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IBM Selected by Total to Build Supercomputer Pangea III
International Business Machines CorporationIBM recently announced that it has been chosen byTotal— a company that engages in global oil and gas production — to build Pangea III, the “world's most powerful commercial supercomputer.”
Pangea III is powered by IBM’s POWER9 processors and contains NVIDIA's GPUs. These features will enhance energy efficiency in the Total’s existing system and attain robust high-performance computing (“HPC”) and AI application performance, scalability and efficiency.
IBM’s Pangea III is based on the same system utilized in the U.S. Department of Energy's (DOE) Summit and Sierra supercomputers. The company has been associated with DOE for a long time, and the new project is part of it. The company provides advanced supercomputing and high performance computing solutions to the DOE to aid research across agencies.
Rising operating costs and pollution levels related to higher energy consumption is a major concern across the industry currently. With the new system, Pangea III, IBM aims to aid Total’s energy-saving project. Per the press release, Pangea III requires 1.5-megawatt (MW) of power, much lower than the previous system which required 4.5 MW for its operation.
International Business Machines Corporation Price and Consensus
International Business Machines Corporation price-consensus-chart | International Business Machines Corporation Quote
Details
According to Total reports, the latest Pangea III utilizes less than 10% energy consumption per petaflop as compared with its predecessor.
Moreover, Total reported that Pangea III has the capability of becoming “No. 11 amongst all public and private supercomputers globally,” containing 25 petaflops computing power and 50 petabytes storage capacity.
The addition of Pangea III to Total’s latest high-end HPC platform bolsters the systems’ processing performance and scalability. The enhanced features enable the system to tackle computational problems related to the emerging field of AI, and subsets machine learning and Big Data analytics.
Growth Strategies
IBM is capitalizing on the rapid adoption of supercomputing systems, which is expected to be a key catalyst for the company. Per Technavio, the global supercomputer market is anticipated to witness a CAGR of around 9% during the period between 2018 and 2022.
This initiative is part of IBM’s focus on its Hybrid IT segment, which was formed and commenced operations in the fiscal 2018. It has been trying to concentrate more on high margin hybrid IT models that leverage on-premises and cloud computing power.
Per IDC, around 90% of the biggest enterprises worldwide are anticipated to adopt integrated hybrid and multicloud tools and approaches by 2024. IBM, with its expertise across these domains and restructuring initiatives is well-positioned to maintain its dominance in the market.
Bottom Line
Given the alluring capabilities offered by IBM's hybrid cloud infrastructure, the latest offering is likely to bolster the top line, consequently aiding IBM to compete better against peers. The company has been a pioneer when it comes to helping businesses digitally transform and evolve. The tech giant continues to bring innovation to services to aid the enterprises leverage emerging technologies, including the likes of cloud, AI, IoT, among others.
However, rising competition from Amazon’s AMZN Amazon Web Services (AWS) and Microsoft Azure in the cloud infrastructure services market is a headwind.
Zacks Rank & Key Picks
IBM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Match Group, Inc. MTCH and Autohome Inc. ATHM, each flaunting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Match Group and Autohome have a long-term earnings growth rate of 15.2% and 20.9%, respectively.
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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 reportInternational Business Machines Corporation (IBM) : Free Stock Analysis ReportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAutohome Inc. (ATHM) : Free Stock Analysis ReportMatch Group, Inc. (MTCH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Hawley to Introduce Bill Making It Easier to Sue Big Tech Firms Over Political Bias
Senator Josh Hawley (R., Mo.) plans to introduce legislation that would make it easier for consumers to sue big tech companies that display overt political bias, his office announced Wednesday. The bill would make firms like Facebook, Youtube, and Google legally liable for user-generated content, unless and until they can demonstrate that their content moderation processes are unaffected by political bias. This legislation simply states that if the tech giants want to keep their government-granted immunity, they must bring transparency and accountability to their editorial processes and prove that they dont discriminate, Hawley said in a news release. Under Section 230 of the Communications Decency Act, tech platforms are currently immune from legal action related to the user-generated content they host. Hawley, who has emerged as the foremost Republican critic of big tech in his first months in office, plans to strip companies of that protection in order to counter the anti-conservative bias he believes is rife within Silicon Valley firms. In doing so, he is channeling the longstanding Republican charge that social media platforms profit from a double standard in which they curate user content according to their political biases, in much the same way a publisher would, while continuing to benefit from the legal protections afforded to neutral platforms. The proposed legislation would only apply to sites that have more than 30 million active users in the U.S., 50 million active users worldwide or more than $500 million in annual revenue. Companies that exceed those benchmarks would be required to demonstrate every two years by clear and convincing evidence that they do not negatively affect a political party, political candidate, or political viewpoint through their content curation. The bill currently has no co-sponsors and will likely face stiff opposition from Democrats, who disbelieve the charge of anti-conservative bias, and business-friendly Republicans averse to exposing tech firms to seemingly endless litigation. More from National Review Conservative Facebook Employees Form Group to Combat Political Monoculture Tulsi Gabbard Becomes First 2020 Dem to Speak Out against Facebook Censorship Judge Approves ATT Takeover of Time Warner |
U.S. Cellular Gets Millimeter Wave Spectrum, Eyes 5G Network
Bidding for high frequency spectrum in the recently hosted FCC Millimeter Wave Spectrum Auctions,United States Cellular CorporationUSM successfully acquired licenses that cover 98% of its overall customers for $256 million or 1.7 cents per MHz passing one person (pop).U.S. Cellular aims to address the growing demand for data services as well as create new opportunities for innovative services that require high speed, reliability and low latency. In the 28 GHz Auction, the wireless telecommunications service provider reportedly paid $129.4 million or 2.1 cents per MHz pop, securing 408 licenses covering 60% of its subscriber base, with at least 425 MHz of millimeter wave spectrum.In the 24 GHz Auction, the company spent $126.6 million or 1.5 cents per MHz pop, acquiring 282 licenses covering 93% of its customers. Put together, the auctions enabled U.S. Cellular to acquire at least 300 MHz of spectrum in markets that accounts for 97% of its total subscriber base. As a result, the company can now cover most of its subscribers, which enables it to provide the cutting-edge capabilities of 5G technology.Markedly, U.S. Cellular’s fifth-generation network strategy involves the use of a variety of spectrum bands over time. The company’s initial 5G deployment will likely be on its 600 MHz spectrum as this will provide enhanced broadband speed and capacity across its footprint.The company is progressing well in its multi-year network modernization initiative by building its network for the future of connectivity. This will give competitive advantage, while matching increasing expectations of customers.Further, U.S. Cellular has taken major steps to accelerate subscriber additions and improve churn performance. The company intends to offer the best wireless experience to customers by providing superior quality network and national coverage.Telephone and Data Systems, Inc. TDS owned 82% stakes in U.S. Cellular as of Mar 31, 2019. U.S. Cellular continues to strengthen its customer base, witness greater adoption of its unlimited total plans and tap new revenue sources while focusing on cost management.Driven by diligent execution of key business strategies, the stock has rallied 38.3% compared with the industry’s rise of 10.5% in the past year.
U.S. Cellular currently sports a Zacks Rank #1 (Strong Buy). A couple of other top-ranked stocks in the industry include T-Mobile US, Inc. TMUS and Verizon Communications Inc. VZ, both carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.T-Mobile has long-term earnings growth expectation of 13%.Verizon has long-term earnings growth expectation of 4.3%.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportTelephone and Data Systems, Inc. (TDS) : Free Stock Analysis ReportT-Mobile US, Inc. (TMUS) : Free Stock Analysis ReportUnited States Cellular Corporation (USM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
UPDATE 2-Tusk pushes against Franco-German tussle over top EU jobs
* 28 EU leaders meet on Thursday to haggle over top jobs
* France and Germany disagree, may block deal
* But agreement seen coming soon afterwards (Updates with French, German comments)
By Philip Blenkinsop, Jean-Baptiste Vey and Andreas Rinke
BRUSSELS/PARIS/BERLIN, June 19 (Reuters) - European Council President Donald Tusk put pressure on EU leaders on Wednesday to swiftly agree on who should hold the bloc's top jobs but a tug-of-war between Germany and France was likely to prevent a deal at a summit on Thursday.
The bloc's 28 national leaders meet in Brussels to haggle over who to put in the five prominent positions that would help the EU navigate through a raft of internal and external challenges in the coming years.
The murky recruitment process seeks to balance out party politics and the different priorities of the EU's many regions, as well as the candidate's own profiles.
"There are different views, different interests, but also a common will to finalise this process before the first session of the European Parliament," Tusk said in an invitation letter to the 28 national leaders. "I remain cautiously optimistic ... I hope we can make it on Thursday."
But multiple diplomats and officials told Reuters it may be too soon for a deal at the summit, which will be chaired by Tusk. They pointed to the rift between Berlin and Paris over a German candidate Manfred Weber's bid to take over at the helm of the bloc's executive Commission later this year.
The body has powers from trade to competition to climate -- all key areas as the EU struggles with weak economies and a wave of eurosceptic sentiment, as well as facing challenges from the United States to Russia to China.
"Nothing will get done without a Franco-German deal," said an aide to French President Emmanuel Macron, who firmly opposes Weber's bid to run the Commission. "We need to be able to cross out the names of those who don't produce ... consensus."
France, backed by Spain's socialist Prime Minister Pedro Sanchez and others, is seeking to mount an effective veto against the centre-right Weber and have his candidacy ruled out at this summit, diplomats and officials told Reuters.
Weber's critics see his lack of experience leading a government as an issue and highlight his lack of charisma needed to unify a bloc facing strains over issues such as whether to be more closely integrated, how to tackle migration and Brexit.
But they have also pointed out that German Chancellor Angela Merkel cannot drop Weber - who is a deputy head of her Bavarian sister party CSU - just yet.
"It seems too soon, all the different elements of the puzzle are not yet falling into the right please," a senior EU diplomat said in Brussels of chances for a deal on Thursday.
MORE WOMEN
A German government official said Berlin was striving for an agreement on the EU top jobs by July 2 when the new European assembly convenes for the first time following a continent-wide election last month. The chamber should then elect its new president, or presidents, for 2019-24.
That job is part of a package of the EU's most senior leadership positions that come vacant soon.
They include replacements for European Commission President Jean-Claude Juncker, the bloc's chief diplomat Federica Mogherini, the head of the European Central Bank (ECB) in Frankfurt Mario Draghi, and Tusk himself.
Should a deal prove elusive this week, Brussels sources said another leaders' summit could take place on June 30 or July 1.
Through the process, the EU is also seeking to recruit more women into its male-dominated leadership, with expectation that senior Commission roles would go to candidates such as Spain's Economy Minister Nadia Calvino.
Beyond a firm majority - or, preferably, unanimity - among the national leaders, any candidate to run the next European Commission must also be approved by the new European Parliament.
Political groups in the parliament are still discussing a coalition agreement and a pro-EU majority is in the works between the centre-right European People's Party (EPP), the socialists, the liberals and the greens.
The EPP, the parliament's largest multi-country faction, has so far stuck with Weber.
The socialists back Dutchman Frans Timmermans, a deputy head at the Commission, but he would be unpalatable to eastern EU states such as Hungary and Poland for his role in the bloc's rule of law probes against their nationalist governments.
Brussels sources said Merkel's condition for eventually dropping Weber could be that no other candidate proposed by the European Parliament or no other French person gets to lead the Commission either.
That would rule out the bloc's Brexit negotiator and centre-right Frenchman Michel Barnier, who has long run an unofficial campaign.
Other names in the game include Belgium's liberal caretaker prime minister, Charles Michel, Bulgaria's World Bank head Kristalina Georgieva or Lithuania's outgoing President Dalia Grybauskaite.
(Additional reporting by Francesco Guarascio, Robin Emmott, Peter Maushagen, Jan Strupczewski and Sabine Siebold in Brussels, Michel Rose in Paris, Belen Carreno in Madrid, Giselda Vagnoni in Rome, Gederts Gelzis in Riga, Writing by Gabriela Baczynska; Editing by Alison Williams) |
Can FireEye Stock Really Double in the Next 2 Years?
FireEye(NASDAQ: FEYE)stock has struggled so far this year as investors have decided to dump shares of the cybersecurity specialist thanks to the company's habit of delivering weak guidance numbers over the past couple of quarters.
FireEye started the year on a negative note after the company's first-quarter guidancefell short of expectations. The trend continued in the next quarter when its guidance turned out to beunderwhelming once again. But professional investing community SumZero believes that FireEye is a misunderstood stock that could double within the next couple of years (viaBarron's).
Image source: Getty Images
SumZero credits FireEye management for turning it from "cash-burning hypergrowth to a now-stabilized business with more-predictable recurring revenue streams." SumZero is right on the money on this point, as FireEye's operating cash flow is in firmly in positive territory thanks to its control over costs.
FEYE cash from operations (TTM)data byYCharts
FireEye has managed to drastically reduce the money it spends on selling, general, and administrative expenses over the years. This has allowed the company to move closer toward profitability. So there's no doubt that FireEye has actually improved over time. But this is not where SumZero's bullishness ends.
SumZero cites that cybersecurity spending is expected to grow at an annual rate of 8% in the coming years, and believes that FireEye is on track to take advantage of this growth. SumZero goes on to state: "Such tailwinds should bode well for FireEye, as the company has managed to be at the forefront of some of the biggest hacking stories in the last few years, including Target, Sony, JPMorgan Chase, and Anthem."
But FireEye's mere presence in the cybersecurity space doesn't guarantee success and financial growth, and this is where SumZero's thesis loses ground. FireEye is one of the many players having a go at the cybersecurity opportunity, and a closer look at its recent financial performance indicates that it isn't on top of the game.
FireEyeanticipates revenueof $885 million this year, up 6.5% from the prior-year period. For comparison, FireEye's top line increased 7% last year. So the growth in cybersecurity spending won't be moving the needle for FireEye this year, as SumZero expects.
Now, there are two reasons why I believe FireEye is unable to take advantage of growing cybersecurity spending.
First, the company isn't spending aggressively on research and development anymore in a bid to boost earnings. FireEye's outlay on R&D has slowed down remarkably over the years, while key rivalPalo Alto Networks(NYSE: PANW)has started boosting its spending on this line item of late.
FEYE R&D to revenue (TTM)data byYCharts
This doesn't paint a good picture because the cybersecurity space is a competitive one where both big and small companies are trying to make a dent. Palo Alto, for instance, has spentmore than $1 billionon five acquisitions since the beginning of 2017 to branch into different cybersecurity niches and secure long-term growth.
But FireEye has not been as aggressive. It spent $250 million to acquire Verodin in May this year, but this move isn't going to move the needle much for the company. FireEye estimates that Verodin will add only $20 million to its billings this year and $70 million next year.
On the other hand, Palo Alto Networks' acquisitions are turning it into a well-oiled, integrated cybersecurity platform, giving the company ample opportunity to cross-sell its existing solutions to new customers, and new solutions to existing customers. This is evident from the fact that Palo Alto customers are nowspending more moneyon its solutions, which is leading to strong margin and revenue improvements when compared with FireEye.
PANW operating margin (TTM)data byYCharts
In the end, FireEye has a tepid revenue growth forecast for 2019, and its top line isn't expected to gather much momentum next year, either. Of course, the company is witnessing improvements on the bottom line and the cash flow, but its conservative approach could prove costly in the long run.
FireEye is taking its foot off the gas as far as R&D spending is concerned, while rivals are taking an aggressive approach to corner a bigger share of this market. This is why the probability of FireEye stock's doubling in the next couple of years remains weak.
The company needs to find ways to boost its top line. Otherwise, it could cede ground to rivals in the cybersecurity space and continue lagging the stock market as it has in the past three years.
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Harsh Chauhanhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Palo Alto Networks. The Motley Fool recommends FireEye. The Motley Fool has adisclosure policy. |
Procter & Gamble Moves Up the Charts: Will Growth Continue?
The Procter & Gamble CompanyPG, popularly known as P&G, is gaining momentum on the back of robust surprise trend due to ongoing initiatives to improve productivity. Moreover, the company remains focused on improving its product portfolio through strategic initiatives. It is also on track with its cost-saving plans.All these factors helped the company to deliver robust third-quarter fiscal 2019 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year. Driven by these upsides, shares of this Cincinnati, OH-based company have rallied approximately 44% in the past one year outperforming the industry’s growth of around 30%.
Factors Narrating Procter & Gamble’s Growth StoryProcter & Gamble remains focused on productivity and cost-saving plans to boost margins. The company’s continued investment in business, alongside efforts to offset macro cost headwinds and balance top and bottom-line growth, underscore its productivity efforts. With cost savings and efficiency improvements across all facets of business, the company is nearing the mid-point of the second five-year (fiscal 2017-2021) cost-savings target of $10 billion.Additionally, the company emphasizes on improving its product portfolio through strategic initiatives, which enable it to concentrate on its fast-growing businesses. For this, it relies on its strategy of acquiring complementary businesses. The company also follows a systematic divestiture plan to streamline its portfolio. Notably, it has acquired a private company — This is L. — that produces period products with natural ingredients. This will aid in expanding its naturals product range, which is a key focus area for most day-to-day consumer product companies at present.Some other recent acquisitions include the beauty brand — First Aid Beauty, the consumer health business of Germany-based Merck KGaA and Walker & Company Brands, all in 2018. These acquisitions should bolster the company’s product portfolio in various categories. Simultaneously, it divested several assets over the years as part of the portfolio-reshaping plan.These actions have been driving the company’s robust quarterly performance over the years. Furthermore, management’s raised sales guidance for fiscal 2019 reflects its confidence in growth for the future. It now projects all-in sales growth of flat to up 1% versus the range of down 1% to up 1% mentioned earlier. Organic sales are now estimated to increase 4% compared with 2-4% stated earlier. The raised sales view is attributed to robust organic sales growth in the most recent quarter. Moreover, the company continues to anticipate core EPS growth of 3-8% for fiscal 2019. Core earnings were $4.22 per share in fiscal 2018.Bottom LineHowever, Procter & Gamble has been witnessing strained margins owing to increased commodity and shipping costs, higher brand investments amid intense competition. Intense competition and adverse currency remain other constraints to margin. While P&G’s core gross margin remained flat year over year in third-quarter fiscal 2019, core operating margin contracted 60 bps.Although the company’s cost-saving initiatives contributed meaningfully to margin expansion, this was not enough to negate the ongoing headwinds. Notably, core operating margin contracted for seventh consecutive quarter. While pricing gains slightly cushioned negative margin trends in the fiscal third quarter, the company expects currency headwinds, higher business investments, competitive dynamics and commodity costs to weigh on margins in the near term. Moreover, adverse currency rates are hurting the company’s results, which may persist in fiscal 2019.Nonetheless, we expect all aforementioned factors to offset minor hurdles and help bolster this Zacks Rank #3 (Hold) stock’s momentum.Key PicksUnilever N.V. UN has a long-term earnings growth rate of 8.2% and sports a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Colgate-Palmolive Company CL has a long-term earnings growth rate of 5.4% and a Zacks Rank #2.The Clorox Company CLX has a long-term earnings growth rate of 5.5% and a Zacks Rank #2.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119%and +164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportUnilever NV (UN) : Free Stock Analysis ReportThe Clorox Company (CLX) : Free Stock Analysis ReportColgate-Palmolive Company (CL) : Free Stock Analysis ReportProcter & Gamble Company (The) (PG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Big Drugmakers That May Tread the M&A Path After Pfizer
In a surprising move, on Monday, drug giant, Pfizer PFE announced a definitive agreement to buy small cancer drugmaker, Array BioPharma ARRY for $48 per share in cash for a total enterprise value of approximately $11.4 billion. The offer price represents an impressive premium of 62% over Array BioPharma’s closing price of $29.59 on Friday.
The deal, if successful, will strengthen and diversify Pfizer's oncology lineup into melanoma and CRC from its existing strong portfolio of breast and prostate cancer drugs. Array’s new commercial medicine, Braftovi plus Mektovi is a treatment for BRAF-mutant melanoma, the deadliest form of skin cancer and was launched last year. The combination medicine is also being evaluated in label expansion studies for other cancer types including metastatic colorectal cancer (mCRC) with BRAF mutation.
The acquisition will also bring to Pfizer a large portfolio of royalty-generating out-licensed medicines. However, some analysts were not too happy with the deal, which they believe is expensive and will not add any significant near-term value. Array BioPharma may, however, prove to be a strategic fit for Pfizer over the long term.
Flurry of M&A Deals
As expected, there has been a flurry of M&A deal announcements this year in the pharmaceuticals/biotech industry.
Oncology and immuno-oncology, particularly, are key areas of focus. Bristol-Myers Squibb BMY, one of the largest pharma giants, is on track to close its previously announced acquisition of leading biotech company, Celgene CELG for a whopping $74 billion. This will be one of the largest acquisitions in recent times.
Other important acquisition announcements include Lilly’s purchase of small cancer biotech, Loxo Oncology, and Merck’s acquisition of Immune Design and pending acquisitions of small private cancer biotechs, Peloton Therapeutics and Tilos Therapeutics. Glaxo also closed its previously announced acquisition of small cancer biotech, TESARO for $5.1 billion in January. In non-oncology deals, Roche is due to acquire Spark Therapeutics for $4.8 billion per a deal announced in February.
Speculations Increase
Every time an M&A news surfaces, speculations are rife about which big drug/biotech company will tread on the inorganic growth path next.
Big pharma companies are cash rich, especially after the tax overhaul in 2017, which reduced tax rate. Given that it takes several years and millions of dollars to develop new therapeutics from scratch, large pharmaceutical companies sitting on huge piles of cash may prefer to buy innovative small/mid cap biotech companies to build out their pipelines. Other than that, sloppy sales of mature drugs due to pricing pressure and generic/biosimilar competition, government scrutiny of drug prices and dwindling in-house pipelines are some other factors that fuel the M&A appetite of large drugmakers.
The spate of M&A activity is expected to continue as drug/biotech companies look to use huge cash reserve and combat rivalry woes.
However, with Lilly, Glaxo, Roche and now Pfizer already announcing decent size buyout deals, the chances of them making another buyout soon are low. Bristol-Myers’ buyout of Celgene is one of the largest pharma mergers. Merck has been making smaller but regular acquisitions of small cancer biotechs this year.
Here we discuss three big drug/biotech companies, which are most likely to announce the next M&A deal. Meanwhile, significant innovations in cancer and gene therapies suggest that the acquisitions could mostly be in these areas.
Amgen, Inc. AMGN
Amgen has not made any significant M&A announcement for quite some time now. Though it has an intriguing line-up of early and mid-stage programs, its late-state pipeline is not that strong after approval of Aimovig for migraine and Evenity/romosozumab for osteoporosis in postmenopausal women.
Amgen is mostly dependent on label expansion of its growth products – Prolia, Xgeva, Vectibix, Nplate and Kyprolis and Blincyto. Most of its mature and highly successful drugs like Enbrel, Aranesp, Epogen, Neupogen and Neulasta are facing an array of branded and generic competitors. It thus looks in great need to buy mid- and late-stage assets to strengthen its pipeline.
Moreover, the company’s strong balance sheet and a moderate debt burden should allow it to expand its portfolio by acquiring or in-licensing attractive innovation. It had $26.3 billion in cash, cash equivalents and marketable securities at the end of March 2019.
Amgen could buy BioMarin or Alexion to diversify into the rare-disease market or Incyte to strengthen its cancer portfolio.
Gilead, Inc GILD
Gilead last bought Kite Pharma and Cell Design Labs in 2017 and has enough capacity to absorb an acquisition or two to bolster the company’s value. Gilead had $30.1 billion in cash, cash equivalents, and marketable securities at the end of March. Though its HIV franchise is doing well, it is struggling with sales of its HCV products. The company has long been looking to expand beyond antivirals into other therapeutic areas. It has regularly made collaborations to build a pipeline in newer areas like CAR-T therapy and NASH. Acquisition of a small biotech with a great oncology or NASH candidate or maybe even a large M&A deal could be in the offing.
Gilead could also buy BioMarin or Incyte or other smaller companies like Exelixis or Clovis Oncology. Interestingly, Gilead is also widely speculated to be a takeover target.
Johnson & Johnson JNJ
The last big acquisition for J&J was that of Swiss biotech Actelion for $30 billion in June 2017, which diversified its revenues in the pulmonary arterial hypertension (PAH) category. In February of the same year, J&J bought Abbott’s vision care business, Abbott Medical Optics for $4.325 billion, which has strengthened its Medical Device segment. Since then, it has bought only small companies like Auris Healthand BeneVir Biopharmor rights to innovative drug/medical device pipeline products.
Moreover, J&J has gained regulatory approvals for 18 new products since 2011 in HIV, cancer and cardiovascular areas. This year itself, it has already gained FDA approval for two new drugs, Balversa and Spravato. With most of its pipeline products getting approved in the past few years, J&J looks dependent on potential line extensions of its successfully marketed products like Simponi, Stelara, Zytiga, Darzalex, Xarelto and Imbruvica for sales growth opportunities. It hardly has any impressive candidate in the pipeline and could do well to build its pipeline through acquisition of a company with innovative technologies and pipelines.
We believe the company also has sufficient funds to pursue small bolt-on acquisitions to boost its portfolio. Its cash and cash equivalents totaled $14.7 billion at the end of March 2019.
Others Not Far Behind
Among the other bigshots, last year, Novartis bought gene therapy company Avexis while Sanofi scooped up two companies, Ablynx and Bioverativ, to strengthen its rare blood disorders portfolio. Biogen is due to close its previously announced (March 2019) acquisition of London based clinical-stage gene-therapy company, Nightstar Therapeutics soon. Despite the recent M&A deals, Novartis, Sanofi and Biogen still have enough capacity to make more such announcements in the near term.
Conclusion
Undoubtedly, the string of announcements in the first half sets the tone for the rest of the year. However, it should be kept in mind that 2018 had also begun with expectations of record-breaking M&A activity. However, the number of mergers and acquisitions dwindled after the first few months, probably because the potential acquisition targets demanded a premium.
So, it remains to be seen if the momentum lasts through 2019.
While Gilead carries a Zacks Rank #2 (Buy), J&J, Amgen and Pfizer have a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBristol-Myers Squibb Company (BMY) : Free Stock Analysis ReportJohnson & Johnson (JNJ) : Free Stock Analysis ReportPfizer Inc. (PFE) : Free Stock Analysis ReportAmgen Inc. (AMGN) : Free Stock Analysis ReportArray BioPharma Inc. (ARRY) : Free Stock Analysis ReportCelgene Corporation (CELG) : Free Stock Analysis ReportGilead Sciences, Inc. (GILD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Alphabet's Healthcare Push Gains Steam: Others Brace Up
AlphabetGOOGL is making every effort to capitalize on the growing dependence of healthcare sector on AI and tools like machine learning (ML), Augmented Reality/ Virtual Reality and Big Data analytics.The company’s plethora of healthcare initiatives is likely to intensify the competition further in this lucrative space which also includes tech giants like Amazon AMZN and Apple AAPL.An Overview of the Google-Sanofi DealAlphabet division Google’s latest partnership with Sanofi SNY is reflective of the company’s aggressive stance toward disrupting the healthcare sector and pharmaceutical industry.Per the partnership terms, Sanofi will leverage Google’s cloud and AI technologies and integrate them into its biological innovations and scientific data which in turn will accelerate the medicine discovery process.Further, the collaboration will aid in the identification of various type of treatments suitable for patients. Additionally, Google’s AI tools are likely to be utilized by Sanofi in improving marketing and supply efforts and in forecasting sales.Alphabet’s Pursuit of DominanceApart from the latest collaboration on drug discovery, Alphabet’s healthcare division, Verily has teamed up with Novartis, Sanofi, Otsuka and Pfizer to help these pharma companies in reaching the target patients for clinical trials, consequently improving the clinical trial methods.These alliances are expected to bolster Google’s footprint in specialties like cardiovascular disease, oncology, mental health, dermatology and diabetes.Notably, Verily’s joint venture with Sanofi, Onduo, targets people with Type 2 diabetes. The collaboration integrates devices, software, medicine and professional care together to provide better treatment and medication.Moreover, with Walgreens WBA Verily is working on several healthcare projects to make healthcare services affordable for the masses. Verily is working on a medication adherence pilot project which involves deployment of technically advanced devices to ensure the reach of proper medication to patients.Notably, in early 2019, Verily raised $1 billion in a funding round led by a private equity firm Silver Lake along with Ontario Teachers’ Pension Plan and other global investors. The funding has strengthened Verily’s resources toward strategic investments in healthcare projects, partnerships and acquisitions.We expect Alphabet’s expanding research and development activities, and collaboration with major healthcare companies to strengthen presence in the healthcare space. Alphabet currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. revenue-ttm | Alphabet Inc. Quote
Amazon & Apple: Potent Challengers
Amazon has been eyeing the healthcare market for some time. The e-commerce giant’s buyout of PillPack, an online pharmacy firm, has expanded its footprint in the pharmaceutical industry.Further, the e-commerce giant has also shown interest in the consumer health diagnostic market. Reportedly, it has plans to develop devices that will enable people to take vital medical tests at home, thereby improving the healthcare delivery time.Further, this Zacks Rank #3 stock recently started offering the option of paying for medical purchases made on its online retail platform through health savings accounts (HSA) and flexible savings accounts (FSA) debit cards. This will aid Amazon in understanding consumer purchasing pattern, which in turn will help it to enhance services and improve medical supplies business.Additionally, its service called Amazon Comprehend Medical aids in seamless extraction of medical information related to health condition, medication, dosage and treatment from unstructured data-like test reports, doctor’s notes and audio interviews. The service utilizes robust ML techniques and cloud services to extract data.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote
Meanwhile, Apple is leaving no stone unturned toward making iOS capable enough for storing and sharing of massive medical data. The updated Health Record section of its Health application enables iPhone users to access their medical records, lab reports and other crucial information from care providers like hospitals and clinics whenever required.
Further, this Zacks Rank #3 stock is looking into a deal with the US Department of Veterans Affairs to simplify hospital visits and improve care and treatment process for the US veterans by providing them access to their health records on iPhones. This will accelerate healthcare delivery times for veterans.
Apple Inc. Revenue (TTM)
Apple Inc. revenue-ttm | Apple Inc. Quote
To Conclude
Healthcare’s lucrative growth prospects will continue to allure tech giants. However, initiatives from Alphabet, Amazon and Apple positions them well to capitalize on these prospects.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportSanofi (SNY) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportWalgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
No-deal Brexit could cause 'critical medicine shortages' for NHS
Firms warn of medicine shortages. Photo: Press Association Suppliers to the NHS have warned Britain could face shortages of some critical medicines soon after a no-deal Brexit. Less common medicines could be the most likely to be at immediate risk if the next prime minister takes Britain out of the EU without a deal, causing widespread disruption to supply chains. The head of a trade body for pharmaceutical wholesalers, who together distribute more than 90% of all NHS medicines, warned it relied on a “just-in-time” model similar to the car industry. Martin Sawer, executive director of the Healthcare Distribution Association (HDA), said his 10 member companies had only about two weeks’ worth of stock available at any one time. Giving evidence to parliament’s Brexit select committee on Wednesday, Sawer told MPs his members expected a no-deal Brexit to mean “some critical shortages” in less widely used medicines. Several Conservative leadership candidates including Boris Johnson have suggested they would be willing to leave the EU without a deal, pushing the pound’s value down to five-month lows. READ MORE: Chris Grayling’s Brexit ferry saga cost £1m in legal fees Sawer said: “We would expect medicine shortages and a lot of price rises for the NHS to happen pretty quickly, and some shortages in constituencies around most of the UK. “In medicine, you have to get it 100% right. It’s not like supermarket shelves or car parks. You can delay that. You can’t delay it for critical medicines.” He said Britain had “months” of insulin stockpiled, and said more common, well-known products would not “necessarily” see problems because of higher stocks. But he said he could not criticise the government for its preparations, saying the NHS and department of health had carried out “fantastic” planning with a dedicated NHS shortages team. He predicted manufacturers on the other side of the world may no longer see sales of generic, less common medicines to the UK outside the EU as commercially viable, unless prices increase. Story continues READ MORE: The big hole in Boris Johnson’s Brexit trade deal plans Tory leadership contender Boris Johnson. Photo: Yui Mok/PA via AP Steve Bates, chief executive of the BioIndustry Association, also warned a disorderly no-deal Brexit would “negatively impact” patients and public health. He told MPs many ingredients could be created in one country, turned into a drug in another and packaged in another across Europe. Bates warned new checks or trade barriers at each step could hurt supply chains, and suggested it was too late to plan a new system to prepare for no-deal now before an October departure. “Changing any of this at speed is very difficult. The idea new things can be done in the timeframes we’re looking at is impossible,” he said. “Building a regulated manufacturing process does take years. We’re looking at 130-odd days to the deadline - moving things at that pace is un-doable.” He also said the government had still offered firms “no guidance” on its new emergency planning for critical supplies, after it had to cancel its previous ferry contracts for the former March deadline. READ MORE: Why a no-deal Brexit could mean more bureaucracy for many manufacturers |
‘Hard Core Fund’ Collects 50 BTC to Support Bitcoin Developers
According to venture capitalist Dovey Wan of Primitive Ventures, finding sustainable funding for bitcoin developers is the biggest challenge facing the ecosystem in 2019.
To bridge that gap, she’s helped gather 50 BTC — an amount worth just north of $450,000 at press time prices — that are now up for grabs.
Wan partnered with Bitmain alumPan Zhibiaoto create the nonprofitHard Core Fundin 2018, then started supporting Bitcoin Core contributors Luke Dashjr and Ben Woosley last fall.
Related:Bitcoin’s Price Snaps Longest Daily Win Streak Since 2018
Woosley told CoinDesk that he sends the fund co-founders an email every month detailing the engineering work he completed, including code review and pull requests on the Bitcoin Core GitHub page. With that information, the fund sends him a small portion of his year-long bitcoin salary.
A fresh batch of donations means the fund is now open to applications from more developers. While many contributors have donated anonymously to the fund, known benefactors including entrepreneur Kevin Pan ofPoolinand others from China’s crypto ecosystem.
“We collected 50 bitcoin,” Wan told CoinDesk. “Right now, you wouldn’t believe it, there are less than 10 full-time bitcoin developers. …We want to fund full-time independent bitcoin developers.”
To be fair, it’s hard to say how many people work full time on Bitcoin Core if you include independent research and open source, nonprofit projects like crypto wallets. Several organizations already supportopen source development, such as Chaincode Labs, Blockstream, MIT’s Digital Currency Initiative, andSquare. In the future, Dovey said, she expects companies like Microsoft to support independent developers.
Related:A New Bitcoin Exchange On the Colombian-Venezuelan Border Will Help Refugees
Yet while Woosley expressed ample respect for the above-mentioned companies, he said this fund is the “most independent” funding model for bitcoin development that he’s seen so far.
“We should be wary of forming a bias, of groupthink,” Woosley said. “Having diverse funding models helps protect us against groupthink on any given topic.”
The fund has no say over what the developers prioritize, although the cofounders are themselves fascinated by updates that relate to the lightning network and fungibility. Instead, the money is distributed based on evidence of past contributions to Bitcoin Core and continued work on any aspect of the project the developer chooses.
Prospective applicants can now send their biography information and GitHub profile to Wan’s Primitive Ventures email.
Pan, who helps manage the fund’s daily operations, told CoinDesk:
“We are looking for someone who’s got a deep understanding of Bitcoin’s architecture and its existing problems to solve…if he or she can train, coach, or facilitate other developers, propose new BIPs [protocol updates] and new directions for technical improvement, that’s even better.”
As one of the donors, Qtum Foundation founder Patrick Dai agreed with Dovey and Woosley about the importance of contributing to open source development.
“The Qtum project inherited a lot of great technology from Bitcoin’s development work,” Dai told CoinDesk. “There are so many companies and projects and individuals benefiting a lot from Bitcoin software. The easiest way to say thanks is to give some support to the talented developers behind the bitcoin network.”
Image of Dovey Wan at Consensus 2019 via Brady Dale, CoinDesk
• Bitcoin Price Trades Flat on Facebook Libra Blockchain Launch
• Brazilian Financial Authorities Announce Regulatory Sandbox For Blockchain |
Teladoc (TDOC) Up 22% in a Year: Will the Rally Continue?
Teladoc Health, Inc.TDOC shares have been in favor with investors by virtue of its consistent top-line growth, increasing subscriptions and visits.
This has led the stock to gain 23% in a year’s time compared with itsindustry’s rise of 4%.
Teladoc is one of the few listed companies with a leading market share in the burgeoning telehealth market. The company has been continuously navigating in the domestic as well as overseas telehealth market through mergers and acquisitions.
Teladoc is fast gaining ground in the rapidly growing telehealth services industry in the United States, with ample scope for flourishing, owing to rising health care costs following inefficient care, duplication of services, significant waste and extreme variation in access, cost and quality of care.
Moreover, Teladoc has the capability to address this inefficiency by providing superior quality of care through platform that caters to consumer demand and physician availability in real-time and in various modalities such as video, web, mobile and telephone. The emergence of technology, via big data and analytics, cloud-based solutions, online video and mobile applications, also offers the company with huge opportunity for growth.
Teladoc’s strategy to complement its organic growth with inorganic means is commendable. The acquisitions of HealthiestYou, Best Doctors, Advance Medical have increased the breadth of its business. The latest acquisition of Advance Medical has given it a global exposure, which should enable it to harness the international markets.
A report by Medgadget says that Global Telehealth Market is expected to grow at a healthy CAGR of 29.8% by 2023. Teladoc is one of the few companies that should gain from the global demand for telehealth, given its acquisition of Advance Medical, which has expanded the company’s business in Latin America and Asia. Advance Medical allows Teladoc to deliver care in 125 countries in more than 120 languages.
The company has also formed a virtual care service called Teladoc Global Care, with infrastructural support from the recent acquisitions of Advance Medical and Best Doctors. This new platform has enabled to offer its services globally, which was until now restricted within the United States.
We expect the company’s Global Care platform to attract huge traction as employers and insurers demand international services for telehealth, due to growing number of expatriates.
We thus expect the company’s revenues to be aided by increased business from international operations, while its U.S. business is already doing well. The company’s strong growth is expected to keep the rally in the shares alive.
Teladoc, carrying a Zacks Rank #3 (Hold), has gained 39% year to date, compared with the industry’s growth of 9%.
Some better-ranked stocks in the same space are HealthEquity, Inc. HQY, ICON PLC ICLR and Premier, Inc. PINC. Each of these stocks carries a Zacks Rank #2 (Buy). You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
HealthEquity and Premier beat estimates in each of the four quarters with an average positive surprise of 19.2% and 4.3%, respectively. ICON surpassed estimates in three of the four reported quarters with an average positive surprise of 1.3%.
This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHealthEquity, Inc. (HQY) : Free Stock Analysis ReportTeladoc, Inc. (TDOC) : Free Stock Analysis ReportICON PLC (ICLR) : Free Stock Analysis ReportPremier, Inc. (PINC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
4 Toxic Stocks to Abandon or Sell Short for Solid Gains
Precise identification of rightly-priced stocks is the key to successful investing. However, in practice, overpriced toxic stocks and the correctly-priced stocks are intertwined in such a manner that it is difficult to distinguish between the two.Generally overhyped toxic stocks are susceptible to outside shocks. Moreover, these stocks are loaded with a high level of debt. The price of these stocks is artificially inflated. Nonetheless, the higher price of toxic stocks is only short-lived as it is higher than its true intrinsic value.Investors are likely to benefit from precise identification of toxic stocks with the help of an investing strategy called short selling. This strategy allows investors to sell a stock first and then buy it when price falls.While short selling excels in bear markets, it typically loses money in bull markets.So accurately identifying toxic stocks and abandoning or short selling those at the right time is the key to safeguard your portfolio from big losses.Screening CriteriaHere is a winning strategy that will help you to identify overpriced toxic stocks:Most recent Debt/Equity Ratio greater than the median industry average: High debt/equity ratio implies high leverage. High leverage indicates a huge level of repayment that the company has to make in connection with the debt amount.P/E using 12-month forward EPS estimate greater than 50: A very high forward P/E implies that a stock is highly overvalued.% Change in F (1) and F (2) Estimate (12 Weeks) less than 0: Negative EPS estimate revision for this and the next fiscal year during the past 12 weeks points to analysts’ pessimism.Zacks Rank more than or equal to #3 (Hold): We have not considered Buy-rated stocks that generally outperform the market.Here are four of the 26 toxic stocks that showed up on the screen:Live Nation Entertainment, Inc.LYV is a Beverly Hills, CA-based live entertainment company. Over the past 30 days, the Zacks Consensus Estimate for current-quarter earnings has remained unchanged at 39 cents per share. The stock currently has a Zacks Rank #4 (Sell).Vancouver, Canada-basedFirst Majestic Silver Corp.AG is engaged in the production, development, exploration, and acquisition of silver mines in Mexico. Over the past 30 days, the Zacks Consensus Estimate for current-year earnings per share has remained unchanged at 1 cent. The stock currently has a Zacks Rank #3. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Sydney, Australia-basedAtlassian Corporation PLCTEAM is engaged in designing, developing, licensing and maintaining of software and the provisioning of software hosting services. Over the past 30 days, the Zacks Consensus Estimate for current-quarter earnings has remained unchanged at 16 cents. The stock currently has a Zacks Rank # 3.Frederick, MD-basedU.S. Silica Holdings, Inc.SLCA is a producer of industrial minerals, including sand proppants, whole grain silica, ground silica, fine ground silica, calcined kaolin clay and aplite clay. Over the past 30 days, the Zacks Consensus Estimate for current-quarter loss per share has widened from 4 cents to 5 cents. The stock currently has a Zacks Rank #3.Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.Disclosure:Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure:Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance.
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 reportAtlassian Corporation PLC (TEAM) : Free Stock Analysis ReportLive Nation Entertainment, Inc. (LYV) : Free Stock Analysis ReportU.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis ReportFirst Majestic Silver Corp. (AG) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Did Maplewood International Real Estate Investment Trust's (CVE:MWI.UN) Share Price Deserve to Gain 35%?
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, theMaplewood International Real Estate Investment Trust(CVE:MWI.UN) share price is up 35% in the last year, clearly besting than the market return of around -2.0% (not including dividends). That's a solid performance by our standards! However, the stock hasn't done so well in the longer term, with the stock only up 6.9% in three years.
View our latest analysis for Maplewood International Real Estate Investment Trust
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over the last twelve months, Maplewood International Real Estate Investment Trust actually shrank its EPS by 33%. So we don't think that investors are paying too much attention to EPS. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.
Revenue was pretty stable on last year, so deeper research might be needed to explain the share price rise.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
Investors should note that there's a difference between Maplewood International Real Estate Investment Trust's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Maplewood International Real Estate Investment Trust's TSR of 41% for the year exceeded its share price return, because it has paid dividends.
It's good to see that Maplewood International Real Estate Investment Trust has rewarded shareholders with a total shareholder return of 41% in the last twelve months. That certainly beats the loss of about 5.0% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Brandon Peters says he's transferring to Illinois
Brandon Peters will have two seasons with the Illini. (AP Photo/Paul Sancya) Does Illinois have a new starting quarterback? Former Michigan QB Brandon Peters said Tuesday night that he’d be enrolling in grad school at Illinois. As a grad transfer, Peters is immediately eligible and has two seasons of eligibility left. View this post on Instagram A post shared by Brandon Peters (@brandonpeters.18) on Jun 18, 2019 at 5:08pm PDT Peters saw significant playing time in 2017 for the Wolverines as the team had three quarterbacks who threw over 80 passes each. Peters was the team’s second-leading passer and was 57-of-108 passing for 672 yards with four touchdowns and two interceptions. He started Michigan’s game against Wisconsin that season and left the game because of a concussion. He returned to play in the Outback Bowl. With Shea Patterson on the roster in 2018, Peters was the team’s No. 3 quarterback behind Patterson and Dylan McCaffrey. Peters could have a clear path to the starting job at Illinois. Starter AJ Bush was a senior in 2018 and MJ Rivers, the only other QB to see significant playing time in 2018, decided to transfer. Second big transfer for Illinois in two days Peters’ arrival follows that of former USC wide receiver Josh Imatorbhebhe. The ex-Trojan said Monday that he was going to Illinois and became the third former USC player to go to Illinois this offseason. Imatorbhebhe is also a grad transfer. Committed. pic.twitter.com/ymv3jANg2e — Josh Imatorbhebhe (@JoshBhebhe) June 17, 2019 The arrivals of Peters and Imatorbhebhe are welcome news for Illinois fans after a rough transfer offseason. Two other graduate transfer wide receivers had previously committed to the school before changing their minds and USC QB Matt Fink flirted with the idea of transferring to the Illini before deciding to stay at USC. Oh, and former Georgia TE Luke Ford had his immediate eligibility waiver denied by the NCAA. Ford, an Illinois native, had petitioned to play immediately so that his sick grandfather could see him play. Story continues - - - - - - - Nick Bromberg is a writer for Yahoo Sports More from Yahoo Sports: CP3, Harden relationship deemed ‘unsalvageable’ From mid-major to NBA draft: Morant's historic rise Coach K on Zion’s NBA potential: 'He’s a gift from God' Why D-Wade supported son at Miami Pride |
What Does Hilltop Holdings Inc.'s (NYSE:HTH) Share Price Indicate?
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Hilltop Holdings Inc. (NYSE:HTH), operating in the financial services industry based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Hilltop Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Hilltop Holdings
The stock is currently trading at US$20.32 on the share market, which means it is overvalued by 22% compared to my intrinsic value of $16.66. This means that the opportunity to buy Hilltop Holdings at a good price has disappeared! Another thing to keep in mind is that Hilltop Holdings’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Hilltop Holdings’s earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
Are you a shareholder?HTH’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe HTH should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on HTH for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for HTH, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hilltop Holdings. You can find everything you need to know about Hilltop Holdings inthe latest infographic research report. If you are no longer interested in Hilltop Holdings, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Rent-A-Center (RCII) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Rent-A-Center (RCII) is a stock many investors are watching right now. RCII is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.49 right now. For comparison, its industry sports an average P/E of 15.89. Over the past year, RCII's Forward P/E has been as high as 36.07 and as low as 9.32, with a median of 12.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RCII has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.81.
Finally, investors will want to recognize that RCII has a P/CF ratio of 2. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RCII's P/CF compares to its industry's average P/CF of 6.34. Over the past 52 weeks, RCII's P/CF has been as high as 2.02 and as low as 0.94, with a median of 1.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Rent-A-Center is likely undervalued currently. And when considering the strength of its earnings outlook, RCII sticks out at as one of the market's strongest value stocks.
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 reportRent-A-Center, Inc. (RCII) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Are Investors Undervaluing Ryerson Holding (RYI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Ryerson Holding (RYI). RYI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.31. This compares to its industry's average Forward P/E of 9.33. RYI's Forward P/E has been as high as 7.69 and as low as 3.31, with a median of 5.08, all within the past year.
Finally, our model also underscores that RYI has a P/CF ratio of 1.48. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RYI's current P/CF looks attractive when compared to its industry's average P/CF of 5.70. RYI's P/CF has been as high as 7.64 and as low as 1.48, with a median of 2.09, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ryerson Holding is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RYI feels like a great value stock at the moment.
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 reportRyerson Holding Corporation (RYI) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Casey's General Stores (CASY) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Casey's General Stores (CASY) is a stock many investors are watching right now. CASY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 26.66 right now. For comparison, its industry sports an average P/E of 26.91. CASY's Forward P/E has been as high as 27.92 and as low as 20.80, with a median of 25.04, all within the past year.
Investors will also notice that CASY has a PEG ratio of 2.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CASY's PEG compares to its industry's average PEG of 2.87. Over the last 12 months, CASY's PEG has been as high as 3.28 and as low as 1.66, with a median of 2.70.
Finally, investors will want to recognize that CASY has a P/CF ratio of 12.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.45. Over the past year, CASY's P/CF has been as high as 12.84 and as low as 6.92, with a median of 8.35.
These are just a handful of the figures considered in Casey's General Stores's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CASY is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCaseys General Stores, Inc. (CASY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Oasis Midstream Partners LP (OMP) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Oasis Midstream Partners LP (OMP). OMP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.83. This compares to its industry's average Forward P/E of 12.34. Over the last 12 months, OMP's Forward P/E has been as high as 10.25 and as low as 4.83, with a median of 6.91.
We should also highlight that OMP has a P/B ratio of 1.16. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.89. Within the past 52 weeks, OMP's P/B has been as high as 1.31 and as low as 0.64, with a median of 0.96.
Finally, investors should note that OMP has a P/CF ratio of 4.16. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.91. OMP's P/CF has been as high as 9.58 and as low as 2.97, with a median of 4.32, all within the past year.
These are just a handful of the figures considered in Oasis Midstream Partners LP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OMP is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportOasis Midstream Partners LP (OMP) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Are Investors Undervaluing Weight Watchers International (WW) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Weight Watchers International (WW). WW is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.24. This compares to its industry's average Forward P/E of 15.89. WW's Forward P/E has been as high as 31.50 and as low as 5.58, with a median of 14.27, all within the past year.
WW is also sporting a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WW's industry has an average PEG of 1.31 right now. Within the past year, WW's PEG has been as high as 1.97 and as low as 0.24, with a median of 0.88.
Finally, investors should note that WW has a P/CF ratio of 6.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. WW's current P/CF looks attractive when compared to its industry's average P/CF of 6.34. WW's P/CF has been as high as 27.39 and as low as 4.90, with a median of 10.39, all within the past year.
These are only a few of the key metrics included in Weight Watchers International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WW looks like an impressive value stock at the moment.
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 reportWeight Watchers International Inc (WW) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is ManpowerGroup (MAN) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
ManpowerGroup (MAN) is a stock many investors are watching right now. MAN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.27. This compares to its industry's average Forward P/E of 13.70. Over the past year, MAN's Forward P/E has been as high as 12.28 and as low as 7.34, with a median of 10.07.
We should also highlight that MAN has a P/B ratio of 2.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.58. Over the past 12 months, MAN's P/B has been as high as 2.20 and as low as 1.45, with a median of 1.94.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MAN has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.4.
Finally, investors should note that MAN has a P/CF ratio of 9.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MAN's P/CF compares to its industry's average P/CF of 11.22. Over the past year, MAN's P/CF has been as high as 9.93 and as low as 5.80, with a median of 8.24.
These are just a handful of the figures considered in ManpowerGroup's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MAN is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportManpowerGroup Inc. (MAN) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Are Investors Undervaluing Wesco Aircraft Holdings (WAIR) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Wesco Aircraft Holdings (WAIR). WAIR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.55. This compares to its industry's average Forward P/E of 16.97. WAIR's Forward P/E has been as high as 15.53 and as low as 8.46, with a median of 10.57, all within the past year.
WAIR is also sporting a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WAIR's PEG compares to its industry's average PEG of 1.56. WAIR's PEG has been as high as 1.29 and as low as 0.70, with a median of 0.88, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. WAIR has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Wesco Aircraft Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WAIR feels like a great value stock at the moment.
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 reportWesco Aircraft Holdings, Inc. (WAIR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here's Why You Should Hold on to Stryker (SYK) Stock Now
Stryker CorporationSYK is well poised for growth on the back of solid international improvement, diversified product portfolio and acquisition-driven strategy. However, pricing pressure remains a concern.The stock currently carries a Zacks Rank #3 (Hold).Price PerformanceShares of Stryker have gained 26.5%, outperforming the industry’s growth of 14.4% on a year-to-date basis. Moreover, the stock outpaced the S&P 500 Index’s rally of 15.2%.
What’s Deterring the Stock?An unfavorable pricing environment continues to weigh on Stryker’s core businesses. The company’s top line has also been adversely affected by such pressure and we expect this to continue in the near term as well.Factors to Boost StrykerA robust and diversified product portfolio with the exposure to robotics, AI for health care and Medical Mechatronics has helped Stryker to gain a competitive edge in the MedTech space. In fact, a wide range of products makes the company immune to any significant sales shortfall during economic downturns.Moreover, focus on international growth has proven to be beneficial for the company. A substantial turnaround in the company’s European business owing to its effective restructuring measures reflects a potential upside.On the back of an acquisition-driven strategy, the company has been bolstering growth profile over a considerable period of time. Moreover, its K2M acquisition drove the core Neurotechnology & Spine unit in the last reported quarter.Expansion in operating margin is a positive while strong outlook for 2019 is indicative of bright prospects.Which Way Are Estimates Headed?For 2019, the Zacks Consensus Estimate for revenues is pegged at $14.80 billion, indicating an improvement of 8.8% from the year-ago period. For adjusted earnings per share, the same is pinned at $8.15, suggesting growth of 11.5% year-ago reported figure.Key PicksSome better-ranked stocks from the broader medical space are Cardiovascular Systems, Inc. CSII, Oxford Immunotec Global PLC OXFD and Haemonetics Corporation HAE, each sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Cardiovascular Systems has earnings growth rate for fiscal fourth quarter of 2019 of 33.3%.Oxford Immunotec has a long-term earnings growth rate of 25%.Haemonetics has a long-term earnings growth rate 13.5%.
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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 reportOxford Immunotec Global PLC (OXFD) : Free Stock Analysis ReportHaemonetics Corporation (HAE) : Free Stock Analysis ReportStryker Corporation (SYK) : Free Stock Analysis ReportCardiovascular Systems, Inc. (CSII) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
A Note On Neoen S.A.'s (EPA:NEOEN) ROE and Debt To Equity
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Neoen S.A. (EPA:NEOEN).
Over the last twelve monthsNeoen has recorded a ROE of 2.1%. One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.021 in profit.
See our latest analysis for Neoen
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Neoen:
2.1% = €12m ÷ €655m (Based on the trailing twelve months to December 2018.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see Neoen has a similar ROE to the average in the Renewable Energy industry classification (2.1%).
That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Neoen clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 2.58. Its ROE is quite low, even with the use of significant debt; that's not a good result, in my opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
But note:Neoen may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
OPEC wrangle over meeting date exposes deepening Saudi-Iran rift
By Alex Lawler, Rania El Gamal and Vladimir Soldatkin
LONDON/DUBAI/MOSCOW (Reuters) - OPEC's month-long wrangle over a date for its next meeting has highlighted a changing dynamic in the group with decisions increasingly driven by long-time leader Saudi Arabia in tandem with non-OPEC Russia, angering member states like Iran.
Decision-making has never been easy in the Organization of the Petroleum Exporting Countries, which groups 14 Arab and non-Arab oil producers, some of which have longstanding rivalries.
But tensions have become more pronounced as Iran has sought a bigger say while its exports tumble due to U.S. sanctions and as a new Riyadh-Moscow axis has developed. OPEC sources say this means future meetings and decisions may be even more fraught.
OPEC members finally agreed on Wednesday to meet on July 1 followed by a meeting with non-OPEC states on July 2, switching from previously agreed dates of June 25-26.
Agreement was reached after a tussle over timings that coincided with rising tension in the Gulf over attacks in May and June on oil tankers. Washington and Riyadh have blamed Tehran for the attacks, which Iran has denied.
OPEC sources said Russia was behind a suggestion to push the meeting back until after G20 talks due to be held in late June, a stance backed by Saudi Arabia.
"Some people might think the Russians were actually members of OPEC," said one OPEC source.
A second OPEC source said: "This has never happened before, usually OPEC decides on a date and that's it."
The original timing would have meant the meeting took place just before an end-of-June deadline for the expiry of a deal on output curbs that was agreed between OPEC and non-OPEC producers, an alliance known as OPEC+. The next gathering in Vienna will decide whether to extend the pact.
"Iran is maybe upset about not having as much power over what happens," said another OPEC source.
Iran, a founding OPEC state, has been pushed down the group's production rankings as U.S. sanctions imposed in a nuclear row have cut its crude exports to about 500,000 barrels per day (bpd) in May from around 2.5 million bpd in April 2018.
U.S. sanctions have also hurt Venezuela, another OPEC founding member whose economic problems had already sent its oil industry into freefall. Its exports have tumbled to below 800,000 bpd from well above 1 million bpd last year.
PROTAGONISTS
At the same time, exports from Iraq, an OPEC state which neighbours Iran, have climbed, while exports have also surged from the United States, which is not party to the OPEC+ deal.
OPEC with Russia and other non-OPEC producers are now set to decide whether OPEC+ extends or adjusts the supply deal that involves cutting 1.2 million bpd. The deal has been implemented since Jan. 1.
Saudi Arabia and Russia, which together account for more than 40% of the oil produced by the OPEC+ group, have become the main protagonists of the global supply pact. But Riyadh's close coordination with Moscow on OPEC affairs has rattled others.
Iranian Oil Minister Bijan Zanganeh said this month that some OPEC members -- comments widely seen as directed at Saudi Arabia -- had turned OPEC into a political hub against two other founding members, namely Iran and Venezuela.
"I believe that these countries are taking OPEC towards collapse, but we want OPEC to be preserved; these two countries will undermine this organization by instigating infighting in OPEC," he said, according to Iran's Oil Ministry news agency SHANA.
Feuding between majority Sunni Muslim Saudi Arabia and predominantly Shi'ite Iran have often emerged in previous OPEC meetings, reflecting long-running rivalry outside of the organization.
The two nations have been battling for years what are seen as proxy wars in Syria and Yemen. The tanker attacks in the Gulf have now added to tensions.
(Additional reporting by Ahmad Ghaddar in London; Editing by Edmund Blair) |
NVIDIA Stock Jumps 5.4% on Volvo Self-Driving Truck Partnership
Shares of graphics chip specialistNVIDIA(NASDAQ: NVDA)popped 5.4% on Tuesday after the company andAB Volvo(NASDAQOTH: VOLVY)announced they were teaming up to develop self-driving commercial trucks, buses, and industrial vehicles for a wide range of applications.
That brings NVIDIA stock's year-to-date 2019 return to 14.9%, which slightly trails theS&P 500's 17.5% return. Nonetheless, due tochallengesin its gaming and data center businesses, the former market darling's stock price is still just a bit above half of its all-time closing high of $289.39, set in October.
Here's what you should know.
Image source: Getty Images.
NVIDIA and Volvo said that they're partnering to develop an end-to-end artificial intelligence (AI) system to power Volvo's fully autonomous trucks and machines. They will use NVIDIA's DRIVE AI platform for training in the data center, simulation, and in-vehicle computing.
This multiyear partnership involves enabling fully autonomous driving in a wide range of applications, including freight transport, public transport, refuse and recycling collection, construction, mining, and forestry. Sweden's Volvo is a major manufacturer of a variety of trucks, buses, construction equipment, and big engines for marine and industrial applications. (The company doesn't make Volvo cars. It sold its car unit toFordin 1999, which sold it to Chinese automakerGeelyin 2010.)
"Trucking is the world's largest network -- a network that through online shopping puts practically anything, anywhere in the world, quickly within our reach," NVIDIA CEO Jensen Huang said in the press release. "The latest breakthroughs in AI and robotics bring a new level of intelligence and automation to address the transportation challenges we face. We are thrilled to partner with Volvo Group to reinvent the future of trucking."
Volvo didn't provide a timeline for deployment on public roads of its autonomous vehicles using NVIDIA's tech.
Image source: Volvo.
NVIDIA's new Volvo partnership is a big win, as Volvo is the world's second-biggest maker of trucks afterDaimler AGand is renowned for its focus on safety. The fact that it chose NVIDIA over its competitors suggests that it views NVIDIA's autonomous vehicle AI tech as the best and safest currently available. One can be pretty sure that Volvo popped the hood, so to speak, on NVIDIA's tech to check it out before inking the multiyear agreement.
The potential market size for self-driving trucks is massive. In 2016, in the United States alone, there were nearly 34 million trucks registered for business purposes, including 3.7 million heavy-duty Class 8 trucks. In 2017, trucks moved about 71% of all domestic freight tonnage, generating revenue of $700.1 billion, according to the American Trucking Associations.
In its most recently reported quarter, NVIDIA's auto platform's revenue grew 14% year over year to $166 million, accounting for 7.5% of its total revenue of $2.22 billion. This growth, however, pales to what appears to be on the radar when fully autonomous vehicles become legal on public roads across the U.S., which many predict will happen within five years.
In the autonomous car space, NVIDIA has formed partnerships withToyota Motor, Volkswagen, Mercedes-Benz, and others. And its activities in the self-driving truck realm include investing in Chinese autonomous trucking start-up TuSimple.
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Beth McKennaowns shares of NVIDIA. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has adisclosure policy. |
What to Know About No-Credit-Check Loans
No-credit-check loans sound great, but are they? Here's what you need to know before getting one of these loans.
Image source: Getty Images
When you apply for most types of loans, includingpersonal loans,mortgages, and auto loans, lenders typically check your credit.
They do this for one simple reason: Your credit is a good indicator of whether you’re a responsible borrower or not. By assessing your credit score and looking at your credit report, lenders can determine if you’ve paid your debts and if you are likely to pay back future loans.
The problem is, if you have bad or no credit, this credit check could be an obstacle to securing financing when you need it. If you know that your credit isn’t great, you may be tempted by lenders that advertise “no-credit-check loans.” After all, these lenders are promising they’ll give you the money you’re looking for even with an imperfect credit score -- which can sound pretty good when you’re in need of funds that you suspect most lenders will deny you.
The problem is, these no-credit-check loans often have very unfavorable terms for consumers. While you may be able to get a loan, you could be creating a lot of long-term financial trouble for yourself if you actually borrow and try to pay back what you owe.
When lenders promise not to check your credit, they do so knowing they’re likely to get borrowers who don’t have a strong history of repaying debts. Lenders aren’t in the business of just giving away money to people for the fun of it -- especially when there’s a good chance many borrowers won’t repay the loans they’ve taken out.
Lenders offering no-credit-check loans have typically figured out a way to make money, even in cases where they’re dealing with borrowers who don’t have a good financial track record. Typically, these lenders do this in a few different ways:
• They charge really high fees and really high interest rates.Payday loans are one common example of loans that typically don’t require a credit check. But, by the time you factor in all the fees and costs payday lenders charge, payday lenders often end up charging an effective annual percentage rate (APR) of 400%.
• They set up the loans so you’re forced to make payments. Some lenders do this by requiring you to write post-dated checks they’ll cash when payments come due or by requiring you to provide access to your bank account and permission to auto-debit funds. When lenders put you in a position where you’re forced to make payments, youhaveto deal with the loan. Often times that’s done by taking out another loan and incurring additional fees and costs if you can’t afford to have the payment taken from your account when it’s due.
• They make the consequences of not paying really high.A common example of this is with car title loans, which are often offered without credit checks. Lenders require you to put your car up as collateral with these loans, so your vehicle could be repossessed if you can’t repay what you owe.
Lenders make sure their interests are taken care of when they offer no-credit-check loans -- and the steps they take to do so often worsen your financial position. You risk overdrafting your account, being forced to take out multiple additional costly loans, paying high interest and fees, and potentially losing your possessions acting as collateral for the loan. It’s just not worth it.
Some lenders that provide financing to borrowers with bad credit, or no credit, are better than others.
In fact, there are online lenders that actually offer loans at relatively reasonable rates to people who haven’t yet had a chance to build credit. Some lenders can do this because they look beyond your credit score and also consider your education and experience.
Most of the lenders that offer reasonable rates, though, don’t specifically market their loans as “no-credit-check loans.” Lenders who use these terms have often chosen them for a reason: To prey upon borrowers who they think are desperate and willing to accept funding even with unfavorable terms.
To find lenders that actually offer reasonable loans to borrowers with imperfect credit, use tools likeThe Ascent’s guide to personal loans for bad credit borrowers. You can also consider peer-to-peer lenders, which can make it easier to qualify for funding than if you only rely on a bank.
When you search specifically for lenders offering no-credit-check loans or bad credit loans, you also want to read the fine print carefully and make sure you understand loan terms. Some of the key things to look at include:
• Upfront fees and costs.
• The annual percentage rate, or APR. This takes fees into account, so is a more accurate measure of the total cost of the loan than just looking at interest rates.
• Loan qualifying requirements. Steer clear of lenders that require you to write post-dated checks or pledge your car as collateral.
• Repayment timeline. Many legitimate online personal loan lenders allow repayment over many months, or even several years. Be wary of lenders that expect you to pay back your loan within weeks, as there’s a greater chance you’ll be forced to borrow again.
Make sure to read everything carefully and don’t ever take out a loan you don’t understand or aren’t confident you can repay.
It’s imperative you don’t take out a bad credit loan with unfavorable terms just because you need money, as this is likely to trap you in a cycle of debt that makes your overall financial situation worse.
Take the time to shop around, to understand your loan options, and to find a lender that will actually offer you reasonable financing. There are options out there, you just need to know where to look.
The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either. Our number one goal is helping people find the best offers to improve their finances. That is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. |
Is Twilio a Buy?
One of last year's hottest stocks is still lighting it up in 2019.Twilio(NYSE: TWLO)nearly quadrupledin 2018, and it's not done making its shareholders rich. The leading provider of in-app communication solutions is trading 59% higher so far this year, hitting fresh all-time highs last week.
Twilio is in the right place -- or, more specifically, the rightapps-- at the right time. Twilio arms developers with the tools to make their smartphone apps more efficient, and the proof is in the growth pudding. Revenue surged 81% inits latest quarter, with its base revenue growing even faster. Revenue has accelerated for five consecutive quarters, and Twilio's growth rate has doubled in the process. The stock has been a wealth-altering game changer for the past year and change -- a six-bagger since the start of last year -- but have the gains outpaced the improving fundamentals? Let's explore why Twilio is still a buy at current levels.
Image source: Twilio.
Popping sixfold over the past 18 months is one way to make sure you ping on more analyst radars, and this week it's Richard Valera at Needham initiating coverage of Twilio. He's inspired by the market darling's strong early market position as well as its comprehensive platform and efficient sales model. He sees Twilio's ability to seamlessly integrate all forms of digital communication within apps as a winner for both native apps where it's currently feasting to the more traditional enterprises that will inevitably make the digital migration.
Valera is starting his coverage of the stock with a buy rating. His price target of $165 suggests just 16% of upside from where the stock is now. Even the Street high here -- Monness Crespi Hardt boosted its price goal to $175 last month -- implies just an increase of 23%. However, we've seen this before. Twilio may seem to be closing in on the ceiling, only to come through with another blowout quarterly performance.
Wall Street still can't catch up to Twilio. It has clocked in with adjusted earnings that are more than triple analyst expectations in two of the past three quarters. Revenue growth keeps accelerating. Twilio's dollar-based net expansion rate continues to check in well north of 100%, proof that developers continue to lean on its growing array of communication solutions more and more with every passing quarter.
No stock rises indefinitely, and Twilio will have its date with at least near-term mortality eventually. However, as long Twilio keeps hitting out of the park every quarter and consumers continue to rely on smartphone apps to make their lives more convenient, you don't want to bet against Twilio.
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Rick Munarrizhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Twilio. The Motley Fool has adisclosure policy. |
Phone.com Launches New Communicator Softphone
Built in-house by VoIP's foremost experts on serverless architecture, cloud-based UCaaS platform runs on all Mac and Windows computers and will integrate HD Voice, video collaboration, team messaging, one-click conferencing, call recording, IVR and other business communications
NEWARK, NJ / ACCESSWIRE / June 19, 2019 /Phone.comtoday introduced a completely overhauled version of itsPhone.com Communicator softphone, an application for users to easily manage all channels of business communications directly from any Windows or Mac desktop computer or laptop.
For small and medium-sized businesses (SMBs), Phone.com Communicator's user-centric design provides unfettered visibility to inboxes, address books, call logs, and the industry's best cloud-based business phone system every time they turn on their computer. The redesigned softphone is free for Phone.com customers.
''Phone.Com Communicator is purpose-built for agility and can transform any desktop into a feature-rich, web-based phone that is as powerful as it is easy-to-use,'' said Alon Cohen, EVP and CTO, Phone.com. ''Streamlined design simplifies how users make and receive phone calls from anyPhone.comnumber, view voicemails and transcriptions, recent calls list, contacts, and dial-back options.''
Serverless architecture, on which the new Phone.com Communicator is built, is inherently scalable, secure and ensures that cloud-basedbusiness phone systemsare not only highly-available, but also operate at peak performance levels while consuming minimal resources.
For Phone.com's more than 30,000 business customers across the United States and Canada, Communicator will provide mobility, flexibility and eliminate the need to purchase capital expenditures like costly desktop phones.
The Phone.com brand is synonymous with innovation, which not only reflects year-over-year growth for nine straight years, but also executive leadership's persona. Having founded the company that made the first ever VoIP phone call, Cohen's expertise with internet-based telephony is unrivaled.
''Unlike our previous softphone, which was based on a third-party product, Phone.com developed the new Communicator in-house to serve as a platform for ongoing innovation. Today's launch is a major milestone in Phone.com's multi-phased strategic roadmap for a new, streamlined Communication tool that will integrate and allow seamless connectivity from any device or platform, including iOS and Android. Among the additional updates to be announced over the following months are advanced messaging, video meeting rooms (VMRs) and more,'' added Cohen.
Investments in advanced cloud infrastructure and next-generation ''compute services'' like AWS Lambda validate Phone.com's commitment to empowering small businesses with the advanced communications technology they need to adapt, evolve and compete with large corporations. AWS Lambda allows developers to leverage Phone.com's set of lightweight APIs to extend UC services into third-party portals, middleware and CRM platforms, and provides the flexibility to create custom integrations for specific workflows.
"When it comes to supporting SMBs, Phone.com does this (adaptability) better than pretty much any hosted provider I know of,'' said Jon Arnold, an award-winning, tenured enterprise communications analyst. ''Riding with AWS, scale isn't a problem, and with their team of developers, they can quickly bring new features to market. Phone.com has embraced the API model for driving innovation, bringing programmability to their offering, and offer over 50 customizable features and integrations.''
For small businesses, entrepreneurs and innovative enterprises, Phone.com is a comprehensive cloud-basedbusiness phone systemthat offers enterprise-grade, omnichannel unified communications and collaboration (UCaaS) services without requiring any contract. Phone.com's award-winning UCaaS platform includes HD voice, video conferencing, team messaging, collaboration, follow-me, CRM integration, IVR, queues, fax, audio conferencing and many other contact features.
''Digital transformation is no longer an abstract concept to be considered and dealt with by future generations, but a present-day reality,'' said Ari Rabban, CEO, Phone.com. ''Business communications must be flexible, scalable and mobile for businesses to be agile, defined as the ability to adapt without sacrificing productivity. The world is changing, as is the way people work. Phone.com Communicator keeps today's workforce connected without being tied to a single desk or location. Users will be more accessible, more responsive, and more productive than ever before.''
For additional information onCommunicatoror to secure your Business Associate Agreement, please visitwww.Phone.com.
About Phone.com
Founded in 2008 by veteran telecommunication entrepreneurs, Phone.com provides more than 30,000 businesses across the U.S and Canada with comprehensive, flexible, and reliable cloud-based communication and collaboration solutions. Phone.com's innovative services, award-winning 24/7 U.S.-based support, coupled with experienced executive leadership and forward-thinking strategic planning, has led to 10 straight years of growth. With over 50 customizable features including audio and video conferencing, call forwarding, voicemail transcription, IVR, vanity and virtual toll-free 800 and local numbers, Phone.com's business VoIP allows you to connect with anyone anywhere at any time.
Phone.com has been recognized by the Inc. 500|5000 as well as Deloitte's Technology Fast 500 for fastest growing private companies. Connect with Phone.com onFacebook, follow us onTwitter, talk to us at 844-746-6312 or visit us atwww.phone.com
Contacts
[["", "Work: 1-202-904-2048"], ["m.razzak@jmrconnect.net", "www.phone.com"]]
Links
https://www.phone.com/features/communicator/https://www.phone.com/phone-features/
SOURCE:Phone.com
View source version on accesswire.com:https://www.accesswire.com/549227/Phonecom-Launches-New-Communicator-Softphone |
They Meet, We Rally
It looks like the Fed won’t completely dominate this week!This wasn’t your normal do-nothing session ahead of a central bank statement. The major indices soared on Tuesday by 1% or more based on a trade Tweet from you-know-who.President Trump wrote about a “very good” phone conversion today with China President Xi and that the two leaders would have an “extended meeting” at the G20 in Japan next week.It would have been disheartening for these two guys to be in the same place at the same time and NOT talk about the trade conflict that has the whole world biting its fingernails.Needless to say, the market loved the news. Nobody expects this get-together to solve the problem, but we’ll never get a trade resolution unless these two sides get back to talking to each other. There hasn’t been much conversation since talks broke down last month.The reaction from the major indices on Tuesday was a broad rally, especially for the trade-sensitive chip stocks that helped bring about another solid performance from tech.As a result, the NASDAQ continued to lead its counterparts with a surge of 1.39% (or nearly 109 points) to 7953.88.The Dow wasn’t that far behind on a percentage basis as stocks impacted by the trade conflict jumped on hopes that the G20 meeting could set the stage for an agreement down the road.The index rose 1.35% (or 353 points!) to 26,465.54.However, the biggest news from the indices on Tuesday was from the S&P. It finally broke through 2900 by rising 0.97% to 2917.75.It is now less than 1% away from its all-time high!So here we go. Tomorrow’s Fed statement will either keep this rally going or stop it in its tracks.The market isn’t expecting action from the Fed tomorrow, but it does want to hear dovish language that sets the stage for a cut (or cuts) in the near future.Let’s see if it gets what it wants...Today's Portfolio Highlights:Stocks Under $10:Now that the market is heading solidly higher on expectations for an accommodative Fed, Brian thinks this is a good time to buy the dip. That was the idea behind adding Unisys (UIS), a worldwide technology services and solutions company. The stock had a good session on Tuesday, but was right around its 52-week low previously. The editor expects to capitalize on further bounces moving forward. The portfolio is nearing its goal of being fully invested. Today’s addition of UIS brings it up to 14 positions, which means there’s only one open spot left. Read the full write-up for more.By the way, this portfolio easily had the best performer of the session. SunPower (SPWR) was upgraded by a major brokerage today along with a few other solar names. The stock soared by more than 22.5%. SPWR is now up nearly 33% in the portfolio since being added in late April.Value Investor:With the EU looking to stimulate, the Fed about to cut rates and a Trump/Xi meeting coming to the G20; Tracey thinks this is a good time to make a couple additions to the portfolio. First up, the editor bought “boring” office products staple ACCO Brands (ACCO). But boring can be beautiful when looking for value. This stock pays a dividend that yields 2.6% and has a “rock solid management” to go along with its classic value fundamentals. This Zacks Rank #2 (Buy) is a small cap so it could be volatile, but it’s also expected to grow earnings by 11.5% next year.Meanwhile, it looks like WW (WW) made a mistake when it changed its name from Weight Watchers. The company -- now focusing on wellness instead of just weight loss -- gave back all of its Oprah gains, but Tracey thinks the selloff was overdone. She still remembers making more than 165% on “WTW” in 2017. Despite bouncing off recent lows, she still considers WW to be a value play and likes that earnings are expected to jump next year by more than 23%. Read the full write-up for more on today’s buys of ACCO and WW. Price targets are coming in the weekly Friday commentary.Healthcare Innovators:Long-term subscribers of this portfolio know how much Kevin likes medical devices company Align Technology (ALGN). The portfolio has pulled profits from this “smile maker” on several occasions, including a triple-digit return last year. Now that shares have slipped 8% in the past week, the editor can’t resist adding this proven winner again. He also bought GW Pharma (GWPH), which is the only FDA-approved cannabis drug maker. Kevin thinks it’s headed to new highs above $200. Both ALGN and GWPH are Zacks Rank #2s (Buys). The portfolio also sold the stalling Illumina (ILMN), but still banked a nice return of approximately 20% in 6 months. Read the full write-up for moreTechnology Innovators:The market is moving higher and Brian would like to get this portfolio fully invested. Therefore, he plans to add two positions this week. Today’s buy was Comtech Telecom (CMTL), a Zacks Rank #1 (Strong Buy) advanced communications solutions company. The stock has a great earnings history with an average positive surprise of 216% over the past four quarters. Plus, CMTL is in the highly-ranked Wireless Equipment space (top 7% of the Zacks Industry Rank) and enjoys a good valuation. Read the full write-up for more and be prepared for another buy on Thursday.Zacks Short List:The portfolio swapped out two names in this week's adjustment. It short-covered Boeing (BA) and Inphi Corp. (IPHI), and immediately filled these spots by adding salesforce.com (CRM) and CF Industries (CF). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading theShort List Trader Guide.Until Tomorrow,Jim Giaquinto
Recommendations from Zacks' Private Portfolios:Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy).Click here to "test drive" Zacks Ultimate for FREE >>Zacks Investment Research |
QuickLogic (QUIK) Plans to Raise Funds Via Public Offering
QuickLogic CorporationQUIK has announced its plan to raise funds through an underwritten public offering. Oppenheimer & Co. Inc. will be the underwriter of the offering. Further, the company has allowed a 30-day window to the underwriter for the additional purchase of shares of common stock.
The provider of ultra-low power, comprehensive, flexible sensor processing solutions plans to utilize the net proceeds from this offering primarily to fund future acquisitions, to provide for its working capital and general corporate purposes. Moreover, it also intends to use part of the net proceeds for the expansion of its next generation new products.
The offering, which is subject to customary closing conditions, has no expected closing date.
QuickLogic has been executing strategic acquisitions to diversify offerings and expand operating markets. The company in January this year acquired SensiML Corporation in an all-stock deal. The buyout is anticipated to empower QuickLogic’s product portfolio with machine-learning (ML) tools required to devise embedded algorithms.
QuickLogic Corporation Price and Consensus
QuickLogic Corporation price-consensus-chart | QuickLogic Corporation Quote
Growth Pospects
Increasing adoption of QuikLogic’s sensor processing solutions and embedded FPGA (eFPGA) Intellectual Property (IP) Licensing is a tailwind. The company’s new support center in Taiwan related to eFPGA IP has also aided it in developing relationships with prospective customers, which can eventually lead to design wins.
Further, the acquisition synergies will help QuickLogic to explore emerging markets, including AI in edge computing and IoT endpoint devices.
Notably, per ResearchAndMarkets report, “global AI in embedded IoT devices market” is anticipated to advance to nearly $26.2 billion by 2023. Moreover, the report predicts that by 2023, semiconductors and embedded devices exceeding 87 billion units “will be shipped in support of IoT”.
Meanwhile, QuickLogic’s strength in smartphone market and increasing demand for wearable products in the B2B market bode well. Furthermore, the company is working with a Japanese smartphone OEM, which is expected to adopt QuickLogic’s EOS S3 SoC for its new models scheduled to be launched in 2020.
To Conclude
The company reported a loss in first-quarter of fiscal 2019. Moreover, revenues missed the Zacks Consensus Estimate.
Further, consolidating semiconductor market and stiff competition from notable eFPGA chip makers, including Intel and Xilinx XLNX, among others, remains a concern.
Additionally, QuickLogic’s eFPGA and SoC development, and enhancement efforts to stay afloat in the competitive market are resulting in higher capital expenditures, which remain an overhang on margin expansion.
Notably, the company exited the first quarter of fiscal 2019 (ending Mar 31, 2019) with cash and cash equivalents of $23.1 million compared with $26.4 million registered in the previous quarter. Moreover, the company has no long-term debt.
We believe raising funds will help the company to boost balance sheet and utilize resources to expand relationships with prospective customers, which will eventually lead to design wins.
Zacks Rank & Other Key Picks
QuickLogic carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Match Group, Inc. MTCH and Autohome Inc. ATHM, both flaunting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Match Group and Autohome have a long-term earnings growth rate of 15.2% and 20.9%, respectively.
This Could Be the Fastest Way to Grow Wealth in 2019
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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 reportAutohome Inc. (ATHM) : Free Stock Analysis ReportMatch Group, Inc. (MTCH) : Free Stock Analysis ReportQuickLogic Corporation (QUIK) : Free Stock Analysis ReportXilinx, Inc. (XLNX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
This is Why General Dynamics (GD) is a Great Dividend Stock
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. General Dynamics in Focus General Dynamics (GD) is headquartered in Falls Church, and is in the Aerospace sector. The stock has seen a price change of 10.42% since the start of the year. Currently paying a dividend of $1.02 per share, the company has a dividend yield of 2.35%. In comparison, the Aerospace - Defense industry's yield is 1.02%, while the S&P 500's yield is 1.94%. Taking a look at the company's dividend growth, its current annualized dividend of $4.08 is up 12.4% from last year. Over the last 5 years, General Dynamics has increased its dividend 5 times on a year-over-year basis for an average annual increase of 10.18%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. General Dynamics's current payout ratio is 33%. This means it paid out 33% of its trailing 12-month EPS as dividend. GD is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $11.76 per share, which represents a year-over-year growth rate of 4.81%. Bottom Line Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, GD is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). 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 General Dynamics Corporation (GD) : Free Stock Analysis Report To read this article on Zacks.com click here. |
First Industrial Realty Trust (FR) is a Top Dividend Stock Right Now: Should You Buy?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
First Industrial Realty Trust in Focus
First Industrial Realty Trust (FR) is headquartered in Chicago, and is in the Finance sector. The stock has seen a price change of 28.07% since the start of the year. The real estate investment trust is currently shelling out a dividend of $0.23 per share, with a dividend yield of 2.49%. This compares to the REIT and Equity Trust - Other industry's yield of 4.29% and the S&P 500's yield of 1.94%.
In terms of dividend growth, the company's current annualized dividend of $0.92 is up 5.7% from last year. Over the last 5 years, First Industrial Realty Trust has increased its dividend 5 times on a year-over-year basis for an average annual increase of 20.15%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First Industrial Realty Trust's current payout ratio is 57%, meaning it paid out 57% of its trailing 12-month EPS as dividend.
FR is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $1.71 per share, which represents a year-over-year growth rate of 6.88%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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 reportFirst Industrial Realty Trust, Inc. (FR) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
MIDEAST STOCKS-Abu Dhabi outperforms as most Gulf mkts gain but Saudi retreats
* First Abu Dhabi to shut Qatar Operations * Nine of twelve Saudi banks decline * Saudi's Mahara surges to daily limit * 24 of 30 stocks on Egypt's index slide By Ateeq Shariff June 19 (Reuters) - Abu Dhabi stocks outperformed Gulf markets on Wednesday buoyed by financial stocks, while Saudi snapped two days of gains pressured by banking shares. Last week's attacks on tankers in the Gulf of Oman raised fears of confrontation in a vital route for global oil supply and heightened tensions between Iran and the United States. Investor concerns have eased somewhat, after both Tehran and Riyadh said they did not want a war, but tensions in the region remain high. The Abu Dhabi index added 1.3%, as First Abu Dhabi Bank (FAB) and Emirates Telecommunications Group were up 1% and 1.1% respectively. On Wednesday, First Abu Dhabi Bank, the biggest lender in the United Arab Emirates (UAE), said that it will close its sole branch in Qatar, citing Doha's regulatory actions against the bank. Earlier in June, Qatar placed further restrictions on FAB as it continues a probe into alleged currency manipulation begun after the UAE and other Arab states launched a boycott against Qatar in mid-2017. However, First Abu Dhabi Bank said Qatari actions have no impact on its business outside Qatar, as the Doha branch contributed less than 0.03% of FAB's full-year 2018 net profit. Qatar's index closed 0.8% higher with lender Masraf Al Rayan surging 2.5% and Qatar International Islamic Bank jumping 4.6%. In Dubai, the index was up 0.4%, led by a 1.2% rise in Dubai Islamic Bank and a 3.6% surge in Emaar Malls . The Saudi index declined 0.7% with most of its banking shares sliding. Riyad Bank dropped 3.5% and National Commercial Bank, the country's largest lender, lost 1.2%. Saudi Arabia's consumer prices fell in May from a year earlier for the fifth month in a row, but the consumer price index (CPI) rose marginally from April, signalling the kingdom is having some success in boosting its non-oil sector. The annual CPI decline has partly reflected the fading impact of last year's introduction of a value-added tax (VAT), economists have said. But Maharah Human Resources jumped 10% to 83.4 riyals ($22.24). The stock was offered at 69 riyals per share. Egypt's blue-chip index traded in the red for the second day. The index was down 0.5 percent with Commercial International bank sliding 0.5 percent. Exchange data on Wednesday showed Egyptian and Arab investors were net sellers of Egyptian stocks. SAUDI ARABIA The index lost 0.7% to 8,936 points ABU DHABI The index rose 1.3% to 4,975 points DUBAI The index added 0.4% to 2,639 points QATAR The index gained 0.8% to 10,507 points EGYPT The index fell 0.5% to 14,132 points BAHRAIN The index edged up 0.2% at 1,454 points OMAN The index was up 0.7% to 3,943 points KUWAIT The index was flat at 6,304 points (Reporting by Ateeq Shariff in Bengaluru; Editing by Andrew Cawthorne) View comments |
Do Hormel Foods's (NYSE:HRL) Earnings Warrant Your Attention?
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
In contrast to all that, I prefer to spend time on companies likeHormel Foods(NYSE:HRL), which has not only revenues, but also profits. Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
View our latest analysis for Hormel Foods
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). That makes EPS growth an attractive quality for any company. We can see that in the last three years Hormel Foods grew its EPS by 7.9% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note Hormel Foods's EBIT margins were flat over the last year, revenue grew by a solid 2.4% to US$9.6b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Hormel Foods'sfutureprofits.
We would not expect to see insiders owning a large percentage of a US$22b company like Hormel Foods. But we do take comfort from the fact that they are investors in the company. With a whopping US$94m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. I discovered that the median total compensation for the CEOs of companies like Hormel Foods, with market caps over US$8.0b, is about US$11m.
The Hormel Foods CEO received US$6.4m in compensation for the year ending October 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.
One positive for Hormel Foods is that it is growing EPS. That's nice to see. Earnings growth might be the main game for Hormel Foods, but the fun doesnotstop there. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. Of course, just because Hormel Foods is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
U.S. House Speaker Pelosi cites key problems in way of USMCA trade pact approval
WASHINGTON, June 19 (Reuters) - U.S. House of Representatives Speaker Nancy Pelosi on Wednesday outlined several key impediments to congressional approval of a U.S.-Mexico-Canada trade agreement, as Canadian Prime Minister Justin Trudeau was set to arrive in Washington to push for final approval of the pact.
Speaking at a breakfast for reporters sponsored by the Christian Science Monitor, Pelosi did not provide any timetable for the House possibly taking up legislation to approve the massive trade pact. Citing concerns over enforcement tools, labor and environmental protections and provisions on pharmaceuticals, Pelosi said the deal cannot simply be "NAFTA with sugar on top."
(Reporting by Richard Cowan Editing by Chizu Nomiyama) |
Who Has Been Selling Nerds on Site Inc. (CNSX:NERD) Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellNerds on Site Inc.(CNSX:NERD), you may well want to know whether insiders have been buying or selling.
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Nerds on Site
In the last twelve months, the biggest single sale by an insider was when the , John Harbarenko, sold CA$133k worth of shares at a price of CA$0.21 per share. That means that an insider was selling shares at around the current price of CA$0.19. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was John Harbarenko.
Happily, we note that in the last year insiders paid CA$53k for 233k shares. But insiders sold 708k shares worth CA$133k. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Nerds on Site insiders have about 2.9% of the stock, worth approximately CA$471k. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
It doesn't really mean much that no insider has traded Nerds on Site shares in the last quarter. Our analysis of Nerds on Site insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. Along with insider transactions, I recommend checking if Nerds on Site is growing revenue. This free chart ofhistoric revenue and earnings should make that easy.
Of courseNerds on Site may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 1-U.S. mortgage applications fall from 33-month high
(Adds background, details on latest data)
NEW YORK, June 19 (Reuters) - U.S. mortgage applications declined last week from about a 33-month peak as most home borrowing costs moved up from their lowest levels since September 2017, the Mortgage Bankers Association said on Wednesday.
The Washington-based group's seasonally adjusted index on loan requests, both to buy a home and to refinance one, fell to 511.8 in the week ended June 14. It fell 3.4% from the prior week's 529.8, which was the highest reading since September 2016.
Interest rates on 30-year fixed-rate "conforming" mortgages, or loans whose balances are $484,350 or less, averaged 4.14% last week. They were up 2 basis points from prior week's 4.12%, the lowest level since September 2017.
Other 30-year mortgage rates MBA tracks were unchanged to 3 basis points higher from the week before.
Meanwhile, 15-year mortgage rates averaged 3 basis points lower at 3.50%, while the average borrowing costs on five-year adjustable home loans rose 2 basis points to 3.45%.
Mortgage rates generally increased in line with higher bond yields last week as traders pared their safe-haven bond holdings after U.S. President Donald Trump called off threatened tariffs on Mexico and encouraging data on retail sales and industrial output.
MBA's seasonally adjusted gauge on refinancing applications fell 3.5% to 1,888.8 from prior week's 1,956.5, which was the highest since November 2016.
The refinance share of mortgage activity grew to 50.2% of total applications from 49.8% the week before.
“Borrowers were sensitive to rising rates, but the refinance share of applications was still at its highest level since January 2018, and refinance activity was at its second highest level this year," Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.
The group's barometer on loan applications for home purchases, which is seen as proxy on future housing activity, slipped 3.5% to 268.6. The latest figure was up almost 4% from a year ago.
"Strong demand from first-time buyers and low unemployment continue to push this year’s purchase activity above a year ago," Kan said.
(Reporting by Richard Leong Editing by Chizu Nomiyama and Jonathan Oatis) |
With A -5.6% Earnings Drop, Did Hammond Manufacturing Company Limited (TSE:HMM.A) Really Underperform?
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Examining how Hammond Manufacturing Company Limited (TSE:HMM.A) is performing as a company requires looking at more than just a years' earnings. Below, I will run you through a simple sense check to build perspective on how Hammond Manufacturing is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its electrical industry peers.
See our latest analysis for Hammond Manufacturing
HMM.A's trailing twelve-month earnings (from 29 March 2019) of CA$4.4m has declined by -5.6% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 5.0%, indicating the rate at which HMM.A is growing has slowed down. What could be happening here? Well, let's look at what's going on with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Hammond Manufacturing has fallen short of achieving a 20% return on equity (ROE), recording 8.4% instead. Furthermore, its return on assets (ROA) of 5.4% is below the CA Electrical industry of 7.0%, indicating Hammond Manufacturing's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Hammond Manufacturing’s debt level, has declined over the past 3 years from 14% to 12%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 35% to 82% over the past 5 years.
Though Hammond Manufacturing's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. You should continue to research Hammond Manufacturing to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for HMM.A’s future growth? Take a look at ourfree research report of analyst consensusfor HMM.A’s outlook.
2. Financial Health: Are HMM.A’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 29 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Have Insiders Been Buying New Media Investment Group Inc. (NYSE:NEWM) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inNew Media Investment Group Inc.(NYSE:NEWM).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for New Media Investment Group
In the last twelve months, the biggest single sale by an insider was when the , Gregory Freiberg, sold US$1.2m worth of shares at a price of US$14.33 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The silver lining is that this sell-down took place above the latest price (US$9.53). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Gregory Freiberg.
Happily, we note that in the last year insiders paid US$1.9m for 129k shares. But they sold 85000 for US$1.2m. Overall, New Media Investment Group insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.8% of New Media Investment Group shares, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
The fact that there have been no New Media Investment Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in New Media Investment Group and we see no evidence to suggest they are worried about the future. Along with insider transactions, I recommend checking if New Media Investment Group is growing revenue. This free chart ofhistoric revenue and earnings should make that easy.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
10 Ways to Plan a More Earth-Friendly Vacation
We’re currently in the grip of a climate emergency, and it's something to think about as yourplan your next travel adventure.
Globally, the last five years were thefive hottest on record. If melting ice causes a sea level rise of just a few feet, it will wipe out pretty much every single beach in the world. Not to mention the Maldives, much of the South Pacific and a good chuck of Manhattan.
So, help save the planet -- andsave some money, too. Next time you feel the urge to get away, go green! Here are 10 ways to do it.
Eds note: Graham Hughes holds the Guinness World Record for visiting every country on Earth without flying. He hosts the Travel Channel's "Lonely Planet: Odyssey with Graham Hughes" and is the author of Man of the World.
This, perhaps surprisingly, is the No. 1 rule of green travel. The electrical drain of air conditioners is staggering, accounting for over a fifth of the total energy used in buildings worldwide. But that aside, the gases used in A/C units are incredibly bad for the environment.
So try to stay in older buildings with high ceilings (and ceiling fans), windows that open, and rooms set around a courtyard. That setup is popular across Europe and Latin America for its natural cooling properties.
When you’re in a car, just roll down the windows. And if you absolutely must use the A/C, keep it to a minimum and don’t ever leave it on in your room when you're not there.
I’m living proof that you can get to literally every country in the world without flying. That’s not to say it was easy (nobody else has come close to beatingmy record), but it’s possible — and if we’re going to tackle the current climate emergency, we need to take this matter seriously.
So, do your best to keep your feet on the ground.
Seriously consider the alternatives to air travel, such as taking a train or driving an electric car. Make the journey part of the adventure, not the tedious bit before the fun begins.
I’ll happily admit that I intensely dislike the typical hotel experience, and, given an alternative, I’d much rather sleep pretty much anywhere else. But still, there are sound environmental reasons for opting for a homestay vacay.
Couchsurfing.com, Airbnb and HomeAway will give you opportunities to stay somewhere nice without contributing to the almost industrial processes that can take place behind the scenes when you stay at a big hotel.
Those include overuse of air conditioning, food wastage and an insane amount of washing.
Transporting food over long distances is a big problem for the environment, so don't force your meals to go that extra mile. When you travel, you should not be expecting the exact same dietary repertoire you enjoy at home.
This is no big deal if you love diving into the local cuisine and trying new things. But even if you’re a bit stuck in your ways, it’s fairly easy to find alternatives to your usual faves.
However, if you’re a vegetarian or vegan there are certain countries where finding food that doesn’t have meat in it can be an infuriating process. Which brings me to my next point.
Food is one of the great joys in life, and I do enjoy cooking for my family. But cooking when you're on vacation? I can see why some people might recoil in horror at the very idea.
That said, self-catering not only saves you a heap of cash, it's also heaps better for the environment than eating in cafes and restaurants every day of the week — something most of us would never dream of doing at home.
So, pop down to the local minimart.Prepare your own meals.Make sandwiches for lunch.Eat fresh fruit and veggies. You’ll not only be helping to reduce your carbon footprint, you’ll be saving money in the bargain.
Nearly every major city around the world has a half-decent public transportation system, and it’ll invariably be miles cheaper than taking taxis or renting a car.
An argument that some people make is that public transit is more stressful. I can only guess these people have never driven in London, New York, Mexico City, Rome, Bangkok, Cairo — I could go on.
When you drive, you must navigate unfamiliar roads (sometimes on the opposite side than you're used to), keep out of bus lanes, avoid getting caught in intersections, and not go the wrong way down a one-way street. And, parking can be a huge and expensive headache.
You do this at home no doubt, but when you're abroad it's often easier "when you don’t know the system" to just chuck everything in the same bin. Please don’t do that.
Carry your used cans and glass bottles with you until you find a dedicated recycling bin — most big cities have them dotted around the place. Before booking your accommodation, check to see if it has facilities for guests to recycle their trash.
And never, ever litter. Not only is it hideously disrespectful, there’s a much greater chance of your garbage getting into the water system and harming marine life.
I stayed for a few years in the beautiful tropical archipelago of Bocas Del Toro in Panama, and there was one thing that drove me mad.
If you bought a canned soft drink from one of the local supermarkets, the checkout assistant would jam a plastic drinking straw under the tab and put the can in a small black plastic bag. Creating so much plastic waste less than a mile from where endangered turtles lay their eggs is beyond irresponsible.
Things have greatly improved in recent years, but still, when you’re traveling take your own pocket bags and take a reusable coffee cup with a lid. You can use it for hot and cold drinks wherever you go — and, more often than not, save money.
Cruise ships not only burn an insane amount of fuel and rely heavily on air conditioning, but they also waste an incredible amount of resources. Anyone who has been on a cruise will tell you the food waste alone is staggering.
There’s also the local environmental impact of building and maintaining the massive concrete cruise ship terminals that stick out from a tropical waterfront like a septic thumb.
Untilgreen cruisesbecome a thing (if only somebody could come up with a clever way of moving a ship using the power of the wind), I’d give cruising a swerve.
A number of websites allow you to find out the size of your carbon footprint after filling out a short questionnaire. I heartily suggest that you try this.
The result might surprise you, especially if you think for a moment that I’m joking about flying less. (Or not flying all!) Then, find a carbon offset program and make a donation, maybe usingyour credit card.
Carbon offsets allow you to invest in environmental projects around the world in order to help balance out your carbon footprint. Every little bit helps.
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Masco (MAS) Set to Divest Cabinetry and Windows Businesses
Masco CorporationMAS intends to sell off cabinetry and window businesses in an attempt to minimize exposure to the new construction market. This move follows the completion of its strategic review of businesses, which was announced in March.The company has plans to divest Ann Arbor-based Masco Cabinetry, which includes well-known brand names such as Merillat and KraftMaid, and window businesses Milgard Windows and Doors of Tacoma, Wash, and United Kingdom-based UK Window Group, in three separate transactions.Notably, Cabinetry Products, and Windows and Other Specialty Products segments reported combined net sales of $1.7 billion, operating profit of $120 million, and adjusted earnings before interest, taxes, depreciation and amortization of $161 million in 2018. The segments represent about 20% of Masco’s consolidated net sales and 10% of consolidated operating profit.The sale is expected to be completed within the next six-nine months. Post the competition of the transactions, Masco aims to focus on the repair and remodel segment of the housing market.Over the past five years, the company has been pursuing strategic alternatives such as growing its exposure in the housing market’s repair and remodel segment in order to reduce cyclicality. The sale of cabinetry and window businesses will mark Masco’s completion of the process of reducing exposure to the new construction segment of the market. This will position the company to focus on less cyclical Plumbing Products and Decorative Architectural Products businesses, going forward.Post the completion of the divestments, Masco's portfolio will comprise Behr paint, Delta and Hansgrohe faucets, bath and shower fixtures, Kichler decorative and outdoor lighting, and HotSpring spas.Share Price PerformanceShares of Masco have outperformed its industry year to date. However, bottom-line estimates for 2019 have moved 0.7% south over the past 60 days, depicting analysts’ concern over the stock’s earnings growth potential. The company has been experiencing negative impact of inventory rebalancing by a few customers, and lower volume and softness in certain markets served. During the first quarter, its adjusted gross and operating margins were hurt by lower volumes and unfavorable mix. Nonetheless, Masco remains confident about the rest of 2019, considering the recent sales trend and industry perspective.
Zacks Rank & Key PicksMasco currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Arcosa, Inc. ACA, Construction Partners, Inc. ROAD and TopBuild Corp. BLD, each sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Arcosa, Construction Partners and TopBuild have a three-five year earnings growth rate of 12.6%, 10%, and 28%, respectively.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportTopBuild Corp. (BLD) : Free Stock Analysis ReportMasco Corporation (MAS) : Free Stock Analysis ReportConstruction Partners, Inc. (ROAD) : Free Stock Analysis ReportArcosa, Inc. (ACA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
How Do Analysts See Houlihan Lokey, Inc. (NYSE:HLI) Performing In The Years Ahead?
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The most recent earnings announcement Houlihan Lokey, Inc.'s (NYSE:HLI) released in May 2019 showed that the company endured a slight headwind with earnings deteriorating from US$172m to US$159m, a change of -7.6%. Below is my commentary, albeit very simple and high-level, on how market analysts view Houlihan Lokey's earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Houlihan Lokey
Market analysts' consensus outlook for the coming year seems buoyant, with earnings increasing by a robust 21%. This growth seems to continue into the following year with rates reaching double digit 30% compared to today’s earnings and falls to US$194m by 2022.
Although it’s useful to be aware of the rate of growth year by year relative to today’s level, it may be more beneficial to gauge the rate at which the business is moving on average every year. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Houlihan Lokey's earnings trajectory over time, be more volatile. To calculate this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 8.9%. This means that, we can expect Houlihan Lokey will grow its earnings by 8.9% every year for the next couple of years.
For Houlihan Lokey, I've put together three key aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is HLI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether HLI is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of HLI? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
A Beloved Biotech ETF Could Lure Traders Again
With biotechnology stocks and the related exchange-traded funds recently showing some signs of life, it could be just a matter of time before aggressive traders embraced leveragedhealthcare ETFs.
What Happened
TheDirexion Daily S&P Biotech Bull 3X Shares(NYSE:LABU) is one of the premier avenues for juicing short-term biotechnology returns and the triple-leveraged fund is doing just that with a gain of 21.21% over the past week.
LABU is designed to deliver triple the daily returns of the S&P Biotechnology Select Industry Index (SPSIBITR), an equal-weight index.
Why It's Important
As Monday's news ofPfizer Inc.(NYSE:PFE) acquiringArray BioPharma(NASDAQ:ARRY) indicates, there remains robust appetite among larger, blue-chip biotechnology and pharmaceuticals companies for their more nimble peers, particularly the companies with immunotherapy and oncology exposure.
There have been some other catalysts fueling LABU's recent run, including some political help. Earlier this month, President Trump “was expected to sign an executive order meant to streamline regulations and cut costs associated with biotechnology,”according to CNBC.
Also of importance for short-term traders considering LABU is the triple-leveraged ETFs flirtation with the $49 area, which it managed a modest close above on Tuesday. That is a resistance area and a strong move above that price range could enable LABU to easily added the 12.55% necessary to reclaim its 200-day moving average, something the fund has notdone since October.
What's Next
What is curious about the recent bullishness in LABU is that it hasn't been accompanied by noteworthy inflow or volume spikes, two traits that frequently mark this fund's rallies.
Over the trailing five- and 10-day periods, LABU is not among the top Direxion leveraged ETFs in terms of inflows, nor is it among the worst offenders for outflows, according to issuer data.
Perhaps the good news is that LABU's bearish counterpart, the Direxion Daily S&P Biotech Bear 3X Shares (NYSE:LABD) has not been seeing increased activity, either. LABD attempts to deliver triple the daily inverse returns of the S&P Biotechnology Select Industry Index.
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TOTAL's (TOT) Pangea III to Assist Exploration Projects
TOTAL S.A.TOT has brought online its new Pangea III supercomputer, which is currently the most powerful commercial supercomputer of the world. Developed by International Business Machines Corporation IBM, this supercomputer will increase the company’s computing capabilities by almost 5 to 31.7 petaflops (equivalent to 170,000 laptops combined) and triple the storage capacity to 76 petabytes.This massive investment in technology will allow TOTAL to carry on with the goal of expanding the hydrocarbon business globally. Since this supercomputer is based on IBM's Power9 CPUs, it will be utilized to improve and accelerate TOTAL’s oil and gas exploration missions. Pangea III will be able to crunch massive volume of seismic data and utilize modeled seismic images to spot resource locations.The above information will be useful for TOTAL in complex geologic environments wherein resources are trapped under salt, such as in Brazil, the Gulf of Mexico, Angola and the Eastern Mediterranean.Other Benefits to be Derived From Pangea IIIPangea III will also increase TOTAL’s business efficiency by enabling an early assessment of the value of exploration acreage and asset opportunities, thereby enhancing selectivity in its new ventures. The new supercomputer will be able to integrate a field’s production history to generate more reliable predictive production models at a much faster rate and far more accurately than the previous ways.TOTAL’s Position Among Super MajorsTOTAL operates in an elite group of super majors, thereby exposing it to tough competition. TOTAL has to compete with the likes of ExxonMobil XOM and Royal Dutch Shell RDS.A, among others, for acquiring assets and licenses for the exploration and production of oil and natural gas, and sale of manufactured products based on crude and refined oil.TOTAL has created a niche for itself through the start-up of new cash-accretive projects, plus contribution from new assets, mainly Maersk Oil, which will continue to boost the company’s cash-flow generation capability.In addition to production of hydrocarbons, TOTAL is also seriously focused on the development of alternate sources of energy and lending assistance in lowering global emission. This in a way allows it to explore and benefit from an area that is not taken up so seriously by other supermajors.Price PerformanceYear to date, shares of the company have underperformed its industry.
Zacks RankTOTAL currently has a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInternational Business Machines Corporation (IBM) : Free Stock Analysis ReportTOTAL S.A. (TOT) : Free Stock Analysis ReportRoyal Dutch Shell PLC (RDS.A) : Free Stock Analysis ReportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
A Look At The Intrinsic Value Of HELLA GmbH & Co. KGaA (ETR:HLE)
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Today we will run through one way of estimating the intrinsic value of HELLA GmbH & Co. KGaA (ETR:HLE) by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
Check out our latest analysis for HELLA GmbH KGaA
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (\u20ac, Millions)", "2019": "\u20ac206.50", "2020": "\u20ac207.97", "2021": "\u20ac223.61", "2022": "\u20ac292.90", "2023": "\u20ac317.30", "2024": "\u20ac336.02", "2025": "\u20ac350.13", "2026": "\u20ac360.66", "2027": "\u20ac368.50", "2028": "\u20ac374.36"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x9", "2021": "Analyst x9", "2022": "Analyst x2", "2023": "Est @ 8.33%", "2024": "Est @ 5.9%", "2025": "Est @ 4.2%", "2026": "Est @ 3.01%", "2027": "Est @ 2.17%", "2028": "Est @ 1.59%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 7.98%", "2019": "\u20ac191.24", "2020": "\u20ac178.37", "2021": "\u20ac177.61", "2022": "\u20ac215.46", "2023": "\u20ac216.16", "2024": "\u20ac211.99", "2025": "\u20ac204.57", "2026": "\u20ac195.15", "2027": "\u20ac184.66", "2028": "\u20ac173.73"}]
Present Value of 10-year Cash Flow (PVCF)= €1.95b
"Est" = FCF growth rate estimated by Simply Wall St
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 0.2%. We discount the terminal cash flows to today's value at a cost of equity of 8%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €374m × (1 + 0.2%) ÷ (8% – 0.2%) = €4.8b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€4.8b ÷ ( 1 + 8%)10= €2.25b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €4.20b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of €37.76. Relative to the current share price of €40.42, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at HELLA GmbH KGaA as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8%, which is based on a levered beta of 1.301. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For HELLA GmbH KGaA, I've put together three further factors you should further examine:
1. Financial Health: Does HLE have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does HLE's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of HLE? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every DE stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Tesla’s Superchargers: The company's killer app
Telsa wants to be Ford and Chevron. The company wants to build the cars and supply the fuel. In this case, that fuel is electricityandthe delivery system is the company's robust Supercharger network. CEO andtweet-machine Elon Muskroutinely talks about changing the world for a better place. To reduce pollution for bluer skies, greener grass and the ability to breathe without sucking in CO2. Tesla has already started that trend by forcing other automakers to accelerate their timeline with electric cars.
But to really make a dent in gas-guzzling car sales it needs to take action with its most precious resource:the Supercharger network.
Back in January, I drove aTesla Model 3 from San Francisco to Las Vegas. I got in the car, plotted out a route and the navigation displayed a plethora of charging stations along the way. Even when I veered wildly from the predetermined plugging-in path, there were enough waypoints to get me where I was going without the horror of range anxiety. It's an example of what it should be like to drive an EV.
If I were to take another EV that I really like -- say theHyundai Kona EV-- to Las Vegas, I'd be concerned and, to be honest, stressed the entire time. Third-party charging stations frankly don't cut it for long trips. I'd have to use multiple apps to find chargers and hope that the meager number of stations aren't already full when I arrive.
Tesla could make charging other vehicles a reality. In fact, Musk has said that he's down. During the 2018 first quarter call when asked about other vehicles charging at Supercharger stations, he said:
"We've always said that we're -- this is not intended to be a walled garden, and we're happy to support other automakers and let them use our Supercharger stations. They would just need to pay the share of the cost proportionate to their vehicle usage. And they would need to be able to accept our charge rate or at least -- and our connector, at least have an adaptor to our connector. So this is something we're very open to, but so far none of the other car makers have wanted to do this. But it's like not because of opposition from us. This is not a walled garden. Trying to make a meritable share."
First off, no automaker is going to change its charging port toTesla's proprietary connection. Why would you help your competitor like that? But Tesla could build adapters and work on the software needed for other vehicles to connect to their system. What I'm saying is that Tesla could make dongles for other EVs. Like your iPhone, it won't be pretty, but the hardware needs to be robust to handle the electricity and the heat those electrons create while being shoved into a car, SUV orfuturistic pickup truck.
Then Telsa needs to work on the software. Unlike the pumps at Exxon, charging stations are complex computers that need to talk to the vehicle plugged into them. The way it works is sort of like this.
"Hi, I'm a car that accepts 150kW of electricity"
"Hello car, I'm a charging station that can output250kW of power, but I see you only want 150kW so I'll slow my roll and only offer you that power in a way that doesn't harm your battery or create too much heat."
It's more complicated than that, but you get the drift. If Tesla says it can create software that will make its cars self-driving by the end of the year (but probably not), it certainly can get its chargers to talk to other vehicles. ChargePoint, EVgo and other charging station companies can do it, why not Tesla? Making the world a better place is tough and sometimes it requires lots of lines of code and chatting with other OEMs about battery tech.
This might seem like it benefits the folks that bought a Chevy Bolt or VW E-Golf more than Tesla. But in reality, it's a revenue stream. Tesla famously offered many owners of its cars free charging for life. That's a great way to grow a base of users but not so good for the bottom line. Adding more cars to the network, that actually pay, should make investors happy.
But more importantly, it gives Tesla a captured audience. Some of those Supercharging stations are actually very nice Tesla-run rest stops with coffee, bathrooms and a store to buy company swag. What self-respecting dad wouldn't want a jacket with the T logo on it? If these stations were opened up to other EV drivers, the company could use it as a showroom. Throw a Model 3 in there, let the owners of a Nissan Leaf see how the other half lives. It's better than keeping them at arms length which is what the Tesla community seems to be doing now.
The cult of personality around Elon Musk is ridiculous and,in many cases, toxic. Some Telsa fans have morphed into a mob that believes that people are either with them or against them. If you own a Tesla, you care about the world and technology and dank memes. If you own literally anything else, you're in the pocket of big automotive or big oil.
It's off putting and bad for business. I'm a believer that if two groups of people (in this case Tesla owners and the owners of literally any other EV) can spend time with one another, they'll realize they both want the same thing. A better, cleaner world for future generations. Or at least a car with sweet EV torque. Also an undying hatred for "coal rollers." What's wrong with those people? Who hurt them?
Finally, it's good for the planet. Building cars is bad for the environment. It doesn't matter what it runs on. My advice is to hold on to your car for as long as possible before buying new. Or better yet, buy used. If you bought a Chevy Bolt before the Model 3 was available, keep it as long as you can. Sure you're pining for a new shiny Model 3, but if you truly care about future generations you'll eke out as much use as you can. When it dies or no longer truly meets your needs, then get the new or slightly used shiny EV from the Fremont factory. In the meantime, use their charging network because it's nearly everywhere and it works. Maybe you'll make some Tesla-owning friends and you can chat about "hypermileing" or whatever Elon tweeted that morning.
Sure, that flies in the face of what Tesla wants in regards to vehicle demand. Selling cars is a tough business made harder by being the new kid on the block. But it doesn't have to be the only business. There are rows and rows of white and red columns just waiting to recharge automobiles from around the world while sucking in piles of cash.
So Tesla, for reals, live by your code to truly save the planet -- and maybe also, make a profit (and some new friends). |
Is Arconic (ARNC) Stock Outpacing Its Basic Materials Peers This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Arconic (ARNC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Arconic is a member of the Basic Materials sector. This group includes 237 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ARNC is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ARNC's full-year earnings has moved 9.62% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ARNC has returned about 39.56% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of 10.74%. This means that Arconic is performing better than its sector in terms of year-to-date returns.
Breaking things down more, ARNC is a member of the Mining - Non Ferrous industry, which includes 10 individual companies and currently sits at #189 in the Zacks Industry Rank. This group has gained an average of 22.79% so far this year, so ARNC is performing better in this area.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to ARNC as it looks to continue its solid performance.
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 reportArconic Inc. (ARNC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
FHN vs. FBNC: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Banks - Southeast sector might want to consider either First Horizon National (FHN) or First Bancorp (FBNC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
First Horizon National has a Zacks Rank of #2 (Buy), while First Bancorp has a Zacks Rank of #3 (Hold) right now. This means that FHN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
FHN currently has a forward P/E ratio of 9.76, while FBNC has a forward P/E of 11.77. We also note that FHN has a PEG ratio of 1.56. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FBNC currently has a PEG ratio of 2.68.
Another notable valuation metric for FHN is its P/B ratio of 0.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FBNC has a P/B of 1.37.
Based on these metrics and many more, FHN holds a Value grade of B, while FBNC has a Value grade of C.
FHN has seen stronger estimate revision activity and sports more attractive valuation metrics than FBNC, so it seems like value investors will conclude that FHN is the superior option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFirst Horizon National Corporation (FHN) : Free Stock Analysis ReportFirst Bancorp (FBNC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is GEO Group (GEO) a Profitable Pick for Value Investors Now?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s putThe GEO Group, Inc.GEOstock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, GEO Group has a trailing twelve months PE ratio of 9.28, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 18.08. If we focus on the long-term PE trend, GEO Group’s current PE level puts it below its midpoint over the past five years.
Further, the stock’s PE compares favorably with the Zacks Finance sector’s trailing twelve months PE ratio, which stands at 14.34. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that GEO Group has a forward PE ratio (price relative to this year’s earnings) of just 8.83, so it is fair to say that a slightly more value-oriented path may be ahead for GEO Group stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, GEO Group has a P/S ratio of about 1.20. This is lower than the S&P 500 average, which comes in at 3.27 right now. Also, as we can see in the chart below, this is below the highs for this stock in particular over the past few years.
If anything, GEO is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, GEO Group currently has a Zacks Value Score of B, putting it into the top 40% of all stocks we cover from this look. This makes GEO Group a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for GEO Group is just 1.47, a level that is lower than the industry average of 3.03. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Additionally, its P/CF ratio comes in at 10.26, which is lower than the industry average of 12.53. Clearly, GEO is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though GEO Group might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of B and a Momentum Score of A. This gives GEO a Zacks VGM score — or its overarching fundamental grade — of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current quarter has seen two estimates go higher in the past sixty days compared to no movement in the opposite direction, while the current year estimate has seen two upward revision compared to no downward in the same time period.
This has had a positive impact on the consensus estimate though as the current quarter consensus estimate has risen by 32% in the past two months, while the current year estimate has increased by 35.4%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Geo Group Inc (The) Price and Consensus
Geo Group Inc (The) price-consensus-chart | Geo Group Inc (The) Quote
This bullish trend is why the stock boasts a Zacks Rank #1 (Strong Buy) and why we are expecting outperformance from the company in the near term.
Bottom Line
GEO Group is an inspired choice for value investors, as it is hard to beat its incredible line up of statistics on this front. A strong industry rank (among top 37% of more than 250 industries) and a Zacks Rank #1 further instils our confidence.
However, over the past two years, the Zacks REIT and Equity Trust – Other industry has clearly underperformed the market at large, as you can see below:
So, value investors might want to wait for industry trends to turn favorable in this name first, but once that happens, this stock could be a compelling pick.
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These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.
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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 reportGeo Group Inc (The) (GEO) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Capital Trust (BXMT) Outperforming Other Finance Stocks This Year?
For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Capital Trust (BXMT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Capital Trust is a member of our Finance group, which includes 854 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. BXMT is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for BXMT's full-year earnings has moved 2.98% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, BXMT has moved about 14.12% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 11.07% on average. This means that Capital Trust is performing better than its sector in terms of year-to-date returns.
Looking more specifically, BXMT belongs to the REIT and Equity Trust industry, which includes 30 individual stocks and currently sits at #237 in the Zacks Industry Rank. Stocks in this group have gained about 8.33% so far this year, so BXMT is performing better this group in terms of year-to-date returns.
Investors with an interest in Finance stocks should continue to track BXMT. The stock will be looking to continue its solid performance.
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 reportCapital Trust, Inc. (BXMT) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Artisan Partners Asset Management (APAM) Stock Outpacing Its Finance Peers This Year?
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Artisan Partners Asset Management (APAM) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Artisan Partners Asset Management is one of 854 individual stocks in the Finance sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. APAM is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for APAM's full-year earnings has moved 8.51% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that APAM has returned about 22.21% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of 11.07% on a year-to-date basis. This means that Artisan Partners Asset Management is outperforming the sector as a whole this year.
To break things down more, APAM belongs to the Financial - Investment Management industry, a group that includes 52 individual companies and currently sits at #98 in the Zacks Industry Rank. On average, this group has gained an average of 18.15% so far this year, meaning that APAM is performing better in terms of year-to-date returns.
Going forward, investors interested in Finance stocks should continue to pay close attention to APAM as it looks to continue its solid performance.
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 reportArtisan Partners Asset Management Inc. (APAM) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
CRTO vs. RNG: Which Stock Is the Better Value Option?
Investors interested in Internet - Software and Services stocks are likely familiar with Criteo S.A. (CRTO) and RingCentral (RNG). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Criteo S.A. is sporting a Zacks Rank of #1 (Strong Buy), while RingCentral has a Zacks Rank of #3 (Hold). This means that CRTO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CRTO currently has a forward P/E ratio of 7.66, while RNG has a forward P/E of 160.57. We also note that CRTO has a PEG ratio of 1.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RNG currently has a PEG ratio of 8.10.
Another notable valuation metric for CRTO is its P/B ratio of 1.23. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RNG has a P/B of 28.91.
These are just a few of the metrics contributing to CRTO's Value grade of A and RNG's Value grade of F.
CRTO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CRTO is likely the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCriteo S.A. (CRTO) : Free Stock Analysis ReportRingcentral, Inc. (RNG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
4 Retail Stocks That Added 10% or More in a Month Despite Odds
After a tumultuous May owing to escalated trade tensions between the United States and China and fears of an economic slowdown, the stock market seems to be taking a breather. This may be in part due to rising hopes for easing of monetary policies. Again, possible talks between Presidents Donald Trump and Xi Jinping at the G-20 summit are allaying fears.
For now, the investment climate may not seem favorable for risk-averse investors. While they are clamoring for a rate cut, they may also prefer playing safe on hopes that the U.S.-China trade tiff will be settled amicably. Nonetheless, ignoring the market jitters and speculations, a few stocks have managed to score 10% or more in a month. Here we have highlighted four such stocks from the Zacks Retail-Wholesale sector.
Why the Retail Sector?
Retail-Wholesale sector, which occupies top 32% position in the list of Zacks sectors (five out of 16), has advanced roughly 17% so far in the year, outpacing the S&P 500’s growth of approximately 15%. In fact, strengthening labor market, rising disposable income and an upbeat consumer environment with confidence index reaching a six-month high in May are working in favor of the sector. Further, any rate cut at this juncture will ramp up investment activities and reinforce consumer spending.
We note that consumer spending — one of the pivotal factors driving the economy — has picked up in recent months. This is evident from an uptick of 0.5% in retail sales during the month of May, following an upwardly revised reading of 0.3% gain in April. Clearly, this dissipates the fear of economy losing steam and may prompt economists to revisit their second-quarter GDP numbers.
For obvious reasons, retailers are the end gainers. So, picking up stocks from the space will be a prudent move. Here are four stocks you can count upon. We have shortlisted them on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of A or B and stock price movement of 10% or more in a month.
4 Prominent Picks
Stitch Fix, Inc.SFIX, which sells a range of apparel, shoes, and accessories through its website and mobile app, has a VGM Score of B. The stock has an expected EPS growth rate of 22.5% for 3-5 years. Shares of this Zacks Rank #2 company have rallied about 32.8% in a month. You can seethe complete list of today’s Zacks #1 Rank stocks here.
RHRH, which operates as a home furnishing retailer, has a VGM Score of B and an expected EPS growth rate of 9.4% for 3-5 years. This Zacks Rank #2 stock has surged roughly 26.3% in a month.
Target CorporationTGT, a general merchandise retailer, has a VGM Score of B and an expected EPS growth rate of 7.1% for 3-5 years. The stock currently has a Zacks Rank #2. The company gained roughly 20% in a month.
Casey's General Stores, Inc.CASY, which operates convenience stores, has a VGM Score of A and an expected EPS growth rate of 9.4% for 3-5 years. This Zacks Rank #2 stock has shown a decent run in the bourses and advanced about 15.3% in a month.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119%and +164%gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCaseys General Stores, Inc. (CASY) : Free Stock Analysis ReportTarget Corporation (TGT) : Free Stock Analysis ReportRestoration Hardware Holdings Inc. (RH) : Free Stock Analysis ReportStitch Fix, Inc. (SFIX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Has PayPal Holdings (PYPL) Outpaced Other Computer and Technology Stocks This Year?
Investors focused on the Computer and Technology space have likely heard of PayPal Holdings (PYPL), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
PayPal Holdings is one of 635 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. PYPL is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PYPL's full-year earnings has moved 4.40% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that PYPL has returned about 37.92% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 18.26%. As we can see, PayPal Holdings is performing better than its sector in the calendar year.
Looking more specifically, PYPL belongs to the Internet - Software industry, a group that includes 83 individual stocks and currently sits at #89 in the Zacks Industry Rank. This group has gained an average of 35.24% so far this year, so PYPL is performing better in this area.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to PYPL as it looks to continue its solid performance.
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 reportPayPal Holdings, Inc. (PYPL) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Match Group (MTCH) Stock Outpacing Its Computer and Technology Peers This Year?
Investors focused on the Computer and Technology space have likely heard of Match Group (MTCH), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Match Group is one of 635 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. MTCH is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for MTCH's full-year earnings has moved 26.06% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that MTCH has returned about 67.76% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 18.26% on a year-to-date basis. As we can see, Match Group is performing better than its sector in the calendar year.
Looking more specifically, MTCH belongs to the Internet - Services industry, a group that includes 50 individual stocks and currently sits at #81 in the Zacks Industry Rank. On average, stocks in this group have gained 11.54% this year, meaning that MTCH is performing better in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on MTCH as it attempts to continue its solid performance.
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 reportMatch Group, Inc. (MTCH) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
CAKE vs. TXRH: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Restaurants sector might want to consider either Cheesecake Factory (CAKE) or Texas Roadhouse (TXRH). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Cheesecake Factory has a Zacks Rank of #2 (Buy), while Texas Roadhouse has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that CAKE likely has seen a stronger improvement to its earnings outlook than TXRH has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CAKE currently has a forward P/E ratio of 17.13, while TXRH has a forward P/E of 23.28. We also note that CAKE has a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TXRH currently has a PEG ratio of 2.07.
Another notable valuation metric for CAKE is its P/B ratio of 3.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TXRH has a P/B of 3.88.
Based on these metrics and many more, CAKE holds a Value grade of B, while TXRH has a Value grade of D.
CAKE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CAKE is likely the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis ReportTexas Roadhouse, Inc. (TXRH) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is American International Group (AIG) Outperforming Other Finance Stocks This Year?
Investors focused on the Finance space have likely heard of American International Group (AIG), but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.
American International Group is one of 854 individual stocks in the Finance sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. AIG is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for AIG's full-year earnings has moved 12.69% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, AIG has moved about 35.37% on a year-to-date basis. In comparison, Finance companies have returned an average of 11.07%. This shows that American International Group is outperforming its peers so far this year.
Breaking things down more, AIG is a member of the Insurance - Multi line industry, which includes 27 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, this group has gained an average of 13.34% so far this year, meaning that AIG is performing better in terms of year-to-date returns.
Investors with an interest in Finance stocks should continue to track AIG. The stock will be looking to continue its solid performance.
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 reportAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is ONEOK (OKE) Stock Outpacing Its Utilities Peers This Year?
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. ONEOK (OKE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
ONEOK is one of 123 individual stocks in the Utilities sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. OKE is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for OKE's full-year earnings has moved 4.25% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, OKE has moved about 21.72% on a year-to-date basis. Meanwhile, stocks in the Utilities group have gained about 13.58% on average. This means that ONEOK is outperforming the sector as a whole this year.
To break things down more, OKE belongs to the Utility - Gas Distribution industry, a group that includes 18 individual companies and currently sits at #98 in the Zacks Industry Rank. On average, this group has gained an average of 18.78% so far this year, meaning that OKE is performing better in terms of year-to-date returns.
OKE will likely be looking to continue its solid performance, so investors interested in Utilities stocks should continue to pay close attention to the company.
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 reportONEOK, Inc. (OKE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Universal Display (OLED) Outperforming Other Computer and Technology Stocks This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Universal Display (OLED) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Universal Display is one of 635 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. OLED is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for OLED's full-year earnings has moved 20.32% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, OLED has moved about 97.39% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 18.26%. This means that Universal Display is outperforming the sector as a whole this year.
Looking more specifically, OLED belongs to the Electronics - Miscellaneous Components industry, which includes 31 individual stocks and currently sits at #104 in the Zacks Industry Rank. On average, this group has gained an average of 24.77% so far this year, meaning that OLED is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to OLED as it looks to continue its solid performance.
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 reportUniversal Display Corporation (OLED) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
NUAN or PEGA: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Computer - Software sector might want to consider either Nuance Communications (NUAN) or Pegasystems (PEGA). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Nuance Communications has a Zacks Rank of #2 (Buy), while Pegasystems has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that NUAN likely has seen a stronger improvement to its earnings outlook than PEGA has recently. But this is just one piece of the puzzle for value investors. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. NUAN currently has a forward P/E ratio of 14.23, while PEGA has a forward P/E of 725.20. We also note that NUAN has a PEG ratio of 2.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PEGA currently has a PEG ratio of 90.65. Another notable valuation metric for NUAN is its P/B ratio of 2.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PEGA has a P/B of 9.73. Based on these metrics and many more, NUAN holds a Value grade of B, while PEGA has a Value grade of F. NUAN sticks out from PEGA in both our Zacks Rank and Style Scores models, so value investors will likely feel that NUAN is the better option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nuance Communications, Inc. (NUAN) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here. |
Shake Shack Rides on Global Forays: Rivals' Food for Thought?
In a classic example of following a rather unconventional path to fuel its growth engine, popular ‘roadside’ burger brandShake Shack Inc.SHAK has chalked a global strategy of international expansion to better connect with its consumers worldwide. The company recently decided to open a new store in Mexico City, Mexico, to take its international footprint tally to 16 – a remarkable achievement for a relatively young establishment that turns 15 this summer.What makes this expansion strategy all the more unique is the fact that the company opened restaurants in London, Istanbul, Dubai and Moscow before it reached Los Angeles in 2016. Altogether, Shake Shack currently operates about 235 restaurants across the globe with annual revenues of $459.3 million in 2018.David vs. Goliath?Despite significant international presence, Shake Shack appears to be lagging way behind its rivals in terms of number of operating restaurants. By the end of 2018, McDonald's Corporation MCD had nearly 38,000 restaurants worldwide, while Restaurant Brands International Inc.’s QSR iconic brand Burger King operated nearly 18,000 restaurants. In 2018, McDonald’s and Burger King recorded annual revenues of $21,025 million and $1,651 million, respectively.However, in spite of the skewed-up numbers, Shake Shack seems to be a force to reckon with, generating 27.3% year-over-year growth in estimated U.S. system sales per 2019 Top 200 research. The company also remains poised to claim a position in the top 3 fast-casual chain operators ranked by Latest-Year growth in U.S. systemwide sales.The Success RecipeThe penchant for international expansion appears to be the primary driving force that has helped Shake Shack to punch above its weight. Most U.S. companies usually tend to strengthen their regional presence to gain key insights about customer behavior and consumption patterns before foraying into foreign shores with different culinary tastes and cultures. However, Shake Shack has chosen the offbeat path to success as a way of hedging – cashing in on the fact that if anything went wrong in foreign territories, it would hardly have any impact on local business.The company uses local licensing companies to run stores in foreign locations. Although the core menu remains broadly similar, it tries to add a local twist without compromising on its brand image. Shake Shack mostly prefers to use American ingredients in international locations to remain true to its distinct taste. In situations where it fails to procure the raw materials from U.S. suppliers due to supply constraints or trade tariffs, the company sources the items from local vendors, thus offering it an opportunity to engage more with the community. When a particular menu item with a local flavor becomes a huge hit, Shake Shack tries to introduce it in the U.S. market to replicate the success story.Being a relatively small firm, Shake Shack is quite nimble, and quickly adapts to the evolving market conditions and usually turns every possible disadvantage in its favor. Moreover, as the international operations are mostly licensed, it requires comparatively less capital than the bulk of the domestic business. The company also aims to tap the huge footfall in international airports to better connect with diverse customer base. This has further created significant customer interests and generated wide publicity through word of mouth and point-of-purchase display.Reaping RewardsThe combination of all these factors seem to be working for Shake Shack as it braces for cut-throat competition with respect to price, service, and healthier menu options. Total revenues for the company in the first quarter of 2019 improved 33.8% year over year to $132.6 million. The stock has recorded average return of 45.9% year to date compared with the industry’ s rally of 20.8%.
The company is betting big on extending its international footprint and plans to open 16 to 18 licensed stores this year with an emphasis on expanding in China, Singapore, the Philippines and Mexico. CEO Randy Garutti perfectly summed up, "So much of this story has been our global story. What we learned early on is that people don't want us to be a local version of Shake Shack. They want us to be Shake Shack. So that's what we do."Food for thought for the rivals?This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportRestaurant Brands International Inc. (QSR) : Free Stock Analysis ReportShake Shack, Inc. (SHAK) : Free Stock Analysis ReportMcDonald's Corporation (MCD) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Has Pepsico (PEP) Outpaced Other Consumer Staples Stocks This Year?
Investors focused on the Consumer Staples space have likely heard of Pepsico (PEP), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.
Pepsico is one of 165 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. PEP is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PEP's full-year earnings has moved 0.22% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, PEP has returned 19.53% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 16.77% on a year-to-date basis. As we can see, Pepsico is performing better than its sector in the calendar year.
Looking more specifically, PEP belongs to the Beverages - Soft drinks industry, a group that includes 18 individual stocks and currently sits at #197 in the Zacks Industry Rank. This group has gained an average of 14.42% so far this year, so PEP is performing better in this area.
Investors with an interest in Consumer Staples stocks should continue to track PEP. The stock will be looking to continue its solid performance.
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 reportPepsico, Inc. (PEP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
VLEEY vs. RACE: Which Stock Is the Better Value Option?
Investors interested in Automotive - Original Equipment stocks are likely familiar with Valeo S.A. (VLEEY) and Ferrari (RACE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Valeo S.A. has a Zacks Rank of #1 (Strong Buy), while Ferrari has a Zacks Rank of #3 (Hold). This means that VLEEY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VLEEY currently has a forward P/E ratio of 10.14, while RACE has a forward P/E of 39.40. We also note that VLEEY has a PEG ratio of 1.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RACE currently has a PEG ratio of 2.40.
Another notable valuation metric for VLEEY is its P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RACE has a P/B of 17.77.
These are just a few of the metrics contributing to VLEEY's Value grade of A and RACE's Value grade of D.
VLEEY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VLEEY is likely the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportValeo S.A. (VLEEY) : Free Stock Analysis ReportFerrari N.V. (RACE) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
UTX or MMM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Diversified Operations sector have probably already heard of United Technologies (UTX) and 3M (MMM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
United Technologies has a Zacks Rank of #2 (Buy), while 3M has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UTX has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UTX currently has a forward P/E ratio of 15.89, while MMM has a forward P/E of 18.45. We also note that UTX has a PEG ratio of 1.81. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MMM currently has a PEG ratio of 1.82.
Another notable valuation metric for UTX is its P/B ratio of 2.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MMM has a P/B of 10.15.
These are just a few of the metrics contributing to UTX's Value grade of B and MMM's Value grade of C.
UTX stands above MMM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UTX is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportUnited Technologies Corporation (UTX) : Free Stock Analysis Report3M Company (MMM) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
5 Stocks to Gain From the Upcoming Housing Recovery
In more disappointing news for the housing sector, U.S. housing starts declined in May. Moreover, the National Association of Home Builders’ (NAHB) home builder confidence index declined for the first time this year in June. However, both reports should not be taken at face value, since there is enough evidence in them to suggest that the housing sector is poised for a rebound.
First, housing starts for March and April have been revised upward. Meanwhile, building permits have increased, indicating that the sector is gaining from the strong decline in mortgage rates.
Further, last month’s dip in homebuilder confidence is largely attributable to the fear of fresh tariffs on Mexican imports, a threat which no longer exists. Also, the sector is set to gain from rate cuts rates to occur later this year. This is why it is prudent to invest in stocks set to gain from the upcoming housing rebound.
Building Permits, Starts for March & April Rise
In May, housing starts declined by 0.9% to a seasonally adjusted rate of 1.269 million units. However, the figure is considerably higher than the estimated level of 1.235 million units. Last month’s decline was primarily attributable to a 6.4% plunge in single-family homebuilding. The metric, which makes up most of the housing market, declined to 820,000 units.
However, a large part of the decline is attributable to torrential rain and significant flooding in several parts of the United States. Meanwhile, building permits advanced 0.3% to 1.294 million units, marking the second straight monthly increase.
Further, permits for single-family homes increased for the first time in five months. The metric increased 3.7% to a pace of 815,000 units, posting a 7.7% increase in the South — the largest since December 2016. Gains for this forward-looking indicator imply that better times are coming for the sector.
Housing Market Sentiment Surges, Mortgage Rates Slide
In June, the NAHB home builder confidence index declined by 2 points to 64. The decline was largely attributable to the specter of fresh tariffs on Mexican imports. This is why the decline is likely a one-off event. The index has remained in the low- to mid-sixties, a considerably high level, till now this year and May’s was the highest reading since October 2018.
Meanwhile, independent research firm Pulsenomics’ Housing Confidence Index hit a five-year high of 71.65 in the first quarter. According to the firm’s founder, Terry Loebs, this is attributable to improving wage growth and lower mortgage rates. The U.S. 10-year note’s yield, which is tracked by fixed-rate mortgages, has plunged this year, a major positive for potential homeowners.
Our Choices
Despite the decline in housing starts for May, the housing sector seems set for a rebound over the next few months. This is borne out by the increase in building permits, particularly for single-family homes. Steady wage gains and low mortgage rates are helping to attract several prospective homeowners into the housing market.
This is why it makes sense to invest in stocks set to gain from the coming rebound in housing. However, picking winning stocks may prove to be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
We have narrowed down our search to the following stocks based on a good Zacks Rank and VGM Score of B.
PulteGroup Inc.PHM engages in the homebuilding and financial services businesses primarily in the United States.
PulteGroup has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the current year has improved by 6.6% over the past 60 days.
NVR, Inc.NVR is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis.
NVR has a Zacks Rank #1. The company has expected earnings growth of 1.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 12.2% over the past 60 days.
BMC Stock Holdings, Inc.BMCH is a distributor of lumber and building materials to building contractors in the United States.
BMC Stock Holdings’ Zacks Consensus Estimate for the current year has improved by 0.6% over the past 30 days. The stock has a Zacks Rank #1. You can seethe complete list of today’s Zacks #1 Rank stocks here.
U.S. Concrete, Inc.USCR operates as a provider of ready-mixed concrete, and concrete-related products and services to the construction industry in the United States.
U.S. Concrete has a Zacks Rank #2 (Buy). The company has expected earnings growth of 35.4% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.7% over the past 60 days.
Builders FirstSource, Inc.BLDR is a leading supplier and manufacturer of structural and related building products for residential new construction in the United States.
Builders FirstSource has a Zacks Rank #2. The company has expected earnings growth of 0.4% for the current year.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBuilders FirstSource, Inc. (BLDR) : Free Stock Analysis ReportBMC Stock Holdings, Inc. (BMCH) : Free Stock Analysis ReportU S Concrete, Inc. (USCR) : Free Stock Analysis ReportPulteGroup, Inc. (PHM) : Free Stock Analysis ReportNVR, Inc. (NVR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What Kind Of Investor Owns Most Of Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI)?
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A look at the shareholders of Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Hancock Jaffe Laboratories is a smaller company with a market capitalization of US$15m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about HJLI.
Check out our latest analysis for Hancock Jaffe Laboratories
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Less than 5% of Hancock Jaffe Laboratories is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don't have a meaningful investment in Hancock Jaffe Laboratories. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in Hancock Jaffe Laboratories, Inc.. In their own names, insiders own US$800k worth of stock in the US$15m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying.
The general public, who are mostly retail investors, collectively hold 59% of Hancock Jaffe Laboratories shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Our data indicates that Private Companies hold 33%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Pressure BioSciences' Ultra High Pressure HUB Platform Highly Effective in Studies to Develop Improved Methods for Food Safety
HUB Platform Plays Critical Role in Innovative Research Studies Designed to Increase Understanding of and Develop Methods for the Prevention of Serious Food-Borne Diseases Caused by E. coli and Listeria
SOUTH EASTON, MA / ACCESSWIRE / June 19, 2019 /Pressure BioSciences, Inc. (PBIO) ("PBI" or the "Company"), a leader in the development and sale of broadly enabling, pressure-based instruments, consumables, and platform technology solutions to the worldwide life sciences industry, today announced that its HUB platform of unique, ultra-high pressure instruments was featured in three presentations at the world's largest annual food science conference, the Institute of Food Technologists ("IFT"), which was held June 2-5, 2019 in New Orleans, LA. The presentations reported the use of PBI's HUB440 and HUB880 Explorer systems to advance knowledge and understanding of the effects of high pressure processing ("HPP") on serious food-borne pathogens in liquid food products and ground meat, and on the decontamination of such pathogens.
Food-borne illnesses are a common, costly, and expensive public health problem. The Centers for Disease Control ("CDC") estimates that 1 in 6 Americans will get sick from contaminated food or beverages annually, and that 3,000 people will die from their illness. The U.S. Department of Agriculture ("USDA") estimates that the cost of foodborne illnesses in the USA is more than $15.6 billion each year (https://www.cdc.gov/foodsafety/cdc-and-food-safety.html).
HPP subjects food products to a high level of pressure (43,500-87,000 psi) - transmitted via water - to inactivate food-borne pathogens. Pressures above 58,000 psi at ambient temperature (or lower) can inactivate bacteria, viruses, yeasts, molds, and parasites present in food, which helps to significantly improve food safety. HPP offers the additional benefit of longer shelf-life without chemical additives or high heat treatment. With HPP, freshness, sensory and nutritional attributes are maintained throughout shelf-life. HPP is an accepted food processing method by the U.S. Food and Drug Administration.
Dr. Aliyar Fouladkhah, Assistant Professor at Tennessee State University ("TSU") and Director of the Public Health Microbiology Laboratory ("PHM Lab") at TSU, and his team showed in a series of studies that PBI's ultra-high pressure equipment can be used to dramatically reduce common and well-known food-borne disease causing bacteria, such asE.coli0157 andListeria monocytogenes, in the presence of foods such as apple cider and chopped meat. Controlled experiments such as these may provide model systems that could result in significantly better quality and safer foods.
Dr. Fouladkhah commented: "Members of my public health microbiology research group and I were able to conduct and present results from our cutting-edge, innovative research projects to the most respected international food science conference thanks to the consistency, accuracy, and precision of PBI's HUB high pressure units and the collaborative endeavors with PBI engineers and research scientists."
Dr. Nathan Lawrence is a senior technical consultant to PBI. Dr. Lawrence holds advanced degrees in food microbiology and molecular genetics. Dr. Lawrence said: "PBI's bench-top ultra-high pressure HUB equipment offers great promise in HPP food applications. The special design features in the pressure and temperature control of the equipment enable scientists to safely study a myriad of food-borne pathogens. The bench-top system enables basic food safety research in the laboratory without requiring extremely expensive and large manufacturing scale HPP equipment. I believe there are many hundreds if not more academic, government, and industry laboratories that will now be able to help in the development of new methods for safe and affordable food processing with the HUB high pressure equipment."
Richard T. Schumacher, President and CEO of PBI, commented: "The need for safer food is a world-wide concern. In recognition, the United Nations proclaimed June 7, 2019 as the first World Food Safety Day. HPP currently plays an important role in food safety: although this unique process is barely 20 years old, it has nonetheless already grown into an estimated $20 billion market. By 2026, the projected market size of the high pressure processing food market could reach approximately $42 billion (Visiongain, 2016). We believe that presentations such as Dr. Fouladkhah's at this year's IFT Conference will help generate awareness of our new, powerful yet affordable bench-top HUB family of products in the food industry, government, military, and academic laboratory environment, and that this added exposure will result in an increased demand for our HUB equipment in this large and growing market."
Institute of Food Technologists ("IFT")
Since 1939, IFT has been advancing the application of science across the global food production and supply system, by creating a dynamic forum where individuals from industry, government, and academia spanning more than 90 countries can collaborate, learn, and grow, transforming scientific knowledge into innovative solutions for the benefit of people around the world. The IFT Annual Meeting is the world's largest annual food science event, with over 20,000 food industry professionals in attendance.
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. (PBIO) is a leader in the development and sale of innovative, broadly enabling, pressure-based solutions for the worldwide life sciences industry. Our products are based on the unique properties of both constant (i.e., static) and alternating (i.e., pressure cycling technology, or PCT) hydrostatic pressure. PCT is a patented enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to safely and reproducibly control bio-molecular interactions (e.g., cell lysis, biomolecule extraction). Our primary focus is in the development of PCT-based products for biomarker and target discovery, drug design and development, biotherapeutics characterization and quality control, soil & plant biology, forensics, and counter-bioterror applications. Additionally, major new market opportunities have emerged in the use of our pressure-based technologies in the following areas: (1) the use of our recently acquired, patented technology from BaroFold, Inc. (the "BaroFold" technology) to allow entry into the bio-pharma contract services sector, and (2) the use of our recently-patented, scalable, high-efficiency, pressure-based Ultra Shear Technology ("UST") platform to (i) create stable nanoemulsions of otherwise immiscible fluids (e.g., oils and water) and to (ii) prepare higher quality, homogenized, extended shelf-life or room temperature stable low-acid liquid foods that cannot be effectively preserved using existing non-thermal technologies.
Forward Looking Statements
This press release contains forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "would," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "projects," "potential" or "continue" or the negative of such terms and other comparable terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. In evaluating these statements, you should specifically consider various factors. Actual events or results may differ materially. These and other factors may cause our actual results to differ materially from any forward-looking statement. These risks, uncertainties, and other factors include, but are not limited to, the risks and uncertainties discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, and other reports filed by the Company from time to time with the SEC. The Company undertakes no obligation to update any of the information included in this release, except as otherwise required by law.
For more information about PBI and this press release, please click on the following website link:http://www.pressurebiosciences.comPlease visit us on Facebook, LinkedIn, and Twitter.
Investor Contacts:
Richard T. Schumacher, President and CEO (508) 230-1828 (T)Bradford A. Young, PhD., MBA, Sr. VP and CCO (508) 230-1829 (F)
SOURCE:Pressure BioSciences, Inc.
View source version on accesswire.com:https://www.accesswire.com/549229/Pressure-BioSciences-Ultra-High-Pressure-HUB-Platform-Highly-Effective-in-Studies-to-Develop-Improved-Methods-for-Food-Safety |
Glenn Danzig still uses a flip phone
Glenn Danzig wont be putting any of that Misfits reunion money toward a new iPhone. While appearing on Full Metal Jackies radio show this past weekend, the Mother singer opened up about his aversion to big tech. After Danzig encouraged his fans to get off the computer and go out and experience the real world, Jackie pointed out that the Misfits singer had a flip phone on his person. Yeah, the phone tracking, and listening in and everything and all the hacking. I dont need it, Danzig explained. He added, I dont really want the flip phone. I dont want people to get in touch with me when Im out and about. Jackie proceeded to throw out some scenarios when a person might want to be in possession of a cell phone, but Danzig wouldnt bite. What if youre out and about and your car breaks down? Well, probably, your cell phones not gonna work in the middle of the desert anyway. [laughs] Also, what if youre someplace and you need an excuse to have to go and you call your friend and say, Hey make the call so I can get out of here? I dont do that. I just say, Im getting out of here, bye. [laughs] Danzigs no cell phone policy will be fully realized when the Misfits playing a trio of reunion shows this September, as the band will once again require attendees to lock their phones away in Yondr cases . Elsewhere in his interview with Full Metal Jackie, Danzig discussed his upcoming vampire Spaghetti Western and how many more Original Misfits shows we can expect . Glenn Danzig still uses a flip phone Alex Young |
Gravitas Ventures Picks Up North American Rights To Alt-Right Drama Cuck
EXCLUSIVE : Red Arrow Studios-owned Gravitas Ventures has picked up North American rights to alt-right drama Cuck , starring Zachary Ray Sherman ( Everything Sucks! ), Timothy V. Murphy ( True Detective ) and Sally Kirkland ( Anna ). Sherman stars as a man living with his mother in a run-down section of Van Nuys, California. Unstable and isolated, he binges on alt-right vlogs and creates his own video channel on the downfall of real America with dangerous consequences. Related stories Gravitas Ventures Acquires 'Santa Girl'; Cinedigm Corp Picks Up 'Gothic Harvest' Gravitas Acquires 'The Nightmare Gallery' Starring 'Buffy' Alum Amber Benson Gravitas Nabs 'Above The Shadows' Starring Olivia Thirlby & Megan Fox; Cinedigm Secures 'The Outsider' The Rimrock Pictures production directed by Rob Lambert in his directorial debut is co-written and co-produced by Lambert and Joe Varkle. Nick Royak, manager of acquisitions, from Gravitas negotiated the deal with executive producer Salomé Breziner on behalf of the filmmakers. The feature is due for a limited theatrical run and an on-demand release from October 4, 2019. Cuck is a character study on both a person and a uniquely American virus. There are dark, destructive elements in our society that need to be examined. As the saying goes, sunlight is the best disinfectant, and thats exactly what we illuminate with this film, said director Lambert. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Kym Marsh sparks a frenzy by showing off toned abs on Instagram
Kym Marsh impressed her Instagram followers when she showed off her abs (Photo by Yui Mok/PA Images via Getty Images) Kym Marsh has sparked a frenzy after she posted a selfie that showed off her impressive abs. The Coronation Street actress, who is now a grandmother after her daughter Emilie gave birth to a baby boy, posted a picture of herself in a bright pink sports crop top and leggings. Excuse the red face and the sweaty top but hey....no one looks pretty when kicking their own ass!, she captioned the Instagram picture before using the nickname she has given herself now that shes a grandparent. Read more: 'Like I'd been hit by a truck' - Kym Marsh talks terrifying hospital ordeal Loli got to still look good!! Couldnt get to the gym so at home workout for me! #noexcuses. Whilst many of Marshs fans and followers praised the actress for working out, others paid more attention to her abs. WOW! Ab goals!!, wrote one Instagram user. Another commented: Wish I had those abs instead of a mum bod. U look amazing ... wish I had a tummy like urs !! @marsh_kym, a different user of the social media site shared. View this post on Instagram A post shared by Kym Marsh (@marsh_kym) on Jun 19, 2019 at 1:55am PDT Marsh, who plays the role of Michelle Connor in Coronation Street, recently spoke about her grandsons birth and how Emilie honoured her son late son Archie. Read more: Kym Marsh thanks fans after announcing shock Corrie departure In an interview with OK! magazine, Marsh said: I didn't think they would, and nor should they have felt they had to. As far as I knew, he was going to be called Teddy David and I was chuffed with the name David being in there. When I found out his name, I burst into floods of tears. "But now Archie lives on in Teddy's name. Having a baby boy in the house with Archie's name as part of his means the world to me." Emilie went on to reveal that she was always going to include Archies name. She said: (My baby's) full name is Teddy Archie David Hoszowskyj. Archie after my late brother, and David after my brother, dad and grandfather. When I found out I was having a boy I knew I wanted the name Archie to feature, but I wanted it to be a surprise for Mum." View comments |
Elizabeth Warren's best and worst economic ideas
She’s running for president, but Elizabeth Warren may already be the nation’s wonk-in-chief.
“I have a plan for that,” Warren famously declares on the campaign trail when voters ask about struggling farmers or unaffordable child care or shoddy military housing. And she really does. Her detailed policy ideas seem to be working: some polls now place the Democratic senator from Massachusetts insecond place among 23 Democrats, behind only Joe Biden.
Yahoo Finance tallied 26 discrete policy plans Warren has fleshed out on her website, in speeches and in legislation she’s backing. Half relate to business and economic issues. Warreninsists she’s a capitalist, yet she favors aggressive new ways to redistribute wealth, a heavy government role in the economy and other policies relatively close to the “democratic socialism” of Bernie Sanders.
Still, Warren’s ideas are framing much of the policy discussion in the 2020 campaign, to the extent there is any policy discussion this early in the race. So Yahoo Finance is grading 13 of Elizabeth Warren’s economic policy ideas, from A to F, with emphasis on workability, relevance and likely effectiveness.
The “real corporate profits tax.”Grade: B. Warren wouldimpose a 7% tax on all corporate profits above $100 million, to raise money for other programs. She argues this is more effective than simply raising the corporate tax rate because of all the loopholes that allow big companies to evade taxes. She’s right about that. The best tax rates are the lowest ones necessary to fund the government voters want. With annual deficits approaching $1 trillion, somebody’s taxes are too low. The Trump tax cuts of 2017 cut the business tax rate by 40%, which was probably too much. Most voters would be fine with a tax hike targeting big companies that have benefited the most from globalization.
The “ultramillionaire tax.”D. Voters might also be fine with higher taxes on multimillionaires, except this tax would be a nightmare to enforce. Warren wants toimpose a 2% annual tax on net worth above $50 million, and a 3% tax on wealth above $1 billion. The problem with this is determining a wealthy family’s net worth, especially with illiquid assets such as real estate, art and collectibles. Plus, imagine the clever wealth shifting such a law would incite. Better, probably, to raise other taxes such as those on capital gains or income above $250,000.
“Economic patriotism.”C. This plan is agrab-bag of ideasfor using the power of the federal government to “defend and create” American jobs. Some parts make sense, such as replacing the Commerce Department and other outdated agencies with a new Department of Economic Development that would foster industrial policy similar to what Germany and Japan do. Warren would use Uncle Sam’s purchasing power to develop and sustain key industries. One dubious element is a scheme for “more actively managing our currency” to promote exports—in other words, keeping the dollar artificially weak. Government-sponsored currency manipulation: what could go wrong?
Shackle lobbyists.A. Members of Congress wouldnever be allowed to work as lobbyistsonce they leave government. Foreign governments would be banned from lobbying Uncle Sam. Pentagon contractors would have to wait four years to hire military officials who retire. Such laws might face a constitutional challenge, yet they’d address what has basically become legalized corruption in the influence industry.
Universal child care.B. Warren would spend $70 billion per year, raised through the ultramillionaire tax, to offer free child care to working families earning less than 200% of the poverty limit. That threshold in 2019 would be $51,500 for a family of four. This could be a major break for lower-income parents forking over a sizable chunk of their income just so they can work. One concern is whether federal subsidies would boost demand for care so much that costs would soar for parents who don’t qualify for subsidies.
Breaking up Big Tech:D. Warren argues that Amazon, Google and Facebook havebecome so big that they strangle competition. YetGoogle and Facebook are free, and Amazon is a consumer darling generally credited with lowering prices and innovating home delivery. It’s popular to bash Big Tech and their aggressive use of personal data, but the solution to that is new legislation regulating what companies can do with people’s personal information. Turning one big company into three or four smaller ones won’t change the use or abuse of data.
Green manufacturing.C. Warren wouldspend $200 billion per yearto fund clean-energy research and government purchases of clean-energy products, and promote clean U.S. technology around the world. That sounds like a souped-up version of President Obama’s lackluster green-energy agenda. How about trying some market-based incentives, such as a carbon tax?
Free college, cancelling student debt.C. These are populist ideas that could have ugly consequences. Warren would firstcancel up to $50,000 in student debtfor anybody with household income below $100,000. Families earning more would get less relief, with the benefit ending at incomes of $250,000. That would cost $640 billion, which is roughly comparable to the entire national defense budget for 2019. Then she’d make all public colleges free to attend, costing another $62 billion per year. Investing in education does generate strong returns, but this could be another instance where a surge in federal subsidies swells demand, eroding quality and driving up tuition at private universities. It would also reduce or kill the incentive for families to spend education dollars carefully. There are other ideas such as apprenticeships, co-ops,job and salary guaranteesand income-sharing agreements to help students out without putting the entire burden on taxpayers.
Closing the “entrepreneurship gap.”B. This plan wouldallot $7 billion per year for grantsto minority-owned startups, to address a large gap in the financing available to white- and minority-owned businesses. It’s a relatively small amount of money, and since they’d be grants rather than loans, there’d be nothing to pay back. Free money, on the other hand, doesn’t necessarily teach financial discipline.
Making CEOs criminally liable.C. Like many Americans, Warren is frustrated that no bank CEOs went to jail after the financial crash in 2008. So she wants to pass a new law that would make executives at large corporationscriminally liable of negligenceif their companies committed violations that harmed at least 1% of the U.S. population. Such a law might haveput former Equifax CEO Richard Smith in prison. Thing is, there are already laws prohibiting criminal behavior by CEOs—and it’s not a crime to be incompetent. A better solution might be hiring more aggressive prosecutors and enforcement honchos at agencies such as the Securities and Exchange Commission.
More affordable housing.B. This is one area where Warren wants to slash regulation—such as cumbersome local zoning laws that inhibit construction—rather than adding more. She’dspend $50 billion per yearto rehab existing affordable housing, build new units and give localities financial incentives to make it easier to build. There’d be tie-ins with private investors, making the program more efficient, in theory. Warren says adding to the supply of housing would reduce rents 10%. That sounds facile, but the shortage of affordable housing is a legitimate problem in many areas.
Let the federal government manufacture generic drugs.D. Warren sponsors legislation under which theDepartment of Health and Human Services would produce genericswhen there’s no affordable version of a drug on the market. Maybe the government should get the money-losing postal service turned around before breaking into other businesses. Warren does favor letting Medicare negotiate drug prices with manufacturers, a sounder tactic for lowering prices.
Enhance Obamacare en route to Medicare for all. C. If we were grading these items separately, we’d give Warren an B+ for her proposed fixes to Obamacare and an F for Medicare for all, which is aprohibitively expensive pipe dream. TheObamacare fixwould expand subsidies to help people who don’t get coverage through an employer and who earn too much to qualify for Obamacare subsidies, who getgouged for insurancewhen they buy an individual policy. That’s a badly needed patch. Medicare for all, on the other hand, would kill the private insurance millions of Americans are happy with and cause unimaginable disruption as everybody transitioned into a huge government plan. Better to build on Obamacare with a new public option that leaves private insurance intact but offers relief for those under 65 not covered by an employer. Someother Democratshave a plan for that.
Confidential tip line:rickjnewman@yahoo.com.Encrypted communication available. Click here toget Rick’s stories by email.
Read more:
Meet the 2020 presidential candidates
How China could meddle in the 2020 election
Trump has no choice but to land a trade deal with China
Your paltry savings from the Trump tax cuts
Medicare for all won’t work. This might
Rick Newman is the author of four books, including “Rebounders: How Winners Pivot from Setback to Success.” Follow him on Twitter:@rickjnewman
Read the latest financial and business news from Yahoo Finance |
KBR (KBR) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of KBR (KBR)? Shares have been on the move with the stock up 9.4% over the past month. The stock hit a new 52-week high of $24.65 in the previous session. KBR has gained 60.4% since the start of the year compared to the 24.5% move for the Zacks Construction sector and the 22.2% return for the Zacks Engineering - R and D Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 1, 2019, KBR reported EPS of $0.36 versus consensus estimate of $0.33 while it beat the consensus revenue estimate by 11.86%.
For the current fiscal year, KBR is expected to post earnings of $1.66 per share on $5.63 billion in revenues. This represents an 8.5% change in EPS on a 14.67% change in revenues. For the next fiscal year, the company is expected to earn $1.91 per share on $6.14 billion in revenues. This represents a year-over-year change of 15.36% and 9.03%, respectively.
Valuation Metrics
KBR may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
KBR has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 1.63. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, KBR currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if KBR meets the list of requirements. Thus, it seems as though KBR shares could still be poised for more gains ahead.
How Does KBR Stack Up to the Competition?
Shares of KBR have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including AECOM (ACM), Quanta Services (PWR), and NVR (NVR), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for KBR. Still, the fundamentals for KBR are promising, and it still has potential despite being at a 52-week high.
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 reportKBR, Inc. (KBR) : Free Stock Analysis ReportQuanta Services, Inc. (PWR) : Free Stock Analysis ReportNVR, Inc. (NVR) : Free Stock Analysis ReportAECOM (ACM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
RenaissanceRe (RNR) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of RenaissanceRe Holdings (RNR)? Shares have been on the move with the stock up 5.8% over the past month. The stock hit a new 52-week high of $180.57 in the previous session. RenaissanceRe Holdings has gained 34.6% since the start of the year compared to the 11.1% move for the Zacks Finance sector and the 5.1% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2019, RenaissanceRe reported EPS of $3.6 versus consensus estimate of $3.2 while it beat the consensus revenue estimate by 9.07%.
For the current fiscal year, RenaissanceRe is expected to post earnings of $12.6 per share on $2.65 billion in revenues. This represents a 37.51% change in EPS on a 22.58% change in revenues. For the next fiscal year, the company is expected to earn $13.52 per share on $2.91 billion in revenues. This represents a year-over-year change of 7.26% and 9.64%, respectively.
Valuation Metrics
RenaissanceRe may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
RenaissanceRe has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19.8X versus its peer group's average of 14.1X. Additionally, the stock has a PEG ratio of 1.5. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, RenaissanceRe currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if RenaissanceRe passes the test. Thus, it seems as though RenaissanceRe shares could still be poised for more gains ahead.
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 reportRenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Asbury Automotive (ABG) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Asbury Automotive Group (ABG)? Shares have been on the move with the stock up 5.2% over the past month. The stock hit a new 52-week high of $82.9 in the previous session. Asbury Automotive Group has gained 24.1% since the start of the year compared to the 17.3% move for the Zacks Retail-Wholesale sector and the 25.2% return for the Zacks Automotive - Retail and Whole Sales industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 23, 2019, Asbury Automotive reported EPS of $2.2 versus consensus estimate of $1.92 while it missed the consensus revenue estimate by 1.08%.
For the current fiscal year, Asbury Automotive is expected to post earnings of $8.99 per share on $7.14 billion in revenues. This represents a 7.02% change in EPS on a 3.84% change in revenues. For the next fiscal year, the company is expected to earn $9.19 per share on $7.2 billion in revenues. This represents a year-over-year change of 2.2% and 0.83%, respectively.
Valuation Metrics
Asbury Automotive may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Asbury Automotive has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 7.1X versus its peer group's average of 6.8X. Additionally, the stock has a PEG ratio of 0.64. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Asbury Automotive currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Asbury Automotive passes the test. Thus, it seems as though Asbury Automotive shares could still be poised for more gains ahead.
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 reportAsbury Automotive Group, Inc. (ABG) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Honeywell (HON) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Honeywell International (HON)? Shares have been on the move with the stock up 3.6% over the past month. The stock hit a new 52-week high of $176.43 in the previous session. Honeywell International has gained 33% since the start of the year compared to the 22.9% move for the Zacks Conglomerates sector and the 22.9% return for the Zacks Diversified Operations industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 18, 2019, Honeywell reported EPS of $1.92 versus consensus estimate of $1.83 while it beat the consensus revenue estimate by 3.06%.
For the current fiscal year, Honeywell is expected to post earnings of $8.1 per share on $37.17 billion in revenues. This represents a 1.12% change in EPS on a -11.08% change in revenues. For the next fiscal year, the company is expected to earn $8.83 per share on $38.96 billion in revenues. This represents a year-over-year change of 9% and 4.82%, respectively.
Valuation Metrics
Honeywell may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Honeywell has a Value Score of C. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 17.9X versus its peer group's average of 11.3X. Additionally, the stock has a PEG ratio of 2.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Honeywell currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Honeywell passes the test. Thus, it seems as though Honeywell shares could have potential in the weeks and months to come.
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 reportHoneywell International Inc. (HON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is There An Opportunity With HollyFrontier Corporation's (NYSE:HFC) 33% Undervaluation?
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Today we will run through one way of estimating the intrinsic value of HollyFrontier Corporation (NYSE:HFC) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for HollyFrontier
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$899.90", "2020": "$1.10k", "2021": "$820.00", "2022": "$795.24", "2023": "$784.94", "2024": "$784.26", "2025": "$790.20", "2026": "$800.87", "2027": "$814.99", "2028": "$831.73"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x6", "2020": "Analyst x6", "2021": "Analyst x2", "2022": "Est @ -3.02%", "2023": "Est @ -1.29%", "2024": "Est @ -0.09%", "2025": "Est @ 0.76%", "2026": "Est @ 1.35%", "2027": "Est @ 1.76%", "2028": "Est @ 2.05%"}, {"": "Present Value ($, Millions) Discounted @ 9.52%", "2019": "$821.66", "2020": "$915.58", "2021": "$624.18", "2022": "$552.71", "2023": "$498.12", "2024": "$454.42", "2025": "$418.06", "2026": "$386.86", "2027": "$359.46", "2028": "$334.95"}]
Present Value of 10-year Cash Flow (PVCF)= $5.37b
"Est" = FCF growth rate estimated by Simply Wall St
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.5%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$832m × (1 + 2.7%) ÷ (9.5% – 2.7%) = US$13b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$13b ÷ ( 1 + 9.5%)10= $5.07b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $10.43b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $61.53. Compared to the current share price of $41.42, the company appears quite good value at a 33% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at HollyFrontier as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.5%, which is based on a levered beta of 1.14. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For HollyFrontier, I've compiled three essential aspects you should further research:
1. Financial Health: Does HFC have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does HFC's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of HFC? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Honeywell Partners With SmartSky for Connectivity Solution
Honeywell International Inc.HON recently announced that it has entered into an agreement with SmartSky Networks, a provider of air-to-ground network solutions for business aviation.
With the help of 5G technologies, SmartSky’s air-to-ground network offers a reliable and secured IFC solution for airlines, supporting inflight connectivity for aircraft. Notably, the SmartSky network sends a low-latency signal to each aircraft in the network, which supports high performance irrespective of network loading.
Per the agreement, Honeywell will serve as an authorized value-added reseller for SmartSky’s air-to-ground services, using 5G technologies for North American airlines. Notably, it will allow Honeywell to expand its inflight connectivity services, along with boosting its diverse connectivity solutions portfolio.
This will also offer Honeywell customers an additional option for Internet connectivity with the help of SmartSky’s new air-to-ground connectivity. As a matter of fact, the collaboration will enable airlines to cater to the increasing network requirements for passengers like conducting data transfers, running cloud-based applications, surfing the web and streaming videos.
Existing Business Scenario
Strength in the commercial aftermarket and sensing businesses is likely to boost Honeywell’s Aerospace revenues. Also, the company believes that solid demand for warehouse automation, sensing and IoT businesses will drive the Safety and Productivity Solutions’ revenues. Further, strong demand for commercial fire and security products, particularly in India and China, is likely to support the Building Technologies segment.
In the past three months, the Zacks Rank #2 (Buy) company's shares have gained 11.8% against 1% decline of the industry.
Moving ahead, Honeywell expects that greater operational excellence and share buybacks will drive profitability. For 2019, it anticipates earnings in the range of $7.90-$8.15 per share compared with previous guidance of $7.80-$8.10.
Other Key Picks
Some other top-ranked stocks from the same space are Carlisle Companies Incorporated CSL, Federal Signal Corporation FSS and United Technologies Corporation UTX. While Carlisle sports a Zacks Rank #1 (Strong Buy), Federal Signal and United Technologies carry a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Carlisle outpaced estimates thrice in the preceding four quarters, the average positive earnings surprise being 19.07%.
Federal Signal surpassed estimates in each of the preceding four quarters, the average positive earnings surprise being 21.75%.
United Technologies beat estimates in each of the preceding four quarters, the average positive earnings surprise being 12.85%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCarlisle Companies Incorporated (CSL) : Free Stock Analysis ReportUnited Technologies Corporation (UTX) : Free Stock Analysis ReportHoneywell International Inc. (HON) : Free Stock Analysis ReportFederal Signal Corporation (FSS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
SM Energy Raises Production View, Eyes Positive FCF in 2H19
SM Energy Company’s SM shares jumped 6.6% yesterday after it announced that second-quarter production is surpassing estimates on better-than-expected well performance and completion timing. As such, the company increased its second quarter and full-year 2019 production guidance by 400 thousand barrels of oil equivalent (MBoe) at the midpoint.
Around 43-44% of total production in the second quarter and full-year 2019 is expected to be oil. Higher production volumes from the Permian Basin and South Texas areas enabled the company to upwardly revise its second-quarter guidance from 126-131 MBoe per day (MBoe/d) to 132-134 MBoe/d. The current projection indicates a significant rise from the year-ago period’s 115.2 MBoe/d. For full-year 2019 as well, SM Energy upwardly revised its production view from 123.3-131.5 MBoe/d to 124.4-132.6 MBoe/d. The new guidance is much higher than the 2018 figure of 120.3 MBoe/d.
Moreover, the company announced several positive well test results from the RockStar area of the Permian Basin and Watson State Austin Chalk in South Texas. These are expected to enhance the company’s Midland Basin and South Texas inventories, as well as unlock value from the existing footprint.
Impressive well performance and capital discipline so far this year are expected to enable the company to go ahead with its target of generating positive free cash flow (FCF) in the second half of 2019. The accomplishment of this target will be remarkable, considering that it had generated negative FCF of $321 million in the trailing 12 months.
Price Performance
Denver, CO-based SM Energy has lost 24.5% year to date compared with 1.4% collective decline of the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, the company has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Montage Resources Corporation MR, Approach Resources Inc. AREX and Earthstone Energy, Inc. ESTE. While Montage Resources sports a Zacks Rank #1 (Strong Buy), Approach Resources and Earthstone Energy hold a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Montage Resources’ sales growth is projected at 27.6% through 2019.
Approach Resources surpassed earnings estimates in three of the trailing four quarters, with the average positive surprise being 12.7%.
Earthstone Energy’ sales growth is projected at 15% through 2019.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEclipse Resources Corporation (MR) : Free Stock Analysis ReportSM Energy Company (SM) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportEarthstone Energy, Inc. (ESTE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
PwC rolls out new auditing tool for cryptocurrencies as Big 4 race to fill demand
“Big Four” professional consulting firm PwC has launched an updated auditing solution for clients who hold cryptocurrencies, the firmannouncedWednesday.
The auditing solution, called Halo, offers a full breakdown of clients' crypto treasury. tracking blockchain transactions to provide “independent, substantive evidence [] needed to establish ownership of cryptocurrency."
The solution currently supports Bitcoin, Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, Litecoin, Ether, ERC20 - OAX token and XRP cryptocurrencies, according to the announcement. PwC did not make clear whether the new platform would be available in all 157 countries it operates in, despite some auditing practices varying by geography.
“It is important as companies continue to digitise we, as auditors, keep up with technology changes in the market, continue to develop audit tools that meet the needs of emerging technologies and serve the changing and developing demands of our stakeholders," said James Chalmers, PwC’s global assurance leader.
[related id="1"]
The Big 4 all currently audit large crypto companies – including exchanges and token projects – but to varying degrees of satisfaction, according to sources who rely on their services. PwC rival EY is taking a particularly strong interest in crypto auditing; investing in tech that will allow the firm to offer a specialised platform.
“My goal is: we’re going to be your first choice for audits…We want to add a tax calculating ability,” EY’s global blockchain innovation lead, Paul Brody,toldThe Block earlier this year, nodding to the “challenges” in this field. EY reportedly has at least 150 crypto related clients, and also provides consulting services on blockchain innovation and the crypto market.
KPMG also has a heavy focus on crypto auditing, while Deloitte is mainly focused on blockchain uses in finance, with their lead blockchain Linda Pawczuk highlighting the lack of clarity aroundcrypto auditing in certain jurisdictions.
"There are no rules” at present, she told The Block last year.
Isabel Woodford contributed to this report. |
Macron to discuss Renault-Nissan with Japan's Abe next week: Elysee official
PARIS (Reuters) - French President Emmanuel Macron will discuss the situation regarding the alliance between carmakers Renault and Nissan with Japanese Prime Minister Shinzo Abe next week, said an official at Macron's Elysee office.
"There will certainly be a discussion during the meeting with Prime Minister Abe about questions regarding the relationship between Renault and Nissan," said the official.
"It will be an opportunity for the President to reaffirm the strong attachment France has regarding the Renault-Nissan alliance, an attachment which was again emphasized during the recent talks that took place with Fiat," added the official.
The French state has a 15% stake in Renault, and French ministers have consistently highlighted the importance of ensuring that the Renault-Nissan alliance remains strong, before planning any further consolidation with the likes of Fiat-Chrysler.
The official in Macron's office added that Macron was not planning to discuss Fiat with Abe. It was also not foreseen that they would discuss the possibility of the French state reducing its Renault stake, the official said.
France's finance minister raised the possibility of stake reduction in order to consolidate the partnership with Nissan.
(Reporting by Jean-Baptiste Vey; Editing by Sudip Kar-Gupta/Leigh Thomas) |
100% Cardano Price Spike Awaits After TestNet Release, Predicts Analyst
ByCCN:Cardanois up by over 105 percent year-to-date as it trades at $0.0903 as of this writing. The cryptocurrency is known to some as the “Ethereum Killer”. It may have already made big gains this year but it appears to just be warming up. We are not alone in this sentiment.
A pseudonymous Twitter account that goes by the name ofBeastlorionbelieves that Cardano is gearing up for a face-melting pump in the next few weeks. The climb comes after the much-anticipated release of thecrypto token’s testnet.
The analyst expects to see Cardano make a 117.72% pump over the next month:
Read the full story on CCN.com. |
Duos Technologies Graduates to OTCQX
JACKSONVILLE, FL / ACCESSWIRE / June 19, 2019/ Duos Technologies Group, Inc. (''Duos'' or the ''Company'') (DUOT), a provider of intelligent security analytical technology solutions, has officially joined the OTCQX exchange. In a press release announced earlier today, OTC Markets Group, Inc. (OTCQX:OTCM), operator of financial markets for 10,000 U.S. and global securities, welcomed Duos and announced that the Company has qualified to trade on the OTCQX® Best Market (the ''OTCQX''), an upgrade from OTCQB® Venture Market, where the company has been trading since early 2015.
Effective today, Duos Technologies Group now trades on the OTCQX under the symbol ''DUOT.'' Investors can find current financial disclosure and Real-Time Level 2 quotes for the company onwww.otcmarkets.com.
''Congratulations to Duos Technologies Group on upgrading to the OTCQX Best Market,'' said Jason Paltrowitz, EVP of Corporate Services at OTC Markets Group. ''OTCQX provides innovative and entrepreneurial companies with a transparent, cost-effective market that enables them to build visibility, liquidity and long-term shareholder value. We look forward to supporting Duos and its shareholders.''
''Joining the OTCQX Market is the result of years of hard work and dedication from the many loyal and talented employees at Duos, who have collectively built this Company into the position of strength we occupy today,'' said Gianni Arcaini, Duos Chairman and CEO. ''Going forward, we will continue to focus on executing our long-term growth strategy, which has propelled us to this elevated status. In turn, we're looking forward to generating even greater interest in our company from the broader investment community.''
About Duos Technologies Group, Inc.
Duos Technologies Group, Inc. (DUOT), based in Jacksonville, Florida, through its wholly owned subsidiary, Duos Technologies, Inc., provides advanced intelligent security and analytical technology solutions with a strong portfolio of intellectual property. The Company's core competencies include intelligent technologies that combine machine learning, artificial intelligence and advanced video analytics that are delivered through its proprietary integrated enterprise command and control centraco® platform. The Company provides its broad range of technology solutions with an emphasis on mission critical security, inspection and operations within the rail transportation, retail, petrochemical, government, and banking sectors. Duos Technologies also offers professional and consulting services for large data centers. For more information, visitwww.duostech.com.
About OTC Markets Group Inc.
OTC Markets Group Inc.(OTCQX:OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities. Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.
To learn more about how we create better informed and more efficient markets, visitwww.otcmarkets.com.
OTC Link ATS and OTC Link ECN are SEC regulated ATSs, operated by OTC Link LLC, member FINRA/SIPC.
[{"Contacts": "CorporateTracie HutchinsDuos Technologies Group, Inc.904-652-1601tlh@duostech.comInvestor RelationsMatt Glover or Tom ColtonGateway Investor Relations949-574-3860DUOT@gatewayIR.com"}]
SOURCE:Duos Technologies Group, Inc.
View source version on accesswire.com:https://www.accesswire.com/549231/Duos-Technologies-Graduates-to-OTCQX |
Why it is Worth Betting on Cigna Stock for Your Portfolio
Cigna CorporationCI is well-placed for growth on the back of its strategic acquisitions, strong international business and a rising top line.Estimates for the stock have been revised upward over the past 30 days, reflecting analysts' optimism on the stock. The stock has seen the Zacks Consensus Estimate for 2019 earnings move 0.2% north over the same time frame.The company even boasts a favorable earnings surprise history, having exceeded the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 7.4%. This also highlights the company’s operating excellence.The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.Its return on equity — a profitability measure — stands at 14.2%, better than its industry's average of 7.9%.The company looks well-poised for 2019 with the buyout of Express Scripts, the pharmacy benefits manager. The merged company is now a one-stop shop for customers' healthcare needs, ranging from the sale of drugs to insurance cover. Consumers will also gain traction from this consolidation as this is expected to improve treatments and lower medical costs.The combined entity will be able to rise in ranks in the health insurance industry, thereby strengthening its competitive edge. This transaction would lead to total cost synergies of $650 million and a double-digit accretion to earnings in 2019.The company has also been putting in efforts to expand its international operations, which have been contributing to its top- and bottom-line growth for the past many years. The company has its global businesses in places like India, Turkey, Hong Kong, etc. with the largest operation being in South Korea where it has been active for more than three decades.Cigna’s revenue stream has been pretty impressive as is evident from its 2010-2018 CAGR of 11%. This growth can be attributable to the company’s specific acquisitions, its operating performance and provision of quality products and services.Following solid results, the company provided a strong guidance, which should instill investors’ confidence in the stock. For 2019, Cigna expects earnings per share in the range of $16.25-$16.65, up from the prior range of $16-$16.50. Total revenues are projected in the $132.5-$134.5 billion band (earlier estimate was $131.5-$133.5 billion).
The company’s long-term growth rate is pegged at 12.2%, higher than the industry's average of 11.5%, which remains a positive for the company.The Zacks Consensus Estimate for current-year earnings per share is pegged at $16.57, suggesting a rise of 16.5% on 178.1% higher revenues of $133.83 billion from the year-ago reported figures.For 2020, the Zacks Consensus Estimate for earnings per share stands at $18.58 on $141.56 billion revenues, implying a respective 12.2% and 5.8% from the prior-year reported numbers.Shares of this Zacks Rank #2 (Buy) company have lost 9% in a year’s time against its industry’s growth of 2%.
Other Key PicksInvestors interested in the medical sector can also take a look at some other top-ranked stocks like WellCare Health Plans, Inc. WCG, HCA Healthcare, Inc. HCA and Molina Healthcare, Inc MOH. You can seethe complete list of today’s Zacks #1 Rank stocks here.WellCare Health offers managed care services to government-sponsored health care programs. The company pulled off average positive surprise of 13.52% in the preceding four quarters. It holds a Zacks Rank of 2.HCA Healthcare provides health care services. In the last four quarters, the company delivered average beat of 15.74%. It is a Zacks #2 Ranked player.Molina Healthcare is a multi-state healthcare organization. In the trailing four quarters, the company came up with average beat of 88.17%. It sports a Zacks Rank #1 (Strong Buy).
This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCigna Corporation (CI) : Free Stock Analysis ReportWellCare Health Plans, Inc. (WCG) : Free Stock Analysis ReportMolina Healthcare, Inc (MOH) : Free Stock Analysis ReportHCA Healthcare, Inc. (HCA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did Nicola Mining Inc. (CVE:NIM) Insiders Buy Up More Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inNicola Mining Inc.(CVE:NIM).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for Nicola Mining
President Peter Espig made the biggest insider purchase in the last 12 months. That single transaction was for CA$185k worth of shares at a price of CA$0.15 each. That means that even when the share price was higher than CA$0.095 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Peter Espig was also the biggest seller, having sold CA$79k worth of shares.
In the last twelve months insiders purchased 1.7m shares for CA$238k. On the other hand they divested 656k shares, for CA$79k. In total, Nicola Mining insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Nicola Mining is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
We saw some Nicola Mining insider buying shares in the last three months. Peter Espig bought CA$15k worth of shares in that time. On the other hand, CFO & Secretary Warwick Bay sold CA$5.0k worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Nicola Mining insiders have about 4.1% of the stock, worth approximately CA$902k. We prefer to see high levels of insider ownership.
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Nicola Mining stock.I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
COLUMN-United States aims to reshape the critical minerals world: Andy Home
(The opinions expressed here are those of the author, a columnist for Reuters.)
* Imports of select critical minerals: https://tmsnrt.rs/2Iqmo36
By Andy Home
LONDON, June 19 (Reuters) - The United States has laid out its strategy to rebuild collapsed domestic supply chains for metals and minerals deemed "critical" to its defence and manufacturing sectors.
"A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals", released earlier this month by the Department of Commerce, includes 61 recommendations, ranging from revamping mine permitting rules to stimulating recycling activities to forging alliances with "friendly" suppliers such as Canada and Australia.
This is very much work in progress. It's only last year that the United States decided on what exactly constitutes a "critical" mineral.
But added urgency has come from China's veiled threats to use its dominance of rare earths production as a weapon in the broader trade stand-off with the Trump Administration.
China's growing control of metals at the heart of the electric transport revolution such as lithium and cobalt represents a second front in the looming raw materials war.
In essence, the United States is looking to reshape global supply chains currently dependent on countries such as China or Russia towards what is starting to look like a metallic version of the NATO military alliance.
BEYOND MINING
Proposals to overhaul domestic planning regulations to speed up mine development have grabbed many of the headlines, not entirely surprisingly since they exacerbate existing tensions between environmental groups and the Trump Administration.
However, some of the specific recommendations are simple common sense, such as determining whether the United States actually has any domestic resources in the first place.
Less than 18% of the U.S. land mass has been geologically mapped and even then "data accessibility is a challenge" given some of the information exists in old paper-format files.
"In contrast, both Australia and Canada (...) have developed geological and geophysical surveys and made these available to the private sector," according to the report.
Moreover, the report's authors make the important point that just building new mines is only a small part of the answer to reducing import dependency.
Take rare earths as an example.
The United States does have a rare earths mine in the form of Mountain Pass in California. However, right now the mine is shipping ore to China for processing because its own plant remains mothballed.
Even if the processing plant were revived, Mountain Pass would still have to ship the refined product overseas because there is no domestic capacity to produce rare earth magnets.
"Increasing mining without increasing processing and manufacturing capabilities simply moves the source of economic and national security risk down the supply chain," the report notes.
The key takeaway is that this is not just about mining but rather the entire supply chain from mine to processing plant to end-use product.
Indeed, boosting recycling strategies and developing substitute technologies are likely going to pay a faster dividend than digging new mines.
The research arm of the Defense Logistics Agency (DLA), for example, has already "worked with industry to reclaim nickel-based super alloys from turbine engines and germanium from infrared and night vision equipment, which has offset the requirement to purchase virgin germanium for the stockpile".
The Critical Materials Institute and the Defense Advanced Research Projects Agency have generated new permanent magnet designs containing zero rare earths and iron-nickel alloys to replace key rare earths such as dysprosium respectively.
BUILDING A MINERALS ALLIANCE
The report also draws a clear distinction between "friendly" and non-friendly suppliers of critical minerals.
No prizes for guessing who falls into the latter camp.
"If China or Russia were to stop exports to the United States and its allies for a prolonged period - similar to China's rare earths embargo in 2010 - an extended supply disruption could cause significant shocks throughout U.S. and foreign critical mineral supply chains," the report notes.
Canada and Mexico, on the other hand, "supply all or part of U.S. consumption for many critical minerals". "Working with them to develop their critical mineral deposits can help improve the security of U.S. supply," it adds.
Australia is also a key potential partner, particularly in the rare earths sector, where Lynas Corp. has signed a memorandum of understanding to build a rare earth processing facility in Texas with privately-held Blue Line Corp.
Australia has just released its own Critical Minerals Strategy, touting the fact that "we have existing projects and significant geological reserves of minerals deemed critical by other nations".
Other potential alliance members are the European Union and Japan, both of which share U.S. concerns about critical mineral dependency, particularly in the wake of China's 2010 embargo.
CLOCK TICKING
The United States is redrawing the minerals map of the world.
We might be heading for the metallic equivalent of the Cold War with the world divided into competing producer blocs.
It's a process that dovetails with what has been happening with other metal supply chains, even those for non-critical components of the alchemical table.
U.S. tariffs on aluminium imports, for example, are aimed first and foremost at China, even if that target has at times been obscured by the Trump Administration's somewhat scatter-gun approach. It has only just rolled back tariffs on Canada, even though it is a major allied supplier to the U.S. market.
The big problem for the United States, however, is one of timing.
"Some Federal Government actions outlined in this strategy can be taken in the short-term, such as stockpiling and improving reliable trade options," according to the report.
However, "other actions, such as catalyzing exploration, designing and constructing new mines, and re-establishing domestic downstream manufacturing supply chains take longer to implement."
Many of the report's recommendations come with time-line goals of up four years or are simply designated as "ongoing".
That's not going to be of much use if China makes good on its threat, made via the Communist Party-controlled Global Times, to restrict rare earth supplies to U.S. defence contractors.
Indeed, the U.S. strategy of decoupling mineral supplies from China may persuade Beijing that its rare earths trade gun is better used sooner rather than later, if it is going to be fired at all.
(Editing by Louise Heavens) |
Here's Why You Should Retain Cenovus Energy (CVE) Stock Now
Cenovus Energy Inc.CVE is well poised to grow on the back of prospective oil sands projects in Alberta and growing capital efficiency.
The Calgary, Canada-based integrated energy company — with a market cap of around $10 billion — has an expected earnings growth rate of 6% for the next five years. For second-quarter 2019, its earnings per share are projected at 21 cents, indicating a significant turnaround from the year-ago reported loss of 19 cents. This estimate remained unchanged over the past 30 days.
Let’s delve deeper to find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
A Look at the Positives
Growth Projects:Cenovus Energy has operations in the prospective oil sands development in Alberta, where it has been employing a specialized technique for drilling and pumping crude out of the surface. The company is presently operating Christina Lake and Foster Creek oil sands projects, and gained regulatory approvals for additional developments like Narrows Lake and Telephone Lake, which will further boost crude output. In particular, its Christina Lake oil sands project, which has seen sustainable reduction in finding and development costs, is expected to improve long-term cash flows.
Efficiency:For 2019, Cenovus Energy has reduced capital expenditure projection by 4% to the range of $1.2-$1.4 billion. This is mainly due to efficiency improvements at the company’s oil sands operations and curtailed development plans for the Deep Basin as a result of the current commodity price environment. In spite of the reduced capex, the company expects higher total oil sands production.
Management:Management has also been working diligently. It has not been shy of divesting assets, particularly those that do not fit into the company’s long-term growth plan. As part of this initiative, Cenovus Energy divested the legacy conventional business on Jan 5, 2018 and completed sale of the Cenovus Pipestone Partnership — a wholly-owned subsidiary — on Sep 6, 2018, thereby freeing up capital to concentrate on high-grade prospects in the long term. Through 2018, it received proceeds of C$1.1 billion from non-core asset divestments, reflecting that the company is focused on streamlining its portfolio, thereby impairing debt burden and increasing shareholder value.
Price Performance
Clearly, investors are noticing the company’s true potential. This is evident from Cenovus Energy’s increase of 26.1% year to date compared with 13% collective gain of the industry it belongs to and 14.1% rise of the S&P 500 Index.
What’s Deterring the Stock?
There are a few factors that are holding back the stock from reaching its true potential.
The acquisition of Foster Creek and Christina Lake properties from ConocoPhillips nearly doubled Cenovus Energy’s debt burden in early 2017. Currently, the company has cash and cash equivalents of only C$244 million, and a total long-term debt of C$7,715 million, reflecting balance sheet weakness. This can affect its financial flexibility.
The company’s free cash flow plunged 44.6% and 79.5%, respectively, in first-quarter 2019 and fourth-quarter 2018. Free cash flow in the first quarter of 2019 came in at only $87 million. This reflects growing weakness in the company’s operations, which can be attributed to challenges in the Canadian commodity price environment.
To Sum Up
Despite riding on significant growth prospects, balance sheet weakness and challenges in the Canadian commodity price environment are concerns for the company. Nevertheless, we believe that systematic and strategic plan of action will drive its long-term growth.
Key Picks
Some better-ranked players in the energy space are Montage Resources Corporation MR, Approach Resources Inc. AREX and Earthstone Energy, Inc. ESTE. While Montage Resources sports a Zacks Rank #1 (Strong Buy), Approach Resources and Earthstone Energy hold a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Montage Resources’ sales growth is projected at 27.6% through 2019.
Approach Resources surpassed earnings estimates in three of the trailing four quarters, with the average positive surprise being 12.7%.
Earthstone Energy’ sales growth is projected at 15% through 2019.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEclipse Resources Corporation (MR) : Free Stock Analysis ReportCenovus Energy Inc (CVE) : Free Stock Analysis ReportEarthstone Energy, Inc. (ESTE) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Investors Who Bought Grande Portage Resources (CVE:GPG) Shares Three Years Ago Are Now Up 94%
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By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, theGrande Portage Resources Ltd.(CVE:GPG) share price is up 94% in the last three years, clearly besting than the market return of around 12% (not including dividends).
Check out our latest analysis for Grande Portage Resources
Grande Portage Resources didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Grande Portage Resources will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). Grande Portage Resources has already given some investors a taste of the sweet gains that high risk investing can generate, if your timing is right.
Grande Portage Resources had liabilities exceeding cash by CA$323,781 when it last reported in January 2019, according to our data. That puts it in the highest risk category, according to our analysis. So the fact that the stock is up 25% per year, over 3 years shows that high risks can lead to high rewards, sometimes. It's clear more than a few people believe in the potential. You can click on the image below to see (in greater detail) how Grande Portage Resources's cash levels have changed over time.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. One thing you can do is check if company insiders are buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. You canclick here to see if there are insiders buying.
Investors in Grande Portage Resources had a tough year, with a total loss of 35%, against a market gain of about 1.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5.0% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. If you would like to research Grande Portage Resources in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
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Intrexon Up on Striking 100M Cannabinoid Deal With Surterra
Intrexon CorporationXON announced that it has entered into an exclusive global licensing agreement with the privately held Surterra Wellness to produce specific cannabinoids with the help of its in-house proprietary yeast fermentation platform. The deal is worth a $100 million including milestones and royalties.
By dint of this contract, both companies are looking to develop new cannabis products to meet the growing and selective consumer demand in a cost-effective manner through an efficient supply chain management.
Shares of Intrexon rallied almost 13.2% following this news on Tuesday. In fact, the stock has surged 31.5% so far this year, outperforming the industry’s increase of 4.1%.
Per the contract, Intrexon will receive an upfront cash payment of $10 million and $15 million worth of Surterra common shares (privately valued) for exclusive access to its technology. Over the next five years, the company expects to receive around $20 million as research and development (R&D) expenses plus developmental milestones/royalties for each cannabinoid developed and commercialized.
The pact looks a good strategic fit for both houses. Notably, Intrexon’s proprietary yeast fermentation platform is on track to yield pure cannabinoids. With an exclusive access to Intrexon's technology for microbial production of cannabinoids, Surterra can focus on the research and development of specific cannabinoids to cater to the needs and demand of consumers related to such products in the future.
Intrexon’s proprietary yeast fermentation process will also reduce Surterra’s dependence on the conventional cultivation methods for cannabinoid production. Surterra can now focus on traditional agricultural methods, improve its yield consistency and purity plus produce rare cannabinoids in large quantities at lower cost.
Notably, this is the second strategic licensing agreement between the two companies to take place this year. Earlier this March, Intrexon announced a strategic licensing deal with Surterra to utilize its own Botticelli next-generation plant propagation platform for the production of the latter's specific cannabis cultivars for the Florida market.
Per the terms of the agreement, Intrexon will be entitled to royalties on Surterra's Botticelli-derived plantlet usage. The latter will deploy the Botticelli platform within its Florida cultivation facility to serve its operations in the state and will also be responsible for maintaining appropriate licensure at the production site.
Zacks Rank & Stocks to Consider
Intrexon currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the healthcare sector include Acorda Therapeutics, Inc. ACOR, Repligen Corporation RGEN and Merus N.V. MRUS, all sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Acorda’s loss per share estimates have been narrowed 6.5% for 2019 and 6.9% for 2020 over the past 60 days.
Repligen’s earnings estimates have been revised 12% upward for 2019 and 12% for 2020 over the past 60 days. The stock has surged 49.9% year to date.
Merus’ loss per share estimates have been narrowed 22.2% for 2019 and 17.2% for 2020 over the past 60 days.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportRepligen Corporation (RGEN) : Free Stock Analysis ReportMerus N.V. (MRUS) : Free Stock Analysis ReportAcorda Therapeutics, Inc. (ACOR) : Free Stock Analysis ReportIntrexon Corporation (XON) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Can Value Investors Pick Hospitality Properties (HPT) Stock?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s putHospitality Properties TrustHPT stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Hospitality Properties has a trailing twelve months PE ratio of 6.99, as you can see in the chart below:
This level actually compares quite favorably with the market at large, as the PE for the S&P 500 stands at about 17.91. Also, if we focus on the long-term PE trend, Hospitality Properties’ current PE level puts it below its midpoint of 7.99 over the past five years.
The stock’s PE also compares quite favorably with the Finance Market’s trailing twelve months PE ratio, which stands at 14.18. This indicates that the stock is quite undervalued right now, compared to its peers.
Moreover, Hospitality Properties has a forward PE ratio (price relative to this year’s earnings) of 6.85, which is slightly lower than the current level. So, it is fair to say that a slightly more value-oriented path may be ahead for Hospitality Properties stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Hospitality Properties has a P/S ratio of just 1.82. This is quite lower than the S&P 500 average, which comes in at 3.24x right now. Also, as we can see in the chart below, this is below the highs for this stock in particular over the past few years.
Broad Value Outlook
In aggregate, Hospitality Properties currently has a Value Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Hospitality Properties a solid choice for value investors.
What About the Stock Overall?
Though Hospitality Properties might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of D and a Momentum Score of B. This gives HPT a Zacks VGM score — or its overarching fundamental grade — of B. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been discouraging. The current quarter has seen no upward revisions versus two downward revisions over the past sixty days, while the current-year estimates have seen one upward revision and two downward revision in the past sixty days.
This has had a mixed impact on the consensus estimate as the current-quarter consensus estimate has dipped 2.9% over the past two months, while the current-year estimate has inched down 0.8%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Hospitality Properties Trust Price and Consensus
Hospitality Properties Trust price-consensus-chart | Hospitality Properties Trust Quote
Despite such bearish analyst sentiments, the stock has a Zacks Rank #3 (Hold) and it is the reason why we are looking for in-line performance from the company in the near term.
Bottom Line
Hospitality Properties is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Despite, a strong industry rank (among Top 33% of more than 250 industries), with a Zacks Rank #3 it is hard to get too excited about the stock.
Also, over the past two years, the broader industry has clearly underperformed the market at large, as you can see below:
So, investors might want to wait for analyst sentiments and Zacks rank to turn around in the name first but once that happens, the stock will be a compelling pick.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHospitality Properties Trust (HPT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did Changing Sentiment Drive Gainey Capital's (CVE:GNC) Share Price Down A Painful 77%?
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We're definitely into long term investing, but some companies are simply bad investments over any time frame. It hits us in the gut when we see fellow investors suffer a loss. For example, we sympathize with anyone who was caught holdingGainey Capital Corp.(CVE:GNC) during the five years that saw its share price drop a whopping 77%. Shareholders have had an even rougher run lately, with the share price down 38% in the last 90 days.
Check out our latest analysis for Gainey Capital
Gainey Capital didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). It seems likely some shareholders believe that Gainey Capital will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Some Gainey Capital investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Gainey Capital had cash in excess of all liabilities of just CA$398k when it last reported (December 2018). So if it has not already moved to replenish reserves, we think the near-term chances of a capital raising event are pretty high. That probably explains why the share price is down 25% per year, over 5 years. You can see in the image below, how Gainey Capital's cash levels have changed over time (click to see the values).
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. What if insiders are ditching the stock hand over fist? I'd like that just about as much as I like to drink milk and fruit juice mixed together. You canclick here to see if there are insiders selling.
We're pleased to report that Gainey Capital shareholders have received a total shareholder return of 38% over one year. There's no doubt those recent returns are much better than the TSR loss of 25% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Before spending more time on Gainey Capitalit might be wise to click here to see if insiders have been buying or selling shares.
Of courseGainey Capital may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
This Chinese Start-Up Is Poaching Facebook and Google’s Leaders
Over the past few years, Chinese app maker ByteDance has become the world's most valuable start-up, with a valuation of $75 billion. That meteoric rise was fueled by the growth of its short video app TikTok, its news aggregator app Jinri Toutiao, and other apps aimed at China's Gen Z users.
Chinesetech giantsBaidu,Alibaba, andTencentall consider ByteDance a disruptive threat in China. However, ByteDance's flagship app TikTok, which lets users create short lip-syncing videos, is also gaining ground againstFacebook(NASDAQ: FB)andAlphabet's(NASDAQ: GOOG)(NASDAQ: GOOGL)Google in overseas markets.
Image source: Getty Images.
ByteDance clearly has its sights set on those two tech giants. In February, it hired Vanessa Pappas, the former global head of creative insights at YouTube, as TikTok's first general manager in the U.S. It also recently hired Blake Chandlee, Facebook's VP of global partnerships, as TikTok's head of strategic partnerships. Those hires are aimed at expanding TikTok's global presence, and the numbers indicate that Facebook, Google, and other tech companies need to pay attention.
TikTok was formed from the merger of two apps, Douyin (which it's still called in China) and Musical.ly. In less than three years TikTok's monthly active user base grew to over 500 million, making it the world's fourth-largest social platform after Facebook, YouTube, and Instagram.
TikTok was the most downloaded non-game iOS app worldwide last year according to Sensor Tower. YouTube ranked second, followed by Facebook's WhatsApp, Instagram, and Messenger.
TikTok was also the fourth most downloaded non-game app on Google Play. WhatsApp, Messenger, and Facebook held the top three positions. YouTube ranked 10th, but it probably wasn't downloaded as much because it's pre-installed on many Android devices.
ByteDance is trying to lock users into Douyin by launching Mini Programs (similar to the ones found inBaidu, Alibaba, and Tencent'sapps) for games, purchases, and other services. It's also expanding TikTok's ecosystem with other linked apps, including the video chat app Duoshan, the messaging app Flipchat (with integrated mobile payments from Alibaba-backed Alipay), and the work collaboration platform Lark.
Image source: Getty Images.
ByteDance still owns other established apps like Jinri Toutitao, which serves over 120 million daily active users, the overseas news aggregator platform News Republic, and the short video platform Xigua. The combination of all these apps makes ByteDance a formidable opponent for its domestic and overseas rivals.
Facebook, which hasn't been shy aboutcloning featuresfrom Tencent's WeChat andSnap's Snapchat, already identified TikTok as a growing threat last year. That's why it launched a TikTok clonecalled Lassoin the U.S. last November.
But Lasso never caught on. In February, Sensor Tower reported that only about 70,000 U.S. users had downloaded Lasso since its launch, compared to 39.6 million U.S. users who downloaded TikTok during the same period.
Facebook will likely kill off Lasso, but it will still probably launch more TikTok clones -- just as it repeatedly launched Snapchat clones (like Poke, Slingshot, Lifestage, and Flash) before it settled on using Instagram as its main Snapchat competitor. It could also integrate more TikTok-like features, like music, lip-syncing, and video effects, into Instagram to widen its moat against ByteDance.
Google hasn't publicly reacted to TikTok's growth yet, likely because it thinks TikTok's short videos don't compete against YouTube's longer videos. However, TikTok could still lure away YouTube's broadcasters and viewers, especially in the fickle Gen Z market.
ByteDance probably won't directly hurt Facebook or Google by poaching their talent. But it indicates that the world's most valuable start-up has international ambitions -- and it could eventually lure away some of Facebook and Google's younger users.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.Leo Sunowns shares of Baidu, Facebook, and Tencent Holdings. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Baidu, Facebook, and Tencent Holdings. The Motley Fool has adisclosure policy. |
Trump raises $24.8 million for reelection in less than 24 hours, RNC says
President Trump held a rally in Orlando on Tuesday night billed as the kickoff to his reelection campaign. And according to the Republican National Committee, he received nearly $25 million in contributions in less than a day. RNC Chair Ronna McDaniel announced Wednesday that Trump raised a record breaking $24.8M in less than 24 hours for his re-election. The enthusiasm across the country for this President is unmatched and unlike anything weve ever seen! she tweeted. RNC chief of staff Richard Walters told Yahoo News that the total is a combination of the amount raised by the Trump campaign and Trump Victory, the joint fundraising arm for the campaign and the RNC. The RNC took in $10.8 million from major donors at two fundraising events, while the Trump campaign raised $8 million through a phone drive and about $6 million in online donations. (The average online donation was $44, Walters said.) Trumps one-day haul is nearly four times the amount former Vice President Joe Biden raised in the first 24 hours after announcing his 2020 presidential campaign. Biden took in $6.3 million, the largest first-day total for any of the 2020 Democratic presidential candidates. According to Bidens campaign , the money was raised from nearly 97,000 individual donors across all 50 states. President Trump acknowledges the crowd at a rally in Orlando on Tuesday. (Photo: Eva Marie Uzcategui T./Anadolu Agency/Getty Images) The former vice presidents campaign raised slightly more in its first 24 hours than former Texas Rep. Beto ORourke ($6.1 million) and Vermont Sen. Bernie Sanders ($5.9 million). Biden, though, has faced criticism among Democratic rivals for his embrace of high-rolling donors and top-dollar fundraisers. I dont spend time at fancy fundraisers, Sen. Elizabeth Warren tweeted earlier this week. Instead, I spend my time meeting voters and thanking grassroots donors who chip in what they can. At a $2,800-a-plate fundraiser in New York City on Monday night, Biden said his campaign had already raised nearly $20 million , mostly from small donors. But at another fundraiser, at the Carlyle Hotel on New Yorks Upper East Side on Tuesday night, Biden asked for support from about 100 prominent Democratic donors and promised he would not demonize them for their wealth. What Ive found is rich people are just as patriotic as poor people, Biden said, according to Bloomberg News . I need you very badly. ___ Read more original 2020 coverage from Yahoo News: Trump kicks off new campaign with airing of old grievances Orlando Sentinel endorses 'not Donald Trump' for president McConnell on Jon Stewart: I dont know why hes all bent out of shape U.S. probably had excellent presidents who were gay, Buttigieg says Will Donald Trump and Steve Bannon reunite for 2020? View comments |
Draghi may just have tied hands of successor
By Balazs Koranyi and Francesco Canepa
SINTRA, Portugal (Reuters) - Mario Draghi is seeing out the final weeks of his tenure in charge of the European Central Bank, but his overt hint of more stimulus to come could mean his influence is felt on ECB policy long after he has left the bank's Frankfurt home.
Draghi leaves office at the end of October but a fresh round of stimulus in whatever form would set the direction of travel for much of the next year, thus making it difficult for a new ECB president to chart a new course even if they wanted to.
Draghi said on Tuesday the ECB was prepared to cut rates or restart bond purchases in the absence of a clear improvement in the inflation outlook - complicated moves that are difficult to quickly undo without damaging the bank's credibility.
Who will take over from Draghi is still part of a wider game of political musical chairs on the European level and subject to the usual horse-trading by national leaders.
With the succession still up in the air, Draghi had the leeway to act, ECB-watchers and policy-makers acknowledge.
Fresh stimulus would protect the Draghi legacy at least for some time if a hawk like Germany's Jens Weidmann, the Bundesbank president, takes over the ECB.
It could also make life easier for a more centrist successor such France's Francois Villeroy de Galhau or Finland's Olli Rehn and Erkki Liikanen, because difficult decisions would then already be out of the way.
"He seems keen to protect his legacy and he wants to go out showing he's done everything. He also wants to make it difficult to undo the 'whatever it takes' legacy," one ECB policy-maker, who asked not to be named, told Reuters, referring to Draghi's famous 2012 promise of unprecedented central bank support for the euro that brought the bloc back from the brink of collapse.
"PRE-COMMITTING"
Germany's political establishment, known for hawkishness on monetary policy, was predictably up in arms at Draghi's speech, which even caught other ECB policy-makers by surprise.
"The apparently uncoordinated comments from ECB President Draghi on further monetary policy measures are an alarming signal for the European Central Bank's integrity," said Hans Michelbach, spokesman for Chancellor Angela Merkel's conservative CDU/CSU bloc.
Draghi's defenders are quick to point out that he himself charted a fresh course immediately after taking office, reversing erroneous rate hikes.
But Draghi has revamped the ECB's policy framework, which would make a similar reversal now near impossible.
The key ECB rates are tied down by forward guidance, the bank's communication mechanism which currently sees unchanged rates through the first half of 2020. A rate hike would thus risk invalidating the bank's key tool to signal its future policy stance.
The ECB has also hinted that a rate cut might be accompanied by a multi-tier deposit rate to protect lenders from the side effects of negative rates. That is a complex facility which would be damaging to implement only to quickly end.
Quantitative easing -- a purchase of sovereign and private debt -- also needs time to be effective and the ECB has in the past signalled its planned duration, making this facility also difficult to quickly change.
While Draghi did not promise more stimulus, the wording and conditionality outlined makes it nearly impossible not to act.
"There is no question about the strength of the signal - the ECB stands ready to act using all the instruments at its disposal, with no limits within its mandate," Pictet Strategist Frederic Ducrozet said.
"As close as it gets to pre-committing," he added.
Precarious growth in Draghi's native Italy may have also been a factor. With state finances already strained, Italy looks set to see a big increase in borrowing costs.
"If QE (quantitative easing) starts again, it could have the same impact as the last announcement in 2014. It will ease the situation in primary markets for us," Davide Iacovoni, head of debt management at the Italian Treasury said.
(Additional reporting by Michael Nienaber, Christian Kraemer and Abhinav Ramnarayan; editing by Mark John) |
Near-Term Outlook for Silver Mining Industry Looks Grim
The Zacks Mining - Silver industry primarily comprises companies that are engaged in silver mining. These companies include big and small players that extract silver from mines of widely varying types and scale. The mining, processing, development and mineral exploration activities are subject to several laws governing development, prospecting, production, taxes, labor standards and environmental regulation in various jurisdictions in which these companies operate. Let's take a look at the three major themes in the industry: The Mining - Silver industry is subject to fluctuations in silver prices which had been affected by a plethora of factors in 2018, including a stronger U.S. dollar, interest rate hikes and U.S-China trade war apprehensions. These resulted in a decline of 9.5% in silver prices in 2018. On top of this, the industry had to contend with escalating production costs including electricity, wages, water and materials. With no control over silver prices, the industry has to focus on improving sales volumes while being cost-effective. The companies are investing more than ever in R&D and resorting to technological innovations targeted at nearly every level of operation to increase efficiency of operations, sustain growth and keep costs low. However this year, silver prices have gained on aggressive buying by China which is buying the metal for industrial usage and expectations of a rate cut by the U.S Fed. Silver’s unrivaled characteristics make it indispensable for many industrial products. In fact, industrial applications account for roughly 60% of the global silver consumption. Growing industrial activity will continue to sustain silver demand. China will continue to be a major driver in the global silver market for years to come, fueled by sustained industrial demand and silver mining activity. With expanding uses in technology as a result of development of more electric cars and robotics is fueling demand for silver. The ongoing revolution in green technologies, aided by the exponential growth of new energy vehicles and investment in solar photovoltaic energy, will be a major catalyst. To curb pollution, governments globally are providing financial incentives and imposing regulations that favor the development of electric and hybrid vehicles. Demand in jewelry fabrication, which accounts for approximately one-fifth of total silver demand, is also expected to increase. For many fashion-conscious consumers, silver is more desirable than gold because of its color neutrality, which provides more versatility. India will emerge as a major consumer courtesy of increased investor interest and growth in jewelry, decorative items and silverware fabrication. Moreover, silver serves as a safe haven asset in times of uncertainty. However, the prospects of a dwindling supply loom large on the industry. Silver mine production fell 2% in 2018, the third consecutive year-on-year drop. This can be attributed to the absence of development of new projects, declining ore grades and depleting reserves. Consequently, a potential silver deficit is imminent, which in turn sets the stage for higher silver prices in the long haul. Story continues Zacks Industry Rank Indicates Dismal Prospects The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy prospects in the near term. The Zacks Mining - Silver Industry, which is a 12-stock group within the broader Zacks Basic Materials Sector, currently carries a Zacks Industry Rank #192, which places it at the bottom 25% of 256 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since the beginning of the year, the industry’s earnings estimate for the current year has gone down 54%. Despite bleak near-term prospects of the industry, we will present a few mining-silver stocks that one can retain given their growth prospects. But it’s worth taking a look at the industry’s shareholder returns and current valuation first. Industry Lags S&P 500 & Sector on Shareholder Returns The Mining- Silver Industry has underperformed the S&P 500 over the past year. The stocks in this industry have collectively slumped 25.5% in the past year against the Zacks S&P 500’s growth of 3%. Meanwhile the Zacks Basic Material Sector declined 14% over the past year. One-Year Price Performance Mining- Silver Industry’s Valuation On the basis of forward 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing gold-mining companies, we see that the industry is currently trading at 21.1X compared with the S&P 500’s 11.0X. However, the industry is trading above the Basic Material sector’s trailing 12-month EV/EBITDA of 8.4X. This is shown in the charts below. Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio Over the last five years, the industry has traded as high as 23.8X and as low as 4.6X, with the median being at 13.2X. Bottom Line The fundamental image surrounding silver appears quite strong. Rising industrial demand and broader economic growth present solid growth opportunities in the silver mining space. With expanding uses in technology, demand for silver continues to increase. Moreover, a potential silver deficit will provide a strong ground for silver prices. None of the stocks in Zacks Mining- Silver Industry currently sport a Zacks Rank #1 (Strong Buy). However, we are presenting one stock with a Zacks Rank #2 (Buy) and three carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here . Fortuna Silver Mines Inc. (FSM): This Vancouver, Canada-based company carries a Zacks Rank #2. The Zacks Consensus Estimate for fiscal 2019 has gone up 9% over the past 60 days. The company has an average positive earnings surprise history of 33.34% over the past four quarters. Price and Consensus: FSM Avino Silver & Gold Mines Ltd. (ASM): The Zacks Consensus Estimate for fiscal 2019 earnings for this Toronto, Canada-based company indicates an improvement of 33.33% year over year. The company has an average positive earnings surprise history of 100.00% over the trailing four quarters. The company carries a Zacks Rank #3. Price and Consensus: ASM Alexco Resource Corp. (AXU): This Vancouver, Canada-based company carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings for fiscal 2019 earnings projects year-over-year growth of 50%. The company has an average positive earnings surprise history of 12.5% over the past four quarters. Price and Consensus: AXU First Majestic Silver Corp. (AG): This Vancouver, Canada-based carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for EPS for fiscal 2019 suggests year-over-year growth of 104.76%. The Zacks Consensus Estimate for fiscal 2019 has also moved up over the past 60 days. Price and Consensus: AG The Could Be the Fastest Way to Grow Wealth in 2019 Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities. These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month. Click here to see these breakthrough stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fortuna Silver Mines Inc. (FSM) : Free Stock Analysis Report Alexco Resource Corp (AXU) : Free Stock Analysis Report Avino Silver (ASM) : Free Stock Analysis Report First Majestic Silver Corp. (AG) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Why Gencor Industries, Inc. (NASDAQ:GENC) Could Be Your Next Investment
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! I've been keeping an eye on Gencor Industries, Inc. ( NASDAQ:GENC ) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe GENC has a lot to offer. Basically, it is a company with great financial health as well as a an impressive history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Gencor Industries here . Flawless balance sheet with solid track record GENC delivered a bottom-line expansion of 46% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did GENC outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 28% earnings growth. This paints a buoyant picture for the company. GENC's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that GENC manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at GENC's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. GENC has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. NasdaqGM:GENC Income Statement, June 19th 2019 Next Steps: For Gencor Industries, I've compiled three fundamental aspects you should look at: Future Outlook : What are well-informed industry analysts predicting for GENC’s future growth? Take a look at our free research report of analyst consensus for GENC’s outlook. Valuation : What is GENC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GENC is currently mispriced by the market. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GENC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Did You Manage To Avoid Genesis Healthcare's (NYSE:GEN) Painful 55% Share Price Drop?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Investing in stocks comes with the risk that the share price will fall. And there's no doubt thatGenesis Healthcare, Inc.(NYSE:GEN) stock has had a really bad year. In that relatively short period, the share price has plunged 55%. However, the longer term returns haven't been so bad, with the stock down 27% in the last three years. The falls have accelerated recently, with the share price down 15% in the last three months.
Check out our latest analysis for Genesis Healthcare
Genesis Healthcare isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In just one year Genesis Healthcare saw its revenue fall by 8.5%. That looks pretty grim, at a glance. The share price drop of 55% is understandable given the company doesn't have profits to boast of. Fingers crossed this is the low ebb for the stock. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Thisfreeinteractive report on Genesis Healthcare'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
Genesis Healthcare shareholders are down 55% for the year, but the broader market is up 4.6%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 9.9% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. If you would like to research Genesis Healthcare in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Harley-Davidson Inks New Partnership In China
Iconic motorcycle brandHarley-Davidson Inc(NYSE:HOG) reached an agreement with the Chinese manufacturer Qianjiang to build a small motorcycle that will be sold in global markets,The Wall Street Journal reportedWednesday.
What Happened
Harley-Davidson'snew partnership calls for Qianjiang to manufacture a new motorcycle with an engine displacement of 338 cubic centimeters, WSJ said.
That makes it the the company's smallest bike in decades and nearly half the size of the typical 601 cubic centimeter engine in most motorcycles sold in the U.S.
Even though the bike is small, it will still be considered a premium product in the Chinese market, the report said. The Chinese manufacturer boasts the necessary experience in building small motorcycles and has the expertise to ensure the bike looks and sounds like a classic Harley motorcycle.
Why It's Important
Harley is front-and-center in the growing global trade war. President Donald Trump blasted Harley in a Tweet in August 2018 and said it was "great" consumers were threatening to boycott the company if it moved production outside the U.S.
What's Next
Harley's announcement is consistent with the Milwaukee, Wisconsin-based company's prior comments to the effect that it will move production overseas to avoid new duties, WSJ said.
The company will continue looking at other factories in China and in other Asian countries for additional production, according to Wednesday's report; the company has guided to increase the mix of international sales from 42% of total sales in 2018 to 50% by 2027.
Harley shares were up 0.74% at $35.24 at the time of publication Wednesday.
Related Links:
Harley-Davidson Beats Low Q1 Expectations, But Analyst Says US Retail Environment Challenging
'Easy Rider,' Harder Sell For Young People: UBS Asks Whether Harley-Davidson's Moment Has Passed
Photo courtesy of Harley-Davidson.
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BitMax.io (BTMX.com) Announces Listing of Algo (ALGO)
NEW YORK, NY / ACCESSWIRE / June 19, 2019 /BitMax.io (BTMX.com) has announced the listing of Algo (ALGO), the native token of the Algorand blockchain network. The Algorand Foundation is committed to building a trusted, public, and permissionless infrastructure for the borderless economy with a pure proof-of-stake blockchain; the BitMax team is thrilled to provide strategic support to the Algorand team in their pursuit of this ambitious and innovative vision.
The listing of ALGO on BitMax.io (BTMX.com) signifies a strategic alignment of interests amongst two leading institutions, both committed to driving innovation within the digital asset ecosystem.
About the Algorand Foundation and ALGO
The Algorand blockchain is entirely decentralized, which means there is no powerful central authority or single point of control. A unique committee of users is randomly and secretly selected to approve every block. Nodes are run by entities representing diverse backgrounds across many different countries.
Algorand uses a pure proof-of-stake (PPoS) consensus protocol built on Byzantine agreement. This means the system can achieve consensus without a central authority and tolerate malicious users as long as a supermajority of the stake is in non-malicious hands. The users' influence on the choice of a new block is proportional to their stake in the system (number of algos). Users are randomly and secretly selected to both propose blocks and vote on block proposals. All online users have the chance to be selected to propose and to vote. The likelihood that a user will be chosen is directly proportional to its stake.
About BitMax.io (BTMX.com)
Founded in 2018, BitMax.io is a next-generation digital asset trading platform with a broad range of financial products and services for both retail and institutional clients. Especially the platform services sophisticated buy-side & sell-side institutions in both Eastern & Western demographics who are seeking highly liquid marketplace.
The innovative trading platform was founded by a group of Wall Street quant trading veterans and built upon the core values of efficiency, resilience, and transparency to deliver a high-performance, institutional grade trading experience to clients.
Conclusion
BitMax.io has experienced significant growth since its launch late 2018 and is deeply committed to providing a high-performance, client-centric trading platform to its global client base. Currently, the platform has over 180,000 registered users, with over 50,000 active community members. BitMax.io's listing of ALGO represents a strategic milestone for the team to expand partnership with the world's most innovative teams driven to optimize and redefine the existing digital asset ecosystem.
For more information, follow BitMax.io on:
Website:http://www.BitMax.io
Twitter:https://twitter.com/BitMax_Official
Reddit:https://www.reddit.com/r/BitMax/
Telegram:https://t.me/BitMaxioEnglishOfficial
Medium:https://medium.com/bitmax-io
CONTACT:support@bitmax.io
SOURCE:BitMax
View source version on accesswire.com:https://www.accesswire.com/549230/BitMaxio-BTMXcom-Announces-Listing-of-Algo-ALGO |
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