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723200.0
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2011-07-22 00:00:00 UTC
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Caterpillar Earnings Preview: What We're Watching on Friday
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DE
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https://www.nasdaq.com/articles/caterpillar-earnings-preview-what-were-watching-friday-2011-07-22
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nan
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nan
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Caterpillar ( CAT ) plans to announce its 2011 Q2 earnings on Friday (7/22). In the past quarter, Caterpillar's revenue from machinery and engines sales volume increased 63% year-on-year on commodity demand in emerging markets driving mining capex globally in addition to the modest economic recovery in developed markets. We expect these trends to continue this quarter although the growth rate will likely moderate due to recent macro uncertainty surrounding the European debt crisis and Japan's disruptions. Machinery revenues will likely reflect the recent completion of the Bucyrus acquisition earlier this month. Caterpillar's machinery and engines business competes with Deere and Co. ( DE ), Komatsu (TYO:6301), Terex ( TEX ), Hitachi Construction Machinery (TYO:6305), Cummins ( CMI ), GE Energy ( GE ), Wartsila (HEL:WRTBV), etc.
Our $116 price estimate for Caterpillar stock is about 6% above market price.
Macro Headwinds Will Show in Q2 Results
Construction and farm machinery sales are closely correlated to the health of economy. Therefore in 2011 Q2, while construction and other machinery sales will continue growing along with the global GDP, its rate of growth will likely moderate due to the many global economic challenges.
1. Risk of EU default leading to market uncertainty - EU heads, led by France and Germany are trying to restructure Greek debt held by banks but uncertainty remains over whether rating agencies will still view this event as a default - which can have serious repercussions for entire Europe. Also there is increasing political uncertainty in Germany over the Greek debt restructuring.
2. Oil price hikes but this is easing already - Since after September 2008, crude oil prices reached a high of $113.93 in April 2011 before easing to $91.16 in June 2011. This indicated greater relief for consumers at the pump, but prices have been creeping up again this month and has the potential to add a speed bump to Caterpillar's growth.
3. Supply disruptions after tragic Japan earthquake - Caterpillar expects it to negatively effect its revenues by $300 million in 2011.
4. Stagnating consumer spending and rising unemployment rate in May in U.S. - Consumer spending and employment rates unexpectedly halted in May 2011. Unemployment rates edged up in June again.
5. Democratic and Republican wrangling over debt-reduction plan adding to uncertainty in U.S.
Commodity & Emerging Market Demand Will Help Mining Machinery Sales
Earlier this month Caterpillar completed acquisition of Bucyrus, which is a major mining equipment manufacturer. Moreover, growth in the global economy is causing continued demand for commodities, resulting in commodity price increases. This is positive for mining and will lead to increased demand for mining machinery. This will lead Caterpillar to increase its market share in machinery sales and raise its sales and revenue outlook for 2011.
We expect Caterpillar's machinery sales to continue growing due to continued growth in construction activity in the developing world and improvements in machine fleets in the developed world. But we expect that the year-on-year rate of growth this quarter to be lower than that experienced last quarter due to some of the macro challenges mentioned above.
See our complete analysis for Caterpillar
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 these trends to continue this quarter although the growth rate will likely moderate due to recent macro uncertainty surrounding the European debt crisis and Japan's disruptions. In the past quarter, Caterpillar's revenue from machinery and engines sales volume increased 63% year-on-year on commodity demand in emerging markets driving mining capex globally in addition to the modest economic recovery in developed markets. Caterpillar's machinery and engines business competes with Deere and Co. ( DE ), Komatsu (TYO:6301), Terex ( TEX ), Hitachi Construction Machinery (TYO:6305), Cummins ( CMI ), GE Energy ( GE ), Wartsila (HEL:WRTBV), etc.
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In the past quarter, Caterpillar's revenue from machinery and engines sales volume increased 63% year-on-year on commodity demand in emerging markets driving mining capex globally in addition to the modest economic recovery in developed markets. Democratic and Republican wrangling over debt-reduction plan adding to uncertainty in U.S. Commodity & Emerging Market Demand Will Help Mining Machinery Sales Earlier this month Caterpillar completed acquisition of Bucyrus, which is a major mining equipment manufacturer. We expect Caterpillar's machinery sales to continue growing due to continued growth in construction activity in the developing world and improvements in machine fleets in the developed world.
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In the past quarter, Caterpillar's revenue from machinery and engines sales volume increased 63% year-on-year on commodity demand in emerging markets driving mining capex globally in addition to the modest economic recovery in developed markets. Democratic and Republican wrangling over debt-reduction plan adding to uncertainty in U.S. Commodity & Emerging Market Demand Will Help Mining Machinery Sales Earlier this month Caterpillar completed acquisition of Bucyrus, which is a major mining equipment manufacturer. We expect Caterpillar's machinery sales to continue growing due to continued growth in construction activity in the developing world and improvements in machine fleets in the developed world.
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In the past quarter, Caterpillar's revenue from machinery and engines sales volume increased 63% year-on-year on commodity demand in emerging markets driving mining capex globally in addition to the modest economic recovery in developed markets. We expect these trends to continue this quarter although the growth rate will likely moderate due to recent macro uncertainty surrounding the European debt crisis and Japan's disruptions. Moreover, growth in the global economy is causing continued demand for commodities, resulting in commodity price increases.
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02e94ac0-8bab-4f1f-9bc6-c857109e62be
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723201.0
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2011-07-07 00:00:00 UTC
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Food Prices Spike: Ten Stocks With Exposure to Volatile Food Prices
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DE
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https://www.nasdaq.com/articles/food-prices-spike-ten-stocks-exposure-volatile-food-prices-2011-07-07
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nan
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nan
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As the number of people alive in the world has skyrocketed, so have food prices. The more mouths there are to feed, the greater the demand for grains, meats, dairy products, etc. Similarly, as citizens of developing nations become richer, so do their tastes. The Chinese, for example, have increasingly craved meat ever since their standard of living began rising.
“An important characteristic of the increasing levels of incomes and expenditures is a changing food consumption pattern, and in particular, an increasing consumption of meat.
While, according to FAO statistics, in 1985 meat consumption in China was approximately 20 kg per person per year, by 2000 it had increased to 50 kg per person per year, and for the next decades further increases in per capita meat consumption are projected,” according to the Centre for World Food Studies at the Vrije Universiteit Amsterdam.
In addition, two trends have helped to inflate food prices. First is the growth of the ethanol fuel industry, which now uses around 40% of US corn production, up from around 7% a decade ago (the US produces almost 40% of the global corn supply).
The other is increasing meat demand: more beef means more cows which means more cow feed (which includes corn). More cows also means more grazing land – land that might have been used as farmland instead.
The UN’s Food and Agriculture Organization (FAO) publishes a monthly food price index. June 2011 figures show that food prices are 39% higher than in June 2010, led by a spike in sugar prices. The index hit an all-time high in February.
Food price volatility and prices will continue to be a hot issue in the future.
“French President Nicolas Sarkozy has blamed speculators for driving up food prices and made commodity regulation a priority for the country’s presidency in 2011 of the Group of 20 countries,” reports Rudy Ruitenberg of Reuters.
Interested in trading this information? To help you start your own research, here is a list of ten large companies that have exposure to food prices.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
List sorted by market cap.
1. Unilever plc (UL): Major Diversified Food industry with a market cap of $97.63B. Its product categories include savory, dressings & spread and ice cream & beverages. This includes soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, cooking products, ice cream and beverages include the sales of ice cream, tea-based beverages, weight management products, and nutritionally enhanced staples sold in developing markets.
2. Kraft Foods Inc. (KFT): Major Diversified Food industry with a market cap of $63.02B. It manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. Brands include Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacobs and Maxwell House coffees; Philadelphia cream cheeses; Kraft cheeses, dinners and dressings, and Oscar Mayer meats.
3. Potash Corp. of Saskatchewan, Inc. (POT): Agricultural Chemicals industry with a market cap of $48.82B. It is an integrated fertilizer and related industrial and feed products company. It owns and operates five potash mines (used in fertilizer) in Saskatchewan and one in New Brunswick. Its business includes the manufacture and sale of solid and liquid phosphate fertilizers; animal feed supplements and industrial acid, which is used in food products and industrial processes.
4. Monsanto Co. (MON): Agricultural Chemicals industry with a market cap of $39.99B. It is a provider of agricultural products for farmers. It produces seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and it develops biotechnology traits that assist farmers in controlling insects and weeds. It also provides other seed companies with genetic material and biotechnology traits for their seed brands. It is a leader in agricultural genomics (ie, Genetically Modified Organisms or GMOs).
5. Deere & Company (DE): Farm & Construction Machinery industry with a market cap of $35.5B. It manufactures and distributes a line of farm and turf equipment and related service parts including large, medium and utility tractors; loaders; combines, cotton and sugarcane harvesters and related front-end equipment and sugarcane loaders; tillage, seeding and application equipment. Its owns and operates the popular John Deere brand of machinery.
6. Syngenta AG (SYT): Agricultural Chemicals industry with a market cap of $32.17B. It is an agribusiness operating in the crop protection and seeds businesses, including herbicides; insecticides; fungicides; seed treatments to control weeds, insects and diseases in crops; seeds for field crops, including corn, oilseeds, cereals and sugar beet; vegetable and flower seeds; and pot and bedding plants.
7. Mosaic Co. (MOS): Specialty Chemicals industry with a market cap of $30.47B. It is a producer and marketer of concentrated phosphate and potash crop nutrients for the global agriculture industry. It produces phosphate-based animal feed ingredients in the United States, sells phosphate-based crop nutrients and animal feed ingredients throughout North America and internationally, and produces and sells potash throughout North America and internationally, principally as fertilizer.
8. Archer Daniels Midland Company (ADM): Farm Products industry with a market cap of $19.61B. It is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. It is a processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities and is a manufacturer of vegetable oil and protein meal, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients. It also has a grain elevator and transportation network to procure, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, and barley, as well as processed agricultural commodities.
9. Agrium Inc. (AGU): Agricultural Chemicals industry with a market cap of $13.84B. It is a global producer and marketer of agricultural products. It sells crop nutrients, crop protection products, seed and services directly to growers, produces, markets and distributes three primary groups of nutrients, which includes nitrogen, potash and phosphate for agricultural and industrial customers worldwide, and produces and markets controlled-release crop nutrients and micronutrients in the broad-based agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets worldwide.
10. CF Industries Holdings, Inc. (CF): Agricultural Chemicals industry with a market cap of $10.22B. It is a manufacturer and distributor of nitrogen and phosphate fertilizer products. Its principal products in the nitrogen segment are ammonia, urea, urea ammonium nitrate solution, ammonium nitrate, diesel exhaust fluid and aqua ammonia. Its principal products in the phosphate segment are diammonium phosphate and monoammonium phosphate.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 includes soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, cooking products, ice cream and beverages include the sales of ice cream, tea-based beverages, weight management products, and nutritionally enhanced staples sold in developing markets. It produces seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and it develops biotechnology traits that assist farmers in controlling insects and weeds. The more mouths there are to feed, the greater the demand for grains, meats, dairy products, etc.
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It is an agribusiness operating in the crop protection and seeds businesses, including herbicides; insecticides; fungicides; seed treatments to control weeds, insects and diseases in crops; seeds for field crops, including corn, oilseeds, cereals and sugar beet; vegetable and flower seeds; and pot and bedding plants. It sells crop nutrients, crop protection products, seed and services directly to growers, produces, markets and distributes three primary groups of nutrients, which includes nitrogen, potash and phosphate for agricultural and industrial customers worldwide, and produces and markets controlled-release crop nutrients and micronutrients in the broad-based agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets worldwide. The more mouths there are to feed, the greater the demand for grains, meats, dairy products, etc.
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This includes soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, cooking products, ice cream and beverages include the sales of ice cream, tea-based beverages, weight management products, and nutritionally enhanced staples sold in developing markets. Its business includes the manufacture and sale of solid and liquid phosphate fertilizers; animal feed supplements and industrial acid, which is used in food products and industrial processes. It sells crop nutrients, crop protection products, seed and services directly to growers, produces, markets and distributes three primary groups of nutrients, which includes nitrogen, potash and phosphate for agricultural and industrial customers worldwide, and produces and markets controlled-release crop nutrients and micronutrients in the broad-based agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets worldwide.
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The other is increasing meat demand: more beef means more cows which means more cow feed (which includes corn). The UN’s Food and Agriculture Organization (FAO) publishes a monthly food price index. The more mouths there are to feed, the greater the demand for grains, meats, dairy products, etc.
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ffe10e65-f366-4c45-a686-862783dabc58
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723202.0
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2011-06-10 00:00:00 UTC
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4 Undervalued Stocks to Buy
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DE
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https://www.nasdaq.com/articles/4-undervalued-stocks-buy-2011-06-10
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nan
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nan
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Don't Miss Out on These Summer Deals
Since the start of June, the Dow is off 3.5%, and bargain hunters are on the prowl. They know that stocks are undervalued and they don't want to miss out on a good deal.
What most investors don't realize about declining markets is that some stocks get hit for a good reason. In other words, not all stocks that go down are bargains.
However, there are some truly undervalued stocks out there. The trick is being able to tell the difference. I recently gave you a list of 8 False Bargain Stocks . Now I want to give you a list of undervalued stocks to buy. These stocks have bent in the market storm, but they are not breaking. And these undervalued stocks represent some of the finest buys on the market today.
Undervalued Stock to Buy #1 - Carbo Ceramics (CRR)
Carbo Ceramics (NYSE: CRR ) helps boost the output for natural gas and oil wells, which is what every energy company wants to do right now.
In the most recent quarter, the company logged a profit of $30.6 million, or $1.30 per share, up from its first-quarter profit of $19 million, or 82 cents per share, in 2010. Analysts had been expecting earnings of $1.02 per share, resulting in a 27% earnings surprise. CRR's revenues increased to $150.8 million from $123.5 million and flew past estimates of $129.5 million.
This is a company that's using the market to its advantage and even though it is trading north of $145, it is still an excellent bargain this summer.
Undervalued Stock to Buy #2 - Edwards Lifesciences Corp. (EW)
Medical device company Edwards Lifesciences Corp. (NYSE: EW ) is the world's largest creator of artificial heart valves, including valves made from animal tissue and annuloplasty rings that repair damaged valves. Other major products include heart monitoring systems, various types of surgical tubes and catheters.
In the first quarter, sales rose 19% to $404.5 million. Net earnings jumped 33% compared with the first quarter of 2010 to $63.9 million, while adjusted earnings reached 51 cents per share. Earnings came in well above the analyst expected EPS of 42 cents, which gives the company a 21% earnings surprise!
After the successful quarter, Edwards Lifesciences has increased its 2011 earnings forecast. Sales are expected to be in the $1.66 billion to $1.74 billion range, while its expected EPS has been raised to $2.01 to $2.07 for the year. At around $86.50, this is an undervalued stock.
Undervalued Stock to Buy #3 - Deere & Company (DE)
When it comes to construction equipment, there's only one company to own right now: Deere & Company (NYSE: DE ). DE is the world's largest farm equipment manufacturer and a leading producer of construction, forestry, and commercial and residential lawn care equipment. If you have ever seen a tractor, you probably recognize the signature John Deere green color or know the company's "Nothing runs like a Deere" slogan.
In the most recent quarter, Deere's sales increased 25% to $8.9 million compared with $7.1 billion in the same period last year. Earnings jumped from $1.28 per share in the second fiscal quarter of 2010 to $2.12 per share last quarter. That's a 65% increase! Analysts expected the company to make revenue of $8.14 billion and earnings of $2.06 per share, so Deere posted a 9% sales surprise and 3% earnings surprise. The company also raised its full-year forecast. It now expects sales to rise 21% to 23% compared with a previous guidance of 18% to 20% increase.
Deere is also continuing its massive expansion efforts. The company announced a new plan to invest $80 million in building a new equipment plant in China to help meet the strong demand in the regions. With the demand for crops and crop prices maintaining high levels, Deere is a great undervalued stock to buy this summer. It closed yesterday at $82.
Undervalued Stock to Buy #4 - Avago Technologies Ltd. (AVGO)
Avago Technologies Ltd. (NASDAQ: AVGO ) is an integrated-circuit semiconductor company. For three decades it was a part of Hewlett-Packard (NYSE: HPQ ), and then it was spun off together with the whole HP semiconductor business as part of Agilent Technologies (NYSE: A ). As part of HP's semiconductor business, Avago assembled a team of over 1,000 design and product engineers and developed an extensive portfolio of intellectual property plans that currently include more than 5,000 U.S. and foreign patents and patent applications. Avago operates design centers in Asia, Europe and the United States, and manufacturing facilities primarily in Asia. About 80% of its sales come from outside the United States, which is creating an excellent tailwind for the company as the U.S. dollar is back on the decline.
Recent earnings showed a net profit of $119 million, or 48 cents per share, up from 2009′s profit of $38 million, or 16 cents per share, in the year ago quarter. Excluding items and charges, net profit was 65 cents per share, up from 36 cents per share in the previous year and ahead of the consensus estimate of 57 cents per share by 14%. This undervalued stock currently trades just above $34.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Don't Miss Out on These Summer Deals Since the start of June, the Dow is off 3.5%, and bargain hunters are on the prowl. Other major products include heart monitoring systems, various types of surgical tubes and catheters. The company announced a new plan to invest $80 million in building a new equipment plant in China to help meet the strong demand in the regions.
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Undervalued Stock to Buy #1 - Carbo Ceramics (CRR) Carbo Ceramics (NYSE: CRR ) helps boost the output for natural gas and oil wells, which is what every energy company wants to do right now. Undervalued Stock to Buy #2 - Edwards Lifesciences Corp. (EW) Medical device company Edwards Lifesciences Corp. (NYSE: EW ) is the world's largest creator of artificial heart valves, including valves made from animal tissue and annuloplasty rings that repair damaged valves. Undervalued Stock to Buy #4 - Avago Technologies Ltd. (AVGO) Avago Technologies Ltd. (NASDAQ: AVGO ) is an integrated-circuit semiconductor company.
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Undervalued Stock to Buy #2 - Edwards Lifesciences Corp. (EW) Medical device company Edwards Lifesciences Corp. (NYSE: EW ) is the world's largest creator of artificial heart valves, including valves made from animal tissue and annuloplasty rings that repair damaged valves. Undervalued Stock to Buy #3 - Deere & Company (DE) When it comes to construction equipment, there's only one company to own right now: Deere & Company (NYSE: DE ). Don't Miss Out on These Summer Deals Since the start of June, the Dow is off 3.5%, and bargain hunters are on the prowl.
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However, there are some truly undervalued stocks out there. Undervalued Stock to Buy #3 - Deere & Company (DE) When it comes to construction equipment, there's only one company to own right now: Deere & Company (NYSE: DE ). In the most recent quarter, Deere's sales increased 25% to $8.9 million compared with $7.1 billion in the same period last year.
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35ca00a7-0f12-45ce-a01b-ee78864400c5
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723203.0
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2011-06-02 00:00:00 UTC
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Market Wrap-Up for June 2 (JOYG, CAT, GS, LTD, JCP, DE, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-june-2-joyg-cat-gs-ltd-jcp-de-more-2011-06-02
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nan
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nan
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It was a strong day for bonds yesterday as the odds of another recession have apparently increased. Make no mistake about it: market pullbacks like the one we saw yesterday (biggest 1-day drop going back to last August) are part of building a long-term foundation for investors. Getting rid of shaky investors/traders will eventually strengthen a stock's shareholder base and will lead to shallower pullbacks in times of overall market volatility. And as always, pullbacks provide better entry points for investors looking to get into the Best Dividend Stocks money can buy.
Getting into some individual standout names today, shares of Joy Global ( JOYG ) shot higher as the mining equipment play beat earnings estimates quite easily. This jump helped push up other equipment plays such as Caterpillar ( CAT ) and Deere ( DE ). News about a possible subpoena for Goldman Sachs ( GS ) and its role in the credit crisis had the broker's shares trailing throughout today's session. Monthly retail sales were out this morning and most of the retailers we follow were flat to lower. Noticeably weak were shares of Limited ( LTD ), JC Penney ( JCP ), and Family Dollar Stores ( FDO ).
Just a reminder, be sure to check out our weekly "Top 50 Watchlist Names" post that comes out each Thursday.
It's on days like we saw yesterday that dividend investors are the few that pull out a shopping list of stocks to buy. Traders on the other hand (most of whom trade long-side only) are scampering for the exits and likely nursing their financial wounds if they misread the market. As I mentioned on Sunday, legendary bond guru Bill Gross went on record last week with his statement that "Savers are being disadvantaged and will be disadvantaged for perhaps five, ten to fifteen years relative to debtors." He points to the example of what happened with interest rates in the U.S. during the 1946-1979. During that period, interest rates stayed right about at 2.5%, and offered substantially lower real interest rates. Mr. Gross sees the same scenario playing out once again, and I certainly would not be surprised to see the government to continue to keep rates as historically low levels. The fallout from this policy will be tough on anyone who is not willing to take on any investing risk in stocks. Social Security increases will be insignificant, if we get any at all. The last couple of years saw no increase and the latest prediction is for an increase of less than 1% for next year.
Dividend investing allows an investor the opportunity to put compound interest to work for them. I have several colleagues of mine who have been looking into income-producing real estate properties in the Northeast, who despite the tumble in real estate prices, have a tough time finding properties that work soundly from a cash flow standpoint. They want to pay $0 in premium for potential property value increases, as many real estate investors who were burned had been doing without even a second thought. Finding places to put your money is what many are struggling with today. Buying businesses is a good option, but only if you do your homework and understand the situation you will be embarking on. You can do well with a business, but there is risk you can lose your investment if you mess up the execution. Owning a business is definitely the riskiest of the three income-producing options above.
Frequently, we're asked by Dividend.com readers about exactly how to qualify to receive a dividend payout. Here is the short answer you need to know:
In order to receive a company's dividend payout, you must own the shares prior to the ex-dividend date. You can then sell the stock anytime on or after the ex-dividend date and still receive the payout.
I bring this point up because you'd be surprised at how many brokers give clients the wrong information when it comes dividend payouts and how you qualify for them. If you are someone who likes to invest around dividend dates, be sure to get on the same page with your broker so there are no assumptions to whatever you are looking to do with capturing dividend payouts. Of course, we prefer investors to look at the long term and build a quality dividend portfolio, but many readers are also interested in capturing dividends.
Dividend investors that are looking for income should not be distracted by the headline grabbers and instead be looking for opportunities in companies that are currently on our Best Dividend Stocks List . Our main focus is on quality dividend names with attractive yields, and this should be the main focus for all those that are hoping to build income for the long-term. We will continue to parse through our data to make sure only the names we like best remain on our recommended list. Remember, if we downgrade stocks from the list, it is not a sell call! Only in very rare instances will we advocate liquidating positions in a formerly recommended name. We just want to have the best names from a risk/reward standpoint on our recommended list for new money at all times. Investors should however utilize a sell strategy in the event a company you own drops 25% from its 52-week high and there are company-specific problems that could cause additional significant underperformance for that particular stock.
Thanks for reading, and I'll see you tomorrow! P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in thefinancial newsloop that could affect them.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Investors should however utilize a sell strategy in the event a company you own drops 25% from its 52-week high and there are company-specific problems that could cause additional significant underperformance for that particular stock. Getting rid of shaky investors/traders will eventually strengthen a stock's shareholder base and will lead to shallower pullbacks in times of overall market volatility. And as always, pullbacks provide better entry points for investors looking to get into the Best Dividend Stocks money can buy.
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I have several colleagues of mine who have been looking into income-producing real estate properties in the Northeast, who despite the tumble in real estate prices, have a tough time finding properties that work soundly from a cash flow standpoint. Getting rid of shaky investors/traders will eventually strengthen a stock's shareholder base and will lead to shallower pullbacks in times of overall market volatility. And as always, pullbacks provide better entry points for investors looking to get into the Best Dividend Stocks money can buy.
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It's on days like we saw yesterday that dividend investors are the few that pull out a shopping list of stocks to buy. Of course, we prefer investors to look at the long term and build a quality dividend portfolio, but many readers are also interested in capturing dividends. Dividend investors that are looking for income should not be distracted by the headline grabbers and instead be looking for opportunities in companies that are currently on our Best Dividend Stocks List .
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And as always, pullbacks provide better entry points for investors looking to get into the Best Dividend Stocks money can buy. Dividend investors that are looking for income should not be distracted by the headline grabbers and instead be looking for opportunities in companies that are currently on our Best Dividend Stocks List . We just want to have the best names from a risk/reward standpoint on our recommended list for new money at all times.
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1af9f6a6-2d12-4400-ba04-f48fa7d0c249
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723204.0
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2011-06-01 00:00:00 UTC
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Pace of U.S. Manufacturing Slowing
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DE
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https://www.nasdaq.com/articles/pace-us-manufacturing-slowing-2011-06-01
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nan
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nan
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Manufacturing has been one of the few bright spots in an otherwise tepid economic climate but the shine is unfortunately fading.
The Institute for Supply Management ( ISM ) said in its Purchasing Managers Index (PMI) U.S. manufacturing slowed during May by 6.9 percent from April. The PMI finished at 53.5 percent versus 60.4 percent for April. Steep declines were seen in new orders, production and backlog orders.
Consumer discretionary stocks (NYSEArca: XLY) and industrial stocks (NYSEArca: XLI) have been among the top performing industry sectors over the past year, but the PMI report could put that run in jeopardy. May's PMI data was the first reading below 60 percent for 2011, as well as the lowest PMI reported for the past 12 months. What's wrong?
Problem Areas
A look underneath the hood reveals some problem areas for the U.S. economy.
The sub-indexes with the greatest declines were new orders (-10.7 percent) and backlog orders (-10.5 percent). In each case, Japan's earthquake was a factor, particularly with a shortage of computer, electronic parts and electrical equipment, which contributed to losses in both sub-indexes. Are May's numbers a short-term blip or a longer-term trend?
In other categories, swift declines within new orders were also experienced in furniture and related products, printing and related support activities and food, beverage and tobacco products. Put another way, consumers aren't consuming as much as before.
Remember: New orders and backlog orders provide important clues of future economic activity and today's readings could be a precursor of slower growth ahead.
Another big issue for the manufacturing sector is inflation.
'Manufacturers continue to experience significant cost pressures from commodities and other inputs,' said the ISM report . This is especially bad news for consumers. Inevitably, the higher cost of raw goods makes its way through the economic chain and eventually hits consumers in the wallet via higher prices. Surging commodity prices (NYSEArca: GSG) amid tepid economic growth is not the recipe for a recovery.
Summary
The ISM Manufacturing survey is a barometer of manufacturing activity, particularly from the angle of purchasing managers employed by U.S. companies in the manufacturing sector. It surveys 400 companies in 20 sectors on new orders, inventories, employment and production. The PMI's headline numbers are published based upon the survey's results.
Unfortunately, May's PMI report does not signal a U.S. economy in expansion mode. The expansion, itseems, is happening in emerging market countries (NYSEArca: EEM) but not here. Interestingly, multi-national companies like Caterpillar ( CAT ) and Deere ( DE ) have benefited from overseas activity, but will it be enough to keep the industrial sector afloat?
In conclusion, the full and active participation of U.S. consumers on a wide scale is required for the U.S. economy to mend itself back to full health. And only until then, a recovery is not a recovery unless it's a recovery.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 each case, Japan's earthquake was a factor, particularly with a shortage of computer, electronic parts and electrical equipment, which contributed to losses in both sub-indexes. Interestingly, multi-national companies like Caterpillar ( CAT ) and Deere ( DE ) have benefited from overseas activity, but will it be enough to keep the industrial sector afloat? The Institute for Supply Management ( ISM ) said in its Purchasing Managers Index (PMI) U.S. manufacturing slowed during May by 6.9 percent from April.
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The Institute for Supply Management ( ISM ) said in its Purchasing Managers Index (PMI) U.S. manufacturing slowed during May by 6.9 percent from April. Steep declines were seen in new orders, production and backlog orders. Problem Areas A look underneath the hood reveals some problem areas for the U.S. economy.
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The sub-indexes with the greatest declines were new orders (-10.7 percent) and backlog orders (-10.5 percent). The Institute for Supply Management ( ISM ) said in its Purchasing Managers Index (PMI) U.S. manufacturing slowed during May by 6.9 percent from April. Steep declines were seen in new orders, production and backlog orders.
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The Institute for Supply Management ( ISM ) said in its Purchasing Managers Index (PMI) U.S. manufacturing slowed during May by 6.9 percent from April. Steep declines were seen in new orders, production and backlog orders. Problem Areas A look underneath the hood reveals some problem areas for the U.S. economy.
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281fc9a3-4b8f-444b-81a1-1c9322567375
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723205.0
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2011-05-29 00:00:00 UTC
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Vertical Credit Spreads & Clues About S&P500 Left Behind by the Russell
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DE
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https://www.nasdaq.com/articles/vertical-credit-spreads-clues-about-sp500-left-behind-russell-2011-05-29
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nan
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nan
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Before discussing why I think the S&P 500 may be setting up to rally I have to discuss an options strategy that often times is overlooked. Besides writing covered calls and cash-secured naked puts (same risk profile by the way), one of the most basic spread constructions available to option traders is the vertical spread.
A vertical spread can be written when an option trader believes prices are going up (bull call spread) or when prices are going down (bear put spread). In addition to the previous trades which are placed as debit trades, option traders also have the ability to place vertical credit spreads too. While vertical spreads regardless of nature are a very basic option trading strategy, they can produce strong returns with defined risk.
A brief description of a vertical debit spread involves buying a call or put and simultaneously selling a strike further away from the money. Vertical debit spreads always have a directional bias depending on whether calls or puts or used. The sale of the call or put that is further away from the money results in a credit and helps reduce the total cost of the spread thereby reducing the capital risk. A call debit spread, also called a bull call spread is used when a trader expects higher prices. A put debit spread, also called a bear put spread is utilized when the option trader expects lower prices.
A vertical credit spread is established in the opposite construction of a vertical debit spread. The construction involves selling a call or put that is closer to the money and buying a strike that is further away from the money. This strategy profits from time decay as well as price action. The maximum gain is limited to the difference in the credit received for the contract that is sold and the debited premium that is required to purchase the long strike. Vertical credit spreads always result in a trader receiving a credit. A call credit spread, also known as a bear call spread is used when an option trader is expecting lower prices. A put credit spread, also known as a bull put spread is utilized when an option trader expects higher prices.
I typically use vertical debit spreads when I want to place a trade that has defined risk and when I am expecting an underlying's price action to move in a specific direction. However, vertical credit spreads are often overlooked by many traders and this is most certainly a mistake. My favorite time to utilize a vertical credit spread is when price action across the equity indices is ugly. In fact, a nasty selloff where implied volatility is juiced in most equities presents an outstanding opportunity to construct vertical credit spreads.
With the commodity complex getting hammered recently as the U.S. Dollar increased in value, a lot of the agriculture based companies have suffered. The ETF MOO as an example has lost close to 10% from recent highs. I was stalking $MOO looking for a bottom in the price action and on May 23 I looked on as MOO was close to testing its 200 period moving average shown below:
I had also been stalking Deere & Company ( DE ) for a while looking for a bottom. As it turns out, $DE is the single largest individual holding held in the MOO ETF. When I saw MOO bounce near its 200 period moving average while at the same time I looked on as $DE closed in on its 200 period moving average I felt that we were near a short to intermediate term bottom in the agriculture space. I immediately looked at the $DE option chain as well as the historical implied volatility chart. The trade offered solid risk definition as the 200 period moving average was my support level and credit spreads offer an option trader precise capital risk attributes.
Since Deere & Company had been under significant selling pressure implied volatility was elevated which would also put the wind at my back. When writing credit spreads, implied volatility is critical and must be monitored. I knew I was selling juiced option premium as the implied volatility was historically elevated. The closest at the money strike on the put side was the June DE 80 Put contract. I proceeded to sell the June DE 80 Put contracts and bought the June DE 77.50 Put contracts in a 1:1 ratio to setup the spread.
The maximum risk per put credit spread was $197. The maximum gain was $53 per spread. At expiration the maximum yield would be earned if $DE closed at $80/share or more. The maximum yield of the trade would be 27% (53 / 197) based on maximum risk. The profitability curve of the DE Put Credit Spread is shown below:
I had absolutely no intention of holding this trade to expiration. In fact, my trading plan was to close the trade as soon as a 15% return based on max risk was reached. I employed a hard stop based on the underlying Deere & Company stock price of $80.90 /share. Essentially the trade had a 1:1 risk versus reward ratio (also referred to by traders as a 1R trade). I entered the trade and at this point still have the trade open, but with the higher prices I am seeing this morning (Friday) in $DE, I will be closing my trade with a gain near 15% of my maximum risk and 100% of my hard stop based risk.
Often times option traders overlook basic trading strategies like a vertical credit spread. In a stock market correction or in a situation where a particular underlying has been under selling pressure for quite some time and implied volatility is juiced and a major support/resistance level is nearby, vertical credit spreads offer solid risk / reward. Often times option traders fail to use basic strategies like vertical spreads which provide them the opportunity to trade around bounces, topping patterns, and bottoming patterns without the total capital risk associated with buying/shorting stock.
Russell 2000 Index (IWM)
Members of the service I run are used to seeing analysis about the Russell 2000 Index on a daily basis. Every day I monitor the price action in the Russell 2000 Index (IWM), the Dow Jones Transportation Index (IYT), and the financial complex (XLF). Quite often one, if not all of these ETF's start throwing off clues about Mr. Market's favored market direction.
During strong moves in the market, all 3 ETF's will generally be moving in the same direction regardless of whether prices are going up or down. If the move is strong and has momentum they all move the same way, but generally speaking one of the ETF's displays relative strength against the S&P 500 and the other ETF's.
Recently the Russell 2000 Index started showing signs of life and then the transports and financials followed the small caps higher. While both the Transports (IYT) and financials (XLF) traded higher the past two days, neither have had the relative strength that the Russell 2000 ETF (IWM) has shown. When the small caps speak, I listen and they have been screaming the past two days that higher prices may be likely next week and into the first week of June. However, as the daily chart of IWM below illustrates, they have some major work to do the rest of Friday and next week.
If the price action in IWM can push above the upper bound of the recent downtrend and show continuation higher, we will likely watch as the S&P 500 pushes up to the key 1340 price level for a retest. If the S&P 500 is able to penetrate the resistance area I believe we will likely see the 1,400 - 1,450 S&P price level come into play. The daily chart of the S&P 500 Index (SPX) is shown below:
I am leaning bullish on the S&P 500 and risk assets in general (commodities) going into the final week of May and the early part of June. I am expecting a news event to move the markets in a big way within the first few weeks of June. My guess is that an announcement coming out of Europe will be the headline that finally pushes the market into overdrive. For right now, the price action is coiled and we are about to witness a big move.
While I am leaning bullish, I am certainly not willing to risk capital in an attempt to game price action. I will sit back and wait for price action to confirm and pick my spots. Anticipatory trades do not fit my risk tolerance or trading style and I consider them sophisticated gambling. I'm going to let others do the heavy lifting and wait for confirmation about the trend's direction. At this point in time, the small caps are signaling that higher prices are likely for equities but the real question is whether Mr. Market is just toying with us and this is nothing more than a head fake. Risk is excruciatingly high.
If you would like to be informed several times per week on SP 500, Volatility Index, Gold, and Silver intermediate direction and option trade alerts... take a look at http://www.optionstradingsignals.com/specials/index.php today for a 24 hour 66% off coupon, and/or sign up for our occasional free updates.
JW Jones
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I typically use vertical debit spreads when I want to place a trade that has defined risk and when I am expecting an underlying's price action to move in a specific direction. The daily chart of the S&P 500 Index (SPX) is shown below: I am leaning bullish on the S&P 500 and risk assets in general (commodities) going into the final week of May and the early part of June. If you would like to be informed several times per week on SP 500, Volatility Index, Gold, and Silver intermediate direction and option trade alerts... take a look at http://www.optionstradingsignals.com/specials/index.php today for a 24 hour 66% off coupon, and/or sign up for our occasional free updates.
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A put debit spread, also called a bear put spread is utilized when the option trader expects lower prices. The trade offered solid risk definition as the 200 period moving average was my support level and credit spreads offer an option trader precise capital risk attributes. In a stock market correction or in a situation where a particular underlying has been under selling pressure for quite some time and implied volatility is juiced and a major support/resistance level is nearby, vertical credit spreads offer solid risk / reward.
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A vertical spread can be written when an option trader believes prices are going up (bull call spread) or when prices are going down (bear put spread). A put debit spread, also called a bear put spread is utilized when the option trader expects lower prices. A put credit spread, also known as a bull put spread is utilized when an option trader expects higher prices.
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I typically use vertical debit spreads when I want to place a trade that has defined risk and when I am expecting an underlying's price action to move in a specific direction. Recently the Russell 2000 Index started showing signs of life and then the transports and financials followed the small caps higher. Besides writing covered calls and cash-secured naked puts (same risk profile by the way), one of the most basic spread constructions available to option traders is the vertical spread.
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9211d718-7c91-4fc0-abeb-15453892165e
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723206.0
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2011-05-25 00:00:00 UTC
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Juiced Up U.S. Economy is Losing its Juice
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DE
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https://www.nasdaq.com/articles/juiced-us-economy-losing-its-juice-2011-05-25
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nan
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nan
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Orders for durable goods in April declined 3.6 percent. The main culprit, according to mainstream media reports, was supply disruptions caused by Japan's March earthquake and less demand for aircraft equipment. Other scapegoats were considered but couldn't be located before article deadlines.
Durable goods are generally defined as items like refrigerators and cars that can be used for a few years before wearing out.
Motor vehicles sales (NYSEArca: VROM) and parts dropped 4.5 percent as Japan's production/supply issues infected the output for U.S. automobile sector .
The worst news was in the aerospace sector (NYSEArca: FAA) where Boeing ( BA ) received just two orders in April compared to 98 in March. The durable goods report showed a 30 percent drop in civilian airplane orders and 8.9 percent slump in military aircraft. The one piece of silver lining, according to a completely different report, is that people are still flying.
One of the few bright spots has been with demand for agriculture and construction equipment from developing countries (NYSEArca: EEM). Sales of farm equipment and machinery has been boosting stocks in the industrial sector (NYSEArca: XLI) over the past year. Deere ( DE ) increased its earnings forecast for 2011 and General Electric ( GE ) sees more demand for its energy related products.
Interestingly, the Aprildecline in orders for durable goods was more than the minus 2.5 percent figure a group of economists polled by Bloomberg had originally forecasted. How many times has the collective 'wisdom' of consensus forecasts been wrong? Help me out, because I lost count. Or as Nobel Prize winning economist Paul Samuelson quipped, 'Wall Street indexes predicted nine out of the last five recessions.'
Sub-2 percent readings for second quarter GDP look realistic. And so does another round of Fed administered QE juice.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 main culprit, according to mainstream media reports, was supply disruptions caused by Japan's March earthquake and less demand for aircraft equipment. Interestingly, the Aprildecline in orders for durable goods was more than the minus 2.5 percent figure a group of economists polled by Bloomberg had originally forecasted. Orders for durable goods in April declined 3.6 percent.
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The durable goods report showed a 30 percent drop in civilian airplane orders and 8.9 percent slump in military aircraft. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Orders for durable goods in April declined 3.6 percent.
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The durable goods report showed a 30 percent drop in civilian airplane orders and 8.9 percent slump in military aircraft. Interestingly, the Aprildecline in orders for durable goods was more than the minus 2.5 percent figure a group of economists polled by Bloomberg had originally forecasted. Orders for durable goods in April declined 3.6 percent.
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Orders for durable goods in April declined 3.6 percent. The durable goods report showed a 30 percent drop in civilian airplane orders and 8.9 percent slump in military aircraft. The main culprit, according to mainstream media reports, was supply disruptions caused by Japan's March earthquake and less demand for aircraft equipment.
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a42ff2c6-a77c-44f8-bcd4-9603c4231b1f
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723207.0
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2011-05-24 00:00:00 UTC
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Deere Boosts Dividend by 17%; Announces New Factory in China (DE)
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DE
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https://www.nasdaq.com/articles/deere-boosts-dividend-17-announces-new-factory-china-de-2011-05-24
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nan
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nan
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Farming and construction equipment maker Deere & Company ( DE ) on Tuesday announced a 17% raise to its quarterly dividend payout and unveiled plans to build a new factory in China.
The factory will be used to manufacture engines for John Deere equipment that is assembled in China. Deere said the $60 million investment will be made in the Tianjin Economic and Development Area, where the company already boasts other facilities.
The company also said it would raise its quarterly dividend by 17% to 41 cents, up from a prior payout of 35 cents per share. The new dividend will be payable on Aug. 1 to shareholders of record as of June 30.
The latest dividend raise marks the ninth time DE has boosted its payout since 2004.
Deere shares rose 54 cents, or +0.7%, in premarket trading Tuesday.
The Bottom Line
Shares of Deere & Co. ( DE ) will now have a 1.97% dividend yield based on the higher dividend payout and last night's closing stock price of $83.06. The stock has technical support in the $75-$80 price area. If the shares can firm up, we see overhead resistance around the $85-$88 price levels.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farming and construction equipment maker Deere & Company ( DE ) on Tuesday announced a 17% raise to its quarterly dividend payout and unveiled plans to build a new factory in China. Deere said the $60 million investment will be made in the Tianjin Economic and Development Area, where the company already boasts other facilities. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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Farming and construction equipment maker Deere & Company ( DE ) on Tuesday announced a 17% raise to its quarterly dividend payout and unveiled plans to build a new factory in China. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The factory will be used to manufacture engines for John Deere equipment that is assembled in China.
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Farming and construction equipment maker Deere & Company ( DE ) on Tuesday announced a 17% raise to its quarterly dividend payout and unveiled plans to build a new factory in China. The company also said it would raise its quarterly dividend by 17% to 41 cents, up from a prior payout of 35 cents per share. The Bottom Line Shares of Deere & Co. ( DE ) will now have a 1.97% dividend yield based on the higher dividend payout and last night's closing stock price of $83.06.
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Farming and construction equipment maker Deere & Company ( DE ) on Tuesday announced a 17% raise to its quarterly dividend payout and unveiled plans to build a new factory in China. The Bottom Line Shares of Deere & Co. ( DE ) will now have a 1.97% dividend yield based on the higher dividend payout and last night's closing stock price of $83.06. The factory will be used to manufacture engines for John Deere equipment that is assembled in China.
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4f904aca-793e-4564-88d5-46b7a5bb3a6d
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723208.0
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2011-05-19 00:00:00 UTC
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Deere Downgraded to “Hold” at Jefferies; Price Target Cut (DE)
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DE
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https://www.nasdaq.com/articles/deere-downgraded-hold-jefferies-price-target-cut-de-2011-05-19
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nan
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nan
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Farming and construction equipment maker Deere & Company ( DE ) on Thursday saw its rating and price target lowered by analysts at Jefferies & Co.
The firm said it downgraded DE from "Buy" to "Hold" and cut its price target from $110 to $92. That new target suggests a much smaller upside of 6% to the stock's Wednesday closing price of $86.50.
A Jefferies analyst commented, "DE reported F2Q EPS of $2.12 vs consensus of $2.05. Guidance upped to meet consensus of ~$6.25. However, we are downgrading to Hold with a $92 price target as lower incrementals and some potential ag market headwinds suggest less upside going forward."
Deere shares were mostly flat in premarket trading Thursday.
The Bottom Line
Shares of Deere ( DE ) have a 1.62% dividend yield, based on last night's closing stock price of $86.50. The stock has technical support in the $80 price area. If the shares can firm up, we see overhead resistance around the $90-$92 price levels.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farming and construction equipment maker Deere & Company ( DE ) on Thursday saw its rating and price target lowered by analysts at Jefferies & Co. However, we are downgrading to Hold with a $92 price target as lower incrementals and some potential ag market headwinds suggest less upside going forward." The Bottom Line Shares of Deere ( DE ) have a 1.62% dividend yield, based on last night's closing stock price of $86.50.
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Farming and construction equipment maker Deere & Company ( DE ) on Thursday saw its rating and price target lowered by analysts at Jefferies & Co. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The firm said it downgraded DE from "Buy" to "Hold" and cut its price target from $110 to $92.
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Farming and construction equipment maker Deere & Company ( DE ) on Thursday saw its rating and price target lowered by analysts at Jefferies & Co. The firm said it downgraded DE from "Buy" to "Hold" and cut its price target from $110 to $92. The Bottom Line Shares of Deere ( DE ) have a 1.62% dividend yield, based on last night's closing stock price of $86.50.
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Farming and construction equipment maker Deere & Company ( DE ) on Thursday saw its rating and price target lowered by analysts at Jefferies & Co. The firm said it downgraded DE from "Buy" to "Hold" and cut its price target from $110 to $92. The Bottom Line Shares of Deere ( DE ) have a 1.62% dividend yield, based on last night's closing stock price of $86.50.
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5c2f719b-046c-4ebc-af95-bb76b87443ee
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723209.0
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2011-05-18 00:00:00 UTC
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Opening View: Futures Flat Ahead of FOMC Minutes; DELL, DE, SPLS Step Up to the Earnings Podium
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DE
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https://www.nasdaq.com/articles/opening-view-futures-flat-ahead-fomc-minutes-dell-de-spls-step-earnings-podium-2011-05-18
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nan
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nan
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A dismal forecast from Hewlett-Packard (HPQ) and disappointing economic data sent U.S. equities reeling on Tuesday, with the Dow Jones Industrial Average (DJIA ) ending south of 12,500 for the first time since April 25. In pre-market action today, stocks are having a harder time picking a direction, with investors absorbing a mixed bag of earnings reports from Dell Inc. ( DELL ), Deere & Co. ( DE ), and Staples (SPLS), among others. What's more, many traders will likely remain on the sidelines until this afternoon, when the Federal Open Market Committee (FOMC) will release its latest meeting minutes. Against this backdrop, the Dow is trading about 4.5 points below fair value, while the broader S&P 500 Index (SPX ) is sticking closer to breakeven, up about half a point.
On the earnings front, Dell Inc. (DELL - 15.90) pulled down a first-quarter profit of $945 million, or 49 cents per share, nearly tripling its year-ago earnings of $341 million, or 17 cents per share. Excluding items, DELL earned 55 cents per share, while revenue improved 1% to $15.02 billion. The results were mixed, with Wall Street looking for a profit of just 44 cents per share on higher revenue of $15.4 billion. For the full fiscal year ahead, DELL now expects operating income to grow 12% to 18%, substantially higher than its earlier growth forecast of 6% to 12%. At last check, DELL is set to open about 5.5% higher.
Meanwhile, Deere & Co. (DE - 86.96) reported a fiscal second-quarter profit of $904.3 million, or $2.12 per share, up 65% from the year-ago quarter. Sales soared 25% to $8.12 billion. Analysts, on average, were expecting a quarterly profit of $2.06 per share on revenue of $8.14 billion. For the current quarter, DE forecast year-over-year sales growth of 20%, and said it now expects equipment sales to rise 21% to 23% during the fiscal year, up from its previous guidance for an 18% to 20% improvement. Furthermore, the farming equipment manufacturer lifted its fiscal-year earnings estimates by $150 million to $2.65 billion. In pre-market trading, DE is hovering just a hair's breadth south of breakeven
Elsewhere, Staples Inc. (SPLS - 19.65) said first-quarter profit rose to $198.2 million, or 28 cents per share, from $188.8 million, or 26 cents per share, a year earlier. Meanwhile, revenue edged 2% higher to $6.17 billion. The results fell short of the Street's expectations for a quarterly profit of 32 cents per share on sales of $6.2 billion. What's more, the office supplier cut its 2011 earnings guidance to a range of $1.35 to $1.45 per share, from its previous forecast for earnings of $1.50 to $1.60 per share. Analysts, on average, projected full-year earnings of $1.53 per share. Ahead of the bell, SPLS is poised to surrender about 11% out of the gate.
Finally, Target Corp. (TGT - 50.78) said it earned $689 million, or 99 cents per share, in the first quarter -- up from $671 million, or 90 cents per share, in the year-ago quarter, and above analysts' expectations for per-share earnings of 94 cents. Sales rose 2.8% to $15.58 billion, while total revenue -- which includes credit card sales -- advanced 2.2% to $15.94 billion. Analysts, on average, were anticipating sales of $16 billion. At last check, TGT has tacked on 1%.
Earnings Preview
Today's earnings docket will feature reports from Abercrombie & Fitch ( ANF ), Advance Auto Parts ( AAP ), Hot Topic (HOTT), NetEase.com (NTES), and Pan American Silver (PAAS), just to name a few. Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
The economic agenda features the regularly scheduled update on domestic petroleum supplies, as well as the minutes from the latest meeting of the Federal Open Market Committee (FOMC). Finally, the economic calendar wraps up early on Thursday, with a flurry of data on the docket. Traders will hear the weekly report on jobless claims, the Philly Fed index for May, April's existing home sales, and the Conference Board's index of leading economic indicators.
Market Statistics
Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,122,550 call contracts traded on Tuesday, compared to 848,732 put contracts. The resultant single-session put/call ratio jumped to 0.76, while the 21-day moving average remained at 0.63.
The spring 2011 issue of SENTIMENT magazine is now available here.
Overseas Trading
Markets in Asia settled north of breakeven today, as bargain-hunters scooped up stocks in beaten-down sectors. In Japan, banks and utilities led the charge higher, while chip issue Renesas Electronics surged on news that it will restart production at its quake-damaged Naka facility. Automakers Hyundai Motor and Kia Motors were a pocket of strength in Korea, while a solid day for commodity stocks helped propel Shanghai-listed stocks to a positive finish. Optimism over the prospects for gambling revenue growth in Macau provided a boost in Hong Kong, with shares of SJM Holdings and Wynn Macau closing comfortably higher. By the close, South Korea's Kospi added 1.6%, Japan's Nikkei collected a 1% gain, China's Shanghai Composite rose 0.7%, and the Hong Kong Hang Seng tacked on 0.5%.
European shares are flirting with modest gains at midday, as financial leaders in the region move forward on a plan to aid cash-strapped Greece. Jean-Claude Juncker, the prime minister of Luxembourg and chair for the group of euro-zone finance ministers, said a "soft restructuring of Greek debt" may be possible, though he's "strictly opposed" to a major overhaul. Meanwhile, well-received quarterly results from Land Securities Group provided a boost for real estate stocks, while rebounding commodity prices prompted gains in mining issues. At last check, London's FTSE 100 and the French CAC 40 have each added 0.8%, while the German DAX is 0.5% higher.
Currencies and Commodities
The greenback has given back some of Tuesday's gains, with the U.S. dollar index down almost 0.1% at last check. Elsewhere, black gold has recovered a portion of yesterday's losses, with June-dated crude futures up $1.23, or 1.3%, to trade near $98.66 per barrel. Meanwhile, gold and silver futures are also bouncing back from multi-week lows, with the front-month contracts up about 0.9% and 3.2%, respectively.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and 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 the close, South Korea's Kospi added 1.6%, Japan's Nikkei collected a 1% gain, China's Shanghai Composite rose 0.7%, and the Hong Kong Hang Seng tacked on 0.5%. Meanwhile, well-received quarterly results from Land Securities Group provided a boost for real estate stocks, while rebounding commodity prices prompted gains in mining issues. In pre-market action today, stocks are having a harder time picking a direction, with investors absorbing a mixed bag of earnings reports from Dell Inc. ( DELL ), Deere & Co. ( DE ), and Staples (SPLS), among others.
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In pre-market trading, DE is hovering just a hair's breadth south of breakeven Elsewhere, Staples Inc. (SPLS - 19.65) said first-quarter profit rose to $198.2 million, or 28 cents per share, from $188.8 million, or 26 cents per share, a year earlier. Market Statistics Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,122,550 call contracts traded on Tuesday, compared to 848,732 put contracts. In pre-market action today, stocks are having a harder time picking a direction, with investors absorbing a mixed bag of earnings reports from Dell Inc. ( DELL ), Deere & Co. ( DE ), and Staples (SPLS), among others.
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On the earnings front, Dell Inc. (DELL - 15.90) pulled down a first-quarter profit of $945 million, or 49 cents per share, nearly tripling its year-ago earnings of $341 million, or 17 cents per share. In pre-market trading, DE is hovering just a hair's breadth south of breakeven Elsewhere, Staples Inc. (SPLS - 19.65) said first-quarter profit rose to $198.2 million, or 28 cents per share, from $188.8 million, or 26 cents per share, a year earlier. In pre-market action today, stocks are having a harder time picking a direction, with investors absorbing a mixed bag of earnings reports from Dell Inc. ( DELL ), Deere & Co. ( DE ), and Staples (SPLS), among others.
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At last check, DELL is set to open about 5.5% higher. Currencies and Commodities The greenback has given back some of Tuesday's gains, with the U.S. dollar index down almost 0.1% at last check. In pre-market action today, stocks are having a harder time picking a direction, with investors absorbing a mixed bag of earnings reports from Dell Inc. ( DELL ), Deere & Co. ( DE ), and Staples (SPLS), among others.
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d99dd9b0-7748-422c-a3b0-d976d45f301d
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723210.0
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2011-05-13 00:00:00 UTC
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Jefferies Maintains “Buy” Rating on Deere Ahead of Q2 Results (DE)
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DE
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https://www.nasdaq.com/articles/jefferies-maintains-buy-rating-deere-ahead-q2-results-de-2011-05-13
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nan
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nan
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Farm and construction equipment maker Deere & Company ( DE ) on Friday saw its "Buy" rating reiterated by analysts at Jefferies & Co. ahead of next week's earnings report.
The firm also backed its $110 price target DE, which suggests a 22% upside to the stock's Thursday closing price of $90.36.
A Jefferies analyst commented, "DE is known for conservative guidance, and we expect that similar to other companies in the quarter, DE is likely to only raise guidance by the quarterly beat. Given a Q3 C&F shutdown for SAP transition, Japan impact, commodity cost volatility, iT4 transition costs, and higher R&D. DE could raise its European A&T end market forecast given a strong start to the year, but given consensus already 6% over guidance, we believe guidance is unlikely to exceed the Street."
Deere is slated to report its second quarter earnings on the morning of May 18. DE shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of Deere ( DE ) have a 1.55% dividend yield, based on last night's closing stock price of $90.36. The stock has technical support in the $85-$87 price area. The shares are trading near all-time highs of $97-$100 a share.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farm and construction equipment maker Deere & Company ( DE ) on Friday saw its "Buy" rating reiterated by analysts at Jefferies & Co. ahead of next week's earnings report. The Bottom Line Shares of Deere ( DE ) have a 1.55% dividend yield, based on last night's closing stock price of $90.36. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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Farm and construction equipment maker Deere & Company ( DE ) on Friday saw its "Buy" rating reiterated by analysts at Jefferies & Co. ahead of next week's earnings report. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The firm also backed its $110 price target DE, which suggests a 22% upside to the stock's Thursday closing price of $90.36.
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Farm and construction equipment maker Deere & Company ( DE ) on Friday saw its "Buy" rating reiterated by analysts at Jefferies & Co. ahead of next week's earnings report. A Jefferies analyst commented, "DE is known for conservative guidance, and we expect that similar to other companies in the quarter, DE is likely to only raise guidance by the quarterly beat. The Bottom Line Shares of Deere ( DE ) have a 1.55% dividend yield, based on last night's closing stock price of $90.36.
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Farm and construction equipment maker Deere & Company ( DE ) on Friday saw its "Buy" rating reiterated by analysts at Jefferies & Co. ahead of next week's earnings report. A Jefferies analyst commented, "DE is known for conservative guidance, and we expect that similar to other companies in the quarter, DE is likely to only raise guidance by the quarterly beat. The Bottom Line Shares of Deere ( DE ) have a 1.55% dividend yield, based on last night's closing stock price of $90.36.
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4cba07bb-e0e2-4cfe-86a3-c8a1354cf90e
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723211.0
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2011-04-07 00:00:00 UTC
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3 Sectors to Avoid During High Oil Prices
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DE
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https://www.nasdaq.com/articles/3-sectors-avoid-during-high-oil-prices-2011-04-07
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nan
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nan
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For the past five months, I've grown increasingly concerned about the steady surge in oil prices. Back in November ,I noted that several sectors could be affected if oil moved past $100 a barrel. With oil now approaching $110 a barrel, you can forget that qualified statement. Oil will affect various swaths in the economy .
Here's why…
Some market watchers suggest oil has only temporarily moved onto a higher plane and that prices will eventually come back down. Then again, they've been saying that for the past six months. It's increasingly hard to see why oil prices will suddenly pull back.
"The turmoil in the Middle East is unlikely to be resolved quickly or easily, meaning that oil market volatility is likely to remain high," analysts at Merrill Lynch say. At this point, the only major catalyst to bring oil prices back down (besides a sudden resolution to all of the Middle East's troubles) would be a slump in demand. And demand would only fall because oil prices rose so high that they choked off economic activity.
When I looked at surging oil prices again in February, I suggested that airlines, restaurant chains and auto makers would be the first to feel the impact. Recent auto sales trends imply that consumers are quickly switching to smaller new cars. This means the auto industry may be able to make up some of the effect from falling pick-up truck sales. Yet other sectors and asset classes won't be so lucky -- these groups are sure to start feeling the pain.
Emerging markets
After a powerful multi-year rally, I fear emerging markets will take it on the chin in 2011. Many of these countries are grappling with rising inflation , which is leading their central banks to start raising interest rates. Oil plays such a big role in many of these economies that these central bankers will be forced to raise rates even more than they would like. This leads to a strong possibility that these economies will cool or even flatten out.
Which countries are vulnerable? Let's start with Korea. The iShares MSCI South Korea Index (NYSE: EWY ) has recently surged on expectations that lost economic activity in Japan will be picked up in Korea. The index has doubled in the past two years. Yet South Korea's central bank just announced that inflation has risen to 4.7%, a 29-month high -- and that's before the impact of the further recent spike in oil prices. From shipbuilding to consumer electronics, Korea is highly dependent on freight traffic and freight costs. Yet unless oil prices fall back below $100 a barrel this year, orders for new Korean ships are bound to slow sharply as trans-oceanic freight volume starts to drop.
If you own any emerging-market investments, take a close look at whether that country or region is a net exporter or importer of oil. Oil exporters such as Brazil will at least generate rising income from oil, even as their central banks continue to try to tame inflation.
Lodging/travel
Gasoline prices are approaching $4 a gallon in many places, right at a time when many consumers are starting to plan summer vacations. In the most recent monthly survey of consumers by the University of Michigan, expectations of future inflation rose from 2.9% to 3.2%, the highest since early 2008, with most citing gas prices as their concern. All of the sudden, a 400-mile road trip becomes that much more expensive. So an increasing number of consumers may look to take local vacations and save on fueling expenses. The same logic applies to business travel, as expense receipts start to show sticker shock.
This may well spell trouble for the lodging industry, which needs high occupancy rates and full prices to make a profit . If occupancy rates fall, price wars ensue and industry profits can take a deep hit. That's what happened a few years ago, the last time oil spiked above $100. If consumer and business travel starts to slow, then lodging stocks such as Marriott (NYSE: MAR ) and even Disney (NYSE: DIS ) would start to feel the pain. For that matter, cruise ship operators such as Carnival (NYSE: CCL ) and Royal Caribbean (NYSE: RCL ) , both of which count fuel as their largest expense, would surely take a hit to profits.
Agriculture
Fuel is also a major cost component in agriculture, whether it's the gas or diesel powering a tractor, or the expense of delivering produce or livestock to market. Farmers tend to sort out their expenses according to need. They can't easily cut down fuel consumption, but they can easily defer any non-essential spending until cash flow improves.
In recent years, high farm prices have enabled farmers to upgrade everything from irrigation equipment (made by firms such as Lindsay Manufacturing (NYSE: LNN )) to large combines made by Deere (NYSE: DE ) and others. A few years ago, when oil was also in triple-digit territory, demand for these types of equipment fell sharply. The current spike in oil holds a similar threat.
Action to Take --> With every $10 rise in oil, the stock market has still managed to power even higher. All along the way, economists have been suggesting that the U.S. economy can withstand the commodity 's upward move. Yet certain sectors are so dependent on oil that it's impossible to see how they aren't feeling the pain. Share prices may not yet be reflecting the oil spike, but we may finally be at a tipping point. Keep an ear open on first-quarter conference calls. Discussion about rising oil prices is bound to dampen profit outlooks at an increasing number of companies.
-- David Sterman
P.S. -- Few investors realize that a 20-year energy agreement between the United States and Russia is about to expire. This deal supplies 10% of America's electricity. As broke as our government is, the situation is so serious that President Obama is asking for $36 billion to avert this crisis. And Republicans support him. Here's what's going on…
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Yet unless oil prices fall back below $100 a barrel this year, orders for new Korean ships are bound to slow sharply as trans-oceanic freight volume starts to drop. It's increasingly hard to see why oil prices will suddenly pull back. At this point, the only major catalyst to bring oil prices back down (besides a sudden resolution to all of the Middle East's troubles) would be a slump in demand.
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The iShares MSCI South Korea Index (NYSE: EWY ) has recently surged on expectations that lost economic activity in Japan will be picked up in Korea. It's increasingly hard to see why oil prices will suddenly pull back. At this point, the only major catalyst to bring oil prices back down (besides a sudden resolution to all of the Middle East's troubles) would be a slump in demand.
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Yet unless oil prices fall back below $100 a barrel this year, orders for new Korean ships are bound to slow sharply as trans-oceanic freight volume starts to drop. It's increasingly hard to see why oil prices will suddenly pull back. At this point, the only major catalyst to bring oil prices back down (besides a sudden resolution to all of the Middle East's troubles) would be a slump in demand.
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It's increasingly hard to see why oil prices will suddenly pull back. At this point, the only major catalyst to bring oil prices back down (besides a sudden resolution to all of the Middle East's troubles) would be a slump in demand. And demand would only fall because oil prices rose so high that they choked off economic activity.
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464de152-9d32-4034-96bc-403acac0f37c
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723212.0
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2011-03-03 00:00:00 UTC
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Market Wrap-Up for Mar.3 (MET, JOYG, BID, UNH, WLP, CAT, DE, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-mar3-met-joyg-bid-unh-wlp-cat-de-more-2011-03-03
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nan
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nan
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It looks like the customary beginning-of-the-month rally was on a two-day delay as we saw a big jump in the indices this morning. It will interesting to see how we close the day, as the finish is often more telling than the open.
I'm really not sure what else would be causing the rally, but investors certainly won't complain. It's interesting to see how MetLife ( MET ) rallied today after the insurer's large share offering. That news had sent MET shares lower just yesterday. We are also saw a bounce for Sotheby's ( BID ) and Joy Global ( JOYG ), which had dropped earlier in the week following their earnings results. Wall Street upgrades helped HMO giants UnitedHealth ( UNH ) and Wellpoint ( WLP ). Be sure to check out our latest "Top 50 Dividend Stocks on Our Watchlist" post we published earlier today. As I mentioned at the top, not sure why the big pop, especially for the transports which gained nearly 2.5%, with oil down only $.32 at the close. Huge day for industrial stocks, including a couple of names we like - Caterpillar ( CAT ), and Deere ( DE ).
A new report by consulting firm Mckinsey & Company says the average American family faces a 37 percent shortfall in the income they will need in retirement. Another study out from the Center on Retirement Research finds that Social Security benefits will replace just 28 percent of a recipient's pre-retirement income in 2030, on average, down from 39 percent in 2002. The numbers don't lie as key data points like these are warning signs for individuals who have not begun to make the proper financial adjustments. These findings are affecting many different age groups, so understand the problem is wide in scale. For readers that have been on top of their game, taking advantage of maxing out retirement contributions, I congratulate you. Now just make sure you are invested properly! For the many others, this is the time to start the engines and get to it.
The proportion of individuals who continue to work after age 55 reached a record high this year. Some 40.2 percent of Americans age 55 and older participated in the labor force in 2010, a number than has increased steadily since 1993 when just 29.4 percent of older Americans worked, according to an Employee Benefit Research Institute analysis of Census Bureau data. This upward trend is not surprising and is likely to continue because of workers' need for access to employment-based health insurance and for more earning years to accumulate assets in defined contribution (401(k)-type) plans. I personally want to have the choice whether I want to work when I reach my retirement years. Knowing how I am, I doubt I will ever stop "working" per se, but I want to pick and choose the projects I want to be involved in out of excitement and love for what it is I am doing, and not because I need my employer's health benefits.
Everyone has the ability to create their own future. Many are not born with special talents, but instead acquire these skills from hard work, perseverance, and not being afraid to fail. Throw in the willingness to continue to learn and you have the elements required to achieve greatness at some point of your life. Lastly, once you figure out where your special talent lies, stick to that area and just dominate it as much as possible. Being fairly good at five different things is fine, but being the best in a specific category puts you on another playing field. I am trying to get my kids to understand this as they go through the different phases of their life. Whether they are playing sports or taking different electives in school, I am hoping to guide them through identifying their strengths and weaknesses. Now I do want them to improve on their weaknesses, but at the end of the day, hoping they can self-evaluate to what their passions are and what areas they can stand out in.
I want to end today's newsletter by reiterating that investing is not a one-day hit-and-run event. It is, as I always tend to say, like taking care of a garden. If you begin to neglect the garden, it won't be long before the weeds sprout up everywhere and the harvest becomes less and less productive. Don't ever get bored. Stay methodical, look for opportunities, and remain on course by putting funds to work in quality dividend-paying stocks. We're constantly honing our "Best Dividend Stocks" List to include only names we would either initiate a position in or even add to existing positions. It's also a good idea to begin to use more and more of your savings if you can afford to, and start putting it to work for your retirement or other big event in your life. Finding the right strategy for investing is essential (and we feel dividend investing is the best possible solution for the vast majority of everyday investors). Putting what you've learned about investing into practice is the second step. We advocate investors develop a monthly system of putting money to work in your brokerage accounts. Automate this process as best you can, so you remove any barrier of thinking whether you want to skip a month or two if the market is pulling back. Investing isn't a sprint, it's a marathon. Veer off course, and your road to financial success will get longer.
Our new dividend data system, which will include data for several thousand additional dividend stocks (including preferred shares, closed-end funds, etc.) is getting close to being live. I want to thank all our great subscribers for patiently waiting as we get set for this major data upgrade. I look forward to every new investing day as I also know that we continue to attracts lots of new people to our site every day. The challenge to please many investors is enormous, but you can see by our consistent results we don't ever get complacent with what has been achieved, because we know it's always about what's coming up ahead. Is it time to narrow our investment choices? Is the market going to reward growth or value? Whatever it is you can bet we will be all over it.
Thanks for reading, and I'll see you tomorrow! P.S. Please pass this e-mail on to someone you think can use some financial motivation.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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This upward trend is not surprising and is likely to continue because of workers' need for access to employment-based health insurance and for more earning years to accumulate assets in defined contribution (401(k)-type) plans. It looks like the customary beginning-of-the-month rally was on a two-day delay as we saw a big jump in the indices this morning. Wall Street upgrades helped HMO giants UnitedHealth ( UNH ) and Wellpoint ( WLP ).
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We're constantly honing our "Best Dividend Stocks" List to include only names we would either initiate a position in or even add to existing positions. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. It looks like the customary beginning-of-the-month rally was on a two-day delay as we saw a big jump in the indices this morning.
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Some 40.2 percent of Americans age 55 and older participated in the labor force in 2010, a number than has increased steadily since 1993 when just 29.4 percent of older Americans worked, according to an Employee Benefit Research Institute analysis of Census Bureau data. Finding the right strategy for investing is essential (and we feel dividend investing is the best possible solution for the vast majority of everyday investors). Our new dividend data system, which will include data for several thousand additional dividend stocks (including preferred shares, closed-end funds, etc.)
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It's also a good idea to begin to use more and more of your savings if you can afford to, and start putting it to work for your retirement or other big event in your life. Our new dividend data system, which will include data for several thousand additional dividend stocks (including preferred shares, closed-end funds, etc.) It looks like the customary beginning-of-the-month rally was on a two-day delay as we saw a big jump in the indices this morning.
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01996345-2b6e-43c0-b3ab-5f40ff1c85f8
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723213.0
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2011-02-25 00:00:00 UTC
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Market Wrap-Up for Feb.25 (NTRI, WFC, DE, CAT, ETN, JCP, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-feb25-ntri-wfc-de-cat-etn-jcp-more-2011-02-25
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nan
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It was an overall rocky week for the markets, but this has been one of the biggest weeks in recent memory when it comes to dividend increases. We have seen payout boosts this week from the likes of Home Depot ( HD ), Genuine Parts ( GPC ), CME Group ( CME ), Blackrock ( BLK ), Gap Inc. ( GPS ) and numerous others. Plus, we have seen well-known companies like Wellpoint Inc. ( WLP ), Kohl's ( KSS ), CEC Entertainment ( CEC ) (Chuck-E-Cheese's owner), and Interpublic Group ( IPG ). We expect more companies that have not ever paid a dividend to come on board the dividend express as time moves on.
Lots of drama surrounding the NYSE Euronext ( NYX ) takeover as we hear the Nasdaq OMX Group( NDAQ ) may be frantic to make a last-second charge into the picture. They were probably surprised by the announcement the NYSE would be selling out to European exchange operator Deutsche Borse. My business gut tells me a rushed bid by the Nasdaq may not be their best option when it comes time to figuring out how they would integrate the exchanges and maximize profits from the deal, not to mention any potential antitrust issues.
On a side note, did anyone notice General Motors ( GM ) broke below its IPO price yesterday after the shares slid following the company's earnings release? The auto giant recently re-listed but still does not pay a dividend, so we do not presently cover the stock from a ratings standpoint.
We made some changes to our recommended list today, so be sure to check out the links below if you did not read the e-mail alerts we sent out earlier. The market is getting a much-needed bounce today after what has been a poor week for the averages. We saw some of the dividend growth plays rebounding, including Deere ( DE ), Caterpillar ( CAT ), and Eaton Corp ( ETN ). Shares of Wells Fargo ( WFC ) were up as analysts continue to expect the company to raise its dividend to respectable levels sometime soon. Unlike Weight Watchers' ( WTW ) recent earnings blowout, Nutrisystem ( NTRI ) shares were walloped following the company's earnings report. Retailer J.C. Penney ( JCP ) finished lower after it posted its earnings numbers.
According to a recent study by the Employee Benefit Research Institute, nearly half (47%) of early baby boomers aged 56 to 62 are at risk of outliving their retirement savings. Late boomers (46 to 55) and generation Xers (36 to 45) are also at a huge risk as 43% and 45% of those groups, respectively, will be unable to afford the growing cost of retirement. Remember there is hope. When I was on Stu Taylor's Equity Strategies radio show yesterday, we discussed the options if you are older and have not saved a dime yet. Basically, let's say you just turned 50 and you looked at your income statement and there is nothing but a $0 at the bottom of the page, you still have plenty of time to build a solid nest egg. For instance, you can start maxing out a Roth IRA contribution ($5K/year currently, but in addition to the "standard" contribution limits, taxpayers age 50 and over are eligible to make a Roth IRA catch-up contribution of an additional $1K/year). If you were to invest $5K per year for every year in your 50s, each $5K you invest would turn into more than $40K after 20 years. So you see, it's never too late to get started! Now if you have kids, you may want to give them a quick lesson on how well they can do if they get started younger putting money to work. If your child invests just $5000 by the time they turn 19 years of age, and did nothing else - but let's say buy dividend stocks and re-invest the dividends, they could end up with a $325K nest egg based on historical 11% returns for dividend-paying stocks. Plus, they get to take it out tax-free after they reach 59-1/2. All good stuff and this shows you that there is plenty of time for investors to get down to business.
As we look ahead to next week, earnings season will ease just a bit, but there will still be plenty of big names reporting numbers including H.J. Heinz ( HNZ ), Staples ( SPLS ), PetSmart ( PETM ) and more. Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and more. And as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List .
Thanks again for reading everybody!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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My business gut tells me a rushed bid by the Nasdaq may not be their best option when it comes time to figuring out how they would integrate the exchanges and maximize profits from the deal, not to mention any potential antitrust issues. It was an overall rocky week for the markets, but this has been one of the biggest weeks in recent memory when it comes to dividend increases. We have seen payout boosts this week from the likes of Home Depot ( HD ), Genuine Parts ( GPC ), CME Group ( CME ), Blackrock ( BLK ), Gap Inc. ( GPS ) and numerous others.
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Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and more. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. It was an overall rocky week for the markets, but this has been one of the biggest weeks in recent memory when it comes to dividend increases.
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We expect more companies that have not ever paid a dividend to come on board the dividend express as time moves on. If your child invests just $5000 by the time they turn 19 years of age, and did nothing else - but let's say buy dividend stocks and re-invest the dividends, they could end up with a $325K nest egg based on historical 11% returns for dividend-paying stocks. It was an overall rocky week for the markets, but this has been one of the biggest weeks in recent memory when it comes to dividend increases.
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We made some changes to our recommended list today, so be sure to check out the links below if you did not read the e-mail alerts we sent out earlier. If your child invests just $5000 by the time they turn 19 years of age, and did nothing else - but let's say buy dividend stocks and re-invest the dividends, they could end up with a $325K nest egg based on historical 11% returns for dividend-paying stocks. It was an overall rocky week for the markets, but this has been one of the biggest weeks in recent memory when it comes to dividend increases.
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18acbf97-210e-468a-ae17-0d71d365f89a
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723214.0
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2011-02-16 00:00:00 UTC
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Deere’s Q1 Earnings, 2011 Forecast Beat View; Shares Rise (DE)
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DE
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https://www.nasdaq.com/articles/deeres-q1-earnings-2011-forecast-beat-view-shares-rise-de-2011-02-16
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nan
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nan
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Farm and construction equipment maker Deere & Company ( DE ) on Wednesday said its first quarter profit more than doubled from last year, beating analyst estimates and sending it shares surging in premarket trading.
The Moline, IL-based company reported fiscal first quarter net income of $513.7 million, or $1.20 pe share, compared with $243.2 million, or 57 cents per share, in the year-ago period.
Net sales jumped 27% from last year to $6.12 billion.
On average, Wall Street analysts expected a much smaller profit of 97 cents per share, on lower revenue of $5.59 billion.
Looking ahead, the company forecast second quarter revenues to rise 25% from the same period last year. For the full year 2011, it predicted net income of $2.5 billion, which would beat analyst estimates for $2.37 billion.
Deere shares rose $3.81, or +4.1%, in premarket trading Wednesday.
The Bottom Line
We have been recommending shares of Deere ( DE ) since Dec.7, 2010, when the stock was trading at $79.04. The company has a 1.50% dividend yield, based on last night's closing stock price of $93.62.
Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farm and construction equipment maker Deere & Company ( DE ) on Wednesday said its first quarter profit more than doubled from last year, beating analyst estimates and sending it shares surging in premarket trading. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Deere shares rose $3.81, or +4.1%, in premarket trading Wednesday.
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Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Farm and construction equipment maker Deere & Company ( DE ) on Wednesday said its first quarter profit more than doubled from last year, beating analyst estimates and sending it shares surging in premarket trading. Deere shares rose $3.81, or +4.1%, in premarket trading Wednesday.
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Farm and construction equipment maker Deere & Company ( DE ) on Wednesday said its first quarter profit more than doubled from last year, beating analyst estimates and sending it shares surging in premarket trading. Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Deere shares rose $3.81, or +4.1%, in premarket trading Wednesday.
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Farm and construction equipment maker Deere & Company ( DE ) on Wednesday said its first quarter profit more than doubled from last year, beating analyst estimates and sending it shares surging in premarket trading. Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Deere shares rose $3.81, or +4.1%, in premarket trading Wednesday.
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b13413d9-d5dd-40ce-a9eb-3713f6c84c76
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723215.0
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2011-02-16 00:00:00 UTC
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Opening View: DJIA Futures Point Higher on Earnings and M&A Activity
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DE
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https://www.nasdaq.com/articles/opening-view-djia-futures-point-higher-earnings-and-ma-activity-2011-02-16
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nan
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nan
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DELL GENZkey technical hurdle
On the sentiment front, a Bank of America-Merrill Lynch Global Research survey yesterday noted that emerging market exposure among money managers suffered its biggest decline in the survey's history. Commenting on the report, Todd Salamone, Senior Vice President of Research, noticed that the 50-day buy-to-open put/call volume ratio on the iShares MSCI Emerging Markets Index Fund ( EEM ) had recently rolled over near the ratio's December 2010 peak. Todd noted that the activity "does not look like hedge activity, but rather speculative activity that has potentially climaxed," and believes that this could have bullish implications for EEM.
In earnings news, Deere & Co. ( DE ) posted a first-quarter profit of $513.7 million, or $1.20 per share, as sales rose 27% to $6.12 billion. Wall Street analysts were expecting a profit of 97 cents per share on revenue of $5.59 billion. Looking ahead, Deere said it sees second-quarter revenue rising by 25% over the same quarter last year. For fiscal 2011, the company is expecting net income of about $2.5 billion, compared to the current consensus estimate of $2.37 billion.
After the close last night, Dell Inc. reported a fourth-quarter profit of $927 million, or 48 cents per share, as revenue rose to $15.69 billion from $14.9 billion a year ago. On an adjusted basis, Dell said it earned 53 cents per share, blowing past Wall Street's estimate for a profit of 36 cents per share. However, revenue came in just shy of the consensus estimate for $15.75 billion. The company also said that it expects revenue growth of 5% to 9% for fiscal 2012.
Outside of earnings, Comcast Corp. ( CMCSA ) announced that it is increasing its annual dividend by 19% to 45 cents per share. The dividend will be payable on April 27 to shareholders of record as of April 6. The company also announced plans to buy back $2.1 billion in stock by the end of 2011.
Finally, while the news leaked to the Street late in yesterday's session, Sanofi-Aventis SA (SNY) officially confirmed this morning that it has reached a deal to buy Genzyme Corp. for $20.1 billion in cash plus a contingent value right. The deal values GENZ at $74 per share. The acquisition has been approved by boards of both companies, and is expected to close early in the second quarter of 2011.
Earnings Preview
On the earnings front, Nvidia (NVDA), NetApp (NTAP), Abercrombie & Fitch (ANF), OfficeMax (OMX), and Genzyme ( GENZ ) are slated to release their quarterly earnings reports. Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
Today offers up the latest word on January's housing starts and building permits, the January producer price index (PPI), the twin industrial production and capacity utilization reports for January, the weekly U.S. petroleum supplies report, and the minutes from the most recent Federal Open Market Committee (FOMC) meeting. More data on domestic inflation arrives tomorrow, with the release of January's consumer price index (CPI). Also on Thursday's docket are weekly initial jobless claims, leading economic indicators, and the Philadelphia Fed business outlook survey. The economic calendar is bare on Friday.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,364,445 call contracts traded on Tuesday, compared to 754,566 put contracts. The resultant single-session put/call ratio arrived at 0.56, while the 21-day moving average edged higher to 0.56.
**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**
Trading the News: A Contrarian View. Check out this special report from Bernie Schaeffer here.
Overseas Trading
Overseas trading is pointed broadly higher this morning, as nine of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.47%. Asian markets headed higher on Wednesday, with investor tensions easing in the wake of China's latest data on inflation. Japan's Nikkei extended its rally to three straight sessions, with exporters rallying on a weaker yen. Meanwhile, European stocks are trading broadly higher, as Sanofi-Aventis' deal to purchase Genzyme provided a shot in the arm for investor sentiment.
Currencies and Commodities
After sliding to an 11-week low yesterday, crude futures are looking to reclaim their footing this morning. With the official government report on weekly U.S. petroleum supplies set for release later today, the March crude contract has added 40 cents to trade at $87.97 per barrel. A weak U.S. dollar is helping provide ballast for commodities this morning, with the greenback extending its decline versus the euro. However, the greenback continues to edge higher versus the yen, extending its push into eight-week high territory versus the Japanese currency. As a result, the U.S. Dollar Index has dipped 0.16% in premarket trading. Finally, gold futures are off 60 cents at $1,373.50 an ounce in London, with the malleable metal struggling to extend yesterday's solid gains.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Finally, while the news leaked to the Street late in yesterday's session, Sanofi-Aventis SA (SNY) officially confirmed this morning that it has reached a deal to buy Genzyme Corp. for $20.1 billion in cash plus a contingent value right. With the official government report on weekly U.S. petroleum supplies set for release later today, the March crude contract has added 40 cents to trade at $87.97 per barrel. DELL GENZkey technical hurdle On the sentiment front, a Bank of America-Merrill Lynch Global Research survey yesterday noted that emerging market exposure among money managers suffered its biggest decline in the survey's history.
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After the close last night, Dell Inc. reported a fourth-quarter profit of $927 million, or 48 cents per share, as revenue rose to $15.69 billion from $14.9 billion a year ago. Market Statistics Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,364,445 call contracts traded on Tuesday, compared to 754,566 put contracts. With the official government report on weekly U.S. petroleum supplies set for release later today, the March crude contract has added 40 cents to trade at $87.97 per barrel.
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After the close last night, Dell Inc. reported a fourth-quarter profit of $927 million, or 48 cents per share, as revenue rose to $15.69 billion from $14.9 billion a year ago. On an adjusted basis, Dell said it earned 53 cents per share, blowing past Wall Street's estimate for a profit of 36 cents per share. Economic Calendar Today offers up the latest word on January's housing starts and building permits, the January producer price index (PPI), the twin industrial production and capacity utilization reports for January, the weekly U.S. petroleum supplies report, and the minutes from the most recent Federal Open Market Committee (FOMC) meeting.
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In earnings news, Deere & Co. ( DE ) posted a first-quarter profit of $513.7 million, or $1.20 per share, as sales rose 27% to $6.12 billion. DELL GENZkey technical hurdle On the sentiment front, a Bank of America-Merrill Lynch Global Research survey yesterday noted that emerging market exposure among money managers suffered its biggest decline in the survey's history. Commenting on the report, Todd Salamone, Senior Vice President of Research, noticed that the 50-day buy-to-open put/call volume ratio on the iShares MSCI Emerging Markets Index Fund ( EEM ) had recently rolled over near the ratio's December 2010 peak.
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5b90690a-9e7c-4b7e-b592-66de0865075d
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723216.0
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2011-02-15 00:00:00 UTC
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Deere’s Target, Estimates Raised at Jefferies & Co. (DE)
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DE
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https://www.nasdaq.com/articles/deeres-target-estimates-raised-jefferies-co-de-2011-02-15
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nan
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nan
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Construction and farm machinery maker Deere & Company ( DE ) on Tuesday saw its price target and earnings estimates boosted by analysts at Jefferies & Co.
The firm reiterated its "Buy" rating on DE while lifting its price target to $105. That new target suggests a nearly 11% upside to the stock's Monday closing price of $94.76.
Jefferies also raised its earnings estimates for the company through 2012, citing continued recovery in agriculture demand.
Deere shares were mostly flat in premarket trading Tuesday.
The Bottom Line
We have been recommending shares of Deere [[DE] since Dec.7, 2010, when the stock was trading at $79.04. The company has a 1.48% dividend yield, based on last night's closing stock price of $94.76.
Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Construction and farm machinery maker Deere & Company ( DE ) on Tuesday saw its price target and earnings estimates boosted by analysts at Jefferies & Co. Jefferies also raised its earnings estimates for the company through 2012, citing continued recovery in agriculture demand. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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Construction and farm machinery maker Deere & Company ( DE ) on Tuesday saw its price target and earnings estimates boosted by analysts at Jefferies & Co. Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. The firm reiterated its "Buy" rating on DE while lifting its price target to $105.
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Construction and farm machinery maker Deere & Company ( DE ) on Tuesday saw its price target and earnings estimates boosted by analysts at Jefferies & Co. The Bottom Line We have been recommending shares of Deere [[DE] since Dec.7, 2010, when the stock was trading at $79.04. Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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Construction and farm machinery maker Deere & Company ( DE ) on Tuesday saw its price target and earnings estimates boosted by analysts at Jefferies & Co. Deere & Company ( DE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. The firm reiterated its "Buy" rating on DE while lifting its price target to $105.
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59fa0a26-58e2-4f84-ad5b-32c7fdcd8523
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723217.0
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2011-01-20 00:00:00 UTC
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Is This the Ultimate Buy-and-Hold Stock?
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DE
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https://www.nasdaq.com/articles/ultimate-buy-and-hold-stock-2011-01-20
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nan
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nan
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As investors continually seek out new investment ideas, it can get very tiresome. Just when you've found certain appealing stocks, they move up to your price target or lose operating momentum, and you're compelled to find the next idea. But what if you could hold a stock for the whole year, a whole decade or even a whole generation?
Well, that's how people used to invest. My grandmother boughtshares of AT&T (NYSE: T ) in the 1950s -- and never sold them. Thedividend income was surely appealing. And thecapital appreciation helped her stay well ahead of the forces ofinflation . But if my Grandma were alive today, would she still be able to find a "forever stock?" After all, in recent years, even stalwarts such as AT&T have lost their luster: Ma Bell'sshares have fallen by half since 2002.
You can still find "forever stocks" if you know where to look. The key ingredient is to seek out companies with long operating histories, that sell goods or services that won't become obsolete, and routinely generate solid rates of return on their deployed capital.
Of course, if it is to be a core holding, you'll have to avoid companies subject to wild cyclical swings such as Alcoa (NYSE: AA ) , Deere & Co. (NYSE: DE ) and JP Morgan (NYSE: JPM ) . Those companies are likely to be around -- and flourish -- for many decades to come, but they'll give you plenty of indigestion along the way. You also want to find companies that can handle external impacts such asinflation . They must show the ability to raise prices whenever their own costs rise.
For example, Yum Brands (NYSE: YUM ) has seen itsshares rise steadily for more than 15 years. The fast-food operator is truly becoming a global name with its KFC, Taco Bell and Pizza Hut restaurants opening around the world. That means the company is truly tied to the globe and not just the United States. Fearinginflation ? These value-oriented chains would hold even greater consumer appeal if rising prices deter people from eating at pricier restaurants.
The ultimate rain or shine stock
There's one thing that's bound to never change: people always need shelter. They can look to buy a home or spruce up their existing home. Or they can look to rent a place if home ownership doesn't appeal. And no matter where they live, people dislike old dingy walls with flaky paint. So a fresh paint job is often a key step in turning a house into a home. And that's been great for Sherwin-Williams (NYSE: SHW ) . It's not a sizzling growth story -- sales have grown from $5 billion in 2001 to around $7 billion in 2009. And in coming years, analysts only expect sales to keep growing at a high single-digit pace. Yet for a "forever stock," that's good enough.
What drives the company's growth? A nice combination of annual price increases, new household formation of around 1.0-1.5 million in the United States (a trend which has only temporarily stalled in recent years), and international expansion. The company, which is five years away from its 150th anniversary, operates more than 3,000 stores.
Here in the United States, Sherwin-Williams should benefit from an eventual rebound in housing. Looking abroad, the company has a chance to build on its 500-plus store base, developing a go-to brand name as it has in the United States. Those growth drivers are augmented by a series of stock buybacks as management puts excesscash flow to work.Free cash flow (FCF ) is on track to rise for its sixth straight year, to nearly $700 million.
Sherwin Williams is also on track to boost itsdividend for at least the 10th straight year. (My database doesn't go back further than that). The company hiked itsdividend by more than 20% a year during 2005 through 2007, though payout hikes have been more modest in recent years. A reboundingeconomy and all thatFCF should set the stage for more robustdividend hikes in the years to come.
As a final kicker, the company's return on equity has exceeded 30% in each of the last four years -- not bad for a company that was exposed to the brutal downturn in the housing market.
Action to Take --> It's simply hard to imagine a scenario where demand for paint slumps. And Sherwin-Williams has the most powerful brand in the business. A caveat to the "forever stocks" scenario: markets have rebounded sharply, liftingshares of companies like Yum Brands and Sherwin-Williams. Some investors may prefer to wait for deep market pullbacks before pouncing on these buy-and-hold-forever names. Then again, that approach may cause you to miss out on even more upside that many predict for thestock market in coming years.
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and 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 key ingredient is to seek out companies with long operating histories, that sell goods or services that won't become obsolete, and routinely generate solid rates of return on their deployed capital. These value-oriented chains would hold even greater consumer appeal if rising prices deter people from eating at pricier restaurants. As investors continually seek out new investment ideas, it can get very tiresome.
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A caveat to the "forever stocks" scenario: markets have rebounded sharply, liftingshares of companies like Yum Brands and Sherwin-Williams. As investors continually seek out new investment ideas, it can get very tiresome. Just when you've found certain appealing stocks, they move up to your price target or lose operating momentum, and you're compelled to find the next idea.
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The company hiked itsdividend by more than 20% a year during 2005 through 2007, though payout hikes have been more modest in recent years. As a final kicker, the company's return on equity has exceeded 30% in each of the last four years -- not bad for a company that was exposed to the brutal downturn in the housing market. A caveat to the "forever stocks" scenario: markets have rebounded sharply, liftingshares of companies like Yum Brands and Sherwin-Williams.
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But what if you could hold a stock for the whole year, a whole decade or even a whole generation? The company hiked itsdividend by more than 20% a year during 2005 through 2007, though payout hikes have been more modest in recent years. As investors continually seek out new investment ideas, it can get very tiresome.
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afd44ff1-fdd3-49e5-81f5-77a72d600f69
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723218.0
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2011-01-19 00:00:00 UTC
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The Next Great Bull Market of the Decade
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DE
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https://www.nasdaq.com/articles/next-great-bull-market-decade-2011-01-19
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nan
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nan
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The world is undergoing massive changes at a torrid pace. The pace and magnitude of these changes is greater than humanity has ever known. With these changes come great opportunities and great challenges that will have to be confronted.
Perhaps the greatest challenge of all is the most basic -- feeding ourselves.
Rising world populations and increased urbanization are creating a huge strain on the world's food supply. As standards of living continue rising in the world's most populated areas, like China and India, so does the demand for a wider variety of food. In fact, theWorld Bank is projecting that worldwide demand for food will increase 50% from current levels by 2030.
At the same time, fresh water and arable land are becoming increasingly scarce. The dynamics are producing upward pressure on food prices as well as the urgent necessity to develop technological advances that will produce more and better food supplies.
What does all this mean for agriculture stocks?
While long-term fundamentals are in place, the Daxglobal AgribusinessIndex (a worldwideindex of agriculturestocks ) has posted a negative return in the past three years. But things are changing fast. Theindex has caught fire and soared more than 50% just since July.
Agriculturalcommodity prices have absolutely taken off. Corn and wheat have surged because of bad weather adding to already tight supplies, as well ascurrency devaluations and a weaker dollar. However, while short-term price fluctuations can be fickle and affect prices either way, several factors will contribute to what should be a hugebull market in agriculture stocks in the next decade.
Emerging markets
Growing emerging market populations with increasingly Westernized appetites are the primary driver of worldwide food demand. Consider this: an increasing percentage of world food consumption is meat, which exponentially increases grain demand (it requires at least seven pounds of grain to produce one pound of beef protein.) In China alone, annual per capita meat consumption has increased 150%, from 44 lbs in 1980 to 110 lbs in 2007. In fact, TheWorld Bank estimates that worldwide meat demand will increase by 85% from current levels in the next 10 years alone, putting enormous pressure on the world's grain supply.
Biofuels
Biofuel production (which can include corn, maize, sugar cane or vegetable oil) has increased in recent years. [See Game-Changing Stocks editor Andy Obermueller's recent article about profiting from biofuel] This use of food to produce energy has put further pressure on the world's food supply. Many experts believe that placing energy markets in competition with food markets for scarce arable land will inevitably result in higher food prices. A 2008World Bank research paper concluded that "...large increases in biofuels production in the United States and Europe are the main reason behind the steep rise in global food prices"
Inflation
Food and agricultural inputs (including seeds and fertilizer) are tangible goods that should maintain value during times ofinflation . In addition to all the other dynamics in agriculture's favor, the sector is also an excellenthedge against inflation and falling dollar values.
How toprofit
There are several ways for investors to play agriculture. The PowerShares DB Agriculture Fund (NYSE: DBA ) , which buys futures contracts of agricultural commodities including corn, wheat, sugar and soybeans is a way to play agriculture as acommodity and take advantage of rising prices. Other plays involve companies that are in the business of agriculture. The Market Vectors AgribusinessETF (NYSE: MOO ) holds 47 positions in some of the largest agricultural companies in the world. Top positions include Canadian fertilizer and feed producer Potash Corp. of Saskatchewan (NYSE: POT ) , seed and pesticide giant Monsanto (NYSE: MON ) , and farming equipment maker Deere and Co. (NYSE: DE ) .
Action to Take --> Supply and demand factors as well as a weaker dollar are creating the perfect storm for agriculturestocks . The raging bull market has already commenced and will likely continue for the rest of this decade -- and perhaps beyond. However, agriculture stock prices have moved up so fast in the past several months that investors should wait to buy the ETF or individual players on the next pullback in the sector.
-- Tom Hutchinson
P.S. -- We've just identified six surprising events that could break your portfolio wide open in 2011. Knowing these pivot points in advance lets you focus your investing strategy like a beam of light in the dark... and make a lot of money in a hurry. Get them free by simply watching this video presentation.
Disclosure: Neither Tom Hutchinson nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, TheWorld Bank estimates that worldwide meat demand will increase by 85% from current levels in the next 10 years alone, putting enormous pressure on the world's grain supply. The world is undergoing massive changes at a torrid pace. The pace and magnitude of these changes is greater than humanity has ever known.
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In fact, TheWorld Bank estimates that worldwide meat demand will increase by 85% from current levels in the next 10 years alone, putting enormous pressure on the world's grain supply. A 2008World Bank research paper concluded that "...large increases in biofuels production in the United States and Europe are the main reason behind the steep rise in global food prices" Inflation Food and agricultural inputs (including seeds and fertilizer) are tangible goods that should maintain value during times ofinflation . The world is undergoing massive changes at a torrid pace.
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Consider this: an increasing percentage of world food consumption is meat, which exponentially increases grain demand (it requires at least seven pounds of grain to produce one pound of beef protein.) A 2008World Bank research paper concluded that "...large increases in biofuels production in the United States and Europe are the main reason behind the steep rise in global food prices" Inflation Food and agricultural inputs (including seeds and fertilizer) are tangible goods that should maintain value during times ofinflation . The world is undergoing massive changes at a torrid pace.
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However, while short-term price fluctuations can be fickle and affect prices either way, several factors will contribute to what should be a hugebull market in agriculture stocks in the next decade. The world is undergoing massive changes at a torrid pace. The pace and magnitude of these changes is greater than humanity has ever known.
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6cc314c7-f790-41a9-9e4e-4e7a00ff41a8
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723219.0
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2011-01-18 00:00:00 UTC
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Top Food Inflation Stock Picks
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DE
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https://www.nasdaq.com/articles/top-food-inflation-stock-picks-2011-01-18
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nan
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nan
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While many of us here in the United States are focusing on economic recovery, much of the rest of the world is concerned about more basic needs - like food. In fact, the world is reeling from a food price shock, aka, food inflation, which was exasperated after the U.S. Department Agriculture (USDA) surprised traders by cutting their forecasts for key crops, which sent corn and soybean prices to their highest level in 30 months.
Specifically, the USDA said corn inventories are expected to decline 5.5% this year to the lowest level in 15 years. Corn is used to make ethanol, which is causing gasoline prices to rise and is an important ingredient in animal feed, so meat prices are rising. The United Nations Food and Agriculture Organization recently warned the world could see another food crisis as grain prices rise further.
Although rice prices, which spurred the last food crisis in 2008, are stable, high grain prices, especially corn, soybeans and wheat, have already caused riots in Algeria and Mozambique. In emerging economies, food is a larger portion of spending than it is in developed countries, and that is why people in emerging countries feel the pinch the most when prices rise. India reported on Friday that their wholesale prices rose to an annual rate of 8.43% in December, up from 7.48% in November.
On Thursday, the Labor Department reported that wholesale prices soared 1.1% in December as the Producer Price Index (PPI) rose 1.1%, which was significantly higher than economists' expectations. Baked into the increase was a 0.8% increase in wholesale food prices with vegetable prices rising a whopping 22.8% as freezing conditions sent prices soaring. Excluding food and energy, the core PPI rose only 0.2% in December, but in the past 12 months, the PPI has risen 4%, with the core PPI rising 1.3%, so clearly higher food and energy costs are emerging as a threat that might curtail worldwide economic growth.
As you can see, there is clearly a supply and demand issue at work here. Emerging markets have made great strides in recent years, and it has been shown that as people move up into the middle class their protein intake increases. With higher demand and lower production due to environmental issues prices are going to rise.
So, as an investor, how should you play this trend? I say the answer is not to become a commodities trader speculating on the price of pork bellies, corn or orange juice. The way to safely make your money is to play the equipment, fertilizer or seeds that grow the food by buying agriculture stocks. Prices there are rising as well, and are far less volatile. Here are a few ag stocks that I like right now and one that I don't.
Deere & Company (NYSE: DE ) is the world's largest farm equipment manufacturer and a leading producer of construction, forestry and commercial and residential lawn care equipment. Unlike in Eastern Europe, where wheat production has slowed, U.S. crops have surged in the past several months. Currently, the country is producing a record number of crop exports. The higher demand for crops is leading to a greater need for farm equipment.
Although agriculture only accounts for about 1% of the U.S. economy, the actual impact of surging prices could be 10 times greater once spending on equipment, seeds, grain handling and food processing is calculated. This is why Deere & Co. stands to capitalize on high agricultural commodity prices. I see this as a great way to play the overall trend in higher food prices that is developing, along with the decline in the U.S. dollar.
Agrium (NYSE: AGU ) is a major producer and marketer of fertilizers in North America. The company operates plants in Argentina, Canada and the United States that produce mostly nitrogen, as well as potash and phosphate products. These plants have the capacity to produce more than 8 million tons of the nutrients per year. In addition to supplying wholesalers, Agrium operates more than 826 retail outlets in the United States and South America. The company has had trouble in recent quarters living up to analyst expectations, so if the company meets or beats in its next report, this could be a runaway winner.
CF IndustriesHoldings (NYSE: CF ) is a regional agricultural firm that manufactures and markets nitrogenous and phosphate fertilizers. The company operates a network of manufacturing and distribution facilities, primarily in the Midwest. It's a no-brainer when it comes to understanding why fertilizer companies are doing so well right now. CF is a go-to company when farmers need to boost crop yields to meet the global demand for food.
CF has had some of the same issues as AGU when it comes to earnings, but the company has seen improving fundamentals over the past six months, and looks like shares will continue their march higher in the coming months.
Syngenta AG (NYSE: SYT ) produces crop protection products (insecticides, herbicides, fungicides), field crop seeds (soybeans), vegetable seeds (corn, beans, tomatoes) and flowers. Syngenta's seeds are particularly valuable because they have been genetically engineered to resist infestations.
While all of this sounds good, I would not recommend buying the stock right now. The stock has been on a decent run since July, but with deteriorating earnings growth, buying pressure and other problems with fundamentals, this company is a hold at best.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Emerging markets have made great strides in recent years, and it has been shown that as people move up into the middle class their protein intake increases. The stock has been on a decent run since July, but with deteriorating earnings growth, buying pressure and other problems with fundamentals, this company is a hold at best. In fact, the world is reeling from a food price shock, aka, food inflation, which was exasperated after the U.S. Department Agriculture (USDA) surprised traders by cutting their forecasts for key crops, which sent corn and soybean prices to their highest level in 30 months.
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On Thursday, the Labor Department reported that wholesale prices soared 1.1% in December as the Producer Price Index (PPI) rose 1.1%, which was significantly higher than economists' expectations. Deere & Company (NYSE: DE ) is the world's largest farm equipment manufacturer and a leading producer of construction, forestry and commercial and residential lawn care equipment. Syngenta AG (NYSE: SYT ) produces crop protection products (insecticides, herbicides, fungicides), field crop seeds (soybeans), vegetable seeds (corn, beans, tomatoes) and flowers.
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In fact, the world is reeling from a food price shock, aka, food inflation, which was exasperated after the U.S. Department Agriculture (USDA) surprised traders by cutting their forecasts for key crops, which sent corn and soybean prices to their highest level in 30 months. Specifically, the USDA said corn inventories are expected to decline 5.5% this year to the lowest level in 15 years. In emerging economies, food is a larger portion of spending than it is in developed countries, and that is why people in emerging countries feel the pinch the most when prices rise.
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Syngenta AG (NYSE: SYT ) produces crop protection products (insecticides, herbicides, fungicides), field crop seeds (soybeans), vegetable seeds (corn, beans, tomatoes) and flowers. In fact, the world is reeling from a food price shock, aka, food inflation, which was exasperated after the U.S. Department Agriculture (USDA) surprised traders by cutting their forecasts for key crops, which sent corn and soybean prices to their highest level in 30 months. Specifically, the USDA said corn inventories are expected to decline 5.5% this year to the lowest level in 15 years.
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2fac42eb-6b3b-473b-ad4c-0333b36129d0
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723220.0
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2011-01-18 00:00:00 UTC
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12 Companies Hitting Highs, With A Track Record of Raising Dividends
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DE
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https://www.nasdaq.com/articles/12-companies-hitting-highs-track-record-raising-dividends-2011-01-18
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Compiled by Luis Gonzalez: The following is a list of stocks that have reached a new 52-week high during recent sessions. All of the stocks mentioned below have a track record of raising dividends more aggressively than their competitors over the last five years.
To control the quality of the list, we only focused on stocks with trailing twelve month payout ratios below 50% (to maximize the probability of finding companies that have the ability to keep paying their dividends).
If you're an income investor, this list might offer an interesting starting point.
Dividend yields, TTM payout ratios and industry comps sourced from Reuters, short float and performance data sourced from Finviz.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize market cap changes for the top stocks mentioned
The list has been sorted by the dividend yield.
1. Northrop Grumman Corporation (NOC):Aerospace/Defense Products & Services Industry. Market cap of $19.63B. Current dividend yield at 2.8% vs. industry average at 1.62%. Dividend growth rate over the past five years at 13.68% vs. industry average at 10.79%. TTM Payout Ratio at 27.58% vs. industry average at 38.47%. Short float at 3.98%, which implies a short ratio of 6.99 days. The stock has gained 18.3% over the last year.
2. Linear Technology Corp. (LLTC):Semiconductor Industry. Market cap of $8.09B. Current dividend yield at 2.56% vs. industry average at 0.28%. Dividend growth rate over the past five years at 20.11% vs. industry average at 1.28%. TTM Payout Ratio at 46.56% vs. industry average at 5.72%. Short float at 6.04%, which implies a short ratio of 5.26 days. The stock has gained 28.8% over the last year.
3. KLA-Tencor Corporation (KLAC):Semiconductor Equipment & Materials Industry. Market cap of $7.03B. Current dividend yield at 2.37% vs. industry average at 0.7%. Dividend growth rate over the past five years at 37.97% vs. industry average at -16.45%. TTM Payout Ratio at 34.27% vs. industry average at 13.93%. Short float at 2.53%, which implies a short ratio of 1.82 days. The stock has gained 28.38% over the last year.
4. Analog Devices Inc. (ADI):Semiconductor Industry. Market cap of $11.53B. Current dividend yield at 2.28% vs. industry average at 0.28%. Dividend growth rate over the past five years at 21.29% vs. industry average at 1.28%. TTM Payout Ratio at 35.21% vs. industry average at 5.72%. Short float at 3.24%, which implies a short ratio of 2.62 days. The stock has gained 37.12% over the last year.
5. Vale S.A. (VALE): Steel & Iron Industry. Market cap of $190.15B. Current dividend yield at 2.09% vs. industry average at 0.96%. Dividend growth rate over the past five years at 25.32% vs. industry average at 6.19%. TTM Payout Ratio at 19.43% vs. industry average at 15.62%. Short float at 0.66%, which implies a short ratio of 1.89 days. The stock has gained 21.88% over the last year.
6. AFLAC Inc. (AFL): Accident & Health Insurance Industry. Market cap of $27.18B. Current dividend yield at 2.08% vs. industry average at 1.1%. Dividend growth rate over the past five years at 24.13% vs. industry average at -2.41%. TTM Payout Ratio at 24.65% vs. industry average at 22.48%. Short float at 1.35%, which implies a short ratio of 2.14 days. The stock has gained 15.52% over the last year.
7. Applied Materials, Inc. (AMAT): Semiconductor Equipment & Materials Industry. Market cap of $20.34B. Current dividend yield at 1.83% vs. industry average at 0.68%. Dividend growth rate over the past five years at 24.57% vs. industry average at -16.52%. TTM Payout Ratio at 38.5% vs. industry average at 13.97%. Short float at 1.62%, which implies a short ratio of 1.6 days. The stock has gained 14.07% over the last year.
8. Archer Daniels Midland Company (ADM): Farm Products Industry. Market cap of $21.41B. Current dividend yield at 1.79% vs. industry average at 1.7%. Dividend growth rate over the past five years at 12.63% vs. industry average at 7.67%. TTM Payout Ratio at 21.25% vs. industry average at 44.65%. Short float at 1.36%, which implies a short ratio of 1.56 days. The stock has gained 12% over the last year.
9. International Business Machines Corp. (IBM): Diversified Computer Systems Industry. Market cap of $186.35B. Current dividend yield at 1.73% vs. industry average at 1.03%. Dividend growth rate over the past five years at 25.16% vs. industry average at 24.79%. TTM Payout Ratio at 21.2% vs. industry average at 27.02%. Short float at 1.09%, which implies a short ratio of 2.69 days. The stock has gained 16% over the last year.
10. Deere & Company (DE): Farm & Construction Machinery Industry. Market cap of $37.84B. Current dividend yield at 1.56% vs. industry average at 1%. Dividend growth rate over the past five years at 13.9% vs. industry average at 6.56%. TTM Payout Ratio at 26.41% vs. industry average at 31.38%. Short float at 0.76%, which implies a short ratio of 0.9 days. The stock has gained 61.82% over the last year.
11. AptarGroup, Inc. (ATR): Packaging & Containers Industry. Market cap of $3.25B. Current dividend yield at 1.49% vs. industry average at 1.09%. Dividend growth rate over the past five years at 22.22% vs. industry average at 6.83%. TTM Payout Ratio at 26.36% vs. industry average at 14.49%. Short float at 0.73%, which implies a short ratio of 3.21 days. The stock has gained 35.35% over the last year.
12. Parker Hannifin Corporation (PH): Industrial Equipment & Components Industry. Market cap of $14.46B. Current dividend yield at 1.29% vs. industry average at 1.15%. Dividend growth rate over the past five years at 14.2% vs. industry average at 5.07%. TTM Payout Ratio at 22.33% vs. industry average at 31.05%. Short float at 1.76%, which implies a short ratio of 2.23 days. The stock has gained 55.56% over the 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To control the quality of the list, we only focused on stocks with trailing twelve month payout ratios below 50% (to maximize the probability of finding companies that have the ability to keep paying their dividends). Visualize market cap changes for the top stocks mentioned The list has been sorted by the dividend yield. All of the stocks mentioned below have a track record of raising dividends more aggressively than their competitors over the last five years.
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Dividend yields, TTM payout ratios and industry comps sourced from Reuters, short float and performance data sourced from Finviz. Dividend growth rate over the past five years at 13.68% vs. industry average at 10.79%. Dividend growth rate over the past five years at 20.11% vs. industry average at 1.28%.
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Dividend growth rate over the past five years at 13.68% vs. industry average at 10.79%. Dividend growth rate over the past five years at 20.11% vs. industry average at 1.28%. Dividend growth rate over the past five years at 37.97% vs. industry average at -16.45%.
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Dividend yields, TTM payout ratios and industry comps sourced from Reuters, short float and performance data sourced from Finviz. Visualize market cap changes for the top stocks mentioned The list has been sorted by the dividend yield. All of the stocks mentioned below have a track record of raising dividends more aggressively than their competitors over the last five years.
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13bb8996-8840-43d5-85ee-681c75deb42c
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723221.0
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2011-01-18 00:00:00 UTC
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Market Wrap-Up for Jan.18 (CMA, PNC, MCD, CAT, DE, QCOM, LMT, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-jan18-cma-pnc-mcd-cat-de-qcom-lmt-more-2011-01-18
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nan
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nan
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I was reading an interesting article on SmartonMoney.com that listed some common money excuses people use.
Let's go over some of them each day this week.
Excuse #1 - "If I earn interest, I have to pay more taxes."
My Answer: Don't get preoccupied with taxes when it comes to investment returns. For many of us, making more money with our investments should be the goal, not avoiding paying more in taxes by possibly foregoing better investment opportunities.
Excuse #2 - "At my age, it's too late anyway."
My Answer: Don't ever start thinking in this negative way. Remember my dad's barber friend who bought his first house at age 77. That's the right mentality! Compound interest from dividend stocks kicks in sooner than you think, so don't ever tap out.
Excuse #3 - "Why save money? You can't take it with you when you die!"
My Answer: This is normally the rationale for those around us that have racked up the most debt. I personally would rather create a positive legacy rather than one where you burden your loved ones with all your poor financial habits.
Excuse #4 - "We're only young once!"
My Answer: I never stop believing I'm young, and there's no reason to waste money just because you want to stand by an "only young once" mantra. Ask anyone that is in their 30′s and 40′s and they will tell you about being a bit too foolish with money in their early earning days.
Excuse #5 - "But it's only zero percent interest!"
My Answer: Yes, the "free money" myth is super popular when it comes to borrowing these days. But what about the obligation of making monthly payments once you make a big purchase you likely don't need? There's no such thing as free money, regardless of interest rates.
We'll do more of these as the week rolls on. Getting back to the markets, Apple ( AAPL ) shares opened about $20 lower this morning on the Steve Jobs health concerns (as we discussed in yesterday's e-mail). The stock has bounced back a bit following the lower open. Emotions are always high on the first day of the stock's reaction to potentially bad news. As an investor, it pays to remember how stocks react to different news and how best it would be if you just remained on the sidelines for a couple of days, rather than throwing yourself in the middle of tremendous trading volatility.
Shares of Comerica ( CMA ) were lower today following the company's earnings results and news of the company's small bank acquisition, Sterling Bancshares ( SBIB ). Other financials went lower as well, including BlackRock ( BLK ) and PNC Financial ( PNC ). On the flipside, the farming and mininq equipment space continued to propel higher. Caterpillar ( CAT ), Deere ( DE ), and Joy Global ( JOYG ) all lead the way higher. Elsewhere, we saw a bounce in fast-food restaurant plays McDonald's ( MCD ) and Yum Brands ( YUM ). Lastly, Wall Street upgrades helped lift shares of Qualcomm ( QCOM ) and Lockheed Martin ( LMT ).
Please check out DividendMillionaire.com if you are interested in pre-ordering my book "Be a Dividend Millionaire." The e-book is due out in mid-February and the print version will be out May 12. And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now.
Thanks for reading, and I'll see you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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As an investor, it pays to remember how stocks react to different news and how best it would be if you just remained on the sidelines for a couple of days, rather than throwing yourself in the middle of tremendous trading volatility. Lastly, Wall Street upgrades helped lift shares of Qualcomm ( QCOM ) and Lockheed Martin ( LMT ). Compound interest from dividend stocks kicks in sooner than you think, so don't ever tap out.
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Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Compound interest from dividend stocks kicks in sooner than you think, so don't ever tap out. My Answer: This is normally the rationale for those around us that have racked up the most debt.
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Compound interest from dividend stocks kicks in sooner than you think, so don't ever tap out. And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now. My Answer: This is normally the rationale for those around us that have racked up the most debt.
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Compound interest from dividend stocks kicks in sooner than you think, so don't ever tap out. My Answer: This is normally the rationale for those around us that have racked up the most debt. I personally would rather create a positive legacy rather than one where you burden your loved ones with all your poor financial habits.
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3ff43bba-d7f7-456b-b8a5-00def228de35
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723222.0
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2010-12-21 00:00:00 UTC
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Market Wrap-Up for Dec.21 (TD, CCL, DRI, DE, CAT, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-dec21-td-ccl-dri-de-cat-more-2010-12-21
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nan
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nan
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Gloomy economic headlines continue to come at us every day, and they will likely not stop. At the same time,the market continues to climb higher, leaving many investors to watch on the sidelines.
You should check out the video Tom and I put up today about focusing your worries elsewhere, preferably on what you are doing with your investment portfolio, including maximizing retirement accounts among other tax-advantaged accounts. Of course, it does make sense to watch the economy, but so many investors have been paralyzed with fear that the 80% plus rally off the March 2009 lows continues to be among the most hated rallies from a retail investor standpoint.
Huge cash piles for corporations will only lead to further M&A, increased dividend payouts, and stock buybacks in 2011. Are you ready to put money to work when the eventual pullbacks happen? Good markets will always have pullbacks, I just wish we can get even more now, so that the entry levels can improve for investors. We'll continue to absorb the data that comes at us, and will be sure to pass on the anecdotes that could matter when corrections come.
The one area that worries me a lot continues to be gold, despite the big run it has had. I worry about it mostly from a crowded trade standpoint. This is not a new worry, but is one that I have had the last couple of months. During that time, gold prices have remained stuck in a tight range, with the inability to hit new highs. Take notice and be ready to act if you have been adding to exposure to the yellow metal (through miners, gold etfs, etc.)
Looking at today's action, TD Bank ( TD ) saw a nice bump higher on news it is acquiring Chrysler Financial, the former financing arm of Chrysler Group, which is now being sold by Cerberus Capital Management. This is another example of deals where a corporation is betting big on economic stability and eventual growth. The agricultural equipment space continues to do well with Deere ( DE ) and Caterpillar ( CAT ) once again finishing higher. On the earnings side, investors were cheering Carnival Corp ( CCL ), but did not take too well with results from Darden Restaurants ( DRI ).
We added three new dividend names to our recommended list today. Be sure to check out the post if you did not read the e-mail alert that was sent out. One last note I wanted to share is the data from the Center for Retirement Research at Boston College, reporting baby boomers have received $2.4 trillion in inheritances, and they stand to get another $6 trillion. Baby boomers will likely be putting that money to work at some point, and with interest rates in the dumps, the lure of building income through high quality dividend-paying stocks should be quite enticing.
The website for my new book "Be a Dividend Millionaire" due out in 2011 is up. Please check it out at DividendMillionaire.com for more info. And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now.
Thanks for reading, and I'll see you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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On the earnings side, investors were cheering Carnival Corp ( CCL ), but did not take too well with results from Darden Restaurants ( DRI ). Baby boomers will likely be putting that money to work at some point, and with interest rates in the dumps, the lure of building income through high quality dividend-paying stocks should be quite enticing. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. At the same time,the market continues to climb higher, leaving many investors to watch on the sidelines.
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You should check out the video Tom and I put up today about focusing your worries elsewhere, preferably on what you are doing with your investment portfolio, including maximizing retirement accounts among other tax-advantaged accounts. And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now. At the same time,the market continues to climb higher, leaving many investors to watch on the sidelines.
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At the same time,the market continues to climb higher, leaving many investors to watch on the sidelines. And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now. You should check out the video Tom and I put up today about focusing your worries elsewhere, preferably on what you are doing with your investment portfolio, including maximizing retirement accounts among other tax-advantaged accounts.
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ce6339c9-37e0-4495-a974-e74023004d7c
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723223.0
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2010-12-10 00:00:00 UTC
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Deere sells its wind energy arm for $900m
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DE
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https://www.nasdaq.com/articles/deere-sells-its-wind-energy-arm-900m-2010-12-10
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nan
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As part of an effort to redouble scrutiny on farm-equipment business, John Deere & Company ( DE ) finalized sale of its wind-energy business to a company under the Exelon ( EXC ) umbrella, the Associated Press reports .
Completed on Friday, the $900 million sale of John Deere Renewables wraps up a deal that first emerged in August. The new company will be named Exelon Wind and it will be operated by Exelon Generation.
Because Deere was known to be shopping its wind-energy business, observers and analysts advised potential buyers of the likelihood of getting a good deal. At one time, Deere believed the wind energy industry was germane to farm-equipment business interests due to turbines typically situated in rural regions.
The company devoted five years and $1 billion cultivating the business and supplying it with equipment from Suzlon Energy (SUZLON), an Indian company.
Considered a major player in the nuclear power industry, Chicago, Illinois-based Exelon has been exploring wind energy potential in various U.S. states. Electricity customers in Illinois and Pennsylvania total about 5.4 million and 500,000 customers in Philadelphia purchase its natural gas.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Because Deere was known to be shopping its wind-energy business, observers and analysts advised potential buyers of the likelihood of getting a good deal. At one time, Deere believed the wind energy industry was germane to farm-equipment business interests due to turbines typically situated in rural regions. Considered a major player in the nuclear power industry, Chicago, Illinois-based Exelon has been exploring wind energy potential in various U.S. states.
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As part of an effort to redouble scrutiny on farm-equipment business, John Deere & Company ( DE ) finalized sale of its wind-energy business to a company under the Exelon ( EXC ) umbrella, the Associated Press reports . The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Completed on Friday, the $900 million sale of John Deere Renewables wraps up a deal that first emerged in August.
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As part of an effort to redouble scrutiny on farm-equipment business, John Deere & Company ( DE ) finalized sale of its wind-energy business to a company under the Exelon ( EXC ) umbrella, the Associated Press reports . At one time, Deere believed the wind energy industry was germane to farm-equipment business interests due to turbines typically situated in rural regions. The company devoted five years and $1 billion cultivating the business and supplying it with equipment from Suzlon Energy (SUZLON), an Indian company.
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As part of an effort to redouble scrutiny on farm-equipment business, John Deere & Company ( DE ) finalized sale of its wind-energy business to a company under the Exelon ( EXC ) umbrella, the Associated Press reports . Because Deere was known to be shopping its wind-energy business, observers and analysts advised potential buyers of the likelihood of getting a good deal. Considered a major player in the nuclear power industry, Chicago, Illinois-based Exelon has been exploring wind energy potential in various U.S. states.
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be63ed75-ea1b-4de7-a6d7-a7a07a25f738
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723224.0
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2010-12-06 00:00:00 UTC
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15 Large-Cap Stocks With Bearish Options Sentiment
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DE
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https://www.nasdaq.com/articles/15-large-cap-stocks-bearish-options-sentiment-2010-12-06
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nan
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nan
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Compiled by Luis Gonzalez: The following is a list of large-cap stocks with a large number of open put option contracts relative to call option contracts (suggesting that options traders expect more downside from these names).
Options traders are bearish on all these names--what do you think? For contrarians, this excessive pessimism might raise a flag...
We're not going to go into detailed analysis for each company, the goal here is to give you a starting point for your own analysis. Options data sourced from Schaeffer's, short float and performance data sourced from Finviz.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a performance overview of all stocks mentioned below
2. Access management data on all companies mentioned below
3. Compare analyst ratings for all stocks mentioned below
The list has been sorted by the Put/Call ratio.
1. McDonald's Corp. (MCD): Restaurants Industry. Market cap of $84.27B. Call open interest at 75,487 contracts vs. put open interest at 191,521 contracts (Put/Call ratio at 2.54). Short float at 0.91%, which implies a short ratio of 1.66 days. The stock has gained 32.91% over the last year.
2. Caterpillar Inc. (CAT): Farm & Construction Machinery Industry. Market cap of $56.73B. Call open interest at 119,663 contracts vs. put open interest at 253,507 contracts (Put/Call ratio at 2.12). Short float at 2.58%, which implies a short ratio of 2.11 days. The stock has gained 57.5% over the last year.
3. Union Pacific Corporation (UNP): Railroads Industry. Market cap of $46.63B. Call open interest at 43,198 contracts vs. put open interest at 79,722 contracts (Put/Call ratio at 1.85). Short float at 1.55%, which implies a short ratio of 2.58 days. The stock has gained 49.89% over the last year.
4. Kraft Foods Inc. (KFT): Food Industry. Market cap of $52.96B. Call open interest at 111,015 contracts vs. put open interest at 199,371 contracts (Put/Call ratio at 1.8). Short float at 1.19%, which implies a short ratio of 2.44 days. The stock has gained 19.37% over the last year.
5. Nike Inc. (NKE): Textile Industry. Market cap of $41.83B. Call open interest at 24,518 contracts vs. put open interest at 41,987 contracts (Put/Call ratio at 1.71). Short float at 1.52%, which implies a short ratio of 2.17 days. The stock has gained 37.39% over the last year.
6. Enterprise Products Partners LP (EPD): Independent Oil & Gas Industry. Market cap of $26.42B. Call open interest at 8,682 contracts vs. put open interest at 14,695 contracts (Put/Call ratio at 1.69). Short float at 1.55%, which implies a short ratio of 5.03 days. The stock has gained 47.12% over the last year.
7. Simon Property Group Inc. (SPG): REIT Industry. Market cap of $29.9B. Call open interest at 29,641 contracts vs. put open interest at 49,312 contracts (Put/Call ratio at 1.66). Short float at 4.03%, which implies a short ratio of 5.62 days. The stock has gained 41.78% over the last year.
8. Altria Group Inc. (MO): Cigarettes Industry. Market cap of $49.71B. Call open interest at 139,384 contracts vs. put open interest at 230,794 contracts (Put/Call ratio at 1.66). Short float at 1.83%, which implies a short ratio of 2.86 days. The stock has gained 33.02% over the last year.
9. EI DuPont de Nemours & Co. (DD): Chemicals Industry. Market cap of $44.95B. Call open interest at 75,186 contracts vs. put open interest at 122,794 contracts (Put/Call ratio at 1.63). Short float at 1.43%, which implies a short ratio of 2.07 days. The stock has gained 47.43% over the last year.
10. Deere & Company (DE): Farm & Construction Machinery Industry. Market cap of $33.19B. Call open interest at 74,875 contracts vs. put open interest at 118,316 contracts (Put/Call ratio at 1.58). Short float at 1.36%, which implies a short ratio of 1.4 days. The stock has gained 46.7% over the last year.
11. Kinder Morgan Energy Partners LP (KMP): Oil & Gas Pipelines Industry. Market cap of $22.1B. Call open interest at 13,146 contracts vs. put open interest at 20,642 contracts (Put/Call ratio at 1.57). Short float at 1.96%, which implies a short ratio of 7.65 days. The stock has gained 32.14% over the last year.
12. International Business Machines Corp. (IBM): Diversified Computer Systems Industry. Market cap of $180.61B. Call open interest at 115,802 contracts vs. put open interest at 180,974 contracts (Put/Call ratio at 1.56). Short float at 1.46%, which implies a short ratio of 3.19 days. The stock has gained 16.16% over the last year.
13. AFLAC Inc. (AFL): Accident & Health Insurance Industry. Market cap of $25.65B. Call open interest at 47,539 contracts vs. put open interest at 72,736 contracts (Put/Call ratio at 1.53). Short float at 1.18%, which implies a short ratio of 1.79 days. The stock has gained 22.6% over the last year.
14. Comcast Corporation (CMCSA): CATV Systems Industry. Market cap of $58.12B. Call open interest at 172,843 contracts vs. put open interest at 259,083 contracts (Put/Call ratio at 1.5). Short float at 2.35%, which implies a short ratio of 3.03 days. The stock has gained 33.01% over the last year.
15. United Technologies Corp. (UTX): Conglomerates Industry. Market cap of $72.71B. Call open interest at 67,365 contracts vs. put open interest at 100,392 contracts (Put/Call ratio at 1.49). Short float at 0.92%, which implies a short ratio of 2.06 days. The stock has gained 19.92% over the 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Enterprise Products Partners LP (EPD): Independent Oil & Gas Industry. Kinder Morgan Energy Partners LP (KMP): Oil & Gas Pipelines Industry. Compiled by Luis Gonzalez: The following is a list of large-cap stocks with a large number of open put option contracts relative to call option contracts (suggesting that options traders expect more downside from these names).
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Compiled by Luis Gonzalez: The following is a list of large-cap stocks with a large number of open put option contracts relative to call option contracts (suggesting that options traders expect more downside from these names). Options traders are bearish on all these names--what do you think? For contrarians, this excessive pessimism might raise a flag... We're not going to go into detailed analysis for each company, the goal here is to give you a starting point for your own analysis.
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Compiled by Luis Gonzalez: The following is a list of large-cap stocks with a large number of open put option contracts relative to call option contracts (suggesting that options traders expect more downside from these names). Options traders are bearish on all these names--what do you think? For contrarians, this excessive pessimism might raise a flag... We're not going to go into detailed analysis for each company, the goal here is to give you a starting point for your own analysis.
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Deere & Company (DE): Farm & Construction Machinery Industry. Compiled by Luis Gonzalez: The following is a list of large-cap stocks with a large number of open put option contracts relative to call option contracts (suggesting that options traders expect more downside from these names). Options traders are bearish on all these names--what do you think?
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0efa9fcc-da82-4058-8dc9-264e2d803738
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723225.0
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2010-11-26 00:00:00 UTC
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Deere Shares Upgraded After Earnings Beat (DE)
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DE
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https://www.nasdaq.com/articles/deere-shares-upgraded-after-earnings-beat-de-2010-11-26
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nan
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nan
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Argus Research has boosted his price target on shares of Deere ( DE ) from $76 to $88 and has reiterated its buy rating.
The firm said Deere's quarterly report was "much better than we expected and sees continued strong results in fiscal 2011." Argus moved its 2011 earnings estimates from $4.85 to $4.95 and set a 2012 estimate of $5.30.
The Bottom Line
Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on Wednesday's closing stock price of $76.23. The stock has technical support in the $69-$70 price area. If the shares can firm up, we see overhead resistance around the $79-$81 price levels.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Argus Research has boosted his price target on shares of Deere ( DE ) from $76 to $88 and has reiterated its buy rating. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on Wednesday's closing stock price of $76.23. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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Argus Research has boosted his price target on shares of Deere ( DE ) from $76 to $88 and has reiterated its buy rating. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The firm said Deere's quarterly report was "much better than we expected and sees continued strong results in fiscal 2011."
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Argus Research has boosted his price target on shares of Deere ( DE ) from $76 to $88 and has reiterated its buy rating. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on Wednesday's closing stock price of $76.23. Created by Dividend.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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Argus Research has boosted his price target on shares of Deere ( DE ) from $76 to $88 and has reiterated its buy rating. The firm said Deere's quarterly report was "much better than we expected and sees continued strong results in fiscal 2011." The Bottom Line Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on Wednesday's closing stock price of $76.23.
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38aaa34d-15e2-4e0c-a15c-01528b37a26e
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723226.0
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2010-11-24 00:00:00 UTC
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Deere Swings to Q4 Profit, but Forecast Falls Short (DE)
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DE
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https://www.nasdaq.com/articles/deere-swings-q4-profit-forecast-falls-short-de-2010-11-24
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nan
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nan
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that it swung to a fourth quarter profit, beating analyst estimates, but a muted full-year outlook sent its shares lower in premarket trading.
The Moline, IL-based company reported fourth quarter net income of $457 million, or $1.07 per share, compared with a net loss of $223 million, or 53 cents per share, in the year-ago period.
Sales surged 35% from last year to $7.2 billion.
On average, Wall Street analysts expected a smaller profit of 95 cents per share, on much lower sales of $6.3 billion.
Looking ahead, the company forecast full-year fiscal 2011 profits of $2.10 billion, which falls well short of analysts' estimate of $2.30 billion.
Deere shares fell 95 cents, or -1.2%, in premarket trading Wednesday.
The Bottom Line
Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on last night's closing stock price of $76.34. The stock has technical support in the $69-$70 price area. If the shares can firm up, we see overhead resistance around the $79-$81 price levels.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that it swung to a fourth quarter profit, beating analyst estimates, but a muted full-year outlook sent its shares lower in premarket trading. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on last night's closing stock price of $76.34. Deere shares fell 95 cents, or -1.2%, in premarket trading Wednesday.
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that it swung to a fourth quarter profit, beating analyst estimates, but a muted full-year outlook sent its shares lower in premarket trading. Deere shares fell 95 cents, or -1.2%, in premarket trading Wednesday. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on last night's closing stock price of $76.34.
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that it swung to a fourth quarter profit, beating analyst estimates, but a muted full-year outlook sent its shares lower in premarket trading. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on last night's closing stock price of $76.34. Deere shares fell 95 cents, or -1.2%, in premarket trading Wednesday.
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that it swung to a fourth quarter profit, beating analyst estimates, but a muted full-year outlook sent its shares lower in premarket trading. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on last night's closing stock price of $76.34. Deere shares fell 95 cents, or -1.2%, in premarket trading Wednesday.
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602342d8-5022-4c04-bf7a-7184c6cae370
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723227.0
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2010-11-24 00:00:00 UTC
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Opening View: DJIA Futures Edge Higher Ahead of Holiday, Data Deluge
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DE
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https://www.nasdaq.com/articles/opening-view-djia-futures-edge-higher-ahead-holiday-data-deluge-2010-11-24
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nan
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nan
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The Dow Jones Industrial Average (DJIA) plunged 142 points on Tuesday, but the battered and bruised blue chip barometer weathered the Korean conflict and Irish debt woes by closing above psychological support at the 11,000 level. While neither of those fears have been completely alleviated, the Dow appears poised to head higher today, though volume will be light ahead of tomorrow's Thanksgiving holiday. Heading into the open, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 14 points and 2.2 points above fair value, respectively. Traders should not slip into an early tryptophan-induced complacency, however, as there is a veritable flood of economic data slated for release today, including durable goods, consumer sentiment, petroleum supplies, and weekly jobless claims, just to name a few.
In equity news, Deere & Company ( DE ) reported a fourth-quarter profit of $457 million, or $1.07 per share, as sales jumped 35% to $7.2 billion. Analysts were expecting a profit of 95 cents and sales of $6.3 billion.
Elsewhere, Tiffany & Co. ( TIF ) reported adjusted third-quarter earnings of 46 cents per share, as revenue rose to $681.7 million. Wall Street was looking for earnings of 37 cents per share and revenue of $650.3 million. Looking ahead, Tiffany said that it now expected to earn an adjusted $2.72 to $2.77 per share for fiscal 2011, up from its previous estimate of $2.60 to $2.65 per share. The consensus estimate for 2011 was set at $2.63 per share.
TiVo Inc. ( TIVO ) announced that its third-quarter loss widened to $20.6 million, or 18 cents per share, from a loss of $6.48 million, or 6 cents per share, in the year-ago period, as operating expenses increased. Service and technology revenue declined to $41.3 million from $42.1 million. Analysts were expecting a loss of 17 cents per share on service and technology revenue of $41.4 million.
Earnings Preview
The economic calendar is quiet for the rest of the week, due to the Thanksgiving holiday. Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
The Street will be drenched in data today, with October's personal income and spending reports, October durable goods orders, weekly initial jobless claims, November's University of Michigan consumer sentiment index, October's new home sales, and weekly U.S. petroleum supplies. The market is closed for Thanksgiving on Thursday, and there are no economic reports slated for release on Friday.
Market Statistics
Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,114,862 call contracts traded on Tuesday, compared to 809,079 put contracts. The resultant single-session put/call ratio arrived at 0.73, while the 21-day moving average rose to 0.58.
**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**
Overseas Trading
Overseas trading is bouncing back this morning, as seven of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.22%. In Asian trading, Japan's Nikkei had a rude welcome back from yesterday's holiday hiatus, plunging nearly 1% as traders played catch-up with Tuesday's losses. However, the rest of the region rebounded, with investors snapping up oversold stocks on hopes that Korean tensions would be short lived. In Europe, regional markets headed broadly higher, as strong economic data out of Germany offset continuing concerns about sovereign debt in the euro zone. Specifically, the Ifo Institute's business-climate index tagged its highest level since Germany was reunified.
Currencies and Commodities
Global uncertainty and light volume ahead of the Thanksgiving holiday is fueling gains for the U.S. dollar this morning. Extending yesterday's safe-haven rally, the U.S. Dollar Index has added 0.17% to trade at 79.82 in premarket activity. Surprisingly, crude futures, which typically trade inversely to the greenback, have gained 20 cents to $81.45 per barrel in electronic trading. Gold, however, has not been so lucky, with the malleable metal declining $3.00 to $1,376.70 an ounce in London.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and 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 Dow Jones Industrial Average (DJIA) plunged 142 points on Tuesday, but the battered and bruised blue chip barometer weathered the Korean conflict and Irish debt woes by closing above psychological support at the 11,000 level. Traders should not slip into an early tryptophan-induced complacency, however, as there is a veritable flood of economic data slated for release today, including durable goods, consumer sentiment, petroleum supplies, and weekly jobless claims, just to name a few. In Europe, regional markets headed broadly higher, as strong economic data out of Germany offset continuing concerns about sovereign debt in the euro zone.
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Traders should not slip into an early tryptophan-induced complacency, however, as there is a veritable flood of economic data slated for release today, including durable goods, consumer sentiment, petroleum supplies, and weekly jobless claims, just to name a few. Economic Calendar The Street will be drenched in data today, with October's personal income and spending reports, October durable goods orders, weekly initial jobless claims, November's University of Michigan consumer sentiment index, October's new home sales, and weekly U.S. petroleum supplies. The Dow Jones Industrial Average (DJIA) plunged 142 points on Tuesday, but the battered and bruised blue chip barometer weathered the Korean conflict and Irish debt woes by closing above psychological support at the 11,000 level.
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TiVo Inc. ( TIVO ) announced that its third-quarter loss widened to $20.6 million, or 18 cents per share, from a loss of $6.48 million, or 6 cents per share, in the year-ago period, as operating expenses increased. Economic Calendar The Street will be drenched in data today, with October's personal income and spending reports, October durable goods orders, weekly initial jobless claims, November's University of Michigan consumer sentiment index, October's new home sales, and weekly U.S. petroleum supplies. The Dow Jones Industrial Average (DJIA) plunged 142 points on Tuesday, but the battered and bruised blue chip barometer weathered the Korean conflict and Irish debt woes by closing above psychological support at the 11,000 level.
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It does not include regional volume activity, which means that other daily volume quotes you see may be higher. The Dow Jones Industrial Average (DJIA) plunged 142 points on Tuesday, but the battered and bruised blue chip barometer weathered the Korean conflict and Irish debt woes by closing above psychological support at the 11,000 level. Heading into the open, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 14 points and 2.2 points above fair value, respectively.
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a2b86e9e-1f06-46f8-a21a-aff3f5274b92
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723228.0
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2010-11-19 00:00:00 UTC
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Market Wrap-Up for Nov.19 (NKE, WLT, CLF, WYNN, DIS, BA, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-nov19-nke-wlt-clf-wynn-dis-ba-more-2010-11-19
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nan
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nan
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It's been pretty amazing to see the trend of quick morning spikes, followed by 5-6 hours of a tight trading range whenever we get the triple digit gains on the Dow (which we saw again yesterday).
This type of action certainly stirs the pot for market conspiracy theorists. We all know the Federal Reserve has been active in the financial markets with liquidity, so the action should not be too much of a shock. The key thing to watch is if the pattern starts to change.
Here at Dividend.com, we've been able to successfully navigate through any sort of market environment as we look for the best dividend investment opportunities we can find. Investors need to focus on this area as well. There have been too many people that have remained on the sidelines for fear of the markets tumbling. Sitting in cash for long periods of time rarely makes for the best strategy. We're certainly not known here as the most bullish of market pundits, but we don't want investors to get hooked on trying to time the markets either. We still have a number of potential new recommendations we are eying, but also know that we may need to make changes to our current list if need be.
As we look at today's action, there were some well-known plays that powered higher, despite the sluggish averages. Nike ( NKE ), Wynn Resorts ( WYNN ), Walter Energy ( WLT ), and Cliffs Natural Resources ( CLF ) paced the gainers' list. On the flipside, Disney ( DIS ) and Boeing ( BA ) were a couple of weak performers. Be sure to check out the "Market Themes" video for some notes on this week's action and a look toward next week.
Speaking of next week's holiday-shortened trading, there will be fewer earnings on the board, but we will be getting reports from Deere ( DE ), Tiffany ( TIF ) and Analog Devices ( ADI ), to name a few. Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, and as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List.
Have a great weekend everybody, and thanks for reading!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Speaking of next week's holiday-shortened trading, there will be fewer earnings on the board, but we will be getting reports from Deere ( DE ), Tiffany ( TIF ) and Analog Devices ( ADI ), to name a few. Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, and as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List. We all know the Federal Reserve has been active in the financial markets with liquidity, so the action should not be too much of a shock.
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Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, and as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. We all know the Federal Reserve has been active in the financial markets with liquidity, so the action should not be too much of a shock.
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Be sure to check out the "Market Themes" video for some notes on this week's action and a look toward next week. Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, and as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List. We all know the Federal Reserve has been active in the financial markets with liquidity, so the action should not be too much of a shock.
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Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, and as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List. We all know the Federal Reserve has been active in the financial markets with liquidity, so the action should not be too much of a shock. Here at Dividend.com, we've been able to successfully navigate through any sort of market environment as we look for the best dividend investment opportunities we can find.
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661e683b-e69d-420c-9882-506d39c69028
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723229.0
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2010-11-18 00:00:00 UTC
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Deere’s Target, Estimates Boosted at Jefferies & Co. (DE)
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DE
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https://www.nasdaq.com/articles/deeres-target-estimates-boosted-jefferies-co-de-2010-11-18
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nan
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nan
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Construction and farm equipment maker Deere & Company ( DE ) on Thursday saw its price target and earnings estimates raised by analysts at Jefferies & Co.
The firm maintained its "Buy" rating on DE and boosted its price target to $90 all the way up from $70. That new target represents an expected 18% upside to the stock's Wednesday closing price of $76.
Jefferies also raised its earnings estimates for the company through 2012, citing expected growth in coming quarters. The firm commented, "Deere is the premium machinery play on the global farm sector, where growth is resuming after a relatively modest 2009 ag downturn. The company is also a call option on a replacement cycle in North American construction once the housing situation stabilizes."
Deere shares rose $1.05, or +1.4%, in premarket trading Thursday.
The Bottom Line
Shares of Deere & Co. ( DE ) have a 1.58% dividend yield, based on last night's closing stock price of $76. The stock has technical support in the $69-$70 price area. If the shares can firm up, we see overhead resistance around the $79-$81 price levels.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Construction and farm equipment maker Deere & Company ( DE ) on Thursday saw its price target and earnings estimates raised by analysts at Jefferies & Co. The firm commented, "Deere is the premium machinery play on the global farm sector, where growth is resuming after a relatively modest 2009 ag downturn. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.58% dividend yield, based on last night's closing stock price of $76.
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Construction and farm equipment maker Deere & Company ( DE ) on Thursday saw its price target and earnings estimates raised by analysts at Jefferies & Co. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The firm maintained its "Buy" rating on DE and boosted its price target to $90 all the way up from $70.
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Construction and farm equipment maker Deere & Company ( DE ) on Thursday saw its price target and earnings estimates raised by analysts at Jefferies & Co. The firm maintained its "Buy" rating on DE and boosted its price target to $90 all the way up from $70. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.58% dividend yield, based on last night's closing stock price of $76.
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Construction and farm equipment maker Deere & Company ( DE ) on Thursday saw its price target and earnings estimates raised by analysts at Jefferies & Co. The firm maintained its "Buy" rating on DE and boosted its price target to $90 all the way up from $70. The Bottom Line Shares of Deere & Co. ( DE ) have a 1.58% dividend yield, based on last night's closing stock price of $76.
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6538e0e0-7b41-4414-a1a1-e2768175811b
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723230.0
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2010-11-09 00:00:00 UTC
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Watch for the Post-Election Bounce
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DE
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https://www.nasdaq.com/articles/watch-post-election-bounce-2010-11-09
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nan
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nan
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It is a pretty reliable trend to see the stock market consolidate after earnings announcement season winds down. But serious consolidation is less likely this November as the mid-term election cycle will put investors in a bullish mood. I don't want to sound too political here, but things are on the verge of changing in the House of Representatives and in the Senate. Don't take my word for it; just listen to what most political analysts are saying. As of the time of this writing, the odds of the House turning Republican are 87.1%. The odds of the Democrats retaining the Senate are just 58%. As you can see, people are expecting a big shakeup in both chambers.
So, if predictions are correct, we'll likely see a split in the control of power in Washington as the legislative branch goes to the Republicans. This is welcome news for Wall Street. You see, when one party controls both the White House and Congress, it's much easier for the government to pass new legislation and change the regulatory environment, as it has done in the last two years. This makes it harder for companies to expand their businesses and spend money because they have no guarantee that the rules won't change in the near future.
When control is split between two parties, legislation piles up and little change is accomplished. This gives companies the all-clear signal that they've been waiting for and unleashes a wave of corporate spending. Corporate America has raised almost $500 billion in new bond debt and the cash in corporate cookie jars is fast approaching $2 trillion (approximately 13% of the value of the stock market). This cash is burning a hole in corporate pockets and is hurting businesses that are sitting on it. That's why businesses are impatient to unleash their money on the U.S. economy via capital spending after the elections, accompanied by even more dividend increases, stock buybacks and mergers and acquisitions. This puts a firm foundation under the stock market and helps boost our tech holdings. The tech sector is always the first to benefit from corporate spending because upgrading equipment and adding technology are the first things companies spend money on.
Not all of the market tailwinds are coming from politics. We're also getting a nice boost from the falling dollar. While many observers worry about the decline in the dollar, it is in fact great news for our stocks.
The decline allows companies with more foreign sales to receive a greater amount of dollars when they exchange them from foreign currencies.
This is why a lower dollar is helping boost corporate profits. Unlike the S&P 500, where approximately 40% of sales are derived outside the U.S. from large multinational companies, my stocks derive more than 60% of their sales from outside the U.S. As a result, the further the U.S. dollar falls, the more windfall profits my stocks pile up. In short, a weaker dollar is great news for my Buy List stocks!
Deere & Company (NYSE: DE ) is the world's largest farm equipment manufacturer and a leading producer of construction, forestry and commercial and residential lawn care equipment. If you have ever seen a tractor, you probably recognize the signature John Deere green color or know the company's "Nothing Runs like a Deer" slogan. Unlike in Eastern Europe where wheat production has slowed, U.S. crops have surged in the past several months. Currently, the country is producing a record number of crop exports. The higher demand for crops is leading to a greater need for farm equipment.
Although agriculture only accounts for about 1% of the U.S. economy, the actual impact of surging prices could be 10 times greater once spending on equipment, seeds, grain handling and food processing is calculated. This is why Deere & Co. stands to capitalize on high agricultural commodity prices.
I see this as a great way to play the overall trend in higher food prices that is developing with the decline in the dollar.
The analyst community is expecting that Deere's quarterly sales will rise +31%, and its earnings will rise a whopping +300%! The company has a strong earnings surprise history and should continue to benefit from high food and crop prices, as well as a weak U.S. dollar. This stock will report earnings at the end of November. Add shares of this conservative stock to your portfolio under $84 before that time.
Magna International Inc. (NYSE: MGA ) is a global supplier of automotive systems, components and modules. The company is a survivor, seeing as several of its competitors have been dragged down by the bankruptcies of automotive giants GM and Chrysler. The company provides services ranging from vehicle engineering and assembly to production of exterior trim and building interior door panels.
Magna is on the brink of several important advances in the automotive industry. In September, the Magna E-Car division opened its newest hybrid and electric vehicle development center in Michigan. As far as cars go there's nothing faster than the race to build truly efficient hybrid and electric cars and Magna is set on crossing the finish line first. The past year has been good to Magna, with the opening of several new locations and new assembly contracts with major car brands like Aston Martin. The company's forecast continues to look sunny with continued deals with GM and Ford and a stronger presence in the auto-hungry countries of South America on the way.
In the second quarter, the company's sales rose +63.1% to $6.05 billion, compared with $3.71 billion in the same quarter a year earlier. During the same period, its earnings rose to $293 million, or $2.59 per share, from a loss of $205 million, or $1.83 per share, a year earlier. When the company reports earnings on November 5, the analyst community is expecting the company to post a sales increase of +13.7% and an earnings increase of +220%! In the past three months, the analyst community has revised its consensus earnings estimate +27.9% higher so these results could very well come in above current estimates. This is a great conservative buy under $95.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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's why businesses are impatient to unleash their money on the U.S. economy via capital spending after the elections, accompanied by even more dividend increases, stock buybacks and mergers and acquisitions. The odds of the Democrats retaining the Senate are just 58%. This makes it harder for companies to expand their businesses and spend money because they have no guarantee that the rules won't change in the near future.
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The analyst community is expecting that Deere's quarterly sales will rise +31%, and its earnings will rise a whopping +300%! The odds of the Democrats retaining the Senate are just 58%. This makes it harder for companies to expand their businesses and spend money because they have no guarantee that the rules won't change in the near future.
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Unlike the S&P 500, where approximately 40% of sales are derived outside the U.S. from large multinational companies, my stocks derive more than 60% of their sales from outside the U.S. As a result, the further the U.S. dollar falls, the more windfall profits my stocks pile up. The odds of the Democrats retaining the Senate are just 58%. This makes it harder for companies to expand their businesses and spend money because they have no guarantee that the rules won't change in the near future.
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I see this as a great way to play the overall trend in higher food prices that is developing with the decline in the dollar. The odds of the Democrats retaining the Senate are just 58%. This makes it harder for companies to expand their businesses and spend money because they have no guarantee that the rules won't change in the near future.
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919acc87-6670-4fdf-99d0-2fa4b53cd8c4
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723231.0
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2010-11-03 00:00:00 UTC
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Could This Stock Rally in 2011?
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DE
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https://www.nasdaq.com/articles/could-stock-rally-2011-2010-11-03
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nan
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nan
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You've probably heard the quote from the great entrepreneur Henry Ford who once commented, "People can have the model-T in any color, so long as it's black".
The man's unique ability to combine innovation with simplicity is symbolic of the great entrepreneurial spirit that helped America become the world's leading superpower. Unfortunately, in modern America, the U.S. automobile industry has faltered and once great companies like Ford ( F ) and General Motors have fallen from grace.
Ford also once said, " Nothing is particularly hard if you divide it into small jobs." That's the mentality that is needed right now for U.S. auto companies and parts suppliers if they are going to succeed in the 21 st century.
One auto company that appears to be tackling the 'small jobs' that will ultimately lead to success is American Axle & Manufacturing ( AXL ). This was nearly a $40 stock in early 2004, but has since fallen by more than 75 percent. I'm not calling for the stock to hit $40 again anytime soon, but there's a good chance that investors can profit from the company's efforts to grow into a leading global auto-parts supplier.
***It's been quite a turnaround for American Axle, one of the largest auto suppliers in the world. The company reported a healthy earnings surprise on Oct. 29 th , delivering earnings of $38.8 million, or 52 cents a share. Analysts were looking for just 39 cents a share. Sales of $618.2 million also beat expectations.
Still, the company's full-year outlook that calls for revenue in the $2.2 billion to $2.3 billion range was disappointing to the Street, and the stock has meandered lower. Shares are up about 12 percent year-to-date, and about 50 percent in the past 12 months.
Some, like Jim Cramer of Mad Money's 'Lighting Round' are bearish on American Axle, but I'm not so sure this company is stuck in the mud.
***Just like Ford, American Axle avoided going through restructuring under bankruptcy protection and appears to have emerged from the industry's carnage in relatively good shape. Many of the company's competitors haven't fared as well and needed Chapter 11 to shed debt and unwanted manufacturing capacity.
The Tier 1 supplier had a few tough years, there's no doubt about that. It finished in the red in 2006, 2008 and 2009, including an ugly $1.2 billion loss for 2008, when sales fell 44 percent from the year before. The United Auto Workers struck for 87 days back then in what was the eighth-longest strike that the union has ever staged.
The company's 2009 loss was trimmed to $253.1 million, even as two of its primary customers, General Motors and Chrysler fell into bankruptcy reorganization. Given that American Axle makes virtually all the driveline components for GM's rear-wheel-drive and sport-utility vehicles the shakedown at these two companies had a dramatic impact.
In 2009 American Axle's business with GM accounted for 78 percent of the company's total net sales, with Chrysler contributing another 8 percent of sales.
***American Axle is relatively new as an auto supplier. The company was founded up in 1994, but traces its roots back to the early days of the automotive industry. In the 1990s, facing an influx of foreign competition General Motors went through one of its many painful restructurings and spun off some parts manufacturing plants.
The five driveline and forging assets were bought by investors and became American Axle. The stock went public in 1999.
Those five operations have expanded to 32, with a worldwide presence serving 100 customers in Asia, Europe and the Americas, including the fast-growing markets of China and India. Customers now include Ford, John Deere ( DE ) and Harley-Davidson ( HOG ), along with India's Tata Motors ( TTM ) and Japan's Hino, the latter a major maker of trucks and buses.
American Axle has evolved - it now develops everything from drive-train and chassis parts to electronics. It's becoming more nimble, and in addition to serving large vehicle markets it's tapping into demand for smaller vehicles. For instance it's making axles in Brazil for a Volkswagen all-terrain pickup headed for the global marketplace. And it's shifting away from its heavy dependence on GM and Chrysler for business.
***Optimism seems to be perking up at American Axle. The company predicts that it will see 2009 sales of $1.5 billion double by 2013 as vehicle sales in the U.S. rebound to 13-14 million.
The U.S. auto industry, including suppliers such as American Axle, is bouncing back. It's becoming a leaner, meaner sector that's shuttered plants, fired workers and moved operations overseas.
With five consecutive profitable quarters under its belt, American Axle is now miles ahead of many of its competitors. The stock is trading below $10, but I believe has around 20 percent upside over the next 12-months.
***I've got a number of small cap ideas that could help keep your portfolio in the black. One deep value investment I recommended shot nearly 10 percent higher yesterday after it reported earnings. Another communications stock is up over 50 percent since I added it to the portfolio. Subscribers to Small Cap Investor PRO are enjoying the gains on these stocks, and I'd like to invite you to take a test drive of the portfolio at no risk to you. Check out these top performing small cap stocks by following this link and get a fee trial-offer to Small Cap Investor PRO .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Customers now include Ford, John Deere ( DE ) and Harley-Davidson ( HOG ), along with India's Tata Motors ( TTM ) and Japan's Hino, the latter a major maker of trucks and buses. You've probably heard the quote from the great entrepreneur Henry Ford who once commented, "People can have the model-T in any color, so long as it's black". Unfortunately, in modern America, the U.S. automobile industry has faltered and once great companies like Ford ( F ) and General Motors have fallen from grace.
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You've probably heard the quote from the great entrepreneur Henry Ford who once commented, "People can have the model-T in any color, so long as it's black". Unfortunately, in modern America, the U.S. automobile industry has faltered and once great companies like Ford ( F ) and General Motors have fallen from grace. Ford also once said, " Nothing is particularly hard if you divide it into small jobs."
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You've probably heard the quote from the great entrepreneur Henry Ford who once commented, "People can have the model-T in any color, so long as it's black". Unfortunately, in modern America, the U.S. automobile industry has faltered and once great companies like Ford ( F ) and General Motors have fallen from grace. Ford also once said, " Nothing is particularly hard if you divide it into small jobs."
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Unfortunately, in modern America, the U.S. automobile industry has faltered and once great companies like Ford ( F ) and General Motors have fallen from grace. You've probably heard the quote from the great entrepreneur Henry Ford who once commented, "People can have the model-T in any color, so long as it's black". Ford also once said, " Nothing is particularly hard if you divide it into small jobs."
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e262acf5-4bc4-4ca2-a546-79a411c40636
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723232.0
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2010-10-25 00:00:00 UTC
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UBS goes bullish on the food trade
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DE
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https://www.nasdaq.com/articles/ubs-goes-bullish-food-trade-2010-10-25
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nan
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nan
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As we have been saying around here for months, food is becoming very hot in the emerging world and throughout the globe. Wall Street is just now catching on. UBS raised its targets on a number of key food names, revealing that the giant Swiss bank thinks these stocks could rise by 11% to 40% over the near term.
Still, while the targets are rising, UBS is keeping most of its ratings on these stocks right where they are. This usually reflects a case where the analyst is stubbornly refusing to acknowledge anything beyond the fact that a stock or sector has run up farther than he or she thought it would.
UBS now thinks potash producer Agrium (AGU) -- the only true "buy" in this list, as far as the bank is concerned -- will hit $95 a share in the near future. This makes a certain sense, given the strong bid that the entire potash group has received in the wake of recent M&A buzz.
Farm equipment makers CNH Global (CNH) and Deere (DE) will reach $40 and $75, respectively, in the bank's estimates. And even tractor maker AGCO , which UBS rates as a "sell," could jump 12% to $36, according to the latest estimates. We are not bullish on the tractor names -- it sounds like UBS is not either. Soft commodities like sugar are a better bet at this point.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Farm equipment makers CNH Global (CNH) and Deere (DE) will reach $40 and $75, respectively, in the bank's estimates. UBS raised its targets on a number of key food names, revealing that the giant Swiss bank thinks these stocks could rise by 11% to 40% over the near term. This usually reflects a case where the analyst is stubbornly refusing to acknowledge anything beyond the fact that a stock or sector has run up farther than he or she thought it would.
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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. Farm equipment makers CNH Global (CNH) and Deere (DE) will reach $40 and $75, respectively, in the bank's estimates. UBS raised its targets on a number of key food names, revealing that the giant Swiss bank thinks these stocks could rise by 11% to 40% over the near term.
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Farm equipment makers CNH Global (CNH) and Deere (DE) will reach $40 and $75, respectively, in the bank's estimates. UBS raised its targets on a number of key food names, revealing that the giant Swiss bank thinks these stocks could rise by 11% to 40% over the near term. UBS now thinks potash producer Agrium (AGU) -- the only true "buy" in this list, as far as the bank is concerned -- will hit $95 a share in the near future.
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Farm equipment makers CNH Global (CNH) and Deere (DE) will reach $40 and $75, respectively, in the bank's estimates. As we have been saying around here for months, food is becoming very hot in the emerging world and throughout the globe. UBS raised its targets on a number of key food names, revealing that the giant Swiss bank thinks these stocks could rise by 11% to 40% over the near term.
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a29e958e-2350-45ad-9e69-2518475e1e3a
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723233.0
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2010-10-25 00:00:00 UTC
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An Easy Trade for Rising Commodity Prices
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DE
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https://www.nasdaq.com/articles/easy-trade-rising-commodity-prices-2010-10-25
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nan
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nan
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Commodity prices are surging. But rather than recommending a pure commodity play for this week's trade, I'm intrigued by a stock that not only benefits from strong commodity prices, but also more profits for farmers.
And with farmers seeing fatter profits from their crops, many are taking the money and putting it into new farm equipment.
According to the Association of Equipment Manufacturers, September sales of row-crop tractors increased by +46.9% from August, while four-wheel drive tractor sales rose +20.5%.
Because of this, shares of Deere ( DE ) -- the world's largest manufacturer of lawn and farm equipment -- are surging.
Deere estimates that total farm income in the United States will increase by at least +15% in 2010 to $81.5 billion, compared to $70.9 billion last year.
This revenue growth has been -- and will likely continue -- to drive shares of Big Green higher.
In the October 18th trading week, the stock hit a new two-year high at $77.72. A small shelf of resistance has been established at this level. DE is approaching its upper Bollinger band, which intersects at $78.75, and the stock appears ready to challenge resistance and move higher.
If this resistance is broken, DE could be on target to reach its 2008 peak of $89.75.
DE has been in a major uptrend since hitting a low of $23.55 in March 2009. Since July 2009, the rising 40-week moving average has mirrored the uptrend line.
In June 2010, an accelerated uptrend line formed off the stock's $53.47 low. DE is currently well above this accelerated uptrend and rising. The rising 10-week moving average has mirrored the accelerated uptrend since July, when it crossed above the 30-week moving average.
Key support lies just below $67, around the intersection of the 30-week moving average and a support level tested several times in July and August of this year.
The indicators are bullish. MACD is on a buy signal. The MACD histogram is in positive territory.
Relative strength index (RSI) is in a strong uptrend and rising. At 70, it has just become overbought, but strong stocks can stay overbought for long periods.
Stochastics , although overbought, is on a buy signal.
Fundamentally, the iconic maker of green and yellow farm tractors shows solid revenue andearnings growth.
In August, Deere reported upbeat third-quarter results, for the period ending July 31st, 2010. Because of strong North American equipment sales, revenue rose +16% to $6.84 billion, from $5.3 billion in the year-ago quarter.
For the upcoming fourth-quarter, to be reported November 24th, analysts expect Deere's revenue to increase +31% to $6.2 billion, from $4.7 billion in the year-ago period.
Based on rising commodity prices, the farm equipment maker projects full-year 2010 revenue to increase +12.2% to $23.3 billion, compared with $20.8 billion in 2009. By 2011, analysts project revenue will increase another +9.6% to $25.5 billion.
Theearnings outlook is equally upbeat.
With increased demand for farm equipment, Deere reported a strong third-quarter.Earnings rose +45.5% to $1.44 from $0.99 in the year-ago period.
For the upcoming fourth-quarter, the company expects higher R&D and raw material costs to impactearnings . However, analysts believe results will still be incredibly strong, withearnings quadrupling to $0.92 from $0.23 in the year-ago quarter.
For the fiscal 2010 year, analysts projectearnings will nearly double from $2.81 last year, to $4.48 this year. Latin American and North American demand for large farm machinery is expected to drive demand. This demand is expected to continue into fiscal 2011, where analysts expectearnings to increase another +14.1% to $5.11.
Action to Take --> Based on Deere's solid growth outlook and current technical strength, I recommend going long on the stock.
My target is $89.74, just below the stock's 2008 high. My stop-loss is $66.44, just below support and the current intersection of the 30-week moving average.
Based on Friday's closing price of $77.25, this trade would stand to make as much as +16.2%.
[To find out how to get a free trade recommendation delivered to your inbox before the market opens each week, go here .]
Dr. Melvin Pasternak is one of the most experienced market technicians in the nation and Chief Trading Expert behind Double-Digit Trading. With more than 25 years experience... Read more.
Disclosure: Neither Melvin Pasternak nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE is approaching its upper Bollinger band, which intersects at $78.75, and the stock appears ready to challenge resistance and move higher. Fundamentally, the iconic maker of green and yellow farm tractors shows solid revenue andearnings growth. Action to Take --> Based on Deere's solid growth outlook and current technical strength, I recommend going long on the stock.
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For the upcoming fourth-quarter, to be reported November 24th, analysts expect Deere's revenue to increase +31% to $6.2 billion, from $4.7 billion in the year-ago period. But rather than recommending a pure commodity play for this week's trade, I'm intrigued by a stock that not only benefits from strong commodity prices, but also more profits for farmers. Because of this, shares of Deere ( DE ) -- the world's largest manufacturer of lawn and farm equipment -- are surging.
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But rather than recommending a pure commodity play for this week's trade, I'm intrigued by a stock that not only benefits from strong commodity prices, but also more profits for farmers. For the upcoming fourth-quarter, to be reported November 24th, analysts expect Deere's revenue to increase +31% to $6.2 billion, from $4.7 billion in the year-ago period. Because of this, shares of Deere ( DE ) -- the world's largest manufacturer of lawn and farm equipment -- are surging.
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For the upcoming fourth-quarter, to be reported November 24th, analysts expect Deere's revenue to increase +31% to $6.2 billion, from $4.7 billion in the year-ago period. With increased demand for farm equipment, Deere reported a strong third-quarter.Earnings rose +45.5% to $1.44 from $0.99 in the year-ago period. But rather than recommending a pure commodity play for this week's trade, I'm intrigued by a stock that not only benefits from strong commodity prices, but also more profits for farmers.
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3531bc46-2897-415e-8873-c1584a3a21d3
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723234.0
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2010-10-22 00:00:00 UTC
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Two Stocks for the E-Reading Revolution
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DE
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https://www.nasdaq.com/articles/two-stocks-e-reading-revolution-2010-10-22
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nan
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nan
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Last Saturday, I had the pleasure of attending the second Boston Book Festival. It's fitting that our historic city has an event devoted entirely to the written word, as it is home to the oldest free public city library in the world supported by taxation and the first to allow its patrons to borrow books and other materials.
The festival is held in Copley Square, also the location of the Boston Public Library, and plays host to a variety of events, like author readings and discussions, book signings, live music and children's activities. My favorite parts were the author readings and discussions and I was fortunate to be able to attend two featuring some of my favorite writers: Bill Bryson and Joyce Carol Oates.
In recent years, people have bemoaned the effects the rise of the Internet and e-readers have had on books, but the festival proved that while the medium in which we read books may be changing, the written word is here to stay.
Last year when I attended the festival, I wrote about Amazon.com ( AMZN ), maker of the Kindle e-reader. After that, the stock has meandered higher, ultimately topping out with the overall market in the spring. It got hit in the summer volatility, but has climbed rapidly since the market resumed its upward trend in early September. This is what Cabot Top Ten Weekly Editor Michael Cintolo had to say about it on September 13:
"Retail has not been the place for growth stock investors in recent months, but there have been some signs of life in the sector, and Amazon remains a leader in the field. The reason for the stock's strength lately surrounds its major price cut for the new version of its Kindle e-book reader, which can be had for $139 (compared to $399 when it was first released three years ago). That price cut is sparking sales of the device in a big way-one analyst sees nearly five million Kindle sales this year alone-and it doesn't hurt that Best Buy will also begin selling the Kindle at its stores in the weeks ahead. Of course, the Kindle is just one piece of Amazon's story; top management has guided the firm into the #1 position in online retail. We like the 40%-plus sales growth each of the past three quarters despite the weak retail environment, as well as the 35% earnings gain projected for 2011. It's not a new story, yet it looks like the company is set to get a lot bigger in the quarters to come."
But Amazon isn't the only company with a successful e-reader. Apple ( AAPL ) sold 4.2 million of its iPad tablets in the most recent quarter. While the iPad isn't strictly an e-reader, it does compete with the Kindle, especially with those customers seeking more functionality from the device. Here's what Mike had to say about the stock in late September:
"Apple needs no introduction, as it's one of the best-known (and best-loved) companies today. The big news during the past few months was probably news that did not come about-after a well-publicized mess-up with its new iPhone (antennaegate), consumers didn't storm out and the issue seems to be resolved. And that allows investors to look ahead to the many other irons Apple has in the fire, such as the fast-selling iPad (some now see north of 20 million sold during the next 12 months), a possible new iPhone using Verizon's network (this could be particularly huge for business), new Mac computers, and the new Apple TV, which allows Netflix streaming and movie rentals right to a TV. Sales and earnings growth remains terrific, and valuation, at 22 times trailing earnings, is surprisingly reasonable."
AAPL hit new highs recently and while it stumbled a bit after its earnings report on Monday, the stock recovered as the week went on. And the company is clearly going strong and has a lot of potential for the future. Just this week, Apple held an event focusing on its Macintosh computer where it announced a new operating system, called Lion, and a new version of its ultra-thin Macbook Air.
And if the trend toward reading on devices, rather than from books, continues, both of these stocks stand to benefit. You could buy them here and hope for the best or you could get more expert buy, sell and hold advice from Mike in Cabot Top Ten Weekly. Click here to learn more about Amazon, Apple and other leading stocks.
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In this week's Stock Market Analysis Video, Cabot China & Emerging Markets Report Editor Paul Goodwin says that there's nothing very complicated going on in the markets right now. After a long uptrend that began strongly in September, the markets advanced for a month, corrected, resumed their uptrend, and corrected again. Stocks discussed include Netflix ( NFLX ), Cree Inc. ( CREE ), Agrium ( AGU ), John Deere ( DE ), Alexion ( ALXN ), and Rightnow Technologies ( RNOW ).
Click here to watch!
--- Advertisement ---
The Shocking Truth about Investing in China
Our subscribers have earned profits totaling over 680% on our recommendations in the last year! And that's just the beginning. Cabot China & Emerging Markets Report Editor Paul Goodwin says … "These numbers translate into cumulative profits of 100% … 200% … even 1,000%+ if you invest in the right Chinese companies being traded on U.S. exchanges."
And the best place to discover these high-potential stocks is in Cabot China & Emerging Markets Report! Subscribe now.
Until next time,
Elyse Andrews
Editor of Cabot Wealth Advisory
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is what Cabot Top Ten Weekly Editor Michael Cintolo had to say about it on September 13: "Retail has not been the place for growth stock investors in recent months, but there have been some signs of life in the sector, and Amazon remains a leader in the field. It's fitting that our historic city has an event devoted entirely to the written word, as it is home to the oldest free public city library in the world supported by taxation and the first to allow its patrons to borrow books and other materials. In recent years, people have bemoaned the effects the rise of the Internet and e-readers have had on books, but the festival proved that while the medium in which we read books may be changing, the written word is here to stay.
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This is what Cabot Top Ten Weekly Editor Michael Cintolo had to say about it on September 13: "Retail has not been the place for growth stock investors in recent months, but there have been some signs of life in the sector, and Amazon remains a leader in the field. --- In this week's Stock Market Analysis Video, Cabot China & Emerging Markets Report Editor Paul Goodwin says that there's nothing very complicated going on in the markets right now. Cabot China & Emerging Markets Report Editor Paul Goodwin says … "These numbers translate into cumulative profits of 100% … 200% … even 1,000%+ if you invest in the right Chinese companies being traded on U.S.
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This is what Cabot Top Ten Weekly Editor Michael Cintolo had to say about it on September 13: "Retail has not been the place for growth stock investors in recent months, but there have been some signs of life in the sector, and Amazon remains a leader in the field. That price cut is sparking sales of the device in a big way-one analyst sees nearly five million Kindle sales this year alone-and it doesn't hurt that Best Buy will also begin selling the Kindle at its stores in the weeks ahead. --- In this week's Stock Market Analysis Video, Cabot China & Emerging Markets Report Editor Paul Goodwin says that there's nothing very complicated going on in the markets right now.
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In recent years, people have bemoaned the effects the rise of the Internet and e-readers have had on books, but the festival proved that while the medium in which we read books may be changing, the written word is here to stay. This is what Cabot Top Ten Weekly Editor Michael Cintolo had to say about it on September 13: "Retail has not been the place for growth stock investors in recent months, but there have been some signs of life in the sector, and Amazon remains a leader in the field. That price cut is sparking sales of the device in a big way-one analyst sees nearly five million Kindle sales this year alone-and it doesn't hurt that Best Buy will also begin selling the Kindle at its stores in the weeks ahead.
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18c99e7c-256c-490a-9d3c-3cdca7fbaaf6
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723235.0
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2010-10-12 00:00:00 UTC
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Surging Commodities Have Created a Window of Opportunity
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DE
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https://www.nasdaq.com/articles/surging-commodities-have-created-window-opportunity-2010-10-12
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nan
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nan
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Thanks to a confluence of events, prices for corn, soybeans and wheat have been surging recently. And that has set agricultural equipment stocks afire. Shares of irrigation equipment maker Lindsay Manufacturing ( LNN ) have surged more than +10% since last Thursday, while Deere ( DE ) has made a similar move since last Monday. The same can be said for many other sector names, a number of which now sport price-to-earnings (P/E) ratios that are starting to get frothy.
It may be too late to make a quick hit on this farm belt trade, but another sector has suddenly become very attractive simply because these commodities are seeing a surge in prices. I'm talking about the major producers of chicken, beef and pork. Their costs just went up, and their shares just went down. Yet viewed in the context of traditional long-term earnings power, these stocks are suddenly quite cheap.
To fatten up livestock, farmers buy up massive amounts of corn and soybeans, which often account for a big chunk of operating expenses. But these "protein" producers have little control over revenue, even as their expenses rise and fall. The supply of animals on the market controls pricing, which is dictated by supply and demand on global markets. So with expenses rising and those costs unable to pass through, profit forecasts are falling.
For example, back in July analysts thought poultry producer Sanderson Farms (Nasdaq: SAFM) would earn $6 a share next year. Now they think profits will be at least 20% below that view.
But Sanderson's profit forecasts are dropping for another reason as well: the nation's production of chicken and other poultry is set to rise +3% next year, according to the U.S.D.A. And rising supplies usually means falling prices in this industry. Yet that's not the case for beef and pork, as those producers have shown a great deal of discipline by culling herds. Fewer hogs and cattle coming to market next year mean that prices should rise, according to the USDA's World Agricultural Supply and Demand Estimates (WASDE) surveys. By this time next year, global beef production should be -4% lower. (Pork production is slumping now, but is expected to rebound by the second half of 2011.)
So if expenses are rising for all protein producers but the revenue pictures are diverging, investors need to be selective. Smithfield Foods, which focuses solely on the pork market, is looking increasingly attractive, as the company should benefit from surging pork prices. Goldman Sachs expects hog prices to rise +25% to +30% next year, which should be more than enough to offset rising feed costs. If feed costs pull back to historical levels, then earnings could really take off. After a recent pullback, shares of Smithfield Foods trade for less than 10 times projected 2011 profits.
A long-term shot at poultry
Even as poultry producers are struggling from near-term expense hikes, their shares are setting up for a long-term buy. That's because these stocks tend to rise and fall in conjunction with earnings forecasts. Those forecasts have been cut lately, and shares of Sanderson, Tyson ( TSN ) and Pilgrim's Pride ( PPC ) now trade closer to their 52-week low than their 52-week high. Yet estimates should soon hit a bottom -- and so should share prices.
Looking into 2011, other factors are conspiring to take profit forecasts back up. For example, poultry exports to China and Russia are finally starting to rebound after recent embargoes were lifted. And poultry producers have a much greater ability than pork and beef producers to alter industry supply dynamics, as it takes much longer to fatten a hog or cow. As a result, poultry production is likely to peak in the first half of 2011 and start dropping from there as farmers realize lower prices and move to bring supply back in line with demand.
Shares of the major poultry producers are trading for around eight times next year's downwardly revised 2011 profit forecasts. An expansion of the multiple to around 10, coupled with an eventualuptick in forecasts, should set the stage for meaningful upside -- once this current round of rising feed costs have been cycled through to the investment community.
Action to Take --> Smithfield's pork focus makes its shares attractive right now. Investors need to show more finesse with the poultry stocks, however. Wait until quarterly results are out and lagging analysts finally reduce their estimates. Once that happens, forward estimates are likely to find a floor -- as are share prices. As estimates start to rebound in ensuing months, shares are likely to rebound at an even more robust clip as the P/E multiple expands.
David Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...
P.S. -- For the past few weeks we've been telling you about some of the hottest investment opportunities for 2011. From tiny nuclear power plants that can be buried in your lawn, to revolutionary pain killers made from cobra venom, we're convinced the companies behind these products will soar in the coming year. To get briefed on these opportunities, and several others that we think could return many times your money, please read this memo.
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fewer hogs and cattle coming to market next year mean that prices should rise, according to the USDA's World Agricultural Supply and Demand Estimates (WASDE) surveys. As a result, poultry production is likely to peak in the first half of 2011 and start dropping from there as farmers realize lower prices and move to bring supply back in line with demand. From tiny nuclear power plants that can be buried in your lawn, to revolutionary pain killers made from cobra venom, we're convinced the companies behind these products will soar in the coming year.
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For example, back in July analysts thought poultry producer Sanderson Farms (Nasdaq: SAFM) would earn $6 a share next year. Shares of irrigation equipment maker Lindsay Manufacturing ( LNN ) have surged more than +10% since last Thursday, while Deere ( DE ) has made a similar move since last Monday. It may be too late to make a quick hit on this farm belt trade, but another sector has suddenly become very attractive simply because these commodities are seeing a surge in prices.
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For example, back in July analysts thought poultry producer Sanderson Farms (Nasdaq: SAFM) would earn $6 a share next year. Shares of irrigation equipment maker Lindsay Manufacturing ( LNN ) have surged more than +10% since last Thursday, while Deere ( DE ) has made a similar move since last Monday. It may be too late to make a quick hit on this farm belt trade, but another sector has suddenly become very attractive simply because these commodities are seeing a surge in prices.
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But Sanderson's profit forecasts are dropping for another reason as well: the nation's production of chicken and other poultry is set to rise +3% next year, according to the U.S.D.A. Shares of irrigation equipment maker Lindsay Manufacturing ( LNN ) have surged more than +10% since last Thursday, while Deere ( DE ) has made a similar move since last Monday. It may be too late to make a quick hit on this farm belt trade, but another sector has suddenly become very attractive simply because these commodities are seeing a surge in prices.
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3a4dfe1f-0bc9-4a09-92f8-3262a21b3790
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723236.0
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2010-10-10 00:00:00 UTC
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Portfolio Positioning for the Coming Week: Risks and Opportunities
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DE
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https://www.nasdaq.com/articles/portfolio-positioning-coming-week-risks-and-opportunities-2010-10-10
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nan
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nan
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Soos Global Capital submits:
This article is a slightly different version of my weekly "Setting Up for the Opening Bell" series. It combines a review of this week's activity with a preview of next week's, and is supplemented with a thought-provoking sharing of actual positions along with key ideas that are driving our investment decisions.
All week long I've been trumpeting the horn of "political will", arguing that the markets face a heightened level of risk overall largely due to the question surrounding whether or not politicians (and in this, I broadly include all financial officials with policy implication jobs) would do as they say…or not. In colloquial terms: would they 'walk the talk' or not?!
The key to knowing what currency exposure to tolerate in one's portfolio, for example, is now, more than ever, driven by how you assess the likelihood of countries such as Japan, US, China and the EU getting together to multi-laterally deal with what is quickly becoming an all-out currency war of "devaluation-to-deter-deflation".
It was challenging to have these trumpeted sounds resonate while the world anticipated the NFP data release, being that consensus, rightly, holds that the problem in the US is about three things: jobs, jobs and jobs!
And the skittishness of markets was probably most evident on Tuesday when the market soared almost 200 points largely due to a slight uptick in Non-Manufacturing ISM data, an outsized move for a number that is not your usual market moving factoid! That market reaction led me to publish a giant "caveat emptor" within which I had the following graph ( click to enlarge ) that points out just how modest this up-move in Non-Mftg ISM was and therefore just how seemingly absurd was the market's response to it!
(Source: ChartFacts.com)
Friday's NFP data can be summed up in one word: BAD! Or maybe two words: REALLY BAD!
One could try to find a silver lining, but you'd have to try very hard. The mere 67k increase in private sector jobs was below expectations and barely puts a dent in the massive private sector unemployment situation. The collapse of government jobs, down 159k, could only partly be explained by the elimination of Census workers, but more troubling was the 76k component that reflected state and local government job losses.
click to enlarge
The markets had a funny (or not so funny) reaction to the data…a quick up-trade on futures both here and in European markets, probably on the hope that the weak employment data would spur the Fed to launch QE2 that much sooner. But that mild euphoric reaction didn't last long and markets reversed course heading south into the US open. Then, with the positive news from the ECRI Weekly Leading Index coming out, the markets headed back up with the Dow piercing the 11,000 mark where it flirted most of the day (closing a tad above 11,006).
One has to wonder: Are market participants so giddy with the prospect of more quantitative easing by the Fed and by other central banks that they're willing to take stocks higher in an uninterrupted fashion?
Maybe.
But if history teaches us anything, it's that wars of any sort are cause for concern…..and we are in the middle of a global currency "devalue-to-deter-deflation" conflagration!
Ponderables:
Have market participants read the plethora of pieces on the debate as to whether QE will work or not?
Or whether the more effective stimulus would be job-creating fiscal spending?
Have they thought about Friday's WSJ article that highlighted some notions within the Fed (and elsewhere) that suggest that the best way for the Fed to fight deflation is to over- inflate the economy for some time….drive inflation higher , thereby lowering real interest rates, and thereby discouraging saving and promoting spending?
How about the pressure that Congress and Geithner are putting on China…will China show up for our USTsy auctions?
These are just some of the all-important questions that investors need to be asking…..and answering!
In addition to that, the markets would be right to focus on the earnings parade that was started on Thursday evening by Alcoa ( AA ) with its earnings beat and optimistic outlook. That's good news. And Friday's ECRI Leading Index is good news. But both should be taken in the context of this week's disappointing ADP private sector job report (down 39k) and Friday's troubling NFP (down 95k).
Furthermore, this weekend's G20/IMF meetings could cause considerable market movements depending on whether "political will" manifests itself in the form of a multi-lateral program for dealing with competitive devaluations or in the form of a free-for-all where open warfare is the effective modus operandi for now. This would not be a weekend to defuse from the market madness of the past week, but rather to stay glued to word coming out of DC.
As for the coming week (Week of Oct 11), the calendar of economic data is chock full of inflation and retail sales indicators, as well as sentiment indicators, most of it back loaded at the end of the week. More in focus is likely to be the steady stream of earnings that will be coming out through the week.
On the US economic front , Briefing.com offers the following:
Week of October 11 - October 15
And on the earnings front , it's worth a visit to Briefing.com's earnings calendar to see the lineup and expectations.
Portfolio Thoughts
(BEAR IN MIND: this is NOT in any way meant to beinvestment advice It is merely some food for thought. Each investor is responsible for his/her own investment decisions and should not take what is in this article as advice as to what is appropriate for their unique situation. The comments in this section reflect positions in accounts that we manage for our clients. Our client accounts are tailor made for each investor based his/her unique financial profile and risk tolerance. Please read the disclaimer at the end of this article and remember that opinions expressed here can change without notice):
Beware of the market overall . The market's love-fest this week with otherwise uninspiring data is troubling. Too much seems to be made of the likely effectiveness of QE2 should it happen. And rallying the US stock market as a result of higher commodity prices that are driven by a weaker USD, seems to us to have the 'causal effect' going the wrong way. I'd feel much better if strong US growth led to strong equities which in turn drove commodities higher…but that doesn't seem to be the situation. That said, frequent readers will know that I've been adding to my equity exposure on market dips, focusing my buying on global companies who have meaningful amounts of their business in Emerging Markets and in developed countries around the world, such as Caterpillar ( CAT ) and Deere & Co. (DE.) I also own Australia, Asia ex-Japan, Brazil, Germany, China and the BRICs ETFs. In addition I have some direct exposure such as Telefonica ( TEF ), Vodafone ( VOD ), Teva ( TEVA ) and Petroleo Brasileiro ( PBR ). My cash position, which is still rather large, is being patiently placed on the sidelines with the hope of taking advantage of any market pullbacks that we expect to face, especially given how choppy rather than trendy the markets have been.
Beware of banks . The "mortgage foreclosure fiasco" could snowball into something awful for banks. Pelosi's call for the Justice Department's investigation into big names such as Bank of America ( BAC ) and JP Morgan ( JPM ) could keep them and others under pressure. I am long (very) Citigroup ( C ) despite these concerns, though, as I anticipate that government ownership is coming to an end, and many signs point to the 'bad bank' component delivering on their mission of ridding C of its toxic assets.
On my "wish I owned" and "wish I owned more of" lists, I have names such as FedEx ( FDX ), Cummins ( CMI ), 3M ( MMM ) and Posco ( PKX ). I'm watching each closely and determining appropriate entry levels. The market waters have gotten choppy...very choppy. Navigating them successfully is going to require a broader, more global view.
Disclosure: Long: C, MMM, CAT, DE, EWZ, EWG, TEF, VOD, TEVA, PBR, EWA, FXI, BRXX, GMF. Could trade any of these and others mentioned in the article soon
Disclaimer : Soos Global Capital Advisors, LLC ("Soos Global") is a New York state registered investment adviser located in Harrison, New York. Soos Global may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. The publication of Soos Global's opinions on the Internet should not be construed by any consumer and/or prospective client as Soos Global's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalizedinvestment advicefor compensation, over the Internet. Any subsequent, direct communication by Soos Global with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Soos Global, please contact the state securities regulators for those states in which Soos Global maintains a registration filing. A copy of Soos Global's current written disclosure statement discussing Soos Global's business operations, services, and fees is available from Soos Global upon written request. Soos Global does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Soos Global's opinions or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Soos Global) made reference to directly or indirectly by Soos Global in its opinion, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Historical performance results for investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Soos Global), will be profitable or equal any historical performance level(s).
See also China's Counter-Deflation Bet Pays Off Big on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All week long I've been trumpeting the horn of "political will", arguing that the markets face a heightened level of risk overall largely due to the question surrounding whether or not politicians (and in this, I broadly include all financial officials with policy implication jobs) would do as they say…or not. Then, with the positive news from the ECRI Weekly Leading Index coming out, the markets headed back up with the Dow piercing the 11,000 mark where it flirted most of the day (closing a tad above 11,006). I am long (very) Citigroup ( C ) despite these concerns, though, as I anticipate that government ownership is coming to an end, and many signs point to the 'bad bank' component delivering on their mission of ridding C of its toxic assets.
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Then, with the positive news from the ECRI Weekly Leading Index coming out, the markets headed back up with the Dow piercing the 11,000 mark where it flirted most of the day (closing a tad above 11,006). Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Soos Global) made reference to directly or indirectly by Soos Global in its opinion, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Soos Global), will be profitable or equal any historical performance level(s).
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The publication of Soos Global's opinions on the Internet should not be construed by any consumer and/or prospective client as Soos Global's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalizedinvestment advicefor compensation, over the Internet. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Soos Global) made reference to directly or indirectly by Soos Global in its opinion, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Soos Global), will be profitable or equal any historical performance level(s).
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As for the coming week (Week of Oct 11), the calendar of economic data is chock full of inflation and retail sales indicators, as well as sentiment indicators, most of it back loaded at the end of the week. Could trade any of these and others mentioned in the article soon Disclaimer : Soos Global Capital Advisors, LLC ("Soos Global") is a New York state registered investment adviser located in Harrison, New York. It combines a review of this week's activity with a preview of next week's, and is supplemented with a thought-provoking sharing of actual positions along with key ideas that are driving our investment decisions.
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90a729de-b2ec-4c00-b649-48b93a76d671
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723237.0
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2010-10-08 00:00:00 UTC
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Market Wrap-Up for Oct.8 (FO, JCP, CAT, DE, GE, INTC, BUCY, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-oct8-fo-jcp-cat-de-ge-intc-bucy-more-2010-10-08
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nan
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Don't look now, but we are back over Dow 11K, despite the continuing deterioration in the jobs market. The lack of big volume gains as we continue to push gains higher does make me a bit worried, not to mention nearly 90% of stocks now trading over their 50-day moving average. Keep this in mind as one considers getting overly aggressive here.
Shares of Fortune Brands( FO ) and J.C. Penney( JCP ) ran up on news two different private equity firms have established sizable stakes in both companies. We may continue to see this play out as some big-money players place bets on asset prices reflating, courtesy of the Fed's printing press obsession. The market was able to push aside a weaker-than-expected jobs report out earlier today, with commodity stocks once again racing higher.
I am watching the commodity/equipment space seeing lots of fast-money investor interest. The names to watch there include Deere & Co.( DE ) , Caterpillar( CAT ) , Bucyrus International( BUCY ) , and Joy Global( JOYG ) . Outside of Caterpillar, which does have a 2% dividend yield, none of the others offers much as far as an attractive dividend payout. If you are looking for growth, these are certainly plays to watch. We have been looking for a decent pullback to get on board, but it certainly does not look to be happening anytime soon. If you decide to venture into this space, be ready to be nimble, as these names are quite volatile and are attracting a very skittish momentum money crowd.
Looking ahead to next week, we will start to see some bigger names reporting earnings results, including General Electric( GE ) , Intel Corp( INTC ) , and CSX Corp( CSX ) , just to name a few.
Be sure to catch up with our latest watchlist updates this weekend, as well as the latest "Learn to Be Rich" articles as I'd like everyone to gain the money knowledge they need to navigate through other parts of their financial life outside of investing. And of course, check our our currently "Recommended" names on our industry-leading Best Dividend Stocks list.
Have a great weekend everybody, and thanks for reading!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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 names to watch there include Deere & Co.( DE ) , Caterpillar( CAT ) , Bucyrus International( BUCY ) , and Joy Global( JOYG ) . Don't look now, but we are back over Dow 11K, despite the continuing deterioration in the jobs market. Keep this in mind as one considers getting overly aggressive here.
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Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Don't look now, but we are back over Dow 11K, despite the continuing deterioration in the jobs market. Keep this in mind as one considers getting overly aggressive here.
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Be sure to catch up with our latest watchlist updates this weekend, as well as the latest "Learn to Be Rich" articles as I'd like everyone to gain the money knowledge they need to navigate through other parts of their financial life outside of investing. Don't look now, but we are back over Dow 11K, despite the continuing deterioration in the jobs market. Keep this in mind as one considers getting overly aggressive here.
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Keep this in mind as one considers getting overly aggressive here. The market was able to push aside a weaker-than-expected jobs report out earlier today, with commodity stocks once again racing higher. Don't look now, but we are back over Dow 11K, despite the continuing deterioration in the jobs market.
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ad5b0437-8902-4609-90fc-52391a3821d0
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723238.0
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2010-10-02 00:00:00 UTC
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Dividend Stock Leaders for the Week of Sept.27-Oct.1 (WAG, CNX, ECA, MON, DE, PRU, more)
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DE
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https://www.nasdaq.com/articles/dividend-stock-leaders-week-sept27-oct1-wag-cnx-eca-mon-de-pru-more-2010-10-02
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nan
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Here are some of the biggest dividend stock winners and losers from the week that just ended.
CompanyFri. CloseWeekly
% ChangeDividend YieldWalgreen Company ( WAG ).68+10.94%2.08%Canadian Natural Resources ( CNQ ).15+9.25%0.80%Talisman Energy Inc. ( TLM ).49+6.65%1.43%Encana Corporation ( ECA ).26+6.51%2.64%Consol Energy ( CNX ).31+5.25%1.04%Prudential Financial Inc ( PRU ).07-5.25%1.32%Deere & Company ( DE ).57-5.60%1.75%CF Industries Holdings Inc. ( CF ).65-5.69%0.42%M&T Bank Corporation ( MTB ).91-9.61%3.42%Monsanto Company ( MON ).26-12.86%2.32%
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Here are some of the biggest dividend stock winners and losers from the week that just ended. CloseWeekly % ChangeDividend YieldWalgreen Company ( WAG ).68+10.94%2.08%Canadian Natural Resources ( CNQ ).15+9.25%0.80%Talisman Energy Inc. ( TLM ).49+6.65%1.43%Encana Corporation ( ECA ).26+6.51%2.64%Consol Energy ( CNX ).31+5.25%1.04%Prudential Financial Inc ( PRU ).07-5.25%1.32%Deere & Company ( DE ).57-5.60%1.75%CF Industries Holdings Inc. ( CF ).65-5.69%0.42%M&T Bank Corporation ( MTB ).91-9.61%3.42%Monsanto Company ( MON ).26-12.86%2.32% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Created by Dividend.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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Here are some of the biggest dividend stock winners and losers from the week that just ended. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. CloseWeekly % ChangeDividend YieldWalgreen Company ( WAG ).68+10.94%2.08%Canadian Natural Resources ( CNQ ).15+9.25%0.80%Talisman Energy Inc. ( TLM ).49+6.65%1.43%Encana Corporation ( ECA ).26+6.51%2.64%Consol Energy ( CNX ).31+5.25%1.04%Prudential Financial Inc ( PRU ).07-5.25%1.32%Deere & Company ( DE ).57-5.60%1.75%CF Industries Holdings Inc. ( CF ).65-5.69%0.42%M&T Bank Corporation ( MTB ).91-9.61%3.42%Monsanto Company ( MON ).26-12.86%2.32% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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CloseWeekly % ChangeDividend YieldWalgreen Company ( WAG ).68+10.94%2.08%Canadian Natural Resources ( CNQ ).15+9.25%0.80%Talisman Energy Inc. ( TLM ).49+6.65%1.43%Encana Corporation ( ECA ).26+6.51%2.64%Consol Energy ( CNX ).31+5.25%1.04%Prudential Financial Inc ( PRU ).07-5.25%1.32%Deere & Company ( DE ).57-5.60%1.75%CF Industries Holdings Inc. ( CF ).65-5.69%0.42%M&T Bank Corporation ( MTB ).91-9.61%3.42%Monsanto Company ( MON ).26-12.86%2.32% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Here are some of the biggest dividend stock winners and losers from the week that just ended.
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Here are some of the biggest dividend stock winners and losers from the week that just ended. CloseWeekly % ChangeDividend YieldWalgreen Company ( WAG ).68+10.94%2.08%Canadian Natural Resources ( CNQ ).15+9.25%0.80%Talisman Energy Inc. ( TLM ).49+6.65%1.43%Encana Corporation ( ECA ).26+6.51%2.64%Consol Energy ( CNX ).31+5.25%1.04%Prudential Financial Inc ( PRU ).07-5.25%1.32%Deere & Company ( DE ).57-5.60%1.75%CF Industries Holdings Inc. ( CF ).65-5.69%0.42%M&T Bank Corporation ( MTB ).91-9.61%3.42%Monsanto Company ( MON ).26-12.86%2.32% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Created by Dividend.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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fda5a768-ad70-403a-8065-8e71fea0dcca
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723239.0
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2010-10-01 00:00:00 UTC
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Deere & Co. Downgraded to “Neutral” at JPMorgan (DE)
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DE
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https://www.nasdaq.com/articles/deere-co-downgraded-neutral-jpmorgan-de-2010-10-01
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nan
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Farming and construction equipment maker Deere & Company ( DE ) on Friday caught a downgrade from analysts at JPMorgan.
The firm lowered its rating on DE from "Overweight" to "Neutral," but raised its price target from $73 to $75. That new target represents an expected 7% upside to the stock's Thursday closing price of $69.78.
JPMorgan noted it advises traders to take profits on Deere ahead of its likely conservative 2011 full-year forecast, which could send the shares lower. The analyst also noted it expects higher research & development and pension costs weighing on results.
Deere & Co. shares fell 97 cents, or -1.4%, in premarket trading Friday.
The Bottom Line
The company has a dividend yield of 1.72%, based on last night's closing stock price of $69.78. The stock has technical support in the $63 price area. If the shares can firm up, we see overhead resistance around the $73-$74 price levels. We would remain on the sidelines for now.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farming and construction equipment maker Deere & Company ( DE ) on Friday caught a downgrade from analysts at JPMorgan. JPMorgan noted it advises traders to take profits on Deere ahead of its likely conservative 2011 full-year forecast, which could send the shares lower. The analyst also noted it expects higher research & development and pension costs weighing on results.
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Farming and construction equipment maker Deere & Company ( DE ) on Friday caught a downgrade from analysts at JPMorgan. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The firm lowered its rating on DE from "Overweight" to "Neutral," but raised its price target from $73 to $75.
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Farming and construction equipment maker Deere & Company ( DE ) on Friday caught a downgrade from analysts at JPMorgan. The firm lowered its rating on DE from "Overweight" to "Neutral," but raised its price target from $73 to $75. The Bottom Line The company has a dividend yield of 1.72%, based on last night's closing stock price of $69.78.
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The firm lowered its rating on DE from "Overweight" to "Neutral," but raised its price target from $73 to $75. That new target represents an expected 7% upside to the stock's Thursday closing price of $69.78. Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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5f4e5ed8-f139-43e5-8bae-b295f7c2e7ba
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723240.0
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2010-09-30 00:00:00 UTC
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Market Wrap-Up for Sept.30 (NEM, ABX, MO, RAI, FCX, CF, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-sept30-nem-abx-mo-rai-fcx-cf-more-2010-09-30
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nan
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It appears the momentum crowd may be satisfied with September's gains as the market gains this morning reversed lower on this last day of the month.
Even gold prices pulled back, with mining stocks like Newmont Mining ( NEM ) and Barrick Gold ( ABX ) giving back some of the recent gains. Also heading lower were names related to other parts of the commodity space, including CF Industries ( CF ) , Mosaic ( MOS ) , Deere ( DE ) , and Freeport McMoran ( FCX ) . There was an analyst downgrade of tobacco companies Altria Group ( MO ) and Reynolds American ( RAI ) this morning. Both of those stocks continue to be big winners on our Best Dividend Stocks list and their 6%-plus dividend yields are still attractive, but a pull-back would certainly be welcome as far getting better entry levels. Volume did creep up by the close, with the NYSE trading 4.28 Billion shares and the Nasdaq trading 2.34 Billion shares./.
As for our recommended list, we are always monitoring our data for any potential changes. Going into today's action, just 3 of our 47 recommended names are trading lower than when we first recommended the names, with the worst performer being down a mere 2% (and that's not including dividend payouts).
I hope everyone is enjoying the new video segments our editor Tom Reese and I are producing on the site. Feel free to reach out to us with more ideas on what you would like to see discussed. I am also proud to announce that I have signed a book deal with FT Press/Pearson, in which I will be writing about Dividend stock investing, personal finance tips and more. I will be providing everyone with more details as things begin to materialize.
As always, be sure to check out our industry-leading Best Dividend Stocks list for our current recommendations. See you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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There was an analyst downgrade of tobacco companies Altria Group ( MO ) and Reynolds American ( RAI ) this morning. I am also proud to announce that I have signed a book deal with FT Press/Pearson, in which I will be writing about Dividend stock investing, personal finance tips and more. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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Going into today's action, just 3 of our 47 recommended names are trading lower than when we first recommended the names, with the worst performer being down a mere 2% (and that's not including dividend payouts). Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Also heading lower were names related to other parts of the commodity space, including CF Industries ( CF ) , Mosaic ( MOS ) , Deere ( DE ) , and Freeport McMoran ( FCX ) .
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Both of those stocks continue to be big winners on our Best Dividend Stocks list and their 6%-plus dividend yields are still attractive, but a pull-back would certainly be welcome as far getting better entry levels. Going into today's action, just 3 of our 47 recommended names are trading lower than when we first recommended the names, with the worst performer being down a mere 2% (and that's not including dividend payouts). Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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Going into today's action, just 3 of our 47 recommended names are trading lower than when we first recommended the names, with the worst performer being down a mere 2% (and that's not including dividend payouts). As always, be sure to check out our industry-leading Best Dividend Stocks list for our current recommendations. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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a5c9953d-e56c-463b-9d84-1e0c41638a7c
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723241.0
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2010-09-22 00:00:00 UTC
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Options Update: Simulating a Long Stock Position on Deere & Company
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DE
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https://www.nasdaq.com/articles/options-update-simulating-long-stock-position-deere-company-2010-09-22
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nan
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Farming equipment issue Deere & Company ( DE ) has been a favorite in the options pits today, with one speculator using calls and puts to simulate a long stock position on the equity.
Earlier today, the investor bought 2,000 December 80 calls for the ask price of $1.55 per contract, and simultaneously sold an equal amount of December 62.50 puts for the bid price of $1.43 per contract. In other words, the trader constructed a split-strike version of the synthetic long stock strategy for an initial debit of $0.12 per pair of options.
By buying out-of-the-money calls and selling out-of-the-money puts, the strategist is hoping to simulate the payoff of a long stock position - but at a fraction of the cost. In this particular situation, the trader - like a stockholder - is betting the shares of DE will rally in the intermediate term, as his profit will increase with each step the stock takes north of the $80.12 level (call strike plus net debit).
However, the options player stands to forfeit a lot less cash in the wake of a slight pullback on the charts. More specifically, even if the shares of DE tumble to the $63 level before December-dated options expire, the speculator's risk is limited to the $0.12 paid to establish the play. Beyond the $62.50 level, though, the investor's losses will accrue in parity with DE's decline, as the sold 62.50-strike puts would move into the money.
To emphasize the leverage provided by options, let's compare the risk/reward profile of the aforementioned strategy to that of buying the shares of DE outright. Since each option represents 100 shares of the equity, we know the options trader spent $12 ($0.12 x 100 shares) to establish the synthetic position. On the other hand, a straightlaced stock trader would've spent roughly $7,300 to own 100 shares of DE, assuming he bought the stock just before Tuesday's closing bell.
Now, let's fast-forward a couple of months...
First, let's assume the shares of DE plummet to the $60 level. In this instance, the long 80-strike call would expire worthless, while it would cost the options trader $250 (intrinsic value of $2.50 x 100 shares) to buy back the 62.50-strike put. Adding the initial net debit of $12, the options player's loss would amount to $262 per pair of contracts. On the other hand, the stock trader's 100 shares of DE would be worth just $6,000 - a loss of $1,300 from his initial investment.
Moving on, let's say the shares of DE retreat to the $70 level before December-dated options expire. In this scenario, both options will expire worthless - meaning the strategist will be out the $12 paid to establish the trade. Meanwhile, the stockholder's stake would be worth just $7,000 - a $300 deficit.
Now, what happens if the shares of DE rally to the $85 level by expiration? In this best-case scenario, the sold put would expire worthless, while the bought 80-strike call would have an intrinsic value of $5, or $500 (x 100 shares). Subtracting the initial debit of $12, the options trader would net a profit of $488 - a return of more than 4,000%. In comparison, the stock owner's shares would be worth a combined $8,000 - a profit of $700, or less than 10% of his initial investment.
In conclusion, by employing the right options strategy, bullish bettors can simulate the payoff of stock ownership without having to fork over a ton of cash. Plus, since the aforementioned strategist sold puts and bought calls at different strikes, his risk is limited should the equity remain between the strikes through expiration. In fact, some synthetic long stock positions are even initiated for a net credit - meaning the investor can net a small profit even amid stagnant price action.
Click here for the new summer issue of SENTIMENT magazine
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Farming equipment issue Deere & Company ( DE ) has been a favorite in the options pits today, with one speculator using calls and puts to simulate a long stock position on the equity. In this particular situation, the trader - like a stockholder - is betting the shares of DE will rally in the intermediate term, as his profit will increase with each step the stock takes north of the $80.12 level (call strike plus net debit). Earlier today, the investor bought 2,000 December 80 calls for the ask price of $1.55 per contract, and simultaneously sold an equal amount of December 62.50 puts for the bid price of $1.43 per contract.
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Earlier today, the investor bought 2,000 December 80 calls for the ask price of $1.55 per contract, and simultaneously sold an equal amount of December 62.50 puts for the bid price of $1.43 per contract. Farming equipment issue Deere & Company ( DE ) has been a favorite in the options pits today, with one speculator using calls and puts to simulate a long stock position on the equity. In other words, the trader constructed a split-strike version of the synthetic long stock strategy for an initial debit of $0.12 per pair of options.
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In this particular situation, the trader - like a stockholder - is betting the shares of DE will rally in the intermediate term, as his profit will increase with each step the stock takes north of the $80.12 level (call strike plus net debit). Since each option represents 100 shares of the equity, we know the options trader spent $12 ($0.12 x 100 shares) to establish the synthetic position. In this instance, the long 80-strike call would expire worthless, while it would cost the options trader $250 (intrinsic value of $2.50 x 100 shares) to buy back the 62.50-strike put.
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In this instance, the long 80-strike call would expire worthless, while it would cost the options trader $250 (intrinsic value of $2.50 x 100 shares) to buy back the 62.50-strike put. Adding the initial net debit of $12, the options player's loss would amount to $262 per pair of contracts. On the other hand, the stock trader's 100 shares of DE would be worth just $6,000 - a loss of $1,300 from his initial investment.
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a5097624-ea1e-4632-8ad2-833ce62654e8
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723242.0
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2010-09-18 00:00:00 UTC
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Dividend Stock Leaders for the Week of Sept.13-17 (BBY, BLK, TXN, MA, ORCL, FDX, CLF, more)
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DE
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https://www.nasdaq.com/articles/dividend-stock-leaders-week-sept13-17-bby-blk-txn-ma-orcl-fdx-clf-more-2010-09-18
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nan
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nan
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Here are some of the biggest dividend stock winners and losers from the week that just ended.
CompanyFri. CloseWeekly
% ChangeExpedia Inc. ( EXPE ).76+11.21%Oracle Corporation ( ORCL ).48+9.70%Best Buy Co. Inc. ( BBY ).15+9.65%BlackRock Inc. ( BLK )5.05+9.19%Texas Instruments ( TXN ).72+8.52%Mastercard Incorporated ( MA )3.67+7.84%Analog Devices Inc. ( ADI ).91+7.09%Deere & Company ( DE ).45+6.84%FedEx ( FDX ).28-2.23%Entergy Corporation ( ETR ).68-4.26%Cliffs Natural Resources ( CLF ).96-6.97%Time Warner Cable ( TWC ).96-8.59%
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Here are some of the biggest dividend stock winners and losers from the week that just ended. CloseWeekly % ChangeExpedia Inc. ( EXPE ).76+11.21%Oracle Corporation ( ORCL ).48+9.70%Best Buy Co. Inc. ( BBY ).15+9.65%BlackRock Inc. ( BLK )5.05+9.19%Texas Instruments ( TXN ).72+8.52%Mastercard Incorporated ( MA )3.67+7.84%Analog Devices Inc. ( ADI ).91+7.09%Deere & Company ( DE ).45+6.84%FedEx ( FDX ).28-2.23%Entergy Corporation ( ETR ).68-4.26%Cliffs Natural Resources ( CLF ).96-6.97%Time Warner Cable ( TWC ).96-8.59% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Created by Dividend.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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Here are some of the biggest dividend stock winners and losers from the week that just ended. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. CloseWeekly % ChangeExpedia Inc. ( EXPE ).76+11.21%Oracle Corporation ( ORCL ).48+9.70%Best Buy Co. Inc. ( BBY ).15+9.65%BlackRock Inc. ( BLK )5.05+9.19%Texas Instruments ( TXN ).72+8.52%Mastercard Incorporated ( MA )3.67+7.84%Analog Devices Inc. ( ADI ).91+7.09%Deere & Company ( DE ).45+6.84%FedEx ( FDX ).28-2.23%Entergy Corporation ( ETR ).68-4.26%Cliffs Natural Resources ( CLF ).96-6.97%Time Warner Cable ( TWC ).96-8.59% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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CloseWeekly % ChangeExpedia Inc. ( EXPE ).76+11.21%Oracle Corporation ( ORCL ).48+9.70%Best Buy Co. Inc. ( BBY ).15+9.65%BlackRock Inc. ( BLK )5.05+9.19%Texas Instruments ( TXN ).72+8.52%Mastercard Incorporated ( MA )3.67+7.84%Analog Devices Inc. ( ADI ).91+7.09%Deere & Company ( DE ).45+6.84%FedEx ( FDX ).28-2.23%Entergy Corporation ( ETR ).68-4.26%Cliffs Natural Resources ( CLF ).96-6.97%Time Warner Cable ( TWC ).96-8.59% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Here are some of the biggest dividend stock winners and losers from the week that just ended.
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Here are some of the biggest dividend stock winners and losers from the week that just ended. CloseWeekly % ChangeExpedia Inc. ( EXPE ).76+11.21%Oracle Corporation ( ORCL ).48+9.70%Best Buy Co. Inc. ( BBY ).15+9.65%BlackRock Inc. ( BLK )5.05+9.19%Texas Instruments ( TXN ).72+8.52%Mastercard Incorporated ( MA )3.67+7.84%Analog Devices Inc. ( ADI ).91+7.09%Deere & Company ( DE ).45+6.84%FedEx ( FDX ).28-2.23%Entergy Corporation ( ETR ).68-4.26%Cliffs Natural Resources ( CLF ).96-6.97%Time Warner Cable ( TWC ).96-8.59% Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Created by Dividend.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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f5ac898f-ee60-41db-b39e-d2e917ca5a4d
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723243.0
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2010-08-31 00:00:00 UTC
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Exelon to Acquire Deere’s Wind Energy Unit for $900 Million (EXC, DE)
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DE
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https://www.nasdaq.com/articles/exelon-acquire-deeres-wind-energy-unit-900-million-exc-de-2010-08-31
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nan
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nan
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Electricity generator Exelon Corporation ( EXC ) on Tuesday said it would buy Deere & Company's ( DE ) Renewables unit, which operates several wind farms, for $900 billion.
Exelon noted it would add 735 megawatts of wind energy and 230 megawatts under development via the acquisition. It also said it would use debt to pay for the deal.
Meanwhile, Deere will take an aftertax charge of $25 million for the fourth quarter as past of the sale. "As Deere sharpens its own strategic focus, we have concluded that the company's resources are best invested in growing our core equipment businesses around the world. We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry," said Deere CEO Samuel Allen in a statement.
Both Exelon and Deere shares were mostly flat in premarket trading Tuesday.
The Bottom Line
Shares of EXC have a 5.18% dividend yield, based on last night's closing stock price of $40.52.
Shares of DE have a 1.91% dividend yield, based on last night's closing stock price of $62.98.
Neither Exelon Corporation ( EXC ) nor Deere & Company ( DE ) are recommended at this time, holding Dividend.com DARS™ Ratings of 3.2 and 3.4 out of 5 stars, respectively.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Electricity generator Exelon Corporation ( EXC ) on Tuesday said it would buy Deere & Company's ( DE ) Renewables unit, which operates several wind farms, for $900 billion. "As Deere sharpens its own strategic focus, we have concluded that the company's resources are best invested in growing our core equipment businesses around the world. We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry," said Deere CEO Samuel Allen in a statement.
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The Bottom Line Shares of EXC have a 5.18% dividend yield, based on last night's closing stock price of $40.52. Shares of DE have a 1.91% dividend yield, based on last night's closing stock price of $62.98. Neither Exelon Corporation ( EXC ) nor Deere & Company ( DE ) are recommended at this time, holding Dividend.com DARS™ Ratings of 3.2 and 3.4 out of 5 stars, respectively.
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Electricity generator Exelon Corporation ( EXC ) on Tuesday said it would buy Deere & Company's ( DE ) Renewables unit, which operates several wind farms, for $900 billion. We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry," said Deere CEO Samuel Allen in a statement. Neither Exelon Corporation ( EXC ) nor Deere & Company ( DE ) are recommended at this time, holding Dividend.com DARS™ Ratings of 3.2 and 3.4 out of 5 stars, respectively.
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Electricity generator Exelon Corporation ( EXC ) on Tuesday said it would buy Deere & Company's ( DE ) Renewables unit, which operates several wind farms, for $900 billion. Exelon noted it would add 735 megawatts of wind energy and 230 megawatts under development via the acquisition. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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65d1257e-9011-46e2-ab74-32683ad887b7
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723244.0
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2010-08-31 00:00:00 UTC
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M & A: Good News....or Bad?
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DE
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https://www.nasdaq.com/articles/m-good-newsor-bad-2010-08-31
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nan
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M & A. That's mergers and acquisitions. They're all over the financial pages. Intel is buying Infineon's wireless division for $1.4 billion so the chip manufacturer can diversify beyond computers. HP or Dell will end up with 3PAR, a cloud-computing company, at a cost of $2 billion or more. Carl Icahn, the billionaire financier, is making a hostile tender bid for Lions Gate, the film and television producer. 3M is buying Attenti Holdings, an Israeli maker of remote monitoring technology used to track people, for $230 million. Exelon is picking up a division of Deere, a renewable energy unit, for about $900 million so it can enter the wind-power segment. Sanofi-Aventis is trying to buy Genzyme but the board won't accept the bid of $18.5 billion. The board is open to better numbers. There are many more.
Is all this good for investors? Or is there some bad in there?
Certainly one of the good attributes, especially if you own the companies that are being bought, is that the price of the stock goes up. You can sell your stock for more today than you could a few days ago.
That leads to the next good part: investors (including management of the acquired companies) will have money to re-invest into the stock market or to buy goods or services. New liquidity, provided by the purchase, might loosen the purse strings of some of the holders, creating a little more demand in the economy. The same is true for stocks as investors look to replace a hole in their portfolios.
Another positive: corporations are starting to use the money they've accumulated. As mentioned in last week's column, if money provided by the Fed isn't used, it doesn't help the economy grow. With corporations spending billions, that money will flow into the pockets of investors who will most likely spend it, either on investments or goods and services.
Another one: when companies are willing to buy, it usually means valuations are attractive, that companies being bought are bargains. If they aren't, they are strategically important. But most M & A deals happen because the buyer's management think the acquired company will help earnings. The purchase price is a bargain compared to the stream of earnings that will follow. That suggests to investors that they should also be looking, that the time may be opportune to add to positions or start new ones, especially in sectors that are seeing the most M & A activity.
Wall Street is usually involved in these deals. And the fees are huge, always in the millions of dollars. That helps keep employment high on the Street as well as real estate prices in Manhattan. Is that good or bad? No comment.
One thing that is bad: look for layoffs in the companies that are bought. Usually the acquiring company wants to save money, especially when areas overlap, such as selling, general and administrative. If you work in one of the support divisions, say accounting, you may find yourself looking for another job. The acquiring company will most likely have a full accounting staff, able to incorporate the new duties. While this isn't always true, most M & A deals are followed by some job cuts, and most of those come from the acquired company.
Another negative aspect: competition is removed. While some of the above transactions are being made outside the buyer's markets, most M & A deals are done with a competitor. In this weakened economy, many large firms look to consolidate the industry and eliminate some of their competition (they can't eliminate all of it since that would go against the anit-trust laws). With competition lessened, it gives the suriving entity better pricing power and more marketing muscle. That usually translates into higher prices for consumers.
There are other aspects of M & A but these are ones that stand out for their significance. Investors should see them as good, especially if they own the stock of the acquired company. The economy, between the positive of the turnover of money, the new demand for stocks, goods and services and the negative of fewer jobs and less competition, may feel it as a wash. In general, at least for now, the balance would have to be tipped in the favor of good since all that money is starting to flow.
- Ted Allrich
August 31, 2010
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Carl Icahn, the billionaire financier, is making a hostile tender bid for Lions Gate, the film and television producer. The economy, between the positive of the turnover of money, the new demand for stocks, goods and services and the negative of fewer jobs and less competition, may feel it as a wash. HP or Dell will end up with 3PAR, a cloud-computing company, at a cost of $2 billion or more.
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HP or Dell will end up with 3PAR, a cloud-computing company, at a cost of $2 billion or more. Carl Icahn, the billionaire financier, is making a hostile tender bid for Lions Gate, the film and television producer. Exelon is picking up a division of Deere, a renewable energy unit, for about $900 million so it can enter the wind-power segment.
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The economy, between the positive of the turnover of money, the new demand for stocks, goods and services and the negative of fewer jobs and less competition, may feel it as a wash. HP or Dell will end up with 3PAR, a cloud-computing company, at a cost of $2 billion or more. Carl Icahn, the billionaire financier, is making a hostile tender bid for Lions Gate, the film and television producer.
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While this isn't always true, most M & A deals are followed by some job cuts, and most of those come from the acquired company. HP or Dell will end up with 3PAR, a cloud-computing company, at a cost of $2 billion or more. Carl Icahn, the billionaire financier, is making a hostile tender bid for Lions Gate, the film and television producer.
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8daad2f8-0701-476e-abdc-46bf0bb60fb3
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723245.0
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2010-08-23 00:00:00 UTC
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Market Wrap-Up for Aug.23 (POT, CMI, DE, WMT, HPQ, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-aug23-pot-cmi-de-wmt-hpq-more-2010-08-23
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nan
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Those are the words of Dean Baker, co-director of the Center for Economic and Policy Research. He was cited as the source for a report out today that estimates it will take 20 years to recoup the $6 trillion of housing wealth that has been lost since 2005.
During the 1970s real home prices increased 1.1 percent a year after inflation, which more or less proves the old adage of considering real estate more as shelter for your family, instead of it being a nest egg for your retirement. Multi-family homes are a different story and can be better options from an income standpoint, but that comes with the unenviable job of being a landlord.
This all goes back to our long-help belief that dividend-paying stocks should play a significant role for one's retirement savings. That said, we are cautiously watching the current market situation closely. We will certainly alert subscribers to any changes we make to our recommendations.
As for today's action, we saw Potash Corp ( POT ) climb a bit more on news the company is trying to pull in higher takeover offers. Hewlett Packard ( HPQ ) moved down on news it was entering into a bidding war with Dell for 3Par ( PAR ). Weakness developed after the early opening pop and we began to steadily drift once the last hour came. Some of the names lagging on the day included Cummins ( CMI ) , Deere ( DE ) , and Blackrock ( BLK ) . Bucking today's downtrend was Wal-Mart Stores ( WMT ) , which finished higher.
Be sure to check out our Best Dividend Stocks List for our current recommendations. See you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Hewlett Packard ( HPQ ) moved down on news it was entering into a bidding war with Dell for 3Par ( PAR ). Those are the words of Dean Baker, co-director of the Center for Economic and Policy Research. During the 1970s real home prices increased 1.1 percent a year after inflation, which more or less proves the old adage of considering real estate more as shelter for your family, instead of it being a nest egg for your retirement.
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Be sure to check out our Best Dividend Stocks List for our current recommendations. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Those are the words of Dean Baker, co-director of the Center for Economic and Policy Research.
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During the 1970s real home prices increased 1.1 percent a year after inflation, which more or less proves the old adage of considering real estate more as shelter for your family, instead of it being a nest egg for your retirement. Be sure to check out our Best Dividend Stocks List for our current recommendations. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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Those are the words of Dean Baker, co-director of the Center for Economic and Policy Research. Be sure to check out our Best Dividend Stocks List for our current recommendations. During the 1970s real home prices increased 1.1 percent a year after inflation, which more or less proves the old adage of considering real estate more as shelter for your family, instead of it being a nest egg for your retirement.
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39b60ff3-d3e8-425e-88fa-e269186604d2
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723246.0
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2010-08-18 00:00:00 UTC
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Deere’s Q3 Profit Jumps 47% on Higher Revenue (DE)
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DE
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https://www.nasdaq.com/articles/deeres-q3-profit-jumps-47-higher-revenue-de-2010-08-18
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nan
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nan
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Farm and construction machinery maker Deere & Company ( DE ) on Wednesday said its third quarter profit surged 47% from last year, beating analyst expectations.
The Moline, Illinois-based company reported fiscal third quarter net income of $617 million, or $1.44 per share, compared with $420 million, or 99 cents per share, in the year-ago period. Sales jumped 16% from last year, to $6.84 billion.
On average, Wall Street analysts expected a smaller profit of $1.24 per share, on lower revenue of $6.52 billion.
Looking ahead, the company said it expects industry-wide agricultural equipment sales in the U.S. and Canada to rise 5% to 10% this year, but cautioned that Western Europe sales would fall 15% to 20% amid weakness in the livestock and dairy sectors there.
Deere shares fell 99 cents, or -1.5%, in premarket trading Wednesday.
The Bottom Line
We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. The company has a dividend yield of 1.78%, based on last night's closing stock price of $67.23. The stock has technical support in the $60 price area. If the shares can firm up, we see overhead resistance around the $70-$73 price levels. We would remain on the sidelines for now.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farm and construction machinery maker Deere & Company ( DE ) on Wednesday said its third quarter profit surged 47% from last year, beating analyst expectations. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Looking ahead, the company said it expects industry-wide agricultural equipment sales in the U.S. and Canada to rise 5% to 10% this year, but cautioned that Western Europe sales would fall 15% to 20% amid weakness in the livestock and dairy sectors there.
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Farm and construction machinery maker Deere & Company ( DE ) on Wednesday said its third quarter profit surged 47% from last year, beating analyst expectations. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking ahead, the company said it expects industry-wide agricultural equipment sales in the U.S. and Canada to rise 5% to 10% this year, but cautioned that Western Europe sales would fall 15% to 20% amid weakness in the livestock and dairy sectors there.
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Farm and construction machinery maker Deere & Company ( DE ) on Wednesday said its third quarter profit surged 47% from last year, beating analyst expectations. The Bottom Line We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. Looking ahead, the company said it expects industry-wide agricultural equipment sales in the U.S. and Canada to rise 5% to 10% this year, but cautioned that Western Europe sales would fall 15% to 20% amid weakness in the livestock and dairy sectors there.
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Deere shares fell 99 cents, or -1.5%, in premarket trading Wednesday. Farm and construction machinery maker Deere & Company ( DE ) on Wednesday said its third quarter profit surged 47% from last year, beating analyst expectations. Looking ahead, the company said it expects industry-wide agricultural equipment sales in the U.S. and Canada to rise 5% to 10% this year, but cautioned that Western Europe sales would fall 15% to 20% amid weakness in the livestock and dairy sectors there.
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8dce595e-8bdc-4f12-9697-431fa18bb14d
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723247.0
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2010-08-18 00:00:00 UTC
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Opening View: DJIA Bulls Lose Momentum After 100-Point Jump
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DE
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https://www.nasdaq.com/articles/opening-view-djia-bulls-lose-momentum-after-100-point-jump-2010-08-18
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nan
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nan
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The Dow Jones Industrial Average (DJIA) rallied 103 points on Monday, snapping a five-day losing streak for the blue-chip barometer. Despite the upturn in investor sentiment, the Dow met with staunch resistance near the 10,500 level yesterday. The area is home to the DJIA's 200-day moving average, and could become a considerable technical hurdle for the bulls. Support, meanwhile, continues to play out at the 10,300 level, with Wall Street refusing to allow the Dow to slip below this round-number region. As for the S&P 500 Index (SPX), the broad-market index is staring up at psychological resistance in the 1,100 region, though support could materialize just below 1,090 at the SPX's 50-day moving average. Heading into the open, we could see these short-term support levels tested, as futures on the DJIA and the SPX are trading about 26 points and 2 points below fair value, respectively. Finally, the CBOE Market Volatility Index (VIX) gapped below support/resistance at the 25 level yesterday. The VIX could now be range-bound between this potential technical hurdle and support at its 200-day trendline (near 23.50).
In equity news, Deere Co. ( DE ) reported third-quarter earnings of $617 million, or $1.44 per share, as sales rose 16% to $6.84 billion. Analysts were looking for earnings of $1.20 per share, on sales of $6.52 billion. For the fourth quarter, Deere forecast net income of about $375 million, below Wall Street's current outlook for $388.9 million.
Meanwhile, BHP Billiton's ( BHP ) attempted takeover of Potash Corp. of Saskatchewan ( POT ) has gone hostile, with BHP taking its $130-per-share offer directly to POT shareholders. Potash rejected BHP's offer on Wednesday, calling the plan "grossly inadequate." Potash also adopted a poison-pill antitakeover measure. BHP called the proposal "attractive."
Earnings Preview
On the earnings front, BJ's Wholesale Club Inc. ( BJ ), Chico's FAS Inc. ( CHS ), Target Corp. ( TGT ), Applied Materials Inc. ( AMAT ), Brocade Communications Systems Inc. ( BRCD ), Hot Topic Inc. ( HOTT ), and Limited Brands Inc. ( LTD ) are scheduled to release their quarterly earnings report today. Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
The usual weekly report on U.S. petroleum supplies is due out later today, while the weekly report on initial jobless claims will be released on Thursday, along with the Conference Board's Leading Indicators Index for July, and the Philadelphia Fed Index for August. There are no major economic reports scheduled for Friday.
Market Statistics
Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,092,171 call contracts traded on Tuesday, compared to 691,409 put contracts. The resultant single-session put/call ratio arrived at 0.63, while the 21-day moving average held at 0.61.
**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
Overseas Trading
Overseas trading is struggling this morning, as only four of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.02%. In Asia, regional indexes finished mixed, with Japanese stocks advancing due to strong earnings reports from technology and automobile exporters. Across the pond in Europe, markets are mostly lower, with traders consolidating their positions following strong gains on Monday.
Currencies and Commodities
Crude prices are headed lower in pre-market activity, as investors weigh yesterday's U.S. petroleum supplies data from the American Petroleum Institute and gains in the U.S. dollar in Asian trading. At last check, the front-month contract was down 98 cents at $75.18 per barrel. Despite overnight strength in Asia, the U.S. dollar is weakening in pre-market trading. At last check, the U.S. Dollar Index was seen lower by 0.15% at 82.10. Finally, gold futures are retreating heading into the open, with the most active contract off $2.60 at $1,225.70 an ounce in London.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Senior Equities Analyst Andrea Kramer will be live blogging from the Schaeffer's booth at the San Francisco Money Show later this week. Click here for an advance look at what to expect at this premier investor event.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and 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 Asia, regional indexes finished mixed, with Japanese stocks advancing due to strong earnings reports from technology and automobile exporters. Despite the upturn in investor sentiment, the Dow met with staunch resistance near the 10,500 level yesterday. The area is home to the DJIA's 200-day moving average, and could become a considerable technical hurdle for the bulls.
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In equity news, Deere Co. ( DE ) reported third-quarter earnings of $617 million, or $1.44 per share, as sales rose 16% to $6.84 billion. Market Statistics Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,092,171 call contracts traded on Tuesday, compared to 691,409 put contracts. Currencies and Commodities Crude prices are headed lower in pre-market activity, as investors weigh yesterday's U.S. petroleum supplies data from the American Petroleum Institute and gains in the U.S. dollar in Asian trading.
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As for the S&P 500 Index (SPX), the broad-market index is staring up at psychological resistance in the 1,100 region, though support could materialize just below 1,090 at the SPX's 50-day moving average. Economic Calendar The usual weekly report on U.S. petroleum supplies is due out later today, while the weekly report on initial jobless claims will be released on Thursday, along with the Conference Board's Leading Indicators Index for July, and the Philadelphia Fed Index for August. Market Statistics Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,092,171 call contracts traded on Tuesday, compared to 691,409 put contracts.
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As for the S&P 500 Index (SPX), the broad-market index is staring up at psychological resistance in the 1,100 region, though support could materialize just below 1,090 at the SPX's 50-day moving average. In equity news, Deere Co. ( DE ) reported third-quarter earnings of $617 million, or $1.44 per share, as sales rose 16% to $6.84 billion. At last check, the U.S. Dollar Index was seen lower by 0.15% at 82.10.
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8b3d56a9-d240-4aa7-978a-1168efb4b753
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723248.0
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2010-08-18 00:00:00 UTC
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Market Wrap-Up for Aug.18 (BHP, POT, DE, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-aug18-bhp-pot-de-more-2010-08-18
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nan
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nan
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We introduced a new feature focus on Dividend.com earlier today as we continue to look to ways to enhance our offerings to our loyal readers and subscribers.
In the coming weeks and months, we'll continue expanding our coverage into the retirement spectrum. We're certainly pleased with how our dividend stock recommendations are performing, but I hope to personally deliver my best advice when it comes to trying to find the extra money to put to work, as well as focus on the preparation one needs to make for planning ahead. I hope everyone enjoys the new content!
As we take a look at today's action, I see BHP Billiton ( BHP ) has gone public with their bid for Potash Corp ( POT ) . You can bet investment bankers are scrambling to bring other bidders into the picture. We are not seeing a big follow-through today on the other names in the sector, at this point, but we'll be watching. Deere ( DE ) is traded lower despite a solid quarter out of them. For the second day in a row, the market seemed to drift lower at in the last hour, finishing off the earlier highs of the day. Volume continues to struggle to get above the 4 Billion level on upside days on the NYSE, as we tallied 3.72 Billion shares.
Again, I hope everyone enjoys some of the new work we will be putting out and hope to see more new readers and subscribers join the Dividend.com experience. Be sure to check out today's retirement article, How Much Money Will You Need For Your Retirement?
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We introduced a new feature focus on Dividend.com earlier today as we continue to look to ways to enhance our offerings to our loyal readers and subscribers. We're certainly pleased with how our dividend stock recommendations are performing, but I hope to personally deliver my best advice when it comes to trying to find the extra money to put to work, as well as focus on the preparation one needs to make for planning ahead. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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We're certainly pleased with how our dividend stock recommendations are performing, but I hope to personally deliver my best advice when it comes to trying to find the extra money to put to work, as well as focus on the preparation one needs to make for planning ahead. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. We introduced a new feature focus on Dividend.com earlier today as we continue to look to ways to enhance our offerings to our loyal readers and subscribers.
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We introduced a new feature focus on Dividend.com earlier today as we continue to look to ways to enhance our offerings to our loyal readers and subscribers. We're certainly pleased with how our dividend stock recommendations are performing, but I hope to personally deliver my best advice when it comes to trying to find the extra money to put to work, as well as focus on the preparation one needs to make for planning ahead. Again, I hope everyone enjoys some of the new work we will be putting out and hope to see more new readers and subscribers join the Dividend.com experience.
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We're certainly pleased with how our dividend stock recommendations are performing, but I hope to personally deliver my best advice when it comes to trying to find the extra money to put to work, as well as focus on the preparation one needs to make for planning ahead. Again, I hope everyone enjoys some of the new work we will be putting out and hope to see more new readers and subscribers join the Dividend.com experience. We introduced a new feature focus on Dividend.com earlier today as we continue to look to ways to enhance our offerings to our loyal readers and subscribers.
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25c434d8-127c-45db-b6ac-d2f3cd823832
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723249.0
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2010-08-16 00:00:00 UTC
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Deere’s Target, Estimates Boosted at Citigroup (DE)
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DE
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https://www.nasdaq.com/articles/deeres-target-estimates-boosted-citigroup-de-2010-08-16
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nan
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nan
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Farm and construction machinery maker Deere & Company ( DE ) saw its price target and earnings estimates raised on Monday by analysts at Citigroup.
The firm said it now expects DE shares to reach $75, suggesting a potential 16% upside to the stock's Friday closing price of $64.85. Citigroup also boosted its earnings estimates for the company, citing favorable commodity prices, while maintaining its "Buy" rating.
Deere & Co. shares were mostly flat in premarket trading Monday.
The Bottom Line
We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. The company has a dividend yield of 1.85%, based on Friday's closing stock price of $64.85. The stock has technical support in the $60 price area. If the shares can firm up, we see overhead resistance around the $70 price level. We would remain on the sidelines for now.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Farm and construction machinery maker Deere & Company ( DE ) saw its price target and earnings estimates raised on Monday by analysts at Citigroup. The firm said it now expects DE shares to reach $75, suggesting a potential 16% upside to the stock's Friday closing price of $64.85. Deere & Co. shares were mostly flat in premarket trading Monday.
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The firm said it now expects DE shares to reach $75, suggesting a potential 16% upside to the stock's Friday closing price of $64.85. The company has a dividend yield of 1.85%, based on Friday's closing stock price of $64.85. Farm and construction machinery maker Deere & Company ( DE ) saw its price target and earnings estimates raised on Monday by analysts at Citigroup.
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Farm and construction machinery maker Deere & Company ( DE ) saw its price target and earnings estimates raised on Monday by analysts at Citigroup. The firm said it now expects DE shares to reach $75, suggesting a potential 16% upside to the stock's Friday closing price of $64.85. The Bottom Line We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67.
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Farm and construction machinery maker Deere & Company ( DE ) saw its price target and earnings estimates raised on Monday by analysts at Citigroup. The Bottom Line We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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116e0c75-1b0d-45e1-8004-64552e6254c9
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723250.0
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2010-08-16 00:00:00 UTC
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Market Wrap-Up for Aug.16 (STRA, DE, EOG, SYY, JCI, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-aug16-stra-de-eog-syy-jci-more-2010-08-16
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nan
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nan
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Thanks to the Federal Reserve deciding to keep interest rates at near-record lows, the rewards for people that love to save are almost non-existent at banks today.
Talk to any of your older friends and relatives who like to research CD rates are and you'll see the look of disgust on their faces. At Dividend.com, we are continuing to carry the torch for what people need to be doing today with their hard-earned capital. We are not wildly bullish about the stock market, but at the same time, we see areas of potential opportunity for investors to continue the discipline of putting their money to work.
When we see the carnage of momentum trades heading south, as in this morning's case of Capella Education ( CPLA ) (which opened up today down almost 20%), we feel fortunate to not be pushing investors to taking extreme risks in the market. Trading is a tough game, and for most, a dangerous game. In the case of for-profit education play, CPLA, and others such as ITT Educational ( ESI ) and Strayer Education ( STRA ) , the last 2 weeks have been bloody. Capella was trading at $93 a share two weeks ago, and just sunk to below $60 earlier today. Data out from the Department of Education is showing that only 20% of students are repaying their federal student loans. This has caused a panic in the education sector that new government regulation could be forthcoming. Again, if you are one to take risks in the market at times, adopt a form of discipline that will limit your losses.
Elsewhere, the market was able to creep up off of earlier lows. Trading was mixed all around, with stocks like Deere ( DE ) and Johnson Controls ( JCI ) finishing higher, while EOG Resources ( EOG ) and Sysco ( SYY ) lagged. Volume continues to drag, with 3.14 Billion shares traded on the NYSE and 1.6 Billion shares traded over on the NASDAQ.
As always, be sure to check out our currently "Recommended" dividend stocks on our Best Dividend Stocks List . See you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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Thanks to the Federal Reserve deciding to keep interest rates at near-record lows, the rewards for people that love to save are almost non-existent at banks today. When we see the carnage of momentum trades heading south, as in this morning's case of Capella Education ( CPLA ) (which opened up today down almost 20%), we feel fortunate to not be pushing investors to taking extreme risks in the market. Talk to any of your older friends and relatives who like to research CD rates are and you'll see the look of disgust on their faces.
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As always, be sure to check out our currently "Recommended" dividend stocks on our Best Dividend Stocks List . Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Thanks to the Federal Reserve deciding to keep interest rates at near-record lows, the rewards for people that love to save are almost non-existent at banks today.
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When we see the carnage of momentum trades heading south, as in this morning's case of Capella Education ( CPLA ) (which opened up today down almost 20%), we feel fortunate to not be pushing investors to taking extreme risks in the market. Volume continues to drag, with 3.14 Billion shares traded on the NYSE and 1.6 Billion shares traded over on the NASDAQ. Thanks to the Federal Reserve deciding to keep interest rates at near-record lows, the rewards for people that love to save are almost non-existent at banks today.
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Thanks to the Federal Reserve deciding to keep interest rates at near-record lows, the rewards for people that love to save are almost non-existent at banks today. When we see the carnage of momentum trades heading south, as in this morning's case of Capella Education ( CPLA ) (which opened up today down almost 20%), we feel fortunate to not be pushing investors to taking extreme risks in the market. Talk to any of your older friends and relatives who like to research CD rates are and you'll see the look of disgust on their faces.
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9ba365a1-9ff4-4996-b321-5fb429e08ebd
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723251.0
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2010-08-09 00:00:00 UTC
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One Stock That Will Benefit from the Wheat Ban
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DE
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https://www.nasdaq.com/articles/one-stock-will-benefit-wheat-ban-2010-08-09
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nan
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nan
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Today we're going to take a look at a stock that will likely benefit from the recent wheat ban in Russia. What's the catalyst for such a dramatic move by the country?
Last Thursday, Russia's Prime Minister, Vladimir Putin, announced that Russia will ban all grain exports for the rest of 2010. The announcement came after wildfires swept across the country and destroyed a large amount of the country's crop. The crop was extremely susceptible to fire since Russia is experiencing a severe drought this summer.
Following this announcement last Thursday wheat prices surged 12 percent in Europe and wheat futures reached a two-year high to trade at $8.41 a bushel.
The question remains as to whether or not wheat prices will continue to rise. Many believe they will. Richard Feltes, of brokerage MF Global, commented on rising wheat prices saying, " Bottom line - no sign of a top as yet ".
Take a look at the chart below which shows the price of wheat over the last 2 years. Clearly, the effect of the fires on the price of wheat has been dramatic.
So where will the world's replacement supply of wheat come from?
The U.S. is the largest exporter and the fourth-largest grower of wheat. The Department of Agriculture estimates the U.S. will produce 2.2 billion bushels of wheat in the 12 months from June 1.
Dennis Gartman, an economist for the Gartman Letter said, " You have a situation unlike anything that I've seen in the 35 years I've been trading in the grain markets…This is going to be one of the great years for American agriculture probably in history ".
***There are a few companies that will be negatively affected by the probable high prices for wheat - and they have already seen their stock prices decline. One reason is that investors remain nervous that some of the largest food companies could struggle to pass higher wheat costs onto consumers. Shares of General Mills Inc. ( GIS ) fell 2.7 percent last week.
So how can you make money off these recent developments?
For starters, wheat producers need to purchase seed and fertilizer to replace the 'lost' crop - so these fertilizer and seed stocks will likely benefit from recent news. That said some crops, such as corn, require more fertilizer than wheat. If growers replace corn with wheat, greater demand for fertilizer may not pan out.
But like I said earlier, the ban is currently in effect until the end of this year - and may extend into 2011. This means there will most likely be a larger planting season for winter wheat and next year's spring wheat.
Companies like Archer Daniels Midland Co. ( ADM ) and Deere & Co. ( DE ), both of which have exposure to the agriculture sector, will likely benefit from the wheat ban.
But these are large-caps, so while interesting potential investments they are beyond the purview of this letter. Let's take a look at a small-cap agriculture company, with a marker cap under $2 billion.
***Terra Nitrogen Company ( TNH ) sells nitrogen fertilizer to crop producers. If US wheat producers crank up production over the next year, the demand for fertilizer products from companies like Terra Nitrogen will most likely increase.
This Iowa based company has a market cap of $1.77 billion and saw its stock price jump 14.3 percent last week. The timing (for lack of a better word) of the fires couldn't have been better.
Terra Nitrogen also reported results from the second quarter of fiscal 2010 last week, and reported that net earnings had increased to $66.7 million, up 9.7 percent from the same quarter of last year. Terra Nitrogen Company also saw its top-line revenue grow 16.9 percent from the second quarter in fiscal 2009.
The company had a gross margin of 42 percent last quarter and offers a $9.44 dividend. That's a healthy 10 percent yield with the stock at current levels.
Take a look at the company's stock performance over the last two years and you'll see that investors who got in around $65 - $70 this summer just got the ride of their lives.
Although the company's stock price has recently skyrocketed, I still like this stock for the rest of 2010. From a technical perspective, both the 50-day and 200-day moving average are turning up, and if the stock breaks through $100 that level could once again become solid support.
The added potential demand from the Russian wheat ban, and the solid quarter both should help to support the stock's recent breakout- at least in the near term. Plus, the company's dividend is huge, so value investors may hold the stock, even if the price dips.
However, this stock has recently surged so be careful if you start to establish a position. Wheat prices are extremely volatile right now, and many investors (and traders for that matter) are trying to cash in. Always use stop losses, and only invest after doing your own research.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies like Archer Daniels Midland Co. ( ADM ) and Deere & Co. ( DE ), both of which have exposure to the agriculture sector, will likely benefit from the wheat ban. The added potential demand from the Russian wheat ban, and the solid quarter both should help to support the stock's recent breakout- at least in the near term. The announcement came after wildfires swept across the country and destroyed a large amount of the country's crop.
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If US wheat producers crank up production over the next year, the demand for fertilizer products from companies like Terra Nitrogen will most likely increase. The announcement came after wildfires swept across the country and destroyed a large amount of the country's crop. Following this announcement last Thursday wheat prices surged 12 percent in Europe and wheat futures reached a two-year high to trade at $8.41 a bushel.
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Following this announcement last Thursday wheat prices surged 12 percent in Europe and wheat futures reached a two-year high to trade at $8.41 a bushel. ***There are a few companies that will be negatively affected by the probable high prices for wheat - and they have already seen their stock prices decline. The announcement came after wildfires swept across the country and destroyed a large amount of the country's crop.
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The announcement came after wildfires swept across the country and destroyed a large amount of the country's crop. Following this announcement last Thursday wheat prices surged 12 percent in Europe and wheat futures reached a two-year high to trade at $8.41 a bushel. The Department of Agriculture estimates the U.S. will produce 2.2 billion bushels of wheat in the 12 months from June 1.
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d9b04e05-068d-4b9f-8295-dec2b6aa0ba8
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723252.0
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2010-06-22 00:00:00 UTC
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A Little-Read Report Reveals BP's Energy Outlook
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DE
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https://www.nasdaq.com/articles/little-read-report-reveals-bps-energy-outlook-2010-06-22
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nan
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nan
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BP's (NYSE: BP ) web site is filled with a wide range of Gulf-spill related updates. The energy giant is overwhelming visitors with frequent updates in a bid to show that it is taking matters quite seriously.
Lost in all those updates, investors may have missed a fairly important annual document that has just been released called the "Statistical review of world energy." BP takes a fresh look at the global oil picture every June, and they've reached some interesting conclusions.
Efficiency Gains are Starting to Take Root
The global economic slowdown led to a hefty drop in energy demand last year, but consumption dropped even faster in economically developed countries in Europe and North America. That's because the West is driving ever-smaller cars, building large solar and wind farms, and adding more intelligence to national electricity grids. The report notes that the "OECD (Organization for Economic Development and Cooperation) consumed less primary energy last year than 10 years ago, although GDP since then has risen by 18%." Just last year, energy demand in Europe and the United States fell by -5%.
Energy produced by wind and solar power grew by +31% and +47%, respectively, in 2009. And we're just getting started. Total spending on clean energy technology is expected to set a record in 2010. As these technologies improve even more during the next few years, the cost/benefit analysis of switching to clean energy will become more apparent.
Notably, much of the current spending is taking place in China, which is also the place where energy consumption is rising the fastest. Chinese central planners have increasingly decreed that energy-intensive export-oriented industries should receive less government support (although those words have not yet been matched by deeds). If China can boost its economy by +5% annually but also increase its dependence on solar, wind and efficiency efforts by a commensurate amount, then its net power demand will stay flat. We're not there yet, but China's energy requirements are starting to grow at a slower rate than its gross domestic product ( GDP ) .
The Gulf's Importance
While the United States has been a massive importer of oil in recent decades, the tide has began to turn. For example, the output from many U.S. coal mines has increasingly been shipped abroad -- especially to China. Coal's long-term role in the global economy remains unclear. Engineers' efforts to search for ways to scrub carbon dioxide out of coal have proven futile, as most approaches are proving quite costly. That said, demand for coal remains strong -- it now accounts for 29.7% of global energy consumption -- and P/E ratios for coal producers remain very low.
Yet it's the Gulf of Mexico which has become the real game changer for energy, at least here in the United States. The estimated amount of untapped natural gas is 50% higher than 10 years ago. Despite the pain associated with the current BP-related debacle, high output in the Gulf has sharply lowered natural gas prices, enabling many energy-intensive firms such as chemical makers and utilities to lower their expenses.
It's not just natural gas output that is rising: "The world's largest increase in oil production by far came from the US, mainly from the Gulf of Mexico," BP reports, adding that "this is not an excuse for anything, but a piece of the reality in which we all live." BP's analysts found that North America held an estimated 69.5 billion barrels of oil in 1999. Even after a decade of heavy oil production, the level of proven reserves has actually risen to 73.3 billion barrels. In Central and South America, proven untapped oil reserves have doubled to 199 billion barrels in the past 10 years, largely due to new discoveries in Venezuela and Brazil.
The United States remains the third-largest oil producer in the world after Saudi Arabia and Russia, accounting for 8.5% of global output in 2009. (OPEC members still account for 77% of the world's untapped oil fields). Sadly, we also accounted for 21.7% of total oil consumption last year. The Obama administration's mandate to sharply raise fuel economy standards should make a dent in that lopsided equation.
The notion that the world is approaching "Peak Oil" is just not supported by the facts. We may still be getting closer to a peak, but the world has far more untapped oil than anyone could have imagined 10 years ago.
Simple Math: Supply Exceeds Demand
Rising oil production and slumping demand yielded a predictable result. "Oil prices declined for the first time since 2001," and fell by the largest amount in Europe and North America on a percentage basis since 1986, notes the report. Oil prices are up from the start of the year and are unlikely to continue that upward move right away. Moreover, even with last year's pullback, oil prices are still three times higher than in 2001. But over time it is increasingly clear that the world has ample energy reserves despite the scary super-spike of 2008.
OPEC states cut output by -7% in 2009, which is fairly remarkable considering the predilection for OPEC members to stealthily exceed their quotas. Whether they maintain that resolve will determine whether oil prices stay in their current range, or plunge.
Major oil companies such as Exxon Mobil (NYSE: XOM ) and BP are no longer the dominant energy players. Their role in the global energy market has been supplanted by the nationalized oil companies in places such as Saudi Arabia, Mexico and Venezuela.
The publicly-traded oil majors have been in low-growth mode for some time and are best seen as vehicles for massive cash flow generation. These companies have increasingly looked to buy back stock or offer juicy dividends rather than seek new development opportunities. The fields they look to develop are mainly meant to replace declining output from existing fields.
Action to Take --> But a world of stable energy prices can yield some real winners. Airlines, for example, can better manage their funding requirements and are less vulnerable to profit-sapping price spikes. Chemical makers such as Huntsman (NYSE: HUN ) , which was profiled here , can sharply boost their profit spreads. Spending on agriculture can also rise as less fuel is needed to run tractors or make fertilizer. With more cash in their pockets, farmers can buy more farm needs from the likes of Deere (NYSE: DE ) and Monsanto (NYSE: MON ) . Most importantly, consumers will have more to spend on many items if they don't have to fill up their tank with $4 gas.
-- David Sterman
Staff Writer
StreetAuthority
Disclosure: David Sterman does not own shares of any security mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If China can boost its economy by +5% annually but also increase its dependence on solar, wind and efficiency efforts by a commensurate amount, then its net power demand will stay flat. BP's (NYSE: BP ) web site is filled with a wide range of Gulf-spill related updates. Efficiency Gains are Starting to Take Root The global economic slowdown led to a hefty drop in energy demand last year, but consumption dropped even faster in economically developed countries in Europe and North America.
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Efficiency Gains are Starting to Take Root The global economic slowdown led to a hefty drop in energy demand last year, but consumption dropped even faster in economically developed countries in Europe and North America. BP's (NYSE: BP ) web site is filled with a wide range of Gulf-spill related updates. The report notes that the "OECD (Organization for Economic Development and Cooperation) consumed less primary energy last year than 10 years ago, although GDP since then has risen by 18%."
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Efficiency Gains are Starting to Take Root The global economic slowdown led to a hefty drop in energy demand last year, but consumption dropped even faster in economically developed countries in Europe and North America. BP's (NYSE: BP ) web site is filled with a wide range of Gulf-spill related updates. The report notes that the "OECD (Organization for Economic Development and Cooperation) consumed less primary energy last year than 10 years ago, although GDP since then has risen by 18%."
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BP's (NYSE: BP ) web site is filled with a wide range of Gulf-spill related updates. Efficiency Gains are Starting to Take Root The global economic slowdown led to a hefty drop in energy demand last year, but consumption dropped even faster in economically developed countries in Europe and North America. The report notes that the "OECD (Organization for Economic Development and Cooperation) consumed less primary energy last year than 10 years ago, although GDP since then has risen by 18%."
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6edfe64f-8816-434d-8f54-0c60f9ce3e55
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723253.0
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2010-06-07 00:00:00 UTC
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Market Wrap-Up for June 7 (CVS, WAG, BMY, GIS, FCX, DE, X, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-june-7-cvs-wag-bmy-gis-fcx-de-x-more-2010-06-07
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nan
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nan
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We can sometimes get surprised by the timing of Wall Street calls, but it is something investors need to recognize when looking to invest for one's own portfolio.
Goldman Sachs downgraded BP Plc ( BP ) fell after Walgreen Co. ( WAG ) decided to forego its current PBM deal with the company from here on in.
Elsewhere, shares of Bristol-Myers ( BMY ) rose after some positive healthcare conference data was released this past weekend. Defensive names like General Mills ( GIS ) and Kimberly-Clark ( KMB ) were able to buck the selling. On the flipside, commodity names traded lower, led by U.S. Steel ( X ) and Freeport McMoran ( FCX ) . Also in the red were names like Deere ( DE ) and Cummins Inc. ( CMI ) .
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.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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On the flipside, commodity names traded lower, led by U.S. Steel ( X ) and Freeport McMoran ( FCX ) . Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Goldman Sachs downgraded BP Plc ( BP ) fell after Walgreen Co. ( WAG ) decided to forego its current PBM deal with the company from here on in.
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Goldman Sachs downgraded BP Plc ( BP ) fell after Walgreen Co. ( WAG ) decided to forego its current PBM deal with the company from here on in. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Defensive names like General Mills ( GIS ) and Kimberly-Clark ( KMB ) were able to buck the selling.
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Defensive names like General Mills ( GIS ) and Kimberly-Clark ( KMB ) were able to buck the selling. On the flipside, commodity names traded lower, led by U.S. Steel ( X ) and Freeport McMoran ( FCX ) . Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Goldman Sachs downgraded BP Plc ( BP ) fell after Walgreen Co. ( WAG ) decided to forego its current PBM deal with the company from here on in. Defensive names like General Mills ( GIS ) and Kimberly-Clark ( KMB ) were able to buck the selling. On the flipside, commodity names traded lower, led by U.S. Steel ( X ) and Freeport McMoran ( FCX ) .
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857b857a-9e13-412a-8cfe-11ce11becaa3
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723254.0
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2010-06-02 00:00:00 UTC
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Deere & Co. Upgraded to “Buy” at Morgan Joseph (DE)
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DE
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https://www.nasdaq.com/articles/deere-co-upgraded-buy-morgan-joseph-de-2010-06-02
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nan
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nan
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Farm and construction equipment maker Deere & Company ( DE ) caught an upgrade on Wednesday from analysts at Morgan Joseph.
The firm boosted its rating on DE to "Buy" from "Hold," citing higher equipment demand in the Brazilian market, as well as U.S. row farmers.
Deere shares rose 67 cents, or +1.2%, in premarket trading Wednesday.
The Bottom Line
We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. The company has a dividend yield of 2.10%, based on last night's closing stock price of $57.13. The stock has technical support in the $52 price area. If the shares can firm up, we see overhead resistance around the $62 price level. We would remain on the sidelines for now.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Farm and construction equipment maker Deere & Company ( DE ) caught an upgrade on Wednesday from analysts at Morgan Joseph. The firm boosted its rating on DE to "Buy" from "Hold," citing higher equipment demand in the Brazilian market, as well as U.S. row farmers. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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The Bottom Line We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Farm and construction equipment maker Deere & Company ( DE ) caught an upgrade on Wednesday from analysts at Morgan Joseph.
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Farm and construction equipment maker Deere & Company ( DE ) caught an upgrade on Wednesday from analysts at Morgan Joseph. The Bottom Line We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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The Bottom Line We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. The company has a dividend yield of 2.10%, based on last night's closing stock price of $57.13. Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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b22c02e7-db20-4e1a-87e8-cde165acf797
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723255.0
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2010-05-19 00:00:00 UTC
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Deere Q2 Profit, Revenue Easily Top Estimates; Forecast Raised Significantly (DE)
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DE
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https://www.nasdaq.com/articles/deere-q2-profit-revenue-easily-top-estimates-forecast-raised-significantly-de-2010-05-19
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nan
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nan
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that its second quarter profit gained almost 16% from last year, helped by a big jump in construction and forestry machinery sales.
The Moline, IL-based company reported fiscal second quarter net income of $547.5 million, or $1.28 per share, compared with $472.3 million, or $1.11 per share, in the year-ago period. Excluding one-time costs, adjusted profit was $1.58 per share.
Total sales rose 6% from last year, to $7.13 billion.
On average, Wall Street analysts expected a much smaller adjusted profit of $1.09 per share, on lower sales of $6.62 billion.
Looking ahead, the company boosted its full-year 2010 earnings forecast to $1.6 billion, up from a prior view of $1.3 billion. Deere cited a rebound in building markets for the improved guidance.
Deere shares rose $1.69, or +3%, in premarket trading Wednesday.
The Bottom Line
We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. The company has a dividend yield of 1.96%, based on last night's closing stock price of $57.16. The stock has technical support in the $52 price area. If the shares can firm up, we see overhead resistance around the $62 price level. We would remain on the sidelines for now.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that its second quarter profit gained almost 16% from last year, helped by a big jump in construction and forestry machinery sales.
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that its second quarter profit gained almost 16% from last year, helped by a big jump in construction and forestry machinery sales. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere cited a rebound in building markets for the improved guidance.
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that its second quarter profit gained almost 16% from last year, helped by a big jump in construction and forestry machinery sales. The Bottom Line We had removed shares of DE from our "recommended" list Aug.6,2008, when shares were trading at $66.67. Deere cited a rebound in building markets for the improved guidance.
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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that its second quarter profit gained almost 16% from last year, helped by a big jump in construction and forestry machinery sales. Deere cited a rebound in building markets for the improved guidance. Deere shares rose $1.69, or +3%, in premarket trading Wednesday.
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8f9a2d63-ba7e-43f5-9693-3ba6d7c5bc10
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723256.0
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2010-05-19 00:00:00 UTC
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Opening View: DJIA, SPX Threaten Key Support Levels, VIX Targets 35 Level
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DE
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https://www.nasdaq.com/articles/opening-view-djia-spx-threaten-key-support-levels-vix-targets-35-level-2010-05-19
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nan
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nan
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The Dow Jones Industrial Average ( DJIA ) gave up a 90-point lead yesterday to close down 115 points, as bullish investors were overwhelmed by a wave of late-session selling pressure. The Dow's decline found support at the 10,500 level, but, given the direction of futures this morning, we could see the DJIA head sharply lower, potentially breaching short-term support at 10,450 and the average's 160-day moving average. Speaking of 160-day trendlines, the S&P 500 Index ( SPX ) is either in the process of setting a near-term bottom , or breaking out below key long-term support. The SPX closed yesterday perched on this trendline, which is located in the 1,120 area. The next layer of potential support lies at 1,110, while long-term and psychological support resides at 1,100. Heading into the open, futures on the DJIA and the SPX are trading roughly 70 points and 11 points below fair value. Finally, the CBOE Market Volatility Index ( VIX ) has held above the 30 level and its 10-day moving average for the past three sessions. The so-called "fear" index rallied nearly 10% on Tuesday, and could challenge short-term resistance at the 35 level in today's trading.
In earnings news, Deere & Co. ( DE ) reported a second-quarter profit of $547.5 million, or $1.28 per share. On an adjusted basis, earnings were $1.58 per share, topping analyst expectations. Sales in the period rose 6% to $7.13 billion. For the full year, Deere said it expects net income of $1.3 billion. Heading into the open, DE has gained more than 2% in the wake of its quarterly report.
Elsewhere, Hewlett-Packard Co. ( HPQ ) reported a second-quarter profit of $2.2 billion, or 91 cents per share, as revenue rose to $30.8 billion. Adjusted income was $1.09 per share. Analysts expected earnings of $1.05 per share on revenue of $29.8 billion. HPQ shares have rallied 2.80% in pre-market activity.
Finally, BJ's Wholesale Club Inc. ( BJ ) said that its first-quarter profit rose to $26.1 million, or 49 cents per share, as sales rose 13% to $2.55 billion. Excluding gasoline sales, same-store sales rose 4.2%. The company raised its full-year forecast to $2.58 to $2.68 per share. Analysts were looking for first-quarter results of 44 cents per share and full-year guidance of $2.61 per share. In electronic trading, BJ is up 0.13%.
Earnings Preview
On the earnings front, Applied Materials Inc. ( AMAT ), Hot Topic Inc. ( HOTT ), and Limited Brands Inc. ( LTD ) are slated to release their quarterly earnings reports. Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
CPI
Market Statistics
Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,527,969 call contracts traded on Tuesday, compared to 994,570 put contracts. The resultant single-session put/call ratio arrived at 0.65, while the 21-day moving average rose to 0.60.
**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
Overseas Trading
Overseas trading is abysmal this morning, as none of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 1.81%. In Asia, stocks retreated as moves to toughen financial regulation in both the U.S. and Europe rattled markets and sapped investors' appetite for risk. Investors were also unnerved by news Germany had moved to ban naked short-selling in certain securities, which triggered a sharp slide in the euro. The tighter regulation in German has slammed European trading as well. Analysts said there were concerns the ban would restrict the ability of markets to manage risk and hedge positions. A broader euro zone-wide ban could result in funds and business draining away from Frankfurt to London and other global financial centers, analysts noted. Overseas market information comes to you courtesy of Schaeffer's Daily Bulletin .
Currencies and Commodities
The U.S. Dollar Index has rallied to an annual high above the 87 level this morning, as the greenback gained strength in the wake of a four-year low in the euro. At last check, the index was up 0.15% at 87.30. Commodities are suffering under the weight of a rising dollar, with crude futures falling $1.04 to $71.66 in electronic trading. What's more, the combination of a rising dollar and falling euro has pressured gold futures $7.70 lower to $1,206.90 an ounce. If this weakness continues, gold may be in danger of breaching the psychologically important 1,200 level.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Click here for the new spring issue of SENTIMENT magazine
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A broader euro zone-wide ban could result in funds and business draining away from Frankfurt to London and other global financial centers, analysts noted. Currencies and Commodities The U.S. Dollar Index has rallied to an annual high above the 87 level this morning, as the greenback gained strength in the wake of a four-year low in the euro. The Dow's decline found support at the 10,500 level, but, given the direction of futures this morning, we could see the DJIA head sharply lower, potentially breaching short-term support at 10,450 and the average's 160-day moving average.
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The Dow's decline found support at the 10,500 level, but, given the direction of futures this morning, we could see the DJIA head sharply lower, potentially breaching short-term support at 10,450 and the average's 160-day moving average. Speaking of 160-day trendlines, the S&P 500 Index ( SPX ) is either in the process of setting a near-term bottom , or breaking out below key long-term support. The next layer of potential support lies at 1,110, while long-term and psychological support resides at 1,100.
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The Dow's decline found support at the 10,500 level, but, given the direction of futures this morning, we could see the DJIA head sharply lower, potentially breaching short-term support at 10,450 and the average's 160-day moving average. Speaking of 160-day trendlines, the S&P 500 Index ( SPX ) is either in the process of setting a near-term bottom , or breaking out below key long-term support. The next layer of potential support lies at 1,110, while long-term and psychological support resides at 1,100.
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The Dow's decline found support at the 10,500 level, but, given the direction of futures this morning, we could see the DJIA head sharply lower, potentially breaching short-term support at 10,450 and the average's 160-day moving average. Speaking of 160-day trendlines, the S&P 500 Index ( SPX ) is either in the process of setting a near-term bottom , or breaking out below key long-term support. The next layer of potential support lies at 1,110, while long-term and psychological support resides at 1,100.
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6b20b739-a631-42e3-8ab5-51016b6850a8
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723257.0
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2010-05-19 00:00:00 UTC
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Market Wrap-Up for May 19 (V, HPQ, ADI, DE, ANF, MEE, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-may-19-v-hpq-adi-de-anf-mee-more-2010-05-19
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nan
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nan
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The markets continue to shake a lot of investors up with the recent pullback. Considering how poorly things went last spring with the Dow dropping all the way to 6500, sitting at Dow 10,300 right now certainly feels better.
We have been busy pruning away on our recommended list, and we removed three more names that you can find in the link below if you did not read the e-mail alert we sent out earlier. Pullbacks are beneficial to the health of the market and never feel good when they are going on, but corrections have always been a part of the investing landscape over periods of time. We are hoping that the recent economic issues that are in the news can be contained to a certain point, but we will continue to monitor the situation as we have always done to position the "Best Dividend Stocks" list in the best possible direction. Putting new capital in the market is important to investors, and we will do our best to keep the names we feel are worthy of your new investment dollars up to date.
As for today's action, further selling in the low-dividend yield growth plays were rocking the commodity sector. Companies like Bucyrus International ( BUCY ) , Massey Energy ( MEE ) , and Consol Energy ( CNX ) all led the way lower. Retailers saw some red, with Abercrombie & Fitch ( ANF ) and Guess, Inc. ( GES ) down. On the flipside, Visa ( V ) bucked the early selling and got back some of the previous days' losses. On the earnings front, Deere & Co. ( DE ) was able to close higher after some up and down action intraday. Elsewhere, Analog Devices ( ADI ) finished up on its results, while Hormel Foods ( HRL ) drifted lower following its Q2 numbers. Hewlett Packard ( HPQ ) did close up slightly, but was off its intraday highs.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We have been busy pruning away on our recommended list, and we removed three more names that you can find in the link below if you did not read the e-mail alert we sent out earlier. We are hoping that the recent economic issues that are in the news can be contained to a certain point, but we will continue to monitor the situation as we have always done to position the "Best Dividend Stocks" list in the best possible direction. Considering how poorly things went last spring with the Dow dropping all the way to 6500, sitting at Dow 10,300 right now certainly feels better.
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We are hoping that the recent economic issues that are in the news can be contained to a certain point, but we will continue to monitor the situation as we have always done to position the "Best Dividend Stocks" list in the best possible direction. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Considering how poorly things went last spring with the Dow dropping all the way to 6500, sitting at Dow 10,300 right now certainly feels better.
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We are hoping that the recent economic issues that are in the news can be contained to a certain point, but we will continue to monitor the situation as we have always done to position the "Best Dividend Stocks" list in the best possible direction. Considering how poorly things went last spring with the Dow dropping all the way to 6500, sitting at Dow 10,300 right now certainly feels better. We have been busy pruning away on our recommended list, and we removed three more names that you can find in the link below if you did not read the e-mail alert we sent out earlier.
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Considering how poorly things went last spring with the Dow dropping all the way to 6500, sitting at Dow 10,300 right now certainly feels better. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here . We have been busy pruning away on our recommended list, and we removed three more names that you can find in the link below if you did not read the e-mail alert we sent out earlier.
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d7efafad-0df3-4982-805a-46b1a0af0917
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723258.0
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2010-05-17 00:00:00 UTC
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Options Strategy of the Day: A Bullish Pre-Earnings Volatility Play
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DE
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https://www.nasdaq.com/articles/options-strategy-day-bullish-pre-earnings-volatility-play-2010-05-17
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nan
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nan
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With events in Europe and China shaping the bigger picture on Wall Street, it is easy to forget that we are smack in the middle of corporate earnings season. While we are about halfway through the current earnings calendar, there are several heavy hitters still scheduled to report. This week alone, we have Hewlett-Packard Co. ( HPQ ), Wal-Mart Stores Inc. ( WMT ), Deere & Co. ( DE ), and Dell Inc. ( DELL ), just to name a few. As such, options traders still have plenty of opportunities to benefit from this period of elevated volatility.
Now, many intermediate options traders have heard of strategies like straddles and strangles, and these plays work well during of periods of increased volatility by allowing the investor to profit regardless of the stock's directional move. The catch is that the stock has to move big, which is kind of the idea during periods of elevated volatility. But, what if you have a directional bias on the underlying stock?
Straddles and strangles may not have an opinion on which direction the shares of XYZ BrickLayers Corp. will move post-earnings, but you have your suspicions that the stock is due for a rally. Luckily for you, there is a way to increase your payout on a rally in XYZ shares, while still maintaining a "hedge" against a downside move: the strap.
Constructing a Strap
Straps are quite similar in construction to straddles. Instead of purchasing one at-the-money put and one at-the-money call, the strap trader will purchase one at-the-money put and two at-the-money calls. This gives the position a bias toward a rally in the underlying shares.
Let's take a look at an example. Sticking with your bullish bias on XYZ BrickLayers, you expect the company to report blowout quarterly results after the close on Friday. However, the market being what it is lately, not to mention the unpredictable nature of earnings reactions, you feel that you need some downside exposure. With XYZ trading at $52 per share, you purchase one June 52 put, last asked at $1.57, and two June 52 calls, last asked at $1.10 (or $2.20 total). As a result, you enter the trade with a net debit of $3.77, which represents the most you can possibly lose on the position.
Potential Outcomes
There are a couple potential outcomes for this strap position. Under the best-case scenario, XYZ impresses Wall Street with its quarterly report, and rallies significantly beyond $55.27 per share (the upper breakeven level). Keep in mind that a rally in the underlying stock is preferred because you have bought two calls for every one put. Assuming that XYZ closes at $60 per share at June expiration, the purchased June 52 put would expire worthless, while the two purchased June 52 calls would be worth a combined $16. Subtracting the net debit of $3.77 paid at initiation, your profit comes in at $12.23.
Your next best outcome for this strap strategy is for XYZ to plunge below $48.23 per share (the lower breakeven level). Assuming that XYZ sorely disappoints investors with its quarterly figures, and the shares plunge to $45 per share, the purchased June 52 calls would expire worthless, while the June 52 put would be worth $7. Subtracting the net debit of $3.77 paid at initiation, your profit comes in at $3.23.
The only way to lose in this example is for XYZ shares to have practically no reaction to their earnings data, leaving the shares close essentially flat at expiration. However, even in a worst-case scenario where XYZ closes at $52 per share when June options expire, your losses are limited to the net debit of $3.77 paid at initiation.
Wrapping Up
It may seem like the strap is the answer to the aggressive bullish trader's prayers, but options strategies that revolve around high levels of volatility are rarely as cut and dried as they seem. Just remember that while high levels of volatility are beneficial to a strap position, they can also increase the cost of entering the trade. Furthermore, trading around events, such as earnings reports and trial results, can be extremely risky. So, while the strap can give bullish traders a way of participating in volatile price swings, there is still a palpable degree of risk involved.
Schaeffer's Investment Research Inc. offers real-time option trading services, as well as daily, weekly and monthly newsletters. Please click here to sign up for free newsletters. The SchaeffersResearch.com website provides financial news, education and commentary, plus stock screeners, filters and many other tools. Founder Bernie Schaeffer is the author of the groundbreaking book, The Option Advisor: Wealth-Building Techniques Using Equity & Index Options .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now, many intermediate options traders have heard of strategies like straddles and strangles, and these plays work well during of periods of increased volatility by allowing the investor to profit regardless of the stock's directional move. Under the best-case scenario, XYZ impresses Wall Street with its quarterly report, and rallies significantly beyond $55.27 per share (the upper breakeven level). Wrapping Up It may seem like the strap is the answer to the aggressive bullish trader's prayers, but options strategies that revolve around high levels of volatility are rarely as cut and dried as they seem.
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Instead of purchasing one at-the-money put and one at-the-money call, the strap trader will purchase one at-the-money put and two at-the-money calls. This week alone, we have Hewlett-Packard Co. ( HPQ ), Wal-Mart Stores Inc. ( WMT ), Deere & Co. ( DE ), and Dell Inc. ( DELL ), just to name a few. As such, options traders still have plenty of opportunities to benefit from this period of elevated volatility.
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However, even in a worst-case scenario where XYZ closes at $52 per share when June options expire, your losses are limited to the net debit of $3.77 paid at initiation. This week alone, we have Hewlett-Packard Co. ( HPQ ), Wal-Mart Stores Inc. ( WMT ), Deere & Co. ( DE ), and Dell Inc. ( DELL ), just to name a few. As such, options traders still have plenty of opportunities to benefit from this period of elevated volatility.
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This gives the position a bias toward a rally in the underlying shares. However, even in a worst-case scenario where XYZ closes at $52 per share when June options expire, your losses are limited to the net debit of $3.77 paid at initiation. This week alone, we have Hewlett-Packard Co. ( HPQ ), Wal-Mart Stores Inc. ( WMT ), Deere & Co. ( DE ), and Dell Inc. ( DELL ), just to name a few.
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6270da27-ebda-43fd-9532-490ec5287d0d
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723259.0
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2010-05-14 00:00:00 UTC
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Market Wrap-Up for May 14 (MA, V, COF, AXP, CLF, DDS, more)
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DE
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https://www.nasdaq.com/articles/market-wrap-may-14-ma-v-cof-axp-clf-dds-more-2010-05-14
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nan
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nan
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The market is pulled back fairly hard today. We have a continued drop in the Euro currency that can soon begin to have an impact on company earnings for many S&P 500 names.
We removed some more names from our "recommended" list earlier today, so be sure to check out the post if you did not read the e-mail alert we sent out.
We saw selling over many sectors today, with names like Mastercard ( MA ) and Visa ( V ) getting hit quite hard on credit card legislation worries. Capital One Financial ( COF ) and American Express ( AXP ) were also lower on the potential threat. Commodity-related names dropped, with U.S. Steel ( X ) and Cliffs Natural Resources ( CLF ) leading the way lower. Earnings plays like Nordstrom Inc. ( JWN ) and CA, Inc. ( CA ) finished in the red following Wall Street's reaction to their results. Dillard's ( DDS ) bucked the downtrend after the company posted better-than-expected results. Another trend we continue to take note of is the rising volume we see on down days. The NYSE traded 5.9 Billion shares by the close, while the NASDAQ ended with 2.51 Billion shares changing hands.
As we look ahead to next weekend, we will see an increased number of big companies reporting results, such as Hewlett Packard ( HPQ ) , Home Depot ( HD ) , Target ( TGT ) , and Deere ( DE ) , just to name a few.
Be sure to check out Dividend.com Premium to stay up-to-date on names that are going on and coming off the various watchlists we showcase.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
We removed some more names from our "recommended" list earlier today, so be sure to check out the post if you did not read the e-mail alert we sent out. As we look ahead to next weekend, we will see an increased number of big companies reporting results, such as Hewlett Packard ( HPQ ) , Home Depot ( HD ) , Target ( TGT ) , and Deere ( DE ) , just to name a few. The NYSE traded 5.9 Billion shares by the close, while the NASDAQ ended with 2.51 Billion shares changing hands.
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We removed some more names from our "recommended" list earlier today, so be sure to check out the post if you did not read the e-mail alert we sent out. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The NYSE traded 5.9 Billion shares by the close, while the NASDAQ ended with 2.51 Billion shares changing hands.
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We removed some more names from our "recommended" list earlier today, so be sure to check out the post if you did not read the e-mail alert we sent out. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The NYSE traded 5.9 Billion shares by the close, while the NASDAQ ended with 2.51 Billion shares changing hands.
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We removed some more names from our "recommended" list earlier today, so be sure to check out the post if you did not read the e-mail alert we sent out. The NYSE traded 5.9 Billion shares by the close, while the NASDAQ ended with 2.51 Billion shares changing hands. As we look ahead to next weekend, we will see an increased number of big companies reporting results, such as Hewlett Packard ( HPQ ) , Home Depot ( HD ) , Target ( TGT ) , and Deere ( DE ) , just to name a few.
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cae166c4-5391-4ee3-81ed-fb8056d937ee
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723260.0
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2010-03-24 00:00:00 UTC
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The Ultimate Emerging Market Stock
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DE
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https://www.nasdaq.com/articles/ultimate-emerging-market-stock-2010-03-24
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nan
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nan
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It looks as if we've dodged a bullet, and the U.S. economy will be able to avoid another deep slump. But tepid growth may be the best we can hope for in the foreseeable future. Yet beyond our borders, growth should prove more dynamic, especially in emerging market economies. As China, Vietnam, Indonesia and other neighbors transform into world-class economies, they'll need to ensure that their infrastructures can handle a steady wave of growth. And they're likely to continue consuming large amounts of oil, gas, and other commodities to build the highways, power plants, and other hallmarks of a modern economy.
I can think of no clearer way to play that trend than Caterpillar ( CAT ) , the global heavy machinery powerhouse. Caterpillar has steadily increased its exposure to the Asian economies during the past few years, and also stands primed to benefit from rebounding demand for excavation and mining equipment to pull all of the key commodities out of the ground.
Like many multi-nationals, Caterpillar has surely seen some tough times. Sales fell a hefty -37% in 2009 to $32.4 billion, the lowest level since 2004, and per-share profits fell nearly -75% to $1.43. That's well below the $5 to $6 a share the company earned in the previous three years. Yet there is a clear silver lining: management has implemented a wide range of improvements to the business with an eye toward boosting profit margins. As a result, profits should be sharply higher in the next peak of the economic cycle.
For starters, the company is sharply reducing the number of parts used to build its various machines and engines. That has given Caterpillar pricing leverage with suppliers, as higher volumes of fewer parts yield price concessions. Moreover, the company has hired a range of external manufacturing managers from firms such as Toyota ( TM ) and General Motors that bring expertise in terms of material handling, production de-bottlenecking and quality control. As a result, the company thinks it will save several hundred million dollars annually on warranty claims, labor productivity and transportation costs.
These steps are just getting underway, and any benefits are being masked by a still-weak global economy. Yet signs are emerging that the U.S. economy is no longer in freefall, and Asian economies are starting to heat up. Asia, in particular, bears close scrutiny. Analysts at Smith Barney believe that the Asian region will see $700 billion in infrastructure spending over each of the next five years. That's up from $370 billion in each of the last two years. They and others note that Caterpillar's exposure to China is especially appealing.
In the United States, the upturn will be slower to materialize, and could take two to three years to reach fruition. For example, the company's network of dealers reduced inventories in 2009 by nearly $4 billion, down to bare-bones levels. It's not clear when normal inventory levels will rebuild, but they should provide a solid tailwind, exceeding actual end-user demand. In addition, the U.S. and European construction markets, which have been in a slump for some time, should start to thaw over the next 12 to 24 months. Morgan Stanley's analysts note that the dealer networks for rival equipment manufacturers "struggle to remain viable" after the sharp sales slowdown, which should lead to rising U.S. market share for Caterpillar and Deere ( DE ) .
To be sure, Caterpillar's transformation will not happen quickly, but shares should benefit from a sense that the company will emerge from the downturn in a very strong position. As cash flow rebuilds, look for the company to boost its dividend (which currently yields nearly 3%), buy back stock and pay down debt. As noted, per-share profits could exceed $8 if sales rebound to 2007 levels, thanks in large part to the myriad streamlining efforts.
With the exception of some especially bullish and bearish market phases, shares have traditionally traded for around 15 times profits. Assuming shares only trade up to around 12 times peak cycle profits of $8 a share, then the stock could well rise close to the $100 mark. That's roughly 65% above current levels. It will take several years for that investment thesis to be realized, but Caterpillar clearly stands out as a platform for the global economic rebound - especially in Asia and in commodities.
-- David Sterman
Contributor
StreetAuthority
P.S. We've already seen how Caterpillar's shares can zoom with the right profit catalysts: Soaring commodity prices in 2003 helped trigger a rush for Caterpillar's products that pushed up its revenue by +100%, its profit by +220%, and its stock price by over +200% in the following five years. Go here for a list of our favorite "profit catalyst" stocks for today's market.
Disclosure: David Sterman does not own shares of any security mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Caterpillar has steadily increased its exposure to the Asian economies during the past few years, and also stands primed to benefit from rebounding demand for excavation and mining equipment to pull all of the key commodities out of the ground. Moreover, the company has hired a range of external manufacturing managers from firms such as Toyota ( TM ) and General Motors that bring expertise in terms of material handling, production de-bottlenecking and quality control. Morgan Stanley's analysts note that the dealer networks for rival equipment manufacturers "struggle to remain viable" after the sharp sales slowdown, which should lead to rising U.S. market share for Caterpillar and Deere ( DE ) .
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Assuming shares only trade up to around 12 times peak cycle profits of $8 a share, then the stock could well rise close to the $100 mark. It looks as if we've dodged a bullet, and the U.S. economy will be able to avoid another deep slump. Yet beyond our borders, growth should prove more dynamic, especially in emerging market economies.
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Caterpillar has steadily increased its exposure to the Asian economies during the past few years, and also stands primed to benefit from rebounding demand for excavation and mining equipment to pull all of the key commodities out of the ground. Assuming shares only trade up to around 12 times peak cycle profits of $8 a share, then the stock could well rise close to the $100 mark. It looks as if we've dodged a bullet, and the U.S. economy will be able to avoid another deep slump.
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For example, the company's network of dealers reduced inventories in 2009 by nearly $4 billion, down to bare-bones levels. Assuming shares only trade up to around 12 times peak cycle profits of $8 a share, then the stock could well rise close to the $100 mark. It looks as if we've dodged a bullet, and the U.S. economy will be able to avoid another deep slump.
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0fbabd99-3251-4abc-8343-97a430afc2a5
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723261.0
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2010-03-24 00:00:00 UTC
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Commodity ETFs vs. Commodity Stocks
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DE
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https://www.nasdaq.com/articles/commodity-etfs-vs-commodity-stocks-2010-03-24
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nan
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nan
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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.
The views and 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 views and 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 views and 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 views and 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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6e7864ce-1f98-4552-b51b-4b98b85b305d
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723262.0
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2010-02-05 00:00:00 UTC
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Coordinated FX Intervention: Has the Time Come to Consider It?
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DE
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https://www.nasdaq.com/articles/coordinated-fx-intervention-has-time-come-consider-it-2010-02-05
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nan
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nan
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Bruce Krasting submits:
Coordinated currency intervention may not be far off. I am not making a prognostication that this will happen. That is far to complex an issue to make a 'call' on. I want to make a case that the conditions are either presently with us or soon will be upon us for currency intervention to become an option that is exercised.
In my opinion there were at least a half dozen times in the past 18 months where currency intervention could have been an option to provide stability to a global financial system that was cracking up. But there was no coordinated intervention in the FX market. There were an unprecedented amount of fiscal and monetary actions taken by nearly every country in the globe, but it never came down to FX intervention as a policy option.
I bring up this history to re-enforce my point that intervention is impossible to call and is, based on recent history, a remote possibility. That said, should it come in the next few days and weeks it would be a measure of just how much pressure is building up and how unstable the system is.
Central bankers know they can't control the value of their currencies. The markets are far bigger than the central banks. The best they can do is slow a process. A checklist for decision-making on coordinated intervention would include some of the following:
How quickly is the market moving? Is the rate of change orderly?
The movement in the $/Euro has not been disorderly. We have a 10% recent peak to trough move. That is big in currency land but it would not by itself be a justification to intervene and provide temporary stability.
A different way to measure how much stress there is out there is to look at the Euro/CHF rate. The Swissy has strengthened by 3+% of late. That may look like peanuts compared to the moves in the dollar. But it is actually a big deal. The SNB has been intervening to hold the 1.51 parity to the Euro. They gave that up after a long fight. Now they just look silly for having drawn a line in the sand then backing off. The Swiss just hate what is going on.
If you want to look at stress look at the move in the $/Yen and the Yen/Crosses yesterday. The two big figure moves might be considered disorderly. I am sure that there are some Yen traders that are puking in the garbage pail. The Japanese CB hates this. They don't want a strong Yen and they hate when it gets moving too fast
What is the cause of the capital movements?
It's the sovereign story that is driving this. This is a bizarre factor that is driving the Euro/$ rate. The GDP of France and Germany are many multiples of that of Greece. Think of this as if the state of Utah was having a budget crisis. You wouldn't dump the dollar just because of that. Yes, we have Portugal and Spain to consider (Italy, in my opinion should be taken out of the PIIGS). So go back to the US comparison and you have Utah, Georgia and Connecticut to worry about. But step back a bit, we are trashing the Euro based on this. The real comparison to the US and the EU is not Georgia or Utah; it is California and New York. The deficits and problems in these two states balance the problems in Athens and Madrid on the currency scale.
There is nothing rational about our markets. But moving massive amounts of money around the globe because of problems in Greece is not rational. I say, "Never fight the tape". Central bankers can't say that. There is a good excuse for them to fight this tape.
Is the rapid change in FX rates creating collateral damage?
Boy is it. Just look at the tape. This Greece story has gone global. It is raining deflation on us. VIX on everything just shot up. A few more weeks of this and you start taking points off of global GDP.
What is the implication to the US?
The big Boss made a speech a week ago and said that we had to export our way out of trouble and export to create jobs. Well you can kiss that plan goodbye if the dollar keeps rising. You think this is good for John Deere ( DE ), Caterpillar ( CAT ), [[IBM]], Microsoft ( MSFT ), Apple ( AAPL ), Boeing ( BA ), Cisco ( CSCO ) or Intel ( INTC )? This is not good at all. It is one of the reasons the DOW is getting smacked so hard. A strong dollar is a decidedly brown shoot. Go ask Disney ( DIS ) or Mike Bloomberg. How much do they make on foreign tourism? The White House knows this. I doubt Geithner does, but there are plenty of others (Volker/Summers) who understand the implications of this. Bernanke knows this. He has bet his career on something. It could get derailed if the dollar gets too strong too fast. Everyone in D.C. hates what is going on. They are looking for solutions. Intervention is the one thing that is on the shelf.
If left unchecked where could the instability lead?
This is a slippery slope we are on. The markets seem to have Greece in their cross hairs. But this will pass and those with loaded rifles will point them elsewhere. This sovereign story could spread very quickly. It could jump out of Europe and go to Mexico overnight. It could go to Asia and make a mess of Indonesia, the Philippines and Korea. Once it gets started it will be very difficult to stop. It is already moving fast. It could go global in a week. The worst possible outcome is that it goes uphill to the "stronger" countries. Like France, Germany, UK and of course the USA. If this disease is left unchecked and it spreads to some of the "Big Boys" it is an absolute lights out event. It would take years to recover from that. This is the most compelling reason for coordinated intervention.
Could currency intervention achieve anything in the larger picture?
No. And for that reason it probably will not happen. The best intervention could accomplish is buying some time for things to settle down. But if things remain unstable for much longer, the utility of a short-term fix becomes larger.
Are their any other considerations that might come into the decision?
I think so. Four come to mind:
a) The CDS market has been LEADING this market move. The Central Banks HATE the CDS market and the role that it plays in our economies and in the policy choices. The Central Banks can't stop that. They have no power. But they could intervene in the currency markets. Because of the way things are connected, a jump in the Euro would also mean a narrowing of the PIIG CDS spreads.
b) Central Bankers have studied the impact of coordinated intervention for years. The biggest conclusion is that intervention can re-establish "two-way risk." This condition is vital to restoring stability. There has been "no risk" to being short Euros and long PIIG CDS spreads. As long as the perception is out there that there is little or no risk in these directional bets they will continue to move in one direction. Intervention can reestablish the notion of two-way risk. They do that by punishing market players that are constantly pushing the bet farther. CBs hate speculators. They would like nothing better than to catch them off guard and disable them.
c) China is a spectator to this in most respects. But their currency is tied to the dollar. Therefore their currency has just gone up in value by 10%. They hate that. Don't assume that they have no say in the outcome of this. They would love to see currency intervention solve their problems.
d) If Paul Volker were running the show I think he would say, " Nip this one in the bud ". But Big Paulie is not in charge. Is he?
Will we see this headline?
EU, UK, Swiss, Japanese and US Central Banks Join in Coordinated Global Currency Intervention
Global Markets Rally
The odds are not good based on history. These things do not happen very often. But many of the pieces are in place for a CB response to this winter's instability. Let's put it this way. If they don't intervene the trend will continue and markets are in for one hell of a set back.
See also Our February Market Forecast Project Results on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 my opinion there were at least a half dozen times in the past 18 months where currency intervention could have been an option to provide stability to a global financial system that was cracking up. There were an unprecedented amount of fiscal and monetary actions taken by nearly every country in the globe, but it never came down to FX intervention as a policy option. You think this is good for John Deere ( DE ), Caterpillar ( CAT ), [[IBM]], Microsoft ( MSFT ), Apple ( AAPL ), Boeing ( BA ), Cisco ( CSCO ) or Intel ( INTC )?
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In my opinion there were at least a half dozen times in the past 18 months where currency intervention could have been an option to provide stability to a global financial system that was cracking up. There were an unprecedented amount of fiscal and monetary actions taken by nearly every country in the globe, but it never came down to FX intervention as a policy option. A checklist for decision-making on coordinated intervention would include some of the following: How quickly is the market moving?
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A checklist for decision-making on coordinated intervention would include some of the following: How quickly is the market moving? In my opinion there were at least a half dozen times in the past 18 months where currency intervention could have been an option to provide stability to a global financial system that was cracking up. There were an unprecedented amount of fiscal and monetary actions taken by nearly every country in the globe, but it never came down to FX intervention as a policy option.
|
In my opinion there were at least a half dozen times in the past 18 months where currency intervention could have been an option to provide stability to a global financial system that was cracking up. There were an unprecedented amount of fiscal and monetary actions taken by nearly every country in the globe, but it never came down to FX intervention as a policy option. A checklist for decision-making on coordinated intervention would include some of the following: How quickly is the market moving?
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bcad06f4-fd94-47bf-84e3-f6e4f5dd8745
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723263.0
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2010-02-01 00:00:00 UTC
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Working It Out
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DE
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https://www.nasdaq.com/articles/working-it-out-2010-02-01
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nan
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nan
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This fund's unique approach to socially responsible investing focuses on companies that provide a comfortable work environment, betting that happy employees work harder and lay a foundation for success. Say what you will about this logic, management's strategy of buying names that offer superior growth prospects at a discount continues to pay off.
In his most recent quarterly commentary, manager Jerome Dodson notes that Parnassus Workplace ( PARWX ) "began as an experiment over four years ago to see if companies with good workplaces could have superior stock-market returns." The logic underpinning this test is elegant in its simplicity: A company that treats its employees with respect and fosters a supportive work environment should outperform average businesses because its team members will work harder and more conscientiously.
What makes for a good workplace? Dodson and his team make this judgment based on factors such as respect for and fair treatment of employees, equitable pay and benefits, family-friendly policies, and support for volunteerism and charitable contributions to the community. Management also consults outside sources when necessary, including the Great Place to Work Institute and annual surveys conducted by Fortune and Working Mother . Milton Moskowitz, coauthor of Fortune's "100 Best Companies to Work For," advises the fund on these matters.
To date, Dodson's experiment has paid off handsomely for shareholders. The fund weathered the financial crisis and market selloff better than most, losing just 29.9 percent in 2008, and chalked up an extraordinary 62.2 percent gain in last year's extended rally. This substantial outperformance places the fund in the top 1 percent of Morningstar's Large Growth category and has landed it in The Rukeyser 100 for the past seven months. Unlike many funds, Parnassus Workplace has erased all of the losses incurred since the bear market took hold in 2007.
That being said, we wouldn't necessarily describe the fund's track record as proof of concept; the fund's romantic conceit about "exceptional workplaces," no matter how appealing, wouldn't stand up without Dodson's stock-picking acumen and the rigorous research that undergirds all of Parnassus Investments' offerings. Remember, plenty of Internet startups that were great places to work failed in the wake of the tech boom.
Social responsibility aside, Parnassus Workplace's solid performance in both up and down markets validates Dodson's strategy of buying undervalued companies that are growing at a faster rate than the rest of the economy. These names are typically industry leaders with secular growth opportunities, competitive advantages, solid returns, healthy balance sheets and quality management. Although the fund can invest in companies of any size, the majority of its holdings are large-cap or blue-chip stocks.
Top-down analysis enables management to identify key growth trends that are sometimes lost in the shuffle, while close scrutiny of individual companies ferrets out the names that are best positioned to benefit.
This approach yields cyclical names such as chipmaker Intel ( INTC ), which should reap the rewards of an anticipated wave of computer upgrades now that Microsoft's ( MSFT ) Windows 7 operating system has launched.
At the same time, Dodson is also bullish on Qualcomm ( QCOM ), an attractive play on the rising popularity of smart phones across the globe. Not only does Qualcomm provide integrated circuits and software solutions--the guts of some of the most popular smart phones--to top wireless handset manufacturers but its patents on key technologies mean that the firm receives royalties from the sale of 3G-enabled phones.
Outside the technology space, the fund holds a sizeable position in Deere & Company ( DE ), the agricultural equipment company that boasts an almost 50 percent share of the North American market and should benefit over the long term from rising demand in China and India. Tennessee-based regional bank First Horizon National Corp ( FHN ) enjoys an enviable capital position and continues to reduce problem credits aggressively. The bank is further along in its turnaround than many of its peers in the South and stands to increase its share in its local market.
Although Dodson's value approach should limit losses in pullbacks and position the fund for future success, return-chasing investors shouldn't expect the eye-popping gains the fund generated last year. The violent selloff of 2008 and subsequent rally in 2009 were anomalous occurrences set in motion by extreme circumstances; selectivity will be the key to success going forward.
At the same time, prospective investors shouldn't be scared away by the fund's relatively short track record. The founder, president and CEO of Parnassus Investments, Dodson has achieved similarly impressive results at firm's marquee fund, Parnassus ( PARNX ), which he's piloted since 1984.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Article Republished with permission from www.KCIinvesting.com and www.rukeyser.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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Social responsibility aside, Parnassus Workplace's solid performance in both up and down markets validates Dodson's strategy of buying undervalued companies that are growing at a faster rate than the rest of the economy. This approach yields cyclical names such as chipmaker Intel ( INTC ), which should reap the rewards of an anticipated wave of computer upgrades now that Microsoft's ( MSFT ) Windows 7 operating system has launched. This fund's unique approach to socially responsible investing focuses on companies that provide a comfortable work environment, betting that happy employees work harder and lay a foundation for success.
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This fund's unique approach to socially responsible investing focuses on companies that provide a comfortable work environment, betting that happy employees work harder and lay a foundation for success. The logic underpinning this test is elegant in its simplicity: A company that treats its employees with respect and fosters a supportive work environment should outperform average businesses because its team members will work harder and more conscientiously. Management also consults outside sources when necessary, including the Great Place to Work Institute and annual surveys conducted by Fortune and Working Mother .
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This fund's unique approach to socially responsible investing focuses on companies that provide a comfortable work environment, betting that happy employees work harder and lay a foundation for success. That being said, we wouldn't necessarily describe the fund's track record as proof of concept; the fund's romantic conceit about "exceptional workplaces," no matter how appealing, wouldn't stand up without Dodson's stock-picking acumen and the rigorous research that undergirds all of Parnassus Investments' offerings. Outside the technology space, the fund holds a sizeable position in Deere & Company ( DE ), the agricultural equipment company that boasts an almost 50 percent share of the North American market and should benefit over the long term from rising demand in China and India.
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The fund weathered the financial crisis and market selloff better than most, losing just 29.9 percent in 2008, and chalked up an extraordinary 62.2 percent gain in last year's extended rally. This fund's unique approach to socially responsible investing focuses on companies that provide a comfortable work environment, betting that happy employees work harder and lay a foundation for success. The logic underpinning this test is elegant in its simplicity: A company that treats its employees with respect and fosters a supportive work environment should outperform average businesses because its team members will work harder and more conscientiously.
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9733ea37-f0f2-4218-af42-7b3cb8ca3ccf
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723264.0
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2009-12-29 00:00:00 UTC
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More Gains for Agriculture Stocks in 2010
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DE
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https://www.nasdaq.com/articles/more-gains-agriculture-stocks-2010-2009-12-29
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nan
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nan
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Hard Assets Investor submits:
By Brad Zigler
In a recent Desktop article (" Gasoline Welcomes You To Winter "), we celebrated the beginning of winter and marked the 200th anniversary (that's 200 days, mind you) of the equity market low culminating the Great De-leveraging.
Although the widely followed S&P 500 Composite was the yardstick used to score the market's nadir, that doesn't mean that every issue in the index bottomed on March 6. Take agribusiness stocks, for example. Of the five biggest domestically traded components of the DAXglobal Agribusiness Index-the benchmark tracked by the Market Vectors Agribusiness ETF (NYSE Arca: MOO) -only one scraped its pan in March. The rest actually started pulling up in late 2008, well ahead of the broader market.
Certainly, ag stocks have been on a tear this year. The Market Vectors agribusiness portfolio headed into the Christmas trading break with a 58 percent gain, nearly two and a half times the run-up of the S&P 500:
Market Vectors Agribusiness ETF ( MOO )
Underlying the ag sector's buoyancy are continuing concerns about the impact on food prices from growing global populations. The Food Price Index of the United Nations' Food and Agriculture Organization has climbed relentlessly for months; in fact, November's index reading was the highest since September 2008.
Aside from these supply/demand fundamentals, external factors such as volatility in exchange rates and oil prices are also adding an uncertainty premium to many agricultural commodity prices.
The Biggest Winners, Stock By Stock
Closer to home, market dynamics piqued investors' appetites for agribusiness. As an example, let's look at the top five components of the DAXglobal Agribusiness Index.
First, take Mosaic Co. ( MOS ) , a company that makes up 8.2 percent of the DAXglobal Agribusiness Index. Mosaic produces and markets phosphate and potash fertilizers and animal feed components. Demand for potash seems likely to increase in 2010, as farmers replenish soils following two years of limited applications.
Last week, shares of Mosaic (along with those of Potash Corp. of Saskatchewan ( POT ) -but more on that later) were given a lift with upgrades by Goldman Sachs research.
Mosaic, now trading with a $60 handle, bottomed in November 2008 just under $22 and has now cleared the 24 percent retracement level of its 2008 decline. Mosaic's price trajectory is shallower than some of its competitors, indicating that share values haven't been overextended. The technical balance point between "oversold" and "overbought" conditions for Mosaic currently appears to be around the $58 level. Just before Christmas, Mosaic shares were trading 21 percent above their 200-day moving average.
Another agrichemical component in the index is Syngenta AG ( SYT ) , a Swiss company that produces herbicides, genetically modified seeds and pest-resistant specialty crops. The company also invests in the development of amylase corn for use in ethanol production. Syngenta accounts for 8 percent of the DAXglobal Agribusiness Index.
Syngenta ADRs broke through the 62 percent retracement level of their 2008 decline-they bottomed in October 2008-and are now trading above $55, quite near their balance point. At current levels, the receipts trade 19 percent ahead of their 200-day moving average.
St. Louis-based Monsanto Co. ( MON ) is a genomics and agrichemicals outfit that comprises 7.9 percent of the DAXglobal Agribusiness Index. The company develops strains of corn, soybeans and cotton seeds, as well as vegetable and fruit seeds that are sold to commercial growers, while its herbicide operations market chemicals to commercial and residential customers.
Since bottoming near $63 in November 2008, Monsanto shares have struggled to maintain forward momentum. In fact, prices are now lower than the levels attained in May, when a string of bullish crop reports and trade data prompted buyers to bid up the stock to the low $90s. The rally wasn't sustained, and prices eased back to trade, for a good deal of the time, south of $80.
Monsanto shares now trade at their balance point near $82, just 3 percent above their 200-day moving average.
Potash Corp. of Saskatchewan ( POT ) produces and sells fertilizers and feed products throughout North America, drawing potash from six mines in Saskatchewan and one in New Brunswick. The DAXglobal Agribusiness Index allocates 7.5 percent of its capitalization to Potash.
Potash shares have been testing a 38 percent retracement of their 2008 swoon, but haven't been able to sustain a break above the $120 level. The stock remains oversold by about $4 a share at the current $111 price range, though shares are trading 15 percent above their 200-day moving average.
Finally, there's Illinois-based farm machinery maker Deere & Co. ( DE ) , known for its farm equipment as well as heavy equipment used in construction, earthmoving and forestry. With a 4.8 percent weighting, Deere is the largest machinery producer in the DAXglobal Agribusiness Index.
Deere was one of the earliest ag stocks to top out back in April 2008. Share prices tumbled $70 by 2009's first quarter, but have since regained more than 38 percent of their lost ground. The stock's trajectory has been more volatile than the other ag stocks we've examined, though. In July, the stock traded below its 200-day moving average for about a week.
Deere stockholders who used that dip as a buying opportunity were amply rewarded. The low point just below $35 was a launchpad for a run that's taken Deere shares to their present level above $56. The stock, now 29 percent above its 200-day moving average, is actually overbought by a couple of bucks.
Top 5 Domestically Traded MOO Components
Stock
YTD
Return
Annualized
Volatility
Sharpe
Ratio
Sortino
Ratio
Correlation
To MOO
MOS
69.7%
74.5%
0.95
1.63
86.4%
SYT
46.4
45.2
1.04
2.64
76.7
MON
13.8
45.2
0.31
-0.52
68.2
POT
44.9
64.7
0.70
1.21
81.4
DE
46.1
60.6
0.77
1.90
82.4
MOO
58.6
45.7
1.28
3.14
--
(Sharpe and Sortino ratios are both keyed to the 13-week Treasury bill to aid comparison)
On the whole, the largest issues in the DAXglobal Agribusiness Index have fared well this year. Only one-Monsanto-has posted a negative Sortino ratio, an indication of its relatively flat trajectory since last year's drawdown. Mosaic has cranked out the best gain, but also is the most volatile issue in the group.
The best risk-adjusted return, however, could have been earned by holding all the stocks in the DAXglobal Agribusiness Index. An investment in the Market Vectors ETF carried a modest drawdown risk this year while providing its market-bettering return.
What's Next?
The question now is whether these stocks-and, by extension, the ETF-are likely to advance in 2010. Credit agencies are predicting stability in the agribusiness sector as stocks continue to rebound from recent earnings weakness. The momentum of agribusiness stocks, however, could be slowed when the Fed finally begins to withdraw its accommodation.
Some traders and would-be ag investors, in fact, have already noticed a waning impetus, at least in a relative sense. For most of the year, the price of the Market Vectors fund shares has been rising at a faster pace than those of the PowerShares DB Agriculture Fund (NYSE Arca: DBA) , an exchange-traded portfolio of 11 agricultural futures. Recently, though, that momentum's been arrested.
MOO/DBA Price Ratio
Some of the under-performance of the DBA portfolio has been due to the contango in its component markets, reflecting slack demand and relative abundance in certain markets such as cattle and, until recently, wheat. Should commodity supplies be compromised by weather or external factors, futures curves could invert, boosting returns within the DBA portfolio. Then, investors will be faced with making the decision of whether ag stocks or futures represent the best way to gain sector exposure.
We'll be keeping tabs on the relative strength of agribusiness stocks throughout 2010, so stay tuned.
See also BHP Billiton's Plans to Develop Its Own Potash Reserves on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another agrichemical component in the index is Syngenta AG ( SYT ) , a Swiss company that produces herbicides, genetically modified seeds and pest-resistant specialty crops. In fact, prices are now lower than the levels attained in May, when a string of bullish crop reports and trade data prompted buyers to bid up the stock to the low $90s. Hard Assets Investor submits: By Brad Zigler In a recent Desktop article (" Gasoline Welcomes You To Winter "), we celebrated the beginning of winter and marked the 200th anniversary (that's 200 days, mind you) of the equity market low culminating the Great De-leveraging.
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Of the five biggest domestically traded components of the DAXglobal Agribusiness Index-the benchmark tracked by the Market Vectors Agribusiness ETF (NYSE Arca: MOO) -only one scraped its pan in March. Top 5 Domestically Traded MOO Components Stock For most of the year, the price of the Market Vectors fund shares has been rising at a faster pace than those of the PowerShares DB Agriculture Fund (NYSE Arca: DBA) , an exchange-traded portfolio of 11 agricultural futures.
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Of the five biggest domestically traded components of the DAXglobal Agribusiness Index-the benchmark tracked by the Market Vectors Agribusiness ETF (NYSE Arca: MOO) -only one scraped its pan in March. The Market Vectors agribusiness portfolio headed into the Christmas trading break with a 58 percent gain, nearly two and a half times the run-up of the S&P 500: Market Vectors Agribusiness ETF ( MOO ) Underlying the ag sector's buoyancy are continuing concerns about the impact on food prices from growing global populations. Hard Assets Investor submits: By Brad Zigler In a recent Desktop article (" Gasoline Welcomes You To Winter "), we celebrated the beginning of winter and marked the 200th anniversary (that's 200 days, mind you) of the equity market low culminating the Great De-leveraging.
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The Market Vectors agribusiness portfolio headed into the Christmas trading break with a 58 percent gain, nearly two and a half times the run-up of the S&P 500: Market Vectors Agribusiness ETF ( MOO ) Underlying the ag sector's buoyancy are continuing concerns about the impact on food prices from growing global populations. Hard Assets Investor submits: By Brad Zigler In a recent Desktop article (" Gasoline Welcomes You To Winter "), we celebrated the beginning of winter and marked the 200th anniversary (that's 200 days, mind you) of the equity market low culminating the Great De-leveraging. Although the widely followed S&P 500 Composite was the yardstick used to score the market's nadir, that doesn't mean that every issue in the index bottomed on March 6.
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a37df1f5-e9f8-4d90-a117-943e0a5a9dea
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723265.0
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2023-12-12 00:00:00 UTC
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DEA Crosses Above Key Moving Average Level
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DEA
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https://www.nasdaq.com/articles/dea-crosses-above-key-moving-average-level
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nan
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nan
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $13.25, changing hands as high as $13.38 per share. Easterly Government Properties Inc shares are currently trading up about 6% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $10.27 per share, with $16.79 as the 52 week high point — that compares with a last trade of $13.34.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Also see:
ETFs Holding GTT
KMB Historical Stock Prices
LSXM.K shares outstanding history
The views and 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 Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $13.25, changing hands as high as $13.38 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $10.27 per share, with $16.79 as the 52 week high point — that compares with a last trade of $13.34. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: ETFs Holding GTT KMB Historical Stock Prices LSXM.K shares outstanding history The views and 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 Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $13.25, changing hands as high as $13.38 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $10.27 per share, with $16.79 as the 52 week high point — that compares with a last trade of $13.34. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: ETFs Holding GTT KMB Historical Stock Prices LSXM.K shares outstanding history The views and 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 Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $13.25, changing hands as high as $13.38 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $10.27 per share, with $16.79 as the 52 week high point — that compares with a last trade of $13.34. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: ETFs Holding GTT KMB Historical Stock Prices LSXM.K shares outstanding history The views and 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 Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $13.25, changing hands as high as $13.38 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $10.27 per share, with $16.79 as the 52 week high point — that compares with a last trade of $13.34. Easterly Government Properties Inc shares are currently trading up about 6% on the day.
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4c1d8489-b792-46c7-bf32-468fa8ddc8de
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723266.0
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2023-12-07 00:00:00 UTC
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Easterly Government CEO William Trimble Retires, Co-founder Darrell Crate Succeeds
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DEA
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https://www.nasdaq.com/articles/easterly-government-ceo-william-trimble-retires-co-founder-darrell-crate-succeeds
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nan
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nan
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(RTTNews) - Real estate investment trust, Easterly Government Properties, Inc. (DEA), Thursday announced retirement of William Trimble as the Chief Executive Officer, effective December 31.
The company's co-founder and board chairman Darrell Crate has been appointed as new CEO, effective January 1, 2024, the company said in a statement.
Prior to being co-founder, Crate served as CFO of Affiliated Managers Group.
Retaining COO position, current CFO Meghan Baivier will also play the role of company's President, while current CAO Allison Marino will step in the role of CFO.
In pre-market activity, Easterly's shares are moving up by 0.08%, to $12.38, whereas it had closed at $12.37, up 0.05% on Wednesday.
The views and 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) - Real estate investment trust, Easterly Government Properties, Inc. (DEA), Thursday announced retirement of William Trimble as the Chief Executive Officer, effective December 31. Prior to being co-founder, Crate served as CFO of Affiliated Managers Group. Retaining COO position, current CFO Meghan Baivier will also play the role of company's President, while current CAO Allison Marino will step in the role of CFO.
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(RTTNews) - Real estate investment trust, Easterly Government Properties, Inc. (DEA), Thursday announced retirement of William Trimble as the Chief Executive Officer, effective December 31. The company's co-founder and board chairman Darrell Crate has been appointed as new CEO, effective January 1, 2024, the company said in a statement. Prior to being co-founder, Crate served as CFO of Affiliated Managers Group.
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(RTTNews) - Real estate investment trust, Easterly Government Properties, Inc. (DEA), Thursday announced retirement of William Trimble as the Chief Executive Officer, effective December 31. The company's co-founder and board chairman Darrell Crate has been appointed as new CEO, effective January 1, 2024, the company said in a statement. Retaining COO position, current CFO Meghan Baivier will also play the role of company's President, while current CAO Allison Marino will step in the role of CFO.
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(RTTNews) - Real estate investment trust, Easterly Government Properties, Inc. (DEA), Thursday announced retirement of William Trimble as the Chief Executive Officer, effective December 31. The company's co-founder and board chairman Darrell Crate has been appointed as new CEO, effective January 1, 2024, the company said in a statement. Prior to being co-founder, Crate served as CFO of Affiliated Managers Group.
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395a67d7-9720-4ffa-9e41-111820a0eb7c
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723267.0
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2023-11-08 00:00:00 UTC
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4 Dirt-Cheap and High-Yield Stocks to Buy in November
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DEA
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https://www.nasdaq.com/articles/4-dirt-cheap-and-high-yield-stocks-to-buy-in-november
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nan
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nan
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The stock market has taken investors on quite a roller-coaster ride in 2023, and the combination of market volatility and rising interest rates has created some interesting opportunities -- especially when it comes to dividend stocks. In this video, Fool.com contributors Matt Frankel and Tyler Crowe discuss their favorite cheap stocks and their favorite high-yield opportunities.
*Stock prices used were the afternoon prices of Nov. 2, 2023. The video was published on Nov. 7, 2023.
10 stocks we like better than T. Rowe Price Group
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and T. Rowe Price Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
Matthew Frankel, CFP® has positions in Lemonade. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lemonade. The Motley Fool recommends Easterly Government Properties and T. Rowe Price Group. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and T. Rowe Price Group wasn't one of them! The Motley Fool recommends Easterly Government Properties and T. Rowe Price Group.
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In this video, Fool.com contributors Matt Frankel and Tyler Crowe discuss their favorite cheap stocks and their favorite high-yield opportunities. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and T. Rowe Price Group wasn't one of them!
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The stock market has taken investors on quite a roller-coaster ride in 2023, and the combination of market volatility and rising interest rates has created some interesting opportunities -- especially when it comes to dividend stocks. 10 stocks we like better than T. Rowe Price Group When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Matthew Frankel, CFP® has positions in Lemonade.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and T. Rowe Price Group wasn't one of them! See the 10 stocks *Stock Advisor returns as of November 6, 2023 Matthew Frankel, CFP® has positions in Lemonade. The Motley Fool has positions in and recommends Lemonade.
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da9294a3-4bbb-4665-b0d4-9633fa51a3ea
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723268.0
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2023-11-06 00:00:00 UTC
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Ex-Dividend Reminder: MetLife, Easterly Government Properties and Zions Bancorporation
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-metlife-easterly-government-properties-and-zions-bancorporation
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 11/8/23, MetLife Inc (Symbol: MET), Easterly Government Properties Inc (Symbol: DEA), and Zions Bancorporation, N.A. (Symbol: ZION) will all trade ex-dividend for their respective upcoming dividends. MetLife Inc will pay its quarterly dividend of $0.52 on 12/14/23, Easterly Government Properties Inc will pay its quarterly dividend of $0.265 on 11/21/23, and Zions Bancorporation, N.A. will pay its quarterly dividend of $0.41 on 11/16/23. As a percentage of MET's recent stock price of $61.16, this dividend works out to approximately 0.85%, so look for shares of MetLife Inc to trade 0.85% lower — all else being equal — when MET shares open for trading on 11/8/23. Similarly, investors should look for DEA to open 2.28% lower in price and for ZION to open 1.18% lower, all else being equal.
Below are dividend history charts for MET, DEA, and ZION, showing historical dividends prior to the most recent ones declared.
MetLife Inc (Symbol: MET):
Easterly Government Properties Inc (Symbol: DEA):
Zions Bancorporation, N.A. (Symbol: ZION):
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 3.40% for MetLife Inc, 9.11% for Easterly Government Properties Inc, and 4.71% for Zions Bancorporation, N.A..
In Monday trading, MetLife Inc shares are currently down about 1%, Easterly Government Properties Inc shares are off about 0.7%, and Zions Bancorporation, N.A. shares are up about 0.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
Top Ten Hedge Funds Holding DMYQ
Avery Dennison YTD Return
Short Government Debt ETFs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/8/23, MetLife Inc (Symbol: MET), Easterly Government Properties Inc (Symbol: DEA), and Zions Bancorporation, N.A. Similarly, investors should look for DEA to open 2.28% lower in price and for ZION to open 1.18% lower, all else being equal. Below are dividend history charts for MET, DEA, and ZION, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/8/23, MetLife Inc (Symbol: MET), Easterly Government Properties Inc (Symbol: DEA), and Zions Bancorporation, N.A. MetLife Inc (Symbol: MET): Easterly Government Properties Inc (Symbol: DEA): Zions Bancorporation, N.A. Similarly, investors should look for DEA to open 2.28% lower in price and for ZION to open 1.18% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/8/23, MetLife Inc (Symbol: MET), Easterly Government Properties Inc (Symbol: DEA), and Zions Bancorporation, N.A. Similarly, investors should look for DEA to open 2.28% lower in price and for ZION to open 1.18% lower, all else being equal. Below are dividend history charts for MET, DEA, and ZION, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/8/23, MetLife Inc (Symbol: MET), Easterly Government Properties Inc (Symbol: DEA), and Zions Bancorporation, N.A. MetLife Inc (Symbol: MET): Easterly Government Properties Inc (Symbol: DEA): Zions Bancorporation, N.A. Similarly, investors should look for DEA to open 2.28% lower in price and for ZION to open 1.18% lower, all else being equal.
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ffa1f335-692f-4f06-9de8-7e253b7c93f6
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723269.0
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2023-10-31 00:00:00 UTC
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Easterly Government Properties (DEA) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-q3-earnings%3A-taking-a-look-at-key-metrics-versus
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nan
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nan
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For the quarter ended September 2023, Easterly Government Properties (DEA) reported revenue of $72.01 million, down 4% over the same period last year. EPS came in at $0.29, compared to $0.01 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $71.32 million, representing a surprise of +0.97%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.29.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Easterly Government Properties performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Tenant reimbursements: $2.70 million versus the two-analyst average estimate of $1.81 million. The reported number represents a year-over-year change of +67.3%.
Revenues- Rental income: $68.21 million compared to the $68.37 million average estimate based on two analysts. The reported number represents a change of -6.1% year over year.
Diluted Earnings per share: $0.06 versus the three-analyst average estimate of $0.05.
View all Key Company Metrics for Easterly Government Properties here>>>
Shares of Easterly Government Properties have returned -6.9% over the past month versus the Zacks S&P 500 composite's -2.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the quarter ended September 2023, Easterly Government Properties (DEA) reported revenue of $72.01 million, down 4% over the same period last year. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. For the quarter ended September 2023, Easterly Government Properties (DEA) reported revenue of $72.01 million, down 4% over the same period last year. The reported revenue compares to the Zacks Consensus Estimate of $71.32 million, representing a surprise of +0.97%.
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Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. For the quarter ended September 2023, Easterly Government Properties (DEA) reported revenue of $72.01 million, down 4% over the same period last year. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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For the quarter ended September 2023, Easterly Government Properties (DEA) reported revenue of $72.01 million, down 4% over the same period last year. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. The reported revenue compares to the Zacks Consensus Estimate of $71.32 million, representing a surprise of +0.97%.
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3d56c911-5d55-465c-997c-fcdb965e34bc
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723270.0
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2023-10-31 00:00:00 UTC
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Easterly Government Properties (DEA) Q3 FFO Match Estimates
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-q3-ffo-match-estimates
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nan
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nan
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.32 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this property management company would post FFO of $0.29 per share when it actually produced FFO of $0.29, delivering no surprise.
Over the last four quarters, the company has not been able to surpass consensus FFO estimates.
Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $72.01 million for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 0.97%. This compares to year-ago revenues of $75.04 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Easterly Government Properties shares have lost about 26.5% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Easterly Government Properties?
While Easterly Government Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Easterly Government Properties: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.28 on $71.87 million in revenues for the coming quarter and $1.14 on $285.79 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Plymouth Industrial (PLYM), is yet to report results for the quarter ended September 2023. The results are expected to be released on November 2.
This company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Plymouth Industrial's revenues are expected to be $50.59 million, up 5.9% from the year-ago quarter.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
Plymouth Industrial REIT (PLYM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Plymouth Industrial REIT (PLYM) : Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Plymouth Industrial REIT (PLYM) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $72.01 million for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 0.97%.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Plymouth Industrial REIT (PLYM) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $72.01 million for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 0.97%.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Plymouth Industrial REIT (PLYM) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $72.01 million for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 0.97%.
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b9ab5dd3-bd6d-42da-98d5-05976b4cae52
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723271.0
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2023-10-30 00:00:00 UTC
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Welltower (WELL) Q3 FFO and Revenues Beat Estimates
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DEA
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https://www.nasdaq.com/articles/welltower-well-q3-ffo-and-revenues-beat-estimates
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Welltower (WELL) came out with quarterly funds from operations (FFO) of $0.92 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to FFO of $0.84 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of 3.37%. A quarter ago, it was expected that this senior housing and health care real estate investment trust would post FFO of $0.86 per share when it actually produced FFO of $0.90, delivering a surprise of 4.65%.
Over the last four quarters, the company has surpassed consensus FFO estimates four times.
Welltower, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $1.66 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 1.17%. This compares to year-ago revenues of $1.47 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Welltower shares have added about 24.1% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for Welltower?
While Welltower has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Welltower: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.92 on $1.67 billion in revenues for the coming quarter and $3.56 on $6.53 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended September 2023. The results are expected to be released on October 31.
This property management company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -9.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Easterly Government Properties' revenues are expected to be $71.32 million, down 5% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Welltower Inc. (WELL) : Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended September 2023. Click to get this free report Welltower Inc. (WELL) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Click to get this free report Welltower Inc. (WELL) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended September 2023. Welltower, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $1.66 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 1.17%.
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One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended September 2023. Click to get this free report Welltower Inc. (WELL) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Welltower (WELL) came out with quarterly funds from operations (FFO) of $0.92 per share, beating the Zacks Consensus Estimate of $0.89 per share.
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One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended September 2023. Click to get this free report Welltower Inc. (WELL) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the last four quarters, the company has surpassed consensus FFO estimates four times.
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535cb76c-7e6a-4456-a3a5-84cc4d55c539
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723272.0
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2023-10-30 00:00:00 UTC
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Factors to Impact Innovative Industrial's (IIPR) Q3 Earnings
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DEA
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https://www.nasdaq.com/articles/factors-to-impact-innovative-industrials-iipr-q3-earnings
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nan
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nan
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Innovative Industrial Properties, Inc. IIPR, a leading real estate investment trust (REIT) specializing in the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities, is set to announce its third-quarter 2023 earnings on Nov 1 after market close.
In the last reported quarter, Innovative Industrial delivered a surprise of 7.11% in terms of adjusted FFO per share. Results reflected better-than-expected revenues.
Over the last four quarters, IIPR’s adjusted FFO per share surpassed the consensus mark on all occasions, with the average beat being 7.26%. The graph below depicts the surprise history of the company:
Innovative Industrial Properties, Inc. Price and EPS Surprise
Innovative Industrial Properties, Inc. price-eps-surprise | Innovative Industrial Properties, Inc. Quote
Innovative Industrial has grabbed much attention in the past as it combines the high growth potential of the cannabis industry with the stability of the real estate market. In this article, we'll delve into IIPR's performance in recent quarters and analyze the factors that may have contributed to its third-quarter 2023 results.
Factors at Play
Regulatory shifts in the cannabis sector and the growing acceptance of cannabis for medical and recreational purposes are anticipated to have a positive impact on IIPR's performance in the third quarter of 2023.
The acquisition and leasing of new properties and additional building infrastructure allowances provided to tenants at certain properties that resulted in increases in the base rent, tenant reimbursements and contractual rental escalations at certain properties are likely to have benefited Innovative Industrial.
However, continued inflation in input and labor costs is likely to have affected expenses in the quarter under consideration. This, along with pressure on pricing, is likely to have hampered profitability to some extent.
Projections for Q3 2023
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $75.6 million. The figure suggests a rise of 6.7% year over year.
Innovative Industrial Properties’ activities during the quarter in discussion were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the third-quarter FFO per share has remained unrevised at $2.19 in the past month. It suggests a 2.8% increase year over year.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Innovative Industrial Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
Innovative Industrial Properties currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Our model shows that Ventas Inc. VTR and Easterly Government Properties, Inc. DEA have the right combination of elements to report a surprise this quarter.
Ventas is scheduled to report quarterly numbers on Nov 2. VTR has an Earnings ESP of +0.08% and a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Easterly Government Properties is slated to report quarterly numbers on Oct 31. DEA has an Earnings ESP of +1.16% and carries a Zacks Rank of 3 presently.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ventas, Inc. (VTR) : Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
Innovative Industrial Properties, Inc. (IIPR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks That Warrant a Look Our model shows that Ventas Inc. VTR and Easterly Government Properties, Inc. DEA have the right combination of elements to report a surprise this quarter. DEA has an Earnings ESP of +1.16% and carries a Zacks Rank of 3 presently. Click to get this free report Ventas, Inc. (VTR) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Ventas, Inc. (VTR) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks That Warrant a Look Our model shows that Ventas Inc. VTR and Easterly Government Properties, Inc. DEA have the right combination of elements to report a surprise this quarter. DEA has an Earnings ESP of +1.16% and carries a Zacks Rank of 3 presently.
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Click to get this free report Ventas, Inc. (VTR) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks That Warrant a Look Our model shows that Ventas Inc. VTR and Easterly Government Properties, Inc. DEA have the right combination of elements to report a surprise this quarter. DEA has an Earnings ESP of +1.16% and carries a Zacks Rank of 3 presently.
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DEA has an Earnings ESP of +1.16% and carries a Zacks Rank of 3 presently. Stocks That Warrant a Look Our model shows that Ventas Inc. VTR and Easterly Government Properties, Inc. DEA have the right combination of elements to report a surprise this quarter. Click to get this free report Ventas, Inc. (VTR) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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21006ff9-fab1-4f62-9af0-6da22790465d
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723273.0
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2023-10-30 00:00:00 UTC
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3 High-Yield Stocks Worth Buying Hand Over Fist
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https://www.nasdaq.com/articles/3-high-yield-stocks-worth-buying-hand-over-fist
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Higher interest rates have crushed high-yielding dividend stocks. With lower-risk income investments such as bonds and bank CDs now offering higher yields, the values of dividend stocks have fallen. That has pushed up their yields to compensate investors for their higher risk profiles.
There is a silver lining to the sell-off in high-yield dividend stocks. Many offer very enticing yields these days. Simon Property Group (NYSE: SPG), Vici Properties (NYSE: VICI), and Easterly Government Properties (NYSE: DEA) stand out to a few Fool.com contributors for their attractive dividends. Here's why they think investors should buy them hand over fist right now.
Rumors of its death are greatly exaggerated
Jason Hall (Simon Property Group): While rising rates and e-commerce are challenges that Simon Property Group must navigate, the reality of their impact is probably overstated. That's certainly true for e-commerce. In the first half of the year, earnings and funds from operations (FFO) -- a more useful measure of profits for REITs than earnings -- held steady, while its occupancy rate increased to almost 95%. Base rent increased 3%, while retailer sales per square foot were $747. Brands and retailers continue to value and expand their use of Simon's class A properties. As a result of stellar yet still-improving operating results at its properties, Simon raised its full-year FFO outlook.
What about debt? you may ask. Legitimate question, and probably the biggest headwind Simon faces. Over each of the next four years, it will have between $3.9 billion and $4.9 billion in debt maturing, the majority of which it will refinance, and most of it has an average weighted interest rate or around 3.5%. That's going to increase. But with investment-grade credit, Simon should continue to get favorable terms, similar to the $1.3 billion in notes it issued in March, yielding 5.5% and 5.85% and due in 2033 and 2053 respectively. So costs are going up, but not in an onerous way.
Which brings us to the opportunity: At recent prices, Simon's dividend yield is 7.2%, the highest it's been outside of temporary market crashes since the early 2000s, when interest rates were actually higher than they are now:
SPG Dividend Yield data by YCharts
This is an excellent time to buy this premium business while it's on the discount rack.
A low-risk wager with a potentially big payoff
Matt DiLallo (Vici Properties): Vici Properties owns a premier real estate portfolio. The specialty REIT owns some of the most iconic properties along the Las Vegas Strip, including the Venetian, Caesars Palace, and MGM Grand. It owns several other casino properties across the U.S. and Canada and has a growing non-gaming experiential real estate investment portfolio.
It leases these properties back to the operators under long-term net leases that provide it with stable rental income. It targets to pay out 75% of its cash flow to investors via dividends. That gives it some cushion while allowing it to retain cash to make new investments.
Vici Properties' dividend currently yields 6%. That high yield is due to the 20% slide in its stock price from its 52-week high and the REIT's recent 6.4% dividend increase. It has increased its dividend in all six years since its formation.
The REIT's shares have slumped even though it's growing briskly. Its revenue jumped 20.3% to $904.3 million in the third quarter, while its adjusted FFO surged 16.4% to $547.6 million and increased 10.7% on a per-share basis. The company has closed several acquisitions over the past year, including buying its first four gaming properties in Canada.
There's more growth ahead. Vici Properties recently agreed to acquire 38 bowling entertainment centers in a sale-leaseback transaction with Bowlero for $431 million. The deal has embedded growth potential, as Vici has the right of first offer for future sale-leasebacks with Bowlero for the next eight years. The company has several other strategic partnerships that should provide it with new investment opportunities in the future.
That growth should enable Vici Properties to continue increasing its dividend. With its share price down and yield up, it's too good of an opportunity for income-focused investors to pass up right now.
A reliable tenant, stable cash, and a reasonable payout
Tyler Crowe (Easterly Government Properties): One thing I think some investors aren't fully appreciating is the attractiveness of other income-generating assets on the market today. The risk of loss on a 5% yield on a stock are much higher than the risk on a 5% yielding government bond. So if I'm going to take on that additional risk, I want to be adequately compensated with a higher yield. Easterly Government Properties looks like a REIT that can deliver.
As of this writing, the stock has a dividend yield of 10.4% and is down considerably in recent months. That decline has happened in part because the company hasn't been able to deliver much dividend growth in recent years. Its business, leasing buildings to various U.S. government agencies such as the FBI, isn't exactly a high-growth business. Over the past five years, its payout growth has been less than 1% annually.
There's a price for everything, though, and a 10% yield from a business with a high-quality tenant and sufficient cash to cover its payout and pay down some debt appears to be a reasonable trade-off in today's market.
I don't expect Easterly Government Properties to be a high-growth company. That's not the point of owning the stock. What it is, though, is a higher-yielding investment with the financials to support it. For those looking solely for income, Easterly Government Properties looks like it is sufficiently compensating you for the additional risk of owning stock.
10 stocks we like better than Simon Property Group
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Simon Property Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 23, 2023
Jason Hall has positions in Simon Property Group. Matthew DiLallo has positions in Vici Properties. Tyler Crowe has positions in Vici Properties. The Motley Fool recommends Easterly Government Properties, Simon Property Group, and Vici Properties. 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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Simon Property Group (NYSE: SPG), Vici Properties (NYSE: VICI), and Easterly Government Properties (NYSE: DEA) stand out to a few Fool.com contributors for their attractive dividends. Rumors of its death are greatly exaggerated Jason Hall (Simon Property Group): While rising rates and e-commerce are challenges that Simon Property Group must navigate, the reality of their impact is probably overstated. The deal has embedded growth potential, as Vici has the right of first offer for future sale-leasebacks with Bowlero for the next eight years.
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Simon Property Group (NYSE: SPG), Vici Properties (NYSE: VICI), and Easterly Government Properties (NYSE: DEA) stand out to a few Fool.com contributors for their attractive dividends. Rumors of its death are greatly exaggerated Jason Hall (Simon Property Group): While rising rates and e-commerce are challenges that Simon Property Group must navigate, the reality of their impact is probably overstated. The deal has embedded growth potential, as Vici has the right of first offer for future sale-leasebacks with Bowlero for the next eight years.
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Simon Property Group (NYSE: SPG), Vici Properties (NYSE: VICI), and Easterly Government Properties (NYSE: DEA) stand out to a few Fool.com contributors for their attractive dividends. Rumors of its death are greatly exaggerated Jason Hall (Simon Property Group): While rising rates and e-commerce are challenges that Simon Property Group must navigate, the reality of their impact is probably overstated. The deal has embedded growth potential, as Vici has the right of first offer for future sale-leasebacks with Bowlero for the next eight years.
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Simon Property Group (NYSE: SPG), Vici Properties (NYSE: VICI), and Easterly Government Properties (NYSE: DEA) stand out to a few Fool.com contributors for their attractive dividends. Rumors of its death are greatly exaggerated Jason Hall (Simon Property Group): While rising rates and e-commerce are challenges that Simon Property Group must navigate, the reality of their impact is probably overstated. The deal has embedded growth potential, as Vici has the right of first offer for future sale-leasebacks with Bowlero for the next eight years.
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42dff8a0-393c-4f6c-b976-33f6759b3fd3
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723274.0
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2023-10-28 00:00:00 UTC
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If You Like Stag Industrial, You'll Love These Two Alternatives
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https://www.nasdaq.com/articles/if-you-like-stag-industrial-youll-love-these-two-alternatives
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nan
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Stag Industrial (NYSE: STAG) might seem like a great real estate investment trust (REIT) to buy, considering how beaten down it is despite a strong market for industrial real estate. But in this video, you'll hear about two companies that could be even better additions to your portfolio right now.
*Stock prices used were the afternoon prices of Oct. 26, 2023. The video was published on Oct. 26, 2023.
10 stocks we like better than Prologis
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Prologis 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 October 23, 2023
Matthew Frankel, CFP® has no position in any of the stocks mentioned. Tyler Crowe has positions in Prologis. The Motley Fool has positions in and recommends Prologis and Stag Industrial. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy.
Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel.
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Stag Industrial (NYSE: STAG) might seem like a great real estate investment trust (REIT) to buy, considering how beaten down it is despite a strong market for industrial real estate. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Prologis and Stag Industrial.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Prologis and Stag Industrial.
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That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Prologis and Stag Industrial.
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97d1e538-3636-4fbe-bb7e-71aa8d67f94e
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723275.0
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2023-10-26 00:00:00 UTC
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Evans Bancorp (EVBN) Misses Q3 Earnings and Revenue Estimates
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DEA
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https://www.nasdaq.com/articles/evans-bancorp-evbn-misses-q3-earnings-and-revenue-estimates
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nan
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nan
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Evans Bancorp (EVBN) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -8.33%. A quarter ago, it was expected that this bank would post earnings of $0.66 per share when it actually produced earnings of $0.90, delivering a surprise of 36.36%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Evans Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $19.81 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 3.83%. This compares to year-ago revenues of $24.96 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Evans Bancorp shares have lost about 31.1% since the beginning of the year versus the S&P 500's gain of 9%.
What's Next for Evans Bancorp?
While Evans Bancorp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Evans Bancorp: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $19.53 million in revenues for the coming quarter and $3.24 on $81.94 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Finance sector, Easterly Government Properties (DEA), has yet to report results for the quarter ended September 2023. The results are expected to be released on October 31.
This property management company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -9.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Easterly Government Properties' revenues are expected to be $71.32 million, down 5% from the year-ago quarter.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Evans Bancorp, Inc. (EVBN) : Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another stock from the broader Zacks Finance sector, Easterly Government Properties (DEA), has yet to report results for the quarter ended September 2023. Click to get this free report Evans Bancorp, Inc. (EVBN) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Click to get this free report Evans Bancorp, Inc. (EVBN) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the broader Zacks Finance sector, Easterly Government Properties (DEA), has yet to report results for the quarter ended September 2023. Evans Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $19.81 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 3.83%.
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Click to get this free report Evans Bancorp, Inc. (EVBN) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the broader Zacks Finance sector, Easterly Government Properties (DEA), has yet to report results for the quarter ended September 2023. Evans Bancorp (EVBN) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.72 per share.
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Another stock from the broader Zacks Finance sector, Easterly Government Properties (DEA), has yet to report results for the quarter ended September 2023. Click to get this free report Evans Bancorp, Inc. (EVBN) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Evans Bancorp (EVBN) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.72 per share.
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dd556975-c469-4afc-972f-588704b35b33
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723276.0
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2023-10-18 00:00:00 UTC
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Easterly Government Properties REIT (NYSE:DEA): 9.6% Yield Backed by U.S. Agencies
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-reit-nyse%3Adea%3A-9.6-yield-backed-by-u.s.-agencies
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nan
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nan
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Easterly Government Properties stock (NYSE:DEA) recently hit record lows, resulting in its dividend yield climbing to a hefty 9.6%. With a portfolio of 89 purpose-built properties leased to key U.S. agencies such as the FBI, DEA, ICE, and FDA, among others, Easterly Government is a distinctive REIT in the sector. While prevailing macroeconomic challenges justify the stock's prolonged decline, the REIT's one-of-a-kind qualities should continue generating strong income for investors. Thus, I am bullish on the stock.
What are Easterly Government's One-of-a-Kind Qualities?
Before discussing Easterly Government's dividend, it's essential to appreciate the distinctive qualities that set this company apart. These attributes play a pivotal role in shaping the company's prospects, including the quality of its dividends.
For those unacquainted with Easterly Government, the company specializes in providing mission-critical properties to various U.S. government agencies. As mentioned earlier, the company owns 89 operational properties in the United States, primarily leased to agencies such as the Federal Bureau of Investigation (FBI), the U.S. Department of Veterans Affairs (VA), the Defense Health Agency (DHA), the Environmental Protection Agency (EPA), and the U.S. Citizenship & Immigration Services (USCIS).
Therefore, a staggering 98.5% of its annualized lease income is secured by the full faith and credit of the U.S. government.
The immense advantages of having the U.S. government as your sole tenant create a formidable moat. The key differentiator setting Easterly Government apart from typical real estate investment trusts (REITs) lies in the unwavering faith and credit of Uncle Sam. The U.S. government stands as one of the most dependable creditors globally, having never defaulted on its obligations. Thus, the REIT essentially faces no counterparty risk.
Also, it is safe to say that no matter the underlying conditions, the agencies Easterly Government leases its properties to will never go away. They are fundamental for vital operations and national security. Thus, along with no counterparty risk, the company also enjoys no vacancy risk.
These arguments are evident by the fact that since its IPO, Easterly Government has consistently maintained a near 100% occupancy ratio, underscoring the resilience of its operations. The mission-critical nature of its properties is also apparent in agencies opting for long-term leases, evident in Easterly Government's impressive weighted average remaining lease term of 10.4 years. With full occupancy and exceptional leases, the company showcases remarkable predictability and superior cash-flow quality.
Finally, as a pioneering force within its niche sector, the company has cultivated profound know-how of the intricate General Services Administration (GSA) appropriation process, protocols, and organizational culture. Management not only comprehends the intricacies of missions and the hierarchical structures of tenant agencies but has also forged distinctive relationships. Because of this and the high barriers to entry in the GSA space, the company's competitive advantage and overall solidity are further reinforced.
How Safe is Easterly Government's 9.6%-Yielding Dividend?
With shares of Easterly Government plunging in recent months, it's no wonder investors are questioning the safety of the stock's hefty 9.6% dividend yield. Well, in my view, the company's dividend is quite safe, backed by the unique qualities discussed earlier. The stock's high yield on Wall Street is likely a reaction to concerns about elevated interest rates hampering growth prospects, leading to an emphasis on dividends for returns.
However, there is something important to note here: Easterly Government's exceptional qualities have garnered favor from creditors, with 97.7% of its debt fixed at advantageous rates and extended maturities. Despite widespread interest rate increases, the company's Q2 interest expenses rose only by 2%. For context, most REITs have experienced spikes anywhere from 30% to 100% during this period. Still, elevated interest rates may pose a hurdle to the company's growth prospects by discouraging additional financing.
Another factor that diminishes Easterly Government's growth prospects is the enduring nature of its long-term leases. Despite containing modest periodic adjustments, the extended duration of these leases—often spanning a decade or more—restricts the company's ability to revisit and renegotiate terms for an extended period. In opting for prolonged leases, the company has prioritized added security and predictability, albeit at the expense of leasing rate growth opportunities.
In the meantime, however, Easterly Government should have no issue covering its current level of payouts. The $1.06 annualized dividend should remain covered by its core funds from operations per share (FFO/share, a cash-flow metric used by REITs), which management expects to land in a range of $1.13 to $1.15 for Fiscal 2023.
Is DEA Stock a Buy, According to Analysts?
Turning to Wall Street, Easterly Government has a Hold consensus rating based on one Buy, one Hold, and two Sells assigned in the past three months. At $14.25, the average DEA stock forecast implies 26% upside potential.
Conclusion
In conclusion, Easterly Government Properties stands out as a compelling high-yield opportunity in the real estate sector. The company's mission-critical properties leased to U.S. government agencies, secured by the full faith and credit of the U.S. government, provide an unparalleled moat and insulate it from counterparty and vacancy risks.
With a near-100% occupancy ratio, impressive lease terms, and deep know-how of the GSA's intricacies, Easterly Government has proven its resilience and competitive advantage.
The safety of Easterly Government's 9.6% dividend yield is underpinned by these qualities and favorable debt terms. While concerns about interest rate hikes may impact growth prospects, the company's ability to cover its dividends should remain solid remains solid. Thus, income-oriented investors are likely to find the stock suitable for their needs.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties stock (NYSE:DEA) recently hit record lows, resulting in its dividend yield climbing to a hefty 9.6%. With a portfolio of 89 purpose-built properties leased to key U.S. agencies such as the FBI, DEA, ICE, and FDA, among others, Easterly Government is a distinctive REIT in the sector. Is DEA Stock a Buy, According to Analysts?
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Easterly Government Properties stock (NYSE:DEA) recently hit record lows, resulting in its dividend yield climbing to a hefty 9.6%. With a portfolio of 89 purpose-built properties leased to key U.S. agencies such as the FBI, DEA, ICE, and FDA, among others, Easterly Government is a distinctive REIT in the sector. Is DEA Stock a Buy, According to Analysts?
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Easterly Government Properties stock (NYSE:DEA) recently hit record lows, resulting in its dividend yield climbing to a hefty 9.6%. With a portfolio of 89 purpose-built properties leased to key U.S. agencies such as the FBI, DEA, ICE, and FDA, among others, Easterly Government is a distinctive REIT in the sector. Is DEA Stock a Buy, According to Analysts?
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Easterly Government Properties stock (NYSE:DEA) recently hit record lows, resulting in its dividend yield climbing to a hefty 9.6%. With a portfolio of 89 purpose-built properties leased to key U.S. agencies such as the FBI, DEA, ICE, and FDA, among others, Easterly Government is a distinctive REIT in the sector. Is DEA Stock a Buy, According to Analysts?
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827f5305-f026-42ba-814e-4972a0949e68
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723277.0
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2023-10-13 00:00:00 UTC
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Easterly Government Properties Becomes Oversold
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-becomes-oversold
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Easterly Government Properties Inc (Symbol: DEA) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DEA entered into oversold territory, changing hands as low as $11.04 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Easterly Government Properties Inc, the RSI reading has hit 29.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 43.4. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 9.45% based upon the recent $11.22 share price.
A bullish investor could look at DEA's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEA is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
Also see:
Technology Stocks Hedge Funds Are Selling
QADB YTD Return
CHIS Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at DEA's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Easterly Government Properties Inc (Symbol: DEA) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DEA entered into oversold territory, changing hands as low as $11.04 per share.
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Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 9.45% based upon the recent $11.22 share price. Easterly Government Properties Inc (Symbol: DEA) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DEA entered into oversold territory, changing hands as low as $11.04 per share.
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Easterly Government Properties Inc (Symbol: DEA) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DEA entered into oversold territory, changing hands as low as $11.04 per share. Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 9.45% based upon the recent $11.22 share price.
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But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DEA entered into oversold territory, changing hands as low as $11.04 per share. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEA is its dividend history. Easterly Government Properties Inc (Symbol: DEA) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
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11189bc5-3924-4505-8080-82f0a8d7c631
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723278.0
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2023-09-22 00:00:00 UTC
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First Week of DEA October 20th Options Trading
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DEA
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https://www.nasdaq.com/articles/first-week-of-dea-october-20th-options-trading
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nan
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nan
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Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the October 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new October 20th contracts and identified the following call contract of particular interest.
The call contract at the $12.50 strike price has a current bid of 15 cents. If an investor was to purchase shares of DEA stock at the current price level of $12.12/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $12.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.37% if the stock gets called away at the October 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DEA shares really soar, which is why looking at the trailing twelve month trading history for Easterly Government Properties Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DEA's trailing twelve month trading history, with the $12.50 strike highlighted in red:
Considering the fact that the $12.50 strike represents an approximate 3% 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 65%. 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 1.24% boost of extra return to the investor, or 16.13% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 33%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $12.12) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the REITs »
Also see:
ICLK Insider Buying
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AVD Dividend History
The views and 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 DEA shares really soar, which is why looking at the trailing twelve month trading history for Easterly Government Properties Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DEA's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 3% 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 Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the October 20th expiration.
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Of course, a lot of upside could potentially be left on the table if DEA shares really soar, which is why looking at the trailing twelve month trading history for Easterly Government Properties Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DEA's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 3% 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 Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the October 20th expiration.
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If an investor was to purchase shares of DEA stock at the current price level of $12.12/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $12.50. Below is a chart showing DEA's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 3% 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 Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the October 20th expiration.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new October 20th contracts and identified the following call contract of particular interest. Below is a chart showing DEA's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 3% 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 Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the October 20th expiration.
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723fd85c-b2f5-4913-83a1-48cdff020f45
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723279.0
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2023-09-07 00:00:00 UTC
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RSI Alert: Easterly Government Properties Now Oversold
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DEA
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https://www.nasdaq.com/articles/rsi-alert%3A-easterly-government-properties-now-oversold
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Easterly Government Properties Inc (Symbol: DEA) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEA entered into oversold territory, changing hands as low as $12.955 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Easterly Government Properties Inc, the RSI reading has hit 29.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 43.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 8.04% based upon the recent $13.18 share price.
A bullish investor could look at DEA's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEA is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out what 9 other oversold dividend stocks you need to know about »
Also see:
General Dynamics Stock Split History
PEAK Dividend History
NEPH shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at DEA's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Easterly Government Properties Inc (Symbol: DEA) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEA entered into oversold territory, changing hands as low as $12.955 per share.
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Easterly Government Properties Inc (Symbol: DEA) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEA entered into oversold territory, changing hands as low as $12.955 per share. Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 8.04% based upon the recent $13.18 share price.
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Easterly Government Properties Inc (Symbol: DEA) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEA entered into oversold territory, changing hands as low as $12.955 per share. Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 8.04% based upon the recent $13.18 share price.
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Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEA is its dividend history. Easterly Government Properties Inc (Symbol: DEA) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEA entered into oversold territory, changing hands as low as $12.955 per share.
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4bca8886-a82f-41a7-b3bc-ade37255089d
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723280.0
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2023-08-21 00:00:00 UTC
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DEA Dividend Yield Pushes Above 8%
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DEA
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https://www.nasdaq.com/articles/dea-dividend-yield-pushes-above-8
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 8% mark based on its quarterly dividend (annualized to $1.06), with the stock changing hands as low as $13.21 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 8% would appear considerably attractive if that yield is sustainable. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 8% annual yield.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks just recently went on sale »
Also see:
Stocks Crossing Below Their 200 Day Moving Average
VIAV Videos
Funds Holding OBOR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 8% mark based on its quarterly dividend (annualized to $1.06), with the stock changing hands as low as $13.21 on the day. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 8% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 8% mark based on its quarterly dividend (annualized to $1.06), with the stock changing hands as low as $13.21 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 8% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 8% mark based on its quarterly dividend (annualized to $1.06), with the stock changing hands as low as $13.21 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 8% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 8% mark based on its quarterly dividend (annualized to $1.06), with the stock changing hands as low as $13.21 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 8% annual yield.
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f940fbdf-73d1-4111-816d-7c9370d9d804
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723281.0
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2023-08-21 00:00:00 UTC
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Easterly Government Properties (DEA) Upgraded to Buy: Here's What You Should Know
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-upgraded-to-buy%3A-heres-what-you-should-know
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nan
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nan
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Easterly Government Properties (DEA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Easterly Government Properties is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Easterly Government Properties imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Easterly Government Properties
This property management company is expected to earn $1.14 per share for the fiscal year ending December 2023, which represents a year-over-year change of -9.5%.
Analysts have been steadily raising their estimates for Easterly Government Properties. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.3%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Easterly Government Properties to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. As such, the Zacks rating upgrade for Easterly Government Properties is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
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Easterly Government Properties (DEA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated.
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Easterly Government Properties (DEA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated.
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Easterly Government Properties (DEA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding.
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c25917fd-f846-4250-ac45-493e09fe6297
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723282.0
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2023-08-16 00:00:00 UTC
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Why Easterly Government Properties Stock Is Falling Today
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DEA
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https://www.nasdaq.com/articles/why-easterly-government-properties-stock-is-falling-today
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nan
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nan
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What happened
Easterly Government Properties (NYSE: DEA) received a downgrade from Wall Street, reviving concerns about the commercial office property owner's ability to continue to fund its dividend. Shares of Easterly sagged as a result, falling by as much as 6% in Wednesday trading.
So what
Easterly Government Properties (DEA), as the name implies, is a real estate investment trust (REIT) that is focused on leasing to U.S. government customers. REITs have been hit hard this year, and office REITs in particular, due to investor fears that a combination of rising interest rates and more flexible working arrangements post-pandemic would eat into margins.
Easterly is no exception, down 28% over the past year.
RBC Capital Markets analyst Michael Carroll believes things could get worse before they get better. The analyst cut Easterly to underperform from sector perform, noting that Easterly trades at a higher multiple than most office REITs yet "has higher leverage, and a weaker growth outlook."
The analyst warned that earnings run rate could trend lower, in part due to the rollover in interest-rate swaps, which could pressure a dividend that currently yields an enticing 7.76%.
Now what
The downgrade comes just a week after DEA raised full-year guidance and said it sees opportunities to expand from here. Chairman Darrell Crate said, "with both the consistency of cash flow from our existing portfolio and the current growth prospects, we look forward to delivering consistent and growing dividends over time to our shareholders."
Of course, those best-laid plans could never come to be if the economy softens. Easterly is valued above other office REITs in part because the government is a pretty reliable bill payer, and investors are wagering that even if there is shrinking demand for office space due to a recession, city hall is likely to remain intact.
If that proves to be true, long-term-focused investors could do well buying into Easterly today.
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Lou Whiteman has positions in Easterly Government Properties. The Motley Fool recommends Easterly Government Properties. 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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Now what The downgrade comes just a week after DEA raised full-year guidance and said it sees opportunities to expand from here. What happened Easterly Government Properties (NYSE: DEA) received a downgrade from Wall Street, reviving concerns about the commercial office property owner's ability to continue to fund its dividend. So what Easterly Government Properties (DEA), as the name implies, is a real estate investment trust (REIT) that is focused on leasing to U.S. government customers.
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So what Easterly Government Properties (DEA), as the name implies, is a real estate investment trust (REIT) that is focused on leasing to U.S. government customers. What happened Easterly Government Properties (NYSE: DEA) received a downgrade from Wall Street, reviving concerns about the commercial office property owner's ability to continue to fund its dividend. Now what The downgrade comes just a week after DEA raised full-year guidance and said it sees opportunities to expand from here.
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What happened Easterly Government Properties (NYSE: DEA) received a downgrade from Wall Street, reviving concerns about the commercial office property owner's ability to continue to fund its dividend. So what Easterly Government Properties (DEA), as the name implies, is a real estate investment trust (REIT) that is focused on leasing to U.S. government customers. Now what The downgrade comes just a week after DEA raised full-year guidance and said it sees opportunities to expand from here.
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What happened Easterly Government Properties (NYSE: DEA) received a downgrade from Wall Street, reviving concerns about the commercial office property owner's ability to continue to fund its dividend. So what Easterly Government Properties (DEA), as the name implies, is a real estate investment trust (REIT) that is focused on leasing to U.S. government customers. Now what The downgrade comes just a week after DEA raised full-year guidance and said it sees opportunities to expand from here.
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c46190ae-54da-49fa-987c-b5a0601eaba2
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723283.0
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2023-08-16 00:00:00 UTC
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Easterly Government Properties is Oversold
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-is-oversold-0
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Easterly Government Properties Inc (Symbol: DEA) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DEA entered into oversold territory, changing hands as low as $13.45 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Easterly Government Properties Inc, the RSI reading has hit 29.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 45.5. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 7.32% based upon the recent $14.49 share price.
A bullish investor could look at DEA's 29.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEA is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
Also see:
Top Ten Hedge Funds Holding APRT
ETFs Holding FDC
INFO Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at DEA's 29.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Easterly Government Properties Inc (Symbol: DEA) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DEA entered into oversold territory, changing hands as low as $13.45 per share.
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Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 7.32% based upon the recent $14.49 share price. Easterly Government Properties Inc (Symbol: DEA) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DEA entered into oversold territory, changing hands as low as $13.45 per share.
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Easterly Government Properties Inc (Symbol: DEA) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DEA entered into oversold territory, changing hands as low as $13.45 per share. Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 7.32% based upon the recent $14.49 share price.
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Indeed, DEA's recent annualized dividend of 1.06/share (currently paid in quarterly installments) works out to an annual yield of 7.32% based upon the recent $14.49 share price. Easterly Government Properties Inc (Symbol: DEA) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Easterly Government Properties Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DEA entered into oversold territory, changing hands as low as $13.45 per share.
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bc0cb1f7-e974-425c-bb0e-de03a6335288
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723284.0
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2023-08-14 00:00:00 UTC
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Peter Lynch Detailed Fundamental Analysis - DEA
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DEA
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https://www.nasdaq.com/articles/peter-lynch-detailed-fundamental-analysis-dea-0
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nan
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nan
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
EASTERLY GOVERNMENT PROPERTIES INC (DEA) is a small-cap growth stock in the Real Estate Operations industry. The rating using this strategy is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC
DEA Guru Analysis
DEA Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
Additional Research Links
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Factor-Based Stock Portfolios
Dividend Aristocrats 2023
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Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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EASTERLY GOVERNMENT PROPERTIES INC (DEA) is a small-cap growth stock in the Real Estate Operations industry. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA).
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time.
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Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks Excess Returns Investing Podcast About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends.
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time.
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8dfa8a90-c646-4021-9b26-0949b630599d
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723285.0
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2023-08-14 00:00:00 UTC
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Ex-Dividend Reminder: Newmark Group, KKR and Easterly Government Properties
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-newmark-group-kkr-and-easterly-government-properties
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 8/16/23, Newmark Group Inc (Symbol: NMRK), KKR & CO Inc (Symbol: KKR), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Newmark Group Inc will pay its quarterly dividend of $0.03 on 8/31/23, KKR & CO Inc will pay its quarterly dividend of $0.165 on 8/31/23, and Easterly Government Properties Inc will pay its quarterly dividend of $0.265 on 8/29/23. As a percentage of NMRK's recent stock price of $7.52, this dividend works out to approximately 0.40%, so look for shares of Newmark Group Inc to trade 0.40% lower — all else being equal — when NMRK shares open for trading on 8/16/23. Similarly, investors should look for KKR to open 0.27% lower in price and for DEA to open 1.78% lower, all else being equal.
Below are dividend history charts for NMRK, KKR, and DEA, showing historical dividends prior to the most recent ones declared.
Newmark Group Inc (Symbol: NMRK):
KKR & CO Inc (Symbol: KKR):
Easterly Government Properties Inc (Symbol: DEA):
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 1.60% for Newmark Group Inc, 1.07% for KKR & CO Inc, and 7.14% for Easterly Government Properties Inc.
In Monday trading, Newmark Group Inc shares are currently down about 1.8%, KKR & CO Inc shares are off about 0.6%, and Easterly Government Properties Inc shares are down about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
Funds Holding FAV
Top Ten Hedge Funds Holding FLF
ETFs Holding EXEL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/16/23, Newmark Group Inc (Symbol: NMRK), KKR & CO Inc (Symbol: KKR), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for KKR to open 0.27% lower in price and for DEA to open 1.78% lower, all else being equal. Below are dividend history charts for NMRK, KKR, and DEA, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/16/23, Newmark Group Inc (Symbol: NMRK), KKR & CO Inc (Symbol: KKR), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Newmark Group Inc (Symbol: NMRK): KKR & CO Inc (Symbol: KKR): Easterly Government Properties Inc (Symbol: DEA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for KKR to open 0.27% lower in price and for DEA to open 1.78% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/16/23, Newmark Group Inc (Symbol: NMRK), KKR & CO Inc (Symbol: KKR), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Newmark Group Inc (Symbol: NMRK): KKR & CO Inc (Symbol: KKR): Easterly Government Properties Inc (Symbol: DEA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for KKR to open 0.27% lower in price and for DEA to open 1.78% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/16/23, Newmark Group Inc (Symbol: NMRK), KKR & CO Inc (Symbol: KKR), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for KKR to open 0.27% lower in price and for DEA to open 1.78% lower, all else being equal. Below are dividend history charts for NMRK, KKR, and DEA, showing historical dividends prior to the most recent ones declared.
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925923fd-5ca4-4cd0-a169-dbda38d1c4d6
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723286.0
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2023-08-08 00:00:00 UTC
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Easterly Government Properties (DEA) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-q2-earnings%3A-how-key-metrics-compare-to-wall-street
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nan
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nan
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Easterly Government Properties (DEA) reported $71.37 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.9%. EPS of $0.29 for the same period compares to $0.08 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $70.64 million, representing a surprise of +1.03%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.29.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Easterly Government Properties performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Tenant reimbursements: $2.50 million versus $1.40 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +172.9% change.
Revenues- Rental income: $67.76 million versus $68.01 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -4.8% change.
Diluted Earnings per share: $0.05 versus the three-analyst average estimate of $0.05.
View all Key Company Metrics for Easterly Government Properties here>>>
Shares of Easterly Government Properties have returned +0.6% over the past month versus the Zacks S&P 500 composite's +2.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA) reported $71.37 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.9%. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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Easterly Government Properties (DEA) reported $71.37 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.9%. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Easterly Government Properties performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Tenant reimbursements: $2.50 million versus $1.40 million estimated by two analysts on average.
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Easterly Government Properties (DEA) reported $71.37 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.9%. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. The reported revenue compares to the Zacks Consensus Estimate of $70.64 million, representing a surprise of +1.03%.
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Easterly Government Properties (DEA) reported $71.37 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.9%. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Easterly Government Properties performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Tenant reimbursements: $2.50 million versus $1.40 million estimated by two analysts on average.
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427b59c6-41b5-4167-b104-724321670e18
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723287.0
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2023-08-08 00:00:00 UTC
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Easterly Government Properties (DEA) Q2 FFO Match Estimates
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-q2-ffo-match-estimates
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nan
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nan
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.33 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this property management company would post FFO of $0.29 per share when it actually produced FFO of $0.29, delivering no surprise.
Over the last four quarters, the company has not been able to surpass consensus FFO estimates.
Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $71.37 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.03%. This compares to year-ago revenues of $72.76 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Easterly Government Properties shares have added about 3.3% since the beginning of the year versus the S&P 500's gain of 17.7%.
What's Next for Easterly Government Properties?
While Easterly Government Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Easterly Government Properties: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.28 on $70.87 million in revenues for the coming quarter and $1.14 on $283.81 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Modiv Inc. (MDV), is yet to report results for the quarter ended June 2023.
This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -5.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Modiv Inc.'s revenues are expected to be $11.93 million, up 14.8% from the year-ago quarter.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
Modiv Inc. (MDV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Modiv Inc. (MDV) : Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Modiv Inc. (MDV) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $71.37 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.03%.
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Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Modiv Inc. (MDV) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $71.37 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.03%.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.29 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report Modiv Inc. (MDV) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $71.37 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.03%.
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90cbd019-2750-4081-b30e-e31711abdc29
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723288.0
|
2023-08-07 00:00:00 UTC
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Service Properties (SVC) Meets Q2 FFO Estimates
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DEA
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https://www.nasdaq.com/articles/service-properties-svc-meets-q2-ffo-estimates
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nan
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nan
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Service Properties (SVC) came out with quarterly funds from operations (FFO) of $0.58 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.54 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this real estate investment trust would post FFO of $0.29 per share when it actually produced FFO of $0.23, delivering a surprise of -20.69%.
Over the last four quarters, the company has surpassed consensus FFO estimates two times.
Service Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $503.78 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $515.78 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Service Properties shares have added about 12.6% since the beginning of the year versus the S&P 500's gain of 16.6%.
What's Next for Service Properties?
While Service Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Service Properties: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.60 on $501.13 million in revenues for the coming quarter and $1.84 on $1.87 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. The results are expected to be released on August 8.
This property management company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -12.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Easterly Government Properties' revenues are expected to be $70.64 million, down 2.9% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Service Properties Trust (SVC) : Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Click to get this free report Service Properties Trust (SVC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Click to get this free report Service Properties Trust (SVC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Service Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $503.78 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 0.57%.
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Click to get this free report Service Properties Trust (SVC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Service Properties (SVC) came out with quarterly funds from operations (FFO) of $0.58 per share, in line with the Zacks Consensus Estimate.
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Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Click to get this free report Service Properties Trust (SVC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the last four quarters, the company has surpassed consensus FFO estimates two times.
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000ba774-8398-4f9c-8d6a-f3d0fb435807
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723289.0
|
2023-08-03 00:00:00 UTC
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City Office REIT (CIO) Matches Q2 FFO Estimates
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DEA
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https://www.nasdaq.com/articles/city-office-reit-cio-matches-q2-ffo-estimates
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nan
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nan
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City Office REIT (CIO) came out with quarterly funds from operations (FFO) of $0.35 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.40 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this real estate investment trust would post FFO of $0.36 per share when it actually produced FFO of $0.37, delivering a surprise of 2.78%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
City Office REIT, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $44.6 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.63%. This compares to year-ago revenues of $45.5 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
City Office REIT shares have lost about 36.3% since the beginning of the year versus the S&P 500's gain of 17.6%.
What's Next for City Office REIT?
While City Office REIT has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for City Office REIT: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.34 on $42.68 million in revenues for the coming quarter and $1.39 on $175 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Easterly Government Properties (DEA), another stock in the same industry, has yet to report results for the quarter ended June 2023. The results are expected to be released on August 8.
This property management company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -12.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Easterly Government Properties' revenues are expected to be $70.64 million, down 2.9% from the year-ago quarter.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
City Office REIT, Inc. (CIO) : Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA), another stock in the same industry, has yet to report results for the quarter ended June 2023. Click to get this free report City Office REIT, Inc. (CIO) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Click to get this free report City Office REIT, Inc. (CIO) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties (DEA), another stock in the same industry, has yet to report results for the quarter ended June 2023. City Office REIT, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $44.6 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.63%.
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Click to get this free report City Office REIT, Inc. (CIO) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties (DEA), another stock in the same industry, has yet to report results for the quarter ended June 2023. City Office REIT (CIO) came out with quarterly funds from operations (FFO) of $0.35 per share, in line with the Zacks Consensus Estimate.
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Easterly Government Properties (DEA), another stock in the same industry, has yet to report results for the quarter ended June 2023. Click to get this free report City Office REIT, Inc. (CIO) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. City Office REIT (CIO) came out with quarterly funds from operations (FFO) of $0.35 per share, in line with the Zacks Consensus Estimate.
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36466bc9-1a9f-4551-bb50-ced0c4934a8e
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723290.0
|
2023-08-01 00:00:00 UTC
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Boston Properties (BXP) Q2 FFO and Revenues Beat Estimates
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DEA
|
https://www.nasdaq.com/articles/boston-properties-bxp-q2-ffo-and-revenues-beat-estimates
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nan
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nan
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Boston Properties (BXP) came out with quarterly funds from operations (FFO) of $1.86 per share, beating the Zacks Consensus Estimate of $1.80 per share. This compares to FFO of $1.94 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of 3.33%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.70 per share when it actually produced FFO of $1.73, delivering a surprise of 1.76%.
Over the last four quarters, the company has surpassed consensus FFO estimates four times.
Boston Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $761.73 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.18%. This compares to year-ago revenues of $721.9 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Boston Properties shares have lost about 1.4% since the beginning of the year versus the S&P 500's gain of 19.5%.
What's Next for Boston Properties?
While Boston Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Boston Properties: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $1.80 on $757.89 million in revenues for the coming quarter and $7.16 on $3.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. The results are expected to be released on August 8.
This property management company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -12.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Easterly Government Properties' revenues are expected to be $70.64 million, down 2.9% from the year-ago quarter.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Boston Properties, Inc. (BXP) : Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Click to get this free report Boston Properties, Inc. (BXP) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Click to get this free report Boston Properties, Inc. (BXP) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Boston Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $761.73 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.18%.
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Click to get this free report Boston Properties, Inc. (BXP) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Boston Properties (BXP) came out with quarterly funds from operations (FFO) of $1.86 per share, beating the Zacks Consensus Estimate of $1.80 per share.
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Another stock from the same industry, Easterly Government Properties (DEA), has yet to report results for the quarter ended June 2023. Click to get this free report Boston Properties, Inc. (BXP) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
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80873d7d-a99b-4f51-8923-7fac058d474d
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723291.0
|
2023-07-28 00:00:00 UTC
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W.P. Carey (WPC) Q2 FFO and Revenues Top Estimates
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DEA
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https://www.nasdaq.com/articles/w.p.-carey-wpc-q2-ffo-and-revenues-top-estimates
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nan
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nan
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W.P. Carey (WPC) came out with quarterly funds from operations (FFO) of $1.36 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to FFO of $1.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of 2.26%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.32 per share when it actually produced FFO of $1.31, delivering a surprise of -0.76%.
Over the last four quarters, the company has surpassed consensus FFO estimates two times.
W.P. Carey, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $452.58 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 2.31%. This compares to year-ago revenues of $344.4 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
W.P. Carey shares have lost about 8.7% since the beginning of the year versus the S&P 500's gain of 18.2%.
What's Next for W.P. Carey?
While W.P. Carey has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for W.P. Carey: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $1.36 on $456.83 million in revenues for the coming quarter and $5.36 on $1.79 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended June 2023. The results are expected to be released on August 8.
This property management company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -12.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Easterly Government Properties' revenues are expected to be $70.64 million, down 2.9% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
W.P. Carey Inc. (WPC) : Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended June 2023. Carey Inc. (WPC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Carey Inc. (WPC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended June 2023. Carey, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $452.58 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 2.31%.
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One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended June 2023. Carey Inc. (WPC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Carey (WPC) came out with quarterly funds from operations (FFO) of $1.36 per share, beating the Zacks Consensus Estimate of $1.33 per share.
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One other stock from the same industry, Easterly Government Properties (DEA), is yet to report results for the quarter ended June 2023. Carey Inc. (WPC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report To read this article on Zacks.com click here. Carey (WPC) came out with quarterly funds from operations (FFO) of $1.36 per share, beating the Zacks Consensus Estimate of $1.33 per share.
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6533c72e-4035-4bdc-ba41-9b49eda9c8cb
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723292.0
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2023-07-05 00:00:00 UTC
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DEA Factor-Based Stock Analysis - Peter Lynch
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DEA
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https://www.nasdaq.com/articles/dea-factor-based-stock-analysis-peter-lynch
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nan
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nan
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
EASTERLY GOVERNMENT PROPERTIES INC (DEA) is a small-cap growth stock in the Real Estate Operations industry. The rating using this strategy is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC
DEA Guru Analysis
DEA Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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EASTERLY GOVERNMENT PROPERTIES INC (DEA) is a small-cap growth stock in the Real Estate Operations industry. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA).
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time.
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Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks Excess Returns Investing Podcast About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends.
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time.
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df9e4010-5676-4ffa-bf33-e66fcfb794db
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723293.0
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2023-06-24 00:00:00 UTC
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2 Better Dividend Stocks to Buy Than Verizon or AT&T
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DEA
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https://www.nasdaq.com/articles/2-better-dividend-stocks-to-buy-than-verizon-or-att
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nan
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Many investors are attracted to the high dividend yields of telecom giants Verizon (NYSE: VZ) and AT&T (NYSE: T), but the reality is that these stocks haven't delivered strong total returns for investors in recent years. If you're seeking dividend income, here are two stocks you may want to consider instead.
*Stock prices used were the afternoon prices of June 22, 2023. The video was published on June 23, 2023.
10 stocks we like better than Easterly Government Properties
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Easterly Government Properties wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 12, 2023
Matthew Frankel, CFP® has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool recommends Easterly Government Properties and Verizon Communications. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Many investors are attracted to the high dividend yields of telecom giants Verizon (NYSE: VZ) and AT&T (NYSE: T), but the reality is that these stocks haven't delivered strong total returns for investors in recent years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Easterly Government Properties wasn't one of them!
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool recommends Easterly Government Properties and Verizon Communications.
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10 stocks we like better than Easterly Government Properties When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Matthew Frankel, CFP® has no position in any of the stocks mentioned.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Easterly Government Properties wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 12, 2023 Matthew Frankel, CFP® has no position in any of the stocks mentioned. Their opinions remain their own and are unaffected by The Motley Fool.
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39ecbd9c-e193-4ac1-b551-9299fc53815c
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723294.0
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2023-06-22 00:00:00 UTC
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3 Dividend Stocks That Will Hold Up No Matter the Market Conditions
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DEA
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https://www.nasdaq.com/articles/3-dividend-stocks-that-will-hold-up-no-matter-the-market-conditions-4
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It's important for income investors to realize that just like the rest of the stock market, there is a broad spectrum of risk and stability when it comes to dividend stocks. Some high-yielding dividend stocks could have struggling businesses and unstable income, so it's important to focus on companies that have resilient and sustainable income streams, especially with most experts calling for a recession in the not-too-distant future.
Three companies in particular whose businesses (and dividends) should hold up quite well no matter what the stock market or U.S. economy does are Realty Income Corporation (NYSE: O), Public Storage (NYSE: PSA), and Easterly Government Properties (NYSE: DEA).
Retail for tough times
The words "retail" and "recession" don't typically work well together, but Realty Income isn't the typical retail stock. If you aren't familiar, Realty Income is a net-lease real estate investment trust, or REIT, with more than 12,400 properties. About 80% of its rental income comes from retail tenants.
However, Realty Income's tenants are deliberately chosen because they are inherently recession-resistant, not vulnerable to e-commerce competition, or both. Its portfolio mainly consists of non-discretionary retailers like convenience stores that sell things people need no matter what, service-based retailers that have no online-based competitors, and discount-oriented retailers like dollar stores that tend to do even better when times get tough.
The numbers tell the story. Since listing on the New York Stock Exchange (NYSE) in 1994, Realty Income has generated a 14.6% annualized total return, handily outpacing the S&P 500. It has increased its dividend for 103 consecutive quarters, including throughout the dot-com bust, financial crisis, and COVID-19 turbulence, and currently has a 5.1% yield.
A resilient business with low overhead
Leading self-storage operator Public Storage has previously said that it could break even with only 30% of its units occupied.
Public Storage is a highly resilient business, and its management team has a stellar history of shareholder-friendly management that is extremely rare in the real estate industry. For example, it is common practice to issue new stock to raise growth capital, but Public Storage does this very infrequently, choosing to grow mainly with its excess cash flow as opposed to diluting investors. And the company maintains an extraordinarily low debt load for a REIT. In fact, until a few years ago, Public Storage had no debt at all, but management (wisely) decided to take advantage of the near-zero interest rate environment.
While self-storage is often seen as a "boring" business -- and it certainly is, in a lot of ways -- many investors don't realize just how well Public Storage has performed. In fact, with a 7,840% total return over the past three decades (about 16% annualized), it is one of the best-performing dividend stocks in the entire market.
You can't beat this company's tenant reliability
Easterly Government Properties is a real estate investment trust that owns several types of properties, including offices, healthcare facilities, and more. However, all of its properties have one common theme: They are leased to the U.S. government (or government agencies). It owns 86 properties all together, with top tenants that include the FBI, VA hospitals, the Justice Department, the Food and Drug Administration (FDA), and more.
This relationship results in extremely stable income that grows over time. The company's leases generally have annual rent increases built in, and it also develops government properties to meet specific needs. For example, Easterly has a 162,000 square foot property in development for the FDA that it expects to complete in 2025.
To be sure, Easterly is an income-focused investment, and its total returns will likely come mainly from its dividend as opposed to value creation or stock-price appreciation. But with a 7.3% dividend yield and extremely reliable rental income, Easterly could be a great choice for risk-adverse income investors.
These businesses and dividends should hold up
To be perfectly clear, all three of these businesses should perform quite well even if a recession hits. And all three should earn enough money to comfortably cover their dividends no matter what happens in the stock market or economy.
However, I have absolutely no idea what their stock prices will do. If interest rates rise further than expected, a particularly bad recession hits, or other headwinds arise, the stock prices themselves could be rather volatile. But investors can sleep soundly knowing that over the long term, these are solid and resilient companies that should deliver strong total returns.
10 stocks we like better than Realty Income
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Realty Income wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 12, 2023
Matthew Frankel, CFP® has positions in Public Storage and Realty Income. The Motley Fool recommends Easterly Government Properties and Realty Income. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three companies in particular whose businesses (and dividends) should hold up quite well no matter what the stock market or U.S. economy does are Realty Income Corporation (NYSE: O), Public Storage (NYSE: PSA), and Easterly Government Properties (NYSE: DEA). However, I have absolutely no idea what their stock prices will do. For example, it is common practice to issue new stock to raise growth capital, but Public Storage does this very infrequently, choosing to grow mainly with its excess cash flow as opposed to diluting investors.
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Three companies in particular whose businesses (and dividends) should hold up quite well no matter what the stock market or U.S. economy does are Realty Income Corporation (NYSE: O), Public Storage (NYSE: PSA), and Easterly Government Properties (NYSE: DEA). However, I have absolutely no idea what their stock prices will do. You can't beat this company's tenant reliability Easterly Government Properties is a real estate investment trust that owns several types of properties, including offices, healthcare facilities, and more.
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Three companies in particular whose businesses (and dividends) should hold up quite well no matter what the stock market or U.S. economy does are Realty Income Corporation (NYSE: O), Public Storage (NYSE: PSA), and Easterly Government Properties (NYSE: DEA). However, I have absolutely no idea what their stock prices will do. Retail for tough times The words "retail" and "recession" don't typically work well together, but Realty Income isn't the typical retail stock.
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Three companies in particular whose businesses (and dividends) should hold up quite well no matter what the stock market or U.S. economy does are Realty Income Corporation (NYSE: O), Public Storage (NYSE: PSA), and Easterly Government Properties (NYSE: DEA). However, I have absolutely no idea what their stock prices will do. But with a 7.3% dividend yield and extremely reliable rental income, Easterly could be a great choice for risk-adverse income investors.
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4b9a7e92-ad56-4c53-9038-3a759613bcd4
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723295.0
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2023-06-19 00:00:00 UTC
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Here's How Easterly Government Properties Can Afford Its 7.3% Dividend Yield
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DEA
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https://www.nasdaq.com/articles/heres-how-easterly-government-properties-can-afford-its-7.3-dividend-yield
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All tenants are not created equal, which is the big story when you consider Easterly Government Properties (NYSE: DEA) and its sizable 7.3% dividend yield. The real estate investment trust (REIT) operates in the office niche, a property type that has seen many dividend cuts. But Easterly's tenants are a bit different than most, and that could make all the difference on the dividend front.
An ugly business
The social distancing and work-from-home trends that arose during the early days of the coronavirus pandemic have wreaked havoc on the office sector. Some of the largest, best-known office REITs have been forced to cut their dividends, including SL Green and Vornado. Easterly hasn't followed suit.
Image source: Getty Images.
That said, Easterly's adjusted funds from operations (FFO) payout ratio was 91% in the first quarter. The first takeaway from that payout figure is that the REIT is covering its dividend. However, 91% is a very high number, and investors should probably be thinking about the risk of a dividend cut, given the broader problems in the office sector.
The thing is, Easterly is a bit unique within the office REIT space. Its selective leasing approach could be the difference between holding the line on the dividend and being forced to make a dividend cut.
Working with everyone's uncle
Easterly Government Properties, as its name implies, focuses on leasing to the U.S. government and related entities. In fact, of the 86 properties it owns, only one is leased to a company outside this focus. There are reasons to worry about the heavy reliance on Uncle Sam, given that the REIT basically has just a single tenant. So this is not a risk-free approach.
However, the U.S. government is generally a reliable payer (it can always raise taxes if it needs more money), and in the current environment, that's a clear plus.
Then there's the actual portfolio to consider. Notably, pure office space only makes up around half of Easterly's rents. Roughly 26% comes from what is best considered outpatient medical offices, and another 10% from medical research space, which is basically just a highly specialized office. A category the REIT calls courthouse/office adds another 5% of rents, bringing the total office exposure to more than 90%, though a significant amount is not traditional office. This diversification, particularly given the importance of some of the assets (like a courthouse or medical office property) suggests that the rents will be paid on time.
Backing that fact up is the REIT's high occupancy rate, which sits at an attractive 98%. The average remaining lease term, meanwhile, is roughly 10 years. In other words, there's a pretty good chance that Easterly's tenants will not only keep paying, but will do so for a long time into the future.
That's a strong foundation for the dividend, with the company expecting full-year adjusted FFO to fall between $1.12 and $1.15 in 2023. Given the current quarterly dividend of $0.265 per share, the full-year adjusted FFO payout ratio would be between roughly 92% and 95%. That's high on both sides of the equation, but still affordable.
Not for the faint of heart
Easterly Government Properties is not your run-of-the-mill REIT, given its heavy focus on leasing to the government. As such, it is probably not the best option for risk-averse dividend investors. Add in the high payout ratio, and it is probably also best avoided by investors who want a set-it-and-forget-it type of dividend stock.
However, for more aggressive investors willing to closely track their portfolios, the high yield here could be attractive, as Easterly is getting tarred with the same brush as office REITs with very different customer bases. Just keep an eye on the payout ratio -- dividend risk still rises as the number edges closer to 100%.
10 stocks we like better than Easterly Government Properties
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Easterly Government Properties wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 12, 2023
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Easterly Government Properties. 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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All tenants are not created equal, which is the big story when you consider Easterly Government Properties (NYSE: DEA) and its sizable 7.3% dividend yield. An ugly business The social distancing and work-from-home trends that arose during the early days of the coronavirus pandemic have wreaked havoc on the office sector. However, for more aggressive investors willing to closely track their portfolios, the high yield here could be attractive, as Easterly is getting tarred with the same brush as office REITs with very different customer bases.
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All tenants are not created equal, which is the big story when you consider Easterly Government Properties (NYSE: DEA) and its sizable 7.3% dividend yield. That said, Easterly's adjusted funds from operations (FFO) payout ratio was 91% in the first quarter. Working with everyone's uncle Easterly Government Properties, as its name implies, focuses on leasing to the U.S. government and related entities.
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All tenants are not created equal, which is the big story when you consider Easterly Government Properties (NYSE: DEA) and its sizable 7.3% dividend yield. Not for the faint of heart Easterly Government Properties is not your run-of-the-mill REIT, given its heavy focus on leasing to the government. However, for more aggressive investors willing to closely track their portfolios, the high yield here could be attractive, as Easterly is getting tarred with the same brush as office REITs with very different customer bases.
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All tenants are not created equal, which is the big story when you consider Easterly Government Properties (NYSE: DEA) and its sizable 7.3% dividend yield. Given the current quarterly dividend of $0.265 per share, the full-year adjusted FFO payout ratio would be between roughly 92% and 95%. Add in the high payout ratio, and it is probably also best avoided by investors who want a set-it-and-forget-it type of dividend stock.
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7f587952-d611-4b5b-8993-e319905fa9d3
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723296.0
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2023-06-07 00:00:00 UTC
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Peter Lynch Detailed Fundamental Analysis - DEA
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DEA
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https://www.nasdaq.com/articles/peter-lynch-detailed-fundamental-analysis-dea
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nan
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
EASTERLY GOVERNMENT PROPERTIES INC (DEA) is a small-cap growth stock in the Real Estate Operations industry. The rating using this strategy is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC
DEA Guru Analysis
DEA Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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EASTERLY GOVERNMENT PROPERTIES INC (DEA) is a small-cap growth stock in the Real Estate Operations industry. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA).
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Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Additional Research Links Top NASDAQ 100 Stocks Factor-Based Stock Portfolios Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends.
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Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Additional Research Links Top NASDAQ 100 Stocks Factor-Based Stock Portfolios Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends.
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Below is Validea's guru fundamental report for EASTERLY GOVERNMENT PROPERTIES INC (DEA). Of the 22 guru strategies we follow, DEA rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of EASTERLY GOVERNMENT PROPERTIES INC DEA Guru Analysis DEA Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time.
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7add1415-7dda-47c6-b777-7f709ca3357c
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723297.0
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2023-05-24 00:00:00 UTC
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Postal Realty (NYSE:PSTL): One of the Safest 6.5% Yields Among REITs
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DEA
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https://www.nasdaq.com/articles/postal-realty-nyse%3Apstl%3A-one-of-the-safest-6.5-yields-among-reits
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Shares of Postal Realty Trust (NYSE:PSTL) currently offer a 6.5% yield, which I believe is one of the safest among the equivalent yields its sector peers feature. This can be attributed to Postal Realty's exceptional qualities as one of the most distinctive REITs in the market. With a vast portfolio of 1,325 real estate properties spread across 49 states, Postal Realty holds a unique position by exclusively leasing to a single tenant -- The United States Postal Service (USPS). This strategic advantage provides numerous benefits that set the company apart.
Nevertheless, I remain mindful of rising interest rates, which could compress Postal Realty's profitability prospects from here. Accordingly, I am neutral on the stock.
What Makes Postal Realty Stand Out?
Postal Realty is one of the most unique REITs you will find in the market. Over the past 30 years, the company has been an active buyer of purpose-built properties that specifically meet the needs of The USPS. During this period, it has accumulated a vast portfolio of 1,325 properties that are exclusively leased to The USPS, which is utterly remarkable.
There are great advantages that come with this setup that no other REIT seems to have been able to replicate. The closest example I can think of is Easterly Government Properties (NYSE:DEA), which exclusively leases its properties to various agencies of the federal government. Yet, even they have a way more diversified tenant base.
Postal Realty's strategy boasts an exceptional advantage that sets it apart from the rest -- an unparalleled, mission-critical relationship with USPS that is practically irreplaceable. The USPS confidently relies on Postal Realty to provide properties tailored precisely to their needs, benefiting from the company's extensive decades-long experience in serving this esteemed client.
In return, Postal Realty enjoys a consistent and predictable stream of revenues, as its properties play a vital role in facilitating the USPS' indispensable day-to-day operations. This is reflected in several of Postal Realty's key metrics. Specifically, the REIT features the following:
An industry-leading occupancy rate of 99.7%
A 10-year historical weighted average lease retention rate of 99%
A 100% rent collection rate with payments always made on time
A weighted average lease term of about three years.
Undoubtedly, these extraordinary metrics are unmatched in the industry and have only been formed as a result of Postal Realty's mission-critical and tenant-tailored strategy. All of these metrics and ratios also provide investors with a significant degree of safety and visibility, benefiting the stock's investment case.
The fact that rental collection is set to maintain a flawless 100% rate, backed by the federal government's support of USPS, establishes a significant advantage that no other REIT can claim, with the exception of Easterly Government, possibly.
Unique Qualities Drive Dividend Security/Growth
With a solid foundation built upon these aforementioned qualities, Postal Realty showcases robust dividend security and growth prospects. The company's exceptional earnings visibility extending years ahead, coupled with the absence of risks associated with rental collections, enables its management to sustainably foster growth while comfortably covering dividends. Impressively, Postal Realty consistently increased its dividend every quarter during the initial 14 quarters following its IPO.
Although the most recent dividend did not exhibit quarter-over-quarter growth, this occurrence stands as an exception rather than the norm. Combined with the fact that the stock offers a compelling yield of 6.5%, income-oriented investors are likely to find Postal Realty's investment case rather fitting for their portfolio.
Note that last year's FFO/share of $0.95 implies that Postal Realty's annualized dividend rate of $0.93 is barely covered. Still, due to the lack of uncertainty regarding Postal Reatly's cash flow, I wouldn't state that the dividend is at risk.
Is PSTL Stock a Buy, According to Analysts?
Turning to Wall Street, Postal Realty features a Hold consensus rating based on one Buy and three Hold ratings assigned in the past three months. At $16.50, the average Postal Realty stock price target suggests 12.78% upside potential.
The Takeaway
Postal Realty presents an exceptional investment opportunity tailor-made for income-oriented investors. It's distinguished by its remarkable attributes that cultivate a compelling blend of lower risk, heightened cash-flow visibility, and a generous dividend yield.
However, I do harbor a notable concern regarding Postal Realty's outlook in a climate of increasing interest rates. Although the company maintains a satisfactory leverage ratio of 35.9%, its interest expenses surpass a staggering 85% of its operating income. If the company has to refinance certain notes and interest expenses rise as a result, the elevated interest costs may dampen its potential for dividend growth.
In such a case, even with its commendable high-quality attributes, the current 6.5% yield may fail to evoke excitement among the majority of investors.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The closest example I can think of is Easterly Government Properties (NYSE:DEA), which exclusively leases its properties to various agencies of the federal government. The USPS confidently relies on Postal Realty to provide properties tailored precisely to their needs, benefiting from the company's extensive decades-long experience in serving this esteemed client. In return, Postal Realty enjoys a consistent and predictable stream of revenues, as its properties play a vital role in facilitating the USPS' indispensable day-to-day operations.
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The closest example I can think of is Easterly Government Properties (NYSE:DEA), which exclusively leases its properties to various agencies of the federal government. With a vast portfolio of 1,325 real estate properties spread across 49 states, Postal Realty holds a unique position by exclusively leasing to a single tenant -- The United States Postal Service (USPS). The fact that rental collection is set to maintain a flawless 100% rate, backed by the federal government's support of USPS, establishes a significant advantage that no other REIT can claim, with the exception of Easterly Government, possibly.
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The closest example I can think of is Easterly Government Properties (NYSE:DEA), which exclusively leases its properties to various agencies of the federal government. With a vast portfolio of 1,325 real estate properties spread across 49 states, Postal Realty holds a unique position by exclusively leasing to a single tenant -- The United States Postal Service (USPS). Combined with the fact that the stock offers a compelling yield of 6.5%, income-oriented investors are likely to find Postal Realty's investment case rather fitting for their portfolio.
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The closest example I can think of is Easterly Government Properties (NYSE:DEA), which exclusively leases its properties to various agencies of the federal government. With a vast portfolio of 1,325 real estate properties spread across 49 states, Postal Realty holds a unique position by exclusively leasing to a single tenant -- The United States Postal Service (USPS). All of these metrics and ratios also provide investors with a significant degree of safety and visibility, benefiting the stock's investment case.
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c0f6c015-5768-40d3-b6b1-66053b32b3e3
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723298.0
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2023-05-08 00:00:00 UTC
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Ex-Dividend Reminder: Veritex Holdings, Wintrust Financial and Easterly Government Properties
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-veritex-holdings-wintrust-financial-and-easterly-government
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 5/10/23, Veritex Holdings Inc (Symbol: VBTX), Wintrust Financial Corp (Symbol: WTFC), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Veritex Holdings Inc will pay its quarterly dividend of $0.20 on 5/25/23, Wintrust Financial Corp will pay its quarterly dividend of $0.40 on 5/25/23, and Easterly Government Properties Inc will pay its quarterly dividend of $0.265 on 5/23/23. As a percentage of VBTX's recent stock price of $16.64, this dividend works out to approximately 1.20%, so look for shares of Veritex Holdings Inc to trade 1.20% lower — all else being equal — when VBTX shares open for trading on 5/10/23. Similarly, investors should look for WTFC to open 0.60% lower in price and for DEA to open 1.84% lower, all else being equal.
Below are dividend history charts for VBTX, WTFC, and DEA, showing historical dividends prior to the most recent ones declared.
Veritex Holdings Inc (Symbol: VBTX):
Wintrust Financial Corp (Symbol: WTFC):
Easterly Government Properties Inc (Symbol: DEA):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.81% for Veritex Holdings Inc, 2.42% for Wintrust Financial Corp, and 7.37% for Easterly Government Properties Inc.
In Monday trading, Veritex Holdings Inc shares are currently up about 2%, Wintrust Financial Corp shares are up about 1.2%, and Easterly Government Properties Inc shares are up about 1.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
Latest 13F Filings
Top Ten Hedge Funds Holding AFSM
ODT Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/10/23, Veritex Holdings Inc (Symbol: VBTX), Wintrust Financial Corp (Symbol: WTFC), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for WTFC to open 0.60% lower in price and for DEA to open 1.84% lower, all else being equal. Below are dividend history charts for VBTX, WTFC, and DEA, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/10/23, Veritex Holdings Inc (Symbol: VBTX), Wintrust Financial Corp (Symbol: WTFC), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Veritex Holdings Inc (Symbol: VBTX): Wintrust Financial Corp (Symbol: WTFC): Easterly Government Properties Inc (Symbol: DEA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for WTFC to open 0.60% lower in price and for DEA to open 1.84% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/10/23, Veritex Holdings Inc (Symbol: VBTX), Wintrust Financial Corp (Symbol: WTFC), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Veritex Holdings Inc (Symbol: VBTX): Wintrust Financial Corp (Symbol: WTFC): Easterly Government Properties Inc (Symbol: DEA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for WTFC to open 0.60% lower in price and for DEA to open 1.84% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/10/23, Veritex Holdings Inc (Symbol: VBTX), Wintrust Financial Corp (Symbol: WTFC), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for WTFC to open 0.60% lower in price and for DEA to open 1.84% lower, all else being equal. Below are dividend history charts for VBTX, WTFC, and DEA, showing historical dividends prior to the most recent ones declared.
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3d8dd973-5fe3-43f2-ba80-e1f89804fd96
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723299.0
|
2023-05-08 00:00:00 UTC
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2 Ultra-High-Yield Dividend Stocks I'd Buy Right Now -- and 1 I Wouldn't Touch With a 10-Foot Pole
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DEA
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https://www.nasdaq.com/articles/2-ultra-high-yield-dividend-stocks-id-buy-right-now-and-1-i-wouldnt-touch-with-a-10-foot
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nan
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nan
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How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also want the lowest risk possible.
The good news is that some stocks with especially juicy dividends aren't overly risky. The bad news is that others are quite risky. Here are two ultra-high-yield dividend stocks I'd buy right now -- and one I wouldn't touch with a 10-foot pole.
Backed by Uncle Sam
Easterly Government Properties (NYSE: DEA) is a real estate investment trust (REIT) that primarily leases properties to federal agencies that it views as mission-critical. These agencies include the Federal Bureau of Investigation, General Services Administration, and Veterans Administration.
The company noted in its recent investor presentation that 97% of Easterly's lease income is "backed by [the] full faith and credit of the U.S. government." That doesn't mean that the REIT doesn't have any risks; it does.
For example, Easterly's high dividend yield of nearly 7.6% could be in jeopardy. The company's 2023 guidance for funds from operations (FFO) doesn't leave much wiggle room to cover the dividend at current levels at the low end of the guidance range.
I'm not too concerned about a dividend cut, though, because I expect Easterly to deliver results well above the low end of its guidance. Also, with the possibility of a U.S. recession increasing, I think that the Federal Reserve's interest rate hikes could soon grind to a halt. When interest rates begin to fall again (which they will, sooner or later), it should provide a nice catalyst for Easterly's share price.
Close to dividend royalty
Enterprise Products Partners (NYSE: EPD) isn't far away from becoming dividend royalty. The midstream energy company has increased its distribution for 24 consecutive years. Randy Fowler, Enterprise's co-CEO and CFO, said in the first-quarter conference call that the company has "good cash flow growth that'll support distribution growth down the road."
That distribution doesn't have to grow at all to be attractive. Enterprise's distribution yield currently tops 7.6%. The stock is also performing well so far this year.
Business is booming for Enterprise. The company reported record pipeline and fee-based natural gas processing volumes in the first quarter. Its natural gas liquids marine terminal volumes also reached all-time highs. Total marine terminal volumes came close to setting a new record as well.
What about the company's long-term prospects? Co-CEO Jim Teague said in the Q1 call, "It's very hard to make a bearish call for oil in the medium to long term. And it's hard for us to be too constructive on natural gas." I suspect that Teague is right. If he is, Enterprise should continue paying and increasing its distributions for a long time to come.
Too many problems
While I'd gladly buy shares of Easterly Government Properties and Enterprise Products Partners right now, it's a different story with Office Properties Income Trust (NASDAQ: OPI). Sure, the REIT's dividend yield of nearly 16.4% might seem enticing. But Office Properties simply has too many problems.
For one thing, the company lost money in the first quarter of 2023 based on generally accepted accounting principles (GAAP). Its normalized funds from operations (FFO) sank by almost 16% year over year. Nearly one out of 10 of its office properties are currently unoccupied.
Office Properties acknowledged in its Q1 update that it faces significant headwinds, including "volatile macroeconomic conditions" and a difficult financing environment with high interest rates. My concern is that the REIT's issues aren't just temporary. With more people working from home as a result of the COVID-19 pandemic, I'm not sure that the office real estate market will ever be what it once was.
Office Properties plans to merge with Diversified Healthcare Trust to diversify its portfolio. I think this is a good move overall since Diversified Healthcare owns medical office buildings and life sciences properties that are more attractive than general office properties. However, the healthcare REIT has some problems of its own.
Perhaps Office Properties' fortunes will improve down the road. For now, though, I'd stay away from this ultra-high-yield dividend stock.
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Keith Speights has positions in Enterprise Products Partners. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. 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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Backed by Uncle Sam Easterly Government Properties (NYSE: DEA) is a real estate investment trust (REIT) that primarily leases properties to federal agencies that it views as mission-critical. The company noted in its recent investor presentation that 97% of Easterly's lease income is "backed by [the] full faith and credit of the U.S. When interest rates begin to fall again (which they will, sooner or later), it should provide a nice catalyst for Easterly's share price.
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Backed by Uncle Sam Easterly Government Properties (NYSE: DEA) is a real estate investment trust (REIT) that primarily leases properties to federal agencies that it views as mission-critical. Close to dividend royalty Enterprise Products Partners (NYSE: EPD) isn't far away from becoming dividend royalty. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners.
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Backed by Uncle Sam Easterly Government Properties (NYSE: DEA) is a real estate investment trust (REIT) that primarily leases properties to federal agencies that it views as mission-critical. Too many problems While I'd gladly buy shares of Easterly Government Properties and Enterprise Products Partners right now, it's a different story with Office Properties Income Trust (NASDAQ: OPI). * They just revealed what they believe are the ten best stocks for investors to buy right now... and Easterly Government Properties wasn't one of them!
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Backed by Uncle Sam Easterly Government Properties (NYSE: DEA) is a real estate investment trust (REIT) that primarily leases properties to federal agencies that it views as mission-critical. Enterprise's distribution yield currently tops 7.6%. Too many problems While I'd gladly buy shares of Easterly Government Properties and Enterprise Products Partners right now, it's a different story with Office Properties Income Trust (NASDAQ: OPI).
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35ab0220-4246-41d8-b927-e5a28fe054ed
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