CAT of the agricultural, forestry and landscaping markets. It has been in fields since 1837 and continues to dominate the competition, with a market cap of $106 billion.
For the suburban and ex-urban homeowners, maintaining their property with a Deere mower is a status symbol. But for farmers and others, having a Deere is all business. If it isn’t running or breaks down constantly, the farmer is losing time and money. DE’s success is evidence that its equipment has earned it a place with other blue-chip stocks.
DE stock is up 25% year to date, yet it’s still trading at a price-to-earnings ratio of 22x. That’s well below the average for the S&P 500.
7 Penny Stocks To Buy That Pay Dividends
The stock gets an ‘A’ rating from my Portfolio Grader.
Blue-Chip Stocks to Buy: Danaher (DHR)
DHR) website" width="300" height="169">
Source: madamF / Shutterstock.com
While not exactly a household name, DHR is one of the world’s leading life sciences and diagnostic companies. But it’s more of a holding company; it owns the top brands in a number of markets, including China.
The pandemic is a clear illustration of the need for quality diagnostic and testing equipment. But beyond this stark example lies the long-term power that lies in these markets. For example, China is making great strides in developing a modern, quality healthcare system to support its 1.5 billion citizens. That starts with the fundamentals.
And right now, DHR owns the company that can build and supply the equipment in China. In the U.S. and Europe, these legacy healthcare systems need to be modernized in approach and execution. Once again DHR stands to benefit.
DHR stock is up 16% year to date after a strong run during the pandemic.
The stock gets a ‘B’ rating from my Portfolio Grader.
Alphabet (GOOG)
Source: Primakov / Shutterstock.com
Alphabet certainly among the “2.0 version” of blue-chip stocks. Generally, we think about blue-chip stocks as having been around since horse and buggies were commonplace. But a new generation of companies are in the mix now — big tech.
GOOG is one of the most visible tech firms out there and it has a lot more going for it than the world’s largest mobile operating system (Android) and the world’s most popular search (and advertising) engine (Google). It has its hands in biotech, renewable energy, consumer products and autonomous vehicles to name a few.
Much of this fueled from its massive advertising revenue. But that pile of cash is going to keep rolling in and GOOG will continue to expand its presence.
7 Top International Stocks to Buy Today
The stock gets a ‘B’ rating from my Portfolio Grader.
Blue-Chip Stocks to Buy: United Parcel Service (UPS)
UPS) logo" width="300" height="169">
Source: Sundry Photography / Shutterstock.com
Delivering packages since 1907, UPS and its brown army are more visible on a day-to-day basis than any company on this list (except maybe Alphabet). And it has been that way for a long time.
Now this logistics company is a global force. And with a market cap of $147 billion, UPS is one of the most durable blue-chip stocks around. The stock ran up significantly during the pandemic, but the growth in e-commerce is here to stay. It also has built one of the most advanced logistics networks in the world, so it will always be an elite player.
UPS stock is up 22% year to date, and it has a 2% dividend. The stock gets an ‘A’ rating from my Portfolio Grader.
Target (TGT)
Source: Robert Gregory Griffeth / Shutterstock.com
About eight years ago, TGT was on the ropes. It had experienced a massive cyberattack and its e-commerce model was not working well. That meant its major competitors were quickly putting digital distance between themselves and TGT.
But TGT rallied and it’s now back in the big box, e-commerce pack. It has upgraded its clothes designs and expanded its grocery selections in-store. And its online operation is world class and growing better every year. Plus, in-store pick up has been very popular as well, which makes use of its brick and mortar and online operations.
Up 32% year to date, TGT is trading far below the average P/E of the S&P 500 and delivers a decent 1.6% dividend.
8 High-Risk Stocks to Buy That Are Worth Taking a Chance On
The stock gets an ‘A’ rating from my Portfolio Grader.
Blue-Chip Stocks to Buy: Philip Morris International (PM)
Source: Vytautas Kielaitis/Shutterstock.com
Yes, this is a sin stock. All of the old Philip Morris tobacco assets were rolled up into this company and its sister company Altria (NYSE:MO) operates all the non-tobacco assets. Why go with tobacco?
Because it’s still an enormous business outside (and inside) the U.S. Plus, the legalization of cannabis will also be a potential boon for PM. When states look to organize the disparate distribution and laws into a national system, few companies are better positioned to do it than PM. E-cigarettes also remain a key growth area, especially outside of the US.
If the tobacco stigma doesn’t bother you, PM remains a force among blue-chip stocks. And it’s still dirt cheap after a 23% run year to date, and delivers a solid 4.8% dividend.
The stock gets a ‘B’ rating from my Portfolio Grader.
Taiwan Semiconductor (TSM)
Source: Sundry Photography / Shutterstock.com
Aside from some international incident with China, TSM is well on its way to many strong years ahead. As one of the leading chipmakers in the world, it will be working overtime for years to meet the current demand for chips and processors now that almost everything we own has a chip in it.
The auto industry expects it will be two years before chip production meets demand. And other industries are similarly hamstrung because the pandemic shut down chip foundries.
The stock is consolidating now, so it’s a good time to get in before the next leg up.
7 Penny Stocks To Buy That Pay Dividends
The stock gets a ‘B’ rating from my Portfolio Grader.
On the date of publication, Louis Navellier has positions in GOOG, TGT and TSM in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post 8 Blue-Chip Stocks to Buy to Fortify Your Portfolio appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now that the decision is made — the Fed has bumped up its inflation forecast but left rates alone for now — the markets can get back to more day-to-day action. The stock gets an ‘A’ rating from my Portfolio Grader. For example, China is making great strides in developing a modern, quality healthcare system to support its 1.5 billion citizens.
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Caterpillar (NYSE:CAT) Deere & Co (NYSE:DE) Danaher (NYSE:DHR) Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) United Parcel Service (NYSE:UPS) Target (NYSE:TGT) Philip Morris International (NYSE:PM) Taiwan Semiconductor (NYSE:TSM) Blue-Chip Stocks to Buy: Caterpillar (CAT) CAT) logo on it" width="300" height="169"> Source: astudio / Shutterstock.com With a market cap of $118 billion, this is one of the biggest industrial equipment companies in the world. The stock gets an ‘A’ rating from my Portfolio Grader. The stock gets a ‘B’ rating from my Portfolio Grader.
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Caterpillar (NYSE:CAT) Deere & Co (NYSE:DE) Danaher (NYSE:DHR) Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) United Parcel Service (NYSE:UPS) Target (NYSE:TGT) Philip Morris International (NYSE:PM) Taiwan Semiconductor (NYSE:TSM) Blue-Chip Stocks to Buy: Caterpillar (CAT) CAT) logo on it" width="300" height="169"> Source: astudio / Shutterstock.com With a market cap of $118 billion, this is one of the biggest industrial equipment companies in the world. The stock gets an ‘A’ rating from my Portfolio Grader. The stock gets a ‘B’ rating from my Portfolio Grader.
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The stock gets an ‘A’ rating from my Portfolio Grader. DHR stock is up 16% year to date after a strong run during the pandemic. The stock gets a ‘B’ rating from my Portfolio Grader.
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2021-06-18 00:00:00 UTC
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Notable Friday Option Activity: APT, SONO, DE
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-apt-sono-de-2021-06-18
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alpha Pro Tech Ltd. (Symbol: APT), where a total of 1,625 contracts have traded so far, representing approximately 162,500 underlying shares. That amounts to about 78% of APT's average daily trading volume over the past month of 208,260 shares. Particularly high volume was seen for the $8.50 strike call option expiring June 25, 2021, with 531 contracts trading so far today, representing approximately 53,100 underlying shares of APT. Below is a chart showing APT's trailing twelve month trading history, with the $8.50 strike highlighted in orange:
Sonos Inc (Symbol: SONO) saw options trading volume of 13,062 contracts, representing approximately 1.3 million underlying shares or approximately 74.7% of SONO's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $35 strike call option expiring August 20, 2021, with 6,226 contracts trading so far today, representing approximately 622,600 underlying shares of SONO. Below is a chart showing SONO's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 15,533 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 73.5% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $330 strike put option expiring June 18, 2021, with 1,035 contracts trading so far today, representing approximately 103,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange:
For the various different available expirations for APT options, SONO options, or DE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $8.50 strike call option expiring June 25, 2021, with 531 contracts trading so far today, representing approximately 53,100 underlying shares of APT. Especially high volume was seen for the $35 strike call option expiring August 20, 2021, with 6,226 contracts trading so far today, representing approximately 622,600 underlying shares of SONO. Especially high volume was seen for the $330 strike put option expiring June 18, 2021, with 1,035 contracts trading so far today, representing approximately 103,500 underlying shares of DE.
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Particularly high volume was seen for the $8.50 strike call option expiring June 25, 2021, with 531 contracts trading so far today, representing approximately 53,100 underlying shares of APT. Below is a chart showing APT's trailing twelve month trading history, with the $8.50 strike highlighted in orange: Sonos Inc (Symbol: SONO) saw options trading volume of 13,062 contracts, representing approximately 1.3 million underlying shares or approximately 74.7% of SONO's average daily trading volume over the past month, of 1.7 million shares. Below is a chart showing SONO's trailing twelve month trading history, with the $35 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 15,533 contracts thus far today.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alpha Pro Tech Ltd. (Symbol: APT), where a total of 1,625 contracts have traded so far, representing approximately 162,500 underlying shares. Below is a chart showing APT's trailing twelve month trading history, with the $8.50 strike highlighted in orange: Sonos Inc (Symbol: SONO) saw options trading volume of 13,062 contracts, representing approximately 1.3 million underlying shares or approximately 74.7% of SONO's average daily trading volume over the past month, of 1.7 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange: For the various different available expirations for APT options, SONO options, or DE options, visit StockOptionsChannel.com.
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Below is a chart showing APT's trailing twelve month trading history, with the $8.50 strike highlighted in orange: Sonos Inc (Symbol: SONO) saw options trading volume of 13,062 contracts, representing approximately 1.3 million underlying shares or approximately 74.7% of SONO's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $330 strike put option expiring June 18, 2021, with 1,035 contracts trading so far today, representing approximately 103,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange: For the various different available expirations for APT options, SONO options, or DE options, visit StockOptionsChannel.com.
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2021-06-18 00:00:00 UTC
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Reddit Stocks: How to Become a Millionaire With Meme Investing
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https://www.nasdaq.com/articles/reddit-stocks%3A-how-to-become-a-millionaire-with-meme-investing-2021-06-18
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re thinking, “things are harder these days,” you’re probably right. (If you disagree, congratulations on winning last week’s Powerball lottery).
Median household incomes have stagnated since the mid-1980s. That’s made everything from paying down student loans (an average balance of $38,255) to paying for essentials (74% of income) harder than ever for young families. And if you’re older, you’re probably worried too; healthcare costs are 30 times higher today than in 1970.
What happened?
America’s wealth has slowly but surely concentrated at the very top. Today, the bottom 95% of Americans — i.e., any household earning less than $380,000 per year — hold just one-third of all U.S. wealth. And that wealth has to stretch further than ever; few non-government employees can count on defined-benefit pensions to fund retirement.
But investors have been given a lifeline from the most unusual place: Reddit.
The rise of meme stock investing on social media platforms has created the Moonshot Bet: some of the riskiest, highest-returning wagers that any investor can make. It’s a way for ordinary people to level the playing field and catch up to the “haves” of America.
In today’s Big Read, we’re going to look into 1) the usefulness of Moonshot investing and 2) how you can earn “F— You Money” without blowing up your retirement portfolio.
The Big Read: Reddit and Financial Freedom
If the term “F— You Money” sounds offensive to the establishment, it’s by no accident. Many people feel stuck in an endless financial grind; they’d like nothing more than to stick it to the man.
Don’t like your job? Leave it and find one you love.
Don’t like your house? Sell it and move somewhere else.
Don’t like your spouse? Buy a second home to put them in. (Did you think I’d say “divorce”?)
The concept of financial independence, however, has become so far removed from most Americans.
Before. In 1960, a 30-year-old who started investing $10,000 (in 2020 dollars) would have been age 58 by the time they accumulated $2 million.
After. Doing the same today would take a Millennial investor until age 73 to achieve the same feat.
“Today there are no easy portfolio choices,” reported JP Morgan in its most recent Long-Term Capital Market report. “Low yields and elevated equity valuations act in concert to push the frontier to very low levels.” The bank’s long-term stock return expectation now sits at 4.1%.
That means long-term investing doesn’t work for most people anymore. In a country where the average 34-year-old only has $14,852 in net worth, buying an S&P 500 ETF won’t fund retirement (let alone a house down payment).
So, what have these newer investors done? Rather than sink their life savings into slow-moving investments, retail traders have realized the power of taking risky bets. And done well, Moonshot investing could help you earn that “f— you money” sooner than you think.
MOONSHOTS VS. LONG-TERM INVESTING
I get it.
Moonshot Investing seems stupid.
When you’re an Ivy-League-educated investor with Wall Street experience, people expect you to say, “buy a low-cost ETF and hold onto it for the long run” and “Dogecoin and GameStop are for idiots.”
To be fair, there is some truth to that. I encourage everyone to put around 95% savings into long-term investments as their “main course.” I prefer high ROIC companies with wide competitive moats — John Deere (NYSE:DE), Adobe (NASDAQ:ADBE), UnitedHealth (NYSE:UNH) — or low-cost target-date index funds. These investments will keep your portfolio healthy and put you on the right path toward eventual financial freedom. (I can hear the snores in the background).
But what about the remaining 5% of your savings? That, my readers, can go toward a decadent dessert that’s soaked in rum and lit on fire: Moonshot Bets.
For those who can afford it, these Moonshot investments have 1,000x upsides so enormous that you can afford some losses along the way.
To illustrate my “5% dessert” rule, consider this:
As I said before, if a 30-year-old puts $10,000 into the stock market every year starting in 2020, it would take them until 2063 (age 73) to reach $2 million in net worth.
Instead, if that same person channeled 5% of their savings (i.e., $500 per year) into a single Moonshot Bet every year, they could reach that $2 million four years earlier by age 69. That’s assuming they only find a 100x returner once per decade; finding one every five years will mean you’ll be sitting on $3.2 million just as your friends are retiring.
And what about the worst-case scenario if every Moonshot bet goes to zero? I’ve got good news. Since you’re only playing with 5% of your savings, you’ll only delay reaching the $2 million goal by a year.
Those with highly stable careers might even consider up to 10% in risky bets. In the worst-case scenario (i.e., if every Moonshot goes to zero), it would take you an extra two years to reach your $2 million target. And what if you find one 100x stock per decade? You would have $4.3 million by the time you’re 73. Now *that’s* some “f— you money” to spare.
CURB YOUR ENTHUSIASM: POSITION SIZING AND RISK
I’ll be up-front: 5%… or 10%… isn’t the correct Moonshot number for everyone. People with high-interest student debt should pay that down first. And anyone without a sufficient cash cushion — defined by the CFP Institute as three to 12 months of expenses — should delete Robinhood from their phones before reading another sentence of this piece.
Financial constraints are also essential. Many Americans can’t afford to lose $500.
But let’s assume you’re already saving $10,000… $50,000… or $100,000 per year. Then you can certainly afford a $500 Moonshot here and there. And that’s especially true when you have insight into the next big Reddit stock.
So how can you know how much to spend on a Moonshot?
I typically use a modified version of the Kelly Criterion, a formula developed by J.L. Kelly of Bell Labs in 1956 and used by professional gamblers. (For stocks, I recommend no more than “half-Kelly” or “quarter-Kelly” because we tend to underestimate long-tailed stock risks).
Others might turn to Warren Buffett’s more straightforward “20-punch-card” approach and make only a few concentrated bets in their lifetimes.
But you can also go by a simpler rule: if you can lose that money and not feel bad, then that’s the amount you should invest. For some, that’s $20 to $50. For others, that’s $1,000. Just think about how much you could lose in a casino without either 1) losing sleep or 2) having your spouse lose sleep.
FINDING THE NEXT MOONSHOT INVESTMENT
Once you’ve budgeted out your “Moonshot Fund,” how do you go about finding the next 100x Moonshot?
First, focus on cheap assets. Buying GameStop (NYSE:GME) at $4 has a far more significant upside than buying in at $250. Dogecoin (CCC:DOGE-USD) at $0.0001 is more attractive than DOGE at $0.50.
Second, find investments with some Reddit excitement. Redditors tend to do better at identifying promising industries than Wall Street expects.
Finally, avoid frauds. Hot stocks such as Lordstown Motors (NASDAQ:RIDE) and Nikola (NASDAQ:NKLA) might wow investors for a while, but accounting shenanigans usually hide a rotten core business.
I’ve ranked this week’s list of sub-$10 stocks by cheapness and momentum. As usual, some have longer odds than others. Bankrupt satellite company Intelsat (OTCMKTS:INTEQ) will probably see shares drop to zero but could rise 20x if a white-knight investor steps in. (Perhaps Jeff Bezos wants to compete against Elon Musk’s Starlink program?) Bankrupt pharma company Mallinckrodt (OTCMKTS:MNKKQ) faces even higher hurdles with billions stuck in opioid litigation claims.
Others like Express (NYSE:EXPR) offer a more conservative Reddit-driven bump. The struggling mall retailer could easily see shares rise 5x as people replenish their wardrobes for going back to the office. Teekay Tankers (NYSE:TNK) might see a similar short-term boost as Reddit favorite Castor Maritime (NASDAQ:CTRM) did in January.
Finally, this week’s list also features Venator (NYSE:VNTR), a titanium dioxide producer that’s starting to reap the benefits of industry consolidation. Blue-chip competitors Chemours (NYSE:CC) and Tronox (NYSE:TROX) have already seen share rises of 150% to 200% since 2020. Smaller firms like Venator could become a takeout target as the big players continue to consolidate.
Closing Thoughts: Long-term Investing Isn’t What It Used to Be
Those born in the 1930s would have seen wars, inflation, and the constant threat of nuclear disaster. But they would have also seen 10-year bond rates of 7.5% and stock returns of 10%.
Today, bond yields are a paltry 1.5% — a rounding error to most investors. Stock and real estate return expectations are also lower than ever.
That’s why investors are turning to speculative investments like cryptocurrencies and meme stocks to make up the difference.
Done poorly, these speculative bets will make your money vanish forever. 70% of bankrupt companies leave investors with nothing, according to a study by Associate Professor Philip Russel at Philadelphia University. And according to BscScan only 143 of 642,769 BEP-20 Binance (CCC:BNB-USD) tokens have any discernible market capitalization.
But risky bets are also a hotbed of mispriced Moonshots. Because when stocks are too small and scary for Wall Street to play in, you’ll quickly find yourself as the shark in a pool of minnows.
FREE REPORT: 17 Reddit Penny Stocks to Buy Now
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On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Reddit Stocks: How to Become a Millionaire With Meme Investing 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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Finally, this week’s list also features Venator (NYSE:VNTR), a titanium dioxide producer that’s starting to reap the benefits of industry consolidation. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re thinking, “things are harder these days,” you’re probably right. That’s made everything from paying down student loans (an average balance of $38,255) to paying for essentials (74% of income) harder than ever for young families.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re thinking, “things are harder these days,” you’re probably right. That’s made everything from paying down student loans (an average balance of $38,255) to paying for essentials (74% of income) harder than ever for young families. And if you’re older, you’re probably worried too; healthcare costs are 30 times higher today than in 1970.
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I encourage everyone to put around 95% savings into long-term investments as their “main course.” I prefer high ROIC companies with wide competitive moats — John Deere (NYSE:DE), Adobe (NASDAQ:ADBE), UnitedHealth (NYSE:UNH) — or low-cost target-date index funds. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re thinking, “things are harder these days,” you’re probably right. That’s made everything from paying down student loans (an average balance of $38,255) to paying for essentials (74% of income) harder than ever for young families.
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That’s assuming they only find a 100x returner once per decade; finding one every five years will mean you’ll be sitting on $3.2 million just as your friends are retiring. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re thinking, “things are harder these days,” you’re probably right. That’s made everything from paying down student loans (an average balance of $38,255) to paying for essentials (74% of income) harder than ever for young families.
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bfb8fc40-5805-4e58-8f83-99943bfb0002
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721518.0
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2021-06-18 00:00:00 UTC
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AGCO Stock Likely To Rebound After A 7% Drop In A Week
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DE
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https://www.nasdaq.com/articles/agco-stock-likely-to-rebound-after-a-7-drop-in-a-week-2021-06-18
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nan
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nan
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The stock price of AGCO (NASDAQ:AGCO), an agricultural machinery manufacturer, has seen a 7% drop over the last five trading days. While there was no company-specific announcement, the industrial stocks focused on agriculture and construction equipment have seen a sell-off last week, with Caterpillar and Deere also down over 5% over the same period.
Now that AGCO stock has fallen 7% in just five days, will it resume its downward trajectory over the coming weeks, or is a rise in the stock imminent? Going by the historical performance of AGCO stock, it appears that the stock will rebound in the near term. Using the recent trend (7% fall in a week) and ten years of historical stock data, the Trefis AI engine finds that AGCO stock will likely move by over 5% over the next one month (twenty-one trading days). Also, the age of farming equipment in the U.S. is now above average, and this will likely result in a strong demand as farmers look at replacing the existing equipment, boding well for AGCO stock.
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for AGCO stock average around 4.9% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), marking a 2.3% excess return compared to the S&P500. Also, there is a 67% probability of a positive return over the next twenty-one trading days and 52% percent probability of a positive excess return.
But how would these numbers change if you are interested in holding AGCO stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test AGCO stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
Some Fun Scenarios, FAQs & Making Sense of AGCO Stock Movements:
Question 1: Is the average return for AGCO stock higher after a drop?
Answer: Consider two situations,
Case 1: AGCO stock drops by -5% or more in a week
Case 2: AGCO stock rises by 5% or more in a week
Is the average return for AGCO stock higher over the subsequent month after Case 1 or Case 2?
AGCO stock fares better after Case 1, with an average return of 4.7% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.1% for Case 2.
Try the Trefis machine learning engine above to see for yourself how AGCO stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold AGCO stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
You can try the engine to see what this table looks like for AGCO after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
It’s pretty powerful to test the trend for yourself for AGCO stock by changing the inputs in the charts above.
While AGCO stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Techne vs Generac Holdings.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and 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 there was no company-specific announcement, the industrial stocks focused on agriculture and construction equipment have seen a sell-off last week, with Caterpillar and Deere also down over 5% over the same period. Also, the age of farming equipment in the U.S. is now above average, and this will likely result in a strong demand as farmers look at replacing the existing equipment, boding well for AGCO stock. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for AGCO stock average around 4.9% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), marking a 2.3% excess return compared to the S&P500.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for AGCO stock average around 4.9% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), marking a 2.3% excess return compared to the S&P500. While there was no company-specific announcement, the industrial stocks focused on agriculture and construction equipment have seen a sell-off last week, with Caterpillar and Deere also down over 5% over the same period. Also, the age of farming equipment in the U.S. is now above average, and this will likely result in a strong demand as farmers look at replacing the existing equipment, boding well for AGCO stock.
|
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for AGCO stock average around 4.9% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), marking a 2.3% excess return compared to the S&P500. Answer: Consider two situations, Case 1: AGCO stock drops by -5% or more in a week Case 2: AGCO stock rises by 5% or more in a week Is the average return for AGCO stock higher over the subsequent month after Case 1 or Case 2? AGCO stock fares better after Case 1, with an average return of 4.7% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.1% for Case 2.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for AGCO stock average around 4.9% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), marking a 2.3% excess return compared to the S&P500. While there was no company-specific announcement, the industrial stocks focused on agriculture and construction equipment have seen a sell-off last week, with Caterpillar and Deere also down over 5% over the same period. Also, the age of farming equipment in the U.S. is now above average, and this will likely result in a strong demand as farmers look at replacing the existing equipment, boding well for AGCO stock.
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92a2d73e-6a76-481a-bf59-795c030a5fd6
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721519.0
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2021-06-17 00:00:00 UTC
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DE August 20th Options Begin Trading
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DE
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https://www.nasdaq.com/articles/de-august-20th-options-begin-trading-2021-06-17
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the August 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new August 20th contracts and identified one put and one call contract of particular interest.
The put contract at the $300.00 strike price has a current bid of $6.85. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $300.00, but will also collect the premium, putting the cost basis of the shares at $293.15 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $324.10/share today.
Because the $300.00 strike represents an approximate 7% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.28% return on the cash commitment, or 13.02% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $300.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $340.00 strike price has a current bid of $8.75. If an investor was to purchase shares of DE stock at the current price level of $324.10/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $340.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.61% if the stock gets called away at the August 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $340.00 strike highlighted in red:
Considering the fact that the $340.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.70% boost of extra return to the investor, or 15.40% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $324.10) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $340.00 strike highlighted in red: Considering the fact that the $340.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the August 20th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $340.00 strike highlighted in red: Considering the fact that the $340.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the August 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new August 20th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $300.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $340.00 strike price has a current bid of $8.75. Below is a chart showing DE's trailing twelve month trading history, with the $340.00 strike highlighted in red: Considering the fact that the $340.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new August 20th contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $340.00 strike highlighted in red: Considering the fact that the $340.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the August 20th expiration.
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bcea86c4-2503-459a-aefb-29509607f767
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721520.0
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2021-06-16 00:00:00 UTC
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Implied VOOG Analyst Target Price: $280
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DE
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https://www.nasdaq.com/articles/implied-voog-analyst-target-price%3A-%24280-2021-06-16
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard S&P 500 Growth ETF (Symbol: VOOG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $280.20 per unit.
With VOOG trading at a recent price near $254.06 per unit, that means that analysts see 10.29% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VOOG's underlying holdings with notable upside to their analyst target prices are Deere & Co. (Symbol: DE), Qorvo Inc (Symbol: QRVO), and Freeport-McMoRan Inc (Symbol: FCX). Although DE has traded at a recent price of $338.10/share, the average analyst target is 12.31% higher at $379.73/share. Similarly, QRVO has 12.27% upside from the recent share price of $181.91 if the average analyst target price of $204.22/share is reached, and analysts on average are expecting FCX to reach a target price of $41.86/share, which is 11.32% above the recent price of $37.60. Below is a twelve month price history chart comparing the stock performance of DE, QRVO, and FCX:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard S&P 500 Growth ETF VOOG $254.06 $280.20 10.29%
Deere & Co. DE $338.10 $379.73 12.31%
Qorvo Inc QRVO $181.91 $204.22 12.27%
Freeport-McMoRan Inc FCX $37.60 $41.86 11.32%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and 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 DE has traded at a recent price of $338.10/share, the average analyst target is 12.31% higher at $379.73/share. Vanguard S&P 500 Growth ETF VOOG $254.06 $280.20 10.29% Deere & Co. DE $338.10 $379.73 12.31% Qorvo Inc QRVO $181.91 $204.22 12.27% Freeport-McMoRan Inc FCX $37.60 $41.86 11.32% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of VOOG's underlying holdings with notable upside to their analyst target prices are Deere & Co. (Symbol: DE), Qorvo Inc (Symbol: QRVO), and Freeport-McMoRan Inc (Symbol: FCX). Similarly, QRVO has 12.27% upside from the recent share price of $181.91 if the average analyst target price of $204.22/share is reached, and analysts on average are expecting FCX to reach a target price of $41.86/share, which is 11.32% above the recent price of $37.60. Vanguard S&P 500 Growth ETF VOOG $254.06 $280.20 10.29% Deere & Co. DE $338.10 $379.73 12.31% Qorvo Inc QRVO $181.91 $204.22 12.27% Freeport-McMoRan Inc FCX $37.60 $41.86 11.32% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, QRVO has 12.27% upside from the recent share price of $181.91 if the average analyst target price of $204.22/share is reached, and analysts on average are expecting FCX to reach a target price of $41.86/share, which is 11.32% above the recent price of $37.60. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With VOOG trading at a recent price near $254.06 per unit, that means that analysts see 10.29% upside for this ETF looking through to the average analyst targets of the underlying holdings. Vanguard S&P 500 Growth ETF VOOG $254.06 $280.20 10.29% Deere & Co. DE $338.10 $379.73 12.31% Qorvo Inc QRVO $181.91 $204.22 12.27% Freeport-McMoRan Inc FCX $37.60 $41.86 11.32% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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24b8056a-d4f8-4069-9d27-51ca560b39cb
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721521.0
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2021-06-15 00:00:00 UTC
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After An 11% Fall Deere Stock Looks Undervalued
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DE
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https://www.nasdaq.com/articles/after-an-11-fall-deere-stock-looks-undervalued-2021-06-15
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nan
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nan
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[Updated: 6/11/2021] DE Stock Decline
The stock price of Deere & Company (NYSE:DE) has seen an 11% drop over the last twenty-one trading days, and we believe the stock will likely rebound in the near term. There has been no announcement from the company that may result in a correction in DE stock. That said, DE stock did see a massive 2.6x rally from levels of $151 in June last year to levels of around $394 last month. This marks a significant outperformance compared to the broader markets with the S&P500 up only 32%. This can be attributed to upbeat results over the recent quarters, improved demand outlook, and an expected rebound in the economy sooner than earlier anticipated.
Now that DE stock has seen a fall of 11% in twenty-one trading days, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a solid 71% chance of a rise in DE stock over the next month. Out of 97 instances in the last ten years that Deere stock saw a twenty-one day drop of 11% or more, 69 of them resulted in DE stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 69 out of 97, or about 71% chance of gain in DE stock over the coming month. See our analysis on Deere Stock Chances of Rise for more details.
Furthermore, going by our Deere Valuation of $425, we believe the stock, after the recent correction, is undervalued, and it can offer an upside of nearly 25% from the current levels of around $340. The company raised its full-year outlook last month on strong demand for farming equipment. The age of farming equipment in the U.S. is now above average, and the company expects to see a strong demand as farmers look at replacing the existing equipment. This clubbed with a recovery in construction demand will bode well for DE stock going forward. The recent decline offers a good entry point for long term investors to buy Deere stock.
Twenty-One Days: DE -11%, vs. S&P500 2.3%; Underperformed market
(4% likelihood event; 71% probability of rise over next 21 days)
Deere & company stock declined 11% the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 2.3%
A change of -11% or more over twenty-one trading days is a 4% likelihood event, which has occurred 97 times out of 2516 in the last 10 years
Of these 97 instances, the stock has seen a positive movement over the next twenty-one trading days on 69 occasions
This points to a 71% probability for the stock rising over the next twenty-one trading days
Ten Days: DE -4.6%, vs. S&P500 1.2%; Underperformed market
(10% likelihood event; 65% probability of rise over next 10 days)
Deere & company stock declined 4.6% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 1.2%
A change of -4.6% or more over ten trading days is a 10% likelihood event, which has occurred 250 times out of 2516 in the last 10 years
Of these 250 instances, the stock has seen a positive movement over the next ten trading days on 162 occasions
This points to a 65% probability for the stock rising over the next ten trading days
[Updated: 5/24/2021] Deere Stock Update
The stock price of Deere & Company (NYSE:DE) has seen a 5% drop over the last five trading days. Much of this decline came in before the company’s earnings announcement on Friday last week. The company reported its fiscal Q2 results, which were well above the street estimates. Deere’s fiscal Q2 revenue of $11.0 billion (up 34% y-o-y) was much higher than our forecast of $10.2 billion, and the consensus estimate of $10.4 billion. This can be attributed to strong demand for both construction as well as agricultural equipment. Looking at the bottom line, Deere’s EPS of $5.68 was also well above our forecast of $4.25 and $4.52 per consensus estimates. The large bottom-line growth (up 2.7x y-o-y) can be attributed to both revenue growth as well as margin expansion, due to lower operating expenses.
Given that DE stock has fallen 5% in just five days, will it resume its downward trajectory over the coming weeks, or is a rise in the stock imminent? We believe that the stock will rebound in the near term. DE stock was up only 1% on Friday despite a strong Q2 beat. This can be attributed to the company’s management stating that it expects supply-chain issues for the remainder of the year. That said, the company has revised its guidance upward with net income now estimated to be in the range of $5.3 and $5.7 billion, compared to earlier guidance of $4.6 to $5.0 billion. Also, using the recent trend (5% fall in a week) and ten years of historical stock data, the Trefis AI engine finds that DE stock will likely move higher over the next one month (twenty-one trading days).
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). More importantly, there is a good 68% probability of a positive return over the next twenty-one trading days and 60% percent probability of a positive excess return.
But how would these numbers change if you are interested in holding DE stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Deere & Company stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
Some Fun Scenarios, FAQs & Making Sense of Deere Stock Movements:
Question 1: Is the average return for Deere & company stock higher after a drop?
Answer: Consider two situations,
Case 1: Deere & company stock drops by -5% or more in a week
Case 2: Deere & company stock rises by 5% or more in a week
Is the average return for Deere & company stock higher over the subsequent month after Case 1 or Case 2?
DE stock fares better after Case 1, with an average return of 5.3% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.1% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Deere & company stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Deere & company stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For DE stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although DE stock appears to be an exception to this general observation.
It’s pretty powerful to test the trend for yourself for Deere & company stock by changing the inputs in the charts above.
[Updated: 5/18/2021] Deere Q2 Earnings Preview
Deere & Company (NYSE:DE) is scheduled to report its fiscal second-quarter results on Friday, May 21. We expect Deere to likely post revenues and earnings slightly below the consensus estimates. Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies are opening up gradually, bolstering its overall revenue growth during the quarter. Our forecast indicates that Deere’s valuation is around $384 per share, which is in-line with the current market price. Now, based on our estimates, the company will likely report numbers below the street expectations, which is likely to result in DE stock trading lower post the Q1 announcement, and that may offer a good entry point for long term investors to buy the stock. Look at our interactive dashboard analysis on Deere & Company Pre-Earnings: What To Expect in Q2? for more details.
(1) Revenues expected to be below the consensus estimate
Trefis estimates Deere’s Q2 fiscal 2021 total revenues to be around $10.2 Bil, slightly below the consensus estimate of $10.4 Bil. The company saw a strong rebound in the demand for construction as well as agriculture equipment in Q1, with revenue rising a solid 19% to $9.1 billion. The company, of late, has seen an increase in spending on agricultural equipment, primarily small tractors, and this could continue to drive the revenue growth in Q2. Deere in its previousearnings conference callprovided an outlook for roughly 20% revenue growth for both Agriculture & Turf as well as Construction & Forestry segments in 2021, primarily small agriculture, which ended the year at historic lows for inventory to sales ratio, and the company expects the inventory levels to rebound in 2021. However, a high inflation due to high demand and supply constraints post the pandemic could result in increased expenses for farmers, impacting the overall spend on agricultural equipment, over the coming quarters. Our dashboard on Deere Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be below the consensus estimates
Deere’s Q2 2021 earnings per share (EPS) is expected to be $4.25 per Trefis analysis, 6% below the consensus estimate of $4.52. Deere’s net income of $1.2 billion in Q1, reflected a 137% growth from its $517 million profit in the prior year quarter, led by a decline in operating expenses. Q1 also saw a higher price realization for all the segments, aiding the overall margins, a trend which may continue in Q2 as well. Looking at the full year 2021, we expect a 70% y-o-y growth in EPS to $14.75, aided by both revenue growth as well as margin expansion.
(3) Stock price estimate in-line with the current market price
Going by our Deere & Company Valuation, with an EPS estimate of around $14.75 and P/E multiple of 26x in fiscal 2021, this translates into a price of $384, which is in-line with the current market price – $384.
Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, the demand for both agriculture as well as construction equipment is seeing a rebound as the spread of the virus subsides, and this will result in strong revenue and earnings growth for Deere in the near term, in our view. That said, the rebound appears to be already priced in the current share value of $384, implying DE stock is fully valued at the current levels.
Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year
While DE stock looks fully valued, it is helpful to see how its peers stack up. DE stock comparison with its peers summarizes how Deere compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and 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 can be attributed to upbeat results over the recent quarters, improved demand outlook, and an expected rebound in the economy sooner than earlier anticipated. Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies are opening up gradually, bolstering its overall revenue growth during the quarter. Deere’s net income of $1.2 billion in Q1, reflected a 137% growth from its $517 million profit in the prior year quarter, led by a decline in operating expenses.
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Twenty-One Days: DE -11%, vs. S&P500 2.3%; Underperformed market (4% likelihood event; 71% probability of rise over next 21 days) Deere & company stock declined 11% the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 2.3% A change of -11% or more over twenty-one trading days is a 4% likelihood event, which has occurred 97 times out of 2516 in the last 10 years Of these 97 instances, the stock has seen a positive movement over the next twenty-one trading days on 69 occasions This points to a 71% probability for the stock rising over the next twenty-one trading days Ten Days: DE -4.6%, vs. S&P500 1.2%; Underperformed market (10% likelihood event; 65% probability of rise over next 10 days) Deere & company stock declined 4.6% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 1.2% A change of -4.6% or more over ten trading days is a 10% likelihood event, which has occurred 250 times out of 2516 in the last 10 years Of these 250 instances, the stock has seen a positive movement over the next ten trading days on 162 occasions This points to a 65% probability for the stock rising over the next ten trading days [Updated: 5/24/2021] Deere Stock Update The stock price of Deere & Company (NYSE:DE) has seen a 5% drop over the last five trading days. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). Now, based on our estimates, the company will likely report numbers below the street expectations, which is likely to result in DE stock trading lower post the Q1 announcement, and that may offer a good entry point for long term investors to buy the stock.
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Twenty-One Days: DE -11%, vs. S&P500 2.3%; Underperformed market (4% likelihood event; 71% probability of rise over next 21 days) Deere & company stock declined 11% the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 2.3% A change of -11% or more over twenty-one trading days is a 4% likelihood event, which has occurred 97 times out of 2516 in the last 10 years Of these 97 instances, the stock has seen a positive movement over the next twenty-one trading days on 69 occasions This points to a 71% probability for the stock rising over the next twenty-one trading days Ten Days: DE -4.6%, vs. S&P500 1.2%; Underperformed market (10% likelihood event; 65% probability of rise over next 10 days) Deere & company stock declined 4.6% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 1.2% A change of -4.6% or more over ten trading days is a 10% likelihood event, which has occurred 250 times out of 2516 in the last 10 years Of these 250 instances, the stock has seen a positive movement over the next ten trading days on 162 occasions This points to a 65% probability for the stock rising over the next ten trading days [Updated: 5/24/2021] Deere Stock Update The stock price of Deere & Company (NYSE:DE) has seen a 5% drop over the last five trading days. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). Answer: Consider two situations, Case 1: Deere & company stock drops by -5% or more in a week Case 2: Deere & company stock rises by 5% or more in a week Is the average return for Deere & company stock higher over the subsequent month after Case 1 or Case 2?
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[Updated: 6/11/2021] DE Stock Decline The stock price of Deere & Company (NYSE:DE) has seen an 11% drop over the last twenty-one trading days, and we believe the stock will likely rebound in the near term. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). The company saw a strong rebound in the demand for construction as well as agriculture equipment in Q1, with revenue rising a solid 19% to $9.1 billion.
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274e7bd2-101a-4083-9f0e-91c814bf8b04
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721522.0
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2021-06-11 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, VLO, PSA
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-de-vlo-psa-2021-06-11
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 18,092 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 94.4% of DE's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $240 strike put option expiring June 18, 2021, with 2,300 contracts trading so far today, representing approximately 230,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $240 strike highlighted in orange:
Valero Energy Corp (Symbol: VLO) options are showing a volume of 28,582 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 85.1% of VLO's average daily trading volume over the past month, of 3.4 million shares. Especially high volume was seen for the $85 strike call option expiring July 16, 2021, with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of VLO. Below is a chart showing VLO's trailing twelve month trading history, with the $85 strike highlighted in orange:
And Public Storage (Symbol: PSA) options are showing a volume of 5,904 contracts thus far today. That number of contracts represents approximately 590,400 underlying shares, working out to a sizeable 79.8% of PSA's average daily trading volume over the past month, of 740,095 shares. Particularly high volume was seen for the $250 strike call option expiring June 18, 2021, with 1,503 contracts trading so far today, representing approximately 150,300 underlying shares of PSA. Below is a chart showing PSA's trailing twelve month trading history, with the $250 strike highlighted in orange:
For the various different available expirations for DE options, VLO options, or PSA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $240 strike put option expiring June 18, 2021, with 2,300 contracts trading so far today, representing approximately 230,000 underlying shares of DE. Especially high volume was seen for the $85 strike call option expiring July 16, 2021, with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of VLO. Particularly high volume was seen for the $250 strike call option expiring June 18, 2021, with 1,503 contracts trading so far today, representing approximately 150,300 underlying shares of PSA.
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Below is a chart showing DE's trailing twelve month trading history, with the $240 strike highlighted in orange: Valero Energy Corp (Symbol: VLO) options are showing a volume of 28,582 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 85.1% of VLO's average daily trading volume over the past month, of 3.4 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 18,092 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 18,092 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 85.1% of VLO's average daily trading volume over the past month, of 3.4 million shares. Especially high volume was seen for the $85 strike call option expiring July 16, 2021, with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of VLO.
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Especially high volume was seen for the $240 strike put option expiring June 18, 2021, with 2,300 contracts trading so far today, representing approximately 230,000 underlying shares of DE. Especially high volume was seen for the $85 strike call option expiring July 16, 2021, with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of VLO. Below is a chart showing PSA's trailing twelve month trading history, with the $250 strike highlighted in orange: For the various different available expirations for DE options, VLO options, or PSA options, visit StockOptionsChannel.com.
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01487afd-868f-44f1-9868-99fc362227de
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721523.0
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2021-06-10 00:00:00 UTC
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You Don't Want to Overlook This Electric Vehicle Stock
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DE
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https://www.nasdaq.com/articles/you-dont-want-to-overlook-this-electric-vehicle-stock-2021-06-10
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nan
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nan
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Electric vehicle technology company Proterra is set to go public via a merger with special purpose acquisition company ArcLight Clean Transition Corp (NASDAQ: ACTC). But despite having some impressive potential, it isn't one of the best-known EV stocks. In this Fool Live video clip, recorded on June 3, Fool.com contributor Matt Frankel, CFP, discusses why this could be a tremendous opportunity in the exciting EV space.
10 stocks we like better than ArcLight Clean Transition Corp.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and ArcLight Clean Transition Corp. 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 June 7, 2021
Matt Frankel: One that I am watching is called ArcLight Clean Transition Corp. That doesn't sound that fun to say. It doesn't really tell the story. But they are acquiring a company known as Proterra to take public. Currently, they are trading under the SPAC ticker symbol, which is ACTC, but starting in a couple of weeks, they will be trading under the Proterra ticker symbol PTRA. The shareholder vote scheduled for the 11th of this month. Assuming it gets approved, which it should -- investors seem to love this deal, it should start trading under its own ticker symbol within the next day or so after that.
What does Proterra do? Proterra is an electric vehicle stock but not like one of the ones that makes the super sports cars, that do zero to 60 in 1 1/2 seconds or any of that. That's not what Proterra does. Their primary focus is battery technology for heavy-duty applications, meaning commercial vehicles. They also produce some commercial vehicles themselves. They are the No. 1 electric bus maker in North America. They've about a 50% market share of the electric bus market in North America. They've already sold over 1,000 vehicles. But, the real potential is their battery technology. If you think it's hard and it's been a struggle for companies to develop batteries for small cars, you should see them trying to develop batteries for an excavator or something to that effect. It's a big logistical challenge, big technology. There is a lot of roadblocks there. That's really where their potential is. They see the commercial electric vehicle market as about $260 billion in size. That's a pretty big opportunity. Their current revenue, by the way, is about $200 million a year. They're not a pre-revenue company like a lot of these SPAC companies are that you hear about, especially in the electric vehicle space. But, they're still a pretty small operation relative to their potential. They have sold a lot of vehicles that they haven't delivered yet. They've about a $750 million backlog of business. They recently sold over 300 electric school buses to one school district, for example. The real value is they want to use their technology with other commercial vehicle manufacturers as more of a capital-light way to get their product into this giant market. They're not partnered with them yet. Think of companies like Caterpillar and Deere, that they could potentially partner with. They already have a partnership with Komatsu, I think I'm saying that correctly, to provide electric power systems for excavators. Big opportunity there. They could be a big beneficiary of the infrastructure bill if it comes to fruition, too. Because of that, companies will be investing billions of dollars in the next generation of earth-moving equipment and things like that.
The SPAC deal valued Proterra at $1.6 billion, but that was based on a $10 share price. It's trading much higher than that right now, because like I said, investors seem to really love this deal. Based on the current share price, the value of Proterra is about $3 billion, which compared to some of these other electric vehicle companies, is like $0.05. If you look at some of these others, even some that are pre-revenue, that's very small valuation. The trends are just pointing in favor of commercial electric vehicles. FedEx already said they want to be 100% electric by 2030, for example, 15 different states have already passed legislation for 100% electric trucks on their roads by 2050. Big, long-tailed addressable market here in the commercial vehicle space. Proterra has superior technology to anyone else in the market right now. It's one that I'm watching. I do not own shares yet, but it is toward the top of my watch list. The reason I don't own shares yet is because I talk about it too much on articles and on shows like this. As soon as I can shut up about it for a few days, I might add some to my portfolio. But that's Proterra, a company that a lot of people haven't heard of, and one that you should keep on your radar over the next few years.
Matthew Frankel, CFP owns shares of FedEx. The Motley Fool owns shares of and recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this Fool Live video clip, recorded on June 3, Fool.com contributor Matt Frankel, CFP, discusses why this could be a tremendous opportunity in the exciting EV space. But despite having some impressive potential, it isn't one of the best-known EV stocks. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Assuming it gets approved, which it should -- investors seem to love this deal, it should start trading under its own ticker symbol within the next day or so after that. But despite having some impressive potential, it isn't one of the best-known EV stocks. In this Fool Live video clip, recorded on June 3, Fool.com contributor Matt Frankel, CFP, discusses why this could be a tremendous opportunity in the exciting EV space.
|
But despite having some impressive potential, it isn't one of the best-known EV stocks. In this Fool Live video clip, recorded on June 3, Fool.com contributor Matt Frankel, CFP, discusses why this could be a tremendous opportunity in the exciting EV space. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
But despite having some impressive potential, it isn't one of the best-known EV stocks. In this Fool Live video clip, recorded on June 3, Fool.com contributor Matt Frankel, CFP, discusses why this could be a tremendous opportunity in the exciting EV space. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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bc994f33-2410-40ad-af94-f5724f70196d
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721524.0
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2021-06-07 00:00:00 UTC
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DE Trading Below Director's Recent Buy Price
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DE
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https://www.nasdaq.com/articles/de-trading-below-directors-recent-buy-price-2021-06-07
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nan
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nan
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There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on June 2, Deere & Co.'s Director, Tami A. Erwin, invested $98,892.80 into 275 shares of DE, for a cost per share of $359.61. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Monday, bargain hunters could buy shares of Deere & Co. (Symbol: DE) and achieve a cost basis even cheaper than Erwin, with shares changing hands as low as $357.07 per share. Deere & Co. shares are currently trading up about 0.7% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $148.12 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $359.46. By comparison, below is a table showing the prices at which DE insider buying was recorded over the last six months:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
06/02/2021 Tami A. Erwin Director 275 $359.61 $98,892.80
The current annualized dividend paid by Deere & Co. is $3.6/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/29/2021. Below is a long-term dividend history chart for DE, which can be of good help in judging whether the most recent dividend with approx. 1.0% annualized yield is likely to continue.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »
The views and 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 chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $148.12 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $359.46. By comparison, below is a table showing the prices at which DE insider buying was recorded over the last six months: Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other dividend bargains you can buy cheaper than insiders » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Back on June 2, Deere & Co.'s Director, Tami A. Erwin, invested $98,892.80 into 275 shares of DE, for a cost per share of $359.61. In trading on Monday, bargain hunters could buy shares of Deere & Co. (Symbol: DE) and achieve a cost basis even cheaper than Erwin, with shares changing hands as low as $357.07 per share. 06/02/2021 Tami A. Erwin Director 275 $359.61 $98,892.80 The current annualized dividend paid by Deere & Co. is $3.6/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/29/2021.
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In trading on Monday, bargain hunters could buy shares of Deere & Co. (Symbol: DE) and achieve a cost basis even cheaper than Erwin, with shares changing hands as low as $357.07 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $148.12 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $359.46. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other dividend bargains you can buy cheaper than insiders » The views and 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's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. 06/02/2021 Tami A. Erwin Director 275 $359.61 $98,892.80 The current annualized dividend paid by Deere & Co. is $3.6/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/29/2021. Below is a long-term dividend history chart for DE, which can be of good help in judging whether the most recent dividend with approx.
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c9c502eb-9cf4-46c8-8479-bf5df607410e
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721525.0
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2021-06-05 00:00:00 UTC
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Trade Alert: The Independent Director Of Deere & Company (NYSE:DE), Tamara Erwin, Has Just Spent US$99k Buying 22% More Shares
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DE
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https://www.nasdaq.com/articles/trade-alert%3A-the-independent-director-of-deere-company-nyse%3Ade-tamara-erwin-has-just-spent
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nan
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nan
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Whilst it may not be a huge deal, we thought it was good to see that the Deere & Company (NYSE:DE) Independent Director, Tamara Erwin, recently bought US$99k worth of stock, for US$360 per share. That purchase might not be huge but it did increase their holding by 22%.
Deere Insider Transactions Over The Last Year
Notably, that recent purchase by Tamara Erwin is the biggest insider purchase of Deere shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$357). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Tamara Erwin was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:DE Insider Trading Volume June 5th 2021
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Deere
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Deere insiders own 0.2% of the company, worth about US$217m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Deere Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Deere insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Deere you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Whilst it may not be a huge deal, we thought it was good to see that the Deere & Company (NYSE:DE) Independent Director, Tamara Erwin, recently bought US$99k worth of stock, for US$360 per share. I reckon it's a good sign if insiders own a significant number of shares in the company. Deere Insider Transactions Over The Last Year Notably, that recent purchase by Tamara Erwin is the biggest insider purchase of Deere shares that we've seen in the last year.
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Whilst it may not be a huge deal, we thought it was good to see that the Deere & Company (NYSE:DE) Independent Director, Tamara Erwin, recently bought US$99k worth of stock, for US$360 per share. Deere Insider Transactions Over The Last Year Notably, that recent purchase by Tamara Erwin is the biggest insider purchase of Deere shares that we've seen in the last year. When combined with notable insider ownership, these factors suggest Deere insiders are well aligned, and quite possibly think the share price is too low.
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Deere Insider Transactions Over The Last Year Notably, that recent purchase by Tamara Erwin is the biggest insider purchase of Deere shares that we've seen in the last year. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. When combined with notable insider ownership, these factors suggest Deere insiders are well aligned, and quite possibly think the share price is too low.
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Deere Insider Transactions Over The Last Year Notably, that recent purchase by Tamara Erwin is the biggest insider purchase of Deere shares that we've seen in the last year. What Might The Insider Transactions At Deere Tell Us? When combined with notable insider ownership, these factors suggest Deere insiders are well aligned, and quite possibly think the share price is too low.
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b8e842b2-0d4a-4aa8-a830-e68917ff2401
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721526.0
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2021-06-04 00:00:00 UTC
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7 Best Manufacturing Stocks to Buy on Record-High Growth Data
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DE
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https://www.nasdaq.com/articles/7-best-manufacturing-stocks-to-buy-on-record-high-growth-data-2021-06-04
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It cannot be understated how greatly the entire market was affected by 2020. Every industry saw radical changes, and while numerous companies saw their performance worsen drastically, we’ve begun to see recovery and the possibility for new highs. Manufacturing stocks represent a chance to be part of this growth.
Last year, the market rallied as tech stocks were getting bid up as investors realized how important they have become in our daily lives. The telecom infrastructure allowed us to do many consumer and business operations remotely. For months we lived almost entirely by digital connections. It’s possible you wrote off manufacturing as an irrelevant, bygone industry.
But while that was happening, there was another rally that began that was looking forward to the return to normalcy and the physical economy. All the money that was poured into stimulus packages was keeping the economy alive until the pandemic waned.
We saw that happen and now the markets are rotating back into manufacturing stocks, the stocks that drive the physical economy. And economic recovery is no longer a hope, but a reality.
7 Best Vaccine Stocks for Their Pipeline Potential
The seven best manufacturing stocks I highlight below are your best choices to ride this recovery not just in the U.S., but around the world:
AGCO Corp (NYSE:AGCO)
Carrier Global (NYSE:CARR)
Caterpillar (NYSE:CAT)
Deere & Co (NYSE:DE)
CNH Industrial (NYSE:CNHI)
Generac (NYSE:GNRC)
Johnson Controls (NYSE:JCI)
Manufacturing Stocks: AGCO Corp (AGCO)
Source: Pavel Kapysh / Shutterstock.com
While the name might not be familiar, its sector is. AGCO was formed in 1990 from an agricultural equipment maker — tractors, combines, sprayers, tillers, etc. — that then went on to purchase other agricultural brands around the world.
AGCO is headquartered in Georgia, but its brands are known around the globe. Yet it’s very focused, unlike many of its rivals. That makes it a strong play when countries are trying to produce food as efficiently as possible for as many people as possible. That’s why AGCO has a $10 billion market cap while other more recognizable manufacturing stocks have bigger market caps and valuations.
The stock is up 33% year to date, but it’s still cheap and has plenty more growth ahead.
Portfolio Grader grade: A
Carrier Global (CARR)
If you live anywhere where it gets uncomfortably hot in the summer, then you know Carrier. It’s one of the largest HVAC companies in the world.
It has its origins in 1902, when Willis Carrier invented modern air conditioning technology. In 1979, it was purchased by a big industrial conglomerate. Carrier made up a large portion of its environmental controls division.
But that arrangement started to unwind about five years ago and eventually CARR was spun off in 2018.
With a torrid home sales market, increasing distribution of goods (CARR also provides refrigeration/HVAC units for trucks and warehouses), and low interest rates for home improvements, CARR is well positioned among manufacturing stocks for growth.
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The stock is up 22% year to date, delivers a 1% dividend and trades at a P/E (price to earnings ratio) that’s about half the S&P 500’s average.
Portfolio Grader grade: A
Manufacturing Stocks: Caterpillar (CAT)
Source: aapsky / Shutterstock.com
With a $134 billion market cap, CAT is the biggest manufacturing stock on this list. It is certainly one of the first stocks investors think of when the physical economy begins to grow.
And givens its extensive global network, anywhere construction is going on, CAT is likely there. With massive stimulus packages being passed around the world and central banks determined to keep interest rates low as long as possible, that means growing capital spending from the consumer to corporate to governmental levels. CAT will be a big beneficiary.
Given its brand awareness among manufacturing stocks, it’s no surprise CAT stock is up 34% year to date, while still delivering a 1.7% dividend. This just the beginning of a long upcycle.
Portfolio Grader grade: A
Deere & Co (DE)
Source: Jim Lambert / Shutterstock.com
One of the other manufacturing stocks that people immediately think of is DE and its iconic green and gold farm, forestry, and construction equipment. It also has a financing arm, which is very helpful as farmers (and consumers) look to upgrade equipment while rates are low.
Also, government subsidies for farmers and infrastructure stimulus will help get new equipment into the hands of farmers and organizations that have been waiting for an opportunity to buy smarter, more productive equipment.
Having been around since 1837, DE has seen pretty much every economic boom and bust anyone can imagine, yet still continues to thrive.
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The stock is up 33% year to date and has a 1% dividend. But it’s still a pretty cheap stock with plenty of headroom moving into the new growing season with crop prices rising.
Portfolio Grader grade: A
Manufacturing Stocks: CNH Industrial (CNHI)
Source: Pavel Kapysh / Shutterstock.com
Sometimes referred to as “the Italian version of the Kennedys,” the Agnelli family have their hands in companies specializing in everything from luxury cars to soccer teams.
CNHI is another company that the Agnellis have a controlling stake in. It was founded in 1866 and is a U.S.-Italian company with headquarters in London. It operates brands like Case, New Holland, and Iveco. While it’s a unique play on European growth, it also sells this equipment in the U.S. and around the world.
It’s a broadly diversified manufacturing stock with a $24 billion market cap. The stock is up 38% year to date, and the company’s guidance suggests further growth to come, so this is a good time to get in.
Portfolio Grader grade: A
Generac (GNRC)
Source: Lissandra Melo / Shutterstock.com
Many of the companies here represent the front end of the manufacturing process. GNRC represents the back end. It has been making power generation equipment from its Waukesha, Wisconsin factory since 1959.
Basically, GNRC builds generators for construction, consumer, and industrial uses. When the wildfires broke out in California and powerlines were melting, GNRC was in the news as people were buying up generators like candy. And with the aging US electrical grid, many people are looking for alternatives to help keep the lights on when the grid goes down, especially in the summer heat.
Also, with more renewable energy coming online, GNRC equipment allows owners to store excess energy in batteries so that it’s possible to go almost completely off the grid. All these audiences make this a very timely manufacturing stock.
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Its popularity comes with a premium. The stock is up 41% year to date and it trades at a current P/E of 46. But it’s a twist on traditional manufacturing stocks and is certainly a “green” stock choice as well.
Portfolio Grader grade: A
Manufacturing Stocks: Johnson Controls (JCI)
Source: Jonathan Weiss / Shutterstock.com
The current company is headquartered in Ireland for tax purposes, but JCI got its start in Wisconsin in 1883, when Warren Johnson received a patent for the first electric room thermostat.
To this day, JCI is a leader in environmental controls — fire, HVAC, power solutions, security — for buildings and homes around the world. It has been very influential in the “smart building” concept for many years and has been a force in helping retrofit older buildings with more energy efficient solutions.
Like GNRC, it straddles manufacturing stocks and green stocks because it is a key player in reducing energy waste as well as creating new systems for new construction.
The stock is up 43% year to date with a 1.6% dividend, and trades at a premium due to its dual role as a green stock and manufacturing stock.
Portfolio Grader grade: A
On the date of publication, Louis Navellier has positions in AGCO, GNRC, and JCI in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post 7 Best Manufacturing Stocks to Buy on Record-High Growth Data 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 massive stimulus packages being passed around the world and central banks determined to keep interest rates low as long as possible, that means growing capital spending from the consumer to corporate to governmental levels. Portfolio Grader grade: A Manufacturing Stocks: CNH Industrial (CNHI) Source: Pavel Kapysh / Shutterstock.com Sometimes referred to as “the Italian version of the Kennedys,” the Agnelli family have their hands in companies specializing in everything from luxury cars to soccer teams. Portfolio Grader grade: A Generac (GNRC) Source: Lissandra Melo / Shutterstock.com Many of the companies here represent the front end of the manufacturing process.
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7 Best Vaccine Stocks for Their Pipeline Potential The seven best manufacturing stocks I highlight below are your best choices to ride this recovery not just in the U.S., but around the world: AGCO Corp (NYSE:AGCO) Carrier Global (NYSE:CARR) Caterpillar (NYSE:CAT) Deere & Co (NYSE:DE) CNH Industrial (NYSE:CNHI) Generac (NYSE:GNRC) Johnson Controls (NYSE:JCI) Manufacturing Stocks: AGCO Corp (AGCO) Source: Pavel Kapysh / Shutterstock.com While the name might not be familiar, its sector is. Portfolio Grader grade: A Manufacturing Stocks: Caterpillar (CAT) Source: aapsky / Shutterstock.com With a $134 billion market cap, CAT is the biggest manufacturing stock on this list. Portfolio Grader grade: A Manufacturing Stocks: CNH Industrial (CNHI) Source: Pavel Kapysh / Shutterstock.com Sometimes referred to as “the Italian version of the Kennedys,” the Agnelli family have their hands in companies specializing in everything from luxury cars to soccer teams.
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7 Best Vaccine Stocks for Their Pipeline Potential The seven best manufacturing stocks I highlight below are your best choices to ride this recovery not just in the U.S., but around the world: AGCO Corp (NYSE:AGCO) Carrier Global (NYSE:CARR) Caterpillar (NYSE:CAT) Deere & Co (NYSE:DE) CNH Industrial (NYSE:CNHI) Generac (NYSE:GNRC) Johnson Controls (NYSE:JCI) Manufacturing Stocks: AGCO Corp (AGCO) Source: Pavel Kapysh / Shutterstock.com While the name might not be familiar, its sector is. Portfolio Grader grade: A Manufacturing Stocks: Caterpillar (CAT) Source: aapsky / Shutterstock.com With a $134 billion market cap, CAT is the biggest manufacturing stock on this list. The stock is up 43% year to date with a 1.6% dividend, and trades at a premium due to its dual role as a green stock and manufacturing stock.
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Portfolio Grader grade: A Carrier Global (CARR) If you live anywhere where it gets uncomfortably hot in the summer, then you know Carrier. Portfolio Grader grade: A Manufacturing Stocks: Caterpillar (CAT) Source: aapsky / Shutterstock.com With a $134 billion market cap, CAT is the biggest manufacturing stock on this list. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It cannot be understated how greatly the entire market was affected by 2020.
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2021-06-04 00:00:00 UTC
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Noteworthy ETF Outflows: SPYG, DHR, SPGI, DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-spyg-dhr-spgi-de-2021-06-04
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $88.7 million dollar outflow -- that's a 0.8% decrease week over week (from 178,550,000 to 177,050,000). Among the largest underlying components of SPYG, in trading today Danaher Corp (Symbol: DHR) is up about 0.9%, Standard and Poors Global Inc (Symbol: SPGI) is up about 0.4%, and Deere & Co. (Symbol: DE) is lower by about 0.5%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $42.56 per share, with $61.09 as the 52 week high point — that compares with a last trade of $59.74. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $42.56 per share, with $61.09 as the 52 week high point — that compares with a last trade of $59.74. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $42.56 per share, with $61.09 as the 52 week high point — that compares with a last trade of $59.74. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $88.7 million dollar outflow -- that's a 0.8% decrease week over week (from 178,550,000 to 177,050,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $88.7 million dollar outflow -- that's a 0.8% decrease week over week (from 178,550,000 to 177,050,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $42.56 per share, with $61.09 as the 52 week high point — that compares with a last trade of $59.74. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $88.7 million dollar outflow -- that's a 0.8% decrease week over week (from 178,550,000 to 177,050,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $42.56 per share, with $61.09 as the 52 week high point — that compares with a last trade of $59.74. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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721528.0
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2021-06-04 00:00:00 UTC
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2 Agriculture Stocks to Bet on Rising Commodity Prices
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DE
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https://www.nasdaq.com/articles/2-agriculture-stocks-to-bet-on-rising-commodity-prices-2021-06-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One of the big stories in the market this year has been the rise of commodities. The Invesco DB Commodity Index Tracking ETF (NYSEARCA:DBC), which tracks a basket of broad-based commodity futures, is up 28.4% so far this year, compared to the S&P 500’s 12% gain over the same period. Commodity prices have been rising due to the global economic recovery and inflationary concerns. And that has brought attention to agriculture stocks.
Source: Shutterstock
While individual commodities typically rise and fall in cycles, when many rise simultaneously, it is referred to as a commodity supercycle. That appears to be the case now. For instance, crude oil surged above pre-pandemic levels. Grain prices, which hit multi-year lows during the heights of the pandemic, have now risen to multi-year highs driven by solid demand.
Rising prices of commodities have been a boon to agriculture stocks. The VanEck Vectors Agribusiness ETF (NYSEARCA:MOO), which tracks agriculture stocks, is up over 19% year to date. Commodity prices may have taken a breather in May but have since resumed their upward trajectory, which should benefit stocks such as Archer-Daniels-Midland Company (NYSE:ADM) and AGCO Corporation (NYSE:AGCO).
Agriculture Stocks: Archer-Daniels-Midland Company (ADM)
ADM is a leading producer of food and beverage ingredients. The company processes oilseeds, corn, wheat, and other agricultural commodities. It also engages in the manufacturing, sale, and distribution of products like natural flavor ingredients and owns an extensive network of logistical assets to store and transport crops around the globe.
7 Best Vaccine Stocks for Their Pipeline Potential
The company is benefiting from higher commodity prices, driven by tight overall crop supplies, a recovering foodservice industry, and robust demand out of China. ADM saw strong demand for most of its products in the first quarter, evident by its 26.2% year-over-year sales growth. These conditions are driving near-term results.
The Nutrition segment, which is expected to drive growth long-term, jumped 35.5% year over year. The Health and Wellness segment is also performing well, driven by the demand for fibers and probiotics. ADM has an overall grade of A, which translates into a Strong Buy rating in our POWR Ratings system. The company has a Growth Grade of B. It not only showed growth in the first quarter, but earnings are expected to rise 25% this year.
ADM also has a Value Grade of B as it has low valuation metrics across the board. For instance, its forward P/E is 15.15, and its price-to-sales ratio of 0.55 is well below the industry average. We also provide Momentum, Stability, Sentiment, and Quality grades for ADM, which you can find here. ADM is ranked No. 2 in the Agriculture industry. You can find other top stocks in this industry by clicking here.
AGCO Corporation (AGCO)
AGCO is the third-largest agricultural equipment manufacturer, behind Deere (NYSE:DE) and CNH Industrial (NYSE:CNHI). Under its five top brands — Massey Ferguson, Challenger, Fendt, Valtra, and GSI — AGCO offers a full product line of farm equipment through a vast network of dealers and distributors in 140 countries. The company also provides grain handling systems and livestock management solutions.
The grain markets are improving globally in line with the macroeconomic recovery, which directly benefits AGCO. The company is gaining from increased grain consumption and improving demand for farm equipment. In particular, AGCO sees strong revenue growth through higher retail demand in North and South America.
Rising commodity prices should support this demand through the rest of 2021. Plus, replacement demand for aging fleets of larger equipment should also drive growth this year. AGCO has an overall grade of A, translating into a Strong Buy in our POWR Ratings system. The company has a Growth Grade of A, which isn’t surprising as sales are expected to rise 36.7% year over year this quarter, and earnings are forecasted to soar 102.7%.
AGCO also has a Value Grade of A, driven by low valuation figures. Its EV/EBITDA is 11.8, and price-to-sales ratio of 1.1 are both well below the industry averages. For the rest of AGCO’s grades (Momentum, Stability, Sentiment, and Quality), click here. AGCO is rated No. 1 in the same industry as ADM (Agriculture).
On the date of publication, David Cohne 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 Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent eleven years as a Consultant providing outsourcedinvestment researchand content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.
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The post 2 Agriculture Stocks to Bet on Rising Commodity Prices 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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7 Best Vaccine Stocks for Their Pipeline Potential The company is benefiting from higher commodity prices, driven by tight overall crop supplies, a recovering foodservice industry, and robust demand out of China. Under its five top brands — Massey Ferguson, Challenger, Fendt, Valtra, and GSI — AGCO offers a full product line of farm equipment through a vast network of dealers and distributors in 140 countries. The Invesco DB Commodity Index Tracking ETF (NYSEARCA:DBC), which tracks a basket of broad-based commodity futures, is up 28.4% so far this year, compared to the S&P 500’s 12% gain over the same period.
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For the rest of AGCO’s grades (Momentum, Stability, Sentiment, and Quality), click here. The Invesco DB Commodity Index Tracking ETF (NYSEARCA:DBC), which tracks a basket of broad-based commodity futures, is up 28.4% so far this year, compared to the S&P 500’s 12% gain over the same period. For instance, crude oil surged above pre-pandemic levels.
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The Invesco DB Commodity Index Tracking ETF (NYSEARCA:DBC), which tracks a basket of broad-based commodity futures, is up 28.4% so far this year, compared to the S&P 500’s 12% gain over the same period. For instance, crude oil surged above pre-pandemic levels. Grain prices, which hit multi-year lows during the heights of the pandemic, have now risen to multi-year highs driven by solid demand.
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The company has a Growth Grade of B. The Invesco DB Commodity Index Tracking ETF (NYSEARCA:DBC), which tracks a basket of broad-based commodity futures, is up 28.4% so far this year, compared to the S&P 500’s 12% gain over the same period. For instance, crude oil surged above pre-pandemic levels.
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2021-06-03 00:00:00 UTC
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DE July 23rd Options Begin Trading
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https://www.nasdaq.com/articles/de-july-23rd-options-begin-trading-2021-06-03
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Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $347.50 strike price has a current bid of $7.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $347.50, but will also collect the premium, putting the cost basis of the shares at $340.35 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $359.63/share today.
Because the $347.50 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.06% return on the cash commitment, or 15.02% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $347.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $362.50 strike price has a current bid of $10.40. If an investor was to purchase shares of DE stock at the current price level of $359.63/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $362.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.69% if the stock gets called away at the July 23rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $362.50 strike highlighted in red:
Considering the fact that the $362.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.89% boost of extra return to the investor, or 21.11% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $359.63) to be 30%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $362.50 strike highlighted in red: Considering the fact that the $362.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the July 23rd expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $362.50 strike highlighted in red: Considering the fact that the $362.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $347.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $362.50 strike price has a current bid of $10.40. Below is a chart showing DE's trailing twelve month trading history, with the $362.50 strike highlighted in red: Considering the fact that the $362.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 23rd contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $362.50 strike highlighted in red: Considering the fact that the $362.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the July 23rd expiration.
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721530.0
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2021-05-31 00:00:00 UTC
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Best Industrial Stocks To Buy Right Now? 3 Trending Names To Watch
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https://www.nasdaq.com/articles/best-industrial-stocks-to-buy-right-now-3-trending-names-to-watch-2021-05-31
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3 Top Industrial Stocks To Watch In June 2021
It would not surprise me to see that industrial stocks are still among the most active stocks in the stock market now. After all, as most would know, the U.S. economy remains on the upswing. In turn, industrial companies which are arguably the backbone of the economy would stand to prosper as well. While the consensus is such, just how well is the economy doing right now?
For starters, the labor market continues to improve as unemployment claims dropped to 406,000 last week versus estimates of 425,000. This marks yet another consecutive pandemic-era low. Meanwhile, there have been concerns over rising inflation rates amongst investors recently. This would be because of the Consumer Price Index surging at an annualized rate of 4.2% in April. Based on a report by the Bureau of Labor Statistics, this marks the biggest leap in 12 years. However, National Economic Council Deputy Director Bharat Ramamurti did say last week that this “is a good sign”. According to Ramamurti, the rapid jump in consumer prices shows that “the economy is recovering faster than a lot of people expected”. As such, I could see investors eyeing the top industrial stocks now.
For instance, we could look at Johnson Controls International (NYSE: JCI), an Ireland-based building security equipment company. Last week, Barclays (NYSE: BCS) analyst Julian Mitchell hit JCI stock with an Overweight rating. Meanwhile, agriculture-based manufacturing company John Deere (NYSE: DE) appears to be on the uptrend as the economy booms. Overall, both JCI stock and DE stock have more than doubled over the past year. Nevertheless, investors appear to be keen on the top industrial stocks in today’s stock market. If you are too, here are three to know now.
Industrial Stocks To Buy [Or Sell] This Week
Taiwan Semiconductor Manufacturing Company (NYSE: TSM)
Vertex Energy Inc. (NASDAQ: VTNR)
Lockheed Martin Corporation (NYSE: LMT)
Taiwan Semiconductor Manufacturing
First up, we will be taking a look at the Taiwan Semiconductor Manufacturing Company (TSM). In brief, it is the biggest semiconductor manufacturer in the world right now. According to TSM, 85% of worldwide semiconductor start-up product prototypes are enabled via the company and its collaborations.
Source: TD Ameritrade TOS
Now, semiconductors are one of, if not the most important component, in the manufacturing process of virtually all modern tech. From our smart devices to our automobiles, semiconductor chips act as the brains of it all. By extension, this would make TSM stock a relevant industrial tech play in our world today. As it stands, TSM stock is sitting on gains of over 120% in the past year.
Now, the main concern for investors regarding TSM would be the current worldwide global semiconductor chip shortage. As an ideal long-term solution to this, TSM is planning to invest $100 billion to expand its chip fabrication capacities over the next three years. Subsequently, Chairman Mark Liu provided a positive operational update in a CBS interview last month. According to Liu, TSM is looking to catch up with auto chip demands by the end of June. No doubt, the company appears to be kicking into high gear right now as semiconductor demands remain at record highs. Taking all this into consideration, would you consider TSM stock a buy right now?
[Read More] The 11 Sectors Of The Stock Market & Their Biggest ETFs
Vertex Energy Inc.
Another industrial player in focus now would be Vertex Energy. For some context, Vertex is a specialty refiner of alternative feedstocks. The Texas-based company also markets high-purity petroleum products as well. Notably, Vertex is one of the largest processors of secondhand motor oil in the U.S. In terms of scale, the company boasts an annual processing capacity of over 115 million gallons of oil. More importantly, VTNR stock appears to be on investors’ radars now seeing as it more than quadrupled in value last week.
Source: TD Ameritrade TOS
Diving right into it, investors are likely reacting to the company’s latest acquisition. On May 26, Vertex fully acquired Mobile Chemical LP Refinery from Royal Dutch Shell (NYSE: RDS.A). Through this $75 million deal, Vertex is essentially fortifying operations across the board. As CEO Benjamin Cowart highlighted, this acquisition is Vertex’s “largest, most significant transaction ever”. According to Cowart, the move positions Vertex to become a “leading regional supplier of both renewable and conventional products”. Ideally, the deal is set to close by the fourth quarter of 2021.
In the long run, Vertex appears confident in its recent purchase as well. To begin with, Vertex will be converting the Mobile refinery’s hydrocracking unit, to be completed by 2022. Then, the company projects that it could potentially generate “at least $3 billion in revenue and $400 million of gross profit” in the full year 2023. Sure, these figures are impressive, but time will tell if Vertex can deliver on this. Regardless, would you consider VTNR stock worth investing in right now?
Read More
4 Semiconductor Stocks To Watch Right Now
Best Stocks To Buy Right Now? 4 Streaming Stocks To Know
Lockheed Martin Corporation
Topping off our list is the Lockheed Martin Corporation. For the uninitiated, Lockheed Martin is a global leader in the aerospace, military support, and security tech industries. Thanks to its massive portfolio, the company is also one of, if not the world’s largest defense contractors. Safe to say, when it comes to national security, Lockheed Martin would be a leader in the space. Likewise, investors looking to invest in the defense industry would turn to LMT stock right now.
Source: TD Ameritrade TOS
In its recent quarter fiscal posted in late April, Lockheed Martin raked in a total revenue of $16.3 billion for the quarter. On top of that, the company also saw a 47% increase in cash on hand, totaling $2.93 billion. According to CEO James Taiclet, the momentum from this solid quarter puts the company in a favorable position moving forward. Moreover, Lockheed Martin also appears confident as it raised its financial outlook for the fiscal year 2021.
While all this is great, the company is not resting on its laurels just yet. As of last week, Lockheed Martin is currently collaborating with General Motors (NYSE: GM). Essentially, the duo is developing next-generation lunar vehicles for the National Aeronautics and Space Administration (NASA). In theory, these vehicles will serve to transport astronauts on the surface of the moon. Seeing as Lockheed Martin is teaming up with a leading name in the automotive industry, we could be looking at a powerful alliance here. While the company looks towards greater heights in space exploration, do you think LMT stock could follow suit?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: TD Ameritrade TOS Now, semiconductors are one of, if not the most important component, in the manufacturing process of virtually all modern tech. This marks yet another consecutive pandemic-era low. This would be because of the Consumer Price Index surging at an annualized rate of 4.2% in April.
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Source: TD Ameritrade TOS In its recent quarter fiscal posted in late April, Lockheed Martin raked in a total revenue of $16.3 billion for the quarter. This marks yet another consecutive pandemic-era low. This would be because of the Consumer Price Index surging at an annualized rate of 4.2% in April.
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This marks yet another consecutive pandemic-era low. This would be because of the Consumer Price Index surging at an annualized rate of 4.2% in April. However, National Economic Council Deputy Director Bharat Ramamurti did say last week that this “is a good sign”.
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Safe to say, when it comes to national security, Lockheed Martin would be a leader in the space. Source: TD Ameritrade TOS In its recent quarter fiscal posted in late April, Lockheed Martin raked in a total revenue of $16.3 billion for the quarter. This marks yet another consecutive pandemic-era low.
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2021-05-29 00:00:00 UTC
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Forget Crypto, Farming Is the Red-Hot Sector in 2021
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Investing in cryptocurrencies has its own merits, but it's not for the fainthearted, and it's not an asset class most investors should be constructing a portfolio around. Moreover, if you are looking for excitement, there are plenty of other themes or sectors to invest in. One of them, surprisingly, is the farming sector and specifically Deere (NYSE: DE).
Let's examine why the agricultural machinery company is a red hot-stock in 2021.
Image source: Getty Images.
Deere's full-year guidance
Let's start by looking at management's full-year sales guidance. It reveals a company in full-on growth mode. An industrial company rarely fires on all cylinders simultaneously, but that's what's happening with Deere right now. It all comes down to a combination of factors that can be lumped together in three broad groups that we'll discuss below.
SEGMENT
NET SALES GROWTH IN 2021
Production & Precision Ag
25% to 30%
Small Ag & Turf
20% to 25%
Construction & Forestry
25% to 30%
Data source: Deere presentations.
End market outlook
First, Deere's core agricultural market is looking very strong right now. The chart below shows the recent strength in key crop prices like wheat, corn, and soybean. Moreover, farmers expect to benefit from the increase significantly. For example, the U.S. Department of Agriculture forecasts that U.S. farm soybean cash receipts will rise by $9.4 billion (24%) in 2021, and corn cash receipts are forecast to increase by $6.7 billion (14%).
It all points to a favorable end-market environment for Deere's key crop farming customers -- notably China, which has stepped up purchases of U.S. crops. It's a theme picked up by Deere's President of Production and Precision Ag, Cory Reed, on the recentearnings call "In addition to higher cash receipts, U.S. customer sentiment has benefited from better market access over the last few quarters with elevated exports to China," he said. Furthermore, Reed said, " Given the positive environmental backdrop, order activity is up significantly and all of our large ag order banks are now complete through the end of the fiscal year."
Data by YCharts
Industry dynamics are favorable
Not only are the macro-environmental factors favorable, but Deere has many company and industry-specific factors in its favor as well. The pickup in end markets comes at the right time as Deere develops its precision agriculture or smart farming solutions.
In a nutshell, digital technologies gather and analyze real-time data to help farmers prepare, nurture, and harvest crops. Their addition helps increase the average selling price of Deere's agriculture equipment, and the increased software sales imply an expansion in profit margin. Indeed, Deere expects to achieve a 7% increase in production and precision ag sales in 2021 from price realization alone.
Image source: Getty Images.
In addition, Deere's management believes that the demand cycle could extend beyond 2021 due to the high age of the U.S. fleet of agriculture machinery, encouraging a multi-year replacement cycle to kick in. Speaking on theearnings call Director of Investor Relations Josh Jepsen noted that the large agriculture fleet was the oldest it had been in the last two decades.
Putting this point into context, the previous boom in farm equipment sales occurred in 2013 when, according to Jepsen, the fleet was "the youngest that it had been." As such, it's reasonable to expect the current upcycle to have more legs, provided that crop prices stay favorable.
Construction and forestry
Finally, Deere's non-agriculture businesses are in a very favorable state right now. North American construction equipment is forecast to increase by 15%-20% in 2021 due to the strength in the housing market, and the current strength in the price of oil might encourage improvement in oil and gas spending down the line.
Similarly, the strength in lumber prices encourages strong demand for forestry equipment, and Deere's management expects global forestry equipment sales to increase 15%-20% in 2021.
Image source: Getty Images.
Will it last?
While it's tough to predict the pattern of commodity prices, it's safe to say that the underlying industry dynamics are favorable for long-term growth for Deere, provided crop prices (and farm income) stay at elevated levels.
As such, Deere remains an excellent way to play the theme of rising crop prices and a way to protect your portfolio from the risk of surging commodity prices damaging the overall economic growth outlook. You won't get that from crypto.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's a theme picked up by Deere's President of Production and Precision Ag, Cory Reed, on the recentearnings call "In addition to higher cash receipts, U.S. customer sentiment has benefited from better market access over the last few quarters with elevated exports to China," he said. Speaking on theearnings call Director of Investor Relations Josh Jepsen noted that the large agriculture fleet was the oldest it had been in the last two decades. One of them, surprisingly, is the farming sector and specifically Deere (NYSE: DE).
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For example, the U.S. Department of Agriculture forecasts that U.S. farm soybean cash receipts will rise by $9.4 billion (24%) in 2021, and corn cash receipts are forecast to increase by $6.7 billion (14%). Similarly, the strength in lumber prices encourages strong demand for forestry equipment, and Deere's management expects global forestry equipment sales to increase 15%-20% in 2021. While it's tough to predict the pattern of commodity prices, it's safe to say that the underlying industry dynamics are favorable for long-term growth for Deere, provided crop prices (and farm income) stay at elevated levels.
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Data by YCharts Industry dynamics are favorable Not only are the macro-environmental factors favorable, but Deere has many company and industry-specific factors in its favor as well. Similarly, the strength in lumber prices encourages strong demand for forestry equipment, and Deere's management expects global forestry equipment sales to increase 15%-20% in 2021. While it's tough to predict the pattern of commodity prices, it's safe to say that the underlying industry dynamics are favorable for long-term growth for Deere, provided crop prices (and farm income) stay at elevated levels.
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Data by YCharts Industry dynamics are favorable Not only are the macro-environmental factors favorable, but Deere has many company and industry-specific factors in its favor as well. Similarly, the strength in lumber prices encourages strong demand for forestry equipment, and Deere's management expects global forestry equipment sales to increase 15%-20% in 2021. One of them, surprisingly, is the farming sector and specifically Deere (NYSE: DE).
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2021-05-29 00:00:00 UTC
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How Many Deere & Company (NYSE:DE) Shares Do Institutions Own?
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https://www.nasdaq.com/articles/how-many-deere-company-nyse%3Ade-shares-do-institutions-own-2021-05-29
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A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
Deere has a market capitalization of US$113b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Deere.
NYSE:DE Ownership Breakdown May 29th 2021
What Does The Institutional Ownership Tell Us About Deere?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Deere already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Deere's earnings history below. Of course, the future is what really matters.
NYSE:DE Earnings and Revenue Growth May 29th 2021
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Deere is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 6.4% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.0% and 2.7% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Deere
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Deere & Company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$220m of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.
General Public Ownership
With a 22% ownership, the general public have some degree of sway over Deere. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Equity Ownership
Private equity firms hold a 9.4% stake in Deere. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Deere , and understanding them should be part of your investment process.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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NYSE:DE Earnings and Revenue Growth May 29th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
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A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. General Public Ownership With a 22% ownership, the general public have some degree of sway over Deere. Private Equity Ownership Private equity firms hold a 9.4% stake in Deere.
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Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. NYSE:DE Ownership Breakdown May 29th 2021 What Does The Institutional Ownership Tell Us About Deere? A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful.
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NYSE:DE Earnings and Revenue Growth May 29th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
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2021-05-27 00:00:00 UTC
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Noteworthy Thursday Option Activity: SPG, DE, DOW
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-spg-de-dow-2021-05-27
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Simon Property Group, Inc. (Symbol: SPG), where a total of 13,988 contracts have traded so far, representing approximately 1.4 million underlying shares. That amounts to about 53.5% of SPG's average daily trading volume over the past month of 2.6 million shares. Particularly high volume was seen for the $130 strike call option expiring January 20, 2023, with 2,200 contracts trading so far today, representing approximately 220,000 underlying shares of SPG. Below is a chart showing SPG's trailing twelve month trading history, with the $130 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 8,102 contracts thus far today. That number of contracts represents approximately 810,200 underlying shares, working out to a sizeable 46.5% of DE's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $260 strike put option expiring December 17, 2021, with 683 contracts trading so far today, representing approximately 68,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange:
And Dow Inc (Symbol: DOW) options are showing a volume of 21,758 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 46.5% of DOW's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $55 strike call option expiring June 18, 2021, with 4,004 contracts trading so far today, representing approximately 400,400 underlying shares of DOW. Below is a chart showing DOW's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for SPG options, DE options, or DOW options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $130 strike call option expiring January 20, 2023, with 2,200 contracts trading so far today, representing approximately 220,000 underlying shares of SPG. Particularly high volume was seen for the $260 strike put option expiring December 17, 2021, with 683 contracts trading so far today, representing approximately 68,300 underlying shares of DE. Especially high volume was seen for the $55 strike call option expiring June 18, 2021, with 4,004 contracts trading so far today, representing approximately 400,400 underlying shares of DOW.
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Below is a chart showing SPG's trailing twelve month trading history, with the $130 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,102 contracts thus far today. Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange: And Dow Inc (Symbol: DOW) options are showing a volume of 21,758 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 46.5% of DOW's average daily trading volume over the past month, of 4.7 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Simon Property Group, Inc. (Symbol: SPG), where a total of 13,988 contracts have traded so far, representing approximately 1.4 million underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange: And Dow Inc (Symbol: DOW) options are showing a volume of 21,758 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 46.5% of DOW's average daily trading volume over the past month, of 4.7 million shares.
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That number of contracts represents approximately 810,200 underlying shares, working out to a sizeable 46.5% of DE's average daily trading volume over the past month, of 1.7 million shares. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 46.5% of DOW's average daily trading volume over the past month, of 4.7 million shares. Below is a chart showing DOW's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for SPG options, DE options, or DOW options, visit StockOptionsChannel.com.
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721534.0
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2021-05-27 00:00:00 UTC
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French farm machine firms to raise prices in supply squeeze
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https://www.nasdaq.com/articles/french-farm-machine-firms-to-raise-prices-in-supply-squeeze-2021-05-27
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PARIS, May 27 (Reuters) - Farm machinery makers in France, the European Union's biggest agricultural producer, plan to raise their prices this year to cope with surging raw material costs and scarce components during a boom in demand, an industry group said on Thursday.
An upturn in orders from farmers, who are benefitting from high crop prices after several lean years, has coincided with global supply chain disruption linked to the COVID-19 pandemic, creating production difficulties for equipment makers like U.S.-based AGCO Corp AGCO.N and Deere & Co DE.N.
In France, nearly all manufacturers expect to increase their sale prices in response to supply chain pressures, industry association Axema said, citing a latest survey of firms.
The price of steel, which can represent 30-40% of the production cost of farm equipment, has more than doubled over the past year, it said, calling for the EU to ease trade curbs aimed at averting unfair steel imports.
Like carmakers, manufacturers of tractors and other agricultural machines have been affected by shortages of semiconductor chips as well as tight supply of plastics.
Around 10% of Axema's survey respondents had already resorted to production halts or experienced order cancellations, with around half expecting to see these occur in the coming months, the association said.
"We're facing a demand boom and a supply crisis," David Targy, head of Axema's economic service, told reporters.
Factoring in production headwinds, farm machinery sales in France are expected to rise by 5-7% this year to around 6.4 billion euros ($7.8 billion), after being stable in 2020 during a volatile year marked by factory stoppages during lockdowns and an upturn in farmer demand, Axema said.
Some 200 million euros of aid for farm equipment, as part of the French government's stimulus measures following the pandemic, should further bolster orders in the coming months, it added.
European farm machinery association CEMA's monthly business climate index reached its highest since 2008 in May.
($1 = 0.8203 euros)
(Reporting by Gus Trompiz. Editing by Mark Potter)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, May 27 (Reuters) - Farm machinery makers in France, the European Union's biggest agricultural producer, plan to raise their prices this year to cope with surging raw material costs and scarce components during a boom in demand, an industry group said on Thursday. An upturn in orders from farmers, who are benefitting from high crop prices after several lean years, has coincided with global supply chain disruption linked to the COVID-19 pandemic, creating production difficulties for equipment makers like U.S.-based AGCO Corp AGCO.N and Deere & Co DE.N. The price of steel, which can represent 30-40% of the production cost of farm equipment, has more than doubled over the past year, it said, calling for the EU to ease trade curbs aimed at averting unfair steel imports.
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PARIS, May 27 (Reuters) - Farm machinery makers in France, the European Union's biggest agricultural producer, plan to raise their prices this year to cope with surging raw material costs and scarce components during a boom in demand, an industry group said on Thursday. European farm machinery association CEMA's monthly business climate index reached its highest since 2008 in May. An upturn in orders from farmers, who are benefitting from high crop prices after several lean years, has coincided with global supply chain disruption linked to the COVID-19 pandemic, creating production difficulties for equipment makers like U.S.-based AGCO Corp AGCO.N and Deere & Co DE.N.
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PARIS, May 27 (Reuters) - Farm machinery makers in France, the European Union's biggest agricultural producer, plan to raise their prices this year to cope with surging raw material costs and scarce components during a boom in demand, an industry group said on Thursday. An upturn in orders from farmers, who are benefitting from high crop prices after several lean years, has coincided with global supply chain disruption linked to the COVID-19 pandemic, creating production difficulties for equipment makers like U.S.-based AGCO Corp AGCO.N and Deere & Co DE.N. Factoring in production headwinds, farm machinery sales in France are expected to rise by 5-7% this year to around 6.4 billion euros ($7.8 billion), after being stable in 2020 during a volatile year marked by factory stoppages during lockdowns and an upturn in farmer demand, Axema said.
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PARIS, May 27 (Reuters) - Farm machinery makers in France, the European Union's biggest agricultural producer, plan to raise their prices this year to cope with surging raw material costs and scarce components during a boom in demand, an industry group said on Thursday. Around 10% of Axema's survey respondents had already resorted to production halts or experienced order cancellations, with around half expecting to see these occur in the coming months, the association said. Factoring in production headwinds, farm machinery sales in France are expected to rise by 5-7% this year to around 6.4 billion euros ($7.8 billion), after being stable in 2020 during a volatile year marked by factory stoppages during lockdowns and an upturn in farmer demand, Axema said.
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2021-05-27 00:00:00 UTC
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Why This Agriculture Equipment Dealer's Stock Soared Today
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https://www.nasdaq.com/articles/why-this-agriculture-equipment-dealers-stock-soared-today-2021-05-27
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What happened
North Dakota-based Titan Machinery (NASDAQ: TITN) released quarterly earnings today, and the results substantiated what Deere & Company (NYSE: DE) reported to investors last week. Shares of agriculture equipment dealer Titan soared on the results, closing Thursday's session 24% higher.
So what
Titan reported 20% growth in revenue for its fiscal first quarter ended April 30, 2021. But net income exploded by more than 350% versus last year. That supports what Deere also reported in the sector last week. Deere said sales in its fiscal quarter ended May 2, 2021 increased 34%, resulting in net income growing 169% compared to its year-ago period.
Image source: Getty Images.
Now what
Rising commodity prices have been driving a surge in farming equipment. In itsearnings call Deere said it sees growth in agriculture across every global geographic area for fiscal 2021. The much-smaller Titan sells and rents the competing Case and New Holland brands in its dealer network that operates in nine U.S. states as well as five European locations.
Shares of both companies had almost equally benefited from the boon in the sector before investors piled into Titan shares in today's trading session.
TITN data by YCharts
Titan chairman and CEO David Meyer echoed Deere's outlook, saying in a statement: "The renewed strength across the agriculture complex, following an improved commodity outlook, is having a positive impact on all our businesses." He noted a shift in the business environment, adding the company is seeing "some of the pent-up demand come back after several years of more conservative posturing." Investors in Deere and other names in the sector should also be happy to hear that.
10 stocks we like better than Deere & Company
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened North Dakota-based Titan Machinery (NASDAQ: TITN) released quarterly earnings today, and the results substantiated what Deere & Company (NYSE: DE) reported to investors last week. Deere said sales in its fiscal quarter ended May 2, 2021 increased 34%, resulting in net income growing 169% compared to its year-ago period. The much-smaller Titan sells and rents the competing Case and New Holland brands in its dealer network that operates in nine U.S. states as well as five European locations.
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What happened North Dakota-based Titan Machinery (NASDAQ: TITN) released quarterly earnings today, and the results substantiated what Deere & Company (NYSE: DE) reported to investors last week. Deere said sales in its fiscal quarter ended May 2, 2021 increased 34%, resulting in net income growing 169% compared to its year-ago period. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened North Dakota-based Titan Machinery (NASDAQ: TITN) released quarterly earnings today, and the results substantiated what Deere & Company (NYSE: DE) reported to investors last week. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Shares of agriculture equipment dealer Titan soared on the results, closing Thursday's session 24% higher.
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So what Titan reported 20% growth in revenue for its fiscal first quarter ended April 30, 2021. What happened North Dakota-based Titan Machinery (NASDAQ: TITN) released quarterly earnings today, and the results substantiated what Deere & Company (NYSE: DE) reported to investors last week. Shares of agriculture equipment dealer Titan soared on the results, closing Thursday's session 24% higher.
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022f914c-fc23-43ea-891e-1e16e48c6382
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721536.0
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2021-05-26 00:00:00 UTC
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Deere Stock Set To Rise After A 5% Drop Over The Last Week
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DE
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https://www.nasdaq.com/articles/deere-stock-set-to-rise-after-a-5-drop-over-the-last-week-2021-05-26
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nan
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nan
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[Updated: 5/24/2021] Deere Stock Update
The stock price of Deere & Company (NYSE:DE) has seen a 5% drop over the last five trading days. Much of this decline came in before the company’s earnings announcement on Friday last week. The company reported its fiscal Q2 results, which were well above the street estimates. Deere’s fiscal Q2 revenue of $11.0 billion (up 34% y-o-y) was much higher than our forecast of $10.2 billion, and the consensus estimate of $10.4 billion. This can be attributed to strong demand for both construction as well as agricultural equipment. Looking at the bottom line, Deere’s EPS of $5.68 was also well above our forecast of $4.25 and $4.52 per consensus estimates. The large bottom-line growth (up 2.7x y-o-y) can be attributed to both revenue growth as well as margin expansion, due to lower operating expenses.
Given that DE stock has fallen 5% in just five days, will it resume its downward trajectory over the coming weeks, or is a rise in the stock imminent? We believe that the stock will rebound in the near term. DE stock was up only 1% on Friday despite a strong Q2 beat. This can be attributed to the company’s management stating that it expects supply-chain issues for the remainder of the year. That said, the company has revised its guidance upward with net income now estimated to be in the range of $5.3 and $5.7 billion, compared to earlier guidance of $4.6 to $5.0 billion. Also, using the recent trend (5% fall in a week) and ten years of historical stock data, the Trefis AI engine finds that DE stock will likely move higher over the next one month (twenty-one trading days).
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). More importantly, there is a good 68% probability of a positive return over the next twenty-one trading days and 60% percent probability of a positive excess return.
But how would these numbers change if you are interested in holding DE stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Deere & Company stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
Some Fun Scenarios, FAQs & Making Sense of Deere Stock Movements:
Question 1: Is the average return for Deere & company stock higher after a drop?
Answer: Consider two situations,
Case 1: Deere & company stock drops by -5% or more in a week
Case 2: Deere & company stock rises by 5% or more in a week
Is the average return for Deere & company stock higher over the subsequent month after Case 1 or Case 2?
DE stock fares better after Case 1, with an average return of 5.3% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.1% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Deere & company stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Deere & company stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For DE stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although DE stock appears to be an exception to this general observation.
It’s pretty powerful to test the trend for yourself for Deere & company stock by changing the inputs in the charts above.
[Updated: 5/18/2021] Deere Q2 Earnings Preview
Deere & Company (NYSE:DE) is scheduled to report its fiscal second-quarter results on Friday, May 21. We expect Deere to likely post revenues and earnings slightly below the consensus estimates. Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies are opening up gradually, bolstering its overall revenue growth during the quarter. Our forecast indicates that Deere’s valuation is around $384 per share, which is in-line with the current market price. Now, based on our estimates, the company will likely report numbers below the street expectations, which is likely to result in DE stock trading lower post the Q1 announcement, and that may offer a good entry point for long term investors to buy the stock. Look at our interactive dashboard analysis on Deere & Company Pre-Earnings: What To Expect in Q2? for more details.
(1) Revenues expected to be below the consensus estimate
Trefis estimates Deere’s Q2 fiscal 2021 total revenues to be around $10.2 Bil, slightly below the consensus estimate of $10.4 Bil. The company saw a strong rebound in the demand for construction as well as agriculture equipment in Q1, with revenue rising a solid 19% to $9.1 billion. The company, of late, has seen an increase in spending on agricultural equipment, primarily small tractors, and this could continue to drive the revenue growth in Q2. Deere in its previousearnings conference callprovided an outlook for roughly 20% revenue growth for both Agriculture & Turf as well as Construction & Forestry segments in 2021, primarily small agriculture, which ended the year at historic lows for inventory to sales ratio, and the company expects the inventory levels to rebound in 2021. However, a high inflation due to high demand and supply constraints post the pandemic could result in increased expenses for farmers, impacting the overall spend on agricultural equipment, over the coming quarters. Our dashboard on Deere Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be below the consensus estimates
Deere’s Q2 2021 earnings per share (EPS) is expected to be $4.25 per Trefis analysis, 6% below the consensus estimate of $4.52. Deere’s net income of $1.2 billion in Q1, reflected a 137% growth from its $517 million profit in the prior year quarter, led by a decline in operating expenses. Q1 also saw a higher price realization for all the segments, aiding the overall margins, a trend which may continue in Q2 as well. Looking at the full year 2021, we expect a 70% y-o-y growth in EPS to $14.75, aided by both revenue growth as well as margin expansion.
(3) Stock price estimate in-line with the current market price
Going by our Deere & Company Valuation, with an EPS estimate of around $14.75 and P/E multiple of 26x in fiscal 2021, this translates into a price of $384, which is in-line with the current market price – $384.
Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, the demand for both agriculture as well as construction equipment is seeing a rebound as the spread of the virus subsides, and this will result in strong revenue and earnings growth for Deere in the near term, in our view. That said, the rebound appears to be already priced in the current share value of $384, implying DE stock is fully valued at the current levels.
Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year
While DE stock looks fully valued, it is helpful to see how its peers stack up. DE stock comparison with its peers summarizes how Deere compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies are opening up gradually, bolstering its overall revenue growth during the quarter. Deere’s net income of $1.2 billion in Q1, reflected a 137% growth from its $517 million profit in the prior year quarter, led by a decline in operating expenses. [Updated: 5/24/2021] Deere Stock Update The stock price of Deere & Company (NYSE:DE) has seen a 5% drop over the last five trading days.
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[Updated: 5/24/2021] Deere Stock Update The stock price of Deere & Company (NYSE:DE) has seen a 5% drop over the last five trading days. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year While DE stock looks fully valued, it is helpful to see how its peers stack up.
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[Updated: 5/24/2021] Deere Stock Update The stock price of Deere & Company (NYSE:DE) has seen a 5% drop over the last five trading days. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). Answer: Consider two situations, Case 1: Deere & company stock drops by -5% or more in a week Case 2: Deere & company stock rises by 5% or more in a week Is the average return for Deere & company stock higher over the subsequent month after Case 1 or Case 2?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for DE stock average around 5.3% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), much higher than the 3.1% expected return for the S&P500 over the next month (twenty-one trading days). For DE stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while? Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year While DE stock looks fully valued, it is helpful to see how its peers stack up.
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58cbcc87-e753-4197-a6f8-93f8bf4c57b9
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721537.0
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2021-05-24 00:00:00 UTC
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Best Stocks To Invest In 2021? 3 Cyclical Stocks To Watch
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DE
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https://www.nasdaq.com/articles/best-stocks-to-invest-in-2021-3-cyclical-stocks-to-watch-2021-05-24
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nan
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nan
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3 Cyclical Stocks To Consider Buying In The Stock Market This Week
As investors rotate from growth stocks towards reopening plays, cyclical stocks continue to gain momentum in the stock market today. After all, high growth tech stocks have mostly been trading sideways this year on account of inflation fears among other factors. Particularly, blockchain stocks have now become some of the most volatile stocks in the market as Bitcoin faces regulatory challenges in China. Given the increased uncertainty for tech investors now, cyclicals could possibly offer some security. Understandably, companies in the cyclical space would stand to benefit the most from an economic upswing. With the current trajectory of the economy, I can understand if investors are now turning towards the top cyclical stocks today.
In fact, analysts from JPMorgan (NYSE: JPM) recently mentioned in a research note that cyclicals continue to outperform the market across the board. To begin with, companies working in the industrial sector such as John Deere (NYSE: DE) are on the uptrend. DE stock is currently looking at gains of over 130% in the past year. Meanwhile, consumer-focused companies such as L Brands (NYSE: LB) and Tesla (NASDAQ: TSLA) would also be in focus. This could be the case as consumers would generally have more discretionary funds available post-pandemic. Even now, both LB stock and TSLA stock have more than tripled in value over the past year.
Now, all this is great for top cyclical stocks and investors. However, could the rising threat of inflation see this sector lose steam? According to JPMorgan equity strategist Dubravko Lakos-Bujas, likely not. The strategist argues that institutional investors are well aware of inflation risks and have already priced in potential downsides. Nevertheless, if all this has you keen on adding some cyclical stocks to your watchlist, here are three making headlines in the stock market now.
Top Cyclical Stocks To Watch This Week
Carnival Corporation (NYSE: CCL)
United Parcel Service Inc. (NYSE: UPS)
Walt Disney Company (NYSE: DIS)
Carnival Corporation
Carnival is a cruise operator and one of the world’s largest travel leisure companies. The company has a wide portfolio of global cruise lines which include Costa Cruise and AIDA Cruise. Together, the company has a fleet of 87 ships visiting over 700 ports around the world and totaling 223,000 lower berths. Carnival also has plans to add 16 new ships through 2025. Pre-pandemic, its brand would host nearly 13 million guests annually, accounting for nearly half of the overall global cruise market. CCL stock currently trades at $27.90 as of Monday’s closing bell and is up by over 30% year-to-date.
Source: TD Ameritrade TOS
Yesterday, the company announced that its AIDA Cruises has successfully started into the cruise season in the Eastern Mediterranean with AIDAblu. AIDAblu is the second ship of the Costa Group to resume operation with an itinerary touching Greece after Costa Cruises’ return with Costa Luminosa, which restarted on May 16 from Italy to bring guests to visit Corfu, Athens, Mykonos, and Katakolon and will be followed by Costa Deliziosa at the end of June. Given how the cruise industry continues to receive pent-up demand due to the pandemic that essentially grounded the industry last year, Carnival could be well-positioned for growth this year.
The company’s reopening plays have been impressive so far. In the month of May itself, the company also announced that its Princess Cruises plans to resume cruising in the U.S. with Alaska Sailings departing Seattle in July 2021. Seeing how the vaccination rollout will play a crucial role in Carnival’s reopening for business, the company has also been actively vaccinating its crew members to ensure that they are safe. All things considered, will you add CCL stock to your watchlist?
[Read More] Best Copper Mining Stocks To Buy In 2021? 4 To Watch This Week
United Parcel Services Inc.
UPS is a multinational shipping & receiving and supply chain management company. It is one of the world’s largest package delivery companies and it provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. The company boasts more than 540,000 employees. UPS stock currently trades at $213.43 as of 4:00 p.m. ET Monday and has more than doubled in the last year.
Source: TD Ameritrade TOS
Last month, the company announced its first-quarter financials for fiscal 2021. Consolidated revenue for the quarter increased by 27% and it enjoyed growth across all segments. Its consolidated average daily volume increased by 14.3% year-over-year as well. This is a given as more people relied on UPS’ services throughout the pandemic and still do today. The company also reported that its adjusted diluted earnings per share were up by 141% to $2.77. It also reaffirmed its full-year 2021 capital allocation plans with capital expenditure planned to be about $4 billion.
“I want to thank all UPSers for delivering what matters, including COVID-19 vaccines,” said Carol Tomé, UPS chief executive officer. “During the quarter, we continued to execute our strategy under the better not bigger framework, which enabled us to win the best opportunities in the market and drove record financial results.” Earlier in the month, the company also announced a quarterly dividend of $1.02 per share on all outstanding Class A and Class B shares. With that in mind, is UPS stock worth watching?
Read More
4 Top Biotech Stocks To Watch In May 2021
Top Tech Stocks To Buy This Week? 4 Names To Know
Walt Disney Company
Another top name in the cyclical space now would be the Walt Disney Company. Chances are, most people would be familiar with the company’s work in the entertainment industry. More importantly, Disney makes the most of its countless IPs in a variety of ways. Given its gargantuan media and tourism-related portfolio, you could say that Disney is firing on all cylinders now.
Source: TD Ameritrade TOS
On one hand, the company is in a favorable position in the content streaming industry now. Evidently, its Disney+ streaming platform is currently gaining subscribers at breakneck speeds. This would likely continue as general cord-cutting trends persist. On the other hand, Disney’s tourism portfolio would receive a breath of fresh air as travel restrictions loosen. Could all this leave DIS stock with more room to grow this year?
For the most part, CNBC’s Jim Cramer appears to believe so, arguing that DIS stock’s current price does not reflect its potential. On that note, Disney does not seem to be slowing down in the slightest. While aggressively pushing content on the streaming front, the company continues to bolster its leisure offerings. This week, tickets for its top-of-the-line cruise, Disney Wish, will be going live.
On top of that, the company is planning to add Spider-Man-related activities for Disneyland Resort guests later in June. Would you say that all this makes DIS stock a top cyclical stock to watch right now?
The views and 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 is one of the world’s largest package delivery companies and it provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. 3 Cyclical Stocks To Consider Buying In The Stock Market This Week As investors rotate from growth stocks towards reopening plays, cyclical stocks continue to gain momentum in the stock market today. After all, high growth tech stocks have mostly been trading sideways this year on account of inflation fears among other factors.
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3 Cyclical Stocks To Consider Buying In The Stock Market This Week As investors rotate from growth stocks towards reopening plays, cyclical stocks continue to gain momentum in the stock market today. After all, high growth tech stocks have mostly been trading sideways this year on account of inflation fears among other factors. Understandably, companies in the cyclical space would stand to benefit the most from an economic upswing.
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3 Cyclical Stocks To Consider Buying In The Stock Market This Week As investors rotate from growth stocks towards reopening plays, cyclical stocks continue to gain momentum in the stock market today. After all, high growth tech stocks have mostly been trading sideways this year on account of inflation fears among other factors. Understandably, companies in the cyclical space would stand to benefit the most from an economic upswing.
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3 Cyclical Stocks To Consider Buying In The Stock Market This Week As investors rotate from growth stocks towards reopening plays, cyclical stocks continue to gain momentum in the stock market today. After all, high growth tech stocks have mostly been trading sideways this year on account of inflation fears among other factors. Understandably, companies in the cyclical space would stand to benefit the most from an economic upswing.
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8786452c-24b2-4485-b1ba-20d23808192c
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721538.0
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2021-05-24 00:00:00 UTC
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Deere Delivers Strong Q2 Results, Street Says Buy
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DE
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https://www.nasdaq.com/articles/deere-delivers-strong-q2-results-street-says-buy-2021-05-24
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nan
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nan
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Deere (DE) reported higher-than-expected profits and revenues in the fiscal second quarter. The company manufactures and distributes equipment used in agriculture, construction, forestry, and turf care. Shares of the company rose 1.3% to close at $359.75 on May 21.
Revenues of $12.06 billion surpassed the Street’s estimates of $10.44 billion and jumped 30% from the year-ago period.
Earnings came in at $5.68 per share, beating the consensus estimates of $4.52 per share. Net sales soared 34% year-over-year.
Deere CEO John C. May said, "Our smart industrial operating strategy is continuing to have a significant impact on performance while also helping customers do their jobs in a more profitable and sustainable manner.” (See Deere stock analysis on TipRanks)
Following the fiscal Q2 earnings release, Oppenheimer analyst Kristen Owen assigned a Buy rating and a price target of $416 (15.6% upside potential).
Owen commented, “The company saw volume strength across the portfolio, with favorable mix and strong price realization driving margin expansion in each segment.”
He further added, “While noting strong performance YTD, management expressed expectations of increased supply chain pressures throughout the remainder of the fiscal year.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 10 Buys, 2 Holds, and 1 Sell. The average analyst price target stands at $410.23 and implies upside potential of 14% to current levels. Shares have gained 143% over the past year.
Related News :
Ashland Bumps up Quarterly Dividend By 9%
Home Depot to Buy Back $20B in Stock; Street Says Buy
Criteo Enhances Retail Media Business with Mabaya Buyout
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere CEO John C. May said, "Our smart industrial operating strategy is continuing to have a significant impact on performance while also helping customers do their jobs in a more profitable and sustainable manner.” (See Deere stock analysis on TipRanks) Following the fiscal Q2 earnings release, Oppenheimer analyst Kristen Owen assigned a Buy rating and a price target of $416 (15.6% upside potential). Owen commented, “The company saw volume strength across the portfolio, with favorable mix and strong price realization driving margin expansion in each segment.” He further added, “While noting strong performance YTD, management expressed expectations of increased supply chain pressures throughout the remainder of the fiscal year.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. Related News : Ashland Bumps up Quarterly Dividend By 9% Home Depot to Buy Back $20B in Stock; Street Says Buy Criteo Enhances Retail Media Business with Mabaya Buyout The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere CEO John C. May said, "Our smart industrial operating strategy is continuing to have a significant impact on performance while also helping customers do their jobs in a more profitable and sustainable manner.” (See Deere stock analysis on TipRanks) Following the fiscal Q2 earnings release, Oppenheimer analyst Kristen Owen assigned a Buy rating and a price target of $416 (15.6% upside potential). The average analyst price target stands at $410.23 and implies upside potential of 14% to current levels. Deere (DE) reported higher-than-expected profits and revenues in the fiscal second quarter.
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Deere CEO John C. May said, "Our smart industrial operating strategy is continuing to have a significant impact on performance while also helping customers do their jobs in a more profitable and sustainable manner.” (See Deere stock analysis on TipRanks) Following the fiscal Q2 earnings release, Oppenheimer analyst Kristen Owen assigned a Buy rating and a price target of $416 (15.6% upside potential). Owen commented, “The company saw volume strength across the portfolio, with favorable mix and strong price realization driving margin expansion in each segment.” He further added, “While noting strong performance YTD, management expressed expectations of increased supply chain pressures throughout the remainder of the fiscal year.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. Related News : Ashland Bumps up Quarterly Dividend By 9% Home Depot to Buy Back $20B in Stock; Street Says Buy Criteo Enhances Retail Media Business with Mabaya Buyout The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere CEO John C. May said, "Our smart industrial operating strategy is continuing to have a significant impact on performance while also helping customers do their jobs in a more profitable and sustainable manner.” (See Deere stock analysis on TipRanks) Following the fiscal Q2 earnings release, Oppenheimer analyst Kristen Owen assigned a Buy rating and a price target of $416 (15.6% upside potential). Deere (DE) reported higher-than-expected profits and revenues in the fiscal second quarter. Owen commented, “The company saw volume strength across the portfolio, with favorable mix and strong price realization driving margin expansion in each segment.” He further added, “While noting strong performance YTD, management expressed expectations of increased supply chain pressures throughout the remainder of the fiscal year.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating.
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42acc11a-65bd-4c3b-a32b-c4ff46de0edb
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721539.0
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2021-05-21 00:00:00 UTC
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Deere raises forecast as profit more than doubles on equipment demand
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DE
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https://www.nasdaq.com/articles/deere-raises-forecast-as-profit-more-than-doubles-on-equipment-demand-2021-05-21-0
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nan
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nan
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By Rajesh Kumar Singh and Shreyasee Raj
May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year earnings forecast after a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment.
The world's largest farm equipment manufacturer, however, expects supply-chain pressures to intensify in the remainder of the year.
The Illinois-based company is not alone. Rising demand coupled with COVID-19 disruptions has caused capacity constraints all along the supply chain, leaving manufacturers short of the steel, plastics, microchips and tires they need for their products.
Chief Executive Officer John May said Deere is working closely with key suppliers to secure the parts and components.
The company said net income in fiscal 2021 would be between $5.3 billion and $5.7 billion, up from $4.6 billion to $5.0 billion estimated in February. It is the second time in four months it has upgraded the outlook.
Deere's shares, which have outperformed the S&P 500 .SPX with a gain of about 32% this year, were up 1.6% at $360.85 in morning trade.
Agricultural equipment makers are benefiting from a turnaround in the farm economy. Farmers flush with cash after a jump in U.S. grain prices are finally investing in new tractors and combines to replace their aging fleets.
Deere expects industry sales of large agricultural equipment in the United States and Canada - the company's biggest combined market - to grow by 25% this year compared with growth of 15% to 20% estimated in February.
The roaring demand coincides with record low inventories, allowing farm machinery companies to charge higher prices for their equipment.
Deere's revised full-year outlook assumes a 7% increase in prices for technology solutions and products such as large tractors, combines and harvesters.
Earnings for the second quarter came in at $5.68 per share, higher than $2.11 per share a year ago. Equipment sales rose 34% year-on-year to about $11 billion.
(Reporting by Rajesh Kumar Singh in Chicago and Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi, Chizu Nomiyama and Emelia Sithole-Matarise)
((rajeshkumar.singh@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh and Shreyasee Raj May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year earnings forecast after a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. Rising demand coupled with COVID-19 disruptions has caused capacity constraints all along the supply chain, leaving manufacturers short of the steel, plastics, microchips and tires they need for their products. Deere expects industry sales of large agricultural equipment in the United States and Canada - the company's biggest combined market - to grow by 25% this year compared with growth of 15% to 20% estimated in February.
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By Rajesh Kumar Singh and Shreyasee Raj May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year earnings forecast after a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. Deere expects industry sales of large agricultural equipment in the United States and Canada - the company's biggest combined market - to grow by 25% this year compared with growth of 15% to 20% estimated in February. The world's largest farm equipment manufacturer, however, expects supply-chain pressures to intensify in the remainder of the year.
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By Rajesh Kumar Singh and Shreyasee Raj May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year earnings forecast after a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. Deere expects industry sales of large agricultural equipment in the United States and Canada - the company's biggest combined market - to grow by 25% this year compared with growth of 15% to 20% estimated in February. The world's largest farm equipment manufacturer, however, expects supply-chain pressures to intensify in the remainder of the year.
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By Rajesh Kumar Singh and Shreyasee Raj May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year earnings forecast after a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. Deere expects industry sales of large agricultural equipment in the United States and Canada - the company's biggest combined market - to grow by 25% this year compared with growth of 15% to 20% estimated in February. Deere's revised full-year outlook assumes a 7% increase in prices for technology solutions and products such as large tractors, combines and harvesters.
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24cb381a-874d-4a8a-84c7-150852692a7c
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721540.0
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2021-05-21 00:00:00 UTC
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PDBC, FTAG: Big ETF Inflows
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DE
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https://www.nasdaq.com/articles/pdbc-ftag%3A-big-etf-inflows-2021-05-21
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF, which added 8,400,000 units, or a 3.0% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Indxx Global Agriculture ETF, which added 50,000 units, for a 35.7% increase in outstanding units. Among the largest underlying components of FTAG, in morning trading today Deere is up about 2.9%, and Corteva is up by about 2.3%.
VIDEO: PDBC, FTAG: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF, which added 8,400,000 units, or a 3.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Indxx Global Agriculture ETF, which added 50,000 units, for a 35.7% increase in outstanding units. Among the largest underlying components of FTAG, in morning trading today Deere is up about 2.9%, and Corteva is up by about 2.3%.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF, which added 8,400,000 units, or a 3.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Indxx Global Agriculture ETF, which added 50,000 units, for a 35.7% increase in outstanding units. VIDEO: PDBC, FTAG: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF, which added 8,400,000 units, or a 3.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Indxx Global Agriculture ETF, which added 50,000 units, for a 35.7% increase in outstanding units. VIDEO: PDBC, FTAG: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF, which added 8,400,000 units, or a 3.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Indxx Global Agriculture ETF, which added 50,000 units, for a 35.7% increase in outstanding units. Among the largest underlying components of FTAG, in morning trading today Deere is up about 2.9%, and Corteva is up by about 2.3%.
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0b8d92c8-5341-4170-a33e-9f96bd2f2ba8
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721541.0
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2021-05-21 00:00:00 UTC
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John Deere Recalls Gator Utility Vehicles
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DE
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https://www.nasdaq.com/articles/john-deere-recalls-gator-utility-vehicles-2021-05-21
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nan
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nan
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(RTTNews) - John Deere, the brand name of machinery manufacturer Deere & Co., recalled about 90 units of Gator Utility Vehicles for a possible crash hazard and risk of injury, a statement by the U.S. Consumer Product Safety Commission said. The company said an error in the Engine Control Unit or ECU software can result in the speedometer and several speed-related safety systems not functioning as designed, that could cause a crash hazard and risk of injury to the operator.
The recall involves John Deere XUV590 and XUV590 S4 Gator utility vehicles, which comes in a combination of green and yellow, olive drab, and camouflage colors. These vehicles have four-wheel suspension with side-by-side seating for two or four people.
"John Deere" and "Gator" are printed on the cargo box, while the model numbers XUV590 and XUV590 S4 are printed on the hood. The serial number is located on the frame on the rear of the machine above the hitch and begins with 1M0590, the company added.
The company has received four reports of speedometers malfunctioning. However, no reports of injury have been reported so far.
The company advised consumers to immediately stop using the recalled vehicles and contact an authorized John Deere dealer for a free software update.
The Gator Utility Vehicles were made in the U.S. by Moline, Illinois-based Deere & Co. They were sold at John Deere dealers across the U.S. from October 2020 through April 2021 for between $11,100 and $14,100.
The views and 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 said an error in the Engine Control Unit or ECU software can result in the speedometer and several speed-related safety systems not functioning as designed, that could cause a crash hazard and risk of injury to the operator. The recall involves John Deere XUV590 and XUV590 S4 Gator utility vehicles, which comes in a combination of green and yellow, olive drab, and camouflage colors. The company advised consumers to immediately stop using the recalled vehicles and contact an authorized John Deere dealer for a free software update.
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(RTTNews) - John Deere, the brand name of machinery manufacturer Deere & Co., recalled about 90 units of Gator Utility Vehicles for a possible crash hazard and risk of injury, a statement by the U.S. Consumer Product Safety Commission said. The recall involves John Deere XUV590 and XUV590 S4 Gator utility vehicles, which comes in a combination of green and yellow, olive drab, and camouflage colors. The company advised consumers to immediately stop using the recalled vehicles and contact an authorized John Deere dealer for a free software update.
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(RTTNews) - John Deere, the brand name of machinery manufacturer Deere & Co., recalled about 90 units of Gator Utility Vehicles for a possible crash hazard and risk of injury, a statement by the U.S. Consumer Product Safety Commission said. The recall involves John Deere XUV590 and XUV590 S4 Gator utility vehicles, which comes in a combination of green and yellow, olive drab, and camouflage colors. The company advised consumers to immediately stop using the recalled vehicles and contact an authorized John Deere dealer for a free software update.
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(RTTNews) - John Deere, the brand name of machinery manufacturer Deere & Co., recalled about 90 units of Gator Utility Vehicles for a possible crash hazard and risk of injury, a statement by the U.S. Consumer Product Safety Commission said. The company advised consumers to immediately stop using the recalled vehicles and contact an authorized John Deere dealer for a free software update. The company said an error in the Engine Control Unit or ECU software can result in the speedometer and several speed-related safety systems not functioning as designed, that could cause a crash hazard and risk of injury to the operator.
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1a3e1f8d-7dd1-4b24-a18d-581c91830a6e
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721542.0
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2021-05-21 00:00:00 UTC
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US STOCKS-Wall St extends recovery after strong U.S. business surveys
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-st-extends-recovery-after-strong-u.s.-business-surveys-2021-05-21
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nan
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nan
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By Medha Singh
May 21 (Reuters) - Wall Street's main indexes rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading.
IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor. [nL2N2N81BJ]
Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.
The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak.
"After some pressure in the start of the week we can see some buying interest in beaten-down mega-cap tech names as their valuations seem to look a bit more attractive," said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York.
"The market would also focus on how cryptocurrencies perform, and if they fall even more, it could spark off some selling going ahead."
Bitcoin BTC=BTSP hovered around $40,000, pausing its attempt to recover from this week's massive plunge. Cryptocurrency-related stocks Coinbase Global COIN.O, Riot Blockchain RIOT.O and Marathon Digital Holdings MARA.O firmed between 1.0% and 2.3%.
Every major S&P sector was higher, with economy-linked financials .SPSY and energy .SPNY providing the biggest boost.
At 10:02 a.m. ET, the Dow Jones Industrial Average .DJIwas up 286.36 points, or 0.84%, at 34,370.51, the S&P 500 .SPXwas up 26.39 points, or 0.63%, at 4,185.51, and the Nasdaq Composite .IXICwas up 67.19 points, or 0.50%, at 13,602.93.
Deere & Co DE.N gained 2.6% after the farm equipment manufacturer raised its full-year profit forecast.
Foot Locker FL.N rose 4.1% after the shoes and apparel retailer posted a more than 80% jump in first-quarter sales.
Advancing issues outnumbered decliners by a 3.58-to-1 ratio on the NYSE and by a 3.34-to-1 ratio on the Nasdaq.
The S&P index recorded 24 new 52-week highs and no new low, while the Nasdaq recorded 73 new highs and five new lows.
(Reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and 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 Medha Singh May 21 (Reuters) - Wall Street's main indexes rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading. IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor. [nL2N2N81BJ] Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.
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By Medha Singh May 21 (Reuters) - Wall Street's main indexes rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading. [nL2N2N81BJ] Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. The S&P index recorded 24 new 52-week highs and no new low, while the Nasdaq recorded 73 new highs and five new lows.
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By Medha Singh May 21 (Reuters) - Wall Street's main indexes rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading. [nL2N2N81BJ] Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. (Reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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[nL2N2N81BJ] Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. By Medha Singh May 21 (Reuters) - Wall Street's main indexes rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading. IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor.
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1b040a95-c805-461b-b4c4-e8d109540839
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721543.0
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2021-05-21 00:00:00 UTC
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US STOCKS-S&P 500, Dow extend recovery after strong U.S. business surveys
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DE
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-extend-recovery-after-strong-u.s.-business-surveys-2021-05-21
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nan
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nan
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By Medha Singh
May 21 (Reuters) - The S&P 500 and the Dow rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading.
Helping the Dow outperform was Boeing BA.N, which added about 3% as industry sources said the planemaker has drawn up preliminary plans for a fresh sprint in 737 MAX output to as many as 42 jets a month in fall 2022.
IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor.
Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.
Despite weakness on Friday, the Nasdaq is on course to snap a four-week losing streak as investors this week returned to tech-related mega-cap shares,which recently took the biggest hit on inflation worries.
"The inflation fears are overblown and it's not that bad as the market has been pricing in and the one indicator that we can see are signs of moderation in commodities," said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.
"Institutional investors took a lot of money out due to inflation fears but that money will start flowing into tech stocks as those fears moderate."
Bitcoin BTC=BTSP dropped after China's Vice Premier Liu He said his government will crack down on the virtual currency's mining and trading activities. Cryptocurrency-related stocks Coinbase Global COIN.O, Riot Blockchain RIOT.O and Marathon Digital Holdings MARA.Oerased early gains to fall between 2.6% and 4.7%.
Every major S&P sector was higher, with economy-linked financials .SPSY and energy .SPNY providing the biggest boost.
At 11:42 a.m. ET, the Dow Jones Industrial Average .DJIwas up 252.30 points, or 0.74%, at 34,336.45 and the S&P 500 .SPXwas up 12.80 points, or 0.31%, at 4,171.92. The Nasdaq Composite .IXICwas down 20.33 points, or 0.15%, at 13,515.41.
Deere & Co DE.N gained 2.9% after the farm equipment manufacturer raised its full-year profit forecast.
Nvidia Corp NVDA.O added about 2.3% after announcing a four-for-one stock split, as it looks to make its stock less expensive for investors.
VF Corp VFC.N slumped 7.3% after Vans and North Face parent's quarterly profit fell short of estimates.
Advancing issues outnumbered decliners by a 2.20-to-1 ratio on the NYSE and by a 1.57-to-1 ratio on the Nasdaq.
The S&P index recorded 24 new 52-week highs and no new low, while the Nasdaq recorded 97 new highs and 13 new lows.
(Reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. Helping the Dow outperform was Boeing BA.N, which added about 3% as industry sources said the planemaker has drawn up preliminary plans for a fresh sprint in 737 MAX output to as many as 42 jets a month in fall 2022.
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IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. The S&P index recorded 24 new 52-week highs and no new low, while the Nasdaq recorded 97 new highs and 13 new lows.
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Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. Despite weakness on Friday, the Nasdaq is on course to snap a four-week losing streak as investors this week returned to tech-related mega-cap shares,which recently took the biggest hit on inflation worries. Helping the Dow outperform was Boeing BA.N, which added about 3% as industry sources said the planemaker has drawn up preliminary plans for a fresh sprint in 737 MAX output to as many as 42 jets a month in fall 2022.
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Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. "Institutional investors took a lot of money out due to inflation fears but that money will start flowing into tech stocks as those fears moderate." Helping the Dow outperform was Boeing BA.N, which added about 3% as industry sources said the planemaker has drawn up preliminary plans for a fresh sprint in 737 MAX output to as many as 42 jets a month in fall 2022.
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e4d223d5-55a0-4e42-bfbf-312dccf51b64
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721544.0
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2021-05-21 00:00:00 UTC
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Deere profit more than doubles on higher farm, construction equipment demand
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DE
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https://www.nasdaq.com/articles/deere-profit-more-than-doubles-on-higher-farm-construction-equipment-demand-2021-05-21
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nan
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nan
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May 21 (Reuters) - Deere & Co DE.N on Friday posted a 169% surge in quarterly profit as a recovering global economy boosted demand for farm machine and construction equipment.
Net income attributable to the company rose to $1.79 billion, or $5.68 per share, in the second quarter, from $666 million, or $2.11 per share, a year earlier.
(Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi)
((Shreyasee.Raj@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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May 21 (Reuters) - Deere & Co DE.N on Friday posted a 169% surge in quarterly profit as a recovering global economy boosted demand for farm machine and construction equipment. Net income attributable to the company rose to $1.79 billion, or $5.68 per share, in the second quarter, from $666 million, or $2.11 per share, a year earlier. (Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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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May 21 (Reuters) - Deere & Co DE.N on Friday posted a 169% surge in quarterly profit as a recovering global economy boosted demand for farm machine and construction equipment. Net income attributable to the company rose to $1.79 billion, or $5.68 per share, in the second quarter, from $666 million, or $2.11 per share, a year earlier. (Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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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May 21 (Reuters) - Deere & Co DE.N on Friday posted a 169% surge in quarterly profit as a recovering global economy boosted demand for farm machine and construction equipment. Net income attributable to the company rose to $1.79 billion, or $5.68 per share, in the second quarter, from $666 million, or $2.11 per share, a year earlier. (Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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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May 21 (Reuters) - Deere & Co DE.N on Friday posted a 169% surge in quarterly profit as a recovering global economy boosted demand for farm machine and construction equipment. Net income attributable to the company rose to $1.79 billion, or $5.68 per share, in the second quarter, from $666 million, or $2.11 per share, a year earlier. (Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi) ((Shreyasee.Raj@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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75d10703-5574-4a3a-b245-d7b5d19af7e1
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721545.0
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2021-05-21 00:00:00 UTC
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US STOCKS-Futures extend recovery ahead of U.S. business surveys
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DE
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https://www.nasdaq.com/articles/us-stocks-futures-extend-recovery-ahead-of-u.s.-business-surveys-2021-05-21
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nan
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By Medha Singh
May 21 (Reuters) - U.S. stock index futures ticked higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading.
Data firm IHS Markit's U.S. manufacturing and service sector PMIs is set to be released before the opening bell and comes on the heels of surveys in the euro zone indicating the fastest pace of business growth in over three years in May.
Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.
The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak as worries over higher interest rates weighed on the tech-heavy index. The S&P 500 and the Dow were headed for second straight weekly declines.
At 6:17 a.m. ET, Dow e-minis 1YMcv1 were up 103 points, or 0.3%, S&P 500 e-minis EScv1 were up 10.75 points, or 0.26%, and Nasdaq 100 e-minis NQcv1 were up 28 points, or 0.21%.
Bitcoin BTC=BTSP hovered around $40,000, pausing its attempt to recover from this week's massive plunge. Cryptocurrency-related stocks Coinbase Global COIN.O, Riot Blockchain RIOT.O and Marathon Digital Holdings MARA.O firmed 0.7% and 2%.
Deere & Co DE.N gained 2.4% after the farm equipment manufacturer raised its full-year profit forecast.
Shoes and apparel retailer Foot locker FL.N rose 0.8% ahead of its results.
(Reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and 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 Medha Singh May 21 (Reuters) - U.S. stock index futures ticked higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak as worries over higher interest rates weighed on the tech-heavy index.
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By Medha Singh May 21 (Reuters) - U.S. stock index futures ticked higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading. The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak as worries over higher interest rates weighed on the tech-heavy index. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.
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By Medha Singh May 21 (Reuters) - U.S. stock index futures ticked higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak as worries over higher interest rates weighed on the tech-heavy index.
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By Medha Singh May 21 (Reuters) - U.S. stock index futures ticked higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak as worries over higher interest rates weighed on the tech-heavy index.
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02ecee5e-f735-4c70-b85c-f16bf94bebb7
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721546.0
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2021-05-21 00:00:00 UTC
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Deere Q2 Profit Climbs, Tops Market View; Lifts FY21 Earnings View - Quick Facts
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DE
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https://www.nasdaq.com/articles/deere-q2-profit-climbs-tops-market-view-lifts-fy21-earnings-view-quick-facts-2021-05-21
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nan
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nan
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(RTTNews) - Machinery manufacturer Deere And Co (DE) reported Friday that its second-quarter net income attributable to the company surged 169 percent to of $1.79 billion or $5.68 per share from last year's $666 million or $2.11 per share.
On average, analysts polled by Thomson Reuters expected earnings of $4.52 per share. Analysts' estimates typically exclude special items.
Worldwide net sales and revenues increased 30 percent to $12.068 billion from $9.25 billion a year ago, reflecting strong market conditions and broad improvement across divisions and geographies.
Net sales of the equipment operations were $10.998 billion, compared with $8.224 billion last year.
Looking ahead for fiscal 2021, the company projects attributable net income to be in a range of $5.3 billion to $5.7 billion. The company previously expected net income in a range of $4.6 billion to $5.0 billion.
John May, chairman and chief executive officer, said, "While the company is clearly performing at a high level, Deere expects to see increased supply-chain pressures through the balance of the year... Despite these challenges, Deere is on track for a strong year.."
The views and 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) - Machinery manufacturer Deere And Co (DE) reported Friday that its second-quarter net income attributable to the company surged 169 percent to of $1.79 billion or $5.68 per share from last year's $666 million or $2.11 per share. John May, chairman and chief executive officer, said, "While the company is clearly performing at a high level, Deere expects to see increased supply-chain pressures through the balance of the year... Analysts' estimates typically exclude special items.
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(RTTNews) - Machinery manufacturer Deere And Co (DE) reported Friday that its second-quarter net income attributable to the company surged 169 percent to of $1.79 billion or $5.68 per share from last year's $666 million or $2.11 per share. Worldwide net sales and revenues increased 30 percent to $12.068 billion from $9.25 billion a year ago, reflecting strong market conditions and broad improvement across divisions and geographies. Analysts' estimates typically exclude special items.
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(RTTNews) - Machinery manufacturer Deere And Co (DE) reported Friday that its second-quarter net income attributable to the company surged 169 percent to of $1.79 billion or $5.68 per share from last year's $666 million or $2.11 per share. Worldwide net sales and revenues increased 30 percent to $12.068 billion from $9.25 billion a year ago, reflecting strong market conditions and broad improvement across divisions and geographies. Analysts' estimates typically exclude special items.
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(RTTNews) - Machinery manufacturer Deere And Co (DE) reported Friday that its second-quarter net income attributable to the company surged 169 percent to of $1.79 billion or $5.68 per share from last year's $666 million or $2.11 per share. Analysts' estimates typically exclude special items. Worldwide net sales and revenues increased 30 percent to $12.068 billion from $9.25 billion a year ago, reflecting strong market conditions and broad improvement across divisions and geographies.
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1b0770c8-4dcc-4f7d-ac97-49de0fad3218
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721547.0
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2021-05-21 00:00:00 UTC
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Deere raises forecast as profit more than doubles on equipment demand
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DE
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https://www.nasdaq.com/articles/deere-raises-forecast-as-profit-more-than-doubles-on-equipment-demand-2021-05-21
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nan
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nan
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Adds equipment operations and total revenue, forecast
May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year profit forecast and posted a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment.
While a rebounding global economy has boosted demand for agriculture and construction equipment, companies are increasingly flagging supply chain constraints and semiconductor crunch as major bottlenecks that could thwart growth in the near term.
"Deere expects to see increased supply-chain pressures through the balance of the year," Chief Executive Officer John May said.
The company, however, expects net income for 2021 to be between $5.3 billion and $5.7 billion, up from a previous forecast of $4.6 billion to $5.0 billion.
The world's largest farm equipment manufacturer said revenue in the company's equipment operations rose to $11 billion from $8.22 billion a year earlier.
Total revenue rose to $12.06 billion from $9.25 billion.
Net income attributable to the company rose to $1.79 billion, or $5.68 per share, in the second quarter, from $666 million, or $2.11 per share.
(Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi)
((Shreyasee.Raj@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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Adds equipment operations and total revenue, forecast May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year profit forecast and posted a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. While a rebounding global economy has boosted demand for agriculture and construction equipment, companies are increasingly flagging supply chain constraints and semiconductor crunch as major bottlenecks that could thwart growth in the near term. "Deere expects to see increased supply-chain pressures through the balance of the year," Chief Executive Officer John May said.
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Adds equipment operations and total revenue, forecast May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year profit forecast and posted a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. While a rebounding global economy has boosted demand for agriculture and construction equipment, companies are increasingly flagging supply chain constraints and semiconductor crunch as major bottlenecks that could thwart growth in the near term. "Deere expects to see increased supply-chain pressures through the balance of the year," Chief Executive Officer John May said.
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Adds equipment operations and total revenue, forecast May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year profit forecast and posted a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. While a rebounding global economy has boosted demand for agriculture and construction equipment, companies are increasingly flagging supply chain constraints and semiconductor crunch as major bottlenecks that could thwart growth in the near term. "Deere expects to see increased supply-chain pressures through the balance of the year," Chief Executive Officer John May said.
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Adds equipment operations and total revenue, forecast May 21 (Reuters) - Deere & Co DE.N on Friday raised its full-year profit forecast and posted a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment. While a rebounding global economy has boosted demand for agriculture and construction equipment, companies are increasingly flagging supply chain constraints and semiconductor crunch as major bottlenecks that could thwart growth in the near term. "Deere expects to see increased supply-chain pressures through the balance of the year," Chief Executive Officer John May said.
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2f6e3120-418c-4953-a4ae-369907221214
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721548.0
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2021-05-21 00:00:00 UTC
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US STOCKS-Wall St set to open higher ahead of U.S. business surveys
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-ahead-of-u.s.-business-surveys-2021-05-21
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nan
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nan
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By Medha Singh
May 21 (Reuters) - Wall Street's main indexes were set to open slightly higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading.
IHS Markit's U.S. manufacturing and service sector Purchasing Managers Index data would come on the heels of surveys in the euro zone indicating the fastest pace of business growth in over three years in May.
Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.
The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak. The S&P 500 and the Dow were headed for second straight weekly declines.
"After some pressure in the start of the week we can see some buying interest in beaten-down mega-cap tech names as their valuations seem to look a bit more attractive," said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York.
"The market would also focus on how cryptocurrencies perform, and if they fall even more, it could spark off some selling going ahead."
Bitcoin BTC=BTSP hovered around $40,000, pausing its attempt to recover from this week's massive plunge. Cryptocurrency-related stocks Coinbase Global COIN.O, Riot Blockchain RIOT.O and Marathon Digital Holdings MARA.O firmed between 1.6% and 2.7%.
At 8:31 a.m. ET, Dow e-minis 1YMcv1were up 134 points, or 0.39%, S&P 500 e-minis EScv1were up 15.5 points, or 0.37%, and Nasdaq 100 e-minis NQcv1were up 49.25 points, or 0.37%.
Deere & Co DE.N gained 1.2% after the farm equipment manufacturer raised its full-year profit forecast.
Foot locker FL.N rose 2.1% after the shoes and apparel retailer posted a more than 80% jump in first-quarter sales.
(Reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and 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 Medha Singh May 21 (Reuters) - Wall Street's main indexes were set to open slightly higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. IHS Markit's U.S. manufacturing and service sector Purchasing Managers Index data would come on the heels of surveys in the euro zone indicating the fastest pace of business growth in over three years in May.
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By Medha Singh May 21 (Reuters) - Wall Street's main indexes were set to open slightly higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. IHS Markit's U.S. manufacturing and service sector Purchasing Managers Index data would come on the heels of surveys in the euro zone indicating the fastest pace of business growth in over three years in May.
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By Medha Singh May 21 (Reuters) - Wall Street's main indexes were set to open slightly higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. IHS Markit's U.S. manufacturing and service sector Purchasing Managers Index data would come on the heels of surveys in the euro zone indicating the fastest pace of business growth in over three years in May.
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IHS Markit's U.S. manufacturing and service sector Purchasing Managers Index data would come on the heels of surveys in the euro zone indicating the fastest pace of business growth in over three years in May. Wall Street's main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market. By Medha Singh May 21 (Reuters) - Wall Street's main indexes were set to open slightly higher on Friday, extending a recovery from the previous session, as attention shifted to business surveys at the end of a volatile week of trading.
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83c48e38-290a-4581-892d-eaf89b3c2cfb
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721549.0
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2021-05-20 00:00:00 UTC
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4 Top Stock Trades for Friday: CSCO, RIDE, KSS, DE
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DE
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https://www.nasdaq.com/articles/4-top-stock-trades-for-friday%3A-csco-ride-kss-de-2021-05-20
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The market’s strong finish on Wednesday carried over to Thursday’s session, with bulls buying the open and bidding up the market all morning. That said, let’s look at a few top stock trades going into Friday.
Top Stock Trades for Tomorrow No. 1: Cisco Systems (CSCO)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Cisco Systems (NASDAQ:CSCO) started off notably lower on the day, opening with some post-earnings losses on Thursday. However, shares have rallied off the lows and erased those losses.
So far, Cisco continues to find its pre-novel coronavirus 2020 high as support, at $50.31. The stock had a huge breakout over this mark earlier in the year and continues to hold it as support.
Amid the bounce, it also reclaimed the 10-day moving average. However, while it continues to find support, Cisco also continues to struggle with the $52 to $53 area.
7 Industrial Stocks to Buy for a Rock-Solid Foundation
If it can clear that measure, last week’s high of $54.14 is in play. Above that, and perhaps we can take a trip to multi-year highs near $58.
Top Stock Trades for Tomorrow No. 2: Lordstown Motors (RIDE)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Lordstown Motors (NASDAQ:RIDE) fell more than 15% in Thursday’s midday trading session. However, shares rallied more than 60% over the prior four days leading up to today’s action.
For now, the stock is struggling with the $11 level and the declining 50-day moving average. If it can clear this week’s high, the $12.80 measure is in play. Above $12.80 and perhaps RIDE stock can fill that small gap up toward $14.27.
If we get a real squeeze higher, the 21-week moving average and the $17 mark are possible.
On the downside, however, keep an eye on the 21-day moving average. A close below that could put a retest of the lows in play, near $6.75.
Top Stock Trades for Tomorrow No. 3: Kohl’s (KSS)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Kohl’s (NYSE:KSS) is getting hit on earnings, sinking 10% on the day. However, it’s also catching a decent bounce from the lows.
This one is a tricky but interesting one.
It’s got several notable support measures between $50 and $54. That includes the 21-week and 200-week moving averages, as well as the pre-coronavirus 2020 high.
As much as investors won’t want to risk $4 a share, it’s not absurd to be long against $50. On a break of $50, we have a problem and it could send Kohl’s stock down to the $42.50 level and the 200-day moving average.
On the upside, though, let’s see if can get a gap-fill back toward the 50-day moving average and the $60 area. Above that puts $62 to $63 resistance in play.
3 Consumer Cyclical Stocks to Buy for the Coming Travel Explosion
If we can get a breakout to occur, the 161.8% extension at $76.50 is a reasonable longer-term target, but we need to see the stock clear its current highs for that to happen.
Top Trades for Tomorrow No. 4: Deere (DE)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Last but certainly not least given its strength over the last few quarters, we have a pre-earnings look at Deere (NYSE:DE).
This stock has been on a heck of a run, but it’s been out of favor over the last few days, declining in its last four sessions and in seven of the last nine days.
Personally, I would love to see the stock open at (and hold) the 21-week moving average and reclaim the Thursday low. That would give investors a solid low to measure against on Friday morning after it reports earnings.
On a sustained move below the 21-week moving average, we could have a test of the $325 area. On a real pullback, the $305 mark could be tested.
As for the upside, look for a move back through recent support near $366. Back above it puts the 50-day moving average in play near $375, followed by recent resistance at $386.
Above all those marks and the highs near $400 are possible.
On the date of publication, Bret Kenwell 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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Friday: CSCO, RIDE, KSS, DE 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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Top Stock Trades for Tomorrow No. Click to Enlarge Source: Chart courtesy of TrendSpider Cisco Systems (NASDAQ:CSCO) started off notably lower on the day, opening with some post-earnings losses on Thursday. Click to Enlarge Source: Chart courtesy of TrendSpider Lordstown Motors (NASDAQ:RIDE) fell more than 15% in Thursday’s midday trading session.
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Top Stock Trades for Tomorrow No. Click to Enlarge Source: Chart courtesy of TrendSpider Cisco Systems (NASDAQ:CSCO) started off notably lower on the day, opening with some post-earnings losses on Thursday. Click to Enlarge Source: Chart courtesy of TrendSpider Lordstown Motors (NASDAQ:RIDE) fell more than 15% in Thursday’s midday trading session.
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Top Stock Trades for Tomorrow No. The post 4 Top Stock Trades for Friday: CSCO, RIDE, KSS, DE appeared first on InvestorPlace. That said, let’s look at a few top stock trades going into Friday.
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Top Stock Trades for Tomorrow No. Click to Enlarge Source: Chart courtesy of TrendSpider Cisco Systems (NASDAQ:CSCO) started off notably lower on the day, opening with some post-earnings losses on Thursday. The post 4 Top Stock Trades for Friday: CSCO, RIDE, KSS, DE appeared first on InvestorPlace.
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57d78cd1-5737-4eea-be84-da875b16e1bf
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721550.0
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2021-05-20 00:00:00 UTC
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What To Expect From Deere's Q2?
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DE
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https://www.nasdaq.com/articles/what-to-expect-from-deeres-q2-2021-05-20
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nan
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nan
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Deere & Company (NYSE:DE) is scheduled to report its fiscal second-quarter results on Friday, May 21. We expect Deere to likely post revenues and earnings slightly below the consensus estimates. Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies are opening up gradually, bolstering its overall revenue growth during the quarter. Our forecast indicates that Deere’s valuation is around $384 per share, which is in-line with the current market price. Now, based on our estimates, the company will likely report numbers below the street expectations, which is likely to result in DE stock trading lower post the Q1 announcement, and that may offer a good entry point for long term investors to buy the stock. Look at our interactive dashboard analysis on Deere & Company Pre-Earnings: What To Expect in Q2? for more details.
(1) Revenues expected to be below the consensus estimate
Trefis estimates Deere’s Q2 fiscal 2021 total revenues to be around $10.2 Bil, slightly below the consensus estimate of $10.4 Bil. The company saw a strong rebound in the demand for construction as well as agriculture equipment in Q1, with revenue rising a solid 19% to $9.1 billion. The company, of late, has seen an increase in spending on agricultural equipment, primarily small tractors, and this could continue to drive the revenue growth in Q2. Deere in its previousearnings conference callprovided an outlook for roughly 20% revenue growth for both Agriculture & Turf as well as Construction & Forestry segments in 2021, primarily small agriculture, which ended the year at historic lows for inventory to sales ratio, and the company expects the inventory levels to rebound in 2021. However, a high inflation due to high demand and supply constraints post the pandemic could result in increased expenses for farmers, impacting the overall spend on agricultural equipment, over the coming quarters. Our dashboard on Deere Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be below the consensus estimates
Deere’s Q2 2021 earnings per share (EPS) is expected to be $4.25 per Trefis analysis, 6% below the consensus estimate of $4.52. Deere’s net income of $1.2 billion in Q1, reflected a 137% growth from its $517 million profit in the prior year quarter, led by a decline in operating expenses. Q1 also saw a higher price realization for all the segments, aiding the overall margins, a trend which may continue in Q2 as well. Looking at the full year 2021, we expect a 70% y-o-y growth in EPS to $14.75, aided by both revenue growth as well as margin expansion.
(3) Stock price estimate in-line with the current market price
Going by our Deere & Company Valuation, with an EPS estimate of around $14.75 and P/E multiple of 26x in fiscal 2021, this translates into a price of $384, which is in-line with the current market price – $384.
Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, the demand for both agriculture as well as construction equipment is seeing a rebound as the spread of the virus subsides, and this will result in strong revenue and earnings growth for Deere in the near term, in our view. That said, the rebound appears to be already priced in the current share value of $384, implying DE stock is fully valued at the current levels.
Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year
While DE stock looks fully valued, it is helpful to see how its peers stack up. DE stock comparison with its peers summarizes how Deere compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies are opening up gradually, bolstering its overall revenue growth during the quarter. Deere’s net income of $1.2 billion in Q1, reflected a 137% growth from its $517 million profit in the prior year quarter, led by a decline in operating expenses. Deere & Company (NYSE:DE) is scheduled to report its fiscal second-quarter results on Friday, May 21.
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(1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q2 fiscal 2021 total revenues to be around $10.2 Bil, slightly below the consensus estimate of $10.4 Bil. (3) Stock price estimate in-line with the current market price Going by our Deere & Company Valuation, with an EPS estimate of around $14.75 and P/E multiple of 26x in fiscal 2021, this translates into a price of $384, which is in-line with the current market price – $384. Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year While DE stock looks fully valued, it is helpful to see how its peers stack up.
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(1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q2 fiscal 2021 total revenues to be around $10.2 Bil, slightly below the consensus estimate of $10.4 Bil. (3) Stock price estimate in-line with the current market price Going by our Deere & Company Valuation, with an EPS estimate of around $14.75 and P/E multiple of 26x in fiscal 2021, this translates into a price of $384, which is in-line with the current market price – $384. Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, the demand for both agriculture as well as construction equipment is seeing a rebound as the spread of the virus subsides, and this will result in strong revenue and earnings growth for Deere in the near term, in our view.
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2) EPS likely to be below the consensus estimates Deere’s Q2 2021 earnings per share (EPS) is expected to be $4.25 per Trefis analysis, 6% below the consensus estimate of $4.52. Looking at the full year 2021, we expect a 70% y-o-y growth in EPS to $14.75, aided by both revenue growth as well as margin expansion. (3) Stock price estimate in-line with the current market price Going by our Deere & Company Valuation, with an EPS estimate of around $14.75 and P/E multiple of 26x in fiscal 2021, this translates into a price of $384, which is in-line with the current market price – $384.
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52775cae-b520-4740-a5ec-e5bc776f7fa0
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721551.0
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2021-05-19 00:00:00 UTC
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Noteworthy ETF Outflows: MTUM, FDX, DE, ZM
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-mtum-fdx-de-zm-2021-05-19
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $154.0 million dollar outflow -- that's a 1.1% decrease week over week (from 85,150,000 to 84,200,000). Among the largest underlying components of MTUM, in trading today FedEx Corp (Symbol: FDX) is off about 1.3%, Deere & Co. (Symbol: DE) is down about 3.9%, and Zoom Video Communications Inc (Symbol: ZM) is lower by about 1.3%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average:
Looking at the chart above, MTUM's low point in its 52 week range is $119.87 per share, with $179.38 as the 52 week high point — that compares with a last trade of $160.44. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $119.87 per share, with $179.38 as the 52 week high point — that compares with a last trade of $160.44. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $119.87 per share, with $179.38 as the 52 week high point — that compares with a last trade of $160.44. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $154.0 million dollar outflow -- that's a 1.1% decrease week over week (from 85,150,000 to 84,200,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $154.0 million dollar outflow -- that's a 1.1% decrease week over week (from 85,150,000 to 84,200,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $119.87 per share, with $179.38 as the 52 week high point — that compares with a last trade of $160.44. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $154.0 million dollar outflow -- that's a 1.1% decrease week over week (from 85,150,000 to 84,200,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $119.87 per share, with $179.38 as the 52 week high point — that compares with a last trade of $160.44. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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6b632bae-ec83-43ce-93d7-f463971ead3c
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721552.0
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2021-05-18 00:00:00 UTC
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After A Large 3x Rise Has Caterpillar Stock Run Ahead Of Its Valuation?
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DE
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https://www.nasdaq.com/articles/after-a-large-3x-rise-has-caterpillar-stock-run-ahead-of-its-valuation-2021-05-18
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nan
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nan
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We believe that the Caterpillar stock (NYSE:CAT) looks richly valued at current levels of around $240, and it is vulnerable to downside risk. CAT stock is up 2.7x from the levels of under $90 it was at in March 2020, compared to the S&P which has moved 84%. CAT stock has significantly outperformed the broader markets, primarily due to upbeat results over the recent quarters, improved demand outlook, and a sooner than expected rebound in the economy. However, the stock is up a large 128% in the last one year despite revenue falling 16% y-o-y over the last four quarters. While the gradual opening up of the economy is expected to lead to higher demand for Caterpillar’s equipment, the positives appears to be priced in and CAT stock stock appears to have run ahead of its valuation, in our view. Our dashboard Buy Or Fear Caterpillar Stock provides the key numbers behind our thinking.
Looking at a longer time period, CAT stock is up 88% from levels of $127 seen toward the end of 2018. The rise in stock price over the last two years or so can be attributed to favorable changes in the company’s P/E multiple. Caterpillar’s revenues have trended lower, declining 24% to $41.7 billion in 2020, compared to $54.7 billion in 2018, primarily due to the impact of the Covid-19 pandemic on the demand for its equipment. The impact of the pandemic was visible not only on the top-line but also on margins, due to increased operating costs. The company’s net margins declined to 7.2% in 2020, from 11.2% in 2018. Caterpillar spent close to $9 billion on share repurchases between 2018 and 2020, resulting in a 8% drop in total shares outstanding. As such, on a per share basis, earnings plunged 47% to $5.51 in 2020, compared to $10.39 in 2018. Even if we were to look at adjusted EPS, it declined 42% to $6.56 in 2020, compared to $11.22 in 2018. Despite a large decline in EPS, the company’s P/E multiple expanded from levels of over 12x in 2018 to 33x in 2020. The P/E multiple has further increased to 43x now.
Outlook
2020 has not been a great year for Caterpillar’s revenue growth, given the lower demand for equipment across its verticals – construction, resource, and energy & transportation. This can be attributed to the impact of the pandemic on the non-residential construction, and lower demand for energy. That said, the company has seen a rebound in demand, evident from its Q1 2021 results. Caterpillar reported 12% growth in its top-line, led by a solid 26% growth in construction equipment sales. The company reported net margins of 12.9% during the quarter, 80 bps higher compared to 12.1% in the prior year quarter. Now, given that over 46% of the U.S. population has received at least one dose of Covid-19 vaccine, the economy is expected to see a rebound in growth, boding well for Caterpillar’s business. However, the positives appear to be already priced in the current value of $240 per share for CAT.
Caterpillar is expected to post revenues of $49.3 billion in 2021, up 18% y-o-y, while its earnings are expected to grow at a faster pace to $9.75 on a per share and adjusted basis, implying 49% y-o-y growth, led by a strong rebound in margins as well as the impact of share repurchases. At the current price of $240, CAT stock is trading at 25x its 2021 expected EPS of $9.75. This compares with levels of 11x and 13x seen in 2018 and 2019, respectively. In fact, even if we look two years out, CAT stock is trading at 20x its 2022 expected EPS of $11.90. Overall, given the large rally over the last year, and going by the valuation multiple, we believe that CAT stock is now vulnerable to downside risk.
While CAT stock nay see lower levels, it is helpful to see how its peers stack up. CAT stock comparison with its peers summarizes how Caterpillar compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and 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 believe that the Caterpillar stock (NYSE:CAT) looks richly valued at current levels of around $240, and it is vulnerable to downside risk. CAT stock has significantly outperformed the broader markets, primarily due to upbeat results over the recent quarters, improved demand outlook, and a sooner than expected rebound in the economy. Outlook 2020 has not been a great year for Caterpillar’s revenue growth, given the lower demand for equipment across its verticals – construction, resource, and energy & transportation.
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While the gradual opening up of the economy is expected to lead to higher demand for Caterpillar’s equipment, the positives appears to be priced in and CAT stock stock appears to have run ahead of its valuation, in our view. Caterpillar’s revenues have trended lower, declining 24% to $41.7 billion in 2020, compared to $54.7 billion in 2018, primarily due to the impact of the Covid-19 pandemic on the demand for its equipment. We believe that the Caterpillar stock (NYSE:CAT) looks richly valued at current levels of around $240, and it is vulnerable to downside risk.
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While the gradual opening up of the economy is expected to lead to higher demand for Caterpillar’s equipment, the positives appears to be priced in and CAT stock stock appears to have run ahead of its valuation, in our view. We believe that the Caterpillar stock (NYSE:CAT) looks richly valued at current levels of around $240, and it is vulnerable to downside risk. CAT stock is up 2.7x from the levels of under $90 it was at in March 2020, compared to the S&P which has moved 84%.
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Caterpillar’s revenues have trended lower, declining 24% to $41.7 billion in 2020, compared to $54.7 billion in 2018, primarily due to the impact of the Covid-19 pandemic on the demand for its equipment. We believe that the Caterpillar stock (NYSE:CAT) looks richly valued at current levels of around $240, and it is vulnerable to downside risk. CAT stock is up 2.7x from the levels of under $90 it was at in March 2020, compared to the S&P which has moved 84%.
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8367870f-e5b6-4a7c-a391-06459a51b567
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721553.0
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2021-05-14 00:00:00 UTC
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Creating New Industries, Transforming Old Ones, Generating Wealth
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DE
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https://www.nasdaq.com/articles/creating-new-industries-transforming-old-ones-generating-wealth-2021-05-14
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cars that drive themselves.
Source: Shutterstock
Machines that think like humans.
Batteries that power everything from cell phones to airplanes.
These are the kinds of technologies people think about when looking into the future.
They don’t think about tractors.
10 Dividend Aristocrat Stocks for Your Reliability Short List
But that’s the cool thing about the Roaring 2020s.
These breakthroughs touch everything. They create new industries and transform old ones.
That’s why I think this decade will bring some of the best opportunities investors ever see.
Take the story of a 184-year-old company that began with a new way to plow dirt and is now moving headlong into advanced technology.
Companies everywhere must do the same …
Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980.
AVs are going to reshape the American landscape. How you vacation, where you live, even the way we design our cities and neighborhoods will change.
With this much at stake, many of the world’s smartest, richest, most powerful entrepreneurs, investors and corporations are working day and night to make early and strong entrances into this market that will one day be massive.
I have no doubt the winners of this race will see their stocks advance 10-fold … 20-fold … even 100-fold over the coming decade … taking investors along for the ride of their lives.
But autonomous driving technology isn’t just for cars. It isn’t even just for busses, or trains, or airplanes.
More than 70 years before Henry Ford introduced the Model T, a blacksmith by the name of John Deere saw a broken steel sawmill blade and had an idea. Farmers had to constantly stop working to knock dirt off their cast-iron plows. Deere thought that if the plows were made of polished steel, the dirt would slide off and make farming a whole lot easier.
Deere & Company (NYSE:DE) began in 1837 with what was a “high tech” plow at the time, and you know the rest of the story. It grew into one of the world’s biggest companies that manufactures all kinds of equipment for agriculture, construction, lawn care and more.
Deere continues to embrace innovation and is now focused on new technology that will reshape the company and its industry. The company itself says it is transforming from a “machinery company” into a “smart technology company.”
Investors like what they see. The stock has jumped more than 200% in the last 12 months — which included the pandemic — giving the company a valuation of $120 billion.
I got to see some of what Deere is up to a little over a year ago at the Consumer Electronics Show (CES) in Las Vegas. I’m more of a city boy, so I can’t say I’ve done a lot of farming or lawn care in my time, but what I saw was cool.
The company is focused on three main areas of innovation …
Electric power: The days of tractors growling through the fields and belching smoke into the air are coming to an end. “Electrification is not just about replacing the fuel tank; it’s about replacing the complete engine,” said Martin Kremmer of the John Deere European Technology Center.
This results in zero emissions, low maintenance costs and increased efficiency and productivity. Efficiency and productivity will improve even more as next-generation batteries are rolled out.
The coming breakthrough battery technology will power all electric vehicles of the future. Deere recognizes its importance … and so do smart investors. That makes now the time to get in position for the biggest profits.
Autonomy: Yes, tractors will drive themselves one day. In fact, some believe tractors might get there before cars because they operate in open fields instead of crowded streets.
But in this case, autonomy means more than self-driving. For example, Deere is developing autonomous ways to spray crops. One way is through drones, which would house a scanner that identifies weeds and automatically triggers a pesticide spray when needed. (The drones would also rely on battery power.)
Artificial intelligence (AI): High-resolution cameras take 20 pictures per second, and using AI, the system “learns” the difference between weeds and crops. It then sprays weed killer where needed instead of blanketing an entire field. That’s better for the environment, more effective for the farmer and cheaper to boot.
With this kind of innovation occurring in industry after industry, you can see why I believe the Roaring 2020s will be a decade for the investing record books.
Several once-in-a-generation technologies are converging at the same time and transforming virtually every aspect of our lives — from healthcare to instant communication to robotics to electric power and much more. Even an industry like farming, which you could say is as old as dirt, is becoming “smart.”
The impact these technologies have on the global economy will one day dwarf the internet. To make money, you want to invest in companies leading the way. And to make the big money, you want to do it soon … while it’s still early.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now.
The post Creating New Industries, Transforming Old Ones, Generating Wealth 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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More than 70 years before Henry Ford introduced the Model T, a blacksmith by the name of John Deere saw a broken steel sawmill blade and had an idea. 10 Dividend Aristocrat Stocks for Your Reliability Short List But that’s the cool thing about the Roaring 2020s. That’s why I think this decade will bring some of the best opportunities investors ever see.
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Companies everywhere must do the same … Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980. More than 70 years before Henry Ford introduced the Model T, a blacksmith by the name of John Deere saw a broken steel sawmill blade and had an idea. 10 Dividend Aristocrat Stocks for Your Reliability Short List But that’s the cool thing about the Roaring 2020s.
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Deere continues to embrace innovation and is now focused on new technology that will reshape the company and its industry. 10 Dividend Aristocrat Stocks for Your Reliability Short List But that’s the cool thing about the Roaring 2020s. That’s why I think this decade will bring some of the best opportunities investors ever see.
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Companies everywhere must do the same … Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980. 10 Dividend Aristocrat Stocks for Your Reliability Short List But that’s the cool thing about the Roaring 2020s. That’s why I think this decade will bring some of the best opportunities investors ever see.
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6d336600-17db-41de-a0f1-b6662c595437
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721554.0
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2021-05-12 00:00:00 UTC
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Notable Wednesday Option Activity: LEN, ALL, DE
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DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-len-all-de-2021-05-12
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Lennar Corp (Symbol: LEN), where a total of 15,905 contracts have traded so far, representing approximately 1.6 million underlying shares. That amounts to about 87.3% of LEN's average daily trading volume over the past month of 1.8 million shares. Especially high volume was seen for the $100 strike put option expiring June 11, 2021, with 3,070 contracts trading so far today, representing approximately 307,000 underlying shares of LEN. Below is a chart showing LEN's trailing twelve month trading history, with the $100 strike highlighted in orange:
Allstate Corp (Symbol: ALL) options are showing a volume of 11,783 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 71% of ALL's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $140 strike call option expiring June 18, 2021, with 9,323 contracts trading so far today, representing approximately 932,300 underlying shares of ALL. Below is a chart showing ALL's trailing twelve month trading history, with the $140 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 7,649 contracts, representing approximately 764,900 underlying shares or approximately 56.4% of DE's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $375 strike put option expiring May 14, 2021, with 239 contracts trading so far today, representing approximately 23,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $375 strike highlighted in orange:
For the various different available expirations for LEN options, ALL options, or DE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $100 strike put option expiring June 11, 2021, with 3,070 contracts trading so far today, representing approximately 307,000 underlying shares of LEN. Particularly high volume was seen for the $140 strike call option expiring June 18, 2021, with 9,323 contracts trading so far today, representing approximately 932,300 underlying shares of ALL. Particularly high volume was seen for the $375 strike put option expiring May 14, 2021, with 239 contracts trading so far today, representing approximately 23,900 underlying shares of DE.
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Especially high volume was seen for the $100 strike put option expiring June 11, 2021, with 3,070 contracts trading so far today, representing approximately 307,000 underlying shares of LEN. Below is a chart showing ALL's trailing twelve month trading history, with the $140 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 7,649 contracts, representing approximately 764,900 underlying shares or approximately 56.4% of DE's average daily trading volume over the past month, of 1.4 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Lennar Corp (Symbol: LEN), where a total of 15,905 contracts have traded so far, representing approximately 1.6 million underlying shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Lennar Corp (Symbol: LEN), where a total of 15,905 contracts have traded so far, representing approximately 1.6 million underlying shares. Especially high volume was seen for the $100 strike put option expiring June 11, 2021, with 3,070 contracts trading so far today, representing approximately 307,000 underlying shares of LEN. Below is a chart showing ALL's trailing twelve month trading history, with the $140 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 7,649 contracts, representing approximately 764,900 underlying shares or approximately 56.4% of DE's average daily trading volume over the past month, of 1.4 million shares.
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Especially high volume was seen for the $100 strike put option expiring June 11, 2021, with 3,070 contracts trading so far today, representing approximately 307,000 underlying shares of LEN. Particularly high volume was seen for the $140 strike call option expiring June 18, 2021, with 9,323 contracts trading so far today, representing approximately 932,300 underlying shares of ALL. Below is a chart showing ALL's trailing twelve month trading history, with the $140 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 7,649 contracts, representing approximately 764,900 underlying shares or approximately 56.4% of DE's average daily trading volume over the past month, of 1.4 million shares.
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31672f9d-3009-4bbf-beba-f32fe9af7eb0
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721555.0
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2021-05-10 00:00:00 UTC
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Everyone's Wrong About This 4.6% Dividend (It Will Double)
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DE
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https://www.nasdaq.com/articles/everyones-wrong-about-this-4.6-dividend-it-will-double-2021-05-10
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nan
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nan
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Don't listen to the naysayers--tech stocks are set to thrive in the coming months, and the sector is still a great place for us to go hunting for big, and growing, dividends.
Here's one reason why: despite worries about rising interest rates, the Federal Reserve is likely to keep its key lending rate near zero. That, in turn, means businesses, and especially innovative tech players, will continue to have access to cheap money to invest in new products.
This low-rate world also means investors starved for income will crowd into any higher-paying investments they can spot (including high-paying tech funds like the one we'll discuss below). That influx will be helped by the fact that Treasury yields are likely to stay roughly where they are today, at a meager 1.6%, going by the expectations of the futures market.
If this sounds like a familiar setup, it's because a long-term low-rate environment was the reality through most of the 2010s, and it fueled the strong stock-market returns we saw back then.
Low Rates = Strong Gains
And of course, rock-bottom rates continued to push stocks higher after the March 2020 collapse. So while continued low rates--along with unprecedented government stimulus and Americans releasing the cash they've saved during the pandemic into the economy--will likely fuel higher inflation, we're likely to see a continued rise in the market, too.
Low Rates Likely Until 2024 (or Later)
Right now, the derivatives market is predicting the Fed's lending rate will stay near zero until 2024, when it will begin to gradually rise. Three years of low rates is a long time for companies to borrow and invest in their businesses.
A great way to target the firms getting the most bang for their investment buck is through a closed-end fund (CEF) called the BlackRock Science and Technology Trust (BST). It holds big tech stocks with sky-high R&D spending, like Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN).
(Members of my CEF Insider service will recognize BST: the last time we held the fund in the service's portfolio, from August 2019 to June 2020, it handed us a nice 26% total return.)
Source: BlackRock
BST's high-quality portfolio and growing dividend (current yield: 4.6%) make it worth a look today--and definitely worth a look on any short-term rate-panicked dip in the markets (which we got a hint of last week, when Treasury Secretary Janet Yellen said rates may have to rise sooner rather than later, then quickly backtracked).
Such a pullback would bring BST's premium to net asset value (NAV, or the value of its underlying portfolio) down from 9% and closer to par (this fund regularly trades at premiums, so I have no problem paying a bit more than par for it, because a slight premium is still a good deal, historically speaking).
Let's move on to BST's 4.6% dividend, which is far more than you'd get buying its portfolio of tech names on their own (and would be higher for you if you bought the fund on a dip). As I mentioned earlier, this payout is also a magnet for income-seekers looking for payouts higher than the 1.3% the typical S&P 500 stock dribbles out, or the 1.6% yield on US Treasuries.
When it comes to performance, BST boasts a sterling history: it's been crushing the passive ETFs that track the S&P 500 and the NASDAQ since it launched in 2014--something the prevailing investment "wisdom" tells us actively managed funds like this one aren't supposed to do!
Human Managers Clobber the ETFs
As you can see above, the S&P 500, shown by the performance of the SPDR S&P 500 ETF (SPY), has delivered 141.7% returns since BST launched, while BST has more than doubled that with a 347.5% total return. That's also even more than the tech focused Invesco QQQ Trust (QQQ), which focuses on the tech-heavy NASDAQ 100.
Meantime, BST has not only maintained its payouts but raised them over the life of the fund, in addition to paying a massive special dividend in late 2019.
A High Yield That Grows (With Regular Special Dividends, Too)
My take? Keep a sharp eye on BST. If you see a pullback in its premium, seriously consider adding it to your portfolio. Aside from its attractive dividend, the fund is nicely positioned to gain as low rates encourage tech companies to borrow and invest in further R&D.
This Unsung Tech CEF Is Cheap Now (and Its 5.5% Payout Is Surging)
While you're waiting for BST to come back down to our buy level, I've got another tech fund that's dirt cheap--and ripe for buying--now. It's tied to the surging growth of artificial intelligence, the market for which is forecast to jump 46% in 2022 alone.
Now, you'd normally have to forsake all dividends and buy a more volatile stock to tap into a surging tech trend like AI, but not with this fund. It targets not only AI developers but also stocks that benefit from the use of AI, like insurer UnitedHealth Group (UNH) and industrial giant Deere & Co. (DE).
And talk about dividends! This fund pays 5.5% today, more than BST offers, and it recently raised its payout 15%. And unlike with BST, I recommend running out and buying this one NOW: it trades at a totally undeserved 6% discount, letting us buy in for 94 cents on the dollar!
This breakthrough fund is part of a 5-CEF "mini-portfolio" I'm urging investors to buy now. The funds inside it yield 7.3% on average, and they're all cheap, setting us up for 20%+ in price upside!
I'm ready to share full details on this breakthrough tech CEF, and the other 4 funds in this carefully crafted portfolio (which span the economy, with holdings ranging from stocks to real estate investment trusts to corporate bonds). Go here and I'll give you everything you need to know about these 5 funds: names, tickers, dividend histories and much more.
The views and 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 listen to the naysayers--tech stocks are set to thrive in the coming months, and the sector is still a great place for us to go hunting for big, and growing, dividends. I'm ready to share full details on this breakthrough tech CEF, and the other 4 funds in this carefully crafted portfolio (which span the economy, with holdings ranging from stocks to real estate investment trusts to corporate bonds). Here's one reason why: despite worries about rising interest rates, the Federal Reserve is likely to keep its key lending rate near zero.
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Source: BlackRock BST's high-quality portfolio and growing dividend (current yield: 4.6%) make it worth a look today--and definitely worth a look on any short-term rate-panicked dip in the markets (which we got a hint of last week, when Treasury Secretary Janet Yellen said rates may have to rise sooner rather than later, then quickly backtracked). Aside from its attractive dividend, the fund is nicely positioned to gain as low rates encourage tech companies to borrow and invest in further R&D. Don't listen to the naysayers--tech stocks are set to thrive in the coming months, and the sector is still a great place for us to go hunting for big, and growing, dividends.
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Source: BlackRock BST's high-quality portfolio and growing dividend (current yield: 4.6%) make it worth a look today--and definitely worth a look on any short-term rate-panicked dip in the markets (which we got a hint of last week, when Treasury Secretary Janet Yellen said rates may have to rise sooner rather than later, then quickly backtracked). Let's move on to BST's 4.6% dividend, which is far more than you'd get buying its portfolio of tech names on their own (and would be higher for you if you bought the fund on a dip). Don't listen to the naysayers--tech stocks are set to thrive in the coming months, and the sector is still a great place for us to go hunting for big, and growing, dividends.
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A High Yield That Grows (With Regular Special Dividends, Too) Don't listen to the naysayers--tech stocks are set to thrive in the coming months, and the sector is still a great place for us to go hunting for big, and growing, dividends. Here's one reason why: despite worries about rising interest rates, the Federal Reserve is likely to keep its key lending rate near zero.
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af01003a-4151-4409-8df9-f15e187a1398
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721556.0
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2021-05-09 00:00:00 UTC
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Is Now An Opportune Moment To Examine Deere & Company (NYSE:DE)?
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DE
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https://www.nasdaq.com/articles/is-now-an-opportune-moment-to-examine-deere-company-nyse%3Ade-2021-05-09
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nan
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nan
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Today we're going to take a look at the well-established Deere & Company (NYSE:DE). The company's stock received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Deere’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Is Deere still cheap?
According to my price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 35.74x is currently trading slightly above its industry peers’ ratio of 35.5x, which means if you buy Deere today, you’d be paying a relatively sensible price for it. And if you believe that Deere should be trading at this level in the long run, then there should only be a fairly immaterial downside vs other industry peers. Although, there may be an opportunity to buy in the future. This is because Deere’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Deere?
NYSE:DE Earnings and Revenue Growth May 9th 2021
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Deere's earnings over the next few years are expected to increase by 80%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? DE’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at DE? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?
Are you a potential investor? If you’ve been keeping tabs on DE, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for DE, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into Deere, you'd also look into what risks it is currently facing. To help with this, we've discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Deere.
If you are no longer interested in Deere, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Deere's earnings over the next few years are expected to increase by 80%, indicating a highly optimistic future ahead. If you’ve been keeping tabs on DE, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for DE, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
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The stock’s ratio of 35.74x is currently trading slightly above its industry peers’ ratio of 35.5x, which means if you buy Deere today, you’d be paying a relatively sensible price for it. NYSE:DE Earnings and Revenue Growth May 9th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. DE’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples.
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The stock’s ratio of 35.74x is currently trading slightly above its industry peers’ ratio of 35.5x, which means if you buy Deere today, you’d be paying a relatively sensible price for it. This is because Deere’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. DE’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples.
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The stock’s ratio of 35.74x is currently trading slightly above its industry peers’ ratio of 35.5x, which means if you buy Deere today, you’d be paying a relatively sensible price for it. NYSE:DE Earnings and Revenue Growth May 9th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. DE’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples.
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3abb7f61-109b-41de-b4a3-f8606ee7d650
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721557.0
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2021-04-29 00:00:00 UTC
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INSIGHT-Surging U.S. crop prices reverse fortunes in rural Iowa
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DE
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https://www.nasdaq.com/articles/insight-surging-u.s.-crop-prices-reverse-fortunes-in-rural-iowa-2021-04-29
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By Tom Polansek
April 29 (Reuters) - U.S. farmer Rob Arkfeld was vacationing on a sandy beach in Mexico's Riviera Maya when he won an online auction to rent 535 acres of cropland back home in Iowa by bidding nearly double the local average for each acre.
While sipping a drink and swiping his smartphone, the 48-year-old agreed to pay an annual rent of $417.50 per acre for the next two years for the ground in Mills County. That amount is big enough not just to rent, but to buy land in some parts of the United States.
A surge to eight-year highs in U.S. corn Cv1 and soybean Sv1 prices is boosting farmers' incomes and their demand for land, tractors and tools. It is a turnaround for the agricultural sector after farmers struggled for years with a series of challenges: an oversupply of grain, former President Donald Trump's trade war with China and then the pandemic.
In western Iowa, where Arkfeld lives, the rise in farm income is helping to revitalize the rural economy, after a deadly flood in 2019 submerged fields and drove some growers out of business. Farm families are spending more at stores that sell clothing, grooming products and home improvement supplies, local businesses said.
Iowa's economy is particularly tied to agriculture as the state is the No. 1 U.S. producer of hogs and corn, as well as home to many seed and agricultural equipment dealerships.
"When farmers make money, they spend money, which is good for the economy all the way around," said Bret Hays, a farmer in Malvern, Iowa, in Mills County.
Hays is sowing crops this spring with his first new planter in about a dozen years, a hulking Deere & Co DE.N machine that costs nearly $350,000.
It is a stark contrast to 2019 when he cleared sand and debris left in his fields from floods and crop prices slumped during the U.S.-China trade war. Now, soaring grain prices make it easier to swallow the price tag of the planter he ordered last year and to pay off debt.
The uptick in the agricultural economy began last year when commodity prices started climbing as China accelerated imports of U.S. crops.
China increased purchases after the Phase 1 trade deal signed with Washington in January 2020, following two years of acrimony and a steep drop in imports.
Although China's 2020 imports fell short of the trade pact's goals, the purchases tightened U.S. grain supplies and rallied prices.
Values for good-quality Midwest farmland rose 4% in last year's fourth quarter from the third quarter, while repayment rates for non-real-estate farm loans notched their first year-on-year increase in seven years, according to the Federal Reserve Bank of Chicago.
Low interest rates, a lack of farmland for sale and record-large aid payments to farmers from the Trump administration are helping push up farmland values.
In Mills County, the average rent for farmland is $229 per acre, according to Iowa State University, about half of what Arkfeld paid. Arkfeld says he can guarantee a profit this year by booking corn and soy sales ahead of time for the autumn harvest.
"I never even looked at the farm to tell you the truth, until after I rented it," he said. "It's pretty decent."
Fellow farmers on Twitter and other online forums have said they think Arkfeld's rental payments are too high. Crop prices have continued to rise since he won the auction in February, though, making the deal look better and better.
On April 20, Arkfeld said he sold three-year-old soybeans left over in a storage bin for $15.03 a bushel, the highest price he has ever obtained for any soybeans.
LAND SALES HEAT UP
Farmers in Mills County, with about 15,000 residents, compete in land sales against investors and housing developers, locals said. Developers often buy smaller parcels to build homes that are later sold to people moving from Omaha, Nebraska, some searching for more space during the pandemic, they said.
"There's so much of the farm ground now that is housing and it's just going to keep going," said John Stortenbecker, owner of Glenwood Farm Equipment in Glenwood, Iowa, the county seat.
Local farmers who shop at Stortenbecker's store are pre-ordering grain bin augers, which transport crops into and out of storage, for the first time since he took over four years ago, he said.
Buyers are worried about availability of the augers - which cost up to $14,000 and are normally sold around harvest time - and are paying for them in advance, Stortenbecker said.
He is glad for the business after the worst flood in 50 years hit the area in March 2019 and the pandemic began one year later.
"This is the first year in three years that March didn't have something terrible happen," Stortenbecker said.
The U.S. Department of Agriculture on March 31 said farmers intended to plant fewer acres of corn and soybeans than analysts expected, sending crop prices on another rally.
Chicago Board of Trade corn futures Cc1 on Wednesday matched an eight-year high that was up 28% from the start of the month and 138% from a year earlier. At an eight-year peak on Tuesday, soybean futures Sc1 were up 12% for the month and 94% from the previous year.
The boom and bust nature of farming means grain prices could crash if farmers ultimately plant more acres or demand for grain evaporates.
In China, a government plan to change the crops used to feed livestock, and a resurgence of a deadly pig disease in the country could cut the need for corn and soybean imports and send U.S. prices lower.
TRACTOR DEMAND JUMPS
For now, high crop prices are lifting North America's demand for large farm machines to the highest level since 2012-13, said Eric Hansotia, chief executive of tractor maker AGCO Corp AGCO.N. Inventories of machines are lean and farmers need to replace aging fleets, he said.
At Lindeman Tractor in Atlantic, Iowa, an hour's drive northeast from Malvern, sales of new New Holland tractors made by CNH Industrial CNHI.MI started rising in November 2020, salesman Lonn Schlueter said. They are now up threefold from a year ago and the strongest in about nine years, he said.
"Customers are very optimistic, very satisfied with commodity prices," Schlueter said. "So they are anxious to improve their equipment and buy new."
Prices are up 20% year-on-year for large used tractors and 50% for small tractors, while supplies in North America are at an 18-year low, according to Jefferies Equity Research.
Federal stimulus checks are helping drive business in western Iowa, local stores said.
Online sales are up 600% at Bountiful Blossoms Bee Company in Glenwood, owner Carol Fassbinder-Orth said. She plans to hire workers from outside the family for the first time to keep up with rising demand for honey, soap and beard oil.
"The stimulus this year was better than Christmas,” Fassbinder-Orth said.
At Bomgaars, a general store in Glenwood, sales are up 15% to 20% from last year amid solid demand for clothing, gardening supplies and agricultural equipment like hydraulic hoses, salesman Bill Dawson said.
"If the farmers are doing good, everybody else is in pretty decent shape," said Doug Shere, who has served on Malvern's city council for 16 years.
(Reporting by Tom Polansek, Rajesh Kumar Singh and Mark Weinraub in Chicago Editing by Caroline Stauffer and Matthew Lewis)
((Thomas.Polansek@thomsonreuters.com; https://twitter.com/tpolansek))
The views and 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 China, a government plan to change the crops used to feed livestock, and a resurgence of a deadly pig disease in the country could cut the need for corn and soybean imports and send U.S. prices lower. For now, high crop prices are lifting North America's demand for large farm machines to the highest level since 2012-13, said Eric Hansotia, chief executive of tractor maker AGCO Corp AGCO.N. At Bomgaars, a general store in Glenwood, sales are up 15% to 20% from last year amid solid demand for clothing, gardening supplies and agricultural equipment like hydraulic hoses, salesman Bill Dawson said.
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For now, high crop prices are lifting North America's demand for large farm machines to the highest level since 2012-13, said Eric Hansotia, chief executive of tractor maker AGCO Corp AGCO.N. Federal stimulus checks are helping drive business in western Iowa, local stores said. A surge to eight-year highs in U.S. corn Cv1 and soybean Sv1 prices is boosting farmers' incomes and their demand for land, tractors and tools.
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Values for good-quality Midwest farmland rose 4% in last year's fourth quarter from the third quarter, while repayment rates for non-real-estate farm loans notched their first year-on-year increase in seven years, according to the Federal Reserve Bank of Chicago. Local farmers who shop at Stortenbecker's store are pre-ordering grain bin augers, which transport crops into and out of storage, for the first time since he took over four years ago, he said. A surge to eight-year highs in U.S. corn Cv1 and soybean Sv1 prices is boosting farmers' incomes and their demand for land, tractors and tools.
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A surge to eight-year highs in U.S. corn Cv1 and soybean Sv1 prices is boosting farmers' incomes and their demand for land, tractors and tools. Local farmers who shop at Stortenbecker's store are pre-ordering grain bin augers, which transport crops into and out of storage, for the first time since he took over four years ago, he said. It is a turnaround for the agricultural sector after farmers struggled for years with a series of challenges: an oversupply of grain, former President Donald Trump's trade war with China and then the pandemic.
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ec3d4b1c-e3d0-41c7-8c76-477366887ba8
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721558.0
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2021-04-29 00:00:00 UTC
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Biden's EU trade dilemma: more pain for Harley, distillers or back off metals tariffs?
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DE
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https://www.nasdaq.com/articles/bidens-eu-trade-dilemma%3A-more-pain-for-harley-distillers-or-back-off-metals-tariffs-2021
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nan
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nan
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By David Lawder and Rajesh Kumar Singh
WASHINGTON/CHICAGO, April 29 (Reuters) - The Biden administration faces a major dilemma in its dispute with the European Union over Trump-era steel and aluminum tariffs: back down to avoid acute pain for Harley-Davidson Inc and whiskey distillers or stick with the duties even though they are now exacerbating acute shortages for U.S. manufacturers.
The EU has threatened to double the tariffs on Harley-Davidson HOG.N motorcycles, American-made whiskey and power boats to 50% on June 1, cutting off any residual hope of exports to the continent.
President Joe Biden has pledged that he will maintain the tariff protections for the steel and aluminum industries until the problem of global excess production capacity - largely centered in China - can be addressed.
His sentiments were echoed by U.S. Trade Representative Katherine Tai on Wednesday, and his Commerce secretary, Gina Raimondo, said earlier this month that the tariffs "helped save American jobs in steel and aluminum industries."
Harley-Davidson has also been hit by a European court ruling that its bikes produced in Thailand will be treated as U.S. made, subjecting them to the 50% tariff as well - on top of the normal 6% tariff.
"If not for the tariffs, which are now threatening our recovering export potential, we could be investing in jobs at our American facilities," Harley Chief Executive Jochen Zeitz told an earnings call. "Instead, we are facing huge tariffs in a trade war - in a trade war not of our making."
The Milwaukee-based company is betting heavily on Europe, its second-largest market, to help fuel its turnaround strategy. But higher tariffs would give its rivals including Triumph, Honda 7267.T and Suzuki 7269.T a massive pricing advantage.
In Bristol, Pennsylvania, the craft distiller of Dad's Hat Pennsylvania Rye Whiskey recently managed to ship its first pallet to a European distributor in over two years after the current 25% tariffs stunted a growing export business in 2018.
"If you double those tariffs, forget about it. It would be done," Mountain Laurel Spirits LLC owner Herman Mihalich said of his export prospects.
STEELWORKERS: HOLD THE LINE
The United Steelworkers union and the mills that employ its members are urging the administration to continue backing the Section 232 tariffs on steel and aluminum, arguing that lifting them would allow subsidized Chinese steel to flood back into the U.S. market via third countries.
USW President Tom Conway acknowledged the pain for Harley but said the protections needed to remain in place until Chinese excess capacity was reduced.
"Some people get hurt when this sort of stuff goes on. So, I understand what they're saying. But I don't think the 232 can be lifted," Conway told Reuters, adding that perhaps the issue could be settled with steel import quotas for Europe.
U.S. Trade Representative Tai told senators that she is working with EU counterparts to find a solution, but they must address the issue of excess capacity in China, which produces half the world's steel.
She said she hopes that EU officials see the problem "as serious a challenge to their ability to produce and compete in steelmaking as we see it, and working together we will be able to resolve these sets of tariffs so that we can join forces on the bigger picture."
The EU has never accepted the premise of the 25% steel and 10% aluminum tariffs imposed by former president Donald Trump in March 2018, duties based on a Cold War-era trade law to protect domestic industries deemed critical to national security.
Critics from the EU to metals-consuming industries and the U.S. Chamber of Commerce argued that the metals were commodities available in ample quantity to meet U.S. defense needs and that European producers in countries that are trusted U.S. allies present no threat to U.S. security.
Sabine Weyand, director general of the European Commission's trade section, said earlier this month that she feared the two sides were "running out of time."
TIGHT MARKET
When the tariffs were imposed, the steel industry looked very different from its current supply-constrained condition. Imports were flooding in, taking nearly 30% of the U.S. market, and holding U.S. Midwest hot-rolled steel spot prices HRCc1 below $600 per ton.
The goal of the tariffs was to return U.S. steel mills to 80% of capacity use, a level at which they could thrive, and imports sank to around 15% of the U.S. market in January.
But this week, amid severe shortages caused by the coronavirus pandemic, that spot price is pushing $1,500 a ton, making it cheaper in some cases to import steel and pay the 25% tariff, some steel users say.
Steel imports jumped 20.7% in March over February to 2.3 million tons, even though the year-to-date total was up just 3.1%, according to American Iron and Steel Institute data.
"I think you just have a perfect storm going on in terms of capacity constraints with demand surging. And the mills, rightly or wrongly, are managing it with price," said Todd Leebow, president of Majestic Steel USA, a Cleveland-based steel service center firm that specializes in supplying American-made steel.
"If we want to go buy spot (steel) from the mills right now, we can't get it," Leebow said, adding that supplies are tight worldwide, with long waits for imports.
The industry had shut down as much as 30% of its capacity during the coronavirus pandemic, and it has been slow to reopen. Several blast furnaces shut last year remain idled, and newly built electric-arc furnace mills prompted by the tariffs have been slow to ramp up production.
The industry has also consolidated, increasing its pricing power, with iron ore miner Cleveland-Cliffs Inc CLF.N last year acquiring both AK Steel and the U.S. assets of Arcelor Mittal MT.LU, while U.S. Steel X.N bought Arkansas mini-mill producer Big River Steel. Both are still idling older plants.
Nucor Corp NUE.N, the largest U.S. steelmaker, last week reported the highest-ever first quarter profit in its history, citing strong demand and higher prices.
JOBS MIRAGE
The Trump administration had promised a rust belt jobs revival when it imposed the tariffs in 2018. But after rising in 2019 followed by COVID-19 shutdowns, iron and steel mill employment in February was down about 2,300 jobs from pre-tariff levels, according to Labor Department data.
Kevin Dempsey, president of AISI, which represents major steelmakers, argues that the consolidation is a sign of health and increased investment for the industry, and the current supply shortage is a temporary bottleneck being experienced by many other industries, including semiconductors.
He cited a March study by the Economic Policy Institute showing the industry has committed to $15.7 billion in new or upgraded American steel facilities since the tariffs were implemented in 2018, which will add 3,200 direct new jobs.
With the Biden administration now pushing a massive $2 trillion infrastructure plan, the demand for steel is expected to grow, and some doubt that demand can be met if the tariffs remain in place.
"It's going to become largely unaffordable to build all of these new infrastructure assets or upgrade infrastructure assets if the price of steel is $1,300 a ton," said Kip Eideberg, who heads government and industry relations at the Association of Equipment Manufacturers, which represents over 1,000 companies including Caterpillar Inc CAT.N and Deere & Co DE.N.
Leebow, the Cleveland steel distributor, said he supported the Section 232 tariffs, but it was now time to modify them.
"I would remove the tariffs from Europe and put a quota system in place for Europe and keep the tariffs in place on countries that are bad actors," he said.
Impact of Tariffs on Steel Employment https://tmsnrt.rs/3d8IF3d
U.S. manufacturers grapple with steel shortages, soaring prices
(Reporting by David Lawder in Washington and Rajesh Kumar Singh in Chicago; Additional reporting by Phil Blenkinsop in Brussels; Editing by Steve Orlofsky)
((David.Lawder@tr.com; +1 202 354 5854; Reuters Messaging: david.lawder.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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His sentiments were echoed by U.S. Trade Representative Katherine Tai on Wednesday, and his Commerce secretary, Gina Raimondo, said earlier this month that the tariffs "helped save American jobs in steel and aluminum industries." The EU has never accepted the premise of the 25% steel and 10% aluminum tariffs imposed by former president Donald Trump in March 2018, duties based on a Cold War-era trade law to protect domestic industries deemed critical to national security. Critics from the EU to metals-consuming industries and the U.S. Chamber of Commerce argued that the metals were commodities available in ample quantity to meet U.S. defense needs and that European producers in countries that are trusted U.S. allies present no threat to U.S. security.
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By David Lawder and Rajesh Kumar Singh WASHINGTON/CHICAGO, April 29 (Reuters) - The Biden administration faces a major dilemma in its dispute with the European Union over Trump-era steel and aluminum tariffs: back down to avoid acute pain for Harley-Davidson Inc and whiskey distillers or stick with the duties even though they are now exacerbating acute shortages for U.S. manufacturers. President Joe Biden has pledged that he will maintain the tariff protections for the steel and aluminum industries until the problem of global excess production capacity - largely centered in China - can be addressed. Impact of Tariffs on Steel Employment https://tmsnrt.rs/3d8IF3d U.S. manufacturers grapple with steel shortages, soaring prices (Reporting by David Lawder in Washington and Rajesh Kumar Singh in Chicago; Additional reporting by Phil Blenkinsop in Brussels; Editing by Steve Orlofsky) ((David.Lawder@tr.com; +1 202 354 5854; Reuters Messaging: david.lawder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But this week, amid severe shortages caused by the coronavirus pandemic, that spot price is pushing $1,500 a ton, making it cheaper in some cases to import steel and pay the 25% tariff, some steel users say. By David Lawder and Rajesh Kumar Singh WASHINGTON/CHICAGO, April 29 (Reuters) - The Biden administration faces a major dilemma in its dispute with the European Union over Trump-era steel and aluminum tariffs: back down to avoid acute pain for Harley-Davidson Inc and whiskey distillers or stick with the duties even though they are now exacerbating acute shortages for U.S. manufacturers. The EU has threatened to double the tariffs on Harley-Davidson HOG.N motorcycles, American-made whiskey and power boats to 50% on June 1, cutting off any residual hope of exports to the continent.
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U.S. Trade Representative Tai told senators that she is working with EU counterparts to find a solution, but they must address the issue of excess capacity in China, which produces half the world's steel. The EU has never accepted the premise of the 25% steel and 10% aluminum tariffs imposed by former president Donald Trump in March 2018, duties based on a Cold War-era trade law to protect domestic industries deemed critical to national security. By David Lawder and Rajesh Kumar Singh WASHINGTON/CHICAGO, April 29 (Reuters) - The Biden administration faces a major dilemma in its dispute with the European Union over Trump-era steel and aluminum tariffs: back down to avoid acute pain for Harley-Davidson Inc and whiskey distillers or stick with the duties even though they are now exacerbating acute shortages for U.S. manufacturers.
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37f2ac94-2b18-4005-8e49-42093f93aab5
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721559.0
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2021-04-19 00:00:00 UTC
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FOCUS-'Our factories are hungry' - U.S. farm machinery maker faces dearth of components
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DE
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https://www.nasdaq.com/articles/focus-our-factories-are-hungry-u.s.-farm-machinery-maker-faces-dearth-of-components-2021
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nan
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By Rajesh Kumar Singh
CHICAGO, April 19 (Reuters) - Farmers flush with cash after a run-up in grain prices are clamoring for farm machinery maker AGCO Corp AGCO.N to get them new equipment in time for this year's harvest.
This is a boom time for the Georgia-based company after years of depressed demand. But AGCO is scrambling to keep up because disruptions all along its supply chain have left it short of the steel, plastics, microchips and tires it needs to make tractors and combines. Some of its suppliers in the United States and Europe are facing a labor crunch because of the coronavirus pandemic.
The supply logjam has hit AGCO, one of the world's largest farm machinery makers, just as planting season gets under way in the Northern Hemisphere. The Southern Hemisphere is in the middle of its harvesting season. AGCO has had to tell customers they may have to wait as long as six months for their machinery - effectively too late for the harvest in the United States, a major producer of corn and soybeans.
"Our factories are hungry right now," said Greg Toornman, who oversees AGCO's global supply chain management.
The farm equipment maker is not alone. Other farm equipment makers affected by the supply logjam include Deere & Co DE.N, and CNH Industrial CNHI.MI.
As the U.S. economy roars back from the pandemic-induced recession, it is generating unusually high orders for parts and materials at a time when inventories are at the lowest level in decades and the pandemic and weather-related disruptions have left global supply chains in a mess.
The Institute for Supply Management's index for new orders in March hit its highest level since January 2004, while the index for order backlogs, one of the best U.S. metrics for how quickly manufacturers are meeting demand, was at the highest level in 28 years.
See graphic on new orders: https://tmsnrt.rs/3sjSuB5
The delays and lack of needed materials are holding back the pace of economic recovery, translating into inflationary pressure and threatening to weigh on corporate profits. 3M Co MMM.N, which makes industrial adhesives, recently warned that elevated manufacturing and logistics costs could cut its profit this year by as much as 20 cents per share.
For farm machinery companies like AGCO, whose business is highly seasonal, sourcing problems could mean lost sales.
TIGHT INVENTORIES
Lonn Schlueter, an Iowa-based dealer who sells rival equipment maker CNH Industrial's New Holland tractors and Kinze's planters, told Reuters he is scouting for used tractors as the orders for new ones are not expected to be delivered before the end of the year.
"The big problem is getting inventory, getting the product to sell," Schlueter said. "We are told that the manufacturing is really delayed because they can't get raw products to finish up the machines."
See graphic on customers' inventories: https://tmsnrt.rs/3aeQyUq
Tractor supply in North America is the tightest in 18 years, according to Jefferies Equity Research. A recent Morgan Stanley survey of U.S. farm equipment dealers noted concerns about the potential impact of a lack of inventory on sales.
While dealers of all major farm equipment brands complained of tight inventories, the survey found that the situation was worse for those selling Deere's equipment.
The Illinois-based company declined to comment. However, in February, Deere told investors it was facing growing constraints for some electronic components.
CREATIVE SOLUTIONS
AGCO is prioritizing orders that dealers have received from customers over those placed to replenish stocks at showrooms. Chief Executive Eric Hansotia said he is talking to the company's top suppliers and using "creative solutions" to get a handle on the supply situation.
The company is relying more on air freight to move components and is buying machines, particularly in South America and Europe, to help suppliers ramp up. It has added more shifts on weekends and moved production into its own factories in cases where suppliers are out of capacity.
AGCO is also storing excess raw material in its warehouses and has authorized its suppliers to procure up to 30 weeks of materials that are in short supply.
It is trying to leverage its network of global suppliers to address the shortfalls.
See graphic on order backlog: https://tmsnrt.rs/3gcTMeU
For example, capacity constraints and dwindling rubber supplies in part due to strong Chinese demand are causing tire shortages, particularly in Brazil. To get around the problem, AGCO is shipping tires to its factories in the South American country from suppliers in Asia and Europe - a departure from the company's standard policy of buying them locally.
In the United States, it has shifted production out of some locations where it has become difficult to increase headcount because of COVID-19 restrictions.
"It's our number one challenge right now by far - managing all the logistics and the volatility in the system," Hansotia told Reuters.
'I HAVE NEVER SEEN ANYTHING LIKE THIS'
It is a sharp contrast from last spring when machinery companies including AGCO were cutting production, anticipating a prolonged downturn in equipment demand. Back then, no one expected "a hot market like this," Hansotia said.
The shortages have not yet interrupted AGCO's production, but its procurement team is working feverishly to secure alternative supplies of semiconductor chips, steel and plastics.
While farm equipment makers require far fewer chips than automakers, the drive to make their machines smarter has made them susceptible to chip supply shocks.
Toornman said the number of chips going into AGCO's tractors has gone up "substantially" in the past decade. As a result, chips are the first item on the agenda at its weekly meetings on supply chains, he said.
Meanwhile, a slow ramp-up in steel production following the cuts last year has made it difficult to procure the metal on time and at a competitive price. Similarly, mass blackouts in Texas following a historic February storm has sparked a global plastics shortage.
Toornman said the wait times for both the raw materials have doubled. He expects steel shortages to persist through the year but has little clarity on when the supplies of plastics would normalize.
"I have never seen anything like this," Toornman said. "It is ... like a perfect storm."
AGCO eyes higher profit as farm boom sparks equipment demand
U.S. manufacturers grapple with steel shortages, soaring prices
Graphic on new ordershttps://tmsnrt.rs/3sjSuB5
Graphic on customers' inventorieshttps://tmsnrt.rs/3aeQyUq
Graphic on order backloghttps://tmsnrt.rs/3gcTMeU
(Reporting by Rajesh Kumar Singh in Chicago Editing by Caroline Stauffer and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As the U.S. economy roars back from the pandemic-induced recession, it is generating unusually high orders for parts and materials at a time when inventories are at the lowest level in decades and the pandemic and weather-related disruptions have left global supply chains in a mess. See graphic on new orders: https://tmsnrt.rs/3sjSuB5 The delays and lack of needed materials are holding back the pace of economic recovery, translating into inflationary pressure and threatening to weigh on corporate profits. This is a boom time for the Georgia-based company after years of depressed demand.
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Other farm equipment makers affected by the supply logjam include Deere & Co DE.N, and CNH Industrial CNHI.MI. Lonn Schlueter, an Iowa-based dealer who sells rival equipment maker CNH Industrial's New Holland tractors and Kinze's planters, told Reuters he is scouting for used tractors as the orders for new ones are not expected to be delivered before the end of the year. AGCO eyes higher profit as farm boom sparks equipment demand U.S. manufacturers grapple with steel shortages, soaring prices Graphic on new ordershttps://tmsnrt.rs/3sjSuB5 Graphic on customers' inventorieshttps://tmsnrt.rs/3aeQyUq Graphic on order backloghttps://tmsnrt.rs/3gcTMeU (Reporting by Rajesh Kumar Singh in Chicago Editing by Caroline Stauffer and Matthew Lewis) ((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lonn Schlueter, an Iowa-based dealer who sells rival equipment maker CNH Industrial's New Holland tractors and Kinze's planters, told Reuters he is scouting for used tractors as the orders for new ones are not expected to be delivered before the end of the year. AGCO eyes higher profit as farm boom sparks equipment demand U.S. manufacturers grapple with steel shortages, soaring prices Graphic on new ordershttps://tmsnrt.rs/3sjSuB5 Graphic on customers' inventorieshttps://tmsnrt.rs/3aeQyUq Graphic on order backloghttps://tmsnrt.rs/3gcTMeU (Reporting by Rajesh Kumar Singh in Chicago Editing by Caroline Stauffer and Matthew Lewis) ((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This is a boom time for the Georgia-based company after years of depressed demand.
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Some of its suppliers in the United States and Europe are facing a labor crunch because of the coronavirus pandemic. This is a boom time for the Georgia-based company after years of depressed demand. The supply logjam has hit AGCO, one of the world's largest farm machinery makers, just as planting season gets under way in the Northern Hemisphere.
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8e2ce749-95d1-41bd-bee4-8555f95027da
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721560.0
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2021-04-16 00:00:00 UTC
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We Think Deere (NYSE:DE) Can Stay On Top Of Its Debt
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DE
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https://www.nasdaq.com/articles/we-think-deere-nyse%3Ade-can-stay-on-top-of-its-debt-2021-04-16
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nan
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David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that Deere & Company (NYSE:DE) does use debt in its business. But should shareholders be worried about its use of debt?
When Is Debt A Problem?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
How Much Debt Does Deere Carry?
The chart below, which you can click on for greater detail, shows that Deere had US$46.0b in debt in January 2021; about the same as the year before. However, it does have US$6.65b in cash offsetting this, leading to net debt of about US$39.4b.
NYSE:DE Debt to Equity History April 16th 2021
A Look At Deere's Liabilities
Zooming in on the latest balance sheet data, we can see that Deere had liabilities of US$22.3b due within 12 months and liabilities of US$39.1b due beyond that. On the other hand, it had cash of US$6.65b and US$6.33b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$48.4b.
Deere has a very large market capitalization of US$119.8b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
Strangely Deere has a sky high EBITDA ratio of 6.1, implying high debt, but a strong interest coverage of 18.5. So either it has access to very cheap long term debt or that interest expense is going to grow! We note that Deere grew its EBIT by 28% in the last year, and that should make it easier to pay down debt, going forward. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Deere can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. In the last three years, Deere's free cash flow amounted to 37% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.
Our View
Deere's net debt to EBITDA was a real negative on this analysis, although the other factors we considered were considerably better. There's no doubt that its ability to to cover its interest expense with its EBIT is pretty flash. Considering this range of data points, we think Deere is in a good position to manage its debt levels. Having said that, the load is sufficiently heavy that we would recommend any shareholders keep a close eye on it. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. For example Deere has 2 warning signs (and 1 which can't be ignored) we think you should know about.
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash.
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We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). In the last three years, Deere's free cash flow amounted to 37% of its EBIT, less than we'd expect. Our View Deere's net debt to EBITDA was a real negative on this analysis, although the other factors we considered were considerably better.
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The first step when considering a company's debt levels is to consider its cash and debt together. NYSE:DE Debt to Equity History April 16th 2021 A Look At Deere's Liabilities Zooming in on the latest balance sheet data, we can see that Deere had liabilities of US$22.3b due within 12 months and liabilities of US$39.1b due beyond that. We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover).
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We can see that Deere & Company (NYSE:DE) does use debt in its business. Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. When all is said and done, sometimes its easier to focus on companies that don't even need debt.
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2021-04-14 00:00:00 UTC
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Blue-Collar Technology
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https://www.nasdaq.com/articles/blue-collar-technology-2021-04-14
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When you think "tech companies," you probably don't think John Deere (NYSE: DE) or Caterpillar (NYSE: CAT), but these two businesses have been quietly building meaningful technology businesses. In this episode of Industry Focus: Energy, host Nick Sciple is joined by Motley Fool contributor Luis Sanchez to break down what both of those heavy machinery companies are doing in technology, as well as take a high-level view of what it means to be a tech company in 2021.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 1, 2021.
Nick Sciple: Welcome to Industry Focus, I'm Nick Sciple. Today on the energy and industrials podcast, we're talking about technology. Of course, we aren't talking about the kind of technology that helps you sell ads online or play the latest video game. No, we're talking about the technology that helps blue-collar folks like construction workers and farmers do their work more efficiently. That's the kind of technology that companies like Caterpillar and John Deere are delivering to their customers today. Today, our Motley Fool contributor Luis Sanchez joins me to break down these two industrial giants and talk about why the market may not be giving them enough credit for their tech offerings. Luis, thanks for joining me on the podcast once again.
Luis Sanchez: Thanks for having me.
Sciple: Always great to have you on the podcast Luis. We're throwing a curveball, we're talking about tech on the energy show, and I think one of the big tech words you'll hear all the time is meta. There's a metaverse, there's a metagame, all those sorts of things. Maybe let's talk about the metaworld of investing. We're talking today about Caterpillar and John Deere. These are companies we think of as like country music type of companies, hardhat type companies, blue-collar type companies. Are they what do you think of it as a tech company or what is a tech company today in 2021?
Sanchez: That's actually one of my pet peeves when people talk about "this company is a tech company, and this company is an old-school legacy company." The line, over time, has not just blurred, it's disappeared in a lot of ways. In 2021, basically every company, if they're not tech-enabled, they're not doing too well. All these companies are using tech. They may not be pure-play tech businesses in the classical sense, but they're using a lot of tech, as we'll talk about.
Sciple: Yeah. If you look at the metagame of business, the dominant strategy today involves using some type of tech. That's part of the strategy you have to play. One of the examples, I think it's an interesting framework to think about of a transition from a company that's maybe traditionally hardware-focused to rolling out more technology offerings: Apple's always been a technology company, but this move into services and software, I think it's an interesting example that maybe we can use that as a framework to talk about what's going on with these two businesses. With that as a background, Luis, can you tell us about the Apple example, and how that maybe applies to what we're going to talk about today.
Sanchez: Sure. It's an interesting comparison to make because historically, Apple has always been primarily a hardware company. They sell laptop computers and they were selling iPhones, which they're primarily making money at the point at which you buy the device. Over the last five years or so, the services side of Apple's businesses has really taken off, and it's become a very large business in and of itself. So they are still selling this hardware, but they've been able to attach this really high-margin service revenue on top of that. Just to throw out a stat, last year, Apple generated $54 billion in services revenue. Which shows you this company that's historically been perceived to be pretty much just a hardware company is a massive service/software company too.
Sciple: Absolutely. That opportunity you unlock with your installed base of devices across the world, across all your users. Well, these industrial companies have an installed base of devices just like Apple does, but there are some differences when you think about the type of customer that Apple has and the type of customer that's maybe using some of these pieces of industrial equipment. What do you think are the biggest differences, maybe between Apple's business and then the type of technology that these companies are trying to sell to their customers, and maybe how they go about selling it.
Sanchez: The distinction is Apple iPhones, they're really a consumer product. Consumer products are marketed in a certain way that appeals to people. That could just mean like selling a flashy feature or selling a look. People want to look cool, and I think a lot of people have talked about how Apple devices are still well designed, they're almost like a fashion statement. Versus like a tractor -- certainly, a lot of people do care about what their tractor looks like, I can assure you that. But they probably care most about what kind of load can they haul on the tractor, and really what the ROI is going to be on using a piece of equipment. I think that's the distinction between how a business analyses an equipment purchase versus when a consumer thinks about which phone they want to buy.
Sciple: One other distinction -- we can talk about this as we move into Caterpillar -- is just the rate of adoption. I think the regular consumer, may be quicker to it to pick up the new iPhone or the new piece of technology than maybe some of these older industries that have been around for a long time. We've been mining and farming for 100-plus years. Some folks in these industries maybe have some ways of doing things that they're less willing to change, or really need to see dollars-and-cents about why we're going to make this changeover.
Let's get into Caterpillar. We've been using this Apple analogy, I talked about the installed base of devices. When you think about Caterpillar, what is this installed base, what is this traditional business that the company has been at?
Sanchez: Caterpillar is a global heavy-equipment conglomerate. They serve all sorts of different end markets. They're building mining equipment. They're doing a lot of construction equipment -- excavators and backhoes. They are also servicing the energy market with pumps, and they are servicing the transportation market. If you need to do a big, heavy project, whether it's build a building or move a bunch of rocks or move a bunch of fluid, Caterpillar is probably going to be involved at some point in that process.
Sciple: Exactly. If you drive into a construction site or a mine or anything like that, there's going to be a Caterpillar piece of equipment out there. When you talk about Caterpillar's business historically, the hardware, where has Caterpillar made its money?
Sanchez: I think the way to think about it is like Caterpillar is an OEM. They sell the equipment and they distribute it through dealers. I think the best analogy is to compare it to the automotive market, where you have Ford and GM that are making the equipment, and then they're distributing through dealers who they sell to at a wholesale price, and who mark it up. The transformation that's really happened over the last 10 years or so is that now, this equipment is coming pre-installed with a software and pre-installed with a bunch of sensors. The primary way that Caterpillar is making their money off of this is they're putting more stuff into the equipment, so they're charging more money for the equipment. But there also is an opportunity down the road, and in some cases today, where they're actually charging extra for some of this technology.
Sciple: Right. I think one of the things you talked about with me, Luis, is how servicing is really an important part of Caterpillar's business. There is a certain amount of recurring revenue with these devices. Now, as you attach some of this technology, you get maybe other forms of recurring revenue as well as it can maybe help the servicing side of their business as well.
Sanchez: For sure. The mind-blowing statistic that someone told me was, over the life of the average Caterpillar machine -- and there's a diversity of different machines -- but over the life of a machine, a multiple of somewhere in the order of four or five times as much money is spent on parts and servicing for that equipment than is spent on the original price. That illustrates the aftermarket revenue opportunities as they refer to it. To contextualize that even more, these machines aren't cheap. Some of these pieces of equipment could go for seven-figure dollar amounts. If you think about a mining company that might be spending $1 million on a large truck that can haul this material, and then think about the millions and millions of dollars they spend over a 10 to 20 year life on servicing that equipment, you could really start to understand like, "OK, this business model is really interesting, and it's not just about a one-time transaction."
Sciple: Absolutely. I think that illustrates another one of those points we talked about earlier about maybe the difference between Apple's attachment of some of these technology services versus Caterpillar. You're getting a new iPhone every three years, you're not turning over your Caterpillar piece of equipment except for every five, 10 years, depending maybe if you buy used, maybe shorter than that but when you're talking about this new technology that the top-of-the-line equipment with the latest technology to Caterpillar is implementing, what are those offerings the company has and why is this something that's really going to be meaningful for customers and for the business?
Sanchez: For sure. They have various different technologies that they're using, and they categorize it into three buckets. The first bucket is what they call telematics, the second bucket is the automation, and the last bucket is e-commerce. To start with telematics, it's a fancy word but essentially, what it means is you're putting a bunch of sensors into the machine. You're putting sensors that can give you data about the health of the machine, which parts of the machine need to be serviced, where the machine is (so, GPS). You're really turning that equipment into something that generates data that can be analyzed. Obviously, you can directly translate that into software, because once you have data, then you can do something with the data. What the goal is here is twofold. The first part of it is all about efficiency, so it's helping customers figure out how to better utilize their equipment. The customers, they could see the analytics and they could like, "OK, these machines are operating at 90% utilization. I currently have a fleet of 100 trucks, maybe I only need 95 if I want to be fully utilizing." It helps customers make decisions about how to optimize.
Then the other side of it is, this is where the data could actually be predictive and it could actually help the customer maybe know in advance, "This equipment, it might need a new tire in another couple of months, maybe we should get on that." Or, "There's a service warning here, so maybe we should get one of our dealers to come over and inspect this." At the end of the day, why this is really important is because when you're talking about these large-scale projects like in the oil sands, projects in Canada where there's hundreds of millions of dollars invested to a project, the ability to optimize that project by 5% or 10% is worth a lot.
Sciple: Right. When you're trying to avoid downtime in your production, the analogy I think about is you hear this a lot in tech, there will be these SaaS applications. They're like, "If they save engineers 15 minutes a day, then it makes up for it because of how much you're paying engineers." I think it's the same type of analogy here in this business. If you're avoiding your fundamentally critical excavator from having downtime and you can predict that or stay one step ahead of that, then those costs that you're avoiding by making that investment are worth paying X dollars to Caterpillar for that piece of technology. The savings that they can justify to the customer by avoiding those issues makes it easy for Caterpillar to say, "Hey, you guys, give us X amount of dollars for our piece of technology." It makes that ROI calculation really easy to sell for the company, or easier to sell.
Sanchez: Yeah, totally. That definitely gets back into that calculation of, well, if this equipment is going to help me operate more efficiently, then I can more easily justify paying this six-figure or seven-figure price tag for this equipment. This other bucket of automation that they refer to is also really, really fascinating because we've talked about self-driving cars in the automotive space. It sounds like Caterpillar is living in the future because they already have autonomous equipment that's running at construction sites. Really, primarily mining sites is where you're seeing a lot of fully autonomous vehicles. They also have vehicles that are controlled remotely from another location, and there's a ton of interesting applications of this. The first is really safety. We've all heard about these mining accidents, whether they be in a copper mine or whether they be in Thailand with the cave incident. So the ability to limit the number of people that actually have to go into a mine, or that have to be at this site where maybe the foundation or the particles in the air aren't as safe as they would be in other places, that's great, that's just awesome.
It's really cool to see. If you go on Caterpillar's website or if you just Google, or go on YouTube and look at the automation tools that Caterpillar has, you can see all these really cool vehicles that are operated without a human sitting in the cab or really any human involvement. They have people basically in these control centers who may be monitoring five or six different pieces of autonomous vehicles at the same time. That brings you to the other point, which is this is super-efficient, and this is another way to save money, not only because you can afford to operate with fewer people, but you could run these machines 24/7. Unlike a miner who is going to get tired after spending a day in the mine, as long as you take care of the machine, the machine isn't going to get tired.
Sciple: Right. I think this is one of those cases where somebody has to take care of that machine. So the job moves from somebody being down in the mine working this really taxing job that not a lot of folks would sign up for if they had other alternatives. So now, folks are maybe taking care of this equipment and all those sorts of things. Also, from the perspective of the company, any time you have accidents or those sorts of things, it is very costly for the business. [...]
Let's talk about this. Maybe the last thing I think is interesting on automation, you mentioned how we do have automation in these mining applications, really being the first place we're seeing it in the market. One of the things that I think folks need to think about with automation is, part of the complexity of the problem is just all the different variables involved in the task of driving or just the different things that you can encounter, particularly when you're doing it at high speed. The higher speed you're at, the more quickly these computers have to make calculations.
When you think about mining -- or we're going to talk about later in agriculture -- you're in a much more controlled environment with fewer variables. A mine is a very controlled space with very controlled routes. Also, secondly, you're going much, much slower. The calculations you need to make and your margin of error is much broader in these environments. You can just stop the vehicle in the middle of your construction site and it doesn't bother anything. You can't just stop your vehicle in the middle of the road when your car gets confused. Both because of the safety aspect, but also just the controlled aspect of the environment makes this a place where automation can come to market sooner than maybe these more complex environments with crazy people all over the road.
Sanchez: Yeah. If you think about it, there's a few other ways that it's easier to make these things automated. The first is that you could just stick ugly sensors wherever you want because nobody cares if there's a really ugly sensor on the hood of the mining vehicle. The other thing is you could put sensors in the field that help the vehicle traverse. You could set it up, like you said, it's such a controlled environment. It just makes it much easier, much more realistic. It's a totally different problem, automation and mining. In automation, these industrial fields are a totally different problem than what we see on highways and city streets.
Sciple: Yeah. It's interesting, we kind of have these two things happening at the same time. Really, some of the innovations that we have in these industrial settings are going to be useful in other places. It's interesting -- I keep using "interesting," -- but if you have an interest in autonomy, then this is an area to watch as far as the places where we're going to see it on the market first. Now, the last bucket you mentioned, Luis, is e-commerce. How does that plug into Caterpillar's strategy when it comes to technology?
Sanchez: As it implies, e-commerce is about selling. This is giving the dealers more tools to market products, more ways to connect customers with dealers, whether that's an app or a website. There's a really good Cat app where not only can you browse the catalog, but you can also do things, you could also request certain servicing features, and this is where it all comes together, because you're connecting the machines with all these sensors and the app has all the information about your machine, it can make it easier to know like, "OK, well, which part do I need exactly?" or "Which parts are compatible with my machine?"
The other side of this is cool too, which is the fact that they're collecting this data on the health of these machines -- it helps the dealers know what inventory they need to carry. If you talk to a Cat dealer, then they'll tell you like, "Well, with all these telematics and GPS, we know what equipment is in the field. We know what's actually being operated, and we know the health of that equipment." If all of a sudden, all these machines break at the same time, they hopefully are going to have a little bit of a warning ahead of that, and as you can imagine, like the supply chain for this really complicated equipment is not straightforward. This actually helps the companies better, more-quickly service customers, but also to run with lower inventory, which helps Caterpillar become a more profitable company.
The last thing too, is that because the customers are more engaged with the dealers. This whole aftermarket parts market of the heavy equipment industry -- there are private-label parts makers. Part of this whole push is that Caterpillar wants to maintain or to have more market share in this aftermarket business. By having more connection between the dealer and the customer, they have a better chance of securing that aftermarket parts of business.
Sciple: Which goes back into that study you mentioned earlier about how the servicing part of the business is even larger than the equipment sales, which ties into maybe my last question on Caterpillar before we move on to John Deere. When you think about the size of this tech opportunity and where it fits into Caterpillar's strategy, how would you describe that to folks?
Sanchez: Yes, I think it's twofold, maybe even threefold. The first is that offering more value to the customer allows the company to justify higher prices for their equipment. They can increase the prices on the equipment on average like 5% per year or have a nice healthy inflation rate because they're delivering more value to the customer. That's one way that it helps Caterpillar benefit. The other benefit is what we were just saying about the parts market share. A couple of years ago, Caterpillar had this Investor Day where they gave us a target, and they said, we currently do about $14 billion a year in parts revenue, but in 10 years, we want to double that to $28 billion. A lot of that is really just from getting more of that pie. That's a huge revenue opportunity, and it's also higher-margin revenue, right? Selling parts and selling services is higher-margin than selling the OEM equipment. And I guess the last thing I would say about this is by adding more technology into the equipment, it just gives Caterpillar another opportunity to differentiate versus the other manufacturers that maybe haven't made as much of an investment. I think it's brand-building and brand-enhancing.
Sciple: Again, it sounds like the Apple story -- brand and average selling prices is a big part of that story as well. We will come back to Caterpillar and maybe [talk] some on valuation after we talk about John Deere. Let's move on to John Deere now. How would you compare and contrast John Deere's tech strategy to Caterpillar's approach that we just outlined?
Sanchez: Well, the biggest difference is like John Deere does make some construction equipment like little excavators and things like that, but what John Deere is known for is selling to farmers, and selling to the agricultural market. There is a really big difference in that end customer -- the farmer versus selling to a construction company or a mining company -- and that has a lot to do with the sophistication of the buyer and the scale of the buyer. A construction company or a mining company, is usually like this huge multibillion-dollar operation. Very sophisticated. They have people doing all the math to figure out how much more efficient, and how much money this equipment is going to cost them. Your average farmer is a 57 year old entrepreneur, who owns like a couple of 100 acres of land and has been probably doing it in their whole life in a multi-generational setup. They're not the demographic that's the technology early adopters. Introducing technology to a farmer is a little bit different than introducing technology to your construction company.
Sciple: We've talked about how farmers are maybe a little bit different from the type of customer you are getting in construction and mining the Caterpillar deals with. When we look at the technology that John Deere is rolling out and trying to market to their customers, what type of technology offerings does John Deere have today?
Sanchez: John Deere, they market their technology effort -- they use this phrase called precision agriculture. This is like an all-encompassing phrase, which basically means a smart farm. It's a little bit different, but may kind of break down these ideas, precision agriculture also into a couple of different categories. One category is guidance. Another category is telematics. And then lastly, I would just refer to the last thing is like software. There's some similarities here between the way that they categorize it with Caterpillar. Guidance is a little bit different though, from Caterpillar in the sense that Caterpillar is already automating a lot of vehicles, but farm equipment is not yet fully automated. Guidance is more like the Tesla Autopilot version of automation, where they're helping farmers with auto-steering and routing. John Deere, one of their most popular software offerings is called AutoTrak, which essentially lines up your machine, whether it's a combine or a tractor, to the most optimal way to pass through the field. Whether you're tilling the soil or harvesting grain or whatever you're doing. Essentially, it makes the process of sitting in the cab a little bit more passive, so you don't have to like manually steer the cab. It helps for a few reasons like first, it couldn't. What John Deere says, it's like using a future like AutoTrak can keep the person operating the machine like operating it for longer. They'll not tire out as quickly. The second thing is efficiency. The software will figure out the most efficient routes. Again, we could save the farmer maybe like 20% of their time, which obviously is meaningful when you're doing this for like 12 hours a day.
Sciple: Yeah. I'm thinking about mowing your grass. It makes sure that we make the most efficient passes. Also you can get the lawnmower that has the self propulsion. You could still push the lawnmower on your own, but if you have the one with the self propulsion, of course you're going to get the one, that helps you push it. Same type of thing here in the tractor business, I think one of the things we talked about before, Luis, is this a product that over time folks become more accustomed to and more dependent on, and more willing to pay up for.
Sanchez: Yeah. This is a really interesting case study, when you think about adoption of tech. AutoTrak is almost 20 years old, I believe. I think it was introduced in the mid 2000s and at the time, no one really wanted this. They didn't know why they needed it. Like the adoption rate when they launched, it was like 5% or 10%. I think John Deere is literally giving it away, so that people would become more accustomed to it. Fast-forward 10, 15 years and almost everyone who is operating one of these machines is using AutoTrak. In fact, people will not buy a used piece of John Deere equipment unless it has AutoTrak working. It's a huge deal when you start looking at the market for these machines. Why is that? I guess, given enough time even these like older demographics will learn how technology can benefit them. Maybe it just takes 10 or 20 years. And I'm sure John Deere has made the AutoTrak feature easier to use and much more useful as well.
Sciple: Yeah, I think it's kind of human nature, or like automatic cars. I'm sure for a while there were people like, "I'm going to stick with the standard transmission." Now, you have to try really hard to find one, because convenience sells. At the end of the day, people are lazy, for better or worse. If you can find a way to let people be lazy and still get the job done, sooner or later they will pay up for it.
You talked about the telematics side of John Deere's offering as well. That is similar to what Caterpillar's offering. Does it fit differently into John Deere's strategy though, relative to what Caterpillar's trying to do?
Sanchez: Telematics is all about putting sensors into the machine. So it's like making them smarter. Same thing as Caterpillar, they're collecting data on the health of machines, figuring out what parts they need to be replaced. But John Deere is actually going even further than Caterpillar in some of the applications of this. A couple of really cool things that I was learning about was, some of the sensors on these tractors and harvesters are collecting soil samples while the machine is passing through the field. The machine is determining what treatment needs to be made to the soil, or maybe some parts of the field may need to be treated a little bit differently. Maybe you want to spray one pesticide in a certain part of the field, and you want to put a fertilizer in another part of the field. It actually enables you to do things that you just aren't able to do without this kind of more advanced technology.
The other thing, too, is the level of precision that you could get with some of these more advanced machines in terms of getting the seedbed placed to the right position, to like the millimeter, it's crazy. It's crazy how much better they're able to optimize the process of farming when you start adding really sophisticated software. Why do you need to get the seedbed even more precise? Well, there's a lot of factors that, like an old machine that built was like 50 years ago, can't figure out. For example, if there's a hill, right, or if there's rocks, maybe you don't want to place some of the seedbed on a rock. Or maybe you want to put it on a certain part of the hill where it's going to get better conditions. It can calculate things on the fly that can actually be really meaningful to someone who is trying to get the most out of their land.
Sciple: Always adding efficiency I think is more important than ever because the world population keeps growing and yet we're not making new farmland. The story of the past 200 years has been able to increase efficiency, and then hopefully, some of this technology can allow us to continue doing that. But when you talk about an industry that's been around for hundreds of years and talked about how farmers can skew less tech-savvy, there is a question of, some customers asking, do I really need this or do customers really want this? Is that an issue that John Deere is dealing with among its customers?
Sanchez: For sure. Because it comes down to like cost, to a degree rate, because people see, "Do I really want to pay 15% more for the latest tractor that has some new optimized software for how to plan to better seed better? I've been farming for 50 years, I think I know what I'm doing." There's a resistance to change, and you're not only telling people to change, but you're telling people to pay up to change. There's definitely some friction there.
There's a little bit of controversy too, with some of the things that John Deere specifically is doing. Last year, there was a scandal called the "right to repair" issue, where John Deere was essentially locking out anyone who wasn't an official John Deere dealer or certified maintenance person from repairing their vehicle. You're talking about preventing people who own their own equipment from making their own repairs because they don't have access to the console of their machine. There's a couple of things there. You're asking people who have done something a certain way for many years to change, you're asking them to pay more for this stuff, and they're not even sure how to use it. And then you're also throwing in some limitations to what people can do with their machines. There's certainly been some push and pull with the way John Deere has rolled out some of this technology.
Sciple: Yeah. I think the interesting thing, we've talked about this iPhone analogy a little bit throughout the story. The right to repair story, I think has a great analogy with the iPhone, because you have folks literally trying to jailbreak their John Deere tractors so they could do repairs to this equipment. These same types of conflicts or jailbreak situations that we see in consumer products, you're seeing the same type of stuff happen in these industrial products.
Any final thoughts there on the customer issue and the extent to which that may affect the rollout of John Deere's attack going forward?
Sanchez: Yeah. You could do some research online and see all these stories of people complaining that they can't repair their own tractor but there is another side of that story, and the other side of the story, is that there is regulatory reasons why you don't necessarily want people to tamper with some of the software or some of the hardware in these machines. I think there's two sides to that story. Just to summarize it really quickly: There are things that you could do if you had access to this equipment such that you can add more horsepower to the machines and make them less compliant to emission standards and other kind of regulations that would actually make the machines more profitable to the farmer, but make them not so street legal. I think you got to be careful with some of the narratives that you read out there, and really try to understand both sides of it.
I do think that if we are bringing this all the way back to the Apple example, the John Deere technology effort reminds me a lot more of the iPhone than what Caterpillar is doing. It feels like it's a lot more the way they're marketing it, and some of the features and the way they're selling things. It feels a lot more like selling to a consumer.
Sciple: Another thing that I wanted to point out on the Apple analogy on John Deere as we kind of move into the financial aspect of their technology offering, is very recently, just in the past week or so, John Deere has come out and announced that they're going to report their software revenue as a separate line item in their financial reporting, which echoes back to Apple's move to report their services line item separately in their financials. What does it say about how John Deere wants this software business to be part of the narrative we look at as investors going forward?
Sanchez: It's really smart, because everyone knows that a software or a tech business is going to get a higher multiple than some stodgy old equipment business. To the extent that they can set a different narrative, you'd be hard pressed if you asked your average person, "Is John Deere and Caterpillar a tech company?", you'd be hard pressed to convince them that they are tech companies. But if John Deere can convince investors that a significant portion of our earnings are coming from tech, pay a higher multiple for our stock, I think that's a really savvy move.
Sciple: Well Luis, I guess the question that I have to ask is, can they convince you when you look at how big their software opportunity might be, and their potential to grow -- is that something that makes the stock interesting to you today or what are your thoughts? This is a stock that's run an incredible amount in the past year, John Deere specifically.
Sanchez: Yeah. I think that to the extent that you can look at things like AutoTrak that they are making people pay extra for, you couldn't really argue that AutoTrak and some of these software tools are not a really valuable source of recurring revenue that didn't exist 20, 30 years ago. When you look at some of these things that they are attaching that have different financial characteristics than just selling a tractor, yes, you certainly should give them credit for that. However, I wouldn't suddenly think of John Deere as the next Tesla because at the end of the day, you have to think about [this] -- the success of their customer is going to determine the success of being able to sell things to the customer. If farmers are doing really well because of the parts of the economy that help farmers, so like rising prices for certain crops, the value of land. If those things are doing well, then the farmers doing well, then the farmer is going to be able to have more money to invest in new equipment and pay for new technology. You can't completely divorce John Deere from the fact that it is selling to a resource industry that does have ties to macroeconomic factors.
Sciple: Absolutely. When you look at these companies that are all-time highs, we do have toward all-time high multiples. In this new universe though, do you think times have changed and these companies deserve higher multiples than they would have historically? We're in a universe where 15 times earnings for even some of these industrial companies -- we're not in that universe anymore. Because even these companies have tech offerings, and recurring revenue, and all of the things that we look at for these higher multiple businesses.
Sanchez: Yeah. I think that where we are in the cycle, too, makes these really interesting because we're potentially in a situation where spending on infrastructure could go up, and where inflation could raise the price of certain goods that could help some of these commodity prices. For farmers that would be like crops, for Caterpillar that could be something like oil and gas, which a lot of their customers are involved in. I think you do have to think about the cycle. If you think about the actual business composition where Caterpillar is at, is last year, 40% of their revenue came from parts and services. And parts and services as we mentioned, it's a higher-margin revenue, so maybe that is more valuable. If they do hit their goals in terms of doubling their parts and services revenue over this period of time, well, you should probably give them some credit for that because that's probably going to result in margin expansion. We've already seen some margin expansion from both of these companies. The ability to operate more in that parts and servicing side of the business also actually takes out some of the cyclicality, so it makes their revenue models less volatile from year to year.
Sciple: So you're less subject to these cycles that you're talking about earlier. You're always subject to -- if nobody wants to drill for oil and gas, they are not going to go buy the Caterpillar equipment or what have you, but they do have something that smooths out some of that revenue going forward.
To wrap everything up here, we've talked about how some of these big industrial giants are starting to integrate technology more and more into their business models. This isn't a trend that's going to go into reverse anytime soon. As you look out to the next, say, five years of the continuation of this trend, what are some things you're looking for and are going to be paying attention to?
Sanchez: Sure. There's a lot of interesting things that these companies are still working on that they still have visibility to roll out. I think for John Deere, the 300-pound gorilla is probably getting from autopilot to fully autonomous. If you talk to the company and if you talk to people who know this space, they'll tell you that they have all the technology to make tractors and to make farming equipment fully autonomous, but they haven't yet put it all together to make that happen. Actually, regulators aren't there yet in terms of letting them do it, so that's actually something where I think that to the extent that we could get full self-driving approved on the regulatory side in the automotive market, that can make it easier to smooth the process for some of this farm equipment and some of these other industries to get regulatory blessing to become fully autonomous.
If you think about it, it solves a lot of problems because agriculture is an industry where we have to deal with seasonal labor issues, labor shortage issues, and so to the extent that you can allow these companies, allow farmers to operate more autonomously and less human-capital intensive, I think it could really change the shape of that industry. Then for both of these companies, Caterpillar and Deere, electrification of the machines is going to be another really big one. It's not as easy to electrify a really big piece of heavy equipment as it is to electrify a relatively small car. I think the technology for doing that is going to take a little bit longer just to be able to have as much torque and as much hauling power as they need, but when it happens, that's just another thing that they could roll out and make these machines that much better.
Sciple: That's something we'll be watching for, Luis, and as we have things to discuss in that space, we'll be looking forward to having you back on to break it all down. Looking forward to having you on next time.
Sanchez: Thanks. Me too.
Sciple: As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against the stocks discussed, so don't buy or sell anything based solely on what you hear. Thanks to Andy Franks for her work behind the virtual glass, for Luis Sanchez. I'm Nick Sciple. Thanks for listening, and Fool on!
Luis Sanchez CFA has no position in any of the stocks mentioned. Nick Sciple owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120.0 calls on Apple and short March 2023 $130.0 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sciple: Which goes back into that study you mentioned earlier about how the servicing part of the business is even larger than the equipment sales, which ties into maybe my last question on Caterpillar before we move on to John Deere. John Deere, one of their most popular software offerings is called AutoTrak, which essentially lines up your machine, whether it's a combine or a tractor, to the most optimal way to pass through the field. When you think "tech companies," you probably don't think John Deere (NYSE: DE) or Caterpillar (NYSE: CAT), but these two businesses have been quietly building meaningful technology businesses.
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When you think "tech companies," you probably don't think John Deere (NYSE: DE) or Caterpillar (NYSE: CAT), but these two businesses have been quietly building meaningful technology businesses. In this episode of Industry Focus: Energy, host Nick Sciple is joined by Motley Fool contributor Luis Sanchez to break down what both of those heavy machinery companies are doing in technology, as well as take a high-level view of what it means to be a tech company in 2021. Sciple: Another thing that I wanted to point out on the Apple analogy on John Deere as we kind of move into the financial aspect of their technology offering, is very recently, just in the past week or so, John Deere has come out and announced that they're going to report their software revenue as a separate line item in their financial reporting, which echoes back to Apple's move to report their services line item separately in their financials.
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You're getting a new iPhone every three years, you're not turning over your Caterpillar piece of equipment except for every five, 10 years, depending maybe if you buy used, maybe shorter than that but when you're talking about this new technology that the top-of-the-line equipment with the latest technology to Caterpillar is implementing, what are those offerings the company has and why is this something that's really going to be meaningful for customers and for the business? Sanchez: Well, the biggest difference is like John Deere does make some construction equipment like little excavators and things like that, but what John Deere is known for is selling to farmers, and selling to the agricultural market. When you think "tech companies," you probably don't think John Deere (NYSE: DE) or Caterpillar (NYSE: CAT), but these two businesses have been quietly building meaningful technology businesses.
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Sanchez: Well, the biggest difference is like John Deere does make some construction equipment like little excavators and things like that, but what John Deere is known for is selling to farmers, and selling to the agricultural market. Sciple: We've talked about how farmers are maybe a little bit different from the type of customer you are getting in construction and mining the Caterpillar deals with. When you think "tech companies," you probably don't think John Deere (NYSE: DE) or Caterpillar (NYSE: CAT), but these two businesses have been quietly building meaningful technology businesses.
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8af6f1d8-74bb-4f50-974a-0731962aba97
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721562.0
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2021-04-12 00:00:00 UTC
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Why This Cathie Wood Stock Is a Buy
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DE
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https://www.nasdaq.com/articles/why-this-cathie-wood-stock-is-a-buy-2021-04-12
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Industrial technology company Trimble (NASDAQ: TRMB) is the largest holding in Cathie Wood's ARK Space Exploration & Innovation ETF (NYSEMKT: ARKX), and it's the second-largest holding in the ARK Autonomous Technology & Robotics ETF. Given that the much-admired fund manager has put that level of support behind it, it's worth taking a closer look at the stock and why it might suit growth-orientated investors right now.
Introducing Trimble
The company sells hardware, software, and services that use satellite technology to help clients position and model their physical assets or activities. Trimble's roots lie in global positioning systems (GPS), but its ambitions have expanded over the years. With the advent of more sophisticated technology, Trimble's solutions have become productivity enhancers that help clients create an "integrated work process."
Image source: Getty Images.
For example, Trimble's technology is used by farmers to steer and control tractors, in construction to guide heavy machinery with precision (Caterpillar is a joint-venture partner), and in logistics to monitor and manage trucking fleets remotely. For reference, 99% of the top 200 trucking fleets in the U.S. use the company's technology.
The case for buying Trimble stock
There are three interconnected arguments for buying the stock:
The company has myriad growth drivers, and new markets and opportunities will open up due to the explosion in data analytics and productivity enhancements through digital technology adoption.
Margins and free cash flow generation will expand rapidly as higher-margin software and services become a more significant part of Trimble's sales mix.
The company's quality of earnings will improve as a growing percentage of its revenue is coming from recurring sources, thus de-risking the stock.
What are Trimble's growth drivers?
Trimble's key end markets are geospatial (surveying and mapping companies), construction (helping engineering contractors complete projects with precision), agriculture (field navigation and crop management), and transportation (real-time fleet management).
Aside from the noticeable near- and medium-term boosts that a massive federal infrastructure package would give to these activities, they also have strong secular growth prospects due to the growth of digital technology. For example, construction contractors can take advantage of pinpoint accuracy in constructing a space truss based on a 3D model.
Trimble's technology can help contractors complete projects with pinpoint accuracy. Image source: Getty Images.
Meanwhile, increased use of data analytics is helping farmers make better decisions as they plant and nurture their crops. Deere continues to invest heavily in its precision agriculture solutions and sees very high take-up rates of its technology. As such, Trimble investors can expect to see long-term growth as smart-farming is adopted on a wide scale.
Route optimization and capacity utilization are already the name of the game in transportation. As data-analytics capabilities improve, positioning data will only become more critical. Furthermore, the growth of electric vehicle fleets means operators will face the new challenge of optimally charging their fleets.
Margin improvements
Trimble has two clear margin-improvement drivers in place. First, revenues from its highest-margin segments -- namely, buildings and infrastructure, and resources and utilities -- are growing more than revenues from its lower-margin geospatial and transportation segments.
In common with most other industrial companies, Trimble took a significant hit from the pandemic in 2020, which dragged on its 2018-2020 revenue growth rate.
TRIMBLE SEGMENT
2020
REVENUE
2018-2020
REVENUE GROWTH
2018-2020 AVERAGE
OPERATING INCOME MARGIN
Buildings and Infrastructure
$1.231 billion
13.2%
25.5%
Geospatial
$651 million
(10%)
23.9%
Resources and Utilities
$630 million
10.9%
31.4%
Transportation
$641 million
(15%)
14.2%
Data source: Company presentations.
Second, as Trimble generates more of its revenue from software and recurring sources, its margins will naturally rise. This should mean that its revenue growth will produce relatively larger increases in profits.
REVENUE TYPE
2018
2019
2020
GROSS MARGIN 2020
Hardware
$1.515 billion
$1.415 billion
$1.319 billion
40.3%
Software
$485 million
$520 million
$509 million
86.4%
Recurring
$914 million
$1.122 billion
$1.161 billion
73.8%
Total*
$3.108 billion
$3.264 billion
$3.148 billion
59.1%
Data source: Company presentations. *Includes professional service and other revenue.
Is Trimble stock a buy?
Given the stock price's 190% rise over the last year, it's not surprising to see that Trimble now trades at relatively high valuations on a number of metrics.
Data by YCharts
On the other hand, Trimble is a stock with a long runway for growth ahead of it. The explosion of data analytics and digital technologies is likely to open up new growth areas for the company. Moreover, its profit margins should expand over time for the reasons outlined above. Indeed, Wall Street analysts foresee its operating margin expanding to 23.6% in 2023 from 22.8% in 2020, meaning operating income would grow by 30% to $933 million over the same period.
As such, Trimble is a growth stock, and a valuation of 34 times free cash flow is not expensive for a company with the possibility of double-digit percentage earnings growth over the long term. After the stock's recent strong run-up, cautious investors may want to wait in hopes of catching a better entry point, but Trimble still looks a good value for long-term investors.
10 stocks we like better than Trimble Inc.
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Trimble Inc. 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 February 24, 2021
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Trimble Inc.. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Introducing Trimble The company sells hardware, software, and services that use satellite technology to help clients position and model their physical assets or activities. For example, Trimble's technology is used by farmers to steer and control tractors, in construction to guide heavy machinery with precision (Caterpillar is a joint-venture partner), and in logistics to monitor and manage trucking fleets remotely. Trimble's roots lie in global positioning systems (GPS), but its ambitions have expanded over the years.
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Introducing Trimble The company sells hardware, software, and services that use satellite technology to help clients position and model their physical assets or activities. Trimble's roots lie in global positioning systems (GPS), but its ambitions have expanded over the years. For example, Trimble's technology is used by farmers to steer and control tractors, in construction to guide heavy machinery with precision (Caterpillar is a joint-venture partner), and in logistics to monitor and manage trucking fleets remotely.
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Introducing Trimble The company sells hardware, software, and services that use satellite technology to help clients position and model their physical assets or activities. Trimble's roots lie in global positioning systems (GPS), but its ambitions have expanded over the years. For example, Trimble's technology is used by farmers to steer and control tractors, in construction to guide heavy machinery with precision (Caterpillar is a joint-venture partner), and in logistics to monitor and manage trucking fleets remotely.
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Introducing Trimble The company sells hardware, software, and services that use satellite technology to help clients position and model their physical assets or activities. Trimble's roots lie in global positioning systems (GPS), but its ambitions have expanded over the years. For example, Trimble's technology is used by farmers to steer and control tractors, in construction to guide heavy machinery with precision (Caterpillar is a joint-venture partner), and in logistics to monitor and manage trucking fleets remotely.
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8bc07911-415e-4853-977c-311e2871c75d
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721563.0
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2021-04-08 00:00:00 UTC
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Noteworthy Thursday Option Activity: AMD, GS, DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-amd-gs-de-2021-04-08
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advanced Micro Devices Inc (Symbol: AMD), where a total of 216,193 contracts have traded so far, representing approximately 21.6 million underlying shares. That amounts to about 53% of AMD's average daily trading volume over the past month of 40.8 million shares. Especially high volume was seen for the $83 strike call option expiring April 09, 2021, with 18,684 contracts trading so far today, representing approximately 1.9 million underlying shares of AMD. Below is a chart showing AMD's trailing twelve month trading history, with the $83 strike highlighted in orange:
Goldman Sachs Group Inc (the (Symbol: GS) saw options trading volume of 14,059 contracts, representing approximately 1.4 million underlying shares or approximately 49.9% of GS's average daily trading volume over the past month, of 2.8 million shares. Especially high volume was seen for the $330 strike call option expiring April 23, 2021, with 1,212 contracts trading so far today, representing approximately 121,200 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $330 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 8,615 contracts, representing approximately 861,500 underlying shares or approximately 47% of DE's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $315 strike put option expiring May 28, 2021, with 612 contracts trading so far today, representing approximately 61,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $315 strike highlighted in orange:
For the various different available expirations for AMD options, GS options, or DE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $83 strike call option expiring April 09, 2021, with 18,684 contracts trading so far today, representing approximately 1.9 million underlying shares of AMD. Especially high volume was seen for the $330 strike call option expiring April 23, 2021, with 1,212 contracts trading so far today, representing approximately 121,200 underlying shares of GS. Particularly high volume was seen for the $315 strike put option expiring May 28, 2021, with 612 contracts trading so far today, representing approximately 61,200 underlying shares of DE.
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Especially high volume was seen for the $83 strike call option expiring April 09, 2021, with 18,684 contracts trading so far today, representing approximately 1.9 million underlying shares of AMD. Below is a chart showing AMD's trailing twelve month trading history, with the $83 strike highlighted in orange: Goldman Sachs Group Inc (the (Symbol: GS) saw options trading volume of 14,059 contracts, representing approximately 1.4 million underlying shares or approximately 49.9% of GS's average daily trading volume over the past month, of 2.8 million shares. Below is a chart showing GS's trailing twelve month trading history, with the $330 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 8,615 contracts, representing approximately 861,500 underlying shares or approximately 47% of DE's average daily trading volume over the past month, of 1.8 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advanced Micro Devices Inc (Symbol: AMD), where a total of 216,193 contracts have traded so far, representing approximately 21.6 million underlying shares. Below is a chart showing AMD's trailing twelve month trading history, with the $83 strike highlighted in orange: Goldman Sachs Group Inc (the (Symbol: GS) saw options trading volume of 14,059 contracts, representing approximately 1.4 million underlying shares or approximately 49.9% of GS's average daily trading volume over the past month, of 2.8 million shares. Below is a chart showing GS's trailing twelve month trading history, with the $330 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 8,615 contracts, representing approximately 861,500 underlying shares or approximately 47% of DE's average daily trading volume over the past month, of 1.8 million shares.
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Especially high volume was seen for the $83 strike call option expiring April 09, 2021, with 18,684 contracts trading so far today, representing approximately 1.9 million underlying shares of AMD. Below is a chart showing AMD's trailing twelve month trading history, with the $83 strike highlighted in orange: Goldman Sachs Group Inc (the (Symbol: GS) saw options trading volume of 14,059 contracts, representing approximately 1.4 million underlying shares or approximately 49.9% of GS's average daily trading volume over the past month, of 2.8 million shares. Particularly high volume was seen for the $315 strike put option expiring May 28, 2021, with 612 contracts trading so far today, representing approximately 61,200 underlying shares of DE.
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ab523a09-0b8f-4c05-83ad-d826b8e846a8
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721564.0
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2021-04-03 00:00:00 UTC
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3 Infrastructure Stocks to Buy in April
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https://www.nasdaq.com/articles/3-infrastructure-stocks-to-buy-in-april-2021-04-03
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A promised U.S infrastructure bill in 2021 is likely to be excellent news for companies with exposure to road building, water infrastructure, and construction on infrastructure in general. That's why investors in equipment manufacturer Deere & Company (NYSE: DE), sustainable water company Xylem (NYSE: XYL), and engineering, design, consulting, and construction management company AECOM (NYSE: ACM) are getting their hopes up about government proposals currently in discussion.
Let's look at why all three of these stocks with an infrastructure focus might be attractive companies for investors in April.
1. Deere & Company
This manufacturer is better known for its iconic agricultural machinery, but investors shouldn't overlook its exposure to construction and forestry equipment. The construction and forestry segment contributed around half as much in operating profit as the agriculture and turf segment did in 2019.
Image source: Getty Images.
Deere's exposure to infrastructure comes from two primary sources. First, lumber prices have already hit all-time highs on the back of increased demand for its use in housing and construction projects. Increased investment in infrastructure will only strengthen that demand, and that's likely to mean an expansion in sales for Deere's forestry equipment.
Second, Deere's $5.2 billion acquisition of Germany's Wirtgen in 2017 made it one of the world's leading providers of end-to-end road construction solutions. From quarry excavators and earth-moving equipment to crushers, asphalt plants, and ultimately compactors and pavers, Deere is now a one-stop solution for road contractors.
With Deere's agricultural equipment sales improving on the back of a resurgent crop market and farmers buying into its smart-farming solutions, the company was already having a great 2021. Throw in the possibility of a boost in demand from an infrastructure bill, and Deere's stock has upside potential.
2. Xylem
It's been a mixed few years for investors in Xylem. On the one hand, the stock price is up handsomely over the last three years. On the other, it's notably underperformed the S&P 500.
Data by YCharts
A quick look at its revenue sources helps shed light on why Xylem has underperformed the market in recent years. There are two main reasons. First, the industrial sector's weakness caused some disappointment in its industrial and commercial sales in 2019. Second, water utility companies have been relatively slow to adopt Xylem's smart infrastructure solutions, known as advanced infrastructure analytics (AIA).
Data source: Xylem presentations. Chart by author.
Xylem's AIA smart metering and monitoring solutions use digital technology to help utilities deal with leakage, theft, and metering and billing issues. As such, they can play a critical role in improving water infrastructure.
A federal infrastructure bill could result in increased investment in water infrastructure, and that's likely to lead to more aggressive adoption of AIA services by U.S. utilities. That's good news in itself, and it could also encourage global adoption as U.S. utilities demonstrate the success of using AIA. Meanwhile, Xylem's core water and wastewater treatment pumps, mixers, turbines, products, and systems are likely to receive a boost from an increase in spending on U.S. infrastructure as well.
3. AECOM
Finally, AECOM has many positive catalysts behind its earnings in the next few years. The engineering design consultancy and construction management company has heavy exposure to infrastructural spending, with the U.S. generating around 54% of its revenue. Moreover, management believes the Biden administration's stated priorities of accelerating clean energy investment in transportation, energy, and construction will benefit the company.
Data source: AECOM presentations. Chart by author.
Alongside potential end market improvements from an infrastructure bill, AECOM has restructured its operations over the last few years, partly in response to criticisms from activist hedge fund Starboard Value.
Starboard argues AECOM has underperformed in recent years, and it would better serve investors by divesting its underperforming businesses in favor of focusing on its most profitable business areas and regions. Indeed, AECOM sold its management services business for $2.4 billion in January 2020, with the sale of its power construction business in October 2020, and the sale of the civil construction business in January 2021.
Image source: Getty Images.
The restructuring led management to give a bullish outlook for margin expansion and future free cash flow generation at its investor day presentation in February. For example, management forecasts the operating margin will increase to 15% by 2024 from 12.3% in 2020 and an estimated 13.2% in 2021. Moreover, management plans to double earnings and free cash flow in the four years from 2020 to 2024.
Throw in a boost to its end markets from an infrastructure bill, and AECOM could hit its targets earlier than many expect.
10 stocks we like better than Deere & Company
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company 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 February 24, 2021
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alongside potential end market improvements from an infrastructure bill, AECOM has restructured its operations over the last few years, partly in response to criticisms from activist hedge fund Starboard Value. That's why investors in equipment manufacturer Deere & Company (NYSE: DE), sustainable water company Xylem (NYSE: XYL), and engineering, design, consulting, and construction management company AECOM (NYSE: ACM) are getting their hopes up about government proposals currently in discussion. Deere & Company This manufacturer is better known for its iconic agricultural machinery, but investors shouldn't overlook its exposure to construction and forestry equipment.
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That's why investors in equipment manufacturer Deere & Company (NYSE: DE), sustainable water company Xylem (NYSE: XYL), and engineering, design, consulting, and construction management company AECOM (NYSE: ACM) are getting their hopes up about government proposals currently in discussion. The engineering design consultancy and construction management company has heavy exposure to infrastructural spending, with the U.S. generating around 54% of its revenue. Alongside potential end market improvements from an infrastructure bill, AECOM has restructured its operations over the last few years, partly in response to criticisms from activist hedge fund Starboard Value.
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That's why investors in equipment manufacturer Deere & Company (NYSE: DE), sustainable water company Xylem (NYSE: XYL), and engineering, design, consulting, and construction management company AECOM (NYSE: ACM) are getting their hopes up about government proposals currently in discussion. Deere & Company This manufacturer is better known for its iconic agricultural machinery, but investors shouldn't overlook its exposure to construction and forestry equipment. Deere's exposure to infrastructure comes from two primary sources.
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Deere & Company This manufacturer is better known for its iconic agricultural machinery, but investors shouldn't overlook its exposure to construction and forestry equipment. Starboard argues AECOM has underperformed in recent years, and it would better serve investors by divesting its underperforming businesses in favor of focusing on its most profitable business areas and regions. That's why investors in equipment manufacturer Deere & Company (NYSE: DE), sustainable water company Xylem (NYSE: XYL), and engineering, design, consulting, and construction management company AECOM (NYSE: ACM) are getting their hopes up about government proposals currently in discussion.
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a60e274f-42d5-44dc-bcf3-d106bf435047
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721565.0
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2021-03-31 00:00:00 UTC
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John Deere Foundation To Invest $200 Mln Over Next 10 Yrs
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DE
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https://www.nasdaq.com/articles/john-deere-foundation-to-invest-%24200-mln-over-next-10-yrs-2021-03-31
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nan
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(RTTNews) - The John Deere Foundation said that it will invest $200 million over the next 10 years in initiatives that will bring to life John Deere's higher purpose: We run so life can leap forward.
As part of its 10-year commitment, the Foundation will invest $100 million in the families and youth who live, work, and learn in John Deere's home communities to ensure their inclusive and equitable access to resources and educational opportunities critical for human dignity and self-sufficiency.
Annual investments of two million dollars in food banks will provide the equivalent of 100 million meals over the next decade, and investments in youth education will reach at least one million underserved and underrepresented youth.
The Foundation will invest $50 million in farmers throughout the world to bolster their capacity to make a living, feed a growing global population, and reduce inequality.
The Foundation will invest $50 million in John Deere's workforce to further mobilize and build on their enormous volunteer talents and generosity to strengthen their communities and improve lives around the world.
The views and 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 part of its 10-year commitment, the Foundation will invest $100 million in the families and youth who live, work, and learn in John Deere's home communities to ensure their inclusive and equitable access to resources and educational opportunities critical for human dignity and self-sufficiency. The Foundation will invest $50 million in John Deere's workforce to further mobilize and build on their enormous volunteer talents and generosity to strengthen their communities and improve lives around the world. (RTTNews) - The John Deere Foundation said that it will invest $200 million over the next 10 years in initiatives that will bring to life John Deere's higher purpose: We run so life can leap forward.
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(RTTNews) - The John Deere Foundation said that it will invest $200 million over the next 10 years in initiatives that will bring to life John Deere's higher purpose: We run so life can leap forward. As part of its 10-year commitment, the Foundation will invest $100 million in the families and youth who live, work, and learn in John Deere's home communities to ensure their inclusive and equitable access to resources and educational opportunities critical for human dignity and self-sufficiency. The Foundation will invest $50 million in John Deere's workforce to further mobilize and build on their enormous volunteer talents and generosity to strengthen their communities and improve lives around the world.
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(RTTNews) - The John Deere Foundation said that it will invest $200 million over the next 10 years in initiatives that will bring to life John Deere's higher purpose: We run so life can leap forward. As part of its 10-year commitment, the Foundation will invest $100 million in the families and youth who live, work, and learn in John Deere's home communities to ensure their inclusive and equitable access to resources and educational opportunities critical for human dignity and self-sufficiency. Annual investments of two million dollars in food banks will provide the equivalent of 100 million meals over the next decade, and investments in youth education will reach at least one million underserved and underrepresented youth.
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(RTTNews) - The John Deere Foundation said that it will invest $200 million over the next 10 years in initiatives that will bring to life John Deere's higher purpose: We run so life can leap forward. As part of its 10-year commitment, the Foundation will invest $100 million in the families and youth who live, work, and learn in John Deere's home communities to ensure their inclusive and equitable access to resources and educational opportunities critical for human dignity and self-sufficiency. Annual investments of two million dollars in food banks will provide the equivalent of 100 million meals over the next decade, and investments in youth education will reach at least one million underserved and underrepresented youth.
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88c50452-f484-47ea-a3b5-69ab6c124d9c
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721566.0
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2021-03-30 00:00:00 UTC
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7 Infrastructure Stocks Ready for the Looming Supercycle
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DE
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https://www.nasdaq.com/articles/7-infrastructure-stocks-ready-for-the-looming-supercycle-2021-03-30
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Congress and the White House recently approved a new wave of stimulus measures. With the recent cash injection and President Joe Biden’s stated focus on infrastructure as an agenda item, investors are wondering if an infrastructure stimulus may be up next. Based off the price of numerous infrastructure stocks, it’s clear investors certainly think so.
Investors love the idea of an infrastructure bill. It acts as a de facto stimulus bill, but it doesn’t just inject money directly in the banking system, businesses via loans and to consumers via direct payment. Think about it. The government inks a bill with several hundred billion dollars to go around. The next thing you know, states, contractors and companies are locked into multi-month and multi-year projects with one job after the next lined up.
Engineers, machine operators, laborers, environmental workers and more line up and get paid as the work streams in. Companies pull in cash hand over fist. It acts as an economic stimulus for workers and companies. That’s why Wall Street is so hopeful that one day, we get an infrastructure bill out of Washington.
The question is whether it’ll be from this administration or not. If it doesn’t happen, infrastructure stocks will see an obvious blow. However, even without a stimulus bill, infrastructure stocks have improved based on the prospects of a reopening economy. Investors are bidding on normalcy, buying stocks that will likely see a surge of business once the world opens for business once again–hopefully for good.
8 Small-Cap Stocks With Plenty of Cred
Let’s look at a handful of infrastructure stocks that have had plenty of momentum lately:
Caterpillar (NYSE:CAT)
Vulcan Materials (NYSE:VMC)
Cummins (NYSE:CMI)
United Rentals (NYSE:URI)
Deere (NYSE:DE)
U.S. Steel (NYSE:X)
iShares U.S. Infrastructure ETF (BATS:IFRA)
Infrastructure Stocks to Watch: Caterpillar (CAT)
Source: Shutterstock
How can we talk about infrastructure stocks and not start with Caterpillar?
The leading heavy equipment manufacturer of the world is virtually synonymous with these types of projects. If someone has a big construction project on the books, they already know they’re booking some time with Caterpillar.
The only “problem” with Caterpillar (if we can call it that) is shares continue to hover near the highs. The stock has been marching higher for several quarters now, as it’s also part of the reopening trade.
When the novel coronavirus swept through the world, it put all sorts of projects and developments on hold. With those projects (and more) coming back to life, Caterpillar and other infrastructure stocks have been on fire.
The company’s rolling three-month sales period is showing improving signs, signaling that the world may really be making a push back toward reopening. While the U.S. is making rapid progress with the vaccine, many other parts of the world haven’t been quite so lucky.
As they gain traction though, look for Caterpillar to continue seeing an improvement in its sales.
Vulcan Materials (VMC)
Source: U.J. Alexander/Shutterstock.com
Vulcan Materials is not an especially well-known company, although with a market capitalization of $23 billion, it’s not exactly flying under the radar. Investors just tend to focus on the headline names.
For infrastructure stocks, people only pay attention to big names like the above Caterpillar. As for the stock market at large, Apple (NASDAQ:AAPL) is always up front and, for some reason, Tesla (NASDAQ:TSLA) CEO Elon Musk is always making headlines.
With a company like Vulcan, not too many investors get excited about aggregates — but they should. The company is a provider of crushed stone, sand and gravel used to make asphalt and concrete. In fact, it is the largest producer of aggregate in the country.
8 Hot Stocks to Buy for Your Well-Diversified Portfolio
So if there’s going to be a large infrastructure bill, investors better believe that Vulcan will be on the receiving end of some of those phone calls. The company itself says:
“What we mine and sell—aggregates—are indispensable to infrastructure and growth; We take care of the land through the entire cycle of productive use from mining to restoration and re-use. We serve our customers and communities well. Always with the long view in mind. This is how we sustain success.”
Cummins (CMI)
CMI) sign in bright red." width="300" height="169">
Source: Jonathan Weiss / Shutterstock.com
Cummins is another infrastructure name to keep in mind. Unlike Vulcan or Caterpillar, though, it’s not completely tied to buildings and projects.
When you head to the Cummins site, you’ll find this engine maker can be found in a lot more than some Dodge Ram trucks or a few semi trucks. It’s in various industries ranging from agriculture to construction, defense, drilling, bussing, fire and emergency vehicles, marine, mining and more. The company also has a components business, as well as a generators and power systems unit.
Think those have a place in infrastructure projects? You bet.
Could Cummins also see a bit of the EV and alternative fuel momentum? They seem to think so, saying “As leaders in battery, fuel cell, and hydrogen-production technologies, we’re steering the way to a brighter tomorrow. Today.”
It’s possible. Regardless though, the company will be an immediate beneficiary of increasing infrastructure spending in 2021 and beyond.
United Rentals (URI)
URI)." width="300" height="169">
Source: Casimiro PT / Shutterstock.com
I really like United Rentals. They bring such a unique view to this group of stocks. When new projects begin, companies need equipment. Sometimes they only need certain tools or machines for a specific task. Other times, they need to quickly increase their tool count for a flurry of activity (think of an overhead bridge or highway work that needs to be completed in a hurry).
United Rentals is there to help. It doesn’t matter if it’s a highway infrastructure project or a new commercial building going up downtown. In hundreds of scenarios between these situations, companies need a company to count on.
United Rentals has two main businesses: general rentals and trench, and power and fluid solutions.
The first group is pretty simple, consisting of tools, components and machines that workers need to get a job done. The second group is a bit more specialized and includes everything from trench shields to construction lasers, HVAC and generators.
7 Risky Stocks Ready to Roll on Reopening
Put simply, no significant project gets going without United Rentals playing some kind of role.
Deere (DE)
Source: Shutterstock
Perhaps the hottest industrial stock has been Deere. The company continues to knock the ball out of the park and the stock continues to surge as a result.
Deere was flirting with a breakout in February 2020, just as the coronavirus selloff was beginning. Ultimately, shares sank about 41%. But that holds up great compared to other stocks, it did pretty good vs. the S&P 500 — which fell about 35% — and did okay considering the situation.
Forget about the decline, though. At its recent high, shares are up over 230% from the March 2020 low. What an explosion of performance. The momentum isn’t just isolated to the stock performance either, as business has been booming as well.
Despite heightened expectations, Deere grew equipment net sales 23% to $8.05 billion in the first quarter, more than $900 million ahead of expectations. Earnings of $3.87 a share topped expectations by $1.70 per share, which was almost 80% higher than consensus estimates. On top of that, management provided an upbeat outlook for the year.
Simply put, Deere is firing on all cylinders. However, this name is typically associated with agriculture, not infrastructure. That is where the company got its start and continues to thrive, as well as in lawn and grass care.
That said, it also has a solid construction business, specializing in both compact and heavy machinery. Dump trucks, backhoes, excavators, skid steers and more. Deere has a place in this space and with the increase in construction, this company should see an increase in business.
U.S. Steel (X)
Source: Shutterstock
It’s hard to talk about infrastructure stocks and not touch on steel. Steel plays a big role in all sorts of projects, ranging from buildings to parking centers, bridges and more. In that sense, U.S. Steel should be on investors’ radar too.
Shares continue to hover near multi-year highs, as investors continue to anticipate pent up demand driving more business. Specifically, current estimates call for more than 50% revenue growth to $15.1 billion this year and for earnings of $3.63 a share.
At $25 per share, that leaves the stock trading at a paltry six times earnings. However, the problem is that estimates also call for earnings of just 55 cents a share in 2022. So while U.S. Steel seems cheap based on this year’s expectations, it may be expensive based on next year.
The key here will be momentum. Specifically, can the company garner more business this year than expected and can it maintain at least a bulk of that momentum going into 2022?
7 Value Stocks Everyone Is Ignoring
If the answer is yes, this stock likely has more potential to the upside.
iShares U.S. Infrastructure ETF (IFRA)
Source: Gorodenkoff via Shutterstock
Last but certainly not least is the iShares U.S. Infrastructure exchange-traded fund. An ETF can be a great way for investors to gain exposure to a certain trend, industry or area of the market.
In the case of infrastructure, there are options too. The IFRA ETF gives investors a broad stroke of mostly equal-weighted holdings that should benefit from an increase in infrastructure spending.
2021 and the following years should help drive these stocks higher. If there’s an infrastructure bill out of Washington, this ETF will almost surely do well. It currently pays out a 2% dividend yield and that’s despite a hefty rally.
The IFRA ETF has rallied in five of the past six months and in ten of the past 12. At its recent high, the ETF was up about 45% from its September low.
Kansas City Southern (NYSE:KSU) and Hawaiian Electric Industries (NYSE:HE) are tied for the top holdings, at only 0.87% each though. Holding weight is distributed about equally through the rest of the top holdings, with two companies locked in a similar tie for second place at 0.83%.
On the date of publication, Bret Kenwell held a long position in DE.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 7 Infrastructure Stocks Ready for the Looming Supercycle 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 the recent cash injection and President Joe Biden’s stated focus on infrastructure as an agenda item, investors are wondering if an infrastructure stimulus may be up next. Investors love the idea of an infrastructure bill. It acts as a de facto stimulus bill, but it doesn’t just inject money directly in the banking system, businesses via loans and to consumers via direct payment.
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8 Small-Cap Stocks With Plenty of Cred Let’s look at a handful of infrastructure stocks that have had plenty of momentum lately: Caterpillar (NYSE:CAT) Vulcan Materials (NYSE:VMC) Cummins (NYSE:CMI) United Rentals (NYSE:URI) Deere (NYSE:DE) U.S. Steel (NYSE:X) iShares U.S. Infrastructure ETF (BATS:IFRA) Infrastructure Stocks to Watch: Caterpillar (CAT) Source: Shutterstock How can we talk about infrastructure stocks and not start with Caterpillar? With the recent cash injection and President Joe Biden’s stated focus on infrastructure as an agenda item, investors are wondering if an infrastructure stimulus may be up next. Investors love the idea of an infrastructure bill.
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8 Small-Cap Stocks With Plenty of Cred Let’s look at a handful of infrastructure stocks that have had plenty of momentum lately: Caterpillar (NYSE:CAT) Vulcan Materials (NYSE:VMC) Cummins (NYSE:CMI) United Rentals (NYSE:URI) Deere (NYSE:DE) U.S. Steel (NYSE:X) iShares U.S. Infrastructure ETF (BATS:IFRA) Infrastructure Stocks to Watch: Caterpillar (CAT) Source: Shutterstock How can we talk about infrastructure stocks and not start with Caterpillar? With the recent cash injection and President Joe Biden’s stated focus on infrastructure as an agenda item, investors are wondering if an infrastructure stimulus may be up next. Investors love the idea of an infrastructure bill.
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With the recent cash injection and President Joe Biden’s stated focus on infrastructure as an agenda item, investors are wondering if an infrastructure stimulus may be up next. Investors love the idea of an infrastructure bill. It acts as a de facto stimulus bill, but it doesn’t just inject money directly in the banking system, businesses via loans and to consumers via direct payment.
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43a7c9a3-d1f3-4f1d-b16f-c18e9a81c569
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721567.0
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2021-03-29 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for March 30, 2021
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-for-march-30-2021-2021-03-29
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Deere & Company (DE) will begin trading ex-dividend on March 30, 2021. A cash dividend payment of $0.9 per share is scheduled to be paid on May 10, 2021. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 18.42% increase over prior dividend payment.
The previous trading day's last sale of DE was $372.29, representing a -5.13% decrease from the 52 week high of $392.42 and a 215.9% increase over the 52 week low of $117.85.
DE is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. (ASML) and Thermo Fisher Scientific Inc (TMO). DE's current earnings per share, an indicator of a company's profitability, is $10.94. Zacks Investment Research reports DE's forecasted earnings growth in 2021 as 82.45%, compared to an industry average of 17.1%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
VanEck Vectors Agribusiness ETF (MOO)
ARK Autonomous Technology & Robotics ETF (ARKQ)
iShares MSCI Agriculture Producers Fund (VEGI)
VanEck Vectors Natural Resources ETF (HAP)
First Trust Indxx Global Agriculture ETF (FTAG).
The top-performing ETF of this group is FTAG with an increase of 45% over the last 100 days. MOO has the highest percent weighting of DE at 8.24%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DE's forecasted earnings growth in 2021 as 82.45%, compared to an industry average of 17.1%. For more information on the declaration, record and payment dates, visit the DE Dividend History page.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 18.42% increase over prior dividend payment. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Agribusiness ETF (MOO) ARK Autonomous Technology & Robotics ETF (ARKQ) iShares MSCI Agriculture Producers Fund (VEGI) VanEck Vectors Natural Resources ETF (HAP) First Trust Indxx Global Agriculture ETF (FTAG).
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DE Dividend History page. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Agribusiness ETF (MOO) ARK Autonomous Technology & Robotics ETF (ARKQ) iShares MSCI Agriculture Producers Fund (VEGI) VanEck Vectors Natural Resources ETF (HAP) First Trust Indxx Global Agriculture ETF (FTAG).
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 18.42% increase over prior dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $10.94.
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28c36e1f-4e2f-41ff-a511-f0495de7eb50
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721568.0
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2021-03-28 00:00:00 UTC
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Cathie Wood Owns These 3 Infrastructure Stocks: Should You?
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https://www.nasdaq.com/articles/cathie-wood-owns-these-3-infrastructure-stocks%3A-should-you-2021-03-28
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Cathie Wood's five actively managed ETFs all more than doubled last year, handily beating the respectable 16% gain in the S&P 500. As the CEO of ARK Invest, Wood gained international recognition for her steadfast bullish view on Tesla, but she's made plenty of other winning picks as well.
Coming on the heels of the successful passage of a $1.9 trillion COVID-19 relief package, President Joe Biden's $3 trillion infrastructure bill aims to reform social programs, create jobs, build a green electric grid, expand internet access, and more. Wood's Ark Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ) is chock-full of companies set to capitalize on an economic rebound, including Caterpillar (NYSE: CAT), Deere & Company (NYSE: DE), and Komatsu (OTC: KMTUY). With that, we asked some of our contributors if they thought these three industrial stocks were buys. Here's what they said.
Image source: Getty Images.
Caterpillar's upswing has finally arrived
Daniel Foelber (Caterpillar): Pictures of Biden campaigning through the Midwest surrounded by legacy Caterpillar equipment and a "Build Back Better" banner set the stage for the world's largest construction machinery manufacturer to get to work. Caterpillar is a cyclical business that tends to boom and bust to the tune of the broader economy. To its credit, Caterpillar has done an impressive job diversifying its sales around the world. In fact, over half of its sales are now generated outside North America -- which has helped its performance throughout the pandemic. Caterpillar continues to expand its manufacturing capabilities and product offerings in China, which is one of its hottest growth regions right now.
Caterpillar is mostly known for its construction equipment, which has a clear-cut role to play in building back the economy. But the company's energy and transportation segment has grown significantly over the past few years and benefits from higher oil prices. Due to the strength of its balance sheet, Caterpillar was able to buy Weir Group's oil and gas division at an opportune time last year -- which fits nicely into Caterpillar's well service and drilling products portfolio.
CAT Total Return Level data by YCharts
Even without the infrastructure bill, Caterpillar is forecasting that 2021 will be a year of growth as dealer inventories begin to rise and the company prepares for an upswing in the business cycle. Interrupted by the U.S.-China trade war and then the COVID-19 pandemic, Caterpillar hasn't experienced a sustained boom in nearly 10 years. With over 25 years of consecutive annual dividend raises, Caterpillar has proved its resilience through difficult market cycles. Shares of Caterpillar are near an all-time high as Wall Street buckles in for what could be record revenue and earnings in the coming years. Cathie Wood seems to share this positive outlook. With a 1.9% dividend yield and plenty of growth prospects, Caterpillar's stock is one to watch. Considering its shares have risen over 140% in the past year (and Caterpillar has yet to book the great numbers everyone thinks it will), it may be best to take a wait-and-see approach to make sure Caterpillar can justify its high valuation.
John Deere is also an infrastructure play
Lee Samaha (Deere): Although the company is better known for its iconic agricultural machinery, Deere is also a global leader in road construction equipment and forestry. Back in the pre-pandemic year 2019, its construction and forestry segment was responsible for roughly half as much operating profit as its agriculture and turf segment.
Deere's road construction activities received a boost following the $5.2 billion acquisition of Germany's Wirtgen in 2017. The deal added Wirtgen's milling, processing, paving, compaction, and rehabilitation solutions to Deere's existing strength in excavators and earth-moving equipment. Consequently, Deere is now a leading beneficiary of infrastructural spending on road building and maintenance.
Deere's management already expects its construction and forestry segment sales to increase by 17% to 23% from $8.9 billion in fiscal 2020 to between $10.5 billion and $11 billion in 2021 on the back of a reopening of the global economy.
Meanwhile, its agricultural equipment sales should grow thanks to improving crop prices, a replacement cycle in equipment, and Deere's wildly popular smart farming solutions. All told, 2021 is going to be an excellent year for the company, and an infrastructure bill will be the icing on the cake.
Building a better America with help from the Land of the Rising Sun
Scott Levine (Komatsu): No, you're not experiencing deja vu. The current discussion surrounding the infrastructure bill likely seems familiar because it's a topic that politicians on both sides of the aisle frequently address, whether it's during a campaign or when they're in office. Former President Donald Trump, for example, espoused enthusiasm for infrastructure spending early in his presidency. While Trump's plans didn't come to fruition, though, Biden's recent success with the $1.9 trillion stimulus bill hints that another legislative victory may be possible.
Perhaps that's one of the reasons why Komatsu holds such a prominent position in the Ark Autonomous Technology & Robotics ETF. As of March 25, shares of the construction equipment manufacturer, headquartered in Japan, were the 10th-largest holding in the fund, representing about 3.3%. Should the infrastructure legislation make it to Biden's desk and receive his signature, Komatsu's equipment will undoubtedly be in high demand. From excavators to bulldozers to dump trucks, Komatsu's equipment will be an important element in potential modernization of our bridges, highways, and other infrastructure.
The second-largest construction equipment manufacturer (behind Caterpillar) in terms of global sales, Komatsu has already seen demand for its equipment improve throughout 2020. Whereas North American demand for its construction and mining equipment in the first two months of fiscal 2020, April and May, had plummeted 34% in each month compared to 2019, demand has risen steadily in the subsequent months. In November and December, for example, demand was only down 4% and 1%, respectively, year over year. (The company doesn't disaggregate data for the U.S. market.) Management and shareholders are undoubtedly paying close attention to the improving market demand. In 2019, North America represented the largest market, 26%, of construction, mining, and utility equipment sales. For context, the next two highest markets, Japan and Europe, accounted for 14% and 10% of similar sales, respectively.
For investors who are both interested in following Cathie Wood's lead and intent of finding an infrastructure-related stock, shares of Komatsu can be found in the bargain bin. The stock is currently trading at 8.3 times operating cash flow, a discount to its five- year average multiple of 11.9. Similarly, the stock seems inexpensive in terms of its price-to-sales ratio. Although Komatsu is trading at 1.5 times sales -- slightly higher than its five-year average ratio of 1.2 -- it still seems cheap in comparison to the S&P 500's P/S ratio of 2.8.
10 stocks we like better than Caterpillar
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Caterpillar 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 February 24, 2021
Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool recommends Weir. 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 the CEO of ARK Invest, Wood gained international recognition for her steadfast bullish view on Tesla, but she's made plenty of other winning picks as well. CAT Total Return Level data by YCharts Even without the infrastructure bill, Caterpillar is forecasting that 2021 will be a year of growth as dealer inventories begin to rise and the company prepares for an upswing in the business cycle. The deal added Wirtgen's milling, processing, paving, compaction, and rehabilitation solutions to Deere's existing strength in excavators and earth-moving equipment.
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Caterpillar's upswing has finally arrived Daniel Foelber (Caterpillar): Pictures of Biden campaigning through the Midwest surrounded by legacy Caterpillar equipment and a "Build Back Better" banner set the stage for the world's largest construction machinery manufacturer to get to work. The second-largest construction equipment manufacturer (behind Caterpillar) in terms of global sales, Komatsu has already seen demand for its equipment improve throughout 2020. As the CEO of ARK Invest, Wood gained international recognition for her steadfast bullish view on Tesla, but she's made plenty of other winning picks as well.
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Caterpillar's upswing has finally arrived Daniel Foelber (Caterpillar): Pictures of Biden campaigning through the Midwest surrounded by legacy Caterpillar equipment and a "Build Back Better" banner set the stage for the world's largest construction machinery manufacturer to get to work. John Deere is also an infrastructure play Lee Samaha (Deere): Although the company is better known for its iconic agricultural machinery, Deere is also a global leader in road construction equipment and forestry. The second-largest construction equipment manufacturer (behind Caterpillar) in terms of global sales, Komatsu has already seen demand for its equipment improve throughout 2020.
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John Deere is also an infrastructure play Lee Samaha (Deere): Although the company is better known for its iconic agricultural machinery, Deere is also a global leader in road construction equipment and forestry. The second-largest construction equipment manufacturer (behind Caterpillar) in terms of global sales, Komatsu has already seen demand for its equipment improve throughout 2020. As the CEO of ARK Invest, Wood gained international recognition for her steadfast bullish view on Tesla, but she's made plenty of other winning picks as well.
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f32406b0-1dac-403f-815e-25db5b0a2760
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721569.0
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2021-03-26 00:00:00 UTC
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8 Hot Stocks to Buy for Your Well-Diversified Portfolio
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DE
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https://www.nasdaq.com/articles/8-hot-stocks-to-buy-for-your-well-diversified-portfolio-2021-03-26
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Beyond these hot stocks, the markets have certainly climbed a wall of worry since the coronavirus pandemic hit the U.S. last year around this time.
And there are some sectors where investors are now rotating out of, looking for the next leg up in the markets. That certainly makes sense.
But there are sectors and select stocks that are just warming up. They have plenty left in the tank and will continue to grow briskly in coming quarters. The pandemic actually lit a fuse under these stocks and the transition to the “next normal” will work in their favor.
7 Value Stocks That Will Reward Investors Who Have Some Patience
These eight stocks to buy for your well-diversified portfolio are great additions for anyone looking to add some quality growth stocks to their collection:
Deere & Co (NYSE:DE)
Dolby Laboratories (NYSE:DLB)
Etsy (NASDAQ:ETSY)
Logitech (NASDAQ:LOGI)
Mosaic (NYSE:MOS)
Simply Good Foods (NASDAQ:SMPL)
Thor Industries (NYSE:THO)
Williams Sonoma (NYSE:WSM)
Hot Stocks to Buy: Deere & Co (DE)
Source: mark stephens photography / Shutterstock.com
Nothing runs like a Deere. The slogan has been with the company since 1978.
Now, most companies are changing their slogan every couple years to stay “fresh” and “contemporary.” DE has been around since 1837 doing pretty much what it has always done — build some of the best agricultural, forestry and lawn care equipment in the business.
When you drive through rural areas, especially now that planting season is starting, see how many green and gold tractors are in the fields and lawns.
But selling tractors isn’t cool, right? How about the fact DE stock is up 164% in the past 12 months and it’s still trading at a price-to-earnings ratio of 33x? As hot stocks go, DE is one of the coolest.
Dolby Laboratories (DLB)
DLB) sign and logo at Silicon Valley campus. Dolby Laboratories company specializing in audio noise reduction and audio encoding, compression - Sunnyvale, CA, USA - 2020" width="300" height="169">
Source: Michael Vi / Shutterstock.com
Once the biggest thing in motion pictures, DLB has been able to take its audio technology and equipment and pivot to whole new world of possibilities.
Started by Ray Dolby in 1965, movies with Dolby sound were the mark of excellence for decades. And then Dolby moved to audio devices as well. Dolby sound is now a pedigree that all the top ear buds, laptops, home stereos and home theaters all have now.
It has managed to remain relevant and grow its brand even as new competitors and digital sound have challenged DLB’s dominance.
7 Value Stocks That Will Reward Investors Who Have Some Patience
New remote working mandates will change the workplace long term, and that means re-arming workers with equipment. It also means new demands for in-home entertainment. DE stock is up 38% in the past 12 months, yet it trades at a P/E of 31x.
Etsy (ETSY)
Source: quietbits / Shutterstock.com
This online farmers’ market/designers’ storefront is one of my favorite growth stocks and I continue to think it’s one of the best growth stocks out there, even if it has soared 375% in the past 12 months.
A few years ago, there was concern about how ETSY was going to break through and find a way to grow. As it was reworking its model, new e-commerce stores were flooding the space.
But when the pandemic hit, it really launched ETSY. It was a very hot stock because it pulled in new shoppers as well as new vendors. And the company started helping new vendors build out their sites, so it was easier to launch a store on the platform.
Now ETSY is a real player in the consumer retail space with a $27 billion market cap. It’s here to stay … and grow.
Logitech (LOGI)
LOGI) logo behind a desk with laptops on it" width="300" height="169">
Source: Ismail Sadiron / Shutterstock.com
While some LOGI product is in just about every home with a computer set-up, this Switzerland-based firm has managed to keep a low profile for a long time.
It makes peripherals — headsets, speakers, keyboards etc. — for digital platforms and has always had a very solid reputation in the business. The thing is, this isn’t a flashy sector to operate in, so LOGI usually isn’t making the spotlight.
But the pandemic thrust its product lines into shopping carts. The stock is up 143% in the past 12 months, yet it’s still trading at a P/E of 18x. That goes to show you how undervalued this stock has been.
The Top 10 Trending Reddit Stocks Today
The “new normal” will also be a boon for LOGI, since that means retooling office workspaces and re-equipping them for the next leg in this post-covid world.
Mosaic (MOS)
Source: Shutterstock
Have you ever heard of potash? Basically, it’s potassium that was traditionally derived by soaking plant or wood ash in water. The potassium’s water-soluble nature means it’s great for making fertilizer, glass, ceramics and soap.
Today, potash is mined. But its demand is huge, especially as a fertilizer. MOS is one of the world’s top potash and phosphate manufacturers, with significant exposure in the Brazilian agricultural sector. Brazil is one of the largest non-GMO producers of soybeans in the world.
Food demand remains a growth industry, even when other more cyclical industries fade. And this is especially true now that plant-based meat substitutes are hot.
MOS is the key player for these hot stocks and has been on a quiet run of its own. The stock is up 187% in the past 12 months, yet it’s trading at a P/E of 17x.
Simply Good Foods (SMPL)
Source: melissamn / Shutterstock.com
Part of the new food trends is also lowering carbs — less processed oils, flour and ingredients. More whole foods.
And after the pandemic, there are more than a few people who added a few pandemic pounds while sitting around binge watching The Office for the fifth time.
SMPL makes Atkins and Quest brand health products. In January it reported its Q1 for its fiscal year and it was strong. Sales were up 52% and net income was up 22.5 million versus a $4.8 million loss in the same quarter a year ago. It also raised its guidance for the rest of fiscal 2021.
7 Red-Hot Reddit Penny Stocks Generating Buzz Today
The stock is up 86% in the past 12 months but hasn’t moved much recently. This hot stock is consolidating, which makes it a good buy before Q2 numbers come in in April.
Thor Industries (THO)
Source: Michael Gordon / Shutterstock.com
One thing the pandemic underscored was how great it felt to get outside. And THO is all about that. Recreational vehicle (RV) and boat makers were very hot stocks when the summer rolled around. Largely that was because you could be out with your family or pandemic pals in a controlled environment. And you could take it where you wanted to go.
The thing is, there’s also a new generation of people that have realized that the RV life is a pretty cool thing combined with nearly universal mobile connectivity. Unemployed recent college grads, burnt-out young overachievers and even hipsters have taken to the roads. And they like it.
Thor Industries is one of the leading RV builders, making some of the most sought after brands in the business. THO stock is up 190% in the past 12 months, yet it’s selling at a P/E of 18x. There’s still plenty of road ahead for this one.
Williams Sonoma (WSM)
Source: designs by Jack / Shutterstock.com
While the name might conjure upscale cooking, kitchen and houseware, that’s only one knife in the block for this retailer. It also owns Pottery Barn and West Elm furniture brands.
This was certainly the right space for a pandemic. Can’t go out to eat? Well, why not upgrade your kitchen and dining experience at home? No vacation? Why not redecorate? Whether it was one extra piece here and there, or new cookware sets, money was flowing into WSM.
And WSM has done a very good job with its e-commerce sites as well, in-store sales might have lagged, but online shopping has boomed. It’s one of the hot stocks in upscale retail sector, up 303% in the past 12 months.
7 Growth Stocks to Buy That Cater to New Trends
Yet its Q4 earnings, reported in mid-March, continued to impress. They even beat analysts’ expectations. And the good times will continue to roll as the economy recovers.
On the date of publication, Louis Navellier has positions in ETSY, LOGI, and THO in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post 8 Hot Stocks to Buy for Your Well-Diversified Portfolio appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now, most companies are changing their slogan every couple years to stay “fresh” and “contemporary.” DE has been around since 1837 doing pretty much what it has always done — build some of the best agricultural, forestry and lawn care equipment in the business. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Beyond these hot stocks, the markets have certainly climbed a wall of worry since the coronavirus pandemic hit the U.S. last year around this time. The pandemic actually lit a fuse under these stocks and the transition to the “next normal” will work in their favor.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Beyond these hot stocks, the markets have certainly climbed a wall of worry since the coronavirus pandemic hit the U.S. last year around this time. 7 Value Stocks That Will Reward Investors Who Have Some Patience These eight stocks to buy for your well-diversified portfolio are great additions for anyone looking to add some quality growth stocks to their collection: Deere & Co (NYSE:DE) Dolby Laboratories (NYSE:DLB) Etsy (NASDAQ:ETSY) Logitech (NASDAQ:LOGI) Mosaic (NYSE:MOS) Simply Good Foods (NASDAQ:SMPL) Thor Industries (NYSE:THO) Williams Sonoma (NYSE:WSM) Hot Stocks to Buy: Deere & Co (DE) Source: mark stephens photography / Shutterstock.com Nothing runs like a Deere. The pandemic actually lit a fuse under these stocks and the transition to the “next normal” will work in their favor.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Beyond these hot stocks, the markets have certainly climbed a wall of worry since the coronavirus pandemic hit the U.S. last year around this time. 7 Value Stocks That Will Reward Investors Who Have Some Patience These eight stocks to buy for your well-diversified portfolio are great additions for anyone looking to add some quality growth stocks to their collection: Deere & Co (NYSE:DE) Dolby Laboratories (NYSE:DLB) Etsy (NASDAQ:ETSY) Logitech (NASDAQ:LOGI) Mosaic (NYSE:MOS) Simply Good Foods (NASDAQ:SMPL) Thor Industries (NYSE:THO) Williams Sonoma (NYSE:WSM) Hot Stocks to Buy: Deere & Co (DE) Source: mark stephens photography / Shutterstock.com Nothing runs like a Deere. Etsy (ETSY) Source: quietbits / Shutterstock.com This online farmers’ market/designers’ storefront is one of my favorite growth stocks and I continue to think it’s one of the best growth stocks out there, even if it has soared 375% in the past 12 months.
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As hot stocks go, DE is one of the coolest. Food demand remains a growth industry, even when other more cyclical industries fade. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Beyond these hot stocks, the markets have certainly climbed a wall of worry since the coronavirus pandemic hit the U.S. last year around this time.
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721570.0
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2021-03-26 00:00:00 UTC
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Ex-Dividend Reminder: Monolithic Power Systems, Primoris Services and Deere
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DE
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-monolithic-power-systems-primoris-services-and-deere-2021-03-26
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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/21, Monolithic Power Systems Inc (Symbol: MPWR), Primoris Services Corp (Symbol: PRIM), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Monolithic Power Systems Inc will pay its quarterly dividend of $0.60 on 4/15/21, Primoris Services Corp will pay its quarterly dividend of $0.06 on 4/15/21, and Deere & Co. will pay its quarterly dividend of $0.90 on 5/10/21. As a percentage of MPWR's recent stock price of $330.74, this dividend works out to approximately 0.18%, so look for shares of Monolithic Power Systems Inc to trade 0.18% lower — all else being equal — when MPWR shares open for trading on 3/30/21. Similarly, investors should look for PRIM to open 0.19% lower in price and for DE to open 0.24% lower, all else being equal.
Below are dividend history charts for MPWR, PRIM, and DE, showing historical dividends prior to the most recent ones declared.
Monolithic Power Systems Inc (Symbol: MPWR):
Primoris Services Corp (Symbol: PRIM):
Deere & Co. (Symbol: DE):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.73% for Monolithic Power Systems Inc, 0.74% for Primoris Services Corp, and 0.97% for Deere & Co..
Free Report: Top 7%+ Dividends (paid monthly)
In Friday trading, Monolithic Power Systems Inc shares are currently off about 0.2%, Primoris Services Corp shares are down about 0.2%, and Deere & Co. shares are up about 1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and 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 a percentage of MPWR's recent stock price of $330.74, this dividend works out to approximately 0.18%, so look for shares of Monolithic Power Systems Inc to trade 0.18% lower — all else being equal — when MPWR shares open for trading on 3/30/21. If they do continue, the current estimated yields on annualized basis would be 0.73% for Monolithic Power Systems Inc, 0.74% for Primoris Services Corp, and 0.97% for Deere & Co.. Free Report: Top 7%+ Dividends (paid monthly) In Friday trading, Monolithic Power Systems Inc shares are currently off about 0.2%, Primoris Services Corp shares are down about 0.2%, and Deere & Co. shares are up about 1% on the day. Looking at the universe of stocks we cover at Dividend Channel, on 3/30/21, Monolithic Power Systems Inc (Symbol: MPWR), Primoris Services Corp (Symbol: PRIM), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/21, Monolithic Power Systems Inc (Symbol: MPWR), Primoris Services Corp (Symbol: PRIM), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Monolithic Power Systems Inc will pay its quarterly dividend of $0.60 on 4/15/21, Primoris Services Corp will pay its quarterly dividend of $0.06 on 4/15/21, and Deere & Co. will pay its quarterly dividend of $0.90 on 5/10/21. Monolithic Power Systems Inc (Symbol: MPWR): Primoris Services Corp (Symbol: PRIM): Deere & Co. (Symbol: DE): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/21, Monolithic Power Systems Inc (Symbol: MPWR), Primoris Services Corp (Symbol: PRIM), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Monolithic Power Systems Inc will pay its quarterly dividend of $0.60 on 4/15/21, Primoris Services Corp will pay its quarterly dividend of $0.06 on 4/15/21, and Deere & Co. will pay its quarterly dividend of $0.90 on 5/10/21. If they do continue, the current estimated yields on annualized basis would be 0.73% for Monolithic Power Systems Inc, 0.74% for Primoris Services Corp, and 0.97% for Deere & Co.. Free Report: Top 7%+ Dividends (paid monthly) In Friday trading, Monolithic Power Systems Inc shares are currently off about 0.2%, Primoris Services Corp shares are down about 0.2%, and Deere & Co. shares are up about 1% on the day.
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As a percentage of MPWR's recent stock price of $330.74, this dividend works out to approximately 0.18%, so look for shares of Monolithic Power Systems Inc to trade 0.18% lower — all else being equal — when MPWR shares open for trading on 3/30/21. Monolithic Power Systems Inc (Symbol: MPWR): Primoris Services Corp (Symbol: PRIM): Deere & Co. (Symbol: DE): In general, dividends are not always predictable, following the ups and downs of company profits over time. If they do continue, the current estimated yields on annualized basis would be 0.73% for Monolithic Power Systems Inc, 0.74% for Primoris Services Corp, and 0.97% for Deere & Co.. Free Report: Top 7%+ Dividends (paid monthly) In Friday trading, Monolithic Power Systems Inc shares are currently off about 0.2%, Primoris Services Corp shares are down about 0.2%, and Deere & Co. shares are up about 1% on the day.
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c2fad383-2702-4ec5-adcb-8557c04282a7
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721571.0
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2021-03-25 00:00:00 UTC
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After A Massive 3.4x Rise Has Deere & Company Stock Run Ahead Of Its Valuation?
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https://www.nasdaq.com/articles/after-a-massive-3.4x-rise-has-deere-company-stock-run-ahead-of-its-valuation-2021-03-25
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nan
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After a massive 3.4x rise from its March 2020 lows, at the current price of $372 per share, we believe that Deere & Company stock (NYSE:DE), appears to be fully valued. DE stock has rallied from $111 to $372 off the March 2020 bottom compared to the S&P which moved 75%. DE stock has outperformed the market due to better than expected quarterly results led by increased demand for Agricultural equipment and a faster rebound in construction equipment demand. However, the stock is up a large 233% in the last one year despite revenue falling 5% y-o-y over the last four quarters. While the gradual opening up of the economy is expected to lead to higher demand for construction equipment, the stock appears to be richly valued when compared to its historical levels, making it vulnerable to downside risk. Our dashboard Buy Or Fear Deere & Company Stock provides the key numbers behind our thinking.
DE stock is also up 150% from the levels of $149 seen toward the end of 2018. Most of the stock price growth since 2018 can be attributed to the expansion of the company’s P/E multiple. Looking at fundamentals, total revenues declined 5% from $37.4 billion in fiscal 2018 to $35.5 billion in 2020, primarily due to the impact of Covid-19 on overall equipment sales. However, a 140 bps expansion of net income margin due to lower taxes, and a 1% drop in total shares outstanding, due to share repurchases, has meant that the company’s EPS actually increased 19% to $8.77 in 2020, compared to $7.34 in 2018.
Given the mixed fundamentals, with a decline in revenue but growth in earnings, this resulted in expansion of the company’s P/E multiple from 20x in 2018 to 31x in 2020. The P/E multiple is currently at 42x, which we believe is high and compares with levels of under 17x seen in 2019 and 20x seen in 2018.
Outlook
The coronavirus crisis induced lockdowns and along with increased unemployment and lower oil & gas demand has adversely affected the overall construction activity, weighing on Deere’s top-line growth in fiscal 2020. However, now with the economy gradually opening up, Deere’s businesses are also seeing an increase in demand. The company reported a solid 23% jump in its top-line in fiscal Q1 2021, led by growth in all segments. While an increased spending on agricultural equipment, primarily small tractors, led to a 27% growth in Small Ag & Turf segment revenues during the quarter, the Construction & Forestry segment also saw sales jump 21% y-o-y, driven by both volume gains and higher price realization. Furthermore, the company’s net income margin grew over 2x to 15.2% in fiscal Q1 2021, compared to 6.8% in the prior year quarter. The margin expansion can partly be attributed to lower R&D and SG&A expenses.
Deere will likely see an increase in demand for its products in the near term, as construction activities gain pace. That said, any further recovery in the economy and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia.
While Deere’s Q1 performance was great, we believe that the stock has run ahead of its valuations. Currently, investors seem to be buoyed by Deere’s positive revenue and earnings outlook based on the expected recovery in the economic activity, and that appears to be priced in the current stock price of $372. Now, even if we were to look at forward estimated earnings of $15.72 in fiscal 2021, at the current price of $372, DE stock is trading at 24x its 2021 earnings. This compares with levels of around 20x seen over the recent years. Overall, we believe that Deere will see strong revenue and earnings growth going forward, but investors should wait for better levels to enter, and the stock remains vulnerable to downside risk in the near term, going by the valuations.
While Deere stock could see some correction, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Honeywell vs. Roper Industries.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and 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 gradual opening up of the economy is expected to lead to higher demand for construction equipment, the stock appears to be richly valued when compared to its historical levels, making it vulnerable to downside risk. Outlook The coronavirus crisis induced lockdowns and along with increased unemployment and lower oil & gas demand has adversely affected the overall construction activity, weighing on Deere’s top-line growth in fiscal 2020. Overall, we believe that Deere will see strong revenue and earnings growth going forward, but investors should wait for better levels to enter, and the stock remains vulnerable to downside risk in the near term, going by the valuations.
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DE stock has outperformed the market due to better than expected quarterly results led by increased demand for Agricultural equipment and a faster rebound in construction equipment demand. While the gradual opening up of the economy is expected to lead to higher demand for construction equipment, the stock appears to be richly valued when compared to its historical levels, making it vulnerable to downside risk. After a massive 3.4x rise from its March 2020 lows, at the current price of $372 per share, we believe that Deere & Company stock (NYSE:DE), appears to be fully valued.
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DE stock has outperformed the market due to better than expected quarterly results led by increased demand for Agricultural equipment and a faster rebound in construction equipment demand. While the gradual opening up of the economy is expected to lead to higher demand for construction equipment, the stock appears to be richly valued when compared to its historical levels, making it vulnerable to downside risk. Currently, investors seem to be buoyed by Deere’s positive revenue and earnings outlook based on the expected recovery in the economic activity, and that appears to be priced in the current stock price of $372.
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After a massive 3.4x rise from its March 2020 lows, at the current price of $372 per share, we believe that Deere & Company stock (NYSE:DE), appears to be fully valued. Now, even if we were to look at forward estimated earnings of $15.72 in fiscal 2021, at the current price of $372, DE stock is trading at 24x its 2021 earnings. DE stock has rallied from $111 to $372 off the March 2020 bottom compared to the S&P which moved 75%.
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2021-03-25 00:00:00 UTC
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Deere & Company (NYSE:DE) Passed Our Checks, And It's About To Pay A US$0.90 Dividend
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DE
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https://www.nasdaq.com/articles/deere-company-nyse%3Ade-passed-our-checks-and-its-about-to-pay-a-us%240.90-dividend-2021-03-25
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nan
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Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next four days. You can purchase shares before the 30th of March in order to receive the dividend, which the company will pay on the 10th of May.
Deere's next dividend payment will be US$0.90 per share. Last year, in total, the company distributed US$3.04 to shareholders. Based on the last year's worth of payments, Deere has a trailing yield of 1.0% on the current stock price of $360.91. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Deere has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see Deere paying out a modest 28% of its earnings. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Luckily it paid out just 16% of its free cash flow last year.
It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:DE Historic Dividend March 25th 2021
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Deere's earnings per share have risen 14% per annum over the last five years. Earnings per share are growing rapidly and the company is keeping more than half of its earnings within the business; an attractive combination which could suggest the company is focused on reinvesting to grow earnings further. This will make it easier to fund future growth efforts and we think this is an attractive combination - plus the dividend can always be increased later.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Deere has increased its dividend at approximately 12% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.
The Bottom Line
Is Deere worth buying for its dividend? We love that Deere is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. Overall we think this is an attractive combination and worthy of further research.
In light of that, while Deere has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 2 warning signs for Deere (1 doesn't sit too well with us!) that deserve your attention before investing in the shares.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next four days. This will make it easier to fund future growth efforts and we think this is an attractive combination - plus the dividend can always be increased later. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future.
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Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next four days.
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It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next four days.
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It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next four days.
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717165af-92e1-4039-bb63-b95215c3fde5
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721573.0
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2021-03-23 00:00:00 UTC
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Noteworthy Tuesday Option Activity: RL, DE, ESPR
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-rl-de-espr-2021-03-23
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Ralph Lauren Corp (Symbol: RL), where a total of 7,057 contracts have traded so far, representing approximately 705,700 underlying shares. That amounts to about 60% of RL's average daily trading volume over the past month of 1.2 million shares. Particularly high volume was seen for the $120 strike put option expiring April 16, 2021, with 2,048 contracts trading so far today, representing approximately 204,800 underlying shares of RL. Below is a chart showing RL's trailing twelve month trading history, with the $120 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 11,861 contracts, representing approximately 1.2 million underlying shares or approximately 57.6% of DE's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $360 strike put option expiring March 26, 2021, with 525 contracts trading so far today, representing approximately 52,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $360 strike highlighted in orange:
And Esperion Therapeutics Inc (Symbol: ESPR) options are showing a volume of 3,509 contracts thus far today. That number of contracts represents approximately 350,900 underlying shares, working out to a sizeable 56% of ESPR's average daily trading volume over the past month, of 626,205 shares. Especially high volume was seen for the $22.50 strike put option expiring May 21, 2021, with 2,017 contracts trading so far today, representing approximately 201,700 underlying shares of ESPR. Below is a chart showing ESPR's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
For the various different available expirations for RL options, DE options, or ESPR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $120 strike put option expiring April 16, 2021, with 2,048 contracts trading so far today, representing approximately 204,800 underlying shares of RL. Particularly high volume was seen for the $360 strike put option expiring March 26, 2021, with 525 contracts trading so far today, representing approximately 52,500 underlying shares of DE. Especially high volume was seen for the $22.50 strike put option expiring May 21, 2021, with 2,017 contracts trading so far today, representing approximately 201,700 underlying shares of ESPR.
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Below is a chart showing RL's trailing twelve month trading history, with the $120 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,861 contracts, representing approximately 1.2 million underlying shares or approximately 57.6% of DE's average daily trading volume over the past month, of 2.1 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $360 strike highlighted in orange: And Esperion Therapeutics Inc (Symbol: ESPR) options are showing a volume of 3,509 contracts thus far today. Below is a chart showing ESPR's trailing twelve month trading history, with the $22.50 strike highlighted in orange: For the various different available expirations for RL options, DE options, or ESPR options, visit StockOptionsChannel.com.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Ralph Lauren Corp (Symbol: RL), where a total of 7,057 contracts have traded so far, representing approximately 705,700 underlying shares. Below is a chart showing RL's trailing twelve month trading history, with the $120 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,861 contracts, representing approximately 1.2 million underlying shares or approximately 57.6% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $22.50 strike put option expiring May 21, 2021, with 2,017 contracts trading so far today, representing approximately 201,700 underlying shares of ESPR.
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Below is a chart showing RL's trailing twelve month trading history, with the $120 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,861 contracts, representing approximately 1.2 million underlying shares or approximately 57.6% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $22.50 strike put option expiring May 21, 2021, with 2,017 contracts trading so far today, representing approximately 201,700 underlying shares of ESPR. Below is a chart showing ESPR's trailing twelve month trading history, with the $22.50 strike highlighted in orange: For the various different available expirations for RL options, DE options, or ESPR options, visit StockOptionsChannel.com.
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6f3e2e72-0c4e-4661-8924-627b7711ae3a
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721574.0
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2021-03-22 00:00:00 UTC
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4 Top Stock Trades for Tuesday: SNAP, DE, CP, BOX
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DE
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https://www.nasdaq.com/articles/4-top-stock-trades-for-tuesday%3A-snap-de-cp-box-2021-03-22
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was a slow and methodical grind higher for most of Monday, as investors kickoff the last full trading week of March. That said, let’s look at a few top stock trades as we look toward the rest of the week.
Top Stock Trades for Tomorrow No. 1: Snap (SNAP)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Snap (NYSE:SNAP) was one the best-trading stocks in the fourth quarter. That momentum carried into 2021 as shares surged to new highs in February. However, it’s been wavering a bit since.
Monday’s dip down toward the 21-week moving average is being bought aggressively, as shares hammer higher from the mid-$50s. However, we need to see some sort of rotation, particularly with potential resistance just above the stock price.
Specifically, I want to see Snap rotate over Monday’s high and close above the 10-week and 50-day moving averages. If it can clear $60, then the 21-day moving average and that troubling $65 area is on the table.
8 SPACs That Are Worth a Gamble
If shares fail to reclaim the 10-week and 50-day, then Monday’s low remains vulnerable, while a test of the 100-day moving average remains on the table. A close below that could put $48 to $50 in play should Snap come under heavy selling pressure.
Top Stock Trades for Tomorrow No. 2: Deere (DE)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Deere (NYSE:DE) has been a very impressive performer, surging about 270% from the March 2020 low. Not many would have expected such a big move from an old company like this.
Yet, here we are.
Shares are giving us a quick but orderly pullback to the 10-day moving average amid a strong upward trend. For most bulls, pullbacks are buying opportunities until the trend fails.
If the 10-day fails, perhaps the stock will need more time. A longer-term dip toward $335 and the 50-day moving average would be attractive too. But for now, we’ll take what we can get, which is a short-term dip to short-term support.
Top Stock Trades for Tomorrow No. 3: Canadian Pacific (CP)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Canadian Pacific (NYSE:CP) isn’t often talked about when it comes to trading candidates. However, after it scooped up Kansas City Southern (NYSE:KSU) in a $25 billion deal, it became a talking point.
Like Deere, Canadian Pacific has been a great trend trade. The 50-day and 10-week moving averages have done a good job keeping CP stock afloat — and “afloat” is a good word in this case.
These support level aren’t like stiff beams that provide an instant bounce. Instead, they’re like a trampoline, allowing the stock to sink below them before ricocheting higher.
The 50-day moving average is often stressed in this case, but the 100-day has gone without a test in several quarters. Testing down into the former level now, what can investors expect?
The acquisition adds a bit more uncertainty to the price action. However, I’d be looking for a potential decline into uptrend support. Should it fail, look for support at $350 and the 100-day moving average.
7 Meme Stocks to Buy After the Roblox IPO
No matter where support comes into play — whether it’s right now or slightly lower — look for a rotation back over the 21-day moving average. That could put the $380 area on the table, followed by a test of the highs.
Top Trades for Tomorrow No. 4: Box (BOX)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Speaking of mergers and acquisitions (M&A), Box (NYSE:BOX) is reportedly exploring a sale, hence Monday’s spike. And where did that spike send the stock?
Right to the 161.8% extension.
Shares did a great job breaking out over that $21 level earlier this month, then holding it as support. That’s really the only confirmation bulls needed, although it helps that it held the 10-day moving average on that dip as well.
From here, let’s see if Box can continue to hold the 10-day, as well as the prior high near $22. The longer the stock stays above these marks, the better our odds are that it will climb back beyond $25.
A close above the 161.8% extension could put $30-plus in play.
On the date of publication, Bret Kenwell held a long position in DE.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Tuesday: SNAP, DE, CP, BOX 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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Top Stock Trades for Tomorrow No. Click to Enlarge Source: Chart courtesy of TrendSpider Deere (NYSE:DE) has been a very impressive performer, surging about 270% from the March 2020 low. Click to Enlarge Source: Chart courtesy of TrendSpider Canadian Pacific (NYSE:CP) isn’t often talked about when it comes to trading candidates.
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Top Stock Trades for Tomorrow No. Click to Enlarge Source: Chart courtesy of TrendSpider Snap (NYSE:SNAP) was one the best-trading stocks in the fourth quarter. Click to Enlarge Source: Chart courtesy of TrendSpider Deere (NYSE:DE) has been a very impressive performer, surging about 270% from the March 2020 low.
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Top Stock Trades for Tomorrow No. The post 4 Top Stock Trades for Tuesday: SNAP, DE, CP, BOX appeared first on InvestorPlace. That said, let’s look at a few top stock trades as we look toward the rest of the week.
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Top Stock Trades for Tomorrow No. The post 4 Top Stock Trades for Tuesday: SNAP, DE, CP, BOX appeared first on InvestorPlace. That said, let’s look at a few top stock trades as we look toward the rest of the week.
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3126acd0-2a99-42c0-8561-7f3f703991f3
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721575.0
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2021-03-18 00:00:00 UTC
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Interesting DE Put And Call Options For May 21st
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DE
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https://www.nasdaq.com/articles/interesting-de-put-and-call-options-for-may-21st-2021-03-18
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Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new May 21st contracts and identified one put and one call contract of particular interest.
The put contract at the $350.00 strike price has a current bid of $6.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $350.00, but will also collect the premium, putting the cost basis of the shares at $343.40 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $390.04/share today.
Because the $350.00 strike represents an approximate 10% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.89% return on the cash commitment, or 10.75% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $350.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $410.00 strike price has a current bid of $11.30. If an investor was to purchase shares of DE stock at the current price level of $390.04/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $410.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.01% if the stock gets called away at the May 21st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $410.00 strike highlighted in red:
Considering the fact that the $410.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.90% boost of extra return to the investor, or 16.52% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $390.04) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $410.00 strike highlighted in red: Considering the fact that the $410.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 21st expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $410.00 strike highlighted in red: Considering the fact that the $410.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new May 21st contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $350.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $410.00 strike price has a current bid of $11.30. Below is a chart showing DE's trailing twelve month trading history, with the $410.00 strike highlighted in red: Considering the fact that the $410.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new May 21st contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $410.00 strike highlighted in red: Considering the fact that the $410.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 21st expiration.
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0d0c393a-1937-43b1-b023-631631279b5b
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721576.0
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2021-03-12 00:00:00 UTC
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Notable Friday Option Activity: DE, COUP, IMMR
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DE
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-de-coup-immr-2021-03-12
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 12,389 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 55.8% of DE's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $370 strike call option expiring March 19, 2021, with 774 contracts trading so far today, representing approximately 77,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $370 strike highlighted in orange:
Coupa Software Inc (Symbol: COUP) options are showing a volume of 7,439 contracts thus far today. That number of contracts represents approximately 743,900 underlying shares, working out to a sizeable 55.5% of COUP's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $500 strike call option expiring January 21, 2022, with 1,140 contracts trading so far today, representing approximately 114,000 underlying shares of COUP. Below is a chart showing COUP's trailing twelve month trading history, with the $500 strike highlighted in orange:
And Immersion Corp (Symbol: IMMR) saw options trading volume of 7,368 contracts, representing approximately 736,800 underlying shares or approximately 54.4% of IMMR's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $12.50 strike call option expiring March 19, 2021, with 4,111 contracts trading so far today, representing approximately 411,100 underlying shares of IMMR. Below is a chart showing IMMR's trailing twelve month trading history, with the $12.50 strike highlighted in orange:
For the various different available expirations for DE options, COUP options, or IMMR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $370 strike call option expiring March 19, 2021, with 774 contracts trading so far today, representing approximately 77,400 underlying shares of DE. Especially high volume was seen for the $500 strike call option expiring January 21, 2022, with 1,140 contracts trading so far today, representing approximately 114,000 underlying shares of COUP. Especially high volume was seen for the $12.50 strike call option expiring March 19, 2021, with 4,111 contracts trading so far today, representing approximately 411,100 underlying shares of IMMR.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 12,389 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $370 strike highlighted in orange: Coupa Software Inc (Symbol: COUP) options are showing a volume of 7,439 contracts thus far today. Below is a chart showing COUP's trailing twelve month trading history, with the $500 strike highlighted in orange: And Immersion Corp (Symbol: IMMR) saw options trading volume of 7,368 contracts, representing approximately 736,800 underlying shares or approximately 54.4% of IMMR's average daily trading volume over the past month, of 1.4 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 12,389 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $370 strike call option expiring March 19, 2021, with 774 contracts trading so far today, representing approximately 77,400 underlying shares of DE. Below is a chart showing COUP's trailing twelve month trading history, with the $500 strike highlighted in orange: And Immersion Corp (Symbol: IMMR) saw options trading volume of 7,368 contracts, representing approximately 736,800 underlying shares or approximately 54.4% of IMMR's average daily trading volume over the past month, of 1.4 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 12,389 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $500 strike call option expiring January 21, 2022, with 1,140 contracts trading so far today, representing approximately 114,000 underlying shares of COUP. Below is a chart showing COUP's trailing twelve month trading history, with the $500 strike highlighted in orange: And Immersion Corp (Symbol: IMMR) saw options trading volume of 7,368 contracts, representing approximately 736,800 underlying shares or approximately 54.4% of IMMR's average daily trading volume over the past month, of 1.4 million shares.
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e25a6d2b-ca06-48c7-a97a-7ed2e9a939d4
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721577.0
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2021-03-10 00:00:00 UTC
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AVs and the Technological Breakthroughs Creating New Industries, Transforming Old Ones, Generating Wealth
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DE
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https://www.nasdaq.com/articles/avs-and-the-technological-breakthroughs-creating-new-industries-transforming-old-ones
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cars that drive themselves.
Source: Shutterstock
Machines that think like humans.
Batteries that power everything from cell phones to airplanes.
These are the kinds of technologies people think about when looking into the future.
They don’t think about tractors.
But that’s the cool thing about the Roaring 2020s.
These breakthroughs touch everything. They create new industries and transform old ones.
That’s why I think the decade will bring some of the best opportunities investors ever see.
Take the story of a 184-year-old company that began with a new way to plow dirt and is now moving headlong into advanced technology.
Companies everywhere must do the same.
Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980.
AVs are going to reshape the American landscape. How you vacation, where you live, even the way we design our cities and neighborhoods will change.
With this much at stake, many of the world’s smartest, richest, most powerful entrepreneurs, investors, and corporations are working day and night to make early and strong entrances into this market that will one day be massive.
I have no doubt the winners of this race will see their stocks advance 10-fold … 20-fold … even 100-fold over the coming decade … taking investors along for the ride of their lives.
But autonomous driving technology isn’t just for cars. It isn’t even just for busses, or trains, or airplanes.
More than 70 years before Henry Ford introduced the Model T, a blacksmith by the name of John Deere saw a broken steel sawmill blade and had an idea. Farmers had to constantly stop working to knock dirt off their cast-iron plows. Deere thought that if the plows were made of polished steel, the dirt would slide off and make farming a whole lot easier.
Deere & Company (NYSE:DE) began in 1837 with what was a “high tech” plow at the time, and you know the rest of the story. It grew into one of the world’s biggest companies that manufactures all kinds of equipment for agriculture, construction, lawn care, and more.
Deere continues to embrace innovation and is now focused on new technology that will reshape the company and its industry. The company itself says it is transforming from a “machinery company” into a “smart technology company.”
Investors like what they see. The stock has jumped 140% in the last 12 months — which included a pandemic and bear market — giving the company a valuation over $110 billion.
I got to see some of what Deere is up to a little over a year ago at the Consumer Electronics Show (CES) in Las Vegas. I’m more of a city boy, so I can’t say I’ve done a lot of farming or lawn care in my time, but what I saw was cool.
The company is focused on three main areas of innovation …
Electric power: The days of tractors growling through the fields and belching smoke into the air are coming to an end. “Electrification is not just about replacing the fuel tank; it’s about replacing the complete engine,” said Martin Kremmer of the John Deere European Technology Center.
This results in zero emissions, low maintenance costs, and increased efficiency and productivity. Efficiency and productivity will improve even more as next-generation batteries are rolled out.
The coming breakthrough battery technology will power all electric vehicles of the future. Deere recognizes its importance … and so do smart investors. That makes now the time to get in position for the biggest profits.
Autonomy: Yes, tractors will drive themselves one day. In fact, some believe tractors might get there before cars because they operate in open fields instead of crowded streets.
But in this case, autonomy means more than self-driving. For example, Deere is developing autonomous ways to spray crops. One way is through drones, which would house a scanner that identifies weeds and automatically triggers a pesticide spray when needed. (The drones would also rely on battery power.)
Artificial intelligence (AI): High-resolution cameras take 20 pictures per second, and using AI, the system “learns” the difference between weeds and crops. It then sprays weed killer where needed instead of blanketing an entire field. That’s better for the environment, more effective for the farmer, and cheaper to boot.
With this kind of innovation occurring in industry after industry, you can see why I believe the Roaring 2020s will be a decade for the investing record books.
Several once-in-a-generation technologies are converging at the same time and transforming virtually every aspect of our lives — from healthcare to instant communication to robotics to electric power and much more. Even an industry like farming, which you could say is as old as dirt, is becoming “smart.”
The impact these technologies have on the global economy will one day dwarf the internet. To make money, you want to invest in companies leading the way. And to make the big money, you want to do it soon … while it’s still early.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now.
The post AVs and the Technological Breakthroughs Creating New Industries, Transforming Old Ones, Generating Wealth 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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More than 70 years before Henry Ford introduced the Model T, a blacksmith by the name of John Deere saw a broken steel sawmill blade and had an idea. That’s why I think the decade will bring some of the best opportunities investors ever see. Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980.
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Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980. That’s why I think the decade will bring some of the best opportunities investors ever see. How you vacation, where you live, even the way we design our cities and neighborhoods will change.
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Deere continues to embrace innovation and is now focused on new technology that will reshape the company and its industry. That’s why I think the decade will bring some of the best opportunities investors ever see. Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980.
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Autonomous vehicles (AVs) — or self-driving cars — will change the way we get around in ways we haven’t seen since Henry Ford introduced the Model T in 1980. That’s why I think the decade will bring some of the best opportunities investors ever see. How you vacation, where you live, even the way we design our cities and neighborhoods will change.
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b35a9635-58fb-46d4-b0e4-0cf50f0233a6
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721578.0
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2021-03-08 00:00:00 UTC
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DE Crosses Above Average Analyst Target
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DE
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https://www.nasdaq.com/articles/de-crosses-above-average-analyst-target-2021-03-08
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nan
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nan
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $348.57, changing hands for $349.83/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 14 different analyst targets contributing to that average for Deere & Co., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $210.00. And then on the other side of the spectrum one analyst has a target as high as $400.00. The standard deviation is $62.105.
But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DE crossing above that average target price of $348.57/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $348.57 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Deere & Co.:
RECENT DE ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 10 9 7 6
Buy ratings: 2 2 2 2
Hold ratings: 4 4 4 4
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 1 1
Average rating: 1.79 1.84 1.96 2.04
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DE — FREE.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $348.57, changing hands for $349.83/share. But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DE crossing above that average target price of $348.57/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $348.57 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $348.57, changing hands for $349.83/share. But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level.
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When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. And so with DE crossing above that average target price of $348.57/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $348.57 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $348.57, changing hands for $349.83/share.
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Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised. There are 14 different analyst targets contributing to that average for Deere & Co., but the average is just that — a mathematical average. And then on the other side of the spectrum one analyst has a target as high as $400.00.
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a769da6d-8319-4274-9605-0d048e2b45dd
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721579.0
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2021-03-05 00:00:00 UTC
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Notable Friday Option Activity: ABBV, DE, QCOM
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DE
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-abbv-de-qcom-2021-03-05
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.3% of ABBV's average daily trading volume over the past month, of 6.9 million shares. Particularly high volume was seen for the $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 8,819 contracts thus far today. That number of contracts represents approximately 881,900 underlying shares, working out to a sizeable 42.1% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $380 strike call option expiring April 16, 2021, with 1,357 contracts trading so far today, representing approximately 135,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $380 strike highlighted in orange:
And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 58,219 contracts, representing approximately 5.8 million underlying shares or approximately 41.4% of QCOM's average daily trading volume over the past month, of 14.1 million shares. Particularly high volume was seen for the $135 strike call option expiring March 26, 2021, with 2,560 contracts trading so far today, representing approximately 256,000 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $135 strike highlighted in orange:
For the various different available expirations for ABBV options, DE options, or QCOM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. Especially high volume was seen for the $380 strike call option expiring April 16, 2021, with 1,357 contracts trading so far today, representing approximately 135,700 underlying shares of DE. Particularly high volume was seen for the $135 strike call option expiring March 26, 2021, with 2,560 contracts trading so far today, representing approximately 256,000 underlying shares of QCOM.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,819 contracts thus far today. Below is a chart showing DE's trailing twelve month trading history, with the $380 strike highlighted in orange: And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 58,219 contracts, representing approximately 5.8 million underlying shares or approximately 41.4% of QCOM's average daily trading volume over the past month, of 14.1 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. Below is a chart showing DE's trailing twelve month trading history, with the $380 strike highlighted in orange: And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 58,219 contracts, representing approximately 5.8 million underlying shares or approximately 41.4% of QCOM's average daily trading volume over the past month, of 14.1 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. Below is a chart showing DE's trailing twelve month trading history, with the $380 strike highlighted in orange: And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 58,219 contracts, representing approximately 5.8 million underlying shares or approximately 41.4% of QCOM's average daily trading volume over the past month, of 14.1 million shares.
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0af945f1-e466-41d3-952e-726565371f6e
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721580.0
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2021-03-05 00:00:00 UTC
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3 Industrial Stocks That Are Ignoring the Sell-Off
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DE
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https://www.nasdaq.com/articles/3-industrial-stocks-that-are-ignoring-the-sell-off-2021-03-05
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Panic was in the air this week. The interest-rate hobgoblins came out of the closet to haunt investors everywhere. Well, not everywhere. Oil stocks cared not a whit for the drama. Nor did industrial stocks. In fact, both of these sectors were where traders went to hide. I’m intrigued by the buoyancy from the industrial sector and will shine a spotlight on three strong stocks to buy.
Equities flexing their muscles during times of turmoil are easy to see. Just sort your watchlist by percentage change. They’re the few darlings sitting in the green when everything else is red. From a charting perspective, outperformance appears when prices remain above support and key moving averages while everything else melts down.
9 Cheap Stocks That Look Like a Bargain
Industrials score high marks on both fronts. The sector has stood tall this week, allowing its chart to stay above the rising 20-day moving average. Here are my three favorite setups in the space:
Caterpillar (NYSE:CAT)
Deere (NYSE:DE)
Emerson (NYSE:EMR)
After a closer inspection of each chart, I’ll reveal an options trade you can use to bank profits.
Industrial Stocks: Caterpillar (CAT)
Source: The thinkorswim® platform from TD Ameritrade
Let’s start with a logic chain. The underpinning of surging interest rates is inflation. Inflation pressures are rising because commodity prices are climbing. Commodity prices are climbing because global growth expectations are lifting. And do you know who thrives on global growth? Cyclical stocks like Caterpillar.
The past week of selling appears nothing more than a garden variety pullback for CAT stock. What’s more, the prior advance saw a sharp uptick in momentum and a quartet of accumulation days. With institutions heavily favoring the feline, the wind is at the back of buyers, and higher prices are more likely than lower ones.
The Trade: Buy the May $220/$230 bull call spread for $3.80.
You’re risking $3.80 to capture $6.20 potentially.
Deere (DE)
Source: The thinkorswim® platform from TD Ameritrade
Deere is following in Caterpillar’s footsteps. Indeed, their price charts boast many similarities. DE stock’s last upswing had some serious firepower behind it, thanks to an impressive earnings report. Its top and bottom-line growth had buyers eagerly snatching up shares, and I can’t see them completely abandoning shares in light of a little interest rate scare.
Plus, for all its fury, the past week of selling delivered a textbook three candle retracement. The profit-taking was mild compared to the previous ascent. DE was up seven days in a row preceding the drop, so it arguably needed to cool.
9 Cheap Stocks That Look Like a Bargain
Thursday saw a test of the rising 20-day moving average the ultimately succeeded. Buyers swooped in to maintain the integrity of the short-term trend. If you’re looking for dips to shop, this one belongs at the top of your list.
The Trade: Buy the June $340/$360 bull call for $8.50.
You’re risking $8.50 to capture $11.50 potentially.
Emerson (EMR)
Source: The thinkorswim® platform from TD Ameritrade
Emerson Electric rounds out our trio of industrial stocks to buy. The market’s temper tantrum hasn’t affected the EMR chart one bit. In fact, while the S&P 500 was getting torched on Thursday, EMR was tagging a record high. The outperformance is again on full display this morning. While the broad market is sinking, EMR is up 1%.
Whatever is spooking stocks at large is having zero impact on investor appetite for Emerson. And that’s a fact that demands attention for strength seekers.
The typical volatility or past behavior of EMR’s price trend seems to lend itself to position trading over swing trading. The uptrend has been slow and steady. I like buying more time with a call spread to give the stock plenty of runway to continue ascending.
The Trade: Buy the June $90/$95 bull call for $2.
You’re risking $2 to capture $3 potentially.
On the date of publication, Tyler Craig did not have (either directly or indirectly) any positions in the securities mentioned in this article.
For a free trial to the best trading community on the planet and Tyler’s current home, click here!
The post 3 Industrial Stocks That Are Ignoring the Sell-Off 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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Industrial Stocks: Caterpillar (CAT) Source: The thinkorswim® platform from TD Ameritrade Let’s start with a logic chain. In fact, both of these sectors were where traders went to hide. Here are my three favorite setups in the space: Caterpillar (NYSE:CAT) Deere (NYSE:DE) Emerson (NYSE:EMR) After a closer inspection of each chart, I’ll reveal an options trade you can use to bank profits.
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Here are my three favorite setups in the space: Caterpillar (NYSE:CAT) Deere (NYSE:DE) Emerson (NYSE:EMR) After a closer inspection of each chart, I’ll reveal an options trade you can use to bank profits. Industrial Stocks: Caterpillar (CAT) Source: The thinkorswim® platform from TD Ameritrade Let’s start with a logic chain. Emerson (EMR) Source: The thinkorswim® platform from TD Ameritrade Emerson Electric rounds out our trio of industrial stocks to buy.
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Here are my three favorite setups in the space: Caterpillar (NYSE:CAT) Deere (NYSE:DE) Emerson (NYSE:EMR) After a closer inspection of each chart, I’ll reveal an options trade you can use to bank profits. Emerson (EMR) Source: The thinkorswim® platform from TD Ameritrade Emerson Electric rounds out our trio of industrial stocks to buy. In fact, both of these sectors were where traders went to hide.
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Emerson (EMR) Source: The thinkorswim® platform from TD Ameritrade Emerson Electric rounds out our trio of industrial stocks to buy. In fact, both of these sectors were where traders went to hide. Here are my three favorite setups in the space: Caterpillar (NYSE:CAT) Deere (NYSE:DE) Emerson (NYSE:EMR) After a closer inspection of each chart, I’ll reveal an options trade you can use to bank profits.
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1e5e7617-9eb5-4479-b868-53e2abf7e433
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721581.0
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2021-03-04 00:00:00 UTC
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Is Corteva Stock a Buy Right Now?
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DE
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https://www.nasdaq.com/articles/is-corteva-stock-a-buy-right-now-2021-03-04
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nan
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nan
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The stock of agriscience company Corteva (NYSE: CTVA) is a battleground. Actually, it's a near-term battle on two fronts. Not only is there debate around the company's ability to meet its earnings targets, but there's also a concerted attempt by activist hedge fund Starboard Value to change the management of the company. That said, the long-term prospects look very good, but are the long-term prospects for this company worth overlooking these short-term fights? Let's take a closer look.
The investment case for Corteva stock
Corteva is a company created out of the DowDuPont merger. DuPont's agribusiness generated 70% of its revenue from seeds, with crop protection products making up the rest. Meanwhile, the Dow business was 80% crop protection and 20% seeds and traits. Put together, the Corteva business is 55% seeds and traits and 45% crop protection.
The case for the stock is based on the idea that significant structural cost savings (closing manufacturing plants and rationalizing the supply chain) can be generated by the merger, alongside productivity enhancements such as improving IT systems.
Image source: Getty Images.
In the long term, Corteva also has an opportunity to improve margins by increasing the portion of sales coming from products under its own patents, thereby reducing the royalty payments it has to make to other companies.
For example, Starboard points out that Corteva generated $7.6 billion in sales in its seed segment in 2019 with a 20.2% earnings, before interest, taxation, depreciation, and amortization (EBITDA) margin of 20.2% so EBITDA was around $1.54 billion. However, it had to pay around $560 million (7.4% of seed segment sales) in royalty payments. Clearly, there's an opportunity to cut the share of sales going in royalty payments by introducing/ramping sales of its own patented products.
A good example of Corteva's own technology would be its Enlist-branded soybean seeds and crop protection system. These are complementary products because the soybean traits are resistant to the herbicides (crop protection), meaning the latter can be applied to control weeds and improve soybean yield. Corteva management believes Enlist soybean seeds can reach 50% of the market because of their resistance to Enlist herbicides, as well as BASF's Liberty (glufosinate) and Bayer's Roundup (glyphosate).
Meanwhile, the seed's main rival, Bayer's Xtend, is resistant to Roundup and Bayer's Dicamba. However, Dicamba is seen as problematic due to its tendency to drift and damage non-resistant crops in neighboring fields. That's something that could give Enlist a competitive edge provided its yields match up to Xtend's in the field.
Putting it all together, management believes it can improve earnings before interest, taxes, depreciation, and amortization (EBITDA) by 12%-16% a year from 2019. It's a target laid out at the end of 2019, and CEO Jim Collins recently affirmed it during the fourth-quarterearnings callin early February.
There's a problem
Unfortunately, by management's own admission, company performance hasn't been what it could have recently. As such, hitting its earnings targets will not be a walk in the park. For example, on the recentearnings callCollins said "I am not satisfied with our relatively flat earnings over the past three years."
He went on to say, "We recognize that our 2020 performance was not where we need to be in terms of realizing the full operating leverage from organic growth and productivity programs in our earnings."
Indeed, the performance means management needs to increase EBITDA by around $360 million in 2021 and $500 million in 2022 just to make the midpoint of its guidance.
CORTEVA
2019
2020
2021 GUIDANCE*
2022 IMPLIED MIDTERM GUIDANCE**
EBITDA
$1.99 billion
$2.09 billion
$2.4 billion to $2.5 billion
$2.8 billion to $3.1 billion
Increase
($85 million)
$100 million
$313 million to $413 million
$292 million to $701 million
Data source: Corteva presentations, author's analysis. *Based on recent full-year 2021 guidance. **Based on midterm guidance.
This performance hasn't escaped the interest of Starboard Value, which made an initial investment in Corteva in 2019. Indeed, in a letter to Corteva's board in January, Starboard CEO Jeffrey Smith expressed his "increasing dismay as management continues to take credit for achieving ever-increasing synergy milestones without consequent improvement in profitability." Smith went on to describe Collins' tenure as "incredibly disappointing" with a track record "littered with missed expectations and promises."
What's needed now
Clearly, management is under some pressure, and Wall Street analysts have Corteva's EBITDA at around $2.81 billion in 2022 -- a figure just above the bottom of the implied guidance range.
A soybean field. Image source: Getty Images.
Collins argues that the productivity and manufacturing savings will start to kick in for the crop protection operations in 2021, while on the seed and traits side Corteva should see strong demand from an improving market.
Meanwhile, Collins expects a "noticeable improvement in net royalty expense" as Corteva ramps up sales and increases the share "of those sales that are in Corteva germplasm." In particular, the Enlist system is seen as leading a shift toward Corteva's proprietary-based sales. That will be good for profit margin and therefore earnings growth
Is Corteva a buy?
The case for a significant improvement in earnings is compelling, even if it's at a level that won't satisfy Starboard Value. Meanwhile, the recent earnings and market commentary from Deere confirms an improving environment for U.S. crop farmers. As such, Corteva looks set for a strong 2021, and the potential to grow Enlist sales and reduce royalty payments is significant.
If you are willing to tolerate some potential volatility in the event Corteva has to walk back its midterm guidance and Starboard continues to agitate, the stock remains attractive for long-term investors. Trading on less than 20 times estimated 2022 earnings and with significant potential for long-term growth, with or without Starboard, Corteva looks like a good value.
10 stocks we like better than Corteva Inc.
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Corteva Inc. 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 February 24, 2021
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The case for the stock is based on the idea that significant structural cost savings (closing manufacturing plants and rationalizing the supply chain) can be generated by the merger, alongside productivity enhancements such as improving IT systems. Indeed, in a letter to Corteva's board in January, Starboard CEO Jeffrey Smith expressed his "increasing dismay as management continues to take credit for achieving ever-increasing synergy milestones without consequent improvement in profitability." Collins argues that the productivity and manufacturing savings will start to kick in for the crop protection operations in 2021, while on the seed and traits side Corteva should see strong demand from an improving market.
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For example, Starboard points out that Corteva generated $7.6 billion in sales in its seed segment in 2019 with a 20.2% earnings, before interest, taxation, depreciation, and amortization (EBITDA) margin of 20.2% so EBITDA was around $1.54 billion. Corteva management believes Enlist soybean seeds can reach 50% of the market because of their resistance to Enlist herbicides, as well as BASF's Liberty (glufosinate) and Bayer's Roundup (glyphosate). Not only is there debate around the company's ability to meet its earnings targets, but there's also a concerted attempt by activist hedge fund Starboard Value to change the management of the company.
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For example, Starboard points out that Corteva generated $7.6 billion in sales in its seed segment in 2019 with a 20.2% earnings, before interest, taxation, depreciation, and amortization (EBITDA) margin of 20.2% so EBITDA was around $1.54 billion. Not only is there debate around the company's ability to meet its earnings targets, but there's also a concerted attempt by activist hedge fund Starboard Value to change the management of the company. The case for the stock is based on the idea that significant structural cost savings (closing manufacturing plants and rationalizing the supply chain) can be generated by the merger, alongside productivity enhancements such as improving IT systems.
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Corteva management believes Enlist soybean seeds can reach 50% of the market because of their resistance to Enlist herbicides, as well as BASF's Liberty (glufosinate) and Bayer's Roundup (glyphosate). Indeed, the performance means management needs to increase EBITDA by around $360 million in 2021 and $500 million in 2022 just to make the midpoint of its guidance. Not only is there debate around the company's ability to meet its earnings targets, but there's also a concerted attempt by activist hedge fund Starboard Value to change the management of the company.
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48991cc1-87be-4f36-acf9-17205d3652fe
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721582.0
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2021-03-03 00:00:00 UTC
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IVV, GE, IBM, DE: ETF Outflow Alert
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DE
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https://www.nasdaq.com/articles/ivv-ge-ibm-de%3A-etf-outflow-alert-2021-03-03
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $640.2 million dollar outflow -- that's a 0.3% decrease week over week (from 652,900,000 to 651,250,000). Among the largest underlying components of IVV, in trading today General Electric Co (Symbol: GE) is up about 3.4%, International Business Machines Corp (Symbol: IBM) is up about 0.2%, and Deere & Co. (Symbol: DE) is lower by about 1.6%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.47. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.47. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.47. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $640.2 million dollar outflow -- that's a 0.3% decrease week over week (from 652,900,000 to 651,250,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $640.2 million dollar outflow -- that's a 0.3% decrease week over week (from 652,900,000 to 651,250,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.47. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $640.2 million dollar outflow -- that's a 0.3% decrease week over week (from 652,900,000 to 651,250,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.47. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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f77ea96d-0da8-42fe-ad4e-d532789f6c39
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721583.0
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2021-03-02 00:00:00 UTC
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Is John Deere Actually a Tech Stock?
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DE
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https://www.nasdaq.com/articles/is-john-deere-actually-a-tech-stock-2021-03-02
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nan
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nan
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Deere & Co. (NYSE: DE) doesn't tend to get the attention that high-flying tech stocks get, but that's not due to mediocre performance. The construction and farm equipment maker has been a strong performer over the past year, and has a lot more in common with those tech stocks than most appreciate.
During this appearance on Motley Fool Live, recorded on Feb. 19, Motley Fool contributor Lou Whiteman discusses Deere's quarter with "The Wrap" host Jason Hall and Fool.com contributor Brian Withers and explains Deere's underappreciated tech credentials.
10 stocks we like better than Deere & Company
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company 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 February 24, 2021
Lou Whiteman: We're The Motley Fool. We pick good stocks. We spend a lot of time talking about tech companies, high performers, so perhaps when you see a stock up 100% over the last year, up 23% so far in 2021, big deal. Maybe it doesn't make you go wow, but if I told you that that stock was a 184-year-old company, Deere & Co., now maybe I have your attention.
Deere's shares were up; last I checked, more than 10% today after just a really great earnings report. The company beat earnings-per-share estimates by $1.71 per share, and that's almost 80% ahead of expectation. Deere generated net income in the quarter of $1.2 billion. That's more than double the $517 million figure from a year prior. Strength is everywhere right now. We've got farm equipment, construction equipment, small tractors, turf equipment. They're playing the housing boom. They're playing a pretty good cycle in agriculture; they're playing construction. Everything is working. Deere also boosted its guidance for the full year in 2021 by $1 billion to $4.6 billion to $5 billion. Managements is bullish on all of its end markets; it really thinks it's going to be a good year for North American foreign buyers.
So we get back to the original question. Maybe we should think of Deere as a tech stock. It's investing millions in robotics, millions on automation, and for my money, we've talked about this already today, but I see autonomous tractors in the field well before we see robotaxis on the road. The economic incentives are there. The risks are a lot lower having a tractor in a field versus a car on the road. Deere is currently one of the five largest holdings in the ARK Autonomous and Robotics ETF (NYSEMKT: ARKQ), so it's got Cathie Woods blessing as a tech stock as well. When I think of John Deere, I still think of a tractor maker, but perhaps it's time to think of Deere as a tech stock and a pretty attractive one too because they're going well right now.
Brian Withers has no position in any of the stocks mentioned. Jason Hall has no position in any of the stocks mentioned. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Co. (NYSE: DE) doesn't tend to get the attention that high-flying tech stocks get, but that's not due to mediocre performance. We spend a lot of time talking about tech companies, high performers, so perhaps when you see a stock up 100% over the last year, up 23% so far in 2021, big deal. Deere is currently one of the five largest holdings in the ARK Autonomous and Robotics ETF (NYSEMKT: ARKQ), so it's got Cathie Woods blessing as a tech stock as well.
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During this appearance on Motley Fool Live, recorded on Feb. 19, Motley Fool contributor Lou Whiteman discusses Deere's quarter with "The Wrap" host Jason Hall and Fool.com contributor Brian Withers and explains Deere's underappreciated tech credentials. We spend a lot of time talking about tech companies, high performers, so perhaps when you see a stock up 100% over the last year, up 23% so far in 2021, big deal. Deere & Co. (NYSE: DE) doesn't tend to get the attention that high-flying tech stocks get, but that's not due to mediocre performance.
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During this appearance on Motley Fool Live, recorded on Feb. 19, Motley Fool contributor Lou Whiteman discusses Deere's quarter with "The Wrap" host Jason Hall and Fool.com contributor Brian Withers and explains Deere's underappreciated tech credentials. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. When I think of John Deere, I still think of a tractor maker, but perhaps it's time to think of Deere as a tech stock and a pretty attractive one too because they're going well right now.
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During this appearance on Motley Fool Live, recorded on Feb. 19, Motley Fool contributor Lou Whiteman discusses Deere's quarter with "The Wrap" host Jason Hall and Fool.com contributor Brian Withers and explains Deere's underappreciated tech credentials. Maybe we should think of Deere as a tech stock. Deere & Co. (NYSE: DE) doesn't tend to get the attention that high-flying tech stocks get, but that's not due to mediocre performance.
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2021-02-27 00:00:00 UTC
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John Deere's Stock Just Hit an All-Time High: Here's How It Got There
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https://www.nasdaq.com/articles/john-deeres-stock-just-hit-an-all-time-high%3A-heres-how-it-got-there-2021-02-27
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John Deere (NYSE: DE) can do no wrong. That's pretty much how investors must see it right now as the stock continues to post all-time highs. Moreover, Wall Street analysts rushed to raise their price targets after a very strong set of first-quarter earnings results. Here's what happened and why the stock can go even higher in the future.
Deere's smart farming solutions are leading to higher average selling prices for its large agricultural equipment sales. Image source: Getty Images.
1. Raised guidance
Before getting into the details, investors should pause and reflect on the startling hike in full-year 2021 guidance given on the earnings call. This sort of thing can often happen with highly cyclical companies like Deere, where earnings surprise on the upside on the way up and then on the downside on the way down.
FULL YEAR 2021 GUIDANCE
CURRENT
AT NOVEMBER
Net income
$4.6 billion to $5 billion
$3.6 billion to $4 billion
Effective tax rate
24%-26%
26%-28%
Net operating cash flow
$4.6 billion to $5 billion
$3.8 billion to $4.2 billion
Data source: Deere presentations.
2. Strength across all segments
Having formerly reported out of two segments, namely agriculture and turf and construction and forestry, Deere has split the agriculture and turf segment and created two new segments as a consequence. The good news is that all of Deere's segments are improving, so the company is not overly reliant on any one segment or business line.
In the table below, I have the old agriculture and turf segment for easier comparison. It shows how the two new segments compare to guidance from the older segment
SALES GROWTH GUIDANCE
CURRENT
AT NOVEMBER
Production and precision ag
$15.5 billion to $16.5 billion
N/A
Small ag and turf
$10.5 billion to $11.5 billion
N/A
Agriculture and turf (total)
$26 billion to $28 billion*
$24.6 billion to $25.7 billion
Construction and forestry
$10.5 billion to $11 billion
$9.4 billion to $9.8 billion
Data source: Deere presentations, author's analysis.
Focusing on the construction and forestry segment for the moment, Deere's manager of investor communication, Brent Norwood, cited the strength in the U.S. housing market as the main reason for an improvement in earthmoving and compact equipment sales as well as " a modest recovery from trough conditions in the oil and gas sector." Meanwhile, a recovery in lumber demand has boosted prospects for forestry-related sales.
3. Deere proved the doubters wrong on the cycle
There's been plenty of debate around the question of just where Deere is in the cycle of peaks and troughs in spending on agriculture equipment.
However, given the earnings and guidance upgrade, it's clear that Deere isn't about to hit a peak anytime soon. Indeed, management thinks it's just above the mid-cycle for large agriculture equipment.
It's been a long time coming, but it appears that Deere's large agriculture equipment sales are finally starting to come through. Indeed, Director of Investor Relations Joshua Jepsen said the strong order book is "a good indicator of the replacement demand that we've been expecting and have thought we would see over the last couple of years coming to fruition here."
As such, investors in Deere can hope that the upswing in the cycle will at least extend into 2022.
4. Deere's smart farming solutions
In addition to replacement demand kicking in, Deere's large agriculture equipment sales are also receiving a boost and growth in profitability due to its growing range of precision agriculture, or smart farming, solutions. These are digital technologies that use real-time data points to help farmers make the right decisions on everything from preparing the soil and seed planting to nurturing and harvesting.
Integrating these smart technologies is helping to differentiate Deere's equipment offerings, and it's also helping to increase the average selling prices of Deere's large agriculture equipment, according to Jepsen. Moreover, CFO Ryan Campbell outlined that the adoption of smart technologies meant that Deere was selling relatively more software as a share of equipment sales. That's something likely to push margins higher.
5. Precision agriculture will grow worldwide
Finally, Deere is very far from reaching a stage of maturity with its precision agriculture sales. There's a growth opportunity through increasing the adoption rate in North America, and the rest of the world is highly likely to follow the lead in adoption. Jepsen highlighted the "potential impact of regulatory environments" on demand in Europe.
Image source: Getty Images.
In addition, Deere is far from finished developing smart farming solutions for farmers. For example, the company recently bought farm profitability software company Harvest Profit in order to increase the range of its offerings.
Looking ahead
Putting it all together paints a picture of a company still in the mid-cycle of an upswing. Deere is seeing an increase in sales and margin through the cycle as a result of proprietary technology that's providing direct use to its customers. That's something that could drive the stock still higher in 2021.
10 stocks we like better than Deere & Company
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company 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 20, 2020
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Focusing on the construction and forestry segment for the moment, Deere's manager of investor communication, Brent Norwood, cited the strength in the U.S. housing market as the main reason for an improvement in earthmoving and compact equipment sales as well as " a modest recovery from trough conditions in the oil and gas sector." Indeed, Director of Investor Relations Joshua Jepsen said the strong order book is "a good indicator of the replacement demand that we've been expecting and have thought we would see over the last couple of years coming to fruition here." Moreover, CFO Ryan Campbell outlined that the adoption of smart technologies meant that Deere was selling relatively more software as a share of equipment sales.
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Deere's smart farming solutions are leading to higher average selling prices for its large agricultural equipment sales. Agriculture and turf (total) $26 billion to $28 billion* $24.6 billion to $25.7 billion Construction and forestry $10.5 billion to $11 billion $9.4 billion to $9.8 billion Data source: Deere presentations, author's analysis. Integrating these smart technologies is helping to differentiate Deere's equipment offerings, and it's also helping to increase the average selling prices of Deere's large agriculture equipment, according to Jepsen.
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Net income $4.6 billion to $5 billion $3.6 billion to $4 billion Effective tax rate 24%-26% 26%-28% Net operating cash flow $4.6 billion to $5 billion $3.8 billion to $4.2 billion Data source: Deere presentations. Agriculture and turf (total) $26 billion to $28 billion* $24.6 billion to $25.7 billion Construction and forestry $10.5 billion to $11 billion $9.4 billion to $9.8 billion Data source: Deere presentations, author's analysis. Deere's smart farming solutions In addition to replacement demand kicking in, Deere's large agriculture equipment sales are also receiving a boost and growth in profitability due to its growing range of precision agriculture, or smart farming, solutions.
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Deere's smart farming solutions are leading to higher average selling prices for its large agricultural equipment sales. Deere's smart farming solutions In addition to replacement demand kicking in, Deere's large agriculture equipment sales are also receiving a boost and growth in profitability due to its growing range of precision agriculture, or smart farming, solutions. John Deere (NYSE: DE) can do no wrong.
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2021-02-25 00:00:00 UTC
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These 7 Hot Stocks Should Stay Strong on Earnings Through 2021
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https://www.nasdaq.com/articles/these-7-hot-stocks-should-stay-strong-on-earnings-through-2021-2021-02-25
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With earnings season winding down, it’s time to look at what the results portend for a list of hot stocks that I believe are worthy of investment now.
The results show that the fourth quarter of 2020 is the first final period since Q4 2019 to show year-over-year earnings growth. More S&P 500 Index companies beat earnings estimates for the period and they did so with a wider margin than average, according to FactSet.
“Analysts expect double-digit earnings growth for all four quarters of 2021,” FactSet’s Senior Earnings Analyst John Butters wrote earlier this month.
8 Risky Stocks to Buy If Danger Is Your Middle Name
So, with 2020 earnings pretty much as prologue, let’s look at the seven hot stocks with forward earnings momentum:
Apple (NASDAQ:AAPL)
Disney (NYSE:DIS)
Deere & Co. (NYSE:DE)
Applied Materials (NASDAQ:AMAT)
Taiwan Semiconductor Manufacturing Co. (NYSE:TSM)
DraftKings (NASDAQ:DKNG)
American Tower Corp (NASDAQ:TSLA)
Hot Stocks: Apple (AAPL)
AAPL) logo on an Apple store in Santa Monica, California." width="300" height="169">Source: View Apart / Shutterstock.com
Any article about earnings, hot stocks and staying strong, ought to begin with Apple. I can’t imagine Apple doing anything but staying strong through 2021. It remains one of the strongest and brightest companies in the U.S., and indeed in the world.
Back on Jan. 27., when Apple’s quarterly earnings announcement came out, it was a record one. Apple posted all-time high revenues of $111.4 billion with sales that were boosted by its significant international exposure. In fact, 64% of revenues were attributable to foreign sales during the record quarter. That helped boost revenues to 21% higher than those in the same quarter of the previous year.
Earnings per share of AAPL stock was strong, as could be expected on such massive revenues. EPS blew past expectations of $1.42 per share, surprising by 35% at $1.68 a share.
Although the iPhone accounted for the majority of Apple’s revenues in the Q4, it wasn’t actually the biggest gainer. That distinction goes to the iPad which accounted for $8.44 billion in revenue, growing by 41% in quarter.
Still, the iPhone was by far Apple’s most important revenue source, bringing in 58.56% of the quarterly revenues. Apple did this despite serious issues in the procurement of vital semiconductors for its iPhone 12.
Under CEO Tim Cook, Apple will use its savvy and position to power through easily and remain very strong in the coming quarters.
Disney (DIS)
DIS) Mickey Mouse in Bangkok, Thailand." width="300" height="169">Source: spiderman777 / Shutterstock.com
Disney’s 2020 was a story of one massive success set against a loss caused by unavoidable externalities. This of course refers to the great success of Disney’s streaming services juxtaposed against the shuttering of its parks amid the pandemic.
Direct-to-consumer revenue hit $3.5 billion for the quarter, representing a 73% increase. Operating losses there continued to improve although still significant at $466 million. Across the board at Disney+, Hulu, and ESPN+ Disney saw increasing subscriptions, yet higher costs.
Disney+ has become a massive success for the company, having grown to 94.9 million paid subscribers. The channel had only 26.5 million at the end of 2019.
The one spot of contention is that while subscriptions are rising rapidly across Disney’s DTC assets, Disney+ revenue per subscriber declined by 28%. This is attributable to Disney’s expansion strategy in certain markets and follows sound rationale in expanding its global presence.
7 Safe Stocks to Buy for Your Retirement
The other side of the coin has been what has happened with Disney’s parks. The catalyst for the decline is obvious: the pandemic. In the last quarter of 2019 parks accounted for $2.522 billion in revenue. The same period a year later resulted in a loss of $119 million.
Despite the serious operational roadblocks Disney has faced in the past year, DIS stock has still gained 32.15%. That’s why I believe Disney is only going to grow stronger moving forward. The obvious catalyst is right there.
Deere & Co. (DE)
Source: mark stephens photography / Shutterstock.com
Deere started 2021 on a “strongly positive note,” CEO John C. May told shareholders earlier this month. How strongly positive? In the first quarter of 2020 (January end), Deere posted net income of $517 million. A year later that figure ballooned to $1.224 billion.
The positive news resulted in the company raising its full-year earnings forecast to $5.0 billion from $4.6 billion. Of course, with success follows the pressure to achieve at greater and greater levels.
Further, the company has blown past EPS expectations in each of the last four quarters. Meanwhile, DE stock has doubled in value over the last 12 months, including a 28.5% gain since the start of the year.
One of the most impressive things about that massive jump in net income is that it was done while revenues increased a comparatively modest 19% during the same period. That’s right, John Deere managed to increase net income by 137% while top line revenue rose by only 19%.
The company attributes this to a strategic shift toward an organizational focus on operating with greater speed and agility. Clearly that strategy works. Operational efficiency led to 137% more on the bottom line form 19% more on the top line.
The company anticipates a strengthening year in relation to the agricultural and construction sectors. The company’s increased efficiency should keep it strong throughout the year.
Applied Materials (AMAT)
Source: michelmond / Shutterstock.com
Applied Materials jumped by $10 per share to $123 after releasing its earnings report a few days ago. A big reason for that was the fact that AMAT stock was bolstered by a quarter in which sales rose 24% year-over-year to $5.162 billion. Margins also rose by 0.9% which translated to a net income increase of 27% on the 24% increase in sales.
This, all amid a period during which Applied Materials can continue to really move forward. That’s because the tech maker supplies an industry very much in need of what it supplies. The company makes tools necessary in the production of semiconductors. There is an ongoing semiconductor shortage which is hitting a broad variety of companies but is especially acute in tech and automotive.
8 Risky Stocks to Buy If Danger Is Your Middle Name
The semiconductor industry largely operates on an outsourced manufacturing model whereby many companies design chips in-house to be manufactured elsewhere. This so-called fabless production is providing a boon to companies which require Applied Materials’ tools. Regardless of the manufacturing business model, semiconductor companies are seeking to ramp up production to meet the demand.
Therefore, AMAT stock sits in enviable territory. However, Applied Materials’ CFO Daniel Durn believes the growth opportunity is just getting started at his firm, stating that the growth will last for perhaps a decade or more.
Taiwan Semiconductor Manufacturing (TSM)
Source: Sundry Photography / Shutterstock.com
Taiwan Semiconductor is a company that should be on pretty much everyone’s watch list in my opinion.
As I mentioned above that Applied Materials is in a strong position for the fact that it supplies semiconductor manufacturers. Taiwan Semiconductor is the most important of those chip makers.
Taiwan Semi has a 57%global marketshare of the semiconductor foundry business. That means that of all of the semiconductor companies that currently operate by designing chips, 57% of such chips are manufactured by TSM.
Thus, TSM stock is in ideal position given the massive push to satisfy demand during the semiconductor shortage.
TSM’s Q4 earnings were strong. The company reported a 22% increase in revenue, at $12.68 billion.
The company is responding to the shortage by increasing spending to improve capacity by 50% this year. It plans to spend $28 billion in that effort.
TSM stock has risen 145% in the last year and it looks to be in as strong a position as ever based on market dynamics and industry reliance on it as a foundry. Analyst ratings for the stock are overwhelmingly ‘buy’.
DraftKings (DKNG)
Source: Lori Butcher / Shutterstock.com
DraftKings recently got a bump when Oppenheimer analyst Jed Kelly raised his target price on DKNG stock to $80 from $65 based on anticipation that the sports betting site will outperform on expectations around revenues. DKNG shares currently trade around $60, but analyst price targets run as high as $100 a share.
The company has a lot of growth prospects in the burgeoning sports betting world. Back in Q3, the company reported 42% YoY pro forma growth and revenues of $133 million.
7 Safe Stocks to Buy for Your Retirement
Online sports betting is a largely nascent industry with important revenue-producing states, including Virginia and Michigan, having recently come online. There are estimates that the addition of those two states could allow it to generate sales topping $1 billion.
DKNG stock has risen 262% from just under $17 per share at this time last year, fueled by more people staying home with time and disposable income on their hands.
American Tower REIT (AMT)
Source: Pavel Kapysh / Shutterstock.com
I believe American Tower REIT shares will remain strong after earnings on Feb. 25. AMT stock is essentially flat over the past three months but has seen a lot of movement up and down during that period.
In any case, American Tower REIT remains a company situated in position to capitalize off of the build out of 5G both across the U.S. and internationally. Pundits anticipated that 2020 would be the year in which 5G really took root across the U.S. Of course, externalities changed that narrative, pushing back the rollout.
Much of the talk surrounding 5G gravitates toward the battle for contracts between Huawei, Ericsson (NASDAQ:ERIC), and Nokia (NYSE:NOK). While this battle remains central to the 5G story, other areas of the next-generation communication tech are worth exploring.
That’s why American Tower REIT is interesting. The company maintains towers across five continents and should get a boost following the pandemic. Analyst target prices average over $275, while AMT stock sits below $230 a share. That difference probably prices in the delay in the 5G roll out but nevertheless indicates Wall Street’s perception of the company.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post These 7 Hot Stocks Should Stay Strong on Earnings Through 2021 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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Under CEO Tim Cook, Apple will use its savvy and position to power through easily and remain very strong in the coming quarters. More S&P 500 Index companies beat earnings estimates for the period and they did so with a wider margin than average, according to FactSet. 8 Risky Stocks to Buy If Danger Is Your Middle Name So, with 2020 earnings pretty much as prologue, let’s look at the seven hot stocks with forward earnings momentum: Apple (NASDAQ:AAPL) Disney (NYSE:DIS) Deere & Co. (NYSE:DE) Applied Materials (NASDAQ:AMAT) Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) DraftKings (NASDAQ:DKNG) American Tower Corp (NASDAQ:TSLA) Hot Stocks: Apple (AAPL) AAPL) logo on an Apple store in Santa Monica, California."
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8 Risky Stocks to Buy If Danger Is Your Middle Name So, with 2020 earnings pretty much as prologue, let’s look at the seven hot stocks with forward earnings momentum: Apple (NASDAQ:AAPL) Disney (NYSE:DIS) Deere & Co. (NYSE:DE) Applied Materials (NASDAQ:AMAT) Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) DraftKings (NASDAQ:DKNG) American Tower Corp (NASDAQ:TSLA) Hot Stocks: Apple (AAPL) AAPL) logo on an Apple store in Santa Monica, California." 8 Risky Stocks to Buy If Danger Is Your Middle Name The semiconductor industry largely operates on an outsourced manufacturing model whereby many companies design chips in-house to be manufactured elsewhere. More S&P 500 Index companies beat earnings estimates for the period and they did so with a wider margin than average, according to FactSet.
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8 Risky Stocks to Buy If Danger Is Your Middle Name So, with 2020 earnings pretty much as prologue, let’s look at the seven hot stocks with forward earnings momentum: Apple (NASDAQ:AAPL) Disney (NYSE:DIS) Deere & Co. (NYSE:DE) Applied Materials (NASDAQ:AMAT) Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) DraftKings (NASDAQ:DKNG) American Tower Corp (NASDAQ:TSLA) Hot Stocks: Apple (AAPL) AAPL) logo on an Apple store in Santa Monica, California." 8 Risky Stocks to Buy If Danger Is Your Middle Name The semiconductor industry largely operates on an outsourced manufacturing model whereby many companies design chips in-house to be manufactured elsewhere. More S&P 500 Index companies beat earnings estimates for the period and they did so with a wider margin than average, according to FactSet.
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More S&P 500 Index companies beat earnings estimates for the period and they did so with a wider margin than average, according to FactSet. 8 Risky Stocks to Buy If Danger Is Your Middle Name So, with 2020 earnings pretty much as prologue, let’s look at the seven hot stocks with forward earnings momentum: Apple (NASDAQ:AAPL) Disney (NYSE:DIS) Deere & Co. (NYSE:DE) Applied Materials (NASDAQ:AMAT) Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) DraftKings (NASDAQ:DKNG) American Tower Corp (NASDAQ:TSLA) Hot Stocks: Apple (AAPL) AAPL) logo on an Apple store in Santa Monica, California." It remains one of the strongest and brightest companies in the U.S., and indeed in the world.
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2021-02-25 00:00:00 UTC
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Deere Ramps Up Quarterly Dividend By 18%
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https://www.nasdaq.com/articles/deere-ramps-up-quarterly-dividend-by-18-2021-02-25
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Deere hiked its quarterly common stock dividend by 18% to $0.90 per share. Shares of the manufacturing company spiked almost 2.5% to close at $345.66 on Feb. 24.
Deere (DE) announced that the new dividend will be paid on May 10, to shareholders of record as of March 31.
The company’s annual dividend of $3.60 per share now reflects a dividend yield of 1.04%.
Deere CEO John C. May said, “The dividend increase is a reflection of Deere’s recent strong performance and it shows our confidence in the company’s future direction.”
Last week, Deere reported fiscal first-quarter results. The company’s 1Q earnings more than doubled to $3.87 per share on a year-over-year basis and beat the Street estimates of $2.14 per share. Revenues jumped 19% to $9.1 billion and surpassed the consensus estimate of $7.21 billion. For fiscal 2021, the company projects net income to be in the range of $4.6 billion to $5 billion. (See Deere stock analysis on TipRanks)
On Feb. 23, Merrill Lynch analyst Ross Gilardi increased the stock’s price target to $395 (14.3% upside potential) from $330 and reiterated a Buy rating “to reflect the upside revision in outlook.”
Gilardi anticipates “the market to continue looking forward to mid cycle earnings power after the breakout Ag & Turf performance in 2H’20 and expected meeting of mid cycle targets early.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 14 analysts suggesting a Buy, 3 analysts recommending a Hold, and 1 analyst suggesting a Sell. The average analyst price target of $349.94 implies 1% upside potential to current levels. Shares have increased almost 33% over the past three months.
Deere scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Related News:
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Installed Building Initiates Quarterly Dividend; Street Is Bullish
Allstate Ramps Up Quarterly Dividend By 50%; Street Sees 20% Upside
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(See Deere stock analysis on TipRanks) On Feb. 23, Merrill Lynch analyst Ross Gilardi increased the stock’s price target to $395 (14.3% upside potential) from $330 and reiterated a Buy rating “to reflect the upside revision in outlook.” Gilardi anticipates “the market to continue looking forward to mid cycle earnings power after the breakout Ag & Turf performance in 2H’20 and expected meeting of mid cycle targets early.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. The average analyst price target of $349.94 implies 1% upside potential to current levels. Related News: Waste Management Ramps Up Quarterly Dividend By 5.5%; Street Sees 17% Upside Installed Building Initiates Quarterly Dividend; Street Is Bullish Allstate Ramps Up Quarterly Dividend By 50%; Street Sees 20% Upside The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(See Deere stock analysis on TipRanks) On Feb. 23, Merrill Lynch analyst Ross Gilardi increased the stock’s price target to $395 (14.3% upside potential) from $330 and reiterated a Buy rating “to reflect the upside revision in outlook.” Gilardi anticipates “the market to continue looking forward to mid cycle earnings power after the breakout Ag & Turf performance in 2H’20 and expected meeting of mid cycle targets early.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. The average analyst price target of $349.94 implies 1% upside potential to current levels. Related News: Waste Management Ramps Up Quarterly Dividend By 5.5%; Street Sees 17% Upside Installed Building Initiates Quarterly Dividend; Street Is Bullish Allstate Ramps Up Quarterly Dividend By 50%; Street Sees 20% Upside The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere CEO John C. May said, “The dividend increase is a reflection of Deere’s recent strong performance and it shows our confidence in the company’s future direction.” Last week, Deere reported fiscal first-quarter results. (See Deere stock analysis on TipRanks) On Feb. 23, Merrill Lynch analyst Ross Gilardi increased the stock’s price target to $395 (14.3% upside potential) from $330 and reiterated a Buy rating “to reflect the upside revision in outlook.” Gilardi anticipates “the market to continue looking forward to mid cycle earnings power after the breakout Ag & Turf performance in 2H’20 and expected meeting of mid cycle targets early.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. Related News: Waste Management Ramps Up Quarterly Dividend By 5.5%; Street Sees 17% Upside Installed Building Initiates Quarterly Dividend; Street Is Bullish Allstate Ramps Up Quarterly Dividend By 50%; Street Sees 20% Upside The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere hiked its quarterly common stock dividend by 18% to $0.90 per share. The company’s annual dividend of $3.60 per share now reflects a dividend yield of 1.04%. (See Deere stock analysis on TipRanks) On Feb. 23, Merrill Lynch analyst Ross Gilardi increased the stock’s price target to $395 (14.3% upside potential) from $330 and reiterated a Buy rating “to reflect the upside revision in outlook.” Gilardi anticipates “the market to continue looking forward to mid cycle earnings power after the breakout Ag & Turf performance in 2H’20 and expected meeting of mid cycle targets early.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating.
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7862565a-8f26-4711-a55c-18c2f141c670
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721587.0
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2021-02-24 00:00:00 UTC
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Daily Dividend Report: DE,UNH,MORN,CMA,TMO
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DE
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https://www.nasdaq.com/articles/daily-dividend-report%3A-deunhmorncmatmo-2021-02-24
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nan
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nan
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The Deere Board of Directors today increased the company's quarterly dividend to $.90 per share on common stock. The dividend is payable May 10, 2021, to stockholders of record on March 31, 2021. The new quarterly rate represents an additional 14 cents per share over the previous level - an increase of approximately 18 percent. "The dividend increase is a reflection of Deere's recent strong performance and it shows our confidence in the company's future direction," said John C. May, chairman and chief executive officer.
The UnitedHealth Group board of directors has authorized payment of a cash dividend of $1.25 per share, to be paid on March 23, 2021, to all shareholders of record of UnitedHealth Group common stock as of the close of business on March 15, 2021.
The board of directors of Morningstar, a leading provider of independentinvestment research today declared a quarterly dividend of 31.5 cents per share. The dividend is payable April 30, 2021 to shareholders of record as of April 9, 2021.
The Board of Directors of Comerica declared a quarterly cash dividend for common stock of 68 cents per share. The dividend is payable April 1, 2021, to common stock shareholders of record at the close of business on March 15, 2021.
Thermo Fisher Scientific, the world leader in serving science, today announced that its Board of Directors has authorized a quarterly cash dividend of $0.26 per common share, payable on April 16, 2021, to shareholders of record as of March 16, 2021. This reflects an 18% increase over the previous dividend payment of $0.22.
VIDEO: Daily Dividend Report: DE,UNH,MORN,CMA,TMO
The views and 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 dividend increase is a reflection of Deere's recent strong performance and it shows our confidence in the company's future direction," said John C. May, chairman and chief executive officer. The board of directors of Morningstar, a leading provider of independentinvestment research today declared a quarterly dividend of 31.5 cents per share. Thermo Fisher Scientific, the world leader in serving science, today announced that its Board of Directors has authorized a quarterly cash dividend of $0.26 per common share, payable on April 16, 2021, to shareholders of record as of March 16, 2021.
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The Deere Board of Directors today increased the company's quarterly dividend to $.90 per share on common stock. The Board of Directors of Comerica declared a quarterly cash dividend for common stock of 68 cents per share. Thermo Fisher Scientific, the world leader in serving science, today announced that its Board of Directors has authorized a quarterly cash dividend of $0.26 per common share, payable on April 16, 2021, to shareholders of record as of March 16, 2021.
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The Deere Board of Directors today increased the company's quarterly dividend to $.90 per share on common stock. The UnitedHealth Group board of directors has authorized payment of a cash dividend of $1.25 per share, to be paid on March 23, 2021, to all shareholders of record of UnitedHealth Group common stock as of the close of business on March 15, 2021. Thermo Fisher Scientific, the world leader in serving science, today announced that its Board of Directors has authorized a quarterly cash dividend of $0.26 per common share, payable on April 16, 2021, to shareholders of record as of March 16, 2021.
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The Deere Board of Directors today increased the company's quarterly dividend to $.90 per share on common stock. The Board of Directors of Comerica declared a quarterly cash dividend for common stock of 68 cents per share. Thermo Fisher Scientific, the world leader in serving science, today announced that its Board of Directors has authorized a quarterly cash dividend of $0.26 per common share, payable on April 16, 2021, to shareholders of record as of March 16, 2021.
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1e40e7b8-a22d-4c57-86d5-eb8529abc4e0
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721588.0
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2021-02-23 00:00:00 UTC
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Notable ETF Inflow Detected - IVV, MS, BLK, DE
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DE
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-ivv-ms-blk-de-2021-02-23
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.6 billion dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 646,200,000 to 652,900,000). Among the largest underlying components of IVV, in trading today Morgan Stanley (Symbol: MS) is up about 0.1%, Blackrock Inc (Symbol: BLK) is down about 1%, and Deere & Co. (Symbol: DE) is lower by about 1.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.66. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.66. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Morgan Stanley (Symbol: MS) is up about 0.1%, Blackrock Inc (Symbol: BLK) is down about 1%, and Deere & Co. (Symbol: DE) is lower by about 1.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.66. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.6 billion dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 646,200,000 to 652,900,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.6 billion dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 646,200,000 to 652,900,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.66. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.6 billion dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 646,200,000 to 652,900,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $395.65 as the 52 week high point — that compares with a last trade of $385.66. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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bddbd5f2-bbde-4120-a625-9d07511e4241
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721589.0
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2021-02-21 00:00:00 UTC
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Deere Pops 10% As 1Q Profit More Than Doubles
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DE
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https://www.nasdaq.com/articles/deere-pops-10-as-1q-profit-more-than-doubles-2021-02-21
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nan
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nan
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Deere’s shares surged 9.9% on Feb. 19 as the manufacturing company posted better-than-expected fiscal first-quarter results. The company’s new operating strategy and a 23% rise in net sales drove the earnings beat.
Deere’s (DE) 1Q earnings more than doubled to $3.87 per share on a year-over-year basis and beat the Street estimates of $2.14 per share. Revenues jumped 19% to $9.1 billion and surpassed the consensus estimate of $7.21 billion.
The company’s net sales from equipment operations came in at $8.1 billion, up 23% year-over-year, driven by improving conditions in the farm and construction sectors.
For fiscal 2021, the company projects net income to be in a range of $4.6 billion to $5 billion. (See Deere stock analysis on TipRanks)
Deere CEO John C. May commented, “As our recent performance shows, these steps are leading to improved efficiencies and helping the company target its resources and investments on areas that have the greatest impact.”
Following the 4Q results, Oppenheimer analyst Kristen Owen reiterated a Buy rating and a price target of $331 on the stock.
“The company saw improved volumes across the portfolio, with favorable mix and strong price realization driving margin expansion in each segment,” Owen commented in a note to investors.
“With the separation of its Ag & Turf portfolio into two distinct segments,” the analyst expects “greater visibility into precision ag uptake and DE’s ability to price for higher tech content, as well as providing a potential roadmap for migration into the Construction portfolio.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 12 analysts suggesting a Buy, 3 analysts recommending a Hold, and 1 analyst suggesting a Sell. The average analyst price target of $319.93 implies 3% downside potential to current levels. Shares have increased 28.6% over the past three months.
Deere scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Related News:
CAE’s Quarterly Profit Lags Estimates Amid Air Travel Slump
Moody’s Posts Better-Than-Expected 4Q Revenue But Profit Disappoints
Lincoln Electric Posts Better-Than-Expected Quarterly Profit; Street Sees 5% Upside
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(See Deere stock analysis on TipRanks) Deere CEO John C. May commented, “As our recent performance shows, these steps are leading to improved efficiencies and helping the company target its resources and investments on areas that have the greatest impact.” Following the 4Q results, Oppenheimer analyst Kristen Owen reiterated a Buy rating and a price target of $331 on the stock. “With the separation of its Ag & Turf portfolio into two distinct segments,” the analyst expects “greater visibility into precision ag uptake and DE’s ability to price for higher tech content, as well as providing a potential roadmap for migration into the Construction portfolio.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. Deere’s shares surged 9.9% on Feb. 19 as the manufacturing company posted better-than-expected fiscal first-quarter results.
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Deere’s shares surged 9.9% on Feb. 19 as the manufacturing company posted better-than-expected fiscal first-quarter results. (See Deere stock analysis on TipRanks) Deere CEO John C. May commented, “As our recent performance shows, these steps are leading to improved efficiencies and helping the company target its resources and investments on areas that have the greatest impact.” Following the 4Q results, Oppenheimer analyst Kristen Owen reiterated a Buy rating and a price target of $331 on the stock. Related News: CAE’s Quarterly Profit Lags Estimates Amid Air Travel Slump Moody’s Posts Better-Than-Expected 4Q Revenue But Profit Disappoints Lincoln Electric Posts Better-Than-Expected Quarterly Profit; Street Sees 5% Upside The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(See Deere stock analysis on TipRanks) Deere CEO John C. May commented, “As our recent performance shows, these steps are leading to improved efficiencies and helping the company target its resources and investments on areas that have the greatest impact.” Following the 4Q results, Oppenheimer analyst Kristen Owen reiterated a Buy rating and a price target of $331 on the stock. “With the separation of its Ag & Turf portfolio into two distinct segments,” the analyst expects “greater visibility into precision ag uptake and DE’s ability to price for higher tech content, as well as providing a potential roadmap for migration into the Construction portfolio.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. Related News: CAE’s Quarterly Profit Lags Estimates Amid Air Travel Slump Moody’s Posts Better-Than-Expected 4Q Revenue But Profit Disappoints Lincoln Electric Posts Better-Than-Expected Quarterly Profit; Street Sees 5% Upside The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere’s shares surged 9.9% on Feb. 19 as the manufacturing company posted better-than-expected fiscal first-quarter results. Deere’s (DE) 1Q earnings more than doubled to $3.87 per share on a year-over-year basis and beat the Street estimates of $2.14 per share. (See Deere stock analysis on TipRanks) Deere CEO John C. May commented, “As our recent performance shows, these steps are leading to improved efficiencies and helping the company target its resources and investments on areas that have the greatest impact.” Following the 4Q results, Oppenheimer analyst Kristen Owen reiterated a Buy rating and a price target of $331 on the stock.
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0435101b-f959-4319-899f-739163a03938
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721590.0
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2021-02-19 00:00:00 UTC
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Why Deere Shares Are Soaring Today
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DE
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https://www.nasdaq.com/articles/why-deere-shares-are-soaring-today-2021-02-19
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nan
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nan
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What happened
Shares of Deere & Company (NYSE: DE) jumped more than 10% on Friday morning after the agriculture and industrial equipment manufacturer reported better-than-expected quarterly results.
So what
Before markets opened today, Deere said it earned $3.87 per share in its fiscal first quarter on revenue of $9.11 billion, including equipment-operations net sales of $8 billion, easily surpassing analyst expectations for $2.16 per share in earnings on revenue of $7.21 billion. The company's total net income was $1.224 billion, more than double the $517 million reported during the same quarter a year prior.
Image source: Getty Images.
CEO John C. May issued a statement saying:
John Deere started 2021 on a strongly positive note. Our results were aided by outstanding performance across our business lineup and improving conditions in the farm and construction sectors. In addition, our smart industrial operating strategy is making a significant impact on the company's results while it also helps our customers be more profitable and sustainable.
The company appears to be benefiting from strong pricing power across its different business segments.
Now what
Deere said it expects full fiscal-year 2021 earnings between $4.6 billion and $5 billion, a significant increase over previous guidance for $3.6 billion to $4 billion for the year.
The company sees growth in all segments and all parts of the world except for Asia, with North American heavy agriculture leading the way.
Deere has exposure to a range of industrial segments, including agriculture and construction, and all seem to be on the upswing heading into 2021.
10 stocks we like better than Deere & Company
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Deere & Company (NYSE: DE) jumped more than 10% on Friday morning after the agriculture and industrial equipment manufacturer reported better-than-expected quarterly results. So what Before markets opened today, Deere said it earned $3.87 per share in its fiscal first quarter on revenue of $9.11 billion, including equipment-operations net sales of $8 billion, easily surpassing analyst expectations for $2.16 per share in earnings on revenue of $7.21 billion. CEO John C. May issued a statement saying: John Deere started 2021 on a strongly positive note.
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So what Before markets opened today, Deere said it earned $3.87 per share in its fiscal first quarter on revenue of $9.11 billion, including equipment-operations net sales of $8 billion, easily surpassing analyst expectations for $2.16 per share in earnings on revenue of $7.21 billion. Deere has exposure to a range of industrial segments, including agriculture and construction, and all seem to be on the upswing heading into 2021. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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So what Before markets opened today, Deere said it earned $3.87 per share in its fiscal first quarter on revenue of $9.11 billion, including equipment-operations net sales of $8 billion, easily surpassing analyst expectations for $2.16 per share in earnings on revenue of $7.21 billion. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. What happened Shares of Deere & Company (NYSE: DE) jumped more than 10% on Friday morning after the agriculture and industrial equipment manufacturer reported better-than-expected quarterly results.
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What happened Shares of Deere & Company (NYSE: DE) jumped more than 10% on Friday morning after the agriculture and industrial equipment manufacturer reported better-than-expected quarterly results. So what Before markets opened today, Deere said it earned $3.87 per share in its fiscal first quarter on revenue of $9.11 billion, including equipment-operations net sales of $8 billion, easily surpassing analyst expectations for $2.16 per share in earnings on revenue of $7.21 billion. CEO John C. May issued a statement saying: John Deere started 2021 on a strongly positive note.
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54f3e92b-6555-4bf4-97ef-9671f681edff
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721591.0
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2021-02-19 00:00:00 UTC
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4 Top Stock Trades for Monday: BA, DE, Litecoin, RCL
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DE
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https://www.nasdaq.com/articles/4-top-stock-trades-for-monday%3A-ba-de-litecoin-rcl-2021-02-19
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was an up-and-down session that’s now mostly flat for the S&P 500. Now, let’s look at a few top stock trades for next week, after this holiday-shortened stretch.
Top Stock Trades for Monday No. 1: Boeing (BA)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Four weeks ago, Boeing (NYSE:BA) tested down into its 21-week moving average, then caught a sharp bounce off that level. Since then, we’ve had back-to-back tight-ranged weeks.
On the plus side, earnings are out of the way and Boeing continues to hold over the 10-week moving average. Moving nicely on Friday, bulls will be looking for Boeing to give us a two-times weekly-up rotation by clearing the highs from the prior two weeks.
If it can do that, as well as hurdle the 50% retracement, the $234 level could be in play, followed by the December high near $244. Above that puts the 61.8% retracement on the table near $250.
7 Overvalued Stocks Investors Just Don’t Get Tired Of
On the downside, a break of the 10-week moving average puts the 21-week moving average on deck, followed by the $188 to $190 area.
Top Stock Trades for Monday No. 2: Deere (DE)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Man, what else can we say about Deere (NYSE:DE) at this point? The stock looks like a high-flying tech holding more than an industrial/agriculture company. That said, it does have some tech components to the business model.
Regardless, this stock has been moving straight up for months now. Each dip to the 10-week moving average — including this week — has been bought aggressively by the bulls.
The institutional support is robust with this one, which would have me crossing it off my “short list” in a hurry. Now at the three-times range extension and new record highs though, and I’m in no hurry to chase this one either.
Above $335, and a run to $350 is possible, then $380. A break of the 10-week moving average will eventually happen, putting the 21-week moving average in play.
Top Stock Trades for Monday No. 3: Litecoin (LTC-USD)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Tuesday was Bitcoin (CCC:BTC-USD). Wednesday was Bitcoin Cash (CCC:BCH-USD). Thursday was Etherium (CCC:ETH-USD). Now let’s look at Litecoin (CCC:LTC-USD) as we wrap up the crypto week and as bitcoin hits a $1 trillion market capitalization today.
Litecoin had a pretty rough correction from its 2019 high at $146.95 down to its 2020 low at $24.85. However, it’s been on fire over the last few months.
Shares ripped up through the prior 2019 high, then consolidated its gains by finding support at the 10-week moving average. Once that consolidation ended though, it was off to the races again.
Now pushing through the 161.8% extension, let’s see if Litecoin can push up to $250, then $269.50, as the two-times range extension comes into play near the latter.
7 Stocks Riding the Crypto Craze
On the downside, I would love to see the 161.8% extension act as support, as well as $200. Below puts this week’s low in play near $186.50.
Top Trades for Monday No. 4: Royal Caribbean (RCL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Last but not least is Royal Caribbean (NYSE:RCL). Up almost 17% this week, shares are rallying into earnings scheduled for Monday.
This one has been on fire, reclaiming its 10-day, 21-day, 50-day and 100-day moving averages amid the four-day rally. It doesn’t look like much after such a wide trading range over the last year, but it’s a nice run. Ahead of earnings does make it a little tricky, though.
Over the 50% retracement and its short-term moving averages puts the bulls in control for the moment. On a bullish earnings reaction, let’s see if shares can clear the recent high near $85. Above puts the 61.8% retracement in play, then the $100 mark.
On a bearish reaction, see if RCL stock holds the 100-day moving average — the lowest of the four listed above. Below uptrend support (blue line) and the 38.2% retracement and 200-day moving average are in play.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Monday: BA, DE, Litecoin, RCL 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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Top Stock Trades for Monday No. Click to Enlarge Source: Chart courtesy of TrendSpider Four weeks ago, Boeing (NYSE:BA) tested down into its 21-week moving average, then caught a sharp bounce off that level. Now, let’s look at a few top stock trades for next week, after this holiday-shortened stretch.
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Top Stock Trades for Monday No. Click to Enlarge Source: Chart courtesy of TrendSpider Four weeks ago, Boeing (NYSE:BA) tested down into its 21-week moving average, then caught a sharp bounce off that level. Click to Enlarge Source: Chart courtesy of TrendSpider Tuesday was Bitcoin (CCC:BTC-USD).
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Top Stock Trades for Monday No. Click to Enlarge Source: Chart courtesy of TrendSpider Four weeks ago, Boeing (NYSE:BA) tested down into its 21-week moving average, then caught a sharp bounce off that level. 7 Overvalued Stocks Investors Just Don’t Get Tired Of On the downside, a break of the 10-week moving average puts the 21-week moving average on deck, followed by the $188 to $190 area.
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Top Stock Trades for Monday No. The post 4 Top Stock Trades for Monday: BA, DE, Litecoin, RCL appeared first on InvestorPlace. Now, let’s look at a few top stock trades for next week, after this holiday-shortened stretch.
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2e53ddab-a085-45ca-8733-e9fd9161d789
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721592.0
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2021-02-19 00:00:00 UTC
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US STOCKS-Wall Street closes flat as cyclicals shine, big tech falls
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-flat-as-cyclicals-shine-big-tech-falls-2021-02-19
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nan
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By Herbert Lash
NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.
Industrials .SPLRCI led rising sectors in the S&P 500, spurred by a 9.9% surge in Deere & Co DE.N and Caterpillar's CAT.N 5.0% gain to an all-time peak of $211.40 a share. Financials .SPSY, materials .SPLRCM and energy .SPNY, along with industrials, rose more than 1%.
The S&P 1500 airlines index .SPCOMAIR jumped 3.5%, with post-pandemic travel in focus.
The stay-at-home winners, including Microsoft Corp MSFT.O, Facebook Inc FB.O, Alphabet's Google GOOGL.O and Netflix Inc NFLX.O, fell in a trend seen for most of the week. Amazon.com Inc AMZN.O also fell, as investors sold the leaders in the big rally since last March.
Value stocks .RLV rose 0.6% while growth .RLG fell 0.6%. Advancing stocks led declining shares by about a 2:1 ratio.
A battle continues between tech-led growth stocks and cyclicals, companies that are heavily affected by economic conditions, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
"When the economy is roaring, they're roaring. When the economy is weakening, they're weakening," Ghriskey said of cyclicals. "The economy will roar, at least for a period of time. There's huge pent-up demand, whether just for travel or going back to work."
The Dow Jones Industrial Average .DJIedged up 0.98 points, or 0%, to 31,494.32 and the Nasdaq Composite .IXICadded 9.11 points, or 0.07%, to 13,874.46. The S&P 500 .SPXdropped 7.26 points, or 0.19%, to 3,906.71.
Volume on U.S. exchanges was 13.47 billion shares.
Strong earnings, progress in vaccination rollouts and hopes of a $1.9 trillion federal coronavirus relief package helped U.S. stock indexes hit record highs at the start of the week.
The Dow hit an all-time intraday peak, led by Caterpillar, after Deere raised its 2021 earnings forecast. Deere reported profit more than doubled in the first quarter on rising demand for farm and construction machinery.
The benchmark S&P 500 and the tech-heavy Nasdaq posted their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities.
For the week, the Dow rose 0.1% while the S&P 500 fell 0.7% and the Nasdaq slid 1.6% as big tech sold off.
Bank of America expects a more than 10% pullback in stocks, which are trading at more than 22 times 12-month forward earnings, the most expensive since the dot-com bubble of the late 1990s.
"What we saw (this week) represents a market that is tired and may not do very much. So we are headed for some sort of a pullback, but I don't think we're there just yet," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
On the economic front, data showed IHS Markit's flash U.S. composite PMI, which tracks the manufacturing and services sectors, inched up to 58.8 in February.
Applied Materials Inc AMAT.O was among the top boosts to both the Nasdaq and the S&P 500, rising 5.3% to $119.46, after it forecast second-quarter revenue above market expectations. Demand for its semiconductor manufacturing tools has picked up during a global shortage of semiconductors.
Advancing issues outnumbered declining ones on the NYSE by a 1.87-to-1 ratio; on Nasdaq, a 2.14-to-1 ratio favored advancers.
The S&P 500 posted 51 new 52-week highs and no new lows; the Nasdaq Composite recorded 223 new highs and nine new lows.
(Reporting by Herbert Lash; additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; editing by Shounak Dasgupta, Jonathan Oatis and David Gregorio)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong earnings, progress in vaccination rollouts and hopes of a $1.9 trillion federal coronavirus relief package helped U.S. stock indexes hit record highs at the start of the week. The benchmark S&P 500 and the tech-heavy Nasdaq posted their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities. By Herbert Lash NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.
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Industrials .SPLRCI led rising sectors in the S&P 500, spurred by a 9.9% surge in Deere & Co DE.N and Caterpillar's CAT.N 5.0% gain to an all-time peak of $211.40 a share. Advancing stocks led declining shares by about a 2:1 ratio. The Dow hit an all-time intraday peak, led by Caterpillar, after Deere raised its 2021 earnings forecast.
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By Herbert Lash NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued. Strong earnings, progress in vaccination rollouts and hopes of a $1.9 trillion federal coronavirus relief package helped U.S. stock indexes hit record highs at the start of the week. The benchmark S&P 500 and the tech-heavy Nasdaq posted their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities.
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Advancing stocks led declining shares by about a 2:1 ratio. The benchmark S&P 500 and the tech-heavy Nasdaq posted their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities. By Herbert Lash NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.
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721593.0
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2021-02-19 00:00:00 UTC
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4 Top Industrial Stocks To Watch In February
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https://www.nasdaq.com/articles/4-top-industrial-stocks-to-watch-in-february-2021-02-19
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Looking For The Best Industrial Stocks To Watch Right Now? 4 Names To Know
Many industrial stocks had a tough time on the stock market when the pandemic hit. Understandably, this is because of how closely linked they are with the economy. Before we go any further, what exactly are industrial stocks you may ask? In brief, industrial stocks consist of companies that produce construction and manufacturing tools, along with those that provide related services. No doubt, manufacturing is a key driving force for productivity growth and innovation. By extension, this links it back to the economy, which, as you might have guessed, dived last year. However, investors may be giving the sector another look as the U.S. ramps up its vaccination efforts.
Earlier this week, it was announced that U.S. states will receive their biggest increase in vaccine doses by far. The White House also revealed that it would be sending 2 million doses directly to pharmacies, doubling its previous figure. This could play out well for the broader industrial sector as we inch closer towards the end of the pandemic. As it stands, some key players in the industry have already begun to pick up speed. For example, Honeywell International (NYSE: HON) and Generac Holdings (NYSE: GNRC) have recovered tremendously since the March selloffs. For investors looking at the sector for long-term investments, would you consider adding these top industrial stocks to your watchlist right now?
Top Industrial Stocks To Watch
MKS Instruments Inc. (NASDAQ: MKSI)
Applied Materials Inc. (NASDAQ: AMAT)
Deere & Company (NYSE: DE)
General Electric Company (NYSE: GE)
MKS Instruments Inc.
Starting us off is MKS Instruments. The company is a global manufacturer and supplier of measuring instruments and solutions. MKS’s core products are paramount in the monitoring and analysis of advanced manufacturing processes. Simply put, clients rely on the company’s offerings and services to maintain process performance and productivity across their manufacturing lines. In theory, MKS could serve as an enabler for booming industries looking to ramp up manufacturing efforts. Notably, MKSI stock has already more than doubled since the March lows and seems to show no signs of slowing down.
Earlier this month, news broke that MKS extended a $6 billion cash-and-stock takeover offer to laser manufacturer Coherent (NASDAQ: COHR). Particularly, MKS said that this move was initiated in hopes of grabbing a larger share of the emerging laser and photonics market. More importantly, MKS’s offer comes as Coherent is in talks with telecom company Lumentum (NASDAQ: LITE) on a similar deal. Now, MKS’s deal represents a premium of 16% over what Lumentum is offering Coherent.
Source: TD Ameritrade TOS
According to Reuters, Coherent said that “Its board had determined that MKS’ proposal could lead to a deal that is superior to its pending transaction with Lumentum and it would engage in further talks with MKS.” Ideally, MKS could be looking at a massive expansion to its portfolio. Given all of this activity, do you think MKSI stock is worth watching?
Read More
Best Stocks To Buy In February? 4 Trending Tech Stocks To Know
Could Twilio (TWLO) Stock Continue To Defy Gravity As Everything Move Towards The Cloud?
Applied Materials Inc.
Following that, we will be looking at manufacturing company Applied Materials. It is a California-based corporation that supplies equipment, services, and software for manufacturing purposes. The company’s offerings play key roles in the production of semiconductor chips, flat panel displays for consumer tech, and solar products. Given its areas of operation, the company would be a part of growing semiconductor and clean energy trends. Likewise, AMAT stock is looking at gains of over 30% year-to-date. If that wasn’t enough, it posted solid figures in its first-quarter fiscal after yesterday’s closing bell.
Diving right into it, Applied Materials reported earnings per share of $1.39 for the quarter, a 41.8% year-over-year increase. On top of that, it also saw a total revenue of $5.16 billion for the quarter. CEO Gary Dickerson cites the continued acceleration of demand in the company’s core semiconductor business as a key factor of the company’s latest performance. This would be the case as industry trends fuel increasing consumption of its silicon-based offerings across several key markets.
Source: TD Ameritrade TOS
All this coupled with the recent semiconductor chip shortages could continue to accelerate Applied Materials’ growth. Could this make AMAT stock a top industrial stock to watch now? I’ll let you decide.
[Read More] Do You Have These Top Health Care Stocks On Your Watchlist? 4 Making Waves
Deere & Company
Deere is another top player making waves in the industrial sector right now. For some context, the company manufactures agricultural, construction, and forestry machinery. This ranges from diesel engines and drivetrains to lawn care equipment. To highlight, Deere is operating in the agricultural industry which is undoubtedly essential to maintaining food supplies around the globe. For this reason, I could see investors turning to DE stock in good times and bad. This does appear to be the case as DE stock has surged by over 160% since the stock market crashed in March. That’s not all, Deere also crushed analysts’ estimates in its first-quarter fiscal posted before today’s opening bell.
In detail, Deere reported earnings per share of $3.87, compared to a consensus estimate of $2.14 a share. This adds up to a massive 137% surge from the same quarter last year. In terms of global sales, the company posted earnings of $9.112 billion trampling analysts’ estimates of $7.225 billion.
Source: TD Ameritrade TOS
CEO John May gives credit to outstanding performance across its portfolio along with improving farm and construction sector conditions for the successful quarter. As the economy continues to recover, will you be watching DE stock?
[Read More] ExxonMobil (XOM) vs BP (BP): Which Is A Better Oil Stock To Buy Right Now?
General Electric Company
Last but not least, we have General Electric. To begin with, the multinational company is a juggernaut in the industrial sector with over a century of experience. Today, General Electric mainly focuses on the fields of power, renewable energy, aviation, and healthcare. Like most companies in the sector, General Electric did feel the pinch of the pandemic as the aviation industry was virtually halted. Despite this setback, its mammoth portfolio helped it weather 2020 to a certain extent.
To summarize, the company reported total revenue of $21.94 billion in its fourth-quarter fiscal. On top of that, it ended the quarter with $22.81 billion in cash on hand, a 57% year-over-year increase. Similarly, recent investor sentiment for GE stock also remains healthy as it is up by over 80% in the past six months.
Source: TD Ameritrade TOS
In more recent news, General Electric has also been hard at work expanding its renewable and industrial software businesses. Earlier this week, the company’s renewable energy arm, GE Renewable Energy, revealed that it will be involved in the largest onshore wind farm in Europe. Meanwhile, its software arm, GE Digital, is now working with cloud-data analytics company Teradata (NYSE: TDC) to provide aviation-related solutions. With General Electric firing on all cylinders, will you be adding GE stock to your watchlist?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earlier this month, news broke that MKS extended a $6 billion cash-and-stock takeover offer to laser manufacturer Coherent (NASDAQ: COHR). Source: TD Ameritrade TOS CEO John May gives credit to outstanding performance across its portfolio along with improving farm and construction sector conditions for the successful quarter. Source: TD Ameritrade TOS In more recent news, General Electric has also been hard at work expanding its renewable and industrial software businesses.
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Top Industrial Stocks To Watch MKS Instruments Inc. (NASDAQ: MKSI) Applied Materials Inc. (NASDAQ: AMAT) Deere & Company (NYSE: DE) General Electric Company (NYSE: GE) MKS Instruments Inc. 4 Making Waves Deere & Company Deere is another top player making waves in the industrial sector right now. 4 Names To Know Many industrial stocks had a tough time on the stock market when the pandemic hit.
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In brief, industrial stocks consist of companies that produce construction and manufacturing tools, along with those that provide related services. Top Industrial Stocks To Watch MKS Instruments Inc. (NASDAQ: MKSI) Applied Materials Inc. (NASDAQ: AMAT) Deere & Company (NYSE: DE) General Electric Company (NYSE: GE) MKS Instruments Inc. 4 Names To Know Many industrial stocks had a tough time on the stock market when the pandemic hit.
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Top Industrial Stocks To Watch MKS Instruments Inc. (NASDAQ: MKSI) Applied Materials Inc. (NASDAQ: AMAT) Deere & Company (NYSE: DE) General Electric Company (NYSE: GE) MKS Instruments Inc. As the economy continues to recover, will you be watching DE stock? 4 Names To Know Many industrial stocks had a tough time on the stock market when the pandemic hit.
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11eed122-0c0b-4a66-aada-04d184b0c04b
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721594.0
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2021-02-19 00:00:00 UTC
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US STOCKS-Wall Street supported by rise in cyclical stocks
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-street-supported-by-rise-in-cyclical-stocks-2021-02-19-0
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By Devik Jain and Shreyashi Sanyal
Feb 19 (Reuters) - U.S. stocks gained on Friday, helped by a rise in economy-sensitive cyclical sectors, with the S&P 500 and the Nasdaq on track to end the week on a dull note as investors rotated out of technology-related companies.
Seven of the 11 major S&P sectors rose, with financials .SPSY, energy .SPNY, industrials .SPLRCI and materials .SPLRCM jumping more than 1%.
The S&P 1500 airlines index .SPCOMAIR also soared 3.8%.
Stay-at-home winners Microsoft Corp MSFT.O, Facebook Inc FB.O and Netflix Inc NFLX.O fell between 0.4% and 2.3%, sticking to a trend seen for most parts of the week.
"Market sentiment is relatively positive and optimistic about the outlook for 2021," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
"You see the cyclical trade in terms of the types of companies that will do better as the economy continues to improve, and as vaccines continue to be distributed across the country."
Strong earnings, progress in vaccination roll-outs and hopes of a $1.9 trillion federal stimulus package helped U.S. stock indexes hit record highs at the start of the week.
However, the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC were tracking their first weekly declines this month, as concerns over higher stock market valuations and rising inflation going forward have led to fears of a short-term pullback in equities.
BofA expects a more than 10% pullback in stocks, which are trading at more than 22 times 12-month forward earnings, the most expensive since the dotcom bubble of the late 1990s.
"What we saw (this week) represents a market that is tired and may not do very much. So we are headed for some sort of a pullback, but I don't think we're there just yet," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Meanwhile, data showed IHS Markit's flash U.S. composite PMI, which tracks the manufacturing and services sectors, inched up to 58.8 in February.
Applied Materials Inc AMAT.O rose 7.5%, and was among the top boosts to the Nasdaq, after it forecast second-quarter revenue above market expectations, as demand for its semiconductor manufacturing tools picked up during a global shortage of semiconductors.
At 12:10 p.m. ET, the S&P 500 .SPX was up 9.43 points, or 0.24%, at 3,923.40, and the Nasdaq Composite .IXIC was up 87.24 points, or 0.63%, at 13,952.60.
The Dow Jones Industrial Average .DJI was up 122.28 points, or 0.39%, at 31,615.62, led by Caterpillar Inc CAT.N, which rose 4.3% to the top of the index, after the world's largest farm equipment producer Deere & Co DE.N raised its outlook on improved demand.
Deere jumped 10.2%.
Advancing issues outnumbered decliners for a 2.79-to-1 ratio on the NYSE and a 3.51-to-1 ratio on the Nasdaq.
The S&P index recorded 38 new 52-week highs and no new low, while the Nasdaq recorded 171 new highs and four new lows.
(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062))
The views and 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 Devik Jain and Shreyashi Sanyal Feb 19 (Reuters) - U.S. stocks gained on Friday, helped by a rise in economy-sensitive cyclical sectors, with the S&P 500 and the Nasdaq on track to end the week on a dull note as investors rotated out of technology-related companies. However, the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC were tracking their first weekly declines this month, as concerns over higher stock market valuations and rising inflation going forward have led to fears of a short-term pullback in equities. The Dow Jones Industrial Average .DJI was up 122.28 points, or 0.39%, at 31,615.62, led by Caterpillar Inc CAT.N, which rose 4.3% to the top of the index, after the world's largest farm equipment producer Deere & Co DE.N raised its outlook on improved demand.
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By Devik Jain and Shreyashi Sanyal Feb 19 (Reuters) - U.S. stocks gained on Friday, helped by a rise in economy-sensitive cyclical sectors, with the S&P 500 and the Nasdaq on track to end the week on a dull note as investors rotated out of technology-related companies. Strong earnings, progress in vaccination roll-outs and hopes of a $1.9 trillion federal stimulus package helped U.S. stock indexes hit record highs at the start of the week. The S&P index recorded 38 new 52-week highs and no new low, while the Nasdaq recorded 171 new highs and four new lows.
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By Devik Jain and Shreyashi Sanyal Feb 19 (Reuters) - U.S. stocks gained on Friday, helped by a rise in economy-sensitive cyclical sectors, with the S&P 500 and the Nasdaq on track to end the week on a dull note as investors rotated out of technology-related companies. However, the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC were tracking their first weekly declines this month, as concerns over higher stock market valuations and rising inflation going forward have led to fears of a short-term pullback in equities. Applied Materials Inc AMAT.O rose 7.5%, and was among the top boosts to the Nasdaq, after it forecast second-quarter revenue above market expectations, as demand for its semiconductor manufacturing tools picked up during a global shortage of semiconductors.
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By Devik Jain and Shreyashi Sanyal Feb 19 (Reuters) - U.S. stocks gained on Friday, helped by a rise in economy-sensitive cyclical sectors, with the S&P 500 and the Nasdaq on track to end the week on a dull note as investors rotated out of technology-related companies. However, the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC were tracking their first weekly declines this month, as concerns over higher stock market valuations and rising inflation going forward have led to fears of a short-term pullback in equities. The Dow Jones Industrial Average .DJI was up 122.28 points, or 0.39%, at 31,615.62, led by Caterpillar Inc CAT.N, which rose 4.3% to the top of the index, after the world's largest farm equipment producer Deere & Co DE.N raised its outlook on improved demand.
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491d81d4-2afb-4417-b765-99aae53d8205
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721595.0
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2021-02-19 00:00:00 UTC
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Deere lifts 2021 earnings forecast
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DE
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https://www.nasdaq.com/articles/deere-lifts-2021-earnings-forecast-2021-02-19
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nan
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CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on the back of improving demand for farm and construction machines.
The Moline, Illinois-based company now expects annual net income in the range of $4.6 billion to $5.0 billion, higher than $3.6 billion-$4.0 billion forecast earlier.
Earnings for the first quarter came in at $3.87 per share compared with $1.63 per share last year. Analysts surveyed by Refinitiv, on average, expected quarterly earnings of $2.14 per share.
(Reporting by Rajesh Kumar Singh; editing by John Stonestreet)
((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on the back of improving demand for farm and construction machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings of $2.14 per share. (Reporting by Rajesh Kumar Singh; editing by John Stonestreet) ((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on the back of improving demand for farm and construction machines. The Moline, Illinois-based company now expects annual net income in the range of $4.6 billion to $5.0 billion, higher than $3.6 billion-$4.0 billion forecast earlier. Analysts surveyed by Refinitiv, on average, expected quarterly earnings of $2.14 per share.
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CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on the back of improving demand for farm and construction machines. The Moline, Illinois-based company now expects annual net income in the range of $4.6 billion to $5.0 billion, higher than $3.6 billion-$4.0 billion forecast earlier. (Reporting by Rajesh Kumar Singh; editing by John Stonestreet) ((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on the back of improving demand for farm and construction machines. The Moline, Illinois-based company now expects annual net income in the range of $4.6 billion to $5.0 billion, higher than $3.6 billion-$4.0 billion forecast earlier. Earnings for the first quarter came in at $3.87 per share compared with $1.63 per share last year.
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a9b8c40a-11ad-4f27-aef1-2b918da04107
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721596.0
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2021-02-19 00:00:00 UTC
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US STOCKS-Wall Street supported by rise in cyclical stocks
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-street-supported-by-rise-in-cyclical-stocks-2021-02-19-1
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By Herbert Lash
NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street traded near breakeven on Friday as investors sold technology shares and rotated into economically sensitive cyclical stocks in anticipation the U.S. economy will boom on pent-up demand once the coronavirus pandemic is subdued.
Industrials .SPLRCI led rising sectors in the S&P 500, spurred by a 10.2% surge in Deere & Co DE.N and Caterpillar's CAT.N 5.3% gain to an all-time peak. Financials .SPSY, materials .SPLRCM and energy .SPNY, along with industrials, rose more than 1%.
The S&P 1500 airlines index .SPCOMAIR also soared 3.8%, with post-pandemic travel in focus.
Stay-at-home winners Microsoft Corp MSFT.O, Facebook Inc FB.O, Alphabet's Google GOOGL.O and Netflix Inc NFLX.O fell between 0.4% and 2.3% in a trend seen for most of the week. Apple Inc AAPL.O and Amazon.com Inc AMZN.O also fell.
A battle continues between tech-led growth stocks and cyclicals, companies that are heavily affected by economic conditions, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
"When the economy is roaring, they're roaring. When the economy is weakening, they're weakening," Ghriskey said. "The economy will roar, at least for a period of time. There’s huge pent-up demand, whether just for travel or going back to work."
By 2:33PM ET, the Dow Jones Industrial Average .DJI had risen 16.28 points, or 0.05%, to 31,509.62, the S&P 500 .SPX lost 6.4 points, or 0.16%, to 3,907.57 and the Nasdaq Composite .IXIC added 1.02 points, or 0.01%, to 13,866.37.
Strong earnings, progress in vaccination rollouts and hopes of a $1.9 trillion federal coronavirus relief package helped U.S. stock indexes hit record highs at the start of the week.
The Dow hit a fresh intraday peak, led by Caterpillar, after Deere raised its 2021 earnings forecast. Deere reported profit more than doubled in the first quarter on rising demand for farm and construction machinery.
The benchmark S&P 500 and the tech-heavy Nasdaq headed toward their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities.
Bank of America expects a more than 10% pullback in stocks, which are trading at more than 22 times 12-month forward earnings, the most expensive since the dot-com bubble of the late 1990s.
"What we saw (this week) represents a market that is tired and may not do very much. So we are headed for some sort of a pullback, but I don't think we're there just yet," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Meanwhile, data showed IHS Markit's flash U.S. composite PMI, which tracks the manufacturing and services sectors, inched up to 58.8 in February.
Applied Materials Inc AMAT.O rose 5.6% and was among the top boosts to both the Nasdaq and the S&P 500 after it forecast second-quarter revenue above market expectations. Demand for its semiconductor manufacturing tools has picked up during a global shortage of semiconductors.
Advancing issues outnumbered declining ones on the NYSE by a 2.02-to-1 ratio; on Nasdaq, a 2.30-to-1 ratio favored advancers.
The S&P 500 posted 45 new 52-week highs and no new lows; the Nasdaq Composite recorded 198 new highs and seven new lows.
(Reporting by Herbert Lash; additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; editing by Shounak Dasgupta and Jonathan Oatis)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong earnings, progress in vaccination rollouts and hopes of a $1.9 trillion federal coronavirus relief package helped U.S. stock indexes hit record highs at the start of the week. The benchmark S&P 500 and the tech-heavy Nasdaq headed toward their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities. By Herbert Lash NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street traded near breakeven on Friday as investors sold technology shares and rotated into economically sensitive cyclical stocks in anticipation the U.S. economy will boom on pent-up demand once the coronavirus pandemic is subdued.
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Industrials .SPLRCI led rising sectors in the S&P 500, spurred by a 10.2% surge in Deere & Co DE.N and Caterpillar's CAT.N 5.3% gain to an all-time peak. Strong earnings, progress in vaccination rollouts and hopes of a $1.9 trillion federal coronavirus relief package helped U.S. stock indexes hit record highs at the start of the week. The Dow hit a fresh intraday peak, led by Caterpillar, after Deere raised its 2021 earnings forecast.
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By Herbert Lash NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street traded near breakeven on Friday as investors sold technology shares and rotated into economically sensitive cyclical stocks in anticipation the U.S. economy will boom on pent-up demand once the coronavirus pandemic is subdued. Strong earnings, progress in vaccination rollouts and hopes of a $1.9 trillion federal coronavirus relief package helped U.S. stock indexes hit record highs at the start of the week. The benchmark S&P 500 and the tech-heavy Nasdaq headed toward their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities.
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By Herbert Lash NEW YORK, Feb 19 (Reuters) - Stocks on Wall Street traded near breakeven on Friday as investors sold technology shares and rotated into economically sensitive cyclical stocks in anticipation the U.S. economy will boom on pent-up demand once the coronavirus pandemic is subdued. The benchmark S&P 500 and the tech-heavy Nasdaq headed toward their first weekly declines this month on concerns over higher stock market valuations, and expectations of rising inflation led to fears of a short-term pullback in equities. Industrials .SPLRCI led rising sectors in the S&P 500, spurred by a 10.2% surge in Deere & Co DE.N and Caterpillar's CAT.N 5.3% gain to an all-time peak.
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55405918-013e-4014-99fa-2452d7e5a94c
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721597.0
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2021-02-19 00:00:00 UTC
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Deere upgrades 2021 earnings outlook on improved equipment demand
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https://www.nasdaq.com/articles/deere-upgrades-2021-earnings-outlook-on-improved-equipment-demand-2021-02-19
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nan
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Adds detail, share price
CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on improved demand for farm and construction machines and a higher adoption rate for its technology offerings.
The Moline, Illinois-based company now expects annual net income in the range of $4.6 billion to $5.0 billion, higher than $3.6 billion-$4.0 billion forecast earlier.
Earnings for the first quarter came in at $3.87 per share compared with $1.63 per share last year. Analysts surveyed by Refinitiv, on average, expected quarterly earnings of $2.14 per share.
The company said industry sales of agricultural equipment in the United States and Canada - Deere's biggest combined market - are now expected to grow by 15% to 20% this year, compared with a 5% to 10% growth estimated earlier.
Deere's shares, which have outperformed broader market with a gain of 17% since the last earnings report, were up 3.2% at $309.87 in pre-market hours.
(Reporting by Rajesh Kumar Singh; editing by John Stonestreet and Jason Neely)
((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail, share price CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on improved demand for farm and construction machines and a higher adoption rate for its technology offerings. The company said industry sales of agricultural equipment in the United States and Canada - Deere's biggest combined market - are now expected to grow by 15% to 20% this year, compared with a 5% to 10% growth estimated earlier. Deere's shares, which have outperformed broader market with a gain of 17% since the last earnings report, were up 3.2% at $309.87 in pre-market hours.
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Adds detail, share price CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on improved demand for farm and construction machines and a higher adoption rate for its technology offerings. The company said industry sales of agricultural equipment in the United States and Canada - Deere's biggest combined market - are now expected to grow by 15% to 20% this year, compared with a 5% to 10% growth estimated earlier. Deere's shares, which have outperformed broader market with a gain of 17% since the last earnings report, were up 3.2% at $309.87 in pre-market hours.
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Adds detail, share price CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on improved demand for farm and construction machines and a higher adoption rate for its technology offerings. The company said industry sales of agricultural equipment in the United States and Canada - Deere's biggest combined market - are now expected to grow by 15% to 20% this year, compared with a 5% to 10% growth estimated earlier. Deere's shares, which have outperformed broader market with a gain of 17% since the last earnings report, were up 3.2% at $309.87 in pre-market hours.
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Adds detail, share price CHICAGO, Feb 19 (Reuters) - Deere & Co DE.N on Friday upgraded its fiscal 2021 earnings forecast after profit more than doubled in the first quarter on improved demand for farm and construction machines and a higher adoption rate for its technology offerings. The company said industry sales of agricultural equipment in the United States and Canada - Deere's biggest combined market - are now expected to grow by 15% to 20% this year, compared with a 5% to 10% growth estimated earlier. Deere's shares, which have outperformed broader market with a gain of 17% since the last earnings report, were up 3.2% at $309.87 in pre-market hours.
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a0efb82c-1393-49c5-a9c2-3d84e47d4bfd
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721598.0
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2021-02-19 00:00:00 UTC
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Deere And Co Q1 21 Earnings Conference Call At 10:00 AM ET
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DE
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https://www.nasdaq.com/articles/deere-and-co-q1-21-earnings-conference-call-at-10%3A00-am-et-2021-02-19
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nan
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nan
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(RTTNews) - Deere And Co. (DE) will host a conference call at 10:00 AM ET on February 19, 2021, to discuss Q1 21 earnings results.
To access the live webcast, log on to https://investor.deere.com/home/
The views and 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) - Deere And Co. (DE) will host a conference call at 10:00 AM ET on February 19, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to https://investor.deere.com/home/ The views and 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) - Deere And Co. (DE) will host a conference call at 10:00 AM ET on February 19, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to https://investor.deere.com/home/ The views and 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) - Deere And Co. (DE) will host a conference call at 10:00 AM ET on February 19, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to https://investor.deere.com/home/ The views and 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) - Deere And Co. (DE) will host a conference call at 10:00 AM ET on February 19, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to https://investor.deere.com/home/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3cca5eb1-7adf-4c0b-9331-a6e1822c1d42
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721599.0
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2021-02-19 00:00:00 UTC
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What To Expect From Deere Stock In Q1?
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DE
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https://www.nasdaq.com/articles/what-to-expect-from-deere-stock-in-q1-2021-02-19
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nan
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nan
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Deere & Company stock (NYSE: DE) is scheduled to report its fiscal first-quarter results on Friday, February 19. We expect Deere to likely post revenues and earnings slightly below the consensus estimates. While Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies gradually rebound, the continued headwinds in oil & gas will likely remain a concern in the near term. That said, our forecast indicates that Deere’s valuation is around $330 a share, which is 5% above the current market price of around $315. Now, based on our estimates, the company will likely report numbers below the street expectations, which is likely to result in DE stock trading lower post Q1 announcement, and that may offer a good entry point for long term investors to buy the stock. Look at our interactive dashboard analysis on Deere & Company Pre-Earnings: What To Expect in Q1? for more details.
(1) Revenues expected to be below the consensus estimate
Trefis estimates Deere’s Q1 fiscal 2021 total revenues to be around $7.1 Bil, slightly below the consensus estimate of $7.2 Bil. While construction equipment sales were heavily impacted due to the Covid impact, the improved demand from agriculture helped offset some of this headwind. While construction equipment sales were down 16% to $2.5 billion, agricultural equipment sales were up 8% to $6.2 billion, leading to a sales growth of 1% year-over-year (y-o-y) in Q4 2020. The company is seeing an increased spending on agricultural equipment, primarily small tractors, and this could drive the revenues in Q1. The company in its previousearnings conference callprovided an outlook for a 10% to 15% revenue growth for Agriculture & Turf segment in 2021, primarily small agriculture, which ended the year at historic lows for inventory to sales ratio, and the company expects the inventory levels to rebound in 2021. However, the picture isn’t that pretty for the construction sector. Deere forecasts construction equipment sales in the U.S. and Canada to be down 5%, due to continued headwinds in the oil & gas as well as commercial real estate. Yet, aided by growth in forestry, the overall Construction & Forestry segment sales are expected to be up 5% to 10% in 2021. Our dashboard on Deere Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be below the consensus estimates
Deere’s Q1 2021 earnings per share (EPS) is expected to be $2.10 per Trefis analysis, slightly below the consensus estimate of $2.14. Deere’s net income of $757 million in Q4, reflected a 5% growth from its $722 million profit in the prior year quarter. However, the earnings remained down 15% for the full fiscal 2020, owing to the impact of the pandemic, primarily in the first half of the fiscal. Q4 also saw a higher price realization for Deere’s agriculture and turf business, aiding the overall margins, a trend which could continue in Q1 as well. Looking at the full year 2021, we expect a 50% y-o-y growth in EPS to $13.10, aided by both revenue growth as well as margin expansion.
(3) Stock price estimate higher than the current market price
Going by our Deere & Company Valuation, with an EPS estimate of around $13.10 and P/E multiple of 25x in fiscal 2021, this translates into a price of $330, which is 5% above the current market price of around $315.
Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, we believe the demand for both agriculture as well as construction equipment will rebound as the spread of the virus subsides.
Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year
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See all Trefis Price Estimates and Download Trefis Data here
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company stock (NYSE: DE) is scheduled to report its fiscal first-quarter results on Friday, February 19. While Deere is expected to benefit from improved demand for agriculture as well as construction equipment, as the economies gradually rebound, the continued headwinds in oil & gas will likely remain a concern in the near term. Deere forecasts construction equipment sales in the U.S. and Canada to be down 5%, due to continued headwinds in the oil & gas as well as commercial real estate.
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(1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q1 fiscal 2021 total revenues to be around $7.1 Bil, slightly below the consensus estimate of $7.2 Bil. The company in its previousearnings conference callprovided an outlook for a 10% to 15% revenue growth for Agriculture & Turf segment in 2021, primarily small agriculture, which ended the year at historic lows for inventory to sales ratio, and the company expects the inventory levels to rebound in 2021. (3) Stock price estimate higher than the current market price Going by our Deere & Company Valuation, with an EPS estimate of around $13.10 and P/E multiple of 25x in fiscal 2021, this translates into a price of $330, which is 5% above the current market price of around $315.
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(1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q1 fiscal 2021 total revenues to be around $7.1 Bil, slightly below the consensus estimate of $7.2 Bil. The company in its previousearnings conference callprovided an outlook for a 10% to 15% revenue growth for Agriculture & Turf segment in 2021, primarily small agriculture, which ended the year at historic lows for inventory to sales ratio, and the company expects the inventory levels to rebound in 2021. (3) Stock price estimate higher than the current market price Going by our Deere & Company Valuation, with an EPS estimate of around $13.10 and P/E multiple of 25x in fiscal 2021, this translates into a price of $330, which is 5% above the current market price of around $315.
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The company in its previousearnings conference callprovided an outlook for a 10% to 15% revenue growth for Agriculture & Turf segment in 2021, primarily small agriculture, which ended the year at historic lows for inventory to sales ratio, and the company expects the inventory levels to rebound in 2021. (3) Stock price estimate higher than the current market price Going by our Deere & Company Valuation, with an EPS estimate of around $13.10 and P/E multiple of 25x in fiscal 2021, this translates into a price of $330, which is 5% above the current market price of around $315. Deere & Company stock (NYSE: DE) is scheduled to report its fiscal first-quarter results on Friday, February 19.
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d8c2e1ac-bac4-417b-8612-7fe4e92b9cc8
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