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721600.0
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2021-02-19 00:00:00 UTC
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Deere And Co Bottom Line Rises In Q1
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DE
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https://www.nasdaq.com/articles/deere-and-co-bottom-line-rises-in-q1-2021-02-19
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nan
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nan
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(RTTNews) - Deere And Co (DE) reported earnings for its first quarter that climbed from the same period last year.
The company's bottom line came in at $1.22 billion, or $3.87 per share. This compares with $0.52 billion, or $1.63 per share, in last year's first quarter.
Analysts had expected the company to earn $2.16 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 19.4% to $9.11 billion from $7.63 billion last year.
Deere And Co earnings at a glance:
-Earnings (Q1): $1.22 Bln. vs. $0.52 Bln. last year. -EPS (Q1): $3.87 vs. $1.63 last year. -Analysts Estimate: $2.16 -Revenue (Q1): $9.11 Bln vs. $7.63 Bln last 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) - Deere And Co (DE) reported earnings for its first quarter that climbed from the same period last year. Analysts' estimates typically exclude special items. Deere And Co earnings at a glance: -Earnings (Q1): $1.22 Bln.
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Analysts' estimates typically exclude special items. (RTTNews) - Deere And Co (DE) reported earnings for its first quarter that climbed from the same period last year. Deere And Co earnings at a glance: -Earnings (Q1): $1.22 Bln.
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(RTTNews) - Deere And Co (DE) reported earnings for its first quarter that climbed from the same period last year. Analysts' estimates typically exclude special items. Deere And Co earnings at a glance: -Earnings (Q1): $1.22 Bln.
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(RTTNews) - Deere And Co (DE) reported earnings for its first quarter that climbed from the same period last year. Analysts' estimates typically exclude special items. Deere And Co earnings at a glance: -Earnings (Q1): $1.22 Bln.
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6eac8dc8-f602-492f-92cd-dc6a2be7e2a7
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721601.0
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2021-02-18 00:00:00 UTC
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Pre-Market Earnings Report for February 19, 2021 : DE, MGA, DTE, ITT, ESNT, SHLX, SRC, BCPC, POR, B, THRM, ABR
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-19-2021-%3A-de-mga-dte-itt-esnt-shlx-src-bcpc-por-b
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nan
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nan
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The following companies are expected to report earnings prior to market open on 02/19/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company (DE) is reporting for the quarter ending January 31, 2021. The farm machinery company's consensus earnings per share forecast from the 10 analysts that follow the stock is $2.12. This value represents a 30.06% increase compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 65.97%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 23.86 vs. an industry ratio of 19.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Magna International, Inc. (MGA) is reporting for the quarter ending December 31, 2020. The auto (truck) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.98. This value represents a 40.43% increase compared to the same quarter last year. In the past year MGA has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 44.44%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for MGA is 26.10 vs. an industry ratio of -37.70, implying that they will have a higher earnings growth than their competitors in the same industry.
DTE Energy Company (DTE) is reporting for the quarter ending December 31, 2020. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.33. This value represents a 1.48% decrease compared to the same quarter last year. DTE missed the consensus earnings per share in the 1st calendar quarter of 2020 by -6.74%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DTE is 17.07 vs. an industry ratio of 19.40.
ITT Inc. (ITT) is reporting for the quarter ending December 31, 2020. The diversified operations company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.92. This value represents a 7.07% decrease compared to the same quarter last year. In the past year ITT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 15.49%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ITT is 25.36 vs. an industry ratio of 16.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Essent Group Ltd. (ESNT) is reporting for the quarter ending December 31, 2020. The financial management & related services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $1.21. This value represents a 18.79% decrease compared to the same quarter last year. In the past year ESNT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 12.12%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ESNT is 11.11 vs. an industry ratio of 15.30.
Shell Midstream Partners, L.P. (SHLX) is reporting for the quarter ending December 31, 2020. The oil/gas company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.34. This value represents a 8.11% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for SHLX is 8.71 vs. an industry ratio of -4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Spirit Realty Capital, Inc. (SRC) is reporting for the quarter ending December 31, 2020. The reit company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.69. This value represents a 9.21% decrease compared to the same quarter last year. In the past year SRC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 9.09%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for SRC is 14.66 vs. an industry ratio of 19.10.
Balchem Corporation (BCPC) is reporting for the quarter ending December 31, 2020. The chemical company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.67. This value represents a 23.86% decrease compared to the same quarter last year. In the past year BCPC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 23.88%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BCPC is 40.39 vs. an industry ratio of -16.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Portland General Electric Company (POR) is reporting for the quarter ending December 31, 2020. The electric power utilities company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.42. This value represents a 38.24% decrease compared to the same quarter last year. In the past year POR has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for POR is 15.68 vs. an industry ratio of 19.40.
Barnes Group, Inc. (B) is reporting for the quarter ending December 31, 2020. The machinery company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.33. This value represents a 61.63% decrease compared to the same quarter last year. In the past year B has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 11.11%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for B is 32.44 vs. an industry ratio of 7.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Gentherm Inc (THRM) is reporting for the quarter ending December 31, 2020. The auto (truck) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.64. This value represents a 1.54% decrease compared to the same quarter last year. In the past year THRM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 78.43%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for THRM is 39.77 vs. an industry ratio of -37.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Arbor Realty Trust (ABR) is reporting for the quarter ending December 31, 2020. The reit company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.34. This value represents a no change for the same quarter last year. In the past year ABR has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 44.12%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABR is 9.98 vs. an industry ratio of 16.00.
The views and 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 (DE) is reporting for the quarter ending January 31, 2021. In the past year DE has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 23.86 vs. an industry ratio of 19.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 23.86 vs. an industry ratio of 19.60, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company (DE) is reporting for the quarter ending January 31, 2021. In the past year DE has beat the expectations every quarter.
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Deere & Company (DE) is reporting for the quarter ending January 31, 2021. In the past year DE has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 23.86 vs. an industry ratio of 19.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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In the past year DE has beat the expectations every quarter. Deere & Company (DE) is reporting for the quarter ending January 31, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 23.86 vs. an industry ratio of 19.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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0e784549-b057-4169-8389-d976dad7e104
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721602.0
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2021-02-18 00:00:00 UTC
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Noteworthy Thursday Option Activity: DG, DE, QCOM
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-dg-de-qcom-2021-02-18
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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 Dollar General Corp (Symbol: DG), where a total of 12,974 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to about 47.4% of DG's average daily trading volume over the past month of 2.7 million shares. Especially high volume was seen for the $200 strike call option expiring March 19, 2021, with 2,767 contracts trading so far today, representing approximately 276,700 underlying shares of DG. Below is a chart showing DG's trailing twelve month trading history, with the $200 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 6,935 contracts thus far today. That number of contracts represents approximately 693,500 underlying shares, working out to a sizeable 45.9% of DE's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $285 strike put option expiring February 19, 2021, with 619 contracts trading so far today, representing approximately 61,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $285 strike highlighted in orange:
And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 49,478 contracts, representing approximately 4.9 million underlying shares or approximately 41.7% of QCOM's average daily trading volume over the past month, of 11.9 million shares. Especially high volume was seen for the $140 strike put option expiring February 19, 2021, with 2,748 contracts trading so far today, representing approximately 274,800 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for DG 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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Especially high volume was seen for the $200 strike call option expiring March 19, 2021, with 2,767 contracts trading so far today, representing approximately 276,700 underlying shares of DG. Especially high volume was seen for the $285 strike put option expiring February 19, 2021, with 619 contracts trading so far today, representing approximately 61,900 underlying shares of DE. Especially high volume was seen for the $140 strike put option expiring February 19, 2021, with 2,748 contracts trading so far today, representing approximately 274,800 underlying shares of QCOM.
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Below is a chart showing DG's trailing twelve month trading history, with the $200 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 6,935 contracts thus far today. Especially high volume was seen for the $285 strike put option expiring February 19, 2021, with 619 contracts trading so far today, representing approximately 61,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $285 strike highlighted in orange: And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 49,478 contracts, representing approximately 4.9 million underlying shares or approximately 41.7% of QCOM's average daily trading volume over the past month, of 11.9 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Dollar General Corp (Symbol: DG), where a total of 12,974 contracts have traded so far, representing approximately 1.3 million underlying shares. Especially high volume was seen for the $285 strike put option expiring February 19, 2021, with 619 contracts trading so far today, representing approximately 61,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $285 strike highlighted in orange: And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 49,478 contracts, representing approximately 4.9 million underlying shares or approximately 41.7% of QCOM's average daily trading volume over the past month, of 11.9 million shares.
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Especially high volume was seen for the $285 strike put option expiring February 19, 2021, with 619 contracts trading so far today, representing approximately 61,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $285 strike highlighted in orange: And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 49,478 contracts, representing approximately 4.9 million underlying shares or approximately 41.7% of QCOM's average daily trading volume over the past month, of 11.9 million shares. Especially high volume was seen for the $140 strike put option expiring February 19, 2021, with 2,748 contracts trading so far today, representing approximately 274,800 underlying shares of QCOM.
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43a682fe-ff16-4eef-9831-ecd2a63b8fd1
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721603.0
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2021-02-18 00:00:00 UTC
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DE April 16th Options Begin Trading
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DE
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https://www.nasdaq.com/articles/de-april-16th-options-begin-trading-2021-02-18
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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 April 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new April 16th 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 $14.20. 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 $285.80 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $303.53/share today.
Because the $300.00 strike represents an approximate 1% 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 4.73% return on the cash commitment, or 30.33% 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 $310.00 strike price has a current bid of $12.45. If an investor was to purchase shares of DE stock at the current price level of $303.53/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $310.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.23% if the stock gets called away at the April 16th 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 $310.00 strike highlighted in red:
Considering the fact that the $310.00 strike represents an approximate 2% 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 4.10% boost of extra return to the investor, or 26.28% 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 $303.53) to be 47%. 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 $310.00 strike highlighted in red: Considering the fact that the $310.00 strike represents an approximate 2% 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 April 16th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $310.00 strike highlighted in red: Considering the fact that the $310.00 strike represents an approximate 2% 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 April 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new April 16th 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 $310.00 strike price has a current bid of $12.45. Below is a chart showing DE's trailing twelve month trading history, with the $310.00 strike highlighted in red: Considering the fact that the $310.00 strike represents an approximate 2% 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 April 16th 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 $310.00 strike highlighted in red: Considering the fact that the $310.00 strike represents an approximate 2% 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 April 16th expiration.
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90aeb22f-8096-4f36-a340-b2c5863bf871
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721604.0
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2021-02-09 00:00:00 UTC
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INSIGHT-U.S. farmers eye range of good planting options after biggest grains rally in years
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DE
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https://www.nasdaq.com/articles/insight-u.s.-farmers-eye-range-of-good-planting-options-after-biggest-grains-rally-in
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nan
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nan
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By Mark Weinraub
CHICAGO, Feb 9 (Reuters) - Illinois farmer Fred Helms is so eager for his next soybean crop he invested in a faster-maturing variety of soy seeds in hopes of beating other farmers to harvest the crop in mid-September, more than a month earlier than usual.
Other U.S. farmers told Reuters they are signing contracts to sell the corn and soy crops they will harvest in autumn, months before they have even planted them, looking to take advantage of boom times after years of oversupply, trade wars and low prices. Some are waiting to sell, betting on even higher prices.
A dozen farmers interviewed by Reuters said 2021 is shaping up to be their most profitable season in years as corn futures Cv1have rallied to their highest since June 2013 and soybean futures Sv1 to their highest since June 2014. They are working to pay off debts and update machinery after years of sluggish markets left them dependent on government payouts.
Their fortunes have changed as food supplies tighten worldwide because of rising demand from China and as governments look to build stocks of food during the COVID-19 pandemic, spurring global food inflation.
Early forecasts seen by Reuters predict record or near-record combined acres of soybeans and corn, so Helms hopes he can earn a premium by delivering soybeans when supplies are still scarce.
"I think everybody is really enthused about the coming year opportunity," Helms said. "There is going to be a big difference in income."
The shift came quickly, with the U.S. Agriculture Department (USDA) forecasting a 73% drawdown in soybean stocks – the biggest year-on-year decline since 1963 – and a 19% drop in corn supplies – the biggest in a decade.
Now, souped-up demand for exports as well as domestic processing industries that make animal feed and biofuel means that for the first time in years, farmers are looking at high crop revenues.
Farmers like Helms are eyeing government estimates that point to U.S. stockpiles of the beans falling to a seven-year low by the end of the summer before the new harvest starts coming in. The ending stocks figure, a key measure of supply and demand, is reflected in the market price for a commodity.
Less than two years ago, when China had all but stopped buying U.S. crops during a trade war, soybean stocks stood at a record 909 million bushels. The latest USDA forecast calls for the stockpile to shrink to 140 million bushels.
China is back in the market in a big way. Though it fell short of its 2020 commitments under a Phase 1 trade agreement, its annual soy purchases rose 77% over 2019.
More recently, China made record purchases of U.S. corn, a product it has not traditionally bought, after its own crop was damaged by drought and pests.
Analytics firm IHS Markit Agribusiness projected U.S. plantings of corn and soybeans at a record 184.324 million acres (74.6 million hectares), eclipsing the previous record of 180.329 million set in 2017 and up 4.8% from 2020, according to a client note seen by Reuters.
Farmers already boosted winter wheat acreage for the first time in eight years due to the high prices.
Growers with some flexibility will likely spend the next month monitoring corn and soybean prices before deciding what to plant, said Matthew Wiegand, a risk management consultant and commodity broker at FuturesOne in Nebraska.
"We are at a level that doesn't really swing acres one way or another right now," Wiegand said.
The planned expansion is also good news for the makers of seed, fertilizer and equipment. Deere & Co DE.Nforecast sales of agricultural equipment in the U.S. and Canada up 5%-10% in 2021.
Tim Dufault, who grows soybeans and spring wheat on 1,600 acres in Crookston, Minnesota, looks forward to picking up an upgraded tractor and seeder he recently purchased from the dealership, replacing a more than 25-year-old piece of machinery.
"The old one just was not doing the job anymore but I had been holding back for a couple of seasons," Dufault said. "When this spring rolls around, let's get the crop planted and see how much money we can make this year."
Dufault booked contracts to sell between 10% and 20% of his expected 2021 wheat production and plans to lock in deals for a comparable amount of his soybean crop soon. 'GOOD START'
Such early sales provide some certainty in a volatile industry. New-crop soybean prices are 25% higher than they were a year ago, trending at their highest point for early February since 2013. New-crop corn prices are at a seven-year high, up 15% from a year ago.
Nebraska farmer Craig Frenzen said he had already committed to sell 10% of his expected corn and soybean crops as futures prices surged past $5 a bushel for corn and $14 a bushel for soybeans. The University of Nebraska pegged the cost of production for corn in Nebraska between $3.01 and $4.51 a bushel and soybean production between $7.00 and $8.91 a bushel.
"I've gotten off to what I'd call a good start in marketing the 2021 crop,” Frenzen said.
Though farmers booking sales at current levels have some protection, the booms and busts in the grains markets can be severe.
Growers faced another year of depressed prices in 2020 until corn prices surged 48% during the last five months of the year as dry Midwest weather cut into harvest yields. The last time prices were trading above current levels, corn prices sank 28% over the next 4-1/2 months.
Growers may face greater exposure to market ructions than in recent years as President Joe Biden is thought to be less likely than his predecessor to bail out growers with record amounts of government cash.
"I don't know that I would want to bet on anything with the new administration," said Indiana farmer Roger Hadley. "They did not have a very good track record on supporting the farmer when Vice President Biden was in office."
USDA's Economic Research Service on Friday projected net cash income, which calculates the amount of money a farmer gets to keep after expenses, will fall 5.8% to $128.3 billion as government payments fall sharply from the record $46.3 billion former President Donald Trump gave farmers in 2020. Net cash income excluding government payments was seen rising 14.5% to a seven-year high of $103.1 billion, however.
Many farmers are optimistic, pointing to lingering concerns about dry soils and uncertainty over South American crops that could increase prices as well as robust demand.
"I think prices are going to be high all year," said Paul Berbaum, who grows corn and soybeans on 555 acres in Champaign County, Illinois. "I am not locking in yet on any new crop. I am still an old-fashioned guy. I don't like to sell it when I do not have it."
(Reporting by Mark Weinraub; additional reporting by Julie Ingwersen; Editing by Caroline Stauffer and Marguerita Choy)
((mark.weinraub@thomsonreuters.com; +1 313 484 5282; Reuters Messaging: mark.weinraub.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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Other U.S. farmers told Reuters they are signing contracts to sell the corn and soy crops they will harvest in autumn, months before they have even planted them, looking to take advantage of boom times after years of oversupply, trade wars and low prices. Growers with some flexibility will likely spend the next month monitoring corn and soybean prices before deciding what to plant, said Matthew Wiegand, a risk management consultant and commodity broker at FuturesOne in Nebraska. Tim Dufault, who grows soybeans and spring wheat on 1,600 acres in Crookston, Minnesota, looks forward to picking up an upgraded tractor and seeder he recently purchased from the dealership, replacing a more than 25-year-old piece of machinery.
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Other U.S. farmers told Reuters they are signing contracts to sell the corn and soy crops they will harvest in autumn, months before they have even planted them, looking to take advantage of boom times after years of oversupply, trade wars and low prices. They are working to pay off debts and update machinery after years of sluggish markets left them dependent on government payouts. Their fortunes have changed as food supplies tighten worldwide because of rising demand from China and as governments look to build stocks of food during the COVID-19 pandemic, spurring global food inflation.
|
Other U.S. farmers told Reuters they are signing contracts to sell the corn and soy crops they will harvest in autumn, months before they have even planted them, looking to take advantage of boom times after years of oversupply, trade wars and low prices. They are working to pay off debts and update machinery after years of sluggish markets left them dependent on government payouts. Their fortunes have changed as food supplies tighten worldwide because of rising demand from China and as governments look to build stocks of food during the COVID-19 pandemic, spurring global food inflation.
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Other U.S. farmers told Reuters they are signing contracts to sell the corn and soy crops they will harvest in autumn, months before they have even planted them, looking to take advantage of boom times after years of oversupply, trade wars and low prices. They are working to pay off debts and update machinery after years of sluggish markets left them dependent on government payouts. Their fortunes have changed as food supplies tighten worldwide because of rising demand from China and as governments look to build stocks of food during the COVID-19 pandemic, spurring global food inflation.
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2021-02-05 00:00:00 UTC
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Investing in Agriculture Stocks: What Investors Need to Know
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DE
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https://www.nasdaq.com/articles/investing-in-agriculture-stocks%3A-what-investors-need-to-know-2021-02-05
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In this episode of Industry Focus: Energy, we're discussing agriculture stocks. Host Nick Sciple is joined by Motley Fool contributor Lou Whiteman to give an overview of the industry, and to share some agriculture stocks on their radar.
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 January 28, 2021.
Nick Sciple: Welcome to Industry Focus. I am Nick Sciple. Last week, we talked about dividend stocks and as part of that discussion, I told folks to write in if they wanted us to do a show on agriculture stocks. Well, I asked and you answered, so that's what we're talking about this week. Lou Whiteman is joining me to share some thoughts on the industry and discuss a couple of stocks on our radar. Lou, thanks for joining me.
Lou Whiteman: Pleasure to be here.
Sciple: Yeah, Lou, great to have you here as always. I'm excited to get into this topic today. Obviously, agriculture is a huge, complicated industry so we're not going to be able to cover it all. But we're going to do our best to give a high-level overview of the industry, spotlight a couple of companies that stand out to us as intriguing opportunities. As always, as I said at the intro, if there's a topic you'd like to hear us cover that we're not going to get into today, email us at industryfocus@fool.com and we'll do our best to get to it as soon as we can. But with that out of the way, Lou, let's just get some background on the agricultural industry. When we look at the U.S. economy, how big of a chunk does agriculture make up of that?
Whiteman: This is a massive chunk of the U.S. economy. The U.S. Department of Agriculture is my source for most of these stats here. They say that Agan food is a $1.1 trillion, with a 't,' industry. American farm output alone is worth about 136 billion. That's sizable, about 1%, a little under 1% of GDP. Agan related also represents about 10% of total U.S. employment. This is also one of these rare sectors where the U.S. is a world exporter, about 25% of agriculture production is exported. That means without agriculture, all of those trade deficit numbers would look even worse. [laughs]
Sciple: Right. When you look at this industry, what does it look like? I know from my own bias, you hear about the farm aid thing with Willy Nelson and all these guys, who want to protect family farmers, this idea of the rise of the factory farm. Is that really who is owning agricultural assets today?
Whiteman: This is a surprise for a lot of people. There was a time in the '80s where this trend reversed, and that's where people like Willy Nelson set our expectations. But owner-operators own about 60% of U.S. farmland, and that number has been pretty stable for the last 50 years. There are fewer than 32,500 non-family health corporations that own farmland. These corporations own less than 5% of U.S. farmland. Where I think the confusion comes in is that these owner-operators have gotten a lot more sophisticated over the years. The average farm landowner owns 280 acres. These are not Ma' and Pa' and one field organizations anymore. These are sophisticated businesses. But a lot of them, it's still very fragmented and it's still a Ma' and Pa' industry.
Sciple: Right. The other thing we think about a lot with agriculture is the relationship with the government. There was this tit-for-tat back with China a while back, and we said, "Hey, China, you're subsidizing your steel industry," and then China came back and said, "Hey, you're subsidizing your agricultural industry." What role does the government plan in supporting some of the operators here?
Whiteman: Just to throw it back to you, I can't think of an industry that Washington loves more, and I'd challenge to do that. But definitely, if you look at most states, most elected officials deal with farmers, and I think it shows in Washington. Direct government payments to farmers and ranchers in 2020 was forecast to finish around $37 billion. You're adding CARES and all that, the Taxpayers For Common Sense estimates it will be well over $50 billion in direct aid this year alone. The $30-$40 billion number is pretty standard even without the CARES Act. This is an industry that gets a lot of support from lawmakers.
Sciple: It doesn't hurt that the Iowa caucus is the first every year, so I want to make folks happy there and all those sorts of things. Helps put ethanol and fuel and all that. When we look at this agricultural sector, before we get into some of these companies, can you talk about the pros and cons of investing in the sector? What are the opportunities there and then what are some risks involved?
Whiteman: The opportunities, when things go right, this is a very income rich industry. This is a good industry to hold if you are in the portion of your investing life where you are looking for dividends, you're looking for steady income. But there are risks you need to look into. This is a hugely cyclical industry and it doesn't really follow the economic cycle, so it can catch you off guard. Again, from the USDA, net farm income was $134 billion in 2013. Four years later, that had dropped $80 billion. That's a 40% drop in four years. That's the second one of these cycles we have seen so far this century. A lot of things go into this. The weather in the U.S., the weather overseas where we're competing against. Crop yields can lead to supply and demand getting out of whack. That means less money coming in. That means less money for farmers to invest in technology, chemicals, all of that. It ripples through for years and we do see, maybe not the great sort of thing, but we do see these boom and bust cycles. It is something to worry about, because you're not going to see a steady stream year after year on this. There's just too many macro factors that weigh into it.
Sciple: Right, an act of God literally, I think, can impact the whole area. Sometimes there can be something that's correlated, and you mentioned the dust belt. I don't know if we're going to have something like that again in the future, but there can be things that are correlated across the whole asset that could impact things. I think one other thing to point out is just regulatory risks. One example folks to think about is Monsanto. When you throw out Monsanto now, Monsanto is the worst company ever. At one point in time, Roundup was a revolutionary chemical, and was really the game changer when it came to herbicide, that sort of thing, getting weeds out of farmland. But now, it's this huge liability, it's albatross around the company. Some of these long-lasting liabilities can impact some companies in this space.
Whiteman: Yeah, I'll tell you, and I'm old enough. I was actually asked on one of the business news networks once, way back when, is Monsanto a tech stock? Should we think of it that way? You consider where it's gone now. It's a great point, there are a lot of regulatory risks. Even like, with genetically modified seeds, there's a lot of really complex issues that go into this that can really impact these companies.
Sciple: You talk about genetically modified seeds, maybe some herbicide, pesticide, stuff that transitions us into this first company. I wanted to talk about it with you today, that's Corteva (NYSE: CTVA), ticker C-T-V-A. It's a company that hasn't really been on the public markets very long. Came out of the Dow-DuPont spin-off in 2019, that would've been the last time we talked about it on the podcast. Can you tell us about what Corteva does?
Whiteman: Most of it is the old Dow Agrosciences businesses. As people may recall, the Dow-DuPont came together with the plan to shuffle the assets around and create three more focused companies. This is the combined scale agriculture business of those two chemical giants. The operations are pretty much split between seeds and crop protection, which they do a lot of these modified seeds, specialized seeds. Then the other side of it is not Roundup, they don't own that, but a range of fertilizers and more importantly, herbicides and other products. We can get into it in depth, but there's a lot of synergies here, because increasingly, we are moving toward crops that resist certain herbicides, which makes it easier to get rid of weeds. It's a business that has a lot of potential, there's all sorts of stories about it. If you're a soybean farmer and you plant these herbicide-resistant soybeans, and then you spray the herbicide, your next-door neighbor darn well better have that too or they're going to lose their crop. There's almost a perverse way that once a product gets popular, it stays popular and grows. We're in the early days, but that's what Corteva is going for with soybeans and a lot of other products.
Sciple: These two sides of the business rhyme together. They will develop some type of, whether it's pesticide or an herbicide, or what have you. Then they'll also develop a proprietary seed that is resistant to those pesticides or herbicides. One thing you're going to talk about the business, historically Monsanto has been so dominant in the industry that Corteva is actually paying significant amounts of royalties to Monsanto for using some of their trades. But there are some opportunities for Corteva, and you talked about the investment case here, as they move more and more of their products to their own proprietary seed trades and things like that. They can take out some of those licensing fees they're paying to Monsanto, it really gives them an opportunity. You can project out over the next several years where they can expand their margins in a meaningful way.
Whiteman: The idea of it. If you have a better mousetrap, it will sell. Your customers are very reliant on getting the best yield they have. That has been the business model for these chemical companies, that's why they are so involved, Nick. We have a company at scale, they're one of a few, but are really trying to do this in a coordinated way at scale where they can really dominate a market.
Sciple: Just to throw some numbers out there. In 2018, about 18% of their portfolio was patented to their own existing in-house patents. They expect to have 34% of that by 2023, so really expanding the patent portion of their portfolio. Also introducing some new herbicide, pesticide products to the market. Hopefully, it can take some share from Monsanto, some of these other companies. I pulled a stat, two-thirds of Corteva's pioneer soybean seed use Monsanto's chemical trades now. A significant portion of their seeds that are subject to some of these licensing fees. But overtime, it can bring those down and hopefully expand margins as well as when they're launching some of these new products. The other thing to think about as well is, since the spin, they've been trying to get some of their costs under control, reducing headcount, those sorts of things. Can you tell us some about their efforts there, Lou?
Whiteman: They've reduced their manufacturing footprint pretty substantially, I think from 29-20 facilities since 2017. Headcount is down 25%. Again, this is what you'd expect from a merger. There's a lot of efficiency to be rung out here. Frankly, they've done a decent job of it. I don't think they would say, we're going to do the [...]. They're the first to say that the job isn't over. But this is an early days company that they're still trying to put together the pieces they have and develop it out.
Sciple: We talked about that margin expansion opportunity. If you look at their adjusted EBITDA margin, about half of their competitors, Bayer, Monsanto, have given about 26.9% FMC, and other competitors about 28% compared to about 14% for Corteva. We talked about this opportunity to expand margins as they introduce new products and get less reliant on some other licensed trades. However, for some investors, not happening fast enough, in particular, Starboard Value (NASDAQ: SVAC).
Whiteman: Starboard is a very well-known activist fund. We started getting hands back in November that they were going to get involved, and they have now nominated eight directors to the board for the 12 places and they are seeking to oust CEO Jim Collins due to what they call mediocre performance. We should note that, since this company went off on its own, June 2019, the stock is up 32%. That's basically in line with the S&P 500 and it's a lot better than either the other two, its sibling companies that came out of Dow-DuPont. DuPont is up about maybe 19% and Dow less than that, about 10%. It's not that the company has underperformed, but there is, as you say, the margins aren't what they want. Collins, the CEO, in response to Starboard said, "Probably the only question in the whole discussion is our view of the timing of the improvement." They were first to say, there's an improvement. It's going to be interesting, as far as an investor, looking at the stock to see who's in-charge in the next few months and whether or not there is an overhaul in the strategy which could be good, could be not so good.
Sciple: It'll be interesting because the management has laid out, like we talked about earlier, a path to where you can see margin expanding over time, and given the nature of the business, once you get in with these farmers, this is your core business. You have to grow these crops. Once you're in with these folks, it's going to be very difficult to dislodge them. There's clearly an opportunity there, it's going to be interesting to see with Actavis coming in, whether that is something that accelerates the pace of this transition or whether this is a distraction that gets in place of their execution. We'll see. I will say that Starboard historically has been a great allocator of capital. When they identify an opportunity, there tends to be real value there. We'll see what happens.
Whiteman: I have a lot of respect for Starboard, definitely. I think for investors who are interested in this, it's really important to note: February 4th is when Corteva is supposed to do earnings. Analysts are basically right at the top in terms of their estimates compared to Corteva's range. It's possible Corteva was low balling or was being conservative. Analysts also see 30% growth in 2021. It'll be really interesting to hear what they say about that. I got to believe that they're going to try to paint a positive message, whether it is or not. But it'll be really interesting to see how the story progresses when they do release earnings and what they see for 2021 and beyond.
Sciple: I don't own shares in Corteva today, but this is definitely one that's going to go on my watchlist because you can see where the story plays out. You can see how they would be ingrained with their customers out. This is something that's mission-critical to the business. Something I want to be watching and when earnings come out here next week, we'll take a look at them. Another company I wanted to talk about today, Lou, was Gladstone Land (NASDAQ: LAND). We mentioned them briefly last week on the podcast with Matt DiLallo, the ticker is LAND. Pretty easy to follow. What can you tell us about that Gladstone Land?
Whiteman: This is a farming REIT. They own farmland in I believe about 13 states, they pay monthly dividends. The yield right now is about 3.3% annually, and it has been increasing. This is a business, it's a pretty straightforward business. They buy the land, they lease it back to farmers. The interesting thing here is it gives you exposure to the farms without making a bet on an initial farm with a pretty standard but yet pretty attractive setup with the way they set up their leases.
Sciple: They mostly used triple-net leases, that's just kind of a finance term. But just to explain that in common sense terms for you, it means the person who's leasing the property treats it like they're the owner. So, they pay the taxes on it. They pay the licensing or whatever. They pay the maintenance, all those sorts of things. From the perspective of the REIT Gladstone Land, they lease out the property. They collect their rent payments, and they are not responsible for any of those other kinds of expenses that go into maintaining the property, that's distinguishable from another type of lease where the person who owns the property, the lesser, would be the one paying those sorts of expenses.
They also have some of their leases participating. They get their income from the firm, but primarily they're doing these triple-net leases. Another thing that is interesting when you look at their focus, they talk about they're focused more on two primary areas, which is annual fresh produce and permanent crops. What's that? Annual fresh produce is stuff like fruits and vegetables, tomatoes, things like that, stuff that you plant and harvest every year. Then permanent crops are things like blueberries, nuts, things like that, that you plant and then you'll have like a 10-year life once you have that orchard or what have you up and running. They're focusing on these areas to the detriment of things like wheat and corn and those sorts of grains that are more commodity products. What they say is, for those fresh produce, you get both higher rents and lower risk than those commodity crops. They're focusing on areas where they think there's a little bit lower risk for themselves, and they can generate higher income by having that focus. Interesting opportunity to invest in farmland here in the U.S..
Whiteman: Yeah. I think one thing interesting in comparing it to other REITs, as a REIT investor, a lot of REITs are tied to the economic cycle, whether it's industrial REITs, definitely retail. We saw that in 2020. Even some of the apartment REITS. As we said, the farm could be very cyclical, but it tends to be tied to a cycle other than the economic cycle. It may fall with it, but it may be an opportunity to keep yield coming in when other sectors are in trouble, which, as far as REIT diversification, I think makes it an interesting thing to think about.
Sciple: Yeah. Especially for someone looking for income, you want something that's non-correlated. Then also, they're paying dividends on a monthly basis. If you're running the stock like this so you can get regular dividend income coming in to support yourself for retirement or what have you, this is the type of company that it's unlikely you are going to experience volatility that's in line with what goes on in the stock market. Obviously, demand for farmland doesn't fluctuate in the same way that maybe the stock market does on a year-over-year basis, and they're paying you dividends on a monthly basis. So you can get this kind of steady income coming in. If you're someone who is an income investor, I think this is something you could put on your radar as something that can give you a steady, dependable income in a way that you can sleep at night relatively comfortably.
One last company I wanted to talk about, Lou, and this is one I think it's -- you pay attention to, but not one I'm super excited to run in and buy. It was a company called AppHarvest. It's coming public via a REIT this year. This vertical farming space. We talked about Gladstone Land buying traditional farmland. AppHarvest is taking a very different approach, trying to lean into some of the ESG-type movements.
Whiteman: Yeah. Let's look at this. It probably wouldn't surprise you that the U.S. is the biggest global farm exporter as we said, but it might surprise you that the Netherlands, the tiny little country is No. 2. The way they do that is tech greenhouse farm structure. AppHarvest has taken that model and brought it to the U.S. They have, I believe, three farms in Appalachia. The pitches can produce 30X the yields using 90% less water. Right now, it's mostly tomatoes and it is early stage. I don't own this stock either. I loved this idea. There's some reasons that I'm not buying in right now that we can get into. But this is fascinating to me. We talked about making the world a better place. This is the company that we need to be successful to make the world a better place. The warning on it is that it is a SPAC. So it's not public yet. Right now, I believe N-O-V-S. That deal should close soon. I'm not the only one excited about it. I tend not to like to buy IPOs in new companies anyway. I think the caution around buying into the excitement applies here. There is a Martha Stewart video on their website talking up the company, which I love Martha Stewart, but that's a hype level that makes me want to just watch and see what they produce. This is just three little farms in Appalachia right now and a great idea. This was all over my watchlist. I would imagine I would love to hold it at some point, but just be careful because this is, as we saw SPACs last year in other areas, people are very excited about this.
Sciple: Yeah. I think, like we've said, for a lot of these companies, the prospects are great. I think when you look at the produced water usage, better environmentally friendly, all those sorts of things. I like that they are in Appalachia, someone who is from the South. I like it when more rural areas get some people actually investing money there. But again, there's a lot of execution between now and really getting to a place where this is the future of farming and they're going to reach scale and all those sorts of things. But this is a company I'm definitely going to have my radar on and pay attention to as they continue to report earnings. Because you can tell yourself a story about how this type of vertical farming, indoor farming disrupts this traditional model, can be more efficient, cleaner, etc. Something to continue paying attention to as we have more information, because this company, like you said, Lou, isn't all the way public yet. We still got to have this SPAC deal finalized and then we get all our fun SEC filings on quarterly calls and all those sorts of things. Once we have that, I will be very much looking forward to seeing what the company has to say.
Whiteman: Right. Just to finish up along too, the interesting thing here is that it is a proven concept because it has worked elsewhere. The downside of that is that it needed to work there. Netherlands just doesn't have -- and this is an expensive proposition to get started, to get going. There's potential there, but in a country blessed with almost seemingly unlimited farmland for now, for long term it makes sense. But in the short-term, it could be a hard thing to really get up and running. I think you're right, just one to watch.
Sciple: Yeah. I think that's something I think about a lot with the history of the U.S. is like not a lot of countries over the past 200 years have had a lot of blank space on the map to expand into, but the U.S. has definitely been a beneficiary of that. That comes with farmland and lots of other things.
Whiteman: Not to mention that Mississippi River providing transportation, but yeah, but now I'm getting onto a tangent, so I'll stop [laughs].
Sciple: Before we go away Lou, just any advice for folks who are interested in investing in this kind of agriculture space? If you don't want to pick individual stocks, maybe ETFs to pay attention to, things like that.
Whiteman: Yeah. I think if nothing else, the point I think we've tried to make here today is that there is value here, especially for income. There's the old expression that land is important, because they're not making more of it. It still applies. Agriculture is key to our existence. They're not making more land. This is a business that over the long term can work, but has a lot of risks. There are some interesting and awesomely tickered, I should say, ETFs in the sector. I'm really interested in the market vectors agribusiness, which has a ticker of MOO, M-O-O. I like that it's got 60 or so stocks. You get some exposure to animal health, Zoetis and IDEXX, some of those which I know are popular here. But you also get a lot of the seeds and chemicals in a pretty diverse basket. There's another one, VEGGIE, which is an ETF that's a little more concentrated. Both of them have companies like John Deere and TU, which is when we didn't get, but which is a service provider to Ag, which is very interesting. The Farmland REIT, I think looking at that, I like land. There's also Farmland Partners, which is FPI, which I think is the same idea. I don't know if it's worked out as Gladstone Land, but this is just an area where the cloud isn't working so much or if you're looking for a little more income. Some way to get into this and have some exposure for a 20-30 year portfolio, I think makes a lot of sense and it's worth looking at.
Sciple: Absolutely. It gives you exposure, as we said earlier. This is an industry that is not going to trade correlated with the rest of the markets or particularly for an income investor, an area to pay attention to. Again, I don't think farming is going to go away. [laughs] An easy bet to predict. The beginning of civilization was farming. I think, if you're betting on civilization sticking around, farming is going to stick around too. Interesting area to invest in if you're looking for something uncorrelated that can give you some steady returns over time. Lou, as always, I love having you on the podcasts and I can't wait to have you on again next time.
Whiteman: Always a pleasure, Nick.
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 Tim Sparks for mixing the show, for Lou Whiteman, I'm Nick Sciple. Thanks for listening and Fool on!
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Idexx Laboratories. The Motley Fool owns shares of Farmland Partners and Zoetis. 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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We can get into it in depth, but there's a lot of synergies here, because increasingly, we are moving toward crops that resist certain herbicides, which makes it easier to get rid of weeds. In this episode of Industry Focus: Energy, we're discussing agriculture stocks. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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I think one thing interesting in comparing it to other REITs, as a REIT investor, a lot of REITs are tied to the economic cycle, whether it's industrial REITs, definitely retail. In this episode of Industry Focus: Energy, we're discussing agriculture stocks. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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I think one thing interesting in comparing it to other REITs, as a REIT investor, a lot of REITs are tied to the economic cycle, whether it's industrial REITs, definitely retail. In this episode of Industry Focus: Energy, we're discussing agriculture stocks. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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In this episode of Industry Focus: Energy, we're discussing agriculture stocks. 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.
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454d974a-3c1e-4b99-94f2-8b99a32d8a0c
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721606.0
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2021-01-29 00:00:00 UTC
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Deere Reaches Analyst Target Price
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DE
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https://www.nasdaq.com/articles/deere-reaches-analyst-target-price-2021-01-29
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $291.27, changing hands for $292.96/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 15 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 $185.00. And then on the other side of the spectrum one analyst has a target as high as $400.00. The standard deviation is $66.572.
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 $291.27/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $291.27 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: 9 7 7 7
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: 1.84 1.96 1.96 1.96
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.
The Top 25 Broker Analyst Picks 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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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $291.27, changing hands for $292.96/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 $291.27/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $291.27 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 $291.27, changing hands for $292.96/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 $291.27/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $291.27 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 $291.27, changing hands for $292.96/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 15 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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2e6849cb-8559-4bd8-9a2a-be2aad880907
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721607.0
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2021-01-29 00:00:00 UTC
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Caterpillar Stock To Trade Lower Post Q4 Results?
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DE
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https://www.nasdaq.com/articles/caterpillar-stock-to-trade-lower-post-q4-results-2021-01-29
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nan
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nan
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Caterpillar (NYSE:CAT) is scheduled to report its Q4 2020 results on Friday, January 29. We expect Caterpillar to likely post mixed results with revenue beating, while earnings fall short of the consensus estimates, driven by a sequential rebound in construction demand. We expect the company to navigate well based on these trends over the latest quarter.
However, our forecast indicates that Caterpillar’s valuation is around $158 per share, which is 15% below the current market price of around $187. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details.
(1) Revenues expected to be slightly above the consensus estimates
Trefis estimates Caterpillar’s Q4 2020 revenues to be around $11.35 billion, slightly ahead of $11.25 billion consensus estimate. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, impacting Caterpillar’s business, the gradual opening up of economies and resumption of construction activities is likely to have aided sales in Q4. Other than construction, the equipment demand for application in oil & gas is expected to remain much lower when compared to the prior year period. That said, usually Q4 is seasonally stronger for Caterpillar in the oil & gas segment, a trend which likely continued in 2020 as well. Caterpillar’s Q3 2020 sales were down a solid 23% to $9.9 billion, with sales down across segments. Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments.
2) EPS likely to be below the consensus estimates
Caterpillar Q4 2020 adjusted earnings per share (EPS) is expected to be $1.38 per Trefis analysis, compared to $1.49 as per the consensus estimate. Caterpillar’s adjusted net income of around $734 million in Q3 2020 reflected a 51% decline from its $1.5 billion figure in the prior-year quarter. The margins will likely improve going forward, as the construction as well as energy & transportation equipment demand sees a gradual rebound. For the full-year 2020, we expect the adjusted EPS to be lower at $5.35 compared to $11.06 in 2019.
(3) Stock price estimate lower than the current market price
Going by our Caterpillar Valuation, with an EPS estimate of around $5.35 and a P/E multiple of around 29x in 2020, this translates into a price of $158, which is 15% below the current market price of around $187. Although the 29x figure is higher than levels of around 13x seen over the recent years, seemingly making the CAT stock vulnerable to downside risk.
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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We expect Caterpillar to likely post mixed results with revenue beating, while earnings fall short of the consensus estimates, driven by a sequential rebound in construction demand. Other than construction, the equipment demand for application in oil & gas is expected to remain much lower when compared to the prior year period. Although the 29x figure is higher than levels of around 13x seen over the recent years, seemingly making the CAT stock vulnerable to downside risk.
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We expect Caterpillar to likely post mixed results with revenue beating, while earnings fall short of the consensus estimates, driven by a sequential rebound in construction demand. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, impacting Caterpillar’s business, the gradual opening up of economies and resumption of construction activities is likely to have aided sales in Q4.
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We expect Caterpillar to likely post mixed results with revenue beating, while earnings fall short of the consensus estimates, driven by a sequential rebound in construction demand. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, impacting Caterpillar’s business, the gradual opening up of economies and resumption of construction activities is likely to have aided sales in Q4.
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Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments. We expect Caterpillar to likely post mixed results with revenue beating, while earnings fall short of the consensus estimates, driven by a sequential rebound in construction demand. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details.
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84a9136b-f72c-4bcc-80a0-1f7dc7ec6647
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721608.0
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2021-01-28 00:00:00 UTC
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Noteworthy Thursday Option Activity: DE, ERIE, EHTH
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-de-erie-ehth-2021-01-28
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nan
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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 Deere & Co. (Symbol: DE), where a total of 8,219 contracts have traded so far, representing approximately 821,900 underlying shares. That amounts to about 50.8% of DE's average daily trading volume over the past month of 1.6 million shares. Particularly high volume was seen for the $297.50 strike call option expiring January 29, 2021, with 942 contracts trading so far today, representing approximately 94,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $297.50 strike highlighted in orange:
Erie Indemnity Co. (Symbol: ERIE) saw options trading volume of 300 contracts, representing approximately 30,000 underlying shares or approximately 50.7% of ERIE's average daily trading volume over the past month, of 59,150 shares. Particularly high volume was seen for the $258 strike call option expiring March 19, 2021, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of ERIE. Below is a chart showing ERIE's trailing twelve month trading history, with the $258 strike highlighted in orange:
And eHealth Inc (Symbol: EHTH) options are showing a volume of 3,802 contracts thus far today. That number of contracts represents approximately 380,200 underlying shares, working out to a sizeable 48.9% of EHTH's average daily trading volume over the past month, of 777,520 shares. Particularly high volume was seen for the $135 strike call option expiring January 21, 2022, with 1,084 contracts trading so far today, representing approximately 108,400 underlying shares of EHTH. Below is a chart showing EHTH's trailing twelve month trading history, with the $135 strike highlighted in orange:
For the various different available expirations for DE options, ERIE options, or EHTH 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 $297.50 strike call option expiring January 29, 2021, with 942 contracts trading so far today, representing approximately 94,200 underlying shares of DE. Particularly high volume was seen for the $258 strike call option expiring March 19, 2021, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of ERIE. Particularly high volume was seen for the $135 strike call option expiring January 21, 2022, with 1,084 contracts trading so far today, representing approximately 108,400 underlying shares of EHTH.
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Particularly high volume was seen for the $297.50 strike call option expiring January 29, 2021, with 942 contracts trading so far today, representing approximately 94,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $297.50 strike highlighted in orange: Erie Indemnity Co. (Symbol: ERIE) saw options trading volume of 300 contracts, representing approximately 30,000 underlying shares or approximately 50.7% of ERIE's average daily trading volume over the past month, of 59,150 shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 8,219 contracts have traded so far, representing approximately 821,900 underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 8,219 contracts have traded so far, representing approximately 821,900 underlying shares. Particularly high volume was seen for the $297.50 strike call option expiring January 29, 2021, with 942 contracts trading so far today, representing approximately 94,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $297.50 strike highlighted in orange: Erie Indemnity Co. (Symbol: ERIE) saw options trading volume of 300 contracts, representing approximately 30,000 underlying shares or approximately 50.7% of ERIE's average daily trading volume over the past month, of 59,150 shares.
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Particularly high volume was seen for the $297.50 strike call option expiring January 29, 2021, with 942 contracts trading so far today, representing approximately 94,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $297.50 strike highlighted in orange: Erie Indemnity Co. (Symbol: ERIE) saw options trading volume of 300 contracts, representing approximately 30,000 underlying shares or approximately 50.7% of ERIE's average daily trading volume over the past month, of 59,150 shares. Below is a chart showing EHTH's trailing twelve month trading history, with the $135 strike highlighted in orange: For the various different available expirations for DE options, ERIE options, or EHTH options, visit StockOptionsChannel.com.
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54431d3b-ea65-45d7-83a2-b6902240ea23
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721609.0
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2021-01-25 00:00:00 UTC
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Notable ETF Outflow Detected - IVW, SPGI, DE, ATVI
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DE
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-ivw-spgi-de-atvi-2021-01-25
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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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $105.0 million dollar outflow -- that's a 0.3% decrease week over week (from 499,500,000 to 497,900,000). Among the largest underlying components of IVW, in trading today Standard and Poors Global Inc (Symbol: SPGI) is up about 0.3%, Deere & Co. (Symbol: DE) is off about 0.3%, and Activision Blizzard, Inc. (Symbol: ATVI) is higher by about 0.6%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $66.48 as the 52 week high point — that compares with a last trade of $66.32. 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 IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $66.48 as the 52 week high point — that compares with a last trade of $66.32. 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 IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $66.48 as the 52 week high point — that compares with a last trade of $66.32. 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $105.0 million dollar outflow -- that's a 0.3% decrease week over week (from 499,500,000 to 497,900,000).
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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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $105.0 million dollar outflow -- that's a 0.3% decrease week over week (from 499,500,000 to 497,900,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $66.48 as the 52 week high point — that compares with a last trade of $66.32. 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $105.0 million dollar outflow -- that's a 0.3% decrease week over week (from 499,500,000 to 497,900,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $66.48 as the 52 week high point — that compares with a last trade of $66.32. 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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76aa1d68-ddde-4dbc-bc52-dbe265726749
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721610.0
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2021-01-22 00:00:00 UTC
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These 3 Stocks Are the Real Deal
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DE
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https://www.nasdaq.com/articles/these-3-stocks-are-the-real-deal-2021-01-22
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nan
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nan
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These three stocks are all set for good near- and long-term growth, but for completely different reasons. Copper miner Freeport-McMoRan (NYSE: FCX) is set to benefit from increased demand for copper for use in renewable energy and hybrid/electric vehicles. Deere's (NYSE: DE) investment in precision agriculture technology makes it a leader in the smart farming revolution. And Stanley Black & Decker's (NYSE: SWK) management has pulled out all the stops in positioning the company for growth after a difficult period of external headwinds.
Freeport-McMoRan, electric vehicles, and renewable energy
The near- and long-term case for copper is simple. In the near term the post-pandemic recovery in the global economy will drive demand for the highly economically sensitive commodity. Over the long term the marginal increase in demand for copper will be driven by two hot technologies.
According to the International Copper Association, a battery-operated electric vehicle uses up to four times the amount of copper an internal combustion engine (ICE) vehicle does, and a hybrid electric vehicle uses up to double an ICE. In addition, using renewable energy to generate power requires four to five times the amount of copper than fossil fuel. It comes down to the increased need for copper wiring in electric/hybrid vehicles and in the transmission and distribution networks needed for renewable energy.
Image source: Getty Images.
Buying Freeport-McMoRan is a combination of confidence in management's ability to find new copper reserves and long-term assumptions about the price of copper. For an example of the sensitivity of earnings to changes in the price of copper, Freeport-McMoRan's management estimates that a $0.10 per pound change in the price of copper will result in a $390 million change in earnings before interest, taxation, depreciation, and amortization (EBITDA). For reference, EBITDA is forecast to be around $3.8 billion in 2020 and the current price of copper is around $3.60 per pound.
Commodity prices are always volatile and subject to wild swings due to near-term supply and demand considerations, so don't be surprised if there are corrections along the way. However, if you think long-term copper prices are going up in response to structural shifts in demand from EVs and renewable energy, then the mining stock may be a good buy for you.
Deere gets smart
The investment case for Deere's stock is based on the long-term demand for crops and the company's leadership position in smart farming technology. Just as with copper and Freeport-McMoRan, the price of commodities like corn, wheat, and soybeans is volatile. However, growth in long-term demand looks assured.
It's not simply a case of demand for crops for direct human consumption. Generally speaking, moving into the middle class for much of the world means going from a predominantly grain-based diet to one that incorporates more meat and protein.
That's something that implies significantly more demand for crops because of something called the feed conversion ratio. This is simply how much weight in feed it requires to produce the same amount of weight of animal protein. The feed conversion ratio is roughly 6 for beef, 3.5 for pigs, and 2 for poultry. Consequently, when a consumer shifts from eating a kg of crop to a kg of, say beef, it means 6 kg of crop feed will be required instead of 1 kg.
Image source: Getty Images.
Deere also has secular growth prospects. The company's precision agriculture solutions make it the leader in the smart farming technology revolution. Using Deere's digital solutions farmers are able to do everything from using satellites to guide machinery through to using big data analytics to decide what seeds to plant, how to prepare the soil, and how to protect and harvest the crop.
The technological improvements all speak to helping farmers maximize crop yield, something that's always likely to be in demand. As such, Deere is well set for the long term.
Stanley Black & Decker is clearing headwinds
A combination of unfavorable foreign exchange movements, trade tariffs, and rising commodity prices have created external cost headwinds to the tune of around $1 billion in 2018–2020. However, that hasn't stopped the company from wringing every bit of growth it can out of its end markets.
Image source: Getty Images.
Indeed, CEO Jim Loree has been busy buying businesses for growth while aggressively cutting costs. On the acquisition front Stanley bought the Craftsman brand from Sears and the tools business of Newell Brands in 2017. In addition, Stanley is set to buy the 80% of lawn and garden equipment manufacturer MTD. Meanwhile, the company's early investment in e-commerce paid off in 2020 as stay-at-home measures led to a surge in demand for DIY equipment.
With the external cost headwinds dissipating, internal cost-cutting measures in place, and the growth initiatives paying off, Stanley is set for a significant increase in earnings and free cash flow in the coming years. Analysts have earnings increasing at a double-digit rate for the next few years and the stock trading on just 15 times its free cash flow in 2022. Consequently, Stanley remains a very attractive stock for investors.
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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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And Stanley Black & Decker's (NYSE: SWK) management has pulled out all the stops in positioning the company for growth after a difficult period of external headwinds. Using Deere's digital solutions farmers are able to do everything from using satellites to guide machinery through to using big data analytics to decide what seeds to plant, how to prepare the soil, and how to protect and harvest the crop. Copper miner Freeport-McMoRan (NYSE: FCX) is set to benefit from increased demand for copper for use in renewable energy and hybrid/electric vehicles.
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Deere's (NYSE: DE) investment in precision agriculture technology makes it a leader in the smart farming revolution. The company's precision agriculture solutions make it the leader in the smart farming technology revolution. Copper miner Freeport-McMoRan (NYSE: FCX) is set to benefit from increased demand for copper for use in renewable energy and hybrid/electric vehicles.
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Copper miner Freeport-McMoRan (NYSE: FCX) is set to benefit from increased demand for copper for use in renewable energy and hybrid/electric vehicles. However, if you think long-term copper prices are going up in response to structural shifts in demand from EVs and renewable energy, then the mining stock may be a good buy for you. Deere gets smart The investment case for Deere's stock is based on the long-term demand for crops and the company's leadership position in smart farming technology.
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Deere gets smart The investment case for Deere's stock is based on the long-term demand for crops and the company's leadership position in smart farming technology. As such, Deere is well set for the long term. Copper miner Freeport-McMoRan (NYSE: FCX) is set to benefit from increased demand for copper for use in renewable energy and hybrid/electric vehicles.
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5d0a43f1-42d7-49f0-b478-436c79b925e1
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721611.0
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2021-01-15 00:00:00 UTC
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Noteworthy Friday Option Activity: TDG, DE, CLX
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-tdg-de-clx-2021-01-15
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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 TransDigm Group Inc (Symbol: TDG), where a total volume of 1,103 contracts has been traded thus far today, a contract volume which is representative of approximately 110,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 50.4% of TDG's average daily trading volume over the past month, of 219,005 shares. Especially high volume was seen for the $280 strike put option expiring May 21, 2021, with 94 contracts trading so far today, representing approximately 9,400 underlying shares of TDG. Below is a chart showing TDG's trailing twelve month trading history, with the $280 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 6,986 contracts, representing approximately 698,600 underlying shares or approximately 44.6% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $290 strike put option expiring January 22, 2021, with 544 contracts trading so far today, representing approximately 54,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $290 strike highlighted in orange:
And Clorox Co (Symbol: CLX) options are showing a volume of 5,021 contracts thus far today. That number of contracts represents approximately 502,100 underlying shares, working out to a sizeable 44.1% of CLX's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $200 strike call option expiring January 22, 2021, with 293 contracts trading so far today, representing approximately 29,300 underlying shares of CLX. Below is a chart showing CLX's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for TDG options, DE options, or CLX 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 $280 strike put option expiring May 21, 2021, with 94 contracts trading so far today, representing approximately 9,400 underlying shares of TDG. Particularly high volume was seen for the $290 strike put option expiring January 22, 2021, with 544 contracts trading so far today, representing approximately 54,400 underlying shares of DE. Particularly high volume was seen for the $200 strike call option expiring January 22, 2021, with 293 contracts trading so far today, representing approximately 29,300 underlying shares of CLX.
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Below is a chart showing TDG's trailing twelve month trading history, with the $280 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 6,986 contracts, representing approximately 698,600 underlying shares or approximately 44.6% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $290 strike put option expiring January 22, 2021, with 544 contracts trading so far today, representing approximately 54,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $290 strike highlighted in orange: And Clorox Co (Symbol: CLX) options are showing a volume of 5,021 contracts thus far today.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in TransDigm Group Inc (Symbol: TDG), where a total volume of 1,103 contracts has been traded thus far today, a contract volume which is representative of approximately 110,300 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing TDG's trailing twelve month trading history, with the $280 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 6,986 contracts, representing approximately 698,600 underlying shares or approximately 44.6% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $290 strike put option expiring January 22, 2021, with 544 contracts trading so far today, representing approximately 54,400 underlying shares of DE.
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Below is a chart showing TDG's trailing twelve month trading history, with the $280 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 6,986 contracts, representing approximately 698,600 underlying shares or approximately 44.6% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $200 strike call option expiring January 22, 2021, with 293 contracts trading so far today, representing approximately 29,300 underlying shares of CLX. Below is a chart showing CLX's trailing twelve month trading history, with the $200 strike highlighted in orange: For the various different available expirations for TDG options, DE options, or CLX options, visit StockOptionsChannel.com.
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03939fbb-9aaf-4333-bc60-3ae4e8574d2e
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721612.0
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2021-01-14 00:00:00 UTC
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September 17th Options Now Available For Deere (DE)
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DE
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https://www.nasdaq.com/articles/september-17th-options-now-available-for-deere-de-2021-01-14
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the September 17th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new September 17th 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 $27.60. 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 $272.40 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $306.18/share today.
Because the $300.00 strike represents an approximate 2% 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 9.20% return on the cash commitment, or 13.65% 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 $310.00 strike price has a current bid of $27.10. If an investor was to purchase shares of DE stock at the current price level of $306.18/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $310.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.10% if the stock gets called away at the September 17th 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 $310.00 strike highlighted in red:
Considering the fact that the $310.00 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 8.85% boost of extra return to the investor, or 13.13% 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 $306.18) to be 46%. 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 $310.00 strike highlighted in red: Considering the fact that the $310.00 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 begin trading today, for the September 17th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $310.00 strike highlighted in red: Considering the fact that the $310.00 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 begin trading today, for the September 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new September 17th 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 $310.00 strike price has a current bid of $27.10. Below is a chart showing DE's trailing twelve month trading history, with the $310.00 strike highlighted in red: Considering the fact that the $310.00 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 September 17th 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 $310.00 strike highlighted in red: Considering the fact that the $310.00 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 begin trading today, for the September 17th expiration.
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a3061ce7-db0e-4255-94bf-c7970d819815
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721613.0
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2021-01-12 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-fuboTV, ArcLight, Liminal BioSciences, Biomerica
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DE
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-fubotv-arclight-liminal-biosciences-biomerica-2021-01-12
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. .N
At 10:44 ET, the Dow Jones Industrial Average .DJI was up 0.13% at 31,049.78. The S&P 500 .SPX was up 0.24% at 3,808.54 and the Nasdaq Composite .IXIC was up 0.26% at 13,070.016. The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5%
BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0%
BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4%
BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3%
BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8%
BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5%
BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3%
BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8%
BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0%
BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3%
BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5%
BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2%
BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4%
BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7%
BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5%
BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5%
BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2%
BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1%
BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2%
BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8%
BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7%
BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6%
BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3%
BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0%
BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4%
BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6%
BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 1.05%
Consumer Discretionary
.SPLRCD
up 1.39%
Consumer Staples
.SPLRCS
down 0.09%
Energy
.SPNY
up 3.14%
Financial
.SPSY
up 1.22%
Health
.SPXHC
down 0.78%
Industrial
.SPLRCI
up 0.69%
Information Technology
.SPLRCT
down 0.36%
Materials
.SPLRCM
up 0.61%
Real Estate
.SPLRCR
down 0.44%
Utilities
.SPLRCU
down 0.16%
(Compiled by Lasya Priya M in Bengaluru)
((LasyaPriya.M@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. down 0.16% (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. down 0.16% (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment The 11 major S&P 500 sectors: Communication Services .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 0.13% at 31,049.78. down 1.05% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 0.13% at 31,049.78.
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c9d399f0-3067-4186-85ed-0c92aba4affd
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721614.0
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2021-01-12 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Tencent Music, Xpeng, VOXX International
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DE
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-tencent-music-xpeng-voxx-international-2021-01-12
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stock index futures resumed their climb on Tuesday as investors looked to the earnings season this week for clues on the health of Corporate America and the economy while awaiting details on the next package of official economic stimulus. .N
At 7:59 ET, Dow e-minis 1YMc1 were up 0.23% at 30,973. S&P 500 e-minis ESc1 were up 0.25% at 3,801.5, while Nasdaq 100 e-minis NQc1 were up 0.36% at 12,943. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Ribbit LEAP Ltd , up 14.6% ** Star Peak Energy Transition Corp , up 11.1% ** Templeton Global Income Fund , up 10.6% The top three NYSE percentage losers premarket .PRPL.NQ: ** Lemonade Inc , down 7.3% ** U.S. Silica Holdings , down 7.1% ** Velocity Financial Inc , down 5.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** US Well Services Inc , up 154.7% ** ArcLight Clean Transition Corp , up 105.5% ** Us Well Services Inc , up 91.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Lexaria Bioscience Corp , down 33.3% ** Bit Digital Inc , down 19.6% ** LM Funding America Inc , down 11.4% ** Walmart Inc WMT.N : up 1.1% premarket BUZZ-Walmart rises on tie-up to create fintech platform ** Happiness Biotech HAPP.O : up 15.1% premarket BUZZ-Soars on sharp growth in e-commerce business ** VOXX International VOXX.O : up 57.5% premarket BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 3.8% premarket BUZZ-Rises as co secures $2 bln credit from banks ** Teladoc Health TDOC.N : up 1.7% premarket BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** US Well Services Inc USWS.O : up 91.7% premarket BUZZ-Gains on extension of contract with Range Resources ** Deere& Co DE.N : up 0.1% premarket ** Caterpillar Inc CAT.N : up 0.4% premarket ** Illinois Tool Works Inc ITW.N : up 0.7% premarket ** Oshkosh Corp OSK.N : up 1.4% premarket BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 7.1% premarket BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 7.3% premarket BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 0.9% premarket BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 0.7% premarket BUZZ-Jumps after filing shows large investment by David Einhorn
(Compiled by Lasya Priya M in Bengaluru)
((LasyaPriya.M@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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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures resumed their climb on Tuesday as investors looked to the earnings season this week for clues on the health of Corporate America and the economy while awaiting details on the next package of official economic stimulus. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Ribbit LEAP Ltd , up 14.6% ** Star Peak Energy Transition Corp , up 11.1% ** Templeton Global Income Fund , up 10.6% The top three NYSE percentage losers premarket .PRPL.NQ: ** Lemonade Inc , down 7.3% ** U.S. Silica Holdings , down 7.1% ** Velocity Financial Inc , down 5.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** US Well Services Inc , up 154.7% ** ArcLight Clean Transition Corp , up 105.5% ** Us Well Services Inc , up 91.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Lexaria Bioscience Corp , down 33.3% ** Bit Digital Inc , down 19.6% ** LM Funding America Inc , down 11.4% ** Walmart Inc WMT.N : up 1.1% premarket BUZZ-Walmart rises on tie-up to create fintech platform ** Happiness Biotech HAPP.O : up 15.1% premarket BUZZ-Soars on sharp growth in e-commerce business ** VOXX International VOXX.O : up 57.5% premarket BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 3.8% premarket BUZZ-Rises as co secures $2 bln credit from banks ** Teladoc Health TDOC.N : up 1.7% premarket BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** US Well Services Inc USWS.O : up 91.7% premarket BUZZ-Gains on extension of contract with Range Resources ** Deere& Co DE.N : up 0.1% premarket ** Caterpillar Inc CAT.N : up 0.4% premarket ** Illinois Tool Works Inc ITW.N : up 0.7% premarket ** Oshkosh Corp OSK.N : up 1.4% premarket BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 7.1% premarket BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 7.3% premarket BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 0.9% premarket BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 0.7% premarket BUZZ-Jumps after filing shows large investment by David Einhorn (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@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. .N At 7:59 ET, Dow e-minis 1YMc1 were up 0.23% at 30,973.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures resumed their climb on Tuesday as investors looked to the earnings season this week for clues on the health of Corporate America and the economy while awaiting details on the next package of official economic stimulus. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Ribbit LEAP Ltd , up 14.6% ** Star Peak Energy Transition Corp , up 11.1% ** Templeton Global Income Fund , up 10.6% The top three NYSE percentage losers premarket .PRPL.NQ: ** Lemonade Inc , down 7.3% ** U.S. Silica Holdings , down 7.1% ** Velocity Financial Inc , down 5.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** US Well Services Inc , up 154.7% ** ArcLight Clean Transition Corp , up 105.5% ** Us Well Services Inc , up 91.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Lexaria Bioscience Corp , down 33.3% ** Bit Digital Inc , down 19.6% ** LM Funding America Inc , down 11.4% ** Walmart Inc WMT.N : up 1.1% premarket BUZZ-Walmart rises on tie-up to create fintech platform ** Happiness Biotech HAPP.O : up 15.1% premarket BUZZ-Soars on sharp growth in e-commerce business ** VOXX International VOXX.O : up 57.5% premarket BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 3.8% premarket BUZZ-Rises as co secures $2 bln credit from banks ** Teladoc Health TDOC.N : up 1.7% premarket BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** US Well Services Inc USWS.O : up 91.7% premarket BUZZ-Gains on extension of contract with Range Resources ** Deere& Co DE.N : up 0.1% premarket ** Caterpillar Inc CAT.N : up 0.4% premarket ** Illinois Tool Works Inc ITW.N : up 0.7% premarket ** Oshkosh Corp OSK.N : up 1.4% premarket BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 7.1% premarket BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 7.3% premarket BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 0.9% premarket BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 0.7% premarket BUZZ-Jumps after filing shows large investment by David Einhorn (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@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. S&P 500 e-minis ESc1 were up 0.25% at 3,801.5, while Nasdaq 100 e-minis NQc1 were up 0.36% at 12,943.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures resumed their climb on Tuesday as investors looked to the earnings season this week for clues on the health of Corporate America and the economy while awaiting details on the next package of official economic stimulus. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Ribbit LEAP Ltd , up 14.6% ** Star Peak Energy Transition Corp , up 11.1% ** Templeton Global Income Fund , up 10.6% The top three NYSE percentage losers premarket .PRPL.NQ: ** Lemonade Inc , down 7.3% ** U.S. Silica Holdings , down 7.1% ** Velocity Financial Inc , down 5.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** US Well Services Inc , up 154.7% ** ArcLight Clean Transition Corp , up 105.5% ** Us Well Services Inc , up 91.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Lexaria Bioscience Corp , down 33.3% ** Bit Digital Inc , down 19.6% ** LM Funding America Inc , down 11.4% ** Walmart Inc WMT.N : up 1.1% premarket BUZZ-Walmart rises on tie-up to create fintech platform ** Happiness Biotech HAPP.O : up 15.1% premarket BUZZ-Soars on sharp growth in e-commerce business ** VOXX International VOXX.O : up 57.5% premarket BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 3.8% premarket BUZZ-Rises as co secures $2 bln credit from banks ** Teladoc Health TDOC.N : up 1.7% premarket BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** US Well Services Inc USWS.O : up 91.7% premarket BUZZ-Gains on extension of contract with Range Resources ** Deere& Co DE.N : up 0.1% premarket ** Caterpillar Inc CAT.N : up 0.4% premarket ** Illinois Tool Works Inc ITW.N : up 0.7% premarket ** Oshkosh Corp OSK.N : up 1.4% premarket BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 7.1% premarket BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 7.3% premarket BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 0.9% premarket BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 0.7% premarket BUZZ-Jumps after filing shows large investment by David Einhorn (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@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. S&P 500 e-minis ESc1 were up 0.25% at 3,801.5, while Nasdaq 100 e-minis NQc1 were up 0.36% at 12,943.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures resumed their climb on Tuesday as investors looked to the earnings season this week for clues on the health of Corporate America and the economy while awaiting details on the next package of official economic stimulus. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Ribbit LEAP Ltd , up 14.6% ** Star Peak Energy Transition Corp , up 11.1% ** Templeton Global Income Fund , up 10.6% The top three NYSE percentage losers premarket .PRPL.NQ: ** Lemonade Inc , down 7.3% ** U.S. Silica Holdings , down 7.1% ** Velocity Financial Inc , down 5.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** US Well Services Inc , up 154.7% ** ArcLight Clean Transition Corp , up 105.5% ** Us Well Services Inc , up 91.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Lexaria Bioscience Corp , down 33.3% ** Bit Digital Inc , down 19.6% ** LM Funding America Inc , down 11.4% ** Walmart Inc WMT.N : up 1.1% premarket BUZZ-Walmart rises on tie-up to create fintech platform ** Happiness Biotech HAPP.O : up 15.1% premarket BUZZ-Soars on sharp growth in e-commerce business ** VOXX International VOXX.O : up 57.5% premarket BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 3.8% premarket BUZZ-Rises as co secures $2 bln credit from banks ** Teladoc Health TDOC.N : up 1.7% premarket BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** US Well Services Inc USWS.O : up 91.7% premarket BUZZ-Gains on extension of contract with Range Resources ** Deere& Co DE.N : up 0.1% premarket ** Caterpillar Inc CAT.N : up 0.4% premarket ** Illinois Tool Works Inc ITW.N : up 0.7% premarket ** Oshkosh Corp OSK.N : up 1.4% premarket BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 7.1% premarket BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 7.3% premarket BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 0.9% premarket BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 0.7% premarket BUZZ-Jumps after filing shows large investment by David Einhorn (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@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. .N At 7:59 ET, Dow e-minis 1YMc1 were up 0.23% at 30,973.
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fc06f0bd-7a1a-4c31-b766-e1f1eddfc3b2
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721615.0
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2021-01-11 00:00:00 UTC
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3 U.S. Stocks to Trade in 2021 as the Dollar Stabilizes
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DE
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https://www.nasdaq.com/articles/3-u.s.-stocks-to-trade-in-2021-as-the-dollar-stabilizes-2021-01-11
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Among all the uncertainties last year, there was one theme that played out almost all year long. The U.S. dollar couldn’t find find footing, which had a levitating effect on several segments on Wall Street. A weak dollar favors domestic corporations who have exports. Those U.S. stocks have blossomed, since with a lower dollar, foreign countries can then better afford our exports.
The collapse in the U.S. currency also opened the door for prosperity in all commodities that are priced in it. Case in point, oil and copper are up 90% since the March-April lows.
Two other themes also emerged from this weakness. Gold finally broke its own record that has been standing since 2011. But the clear winner by far was Bitcoin, which rallied 1,000% from the depth of the pandemic correction. It is correcting a bit in the past couple days, but the rally was enormous.
Clearly this weakness in dollars cannot continue for ever and if it does then we will have bigger problems. The assumption today is that this year, and perhaps starting soon, the trend will start to reverse.
The dollar should start to find footing and the chain of events could unravel. Investors who hang on to the theme a bit too long or come into it late will suffer. Below, we discuss one precarious situation where investors should leave. Then we will offer a similar ticker to hide in if necessary. Thirdly we will offer a swing trade that could be the surprise of the year.
7 5G Stocks to Buy As Security Concerns Dominate Tech Decisions
The three tickers for today are:
Deere (NYSE:DE): This is the one with the warning.
3M Company (NYSE:MMM): This is the alternative.
Invesco DB US Dollar Index Bullish Fund (NYSEARCA:UUP): The surprise opportunity of 2021
U.S. Stocks to Trade: Deere (DE)
Source: Charts by TradingView
DE stock is the star of the show today. It’s up 65% in a year and 85% in six months. It won’t be a disaster or a surprise if it loses a little bit of steam. That’s not to say it’s a short. The chart has gone parabolic and is vulnerable to corrections. We’ve seen stocks ramp like this before — Tesla (NASDAQ:TSLA), to name one. But Deere isn’t typically volatile.
Perhaps the U.S. election results had something to do with the exuberance for it on Wall Street. Or there is also the expectations of higher farming exports. What ever it is, I fail to see most of it.
First of all, the global economy is in worse shape now that in the summer of last year. The U.S. is spending trillions, but overseas, most poorer countries are starving. Not all governments are able to baby their citizens like we do here. The point is that we don’t yet have a booming economy. This is the desperate effort to claw our way of our a gigantic crater in which we jumped. As for DE stock fundamentals they are solid but that is my point.
The way Wall Street prices it, Deere is not a growth stock, so its price shouldn’t be explosive. Proof of this is its price-to-sales is under 3. That’s not a lot of credit and for good reason. Since 2017, its net income barely rose, yet its market capitalization has doubled. Definitely warning signs and leaves it vulnerable to sharp pullbacks.
Those long the stock should be leery of their positions. Having some protection here is most definitely a good idea. I would not even think about buying shares until it revisits prior breakout lines. The first of those is near $270 per share. The better levels for my taste would be closer to $250 or lower.
3M (MMM)
Source: Charts by Trading View
3M is a good ole American company that’s been doing great things for 119 years. Clearly the comments today won’t amount to much over the long haul. During the depths of the pandemic panic I wrote an article that it was safe to own MMM stock. Although I didn’t nail the absolute bottom, it rallied 20% from there and is still 15% green.
Unlike DE stock, the ascent here is more tapered. I don’t see the precarious risk that is clearly visible there.
The chart is a gentle ascending channel, and the opportunity today is that price is near its lower edge. Odds are that the machines will buy the dip and try to swing trade it to $176 per share. There is the potential for slightly more downside, but support should be strong as it nears $158.
Setting stop losses is an important step for traders whereas investors don’t care as much. In this case, there is the possibility of a market-wide hiccup that could cause a dip to $149 per share. Either way, these are entry points that are not likely to be financial disasters in the long run.
3M is not exciting to watch and that’s why it has a P/E under 20 and a P/S of around 3. In addition, the investors get to enjoy a yield over 3%.
8 Best Entertainment Stocks to Buy on a Changing Media Landscape
I am noting the differential as an opportunity to roll out of DE and into MMM for a safer bet into February. This is the time of year when big themes develop. And it’s not usually the incumbent that renews. Meaning that what was going on is not likely to continue.
Invesco DB US Dollar Index Bullish Fund (UUP)
Source: Charts by TradingView
There is a lack of respect for the dollar of late, and that’s not good in the long run. For now, our domestic corporations are reaping the rewards but there are longer term implications. The world will not tolerate pricing commodities using a currency in free-fall. There will need to be a reversal of the trend, and soon. This won’t likely be a moment in time but rather a process.
The first order of business is for the U.S. dollar to snap out of its descending channel.
Part of the problem is the talks of stimulus packages. I think we are too lax discussing the amounts. I remember when in 2008 they mentioned the $750 billion T.A.R.P. (Troubled Asset Relief Program), jaws dropped. All said and done, they did the job with only $450 billion. This time, the warm up amount was in the trillions.
Most recently the people were disappointed with an additional trillion. I am shocked as to how little value we hold in the our precious dollar. And therein lies the problem.
Clearly we are devaluing currencies around the world and that’s why alternative vehicles are gaining popularity. It’s not a coincidence that this is the year of Bitcoin, when governments are breaking records with helicopter money. This will have to stop soon and the frenzy grab for dollar alternative will abate.
To trade this I want to be long the UUP. My experience tells me that I should use options, but not with a spread. The only way I’ve had success in the past is by buying calls way out in time and at current price. Going too high up the options chain often results in disappointments.
On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nicolas Chahine is the managing director of SellSpreads.com.
The post 3 U.S. Stocks to Trade in 2021 as the Dollar Stabilizes 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 5G Stocks to Buy As Security Concerns Dominate Tech Decisions The three tickers for today are: Deere (NYSE:DE): This is the one with the warning. 8 Best Entertainment Stocks to Buy on a Changing Media Landscape I am noting the differential as an opportunity to roll out of DE and into MMM for a safer bet into February. But the clear winner by far was Bitcoin, which rallied 1,000% from the depth of the pandemic correction.
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Invesco DB US Dollar Index Bullish Fund (NYSEARCA:UUP): The surprise opportunity of 2021 U.S. Stocks to Trade: Deere (DE) Source: Charts by TradingView DE stock is the star of the show today. Invesco DB US Dollar Index Bullish Fund (UUP) Source: Charts by TradingView There is a lack of respect for the dollar of late, and that’s not good in the long run. But the clear winner by far was Bitcoin, which rallied 1,000% from the depth of the pandemic correction.
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Invesco DB US Dollar Index Bullish Fund (NYSEARCA:UUP): The surprise opportunity of 2021 U.S. Stocks to Trade: Deere (DE) Source: Charts by TradingView DE stock is the star of the show today. Invesco DB US Dollar Index Bullish Fund (UUP) Source: Charts by TradingView There is a lack of respect for the dollar of late, and that’s not good in the long run. But the clear winner by far was Bitcoin, which rallied 1,000% from the depth of the pandemic correction.
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The way Wall Street prices it, Deere is not a growth stock, so its price shouldn’t be explosive. But the clear winner by far was Bitcoin, which rallied 1,000% from the depth of the pandemic correction. Then we will offer a similar ticker to hide in if necessary.
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2021-01-08 00:00:00 UTC
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Motley Fool Money: 2021 Preview Show
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https://www.nasdaq.com/articles/motley-fool-money%3A-2021-preview-show-2021-01-08
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Why should investors be watching 5G, financials, healthcare, and industrials in 2021? Why do Cloudflare (NYSE: NET) and Docusign (NASDAQ: DOCU) have big upside potential? Will Berkshire Hathaway, Etsy (NASDAQ: ETSY), and NBC's Peacock surprise investors in 2021? Will Roblox score a big IPO? Are Marriott International and Match Group poised for a comeback? And how will the cannabis industry fare in the new year? A few Fools tackle those questions, talk about other stocks, and make some reckless predictions about 2021 in this episode of Motley Fool Money.
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 January 1, 2021.
Mac Greer: Gentlemen, Happy New Year.
Jason Moser: Happy New Year.
Ron Gross: How are you doing, Mac? Happy New Year to you as well.
Greer: Well, thank you. It is our 2021 Preview Show. Guys, Chris Hill, a late scratch. His back is [laughs] bothering him. So, all I ask is that we put together a show that does not aggravate his back. Okay?
Gross: [laughs] That's a tall order, my friend.
Moser: Yeah.
Greer: Okay. I think you can do it. [laughs] The good news is that we get to say goodbye to 2020. Are you ready to say goodbye to 2020?
Gross: I'm ready to say good riddance.
Moser: I think a lot of us said goodbyes, it's just a little while back, even Mac, it's been a long time coming and feels like [laughs].
Greer: Woof, 2020. Don't let the door hit you on the way out. [laughs] We are going to talk some 2021. It's our Preview Show. We're going to talk trends you're excited about, we're going to talk stocks you're excited about, we're going to talk about some stocks to avoid, CEOs on the hot seat, IPOs, and so much more. But let's begin with one industry you are watching in 2021. Jason Moser?
Moser: Yeah. Well, I'm watching healthcare, and specifically in regards to healthcare, we talk a lot about the Internet of Things, that's all the devices and everything being connected these days to the Internet, but also, there's a subset of that Internet of Things, in the Internet of Medical Things. I think that's going to be really neat. We saw some signs at least in 2020 with the Livongo acquisition from Teladoc Health, that merger there, that was very much centered around that idea. But the Internet of Medical Things is connected to infrastructure, medical devices, software applications, health systems and services. It just enables all sorts of different advancements in healthcare, from remote patient monitor, monitoring the virtual visits, image transmission, robotic surgery. This is something that's really up-and-coming. We're seeing a lot of investments from healthcare companies, device-makers, hospitals, insurance companies, you name it. It's a big point of focus for the industry at large. It's going to be a big market opportunity, projected to hit somewhere in the neighborhood of $250 billion by 2026. I'm really excited about the capabilities that are being introduced into our healthcare system, and I think given where we were in 2020, with all of the healthcare challenges, this is going to be a really neat thing to watch in 2021 and beyond.
Greer: You may get to this later in the show, but how about a few names? When I hear this, what are some few names I should be watching here?
Moser: Well, I think definitely, Livongo was the name I think that stood out to a lot of people, now part of the Teladoc family. So, keep Teladoc on your radar. Another company that I really like, a stock that I own, Masimo, which is a company that started out in pulse oximetry, which is ultimately just measuring the oxygen levels in your blood when you go in to the hospital, but they continue to build out their portfolio of medical devices that will enable more remote patient monitoring. So, you keep an eye on Masimo as well.
Greer: Ron Gross, one industry you're watching in 2021.
Gross: I'm going to keep a close eye on infrastructure and industrials. President-elect Biden proposed a $2.4 trillion spending program on energy and infrastructure. He wants to achieve net zero emissions by 2050, clearly wants to keep his promise of building back better. He wants to invest in roads, bridges, green spaces, water, electricity, and universal broadband. All great ways for us to invest. The plan is designed to address climate change while building a new eco-friendly infrastructure. So, that's going to affect transportation, energy, autos, a whole wide range of industrials. I think industrials will also benefit from the recovery in global economic activity, low interest rates, continuing low interest rates I think will also benefit these folks. I'll give you a few names; keeping an eye on industrials like Caterpillar, Deere, Martin Marietta. Alternative energy companies: Brookfield Renewables, NextEra Energy, I think could all benefit. Biden certainly was not the only the President-elect to propose a huge infrastructure bill, but I feel that this could be the time where we actually get one passed.
Greer: Okay guys, let's talk about a trend you're excited about in this new year, 2021. Ron, let's start with you. How about one trend for 2021 that has you fired up?
Gross: I'm truly excited about the pace of innovation. What does that mean? It's fascinating to me to think about all the things that we've achieved of late. I think the pace actually only increases from here. So, it's whether it's our ability to produce vaccines at blinding speed, or the pace of pharmaceutical innovation, what has occurred with computers in the cloud in a relatively short period of time, artificial intelligence, augmented reality. We're simply the way the world pivoted so quickly when we all of a sudden had to quarantine at home. I'm thinking of Zoom, and DoorDash, and Instacart, companies like that. I would be remiss if I didn't mention my favorite gene therapy, gene editing stocks, an exciting trend, the pace is picking up just exponentially. 2021 and beyond is going to be so exciting in that space, and it will be the future of medicine.
Greer: So along those lines though, Ron, we saw just as you mentioned, just such incredible innovation in this past year. A lot of companies pulled their growth forward. We had companies talking about how basically five, six, seven years worth of innovation in the first six months or so of 2020. So as investors, do we need to reset our expectations for this coming year given how much innovation there was last year? We can't keep innovating at this rate, can we?
Gross: Although I think innovation leads to innovation, and we do see it gap up exponentially in that regard, but I think you make a good point. We do need to be careful. It will probably slow a little bit, certainly from an income statement perspective, it will pull a lot of revenue forward. It will be really interesting to see how companies keep their foot on the gas in terms of R&D and the pace of innovation, but some of the earnings and revenue probably already occurred, that would have occurred next year, and in fact, we'll see some one time occurrences from 2020 that won't repeat itself in 2021. Again, I'm thinking of the Instacarts and the DoorDashes. We won't see that continued growth rate. In fact, growth rates will pull back as a result of COVID being in the rearview mirror, but I think innovation continues.
Greer: Jason Moser, one trend you're watching?
Moser: Yeah, I'm thinking in line with what Ron was talking about there in regard to the pace of innovation. I run one of our services here, the Next-Gen Supercycle services, which is focused on innovation and technology, and specifically 5G. I'm really excited about the beginning of the roll out of 5G here for 2021. We heard so much about it all throughout 2020. I think on the one hand, it's very understandable for folks to be extremely excited about it, on the other, let's temper that enthusiasm. Remember, this is going to be a journey. This is going to be a little bit of a marathon, but we're really just at the starting point now where 5G is starting to roll out. The networks are becoming capable, more devices are becoming capable. There's so many players in that value chain when you talk about this investment and this infrastructure and all of the benefits that we'll get from it; from operators, to towers, to chips and hardware and software, cloud computing, edge computing, content delivery, cybersecurity, healthcare, like I just mentioned. So many more different players in the value chain and opportunities for investors. We're really just at the starting point there.
Just to add a little color to that, the GSMA, that's the Global System for Mobile Communications, they predicted by 2025, we'll see 1.8 billion 5G connections. I know that sounds like a lot, and that's because it is, but the interesting thing there is though, that'll still only account for about 20% of global connection. So, that means that even by 2025, there's still going to be so much runway ahead for even more connections and more possibilities when we talk about all of this amazing technology and the neat things that 5G and Wi-Fi 6 are both enabling, and then of course, we hear all of these companies already laying out strategies for 6G2, that's pretty cool. A little bit further down the road, so let's focus on 5G for now. I'm really excited about the possibilities.
Gross: Yet, I still can't get Wi-Fi in my basement. [laughs] Can we work on that before we get the 6G?
Moser: Maybe get one of those mesh routers. It covers the whole house. [laughs].
Gross: I got it. [laughs]
Greer: Jason, I feel like I got lost like a few Gs ago, so I need you, as much as you can, explain 5G and specifically, what will it mean to me in a very concrete way, because I heard you talking about connections and towers and all this. But in my everyday life, what will 5G mean or why will it matter?
Moser: In simplest terms, 5G is going to lead to faster connections. It's going to give us the opportunity to not only download data faster, but to download far more robust data more quickly. It's going to lead to new innovations as we're talking about in things like content delivery, for example. You're talking about faster download speeds when we talk about things like 4K, for example, in video, or when you talk about gaming and next to zero latency, zero delay or lag time when you're streaming something or playing a game or whatnot. Those are just a couple of examples, but then we can talk about healthcare delivery, like I was talking about before. It's going to add all sorts of functionality to the payment space. We're talking about smart cities. All sorts of different things. Automobiles connecting with one another. There's just going to be a lot of different things that it enables, but it's going to be because of those faster speeds and the greater bandwidth to download more data with that faster speed.
Greer: I'm coming around. It may help Ron in his basement, huh? [laughs].
Moser: It very well could.
Gross: You never know.
Greer: Dare to dream, Ron.
Emily Flippen: Happy New Year. I'm happy this year's ending. Let's hope the next one is a little bit better.
Greer: You and me both, goodbye 2020. Let's move on to our 2021 preview here. Let's begin with one stock or industry that you think is poised for upside in 2021. Emily, what do you think?
Flippen: Well, earlier in the show, you and Ron made a great point about businesses pulling forward growth and how that could impact their stocks in 2021. There's one business that I really like that pulled forward growth, but I think it's poised for an even better 2021, and that's DocuSign. Now, the reason why I think DocuSign is different than a lot of these other businesses, the way you can argue Zoom potentially has a challenging 2021, is that DocuSign is in a better position to retain those customers that they acquired during the pandemic, because most of their business actually comes from up-selling existing customers, not getting new customers into their network. By operating in contract life cycle management, not just e-signatures, really building out the value chain, owning that contract for the moment it's created to the moment it's signed, integrating all of these amazing technology sources like artificial intelligence, to find places assigned to automatically read contracts to parse through them, I think there's a lot of upside for DocuSign still ahead of it.
Greer: Emily, who or what do you think is the biggest threat to DocuSign? Is it an established player like an Adobe or is it people going back to the office, where the work-from-home dynamic changes?
Flippen: I think the biggest threat to DocuSign is actually their cheaper tiers. We saw it in 2020 that high-value customers, when looking to cut costs, would downgrade their subscription, and it's funny, because DocuSign doesn't have any true competitors in terms of their entire suite of products, even looking at Adobe, they don't offer the same solutions that DocuSign does. But I think DocuSign gets around this by acquiring companies, not that are competitive, but that are accretive to their core product. They made an acquisition of a business called Seal Software a couple of years ago that became the foundation for its AI initiatives, allowing them to build out entirely new product suites. Taking that approach, I hope, will allow them to continue to up-sell those new customers.
Greer: Jason Moser, one stock or industry that you think is poised for upside in 2021?
Moser: Yeah, one that we've been talking about a lot here going into the end of the year is Cloudflare. This is one actually I'm really looking forward to buying shares for myself once I can shut up about it long enough. [laughs] But Cloudflare, it's a global cloud computing platform. It helps businesses become more secure, more speedy and more reliable through a suite of products that it offers from everything from cybersecurity to edge computing and beyond. I like the company's business model. They generate revenue a number of different ways with the pay-as-you-go channel versus also adding subscriptions and contracts in there. Essentially, meeting customers on their terms, which to customer-centric businesses, you got to like that. There's a good founder story there as well with Matthew Prince, as the co-founder and the CEO of the company still today. They have an edge computing platform in Cloudflare Workers that I think is really neat and it's going to play into that 5G angle that we were talking about earlier in the show as we look to bring data close to the actual source of the computing. The business is on the rise. Management recently raised guidance for the full-year, now expecting somewhere in the neighborhood of $423 million of revenue, that would be growth of about 48% from the previous year.
The neat thing here is Cloudflare does a lot of different things from security to performance, to reliability and more. That's actually a little bit of a story to how the company got its ticker N-E-T, as opposed to something more in line with the actual name of the company. They are looking to build this total network solution that customers can plug into and instantly move data securely, and reliably, and quickly, and efficiently. They came up with that ticker NET as opposed to something else a little bit more in line with the name because of that general solution. They're looking to become this all-serving network, so to speak. I just thought that was a neat little story as to how they got their ticker, and it tells you a lot about what their ultimate goals with the company are.
Greer: Let's move onto one stock or industry to avoid or at least keep on a very short leash. We have about two and half minutes left, so we're going to keep this pretty tight here. But Emily, what do you think?
Flippen: Sure, I can keep mine very short, because many investors will already be familiar with this industry. That's the cruise line industry. It needs very little explanation for why you should have it on a short leash in 2021. Cruises might be coming back next year, but to be clear, we need to see actual consumers spending lots of money onboard to get them to pre-pandemic levels of business. I think that's unlikely to happen for at least another few years, so if you're investing in this industry, keep an eye out on spending levels and keep that industry on a short leash.
Greer: Jason Moser?
Moser: Yeah, I'm going with hotels here, and part of this has to do with, I think we're going to lose some business travel. There's some estimates out there of 19%-36% of all business-related travel could go the way of the dodo after the dust settles from all those COVID stuff. I think some business travel will come back, but I also think the enthusiasm behind Airbnb's IPO is not misguided. When you look at the numbers that Airbnb charts up there, 91% of all traffic goes to Airbnb through direct or unpaid channels. There's just tremendous brand awareness, and it's becoming the normal way of travel for these up-and-coming generations of travelers. I think hotels are really going to have to figure something out here to keep their businesses growing.
Greer: Let's wrap up with one CEO that you think is on the hot seat in 2021. Jason, what do you think?
Moser: Yeah, Nikola's Mark Russell. Sure, he's only been the CEO since June of 2020, but this is an electric car company with a ton of baggage, zero revenue, and somehow still a $6 billion market cap, it just doesn't make any sense.
Greer: Tell me more.
Moser: They better make something happen in 2021 or Mark Russell, hey, listen, he's definitely, people are going to be looking for him to deliver something in 2021, so you better bring something to the table.
Greer: Emily, who's your CEO on the hot seat?
Flippen: Mine's actually Douglas Bryant of Quidel, not a bad CEO, but Quidel and Bryant, in particular, have been really aggressive with their timelines of the launch of their new molecular diagnostic system Savannah in the past, it's apparently spoke to get to market at some point in the second half of 2021. I'm keeping him on the hot seat to see if that actually happens.
Greer: Savannah, and what does Savannah do exactly?
Flippen: It's a molecular diagnostics company. When you're thinking about getting diagnosed for gene-based therapies, it can do it faster, cheaper, and more portable than the alternatives, big market opportunity, but also a very tall order.
Greer: What is your biggest question about business in the coming year? Ron Gross.
Gross: As both Jason and Emily spoke about it in the last segment, I'm really curious to see what happens to travel related stocks and how big the pent-up demand is. I think once COVID is behind us and the economy stabilizes, traveling for pleasure will come back in a pretty significant way. That does bode well for airlines, hotels, I think even cruises. I know Emily has a question with cruises and that makes sense to me. You keep an eye on the Southwests of the world, the Alaska Air, Marriott, Booking Holdings, even Carnival, I think, you wanted to keep an eye on. But my big question is, what happens with business travel, as Jason mentioned. That is so important to the airlines and the hotels, and my gut tells me that some of that business is lost forever. Getting on a plane to fly across the country for a two hour meeting is not coming back. I just don't think it is. We'll have to see what the new normal level of earnings are for these hospitality companies and travel companies. It's too early to tell right now, but that's a big question that I have.
Greer: Emily, what's your biggest business question for 2021?
Flippen: I am really interested to see how the business of live entertainment could've been fundamentally changed from 2020 heading into 2021. I can make a really strong argument on either side of the equation for live entertainment, especially things like concerts. When you look at 2021, lots of artists have already canceled all of their concert plans for the next year. They've learned to adapt to the new normal finding ways to digitally connect with consumers. We talk so much about the third place, becoming this digital world in which we engage with audiences, and that same thing can be true for live entertainment. At the same time, pre-pandemic, live events were the single most lucrative part of the entertainment industry. People love to go out, connect with their friends, family, and favorite artists, in a real physical space. I'm interested to see if there is any fundamental change in demand for live entertainment next year.
Greer: Emily, you see a lot of bands and a lot of musicians trying to pivot to this virtual reality in the last year. It's just not the same for me, I love live music. But the idea of paying $30, $40, $50 dollars to watch one of my favorite band's virtually just doesn't feel the same.
Flippen: I can understand that argument, but at the same time, if we rewind 10 years, you could also say the same thing about movie theaters, at the Imax experience. A lot of people said, "I love the feeling of going to see a really big blockbuster on opening night with all my friends, getting popcorn, waiting in line," and now heading into 2021, it looks like movie theaters are dead in the water. 10 years from now, do you think live events go the way at the movie theater?
Greer: I think live events will be bigger than ever. That's what I think. [laughs]
Gross: All I know is it's way easy for me to access the restroom when I'm here in my house [laughs] then when I got 40,000 people in concert and I don't want to miss this one.
Greer: I love that. As an over 50 year old, I can appreciate that. Thank you, Ron.
Gross: Sure.
Greer: Let's move on and talk about IPOs, because 2020, wow, what a year for IPOs. We had Snowflake with the biggest software IPO ever. We had Airbnb, DoorDash, just to name a few, so 2021, what's on the IPO you would like to see, Ron?
Gross: There's a really interesting company called Roblox that should be coming in 2021. They're an online gaming platform valued at about $4 billion in the private market. It allows users to create, publish their own video games. Founded in 2004, and they make money through the sale of its Robux in-game currency, 31 million daily active users, that's an 82% increase from a year-ago. First three quarters of 2020 had revenue of $589 million. Because of accounting rules and how they can recognize revenue, they're still not profitable, but they did have positive cash flow of almost $300 million for the first three quarters. That's something I really like to see. They were expected to IPO in December, but because of the amazing debuts of Airbnb and DoorDash on day one, they went back to the table and said, we've got to talk a little bit more about how to price this thing, because I don't think they want to leave as much money on the table as those companies did. Hopefully we'll see it in 2021.
Greer: Ron, earlier on this show, we talked about resetting expectations after this amazing year we've had in terms of innovation, in terms of a lot of growth getting pulled forward. For Roblox, is it going to get any better than a year where you have so many kids at home playing video games?
Gross: Probably not, and I would've maybe gone public anyway [laughs] and even if I had to have left them on the table, because you just don't know. Sometimes a bird in the hand, you want to take that. Because as you say, now it is a great time for companies like Roblox -- retention and keeping our customers is really important. They seem to have a customer for about 23 months right now. You want to see that increase, they'll never approach something like Netflix, but you want to see that grow. They continue to charge those people through those Roblox currencies. I don't know. You got to strike while the iron is hot, but I hope delaying doesn't come back and bite them.
Greer: Roblox IPO day one, you're buying?
Gross: I almost never buy IPOs on day one. Not to mention the restrictions we sometimes have on what we can buy or not. But I always like to let these things play out for a few days, if not weeks or months, and then I consider it.
Greer: Emily, what's an IPO you're fired up about in 2021?
Gross: This company isn't as likely to IPO in 2021 as Roblox is, but I would be excited to see it IPO, and it's Discord. A lot of listeners may be customers of Discord, or users of Discord. It's Zoom-like and that's being gracious to its platform, a platform where you can instant message, have video calls, voice calls with your friends, and it really got its bread and butter start in gaming. The gaming community is particularly interested in Discord, but it's doing a lot to create groups and social networks really focused around communication that's not face-to-face. The reason why I think it's a really interesting business heading into 2021 is obviously they've acquired a lot of users over the course of the last eight to 12 months. But more importantly, we've seen bigger businesses, Zoom in particular, go after the consumer market. Zoom used to be business-focused, pre-pandemic. Now consumers, our parents, our grandparents, our kids, they're using Zoom to connect with those around them. I can see either an IPO or some bigger acquisition in 2021.
Greer: You mentioned a bigger acquisition. If someone acquires Discord, who is the most likely suiter?
Flippen: I would really like to see Zoom acquire Discord. The reason is because it's hard to see a business make the transition to consumers. When Zoom has successfully made that transition as they have this year, I think they have a bit of momentum to go after some smaller players that are making grab that our consumer-focused in general, that in this case would be Discord. I feel like if they let Discord get to the point of IPOing or otherwise becoming more successful, they will pay up if they want to acquire those users.
Greer: It is our 2021 preview, goodbye to 2020, good riddance. Woof, [laughs] hello to 2021.
Moser: That's a two-show woof. [laughs]
Greer: It is a two-show woof.
Moser: Two woof shows I guess is a more appropriate way to say it.
Greer: It just felt like another woof. Now, in a minute we're going to get to our reckless predictions, which is my favorite part of this show each year. But first, a quick round of fill in the blank. Are you ready?
Gross: Oh, yeah.
Moser: Absolutely.
Greer: I love the enthusiasm. [laughs] In 2021, _____ is going to surprise a lot of investors. Jason Moser?
Moser: Well, Mac, we spend, I think, at least a little part of 2020 having a little fun at the expense of NBC and their new-fangled streaming app and the name that they came up with, Peacock. [laughs] I mean, we gave it it's due, I think, had a little fun with it on the shows. But I'm here to tell you, man, I think that NBC's Peacock app is going to surprise a lot of people in the coming year. I say this as a Peacock subscriber, not just an ad-supporting subscriber, Mac. I'm actually paying money for this subscription. I don't regret it, I've got not one regret. I think it's amazing to see what they've done in actually a short period of time with this thing. Now, over 26 million sign-ups. I think the interesting thing about this app is the way they view it. I think a lot of people look at this as a Netflix versus a Peacock thing. I don't know that's the right way to look at it, because Netflix is a subscription play, Peacock really is an ad play. Advertising is primary revenue.
Greer: Can I stop you right there? Because I don't think anyone is asking about Netflix versus Peacock. I think [laughs] it's more like Peacock versus Quibi. I mean, you've got Disney+. I think you need to slow your roll. 26 million is great, but is anyone out there really squaring off Peacock versus Netflix?
Moser: Well, I don't think they are. No, I think you're right there. I don't know that anybody really is giving Netflix any competition except for maybe Disney+. But I think that Peacock is going to surprise a lot of people. I think part of that is going to be with the content that they have on there now, highly recommend Mr. Mercedes, great series of books, excellent show, they've done a good job with it. Yellowstone, I'm sucked in, I can't get enough of that show. Let's not forget, The Office is moving solely over to Peacock on January 1st.
The neat thing about that is that it's only going to be the first two seasons that you can stream ad-supported. If you want to get anything after the second season, you have to subscribe. They're going to also include a lot of extras and exclusives for all of those Office fans out there, and there are plenty of them out there for sure. I think that Office transition is going to drive some more people over to the Peacock app in 2021. Honestly, they've done a pretty good job with the interface, I think they'll continue to work on that. But I tell you, given the hard time that we gave them over the course of the year, I did not think it would be as successful as it has been. Now clearly there have been some tailwinds there, but I think they are poised to continue to do well, I think that'll surprise a lot of people.
Greer: I apologize for the Quibi comparison, [laughs] totally unfair.
Moser: One of them is still in business, Mac. [laughs]
Greer: Emily Flippen, in 2021, _____ is going to surprise a lot of investors.
Flippen: I'll say Etsy. The reason why I think it's going to surprise a lot of investors is because they've already had an amazing 2020. I think they are well-poised to also have an amazing 2021. Withholding Tesla, which is just added in the S&P 500, Etsy was the single best performing constituent throughout 2020. That doesn't make me scared as an Etsy investor in the least. When you think about the businesses that retained both users, so people who shop on the platform, and merchants, people who are creating the stuff to sell on the platform, Etsy overcame that first hurdle in 2020, which was getting those direct clicks. So, people going to the Etsy platform specifically looking for stuff to buy and getting their credit card information and getting merchants to make up from lack of employment for instance, to find new ways to generate revenue and cash. So, when you head into 2021, I actually think they've built up so much awareness, they have so many more emails and credit card information heading into next year in comparison to what they had this year. I think Etsy is poised well to have a good 2021.
Greer: All right. Ron Gross, in 2021, ____ is going to surprise a lot of investors.
Gross: I'd be remiss if I did a preview show and didn't mention Berkshire Hathaway. I'm going to say Berkshire Hathaway and they're going to surprise with a humongously exciting acquisition and a market-beating increase in their share price for the year, which isn't necessarily always the case as of late. They've got around $145 billion in cash waiting to be deployed, Buffet talks about his elephant gun or an elephant size acquisition. I want to see it. I also thought last year they'd buy back some stock, they didn't buy back nearly as much as my reckless prediction said they would, but I'd like to see that happen as well.
Greer: Your reckless prediction last year was that Berkshire would buyback 15% of outstanding shares and initiate an annual cash dividend equal to 1.5% yield.
Gross: I was a little bit off on that.
Greer: It's all right. You also said, as a surprise on last year's show, "Value investing would make its comeback [laughs] and regain its lead over growth." How did that work out?
Gross: [laughs] Let me see. 2021, as I mentioned at the top of the show, infrastructure industrials. This is the year.
Greer: I like it. Jason, you said Bed Bath&Beyond. On last year's 2020 preview, you said Bed Bath&Beyond is going to surprise some people with some glass half full results. Jason gets to take a victory lap, right?
Gross: Yeah, I think so.
Moser: I guess technically you did, that's all right.
Greer: All right, OK.
Moser: Thinking I have glass half full perspective paid off for me.
Greer: I like it. So next fill in the blank, Emily, will have you lead off. This time next year, I think I'm going to regret not owning _____.
Flippen: A Peloton. I can only speak for myself, [laughs] but the past nine to 10 months have not been great for my waistband, my jeans may not fit anymore, I might be wearing yoga pants.
Greer: You can speak for me also.
Flippen: [laughs] I think I'm going to regret not owning a Peloton in particular. But in general, some sort of home fitness equipment.
Greer: All right. Jason, I think I'm going to regret not owning _____.
Moser: Yeah, I'm going stock here, Mac, and a company called nCino. Now, this is not to be confused with the 1992 blockbuster hit Encino Man, starring Pauly Shore and Brendan Fraser and Sean Astin. No, this is nCino. This is actually a software company, a SaaS company that provides an operating system for banks to provide customer relationship management and customer onboarding, account opening, loan origination and whatnot. So, this is a software company that provides a platform for banks to really do their business. There is a neat co-founder story there. It's an IPO from July of 2020, so it's still a fairly new business to the public markets. But you got to love that SaaS subscription model. They're doing something right here because about 20% of the banks in the U.S. already have nCino as a provider. They already have a nice customer base in a big one in there in Bank of America. So, anytime you have Bank of America as a customer, I feel like maybe you're doing something right. It reminds me a little bit of Ellie Mae, if you remember that mortgage software provider. There are some network effects involved. The longer it goes on there, some switching costs and that can get a little pricing power. It's a stock that I think is going to be when we talk a lot more about here in 2021. I think I'm going to have to make sure that I remind myself to get a little bit of that before too long.
Greer: Ron Gross, this time next year, I'm going to regret not owning _____.
Gross: Airbnb. Shares of Airbnb. You know what? From this value investor, I'm going to say, I don't think it matters what the value is. I think I'm going to regret not owning it. I'm not an owner yet. Will I actually pull the trigger? We'll see. But I do think the shares are going to be higher 12 months from now.
Greer: One word answer to this next one. An industry stock or business that's going to bounce back in a big way in 2021 is _____. Jason?
Moser: Financials.
Greer: All right. Emily?
Flippen: Match Group.
Greer: Ron.
Gross: Hotels.
Greer: I like it. Let's close with our reckless predictions, this is my favorite part of the show. One reckless prediction for 2021. Jason Moser, kick us off.
Moser: I've talked a lot about Cerence over the year here on our shows, I wouldn't be surprised at all. This is a company that just spun off from Nuance Communications in late 2019 to become its own publicly traded company. It's really only been on the public markets for a short period of time. But the stock has just continued to light it up, up close to 350% this year as we tape. Cerence, as you know, is in the artificial intelligence market for automobiles primarily, utilizing things like augmented reality and audio and whatnot, to really build that more intuitive and safer automobile. Very interesting headline here, they just received funding from Germany's Federal Ministry for Economic Affairs and Energy to actually drive innovation and automotive assistance for autonomous cars. So, they're really spearheading that autonomous car movement. I wouldn't be surprised at all, even given its short public life-year on its own, if Cerence got acquired at some point in 2021, because the technology is phenomenal, they're really doing a lot of things well judging from their backlog numbers. I think this is a business that a lot of folks out there would cover, it's still a small-cap company, really. So, it'd be an easy acquisition for some big tech player trying to diversify a little bit.
Greer: Ron Gross?
Gross: The Tampa Bay Buccaneers, under the leadership of Tom Brady, will win Super Bowl 55 at Raymond James Stadium in Tampa Bay. Also, the stock market will be up 12% next year in honor of Tom Brady wearing the No. 12.
Greer: I like it. Emily.
Flippen: I think that cannabis companies, in general, are going to have a worse 2021 than they did 2020. This is classic, "Buy the rumor, sell the news."
Greer: Dan Boyd, bring us home.
Dan Boyd: All right, Mac. I got two quick ones. One, cruise ships are done. [laughs] It's nothing, nobody wants to do that anymore. Two, Peloton. In 2021, with the vaccines coming out and people going outside again, the last thing I want to do is spend six more months working out in my basement here. No way, know how. Home workout equipment, done.
Greer: I love it. Emily, Ron, Jason, Dan Boyd, Happy New Year!
Dan Boyd: Happy New Year, Mac.
Flippen: Happy New Year.
Moser: Happy New Year.
Gross: Happy New Year, Mac.
Greer: That's it for Motley Fool Money this week, this show is hosted by Chris Hill. I'm Mac Greer, Happy New Year. We will see you next week.
Emily Flippen has no position in any of the stocks mentioned. Jason Moser owns shares of Adobe Systems, Booking Holdings, DocuSign, Etsy, Masimo, and Teladoc Health. Mac Greer owns shares of Netflix and Walt Disney. Ron Gross owns shares of Berkshire Hathaway (B shares) and Walt Disney. The Motley Fool owns shares of and recommends Adobe Systems, Berkshire Hathaway (B shares), Booking Holdings, Cloudflare, Inc., DocuSign, Etsy, Masimo, Match Group, nCino, Inc., Netflix, Peloton Interactive, Quidel, Snowflake Inc., Teladoc Health, Tesla, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Alaska Air Group, Carnival, Cerence Inc., Marriott International, NextEra Energy, and Southwest Airlines and recommends the following options: short January 2021 $135 calls on Walt Disney, long January 2021 $60 calls on Walt Disney, short January 2021 $200 puts on Berkshire Hathaway (B shares), and long January 2021 $200 calls on Berkshire Hathaway (B shares). 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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Why do Cloudflare (NYSE: NET) and Docusign (NASDAQ: DOCU) have big upside potential? A few Fools tackle those questions, talk about other stocks, and make some reckless predictions about 2021 in this episode of Motley Fool Money. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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The Motley Fool owns shares of and recommends Adobe Systems, Berkshire Hathaway (B shares), Booking Holdings, Cloudflare, Inc., DocuSign, Etsy, Masimo, Match Group, nCino, Inc., Netflix, Peloton Interactive, Quidel, Snowflake Inc., Teladoc Health, Tesla, Walt Disney, and Zoom Video Communications. Why do Cloudflare (NYSE: NET) and Docusign (NASDAQ: DOCU) have big upside potential? A few Fools tackle those questions, talk about other stocks, and make some reckless predictions about 2021 in this episode of Motley Fool Money.
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Why do Cloudflare (NYSE: NET) and Docusign (NASDAQ: DOCU) have big upside potential? A few Fools tackle those questions, talk about other stocks, and make some reckless predictions about 2021 in this episode of Motley Fool Money. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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The Motley Fool owns shares of and recommends Adobe Systems, Berkshire Hathaway (B shares), Booking Holdings, Cloudflare, Inc., DocuSign, Etsy, Masimo, Match Group, nCino, Inc., Netflix, Peloton Interactive, Quidel, Snowflake Inc., Teladoc Health, Tesla, Walt Disney, and Zoom Video Communications. Why do Cloudflare (NYSE: NET) and Docusign (NASDAQ: DOCU) have big upside potential? A few Fools tackle those questions, talk about other stocks, and make some reckless predictions about 2021 in this episode of Motley Fool Money.
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9644c681-bfcc-41db-9f4a-38ae075a89bc
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721617.0
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2021-01-08 00:00:00 UTC
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John Deere Recalls Frontier Rotary Tillers
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DE
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https://www.nasdaq.com/articles/john-deere-recalls-frontier-rotary-tillers-2021-01-08
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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., has recalled Frontier model rotary tillers citing injury risks, according to the U.S. Consumer Product Safety Commission.
The recall involves around 1,740 units of Frontier-branded rotary tillers for use with compact utility tractors sold in the U.S. and about 140 sold in Canada.
"Frontier" and model RT1142, RT1149, RT1157, RT1165, RT1173, RT1181, RT3042, RT3042R, RT3049, RT3049R, RT3062, or RT3062R are printed on the back of the tiller.
The tillers manufactured in India were sold at John Deere dealers nationwide from May 2019 through November 2020 for between about $2,000 and $3,200.
The agency noted that some PTO drivelines were assembled without a specified safety sign, which explains the associated hazards, and that an operator or bystander can become entangled if there is contact with the driveline.
However, the Moline, Illinois-based company has not received any reports of incidents or injuries to date related to the recalled tillers.
Consumers are urged to contact an authorized John Deere dealer for a free inspection and repair.
The views and 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 tillers manufactured in India were sold at John Deere dealers nationwide from May 2019 through November 2020 for between about $2,000 and $3,200. However, the Moline, Illinois-based company has not received any reports of incidents or injuries to date related to the recalled tillers. Consumers are urged to contact an authorized John Deere dealer for a free inspection and repair.
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(RTTNews) - John Deere, the brand name of machinery manufacturer Deere & Co., has recalled Frontier model rotary tillers citing injury risks, according to the U.S. Consumer Product Safety Commission. The tillers manufactured in India were sold at John Deere dealers nationwide from May 2019 through November 2020 for between about $2,000 and $3,200. Consumers are urged to contact an authorized John Deere dealer for a free inspection and repair.
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(RTTNews) - John Deere, the brand name of machinery manufacturer Deere & Co., has recalled Frontier model rotary tillers citing injury risks, according to the U.S. Consumer Product Safety Commission. The recall involves around 1,740 units of Frontier-branded rotary tillers for use with compact utility tractors sold in the U.S. and about 140 sold in Canada. The tillers manufactured in India were sold at John Deere dealers nationwide from May 2019 through November 2020 for between about $2,000 and $3,200.
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(RTTNews) - John Deere, the brand name of machinery manufacturer Deere & Co., has recalled Frontier model rotary tillers citing injury risks, according to the U.S. Consumer Product Safety Commission. The tillers manufactured in India were sold at John Deere dealers nationwide from May 2019 through November 2020 for between about $2,000 and $3,200. The agency noted that some PTO drivelines were assembled without a specified safety sign, which explains the associated hazards, and that an operator or bystander can become entangled if there is contact with the driveline.
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0ca99128-1cc7-47fa-b6a6-b72a83596022
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721618.0
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2020-12-29 00:00:00 UTC
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Noteworthy Tuesday Option Activity: ABC, NUE, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-abc-nue-de-2020-12-29
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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 AmerisourceBergen Corp. (Symbol: ABC), where a total volume of 8,911 contracts has been traded thus far today, a contract volume which is representative of approximately 891,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 96.8% of ABC's average daily trading volume over the past month, of 920,350 shares. Especially high volume was seen for the $105 strike call option expiring January 15, 2021, with 3,590 contracts trading so far today, representing approximately 359,000 underlying shares of ABC. Below is a chart showing ABC's trailing twelve month trading history, with the $105 strike highlighted in orange:
Nucor Corp. (Symbol: NUE) options are showing a volume of 17,234 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 94.6% of NUE's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $45 strike call option expiring January 15, 2021, with 6,044 contracts trading so far today, representing approximately 604,400 underlying shares of NUE. Below is a chart showing NUE's trailing twelve month trading history, with the $45 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 14,619 contracts, representing approximately 1.5 million underlying shares or approximately 90.1% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $190 strike call option expiring January 15, 2021, with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $190 strike highlighted in orange:
For the various different available expirations for ABC options, NUE 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 $105 strike call option expiring January 15, 2021, with 3,590 contracts trading so far today, representing approximately 359,000 underlying shares of ABC. Particularly high volume was seen for the $45 strike call option expiring January 15, 2021, with 6,044 contracts trading so far today, representing approximately 604,400 underlying shares of NUE. Particularly high volume was seen for the $190 strike call option expiring January 15, 2021, with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of DE.
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Especially high volume was seen for the $105 strike call option expiring January 15, 2021, with 3,590 contracts trading so far today, representing approximately 359,000 underlying shares of ABC. Below is a chart showing NUE's trailing twelve month trading history, with the $45 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 14,619 contracts, representing approximately 1.5 million underlying shares or approximately 90.1% of DE's average daily trading volume over the past month, of 1.6 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AmerisourceBergen Corp. (Symbol: ABC), where a total volume of 8,911 contracts has been traded thus far today, a contract volume which is representative of approximately 891,100 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 AmerisourceBergen Corp. (Symbol: ABC), where a total volume of 8,911 contracts has been traded thus far today, a contract volume which is representative of approximately 891,100 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $105 strike call option expiring January 15, 2021, with 3,590 contracts trading so far today, representing approximately 359,000 underlying shares of ABC. Below is a chart showing NUE's trailing twelve month trading history, with the $45 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 14,619 contracts, representing approximately 1.5 million underlying shares or approximately 90.1% of DE's average daily trading volume over the past month, of 1.6 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 AmerisourceBergen Corp. (Symbol: ABC), where a total volume of 8,911 contracts has been traded thus far today, a contract volume which is representative of approximately 891,100 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $45 strike call option expiring January 15, 2021, with 6,044 contracts trading so far today, representing approximately 604,400 underlying shares of NUE. Below is a chart showing NUE's trailing twelve month trading history, with the $45 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 14,619 contracts, representing approximately 1.5 million underlying shares or approximately 90.1% of DE's average daily trading volume over the past month, of 1.6 million shares.
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0512e4ca-05d9-4042-9e79-435acb0220f3
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721619.0
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2020-12-29 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for December 30, 2020
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-for-december-30-2020-2020-12-29
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nan
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nan
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Deere & Company (DE) will begin trading ex-dividend on December 30, 2020. A cash dividend payment of $0.76 per share is scheduled to be paid on February 08, 2021. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 9th quarter that DE has paid the same dividend. At the current stock price of $267.5, the dividend yield is 1.14%.
The previous trading day's last sale of DE was $267.5, representing a -1.65% decrease from the 52 week high of $272 and a 152.03% increase over the 52 week low of $106.14.
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 $8.7. Zacks Investment Research reports DE's forecasted earnings growth in 2021 as 48.46%, compared to an industry average of 3.4%.
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 (HAP)
VanEck Vectors Agribusiness ETF (MOO)
SPDR Select Sector Fund - Industrial (XLI)
iShares MSCI Agriculture Producers Fund (VEGI)
First Trust Indxx Global Agriculture ETF (FTAG).
The top-performing ETF of this group is FTAG with an increase of 50.91% over the last 100 days. HAP has the highest percent weighting of DE at 9.13%.
The views and 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 48.46%, compared to an industry average of 3.4%. 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. DE's current earnings per share, an indicator of a company's profitability, is $8.7. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF (HAP) VanEck Vectors Agribusiness ETF (MOO) SPDR Select Sector Fund - Industrial (XLI) iShares MSCI Agriculture Producers Fund (VEGI) 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 Natural Resources ETF (HAP) VanEck Vectors Agribusiness ETF (MOO) SPDR Select Sector Fund - Industrial (XLI) iShares MSCI Agriculture Producers Fund (VEGI) First Trust Indxx Global Agriculture ETF (FTAG).
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A cash dividend payment of $0.76 per share is scheduled to be paid on February 08, 2021. DE's current earnings per share, an indicator of a company's profitability, is $8.7. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF (HAP) VanEck Vectors Agribusiness ETF (MOO) SPDR Select Sector Fund - Industrial (XLI) iShares MSCI Agriculture Producers Fund (VEGI) First Trust Indxx Global Agriculture ETF (FTAG).
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1c9b3772-6284-4c65-83f1-9fc6b98de30f
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721620.0
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2020-12-28 00:00:00 UTC
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John Deere Will Dominate the Farming Sector in 2021: Here's Why
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DE
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https://www.nasdaq.com/articles/john-deere-will-dominate-the-farming-sector-in-2021%3A-heres-why-2020-12-28
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nan
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nan
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It's been a great year for investors in Deere (NYSE: DE). At the time of writing, the stock is up 55% year to date, and there's reason to believe that there could be more to come in 2021. Let's take a look at the investment case for the stock in order to see whether it's a good value or not.
Two key reasons why Deere stock will do well
There are two key factors to focus on:
Deere's early embrace of smart farming technologies has made it a leader in precision agriculture, and this will drive sales growth in the future.
Deere is a highly cyclical stock that is coming into the mid-cycle of an upswing, and sales can grow significantly from here.
Smart farming
It may seem strange to highlight farming as a highly technological activity, but the reality is that digital technologies are set to revolutionize how farmers go about their business, and Deere is at the forefront.
To understand why, you have to go back to the basics of arable farming and some of the key questions involved: What seeds to plant this year? When to plant? How much water and fertilizer to use? How to care for the crop? When to harvest?
Unfortunately, the consequences of all these decisions are not known until after the final harvest, and then the farmer starts preparing for the following growing season. In the past, farmers relied on experience built up over the years. While that experiential knowledge is extremely valuable, it can be enhanced by the addition of real-time data points that help farmers make the correct decisions. In other words, smart farming.
Image source: Getty Images.
On anearnings callearlier in the year, Cory Reed, a Deere executive in the agricultural and turf division, said:
We contemplate every single job and decision required to prepare the soil, to plant the seed, to protect and nurture the crop and to harvest it" and "preparing the soil has implications for how to plant seeds and promote uniform emergence, which impacts how we care for that crop throughout the growing season.
Deere's unique position
From using satellites to guide tractors to investing in machine learning and Blue River's computer-vision software, plus the recent acquisition of farm profitability software company Harvest Profit, Deere has consistently led the field in adapting smart technology to farming.
Image source: Getty Images.
An integrated set of smart technologies combined with Deere's leading agricultural equipment will drive sales for years to come, the company's management predicts. Speaking on the recentearnings call Chief Technology Officer Jahmy Hindman promised management would discuss some of the new product releases in due course.
Mid-cycle or peak?
Deere's sales tend to be highly cyclical. In common with most other cyclical businesses, Deere's valuation tends to be high at the trough as investors anticipate big earnings increases, and low at the peak when investors anticipate an earnings decrease.
The debate over whether Deere will be in the mid-cycle phase of an upswing in 2021 versus hitting a peak is not an academic one. Consider that the Wall Street analyst consensus for earnings before interest, tax, depreciation, and amortization (EBITDA) is $6.4 billion. This means the stock trades on a 2021 enterprise value (market cap plus net debt) to EBITDA multiple of 19.1 times. That's a very high multiple for Deere at its sales peak. See the valuations at the start of 2009, 2014, and 2019 in the chart below when Deere's sales peaked previously.
Data by YCharts
Deere's management is arguing that the company will be at 90% of the mid-cycle in 2021, while some analysts think it could actually be at the peak. The argument against Deere is that U.S. net cash farm income of $134 billion is actually the highest figure since $136.1 billion in 2013.
However, nearly all the increase in net cash farm income in 2020 over 2019 comes down to a $24 billion increase in Federal Government payments. Instead, let's focus on what the farmers are actually seeing from crop income. The chart below shows U.S. gross cash farm income, you can see that crop income (what really matters to Deere) hasn't increased dramatically in recent years.
Data source: United States Department of Agriculture.
The data in the chart (specifically gross cash income from crops) shows that crop income hasn't increased significantly in recent years. Consequently, it suggests that a multi-year recovery in spending on farming equipment is possible from here. In other words, the fear that Deere will hit a sales peak in 2021 is unlikely to come true.
Deere in 2021?
All told, a combination of Deere's precision agriculture solutions and its position in the cycle mean the company is well placed to do well in 2021. As ever, much will depend on the price directions of key crops like corn, wheat, cotton, and soybean. However, assuming they stay stable, Deere has plenty of opportunity to grow sales and earnings, and next year should be another bumper year for the company as it continues in recovery mode.
10 stocks we like better than Deere & Company
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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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On anearnings callearlier in the year, Cory Reed, a Deere executive in the agricultural and turf division, said: We contemplate every single job and decision required to prepare the soil, to plant the seed, to protect and nurture the crop and to harvest it" and "preparing the soil has implications for how to plant seeds and promote uniform emergence, which impacts how we care for that crop throughout the growing season. An integrated set of smart technologies combined with Deere's leading agricultural equipment will drive sales for years to come, the company's management predicts. It's been a great year for investors in Deere (NYSE: DE).
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Deere's unique position From using satellites to guide tractors to investing in machine learning and Blue River's computer-vision software, plus the recent acquisition of farm profitability software company Harvest Profit, Deere has consistently led the field in adapting smart technology to farming. An integrated set of smart technologies combined with Deere's leading agricultural equipment will drive sales for years to come, the company's management predicts. It's been a great year for investors in Deere (NYSE: DE).
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Two key reasons why Deere stock will do well There are two key factors to focus on: Deere's early embrace of smart farming technologies has made it a leader in precision agriculture, and this will drive sales growth in the future. On anearnings callearlier in the year, Cory Reed, a Deere executive in the agricultural and turf division, said: We contemplate every single job and decision required to prepare the soil, to plant the seed, to protect and nurture the crop and to harvest it" and "preparing the soil has implications for how to plant seeds and promote uniform emergence, which impacts how we care for that crop throughout the growing season. Deere's unique position From using satellites to guide tractors to investing in machine learning and Blue River's computer-vision software, plus the recent acquisition of farm profitability software company Harvest Profit, Deere has consistently led the field in adapting smart technology to farming.
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Two key reasons why Deere stock will do well There are two key factors to focus on: Deere's early embrace of smart farming technologies has made it a leader in precision agriculture, and this will drive sales growth in the future. Deere in 2021? It's been a great year for investors in Deere (NYSE: DE).
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80f23cd2-4c99-4ec3-9af0-8fffc66a841d
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721621.0
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2020-12-15 00:00:00 UTC
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Notable Tuesday Option Activity: MRTX, DE, SQ
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-mrtx-de-sq-2020-12-15
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Mirati Therapeutics Inc (Symbol: MRTX), where a total of 2,461 contracts have traded so far, representing approximately 246,100 underlying shares. That amounts to about 68.3% of MRTX's average daily trading volume over the past month of 360,445 shares. Especially high volume was seen for the $260 strike call option expiring January 15, 2021, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of MRTX. Below is a chart showing MRTX's trailing twelve month trading history, with the $260 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 12,038 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 67.7% of DE's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $265 strike call option expiring December 18, 2020, with 1,254 contracts trading so far today, representing approximately 125,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $265 strike highlighted in orange:
And Square Inc (Symbol: SQ) options are showing a volume of 60,327 contracts thus far today. That number of contracts represents approximately 6.0 million underlying shares, working out to a sizeable 64.8% of SQ's average daily trading volume over the past month, of 9.3 million shares. Particularly high volume was seen for the $220 strike call option expiring December 18, 2020, with 6,261 contracts trading so far today, representing approximately 626,100 underlying shares of SQ. Below is a chart showing SQ's trailing twelve month trading history, with the $220 strike highlighted in orange:
For the various different available expirations for MRTX options, DE options, or SQ 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 $260 strike call option expiring January 15, 2021, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of MRTX. Especially high volume was seen for the $265 strike call option expiring December 18, 2020, with 1,254 contracts trading so far today, representing approximately 125,400 underlying shares of DE. Particularly high volume was seen for the $220 strike call option expiring December 18, 2020, with 6,261 contracts trading so far today, representing approximately 626,100 underlying shares of SQ.
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Below is a chart showing MRTX's trailing twelve month trading history, with the $260 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 12,038 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 67.7% of DE's average daily trading volume over the past month, of 1.8 million shares. That number of contracts represents approximately 6.0 million underlying shares, working out to a sizeable 64.8% of SQ's average daily trading volume over the past month, of 9.3 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Mirati Therapeutics Inc (Symbol: MRTX), where a total of 2,461 contracts have traded so far, representing approximately 246,100 underlying shares. Especially high volume was seen for the $265 strike call option expiring December 18, 2020, with 1,254 contracts trading so far today, representing approximately 125,400 underlying shares of DE. Particularly high volume was seen for the $220 strike call option expiring December 18, 2020, with 6,261 contracts trading so far today, representing approximately 626,100 underlying shares of SQ.
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Especially high volume was seen for the $260 strike call option expiring January 15, 2021, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of MRTX. Particularly high volume was seen for the $220 strike call option expiring December 18, 2020, with 6,261 contracts trading so far today, representing approximately 626,100 underlying shares of SQ. Below is a chart showing SQ's trailing twelve month trading history, with the $220 strike highlighted in orange: For the various different available expirations for MRTX options, DE options, or SQ options, visit StockOptionsChannel.com.
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e9eebc98-d589-42e9-958a-768dae2f320b
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721622.0
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2020-12-04 00:00:00 UTC
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Self-Driving Tractors? How Deere Is Disrupting Farming
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https://www.nasdaq.com/articles/self-driving-tractors-how-deere-is-disrupting-farming-2020-12-04
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The coronavirus pandemic has changed the world. But it has also accelerated certain technological trends that investors should be tapped into and for many, robotics and automation are top of mind. ProShares' Executive Director of Thematic Investing Scott Helfstein sat down with The Motley Fool to dive into some of the intriguing stocks in their new ETF: ProShares MSCI Transformational Changes ETF (NYSEMKT: ANEW).
Now, why is Deere & Company (NYSE: DE) one of these revolutionary stocks? It has to do with autonomous tractors.
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
Corinne Cardina: Awesome. Jumping over to food revolution. Deere & Company is not one that comes to mind for me right off the bat when I'm thinking about what I'm going to have for lunch, but maybe it should. How is Deere disrupting agriculture, farming? Why do you think that its stock is going to outperform and be helped by the tailwinds from the pandemic?
Scott Helfstein: Well, I would pose a question that I think a lot of us don't think about, which is do we think it is easier to have a self-driving taxi operating in a downtown city or a self-driving tractor operating at a field?
Cardina: Going with a tractor.
Helfstein: As am I. Those are the types of things that investors should be thinking about, it's how all these technological innovations in one area are moving into another. When we think about, and by the way, why does the tractor only have to till the land? Why doesn't it have robotic arms in order to actually pick and store vegetables? So much of that is done by machine already and we're taking it to another level, for example, the use of drones; farmers using drones because a drone can evaluate things like oxygen level or chloroplast count in a way that walking through a field you would never see. If you have part of your crop that is getting sick or that is underdeveloped, you have a much higher likelihood of being able to use sensors from the sky. There is so much technology that is going to be brought to bear in food. Deere, for example, with something like the automated tractor will be a leading position. They already have the incumbency in terms of the relationships and they are investing to bring the technology to the customer.
Corinne Cardina 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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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! The coronavirus pandemic has changed the world.
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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! The coronavirus pandemic has changed the world.
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10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * 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! The coronavirus pandemic has changed the world.
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Deere & Company is not one that comes to mind for me right off the bat when I'm thinking about what I'm going to have for lunch, but maybe it should. Deere, for example, with something like the automated tractor will be a leading position. The coronavirus pandemic has changed the world.
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0f4295ae-e558-4129-9afc-c8c4cb163d3b
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721623.0
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2020-12-03 00:00:00 UTC
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Daily Dividend Report: MSFT,DE,DG,TD,SYK
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https://www.nasdaq.com/articles/daily-dividend-report%3A-msftdedgtdsyk-2020-12-03
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Microsoft on Wednesday announced that its board of directors declared a quarterly dividend of $0.56 per share. The dividend is payable March 11, 2021, to shareholders of record on Feb. 18, 2021. The ex-dividend date will be Feb. 17, 2021.
The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable February 8, 2021, to stockholders of record on December 31, 2020.
On December 2, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share on the Company's common stock, payable on or before January 19, 2021 to shareholders of record on January 5, 2021.
The Toronto-Dominion Bank today announced that a dividend in an amount of seventy-nine cents per fully paid common share in the capital stock of the Bank has been declared for the quarter ending January 31, 2021, payable on and after January 31, 2021, to shareholders of record at the close of business on January 8, 2021.
Stryker announced that its Board of Directors has declared a quarterly dividend of $0.63 per share payable January 29, 2021 to shareholders of record at the close of business on December 31, 2020, representing an increase of 9.6% versus the prior year and previous quarter. "We continue to drive solid financial results in a challenging environment, and consistent with our stated capital allocation philosophy, are raising our dividend 9.6%," said Kevin Lobo, Chairman and Chief Executive Officer.
VIDEO: Daily Dividend Report: MSFT,DE,DG,TD,SYK
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft on Wednesday announced that its board of directors declared a quarterly dividend of $0.56 per share. The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable February 8, 2021, to stockholders of record on December 31, 2020. "We continue to drive solid financial results in a challenging environment, and consistent with our stated capital allocation philosophy, are raising our dividend 9.6%," said Kevin Lobo, Chairman and Chief Executive Officer.
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On December 2, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share on the Company's common stock, payable on or before January 19, 2021 to shareholders of record on January 5, 2021. The Toronto-Dominion Bank today announced that a dividend in an amount of seventy-nine cents per fully paid common share in the capital stock of the Bank has been declared for the quarter ending January 31, 2021, payable on and after January 31, 2021, to shareholders of record at the close of business on January 8, 2021. Stryker announced that its Board of Directors has declared a quarterly dividend of $0.63 per share payable January 29, 2021 to shareholders of record at the close of business on December 31, 2020, representing an increase of 9.6% versus the prior year and previous quarter.
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On December 2, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share on the Company's common stock, payable on or before January 19, 2021 to shareholders of record on January 5, 2021. The Toronto-Dominion Bank today announced that a dividend in an amount of seventy-nine cents per fully paid common share in the capital stock of the Bank has been declared for the quarter ending January 31, 2021, payable on and after January 31, 2021, to shareholders of record at the close of business on January 8, 2021. Stryker announced that its Board of Directors has declared a quarterly dividend of $0.63 per share payable January 29, 2021 to shareholders of record at the close of business on December 31, 2020, representing an increase of 9.6% versus the prior year and previous quarter.
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The dividend is payable March 11, 2021, to shareholders of record on Feb. 18, 2021. On December 2, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share on the Company's common stock, payable on or before January 19, 2021 to shareholders of record on January 5, 2021. Stryker announced that its Board of Directors has declared a quarterly dividend of $0.63 per share payable January 29, 2021 to shareholders of record at the close of business on December 31, 2020, representing an increase of 9.6% versus the prior year and previous quarter.
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be726bf3-5a86-4bd3-bdd1-e3567b71b19a
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721624.0
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2020-12-03 00:00:00 UTC
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Why Shares in Caterpillar Soared in November
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https://www.nasdaq.com/articles/why-shares-in-caterpillar-soared-in-november-2020-12-03
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What happened
Shares in Caterpillar (NYSE: CAT) rose 10.5% in November according to data provided by S&P Global Market Intelligence. Although the move comes pretty much in line with the S&P 500's gain in the month, there was some positive news on Caterpillar that could create a positive trajectory for the stock.
There were three positive catalysts for Caterpillar in November. First, the positive news on the coronavirus vaccine is obviously a good development for a highly cyclical stock like Caterpillar. Simply put, Caterpillar's end market customers are unlikely to order expensive equipment unless they feel confident in the economy.
Image source: Getty Images.
Second, the latest sales data from the company indicates that its retail sales have bottomed and the trend has turned upwards -- all of its end markets were better in October than in September.
Third, Deere recently gave a relatively upbeat set of fourth-quarter earnings and even though its construction and forestry segment sales declined 16% in the fourth quarter, management is forecasting a 5% to 10% increase in the segment's net sales in 2021. That augurs well for Caterpillar's sales in 2021.
So what
Caterpillar is a highly cyclical company. As such, its sales often overshoot estimates on the way up and then undershoot on the way down. Therefore, turning points, such as a bottoming of its retail sales really matter.
Indeed, Deere's construction equipment forecast and the retail sales data from Caterpillar suggest a bounce in sales in 2021 and Wall Street analysts have the company's sales increasing nearly 10%. However, don't be surprised if Caterpillar exceeds that estimate if the global economy picks up.
Now what
Clearly, Caterpillar investors will be watching the global economy and in particular, hoping for some infrastructure stimulus spending from Washington. The company probably needs it, because its current valuation is looking a little high relative to what it's been at previous troughs in the cycle.
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 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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What happened Shares in Caterpillar (NYSE: CAT) rose 10.5% in November according to data provided by S&P Global Market Intelligence. Simply put, Caterpillar's end market customers are unlikely to order expensive equipment unless they feel confident in the economy. First, the positive news on the coronavirus vaccine is obviously a good development for a highly cyclical stock like Caterpillar.
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First, the positive news on the coronavirus vaccine is obviously a good development for a highly cyclical stock like Caterpillar. Indeed, Deere's construction equipment forecast and the retail sales data from Caterpillar suggest a bounce in sales in 2021 and Wall Street analysts have the company's sales increasing nearly 10%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Indeed, Deere's construction equipment forecast and the retail sales data from Caterpillar suggest a bounce in sales in 2021 and Wall Street analysts have the company's sales increasing nearly 10%. What happened Shares in Caterpillar (NYSE: CAT) rose 10.5% in November according to data provided by S&P Global Market Intelligence. First, the positive news on the coronavirus vaccine is obviously a good development for a highly cyclical stock like Caterpillar.
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Indeed, Deere's construction equipment forecast and the retail sales data from Caterpillar suggest a bounce in sales in 2021 and Wall Street analysts have the company's sales increasing nearly 10%. What happened Shares in Caterpillar (NYSE: CAT) rose 10.5% in November according to data provided by S&P Global Market Intelligence. First, the positive news on the coronavirus vaccine is obviously a good development for a highly cyclical stock like Caterpillar.
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96984e6c-94fc-4538-ac33-3ec37d5b4121
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721625.0
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2020-11-27 00:00:00 UTC
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Coronavirus Stock Investing: 4 Industry Transformations That Are Just Getting Started
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https://www.nasdaq.com/articles/coronavirus-stock-investing%3A-4-industry-transformations-that-are-just-getting-started-2020
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The coronavirus pandemic has changed the world. But it has also accelerated certain technological trends that investors should be tapped into. From automation to genomics, these advancements are here to stay and there are many growth stocks that are just getting started.
ProShares' Executive Director of Thematic Investing Scott Helfstein sat down with The Motley Fool to dive into some of the intriguing stocks in their new ETF: ProShares MSCI Transformational Changes ETF (NYSEMKT: ANEW). He shared plenty of tips that all kinds of investors can apply to their own portfolios.
10 stocks we like better than ProShares Trust-ProShares MSCI Transformational Changes ETF
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 ProShares Trust-ProShares MSCI Transformational Changes ETF 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
Corinne Cardina: Hi, everybody. I am Corinne Cardina. I'm the Bureau Chief of Healthcare and Cannabis on fool.com. Before we get started, I'd like our viewers to know we're using a question and answer service called Slido. You can open that up in your browser. There's also an app. Our code is MFLive. You can submit questions, upvote other people's questions for the ones you want to see answered. I'm so excited to welcome Scott Helfstein, like I just said, Executive Director, Thematic Investing at ProShares. Hi, Scott, how are you?
Scott Helfstein: Hey, Corinne. I'm well. How are you?
Cardina: I'm good. Fools, for the next 30 minutes we are going to talk about ProShares' new ETF. It is called ANEW. I'm going to drop the ticker in the chat, and it tackles four transformational changes that are being accelerated by COVID-19. Scott, can you give us the highlights of what those four transformational changes are?
Helfstein: Sure. It really has to do with how we've spent our time and our lives have changed over the months of the pandemic, and if we think about the hours of our day, if we're fortunate enough, we work, we try and to take care of ourselves. The way we consume has changed, the way we connect has changed. How many of us had FaceTime or Facebook (NASDAQ: FB) apps open at holiday tables at some point in the last nine months? So really, what we wanted to do was put together a set of companies that really spoke to how our lives have changed, but more importantly, how those changes were already in place and were accelerating. Really, there's four of them that we focused on. The first is the future of work. So we have, for example, things like video conference, but we're also focused on how the changes in remote have facilitated things like automation and the automation revolution. We have genomics and telehealth, which many of us have now actually had a Teladoc (NYSE: TDOC) appointment at some point over the last few months. The number of people that use the services is up something like four or five times what it was last year, and now we're getting news about vaccines where messenger RNA in genomics really play a prominent role. The third area is digital consumer and that gets to social media streaming, gaming, and the explosion of e-sports throughout the pandemic. Then the fourth is food revolution, which is one that we think is a little different and people perhaps don't hear as much about. But we saw beef prices go through the sky and it was the largest increase prices the USDA had ever recorded back when we were seeing the shutdowns and trying to ensure the supply chain. If we actually step back, there is a really interesting story to tell about innovation in the food space that we think investors should be paying attention to.
Cardina: Absolutely. We're going to talk about all these different trends. We're going to dive into some of the specific stocks that the ETF holds within the category and chat about why these trends are likely to endure beyond the pandemic. Before we jump into all that though, we've had exciting vaccine news this morning. So I don't want to ignore that. I think my question for you is, was this ETF designed for this current new normal? How do you think these trends are going to endure once a large segment of the population does become vaccinated? Some of these things may not be exactly where they are today, how do you picture this on the longer time horizon?
Helfstein: Let me stress, first of all, I look forward to the day when we get a vaccine. I'm a proud New Yorker and we were out at a restaurant that was near empty last night and look forward to the days where the economy reopens. This is not a COVID doom and gloom type of a fund, but many of the things that have happened are likely to stay with us. For example, we saw the number of people working from home, the percentage of the population increase from 7% to 42%. That's a six-fold increase. We cannot, by the way, have another six-fold increase. We can't have 252% of people working from home. We can't do that and we might have peaked at 42 or 49.There are some different statistics that are out there and that might well start to revert as offices reopen, and we would expect that to be the case. Yet, more than 50% of senior executives are talking about making some flexible work schedule permanent and so people are not in the office five days a week, and a recent Cisco (NASDAQ: CSCO) poll, 53% of senior executives said that they were looking at reducing their office space. Even a 20% reduction in office space could be somewhere in the neighborhood of 500 billion to a trillion dollars of cost savings that will probably be redirected to things like customer relationship management software, artificial intelligence, automation, video conference. We don't necessarily see many of these changes as receding. We think that there will be a permanent part of the landscape and really what we're focused on is where do we go over the next 10 years? Not the next 10 months.
Cardina: Absolutely. I think we've gotten a taste of a lot of these things because of the circumstances, but something like telework, I've realized that my job can be done 100% remote. Something like telehealth, once you have been able to log onto a video and see your doctor from your couch, that may be something you're interested in doing even when there's not a pandemic just because you've experienced the convenience. I definitely see where you're going with that.
Helfstein: Similarly across all these areas, another one is online retail and I imagine we'll want to jump into some of the names there, but we saw e-commerce as a percentage total retail sales go from 11%to 16%, and new numbers should be out at some point this week. But to give everybody context, it took 10 years to go from 5% to 11%. It took a decade to reach 11% penetration. Ten years. So for all the people who think that Amazon is taking over everything, all of e-commerce is still only 16% of the pie. That doesn't suggest to me that all of a sudden, it's going to go back to 11. There's a whole lot more that it's going to capture and so it's just going to expand, not recede.
Cardina: Absolutely. All right. I have some questions for you about the ETF and how it was designed, and then we'll get into some of these juicy stock names. My first question is, how do you expect this ETF to behave? How might it compare to the broader market in terms of volatility?
Helfstein: So when you look at the NASDAQ, for example, 85% of the NASDAQ weight is in technology, consumer discretionary, and communication services. Certainly, as we think about things like future of work, a lot of those elements play in similarly on the discretionary with the digital consumer. Nonetheless, when you add in food and you add in genomics and telehealth, that has a little bit more of a staples traditional defense quality to it. What we've done is we have weighted each of the four themes equally. Twice a year, we'll reconstitute to 25% per theme, and so we think that that's a way to balance. While I can't say I would expect it to be necessarily more or less volatile than a broad index, it has elements of diversification with 143 names currently in the basket, that is, I think a little bit more balanced is the right way to phrase it.
Cardina: Absolutely. What type of investor might consider this kind of ETF? Would you say this is good for someone who's looking for growth, value, diversification? Any thoughts there?
Helfstein: I think it first and foremost falls into the growth category. We really focused on areas where there is an increasing size of the pie, if you will. For example, if you're talking about something like industrial automation, U.S., Europe, China, and Japan will have, based on current worker utilization rates, 125 million shortfall of workers by 2040. If one robot can do the job of four workers, we need 31 million industrial and commercial robots, and there's three million in the world today. Those are the types of things that we're looking at, where the pie is expanding. First and foremost, investors focused on growth should think about this. Our overarching theme here is one of transformational change. For us, those are rapid, high in magnitude, and things that are very hard to reverse out of, turn back the clock. Really anybody looking for a growth sleeve and we think actually that this could fall into someone's core portfolio, within their equity sleeve as their growth alternative. Perhaps different than a Russell Growth Index that's a little bit more focused. Also people who take a core-satellite approach, this is a reasonable, dramatic satellite.
Cardina: Great. Let's talk about time periods. At the Fool, we are really long-term investors. When we're looking at the shorter side of things, we're looking at three years to five years. What would you say is the ideal time period that an investor should aim to keep their money in this ETF to experience gains?
Helfstein: We think about it the same way as you guys do when it comes to our thematic baskets. For us, when we say theme, there's really three things that we tend to focus on. One is technological innovation. The second is demographic shift. The third is changing consumer behavior. Really this captures all of it. What we've seen in the last 10 months is that so many of these changes have just been accelerated so much faster than anybody believed possible. We're seeing these changes play out in a way that was really unimaginable, and yet, it still doesn't stop the fact that these are three years, five years, seven years, 10 years, in some cases, multi-decade themes. Food revolution and sustainable food with two billion more people according to UN projections by 2050. There's 177,000 new mouths to feed every day for the next 30 years. That is not a short-term trend. That is something that we are going to be grappling with and we're going to need to bring innovation to bear, in order to handle those. For us, this is a very long-term investment.
Cardina: Great, that's very helpful. Let's dive in to each of these four categories. I think we're going to start with the future of work. Cybersecurity and automation are two trends that I think are top of mind. What can you tell us about these and which stocks in the ETF especially encapsulate these two trends, cybersecurity and automation?
Helfstein: Cybersecurity we feel as well is a really important theme. It's actually one in dissecting and doing some work for an outlook that we'll be producing early next month. Cybersecurity is actually one of the themes where the earnings increase of this year has pretty much explained the entirety of the gains. We have not seen multiples expand in cybersecurity the way that they have in some of the other areas. There is actually one of those areas where it's high-growth and still value. We have a number of names in that area. Companies like FireEye (NASDAQ: FEYE), that deliver cloud-based solutions. A company like Zscaler (NASDAQ: ZS) that provides the secure tunnel that people are using to get into their work networks when working remotely. Those are just a few. For example, Zscaler's earnings this year are up 40%. Their revenues are up 40%. We're seeing really strong growth in these areas as companies try and figure out how to get people working remotely and safely and protect their computer networks. That's something that I think will just be a permanent part of the landscape going forward. When we think about automation, an interesting name there is Cognex (NASDAQ: CGNX), which does censor technology. That's one of those areas. I discussed the disruption, for example, to meet supply. We can certainly see in the future that one approach to grappling with that is increased automation. We know we're going to need more industrial and commercial robots. We know that there is a worker shortfall in the four largest economies. That's an area that we think is really right. For example, McDonald's (NYSE: MCD), which is not in our food revolution basket, but McDonald's has a fully automated test kitchen in Arizona, where there is nobody who actually prepares your food, it is all done by a robot. Those are some of the innovations. For us, automation plays in in future of work, but really, automation and artificial intelligence cut across many of the things that we're talking about here.
Cardina: Awesome. There are also a couple of more traditional tech stocks in the future of work part of the basket. Adobe (NASDAQ: ADBE), I think a lot of people, what comes to mind is Photoshop, Illustrator, InDesign. Microsoft (NASDAQ: MSFT) people tend to think about their Office Suite, and Windows. What are some of the ways that these older tech companies are really transforming and how the pandemic has spurred that along?
Helfstein: Microsoft is a juggernaut. It's one that's hard for people to wrap their brain around, because it is so prominent. We work with the Office Suite, and Word, Excel, and our operating system. But they've taken a lot of their revenue into the cloud with subscription service. We see that cloud and productivity tools make up about two-thirds. It's really interesting that you talk about Microsoft and Adobe because they've actually announced a partnership a little while ago to take on customer relationship management. So CRM is a new segment, the two of them working in conjunction. By the way, Microsoft, as I think you were implying, also has a big gaming division with Xbox. As we think about virtualizing work, it's a little crazy to think about this. But what about the virtual reality coffee break? Or the virtual reality water cooler? There are some companies that are uniquely positioned to be able to facilitate a new and different remote working environment. Microsoft I think is one that investors should continue to pay attention to. Really important from a productivity standpoint, and Adobe as well. My 11-year-old wanted a subscription to Illustrator for his birthday this year. They are not just talking about PDFs, but they are important in secure document management. However, we've got Photoshop, we've got Illustrator, they also have an artificial intelligence product called Sensei, which actually helps people to do their graphic and document management. They're on the cutting edge of artificial intelligence and machine learning in the documents space as well.
Cardina: Awesome. We're seeing some of these older companies get involved, maybe disrupting something like Salesforce (NYSE: CRM), maybe disrupting something like DocuSign (NASDAQ: DOCU). Do you see them going after those markets?
Helfstein: I suspect with time they will. But again, it's such a rapidly growing area. If we think about the revenue growth that Salesforce has experienced, and just the growth of the CRM sector, which quite frankly almost didn't exist in its modern form 10 years ago.
Cardina: Yeah.
Helfstein: Whether we talk about something like CRM or we talk about cloud, these are all new areas. We're just at the beginning of these transformations. I would argue that what makes these companies really interesting is, you need them when times are good, and you still need them when times are bad. That whole notion of, we're going to have a reopening trade, and all the things that didn't do well are going to come back. That doesn't prevent these companies from still doing well. These companies had earnings, well, Microsoft grew their revenues by 18%. It's a multibillion dollar company that still managed to get double-digit growth over the past year. Even if that slows, and even if we do return to the office, we're still going to be using Teams and our collaborative tools. We need customer relationship management services when the economy is bad, because then it's all that more important to deliver what your clients need in a timely and efficient fashion. I think investors are a little bit prone to think about reversion to the mean, and to say that things can't stay this good for some of these companies. I think that that misses the fact that so many of these businesses didn't exist a decade ago.
Cardina: Definitely. Genomics and telehealth. I want to start with Intuitive Surgical (NASDAQ: ISRG) because this is a Fool favorite in the healthcare space. It's the company behind the da Vinci robotic surgical system. It helps surgeons perform minimally invasive procedures. It's got a nice installed base of systems, and enjoys a lot of competitive benefits. How do you envision the future of Intuitive Surgical?
Helfstein: You mentioned the importance of robots and while I'm not really a fan of not having a doctor in the room to operate on me, nonetheless, we have seen surgery, number of surgeries have come down during COVID. People are putting things off unless it is really a necessity. I think any ways we can deliver more efficient and safer healthcare outcomes is a pathway to the future and it's something that we should be excited about. When we think about something like surgical robots, there's a phenomenal barrier to entry there. You need to get people trained. They are expensive. It's not exactly the type of thing where a hospital is just going to hop off and go do something else. For a lot of reasons, we think that that's a growth opportunity. It speaks to remote, it speaks to artificial intelligence and automation, and so really encapsulates so much of what we're trying to talk about here.
Cardina: Definitely. So that we can get to all four, I'm just going to kind of speed through these digital consumers. Let's start with Amazon. (NASDAQ: AMZN) Amazon stock is up 1,700% in ten years. Beyond e-commerce, it's got a lot going for it, its biggest growth driver being Amazon Web Services, the cloud, of course. Do you think that Amazon can do anything near a repeat performance when we're looking ahead to the next decade? How do you envision this as an investment today?
Helfstein: That's where I get back to that 16%, that is the total e-commerce penetration of retail in America. We're still early on as much as it doesn't feel that way for a lot of people. There is a lot more to come. We're going to be doing more and more online. Even their roll out of the Amazon stores or their use of the Whole Foods brand in the food space, I think is all reflective of innovation. Certainly AWS has been a phenomenal success story for the company. I don't know about repeating past performance, but we do think that we're early in the digital consumer revolution still. So there's a lot more to come. We saw Amazon Prime Day had the largest sales on record. Alibaba (NYSE: BABA) just put out numbers last week from its Singles Day, which also showed phenomenally strong growth year-over-year. So there's more to come. Not only that, we also focus a lot on margins. You look at a company like Walmart (NYSE: WMT) that has successfully grown its e-commerce business, yet it's done so at the expense of margins. Whereas Amazon margins have consistently increased overtime. We think that that's a trend that they can continue. Some of those investments if they made a few years ago, for example, like their own delivery trucks has turned out to be a phenomenal advantage.
Cardina: Definitely. Another trend in the digital consumer is gaming. Scott, I am not a gamer. You're going to have to help me out with this one. We've got EA (NASDAQ: EA) and Activision (NASDAQ: ATVI) as some stocks of interest here. I'm assuming that gaming has enjoyed a lot of tailwinds with everyone being at home and not being able to socialize. What can you share about these two?
Helfstein: Just in April, gaming downloads, according to Apple (NASDAQ: AAPL), were up 30%. There are some numbers out there that are really pretty amazing, with regards to the number, not just of hours played but hours watched, literally 500 million people watch video games. In April, if we look at Twitch and YouTube gaming, which are the two biggest platforms, there were more than two billion hours of gaming watched during that time period, according to those companies' statistics. We also saw, during the pandemic, that Electronic Arts, which has the FIFA, the soccer or football franchise, if you will, they ran a competition that had almost 300,000 participants competing in a remote esports effort. Formula 1 actually put their drivers into simulators, and people were watching professional drivers in gaming simulators as the substitute for Formula 1, earlier this year. So this is a phenomenally big and growing market. I do believe that, yes, our spread gaming will probably revert a little bit as we reopen and we can do things like go to amusement parks. But, again, this is just the acceleration of a long-term trend. I mean, there's now something in the neighborhood of 100 universities that offer video gaming scholarships. These businesses will continue to see phenomenal growth over the next few years.
Cardina: Awesome. Jumping over to food revolution. Deere & Company (NYSE: DE) is not one that comes to mind for me right off the bat when I'm thinking about what I'm going to have for lunch, but maybe it should. How is Deere disrupting agriculture, farming? Why do you think that its stock is going to outperform and be helped by the tailwinds from the pandemic?
Helfstein: Well, I would pose a question that I think a lot of us don't think about, which is do we think it is easier to have a self-driving taxi operating in a downtown city or a self-driving tractor operating at a field?
Cardina: Going with a tractor.
Helfstein: As am I. Those are the types of things that investors should be thinking about, it's how all these technological innovations in one area are moving into another. When we think about, and by the way, why does the tractor only have to till the land? Why doesn't it have robotic arms in order to actually pick and store vegetables? So much of that is done by machine already and we're taking it to another level, for example, the use of drones; farmers using drones because a drone can evaluate things like oxygen level or chloroplast count in a way that walking through a field you would never see. If you have part of your crop that is getting sick or that is underdeveloped, you have a much higher likelihood of being able to use sensors from the sky. There is so much technology that is going to be brought to bear in food. Deere, for example, with something like the automated tractor will be a leading position. They already have the incumbency in terms of the relationships and they are investing to bring the technology to the customer.
Cardina: I can say that I have definitely learned a lot from you today, Scott. I appreciate you sharing all these insights with us and we will keep in touch. Good luck with your new ETF and have a great afternoon.
Helfstein: Thanks. You too, Corinne.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Corinne Cardina owns shares of Microsoft, Salesforce.com, and Teladoc Health. The Motley Fool owns shares of and recommends Activision Blizzard, Adobe Systems, Alibaba Group Holding Ltd., Amazon, Apple, Cognex, DocuSign, Facebook, Intuitive Surgical, Microsoft, Salesforce.com, Teladoc Health, and Zscaler. The Motley Fool recommends Electronic Arts and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, long January 2022 $75 calls on Activision Blizzard, short January 2022 $75 puts on Activision Blizzard, long January 2022 $580 calls on Intuitive Surgical, and short January 2022 $600 calls on Intuitive Surgical. 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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Cardina: Definitely. Even a 20% reduction in office space could be somewhere in the neighborhood of 500 billion to a trillion dollars of cost savings that will probably be redirected to things like customer relationship management software, artificial intelligence, automation, video conference. While I can't say I would expect it to be necessarily more or less volatile than a broad index, it has elements of diversification with 143 names currently in the basket, that is, I think a little bit more balanced is the right way to phrase it.
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Cardina: Definitely. Even a 20% reduction in office space could be somewhere in the neighborhood of 500 billion to a trillion dollars of cost savings that will probably be redirected to things like customer relationship management software, artificial intelligence, automation, video conference. The coronavirus pandemic has changed the world.
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Cardina: Definitely. We're seeing these changes play out in a way that was really unimaginable, and yet, it still doesn't stop the fact that these are three years, five years, seven years, 10 years, in some cases, multi-decade themes. The coronavirus pandemic has changed the world.
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Cardina: Definitely. So we have, for example, things like video conference, but we're also focused on how the changes in remote have facilitated things like automation and the automation revolution. Cardina: I can say that I have definitely learned a lot from you today, Scott.
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de0c0d31-73e5-4e99-bc9d-29a0f94de3bb
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721626.0
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2020-11-26 00:00:00 UTC
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Caterpillar Stock Now Looks Expensive After A 2x Rally
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DE
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https://www.nasdaq.com/articles/caterpillar-stock-now-looks-expensive-after-a-2x-rally-2020-11-26
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nan
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nan
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Caterpillar stock (NYSE: CAT) is up 16% since the start of the year and it has gained around 2x from its March lows. Caterpillar faces downside risk as the company’s revenues in the last four quarters have declined by 21%. The ongoing Covid-19 crisis and the economic uncertainty has hit the company’s construction as well as energy equipment business. This is likely to impact the revenue growth rate of the company – leading to a drop in the stock price.
Following a large 2x rise since the March 23 lows of this year, at the current price near $175 per share, we believe CAT stock has reached its near term potential. CAT stock has rallied from $92 to $175 off the recent bottom compared to the S&P which moved 60% over the same time period. Better than expected Q3 earnings and a faster than expected rebound in economic activity has helped the stock in beating overall markets. Moreover, the stock is up 36% from levels seen in early 2019, over a year ago. CAT stock has fully recovered to the level it was at before the drop in February due to the coronavirus outbreak becoming a pandemic, and it is now 28% above the pre-Covid highs. This seems to make it fully valued as, in reality, demand and revenues will likely be lower this year than last year. Our dashboard ‘Buy Or Sell Caterpillar Stock’ provides the key numbers behind our thinking, and we explain more below.
Some of the stock price rise over the last year is justified based on the company’s fundamentals. While Caterpillar’s revenues have declined 1.7% from $54.7 billion in 2018 to $53.8 billion in 2019, its EPS actually increased 4.4% from $10.39 to $10.85. This mismatch can primarily be attributed to a 5.1% decline in total shares outstanding due to share repurchases amounting to $4.0 billion. Also, the company expanded its net margins marginally to 11.3% aiding the overall earnings growth.
Finally, Caterpillar’s P/E ratio expanded from 12x in 2018 to 14x in 2019. While the company’s P/E has now increased to 16x, it is trading higher compared to the levels seen over the recent years, P/E of 12x in 2018, and P/E of under 14x as recently as late 2019. We believe there is a possible downside risk for Caterpillar’s multiple, and the stock is unlikely to see much upside after the recent rally and the potential weakness from a recession-driven by the Covid outbreak.
How Is Coronavirus Impacting Caterpillar Stock?
The global spread of coronavirus has affected industrial and economic activity across the world, including Caterpillar, as demand for its industrial equipment has declined. This resulted in Caterpillar taking a hit when the pandemic started. That said, now with economies gradually opening up, there has been an increase in demand for Caterpillar’s products. For Q3 though, total revenues were down 23% to $9.9 billion while earnings declined 54% to $1.22 per share, driven by margin contraction due to higher operating costs given the impact of Covid-19.
Diving into the individual segments, Energy & Transportation saw the largest impact with sales down 24% to $4.2 billion, due to reduced oil & gas demand. Construction segment sales were down 23% to $4.1 billion as demand for non-residential construction remained low. These trends will likely weigh on Caterpillar’s near term sales growth, leading us to believe that the stock is currently overvalued. In fact, overall revenues for the full year 2020 are estimated to decline 23% to around $41.5 billion, while earnings are estimated to be $5.44 on a per share basis, much lower than the $11.06 figure reported in 2019. Not only is the impact on revenues and earnings high when compared to the previous year, the recent rally in the stock has meant an expensive valuation multiple for CAT stock, making it vulnerable to downside risk. At the current price near $175, CAT stock is trading at 32x its 2020 expected EPS of $5.44 and 24x its 2021 expected EPS of $7.38, compared to levels of under 15x seen over the recent years, seemingly making it vulnerable to downside risk.
Looking at the broader economy, the actual recovery and its timing hinge on the 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. Following the Fed stimulus — which set a floor on fear — the market has been willing to “look through” the current weak period and take a longer-term view. With investors focusing their attention on 2021 results, the valuations become important in finding value. Though market sentiment can be fickle, and evidence of an uptick in new cases could spook investors once again.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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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For Q3 though, total revenues were down 23% to $9.9 billion while earnings declined 54% to $1.22 per share, driven by margin contraction due to higher operating costs given the impact of Covid-19. Diving into the individual segments, Energy & Transportation saw the largest impact with sales down 24% to $4.2 billion, due to reduced oil & gas demand. Caterpillar faces downside risk as the company’s revenues in the last four quarters have declined by 21%.
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Not only is the impact on revenues and earnings high when compared to the previous year, the recent rally in the stock has meant an expensive valuation multiple for CAT stock, making it vulnerable to downside risk. At the current price near $175, CAT stock is trading at 32x its 2020 expected EPS of $5.44 and 24x its 2021 expected EPS of $7.38, compared to levels of under 15x seen over the recent years, seemingly making it vulnerable to downside risk. Caterpillar faces downside risk as the company’s revenues in the last four quarters have declined by 21%.
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Not only is the impact on revenues and earnings high when compared to the previous year, the recent rally in the stock has meant an expensive valuation multiple for CAT stock, making it vulnerable to downside risk. At the current price near $175, CAT stock is trading at 32x its 2020 expected EPS of $5.44 and 24x its 2021 expected EPS of $7.38, compared to levels of under 15x seen over the recent years, seemingly making it vulnerable to downside risk. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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While Caterpillar’s revenues have declined 1.7% from $54.7 billion in 2018 to $53.8 billion in 2019, its EPS actually increased 4.4% from $10.39 to $10.85. At the current price near $175, CAT stock is trading at 32x its 2020 expected EPS of $5.44 and 24x its 2021 expected EPS of $7.38, compared to levels of under 15x seen over the recent years, seemingly making it vulnerable to downside risk. Caterpillar faces downside risk as the company’s revenues in the last four quarters have declined by 21%.
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6b566722-311b-4f70-ad55-55dd9bf2856e
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721627.0
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2020-11-25 00:00:00 UTC
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Deere & Co Q4 Profit Rises - Quick Facts
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DE
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https://www.nasdaq.com/articles/deere-co-q4-profit-rises-quick-facts-2020-11-25
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nan
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nan
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(RTTNews) - Deere & Co. (DE) reported that its net income for the fourth quarter ended November 1, 2020 rose to $757 million or $2.39 per share, from $722 million or $2.27 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.49 per share for the quarter. Analysts' estimates typically exclude special items.
Net income in the fourth quarter 2020 was negatively affected by impairment charges and employee-separation costs of $211 million. For the same period in 2019, the similar charges were $74 million.
In addition, net income was unfavorably affected by discrete adjustments to the provision for income taxes in both periods of 2020 and favorably impacted in both periods of 2019.
Worldwide net sales and revenues decreased 2 percent to $9.731 billion from last year. Analysts expected revenues of $7.68 billion for the quarter.
Looking ahead for for fiscal 2021, the company expects net income attributable to the company to be in a range of $3.6 billion to $4.0 billion.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Worldwide net sales and revenues decreased 2 percent to $9.731 billion from last year. (RTTNews) - Deere & Co. (DE) reported that its net income for the fourth quarter ended November 1, 2020 rose to $757 million or $2.39 per share, from $722 million or $2.27 per share last year. Analysts' estimates typically exclude special items.
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(RTTNews) - Deere & Co. (DE) reported that its net income for the fourth quarter ended November 1, 2020 rose to $757 million or $2.39 per share, from $722 million or $2.27 per share last year. Analysts' estimates typically exclude special items. Worldwide net sales and revenues decreased 2 percent to $9.731 billion from last year.
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(RTTNews) - Deere & Co. (DE) reported that its net income for the fourth quarter ended November 1, 2020 rose to $757 million or $2.39 per share, from $722 million or $2.27 per share last year. Analysts' estimates typically exclude special items. Worldwide net sales and revenues decreased 2 percent to $9.731 billion from last year.
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(RTTNews) - Deere & Co. (DE) reported that its net income for the fourth quarter ended November 1, 2020 rose to $757 million or $2.39 per share, from $722 million or $2.27 per share last year. Analysts' estimates typically exclude special items. Worldwide net sales and revenues decreased 2 percent to $9.731 billion from last year.
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1d025f7b-9903-46c4-86f7-7427e073c637
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721628.0
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2020-11-25 00:00:00 UTC
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EARNINGS-Improving farm economy drives up Deere earnings
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DE
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https://www.nasdaq.com/articles/earnings-improving-farm-economy-drives-up-deere-earnings-2020-11-25
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nan
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nan
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Adds more details, quote
CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines.
The Moline, Illinois-based company reported earnings of $2.39 per share compared with $2.27 per share last year. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share.
Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021, higher than $3.3 billion estimated by analysts surveyed by Refinitiv.
"Higher crop prices and improved fundamentals are leading to renewed optimism in the agricultural sector and improving demand for farm equipment," said Chief Executive John May.
(Reporting by Rajesh Kumar Singh, editing by Louise Heavens)
((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 more details, quote CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share. Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021, higher than $3.3 billion estimated by analysts surveyed by Refinitiv.
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Adds more details, quote CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share. Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021, higher than $3.3 billion estimated by analysts surveyed by Refinitiv.
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Adds more details, quote CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021, higher than $3.3 billion estimated by analysts surveyed by Refinitiv. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share.
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Adds more details, quote CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share. "Higher crop prices and improved fundamentals are leading to renewed optimism in the agricultural sector and improving demand for farm equipment," said Chief Executive John May.
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197a578a-83d6-4afd-9b81-bc0b014be8b3
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721629.0
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2020-11-25 00:00:00 UTC
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Deere And Co Q4 20 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-q4-20-earnings-conference-call-at-10%3A00-am-et-2020-11-25
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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 November 25, 2020, to discuss Q4 20 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 November 25, 2020, to discuss Q4 20 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 November 25, 2020, to discuss Q4 20 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 November 25, 2020, to discuss Q4 20 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 November 25, 2020, to discuss Q4 20 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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79e5827c-bf97-4b9b-bbc2-e2a52e2a271c
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721630.0
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2020-11-25 00:00:00 UTC
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Deere reports higher than expected quarterly earnings
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DE
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https://www.nasdaq.com/articles/deere-reports-higher-than-expected-quarterly-earnings-2020-11-25
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nan
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nan
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CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines.
The Moline, Illinois-based company reported earnings of $2.39 per share compared with $2.27 per share last year. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share.
Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021.
(Reporting by Rajesh Kumar Singh, editing by Louise Heavens)
((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.
|
CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share. Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021.
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CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share. Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021.
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CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share. Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021.
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CHICAGO, Nov 25 (Reuters) - Deere & Co DE.N on Wednesday reported higher than expected quarterly profit as rising crop prices, aggressive government subsidy payments and replacement demand for an aging fleet lifted the demand for farm machines. Analysts surveyed by Refinitiv, on average, expected quarterly earnings to decline to $1.45 per share. Deere said it expects net income of about $3.6 billion-$4.0 billion in the fiscal year 2021.
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c01d6345-0fa0-4ce2-8155-b3187cbe17d1
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721631.0
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2020-11-24 00:00:00 UTC
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Noteworthy Tuesday Option Activity: LUV, STX, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-luv-stx-de-2020-11-24
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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 Southwest Airlines Co (Symbol: LUV), where a total of 48,774 contracts have traded so far, representing approximately 4.9 million underlying shares. That amounts to about 45.7% of LUV's average daily trading volume over the past month of 10.7 million shares. Especially high volume was seen for the $60 strike call option expiring March 19, 2021, with 9,754 contracts trading so far today, representing approximately 975,400 underlying shares of LUV. Below is a chart showing LUV's trailing twelve month trading history, with the $60 strike highlighted in orange:
Seagate Technology plc (Symbol: STX) saw options trading volume of 13,771 contracts, representing approximately 1.4 million underlying shares or approximately 45.6% of STX's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $55.50 strike put option expiring December 24, 2020, with 4,607 contracts trading so far today, representing approximately 460,700 underlying shares of STX. Below is a chart showing STX's trailing twelve month trading history, with the $55.50 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 7,258 contracts, representing approximately 725,800 underlying shares or approximately 45.2% of DE's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $245 strike put option expiring November 27, 2020, with 506 contracts trading so far today, representing approximately 50,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $245 strike highlighted in orange:
For the various different available expirations for LUV options, STX 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 $60 strike call option expiring March 19, 2021, with 9,754 contracts trading so far today, representing approximately 975,400 underlying shares of LUV. Especially high volume was seen for the $55.50 strike put option expiring December 24, 2020, with 4,607 contracts trading so far today, representing approximately 460,700 underlying shares of STX. Especially high volume was seen for the $245 strike put option expiring November 27, 2020, with 506 contracts trading so far today, representing approximately 50,600 underlying shares of DE.
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Below is a chart showing LUV's trailing twelve month trading history, with the $60 strike highlighted in orange: Seagate Technology plc (Symbol: STX) saw options trading volume of 13,771 contracts, representing approximately 1.4 million underlying shares or approximately 45.6% of STX's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing STX's trailing twelve month trading history, with the $55.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 7,258 contracts, representing approximately 725,800 underlying shares or approximately 45.2% of DE's average daily trading volume over the past month, of 1.6 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $245 strike highlighted in orange: For the various different available expirations for LUV options, STX options, or DE options, visit StockOptionsChannel.com.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Southwest Airlines Co (Symbol: LUV), where a total of 48,774 contracts have traded so far, representing approximately 4.9 million underlying shares. Below is a chart showing LUV's trailing twelve month trading history, with the $60 strike highlighted in orange: Seagate Technology plc (Symbol: STX) saw options trading volume of 13,771 contracts, representing approximately 1.4 million underlying shares or approximately 45.6% of STX's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing STX's trailing twelve month trading history, with the $55.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 7,258 contracts, representing approximately 725,800 underlying shares or approximately 45.2% of DE's average daily trading volume over the past month, of 1.6 million shares.
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Especially high volume was seen for the $60 strike call option expiring March 19, 2021, with 9,754 contracts trading so far today, representing approximately 975,400 underlying shares of LUV. Below is a chart showing LUV's trailing twelve month trading history, with the $60 strike highlighted in orange: Seagate Technology plc (Symbol: STX) saw options trading volume of 13,771 contracts, representing approximately 1.4 million underlying shares or approximately 45.6% of STX's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing STX's trailing twelve month trading history, with the $55.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 7,258 contracts, representing approximately 725,800 underlying shares or approximately 45.2% of DE's average daily trading volume over the past month, of 1.6 million shares.
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1b484511-5ff8-4327-b5f6-82aaa7a5048d
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721632.0
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2020-11-24 00:00:00 UTC
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What To Expect From Deere Stock In Q4?
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DE
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https://www.nasdaq.com/articles/what-to-expect-from-deere-stock-in-q4-2020-11-24
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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 fourth-quarter results on Wednesday, November 25. We expect Deere to likely beat the revenue expectations but earnings could be lower compared to the consensus estimates. Revenue growth is likely to be driven by improved demand for Agriculture as well as Construction equipment.
Our forecast indicates that Deere’s valuation is around $216 a share, which is 17% lower than the current market price of around $259. Look at our interactive dashboard analysis on Deere & Company Pre-Earnings: What To Expect in Q4? for more details.
(1) Revenues expected to be ahead of consensus estimate
Trefis estimates Deere’s Q4 fiscal 2020 total revenues to be around $8.3 Bil and equipment revenue to be $8.1 Bil, 9% ahead of the consensus estimate of $7.4 Bil. While Construction equipment sales was heavily impacted due to the Covid impact, the improved demand from Agriculture helped offset some of this headwind, leading to a sales decline of 11% year-over-year (y-o-y) in Q3 2020. Deere saw a 28% drop in Construction and forestry sales while the Agriculture and turf sales were down just 5% in Q3. The company is seeing an increased spending on agricultural equipment, primarily small tractors, and this could drive the revenues in Q4. The company in its previousearnings conference callprovided an outlook for a 5% to 10% decline in Agriculture and turf sales in 2020, while it expects 25% drop in Construction and forestry segment. Our dashboard on Deere Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be below the consensus estimates
Deere’s Q4 2020 earnings per share (EPS) is expected to be $1.24 per Trefis analysis, almost 3% below the consensus estimate of $1.28. Deere’s net income of $811 million in Q3, reflected a 10% decline from its $899 million profit in the prior year quarter. However, the earnings improved sequentially from $666 million in Q2 2020, which was also the period of lockdowns due to the spread of Covid-19. Q3 also saw a higher price realization for Deere’s Agriculture and turf business, aiding the overall margins, a trend which could continue in Q4 as well. For the full-year, though, we expect a 26% y-o-y decline in EPS to $7.61.
(3) Stock price estimate lower than the current market price
Going by our Deere & Company Valuation, with a revenue estimate of around $34.1 Bil and P/E multiple of 28x in fiscal 2020, this translates into a price of $216, which is 17% lower than the current market price of around $259.
Although the coronavirus outbreak will have a sizable impact on Deere’s revenues 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
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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 & Company stock (NYSE: DE) is scheduled to report its fiscal fourth-quarter results on Wednesday, November 25. The company in its previousearnings conference callprovided an outlook for a 5% to 10% decline in Agriculture and turf sales in 2020, while it expects 25% drop in Construction and forestry segment. Q3 also saw a higher price realization for Deere’s Agriculture and turf business, aiding the overall margins, a trend which could continue in Q4 as well.
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(1) Revenues expected to be ahead of consensus estimate Trefis estimates Deere’s Q4 fiscal 2020 total revenues to be around $8.3 Bil and equipment revenue to be $8.1 Bil, 9% ahead of the consensus estimate of $7.4 Bil. 2) EPS likely to be below the consensus estimates Deere’s Q4 2020 earnings per share (EPS) is expected to be $1.24 per Trefis analysis, almost 3% below the consensus estimate of $1.28. (3) Stock price estimate lower than the current market price Going by our Deere & Company Valuation, with a revenue estimate of around $34.1 Bil and P/E multiple of 28x in fiscal 2020, this translates into a price of $216, which is 17% lower than the current market price of around $259.
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(1) Revenues expected to be ahead of consensus estimate Trefis estimates Deere’s Q4 fiscal 2020 total revenues to be around $8.3 Bil and equipment revenue to be $8.1 Bil, 9% ahead of the consensus estimate of $7.4 Bil. (3) Stock price estimate lower than the current market price Going by our Deere & Company Valuation, with a revenue estimate of around $34.1 Bil and P/E multiple of 28x in fiscal 2020, this translates into a price of $216, which is 17% lower than the current market price of around $259. Although the coronavirus outbreak will have a sizable impact on Deere’s revenues 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.
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We expect Deere to likely beat the revenue expectations but earnings could be lower compared to the consensus estimates. Revenue growth is likely to be driven by improved demand for Agriculture as well as Construction equipment. (3) Stock price estimate lower than the current market price Going by our Deere & Company Valuation, with a revenue estimate of around $34.1 Bil and P/E multiple of 28x in fiscal 2020, this translates into a price of $216, which is 17% lower than the current market price of around $259.
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1042c062-ae9b-4abe-acba-11d077063abf
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721633.0
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2020-11-23 00:00:00 UTC
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5 Market Drivers to Give Us Big Gains (and Dividends) in 2021
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DE
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https://www.nasdaq.com/articles/5-market-drivers-to-give-us-big-gains-and-dividends-in-2021-2020-11-23
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nan
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nan
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Stocks are up--and so are coronavirus cases. And right on cue, I'm hearing from plenty of investors asking if now is the time to sell and lock in their gains.
No way. It's actually a good time for us contrarians to buy. Here are five reasons why I see stocks rallying into the end of the year--and rolling higher still as we move into 2021.
Market Driver No. 1: Rising House Prices
When house prices rise, homeowners feel wealthier. And when people feel wealthier, they tend to buy stocks.
It's true that big-city properties are struggling to hold their own, but homes in the suburbs and rural areas are appreciating at a rate we haven't seen in years. That's driven strong gains in average prices right across the country:
Rural, Suburban Homes Drive Strong Gains
The upshot: This real estate market is much healthier than what we saw throughout the 2010s, where urban areas and cities saw extreme growth for already-pricey properties, while more affordable homes saw little to no growth. Now that picture has flipped, and it's bringing much-needed balance to the market.
Market Driver No. 2: Stronger Retail Sales
Partial reopenings across America, as well as consumers' worries about the virus, stoked fears that post-lockdown spending would stay depressed. So far that hasn't happened, in part because of the wealth effect created by gains in housing and the stock market.
Retail Sales Rise From Pre-COVID Levels
This is a stunning chart. First, the big dip in early 2020 shows exactly when the shutdown hit the economy. But more importantly now, we see that the growth rate for retail sales is higher than it was for three years before COVID-19 hit.
How is this possible? It has a lot to do with deferred spending. Americans who weren't able to spend, or were afraid to, during the start of COVID-19 have adjusted and are spending more comfortably today. Add in wealth gains due to suburban home-price growth you've got a retail sector that's surprisingly strong--and likely to hold up, despite the rising number of infections.
The upshot: Rising retail sales benefit big companies the most. A lot of this growth is going to Target (TGT), which recently reported one of its best quarters ever, and online leaders Amazon.com (AMZN) and Google (GOOG, GOOGL). It's also great for companies that have straddled the online and brick-and-mortar worlds, like Costco (COST) and Walmart (WMT). Strong retail sales are better for the stock market than any other part of the economy, which is why this is a good sign that we've got a buying opportunity in front of us.
Market Driver No. 3: Stimulus Is Near
Stimulus checks came and went, so we're seeing the above spending from Americans who aren't receiving government relief. That's astounding because unemployment is still at an unprecedented level, and many people are genuinely hurting out there. Both political parties know this, which is why there's a lot of incentive to get a deal done early in a Biden presidency. Few analysts believe stimulus won't happen, and it could appear as early as January. For that reason, retail sales could go from strength to an even higher level of strength.
The upshot: More money in consumers' pockets means more spending, which, in turn, amounts to higher corporate profits. And since inflation is near zero, there's a lot of room to provide stimulus checks without worrying about stoking prices.
Market Driver No. 4: Farms Are Profitable Again
This is an under-the-radar story, but America's farmers are seeing higher profits these days.
Thanks to changing consumption habits, demand for US crops has risen. In particular, corn, soybean and other staples are seeing strong demand from China, of all places. Despite tariffs brought in over the last few years, the need to fatten livestock in Asia has driven farmers to buy wheat and corn from America; this has driven the price of a form of wheat used to fatten pigs up 22%, according to data from the Wall Street Journal. Corn prices are rising, too.
Corn Prices Take Off
The upshot: American farmers are a big group that enliven smaller communities across the country. More money in their pockets means more money for nearby towns, and the states in which these farmers live. It also benefits companies selling to those farmers, including dividend growers like Deere & Co. (DE) and Archer Daniels Midland (ADM).
Market Driver No. 5: Vaccines Are Coming
Finally, we now have two vaccines for the virus that have proven to be over 90% effective. The timeline for approval and distribution is uncertain, but Pfizer (PFE) and Moderna (MRNA) are moving toward FDA approval, so vaccines could start being administered in early December.
The upshot: With two (and likely more) vaccines, along with an economic shot in the arm courtesy of (likely) stimulus, we'll probably see home prices and retail sales keep marching higher, helping lift stocks as they do.
5 Huge 8% Dividends That Will Win in 2021 (No Matter What Happens)
With stocks looking strong for the remainder of this year and into 2021, you're probably wondering what, exactly, you should buy now.
I've got you covered there, with 5 closed-end funds (CEFs) paying a rich 8% average dividend between them. Plus, these 5 buys are so cheap they're primed for 20%+ upside in the coming 12 months as their discounts bubble away--propelling their share prices higher as they do!
In fact, I fully expect even bigger gains than that as the 5 market drivers I just showed you fully kick in!
The best thing about these incredible funds is that their dividends give you a vital margin of safety no matter what happens. Because even if markets take a tumble, you'll know you have an 8% return--in cash--locked in. And because these funds are so cheap now, their discount valuations will give you an extra "shock absorber" in a pullback, too.
In short, you're looking at the ultimate "heads you win, tails you win" play here!
These funds are the perfect addition to any investor's portfolio, and now is the time to buy them. Get all the details on these 5 income gems--names, tickers, best-buy prices and my complete analysis--right here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2: Stronger Retail Sales Partial reopenings across America, as well as consumers' worries about the virus, stoked fears that post-lockdown spending would stay depressed. Add in wealth gains due to suburban home-price growth you've got a retail sector that's surprisingly strong--and likely to hold up, despite the rising number of infections. Now that picture has flipped, and it's bringing much-needed balance to the market.
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Now that picture has flipped, and it's bringing much-needed balance to the market. 2: Stronger Retail Sales Partial reopenings across America, as well as consumers' worries about the virus, stoked fears that post-lockdown spending would stay depressed. It has a lot to do with deferred spending.
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Despite tariffs brought in over the last few years, the need to fatten livestock in Asia has driven farmers to buy wheat and corn from America; this has driven the price of a form of wheat used to fatten pigs up 22%, according to data from the Wall Street Journal. Now that picture has flipped, and it's bringing much-needed balance to the market. 2: Stronger Retail Sales Partial reopenings across America, as well as consumers' worries about the virus, stoked fears that post-lockdown spending would stay depressed.
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It has a lot to do with deferred spending. Now that picture has flipped, and it's bringing much-needed balance to the market. 2: Stronger Retail Sales Partial reopenings across America, as well as consumers' worries about the virus, stoked fears that post-lockdown spending would stay depressed.
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d892dca8-e1c0-48e6-ac93-9dfc07b629ba
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721634.0
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2020-11-12 00:00:00 UTC
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After A 2x Rally Deere & Company Stock Looks Expensive
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DE
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https://www.nasdaq.com/articles/after-a-2x-rally-deere-company-stock-looks-expensive-2020-11-12
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nan
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nan
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Deere & Company stock (NYSE: DE) is up 32% since the start of the year and it has gained over 2x from its March lows. Deere faces downside risk as the company’s revenues in the last two quarters have declined by 15%. The ongoing Covid-19 crisis and the economic uncertainty is likely to result in lower demand for its Construction & Forestry equipment. This is likely to impact the revenue growth rate of the company – leading to a drop in the stock price.
Following a large 2x rise since the March 23 lows of this year, at the current price near $233 per share, we believe DE stock has reached its near term potential. DE stock has rallied from $111 to $233 off the recent bottom compared to the S&P which moved 53% over the same time period. Better than expected demand for agricultural equipment has helped the stock in beating overall markets. Moreover, the stock is up 50% from levels seen in early 2018, over two years ago. DE stock has fully recovered to the level it was at before the drop in February due to the coronavirus outbreak becoming a pandemic, and it is now 32% above the pre-Covid highs. This seems to make it fully valued as, in reality, demand and revenues will likely be lower this year than last year. Our dashboard ‘Buy Or Sell Deere & Company Stock’ provides the key numbers behind our thinking, and we explain more below.
Some of the stock price rise over the last 2 years is justified by the roughly 32% growth seen in Deere revenues from $29.7 billion in 2017 to $39.3 billion in 2019. This combined with a 13.6% growth in the company’s net income margin, helped its earnings grow by 50% over the same time period, providing a boost to the company’s stock price. Overall, earnings on a per-share basis grew by 52% as shares outstanding decreased by 1.9% due to repurchases.
Finally, Deere’s P/E ratio decreased from 23x in 2017 to 17x in 2019. While the company’s P/E has now increased to 23x, it seems to be trading much higher compared to the levels seen over the recent years, P/E of 20x in 2018, and P/E of 17x as recently as late 2019. We believe there is a possible downside risk for Deere’s multiple, and the stock is unlikely to see much upside after the recent rally and the potential weakness from a recession-driven by the Covid outbreak.
How Is Coronavirus Impacting Deere Stock?
The global spread of coronavirus has affected industrial and economic activity across the world, including Deere, as demand for agriculture as well as construction equipment has declined. This resulted in Deere taking a hit when the pandemic started. That said, now with economies gradually opening up, there has been an increase in demand for Deere’s equipment. For Q3 though, total revenues were down 11% to $8.9 billion while earnings declined only 8.5% (slower than revenue decline) to $2.57 per share, led by margin expansion due to lower SG&A and R&D costs.
Diving into the individual segments, Construction & Forestry saw the largest impact with sales down 28% to $2.8 billion, due to lower demand for the oil & gas sector after massive price erosion in oil prices in 2020. Construction & Forestry segment is expected to remain weak in the near term, with the company guiding for a 20% drop in sales for the full year, and this leads us to believe that the stock is currently overvalued. In fact, overall revenues are estimated to decline 14% to a little over $30 billion, while earnings are estimated to be $7.55 on a per share and adjusted basis for the full year 2020, much lower than the $9.94 figure reported in 2019. Not only is the impact on revenues and earnings high when compared to the previous year, the recent rally in the stock has meant an expensive valuation multiple for DE stock, making it vulnerable to downside risk. At the current price near $233, DE stock is trading at 31x its 2020 expected EPS of $7.55, compared to levels of 17x seen in 2019, making it vulnerable to downside risk.
Looking at the broader economy, the actual recovery and its timing hinge on the 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. Following the Fed stimulus — which set a floor on fear — the market has been willing to “look through” the current weak period and take a longer-term view. With investors focusing their attention on 2021 results, the valuations become important in finding value. Though market sentiment can be fickle, and evidence of an uptick in new cases could spook investors once again.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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 there is a possible downside risk for Deere’s multiple, and the stock is unlikely to see much upside after the recent rally and the potential weakness from a recession-driven by the Covid outbreak. The global spread of coronavirus has affected industrial and economic activity across the world, including Deere, as demand for agriculture as well as construction equipment has declined. Deere & Company stock (NYSE: DE) is up 32% since the start of the year and it has gained over 2x from its March lows.
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Diving into the individual segments, Construction & Forestry saw the largest impact with sales down 28% to $2.8 billion, due to lower demand for the oil & gas sector after massive price erosion in oil prices in 2020. Not only is the impact on revenues and earnings high when compared to the previous year, the recent rally in the stock has meant an expensive valuation multiple for DE stock, making it vulnerable to downside risk. At the current price near $233, DE stock is trading at 31x its 2020 expected EPS of $7.55, compared to levels of 17x seen in 2019, making it vulnerable to downside risk.
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Some of the stock price rise over the last 2 years is justified by the roughly 32% growth seen in Deere revenues from $29.7 billion in 2017 to $39.3 billion in 2019. Not only is the impact on revenues and earnings high when compared to the previous year, the recent rally in the stock has meant an expensive valuation multiple for DE stock, making it vulnerable to downside risk. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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Better than expected demand for agricultural equipment has helped the stock in beating overall markets. In fact, overall revenues are estimated to decline 14% to a little over $30 billion, while earnings are estimated to be $7.55 on a per share and adjusted basis for the full year 2020, much lower than the $9.94 figure reported in 2019. At the current price near $233, DE stock is trading at 31x its 2020 expected EPS of $7.55, compared to levels of 17x seen in 2019, making it vulnerable to downside risk.
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30a26237-37bc-426f-ad6c-ee3bc0e1c972
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721635.0
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2020-11-07 00:00:00 UTC
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Is Honeywell Stock a Buy Near Its 52-Week High?
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DE
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https://www.nasdaq.com/articles/is-honeywell-stock-a-buy-near-its-52-week-high-2020-11-07
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nan
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nan
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2020 has been a good year for Honeywell International (NYSE: HON). The red-hot industrial giant is up over 20% in the past three months, turning its shares positive for the year. Honeywell was added to the esteemed Dow Jones Industrial Average in late August to replace Raytheon Technologies, a testament that Honeywell's manufacturing, operational technology, information technology, and growing data collection and management business are an important reflection of the American economy.
With its stock near an all-time high, let's analyze Honeywell's performance, dividend, financial health, and valuation to determine if the stock can continue to roar higher.
Image source: Getty Images.
Performance
Like other industrials, Honeywell had down second- and third-quarter results. Its full-year 2020 guidance calls for $7 to $7.05 in earnings per share (EPS), down 14% from 2019.
For the third quarter, revenue was down 14% and adjusted EPS was down 25%. Honeywell expects fourth-quarter revenue to be down 11% to 14% and earnings to be down 2% to 4%. The company's third-quarter free cash flow (FCF) was the lowest quarterly number in four years.
HON data by YCharts
Normally one of the company's strongest performance metrics, Honeywell uses FCF to fund its dividend growth and share buyback program. But this quarter, the company's $758 million FCF was lower than the $1 billion or so it spent on dividends, capital expenditures, and share buybacks. However, it was still higher than the company's dividend payment alone, which was $636 million.
Growing dividend
The fact that Honeywell's lowest quarterly FCF in years was still higher than its dividend obligation is a testament to just how much of a cash cow this company is. Honeywell has raised its dividend for 11 consecutive years, an increase of nearly 200% during that time frame.
HON Free Cash Flow Per Share (Quarterly) data by YCharts
Throughout this period, the company has consistently generated excess FCF. And in the few quarters where it came up short, massive cash surpluses from the prior quarters more than made up for the deficit. Honeywell yields 2.1%.
The best balance sheet among the major industrials
Excess cash doesn't just help Honeywell buyback stock and pay dividends, it also helps its balance sheet. Honeywell continues to have the lowest net debt position of the 10 largest American industrial stocks by market capitalization, even though it's the third-largest.
HON Net Total Long Term Debt (Quarterly) data by YCharts
Honeywell's cash position and low debt have given it a considerable cushion, allowing the company to pay its dividend with relative ease and repurchase around $100 million in stock during the third quarter. In its second-quarter earnings call, Honeywell CFO Greg Lewis noted that the company didn't expect to buy back stock for the remainder of the year, but was "open to deploying capital to share repurchases and M&A investments in the second half of the year if attractive opportunities become available." That opportunity came and Honeywell was able to buy shares at a significantly lower price than they are today.
Valuation
Honeywell's dividend and balance sheet may be sound reasons to buy the stock, but what about its valuation?
HON PS Ratio data by YCharts
Shares of Honeywell are now trading at their highest price-to-sales (P/S) ratio in 10 years, and on the high end of historic price-to-FCF. If the company earns the $7 to $7.05 in 2020 as expected, that would give it a price-to-earnings (P/E) ratio of around 25.6 at its current price of $180 per share.
Given Honeywell's weak performance in the second and third quarters, it's natural to be wary about its high valuation.
A great long term buy
Honeywell is a great long-term buy. The company has proven that its high cash position and ability to put up decent results during a challenging market gives it the rare virtue of flexibility to buy back stock and keep its debt position low. The company's balance sheet leads its peers, and financial health is arguably more important than operational strength right now.
Given Honeywell's high valuation, there's no rush to pile into the stock. Investors are likely to get plenty of opportunities to pick up a few shares, knowing that when they do they are buying a premium industrial stock with an impressive track record.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Honeywell International 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 October 20, 2020
Daniel Foelber owns shares of Caterpillar, Honeywell International, and Lockheed Martin. The Motley Fool owns shares of and recommends FedEx. The Motley Fool recommends 3M and Union Pacific. 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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HON data by YCharts Normally one of the company's strongest performance metrics, Honeywell uses FCF to fund its dividend growth and share buyback program. Honeywell continues to have the lowest net debt position of the 10 largest American industrial stocks by market capitalization, even though it's the third-largest. Honeywell was added to the esteemed Dow Jones Industrial Average in late August to replace Raytheon Technologies, a testament that Honeywell's manufacturing, operational technology, information technology, and growing data collection and management business are an important reflection of the American economy.
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The best balance sheet among the major industrials Excess cash doesn't just help Honeywell buyback stock and pay dividends, it also helps its balance sheet. Honeywell continues to have the lowest net debt position of the 10 largest American industrial stocks by market capitalization, even though it's the third-largest. HON Net Total Long Term Debt (Quarterly) data by YCharts Honeywell's cash position and low debt have given it a considerable cushion, allowing the company to pay its dividend with relative ease and repurchase around $100 million in stock during the third quarter.
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Growing dividend The fact that Honeywell's lowest quarterly FCF in years was still higher than its dividend obligation is a testament to just how much of a cash cow this company is. HON Net Total Long Term Debt (Quarterly) data by YCharts Honeywell's cash position and low debt have given it a considerable cushion, allowing the company to pay its dividend with relative ease and repurchase around $100 million in stock during the third quarter. In its second-quarter earnings call, Honeywell CFO Greg Lewis noted that the company didn't expect to buy back stock for the remainder of the year, but was "open to deploying capital to share repurchases and M&A investments in the second half of the year if attractive opportunities become available."
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Growing dividend The fact that Honeywell's lowest quarterly FCF in years was still higher than its dividend obligation is a testament to just how much of a cash cow this company is. HON Net Total Long Term Debt (Quarterly) data by YCharts Honeywell's cash position and low debt have given it a considerable cushion, allowing the company to pay its dividend with relative ease and repurchase around $100 million in stock during the third quarter. Honeywell was added to the esteemed Dow Jones Industrial Average in late August to replace Raytheon Technologies, a testament that Honeywell's manufacturing, operational technology, information technology, and growing data collection and management business are an important reflection of the American economy.
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2020-11-05 00:00:00 UTC
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An Investor’s Guide to U.S. Elections
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https://www.nasdaq.com/articles/an-investors-guide-to-u.s.-elections-2020-11-05
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In this fun and friendly Election Day special episode of Industry Focus, Emily Flippen chats with Motley Fool analyst Asit Sharma about how this election may affect some companies or industries over the coming years. They discuss both Biden and Trump's policies and their implications for various industries. What happens in case any one of them gets an absolute majority or what happens in a stalemate situation? They also talk about some industries or companies which remain unchanged by the results and much more.
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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Stock Advisor returns as of 2/1/20
This video was recorded on November 3rd, 2020.
Emily Flippen: Welcome to Industry Focus. Today is Tuesday, November 3rd, and it's Election Day here in the United States. I'm your host Emily Flippen, and today I'm joined by The Motley Fool's newest political commentator Asit Sharma, and we're going to talk about some companies or industries in the wake of this election.
Asit, I'm obviously joking here, [laughs] you are not obligated to be our political commentator for the day, but I do appreciate you jumping on with me on Election Day to talk about some companies.
Asit Sharma: Yeah, I am excited to, Emily. And you know what I figure, we could use this as a demo reel; maybe we'll talk politics so well that we could do this in four years again, you know, pitch a political show to The Motley Fool team, see what happens. [laughs]
Flippen: Nothing like a 26-year-old's political opinion, right, to really make an audience angry ... [laughs]
Sharma: Hey, I'm all for it. [laughs]
Flippen: Well, either way, I really appreciate it, and we are going to do our best to talk, we obviously have no idea where this election is headed, and in typical Foolish fashion, we're long-term investors, so I can't say that either of us has really spent a ton of time speculating about this election in our portfolios, but it will be kind of fun to have those conversations today because there are a handful of industries and businesses that could be impacted depending on where this election goes in the United States. And I think it's worthwhile here on Election Day to give it a chat.
And if you're tuning in and you're hoping not to get any election news, which is totally understandable, I will, A. say, don't forget to check out MarketFoolery, one of The Motley Fool's other daily podcast, but also, B., I prerecorded an episode with Brian Feroldi for tomorrow's Wildcard Wednesday. We're going to be talking about a great food company called the Tattooed Chef, that will be a great reprieve from the political news, so definitely tune in tomorrow.
But without any further ado, Asit, let's just jump right into it. I guess to start, let's talk about if Biden were to win this election or Democrats maybe taking over some part of Congress, what companies or industries do you think could benefit from having Biden in the White House?
Sharma: Well, you know, Emily, the first that I want to bat around is cruise lines; and this is something that you actually suggested to me when we were chatting about this episode and doing some planning, you threw that out there and I thought about it, and the idea is really growing on me. And specifically, you mentioned a potential resumption in U.S. to Cuba routes for the major cruise lines.
For those listeners who aren't familiar with this, in 2016, this was the end of President Obama's second term, we normalized our relations somewhat with Cuba, and by doing so we allowed U.S. citizens to travel to Cuba for educational purposes under a now defunct program called People to People. So, as long as you could show some kind of educational purpose, you could travel. And people really took advantage of this. By 2019, the major cruise lines were enjoying booming business in these U.S. to Cuba voyages.
I did a little digging in some news articles [laughs] from that time and through subsequent years, Emily. Between January 1st and April 30th of 2019, 143,000 passengers visited Cuba from the U.S. just using cruise lines. You can compare this to air travel, which only had 115,000 [laughs] passengers, so it was really peaking and getting popular. And then, of course, in June of 2019, on June 5th, without warning the Trump Administration halted nearly all travel to Cuba via sea. And this hit profits immediately for major cruise lines. I went back to some articles I wrote at the time and I saw that the bottom-line effects, while they weren't huge, they were indicative of this sort of growing revenue and earnings stream. So, Carnival got hit about 2% of that company's 2019 earnings per share; and Norwegian's bottom-line was hit by about 8%.
So, if we have a Biden administration come in, they are pretty likely to reinstate a friendlier Cuba policy. Biden has actually signaled this already in some campaign speeches. The thing that is waiting for his posture to open this up again is a lot of capacity in the Caribbean that Royal Caribbean, Carnival Cruise Lines, Norwegian, still have, and they're ready to pile that on. So, I like this idea. And I think, look, we won't see an overnight pop in stock prices; maybe we'll see a little one if, A., Biden Administration announces a change in the Cuba policy, but long term, it definitely is a nice growth earnings driver for all three of the major cruise lines.
Flippen: Yeah, I think that's probably something I should have mentioned at the offset, is that, even if there are industries or businesses that can benefit from having a Republican or having a Democrat in control of this country for the next four years in the White House, it doesn't necessarily mean that the stock prices automatically revert to whatever the new expectations are. Can they? Of course, but we've also seen so much volatility and uncertainty in the market that I would not be trying to day trade or speculate [laughs] on any of these things. But I hope that any listeners already took that as a given, if you're a Motley Fool listener, if you're a Motley Fool subscriber, you know our mentality about these things.
But to go back to cruises, it's interesting, because I remember when there was this somewhat normalization of relationship with Cuba, it was all the rage for these cruise lines. I mean, they were talking about how significantly this would impact ridership of cruises. And it did, I mean, the numbers you cited there for ridership of cruises going into Cuba versus people taking airplanes, and it's amazing. At the same time, I feel like the noise I've heard there has just fallen off a cliff, it'll be really interesting to see if Biden wins, if that is a top priority for the administration to normalize. This could be something that takes years to create or not happen at all.
Sharma: So, the last point before we move on, that I wanted to make is, you know, another advantage of a Biden administration for cruise lines, potentially, is a much more proactive approach to tackling COVID-19. The administration that comes in, if it's Democratic Administration, is probably going to be much more willing to follow guidance from the CDC as opposed to the little bit of headbutting that we've seen between the Trump Administration and the CDC. You know, regardless of how, as an investor, you might feel politically about this posture, it could benefit cruise bookings I think, because if a Biden administration comes in, and they are really sticklers for following CDC guidelines, that can engender confidence among potential cruisegoers. So, it could be another, sort of, shorter-term or intermediate-term tailwind for cruise lines. Obviously, the best thing is to [laughs] get a vaccine and get COVID-19 behind us, but that's a near-term effect that a potential Biden administration could have on the cruise industry.
Flippen: Although, alternately, on the other hand, a more proactive approach could potentially mean an extension of no sail orders, right? If we don't have that vaccine, I could see an administration coming in and saying, hey, look, cruises are these Petri dishes, right, nobody is getting on a cruise until we're all vaccinated. And that could mean potentially no cruises for months into 2021, looking at the second half of 2021, that would be incredible.
Sharma: Yeah, a very, very good point. And that also is a possibility. Hopefully, we see declining case counts and the vaccine, but that is a risk.
Flippen: Dare to dream. [laughs] Well, one other industry that I wanted to chat about, and I apologize, I sneakily snuck it into our outline here, Asit, I know it's not an industry that you follow actively, or maybe not even that a lot of our listeners even care about, but it's one that I follow actively. So, I have to mention it, and it's the cannabis industry.
The Trump Administration has not been actively hostile toward the industry, they also haven't made it a priority over the past four years to get any legislation, whether that be decriminalization, legalization or even just loosening of banking regulations for cannabis companies, none of that has made it through the Trump Administration. It's possible that if Trump were to win a second term, that those things do make it through, I'm not going to say it won't, but it does seem more likely under a Biden administration. Biden's official policy has leaned toward decriminalization. And I think it's important in this case not to overstate the impact that decriminalization would have in the United States, it would be amazing from a social perspective for people who have been impacted by the war on drugs, but from an investing perspective, it doesn't do much to change the fundamentals that are driving the cannabis industry right now. And ultimately, we'll be having to look to the states to continue to pass legislations if a Biden administration doesn't make it a priority.
So, it's all to say that cannabis is an industry that is heavily impacted by political decisions, heavily impacted by what choices and regulations administrations put forward. I'm not overly bullish in the case of Biden, I am more bullish in the case of a Biden administration for the cannabis industry than I am for a Trump Administration, but ultimately, I think the onus has been on the states to pass legislation for cannabis.
I expect, over the next four years, that despite tailwinds that come from the Federal government, the onus is still going to be on the states. So, this election you should be looking to Montana, Arizona, states that are voting on some, sort of, medical or recreational legalization, those are going to be the true indicators of success for the expansion of the cannabis industry as opposed to the Trump Administration.
I did get a chuckle this morning, though, I had a conversation with one of our new analysts here at The Fool, Clay, who lives up in Montana, and he, of course, got out and voted this election season. But he said, there's been tons of political demonstrations in the state for and against legalization of recreational cannabis. So, it is so interesting to me how politicized this decision is. I wanted to mention it, because the industry is heavily dependent upon how regulations shape out for better or worse.
Sharma: Yeah there's so many dimensions to the cannabis industry from the investment side, if you don't invest in it, as I do, that you really see and play, you know, including the human element, the decriminalization that you mentioned, I'm interested just from that point to follow this story. But I love that advice, if you're interested in this industry, you have to look to the state level, don't assume that there's going to be a major change in either administration.
Flippen: Yeah, I definitely think that's a big takeaway here. And another one that could be interesting to look at, and it's kind of like cannabis, I don't want to overstate the importance, because I think sometimes we can make it, kind of, binary, but I'm interested to hear your take on how you view the green, you know, evolution; that's a horrible way to say that. Like, infrastructure and clean energy, how do you see focuses on environmental impact changing industry tailwinds if Biden were to win?
Sharma: Yeah. And I think, Emily, you nailed it, because it's not just about green energy or clean energy, and it's not just about infrastructure, it's a little bit of both, or potentially a lot of both. And for this to happen, we'd need to see a Biden win, and also a democratic -- I call it a sweep of Congress; that's not really what I'm talking about, but it's sort of a sweep of open seats or a near-sweep, which gets the Democrats a majority in Congress, so that both the House and the Senate would be controlled by the Democrats. So, you'd have, of course, a democratic presidency in that scenario, democratically controlled Congress. And from there, they pick up legislation that is already sitting at the Senate's doorstep. And that's the House's $1.5 trillion infrastructure bill. It's just been languishing. Or they pick out parts from the Democratic platform, the Democratic Party's platform, which is really big on surface transportation, electric energy, all types of mass transit, very interested in that greener component. So, you could see a combination of these two ideas. It would be a big bill if the Democrats do indeed gain control of Congress, just that one bill I mentioned was $1.5 trillion.
And sure, we've got [laughs] a lot of debt on the books as a country after COVID-19, and we had a lot of debt before. But I think the Democrats see this as a way to stimulate economic growth as much as it is to maybe clean up the environment and repair infrastructure. So, the overriding thought is, if we are more competitive in investing in our infrastructure, we can be competitive with that next generation of countries like China, that are heavily invested in new infrastructure.
So, I just wanted to read a couple of statistics I picked up from these documents that went back to that House bill. They had allocated $500 billion for surface transportation and other road repairs, and repairs of bridges, Emily, and $100 billion for new transit funding, so think mass transit, improved rail transit, freight as well. And that's on the commercial side. $70 billion for clean energy.
And I guess the takeaway here is, something akin to what you just mentioned, that it's really hard to get carried away as an investor and start finding really specific companies that would benefit from, say, an investment in high-speed rail; [laughs] that's hard to do. What you could do, if you're interested, is invest in, sort of, the market leaders in infrastructure. So, I'll just throw out a couple of big names that I think all of our readers have probably heard, companies that would benefit would be like a Deere & Company, symbol DE. They make heavy [laughs] earthmoving equipment. Union Pacific, they are a railroad that's going to benefit from an investment in commercial rail, and also, all the transportation that will be needed to provide your infrastructure; Martin Marietta, symbol MLM. This company invests in materials. So, think quarries, just [laughs] basic pulling stuff out of the ground to build things. And one that I like, called CH Robinson Worldwide, this is symbol CHRW, and this is a logistics company that works with all types of transportation. Air transportation, rail, ocean, logistics, you name it. They would benefit also from this kind of investment.
So, I guess the big takeaway here is, nothing is going to happen overnight, again, but if the Democrats do control Congress and they work with the Biden Administration to pass a big bill, I would look to some of these really large companies as a safe place to ride that momentum.
Flippen: And now, let's talk about what could happen if Trump were to win a second term or potentially, in the case, that Republicans take or remain in control of Congress. So, there's a lot of different scenarios that could play out, but do you think anything really changes for industries or companies or is it more of the same that we've seen over the past four years?
Sharma: Yeah. So, I'm curious about your thoughts on this. I mean, there's two scenarios, right? One is that Trump wins a second term and the Republicans retain hold of the Senate, but the Democrats keep control of the House. So, in my opinion, that's just going to be more of the same, because neither side [laughs] has been able to pass major legislation. They can't agree on anything, they're always at loggerheads. And we just seemed locked in this combat quarter-after-quarter, month-after-month, year-after-year. So, I think more of the same, if we, sort of, keep the status quo.
I'm curious what your thoughts are, would the two sides suddenly wake up and say, hey, let's work together, we've got four new [laughs] fresh years, let's make things happen. What do you think in that first scenario?
Flippen: [laughs] I haven't the first clue; I could not have predicted the past four years; I have no clue what the next four would look like. Maybe it's potentially different, right, heading into what would be than the 2024 election. Maybe both sides would have more priority on getting work done. But if the last four years have anything to say about it, compromise on both sides doesn't seem to be feasible right now. So, I kind of agree with you, I feel like more budding heads, more of the same; I wouldn't expect very much a change.
But let's paint a second scenario there, if President Trump were to win a second term and Republicans maintain the Senate, and they get control of the House. So, essentially, we have a Republican sweep, giving them a lot of opportunity to potentially make regulatory changes, policy changes. Do you think anything fundamentally changes then?
Sharma: I really think some things will change. So, for example, defense stocks would probably prosper in that scenario, because that's always a priority of Republican administration, so there would be more investment in defense. So, you can, sort of, count on that in Republican administrations. But if we get the scenario where, let's say that, and it looks improbable here, but let's say that Republicans can take control of the house -- they have a hill to climb to do that -- yeah, then I think you start to see money flowing to defense stocks.
Bank deregulation would be a big theme. The largest banks probably are going to be the ones that can benefit the most from easing of regulations. So, think JPMorgan, think Bank of America, because the biggest banks have a lot of capital requirements that they've got to adhere to. Just going back to the last financial crisis, coming out of that, banks had to have stricter capital ratios and keep more reserve money on their books, so that the whole system [laughs] wouldn't collapse again. But especially this year, I mean, this has been a priority of the Trump Administration going back to when President Trump took office. And some of this he's done through a little bit of executive order, some working with Congress, and some of this, as I was just mentioning, going back to COVID, the Federal Reserve has also worked with the Administration to loosen restrictions on capital requirements for banks, simply because we're trying to protect the system from another big systematic fail.
Now, there is this one, sort of, pillar that's still standing, Emily, and it's called GSIB. [laughs] What is GSIB? GSIB is the Globally Systematically Important Bank. So, the biggest banks in the U.S. have this extra capital requirement. They got to keep even more money on their books to keep things stable. And bankers like to think of this as like a surcharge on their capital requirements of anywhere from 1% to 3.5% of a big bank's capital base. So, this is going to be a target in a second Trump Administration, and there will be just so much more pressure if the Republicans can take the house and just have a lot of influence in Congress.
This is something that you can expect to see fall, meaning that those big banks, like JPMorgan, will be able to use even more of their capital to trade [laughs] and take on riskier investments, potentially make more money. Some would argue that that might put the whole system at risk again, as it was the days before [laughs] the financial crisis, which is a little bit of the side that I fall into, but that can be expected down the road.
Flippen: It's so funny, I'm in the process of studying for the second level of the CFA exams, and there's an entire unit that we have over financial institutions. I had never heard of GSIB before. Maybe I'm just a terrible studier, [laughs] maybe I missed it, right, I'm going to fail the exam come December, or that just shows the depth of research that you've devoted to the topic, Asit. And it will be really interesting to see what happens with these financial institutions. I think I agree with you that they stand to benefit a lot if President Trump were to win a second term, not just from deregulation, but also just trading. We've really seen -- granted it hasn't been a trend just over the past four years and it's been a longer term trend than that, but we've seen it accelerate over the past four years, just the amount of trading that is happening, whether it be from individual investors or institutions, that's a trend that I would expect to continue.
And keeping trading accessible, for instance, with trading being the volatile source of income for a lot of these big banks, that could potentially lead to great years for a lot of these banks if Trump wins a second term, and we've seen the historical trading pattern over the past four years, continue into the future.
Sharma: For sure. I totally agree with that.
Flippen: It's not just banks you're excited about, right, because I feel like there are so many different -- we saw Trump tax cuts impact the broader market as a whole. So, I know that there has to be more than just banks that are impacted if President Trump wins a second term.
Sharma: We'll look at another industry, healthcare. So, there is going to be a huge onus on a Republican administration working with at least a Republican-controlled Senate, if that's what happens, and a democratically controlled House, to pass a comprehensive plan after 10 years of Republican administration promises. And not just Republican administration, but if we're going back 10 years, these are promises made by Republican politicians, prominent ones. And if you look at the House, the Senate promises to strike down the ACA [Affordable Care Act] and replace it with a better plan. [laughs]
And now we're getting close. The majority of the Supreme Court is conservative again after the appointment of Amy Coney Barrett, and they are going to begin hearing arguments in the long-standing case to basically pull apart the ACA, the Affordable Care Act, better known as Obamacare. And this is happening beginning on November 10th.
Now, anything the Supreme Court does is going to work into next year, but the implications are huge, because if the Republicans, who are bringing this to the Supreme Court, get what they want, now there will have to be a replacement of ACA or at least major important portions of the ACA. So, who's going to benefit? Well, again, this is the theme, Emily. [laughs] Don't get too specific, stick with big pharma. So, think of companies like Merck, like Pfizer. I would avoid personally, and I'll say, I'm no healthcare expert, I'm not a health stock guru, but I will say this: avoid investing in insurance companies just with the thought that, hey, they've got a benefit because there's going to be a replacement plan, that's not necessarily so. Because the amount of heavy-lifting that it's going to do to give people who are looking for healthcare a similar package to what Obamacare offers now, we may end up in the same place. It's really hard to see how fiscally it can be done without getting something very similar to Obamacare; this [laughs] only comes down to recreating aspects of that plan, just under a Republican stamp. So, I would wait and see, I would not be going in buying insurance companies at this point; health insurers.
Flippen: Fair enough. Well, I'll tell you one industry that I've thought about a lot because of how politically charged it's become over the past few years, and that's, kind of, big tech. And my, maybe, ignorant interpretation here of the impact that could happen on big tech if President Trump were to win a second term is that, maybe there's actually less regulation, there's less antitrust concerns, as compared to if Biden wins and we have a democratic administration.
I realize that the Trump administration has not been friendly toward a lot of big tech companies, but at the same time, I have this kind of feeling, this interpretation, based on what we've heard from other major democratic leaders that a democratic administration would almost be more intent on breaking up a lot of big tech companies, maybe even companies like Google [Alphabet] comes to mind given its antitrust lawsuits in the EU. Maybe they'd be more proactive in trying to break up big tech. So, if the Trump Administration wins, while it's not, you know, shining light for big tech companies, we've seen a lot of skepticism from consumers and both parties, maybe there's still more friendly toward these companies than a Democratic administration would be.
Sharma: Yeah, Emily, I think that that's the correct big picture. You know, traditionally, Republican administrations have been more willing to look the other way where antitrust concerns are involved. They are in favor of capitalism, [laughs] companies becoming bigger. Democratic administrations have been much more willing to split apart companies, to look at the labor component in industries to see how workers are being affected. So, it should be positive for big tech if the Trump Administration retains power.
The only issue I have with this, is this almost, sort of, personal animus that President Trump seems to have against certain tech companies, [laughs] Amazon.com is the biggest example, because there's some personal clash between one of the world's richest man on any given day, Jeff Bezos, who also owns The Washington Post, [laughs] which is not very friendly toward President Trump. And so, on any particular tech company, you have this filter, you have to run what is President Trump's opinion of this company.
And I have no idea of the company I'm about to mention, what his opinion is, but we do know that The Justice Department sued Alphabet earlier this month. So, this is a case that, again, is going to go on, it's going to take several months, but at least we are seeing a willingness for the Trump Administration to tackle what traditionally would have been a more Democratic administration's concern. So, it's confusing, I think. [laughs] Yeah, I'm sort of at a loss to see what will happen.
But in general, I think your reasoning is absolutely correct, that Republican administrations will and have allowed big tech to grow in a more free environment than Democratic administrations.
Flippen: It's funny you mention President Trump's personal animosities; I wasn't planning on mentioning this, but it gave me a chuckle. I read an article last week that was essentially arguing that Twitter would likely be a good stock to own if President Trump were to win a second term. And I see you, kind of, looking confused [laughs] when I mentioned that, their argument was despite President Trump's -- "animosity" is a strong word, but Twitter, as a platform, has gone after President Trump in many ways. Putting informational notices on many of his tweets, at some point I believe they even suspended his account. So, it's not the friendliest of relationships; they're kind of stuck in a bad marriage right now.
Well, at the same time, the fact that President Trump is on Twitter, makes it the place that you, as maybe as an American, as somebody who's interested in politics or investing, whatever it may be, you kind of have to be on that platform to be following him. So, it's almost this self-fulfilling prophecy that Twitter does well when President Trump is in power, because he uses the platform so actively. Now, that could change at any moment, but I read the article and it did give me a chuckle. I'm not sure I agree with it 100%; I don't think that's a good reason to own any one company, but I did get a chuckle from it. [laughs]
Sharma: You know, there's some insight there. Really briefly, the company to own, the platform to own all this time has been The New York Times, [laughs] and I've written about this once or twice in these past four years that The New York Times and President Trump are frenemies; they need each other. The New York Times' digital subscriptions went through the roof after the Trump Administration came into power. And President Trump loves to be featured in The New York Times, even though most of the time they are investigating him [laughs] and having, you know, sour opinion columns. He really likes his relationship with those reporters, like Maggie Haberman. Although, I think this last that's deteriorated, but both have prospered. President Trump prospered from the publicity, a great PR person, and The Times, you know, just had a clear benefit. If you watched their stock price over the last four years, that's the place [laughs] we all should have been invested in if we were trying to see what might have been favored from this administration.
Flippen: How's that for counterintuitive? [laughs]
Sharma: Right. [laughs]
Flippen: Well, I do want to take a real Foolish approach to investing this election season, and I want to talk about whatever company or industry that you think the results are unchanged as a result of the election. And I said it before, but I don't think any long-term Fools will try to tell you to play or trade speculation on the election. And I want to throw back to something that happened to me last week. We had Fool-a-palooza, which is our annual company holiday. Obviously, we had it over Zoom this year, but one of our guest speakers was Bert Jacobs, he's the Co-Founder and CEO of Life is Good. And one of the things that Jacob mentions during his talk when somebody asked him how he felt about the election was that he really didn't care about what happens on a Federal level, because he really believes in his company and their future, he thinks that growth is their own.
And I liked that, there was a level of self-determination in the way that he thought about his business that I really appreciated. And I always like to say, just on a personal level, that investors shouldn't spend time worrying about things that they can't control. And with the exception of casting your vote this year for whomever, there's really nothing else that we as individuals can do to control this election, so why worry about it? I like that mindset. I thought Jacob's mindset aligned very well with the way that we view investing here at The Fool.
So, with all of that, that little monologue being said, Asit, what companies or industries do you think have self-determination? Do you think results are completely unchanged regardless of what happens today, tomorrow or this week?
Sharma: Well, first I want to say, Emily, that was such sage advice, my blood pressure just dropped so much while you were just talking. I felt so calm. I said, yeah, [laughs] that makes sense to me. I think I knew that intuitively, but it was so great to hear you say that.
I've got one industry that I think, obviously, it's no surprise to most listeners, the tech industry is going to prosper regardless who is in charge, because it's propelling so much innovation not just in pure tech stocks and software stocks, but in so many industries. Any industry which is embracing technology is getting more efficient, profit margins are rising, new revenue opportunities are opening up. So, I like tech, and I like one idea in the tech industry which is an intersection with something we were talking about earlier, which is, sort of, the construction, the infrastructure, the whole idea of engineering, which will have to, at some point here in the U.S., pickup.
And all over the world, if you look at the developing market, the developing world, there's so much investment going on in infrastructure. So, this company is Autodesk (NASDAQ: ADSK), ADSK. I really like this company, very excited about it. I'm going to read to you how they describe themselves in my radio announcer voice. "Autodesk makes software for people who make things. If you've ever driven a high-performance car, admired a towering size skyscraper, used a smartphone or watched a great film, chances are you've experienced what millions of Autodesk customers are doing with our software. Autodesk gives you the power to make anything."
So, I really love [laughs] this description, because it explains what the company does. If you didn't know anything about it, they make software that some people refer to as design build, some people refer to as computer-assisted design. But it enables someone to build anything small or something very, very complex, like the skyscraper. And I think it's going to benefit from growth in construction, engineering, architecture regardless which administration we see in just a few weeks now.
So, just to give you a little bit of information about it. As I said, it had its roots in CAD, Computer-Assisted Design software, but increasingly, it's working on total lifecycle planning and project management in industries like construction. They are really killing it in this sphere, they've decided to concentrate more on the construction industry, because that's a huge growth opportunity for them. They've transitioned to a subscription-based model. This has happened over the last several quarters. And their annual free cash flow, which is already pretty decent for their size, is projected to grow by about 70% over the next two years, and that will equal $2.4 billion in free cash flow annually. They're going to reach that from a pace of about $1.4 billion projected for this current year.
It's a little pricey. So, this company trades at 40X its forward price-to-earnings ratio ...
Flippen: It's basically cheap in comparison to everything else on the market. [laughs]
Sharma: Yeah, exactly. You know, it's almost par for the course this year after this post-COVID boom in Software-as-a-Service stocks. And you know, I like that because it's actually not 80X earnings. [laughs] You're right, Emily, stock is up 36% year-to-date, so that's part of it, but it's worth the premium in my opinion. It's got double-digit annual revenue growth, which is solid for a mature tech company. This company went public in 1985, and it's still averaging, for example, its most recent quarter hit 15% year-over-year growth.
Last couple of things about it that I really like, it's got really sweet gross margins, even for a Software-as-a-Service company, they sit around 91%. So that, even in an industry which has high gross margins to begin with, that's admirable. And again, this emphasis on the construction industry gives them a global field to play in for years to come. I think they're going to be a long-term beneficiary of global gross domestic product growth. So, yeah that is my idea; Autodesk, again, symbol ADSK.
Flippen: Well, Asit, it's such a pleasure to have you on to talk about Autodesk for this election-focused episode, because normally when I talk on Industry Focus, we're always talking about consumer goods companies. And it's great, I love talking about consumer goods, and I look forward to talking consumer goods with you for many Tuesdays to come in the future, but it's also great to hear you analyze a company that you wouldn't have otherwise had the opportunity to talk about on a Tuesday show. I, admittedly, don't know very much about Autodesk, but it's one that I do feel like I need to dig into deeper. What it reminds me of is actually a company called Procore, it's a recent IPO; I'm not sure, I have not looked at it for a number of months. But one of The Motley Fool interns we had this past Summer, virtual of course, looked at Procore as an IPO, and they were a competitor Autodesk, solely focused on the construction side of things, but it does seem like the platforms that are focusing on easing up an industry that is really built on a lot of legacy a pen-and-paper work is truly a great opportunity that, I agree with you, will likely do very well regardless of who's in the White House.
Sharma: Yeah. And I'm eager to learn more about Procore. I heard about it, and never really got the time to delve into its prospectus, but you're right, I think this industry itself has a pretty bright future, because things are going to grow. [laughs] Sometimes the world can seem so dour, but the economy keeps growing, companies keep innovating, and that's an opportunity for us as investors.
Flippen: Well, I just want to, Asit, say thank you for joining me today. And I also want to say thank you to our members for listening to this episode; it's a little bit of a weird one, it's hard to make a podcast on an Election Day talking about investing, while also not making it too political. I know that if you're tuning in, you are not here for, you know, Asit and Emily's hot takes on the political spectrum right now. And I hope that we have managed to address the very real issues that are posed to investors, based on this election while also keeping it fun, Foolish, and friendly.
But with that being said, Asit, thank you again.
Sharma: Thanks. This was a blast, Emily.
Flippen: Yeah, it was a blast, and I look forward to listening to you, you know, talk next week about whatever consumer goods topic we pull up then. [laughs] Hopefully nothing crazy happens.
Sharma: We'll see.
Flippen: Listeners, that does it for this episode of Industry Focus. If you have any questions, you can always reach out and shoot us an email at IndustryFocus@Fool.com or tweet at us @MFIndustryFocus.
As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against any stocks mentioned, so don't buy or sell anything based solely on what you hear.
Thanks to Tim Sparks for his work behind the screen today. For Asit Sharma, I'm Emily Flippen, thanks for listening and Fool on!
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Asit Sharma owns shares of Autodesk. Emily Flippen has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Autodesk, Twitter, and Zoom Video Communications. The Motley Fool recommends Carnival and The New York Times and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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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And if you're tuning in and you're hoping not to get any election news, which is totally understandable, I will, A. say, don't forget to check out MarketFoolery, one of The Motley Fool's other daily podcast, but also, B., I prerecorded an episode with Brian Feroldi for tomorrow's Wildcard Wednesday. And I think, look, we won't see an overnight pop in stock prices; maybe we'll see a little one if, A., Biden Administration announces a change in the Cuba policy, but long term, it definitely is a nice growth earnings driver for all three of the major cruise lines. Flippen: Yeah, I think that's probably something I should have mentioned at the offset, is that, even if there are industries or businesses that can benefit from having a Republican or having a Democrat in control of this country for the next four years in the White House, it doesn't necessarily mean that the stock prices automatically revert to whatever the new expectations are.
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In this fun and friendly Election Day special episode of Industry Focus, Emily Flippen chats with Motley Fool analyst Asit Sharma about how this election may affect some companies or industries over the coming years. Or they pick out parts from the Democratic platform, the Democratic Party's platform, which is really big on surface transportation, electric energy, all types of mass transit, very interested in that greener component. They discuss both Biden and Trump's policies and their implications for various industries.
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In this fun and friendly Election Day special episode of Industry Focus, Emily Flippen chats with Motley Fool analyst Asit Sharma about how this election may affect some companies or industries over the coming years. The Trump Administration has not been actively hostile toward the industry, they also haven't made it a priority over the past four years to get any legislation, whether that be decriminalization, legalization or even just loosening of banking regulations for cannabis companies, none of that has made it through the Trump Administration. I realize that the Trump administration has not been friendly toward a lot of big tech companies, but at the same time, I have this kind of feeling, this interpretation, based on what we've heard from other major democratic leaders that a democratic administration would almost be more intent on breaking up a lot of big tech companies, maybe even companies like Google [Alphabet] comes to mind given its antitrust lawsuits in the EU.
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I guess to start, let's talk about if Biden were to win this election or Democrats maybe taking over some part of Congress, what companies or industries do you think could benefit from having Biden in the White House? In this fun and friendly Election Day special episode of Industry Focus, Emily Flippen chats with Motley Fool analyst Asit Sharma about how this election may affect some companies or industries over the coming years. They discuss both Biden and Trump's policies and their implications for various industries.
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d3b48ba2-ecae-4738-973a-b5b4c9f96666
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721637.0
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2020-11-05 00:00:00 UTC
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IAU, ANEW: Big ETF Inflows
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https://www.nasdaq.com/articles/iau-anew%3A-big-etf-inflows-2020-11-05
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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 iShares Gold Trust, which added 15,200,000 units, or a 0.9% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares MSCI Transformational Changes ETF, which added 50,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of ANEW, in morning trading today Deere is up about 3.5%, and Apple is up by about 2.5%.
VIDEO: IAU, ANEW: 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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And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares MSCI Transformational Changes ETF, which added 50,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of ANEW, in morning trading today Deere is up about 3.5%, and Apple is up by about 2.5%. VIDEO: IAU, ANEW: 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 iShares Gold Trust, which added 15,200,000 units, or a 0.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares MSCI Transformational Changes ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: IAU, ANEW: 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 iShares Gold Trust, which added 15,200,000 units, or a 0.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares MSCI Transformational Changes ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: IAU, ANEW: 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 iShares Gold Trust, which added 15,200,000 units, or a 0.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares MSCI Transformational Changes ETF, which added 50,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of ANEW, in morning trading today Deere is up about 3.5%, and Apple is up by about 2.5%.
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dacb69b7-3fd8-4b07-bb16-e5a75a78835e
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721638.0
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2020-10-31 00:00:00 UTC
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5 No-Brainer Stocks to Buy if Donald Trump Wins in November
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https://www.nasdaq.com/articles/5-no-brainer-stocks-to-buy-if-donald-trump-wins-in-november-2020-10-31
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Talking heads get paid to speculate about what the market will do in different scenarios, but it is rare that anyone can truly know how a particular company, industry, or the overall market will fare based on a presidential election. That said, a reelection of a U.S. President offers more certainty, because policies that have been put in place over the past four years are likely to continue.
Based on these last four years, not campaign rhetoric or partisan editorials, there are five stocks that stand to gain should President Donald Trump earn reelection in November. Let's see why Zoom Video (NASDAQ: ZM), Chevron Corporation (NYSE: CVX), Deere & Company (NYSE: DE), Bank OZK (NASDAQ: OZK), and AbbVie (NYSE: ABBV) are poised to benefit.
Image source: Getty Images.
1. Zoom Video
As COVID-19 spread through the U.S. in the spring and summer, offices closed and family gatherings were cancelled. Many of us turned to Zoom to host events ranging from daily meetings, to virtual conferences, happy hours, and weddings.
Zoom came into 2020 on the heels of 88% sales growth in 2019. But the pandemic was rocket fuel for the company, spurring 355% growth in the second quarter to $633.5 million. In its Aug. 31 earnings call, the company projected only slight quarterly growth, expecting the demand for its services to wane as COVID-19 cases in the U.S. had fallen sharply from the summer peak. But with cases, hospitalizations, and fear on the rise in many parts of the country, the fuel for the company's stratospheric rise is not totally spent.
The Trump administration's policies and pronouncements have embraced individual responsibility, protecting the most at-risk populations, and letting the virus run its course through healthier segments of the population. Experts agree that this approach, commonly referred to as seeking "herd immunity", will result in serious medical and financial consequences.
If the President is reelected, the current approach is likely to persist. For Zoom, more cases and hospitalizations mean more time before life returns to normal. The longer it takes to get back to normal, the more gains ahead for Zoom stock.
2. Chevron
Part of President Trump's policy agenda in his first term has been to establish "American energy dominance." By eliminating regulations put in place to protect the environment, the oil and gas industry has been given the green light. In the past four years, pipelines that were put on hold have been resurrected, wildlife refuges opened up for drilling, data that track methane leaks are no longer collected, and auto emissions standards have been rolled back.
It may come as no surprise that domestic oil production hit a record high in 2017, 2018 and 2019, topping over 17 million barrels per day last year. As the largest U.S. oil company, Chevron has been a beneficiary of the changes. The company currently lists large-scale exploration in the Gulf of Mexico, the Permian Basin, and a pending project in the Arctic National Wildlife Refuge coastal plain among its projects. With a focus on energy production and few environmental regulations left in the way, the source of Chevron's future profits becomes much clearer in a second Trump term.
3. Deere
When the U.S. began setting tariffs on trade with China in July 2018, both countries took the posture of not backing down. Tariffs -- taxes levied on incoming goods -- are paid by the importers, thus eating into profit margins or increasing prices to ultimate users in the importing country. China, for its part, retaliated by cutting purchases of American agriculture. To make up for this, the Department of Agriculture doled out the highest level of farm subsidies in 14 years.
This windfall for farmers has helped spur Deere near its all-time highs. The stock is up 35% year to date, and with more than 40% of farm income set to come from government subsidies in 2020, the stock is set to continue its ascent under the Trump administration.
4. Bank OZK
The 2017 Tax Cuts and Jobs Act reduced the corporate tax rate from 35% to 21%, a 40% reduction. In reality, researchers at the Institute on Taxation and Economic Policy (ITEP) reviewed financial reports for 370 profitable corporations in the Fortune 500. They found that the effective tax rate -- what they actually paid -- went down from an average of 21.2% between 2008 and 2015 to just 11.3% in 2018.
In fact, despite the tax rate, the Organization for Economic Cooperation and Development (OECD) found that, aside from Latvia, the U.S. corporate tax revenue as a percentage of Gross Domestic Product (GDP) is the lowest in the industrialized world.
Of all the corporate winners, banks may have benefited the most, gaining not only from the reduction in tax rate, but also from a more preferable treatment of pass-through companies. A "pass-through" company is one that doesn't pay a portion of profits to the Internal Revenue Service (IRS). Instead, it passes those profits through the business, to the owner, who is now entitled to reduce the taxes on them by one-fifth. One-third of community banks in the U.S. are organized as pass-throughs and have realized the greatest benefits. A 2018 estimate from the Federal Deposit Insurance Corporation (FDIC) showed an additional $6.6 billion in profits to all of its member banks in the first quarter alone.
One such bank is Bank OZK, the holding company that operates Bank of the Ozarks. Its real estate loan portfolio may be concentrated in larger COVID-19-exposed metropolitan areas, but the bank recently hiked its dividend for the 40th consecutive quarter. The loans on the books are high quality. The bank consistently has a lower percentage of charge-offs than the industry average. The bank also outperforms the industry in key measures of profitability.
5. AbbVie
AbbVie is the maker of the world's best-selling drug. Humira, a biologic, is a treatment for autoimmune diseases such as arthritis, Crohn's disease, and plaque psoriasis, and raked in more than $19 billion in 2019. Humira accounts for 61% of the company's sales and, because it is considered a specialty drug, it is expensive for Medicare recipients. While Humira's total cost (insurance plus out-of-pocket) was estimated at more than $4,300 per month in 2019, a study found the out-of-pocket cost to someone with Medicare Part D insurance was still a whopping $5,200 annually.
All politicians seem to agree that prescription drug prices are too high in the U.S., but little has been done to curb them. Joe Biden has proposed allowing Medicare to negotiate lower drug prices, among other initiatives. President Trump, for his part, has floated several ideas, but only recently finalized a policy for importing drugs from overseas in an attempt to lower prices. While the U.S. Department of Health and Human Services (HHS) has had the authority to do this since 2000, the policy enacted in September excludes high-cost specialty drugs like Humira.
If the President loses in November, the policies will almost certainly take on the pricing of AbbVie's flagship drug, among others. If the President is reelected, expect the company's sales and profits to flourish for at least the next four years. Humira's dominance has started to wane due to competition, but with $19 billion in annual sales, it will still be a while before Humira is dethroned.
10 stocks we like better than Chevron
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Jason Hawthorne owns shares of Zoom Video Communications. The Motley Fool owns shares of and recommends Zoom Video Communications. The Motley Fool recommends UnitedHealth Group. 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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Based on these last four years, not campaign rhetoric or partisan editorials, there are five stocks that stand to gain should President Donald Trump earn reelection in November. In its Aug. 31 earnings call, the company projected only slight quarterly growth, expecting the demand for its services to wane as COVID-19 cases in the U.S. had fallen sharply from the summer peak. Talking heads get paid to speculate about what the market will do in different scenarios, but it is rare that anyone can truly know how a particular company, industry, or the overall market will fare based on a presidential election.
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Let's see why Zoom Video (NASDAQ: ZM), Chevron Corporation (NYSE: CVX), Deere & Company (NYSE: DE), Bank OZK (NASDAQ: OZK), and AbbVie (NYSE: ABBV) are poised to benefit. The Motley Fool owns shares of and recommends Zoom Video Communications. Talking heads get paid to speculate about what the market will do in different scenarios, but it is rare that anyone can truly know how a particular company, industry, or the overall market will fare based on a presidential election.
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Let's see why Zoom Video (NASDAQ: ZM), Chevron Corporation (NYSE: CVX), Deere & Company (NYSE: DE), Bank OZK (NASDAQ: OZK), and AbbVie (NYSE: ABBV) are poised to benefit. Talking heads get paid to speculate about what the market will do in different scenarios, but it is rare that anyone can truly know how a particular company, industry, or the overall market will fare based on a presidential election. That said, a reelection of a U.S. President offers more certainty, because policies that have been put in place over the past four years are likely to continue.
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That said, a reelection of a U.S. President offers more certainty, because policies that have been put in place over the past four years are likely to continue. Talking heads get paid to speculate about what the market will do in different scenarios, but it is rare that anyone can truly know how a particular company, industry, or the overall market will fare based on a presidential election. Based on these last four years, not campaign rhetoric or partisan editorials, there are five stocks that stand to gain should President Donald Trump earn reelection in November.
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7cdf40df-a5fe-4a03-a3d7-621c7649f58f
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721639.0
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2020-10-23 00:00:00 UTC
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Caterpillar: An Attractive Opportunity Compared To Deere?
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https://www.nasdaq.com/articles/caterpillar%3A-an-attractive-opportunity-compared-to-deere-2020-10-23
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Why is the market letting you buy $103 of Caterpillar revenues for a price of roughly $170 per share of Caterpillar stock (NYSE: CAT) – implying a price-to-sales, P/S, multiple of close to 1.7x – while for Deere & Company (NYSE: DE), you need to shell out closer to 1.9x? Caterpillar’s 1.7x multiple is based on its $58.5 billion in 2019 sales ($103 in sales on a per-share basis) and a stock price of $170. Can Caterpillar’s stock really be cheaper than Deere and deserve a lower price to sales multiple? The contrast isn’t a whole lot better if you use the sales figures from the last four quarters instead of the last fiscal – using numbers for the last four quarters, Caterpillar P/S is about 2x, compared to Deere’s 2.1x.
Here’s what’s going on. The price-to-sales or P/S multiple for a company is higher when the sales growth is higher, and it has a demonstrated ability to translate those sales to profits, with an expectation to do so consistently.
Sure Deere’s revenue growth is slightly higher (3% average annual revenue growth over the last 5 years vs about 1% for Caterpillar). However, Deere’s Net Margins (net profits as a percent of revenue) are lower (8.3% in 2019 vs 11.3% for Caterpillar). Using another measure of return, Deere’s 7% free cash flow margin (net profits adjusted for non-cash expenses as a percentage of revenue), is also lower compared to 12% for Caterpillar.
Our dashboard Caterpillar vs. Deere: Is CAT Stock Appropriately Valued Given It’s Lower P/S Multiple Compared to DE? details the fuller picture based on Revenue Growth, Returns (ability to generate profits from growth), and Risk (sustainability of profits), parts of which are summarized below.
Revenue Growth
Deere’s growth has been stronger than Caterpillar over the last five years, with Deere’s revenue expanding at an average rate of 3% per year from $28.9 billion in 2015 to $39.3 billion in 2019, versus Caterpillar’s revenue which grew 14% from $47.0 billion to $53.8 billion.
Deere’s revenue growth was partly led by the Wirtgen acquisition and higher volumes, due to the overall economic growth and robust U.S. housing market over this period. Caterpillar, on the other hand, has seen slower growth due to lower sales volume driven by the impact of changes in dealer inventories and lower end-user demand.
Now, the low-interest-rate environment following Covid-19 has made investors take a longer-term view, valuing higher growth companies more richly. For perspective, Deere’s market capitalization stands at over $75 billion currently, reflecting a 117% growth since mid-March, compared to about $91 billion for Caterpillar (85% growth since mid-March).
Returns (Profits)
Coming to Returns, Caterpillar has a clear edge over Deere.
Deere’s Free Cash Flows as a percentage of revenue stood at about 9% in 2019, below Caterpillar’s 13% over the same period.
Deere’s Return on Invested Capital (ROIC) is also much lower compared to Caterpillar (11% vs. 73%).
Looking at Total Shareholder Returns, Deere’s 20.4% fall short of the 22.6% figure for Caterpillar.
Risk
Deere looks like the riskier of the two companies from the perspective of financial leverage.
Cash-to-Assets Ratio: Caterpillar is in a better cash situation compared to Deere (23% vs 11%)
Debt: CAT has a smaller proportion of debt on its balance sheet compared to DE ($38.6 Bil vs $48.5 Bil).
That said, both the companies have adequate liquidity to manage their operations and service their debt, with cash position standing at over $8 billion for both the companies in the most recent quarter.
But there’s more to the risk story. Deere’s P/S multiple has swelled from 1.4x at the beginning of the year to its current level of 1.9x. The metric hasn’t seen much growth for Caterpillar, growing from 1.5x to 1.7x.
In summary, though Deere’s sales growth is higher, Caterpillar’s lower price-to-sales multiple compared to Deere looks attractive. CAT stock also appears to be less risky in comparison to DE stock. This is all sensible if you believe in a strong economic recovery post-Covid. The actual recovery 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.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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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Using another measure of return, Deere’s 7% free cash flow margin (net profits adjusted for non-cash expenses as a percentage of revenue), is also lower compared to 12% for Caterpillar. Our dashboard Caterpillar vs. Deere: Is CAT Stock Appropriately Valued Given It’s Lower P/S Multiple Compared to DE? Now, the low-interest-rate environment following Covid-19 has made investors take a longer-term view, valuing higher growth companies more richly.
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Using another measure of return, Deere’s 7% free cash flow margin (net profits adjusted for non-cash expenses as a percentage of revenue), is also lower compared to 12% for Caterpillar. For perspective, Deere’s market capitalization stands at over $75 billion currently, reflecting a 117% growth since mid-March, compared to about $91 billion for Caterpillar (85% growth since mid-March). In summary, though Deere’s sales growth is higher, Caterpillar’s lower price-to-sales multiple compared to Deere looks attractive.
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Why is the market letting you buy $103 of Caterpillar revenues for a price of roughly $170 per share of Caterpillar stock (NYSE: CAT) – implying a price-to-sales, P/S, multiple of close to 1.7x – while for Deere & Company (NYSE: DE), you need to shell out closer to 1.9x? Revenue Growth Deere’s growth has been stronger than Caterpillar over the last five years, with Deere’s revenue expanding at an average rate of 3% per year from $28.9 billion in 2015 to $39.3 billion in 2019, versus Caterpillar’s revenue which grew 14% from $47.0 billion to $53.8 billion. In summary, though Deere’s sales growth is higher, Caterpillar’s lower price-to-sales multiple compared to Deere looks attractive.
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Our dashboard Caterpillar vs. Deere: Is CAT Stock Appropriately Valued Given It’s Lower P/S Multiple Compared to DE? In summary, though Deere’s sales growth is higher, Caterpillar’s lower price-to-sales multiple compared to Deere looks attractive. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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70b5f42c-f6a0-4e30-b755-fb97f0d18f10
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721640.0
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2020-10-15 00:00:00 UTC
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Time To Sell Deere Stock After 2x Rally?
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https://www.nasdaq.com/articles/time-to-sell-deere-stock-after-2x-rally-2020-10-15
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nan
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After a 2x rise since the March 23 lows of this year, at the current price of around $235 per share we believe Deere & Company’s stock (NYSE: DE) has reached its near-term potential. Deere’s stock has rallied from $111 to $235 off the recent bottom compared to the S&P which moved 55%, with the resumption of economic activities as lockdowns are gradually lifted. DE stock is also up 58% from levels seen in early 2018, two years ago.
DE stock is now up 42% from the levels it was at before the drop in February due to the coronavirus outbreak becoming a pandemic. This seems to make it fully valued as, in reality, demand and revenues will likely be lower this year than last year.
Some of the 58% rise of the last 2 years is justified by the roughly 32% growth seen in Deere’s revenues from 2017 to 2019. Also, the company managed to expand its Net Margins by 14% from 7.3% to 8.3%, which translated into a 52% growth in earnings. While its P/E Multiple contracted between 2017 and 2019, it has expanded thus far in 2020. We believe the stock is likely to see downside despite the recent uptick and the potential weakness from a recession-driven by the Covid outbreak. Our dashboard, ‘What Factors Drove 58% Change in Deere Stock between 2017 and now?‘, has the underlying numbers.
Deere’s P/E multiple changed from 22x in 2017 to 17x in 2019. While the company’s P/E is 23x now, there is a potential downside risk when the current P/E is compared to levels seen in the past years, P/E of 20x at the end of 2018, and P/E of 17x as recent as late 2019.
So what’s the likely trigger and timing for downside?
The global spread of Coronavirus has meant a decline in economic growth, and the construction sector in particular has been one of the worst-hit. Deere’s equipment is designed to cater to two primary sectors – Agriculture and Construction. Given the decline in overall construction, the company saw a 27% plunge in segment sales, while Agriculture & Turf segment fared better with a sales decline of a mere 4% in Q3 fiscal 2020 (fiscal ends in October). The company’s management in its latest quarterlyearnings conference callprovided guidance of a 10% decline in Agriculture & Turf and a 25% decline for the Construction & Forestry segment in the current fiscal year.
The actual recovery 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. Following the Fed stimulus — which set a floor on fear — the market has been willing to “look through” the current weak period and take a longer-term view. With investors focusing their attention on 2021 results, the valuations become important in finding value. Though market sentiment can be fickle, and evidence of an uptick in new cases could spook investors once again. DE stock at $235 is trading at 23x its expected 2021 earnings, which is higher than levels of under 20x seen over the recent years.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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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After a 2x rise since the March 23 lows of this year, at the current price of around $235 per share we believe Deere & Company’s stock (NYSE: DE) has reached its near-term potential. Deere’s stock has rallied from $111 to $235 off the recent bottom compared to the S&P which moved 55%, with the resumption of economic activities as lockdowns are gradually lifted. While the company’s P/E is 23x now, there is a potential downside risk when the current P/E is compared to levels seen in the past years, P/E of 20x at the end of 2018, and P/E of 17x as recent as late 2019.
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While the company’s P/E is 23x now, there is a potential downside risk when the current P/E is compared to levels seen in the past years, P/E of 20x at the end of 2018, and P/E of 17x as recent as late 2019. Given the decline in overall construction, the company saw a 27% plunge in segment sales, while Agriculture & Turf segment fared better with a sales decline of a mere 4% in Q3 fiscal 2020 (fiscal ends in October). The company’s management in its latest quarterlyearnings conference callprovided guidance of a 10% decline in Agriculture & Turf and a 25% decline for the Construction & Forestry segment in the current fiscal year.
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After a 2x rise since the March 23 lows of this year, at the current price of around $235 per share we believe Deere & Company’s stock (NYSE: DE) has reached its near-term potential. The company’s management in its latest quarterlyearnings conference callprovided guidance of a 10% decline in Agriculture & Turf and a 25% decline for the Construction & Forestry segment in the current fiscal year. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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We believe the stock is likely to see downside despite the recent uptick and the potential weakness from a recession-driven by the Covid outbreak. While the company’s P/E is 23x now, there is a potential downside risk when the current P/E is compared to levels seen in the past years, P/E of 20x at the end of 2018, and P/E of 17x as recent as late 2019. The global spread of Coronavirus has meant a decline in economic growth, and the construction sector in particular has been one of the worst-hit.
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a1c8577e-0591-40b4-b127-0e753cccfd68
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721641.0
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2020-10-09 00:00:00 UTC
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More Stimulus Hopes As Stocks Rise
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DE
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https://www.nasdaq.com/articles/more-stimulus-hopes-as-stocks-rise-2020-10-09
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nan
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nan
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With the S&P 500 holding onto some of the best levels since early September, it is good to look at things in an optimistic light, amid uncertainty. CNBC's Bob Pisani took a look at the stocks being on the rise, with some additional thoughts on the hopes of further stimulus headed to the people, despite what's been said.
With so many good opens, 5 to 1 advancing to declining stocks, which bodes well. There's been a modest cyclical rally, where investors can look at the various SPDR funds and see a steady climb. The energy sector would likely be among these increasing areas, were it not for the hurricane currently in the south and a resulting drop for oil.
Meanwhile, tech is doing well enough, but industrials are hitting many new highs, with companies including Caterpillar, Deere, and FedEx all reaching new rallying highs, with continued legs. The same goes for airlines, which are all performing strongly and doubling the S&P performance.
Watch Bob Pisani Go Over Market Action:
https://www.youtube.com/watch?v=iB80ggzYwRA
A modest rally in the bank stocks can also be seen, one of the better rallies in this area so far, this year. There are double-digit gains in bank firms such as Regions Financial, Comerica, and U.S. Bancorp.
Bringing things to areas related to post-election hopes for stimulus around infrastructure, material stocks are doing great as well. Steel stocks, copper, and other areas are all up big right now. It all plays a lot into the cyclical rally taking place and what to keep hoping for.
That in mind, investors and advisors have no clear idea what to expect from stimulus overall, as there's no sign of actually seeing pre-election stimulus, rather than post. Not to mention whether it's a comprehensive package or a standalone deal. It's led to much confusion, with many on the sidelines. Also wild is seeing the volume light on the up days, yet heavier on the down days, indicating a lack of buyer enthusiasm.
However, as far as enthusiasm for Q4 goes, it comes down to what is coming off from Q3. Most companies reporting are said to have beaten estimates, which has raised the estimates for Q4, given the potential. That's a good reason to be bullish, even with the various elements still out their (Covid, election results) that may cause uncertainty.
For more market trends, visit ETF Trends.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CNBC's Bob Pisani took a look at the stocks being on the rise, with some additional thoughts on the hopes of further stimulus headed to the people, despite what's been said. With so many good opens, 5 to 1 advancing to declining stocks, which bodes well. There's been a modest cyclical rally, where investors can look at the various SPDR funds and see a steady climb.
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CNBC's Bob Pisani took a look at the stocks being on the rise, with some additional thoughts on the hopes of further stimulus headed to the people, despite what's been said. There's been a modest cyclical rally, where investors can look at the various SPDR funds and see a steady climb. Watch Bob Pisani Go Over Market Action: https://www.youtube.com/watch?v=iB80ggzYwRA A modest rally in the bank stocks can also be seen, one of the better rallies in this area so far, this year.
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CNBC's Bob Pisani took a look at the stocks being on the rise, with some additional thoughts on the hopes of further stimulus headed to the people, despite what's been said. Watch Bob Pisani Go Over Market Action: https://www.youtube.com/watch?v=iB80ggzYwRA A modest rally in the bank stocks can also be seen, one of the better rallies in this area so far, this year. With so many good opens, 5 to 1 advancing to declining stocks, which bodes well.
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CNBC's Bob Pisani took a look at the stocks being on the rise, with some additional thoughts on the hopes of further stimulus headed to the people, despite what's been said. Watch Bob Pisani Go Over Market Action: https://www.youtube.com/watch?v=iB80ggzYwRA A modest rally in the bank stocks can also be seen, one of the better rallies in this area so far, this year. With so many good opens, 5 to 1 advancing to declining stocks, which bodes well.
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a5125321-c563-48ca-86c9-748f47f955fc
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721642.0
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2020-10-07 00:00:00 UTC
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What Is Precision Farming, And Who Are The Players To Watch?
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DE
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https://www.nasdaq.com/articles/what-is-precision-farming-and-who-are-the-players-to-watch-2020-10-07
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nan
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nan
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F
ood is perhaps the best known consumable product, and the economic laws of supply and demand are pointing to an emerging pain point unlike any we have seen in recent history. To combat this looming problem, the agriculture industry is embracing technology, much of which is similar to that housed inside the smartphones we use today, giving rise to the precision agriculture market.
The problem
The current average life expectancy in the U.S. stands at 78.8 years according to a National Center for Health Statistics, which was on par with the 78.6 years in Europe reported as of 2019. By comparison, historical data from the United Nations reveals life expectancy in 1950 was 65 years in more developed regions of the world and 42 in less developed ones. The increase is driven by several factors, including a healthier lifestyle, which in and of itself has been found to add up 6.3 years for males and 7.6 years for women, according to findings from the UK Biobank.
At the same time, the United Nation’s Population Division expects the global population to hit 10.9 billion by the end of the current century compared to 7.8 billion in 2020. Rising disposable incomes among the growing population is fostering greater demand for complex proteins. More people living longer poses a challenge to the nutritious diet aspect of that healthier lifestyle, given that arable land per person is shrinking.
According to the FAO, arable land per person stood at 0.23 hectares (ha), down from 0.38 ha in 1970 and is expected to fall to 0.15 ha per person by 2050. We at Tematica describe that situation as a pain point, and pain points tend to give rise to solutions. In this case, it means we need to make better use of our existing farmlands, and that has prompted farmers to adopt technology to boost yields while helping to manage costs.
This wave of technology-meets-farming has given rise to the precision agriculture market, which is expected to reach $12.9 billion by 2027, according to Grand View Research, up from $9.65 billion in 2019.
What is Precision Agriculture?
According to the International Society of Precision Agriculture, “Precision agriculture is a management strategy that gathers, processes and analyzes temporal, spatial and individual data and combines it with other information to support management decisions according to estimated variability for improved resource use efficiency, productivity, quality, profitability and sustainability of agricultural production.”
In other words, it is about using high-tech tools to generate greater yield with less resources while minimizing any potential harm.
Just how important is this? The World Economic Forum estimates that if just 15% to 25% or farms were to adopt precision agriculture techniques, global crop yield could increase by 10% to 15% by 2030 while at the same time reducing greenhouse gas emissions and water use by 10% and 20% respectively.
That sounds great, but do we really need to do this?
Soil today is eroding up to 100 times more quickly than it forms. Some research indicates that we may have already lost more than one-third of the planet’s arable land. Even more concerning, if the current rates of soil degradation continues, the remaining arable land could become unfarmable in the next 60 years.
How does precision agriculture help?
The market that would become precision agriculture started in the 1990s with the adoption of GPS that allowed farmers to gather data and steer equipment automatically. While it may seem somewhat pedestrian in today’s connected world, GPS tractor guidance helped farmers to improve crop production by reducing overlaps and gaps when planting, fertilizing, and protecting crops. Over the last two decades technological developments including telematics, robotics, automated hardware, agriculture drones, and variable rate technology have expanded precision agriculture to include equipment guidance and automatic steering, yield monitoring, variable rate input application, remote sensing, in-field electronic sensors, section and row control on planters, sprayers and fertilizer applicators, and spatial data management systems.
Much like we have seen technology enable a host of new applications such as video conferencing and streaming video that has altered how we work and play, technology has expanded the capabilities of precision agriculture as well:
Choosing suitable crops with higher yields and more lucrative markets
Measure the performance of the site by automatically capturing relevant data
Increasing the farm’s economic and environmental sustainability
Predicting climate changes and reacting to them proactively
Existing as well as up and coming precision agriculture players to watch
Companies participating in the precision agriculture market include agriculture equipment companies such as John Deere (DE), AGCO (AGCO), CNH Industrial (CNHI), and Kubota Corp. (KUBTY) and even drone company Aerovironment (AVAV). There are also the technology enablers that include GPS companies such as Trimble (TRMB) and the applied technology business at Raven Industries (RAVN) as well as the chip and sensor companies that range from NXP Semiconductors (NXPI) to STMicroelectronics (STM) that serve the “smart farming” market.
As a confluence of factors have raised concerns over the long-term future availability of food, venture investors have been pouring capital into agtech startups. In 2019 alone, they invested $2.8 billion into the space across the globe, a fourfold increase over 2015. According to the 2019 AgriFood Tech Investment Review, investment in digital technologies (which combines the independent sectors of imagery, precision agriculture and sensors and farm equipment) made up about 41% of 2019 deal activity.
Some examples of these investments are Farmobile and its DataEngine that ingests and standardizes farming data so that it can be shared and used to create insights; Trace Genomics that provides soil DNA sequencing services to farmers and agronomists; and CiBo Technologies that allows farmers to create “virtual fields” with real-world inputs.
With greater adoption of artificial intelligence, big data, and the internet of things in the coming years we strongly suspect there will be new applications and further advances for precision farming, much like we’ve witnessed with the smartphone and the automobile of today compared to ten years ago.
Disclosures
AGCO Corp. (AGCO), Deere & Co. (DE), Raven Industries (RAVN) are constituents in the Foxberry Tematica Research Sustainable Future of Food Index
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the last two decades technological developments including telematics, robotics, automated hardware, agriculture drones, and variable rate technology have expanded precision agriculture to include equipment guidance and automatic steering, yield monitoring, variable rate input application, remote sensing, in-field electronic sensors, section and row control on planters, sprayers and fertilizer applicators, and spatial data management systems. ood is perhaps the best known consumable product, and the economic laws of supply and demand are pointing to an emerging pain point unlike any we have seen in recent history. To combat this looming problem, the agriculture industry is embracing technology, much of which is similar to that housed inside the smartphones we use today, giving rise to the precision agriculture market.
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Over the last two decades technological developments including telematics, robotics, automated hardware, agriculture drones, and variable rate technology have expanded precision agriculture to include equipment guidance and automatic steering, yield monitoring, variable rate input application, remote sensing, in-field electronic sensors, section and row control on planters, sprayers and fertilizer applicators, and spatial data management systems. Much like we have seen technology enable a host of new applications such as video conferencing and streaming video that has altered how we work and play, technology has expanded the capabilities of precision agriculture as well: Choosing suitable crops with higher yields and more lucrative markets Measure the performance of the site by automatically capturing relevant data Increasing the farm’s economic and environmental sustainability Predicting climate changes and reacting to them proactively Existing as well as up and coming precision agriculture players to watch Companies participating in the precision agriculture market include agriculture equipment companies such as John Deere (DE), AGCO (AGCO), CNH Industrial (CNHI), and Kubota Corp. (KUBTY) and even drone company Aerovironment (AVAV). Disclosures AGCO Corp. (AGCO), Deere & Co. (DE), Raven Industries (RAVN) are constituents in the Foxberry Tematica Research Sustainable Future of Food Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to the International Society of Precision Agriculture, “Precision agriculture is a management strategy that gathers, processes and analyzes temporal, spatial and individual data and combines it with other information to support management decisions according to estimated variability for improved resource use efficiency, productivity, quality, profitability and sustainability of agricultural production.” In other words, it is about using high-tech tools to generate greater yield with less resources while minimizing any potential harm. Over the last two decades technological developments including telematics, robotics, automated hardware, agriculture drones, and variable rate technology have expanded precision agriculture to include equipment guidance and automatic steering, yield monitoring, variable rate input application, remote sensing, in-field electronic sensors, section and row control on planters, sprayers and fertilizer applicators, and spatial data management systems. Much like we have seen technology enable a host of new applications such as video conferencing and streaming video that has altered how we work and play, technology has expanded the capabilities of precision agriculture as well: Choosing suitable crops with higher yields and more lucrative markets Measure the performance of the site by automatically capturing relevant data Increasing the farm’s economic and environmental sustainability Predicting climate changes and reacting to them proactively Existing as well as up and coming precision agriculture players to watch Companies participating in the precision agriculture market include agriculture equipment companies such as John Deere (DE), AGCO (AGCO), CNH Industrial (CNHI), and Kubota Corp. (KUBTY) and even drone company Aerovironment (AVAV).
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Much like we have seen technology enable a host of new applications such as video conferencing and streaming video that has altered how we work and play, technology has expanded the capabilities of precision agriculture as well: Choosing suitable crops with higher yields and more lucrative markets Measure the performance of the site by automatically capturing relevant data Increasing the farm’s economic and environmental sustainability Predicting climate changes and reacting to them proactively Existing as well as up and coming precision agriculture players to watch Companies participating in the precision agriculture market include agriculture equipment companies such as John Deere (DE), AGCO (AGCO), CNH Industrial (CNHI), and Kubota Corp. (KUBTY) and even drone company Aerovironment (AVAV). ood is perhaps the best known consumable product, and the economic laws of supply and demand are pointing to an emerging pain point unlike any we have seen in recent history. To combat this looming problem, the agriculture industry is embracing technology, much of which is similar to that housed inside the smartphones we use today, giving rise to the precision agriculture market.
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2550908a-3ba0-48e9-9250-31283c8653d7
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721643.0
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2020-09-28 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for September 29, 2020
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-for-september-29-2020-2020-09-28
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nan
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nan
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Deere & Company (DE) will begin trading ex-dividend on September 29, 2020. A cash dividend payment of $0.76 per share is scheduled to be paid on November 09, 2020. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 8th quarter that DE has paid the same dividend. At the current stock price of $219.25, the dividend yield is 1.39%.
The previous trading day's last sale of DE was $219.25, representing a -2.72% decrease from the 52 week high of $225.38 and a 106.57% increase over the 52 week low of $106.14.
DE is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc (TMO) and ASML Holding N.V. (ASML). DE's current earnings per share, an indicator of a company's profitability, is $8.58. Zacks Investment Research reports DE's forecasted earnings growth in 2020 as -25.39%, compared to an industry average of -14%.
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 (HAP)
VanEck Vectors Agribusiness ETF (MOO)
SPDR Select Sector Fund - Industrial (XLI)
iShares MSCI Agriculture Producers Fund (VEGI)
First Trust Indxx Global Agriculture ETF (FTAG).
The top-performing ETF of this group is XLI with an increase of 23.93% over the last 100 days. HAP has the highest percent weighting of DE at 9.78%.
The views and 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 2020 as -25.39%, compared to an industry average of -14%. 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. DE's current earnings per share, an indicator of a company's profitability, is $8.58. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF (HAP) VanEck Vectors Agribusiness ETF (MOO) SPDR Select Sector Fund - Industrial (XLI) iShares MSCI Agriculture Producers Fund (VEGI) 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 Natural Resources ETF (HAP) VanEck Vectors Agribusiness ETF (MOO) SPDR Select Sector Fund - Industrial (XLI) iShares MSCI Agriculture Producers Fund (VEGI) First Trust Indxx Global Agriculture ETF (FTAG).
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A cash dividend payment of $0.76 per share is scheduled to be paid on November 09, 2020. DE's current earnings per share, an indicator of a company's profitability, is $8.58. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF (HAP) VanEck Vectors Agribusiness ETF (MOO) SPDR Select Sector Fund - Industrial (XLI) iShares MSCI Agriculture Producers Fund (VEGI) First Trust Indxx Global Agriculture ETF (FTAG).
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2124ce0d-5795-4d3f-a539-48ad7470f2e5
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721644.0
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2020-09-23 00:00:00 UTC
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3 Real Deal Stocks to Buy Now
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DE
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https://www.nasdaq.com/articles/3-real-deal-stocks-to-buy-now-2020-09-23
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nan
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nan
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Three very different stocks all offer investors an opportunity to benefit from structural changes in their end markets that have been inspired by technology. Agricultural equipment company Deere (NYSE: DE) has a growth opportunity from its smart farming solutions. Zebra Technologies' (NASDAQ: ZBRA) mobile computers, barcode scanners, and printers help companies better manage their assets. Meanwhile, smart water technology company Xylem (NYSE: XYL) is seeking to expand sales of its smart analytics solutions. All three have long-term growth prospects which could lead to good returns for investors in the coming years, so let's take a closer look at them.
Deere
Despite some very difficult end-market conditions in the last few years, Deere continues to seek strong rates of adoption for its precision agriculture solutions.
These technology-driven solutions (including telematics, onboard computers, and analytics) help farmers to better steer, guide, and control farming equipment. Meanwhile, the automated data collected from Internet of Things (IoT) sensors can then be analyzed in order to control planting and seeding and ultimately improve crop yield.
Image source: Getty Images.
As previously argued, Deere's valuation may seem high (trading on 29 times estimated 2020 earnings), but it's a highly cyclical company and 2020 is likely to mark a multi-year trough. In fact, its valuation is pretty much in line with what Deere has traded on in previous troughs.
However, the difference this time around is that Deere's precision agriculture solutions are likely to contribute to driving sales in the future. Not only is there a recurring element to the aftermarket/service sales, but the precision agriculture solutions will keep customers loyal to Deere's machinery, and create added value to Deere's equipment.
Meanwhile, the aging fleet of U.S. farming equipment should lead to a natural replacement demand cycle in the coming years, and farmers are slowly getting over the initial shock of the trade conflict affecting soybean demand from China.
All told, everything points to a multi-year sales recovery for Deere, and the stock remains attractive for investors.
Data by YCharts
Zebra Technologies
Zebra's barcode scanners, mobile computers, and printers help companies gather and analyze data in real time. The company's handheld technology may seem archaic and contrary to the trend toward automation, but the reality is that Zebra's solutions are actually in support of it.
Zebra's key end markets are retail/e-commerce, manufacturing, and transportation/logistics, and to a lesser extent, healthcare. Retail and aviation passenger demand is seen as challenged in the current environment, but other end markets may turn out to be net beneficiaries of the COVID-19 pandemic.
For example, e-commerce is growing strongly, and the pressure to intelligently automate manufacturing, transportation, and healthcare means customers will need to gather real-time data to analyze and act upon. Moreover, Zebra's main competitor, Honeywell, believes its directly comparable business grouping, productivity products, will return to growth in the second half, and the company looks set to continue its track record of mid-single-digit revenue growth in the future.
Turning to valuation matters, Zebra tends to be very good at converting earnings into free cash flow. On this basis, the stock looks very attractive.
Data by YCharts
Xylem
Sustainable water technology company Xylem generates around half of its sales from water utilities, around a third from industrial water treatment, and the rest from commercial/residential water. Demand from the industrial sector will ebb and flow with the industrial economy, so it's not surprising that it's been hit this year. The pandemic has also negatively affected Xylem's supply chain and its ability to serve its utilities customers. As a result, organic sales declined 12% in the second quarter, and analysts are expecting a reported sales decline of 10% in 2020.
Identifying and controlling leakages is a major issue for water utilities. Image source: Getty Images.
Regardless, Xylem still looks to have some strong long-term growth prospects. The excitement centers on its smart infrastructure solutions, namely advanced infrastructure analytics (AIA). Leakage, theft, and inaccurate billing are major issues for water utilities, and Xylem's AIA solutions use web-enabled technology to help intelligently monitor and control these issues.
As the economy recovers, Xylem's industrial wastewater treatment revenue should pick up, and there's a long-term opportunity from expanding AIA sales to utilities.
Trading on 32 times estimated 2021 earnings, Xylem certainly isn't a cheap stock, and cautious investors will wait for a pullback. However, its long-term prospects look assured, and investors can feel confident about the company growing earnings well into the future.
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Lee Samaha owns shares of Honeywell International. The Motley Fool recommends Zebra Technologies. 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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Meanwhile, the automated data collected from Internet of Things (IoT) sensors can then be analyzed in order to control planting and seeding and ultimately improve crop yield. Agricultural equipment company Deere (NYSE: DE) has a growth opportunity from its smart farming solutions. Zebra Technologies' (NASDAQ: ZBRA) mobile computers, barcode scanners, and printers help companies better manage their assets.
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Zebra Technologies' (NASDAQ: ZBRA) mobile computers, barcode scanners, and printers help companies better manage their assets. Data by YCharts Zebra Technologies Zebra's barcode scanners, mobile computers, and printers help companies gather and analyze data in real time. Agricultural equipment company Deere (NYSE: DE) has a growth opportunity from its smart farming solutions.
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Data by YCharts Zebra Technologies Zebra's barcode scanners, mobile computers, and printers help companies gather and analyze data in real time. Data by YCharts Xylem Sustainable water technology company Xylem generates around half of its sales from water utilities, around a third from industrial water treatment, and the rest from commercial/residential water. Agricultural equipment company Deere (NYSE: DE) has a growth opportunity from its smart farming solutions.
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Agricultural equipment company Deere (NYSE: DE) has a growth opportunity from its smart farming solutions. As previously argued, Deere's valuation may seem high (trading on 29 times estimated 2020 earnings), but it's a highly cyclical company and 2020 is likely to mark a multi-year trough. Data by YCharts Zebra Technologies Zebra's barcode scanners, mobile computers, and printers help companies gather and analyze data in real time.
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f1c1466f-9ed6-4ede-b873-92933df43d25
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721645.0
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2020-09-17 00:00:00 UTC
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Is Navistar Stock Fully Priced At $43?
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DE
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https://www.nasdaq.com/articles/is-navistar-stock-fully-priced-at-%2443-2020-09-17
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nan
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nan
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Navistar International stock (NYSE:NAV) has rallied a stellar 172% since late March (vs. about 50% for the S&P 500) to its current level of $43. It fell to a low of $15 in late March as a rapid increase in the number Covid-19 cases outside China resulted in heightened fears of an imminent global economic downturn. The stock has fully recovered and it now trades 10% above the peak levels it reached in mid-February. Are the gains warranted? We largely think that they are given Tratonâs bid for Navistar that we discuss in the section below. We believe that the stock is likely to hold on to the gains seen over the recent weeks, though any significant upside from the current levels is unlikely, despite the fact that fears surrounding the pandemic have been reduced and the economic recovery is expected to gather speed. Our conclusion is based on the current developments around the company, and our detailed comparison of Navistarâs stock performance during the current crisis with that during the 2008 recession in an interactive dashboard analysis.
How Did NAV Stock Fare During The 2008 Downturn?
We see NAV stock declined from levels of around $55 in October 2007 (the pre-crisis peak) to roughly $28 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 45% of its value from its approximate pre-crisis peak. This marked a slightly lower drop than the broader S&P, which fell by about 51%.
However, NAV stock recovered post the 2008 crisis to about $39 in early 2010 â rising by 37% between March 2009 and January 2010. The S&P, itself, bounced back by about 48% over the same period.
In comparison, NAV stock lost 59% of its value between the market peak on February 19 to the low on March 23, and has rallied 172% since then. The S&P fell by about 34% and rebounded by about 50%.
Is The Recovery Warranted & Can We Expect Further Gains?
The rally across industries over recent weeks can primarily be attributed to the Fed stimulus which largely put investor concerns about the near-term survival of companies to rest. The flattening of Covid cases in badly hit U.S. and European cities is also giving investors confidence that developed countries have put the worst of the pandemic behind them.
Navistarâs business has been impacted given that many industrial units are working at a limited capacity, and automotive, in particular, has been the worst hit segment for transportation companies. Thus far in fiscal 2020 (fiscal ends in October), Navistar has seen a 16% decline in revenues, primarily led by a 43% decline in truck products and 19% drop in parts. Navistar reported a loss of $1.11 per share for nine month period ending July, compared to $1.20 profit per share in the prior year period. The earnings decline was steeper than revenues, due to a contraction in margins, given the volume was lower and fixed costs remained the same.
Looking forward, with the gradual easing of lockdowns and plants working at increased capacity, sales for Navistar will likely increase in the near term. We know that a decline in sales for many companies is imminent in 2020 given the pandemic. As we look at 2021, the sales are expected to increase in high teens y-o-y. Going by consensus estimate, earnings of $1.59 per share in 2021 is much better than a loss of $0.64 per share in 2020. This means at the current price of $42, Navistar is trading at 26x its 2021 earnings. In the past, Navistar has traded at a much lower multiple of 8x and 13x in 2018 and 2019 respectively, leading us to believe that any significant growth from the current levels is unlikely.
But then why this rally, and can the stock hold on to its recent gains? The recent rally can largely be attributed to Volkswagenâs truck unit Traton trying to acquire Navistar. It recently offered $43 a share for the company, and thatâs the reason why the stock shot up, and it is likely to hold on to its gains. In fact, if Traton were to further sweeten the deal, Navistarâs stock could see a further uptick.
Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations. While fiscal Q4 results are expected to be better than Q3, investors will focus their attention on Tratonâs bid for Navistar along with 2021 results â helping Navistar stock hold on to the recent gains.
What if youâre looking for a more balanced portfolio instead? Hereâs a top quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
Whatâs behind Trefis? See How Itâs 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 stock is likely to hold on to the gains seen over the recent weeks, though any significant upside from the current levels is unlikely, despite the fact that fears surrounding the pandemic have been reduced and the economic recovery is expected to gather speed. The flattening of Covid cases in badly hit U.S. and European cities is also giving investors confidence that developed countries have put the worst of the pandemic behind them. Navistar International stock (NYSE:NAV) has rallied a stellar 172% since late March (vs. about 50% for the S&P 500) to its current level of $43. It fell to a low of $15 in late March as a rapid increase in the number Covid-19 cases outside China resulted in heightened fears of an imminent global economic downturn.
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Navistar International stock (NYSE:NAV) has rallied a stellar 172% since late March (vs. about 50% for the S&P 500) to its current level of $43. It fell to a low of $15 in late March as a rapid increase in the number Covid-19 cases outside China resulted in heightened fears of an imminent global economic downturn. Thus far in fiscal 2020 (fiscal ends in October), Navistar has seen a 16% decline in revenues, primarily led by a 43% decline in truck products and 19% drop in parts. The stock has fully recovered and it now trades 10% above the peak levels it reached in mid-February.
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Navistar International stock (NYSE:NAV) has rallied a stellar 172% since late March (vs. about 50% for the S&P 500) to its current level of $43. It fell to a low of $15 in late March as a rapid increase in the number Covid-19 cases outside China resulted in heightened fears of an imminent global economic downturn. We see NAV stock declined from levels of around $55 in October 2007 (the pre-crisis peak) to roughly $28 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 45% of its value from its approximate pre-crisis peak. The stock has fully recovered and it now trades 10% above the peak levels it reached in mid-February.
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We believe that the stock is likely to hold on to the gains seen over the recent weeks, though any significant upside from the current levels is unlikely, despite the fact that fears surrounding the pandemic have been reduced and the economic recovery is expected to gather speed. Navistar International stock (NYSE:NAV) has rallied a stellar 172% since late March (vs. about 50% for the S&P 500) to its current level of $43. It fell to a low of $15 in late March as a rapid increase in the number Covid-19 cases outside China resulted in heightened fears of an imminent global economic downturn. The stock has fully recovered and it now trades 10% above the peak levels it reached in mid-February.
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a3b2e03b-9a0c-4911-8107-759785813754
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721646.0
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2020-09-08 00:00:00 UTC
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INSIGHT-Ford's incoming CEO wants the U.S. automaker to run like a Deere
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https://www.nasdaq.com/articles/insight-fords-incoming-ceo-wants-the-u.s.-automaker-to-run-like-a-deere-2020-09-08
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nan
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nan
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By Ben Klayman
DETROIT, Sept 8 (Reuters) - From the moment he was named chief operating officer and heir apparent to the top spot at Ford Motor Co F.N in February, Jim Farley has touted the growth potential of its commercial vehicles.
But it's not just more trucks and vans that Farley wants to sell. As Farley prepares to takes over as chief executive on Oct. 1, he is betting Ford can transform its commercial vehicle business to generate recurring revenue through sales of services that take advantage of the software, data and connectivity in its F-Series pickup truck and Transit vans.
"Think of it as a second F-150," Farley told Reuters, referring to the U.S. automaker's lucrative full-size truck business that generates $50 billion in annual revenue. "We have the F-150 everyone loves. There's this other business out here that's huge."
"Think of the data being more powerful than the fuel economy of the vehicle," he added.
Automakers like Ford have talked for a long time about generating post-sale revenue from connected vehicles, but they have struggled to deliver. As a result, Ford has been abandoned by growth-oriented investors, despite its lucrative F-series franchise.
Ford now is trying to show it can grow, and build a competitive moat around its commercial vehicle business before electric car leader Tesla Inc TSLA.O, other startups and larger technology players like Amazon.com Inc AMZN.O enter those markets.
The U.S. market alone last year accounted for more than $58 billion in sales of commercial trucks and vans, everything from Class-1 regular pickups to Class-7 heavy-duty trucks like the Ford F-750, according to ACT Research.
Farley is counting on a new hire to help build data-generated revenue from Ford's commercial vehicle business: Alex Purdy, former head of agricultural equipment maker Deere & Co's DE.N Silicon Valley office.
At Deere, Purdy led efforts to deliver artificial intelligence (AI) on the farm through smart equipment and founded John Deere Labs to help build a "sticky" relationship with customers. Deere's aftermarket parts and services business accounted for about 15% to 20% of $35 billion in sales last year.
In his first interview since his May hiring to lead Ford's commercial vehicle connectivity business, Purdy said he "helped transition an industrial goods business that thought about metal bending into a service business."
Among the products developed by Deere while Purdy worked there were the ExactEmerge planter that offers improved seed spacing at higher speeds, freeing up workers for other jobs; and the See and Spray distribution system that will use smart cameras to distinguish between healthy and unhealthy crops, allowing for reduced use of herbicides when it's introduced next year.
Purdy, a 35-year-old former investment banker and consultant, grew up on a farm in Okotoks, outside Calgary, Canada, and describes himself as "passionate about smart connected vehicles, automotive, AI."
Ford is the leading commercial vehicle brand in the United States and Europe - with shares of 40% and almost 15%, respectively - thanks to the F-Series trucks as well as its Transit vans.
"Ford is the 900-pound gorilla in the commercial business," said Rhett Ricart, a big Ford commercial vehicle dealer in Columbus, Ohio. "They've always had this competitive advantage."
Earlier this year, Ricart moved into a new 116,000-square-foot commercial truck facility that dwarfs the old 18,000-square-foot building, and said he looks forward to working with Ford as they roll out additional connected services.
Purdy and other Ford officials want Ford's commercial customers to regularly pay for services, creating a revenue stream that flows throughout the vehicle's life, beyond a one-time transaction every few years.
Ford officials talk about products as such geolocation services to optimize route planning and reduce gasoline usage, predictive products that allow for faster oil changes and fleet management operations.
"When you measure time as a commodity like money, there are lots of those kinds of experiences that customers are willing to pay for because they're in the productivity business," Farley said.
The goal for Ford is to lower the total cost of ownership for its commercial customers; raise productivity, such as increased package delivery; and reduce downtime for customer vehicles, said Ted Cannis, head of Ford's North American commercial vehicle business.
"So now the total addressable market, instead of being just new-vehicle sales is the entire process - parts, service, accessories, connected services," he said.
Hans Schep, head of Ford's European commercial vehicle business, said the shift in focus is playing out in meetings on quality. Five years ago, those meetings were about how to reduce Ford's warranty costs, he said. Now, the discussions are about how to keep its customers' vehicles on the road.
Ford's push in commercial vehicles will work hand-in-hand with the push to electrify its vehicles, including the F-150 and Transit.
As part of the efforts, Ford and Germany's Volkswagen AG VOWG_p.DE said in June they would make up to 8 million units of mid-sized pickup trucks and commercial vans over the lifecycle of the vehicles, starting in 2022. Farley believes the automakers' alliance will allow Ford to use their combined scale to build its European commercial vehicle business even more.
(Reporting by Ben Klayman in Detroit, additional reporting by Rajesh Kumar Singh in Chicago Editing by Nick Zieminski)
((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters Messaging: benjamin.klayman.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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By Ben Klayman DETROIT, Sept 8 (Reuters) - From the moment he was named chief operating officer and heir apparent to the top spot at Ford Motor Co F.N in February, Jim Farley has touted the growth potential of its commercial vehicles. Farley is counting on a new hire to help build data-generated revenue from Ford's commercial vehicle business: Alex Purdy, former head of agricultural equipment maker Deere & Co's DE.N Silicon Valley office. Among the products developed by Deere while Purdy worked there were the ExactEmerge planter that offers improved seed spacing at higher speeds, freeing up workers for other jobs; and the See and Spray distribution system that will use smart cameras to distinguish between healthy and unhealthy crops, allowing for reduced use of herbicides when it's introduced next year.
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Farley is counting on a new hire to help build data-generated revenue from Ford's commercial vehicle business: Alex Purdy, former head of agricultural equipment maker Deere & Co's DE.N Silicon Valley office. By Ben Klayman DETROIT, Sept 8 (Reuters) - From the moment he was named chief operating officer and heir apparent to the top spot at Ford Motor Co F.N in February, Jim Farley has touted the growth potential of its commercial vehicles. "Think of the data being more powerful than the fuel economy of the vehicle," he added.
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The goal for Ford is to lower the total cost of ownership for its commercial customers; raise productivity, such as increased package delivery; and reduce downtime for customer vehicles, said Ted Cannis, head of Ford's North American commercial vehicle business. By Ben Klayman DETROIT, Sept 8 (Reuters) - From the moment he was named chief operating officer and heir apparent to the top spot at Ford Motor Co F.N in February, Jim Farley has touted the growth potential of its commercial vehicles. "Think of the data being more powerful than the fuel economy of the vehicle," he added.
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By Ben Klayman DETROIT, Sept 8 (Reuters) - From the moment he was named chief operating officer and heir apparent to the top spot at Ford Motor Co F.N in February, Jim Farley has touted the growth potential of its commercial vehicles. "Think of the data being more powerful than the fuel economy of the vehicle," he added. Automakers like Ford have talked for a long time about generating post-sale revenue from connected vehicles, but they have struggled to deliver.
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6ded6603-b8ad-43ad-b38a-019ecb2714ba
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721647.0
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2020-09-05 00:00:00 UTC
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Why Deere Stock Remains a Buy
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https://www.nasdaq.com/articles/why-deere-stock-remains-a-buy-2020-09-05
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nan
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It's hard to describe Deere's (NYSE: DE) recent third-quarter earnings report as anything less than a "blowout." The company exceeded external and internal expectations, and the underlying development of the business suggests that the stock remains attractively priced. Let's take a look at why Deere stock remains a good value, even after rising 21% so far this year.
What happened in the quarter
The best way to see how strong the quarter was is by looking at how management adjusted its full-year revenue and earnings guidance. As you can see in the table below, there was a significant improvement in both segments' full-year revenue outlooks. As such, the agriculture and turf segment outlook is now reaching the low point of the guidance given in November -- a great result given the impact of the coronavirus pandemic on the economy.
Deere's precision agriculture technology is helping farmers be more productive. Image source: Getty Images.
In addition, the outlook for construction and forestry is better, due to what Deere's manager of investor communications, Brent Norwood, described as a "modest improvement" in the construction equipment segment and "strong" performance in road building.
METRIC
FULL-YEAR GUIDANCE, CURRENT
FULL-YEAR GUIDANCE, IN MAY 2020
FULL-YEAR GUIDANCE, IN FEBRUARY 2020
FULL-YEAR GUIDANCE, IN NOVEMBER 2019
Agriculture and turf sales growth/(decrease)
(10%)
(15%) to (10%)
(10%) to (5%)
(10%) to (5%)
Construction and forestry sales growth/(decrease)
(25%)
(40%) to (30%)
(15%) to (10%)
(15%) to (10%)
Net income
$2.25 billion
$1.6 billion to $2 billion
$2.7 billion to $3.1 billion
$2.7 billion to $3.1 billion
Net operating cash flow
$2.8 billion
$1.9 billion to $2.3 billion
$3.1 billion to $3.5 billion
$3.1 billion to $3.5 billion
Data source: Deere presentations.
Of course, revenue is only one part of the story; it's also necessary to improve profit margin on sales. Here again, Deere did not disappoint. In fact, the margin performance in the agriculture and turf segment in the quarter was nothing short of outstanding. The agriculture and turf segment's operating profit expanded significantly even as revenue declined, with margin improvement coming down to a combination of pricing improvement and cost-cutting measures.
In fact, the company's overall pricing improvement of 4% is hugely impressive given the current environment, where farmer sentiment toward spending remains weak.
EQUIPMENT SEGMENT
Q3 OPERATING PROFIT
YOY CHANGE
Q3 REVENUE
YOY CHANGE
MARGIN
YOY CHANGE
Agriculture and turf
$942 million
54%
$5,642 million
(5%)
16.6%
630 bp
Construction and forestry
$205 million
(46%)
$2,187 million
(28%)
9.4%
(310 bp)
Data source: Deere presentations. YOY = year over year. bp = basis point; 100 basis points equals 1%.
Is Deere stock a good value?
Deere is a cyclical stock, so its valuation tends to peak as its revenue hits a trough. This is perfectly rational as the market is starting to price in an upturn at the revenue trough. Similarly, Deere's valuation tends to bottom just as its cyclical revenue peaks. You can see this relationship in the chart below.
EV = enterprise value (market cap plus net debt). EBITDA = earnings before interest, taxation, depreciation, and amortization. Data by YCharts
Turning to expectations for 2020 and beyond, Wall Street analysts are expecting 2020 to mark a mini-trough in sales and earnings, with Deere's EV/EBITDA valuation hitting nearly 20. That's pretty much consistent with where Deere has traded at during previous revenue troughs in recent times.
METRIC
2019
2020 EST.
2021 EST.
2022 EST.
Net sales
$34,886 million
$30,635 million
$33,199 million
$35,047 million
EV/EBITDA
17.7
19.7
16
15.4
Data source: Deere presentations.
There are reasons to believe Deere's sales and margin could expand on a multiyear basis:
Take-up rates of its precision agriculture sales have been very strong, and this is showing up in improvements in pricing.
The construction and forestry segment will surely recover from a COVID-19-induced slump, particularly as the housing market appears to be strengthening.
Management continues to believe that an aging U.S. farm equipment fleet will bring about a replacement demand cycle when sentiment improves.
Overall farmer sentiment in North America should improve in the coming years with a combination of a recovery from the initial impact of the trade conflict with China and the eventual receding of the coronavirus pandemic.
All told, Deere's execution has been very strong in 2020 and its end markets look likely to recover in the coming years. The stock isn't expensive on a historical valuation perspective, and provided there isn't another external shock to its revenue growth prospects, the stock remains a good long-term value option for investors.
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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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The company exceeded external and internal expectations, and the underlying development of the business suggests that the stock remains attractively priced. As such, the agriculture and turf segment outlook is now reaching the low point of the guidance given in November -- a great result given the impact of the coronavirus pandemic on the economy. Overall farmer sentiment in North America should improve in the coming years with a combination of a recovery from the initial impact of the trade conflict with China and the eventual receding of the coronavirus pandemic.
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Agriculture and turf sales growth/(decrease) (10%) (15%) to (10%) (10%) to (5%) (10%) to (5%) Construction and forestry sales growth/(decrease) (25%) (40%) to (30%) (15%) to (10%) (15%) to (10%) Net income $2.25 billion $1.6 billion to $2 billion $2.7 billion to $3.1 billion $2.7 billion to $3.1 billion Net operating cash flow $2.8 billion $1.9 billion to $2.3 billion $3.1 billion to $3.5 billion $3.1 billion to $3.5 billion Data source: Deere presentations. The agriculture and turf segment's operating profit expanded significantly even as revenue declined, with margin improvement coming down to a combination of pricing improvement and cost-cutting measures. Agriculture and turf $942 million 54% $5,642 million (5%) 16.6% 630 bp Construction and forestry $205 million (46%) $2,187 million (28%) 9.4% (310 bp) Data source: Deere presentations.
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Agriculture and turf sales growth/(decrease) (10%) (15%) to (10%) (10%) to (5%) (10%) to (5%) Construction and forestry sales growth/(decrease) (25%) (40%) to (30%) (15%) to (10%) (15%) to (10%) Net income $2.25 billion $1.6 billion to $2 billion $2.7 billion to $3.1 billion $2.7 billion to $3.1 billion Net operating cash flow $2.8 billion $1.9 billion to $2.3 billion $3.1 billion to $3.5 billion $3.1 billion to $3.5 billion Data source: Deere presentations. Agriculture and turf $942 million 54% $5,642 million (5%) 16.6% 630 bp Construction and forestry $205 million (46%) $2,187 million (28%) 9.4% (310 bp) Data source: Deere presentations. There are reasons to believe Deere's sales and margin could expand on a multiyear basis: Take-up rates of its precision agriculture sales have been very strong, and this is showing up in improvements in pricing.
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Is Deere stock a good value? Deere is a cyclical stock, so its valuation tends to peak as its revenue hits a trough. It's hard to describe Deere's (NYSE: DE) recent third-quarter earnings report as anything less than a "blowout."
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018c5afa-49a2-4ab7-9bcb-e9a1a6043075
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721648.0
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2020-09-01 00:00:00 UTC
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Despite 90% Move Deere Stock Has More Room To Grow
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DE
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https://www.nasdaq.com/articles/despite-90-move-deere-stock-has-more-room-to-grow-2020-09-01
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Despite a 90% rise since the March 23 lows of this year, at the current price of around $210 per share we believe Deere & Company’s stock (NYSE: DE) looks attractive and it has more room for growth. DE stock has moved from $111 to $210 off the recent bottom compared to the S&P which moved 55%, with the resumption of economic activities as lockdowns are gradually lifted. DE stock has not only fully recovered to the levels it was at before the drop in February due to the coronavirus outbreak becoming a pandemic, it is now trading at 19% above the pre-crisis levels. Furthermore, DE stock is also up 40% from levels seen in early 2018.
Some of the 40% rise of the last 2 years is justified by the roughly 32% growth seen in Deere’s revenues from 2017 to 2019. Also, the company managed to expand its Net Margins by 14% from 7.3% to 8.3%, which translated into a 52% growth in earnings. However, its P/E Multiple has contracted. We believe the stock is likely to see more upside despite the recent uptick and the potential weakness from a recession driven by the Covid outbreak. Our dashboard, ‘What Factors Drove 40% Change in Deere Stock between 2017 and now?‘, has the underlying numbers.
Deere’s P/E multiple changed from 22x in 2017 to 17x in 2019. While the company’s P/E is 20x now, there is a potential upside when the current P/E is compared to levels seen in the past years, P/E of 22x at the end of 2017.
So what’s the likely trigger and timing for further upside?
The global spread of Coronavirus has meant a decline in economic growth, and the construction sector in particular has been one of the worst hit sectors. Deere’s equipment is designed to cater to two primary sectors – Agriculture and Construction. Given the decline in overall construction, the company saw a 27% plunge in segment sales, while Agriculture & Turf segment fared better with a sales decline of a mere 4% in Q3 fiscal 2020 (fiscal ends in October). The company’s management in its latest quarterlyearnings conference callprovided a guidance of a 10% decline in Agriculture & Turf and a 25% decline for Construction & Forestry segment in the current fiscal year.
However, the decline in 2020 sales is more or less expected for several businesses, including Deere, and it is likely priced in the stock as well. Investors are willing to look at earnings growth beyond 2020, and Deere appears to be well positioned to post steady earnings growth. The company’s planned production has resulted in a lower inventory position, which should bode well for 2021, especially given that the farm equipment fleet continues to age.
Deere’s focus on precision agriculture provides an edge over competitors. There are several variables involved in farming, including weather, soil, seed placement, and fertilizers to name a few. Deere’s equipment provides data-driven technology helping the farmers to collect data across multiple variables and maximize crop yield. While the US is gaining on precision farming, the scope is much higher globally. Roughly 30% to 50% of farms with yields over 180 bushels per acre adopt to precision farming. The number drops to 17% for farms with yields under 140 bushels per acre (data published in 2018).
Overall, we believe that Deere will likely see steady revenue and earnings growth over the coming years, and the stock trading at just 20x its trailing earnings, and 20x its fiscal 2021 expected earnings appears to be an attractive level for investors wiling to invest for the long-term.
Looking at the broader economy, over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations. Following the Fed stimulus — which set a floor on fear — the market has been willing to “look through” the current weak period and take a longer-term view. With investors focusing their attention on 2021 results, the valuations become important in finding value. Though market sentiment can be fickle, and evidence of a sustained uptick in new cases could spook investors once again.
What if you’re looking for a more balanced portfolio instead? Here’s a top quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.
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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Despite a 90% rise since the March 23 lows of this year, at the current price of around $210 per share we believe Deere & Company’s stock (NYSE: DE) looks attractive and it has more room for growth. The company’s planned production has resulted in a lower inventory position, which should bode well for 2021, especially given that the farm equipment fleet continues to age. Deere’s equipment provides data-driven technology helping the farmers to collect data across multiple variables and maximize crop yield.
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The company’s management in its latest quarterlyearnings conference callprovided a guidance of a 10% decline in Agriculture & Turf and a 25% decline for Construction & Forestry segment in the current fiscal year. Investors are willing to look at earnings growth beyond 2020, and Deere appears to be well positioned to post steady earnings growth. Overall, we believe that Deere will likely see steady revenue and earnings growth over the coming years, and the stock trading at just 20x its trailing earnings, and 20x its fiscal 2021 expected earnings appears to be an attractive level for investors wiling to invest for the long-term.
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Despite a 90% rise since the March 23 lows of this year, at the current price of around $210 per share we believe Deere & Company’s stock (NYSE: DE) looks attractive and it has more room for growth. Investors are willing to look at earnings growth beyond 2020, and Deere appears to be well positioned to post steady earnings growth. Overall, we believe that Deere will likely see steady revenue and earnings growth over the coming years, and the stock trading at just 20x its trailing earnings, and 20x its fiscal 2021 expected earnings appears to be an attractive level for investors wiling to invest for the long-term.
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While the company’s P/E is 20x now, there is a potential upside when the current P/E is compared to levels seen in the past years, P/E of 22x at the end of 2017. Overall, we believe that Deere will likely see steady revenue and earnings growth over the coming years, and the stock trading at just 20x its trailing earnings, and 20x its fiscal 2021 expected earnings appears to be an attractive level for investors wiling to invest for the long-term. Despite a 90% rise since the March 23 lows of this year, at the current price of around $210 per share we believe Deere & Company’s stock (NYSE: DE) looks attractive and it has more room for growth.
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2fdafcb4-6ea0-4ebf-a008-83d7383227a6
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721649.0
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2020-08-27 00:00:00 UTC
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Notable Thursday Option Activity: MS, DE, SWKS
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-ms-de-swks-2020-08-27
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nan
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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 Morgan Stanley (Symbol: MS), where a total of 33,828 contracts have traded so far, representing approximately 3.4 million underlying shares. That amounts to about 46.3% of MS's average daily trading volume over the past month of 7.3 million shares. Especially high volume was seen for the $55 strike call option expiring October 16, 2020, with 5,561 contracts trading so far today, representing approximately 556,100 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $55 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 8,131 contracts thus far today. That number of contracts represents approximately 813,100 underlying shares, working out to a sizeable 45.5% of DE's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $190 strike put option expiring September 18, 2020, with 451 contracts trading so far today, representing approximately 45,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $190 strike highlighted in orange:
And Skyworks Solutions Inc (Symbol: SWKS) options are showing a volume of 7,448 contracts thus far today. That number of contracts represents approximately 744,800 underlying shares, working out to a sizeable 45.1% of SWKS's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $120 strike put option expiring August 28, 2020, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of SWKS. Below is a chart showing SWKS's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for MS options, DE options, or SWKS 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 $55 strike call option expiring October 16, 2020, with 5,561 contracts trading so far today, representing approximately 556,100 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $55 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,131 contracts thus far today. Particularly high volume was seen for the $190 strike put option expiring September 18, 2020, with 451 contracts trading so far today, representing approximately 45,100 underlying shares of DE. Particularly high volume was seen for the $120 strike put option expiring August 28, 2020, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of SWKS.
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Especially high volume was seen for the $55 strike call option expiring October 16, 2020, with 5,561 contracts trading so far today, representing approximately 556,100 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $55 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,131 contracts thus far today. That number of contracts represents approximately 813,100 underlying shares, working out to a sizeable 45.5% of DE's average daily trading volume over the past month, of 1.8 million shares. That number of contracts represents approximately 744,800 underlying shares, working out to a sizeable 45.1% of SWKS's average daily trading volume over the past month, of 1.7 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Morgan Stanley (Symbol: MS), where a total of 33,828 contracts have traded so far, representing approximately 3.4 million underlying shares. Especially high volume was seen for the $55 strike call option expiring October 16, 2020, with 5,561 contracts trading so far today, representing approximately 556,100 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $55 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,131 contracts thus far today. Particularly high volume was seen for the $120 strike put option expiring August 28, 2020, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of SWKS.
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Especially high volume was seen for the $55 strike call option expiring October 16, 2020, with 5,561 contracts trading so far today, representing approximately 556,100 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $55 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,131 contracts thus far today. That number of contracts represents approximately 744,800 underlying shares, working out to a sizeable 45.1% of SWKS's average daily trading volume over the past month, of 1.7 million shares. Below is a chart showing SWKS's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for MS options, DE options, or SWKS options, visit StockOptionsChannel.com.
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dd301809-2c90-4e2b-90fb-8b012e5fef2b
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721650.0
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2020-08-27 00:00:00 UTC
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Daily Dividend Report: CIBC,WSM,DE,TD,KRC
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DE
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https://www.nasdaq.com/articles/daily-dividend-report%3A-cibcwsmdetdkrc-2020-08-27
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nan
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nan
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CIBC announced today that its Board of Directors declared a dividend of $1.46 per share on common shares for the quarter ending October 31, 2020 payable on October 28, 2020 to shareholders of record at the close of business on September 28, 2020.
Williams-Sonoma announced today that its Board of Directors has declared a quarterly cash dividend of $0.48 per common share. The dividend is payable on November 27, 2020 to stockholders of record as of the close of business on October 23, 2020. As of August 2, 2020, the Company had 77,796,399 shares of common stock outstanding.
The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable November 9, 2020, to stockholders of record on September 30, 2020.
The Toronto-Dominion Bank today announced that a dividend in an amount of seventy-nine cents per fully paid common share in the capital stock of the Bank has been declared for the quarter ending October 31, 2020, payable on and after October 31, 2020, to shareholders of record at the close of business on October 9, 2020.
Kilroy Realty announced today that its board of directors declared a regular quarterly cash dividend of $0.50 per common share payable on October 14, 2020 to stockholders of record on September 30, 2020. The dividend is equivalent to an annual rate of $2.00 per share and is a 3.1% increase from the previous annualized dividend level of $1.94 per share.
VIDEO: Daily Dividend Report: CIBC,WSM,DE,TD,KRC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Williams-Sonoma announced today that its Board of Directors has declared a quarterly cash dividend of $0.48 per common share. The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable November 9, 2020, to stockholders of record on September 30, 2020. Kilroy Realty announced today that its board of directors declared a regular quarterly cash dividend of $0.50 per common share payable on October 14, 2020 to stockholders of record on September 30, 2020.
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CIBC announced today that its Board of Directors declared a dividend of $1.46 per share on common shares for the quarter ending October 31, 2020 payable on October 28, 2020 to shareholders of record at the close of business on September 28, 2020. The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable November 9, 2020, to stockholders of record on September 30, 2020. Kilroy Realty announced today that its board of directors declared a regular quarterly cash dividend of $0.50 per common share payable on October 14, 2020 to stockholders of record on September 30, 2020.
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CIBC announced today that its Board of Directors declared a dividend of $1.46 per share on common shares for the quarter ending October 31, 2020 payable on October 28, 2020 to shareholders of record at the close of business on September 28, 2020. The Toronto-Dominion Bank today announced that a dividend in an amount of seventy-nine cents per fully paid common share in the capital stock of the Bank has been declared for the quarter ending October 31, 2020, payable on and after October 31, 2020, to shareholders of record at the close of business on October 9, 2020. Kilroy Realty announced today that its board of directors declared a regular quarterly cash dividend of $0.50 per common share payable on October 14, 2020 to stockholders of record on September 30, 2020.
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CIBC announced today that its Board of Directors declared a dividend of $1.46 per share on common shares for the quarter ending October 31, 2020 payable on October 28, 2020 to shareholders of record at the close of business on September 28, 2020. Kilroy Realty announced today that its board of directors declared a regular quarterly cash dividend of $0.50 per common share payable on October 14, 2020 to stockholders of record on September 30, 2020. Williams-Sonoma announced today that its Board of Directors has declared a quarterly cash dividend of $0.48 per common share.
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faf08a07-145f-4475-adc7-1949f694bbac
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721651.0
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2020-08-25 00:00:00 UTC
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3 Reasons Deere's Stock Is Hitting All-Time Highs
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DE
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https://www.nasdaq.com/articles/3-reasons-deeres-stock-is-hitting-all-time-highs-2020-08-25
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nan
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nan
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Perhaps even veteran observers of agriculture and construction equipment manufacturer Deere (NYSE: DE) have been surprised at the company's share performance this year. Despite a contraction in global gross domestic product -- the World Bank estimates that global GDP will decrease 5% in 2020 -- Deere's stock has raced ahead by 18% so far this year, consistently setting new all-time highs. What's fueling the current confidence in such an economically sensitive, cyclical stock?
The company's fiscal third-quarter 2020 earnings, issued on Aug. 21, provide plenty of clues. Let's look at three details from the release that clarify why the market is reluctant to bet against Deere.
1. Strength in agricultural products
Deere's agriculture and turf segment, which makes up just under two-thirds of total company revenue, experienced a year-over-year sales decline of 4.6% in the third quarter, and through the first nine months of fiscal 2020, sales have decreased 10% to $16.1 billion. In last week's report, management chalked in an expected full-year sales dip of 10% in the agricultural segment. This cheered investors because it's an improvement over the range provided in the second quarter of a 10%-15% decline.
The revised outlook is also impressive because it essentially falls within Deere's original estimate of a 5%-10% sales retracement in the agriculture division this year -- a forecast that was initiated before the COVID-19 pandemic.
The agricultural business has avoided a steep decline so far this year because of pricing power that has partially offset lower volumes. The segment has also received a boost from higher retail sales of small tractors and mowers, as demand from home and property owners has soared during the pandemic.
The company anticipates that demand for retrofit solutions and replacement needs for an aging global farm fleet will assist equipment volumes in 2021. In addition, Deere continues to see rising uptake of its precision agriculture solutions. In the third-quarterearnings conference call management cited strong results in its early order program for next year's tech-enabled planners and sprayers as an indication of high interest in yield-enhancing equipment.
Image source: Getty Images.
2. A rebounding bottom line
In tandem with a healthier agricultural outlook, Deere's total net income outlook has improved as it heads into the last quarter of the fiscal year. In its earnings release, the organization advised investors to expect net income to land at $2.25 billion in fiscal 2020. This is a significantly rosier picture than the $1.6 billion to $2.0 billion projection issued in the second quarter.
There are several factors driving the healthier outlook and the market's sentiment. First, the organization has kept a tight lid on operating expenses during the pandemic. Research-and-development and general and administrative expenses have both declined in the first three quarters of the year -- total operating expenses are tracking roughly 3.5% below the prior-year period.
Deere has also held its cost of sales steady despite a weaker top line. Gross margin on equipment sales has improved by a small but significant 50 basis points through the first nine months of the fiscal year, to just under 24%.
Investors are additionally taking care to view certain operating expenses in context. For example, the company has recorded $138 million in costs related to a voluntary employee severance program offered to employees in the first quarter of 2020. But Deere expects to realize $85 million in ongoing annual savings from this program, including $65 million in savings that will be realized by the end of this year.
In another example, the manufacturer has booked significant but reasonable provisions against expected credit losses in its financing arm this year, suggesting that COVID-19-related charge-offs on financed equipment will be relatively minor. To date in 2020, Deere has recorded a total provision of $123 million to cover near-term anticipated credit losses. While more than double the $58 million loss provision recorded during the same period last year, this still counts as only a fraction of the company's $33.3 billion in finance receivables.
3. Managing a vital asset
Perhaps the biggest clue that the blue-chip multinational can capitalize on renewed earnings momentum in 2021 derives from its handling of an extremely important asset -- inventory. Deere has responded to the pandemic by curbing equipment and machinery production. This tactic reduces inventory carrying costs, keeps the balance sheet from ballooning during an unfavorable selling environment, and improves cash flow.
During the third-quarterearnings call management relayed that it's right-sizing field inventory within the agriculture and construction divisions to current sales levels. This has been a theme all year, but in the company's latest report, inventory dropped by nearly 10% over the prior-year quarter to $5.65 billion. This number also marks Deere's lowest third-quarter inventory level since 2017. Keeping a slimmer equipment line-up now will enable the company to respond flexibly to emerging high-demand product lines as the global economy recovers. And the discipline Deere is displaying in 2020 is likely to pay off in the form of enhanced profitability as early as next year.
10 stocks we like better than Deere & Company
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Asit Sharma 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 revised outlook is also impressive because it essentially falls within Deere's original estimate of a 5%-10% sales retracement in the agriculture division this year -- a forecast that was initiated before the COVID-19 pandemic. In the third-quarterearnings conference call management cited strong results in its early order program for next year's tech-enabled planners and sprayers as an indication of high interest in yield-enhancing equipment. Keeping a slimmer equipment line-up now will enable the company to respond flexibly to emerging high-demand product lines as the global economy recovers.
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The company's fiscal third-quarter 2020 earnings, issued on Aug. 21, provide plenty of clues. A rebounding bottom line In tandem with a healthier agricultural outlook, Deere's total net income outlook has improved as it heads into the last quarter of the fiscal year. Perhaps even veteran observers of agriculture and construction equipment manufacturer Deere (NYSE: DE) have been surprised at the company's share performance this year.
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Strength in agricultural products Deere's agriculture and turf segment, which makes up just under two-thirds of total company revenue, experienced a year-over-year sales decline of 4.6% in the third quarter, and through the first nine months of fiscal 2020, sales have decreased 10% to $16.1 billion. A rebounding bottom line In tandem with a healthier agricultural outlook, Deere's total net income outlook has improved as it heads into the last quarter of the fiscal year. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Strength in agricultural products Deere's agriculture and turf segment, which makes up just under two-thirds of total company revenue, experienced a year-over-year sales decline of 4.6% in the third quarter, and through the first nine months of fiscal 2020, sales have decreased 10% to $16.1 billion. Keeping a slimmer equipment line-up now will enable the company to respond flexibly to emerging high-demand product lines as the global economy recovers. Perhaps even veteran observers of agriculture and construction equipment manufacturer Deere (NYSE: DE) have been surprised at the company's share performance this year.
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b9400035-00ad-48f7-83dd-5cbaad355be4
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721652.0
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2020-08-24 00:00:00 UTC
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Deere Reaches Analyst Target Price
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DE
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https://www.nasdaq.com/articles/deere-reaches-analyst-target-price-2020-08-24
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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 $191.17, changing hands for $199.50/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 12 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 $160.00. And then on the other side of the spectrum one analyst has a target as high as $235.00. The standard deviation is $19.646.
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 $191.17/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $191.17 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: 6 7 5 4
Buy ratings: 1 1 1 1
Hold ratings: 4 4 7 8
Sell ratings: 0 0 0 0
Strong sell ratings: 1 0 0 0
Average rating: 2.04 1.71 2.12 2.27
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.
The Top 25 Broker Analyst Picks 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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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $191.17, changing hands for $199.50/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 $191.17/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $191.17 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 $191.17, changing hands for $199.50/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 $191.17/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $191.17 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 $191.17, changing hands for $199.50/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 12 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 $235.00.
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c23771c3-8f0c-4bcd-901f-b39a89a62e35
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721653.0
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2020-08-21 00:00:00 UTC
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S&P 500, Nasdaq end at records after upbeat business surveys
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DE
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https://www.nasdaq.com/articles/sp-500-nasdaq-end-at-records-after-upbeat-business-surveys-2020-08-21-0
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nan
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nan
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By Noel Randewich
Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, with both lifted by Apple after data pointed to some pockets of strength in the U.S. economy.
U.S. business activity snapped back to the highest since early 2019 in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders.
Another report showed U.S. home sales rose at a record pace for a second straight month in July and home prices hit all-time highs.
The unexpectedly sharp increases in Markit's indexes extend a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession.
"It's not surprising to see a pickup in manufacturing as the economy has started to reopen, even though pockets of the country have pulled back on their reopenings," said Lindsey Bell, chief investment strategist at Ally Invest. "It’s an encouraging sign and it supports the upside we have seen in the markets."
Apple Inc AAPL.O rallied over 5% as its market value continued to swell after the most valuable publicly listed company in the world crossed the $2 trillion milestone this week. The iPhone maker boosted the S&P 500 and Nasdaq more than any other company on Friday.
Bets that technology-focused companies including Apple and Amazon.com AMZN.O will emerge stronger from the pandemic set the S&P 500 and the Nasdaq on track to close out the week higher.
On Tuesday, the S&P 500 recouped all its losses caused by the coronavirus-driven slump and joined the Nasdaq in scaling new peaks. The Dow is still 6% below its all-time high in February.
Investors also worry about a stalemate in talks between House Democrats and the White House over the next coronavirus aid bill as about 28 million Americans continued to collect unemployment checks.
The Dow Jones Industrial Average .DJI rose 0.69% to end at 27,930.33 points, while the S&P 500 .SPX gained 0.34% to 3,397.16.
The Nasdaq Composite .IXIC climbed 0.42% to 11,311.80.
For the week, the Dow was near unchanged, the S&P 500 rose 0.7% and the Nasdaq added 2.7%.
"There is a cult of buying out there and selling is considered a fool's errand. That's a very temporary condition," warned Mike Zigmont, head of trading and research at Harvest Volatility Management in New York.
During Friday's session, the S&P 500 information technology index .SPLRCT jumped 1.2% and industrials .SPLRCI rose 0.35%. The two were the strongest sectors.
Tesla TSLA.O jumped 2.4% after surging past the $2,000 a share mark on Thursday for the first time, extending its rally ahead of an upcoming share split.
Deere & Co DE.N rose 4.4% after the world's largest farm equipment maker raised its full-year earnings forecast.
On U.S. exchanges, 8.4 billion shares changed hands, compared with the 9.6 billion average for the last 20 sessions.
Declining issues outnumbered advancing ones on the NYSE by a 1.88-to-1 ratio; on Nasdaq, a 2.04-to-1 ratio favored decliners.
The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 30 new lows.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Cynthia Osterman)
((noel.randewich@tr.com; (415) 677 2542; Reuters Messaging: Twitter: @randewich))
The views and 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 Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, with both lifted by Apple after data pointed to some pockets of strength in the U.S. economy. U.S. business activity snapped back to the highest since early 2019 in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders. Bets that technology-focused companies including Apple and Amazon.com AMZN.O will emerge stronger from the pandemic set the S&P 500 and the Nasdaq on track to close out the week higher.
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By Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, with both lifted by Apple after data pointed to some pockets of strength in the U.S. economy. The unexpectedly sharp increases in Markit's indexes extend a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession. The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 30 new lows.
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By Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, with both lifted by Apple after data pointed to some pockets of strength in the U.S. economy. Bets that technology-focused companies including Apple and Amazon.com AMZN.O will emerge stronger from the pandemic set the S&P 500 and the Nasdaq on track to close out the week higher. The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 30 new lows.
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Bets that technology-focused companies including Apple and Amazon.com AMZN.O will emerge stronger from the pandemic set the S&P 500 and the Nasdaq on track to close out the week higher. The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 30 new lows. By Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, with both lifted by Apple after data pointed to some pockets of strength in the U.S. economy.
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3d2167ec-0a1c-40f0-b484-e9d86f6cbcc3
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721654.0
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2020-08-21 00:00:00 UTC
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S&P 500, Nasdaq end at records after upbeat business surveys
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DE
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https://www.nasdaq.com/articles/sp-500-nasdaq-end-at-records-after-upbeat-business-surveys-2020-08-21
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nan
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nan
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By Noel Randewich
Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, as data pointed to some pockets of strength in the U.S. economy.
U.S. business activity snapped back to the highest since early 2019 in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders.
Another report showed U.S. home sales rose at a record pace for a second straight month in July and home prices hit all-time highs.
The unexpectedly sharp increases in Markit's indexes extend a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession.
"It's not surprising to see a pickup in manufacturing as the economy has started to reopen, even though pockets of the country have pulled back on their reopenings," said Lindsey Bell, chief investment strategist at Ally Invest. "It’s an encouraging sign and it supports the upside we have seen in the markets."
Bets that technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O will emerge stronger from the pandemic have set the S&P 500 and the Nasdaq on track to close out the week higher.
On Tuesday, the S&P 500 recouped all its losses caused by the coronavirus-driven slump and joined the Nasdaq in scaling new peaks. The Dow is still 6% below its all-time high in February.
Investors also worry about a stalemate in talks between House Democrats and the White House over the next coronavirus aid bill as about 28 million Americans continued to collect unemployment checks.
Unofficially, the Dow Jones Industrial Average .DJI rose 191.05 points, or 0.69%, to 27,930.78, the S&P 500 .SPX gained 11.73 points, or 0.35%, to 3,397.24 and the Nasdaq Composite .IXIC added 46.85 points, or 0.42%, to 11,311.80.
The S&P 500 information technology .SPLRCT and industrial indexes .SPLRCI were among the strongest.
Apple Inc AAPL.O rose 4% as its market value continued to swell after the most valuable publicly listed company in the world crossed the $2 trillion milestone this week.
Tesla TSLA.O jumped again after surging past the $2,000 a share mark on Thursday for the first time, extending its rally ahead of an upcoming share split.
Deere & Co DE.N rose after the world's largest farm equipment maker raised its full-year earnings forecast.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Cynthia Osterman)
((noel.randewich@tr.com; (415) 677 2542; Reuters Messaging: Twitter: @randewich))
The views and 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 Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, as data pointed to some pockets of strength in the U.S. economy. U.S. business activity snapped back to the highest since early 2019 in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders. Bets that technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O will emerge stronger from the pandemic have set the S&P 500 and the Nasdaq on track to close out the week higher.
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By Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, as data pointed to some pockets of strength in the U.S. economy. The unexpectedly sharp increases in Markit's indexes extend a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession. Bets that technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O will emerge stronger from the pandemic have set the S&P 500 and the Nasdaq on track to close out the week higher.
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By Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, as data pointed to some pockets of strength in the U.S. economy. The unexpectedly sharp increases in Markit's indexes extend a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession. Unofficially, the Dow Jones Industrial Average .DJI rose 191.05 points, or 0.69%, to 27,930.78, the S&P 500 .SPX gained 11.73 points, or 0.35%, to 3,397.24 and the Nasdaq Composite .IXIC added 46.85 points, or 0.42%, to 11,311.80.
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Bets that technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O will emerge stronger from the pandemic have set the S&P 500 and the Nasdaq on track to close out the week higher. Unofficially, the Dow Jones Industrial Average .DJI rose 191.05 points, or 0.69%, to 27,930.78, the S&P 500 .SPX gained 11.73 points, or 0.35%, to 3,397.24 and the Nasdaq Composite .IXIC added 46.85 points, or 0.42%, to 11,311.80. By Noel Randewich Aug 21 (Reuters) - The S&P 500 and Nasdaq closed at record highs on Friday, as data pointed to some pockets of strength in the U.S. economy.
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423d77e2-d402-42eb-bf96-b58d08f83200
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721655.0
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2020-08-21 00:00:00 UTC
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Wall Street drifts higher after upbeat U.S. business surveys
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https://www.nasdaq.com/articles/wall-street-drifts-higher-after-upbeat-u.s.-business-surveys-2020-08-21-0
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
Deere results boost S&P industrials index
Apple rises for fourth day in a row
U.S. existing home sales hit 14-year high in July
U.S. business activity surges to early 2019 levels
Indexes up: Dow 0.30%, S&P 0.11%, Nasdaq 0.32%
Updates to early afternoon
By Medha Singh and Sruthi Shankar
Aug 21 (Reuters) - Wall Street's main indexes inched higher on Friday, with the tech-heavy Nasdaq on track for another record close, as the latest data pointed to some pockets of strength in the U.S. economy.
Business activity snapped back to the highest since early 2019 in the United States in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders.
Another report showed U.S. home sales rose at a record pace for a second straight month in July and home prices hit all-time highs.
The unexpectedly sharp increases in Markit's indexes continue a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession.
Nonetheless, bets on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the economic uncertainty have set the S&P 500 and the Nasdaq on track to close out the week higher.
"The uncertainty and choppiness are driving people back to some of the more traditional trades that have stayed immune through the course of the pandemic," said Mike Stritch, chief investment officer at BMO Wealth Management in Chicago.
On Tuesday, the S&P 500 recouped all its losses caused by the coronavirus-driven slump and joined the Nasdaq in scaling new peaks. The Dow is still 6% below its all-time high in February.
Investors also worry about a stalemate in talks between House Democrats and the White House over the next coronavirus aid bill as about 28 million Americans continued to collect unemployment checks.
"The market will move higher, but it will be very slow and irregular one, at least until there's a vaccine," said Chuck Lieberman, chief investment officer at Advisors Capital Management.
At 12:41 p.m. ET, the Dow Jones Industrial Average .DJI was up 83.00 points, or 0.30%, at 27,822.73 and the S&P 500 .SPX was up 3.59 points, or 0.11%, at 3,389.10. The Nasdaq Composite .IXIC was up 35.75 points, or 0.32%, at 11,300.71.
Technology .SPLRCT, consumer discretionary .SPLRCD and industrials .SPLRCI were the only major S&P sectors in positive territory.
Apple Inc AAPL.O gained 4% as its market value continued to swell after the most valuable publicly listed company in the world crossed the $2 trillion milestone this week.
Tesla shares TSLA.O also added another 4.1% after surging past the $2,000 mark on Thursday for the first time and extending its rally ahead of an upcoming share split.
Deere & Co DE.N rose 5.4% after the world's largest farm equipment maker raised its full-year earnings forecast.
Declining issues outnumbered advancers for a 2.38-to-1 ratio on the NYSE and for a 2.35-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and no new low, while the Nasdaq recorded 43 new highs and 26 new lows.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Maju Samuel and Anil D'Silva)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; 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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Business activity snapped back to the highest since early 2019 in the United States in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders. Nonetheless, bets on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the economic uncertainty have set the S&P 500 and the Nasdaq on track to close out the week higher. "The uncertainty and choppiness are driving people back to some of the more traditional trades that have stayed immune through the course of the pandemic," said Mike Stritch, chief investment officer at BMO Wealth Management in Chicago.
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Deere results boost S&P industrials index Apple rises for fourth day in a row U.S. existing home sales hit 14-year high in July U.S. business activity surges to early 2019 levels Indexes up: Dow 0.30%, S&P 0.11%, Nasdaq 0.32% Updates to early afternoon By Medha Singh and Sruthi Shankar Aug 21 (Reuters) - Wall Street's main indexes inched higher on Friday, with the tech-heavy Nasdaq on track for another record close, as the latest data pointed to some pockets of strength in the U.S. economy. The unexpectedly sharp increases in Markit's indexes continue a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession. The S&P index recorded 19 new 52-week highs and no new low, while the Nasdaq recorded 43 new highs and 26 new lows.
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Deere results boost S&P industrials index Apple rises for fourth day in a row U.S. existing home sales hit 14-year high in July U.S. business activity surges to early 2019 levels Indexes up: Dow 0.30%, S&P 0.11%, Nasdaq 0.32% Updates to early afternoon By Medha Singh and Sruthi Shankar Aug 21 (Reuters) - Wall Street's main indexes inched higher on Friday, with the tech-heavy Nasdaq on track for another record close, as the latest data pointed to some pockets of strength in the U.S. economy. Nonetheless, bets on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the economic uncertainty have set the S&P 500 and the Nasdaq on track to close out the week higher. The S&P index recorded 19 new 52-week highs and no new low, while the Nasdaq recorded 43 new highs and 26 new lows.
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Deere results boost S&P industrials index Apple rises for fourth day in a row U.S. existing home sales hit 14-year high in July U.S. business activity surges to early 2019 levels Indexes up: Dow 0.30%, S&P 0.11%, Nasdaq 0.32% Updates to early afternoon By Medha Singh and Sruthi Shankar Aug 21 (Reuters) - Wall Street's main indexes inched higher on Friday, with the tech-heavy Nasdaq on track for another record close, as the latest data pointed to some pockets of strength in the U.S. economy. Nonetheless, bets on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the economic uncertainty have set the S&P 500 and the Nasdaq on track to close out the week higher. Business activity snapped back to the highest since early 2019 in the United States in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders.
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956783b7-3714-40e6-bdb9-1b36107dd278
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721656.0
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2020-08-21 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Buckle, Nano-X Imaging, Deere & Co
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-buckle-nano-x-imaging-deere-co-2020-08-21
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching a record high, as data highlighted the pockets of strength in the U.S. economy. .N
At 11:58 ET, the Dow Jones Industrial Average .DJI was up 0.17% at 27,787.87. The S&P 500 .SPX was down 0.01% at 3,385.19 and the Nasdaq Composite .IXIC was up 0.11% at 11,277.445. The top three S&P 500 .PG.INX percentage gainers: ** Deere & Company , up 5.7% ** Wynn Resorts, Limited , up 4.5% ** Ulta Beauty Inc , up 4.1% The top three S&P 500 .PL.INX percentage losers: ** Keysight Technologies Inc , down 5.3% ** Marathon Oil Corporation , down 4% ** News Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** Vanguard US Momentum Factor ETF , up 42.6% ** Buckle Inc , up 20% ** Velocity Financial Inc , up 17.5% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 22.6% ** Centrus Energy Corp , down 13% ** FinVolution Group , down 11.7% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 55.2% ** Shiftpixy Inc , up 31.3% ** Bio-Path Holdings Inc , up 22.5% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 31.9% ** VivoPower International PLC , down 18.8% ** Blink Charging Equity Warrants , down 16.7% ** Buckle Inc BKE.N: up 20.1%
BUZZ-Soars as quarterly profit more than doubles ** Tesla Inc TSLA.O: up 2.3%
BUZZ-Overtakes Walmart in market value ** Arcturus Therapeutics Holdings Inc ARCT.O: up 5.9%
BUZZ-Rises; CEO says in talks with countries for COVID-19 vaccine supply ** StealthGas Inc GASS.O: up 15.3%
BUZZ-Climbs on Q2 profit vs year-ago loss ** Nano-X Imaging Ltd NNOX.O: up 20.2%
BUZZ-Nano-X Imaging lights up in U.S. IPO ** Alibaba Group Holding Ltd BABA.N: up 2.9% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 8.5% ** Pfizer Inc PFE.N: up 0.3% BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 1.5% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 11.3% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 5.7% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 2.9% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 1.5% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 17.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 23.5% BUZZ-Drops prices $50 mln direct offering after stock triples
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.38%
Consumer Discretionary
.SPLRCD
up 0.01%
Consumer Staples
.SPLRCS
down 0.06%
Energy
.SPNY
down 1.41%
Financial
.SPSY
down 0.36%
Health
.SPXHC
down 0.39%
Industrial
.SPLRCI
up 0.19%
Information Technology
.SPLRCT
up 0.63%
Materials
.SPLRCM
down 0.81%
Real Estate
.SPLRCR
down 0.35%
Utilities
.SPLRCU
down 0.11%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching a record high, as data highlighted the pockets of strength in the U.S. economy. The top three S&P 500 .PG.INX percentage gainers: ** Deere & Company , up 5.7% ** Wynn Resorts, Limited , up 4.5% ** Ulta Beauty Inc , up 4.1% The top three S&P 500 .PL.INX percentage losers: ** Keysight Technologies Inc , down 5.3% ** Marathon Oil Corporation , down 4% ** News Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** Vanguard US Momentum Factor ETF , up 42.6% ** Buckle Inc , up 20% ** Velocity Financial Inc , up 17.5% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 22.6% ** Centrus Energy Corp , down 13% ** FinVolution Group , down 11.7% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 55.2% ** Shiftpixy Inc , up 31.3% ** Bio-Path Holdings Inc , up 22.5% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 31.9% ** VivoPower International PLC , down 18.8% ** Blink Charging Equity Warrants , down 16.7% ** Buckle Inc BKE.N: up 20.1% BUZZ-Soars as quarterly profit more than doubles ** Tesla Inc TSLA.O: up 2.3% BUZZ-Overtakes Walmart in market value ** Arcturus Therapeutics Holdings Inc ARCT.O: up 5.9% BUZZ-Rises; CEO says in talks with countries for COVID-19 vaccine supply ** StealthGas Inc GASS.O: up 15.3% BUZZ-Climbs on Q2 profit vs year-ago loss ** Nano-X Imaging Ltd NNOX.O: up 20.2% BUZZ-Nano-X Imaging lights up in U.S. IPO ** Alibaba Group Holding Ltd BABA.N: up 2.9% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 8.5% ** Pfizer Inc PFE.N: up 0.3% BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 1.5% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 11.3% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 5.7% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 2.9% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 1.5% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 17.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 23.5% BUZZ-Drops prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services down 0.11% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching a record high, as data highlighted the pockets of strength in the U.S. economy. The top three S&P 500 .PG.INX percentage gainers: ** Deere & Company , up 5.7% ** Wynn Resorts, Limited , up 4.5% ** Ulta Beauty Inc , up 4.1% The top three S&P 500 .PL.INX percentage losers: ** Keysight Technologies Inc , down 5.3% ** Marathon Oil Corporation , down 4% ** News Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** Vanguard US Momentum Factor ETF , up 42.6% ** Buckle Inc , up 20% ** Velocity Financial Inc , up 17.5% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 22.6% ** Centrus Energy Corp , down 13% ** FinVolution Group , down 11.7% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 55.2% ** Shiftpixy Inc , up 31.3% ** Bio-Path Holdings Inc , up 22.5% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 31.9% ** VivoPower International PLC , down 18.8% ** Blink Charging Equity Warrants , down 16.7% ** Buckle Inc BKE.N: up 20.1% BUZZ-Soars as quarterly profit more than doubles ** Tesla Inc TSLA.O: up 2.3% BUZZ-Overtakes Walmart in market value ** Arcturus Therapeutics Holdings Inc ARCT.O: up 5.9% BUZZ-Rises; CEO says in talks with countries for COVID-19 vaccine supply ** StealthGas Inc GASS.O: up 15.3% BUZZ-Climbs on Q2 profit vs year-ago loss ** Nano-X Imaging Ltd NNOX.O: up 20.2% BUZZ-Nano-X Imaging lights up in U.S. IPO ** Alibaba Group Holding Ltd BABA.N: up 2.9% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 8.5% ** Pfizer Inc PFE.N: up 0.3% BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 1.5% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 11.3% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 5.7% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 2.9% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 1.5% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 17.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 23.5% BUZZ-Drops prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services down 0.11% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and 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 top three S&P 500 .PG.INX percentage gainers: ** Deere & Company , up 5.7% ** Wynn Resorts, Limited , up 4.5% ** Ulta Beauty Inc , up 4.1% The top three S&P 500 .PL.INX percentage losers: ** Keysight Technologies Inc , down 5.3% ** Marathon Oil Corporation , down 4% ** News Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** Vanguard US Momentum Factor ETF , up 42.6% ** Buckle Inc , up 20% ** Velocity Financial Inc , up 17.5% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 22.6% ** Centrus Energy Corp , down 13% ** FinVolution Group , down 11.7% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 55.2% ** Shiftpixy Inc , up 31.3% ** Bio-Path Holdings Inc , up 22.5% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 31.9% ** VivoPower International PLC , down 18.8% ** Blink Charging Equity Warrants , down 16.7% ** Buckle Inc BKE.N: up 20.1% BUZZ-Soars as quarterly profit more than doubles ** Tesla Inc TSLA.O: up 2.3% BUZZ-Overtakes Walmart in market value ** Arcturus Therapeutics Holdings Inc ARCT.O: up 5.9% BUZZ-Rises; CEO says in talks with countries for COVID-19 vaccine supply ** StealthGas Inc GASS.O: up 15.3% BUZZ-Climbs on Q2 profit vs year-ago loss ** Nano-X Imaging Ltd NNOX.O: up 20.2% BUZZ-Nano-X Imaging lights up in U.S. IPO ** Alibaba Group Holding Ltd BABA.N: up 2.9% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 8.5% ** Pfizer Inc PFE.N: up 0.3% BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 1.5% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 11.3% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 5.7% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 2.9% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 1.5% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 17.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 23.5% BUZZ-Drops prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching a record high, as data highlighted the pockets of strength in the U.S. economy. down 0.11% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching a record high, as data highlighted the pockets of strength in the U.S. economy. The top three S&P 500 .PG.INX percentage gainers: ** Deere & Company , up 5.7% ** Wynn Resorts, Limited , up 4.5% ** Ulta Beauty Inc , up 4.1% The top three S&P 500 .PL.INX percentage losers: ** Keysight Technologies Inc , down 5.3% ** Marathon Oil Corporation , down 4% ** News Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** Vanguard US Momentum Factor ETF , up 42.6% ** Buckle Inc , up 20% ** Velocity Financial Inc , up 17.5% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 22.6% ** Centrus Energy Corp , down 13% ** FinVolution Group , down 11.7% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 55.2% ** Shiftpixy Inc , up 31.3% ** Bio-Path Holdings Inc , up 22.5% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 31.9% ** VivoPower International PLC , down 18.8% ** Blink Charging Equity Warrants , down 16.7% ** Buckle Inc BKE.N: up 20.1% BUZZ-Soars as quarterly profit more than doubles ** Tesla Inc TSLA.O: up 2.3% BUZZ-Overtakes Walmart in market value ** Arcturus Therapeutics Holdings Inc ARCT.O: up 5.9% BUZZ-Rises; CEO says in talks with countries for COVID-19 vaccine supply ** StealthGas Inc GASS.O: up 15.3% BUZZ-Climbs on Q2 profit vs year-ago loss ** Nano-X Imaging Ltd NNOX.O: up 20.2% BUZZ-Nano-X Imaging lights up in U.S. IPO ** Alibaba Group Holding Ltd BABA.N: up 2.9% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 8.5% ** Pfizer Inc PFE.N: up 0.3% BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 1.5% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 11.3% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 5.7% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 2.9% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 1.5% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 17.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 23.5% BUZZ-Drops prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services down 0.11% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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721657.0
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2020-08-21 00:00:00 UTC
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Wall Street drifts higher after upbeat U.S. business surveys
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https://www.nasdaq.com/articles/wall-street-drifts-higher-after-upbeat-u.s.-business-surveys-2020-08-21
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nan
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nan
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window.
Deere boosts S&P industrials index after results
Apple rises for the fourth day in a row
U.S. existing home sales hit 14-year high in July
U.S. business activity surges to early 2019 levels
Indexes up: Dow 0.25%, S&P 0.04%, Nasdaq 0.27%
Adds comment, details; updates prices
By Medha Singh and Sruthi Shankar
Aug 21 (Reuters) - Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching another record high, as data highlighted the pockets of strength in the U.S. economy.
Business activity snapped back to the highest since early 2019 in the United States in August as companies in both the manufacturing and services sectors saw a resurgence in new orders, IHS Markit surveys showed.
Another report showed U.S. home sales rose at a record pace for a second straight month in July and home prices hit all-time highs.
The unexpectedly sharp increases in Markit's indexes continue a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession.
Nonetheless, bets on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the economic uncertainty have set the S&P 500 and the Nasdaq on track to close out the week higher.
"The uncertainty and choppiness are driving people back to some of the more traditional trades that have stayed immune through the course of the pandemic," said Mike Stritch, chief investment officer at BMO Wealth Management in Chicago.
On Tuesday, the S&P 500 clinched a record high, recouping the last of its losses caused by the coronavirus-driven slump and joining the Nasdaq in notching new highs.
The Dow still remains about 6% below its peak in February.
Investors also worry about a stalemate in talks between House Democrats and the White House over the next coronavirus aid bill as about 28 million Americans continued to collect unemployment cheques.
"The market will move higher, but it will be very slow and irregular one, at least until there's a vaccine," said Chuck Lieberman, chief investment officer at Advisors Capital Management.
At 11:06 a.m. ET, the Dow Jones Industrial Average .DJI was up 68.71 points, or 0.25%, at 27,808.44, the S&P 500 .SPX was up 1.46 points, or 0.04%, at 3,386.97. The Nasdaq Composite .IXIC was up 30.40 points, or 0.27%, at 11,295.35.
Technology .SPLRCT, consumer discretionary .SPLRCD and industrials .SPLRCI were the only major S&P sectors in positive territory.
Apple Inc AAPL.O gained another 3.9%, rising for the fourth straight day.
Deere & Co DE.N rose 5% after the world's largest farm equipment maker revised up its full-year earnings forecast.
Tesla's shares TSLA.O added another 2.6% after surging past the $2,000 mark on Thursday for the first time and extending its rally ahead of an upcoming share split.
Declining issues outnumbered advancers for a 2.57-to-1 ratio on the NYSE and for a 2.69-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and no new low, while the Nasdaq recorded 37 new highs and 18 new lows.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; 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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Business activity snapped back to the highest since early 2019 in the United States in August as companies in both the manufacturing and services sectors saw a resurgence in new orders, IHS Markit surveys showed. Nonetheless, bets on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the economic uncertainty have set the S&P 500 and the Nasdaq on track to close out the week higher. "The uncertainty and choppiness are driving people back to some of the more traditional trades that have stayed immune through the course of the pandemic," said Mike Stritch, chief investment officer at BMO Wealth Management in Chicago.
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Deere boosts S&P industrials index after results Apple rises for the fourth day in a row U.S. existing home sales hit 14-year high in July U.S. business activity surges to early 2019 levels Indexes up: Dow 0.25%, S&P 0.04%, Nasdaq 0.27% Adds comment, details; updates prices By Medha Singh and Sruthi Shankar Aug 21 (Reuters) - Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching another record high, as data highlighted the pockets of strength in the U.S. economy. The unexpectedly sharp increases in Markit's indexes continue a pattern of choppy U.S. economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the COVID-19 recession. Business activity snapped back to the highest since early 2019 in the United States in August as companies in both the manufacturing and services sectors saw a resurgence in new orders, IHS Markit surveys showed.
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Deere boosts S&P industrials index after results Apple rises for the fourth day in a row U.S. existing home sales hit 14-year high in July U.S. business activity surges to early 2019 levels Indexes up: Dow 0.25%, S&P 0.04%, Nasdaq 0.27% Adds comment, details; updates prices By Medha Singh and Sruthi Shankar Aug 21 (Reuters) - Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching another record high, as data highlighted the pockets of strength in the U.S. economy. The S&P index recorded 14 new 52-week highs and no new low, while the Nasdaq recorded 37 new highs and 18 new lows. Business activity snapped back to the highest since early 2019 in the United States in August as companies in both the manufacturing and services sectors saw a resurgence in new orders, IHS Markit surveys showed.
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Deere boosts S&P industrials index after results Apple rises for the fourth day in a row U.S. existing home sales hit 14-year high in July U.S. business activity surges to early 2019 levels Indexes up: Dow 0.25%, S&P 0.04%, Nasdaq 0.27% Adds comment, details; updates prices By Medha Singh and Sruthi Shankar Aug 21 (Reuters) - Wall Street's main indexes nudged higher on Friday with the tech-heavy Nasdaq notching another record high, as data highlighted the pockets of strength in the U.S. economy. The S&P index recorded 14 new 52-week highs and no new low, while the Nasdaq recorded 37 new highs and 18 new lows. Business activity snapped back to the highest since early 2019 in the United States in August as companies in both the manufacturing and services sectors saw a resurgence in new orders, IHS Markit surveys showed.
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e23dad97-7996-4e27-827a-9b9a879e172d
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721658.0
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2020-08-21 00:00:00 UTC
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S&P 500 Movers: SNPS, WYNN
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https://www.nasdaq.com/articles/sp-500-movers%3A-snps-wynn-2020-08-21
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In early trading on Friday, shares of Wynn Resorts topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. Year to date, Wynn Resorts has lost about 39.4% of its value.
And the worst performing S&P 500 component thus far on the day is Synopsys, trading down 3.3%. Synopsys is showing a gain of 49.5% looking at the year to date performance.
Two other components making moves today are ONEOK, trading down 2.9%, and Deere, trading up 4.9% on the day.
VIDEO: S&P 500 Movers: SNPS, WYNN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: SNPS, WYNN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Wynn Resorts topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. Two other components making moves today are ONEOK, trading down 2.9%, and Deere, trading up 4.9% on the day.
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In early trading on Friday, shares of Wynn Resorts topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. Two other components making moves today are ONEOK, trading down 2.9%, and Deere, trading up 4.9% on the day. VIDEO: S&P 500 Movers: SNPS, WYNN The views and 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 early trading on Friday, shares of Wynn Resorts topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. Two other components making moves today are ONEOK, trading down 2.9%, and Deere, trading up 4.9% on the day. VIDEO: S&P 500 Movers: SNPS, WYNN The views and 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 early trading on Friday, shares of Wynn Resorts topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. VIDEO: S&P 500 Movers: SNPS, WYNN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Two other components making moves today are ONEOK, trading down 2.9%, and Deere, trading up 4.9% on the day.
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5468b7da-e536-4fd9-abff-fd723fd194d9
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721659.0
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2020-08-21 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Buckle, Pinduoduo, Gevo
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-buckle-pinduoduo-gevo-2020-08-21
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment..N
At 10:17 ET, the Dow Jones Industrial Average .DJI was up 0.22% at 27,800.81. The S&P 500 .SPX was up 0.02% at 3,386.18 and the Nasdaq Composite .IXIC was up 0.07% at 11,272.386. The top three S&P 500 .PG.INX percentage gainers: ** Wynn Resorts, Ltd , up 4.6% ** Deere & Company , up 4.6% ** Estee Lauder Companies Inc , up 3.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys Inc , down 3.2% ** Freeport-McMoRan Inc , down 2.6% ** Oneok Inc , down 2.5% The top three NYSE .PG.N percentage gainers: ** Buckle Inc , up 22.7% ** Ageagle Aerial Systems Inc , up 14.1% ** Tortoise Acquisition Corp , up 11% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 16.4% ** Navios Maritime Acquisition Corporation , down 13.7% ** Centrus Energy Corp , down 10.4% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 88.9% ** Shiftpixy Inc , up 55.5% ** Midatech Pharma , up 22.4% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 22.6% ** Blink Charging Equity Warrants , down 19.5% ** VivoPower International PLC , down 17.8% ** Buckle Inc BKE.N: up 22.8%
BUZZ-Soars as quarterly profit more than doubles ** Alibaba Group Holding Ltd BABA.N: up 1.1% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** Foot Locker Inc FL.N: up 2.1% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** General Electric Co GE.N: up 0.8% BUZZ-Rises as co extends 'reset' expert Larry Culp's tenure ** Pinduoduo Inc PDD.O: down 12.0% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 4.6% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 1.8% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 0.9% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 11.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 24.2% BUZZ-Drops: prices $50 mln direct offering after stock triples
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.34%
Consumer Discretionary
.SPLRCD
up 0.05%
Consumer Staples
.SPLRCS
down 0.01%
Energy
.SPNY
down 0.60%
Financial
.SPSY
up 0.22%
Health
.SPXHC
down 0.12%
Industrial
.SPLRCI
up 0.36%
Information Technology
.SPLRCT
up 0.44%
Materials
.SPLRCM
down 0.64%
Real Estate
.SPLRCR
down 0.32%
Utilities
.SPLRCU
up 0.08%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment..N At 10:17 ET, the Dow Jones Industrial Average .DJI was up 0.22% at 27,800.81. The top three S&P 500 .PG.INX percentage gainers: ** Wynn Resorts, Ltd , up 4.6% ** Deere & Company , up 4.6% ** Estee Lauder Companies Inc , up 3.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys Inc , down 3.2% ** Freeport-McMoRan Inc , down 2.6% ** Oneok Inc , down 2.5% The top three NYSE .PG.N percentage gainers: ** Buckle Inc , up 22.7% ** Ageagle Aerial Systems Inc , up 14.1% ** Tortoise Acquisition Corp , up 11% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 16.4% ** Navios Maritime Acquisition Corporation , down 13.7% ** Centrus Energy Corp , down 10.4% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 88.9% ** Shiftpixy Inc , up 55.5% ** Midatech Pharma , up 22.4% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 22.6% ** Blink Charging Equity Warrants , down 19.5% ** VivoPower International PLC , down 17.8% ** Buckle Inc BKE.N: up 22.8% BUZZ-Soars as quarterly profit more than doubles ** Alibaba Group Holding Ltd BABA.N: up 1.1% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** Foot Locker Inc FL.N: up 2.1% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** General Electric Co GE.N: up 0.8% BUZZ-Rises as co extends 'reset' expert Larry Culp's tenure ** Pinduoduo Inc PDD.O: down 12.0% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 4.6% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 1.8% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 0.9% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 11.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 24.2% BUZZ-Drops: prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services up 0.08% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment..N At 10:17 ET, the Dow Jones Industrial Average .DJI was up 0.22% at 27,800.81. The top three S&P 500 .PG.INX percentage gainers: ** Wynn Resorts, Ltd , up 4.6% ** Deere & Company , up 4.6% ** Estee Lauder Companies Inc , up 3.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys Inc , down 3.2% ** Freeport-McMoRan Inc , down 2.6% ** Oneok Inc , down 2.5% The top three NYSE .PG.N percentage gainers: ** Buckle Inc , up 22.7% ** Ageagle Aerial Systems Inc , up 14.1% ** Tortoise Acquisition Corp , up 11% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 16.4% ** Navios Maritime Acquisition Corporation , down 13.7% ** Centrus Energy Corp , down 10.4% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 88.9% ** Shiftpixy Inc , up 55.5% ** Midatech Pharma , up 22.4% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 22.6% ** Blink Charging Equity Warrants , down 19.5% ** VivoPower International PLC , down 17.8% ** Buckle Inc BKE.N: up 22.8% BUZZ-Soars as quarterly profit more than doubles ** Alibaba Group Holding Ltd BABA.N: up 1.1% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** Foot Locker Inc FL.N: up 2.1% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** General Electric Co GE.N: up 0.8% BUZZ-Rises as co extends 'reset' expert Larry Culp's tenure ** Pinduoduo Inc PDD.O: down 12.0% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 4.6% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 1.8% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 0.9% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 11.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 24.2% BUZZ-Drops: prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services up 0.08% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment..N At 10:17 ET, the Dow Jones Industrial Average .DJI was up 0.22% at 27,800.81. The top three S&P 500 .PG.INX percentage gainers: ** Wynn Resorts, Ltd , up 4.6% ** Deere & Company , up 4.6% ** Estee Lauder Companies Inc , up 3.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys Inc , down 3.2% ** Freeport-McMoRan Inc , down 2.6% ** Oneok Inc , down 2.5% The top three NYSE .PG.N percentage gainers: ** Buckle Inc , up 22.7% ** Ageagle Aerial Systems Inc , up 14.1% ** Tortoise Acquisition Corp , up 11% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 16.4% ** Navios Maritime Acquisition Corporation , down 13.7% ** Centrus Energy Corp , down 10.4% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 88.9% ** Shiftpixy Inc , up 55.5% ** Midatech Pharma , up 22.4% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 22.6% ** Blink Charging Equity Warrants , down 19.5% ** VivoPower International PLC , down 17.8% ** Buckle Inc BKE.N: up 22.8% BUZZ-Soars as quarterly profit more than doubles ** Alibaba Group Holding Ltd BABA.N: up 1.1% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** Foot Locker Inc FL.N: up 2.1% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** General Electric Co GE.N: up 0.8% BUZZ-Rises as co extends 'reset' expert Larry Culp's tenure ** Pinduoduo Inc PDD.O: down 12.0% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 4.6% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 1.8% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 0.9% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 11.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 24.2% BUZZ-Drops: prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services up 0.08% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment..N At 10:17 ET, the Dow Jones Industrial Average .DJI was up 0.22% at 27,800.81. The top three S&P 500 .PG.INX percentage gainers: ** Wynn Resorts, Ltd , up 4.6% ** Deere & Company , up 4.6% ** Estee Lauder Companies Inc , up 3.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys Inc , down 3.2% ** Freeport-McMoRan Inc , down 2.6% ** Oneok Inc , down 2.5% The top three NYSE .PG.N percentage gainers: ** Buckle Inc , up 22.7% ** Ageagle Aerial Systems Inc , up 14.1% ** Tortoise Acquisition Corp , up 11% The top three NYSE .PL.N percentage losers: ** Cato Corp , down 16.4% ** Navios Maritime Acquisition Corporation , down 13.7% ** Centrus Energy Corp , down 10.4% The top three Nasdaq .PG.O percentage gainers: ** Kelly Services, Inc , up 88.9% ** Shiftpixy Inc , up 55.5% ** Midatech Pharma , up 22.4% The top three Nasdaq .PL.O percentage losers: ** Opes Acquisition Corp , down 22.6% ** Blink Charging Equity Warrants , down 19.5% ** VivoPower International PLC , down 17.8% ** Buckle Inc BKE.N: up 22.8% BUZZ-Soars as quarterly profit more than doubles ** Alibaba Group Holding Ltd BABA.N: up 1.1% BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** Foot Locker Inc FL.N: up 2.1% BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** General Electric Co GE.N: up 0.8% BUZZ-Rises as co extends 'reset' expert Larry Culp's tenure ** Pinduoduo Inc PDD.O: down 12.0% BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 4.6% BUZZ-Set to open at record high after raising earnings outlook ** Williams-Sonoma Inc WSM.N: up 1.8% BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results ** Ubiquiti Inc UI.N: down 0.9% BUZZ-Drops on pandemic-led supply chain disruptions in Q4 ** Cryoport Inc CYRX.O: up 11.0% BUZZ-Up on deal to buy CRYOPDP for 49 million euros ** Gevo Inc GEVO.O: down 24.2% BUZZ-Drops: prices $50 mln direct offering after stock triples The 11 major S&P 500 sectors: Communication Services up 0.08% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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5d9f1b44-e687-46ec-a7da-41419a80c56b
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721660.0
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2020-08-21 00:00:00 UTC
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Wall Street inches higher after upbeat U.S. business surveys
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https://www.nasdaq.com/articles/wall-street-inches-higher-after-upbeat-u.s.-business-surveys-2020-08-21
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nan
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By Medha Singh
Aug 21 (Reuters) - U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment.
Data firm IHS Markit said its flash U.S. Composite PMI Index rose to a reading of 54.7 this month from 50.3 in July as companies in both the manufacturing and services sectors saw a resurgence in new orders.
The unexpectedly sharp increases in Markit's indexes continue a pattern of choppy U.S. economic data that paint a picture of a fitful recovery from the COVID-19 recession.
On Thursday, the Labor Department's report showed weekly jobless claims shot back above 1 million mark last week. However, investors' bet on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the pandemic helped the three main indexes close higher in the previous session.
Earlier this week, the S&P 500 clinched a record high, recouping the last of its losses caused by the coronavirus-driven slump and joining the Nasdaq in notching new highs.
The Dow still remains about 6% below its peak in February.
"The market will move higher, but it will be very slow and irregular one, at least until there's a vaccine," said Chuck Lieberman, chief investment officer at Advisors Capital Management.
"We're still gradually reopening, and setbacks are on their way. It makes people concerned at times."
Investors also worry about a stalemate in talks between House Democrats and the White House over the next coronavirus aid bill as about 28 million Americans continued to collect unemployment cheques.
At 10:06 a.m. ET, the Dow Jones Industrial Average .DJI was up 65.61 points, or 0.24%, at 27,805.34, the S&P 500 .SPX was up 2.98 points, or 0.09%, at 3,388.49. The Nasdaq Composite .IXIC was up 7.15 points, or 0.06%, at 11,272.10.
Financials .SPSY, industrials .SPLRCI and technology .SPLRCT posted the steepest percentage gains among major S&P sectors.
Apple gained another 2%, rising for the fourth straight day.
Deere & Co DE.N rose 4.5% after the world's largest farm equipment maker revised up its full-year earnings forecast.
Tesla's shares TSLA.O added another 2.1% after surging past the $2,000 mark on Thursday for the first time and extending its rally ahead of an upcoming share split.
Declining issues outnumbered advancers for a 1.97-to-1 ratio on the NYSE and for a 2.31-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new low, while the Nasdaq recorded 22 new highs and 10 new lows.
(Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; 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 Aug 21 (Reuters) - U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment. Data firm IHS Markit said its flash U.S. Composite PMI Index rose to a reading of 54.7 this month from 50.3 in July as companies in both the manufacturing and services sectors saw a resurgence in new orders. However, investors' bet on technology-focused companies including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the pandemic helped the three main indexes close higher in the previous session.
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The unexpectedly sharp increases in Markit's indexes continue a pattern of choppy U.S. economic data that paint a picture of a fitful recovery from the COVID-19 recession. On Thursday, the Labor Department's report showed weekly jobless claims shot back above 1 million mark last week. The S&P index recorded eight new 52-week highs and no new low, while the Nasdaq recorded 22 new highs and 10 new lows.
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By Medha Singh Aug 21 (Reuters) - U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment. Data firm IHS Markit said its flash U.S. Composite PMI Index rose to a reading of 54.7 this month from 50.3 in July as companies in both the manufacturing and services sectors saw a resurgence in new orders. The S&P index recorded eight new 52-week highs and no new low, while the Nasdaq recorded 22 new highs and 10 new lows.
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Data firm IHS Markit said its flash U.S. Composite PMI Index rose to a reading of 54.7 this month from 50.3 in July as companies in both the manufacturing and services sectors saw a resurgence in new orders. On Thursday, the Labor Department's report showed weekly jobless claims shot back above 1 million mark last week. By Medha Singh Aug 21 (Reuters) - U.S. stock indexes eked out gains on Friday, supported by Apple's shares, while data showing business activity snapped back to the highest since early 2019 also lifted the sentiment.
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995fee52-b282-4dae-9949-32c0dd9a6e05
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721661.0
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2020-08-21 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Pinduoduo, Keysight Tech, Foot Locker
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DE
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-pinduoduo-keysight-tech-foot-locker-2020-08-21
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street's main indexes headed for a lower open on Friday with the tech-heavy Nasdaq set to ease from an all-time high ahead of a round of U.S. business surveys for August..N
At 8:42 ET, Dow e-minis 1YMc1 were down 0.57% at 27,510. S&P 500 e-minis ESc1 were down 0.54% at 3,362.5, while Nasdaq 100 e-minis NQc1 were down 0.38% at 11,433.5. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Buckle Inc , up 16.7% ** Santander Consumer USA Holdings Inc , up 10.8% ** Pacific Drilling , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** M/I Homes Inc , down 28.8% ** X Financial , down 13.5% ** Linx SA , down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Kitov Pharma Equity Warrants , up 85.7% ** Glory Star New Media Group Holdings Equity Warrants , up 64.1% ** Eyepoint Pharmaceuticals Inc , up 53.0% The top three Nasdaq percentage losers premarket .PRPL.O: ** National Holdings Equity Warrants , down 61.2% ** Gevo Inc , down 22.5% ** Gan Ltd , down 17.8% ** Alibaba Group Holding Ltd BABA.N: up 0.4% premarket BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 5.4% premarket ** Pfizer Inc PFE.N: up 1.0% premarket BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 5.1% premarket BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 10.5% premarket BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 2.8% premarket BUZZ-Set to open at record high after raising earnings outlook ** Keysight Technologies Inc KEYS.N: up 2.2% premarket BUZZ-Up on strong quarterly results, upbeat outlook ** Williams-Sonoma Inc WSM.N: up 0.2% premarket BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes headed for a lower open on Friday with the tech-heavy Nasdaq set to ease from an all-time high ahead of a round of U.S. business surveys for August..N At 8:42 ET, Dow e-minis 1YMc1 were down 0.57% at 27,510. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Buckle Inc , up 16.7% ** Santander Consumer USA Holdings Inc , up 10.8% ** Pacific Drilling , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** M/I Homes Inc , down 28.8% ** X Financial , down 13.5% ** Linx SA , down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Kitov Pharma Equity Warrants , up 85.7% ** Glory Star New Media Group Holdings Equity Warrants , up 64.1% ** Eyepoint Pharmaceuticals Inc , up 53.0% The top three Nasdaq percentage losers premarket .PRPL.O: ** National Holdings Equity Warrants , down 61.2% ** Gevo Inc , down 22.5% ** Gan Ltd , down 17.8% ** Alibaba Group Holding Ltd BABA.N: up 0.4% premarket BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 5.4% premarket ** Pfizer Inc PFE.N: up 1.0% premarket BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 5.1% premarket BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 10.5% premarket BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 2.8% premarket BUZZ-Set to open at record high after raising earnings outlook ** Keysight Technologies Inc KEYS.N: up 2.2% premarket BUZZ-Up on strong quarterly results, upbeat outlook ** Williams-Sonoma Inc WSM.N: up 0.2% premarket BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. S&P 500 e-minis ESc1 were down 0.54% at 3,362.5, while Nasdaq 100 e-minis NQc1 were down 0.38% at 11,433.5.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes headed for a lower open on Friday with the tech-heavy Nasdaq set to ease from an all-time high ahead of a round of U.S. business surveys for August..N At 8:42 ET, Dow e-minis 1YMc1 were down 0.57% at 27,510. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Buckle Inc , up 16.7% ** Santander Consumer USA Holdings Inc , up 10.8% ** Pacific Drilling , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** M/I Homes Inc , down 28.8% ** X Financial , down 13.5% ** Linx SA , down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Kitov Pharma Equity Warrants , up 85.7% ** Glory Star New Media Group Holdings Equity Warrants , up 64.1% ** Eyepoint Pharmaceuticals Inc , up 53.0% The top three Nasdaq percentage losers premarket .PRPL.O: ** National Holdings Equity Warrants , down 61.2% ** Gevo Inc , down 22.5% ** Gan Ltd , down 17.8% ** Alibaba Group Holding Ltd BABA.N: up 0.4% premarket BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 5.4% premarket ** Pfizer Inc PFE.N: up 1.0% premarket BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 5.1% premarket BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 10.5% premarket BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 2.8% premarket BUZZ-Set to open at record high after raising earnings outlook ** Keysight Technologies Inc KEYS.N: up 2.2% premarket BUZZ-Up on strong quarterly results, upbeat outlook ** Williams-Sonoma Inc WSM.N: up 0.2% premarket BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. S&P 500 e-minis ESc1 were down 0.54% at 3,362.5, while Nasdaq 100 e-minis NQc1 were down 0.38% at 11,433.5.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes headed for a lower open on Friday with the tech-heavy Nasdaq set to ease from an all-time high ahead of a round of U.S. business surveys for August..N At 8:42 ET, Dow e-minis 1YMc1 were down 0.57% at 27,510. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Buckle Inc , up 16.7% ** Santander Consumer USA Holdings Inc , up 10.8% ** Pacific Drilling , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** M/I Homes Inc , down 28.8% ** X Financial , down 13.5% ** Linx SA , down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Kitov Pharma Equity Warrants , up 85.7% ** Glory Star New Media Group Holdings Equity Warrants , up 64.1% ** Eyepoint Pharmaceuticals Inc , up 53.0% The top three Nasdaq percentage losers premarket .PRPL.O: ** National Holdings Equity Warrants , down 61.2% ** Gevo Inc , down 22.5% ** Gan Ltd , down 17.8% ** Alibaba Group Holding Ltd BABA.N: up 0.4% premarket BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 5.4% premarket ** Pfizer Inc PFE.N: up 1.0% premarket BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 5.1% premarket BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 10.5% premarket BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 2.8% premarket BUZZ-Set to open at record high after raising earnings outlook ** Keysight Technologies Inc KEYS.N: up 2.2% premarket BUZZ-Up on strong quarterly results, upbeat outlook ** Williams-Sonoma Inc WSM.N: up 0.2% premarket BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. S&P 500 e-minis ESc1 were down 0.54% at 3,362.5, while Nasdaq 100 e-minis NQc1 were down 0.38% at 11,433.5.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes headed for a lower open on Friday with the tech-heavy Nasdaq set to ease from an all-time high ahead of a round of U.S. business surveys for August..N At 8:42 ET, Dow e-minis 1YMc1 were down 0.57% at 27,510. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Buckle Inc , up 16.7% ** Santander Consumer USA Holdings Inc , up 10.8% ** Pacific Drilling , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** M/I Homes Inc , down 28.8% ** X Financial , down 13.5% ** Linx SA , down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Kitov Pharma Equity Warrants , up 85.7% ** Glory Star New Media Group Holdings Equity Warrants , up 64.1% ** Eyepoint Pharmaceuticals Inc , up 53.0% The top three Nasdaq percentage losers premarket .PRPL.O: ** National Holdings Equity Warrants , down 61.2% ** Gevo Inc , down 22.5% ** Gan Ltd , down 17.8% ** Alibaba Group Holding Ltd BABA.N: up 0.4% premarket BUZZ-Street View: Strong ecosystem strategy stands out for Alibaba ** BioNTech Co BNTX.O: up 5.4% premarket ** Pfizer Inc PFE.N: up 1.0% premarket BUZZ-BioNTech, Pfizer rise on additional data from potential COVID-19 vaccine ** Foot Locker Inc FL.N: up 5.1% premarket BUZZ-Foot Locker reinstates dividend after strong Q2, shares rise ** Pinduoduo Inc PDD.O: down 10.5% premarket BUZZ-Set for worst day in 9 months on bigger operating loss ** Deere & Co DE.N: up 2.8% premarket BUZZ-Set to open at record high after raising earnings outlook ** Keysight Technologies Inc KEYS.N: up 2.2% premarket BUZZ-Up on strong quarterly results, upbeat outlook ** Williams-Sonoma Inc WSM.N: up 0.2% premarket BUZZ-Gordon Haskett upgrades to 'buy' ahead of Q2 results (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. S&P 500 e-minis ESc1 were down 0.54% at 3,362.5, while Nasdaq 100 e-minis NQc1 were down 0.38% at 11,433.5.
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dcfb3d13-ef8a-48da-90f8-0497145c6ede
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721662.0
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2020-08-21 00:00:00 UTC
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Deere lifts full-year earnings forecast on resilient farm equipment demand
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DE
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https://www.nasdaq.com/articles/deere-lifts-full-year-earnings-forecast-on-resilient-farm-equipment-demand-2020-08-21-0
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nan
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nan
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Adds more details
CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N, the world's largest farm equipment maker, lifted its full-year earnings forecast on Friday after a smaller-than-expected decline in quarterly profit, as the sector benefits from replacement demand and government stimulus.
The Moline, Illinois-based company said it now expects net income of about $2.25 billion for the full year, higher than $1.6 billion-$2 billion estimated earlier.
For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year. Equipment sales during the quarter declined 12.4% year-on-year to $7.9 billion.
Analysts surveyed by Refinitiv, on average, had expected earnings of $1.26 per share and equipment sales of $6.7 billion.
The coronavirus pandemic has lowered commodity prices, squeezing farmers who are still reeling from the U.S.-China trade dispute. However, U.S. farmer sentiment has rebounded on the back of improved planting conditions as well as additional government subsidy payments.
President Donald Trump has announced a $19 billion relief program to help U.S. farmers cope with the impact of the health crisis. Also helping agricultural equipment demand is a growing need for farmers to replace their aging tractors and combines.
Deere expects a recovery in sales for farm machines on the back of improved demand in North America and Asia. Still, Chief Executive John May warned that uncertainty caused by the pandemic could weigh on sales.
(Reporting by Rajesh Kumar Singh; Editing by Alex Richardson and Susan Fenton)
((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 more details CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N, the world's largest farm equipment maker, lifted its full-year earnings forecast on Friday after a smaller-than-expected decline in quarterly profit, as the sector benefits from replacement demand and government stimulus. President Donald Trump has announced a $19 billion relief program to help U.S. farmers cope with the impact of the health crisis. Deere expects a recovery in sales for farm machines on the back of improved demand in North America and Asia.
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Equipment sales during the quarter declined 12.4% year-on-year to $7.9 billion. Deere expects a recovery in sales for farm machines on the back of improved demand in North America and Asia. Adds more details CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N, the world's largest farm equipment maker, lifted its full-year earnings forecast on Friday after a smaller-than-expected decline in quarterly profit, as the sector benefits from replacement demand and government stimulus.
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Adds more details CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N, the world's largest farm equipment maker, lifted its full-year earnings forecast on Friday after a smaller-than-expected decline in quarterly profit, as the sector benefits from replacement demand and government stimulus. For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year. Equipment sales during the quarter declined 12.4% year-on-year to $7.9 billion.
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Adds more details CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N, the world's largest farm equipment maker, lifted its full-year earnings forecast on Friday after a smaller-than-expected decline in quarterly profit, as the sector benefits from replacement demand and government stimulus. Deere expects a recovery in sales for farm machines on the back of improved demand in North America and Asia. For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year.
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d8bf4e5e-cc7c-45db-b205-922a07dbfec7
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721663.0
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2020-08-21 00:00:00 UTC
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US STOCKS-Futures ease following Nasdaq's record close; business surveys on deck
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DE
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https://www.nasdaq.com/articles/us-stocks-futures-ease-following-nasdaqs-record-close-business-surveys-on-deck-2020-08-21
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nan
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nan
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By Medha Singh
Aug 21 (Reuters) - U.S. stock index futures ticked lower on Friday, a day after the tech-heavy Nasdaq closed at a record high, as investors awaited U.S. business surveys for more clues on the economy's health.
Surveys from the euro zone showed an economic recovery from its deepest downturn on record has stuttered this month, setting up a downbeat tone for IHS Markit's surveys of the U.S. manufacturing and services sectors due later in the day.
U.S. stocks finished higher on Thursday as investors bet on tech heavyweights including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the pandemic as U.S. data painted a picture of a wobbly economic recovery.
Investors also worry about a stalemate in talks between House Democrats and the White House over the next coronavirus aid bill as about 28 million Americans continued to collect unemployment cheques.
Earlier this week, the S&P 500 clinched a record high, recouping the last of its losses caused by the coronavirus-driven slump and joining the Nasdaq in notching new highs.
The Dow still remains about 6% below its peak in February.
At 6:35 a.m. ET, Dow e-minis 1YMcv1 were down 19 points, or 0.07%, S&P 500 e-minis EScv1 were down 3.25 points, or 0.1% and Nasdaq 100 e-minis NQcv1 were down 10 points, or 0.09%.
Among stocks, Deere & Co DE.N rose 4.5% premarket after it revised up its full-year earnings forecast and reported a smaller-than-expected decline in quarterly profit.
Pfizer PFE.N rose 1.5% after reporting positive additional data from an early-stage study of its experimental coronavirus vaccine being developed in collaboration with German biotech firm BioNTech BNTX.O22UAy.F.
U.S.-listed shares of BioNTech BNTX.O jumped 8.1%.
Tesla TSLA.O gained another 1.8% after surging past the $2,000 mark on Thursday for the first time and extending its rally ahead of an upcoming share split.
(Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; 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 Aug 21 (Reuters) - U.S. stock index futures ticked lower on Friday, a day after the tech-heavy Nasdaq closed at a record high, as investors awaited U.S. business surveys for more clues on the economy's health. U.S. stocks finished higher on Thursday as investors bet on tech heavyweights including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the pandemic as U.S. data painted a picture of a wobbly economic recovery. Pfizer PFE.N rose 1.5% after reporting positive additional data from an early-stage study of its experimental coronavirus vaccine being developed in collaboration with German biotech firm BioNTech BNTX.O22UAy.F.
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By Medha Singh Aug 21 (Reuters) - U.S. stock index futures ticked lower on Friday, a day after the tech-heavy Nasdaq closed at a record high, as investors awaited U.S. business surveys for more clues on the economy's health. (Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; 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. Surveys from the euro zone showed an economic recovery from its deepest downturn on record has stuttered this month, setting up a downbeat tone for IHS Markit's surveys of the U.S. manufacturing and services sectors due later in the day.
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By Medha Singh Aug 21 (Reuters) - U.S. stock index futures ticked lower on Friday, a day after the tech-heavy Nasdaq closed at a record high, as investors awaited U.S. business surveys for more clues on the economy's health. Pfizer PFE.N rose 1.5% after reporting positive additional data from an early-stage study of its experimental coronavirus vaccine being developed in collaboration with German biotech firm BioNTech BNTX.O22UAy.F. Surveys from the euro zone showed an economic recovery from its deepest downturn on record has stuttered this month, setting up a downbeat tone for IHS Markit's surveys of the U.S. manufacturing and services sectors due later in the day.
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By Medha Singh Aug 21 (Reuters) - U.S. stock index futures ticked lower on Friday, a day after the tech-heavy Nasdaq closed at a record high, as investors awaited U.S. business surveys for more clues on the economy's health. U.S. stocks finished higher on Thursday as investors bet on tech heavyweights including Apple Inc AAPL.O and Amazon.com AMZN.O to ride out the pandemic as U.S. data painted a picture of a wobbly economic recovery. Surveys from the euro zone showed an economic recovery from its deepest downturn on record has stuttered this month, setting up a downbeat tone for IHS Markit's surveys of the U.S. manufacturing and services sectors due later in the day.
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95628e19-7447-4079-9f8b-b8a770e445ed
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721664.0
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2020-08-21 00:00:00 UTC
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Deere And Co Q3 Profit Drops
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DE
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https://www.nasdaq.com/articles/deere-and-co-q3-profit-drops-2020-08-21
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nan
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nan
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(RTTNews) - Deere And Co (DE) announced a profit for third quarter that declined from last year.
The company's bottom line came in at $811 million, or $2.57 per share. This compares with $899 million, or $2.81 per share, in last year's third quarter.
The company's revenue for the quarter fell 12.4% to $7.86 billion from $8.97 billion last year.
Deere And Co earnings at a glance:
-Earnings (Q3): $811 Mln. vs. $899 Mln. last year. -EPS (Q3): $2.57 vs. $2.81 last year. -Revenue (Q3): $7.86 Bln vs. $8.97 Bln last 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) - Deere And Co (DE) announced a profit for third quarter that declined from last year. Deere And Co earnings at a glance: -Earnings (Q3): $811 Mln. The company's bottom line came in at $811 million, or $2.57 per share.
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(RTTNews) - Deere And Co (DE) announced a profit for third quarter that declined from last year. Deere And Co earnings at a glance: -Earnings (Q3): $811 Mln. This compares with $899 million, or $2.81 per share, in last year's third quarter.
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(RTTNews) - Deere And Co (DE) announced a profit for third quarter that declined from last year. Deere And Co earnings at a glance: -Earnings (Q3): $811 Mln. This compares with $899 million, or $2.81 per share, in last year's third quarter.
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Deere And Co earnings at a glance: -Earnings (Q3): $811 Mln. (RTTNews) - Deere And Co (DE) announced a profit for third quarter that declined from last year. The company's bottom line came in at $811 million, or $2.57 per share.
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2b45fbd7-747b-45fc-b9fa-aae7a83dc8a4
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721665.0
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2020-08-21 00:00:00 UTC
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Deere lifts full-year earnings forecast on resilient farm equipment demand
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DE
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https://www.nasdaq.com/articles/deere-lifts-full-year-earnings-forecast-on-resilient-farm-equipment-demand-2020-08-21
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nan
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nan
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CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N on Friday revised up its full-year earnings forecast after reporting a smaller-than-expected decline in quarterly profit, as replacement demand for an aging fleet and aggressive government subsidy payments helped underpin farm equipment sales.
The Moline, Illinois-based company now expects net income of about $2.25 billion for the full year, higher than $1.6 billion-$2 billion estimated earlier. For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year.
Analysts surveyed by Refinitiv, on average, expected earnings of $1.26 per share.
(Reporting by Rajesh Kumar Singh; Editing by Alex Richardson)
((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, Aug 21 (Reuters) - Deere & Co DE.N on Friday revised up its full-year earnings forecast after reporting a smaller-than-expected decline in quarterly profit, as replacement demand for an aging fleet and aggressive government subsidy payments helped underpin farm equipment sales. For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year. Analysts surveyed by Refinitiv, on average, expected earnings of $1.26 per share.
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For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year. CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N on Friday revised up its full-year earnings forecast after reporting a smaller-than-expected decline in quarterly profit, as replacement demand for an aging fleet and aggressive government subsidy payments helped underpin farm equipment sales. Analysts surveyed by Refinitiv, on average, expected earnings of $1.26 per share.
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CHICAGO, Aug 21 (Reuters) - Deere & Co DE.N on Friday revised up its full-year earnings forecast after reporting a smaller-than-expected decline in quarterly profit, as replacement demand for an aging fleet and aggressive government subsidy payments helped underpin farm equipment sales. For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year. (Reporting by Rajesh Kumar Singh; Editing by Alex Richardson) ((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, Aug 21 (Reuters) - Deere & Co DE.N on Friday revised up its full-year earnings forecast after reporting a smaller-than-expected decline in quarterly profit, as replacement demand for an aging fleet and aggressive government subsidy payments helped underpin farm equipment sales. For the quarter ended on Aug. 2, it reported earnings of $2.57 per share compared with $2.81 per share last year. The Moline, Illinois-based company now expects net income of about $2.25 billion for the full year, higher than $1.6 billion-$2 billion estimated earlier.
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5fda4bac-29f4-4937-94c6-c07f6597eddb
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721666.0
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2020-08-21 00:00:00 UTC
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Deere And Co Q3 20 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-q3-20-earnings-conference-call-at-10%3A00-am-et-2020-08-21
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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 August 21, 2020, to discuss Q3 20 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 August 21, 2020, to discuss Q3 20 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 August 21, 2020, to discuss Q3 20 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 August 21, 2020, to discuss Q3 20 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 August 21, 2020, to discuss Q3 20 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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ce81933e-1094-4438-857d-6b7804d0e631
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721667.0
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2020-08-20 00:00:00 UTC
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Pre-Market Earnings Report for August 21, 2020 : PDD, DE, FL, DESP, GASS
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-21-2020-%3A-pdd-de-fl-desp-gass-2020-08-20
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nan
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nan
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The following companies are expected to report earnings prior to market open on 08/21/2020. Visit our Earnings Calendar for a full list of expected earnings releases.
Pinduoduo Inc. (PDD) is reporting for the quarter ending June 30, 2020. The internet company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.18. This value represents a 50.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for PDD is -97.90 vs. an industry ratio of 490.80.
Deere & Company (DE) is reporting for the quarter ending July 31, 2020. The farm machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.26. This value represents a 53.51% decrease compared to the same quarter last year. DE missed the consensus earnings per share in the 3rd calendar quarter of 2019 by -3.21%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DE is 30.43 vs. an industry ratio of 19.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Foot Locker, Inc. (FL) is reporting for the quarter ending July 31, 2020. The retail (shoe) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.69. This value represents a 4.55% increase compared to the same quarter last year. FL missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -294.12%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for FL is 12.56 vs. an industry ratio of 15.50.
Despegar.com, Corp. (DESP) is reporting for the quarter ending June 30, 2020. The transportation services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.47. This value represents a 104.35% decrease compared to the same quarter last year. In the past year DESP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DESP is -10.51 vs. an industry ratio of 10.00.
StealthGas, Inc. (GASS) is reporting for the quarter ending June 30, 2020. The shipping company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.02. This value represents a 100.00% increase compared to the same quarter last year. In the past year GASS has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 100%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for GASS is 16.93 vs. an industry ratio of 8.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and 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 value represents a 50.00% decrease compared to the same quarter last year. Deere & Company (DE) is reporting for the quarter ending July 31, 2020. This value represents a 53.51% decrease compared to the same quarter last year.
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Zacks Investment Research reports that the 2020 Price to Earnings ratio for DE is 30.43 vs. an industry ratio of 19.50, implying that they will have a higher earnings growth than their competitors in the same industry. This value represents a 50.00% decrease compared to the same quarter last year. Deere & Company (DE) is reporting for the quarter ending July 31, 2020.
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Zacks Investment Research reports that the 2020 Price to Earnings ratio for DE is 30.43 vs. an industry ratio of 19.50, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DESP is -10.51 vs. an industry ratio of 10.00. This value represents a 50.00% decrease compared to the same quarter last year.
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DE missed the consensus earnings per share in the 3rd calendar quarter of 2019 by -3.21%. This value represents a 50.00% decrease compared to the same quarter last year. Deere & Company (DE) is reporting for the quarter ending July 31, 2020.
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1607a9c1-49e9-4bf7-b262-ae65e604c126
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721668.0
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2020-08-20 00:00:00 UTC
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DE October 16th Options Begin Trading
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DE
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https://www.nasdaq.com/articles/de-october-16th-options-begin-trading-2020-08-20
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the October 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new October 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $190.00 strike price has a current bid of $9.45. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $190.00, but will also collect the premium, putting the cost basis of the shares at $180.55 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $191.42/share today.
Because the $190.00 strike represents an approximate 1% 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 4.97% return on the cash commitment, or 31.85% 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 $190.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $195.00 strike price has a current bid of $7.25. If an investor was to purchase shares of DE stock at the current price level of $191.42/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $195.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.66% if the stock gets called away at the October 16th 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 $195.00 strike highlighted in red:
Considering the fact that the $195.00 strike represents an approximate 2% 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 3.79% boost of extra return to the investor, or 24.25% 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 $191.42) to be 45%. 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 $195.00 strike highlighted in red: Considering the fact that the $195.00 strike represents an approximate 2% 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 begin trading today, for the October 16th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $195.00 strike highlighted in red: Considering the fact that the $195.00 strike represents an approximate 2% 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 begin trading today, for the October 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new October 16th 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 $190.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $195.00 strike price has a current bid of $7.25. Below is a chart showing DE's trailing twelve month trading history, with the $195.00 strike highlighted in red: Considering the fact that the $195.00 strike represents an approximate 2% 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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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $190.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $195.00 strike price has a current bid of $7.25. Below is a chart showing DE's trailing twelve month trading history, with the $195.00 strike highlighted in red: Considering the fact that the $195.00 strike represents an approximate 2% 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 begin trading today, for the October 16th expiration.
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7b66fa7e-fb05-4fd3-bd9f-2da56a16ac71
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721669.0
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2020-08-16 00:00:00 UTC
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Futures point to modest Wall Street gains ahead of big retail earnings week
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DE
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https://www.nasdaq.com/articles/futures-point-to-modest-wall-street-gains-ahead-of-big-retail-earnings-week-2020-08-16
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nan
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nan
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NEW YORK, Aug 16 (Reuters) - U.S. stock index futures indicate Wall Street will make moderate gains on Monday as retail earnings queue up and with housing data in the offing.
Second-quarter earnings season is mostly over, with major retailers yet to post results. Walmart Inc WMT.N, Home Depot Inc HD.N, Kohls Corp KSS.N, Lowe's Companies Inc LOW.N, Target Corp TGT.N are among the retailers on deck, with industrial Deere & Co DE.N set to wrap up the week.
As of Friday, 457 companies in the S&P 500 have posted results, of which 81.4% have come in above a decidedly low expectations bar, according to Refinitiv data.
Housing starts and existing home sales data releases are due this week, both of which are expected to have increased, lending further evidence that housing is bouncing back from a pandemic-induced recession faster than other sectors.
Market participants remain hopeful that Washington will pass a fresh stimulus package, weeks after emergency unemployment benefits expired for millions of Americans.
* S&P 500 e-minis EScv1 were up 7.25 points, or 0.22%, with 7,955 contracts changing hands.
* Nasdaq 100 e-minis NQcv1 were up 23.25 points, or 0.21%, in volume of 2,919 contracts.
* Dow e-minis 1YMcv1 were up 56 points, or 0.2%, with 2,243 contracts changing hands.
* Benchmark 10-year note futures TYv1 last rose 1/32 in price.
(Reporting by Stephen Culp; Editing by Sam Holmes)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NEW YORK, Aug 16 (Reuters) - U.S. stock index futures indicate Wall Street will make moderate gains on Monday as retail earnings queue up and with housing data in the offing. Housing starts and existing home sales data releases are due this week, both of which are expected to have increased, lending further evidence that housing is bouncing back from a pandemic-induced recession faster than other sectors. Walmart Inc WMT.N, Home Depot Inc HD.N, Kohls Corp KSS.N, Lowe's Companies Inc LOW.N, Target Corp TGT.N are among the retailers on deck, with industrial Deere & Co DE.N set to wrap up the week.
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Walmart Inc WMT.N, Home Depot Inc HD.N, Kohls Corp KSS.N, Lowe's Companies Inc LOW.N, Target Corp TGT.N are among the retailers on deck, with industrial Deere & Co DE.N set to wrap up the week. NEW YORK, Aug 16 (Reuters) - U.S. stock index futures indicate Wall Street will make moderate gains on Monday as retail earnings queue up and with housing data in the offing. As of Friday, 457 companies in the S&P 500 have posted results, of which 81.4% have come in above a decidedly low expectations bar, according to Refinitiv data.
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NEW YORK, Aug 16 (Reuters) - U.S. stock index futures indicate Wall Street will make moderate gains on Monday as retail earnings queue up and with housing data in the offing. Walmart Inc WMT.N, Home Depot Inc HD.N, Kohls Corp KSS.N, Lowe's Companies Inc LOW.N, Target Corp TGT.N are among the retailers on deck, with industrial Deere & Co DE.N set to wrap up the week. Housing starts and existing home sales data releases are due this week, both of which are expected to have increased, lending further evidence that housing is bouncing back from a pandemic-induced recession faster than other sectors.
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As of Friday, 457 companies in the S&P 500 have posted results, of which 81.4% have come in above a decidedly low expectations bar, according to Refinitiv data. Housing starts and existing home sales data releases are due this week, both of which are expected to have increased, lending further evidence that housing is bouncing back from a pandemic-induced recession faster than other sectors. NEW YORK, Aug 16 (Reuters) - U.S. stock index futures indicate Wall Street will make moderate gains on Monday as retail earnings queue up and with housing data in the offing.
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b94850b7-3495-4dfa-b64e-8a69bdcfe058
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721670.0
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2020-08-12 00:00:00 UTC
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Notable Wednesday Option Activity: GPI, BIG, DE
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DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-gpi-big-de-2020-08-12
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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 Group 1 Automotive, Inc. (Symbol: GPI), where a total volume of 3,795 contracts has been traded thus far today, a contract volume which is representative of approximately 379,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 132.3% of GPI's average daily trading volume over the past month, of 286,820 shares. Particularly high volume was seen for the $80 strike put option expiring August 21, 2020, with 1,115 contracts trading so far today, representing approximately 111,500 underlying shares of GPI. Below is a chart showing GPI's trailing twelve month trading history, with the $80 strike highlighted in orange:
Big Lots, Inc. (Symbol: BIG) saw options trading volume of 15,048 contracts, representing approximately 1.5 million underlying shares or approximately 118% of BIG's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $50 strike call option expiring August 21, 2020, with 7,433 contracts trading so far today, representing approximately 743,300 underlying shares of BIG. Below is a chart showing BIG's trailing twelve month trading history, with the $50 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 14,017 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 109.2% of DE's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $185 strike put option expiring September 18, 2020, with 1,777 contracts trading so far today, representing approximately 177,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $185 strike highlighted in orange:
For the various different available expirations for GPI options, BIG 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 $80 strike put option expiring August 21, 2020, with 1,115 contracts trading so far today, representing approximately 111,500 underlying shares of GPI. Particularly high volume was seen for the $50 strike call option expiring August 21, 2020, with 7,433 contracts trading so far today, representing approximately 743,300 underlying shares of BIG. Particularly high volume was seen for the $185 strike put option expiring September 18, 2020, with 1,777 contracts trading so far today, representing approximately 177,700 underlying shares of DE.
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Particularly high volume was seen for the $80 strike put option expiring August 21, 2020, with 1,115 contracts trading so far today, representing approximately 111,500 underlying shares of GPI. Below is a chart showing GPI's trailing twelve month trading history, with the $80 strike highlighted in orange: Big Lots, Inc. (Symbol: BIG) saw options trading volume of 15,048 contracts, representing approximately 1.5 million underlying shares or approximately 118% of BIG's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing BIG's trailing twelve month trading history, with the $50 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 14,017 contracts thus far today.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Group 1 Automotive, Inc. (Symbol: GPI), where a total volume of 3,795 contracts has been traded thus far today, a contract volume which is representative of approximately 379,500 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $80 strike put option expiring August 21, 2020, with 1,115 contracts trading so far today, representing approximately 111,500 underlying shares of GPI. Below is a chart showing GPI's trailing twelve month trading history, with the $80 strike highlighted in orange: Big Lots, Inc. (Symbol: BIG) saw options trading volume of 15,048 contracts, representing approximately 1.5 million underlying shares or approximately 118% of BIG's average daily trading volume over the past month, of 1.3 million shares.
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Particularly high volume was seen for the $80 strike put option expiring August 21, 2020, with 1,115 contracts trading so far today, representing approximately 111,500 underlying shares of GPI. Below is a chart showing GPI's trailing twelve month trading history, with the $80 strike highlighted in orange: Big Lots, Inc. (Symbol: BIG) saw options trading volume of 15,048 contracts, representing approximately 1.5 million underlying shares or approximately 118% of BIG's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $50 strike call option expiring August 21, 2020, with 7,433 contracts trading so far today, representing approximately 743,300 underlying shares of BIG.
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671d19e1-dc16-45f9-ac8b-519139b4225a
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721671.0
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2020-08-10 00:00:00 UTC
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Why Shares in Deere Surged in July
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DE
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https://www.nasdaq.com/articles/why-shares-in-deere-surged-in-july-2020-08-10
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nan
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nan
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What happened
Shares in agricultural and infrastructural equipment maker Deere (NYSE: DE) rose 12.2% in July, according to data provided by S&P Global Market Intelligence. The stock price rise comes as Wall Street analysts and the market shifted toward a more positive sentiment for the company's prospects.
The word "sentiment" is very important when discussing Deere, and not just from the perspective of investors buying the stock. In reality, the company's sales outlook will largely depend on farmers' sentiment toward buying new equipment. Unfortunately, the COVID-19 pandemic has negatively impacted end demand in 2020 and, therefore, sentiment toward buying new agricultural equipment. Similarly, the shutdowns imposed on the global economy have significantly impacted sales in Deere's construction and forestry segment.
Image source: Getty Images.
All told, on the company's first-quarterearnings callin May, Deere was forced to reduce its estimate for full-year net income from $2.7 billion-$3.1 billion to $1.6 billion-$2 billion.
Clearly, it's going to be a difficult environment in the near term, but there's a growing sense that Deere is over the worst of the news flow, and a few Wall Street analysts raised their price forecasts for the stock in July. In a nutshell, sentiment toward buying new and used farming equipment appears to have improved over the summer. In addition, thinking longer term, Deere still has a number of positive catalysts behind it:
U.S. farm income is being supported by government aid.
The phase 1 trade deal with China should support improved sales of U.S. grains and oilseeds.
Deere has ongoing growth prospects through the adoption of its precision agriculture solutions.
It's widely believed that the U.S. fleet of agricultural equipment is in need of replacement -- something that should encourage demand when conditions normalize.
So what
Deere is set to give its third-quarter earnings on Aug. 21, and the market will be keenly watching to see if there's any improvement in underlying global conditions. The rise in the stock price in July certainly suggests that Deere may well be over the worst, and if so, it's possible that the company could be set for a multiyear recovery in sales and earnings.
Now what
Investors will have to wait and see until the upcoming earnings report is released. If sentiment toward buying farm equipment really has improved, then it's possible that management will upgrade its full-year forecasts. Thus, investors' focus will turn toward Deere's long-term prospects, and that could be good thing for the stock price.
10 stocks we like better than Deere & Company
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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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What happened Shares in agricultural and infrastructural equipment maker Deere (NYSE: DE) rose 12.2% in July, according to data provided by S&P Global Market Intelligence. Clearly, it's going to be a difficult environment in the near term, but there's a growing sense that Deere is over the worst of the news flow, and a few Wall Street analysts raised their price forecasts for the stock in July. In addition, thinking longer term, Deere still has a number of positive catalysts behind it: U.S. farm income is being supported by government aid.
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All told, on the company's first-quarterearnings callin May, Deere was forced to reduce its estimate for full-year net income from $2.7 billion-$3.1 billion to $1.6 billion-$2 billion. Clearly, it's going to be a difficult environment in the near term, but there's a growing sense that Deere is over the worst of the news flow, and a few Wall Street analysts raised their price forecasts for the stock in July. What happened Shares in agricultural and infrastructural equipment maker Deere (NYSE: DE) rose 12.2% in July, according to data provided by S&P Global Market Intelligence.
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The rise in the stock price in July certainly suggests that Deere may well be over the worst, and if so, it's possible that the company could be set for a multiyear recovery in sales and earnings. 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 in agricultural and infrastructural equipment maker Deere (NYSE: DE) rose 12.2% in July, according to data provided by S&P Global Market Intelligence.
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Unfortunately, the COVID-19 pandemic has negatively impacted end demand in 2020 and, therefore, sentiment toward buying new agricultural equipment. What happened Shares in agricultural and infrastructural equipment maker Deere (NYSE: DE) rose 12.2% in July, according to data provided by S&P Global Market Intelligence. The word "sentiment" is very important when discussing Deere, and not just from the perspective of investors buying the stock.
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3ceea035-bb05-4950-bd7c-f128dab1247c
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721672.0
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2020-08-05 00:00:00 UTC
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Notable Wednesday Option Activity: DE, FLIR, NEM
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DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-de-flir-nem-2020-08-05
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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 Deere & Co. (Symbol: DE), where a total volume of 5,096 contracts has been traded thus far today, a contract volume which is representative of approximately 509,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 41.9% of DE's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $180 strike call option expiring August 14, 2020, with 341 contracts trading so far today, representing approximately 34,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $180 strike highlighted in orange:
FLIR Systems, Inc. (Symbol: FLIR) options are showing a volume of 4,175 contracts thus far today. That number of contracts represents approximately 417,500 underlying shares, working out to a sizeable 41% of FLIR's average daily trading volume over the past month, of 1.0 million shares. Particularly high volume was seen for the $45 strike call option expiring August 21, 2020, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of FLIR. Below is a chart showing FLIR's trailing twelve month trading history, with the $45 strike highlighted in orange:
And Newmont Corp (Symbol: NEM) options are showing a volume of 31,280 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 40.3% of NEM's average daily trading volume over the past month, of 7.8 million shares. Particularly high volume was seen for the $70 strike call option expiring August 07, 2020, with 2,871 contracts trading so far today, representing approximately 287,100 underlying shares of NEM. Below is a chart showing NEM's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for DE options, FLIR options, or NEM 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 $180 strike call option expiring August 14, 2020, with 341 contracts trading so far today, representing approximately 34,100 underlying shares of DE. Particularly high volume was seen for the $45 strike call option expiring August 21, 2020, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of FLIR. Particularly high volume was seen for the $70 strike call option expiring August 07, 2020, with 2,871 contracts trading so far today, representing approximately 287,100 underlying shares of NEM.
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Below is a chart showing DE's trailing twelve month trading history, with the $180 strike highlighted in orange: FLIR Systems, Inc. (Symbol: FLIR) options are showing a volume of 4,175 contracts thus far today. That number of contracts represents approximately 417,500 underlying shares, working out to a sizeable 41% of FLIR's average daily trading volume over the past month, of 1.0 million shares. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 40.3% of NEM's average daily trading volume over the past month, of 7.8 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 Deere & Co. (Symbol: DE), where a total volume of 5,096 contracts has been traded thus far today, a contract volume which is representative of approximately 509,600 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $180 strike call option expiring August 14, 2020, with 341 contracts trading so far today, representing approximately 34,100 underlying shares of DE. Particularly high volume was seen for the $45 strike call option expiring August 21, 2020, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of FLIR.
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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 5,096 contracts has been traded thus far today, a contract volume which is representative of approximately 509,600 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $45 strike call option expiring August 21, 2020, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of FLIR. Particularly high volume was seen for the $70 strike call option expiring August 07, 2020, with 2,871 contracts trading so far today, representing approximately 287,100 underlying shares of NEM.
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4bbb5f8b-6df2-4762-82d2-a998ef6dcd1f
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721673.0
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2020-07-27 00:00:00 UTC
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3 Robotics Stocks That Will Make People’s Lives Easier
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https://www.nasdaq.com/articles/3-robotics-stocks-that-will-make-peoples-lives-easier-2020-07-27
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Robotics stocks represent one of the most exciting investment prospects for stock buyers. The increasing importance of information technology in manufacturing and the development in the concept of the industrial “internet of things” are likely to power robotics stocks to a new era of growth.
According to the International Data Corp., the total spending on robotics and drones is expected to top $128.7 billion in 2020, up 17.1% from 2019. Yearly sales numbers in the industry are expected to reach $241.4 billion by 2023 and are likely to grow at a CAGR of 19.8%.
7 Growth Stocks Prepared for a Summer Surge
There is a long list of robotics stocks for investors to choose from. This article will specifically cover the most innovative ones, which will make people’s lives easier. These stocks include the following:
Deere (NYSE:DE)
Zebra (NASDAQ:ZBRA)
Cognex (NASDAQ:CGNX)
Robotics Stocks: Deere (DE)
Source: mark stephens photography / Shutterstock.com
Deere is an agricultural and construction machinery equipment manufacturer which is a leader in the precision agriculture market. The company’s solutions include onboard computers, IoT sensors and telematics solutions that help farmers in steering farming equipment.
The company’s solutions provide high-quality data and guidance for farmers to improve performance and remotely manage equipment. For the past couple of years or so, Deere has been pushing into data-driven analytical tools and automation. It’s equipment now uses GPS systems, unmanned aerial equipment/drones, 4G LTE modems and cloud integration
With the world population expected to reach up to 10 billion people by 2050, it is imperative to grow 50% more food than what we are growing now. Therefore, companies such as Deere will prove instrumental in increasing land productivity.
DE stock is trading at about $176 and has an impressive return on equity of about 23%. Price targets for the stock are going as high as $200, though the mean targets are slightly lower than its current price. The stock has grown 8% year-to-date and 14% this past month. Therefore, its one of the better investments in the robotics world, and now is a good time to add it to your portfolio.
Zebra (ZBRA)
Source: Shutterstock
Zebra Technologies is one of the major players in the diversified machinery segment. Its products include mobile computers, scanners, imagers, RFID products, location technologies and others. It has become an innovator in the provision of different solutions that enable businesses to gain a competitive edge. Moreover, it offers workflow and design consultation to analyze existing technology infrastructure and business processes.
The company recently unveiled its SmartSight solutions, an intelligent automation solution that improves front-of-store operations and enhances the shopper experience. The company’s latest NRF 2020 robot utilizes the technology to identify out-of-stock conditions, pricing and planogram issues on the shelf.
Zebra generates 80% of its revenue from North America and EMEA countries, which went into lockdown in March. However, as lockdown restrictions ease across the globe, the company expects a turn-around in the latter half of the year.
7 Growth Stocks Prepared for a Summer Surge
ZBRA stock is trading at around $273 and with a price-earnings ratio of about 28.7. Upward price targets for the stock are going at $300, which makes it one of the more valuable stocks in the stock market. With a one-year return of roughly 38%, the stock could potentially become a great entry in your portfolio.
Cognex (CGNX)
Source: Shutterstock
Cognex offers a range of solutions that help in monitoring and controlling different robotic and automated processes. The company’s 2D and 3D vision services enable industries to carry out various activities. The company recently expanded into high growth markets, including logistics and consumer electronics. Cognex is also making inroads in AI with its computer vision technology, which experts believe to be a market of around $10 billion.
Cognex recently announced its first-quarter results, which naturally took a hit due to the Covid 19 pandemic. However, revenue increased by 4% compared to the fourth quarter of 2019 and it ended the quarter with $845 million in cash and investments. Management has withdrawn guidance for the year due to the uncertainties surrounding the market conditions. However, as things start to improve, expect the company to bounce back from a relatively weak first-quarter showing.
CGNX stock is trading around its high estimates at roughly $65. It has a healthy P/E ratio of 57.8 and a return on equity of more than 15.2%. I expect the stock’s price to increase in the latter half of the year with a key focus on its logistics performance.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. He does not directly own the securities mentioned above. As of this writing, Muslim Farooque did not hold a position in any of the aforementioned securities.
The post 3 Robotics Stocks That Will Make People’s Lives Easier 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 increasing importance of information technology in manufacturing and the development in the concept of the industrial “internet of things” are likely to power robotics stocks to a new era of growth. The company’s solutions provide high-quality data and guidance for farmers to improve performance and remotely manage equipment. The company’s latest NRF 2020 robot utilizes the technology to identify out-of-stock conditions, pricing and planogram issues on the shelf.
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These stocks include the following: Deere (NYSE:DE) Zebra (NASDAQ:ZBRA) Cognex (NASDAQ:CGNX) Robotics Stocks: Deere (DE) Source: mark stephens photography / Shutterstock.com Deere is an agricultural and construction machinery equipment manufacturer which is a leader in the precision agriculture market. The increasing importance of information technology in manufacturing and the development in the concept of the industrial “internet of things” are likely to power robotics stocks to a new era of growth. The company’s solutions include onboard computers, IoT sensors and telematics solutions that help farmers in steering farming equipment.
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These stocks include the following: Deere (NYSE:DE) Zebra (NASDAQ:ZBRA) Cognex (NASDAQ:CGNX) Robotics Stocks: Deere (DE) Source: mark stephens photography / Shutterstock.com Deere is an agricultural and construction machinery equipment manufacturer which is a leader in the precision agriculture market. The increasing importance of information technology in manufacturing and the development in the concept of the industrial “internet of things” are likely to power robotics stocks to a new era of growth. The company’s solutions include onboard computers, IoT sensors and telematics solutions that help farmers in steering farming equipment.
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The company’s solutions provide high-quality data and guidance for farmers to improve performance and remotely manage equipment. The increasing importance of information technology in manufacturing and the development in the concept of the industrial “internet of things” are likely to power robotics stocks to a new era of growth. These stocks include the following: Deere (NYSE:DE) Zebra (NASDAQ:ZBRA) Cognex (NASDAQ:CGNX) Robotics Stocks: Deere (DE) Source: mark stephens photography / Shutterstock.com Deere is an agricultural and construction machinery equipment manufacturer which is a leader in the precision agriculture market.
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721674.0
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2020-07-16 00:00:00 UTC
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Notable Thursday Option Activity: DLTR, DE, BLL
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-dltr-de-bll-2020-07-16
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Dollar Tree Inc (Symbol: DLTR), where a total volume of 11,793 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 48.7% of DLTR's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $82.50 strike put option expiring August 07, 2020, with 1,200 contracts trading so far today, representing approximately 120,000 underlying shares of DLTR. Below is a chart showing DLTR's trailing twelve month trading history, with the $82.50 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 6,590 contracts, representing approximately 659,000 underlying shares or approximately 46.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $172.50 strike call option expiring July 24, 2020, with 1,328 contracts trading so far today, representing approximately 132,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $172.50 strike highlighted in orange:
And Ball Corp (Symbol: BLL) options are showing a volume of 7,688 contracts thus far today. That number of contracts represents approximately 768,800 underlying shares, working out to a sizeable 40.5% of BLL's average daily trading volume over the past month, of 1.9 million shares. Particularly high volume was seen for the $70 strike call option expiring August 21, 2020, with 2,193 contracts trading so far today, representing approximately 219,300 underlying shares of BLL. Below is a chart showing BLL's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for DLTR options, DE options, or BLL 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 $82.50 strike put option expiring August 07, 2020, with 1,200 contracts trading so far today, representing approximately 120,000 underlying shares of DLTR. Especially high volume was seen for the $172.50 strike call option expiring July 24, 2020, with 1,328 contracts trading so far today, representing approximately 132,800 underlying shares of DE. Particularly high volume was seen for the $70 strike call option expiring August 21, 2020, with 2,193 contracts trading so far today, representing approximately 219,300 underlying shares of BLL.
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Especially high volume was seen for the $82.50 strike put option expiring August 07, 2020, with 1,200 contracts trading so far today, representing approximately 120,000 underlying shares of DLTR. Below is a chart showing DLTR's trailing twelve month trading history, with the $82.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 6,590 contracts, representing approximately 659,000 underlying shares or approximately 46.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $172.50 strike highlighted in orange: And Ball Corp (Symbol: BLL) options are showing a volume of 7,688 contracts thus far today.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Dollar Tree Inc (Symbol: DLTR), where a total volume of 11,793 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 DLTR's trailing twelve month trading history, with the $82.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 6,590 contracts, representing approximately 659,000 underlying shares or approximately 46.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $70 strike call option expiring August 21, 2020, with 2,193 contracts trading so far today, representing approximately 219,300 underlying shares of BLL.
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Especially high volume was seen for the $82.50 strike put option expiring August 07, 2020, with 1,200 contracts trading so far today, representing approximately 120,000 underlying shares of DLTR. Below is a chart showing DLTR's trailing twelve month trading history, with the $82.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 6,590 contracts, representing approximately 659,000 underlying shares or approximately 46.9% of DE's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing BLL's trailing twelve month trading history, with the $70 strike highlighted in orange: For the various different available expirations for DLTR options, DE options, or BLL options, visit StockOptionsChannel.com.
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65d7c44e-907d-4c1a-9308-432a5239706a
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721675.0
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2020-07-15 00:00:00 UTC
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4 Machinery Stocks That Are Ready To Move Higher
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https://www.nasdaq.com/articles/4-machinery-stocks-that-are-ready-to-move-higher-2020-07-15
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The market for construction equipment is huge. According to Statista, sales of construction equipment worldwide are forecast to reach $113 billion this year. And North America (U.S., Canada and Mexico) is the second largest market for construction and machinery equipment sales worldwide, after number one ranked China.
While the market will no doubt slow this year along with most sectors of the economy due to the Covid-19 pandemic, it nevertheless remains a massive opportunity for investors, both within the U.S. and overseas. Developing countries such as India and China are currently driving demand for construction and industrial machinery equipment due to multi-billion dollar infrastructure projects that are being funded by the country’s governments.
The market for agriculture machinery and equipment is equally large. The global agriculture equipment market is forecast to reach $227.8 billion by 2026, representing a compound annual growth rate (CAGR) of 7.2% during the forecast period, according to Fortune Business Insights.
8 Presidential Election Stocks to Buy in Case Trump Wins Again
Given the size of the market and enormous growth potential over a sustained period of time, investors would be smart to consider machinery companies that are well-positioned to capitalize on the current opportunity. Here are 4 machinery stocks that are ready to move higher in the coming months and years:
Caterpillar (NYSE:CAT)
Komatsu (OTCMKTS: KMTUY)
Deere & Company (NYSE:DE)
Manitowoc Company (NYSE:MTW)
Companies that specialize in manufacturing machinery and equipment for use in construction, agriculture and industrial output are becoming more technology focused than ever before — relying on connectivity, autonomous vehicles, robots and drones to accomplish tasks that used to be done by dozens of human workers.
Top Machinery Stocks 2020: Caterpillar (CAT)
Source: aapsky / Shutterstock.com
We’ll start off with the world’s largest construction equipment manufacturer. A Fortune 100 company, Caterpillar manufactures heavy-duty construction vehicles, as well as the engines that power those vehicles and machinery.
Founded in 1925, the CAT logo is today one of the most recognizable and valuable brands in the construction and heavy equipment industries. The companies stock looks like a bargain right now at $127 a share.
While CAT stock has recovered from a March low of $95.50, it is still trading well below its 52-week high of $150.55 and well off its all-time peak of $170.30 per share. In fact, Caterpillar shares are now trading at their cheapest valuation since 2012.
As recently as July 8th, CAT stock received an upgrade on Wednesday from Wall Street firm SumZero.com, which sees value in the company and raised its price target on the company’s shares to $164.00. Bank of America also recently upgraded CAT stock to “Hold” from “Sell,” noting improving fortunes for the company as the U.S. economy reopens and more construction projects get underway.
Analysts note that Caterpillar has a history of generating solid and consistent profits for investors. Since 2016, the company has grown revenue by 12% compounded annually and core earnings have grown at a compound annual rate of 54%. And despite the Covid-19 shutdown, Caterpillar is well-positioned to weather the storm.
Operating in a cyclical business for nearly 100 years, management at the company are always prepared for an economic downturn. At the end of the year’s first quarter, CAT had $7.1 billion of cash on hand and available global credit facilities worth $10.5 billion — which is plenty to see Caterpillar through a second wave of the pandemic.
Investors should also take note of Caterpillar’s impressive dividend yield of 3.6%, which the company has maintained even as other firms have slashed or suspended their dividend this year amidst the economic turmoil. Caterpillar is on track to pay an annual dividend of $4.12 per share this year and has 550 million shares issued. That equates to a total dividend payout of $2.3 billion in 2020.
While that’s a hefty payout, Caterpillar’s cash position will enable the company to maintain the dividend despite the economic downturn. On a recent call with analysts, company Chief Executive Officer Jim Umpleby said maintaining the dividend is a “priority.” The companies profitability, cash position and dividend should prove attractive to investors.
The consensus view of analysts is that CAT stock is currently undervalued. Among 21 analysts with 12-month price targtes on the stock, the median forecast is for CAT stock to reach $135.00 a share.
The high estimate is a stock price of $198.00 per share, while the low estimate is $95.00 per share. The median estimate represents a +5.82% increase from the last closing price of $127.57 per share. The current consensus among 26 polled investment analysts is to “buy” CAT stock.
Komatsu (KMTUY)
Source: Shutterstock
In terms of foreign machinery stocks, its hard to beat Komatsu of Japan, the world’s second largest manufacturer of construction and mining equipment after Caterpillar. Headquartered in Tokyo, Komatsu manufactures construction, mining and forestry equipment, as well as diesel engines and industrial equipment including press machines and generators. The company’s proximity to China means that it is involved in many of that country’s largest infrastructure projects, as well as having sizable sales in Indonesia and India.
The company’s stock has rebounded strongly since it bottomed at $14.26 a share in March and has risen 43% since then to $20.44 a share. Analysts who cover the company seem to be bullish on its prospects. Of 13 analysts that have price forecasts for Komatsu, the median target is $21.31 a share, with a high estimate of $32.49 and a low estimate of $15.75.
Five analysts have “buy” recommendations on the stock, while nine analysts say to “hold;” there are no “sell” ratings on Komatsu stock. The reason for optimism stems from the fact that Komatsu’s core business remains strong, while it is also poised to capitalize on the so called “smart construction” shift into new areas such as robotic and autonomous vehicles.
Komatsu also benefits from a stable balance sheet. The company had $2.30 billion cash on hand at the end of the first quarter, and total assets worth $33.61 billion in the same period. Meanwhile its long-term debt was a manageable $3. 77 billion.
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Like the other behemoths on this list, Komatsu is well positioned to ride out the global pandemic.
Deere & Company (DE)
Source: mark stephens photography / Shutterstock.com
We recently wrote about Deere & Company, the maker of John Deere brand agriculture equipment, as a top agriculture stock. But more than anything else, the company is a major manufacturer of heavy equipment, and not just in farming.
In addition to making agriculture machinery such as tractors and combines, Deere & Company also produces machinery and equipment that’s used in construction and forestry. And the company is a major producer of diesel engines and heavy equipment drive trains, manufacturing components such as axles, transmissions and gearboxes.
While the company’s familiar green and yellow machinery is best known for farming, the reality is that Deere & Company is a leader when it comes to technologically advanced heavy machinery that’s essential in a wide range of industries.
The company’s stock has held up well this year, recovering more than 30% from March lows and keeping pace with the S&P 500 Index. The stock is now trading close to $160 a share, and there’s a good chance that DE stock could surpass its 52-week high of $181.99 per share.
A total of 11 Wall Street analysts have 12-month price targets on DE stock, with calls ranging from a low of $145 per share to a high of $182, which would be above the one year high point. The consensus rating of analysts is to “buy” DE stock.
Driving the optimism around DE stock is the company’s focus on developing precision agriculture offerings. Increasingly, Deere & Company is building technology driven autonomous equipment that could render much of today’s standard farm equipment obsolete in coming years. In fact, some analysts now refer to Deere & Company as a robotics stock.
The company behind the John Deere brand sees the Internet of Things (IoT) as a key driver of its future growth and is deploying sensors, onboard computers and telematics solutions that enable farmers to operate farming equipment with greater efficiency and precision than ever before.
Automated guidance technology enables farmers to collect and analyze data in real time to improve planting and seeding and enhance their crop yields. Farming today has gone high-tech and Deere & Company is leading the way.
Data from the company suggests there is plenty of demand for the increasingly high-tech machinery they are manufacturing. According to the company, half of the customers who are able to take up their precision technology solutions are doing so, and that number is growing steadily.
Manitowoc Company (MTW)
Source: Shutterstock
Nothing says progress quite like a city skyline dotted with telescopic and tower cranes. The iconic image of cranes positioned throughout a city signifies a construction boom and economic strength. And one of the companies responsible for most of those construction cranes is the Manitowoc Company.
Founded in 1902, the company, based in Milwaukee, Wisconsin manufactures telescopic and tower cranes, as well as lattice boom crawler cranes and boom trucks that are prominent in commercial construction projects.
MTW stock has recovered nearly 50% from its 52 week low of $7.24 in April, and, at $10.17 per share, still has a ways to go to regain its pre-Covid-19 52-week high of $18.55 a share. While the stock’s recovery has been measured, there is growing interest in MTW stock as a long-term play.
Going into the second quarter, 21 hedge funds took long positions in the company’s stock, an increase of 24% from the first quarter. About three-quarters (75.55%) of the stock is owned by institutional investors.
While the consensus view of nine analysts is to “hold” MTW stock, two of those analysts recently upgraded their ratings to “buy.” The high price target on the stock is $20 per share.
The bullish case for the Manitowoc Company is that it will recover with the broader U.S. economy and benefit from the resumption of construction projects and infrastructure renewal throughout the country. In May, the company said it was anticipating lower demand due to the pandemic and that it would be reducing production levels and lowering costs to weather the slowdown and better position to capitalize on economic reopening.
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Investors should view MTW stock as a recovery play, and the share price should move higher as America reopens for business.
As of this writing, Joel Baglole did not hold any stock of the aforementioned companies.
The post 4 Machinery Stocks That Are Ready To Move Higher 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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8 Presidential Election Stocks to Buy in Case Trump Wins Again Given the size of the market and enormous growth potential over a sustained period of time, investors would be smart to consider machinery companies that are well-positioned to capitalize on the current opportunity. The company behind the John Deere brand sees the Internet of Things (IoT) as a key driver of its future growth and is deploying sensors, onboard computers and telematics solutions that enable farmers to operate farming equipment with greater efficiency and precision than ever before. According to Statista, sales of construction equipment worldwide are forecast to reach $113 billion this year.
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Here are 4 machinery stocks that are ready to move higher in the coming months and years: Caterpillar (NYSE:CAT) Komatsu (OTCMKTS: KMTUY) Deere & Company (NYSE:DE) Manitowoc Company (NYSE:MTW) Companies that specialize in manufacturing machinery and equipment for use in construction, agriculture and industrial output are becoming more technology focused than ever before — relying on connectivity, autonomous vehicles, robots and drones to accomplish tasks that used to be done by dozens of human workers. Bank of America also recently upgraded CAT stock to “Hold” from “Sell,” noting improving fortunes for the company as the U.S. economy reopens and more construction projects get underway. 8 Presidential Election Stocks to Buy in Case Trump Wins Again Investors should view MTW stock as a recovery play, and the share price should move higher as America reopens for business.
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Here are 4 machinery stocks that are ready to move higher in the coming months and years: Caterpillar (NYSE:CAT) Komatsu (OTCMKTS: KMTUY) Deere & Company (NYSE:DE) Manitowoc Company (NYSE:MTW) Companies that specialize in manufacturing machinery and equipment for use in construction, agriculture and industrial output are becoming more technology focused than ever before — relying on connectivity, autonomous vehicles, robots and drones to accomplish tasks that used to be done by dozens of human workers. Deere & Company (DE) Source: mark stephens photography / Shutterstock.com We recently wrote about Deere & Company, the maker of John Deere brand agriculture equipment, as a top agriculture stock. While the consensus view of nine analysts is to “hold” MTW stock, two of those analysts recently upgraded their ratings to “buy.” The high price target on the stock is $20 per share.
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Here are 4 machinery stocks that are ready to move higher in the coming months and years: Caterpillar (NYSE:CAT) Komatsu (OTCMKTS: KMTUY) Deere & Company (NYSE:DE) Manitowoc Company (NYSE:MTW) Companies that specialize in manufacturing machinery and equipment for use in construction, agriculture and industrial output are becoming more technology focused than ever before — relying on connectivity, autonomous vehicles, robots and drones to accomplish tasks that used to be done by dozens of human workers. While the consensus view of nine analysts is to “hold” MTW stock, two of those analysts recently upgraded their ratings to “buy.” The high price target on the stock is $20 per share. According to Statista, sales of construction equipment worldwide are forecast to reach $113 billion this year.
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2020-07-09 00:00:00 UTC
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August 28th Options Now Available For Deere (DE)
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https://www.nasdaq.com/articles/august-28th-options-now-available-for-deere-de-2020-07-09
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Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the August 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new August 28th contracts and identified one put and one call contract of particular interest.
The put contract at the $148.00 strike price has a current bid of $3.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $148.00, but will also collect the premium, putting the cost basis of the shares at $144.10 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $157.94/share today.
Because the $148.00 strike represents an approximate 6% 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 68%. 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 2.64% return on the cash commitment, or 19.24% 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 $148.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of $6.60. If an investor was to purchase shares of DE stock at the current price level of $157.94/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $160.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.48% if the stock gets called away at the August 28th 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 $160.00 strike highlighted in red:
Considering the fact that the $160.00 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 50%. 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 4.18% boost of extra return to the investor, or 30.51% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 50%, while the implied volatility in the call contract example is 49%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $157.94) to be 46%. 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 $160.00 strike highlighted in red: Considering the fact that the $160.00 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 August 28th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 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 August 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new August 28th 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 $148.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of $6.60. Below is a chart showing DE's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 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 August 28th 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 $160.00 strike highlighted in red: Considering the fact that the $160.00 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 August 28th expiration.
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721677.0
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2020-06-30 00:00:00 UTC
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4 Top Agriculture Stocks to Help Grow Your Portfolio in 2020
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https://www.nasdaq.com/articles/4-top-agriculture-stocks-to-help-grow-your-portfolio-in-2020-2020-06-30
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Agriculture companies often get overlooked by investors, which is unfortunate because there are a lot of growth opportunities in the agriculture and agri-food space. Agriculture and food, after all, are enormous parts of the U.S. economy. Here’s why investors should look at a group of stocks dubbed the “top agriculture stocks 2020.”
According to the United States Department of Agriculture, agriculture, food and related industries contribute $1.1 trillion to the country’s gross domestic product. That’s a 5.4% share. American farmers alone contribute $132.8 billion, and 22 million jobs are tied to the agricultural and food sectors — 11% of total U.S. employment.
And Americans, on average, spend 13% of their household budget each year on food.
Given the size and scope of the industry, and the fact that it literally touches everybody in the country, agriculture should have a place in every investor’s portfolio. While agriculture may seem boring compared to tech and e-commerce companies, the sector is nevertheless one that investors can depend on and understand. Here are four top agriculture stocks that can put some growth in your portfolio.
Archer-Daniels-Midland (NYSE:ADM)
Deere & Company (NYSE:DE)
Nutrien (NYSE:NTR)
Tyson Foods (NYSE:TSN)
Top Agriculture Stocks 2020: Archer-Daniels-Midland (ADM)
Source: Katherine Welles / Shutterstock.com
To say that Archer-Daniels-Midland is a good investment is an understatement. ADM stock trades at a discount to its historical valuation, offers an above-average dividend and has steadily grown that dividend for more than 40 years.
It’s the kind of company that value investors cherish. It’s substance over flash — and ADM stock would be a great addition to any portfolio.
And when it comes to agriculture, Archer-Daniels-Midland touches many parts of the sector. ADM is the largest publicly traded farmland product company in the United States. It processes cereal grains, oilseeds, corn and wheat. It also manufactures protein meal, vegetable oil, flour, ethanol and other food ingredients. And if you still want more, it buys, stores and transports agricultural commodities around the world.
Investors looking for exposure to agriculture and agri-food should buy ADM stock, which is currently trading at $38.84 per share. That’s considerably below its 52-week high of $47.20.
Why is ADM stock undervalued? First, factor in the broad market downturn. Then, consider Archer-Daniels-Midland’s growth rate has slowed over the past year, and company executives are selling shares.
However, the company’s fundamentals remain solid. Archer-Daniels-Midland’s first-quarter earnings per share rose 39% to 64 cents, beating estimates by 8 cents. The company also ended the first quarter with more than $26 billion in current assets, including $4.7 billion in cash and equivalents. Total debt stood at $12.7 billion.
When it comes to its dividend, Archer-Daniels-Midland is a true “aristocrat.” After increasing the dividend by 2.9% for its March payment, its dividend growth streak reached 45 consecutive years. The company has grown its dividend 9.6% per year over the past 10 years, which is very impressive and should be attractive to any long-term investor.
Deere & Company (DE)
Source: mark stephens photography / Shutterstock.com
Since it bottomed in March, John Deere’s stock has kept pace with the S&P 500 — rebounding 36%. The stock is now trading right around $150 a share, and many analysts are bullish that there’s more room to run. DE stock is likely to exceed its 52-week high of $181.99
John Deere is, of course, the brand name of Deere & Company, which manufactures heavy equipment for farming, agriculture and lawn care. The company also makes axles, transmissions and gearboxes for heavy equipment that is used by farmers. The John Deere logo, distinctive green and yellow colors, and slogan “Nothing runs like a Deere” are familiar to most Americans. It’s fair to say that John Deere is a household name and there is tremendous brand loyalty among consumers.
And John Deere has been performing well in recent years. Revenues grew 32% between 2017 and 2019, with net margins expanding from 7.3% to 8.3% over the same period. Yet DE stock has been sluggish over the past two years — even before Covid-19 sent prices down hard. The stock stalled largely due to a drop in crop prices that hurt farm incomes and discretionary spending on equipment, as well as a downturn in sales of construction-related equipment.
But DE stock could move higher as the U.S. economy recovers and farms regain confidence. CEO John May predicted earlier this year that the advanced age of U.S. agricultural equipment will lead to a replacement market and demand for aftermarket servicing.
A total of 11 Wall Street analysts have issued 12-month price targets for DE stock, with calls ranging from a low of $145 per share to a high of $182. The consensus rating on the stock is buy.
Nutrien (NTR)
Source: svetlichniy_igor / Shutterstock.com
Nutrien is a Canadian fertilizer company — but there’s way more to the story. Nutrien is the largest producer of potash and the third largest producer of nitrogen fertilizer in the world. The company has 2,000 retail stores, more than 20,000 employees and a market capitalization of $25 billion. It’s one of the biggest agriculture companies in the world.
The company’s stock bottomed below $24 in March and has since recovered to $33. However, NTR stock remains below its 52-week high of $55.25. Like other agriculture companies, Nutrien pays a strong dividend to shareholders. On July 17, the company will pay a dividend of 45 cents a share. In the last year, the company distributed a total of $1.80 to shareholders.
Nutrien is also poised to capitalize on a spike in world food demand, which is forecast to increase significantly in the next 30 years. Forecasts indicate the global population will grow from roughly 7.8 billion in 2020 to nearly 10 billion by 2050, meaning more demand for food and the fertilizers used to grow it. Nutrien is also benefiting from a recent jump in online sales caused by the pandemic lockdowns.
There’s currently a consensus buy rating on NTR stock, with a high price target of $62 per share — a potential 33% increase over the current share price.
Tyson Foods (TSN)
Source: Nolichuckyjake/Shutterstock
Investors interested in agri-food need look no further than Tyson Foods. The Arkansas-based company is the world’s second largest processor and marketer of chicken, beef and pork, and it exports the largest percentage of beef outside of the United States each year. Tyson Foods also owns major food brands such as Jimmy Dean, Hillshire Farm, Ball Park and State Fair.
The company has received criticism over the years for its treatment of animals and pollution record, and was especially hard hit by the Covid-19 pandemic. The disease ran through its processing plants, killing several employees in the process. If that weren’t enough, the U.S. Department of Justice recently implicated Tyson Foods in a price-fixing scheme. Tyson Foods was quick to respond and has been cooperating with federal authorities in the case in exchange for leniency.
TSN stock fell nearly 50% during the pandemic’s peak in March and April. And its recovery has been slow. TSN stock looks attractive at $58.28 a share, well below its January peak of $94.24. And the company’s financials point to a potential bounce. Analysts forecast that, over the next five years, Tyson Foods’ average earnings will increase by 14% a year. Over the last year, prices for meat, poultry and fish rose by 10%, according to the Bureau of Labor Statistics.
As with other companies on this list, Tyson Foods has treated shareholders well over the years, with an annual dividend of $1.68 per share. Tyson Foods has raised its dividend 12% over the past year, and the percentage of profits going to the dividend payout is nearly 40%, which is extremely generous. Investors with a long-term horizon who seek dividend income should definitely consider buying TSN stock.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia. As of this writing, Joel Baglole did not hold any stock of the aforementioned companies.
The post 4 Top Agriculture Stocks to Help Grow Your Portfolio in 2020 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CEO John May predicted earlier this year that the advanced age of U.S. agricultural equipment will lead to a replacement market and demand for aftermarket servicing. A total of 11 Wall Street analysts have issued 12-month price targets for DE stock, with calls ranging from a low of $145 per share to a high of $182. Here’s why investors should look at a group of stocks dubbed the “top agriculture stocks 2020.” According to the United States Department of Agriculture, agriculture, food and related industries contribute $1.1 trillion to the country’s gross domestic product.
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Here’s why investors should look at a group of stocks dubbed the “top agriculture stocks 2020.” According to the United States Department of Agriculture, agriculture, food and related industries contribute $1.1 trillion to the country’s gross domestic product. Archer-Daniels-Midland (NYSE:ADM) Deere & Company (NYSE:DE) Nutrien (NYSE:NTR) Tyson Foods (NYSE:TSN) Top Agriculture Stocks 2020: Archer-Daniels-Midland (ADM) Source: Katherine Welles / Shutterstock.com To say that Archer-Daniels-Midland is a good investment is an understatement. While agriculture may seem boring compared to tech and e-commerce companies, the sector is nevertheless one that investors can depend on and understand.
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Here’s why investors should look at a group of stocks dubbed the “top agriculture stocks 2020.” According to the United States Department of Agriculture, agriculture, food and related industries contribute $1.1 trillion to the country’s gross domestic product. Archer-Daniels-Midland (NYSE:ADM) Deere & Company (NYSE:DE) Nutrien (NYSE:NTR) Tyson Foods (NYSE:TSN) Top Agriculture Stocks 2020: Archer-Daniels-Midland (ADM) Source: Katherine Welles / Shutterstock.com To say that Archer-Daniels-Midland is a good investment is an understatement. While agriculture may seem boring compared to tech and e-commerce companies, the sector is nevertheless one that investors can depend on and understand.
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DE stock is likely to exceed its 52-week high of $181.99 John Deere is, of course, the brand name of Deere & Company, which manufactures heavy equipment for farming, agriculture and lawn care. Here’s why investors should look at a group of stocks dubbed the “top agriculture stocks 2020.” According to the United States Department of Agriculture, agriculture, food and related industries contribute $1.1 trillion to the country’s gross domestic product. While agriculture may seem boring compared to tech and e-commerce companies, the sector is nevertheless one that investors can depend on and understand.
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721678.0
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2020-06-25 00:00:00 UTC
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Ex-Dividend Reminder: Lincoln Electric Holdings, Stantec and Deere
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-lincoln-electric-holdings-stantec-and-deere-2020-06-25
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Looking at the universe of stocks we cover at Dividend Channel, on 6/29/20, Lincoln Electric Holdings, Inc. (Symbol: LECO), Stantec Inc (Symbol: STN), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Lincoln Electric Holdings, Inc. will pay its quarterly dividend of $0.49 on 7/15/20, Stantec Inc will pay its quarterly dividend of $0.155 on 7/15/20, and Deere & Co. will pay its quarterly dividend of $0.76 on 8/10/20. As a percentage of LECO's recent stock price of $79.34, this dividend works out to approximately 0.62%, so look for shares of Lincoln Electric Holdings, Inc. to trade 0.62% lower — all else being equal — when LECO shares open for trading on 6/29/20. Similarly, investors should look for STN to open 0.53% lower in price and for DE to open 0.51% lower, all else being equal.
Below are dividend history charts for LECO, STN, and DE, showing historical dividends prior to the most recent ones declared.
Lincoln Electric Holdings, Inc. (Symbol: LECO):
Stantec Inc (Symbol: STN):
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 2.47% for Lincoln Electric Holdings, Inc., 2.12% for Stantec Inc, and 2.04% for Deere & Co..
In Thursday trading, Lincoln Electric Holdings, Inc. shares are currently off about 1.2%, Stantec Inc shares are down about 0.8%, and Deere & Co. shares are off about 0.8% 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 LECO's recent stock price of $79.34, this dividend works out to approximately 0.62%, so look for shares of Lincoln Electric Holdings, Inc. to trade 0.62% lower — all else being equal — when LECO shares open for trading on 6/29/20. If they do continue, the current estimated yields on annualized basis would be 2.47% for Lincoln Electric Holdings, Inc., 2.12% for Stantec Inc, and 2.04% for Deere & Co.. Looking at the universe of stocks we cover at Dividend Channel, on 6/29/20, Lincoln Electric Holdings, Inc. (Symbol: LECO), Stantec Inc (Symbol: STN), 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 6/29/20, Lincoln Electric Holdings, Inc. (Symbol: LECO), Stantec Inc (Symbol: STN), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Lincoln Electric Holdings, Inc. will pay its quarterly dividend of $0.49 on 7/15/20, Stantec Inc will pay its quarterly dividend of $0.155 on 7/15/20, and Deere & Co. will pay its quarterly dividend of $0.76 on 8/10/20. Lincoln Electric Holdings, Inc. (Symbol: LECO): Stantec Inc (Symbol: STN): 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 6/29/20, Lincoln Electric Holdings, Inc. (Symbol: LECO), Stantec Inc (Symbol: STN), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Lincoln Electric Holdings, Inc. will pay its quarterly dividend of $0.49 on 7/15/20, Stantec Inc will pay its quarterly dividend of $0.155 on 7/15/20, and Deere & Co. will pay its quarterly dividend of $0.76 on 8/10/20. Lincoln Electric Holdings, Inc. (Symbol: LECO): Stantec Inc (Symbol: STN): 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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As a percentage of LECO's recent stock price of $79.34, this dividend works out to approximately 0.62%, so look for shares of Lincoln Electric Holdings, Inc. to trade 0.62% lower — all else being equal — when LECO shares open for trading on 6/29/20. 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 2.47% for Lincoln Electric Holdings, Inc., 2.12% for Stantec Inc, and 2.04% for Deere & Co..
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721679.0
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2020-06-22 00:00:00 UTC
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XLI, CSX, DE, ITW: Large Outflows Detected at ETF
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https://www.nasdaq.com/articles/xli-csx-de-itw%3A-large-outflows-detected-at-etf-2020-06-22
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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 The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $142.6 million dollar outflow -- that's a 1.5% decrease week over week (from 136,530,000 to 134,480,000). Among the largest underlying components of XLI, in trading today CSX Corp (Symbol: CSX) is up about 0.2%, Deere & Co. (Symbol: DE) is off about 0.6%, and Illinois Tool Works, Inc. (Symbol: ITW) is lower by about 0.5%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $47.71 per share, with $85.325 as the 52 week high point — that compares with a last trade of $68.76. 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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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $142.6 million dollar outflow -- that's a 1.5% decrease week over week (from 136,530,000 to 134,480,000). 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 XLI, in trading today CSX Corp (Symbol: CSX) is up about 0.2%, Deere & Co. (Symbol: DE) is off about 0.6%, and Illinois Tool Works, Inc. (Symbol: ITW) is lower by about 0.5%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $47.71 per share, with $85.325 as the 52 week high point — that compares with a last trade of $68.76. 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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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $142.6 million dollar outflow -- that's a 1.5% decrease week over week (from 136,530,000 to 134,480,000). For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $47.71 per share, with $85.325 as the 52 week high point — that compares with a last trade of $68.76. 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 The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $142.6 million dollar outflow -- that's a 1.5% decrease week over week (from 136,530,000 to 134,480,000). For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $47.71 per share, with $85.325 as the 52 week high point — that compares with a last trade of $68.76. 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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721680.0
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2020-06-14 00:00:00 UTC
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Where to Invest $10,000 Right Now
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https://www.nasdaq.com/articles/where-to-invest-%2410000-right-now-2020-06-14
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With markets starting to look expensive it's becoming ever more important to find stocks that look a good long-term value on a risk/reward basis. In other words, if you are going to invest $10,000 right now it's a good idea to do it in businesses you will be happy to hold even if the market has a temporary correction. In this context, let's look at why Raytheon Technologies (NYSE: RTX), PTC (NASDAQ: PTC) and Deere (NYSE: DE) are attractive stocks for long-term investors.
Image source: Getty Images.
Raytheon Technologies
The case for buying Raytheon Technologies is based on the fact that 55% of its revenue comes from defense. So, if stocks in the defense sector are currently valued at an average of around 20 times free cash flow (FCF), then Raytheon's defense business should be worth 20 times FCF, too.
Data by YCharts
Based on chief financial officer Toby O'Brien's presentation at a recent UBS conference, the legacy Raytheon businesses (largely defense) remain on track for around $3.5 billion in FCF in 2020. However, the legacy United Technologies businesses (largely commercial aviation) are targeting breakeven in FCF for 2020.
Assuming the Raytheon businesses are worth 20 times $3.5 billion gives a value of $70 billion, and if you subtract this from the market cap of $107 billion it leaves $37 billion for the commercial aerospace businesses, Collins Aerospace and Pratt & Whitney. While that figure is not quite as attractive as it was a month ago, it still looks like a good value.
Collins Aerospace generated $4.4 billion in operating profit in 2019, and Pratt & Whitney $1.8 billion, making a combined figure of $6.2 billion. To be clear, it's going to be a long road back, with O'Brien arguing (at the UBS event) that a full recovery in the commercial aviation market wouldn't take place until 2022 at the earliest. Nevertheless, even if it takes three years to get near 2019 levels of profitability, I'd argue that $37 billion is still too low of a figure for the value of commercial aviation businesses.
PTC
The industrial software company is an exciting growth stock set to benefit from strong demand for its core products of computer aided design (CAD) software and product lifecycle management (PLM) software while there's explosive potential for its internet of things (IoT) and augmented reality (AR) solutions.
The following figures were given on a PTC presentation in April, and as you can see below, its traditional CAD revenue generated 54% of revenue in 2019 -- but that's set to fall to 35% in 2024 due to strong growth in IoT and AR.
SOFTWARE REVENUE
2019
COMPOUND ANNUAL GROWTH RATE 2019-2024
TARGET 2024
Computer aided design
$5.1 billion
8%
$7.5 billion
Internet of things
$2 billion
26%
$6.5 billion
Augmented reality
$0.5 billion
60%
$5 billion
Product lifecycle management
$1.9 billion
7%
$2.7 billion
Data source: PTC presentations.
In a nutshell, PTC is a play on the so-called fourth industrial revolution or Industry 4.0. These grandiose titles simply refer to use of IoT devices in order to create even more automated fatories. With PLM, customers can use the iterative information gathered via web enabled devices to better manage the lifecycle of a product from creation (using CAD) though to production and ultimately, disposal.
IoT will help industrial companies digitize their production by using web enabled devices to monitor, analyze, and guide their physical assets, and AR will allow this process to be carried out remotely. So for example, IoT will encourage companies to invest in robotics and automation on a production line, and AR will let a skilled engineer inspect it without being on-premise.
Image source: Getty Images.
In this context, it's not hard to see why PTC chief executive officer Jim Heppelmann said on a recent earnings call that "We expect that the new normal that follows this crisis will create stronger tailwind to the already high-growth IoT and AR markets, and will make PLM more relevant than ever."
That's good to hear. Management had to reduce its full-year guidance for average recurring revenue growth in 2020 from 12% to 15% to 9% to 12% as a result of the COVID-19 pandemic. However, Heppelmann's comments imply that the company play catch up in 2021 and get back on track for its long-term aim for $730 million to $930 million in FCF in 2024. Given that the current market cap is only $9.7 billion, anything within that range would make the stock look like a great value in the future.
Deere
The agricultural equipment maker has faced a number of hits in recent years. The collapse in key crop prices (wheat, corn, soybeans, and cotton) in 2014 hurt farmers' income, while the trade war created ongoing uncertainty around the prospects for U.S. farmers to export soybeans to China. Throw in the COVID-19 pandemic, and the list of headwinds gets even longer.
Note the drop in farmers' cash receipts from crops in 2014-2016 and the decline in Deere's income.
Data source: Deere presentations, USDA.
It's going to be a difficult year for Deere, but there's reason to believe that it's likely to prove a trough year in a multi-year recovery. There are some early indications that grain demand is up as a consequence of the phase 1 trade deal with China.
Food demand will recover with an overall economic recovery. Moreover, as the chart above shows, U.S. farm income from crops has been recovering in recent years, and according to Deere's management the aged fleet of farming equipment in the U.S. is in need of replacement. Finally, Deere has been making substantive progress with its precision agriculture solutions (smart farming).
Wall Street analysts have Deere's earnings recovering from $6.07 per share in 2020 to $8.57 in 2021, putting it on 19 times 2021 earnings. That's a decent value provided the multi-year recovery thesis holds.
10 stocks we like better than Deere & Company
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends PTC. 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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Data by YCharts Based on chief financial officer Toby O'Brien's presentation at a recent UBS conference, the legacy Raytheon businesses (largely defense) remain on track for around $3.5 billion in FCF in 2020. In other words, if you are going to invest $10,000 right now it's a good idea to do it in businesses you will be happy to hold even if the market has a temporary correction. In this context, let's look at why Raytheon Technologies (NYSE: RTX), PTC (NASDAQ: PTC) and Deere (NYSE: DE) are attractive stocks for long-term investors.
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Data by YCharts Based on chief financial officer Toby O'Brien's presentation at a recent UBS conference, the legacy Raytheon businesses (largely defense) remain on track for around $3.5 billion in FCF in 2020. The industrial software company is an exciting growth stock set to benefit from strong demand for its core products of computer aided design (CAD) software and product lifecycle management (PLM) software while there's explosive potential for its internet of things (IoT) and augmented reality (AR) solutions. Computer aided design $5.1 billion 8% $7.5 billion Internet of things $2 billion 26% $6.5 billion Augmented reality $0.5 billion 60% $5 billion Product lifecycle management $1.9 billion 7% $2.7 billion Data source: PTC presentations.
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The industrial software company is an exciting growth stock set to benefit from strong demand for its core products of computer aided design (CAD) software and product lifecycle management (PLM) software while there's explosive potential for its internet of things (IoT) and augmented reality (AR) solutions. Computer aided design $5.1 billion 8% $7.5 billion Internet of things $2 billion 26% $6.5 billion Augmented reality $0.5 billion 60% $5 billion Product lifecycle management $1.9 billion 7% $2.7 billion Data source: PTC presentations. In other words, if you are going to invest $10,000 right now it's a good idea to do it in businesses you will be happy to hold even if the market has a temporary correction.
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Data by YCharts Based on chief financial officer Toby O'Brien's presentation at a recent UBS conference, the legacy Raytheon businesses (largely defense) remain on track for around $3.5 billion in FCF in 2020. IoT will help industrial companies digitize their production by using web enabled devices to monitor, analyze, and guide their physical assets, and AR will allow this process to be carried out remotely. Moreover, as the chart above shows, U.S. farm income from crops has been recovering in recent years, and according to Deere's management the aged fleet of farming equipment in the U.S. is in need of replacement.
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da11fb2f-f1fa-43a1-b882-4f2f9674eedd
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721681.0
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2020-06-12 00:00:00 UTC
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U.S. manufacturers struggle to keep workers in face of weak demand
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DE
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https://www.nasdaq.com/articles/u.s.-manufacturers-struggle-to-keep-workers-in-face-of-weak-demand-2020-06-12
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nan
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nan
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By Timothy Aeppel and Rajesh Kumar Singh
June 12 (Reuters) - Cheryl Wellman was able to bring back most of her furloughed workers last month with the help of a special government loan.
Now she's laying them off again.
Wellman, president of Integrity Metals LLC in Romeoville, Illinois, which makes metal parts for big companies including General Electric Co. GE.N and Honeywell International Inc. HON.N, was hoping for a surge of orders as the pandemic shutdowns lifted and companies moved to restock shelves. She also hoped the disruptions of recent months would pull more businesses back to U.S. shores, creating new opportunities for smaller suppliers like Integrity, which has 20 employees. But neither of those things has happened yet, she said.
Integrity was able to rehire with the aid of just over $200,000 from the Paycheck Protection Program, or PPP, which offers forgivable government-backed loans. The Small Business Administration has approved 4.5 million of these loans averaging $113,000 in size for a total of $512 billion as of June 10.
Some of the strength in the U.S. payrolls report for May - which included a startling 225,000 manufacturing jobs added - was the result of companies taking part in this program.
The problem now is that demand in many industrial sectors, from oil and gas to construction equipment, remains depressed, and that underscores the subdued response key policymakers such as Federal Reserve Chair Jerome Powell have shown over the big upsurge in hiring in May.
"It is a long road. It is going to take some time," Powell said in a press conference on Wednesday after the Fed's latest meeting, cautioning that while encouraging, the surprise 2.5 million jump in jobs in May remains a single data point for now. Data on Thursday showed more than 20 million people remain on unemployment benefits even as new claims fell for a 10th straight week.
FULL RECOVERY YEARS AWAY
To be sure, some U.S. factories are booming.
Detroit is rushing to build trucks and SUVs, for instance. And Polaris Inc. PII.N, the maker of all-terrain vehicles and motorcycles, recorded record sales in April and May, CEO Scott Wine told Reuters. "All our plants are running at full capacity," he said.
Chad Moutray, chief economist at the National Association of Manufacturers, said he thinks the worst of the downturn is behind us, but that demand will remain weak as companies fret about the potential for another virus surge and the political uncertainty of an election year. "I don’t see us getting back to pre-recession levels of output until 2022," he said.
He notes that while manufacturers added an impressive number of jobs for a single month in May, the sector is still down 1.1 million jobs from its pre-crisis level in February.
The impact is most visible in some of America's biggest industrial names. Both Caterpillar Inc. CAT.N and Deere & Co. DE.N are expected to see about a 30% drop in revenues in the current quarter, compared to a year ago, according to analysts. Both companies have curtailed work at U.S. factories.
This filters out through the economy as companies conserve cash by cutting costs and capital spending. Weaker demand for machinery means less demand for basic metals and electronic components. U.S. Steel Corp. X.N has idled 4.5 million net tons of flat-rolled and 1.9 million net tons of tubular steel capacity. Similarly, miners have slashed their 2020 capex estimates by 20%.
One business that sits at the foundation of many supply chains is metal foundries like Bremen Castings Inc., in Bremen, Indiana, which cranks out castings used in an array of industrial and transportation equipment.
Bremen used its PPP loan to keep its workers on the job through the shutdowns. Even as business wilted, its workers continued to get paid for full-time work.
They won't be so lucky in the months ahead.
"We see weakness across the board in all our markets," said J.B. Brown, president of the family-owned business. The company's workforce has shrunk over the past two months, down 18% from 245 to 202 workers, through attrition. The company didn't replace people who left or were fired.
But this Friday, Brown plans to post a sign in the factory, warning workers that they will soon face reduced shifts, due to the lack of work. They'll be able to apply to a program offered in Indiana that allows workers to make up for lost wages.
(Reporting by Timothy Aeppel and Rajesh Kumar Singh Editing by Dan Burns and Andrea Ricci)
((Tim.Aeppel@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The problem now is that demand in many industrial sectors, from oil and gas to construction equipment, remains depressed, and that underscores the subdued response key policymakers such as Federal Reserve Chair Jerome Powell have shown over the big upsurge in hiring in May. Chad Moutray, chief economist at the National Association of Manufacturers, said he thinks the worst of the downturn is behind us, but that demand will remain weak as companies fret about the potential for another virus surge and the political uncertainty of an election year. Wellman, president of Integrity Metals LLC in Romeoville, Illinois, which makes metal parts for big companies including General Electric Co. GE.N and Honeywell International Inc. HON.N, was hoping for a surge of orders as the pandemic shutdowns lifted and companies moved to restock shelves.
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Wellman, president of Integrity Metals LLC in Romeoville, Illinois, which makes metal parts for big companies including General Electric Co. GE.N and Honeywell International Inc. HON.N, was hoping for a surge of orders as the pandemic shutdowns lifted and companies moved to restock shelves. Some of the strength in the U.S. payrolls report for May - which included a startling 225,000 manufacturing jobs added - was the result of companies taking part in this program. The problem now is that demand in many industrial sectors, from oil and gas to construction equipment, remains depressed, and that underscores the subdued response key policymakers such as Federal Reserve Chair Jerome Powell have shown over the big upsurge in hiring in May.
|
Wellman, president of Integrity Metals LLC in Romeoville, Illinois, which makes metal parts for big companies including General Electric Co. GE.N and Honeywell International Inc. HON.N, was hoping for a surge of orders as the pandemic shutdowns lifted and companies moved to restock shelves. He notes that while manufacturers added an impressive number of jobs for a single month in May, the sector is still down 1.1 million jobs from its pre-crisis level in February. Some of the strength in the U.S. payrolls report for May - which included a startling 225,000 manufacturing jobs added - was the result of companies taking part in this program.
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He notes that while manufacturers added an impressive number of jobs for a single month in May, the sector is still down 1.1 million jobs from its pre-crisis level in February. Wellman, president of Integrity Metals LLC in Romeoville, Illinois, which makes metal parts for big companies including General Electric Co. GE.N and Honeywell International Inc. HON.N, was hoping for a surge of orders as the pandemic shutdowns lifted and companies moved to restock shelves. Some of the strength in the U.S. payrolls report for May - which included a startling 225,000 manufacturing jobs added - was the result of companies taking part in this program.
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934db647-6299-4913-9fb9-0f491411fc5e
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721682.0
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2020-06-08 00:00:00 UTC
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Deere Reaches Analyst Target Price
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DE
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https://www.nasdaq.com/articles/deere-reaches-analyst-target-price-2020-06-08
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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 $163.33, changing hands for $166.72/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 12 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 $140.00. And then on the other side of the spectrum one analyst has a target as high as $185.00. The standard deviation is $16.756.
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 $163.33/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $163.33 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: 5 5 7 7
Buy ratings: 1 2 2 2
Hold ratings: 7 9 7 6
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 1
Average rating: 2.12 2.22 1.97 2.09
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.
The Top 25 Broker Analyst Picks 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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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $163.33, changing hands for $166.72/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 $163.33/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $163.33 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 $163.33, changing hands for $166.72/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 $163.33/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $163.33 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 $163.33, changing hands for $166.72/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 12 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 $185.00.
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f7748e5c-6886-4432-bafa-09074b112b8a
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721683.0
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2020-06-03 00:00:00 UTC
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Deere Breaks Above 200-Day Moving Average - Bullish for DE
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DE
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https://www.nasdaq.com/articles/deere-breaks-above-200-day-moving-average-bullish-for-de-2020-06-03
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nan
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nan
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In trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $158.74, changing hands as high as $158.84 per share. Deere & Co. shares are currently trading up about 3.4% 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 $106.14 per share, with $181.99 as the 52 week high point — that compares with a last trade of $158.03. The DE DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and 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 trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $158.74, changing hands as high as $158.84 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 $106.14 per share, with $181.99 as the 52 week high point — that compares with a last trade of $158.03. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and 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 trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $158.74, changing hands as high as $158.84 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 $106.14 per share, with $181.99 as the 52 week high point — that compares with a last trade of $158.03. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and 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 trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $158.74, changing hands as high as $158.84 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 $106.14 per share, with $181.99 as the 52 week high point — that compares with a last trade of $158.03. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and 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 trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $158.74, changing hands as high as $158.84 per share. Deere & Co. shares are currently trading up about 3.4% 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 $106.14 per share, with $181.99 as the 52 week high point — that compares with a last trade of $158.03.
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e48a0216-5418-4229-8a3d-d5f64ddbf7c9
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721684.0
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2020-06-02 00:00:00 UTC
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Notable Tuesday Option Activity: MTSI, DE, AAWW
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DE
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-mtsi-de-aaww-2020-06-02
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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 MACOM Technology Solutions Holdings Inc (Symbol: MTSI), where a total volume of 2,727 contracts has been traded thus far today, a contract volume which is representative of approximately 272,700 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.2% of MTSI's average daily trading volume over the past month, of 577,390 shares. Especially high volume was seen for the $30 strike put option expiring June 19, 2020, with 2,585 contracts trading so far today, representing approximately 258,500 underlying shares of MTSI. Below is a chart showing MTSI's trailing twelve month trading history, with the $30 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 8,947 contracts thus far today. That number of contracts represents approximately 894,700 underlying shares, working out to a sizeable 46.1% of DE's average daily trading volume over the past month, of 1.9 million shares. Particularly high volume was seen for the $130 strike put option expiring July 17, 2020, with 2,194 contracts trading so far today, representing approximately 219,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $130 strike highlighted in orange:
And Atlas Air Worldwide Holdings, Inc. (Symbol: AAWW) options are showing a volume of 3,017 contracts thus far today. That number of contracts represents approximately 301,700 underlying shares, working out to a sizeable 46% of AAWW's average daily trading volume over the past month, of 655,700 shares. Particularly high volume was seen for the $50 strike call option expiring November 20, 2020, with 351 contracts trading so far today, representing approximately 35,100 underlying shares of AAWW. Below is a chart showing AAWW's trailing twelve month trading history, with the $50 strike highlighted in orange:
For the various different available expirations for MTSI options, DE options, or AAWW 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 $30 strike put option expiring June 19, 2020, with 2,585 contracts trading so far today, representing approximately 258,500 underlying shares of MTSI. Particularly high volume was seen for the $130 strike put option expiring July 17, 2020, with 2,194 contracts trading so far today, representing approximately 219,400 underlying shares of DE. Particularly high volume was seen for the $50 strike call option expiring November 20, 2020, with 351 contracts trading so far today, representing approximately 35,100 underlying shares of AAWW.
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Below is a chart showing MTSI's trailing twelve month trading history, with the $30 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,947 contracts thus far today. That number of contracts represents approximately 894,700 underlying shares, working out to a sizeable 46.1% of DE's average daily trading volume over the past month, of 1.9 million shares. That number of contracts represents approximately 301,700 underlying shares, working out to a sizeable 46% of AAWW's average daily trading volume over the past month, of 655,700 shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in MACOM Technology Solutions Holdings Inc (Symbol: MTSI), where a total volume of 2,727 contracts has been traded thus far today, a contract volume which is representative of approximately 272,700 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $30 strike put option expiring June 19, 2020, with 2,585 contracts trading so far today, representing approximately 258,500 underlying shares of MTSI. Particularly high volume was seen for the $130 strike put option expiring July 17, 2020, with 2,194 contracts trading so far today, representing approximately 219,400 underlying shares of DE.
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Particularly high volume was seen for the $130 strike put option expiring July 17, 2020, with 2,194 contracts trading so far today, representing approximately 219,400 underlying shares of DE. That number of contracts represents approximately 301,700 underlying shares, working out to a sizeable 46% of AAWW's average daily trading volume over the past month, of 655,700 shares. Below is a chart showing AAWW's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for MTSI options, DE options, or AAWW options, visit StockOptionsChannel.com.
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6879a83b-65ce-493e-aa41-98b6c8fce242
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721685.0
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2020-05-30 00:00:00 UTC
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Is Deere's Stock Set for Recovery?
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DE
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https://www.nasdaq.com/articles/is-deeres-stock-set-for-recovery-2020-05-30
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nan
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nan
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The COVID-19 pandemic has taken its toll on agricultural machinery company Deere (NYSE: DE) and management was forced to dramatically reduce its full-year 2020 guidance during the recent earnings presentations.
That said, the key question the market is asking is, what about 2021 and beyond, and is the stock a good value now? The answer is a somewhat complex and frustrating one for investors.
A brand new combine harvester. Image source: Deere & Company.
Deere's 2020 guidance
As you can see in the table below, Deere didn't adjust its 2020 headline guidance during the first quarter in February, but as the COVID-19 outbreak spread, it's become clear that the global construction industry was going to be negatively affected, and you only have to look at Caterpillar's monthly retail sales for confirmation of that.
The outlook for the key agriculture and turf segment has also gotten worse, but it's not dramatically worse -- a point I'll return to later.
DEERE SEGMENT
CURRENT
AT FEBRUARY 2020
AT NOVEMBER 2019
Agriculture & turf segment sales
(15%) to (10%)
(10%) to (5%)
(10%) to (5%)
Construction & forestry segment sales
(40%) to (30%)
(15%) to (10%)
(15%) to (10%)
Net income
$1.6 billion to $2 billion
$2.7 billion to $3.1 billon
$2.7 billion to $3.1 billion
Net operating cash flow
$1.9 billion to $2.3 billion
$3.1 billion to $3.5 billion
$3.1 billion to $3.5 billion
Data source: Deere presentations.
All in all, the agricultural stock is set for a profit slump in 2020, which will take it back to the levels of the cyclical trough it hit in 2016 which occurred largely as a consequence of the drop in U.S. farm income from crops.
Data source: Deere presentations, United States Department of Agriculture.
Crop prices and headwinds
Of course, the drop in income from a few years ago occurred because of the dramatic fall in key crop prices from 2013-2016.
Data by YCharts
It gets worse. As Deere's President of Agriculture and Turf Cory Reed outlined on theearnings call there are a plethora of reasons why farmers are taking a "wait and see approach" to matters right now.
According to Reed, "near-term demand for agricultural commodities remains uncertain" because the pandemic has shifted demand for food and reduced demand for ethanol. Meanwhile, there's lingering uncertainty around China buying U.S. agricultural exports (notably soybeans) as part of the phase 1 deal. It all adds up to an uncertain environment for the company.
The bullish case for Deere
With the doom and gloom out of the way, it's worth reflecting on a few positive points for the company.
Deere continues to make progress with its precision agriculture solutions, and it's growing its per-unit sales as a consequence.
CEO John May argued that the advanced age of the U.S. fleet of agricultural equipment will lead to a replacement market and demand for aftermarket servicing.
Even if China doesn't buy U.S. soybeans, the negligible difference between U.S. and Brazil soybean export prices indicates that the U.S. can find other export markets to sell into if China ends up buying from Brazil and other countries.
As you can see in the chart above, U.S. farm income from crops is expected to remain solid in 2020, and this should support spending, should farmers take a positive view.
As noted above, Deere didn't dramatically reduce its agriculture and turf outlook for 2020, but that's partly because it's achieving success in adding value through its precision agriculture solutions.
The future of farming is digital. Image source: Deere website.
In case you are wondering, they are solutions based on using Internet of Things technologies (sensors, onboard computers, data analytics, telematics, onboard guiding equipment etc.) to enable farmers to improve productivity.
The simple (and frustrating) fact is that the underlying improvements in Deere's operations haven't really shown up in its headline numbers in a big way yet, because its end markets have been difficult in recent years. Weak crop prices, the trade war, and now the COVID-19 pandemic have all held the company back in recent times.
Looking ahead
Deere's 2020 guidance isn't pretty, and its underlying improvements are being masked by weak end demand and unfortunate circumstances. On the other hand, China will still need to import soybeans, U.S. farmers are still earning good income, and there's an underlying replacement demand for aging agricultural machinery.
Meanwhile, Deere's precision agriculture solutions are helping support growth in the future, and its construction machinery sales will surely bounce as economic activity comes back.
All told, Deere obviously faces some uncertainty in 2020, but the stock remains attractive for long-term holders, and at some point the headwinds are likely to disappear -- leaving Deere well positioned for long-term earnings growth.
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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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The COVID-19 pandemic has taken its toll on agricultural machinery company Deere (NYSE: DE) and management was forced to dramatically reduce its full-year 2020 guidance during the recent earnings presentations. The simple (and frustrating) fact is that the underlying improvements in Deere's operations haven't really shown up in its headline numbers in a big way yet, because its end markets have been difficult in recent years. Image source: Deere & Company.
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Agriculture & turf segment sales (15%) to (10%) (10%) to (5%) (10%) to (5%) Construction & forestry segment sales (40%) to (30%) (15%) to (10%) (15%) to (10%) Net income $1.6 billion to $2 billion $2.7 billion to $3.1 billon $2.7 billion to $3.1 billion Net operating cash flow $1.9 billion to $2.3 billion $3.1 billion to $3.5 billion $3.1 billion to $3.5 billion Data source: Deere presentations. On the other hand, China will still need to import soybeans, U.S. farmers are still earning good income, and there's an underlying replacement demand for aging agricultural machinery. Meanwhile, Deere's precision agriculture solutions are helping support growth in the future, and its construction machinery sales will surely bounce as economic activity comes back.
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Agriculture & turf segment sales (15%) to (10%) (10%) to (5%) (10%) to (5%) Construction & forestry segment sales (40%) to (30%) (15%) to (10%) (15%) to (10%) Net income $1.6 billion to $2 billion $2.7 billion to $3.1 billon $2.7 billion to $3.1 billion Net operating cash flow $1.9 billion to $2.3 billion $3.1 billion to $3.5 billion $3.1 billion to $3.5 billion Data source: Deere presentations. As noted above, Deere didn't dramatically reduce its agriculture and turf outlook for 2020, but that's partly because it's achieving success in adding value through its precision agriculture solutions. All told, Deere obviously faces some uncertainty in 2020, but the stock remains attractive for long-term holders, and at some point the headwinds are likely to disappear -- leaving Deere well positioned for long-term earnings growth.
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Looking ahead Deere's 2020 guidance isn't pretty, and its underlying improvements are being masked by weak end demand and unfortunate circumstances. On the other hand, China will still need to import soybeans, U.S. farmers are still earning good income, and there's an underlying replacement demand for aging agricultural machinery. The COVID-19 pandemic has taken its toll on agricultural machinery company Deere (NYSE: DE) and management was forced to dramatically reduce its full-year 2020 guidance during the recent earnings presentations.
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77cf936d-9379-4f91-8d17-b0bbcbd6f955
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721686.0
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2020-05-27 00:00:00 UTC
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Daily Dividend Report: RY,BMO,DE,MRK,RGLD
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DE
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https://www.nasdaq.com/articles/daily-dividend-report%3A-rybmodemrkrgld-2020-05-27
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nan
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nan
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Royal Bank of Canada announced today that its board of directors has declared a quarterly common share dividend of $1.08 per share, payable on and after August 24, 2020, to common shareholders of record at the close of business on July 27, 2020.
Bank of Montreal today announced that its Board of Directors declared a quarterly dividend of $1.06 per share on paid-up common shares of Bank of Montreal for the third quarter of fiscal year 2020, unchanged from the previous quarter and up 3 per cent from the prior year. The dividend on the common shares is payable on August 26, 2020, to shareholders of record on August 4, 2020.
The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable August 10, 2020, to stockholders of record on June 30, 2020.
Merck, known as MSD outside the United States and Canada, today announced that the Board of Directors has declared a quarterly dividend of $0.61 per share of the company's common stock for the second quarter of 2020. Payment will be made on July 7, 2020 to shareholders of record at the close of business on June 15, 2020.
Royal Gold announced today that its Board of Directors has declared its third quarter dividend of US$0.28 per share of common stock. The dividend is payable on July 16, 2020, to shareholders of record at the close of business on July 2, 2020.
VIDEO: Daily Dividend Report: RY,BMO,DE,MRK,RGLD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Royal Bank of Canada announced today that its board of directors has declared a quarterly common share dividend of $1.08 per share, payable on and after August 24, 2020, to common shareholders of record at the close of business on July 27, 2020. The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable August 10, 2020, to stockholders of record on June 30, 2020. Royal Gold announced today that its Board of Directors has declared its third quarter dividend of US$0.28 per share of common stock.
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Royal Bank of Canada announced today that its board of directors has declared a quarterly common share dividend of $1.08 per share, payable on and after August 24, 2020, to common shareholders of record at the close of business on July 27, 2020. Bank of Montreal today announced that its Board of Directors declared a quarterly dividend of $1.06 per share on paid-up common shares of Bank of Montreal for the third quarter of fiscal year 2020, unchanged from the previous quarter and up 3 per cent from the prior year. The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable August 10, 2020, to stockholders of record on June 30, 2020.
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Royal Bank of Canada announced today that its board of directors has declared a quarterly common share dividend of $1.08 per share, payable on and after August 24, 2020, to common shareholders of record at the close of business on July 27, 2020. Bank of Montreal today announced that its Board of Directors declared a quarterly dividend of $1.06 per share on paid-up common shares of Bank of Montreal for the third quarter of fiscal year 2020, unchanged from the previous quarter and up 3 per cent from the prior year. The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable August 10, 2020, to stockholders of record on June 30, 2020.
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Royal Bank of Canada announced today that its board of directors has declared a quarterly common share dividend of $1.08 per share, payable on and after August 24, 2020, to common shareholders of record at the close of business on July 27, 2020. The Deere Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable August 10, 2020, to stockholders of record on June 30, 2020. Royal Gold announced today that its Board of Directors has declared its third quarter dividend of US$0.28 per share of common stock.
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02dc14c0-4ff6-468f-b0ed-0fb4bcfaf8b5
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721687.0
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2020-05-22 00:00:00 UTC
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Deere profit tops as demand slump not as bad as feared
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DE
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https://www.nasdaq.com/articles/deere-profit-tops-as-demand-slump-not-as-bad-as-feared-2020-05-22
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nan
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nan
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Adds details on farm equipment demand
May 22 (Reuters) - Deere & Co DE.N topped quarterly estimates for profit on Friday as demand for farm equipment fell less than feared and the company kept a tight lid on costs.
Deere typically sees a pick-up in sales of farm equipment after January as farmers start purchasing equipment to plant fields.
That likely helped demand for farm machinery hold up better than its construction and forestry equipment sales during the second quarter.
Deere, which gets nearly two-thirds of its revenue from farm and turf machinery, said sales in the unit fell 18% to $5.97 billion, compared with a 25% decline in construction and forestry equipment sales, which stood at $2.26 billion.
It expects fiscal 2020 profit in a range of $1.6 billion to $2 billion.
Net income attributable to the company fell to $666 million, or $2.11 per share, for the quarter ended May 3, from $1.14 billion, or $3.52 per share, a year earlier.
Total net sales fell 20% to $8.22 billion. (https://bit.ly/2A3mEn2)
Analysts on average expected Deere to earn $1.62 per share, on revenue $7.69 billion.
(Reporting by Ankit Ajmera and Shreyasee Raj in Bengaluru; Editing by Arun Koyyur)
((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;))
The views and 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 details on farm equipment demand May 22 (Reuters) - Deere & Co DE.N topped quarterly estimates for profit on Friday as demand for farm equipment fell less than feared and the company kept a tight lid on costs. That likely helped demand for farm machinery hold up better than its construction and forestry equipment sales during the second quarter. (https://bit.ly/2A3mEn2) Analysts on average expected Deere to earn $1.62 per share, on revenue $7.69 billion.
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Adds details on farm equipment demand May 22 (Reuters) - Deere & Co DE.N topped quarterly estimates for profit on Friday as demand for farm equipment fell less than feared and the company kept a tight lid on costs. That likely helped demand for farm machinery hold up better than its construction and forestry equipment sales during the second quarter. Deere typically sees a pick-up in sales of farm equipment after January as farmers start purchasing equipment to plant fields.
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Adds details on farm equipment demand May 22 (Reuters) - Deere & Co DE.N topped quarterly estimates for profit on Friday as demand for farm equipment fell less than feared and the company kept a tight lid on costs. Deere, which gets nearly two-thirds of its revenue from farm and turf machinery, said sales in the unit fell 18% to $5.97 billion, compared with a 25% decline in construction and forestry equipment sales, which stood at $2.26 billion. (Reporting by Ankit Ajmera and Shreyasee Raj in Bengaluru; Editing by Arun Koyyur) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That likely helped demand for farm machinery hold up better than its construction and forestry equipment sales during the second quarter. Deere, which gets nearly two-thirds of its revenue from farm and turf machinery, said sales in the unit fell 18% to $5.97 billion, compared with a 25% decline in construction and forestry equipment sales, which stood at $2.26 billion. (https://bit.ly/2A3mEn2) Analysts on average expected Deere to earn $1.62 per share, on revenue $7.69 billion.
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56b99530-757e-443e-badf-031797d1f1e0
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721688.0
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2020-05-22 00:00:00 UTC
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Deere Blows Past Analyst Estimates, but Takes Guidance Way Down
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DE
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https://www.nasdaq.com/articles/deere-blows-past-analyst-estimates-but-takes-guidance-way-down-2020-05-22
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nan
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nan
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Deere & Company (NYSE: DE) announced earnings today, reporting fiscal second-quarter net income of $2.11 per share, beating analysts expectations of $1.72 per share. The big earnings beat came with new guidance, however. The company expects a 45% decline in net income for the full year compared to last year.
Deere chairman and CEO John May, said the company's focus has been to operate safely and protect the health and well-being of its employees through the COVID pandemic, while also satisfying customer requirements. While the company continued to operate to fulfill customer needs as an essential business, its factory in Moline, Illinois also began producing a planned 225,000 face shields to be distributed to healthcare workers in communities where Deere operates.
Image source: Getty Images.
While second-quarter sales also came in ahead of estimates, they were 18% below year ago levels. Hardest hit was Deere's construction and forestry segment, where year-over-year sales decreased 25% and operating profit declined 72%.
The company sees sales of its agricultural division down 10% to 15% for fiscal 2020, while sales for construction are forecast to decline 30% to 40%. The other area with significant negative impacts is the finance group. John Deere Capital Corporation (JDCC) saw net income drop 69% in this recent quarter. The capital arm has been hit by "a higher provision for credit losses, unfavorable financing spreads, and increased losses and impairments on lease residual values," the company said.
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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 chairman and CEO John May, said the company's focus has been to operate safely and protect the health and well-being of its employees through the COVID pandemic, while also satisfying customer requirements. Hardest hit was Deere's construction and forestry segment, where year-over-year sales decreased 25% and operating profit declined 72%. John Deere Capital Corporation (JDCC) saw net income drop 69% in this recent quarter.
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Deere & Company (NYSE: DE) announced earnings today, reporting fiscal second-quarter net income of $2.11 per share, beating analysts expectations of $1.72 per share. The company expects a 45% decline in net income for the full year compared to last year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Deere & Company (NYSE: DE) announced earnings today, reporting fiscal second-quarter net income of $2.11 per share, beating analysts expectations of $1.72 per share. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The company expects a 45% decline in net income for the full year compared to last year.
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Deere & Company (NYSE: DE) announced earnings today, reporting fiscal second-quarter net income of $2.11 per share, beating analysts expectations of $1.72 per share. The company expects a 45% decline in net income for the full year compared to last year. Deere chairman and CEO John May, said the company's focus has been to operate safely and protect the health and well-being of its employees through the COVID pandemic, while also satisfying customer requirements.
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a247391a-68ba-4387-be7c-96e69f341096
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721689.0
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2020-05-22 00:00:00 UTC
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Consumer Sector Update for 05/22/2020: BKE, FL, DE, XLP, XLY
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DE
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https://www.nasdaq.com/articles/consumer-sector-update-for-05-22-2020%3A-bke-fl-de-xlp-xly-2020-05-22
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nan
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nan
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Consumer stocks were flat in Friday's premarket trading. Shares of staples companies in the S&P 500 (XLP) and the consumer discretionary firms (XLY) were both unchanged.
Meanwhile, Foot Locker (FL) retreated more than 8% after reporting Q1 non-GAAP loss of $0.67 per share, compared with non-GAAP earnings of $1.53 per share a year earlier. Sales declined to $1.18 billion from $2.08 billion in the same quarter last year.
Deere & Company (DE) added more than 3% after posting Q1 EPS of $2.11, down from $3.52 a year earlier. Net sales were $8.22 billion, down from $10.27 billion in the year-ago quarter. Analysts polled by Capital IQ expected EPS of $1.58 and revenue of $7.68 billion.
Buckle (BKE) was down more than 1% after reporting fiscal Q1 net loss of $0.24 per share, compared with earnings of $0.31 per share a year earlier. Net sales also decreased to $115.4 million from $201.3 million last 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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Deere & Company (DE) added more than 3% after posting Q1 EPS of $2.11, down from $3.52 a year earlier. Sales declined to $1.18 billion from $2.08 billion in the same quarter last year. Net sales also decreased to $115.4 million from $201.3 million last year.
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Net sales also decreased to $115.4 million from $201.3 million last year. Sales declined to $1.18 billion from $2.08 billion in the same quarter last year. Deere & Company (DE) added more than 3% after posting Q1 EPS of $2.11, down from $3.52 a year earlier.
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Sales declined to $1.18 billion from $2.08 billion in the same quarter last year. Deere & Company (DE) added more than 3% after posting Q1 EPS of $2.11, down from $3.52 a year earlier. Net sales also decreased to $115.4 million from $201.3 million last year.
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Sales declined to $1.18 billion from $2.08 billion in the same quarter last year. Deere & Company (DE) added more than 3% after posting Q1 EPS of $2.11, down from $3.52 a year earlier. Net sales also decreased to $115.4 million from $201.3 million last year.
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a7a8cc15-4b4b-4e5e-8ba9-590c296f160e
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721690.0
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2020-05-22 00:00:00 UTC
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Deere profit slumps 41% as farm equipment demand crashes
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DE
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https://www.nasdaq.com/articles/deere-profit-slumps-41-as-farm-equipment-demand-crashes-2020-05-22
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nan
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nan
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May 22 (Reuters) - Deere & Co DE.N reported a 41% fall in quarterly profit on Friday as coronavirus-led lockdowns sapped demand for its tractors, harvesters and other machinery.
Net income attributable to the company fell to $666 million, or $2.11 per share, for the second quarter ended May 3, from $1.14 billion, or $3.52 per share, a year earlier.
Total net sales fell 20% to $8.22 billion. (https://bit.ly/2A3mEn2)
(Reporting by Ankit Ajmera and Shreyasee Raj in Bengaluru; Editing by Arun Koyyur)
((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;))
The views and 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 22 (Reuters) - Deere & Co DE.N reported a 41% fall in quarterly profit on Friday as coronavirus-led lockdowns sapped demand for its tractors, harvesters and other machinery. Net income attributable to the company fell to $666 million, or $2.11 per share, for the second quarter ended May 3, from $1.14 billion, or $3.52 per share, a year earlier. (https://bit.ly/2A3mEn2) (Reporting by Ankit Ajmera and Shreyasee Raj in Bengaluru; Editing by Arun Koyyur) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Net income attributable to the company fell to $666 million, or $2.11 per share, for the second quarter ended May 3, from $1.14 billion, or $3.52 per share, a year earlier. (https://bit.ly/2A3mEn2) (Reporting by Ankit Ajmera and Shreyasee Raj in Bengaluru; Editing by Arun Koyyur) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. May 22 (Reuters) - Deere & Co DE.N reported a 41% fall in quarterly profit on Friday as coronavirus-led lockdowns sapped demand for its tractors, harvesters and other machinery.
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May 22 (Reuters) - Deere & Co DE.N reported a 41% fall in quarterly profit on Friday as coronavirus-led lockdowns sapped demand for its tractors, harvesters and other machinery. Net income attributable to the company fell to $666 million, or $2.11 per share, for the second quarter ended May 3, from $1.14 billion, or $3.52 per share, a year earlier. (https://bit.ly/2A3mEn2) (Reporting by Ankit Ajmera and Shreyasee Raj in Bengaluru; Editing by Arun Koyyur) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) The views and 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 22 (Reuters) - Deere & Co DE.N reported a 41% fall in quarterly profit on Friday as coronavirus-led lockdowns sapped demand for its tractors, harvesters and other machinery. Net income attributable to the company fell to $666 million, or $2.11 per share, for the second quarter ended May 3, from $1.14 billion, or $3.52 per share, a year earlier. (https://bit.ly/2A3mEn2) (Reporting by Ankit Ajmera and Shreyasee Raj in Bengaluru; Editing by Arun Koyyur) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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280cb6d1-3d06-4bb1-9157-600fd40637e6
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721691.0
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2020-05-22 00:00:00 UTC
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Deere And Co Q2 20 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-q2-20-earnings-conference-call-at-10%3A00-am-et-2020-05-22
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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 May 22, 2020, to discuss Q2 20 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 May 22, 2020, to discuss Q2 20 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 May 22, 2020, to discuss Q2 20 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 May 22, 2020, to discuss Q2 20 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 May 22, 2020, to discuss Q2 20 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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7eac2a76-18f8-4ac8-a8d5-b8a2353efbcf
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721692.0
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2020-05-22 00:00:00 UTC
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Deere & Company Q2 Profit Tops Estimates; Issues Full Year Earnings Guidance
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DE
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https://www.nasdaq.com/articles/deere-company-q2-profit-tops-estimates-issues-full-year-earnings-guidance-2020-05-22
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nan
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nan
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(RTTNews) - Deere & Company (DE) reported second quarter earnings per share of $2.11 compared to $3.52, prior year. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.80 for the quarter. Analysts' estimates typically exclude special items.
Second quarter worldwide net sales and revenues decreased 18 percent, to $9.25 billion Analysts expected revenue of $7.76 billion for the quarter. Net sales of the equipment operations were $8.224 billion, compared to $10.273 billion prior year.
For the full year, the company projects net income attributable to Deere & Company in a range of $1.6 billion to $2 billion.
The views and 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 & Company (DE) reported second quarter earnings per share of $2.11 compared to $3.52, prior year. Analysts' estimates typically exclude special items. Second quarter worldwide net sales and revenues decreased 18 percent, to $9.25 billion Analysts expected revenue of $7.76 billion for the quarter.
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(RTTNews) - Deere & Company (DE) reported second quarter earnings per share of $2.11 compared to $3.52, prior year. Second quarter worldwide net sales and revenues decreased 18 percent, to $9.25 billion Analysts expected revenue of $7.76 billion for the quarter. Analysts' estimates typically exclude special items.
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Second quarter worldwide net sales and revenues decreased 18 percent, to $9.25 billion Analysts expected revenue of $7.76 billion for the quarter. For the full year, the company projects net income attributable to Deere & Company in a range of $1.6 billion to $2 billion. (RTTNews) - Deere & Company (DE) reported second quarter earnings per share of $2.11 compared to $3.52, prior year.
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(RTTNews) - Deere & Company (DE) reported second quarter earnings per share of $2.11 compared to $3.52, prior year. Analysts' estimates typically exclude special items. Second quarter worldwide net sales and revenues decreased 18 percent, to $9.25 billion Analysts expected revenue of $7.76 billion for the quarter.
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5d0c9133-1ee4-460b-b825-92eb5bb8edf8
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721693.0
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2020-05-21 00:00:00 UTC
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Noteworthy Thursday Option Activity: TIF, LB, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-tif-lb-de-2020-05-21
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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 Tiffany & Co. (Symbol: TIF), where a total volume of 20,557 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 117.3% of TIF's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $125 strike put option expiring June 19, 2020, with 5,011 contracts trading so far today, representing approximately 501,100 underlying shares of TIF. Below is a chart showing TIF's trailing twelve month trading history, with the $125 strike highlighted in orange:
L Brands, Inc (Symbol: LB) saw options trading volume of 66,657 contracts, representing approximately 6.7 million underlying shares or approximately 63.9% of LB's average daily trading volume over the past month, of 10.4 million shares. Particularly high volume was seen for the $10 strike call option expiring August 21, 2020, with 25,035 contracts trading so far today, representing approximately 2.5 million underlying shares of LB. Below is a chart showing LB's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 8,585 contracts thus far today. That number of contracts represents approximately 858,500 underlying shares, working out to a sizeable 49.7% of DE's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $125 strike put option expiring June 19, 2020, with 1,443 contracts trading so far today, representing approximately 144,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for TIF options, LB 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 $125 strike put option expiring June 19, 2020, with 5,011 contracts trading so far today, representing approximately 501,100 underlying shares of TIF. Particularly high volume was seen for the $10 strike call option expiring August 21, 2020, with 25,035 contracts trading so far today, representing approximately 2.5 million underlying shares of LB. Especially high volume was seen for the $125 strike put option expiring June 19, 2020, with 1,443 contracts trading so far today, representing approximately 144,300 underlying shares of DE.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Tiffany & Co. (Symbol: TIF), where a total volume of 20,557 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing TIF's trailing twelve month trading history, with the $125 strike highlighted in orange: L Brands, Inc (Symbol: LB) saw options trading volume of 66,657 contracts, representing approximately 6.7 million underlying shares or approximately 63.9% of LB's average daily trading volume over the past month, of 10.4 million shares. Below is a chart showing LB's trailing twelve month trading history, with the $10 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 8,585 contracts thus far today.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Tiffany & Co. (Symbol: TIF), where a total volume of 20,557 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing TIF's trailing twelve month trading history, with the $125 strike highlighted in orange: L Brands, Inc (Symbol: LB) saw options trading volume of 66,657 contracts, representing approximately 6.7 million underlying shares or approximately 63.9% of LB's average daily trading volume over the past month, of 10.4 million shares. Particularly high volume was seen for the $10 strike call option expiring August 21, 2020, with 25,035 contracts trading so far today, representing approximately 2.5 million underlying shares of LB.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Tiffany & Co. (Symbol: TIF), where a total volume of 20,557 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing TIF's trailing twelve month trading history, with the $125 strike highlighted in orange: L Brands, Inc (Symbol: LB) saw options trading volume of 66,657 contracts, representing approximately 6.7 million underlying shares or approximately 63.9% of LB's average daily trading volume over the past month, of 10.4 million shares. Especially high volume was seen for the $125 strike put option expiring June 19, 2020, with 1,443 contracts trading so far today, representing approximately 144,300 underlying shares of DE.
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84568e77-13a3-4bb6-8f13-e2ed205d50cf
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721694.0
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2020-05-21 00:00:00 UTC
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July 2nd Options Now Available For Deere (DE)
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DE
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https://www.nasdaq.com/articles/july-2nd-options-now-available-for-deere-de-2020-05-21
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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 July 2nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 2nd contracts and identified one put and one call contract of particular interest.
The put contract at the $142.00 strike price has a current bid of $5.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $142.00, but will also collect the premium, putting the cost basis of the shares at $136.60 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $143.50/share today.
Because the $142.00 strike represents an approximate 1% 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 55%. 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 3.80% return on the cash commitment, or 33.05% 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 $142.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $3.75. If an investor was to purchase shares of DE stock at the current price level of $143.50/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $150.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.14% if the stock gets called away at the July 2nd 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 $150.00 strike highlighted in red:
Considering the fact that the $150.00 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 59%. 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 2.61% boost of extra return to the investor, or 22.71% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 51%, while the implied volatility in the call contract example is 46%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $143.50) to be 44%. 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 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 July 2nd expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 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 July 2nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 2nd 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 $142.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $3.75. Below is a chart showing DE's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 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 July 2nd 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 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 July 2nd expiration.
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7522a173-e42a-4aa0-b521-1e5a7c09aafd
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721695.0
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2020-05-15 00:00:00 UTC
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Analysts Expect PBP To Hit $20
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DE
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https://www.nasdaq.com/articles/analysts-expect-pbp-to-hit-%2420-2020-05-15
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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 ETF (Symbol: PBP), we found that the implied analyst target price for the ETF based upon its underlying holdings is $20.00 per unit.
With PBP trading at a recent price near $17.56 per unit, that means that analysts see 13.91% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PBP's underlying holdings with notable upside to their analyst target prices are Deere & Co. (Symbol: DE), Cardinal Health, Inc. (Symbol: CAH), and Ulta Beauty Inc (Symbol: ULTA). Although DE has traded at a recent price of $126.80/share, the average analyst target is 28.55% higher at $163.00/share. Similarly, CAH has 21.92% upside from the recent share price of $47.30 if the average analyst target price of $57.67/share is reached, and analysts on average are expecting ULTA to reach a target price of $242.29/share, which is 20.57% above the recent price of $200.97. Below is a twelve month price history chart comparing the stock performance of DE, CAH, and ULTA:
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
ETF PBP $17.56 $20.00 13.91%
Deere & Co. DE $126.80 $163.00 28.55%
Cardinal Health, Inc. CAH $47.30 $57.67 21.92%
Ulta Beauty Inc ULTA $200.97 $242.29 20.57%
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 $126.80/share, the average analyst target is 28.55% higher at $163.00/share. Below is a twelve month price history chart comparing the stock performance of DE, CAH, and ULTA: Below is a summary table of the current analyst target prices discussed above: 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 PBP's underlying holdings with notable upside to their analyst target prices are Deere & Co. (Symbol: DE), Cardinal Health, Inc. (Symbol: CAH), and Ulta Beauty Inc (Symbol: ULTA). Similarly, CAH has 21.92% upside from the recent share price of $47.30 if the average analyst target price of $57.67/share is reached, and analysts on average are expecting ULTA to reach a target price of $242.29/share, which is 20.57% above the recent price of $200.97. Deere & Co. DE $126.80 $163.00 28.55% Cardinal Health, Inc. CAH $47.30 $57.67 21.92% Ulta Beauty Inc ULTA $200.97 $242.29 20.57% 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, CAH has 21.92% upside from the recent share price of $47.30 if the average analyst target price of $57.67/share is reached, and analysts on average are expecting ULTA to reach a target price of $242.29/share, which is 20.57% above the recent price of $200.97. 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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With PBP trading at a recent price near $17.56 per unit, that means that analysts see 13.91% upside for this ETF looking through to the average analyst targets of the underlying holdings. Although DE has traded at a recent price of $126.80/share, the average analyst target is 28.55% higher at $163.00/share. Deere & Co. DE $126.80 $163.00 28.55% Cardinal Health, Inc. CAH $47.30 $57.67 21.92% Ulta Beauty Inc ULTA $200.97 $242.29 20.57% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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54f09ead-d8a8-4ce3-aab5-019297dfdfda
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721696.0
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2020-05-07 00:00:00 UTC
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How Deere, Caterpillar kept plants running during the coronavirus outbreak
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DE
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https://www.nasdaq.com/articles/how-deere-caterpillar-kept-plants-running-during-the-coronavirus-outbreak-2020-05-07-0
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nan
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By Rajesh Kumar Singh
CHICAGO, May 7 (Reuters) - While Detroit automakers' unionized auto factories have been idled by the coronavirus pandemic, farm and construction equipment makers Deere DE.N and Caterpillar CAT.N have won the support of the United Auto Workers and other unions to run their facilities during the pandemic.
As U.S. states begin to lift lockdown orders and companies gear up to restart production, the policies put in place by the two heavy equipment makers offer a template for returning workers to idled factories in other sectors.
Giving employees sick time without penalty, temperature screenings, staggered shifts and hiring a hygiene-auditing firm are some of the measures the two companies have taken to reassure employees to stay on production lines when many union and non-union workers balk at reporting for jobs that could expose them to the novel coronavirus that causes COVID-19.
Detroit's auto companies had to negotiate long and hard with the United Auto Workers, which represents their hourly workers, over how and when to restart U.S. production. The UAW blocked the automakers' plans to restart their factories on May 4.
The union this week signaled its members are ready to go back to work at General Motors Co GM.N, Ford Motor Co F.N and Fiat Chrysler Automobiles NV's U.S. factories on May 18.
By contrast, the UAW let Deere resume production at two of its facilities within days of employees testing positive for the virus.
Union officials attribute that decision to a safety policy they negotiated with the company that mandates a strict implementation of guidelines prescribed by the nation's health protection agency and the World Health Organization.
But it was a provision for expanded benefits that sealed the deal, UAW officials say.
"One of our priorities on the health and safety issue is to make sure that our members can self-report without any kind of penalty," said Brian Rothenberg, the UAW's public relations director. The union is negotiating with all its employers for similar benefits in order to reduce the risk of infection in the workplace.
Deere declined to comment officially, citing the quiet period ahead of its earnings report later this month.
EXPANDED BENEFITS
Under its agreement with the UAW, Deere is providing paid sick leave to cover the recommended 14 days of self-quarantine, even to workers who think they have been exposed to the virus but are not certain and have not been tested.
"The last thing we wanted was for individuals to feel compelled to come to work to get paid," a Deere official said.
The Moline, Illinois-based company altered shift schedules to ensure employees from one shift exit before the next shift reports to work. It hired an industrial-hygiene company to audit the sanitization work at some of its larger units.
Additionally, the farm equipment maker enhanced pay provisions to cover the challenges workers face due to day care and school closings. It also waived copays, coinsurance and deductibles for its employees for coronavirus testing.
At Caterpillar, the UAW and the United Steelworkers have negotiated a similar paid sick leave policy for their members.
The heavy equipment maker is offering workers paid sick leave up to 2 weeks if they have been instructed to self-quarantine. The benefit also can be used for taking care of immediate family members.
Production employees are allowed time off up to 10 weeks at 2/3 of their salary for child care.
Caterpillar spokeswoman Kate Kenny said the benefits are available to all employees who are unable to work from home, not just union members.
Workers are required to go for temperature checks before entering some facilities. To ensure social distancing, lunch hours have been extended at some locations and visitor access has been limited.
WORKING, BUT NOT BUSINESS AS USUAL
It has not been smooth sailing for the two equipment manufacturers. Factories are hobbled by supply shortages, weakened demand and increased absenteeism among workers.
Caterpillar's retail sales dropped by 20% in North America in March. In response to the virus-induced business disruption, the company is temporarily shutting down facilities and imposed indefinite or temporary layoffs.
Chief Financial Officer Andrew Bonfield said Caterpillar is managing production by segment and adjusting its workforce by facility.
The situation at Deere is also uncertain. The company will temporarily suspend production at its Davenport and Dubuque facilities in Iowa on May 11 for two weeks due to supply chain disruptions.
Depressed demand for construction and forestry equipment in the wake of the pandemic has led the company to lay off 159 employees indefinitely at the Dubuque facility.
"You prepare for crises, but crises would be at one factory," the Deere official said. "This is a crisis that has upended every unit."
(Reporting by Rajesh Kumar Singh; Editing by Joseph White and Dan Grebler)
((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 U.S. states begin to lift lockdown orders and companies gear up to restart production, the policies put in place by the two heavy equipment makers offer a template for returning workers to idled factories in other sectors. Under its agreement with the UAW, Deere is providing paid sick leave to cover the recommended 14 days of self-quarantine, even to workers who think they have been exposed to the virus but are not certain and have not been tested. By Rajesh Kumar Singh CHICAGO, May 7 (Reuters) - While Detroit automakers' unionized auto factories have been idled by the coronavirus pandemic, farm and construction equipment makers Deere DE.N and Caterpillar CAT.N have won the support of the United Auto Workers and other unions to run their facilities during the pandemic.
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By Rajesh Kumar Singh CHICAGO, May 7 (Reuters) - While Detroit automakers' unionized auto factories have been idled by the coronavirus pandemic, farm and construction equipment makers Deere DE.N and Caterpillar CAT.N have won the support of the United Auto Workers and other unions to run their facilities during the pandemic. As U.S. states begin to lift lockdown orders and companies gear up to restart production, the policies put in place by the two heavy equipment makers offer a template for returning workers to idled factories in other sectors. Detroit's auto companies had to negotiate long and hard with the United Auto Workers, which represents their hourly workers, over how and when to restart U.S. production.
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By Rajesh Kumar Singh CHICAGO, May 7 (Reuters) - While Detroit automakers' unionized auto factories have been idled by the coronavirus pandemic, farm and construction equipment makers Deere DE.N and Caterpillar CAT.N have won the support of the United Auto Workers and other unions to run their facilities during the pandemic. Detroit's auto companies had to negotiate long and hard with the United Auto Workers, which represents their hourly workers, over how and when to restart U.S. production. As U.S. states begin to lift lockdown orders and companies gear up to restart production, the policies put in place by the two heavy equipment makers offer a template for returning workers to idled factories in other sectors.
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By Rajesh Kumar Singh CHICAGO, May 7 (Reuters) - While Detroit automakers' unionized auto factories have been idled by the coronavirus pandemic, farm and construction equipment makers Deere DE.N and Caterpillar CAT.N have won the support of the United Auto Workers and other unions to run their facilities during the pandemic. As U.S. states begin to lift lockdown orders and companies gear up to restart production, the policies put in place by the two heavy equipment makers offer a template for returning workers to idled factories in other sectors. Detroit's auto companies had to negotiate long and hard with the United Auto Workers, which represents their hourly workers, over how and when to restart U.S. production.
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09b0cfd9-c23d-4b2a-aff6-e17a25c13a2b
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721697.0
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2020-05-01 00:00:00 UTC
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3 Dividend Stocks That Should Pay You For the Rest of Your Life
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DE
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https://www.nasdaq.com/articles/3-dividend-stocks-that-should-pay-you-for-the-rest-of-your-life-2020-05-01
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nan
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nan
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Many investors prefer to invest in stocks they can hold on to forever. These companies tend to offer products and services with an appeal that transcends economic cycles or fads.
Another key offering that these companies bring to their shareholders is dividends. As such, they have often provided reliable, steadily increasing payouts over the years. Sometimes these are the Dividend Aristocrats that hike payouts annually. Other dividend stocks thrive by providing more gradual increases over time.
Regardless of their approach, they tend to establish a track record of providing both growth and income over several decades. Though numerous stocks fit this description, Altria Group (NYSE: MO), Caterpillar (NYSE: CAT), and Sysco (NYSE: SYY) appear particularly well-positioned as the market struggles to recover from the COVID-19 crisis.
Altria
Altria has delivered impressive gains to its dividend investors over time. Those who have held this stock since at least 2003 and reinvested the dividends now earn back their initial investment every year on the dividend alone.
However, despite this dividend growth, one might be forgiven for missing this opportunity. Altria sells an addictive product long known for shortening the lives of its users. When considering the billions of lawsuit liabilities from tobacco, and the decline in tobacco use over the decades, only the most courageous of investors have likely held on under such conditions.
Image source: Getty Images.
Nonetheless, despite these challenges, Altria continued to find a way to boost profits and payouts. Its $3.36 per share annual dividend currently yields about 8.5%. Also, because it has not paid a special dividend since 2008, the company has now seen 11 straight years of payout hikes. Furthermore, a relatively high payout ratio of approximately 77.7% has not curtailed this streak.
Altria also has potential new revenue sources if tobacco use becomes further marginalized. While the profit potential of vaping remains in question, the company may benefit from a budding new industry: marijuana.
In 2018, Altria spent $1.8 billion on a 45% stake in Canadian cannabis company Cronos Group. Despite falling in value in recent months, Cronos stock appears poised to deliver massive returns over time. As jurisdictions continue to legalize marijuana for both medical and recreational purposes, this industry can nurture future growth, even as consumers continue to turn away from tobacco.
Caterpillar
As the world's largest producer of construction and mining equipment, Caterpillar's machines play an essential role in the economy. Their heavy equipment facilitates the construction of buildings and infrastructure. Also, Caterpillar faces relatively little direct competition. Companies like Terex or Komatsu may compete with Caterpillar. However, most other heavy equipment producers such as Deere & Company are indirect peers at best.
Moreover, during the coronavirus crisis, officials have deemed construction essential in many regions of the U.S. This means the industry has not suffered to the degree some might assume. Furthermore, as Asia continues to industrialize, these markets appear positioned to bring an increased level of business for decades to come. Asia has already become the company's second-largest region in terms of revenue.
Despite the importance of this company, its valuation has remained relatively muted. Moreover, at a current multiple of 12.3, its business prospects might make the company worth buying.
While not a dividend aristocrat, Caterpillar maintains a 10-year streak of payout hikes. The company kept its payout steady in 2009, and stock splits brought about dividend cuts on a per share basis over the years. Still, its history of dividend growth is not in question. Investors who have held this stock since at least 1994 earn their original investment back in dividends every year, assuming they reinvested the payouts.
Caterpillar's current annual dividend now stands at $4.12 per share, a yield of approximately 3.7%. However, with a payout ratio of about 71.5%, the company will need an eventual profit recovery to sustain the dividend.
Nonetheless, as construction continues through the COVID-19 crisis, and as countries in Asia pursue a decades-long push to industrialize, Caterpillar should continue to provide investors with generous, growing dividends for years to come.
Sysco Corporation
Sysco is a stock that may not receive much attention on an individual level. Consumers do not buy its products directly, and those who hear about it may confuse it with a technology company that has a similar-sounding name.
However, those who purchase food products on behalf of restaurants, educational facilities, and other business-level entities know this name well. After decades of serving these large-scale customers, it has amassed a streak of annual dividend increases now spanning 49 years.
However, the COVID-19 crisis has forced the closure of many of the entities that would not typically shut down amid an economic downturn. Consequently, Sysco stock fell as much as 70% from its December high at one point. Even after a partial recovery, Sysco stock trades at a discount of about 37% from its 52-week high.
Still, investors should not assume that they are too late. After this comeback, the $1.80 per share dividend yields about 3.3%. Also, at a current P/E ratio of approximately 16.1, investors can still buy Sysco at a reasonable price.
Moreover, Sysco remains in better shape than some might fear. Profit estimates for 2020 have fallen from $3.82 per share to $2.85 per share. While that takes the dividend payout ratio to approximately 60.2%, the downturn does little to jeopardize the company's ability to continue paying or increasing the dividend.
Additionally, people need to remember that this crisis will not last forever. Even if the economic recovery takes some time, Sysco will again provide food to the restaurants, hotels, school cafeterias, and other entities that remain temporarily closed.
Sysco may not excite investors or receive significant individual attention. However, for income-oriented investors wanting a reliable stream of cash, it will take more than a pandemic to jeopardize the dividend paid by Sysco Corporation.
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Will Healy 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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Investors who have held this stock since at least 1994 earn their original investment back in dividends every year, assuming they reinvested the payouts. Even if the economic recovery takes some time, Sysco will again provide food to the restaurants, hotels, school cafeterias, and other entities that remain temporarily closed. However, for income-oriented investors wanting a reliable stream of cash, it will take more than a pandemic to jeopardize the dividend paid by Sysco Corporation.
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Furthermore, as Asia continues to industrialize, these markets appear positioned to bring an increased level of business for decades to come. Investors who have held this stock since at least 1994 earn their original investment back in dividends every year, assuming they reinvested the payouts. While that takes the dividend payout ratio to approximately 60.2%, the downturn does little to jeopardize the company's ability to continue paying or increasing the dividend.
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The company kept its payout steady in 2009, and stock splits brought about dividend cuts on a per share basis over the years. Nonetheless, as construction continues through the COVID-19 crisis, and as countries in Asia pursue a decades-long push to industrialize, Caterpillar should continue to provide investors with generous, growing dividends for years to come. While that takes the dividend payout ratio to approximately 60.2%, the downturn does little to jeopardize the company's ability to continue paying or increasing the dividend.
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Furthermore, as Asia continues to industrialize, these markets appear positioned to bring an increased level of business for decades to come. Investors who have held this stock since at least 1994 earn their original investment back in dividends every year, assuming they reinvested the payouts. While that takes the dividend payout ratio to approximately 60.2%, the downturn does little to jeopardize the company's ability to continue paying or increasing the dividend.
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8e4313c5-12d7-4b6c-bec0-18dcb248c256
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721698.0
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2020-04-30 00:00:00 UTC
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Trump's tariffs add to pandemic-induced turmoil of U.S. manufacturers
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DE
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https://www.nasdaq.com/articles/trumps-tariffs-add-to-pandemic-induced-turmoil-of-u.s.-manufacturers-2020-04-30
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nan
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By Rajesh Kumar Singh
CHICAGO, April 30 (Reuters) - Dan Digre, head of MISCO Speakers, was on edge before the coronavirus outbreak hit the global economy. Payment of hundreds of thousands of dollars in Chinese tariffs had wiped out the profit and dwindled the cash balance of the Minnesota-based loudspeaker maker.
Now Digre is grappling with dropping sales and payment delays. With cash ever harder to come by, he must cough up the money for President Donald Trump's 25% tariffs on parts that Digre imports from China for speakers used in everything from mass transit systems and gaming devices to essential ventilators and military equipment.
He is not alone. As a deepening economic recession dries up their revenue streams, hundreds of import-dependent large and small businesses are finding it tougher to survive the pandemic due to tariff costs.
"You are caught in a double bind," Digre said. "You need cash to operate your business. At the same time, you are not getting cash in."
Despite a "Phase 1" deal, $370 billion of Chinese goods imported into the United States are still subjected to tariffs of up to 25%. Similarly, 25% tariffs on foreign steel and a 10% duty on aluminum imports remain in place - taxes on American businesses at a time of little revenue.
"Companies are paying taxes on goods that they can't sell right now for the stay-at-home orders," said Jonathan Gold, spokesman for Americans for Free Trade - a broad coalition of U.S. industry groups that lobby against the tariffs.
Since March 2018, Trump has been employing tariffs as part of a restrictive trade policy to rewrite terms that he says have destroyed American industry and jobs.
Keeping tariffs in place on Chinese goods he says would maintain leverage over China for a Phase 2 trade deal. Further relaxing the metal tariffs could jeopardize domestic producers, according to some U.S. steelmakers.
San Diego-based athleisure maker Vivacity Sportswear has been paying a 25% tariff on one-third of its raw materials that are sourced from China, leading to a 15% drop in profit last year, CEO Vivian Sayward said.
In the past two months, the company's revenue has dropped 80% and inventory has increased by 60%. Shrinking profit margins and depressed demand have compelled it to temporarily halt all manufacturing.
Lower demand has also prompted MISCO to stop all new shipments from China. That will reduce its tariff expenses - but the company has to find money to pay for the goods that are about to arrive or have reached the United States.
NO BLANKET RELIEF
In a letter to the White House last month, executives of more than 350 American companies, including farm equipment maker CNH Industrial CNHI.MI, retailers Macy's Inc M.N, Gap Inc GPS.N and J.C. Penney Co Inc JCP.N, urged Trump to delay the collection of duties by 90 to 180 days to help them preserve cash flow during the pandemic.
The calls for blanket relief have failed to gain traction.
In March, the Office of the United States Trade Representative took some Chinese medical products off the tariff list. It has also asked companies to file requests for duty exemptions for supplies that can be effective in dealing with the coronavirus.
Earlier this month, the Trump administration allowed importers that have faced a "significant" financial hardship due to the virus to delay payment of tariffs for 90 days for goods imported in March and April. The relief, however, will not be available to importers of Chinese goods and steel and aluminum.
USTR did not respond to a request for comment.
Meanwhile, Gap has warned it may not survive the next 12 months intact, and J.C. Penney has skipped an interest payment amid bankruptcy fears.
J.C. Penney declined to comment for this story. CNH Industrial, Gap and Macy's did not respond to requests for comment.
"This (the pandemic) is an existential threat not (seen) since the Great Depression," said Kip Eideberg, senior vice president of government and industry relations at the Association of Equipment Manufacturers (AEM), which represents over 1,000 companies including Caterpillar Inc CAT.N and Deere & Co DE.N.
Since March 2018, U.S. importers have been billed about $59 billion in Chinese and metal tariffs, according to U.S. Customs and Border Protection. Data compiled by consultancy Trade Partnership Worldwide, for trade group Tariffs Hurt the Heartland, shows suspending the tariffs or delaying their payments would free up as much as $3 billion of cash per month for U.S. companies.
SOARING CASH NEEDS
MISCO's president, Digre, has requested tariff exemption for the parts that are used in the audio devices for ventilators but has yet to hear back from the government. MISCO is one of the few companies that has retained U.S. production long after other rivals moved production to Asia, primarily to China.
However, the 25% tariffs on MISCO's Chinese components have left the company at a disadvantage against speakers that are entirely built in China and can be imported with a 7.5% duty.
The anomaly has made it harder to fully pass along the increased tariff cost to customers. MISCO spent $300,000 last year on the tariffs, but was forced to absorb most of the increased cost.
Since the virus' outbreak in the United States in early March, many of MISCO's customers such as Las Vegas-based gaming companies and aircraft makers have asked to stop all deliveries until further notice. Some customers are asking for longer payment terms, resulting in payment delays between 30 and 90 days. As a result, Digre says MISCO's cash requirement has tripled.
So far, Digre has tried to avoid layoffs. Instead, the 40-hour work week has been shortened to 32 hours, and capital spending as well as advertising have been slashed.
A government-sponsored payroll protection loan has also helped. But if the business does not rebound and there is no tariff relief, Digre says it will be "very difficult" to operate beyond June.
Sayward is similarly unsure of Vivacity's future after its cash runs out in June and the ability to obtain a government-sponsored small business loan remains difficult.
"If things don't change and we don't get the money, we are looking at closing," Sayward said.
(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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With cash ever harder to come by, he must cough up the money for President Donald Trump's 25% tariffs on parts that Digre imports from China for speakers used in everything from mass transit systems and gaming devices to essential ventilators and military equipment. In a letter to the White House last month, executives of more than 350 American companies, including farm equipment maker CNH Industrial CNHI.MI, retailers Macy's Inc M.N, Gap Inc GPS.N and J.C. Penney Co Inc JCP.N, urged Trump to delay the collection of duties by 90 to 180 days to help them preserve cash flow during the pandemic. "This (the pandemic) is an existential threat not (seen) since the Great Depression," said Kip Eideberg, senior vice president of government and industry relations at the Association of Equipment Manufacturers (AEM), which represents over 1,000 companies including Caterpillar Inc CAT.N and Deere & Co DE.N.
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In a letter to the White House last month, executives of more than 350 American companies, including farm equipment maker CNH Industrial CNHI.MI, retailers Macy's Inc M.N, Gap Inc GPS.N and J.C. Penney Co Inc JCP.N, urged Trump to delay the collection of duties by 90 to 180 days to help them preserve cash flow during the pandemic. Now Digre is grappling with dropping sales and payment delays. With cash ever harder to come by, he must cough up the money for President Donald Trump's 25% tariffs on parts that Digre imports from China for speakers used in everything from mass transit systems and gaming devices to essential ventilators and military equipment.
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With cash ever harder to come by, he must cough up the money for President Donald Trump's 25% tariffs on parts that Digre imports from China for speakers used in everything from mass transit systems and gaming devices to essential ventilators and military equipment. Earlier this month, the Trump administration allowed importers that have faced a "significant" financial hardship due to the virus to delay payment of tariffs for 90 days for goods imported in March and April. Data compiled by consultancy Trade Partnership Worldwide, for trade group Tariffs Hurt the Heartland, shows suspending the tariffs or delaying their payments would free up as much as $3 billion of cash per month for U.S. companies.
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In a letter to the White House last month, executives of more than 350 American companies, including farm equipment maker CNH Industrial CNHI.MI, retailers Macy's Inc M.N, Gap Inc GPS.N and J.C. Penney Co Inc JCP.N, urged Trump to delay the collection of duties by 90 to 180 days to help them preserve cash flow during the pandemic. Since March 2018, U.S. importers have been billed about $59 billion in Chinese and metal tariffs, according to U.S. Customs and Border Protection. Now Digre is grappling with dropping sales and payment delays.
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fef42897-4ea1-45de-8ad0-b2f246d4a5d8
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721699.0
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2020-04-14 00:00:00 UTC
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Peek Under The Hood: SUSL Has 17% Upside
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DE
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https://www.nasdaq.com/articles/peek-under-the-hood%3A-susl-has-17-upside-2020-04-14
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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 iShares ESG MSCI USA Leaders ETF (Symbol: SUSL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $56.27 per unit.
With SUSL trading at a recent price near $48.14 per unit, that means that analysts see 16.88% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SUSL's underlying holdings with notable upside to their analyst target prices are Fortune Brands Home & Security, Inc. (Symbol: FBHS), Ulta Beauty Inc (Symbol: ULTA), and Deere & Co. (Symbol: DE). Although FBHS has traded at a recent price of $46.86/share, the average analyst target is 18.73% higher at $55.64/share. Similarly, ULTA has 17.88% upside from the recent share price of $202.60 if the average analyst target price of $238.82/share is reached, and analysts on average are expecting DE to reach a target price of $164.54/share, which is 17.70% above the recent price of $139.80. Below is a twelve month price history chart comparing the stock performance of FBHS, ULTA, and DE:
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
iShares ESG MSCI USA Leaders ETF SUSL $48.14 $56.27 16.88%
Fortune Brands Home & Security, Inc. FBHS $46.86 $55.64 18.73%
Ulta Beauty Inc ULTA $202.60 $238.82 17.88%
Deere & Co. DE $139.80 $164.54 17.70%
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 FBHS has traded at a recent price of $46.86/share, the average analyst target is 18.73% higher at $55.64/share. iShares ESG MSCI USA Leaders ETF SUSL $48.14 $56.27 16.88% Fortune Brands Home & Security, Inc. FBHS $46.86 $55.64 18.73% Ulta Beauty Inc ULTA $202.60 $238.82 17.88% Deere & Co. DE $139.80 $164.54 17.70% 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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For the iShares ESG MSCI USA Leaders ETF (Symbol: SUSL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $56.27 per unit. Three of SUSL's underlying holdings with notable upside to their analyst target prices are Fortune Brands Home & Security, Inc. (Symbol: FBHS), Ulta Beauty Inc (Symbol: ULTA), and Deere & Co. (Symbol: DE). iShares ESG MSCI USA Leaders ETF SUSL $48.14 $56.27 16.88% Fortune Brands Home & Security, Inc. FBHS $46.86 $55.64 18.73% Ulta Beauty Inc ULTA $202.60 $238.82 17.88% Deere & Co. DE $139.80 $164.54 17.70% 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, ULTA has 17.88% upside from the recent share price of $202.60 if the average analyst target price of $238.82/share is reached, and analysts on average are expecting DE to reach a target price of $164.54/share, which is 17.70% above the recent price of $139.80. 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 SUSL trading at a recent price near $48.14 per unit, that means that analysts see 16.88% upside for this ETF looking through to the average analyst targets of the underlying holdings. iShares ESG MSCI USA Leaders ETF SUSL $48.14 $56.27 16.88% Fortune Brands Home & Security, Inc. FBHS $46.86 $55.64 18.73% Ulta Beauty Inc ULTA $202.60 $238.82 17.88% Deere & Co. DE $139.80 $164.54 17.70% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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b7b2e842-1699-404e-a97a-390aba1fdb4f
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