Split (1)

train · ~16.3M rows (showing the first 2.16M)

text stringlengths 1 675k ⌀
Disney Investors Have a Friend in "Toy Story 4" The next hugeDisney(NYSE: DIS)movie is about to hit a multiplex near you.Toy Story 4makes its highly anticipated debut tonight, and the latest installment in the franchise that put Pixar on the map is going to be popular. EachToy Storyfilm has topped its predecessor, withToys Story 3cracking $415 million in ticket salesin 2010 to become the third-highest grossing animated film at the time. There is no reason whyToy Story 4shouldn't topple those numbers. It will open in more movie theaters than any previous Disney animated feature, and ticket prices inch higher with every passing year. Initial reviews have been glowing, just as they were for the three earlier movies. Disney also has also more riding on the franchise at its theme parks than it did last time out. In short, the stakes are high when the toys are back in town. Image source: Disney. It's been 24 years since Pixar's originalToy Storyushered in the era of feature-length computer-animated features, and Disney's $7.4 billion deal to acquire Pixar in 2006 cemented the franchise's fate squarely in the hands of the media giant. Pixar on its own was reluctant to go the sequel route, but it's a different story for its financially fueled parent.Toy Storyis as close as it gets to a sure thing in Hollywood, and Disney knows it. Disney has never been better suited to cash in on the franchise. It now has social media promotional tools that weren't fully developed when the last film hit theaters nine years ago. Its theme parks are also more Pixar-centric. The Toy Story Mania carnival shooting arcade ride existed at Disneyland and Disney World whenToy Story 3rolled out in 2010, but the franchise's influence has expanded with Jessie's Critter Carousel opening at Disney's California Adventure in April. The bigger investment came last year whenToy Story Land openedat Disney's Hollywood Studios in Florida. Merchandising is also getting a boost this time around.Toy Story 4is introducing several new characters into the family of playthings that come to life when humans aren't around, and Disney's consumer products division is going to milk them as much as possible with new merchandise. Disney itself was already having a hot 2019 at the multiplex before the new computer-animated film. This year's three highest-grossing movies --Avengers: Endgame,Captain Marvel, andAladdin-- are all the handiwork of the House of Mouse. It will own the four top spots within a week. Disney has its finger squarely on the pulse of what consumers crave. This is the fifth year in a row that the world's highest-grossing film is put out by Disney.Toy Story 4is here, and Disney isn't playing around. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Rick Munarrizowns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has adisclosure policy.
MBUU or YETI: Which Is the Better Value Stock Right Now? Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Malibu Boats (MBUU) and Yeti (YETI). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits. Malibu Boats and Yeti are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in. 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 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. MBUU currently has a forward P/E ratio of 10.70, while YETI has a forward P/E of 26.50. We also note that MBUU has a PEG ratio of 1.07. 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. YETI currently has a PEG ratio of 1.56. Another notable valuation metric for MBUU is its P/B ratio of 4.27. 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. For comparison, YETI has a P/B of 67.15. These are just a few of the metrics contributing to MBUU's Value grade of A and YETI's Value grade of F. Both MBUU and YETI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MBUU 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 reportMalibu Boats, Inc. (MBUU) : Free Stock Analysis ReportYETI Holdings, Inc. (YETI) : 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? The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Match Group (MTCH) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Match Group is one of 635 companies in the Computer and Technology group. The Computer and Technology group currently sits at #7 within 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. MTCH is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past three months, the Zacks Consensus Estimate for MTCH's full-year earnings has moved 26.06% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Our latest available data shows that MTCH has returned about 64.46% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 18.73% on a year-to-date basis. This means that Match Group is outperforming the sector as a whole this year. Looking more specifically, MTCH belongs to the Internet - Services industry, which includes 50 individual stocks and currently sits at #77 in the Zacks Industry Rank. Stocks in this group have gained about 11.50% so far this year, so MTCH is performing better this group in terms of year-to-date returns. Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to MTCH 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 report Match Group, Inc. (MTCH) : Free Stock Analysis Report To read this article on Zacks.com click here.
Eaton Vance (EV) Up 4% Since Last Earnings Report: Can It Continue? A month has gone by since the last earnings report for Eaton Vance (EV). Shares have added about 4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Eaton Vance due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Eaton Vance Q2 Earnings & Revenue Beat Estimates, Costs UpEaton Vance’s second-quarter fiscal 2019 (ended Apr 30) adjusted earnings of 89 cents per share handily surpassed the Zacks Consensus Estimate of 76 cents. Also, the bottom line increased 16% year over year.Results were driven by improvement in assets under management (AUM) balance and a slight rise in management fees. Further, the company’s liquidity position remained strong. However, a slight fall in revenues and higher operating expenses were headwinds.Net income attributable to shareholders (GAAP basis) was $101.8 million, up 5% from the year-ago quarter.Revenues Decline, Expenses RiseTotal revenues in the reported quarter were $411.9 million, down marginally year over year. Rise in management fees and stable service fees were more than offset by lower distribution and underwriter fees, and other revenues. However, the top line beat the Zacks Consensus Estimate of $405.7 million.Total expenses increased 2% from the prior-year quarter to $284.7 million, largely due to higher amortization of deferred sales commissions.Total operating income declined 4% year over year to $127.2 million.Liquidity Position Strong, AUM Balance ImprovesAs of Apr 30, 2019, Eaton Vance had $525 million in cash and cash equivalents compared with $600.7 million on Oct 31, 2018. The company had no borrowings outstanding against its $300-million credit facility.Eaton Vance’s consolidated AUM grew 7% year over year to $469.9 billion as of Apr 30, 2019. The reported quarter witnessed net inflows of $11.9 billion.Share RepurchasesDuring first-half fiscal 2019, Eaton Vance repurchased and retired nearly 4.7 million shares of its Non-Voting Common Stock for $183.5 million under the company’s existing repurchase authorization.OutlookEffective tax rate for fiscal 2019 is anticipated to be 25.9-26.4%. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed an upward trend in fresh estimates. VGM Scores At this time, Eaton Vance has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Eaton Vance has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. 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 reportEaton Vance Corporation (EV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is Dycom Industries (DY) Up 2.7% Since Last Earnings Report? A month has gone by since the last earnings report for Dycom Industries (DY). Shares have added about 2.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Dycom Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Dycom Q1 Earnings & Revenues Surpass Estimates Dycom Industries reported impressive first-quarter fiscal 2020 (ended Apr 27, 2019) results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of 53 cents topped the consensus estimate of 43 cents by 23.3%. However, the figure declined 18.5% on a year-over-year basis. The company pointed out that although major customers have stepped up infrastructure spending, higher-than-expected costs have hurt Dycom’s margins. Revenue Discussion Dycom reported fiscal first-quarter contract revenues of $833.7 million, increasing 14% year over year. The reported figure surpassed the consensus mark of $770.6 million by 8.2%. Organically, revenues improved 15.8% year over year during the quarter, backed by deployment of 1-gigabit wireline networks, wireless/wireline converged networks and wireless networks. Notably, organic revenues excluded $4.7 million of storm restoration services and contract revenues of $6.1 million from an acquired business in the reported quarter. Its top five customers contributed 80.4% to total contract revenues, increasing 19.4% organically. Dycom’s largest customer AT&T accounted for 25.1% of the total revenues. AT&T grew 28.7% organically. Verizon, which contributed 21.6%, was up 47.2% organically; Comcast accounted for 16.4%; CenturyLink added 17.8%; and Windstream, representing 4.1% of the total revenues, climbed 38% organically. Revenues from all other customers grew 3% organically in the quarter. Dycom’s backlog at the end of the reported quarter totaled $7.051 billion versus $7.33 billion at January 2019-end. Approximately $2.723 billion of the backlog is projected to be completed in the next 12 months. Operating Highlights Adjusted gross margin of 16.8% declined 161 basis points (bps). Margins were impacted by cost of a large customer program. Adjusted EBITDA margin contracted 130 bps to 8.8% compared with 10.1% in the year-ago quarter. Financials Dycom had cash and cash equivalents of $33.6 million as of Apr 27, 2019 compared with $128.3 million on Jan 26, 2019. Its long-term debt was $867.4 million at the end of the first quarter compared with $867.6 million at fiscal 2019-end. Second-Quarter Fiscal 2020 Guidance The company anticipates contract revenues in the range of $835-$885 million, above the Zacks Consensus Estimate of $840.1 million, considering the mid-point of the guided range. Also, the said range is above the year-ago reported figure of $799.5 million. Adjusted earnings are anticipated within 70-92 cents per share. Considering the mid-point of this guidance, the estimated range is below the consensus mark of 86 cents per share for the quarter. Also, the said range is way below the prior-year reported figure of $1.05 per share. Dycom expects adjusted EBITDA margin to decrease from the year-ago period. Story continues How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. VGM Scores At this time, Dycom Industries has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Dycom Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 Dycom Industries, Inc. (DY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Why Is Kohl's (KSS) Down 12.3% Since Last Earnings Report? A month has gone by since the last earnings report for Kohl's (KSS). Shares have lost about 12.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Kohl's due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Kohl's Q1 Earnings Lag Estimates, Outlook Slashed Kohl's posted dismal first-quarter fiscal 2019 results. Adjusted earnings of 61 cents per share missed the Zacks Consensus Estimate of 67 cents and declined 4.7% on a year-over-year basis. This can be accountable to soft revenues and increased SG&A expenses. Total revenues came in at $4,087 million, which fell 2.9% from the prior-year quarter. Moreover, the figure came below the Zacks Consensus Estimate of $4,203 million. Net sales also decreased 3.3% to $3,821 million, while other revenues grew 4.3% to $266 million in the quarter. Further, comps declined 3.4% against growth of 3.6% recorded in the year-ago quarter. This crushed the company’s positive comps record of six straight quarters. Moving on, gross margin fell 6 basis points (bps) to 36.8% in the reported quarter. SG&A expenses as percentage of sales expanded 130 bps to 31.2%. Further, operating income came in at $118 million, down from the prior-year quarter’s $210 million. Other Financial Details The company ended the quarter with cash and cash equivalents of $543 million, long-term debt of $1,855 million and shareholders’ equity of $5,442 million. The company generated net cash from operating activities of $136 million during the first quarter. On May 15, Kohl’s announced a quarterly cash dividend of 67 cents per share, which is payable on Jun 26, 2019, to stockholders of record as on Jun 12. Other Developments The company unveiled a long-term contract with Fanatics to widen the fan gear product range for Kohl’s online customers. Fanatics is a leading worldwide name for licensed sports merchandise. The wide range of products, including team apparel, jerseys and other merchandise categories, will be available to Kohl’s online shoppers from fall 2019. Guidance Kohl’s clearly began fiscal 2019 on a soft note, owing to the weaker-than-anticipated sales. However, the company is on track with its sales-driving initiatives, which are likely to enhance its performance in the second half. To this end, management is particularly encouraged about the nationwide rollout of its returns program with Amazon along with other extended programs and brand launches. While the company is focused on efficient cost management, it is somewhat conservative about fiscal 2019. Consequently, Kohl’s slashed its bottom-line view and envisions earnings per share to be $5.15-$5.45, down from the prior projection of $5.80-$6.15. Story continues How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -17.18% due to these changes. VGM Scores Currently, Kohl's has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Kohl's has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. 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 Kohl's Corporation (KSS) : Free Stock Analysis Report To read this article on Zacks.com click here.
Nordstrom (JWN) Down 3.4% Since Last Earnings Report: Can It Rebound? It has been about a month since the last earnings report for Nordstrom (JWN). Shares have lost about 3.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Nordstrom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Nordstrom’s Q1 Earnings Miss, FY19 View CutNordstrom reported lower-than-expected results for first-quarter fiscal 2019. While the company’s earnings missed the Zacks Consensus Estimate after four consecutive beats, sales lagged for the second straight quarter. Both the top and bottom line also decreased on a year-over-year basis.Results were hurt by soft sales trends in full-price stores during the fourth quarter, which continued into the quarter under review. Consequently, management slashed its view for the fiscal year.Q1 HighlightsIn the quarter under review, Nordstrom’s earnings of 23 cents per share lagged the Zacks Consensus Estimate of 43 cents. The bottom line also declined 54.9% year over year.Total quarterly revenues fell 3.3% to $3,443 million and also missed the Zacks Consensus Estimate of $3,542 million. While the company’s net Retail sales dropped 3.5% to $3,349 million, Credit Card net revenues rose 2.2% to $94 million. Notably, the top line was hurt by the company’s loyalty program, digital marketing and merchandise. This, in turn, led to declines across the full-Price and off-Price businesses, in stores and online.Furthermore, Nordstrom’s full-price net sales (including the U.S. full-line stores, Nordstrom.com, the Canadian operation, Trunk Club, Jeffrey and Nordstrom Local) decreased 5.1% to $2,127 million in the fiscal first quarter. The company’s off-price net sales (including Nordstrom U.S. Rack stores, Nordstromrack.com/HauteLook and Last Chance clearance stores) too dipped 0.6% to $1,222 million.Meanwhile, the company’s digital sales grew 7% and represented 31% of the overall net sales. Nordstrom also witnessed impressive growth in digital sales and store traffic in its Los Angeles market.Nordstrom is focused on attaining long-term targets that support strategic efforts to drive shareholder returns. This includes improving returns and profitability, gains in market share and disciplined capital allocation.Further, the company remains on track to boost growth by resolving executional issues with respect to the launch of its loyalty program, investments in digital marketing and enhancement of merchandise assortment to fulfil customer expectations. It has also been focusing on cost-containment efforts and is ahead of its plans to accomplish savings of $150-$200 million in fiscal 2019.Operational UpdateNordstrom's gross profit margin contracted 60 basis points (bps) to 33.5% mainly on account of anticipated markdowns to realign inventory to sales trends and higher occupancy expenses.Selling, general and administrative (SG&A) expenses, as a percentage of sales, rose 168 bps to 34% primarily owing to higher fixed costs on lower sales.Store UpdateAs of May 4, 2019, Nordstrom operated 380 stores across 40 states. These include 119 full-line stores in the United States, Canada and Puerto Rico, 247 Nordstrom Rack outlets, three Jeffrey boutiques, two clearance stores, six Trunk Club clubhouses as well as three Nordstrom Local service concepts.FinancialsNordstrom ended the quarter with cash and cash equivalents of $448 million, long-term debt (net of current liabilities) of $2,177 million and total shareholders’ equity of $651 million.Nordstrom used $31 million of net cash by operating activities and spent $249 million as capital expenditures as of May 4, 2019. At the end of the fiscal first quarter, it had negative free cash flow of $240 million.Moreover, the company bought back 4.1 million shares for $186 million in the quarter under review. Following this, nearly $707 million remained under the current buyback authorization. Additionally, it paid cash dividends worth $58 million.GuidanceFollowing the dismal quarterly performance, management lowered its guidance for fiscal 2019. The company now estimates net sales to remain flat to down 2% against increase of 1-2% projected earlier. Credit card revenues, net, are now expected to grow in the range of low to mid-single digit versus mid to high single-digit growth.Further, the company expects EBIT of $805-$890 million, while EBIT margin is anticipated to be 5.3-5.8%. Previously, the company projected the metric in the band of $915-$970 million, with EBIT margin of 5.9-6.1%.Consequently, the company envisions adjusted earnings per share of $3.25-$3.65 for fiscal 2019 compared with $3.65-$3.90 guided earlier. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -18.47% due to these changes. VGM Scores At this time, Nordstrom has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Nordstrom has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. 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 reportNordstrom, Inc. (JWN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Golar LNG (GLNG) Down 15.5% Since Last Earnings Report: Can It Rebound? A month has gone by since the last earnings report for Golar LNG (GLNG). Shares have lost about 15.5% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Golar LNG due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Golar LNG Posts Q1 Loss, Revenues Top Golar LNG incurred a loss (excluding 4 cents from non-recurring items) of 37 cents in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 26 cents. Moreover, the amount of loss increased year over year.Total operating revenues amounted to $97.8 million, which surpassed the consensus mark of $88.9 million. Also, the top line surged 47.7% year over year.Of the total revenues, Liquefaction services revenues accounted for the bulk (47.7%) of the company’s top line. While Time and voyage charter revenues decreased 18.6%, Time charter revenues — collaborative arrangement — increased 18.4%. Revenues from Vessel and other management fees declined 10.2% year over year. Time Charter Equivalent ("TCE") earnings decreased to $39,300 per day in the quarter under discussion compared with $77,600 in the prior quarter.The company reported operating income of $28.86 million in the first quarter compared with $6.43 million in the year-ago period. Total operating expenses soared 70.8% in the quarter to $125.3 million. Vessel operating expenses jumped 69.7% to $31.25 million. This downside was attributable to additional crew, maintenance and repairs expenses.LiquidityThe company exited the first quarter with cash and cash equivalents of $212.67 million compared with $217.83 million at December 2018 end. As of Mar 31, 2019, its long-term debt totaled $1.59 billion compared with $1.83 billion as of Dec 31, 2018.Other DevelopmentsThe company’s board has decided on a spin-off of its Trifuel Diesel Electric ("TFDE") LNG carrier business so as to focus primarily on FLNG and its downstream assets. Further, at March-end, the company entered into a contract with LNG Hrvtska for the conversion and sale of Golar Viking. The sale is anticipated to fetch the company $40 million in net positive cash.OutlookGolar LNG anticipates commissioning of the Sergipe power station to be completed in the second half of this year. Additionally, Golar Power (a subsidiary of Golar LNG) plans to develop the downstream small-scale market in Brazil, which is expected to boost earnings from 2020 or 2021 onward.The company’s management is positive about its growth potential on the back of an LNG growth rate of approximately 10% pa, a solid rise in contracted earnings, a sound balance sheet and other factors. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 22.45% due to these changes. VGM Scores At this time, Golar LNG has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Golar LNG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 reportGolar LNG Limited (GLNG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Is Calumet Specialty Products Partners, L.P. (CLMT) Outperforming Other Oils-Energy Stocks This Year? Investors focused on the Oils-Energy space have likely heard of Calumet Specialty Products Partners, L.P. (CLMT), 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 Oils-Energy peers, we might be able to answer that question. Calumet Specialty Products Partners, L.P. is one of 311 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #8 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 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. CLMT is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past 90 days, the Zacks Consensus Estimate for CLMT's full-year earnings has moved 216.67% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. According to our latest data, CLMT has moved about 96.38% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 7.94% on average. This shows that Calumet Specialty Products Partners, L.P. is outperforming its peers so far this year. Looking more specifically, CLMT belongs to the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, which includes 14 individual stocks and currently sits at #70 in the Zacks Industry Rank. This group has gained an average of 22.12% so far this year, so CLMT is performing better in this area. CLMT will likely be looking to continue its solid performance, so investors interested in Oils-Energy 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 reportCalumet Specialty Products Partners, L.P. (CLMT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
CFG or FFIC: Which Is the Better Value Stock Right Now? Investors interested in stocks from the Financial - Savings and Loan sector have probably already heard of Citizens Financial Group (CFG) and Flushing Financial (FFIC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. 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, Citizens Financial Group is sporting a Zacks Rank of #2 (Buy), while Flushing Financial has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CFG likely has seen a stronger improvement to its earnings outlook than FFIC has recently. 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. 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. CFG currently has a forward P/E ratio of 8.92, while FFIC has a forward P/E of 12.20. We also note that CFG has a PEG ratio of 1.11. 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. FFIC currently has a PEG ratio of 3.05. Another notable valuation metric for CFG is its P/B ratio of 0.78. 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, FFIC has a P/B of 1.06. These are just a few of the metrics contributing to CFG's Value grade of A and FFIC's Value grade of C. CFG has seen stronger estimate revision activity and sports more attractive valuation metrics than FFIC, so it seems like value investors will conclude that CFG 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 reportCitizens Financial Group, Inc. (CFG) : Free Stock Analysis ReportFlushing Financial Corporation (FFIC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
PHM or NVR: Which Is the Better Value Stock Right Now? Investors looking for stocks in the Building Products - Home Builders sector might want to consider either PulteGroup (PHM) or NVR (NVR). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Both PulteGroup and NVR have a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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. PHM currently has a forward P/E ratio of 9.48, while NVR has a forward P/E of 17.02. We also note that PHM has a PEG ratio of 1.40. 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. NVR currently has a PEG ratio of 1.59. Another notable valuation metric for PHM is its P/B ratio of 1.81. 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, NVR has a P/B of 6.43. Based on these metrics and many more, PHM holds a Value grade of B, while NVR has a Value grade of C. Both PHM and NVR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PHM 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 report PulteGroup, Inc. (PHM) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Home Depot (HD) Up 10.1% Since Last Earnings Report: Can It Continue? A month has gone by since the last earnings report for Home Depot (HD). Shares have added about 10.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Home Depot due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Home Depot’s Earnings & Sales Surpass Estimates in Q1Home Depot posted better-than-expected earnings for first-quarter fiscal 2019, retaining its beat streak for five years now. Also, the company’s top line outpaced the Zacks Consensus Estimate after a miss in the last reported quarter.Quarterly results were fueled by underlying performance of the company’s core business. However, adverse weather in February and deflation in lumber prices hurt Home Depot’s comparable store sales (comps), which lagged analysts’ expectations. Nevertheless, management reiterated its guidance for fiscal 2019.Q1 HighlightsAdjusted earnings of $2.27 per share increased 9.1% from $2.08 registered in the year-ago quarter. The bottom line also exceeded the Zacks Consensus Estimate of $2.16.Net sales grew 5.7% to $26,381 million from $24,947 million in the year-ago quarter and surpassed the Zacks Consensus Estimate of $26,298 million. While the company's overall comps increased 2.5%, in the United States comps grew 3%.During the reported quarter, comps were aided by a 2% rise in average ticket and a 3.8% increase in customer transactions. Moreover, sales per square foot rose 5.6%.In dollar terms, gross profit improved 4.6% to $9,017 million from $8,617 million in the year-ago quarter, primarily driven by higher sales. However, gross profit margin contracted 30 basis points (bps) to 34.2%.Operating income increased 6.4% to $3,597 million, while operating margin was flat year over year at 13.6%.Balance Sheet and Cash FlowHome Depot ended the quarter with cash and cash equivalents of $1,882 million, long-term debt (excluding current maturities) of $26,804 million, and shareholders' deficit of $2,143 million. In first-quarter fiscal 2019, it generated $4,575 million of net cash from operations.Further, the company paid cash dividends of $1,499 million and repurchased shares worth $1,368 million in the reported quarter.OutlookBacked by solid growth strategies as well as present macroeconomic and housing backdrop, Home Depot reaffirmed its sales and earnings view for fiscal 2019, which have 52 weeks.It expects sales growth of nearly 3.3%, with about a 5% increase in comps (for the comparable 52-week period). Additionally, the company anticipates earnings per share of $10.03 for fiscal 2019, up nearly 3.1% year over year. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed an upward trend in fresh estimates. VGM Scores Currently, Home Depot has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Home Depot has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 Home Depot, Inc. (HD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Urban Outfitters (URBN) Down 3.6% Since Last Earnings Report: Can It Rebound? A month has gone by since the last earnings report for Urban Outfitters (URBN). Shares have lost about 3.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Urban Outfitters due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Urban Outfitters Q1 Earnings & Sales BeatUrban Outfitters Inc. reported first-quarter fiscal 2020 results, wherein both top and bottom lines came ahead of the Zacks Consensus Estimate. This was the eighth straight quarter of positive earnings surprise.While net sales showed a marginal improvement, earnings fell sharply from the year-ago period. Also, gross margin contracted year over year and rate of growth of comparable Retail segment net sales decelerated sequentially. Management also highlighted that the company has been grappling with soft store traffic so far in May.These factors along with a soft guidance for the second quarter of fiscal 2020 seem to have weighed on investors’ sentiments. Even the announcement of a subscription rental service for women’s clothes called Nuuly failed to lift the spirit.Coming to the quarterly outcome, this lifestyle specialty retail company posted earnings of 31 cents a share that surpassed the consensus mark of 26 cents. However, the bottom line declined 18.4% year over year on account of higher cost of sales resulting in lower gross margin and increased SG&A expenses.An Insight Into RevenuesIn the reported quarter, net sales of $864.4 million topped the Zacks Consensus Estimate of $857.3 million and advanced a meagre 1% from the prior-year period. The year-over-year growth in sales came on account of positive comparable Retail Segment net sales and continued growth in the Wholesale segment. Well the company witnessed decent performance at its Anthropologie Group and Free People brands. Also, Food and Beverage segment sales increased double digits.At Anthropologie Group, net sales were up 2.3% to $355 million, while the same at Free People improved 2.7% to $186.2 million. At Urban Outfitters, net sales decreased 1.8% to $316.8 million. Meanwhile, Food and Beverage net sales came in at $6.4 million, up 39.2% from the prior-year quarter.The company’s net sales grew 0.9% to $782.6 million at the Retail Segment and 2.2% to $81.9 million at the Wholesale Segment. Comparable Retail Segment net sales increased 1% on double-digit improvement in the digital channel, somewhat negated by lower retail store sales. Brand-wise, comparable Retail Segment net sales rose 2% at Free People and 1% at Anthropologie Group, while it remained flat at Urban Outfitters.Margin PerformanceIn the quarter under review, gross profit came in at $269.1 million, down 4.1% from the year-ago quarter. Gross margin shrunk 167 basis points (bps) to approximately 31.1%, mainly due to lower gross profit in the Retail segment, partly offset by higher gross profit in the Wholesale segment. The decline in Retail segment gross margin was due to increased markdowns, and deleverage in delivery and logistics expenses.SG&A expenses rose 1% to $229 million on account of higher marketing expenses to support the digital channel sales growth. As percentage of net sales, SG&A expenses remained flat at 26.5%. Operating income came in at $40 million, down 25.7% from the year-ago quarter’s figure, while operating margin shriveled 167 bps to 4.6%.Store UpdateDuring the quarter under review, the company opened four retail locations — two Anthropologie Group stores and two Free People stores. It shuttered three locations — one Anthropologie Group store, one Free People store, and one Food and Beverage restaurant. During the quarter, one Anthropologie Group franchisee-owned store was opened.Other Financial DetailsThe company ended the quarter with cash and cash equivalents of $291.2 million, marketable securities of $229.2 million and total shareholders’ equity of $1,448 million. For fiscal 2020, management anticipates capital expenditures of nearly $260 million.In August 2017, the company’s board of directors authorized buyback of 20 million shares, out of which 12 million were remaining as of Apr 30, 2019. During the quarter, the company repurchased and thereafter retired 2.4 million shares for about $71 million.OutlookThe company informed that it has started second-quarter fiscal 2020 “below first-quarter trend and internal expectations”. On the basis of its quarter-to-date performance, management anticipates second-quarter URBN Retail segment comps to decline in low-single-digit range.Based on the comps projection, gross margin is likely to contract more than 300 bps in the second quarter. This can be attributed to increased markdown rates and deleverage in delivery, logistics and store occupancy expenses. SG&A expenses are likely to increase roughly 2% in the second quarter, owing to elevated digital marketing investments to drive digital channel sales. How Have Estimates Been Moving Since Then? It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -25.8% due to these changes. VGM Scores Currently, Urban Outfitters has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Urban Outfitters has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 reportUrban Outfitters, Inc. (URBN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
CSIQ vs. FSLR: Which Stock Should Value Investors Buy Now? Investors with an interest in Solar stocks have likely encountered both Canadian Solar (CSIQ) and First Solar (FSLR). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Canadian Solar has a Zacks Rank of #2 (Buy), while First Solar has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CSIQ has an improving earnings outlook. But this is just one piece of the puzzle 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. The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors. CSIQ currently has a forward P/E ratio of 9.21, while FSLR has a forward P/E of 26.04. We also note that CSIQ has a PEG ratio of 0.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FSLR currently has a PEG ratio of 1.12. Another notable valuation metric for CSIQ is its P/B ratio of 1.02. 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, FSLR has a P/B of 1.29. These metrics, and several others, help CSIQ earn a Value grade of A, while FSLR has been given a Value grade of C. CSIQ sticks out from FSLR in both our Zacks Rank and Style Scores models, so value investors will likely feel that CSIQ 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 reportCanadian Solar Inc. (CSIQ) : Free Stock Analysis ReportFirst Solar, Inc. (FSLR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Is PayPal Holdings (PYPL) Stock Outpacing Its Computer and Technology Peers This Year? For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is PayPal Holdings (PYPL) one of those stocks right now? 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 a member of the Computer and Technology sector. This group includes 635 individual stocks and currently holds a Zacks Sector Rank of #7. 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. PYPL is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for PYPL's full-year earnings has moved 4.24% 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 PYPL has returned about 39.30% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 18.73%. This means that PayPal Holdings is performing better than its sector in terms of year-to-date returns. Looking more specifically, PYPL belongs to the Internet - Software industry, which includes 83 individual stocks and currently sits at #89 in the Zacks Industry Rank. This group has gained an average of 36.80% 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.Zacks Investment Research
Is Universal Display (OLED) Outperforming Other Computer and Technology Stocks This Year? Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Universal Display (OLED) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. 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 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. 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. Based on the most recent data, OLED has returned 97.68% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 18.73% on a year-to-date basis. This shows that Universal Display is outperforming its peers so far this year. Breaking things down more, OLED is a member of the Electronics - Miscellaneous Components industry, which includes 31 individual companies and currently sits at #144 in the Zacks Industry Rank. This group has gained an average of 25.34% so far this year, so OLED is performing better in this area. OLED will likely be looking to continue its solid performance, so investors interested in Computer and Technology 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 reportUniversal Display Corporation (OLED) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Has Heico (HEI) Outpaced Other Aerospace Stocks This Year? Investors focused on the Aerospace space have likely heard of Heico (HEI), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of HEI and the rest of the Aerospace group's stocks. Heico is a member of the Aerospace sector. This group includes 37 individual stocks and currently holds a Zacks Sector Rank of #1. 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. HEI is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past 90 days, the Zacks Consensus Estimate for HEI's full-year earnings has moved 3.84% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. According to our latest data, HEI has moved about 68.95% on a year-to-date basis. In comparison, Aerospace companies have returned an average of 24.26%. This means that Heico is outperforming the sector as a whole this year. Breaking things down more, HEI is a member of the Aerospace - Defense Equipment industry, which includes 21 individual companies and currently sits at #40 in the Zacks Industry Rank. This group has gained an average of 29.80% so far this year, so HEI is performing better in this area. Going forward, investors interested in Aerospace stocks should continue to pay close attention to HEI 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 reportHeico Corporation (HEI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is AutoZone (AZO) Up 7.5% Since Last Earnings Report? A month has gone by since the last earnings report for AutoZone (AZO). Shares have added about 7.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is AutoZone due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. AutoZone Earnings Surpass Estimates in Q3, Up Y/Y AutoZone reported earnings of $15.99 per share in the third quarter of fiscal 2019 (ended May 4, 2019), up from $13.42 in the prior-year quarter. Further, the figure surpassed the Zacks Consensus Estimate of $15.23. Net income rose 10.7% year over year to $405.9 million, which benefitted from lower effective income tax rate. In the reported quarter, net sales improved 4.6% year over year to $2.78 billion. Domestic same-store sales (sales for stores open at least for a year) rose 3.9% year over year, driven by the AutoZone’s improved performances of DIY and commercial businesses. Gross profit increased to $1.49 billion from $1.42 billion in the prior-year quarter. Operating profit (EBIT) rose to $547.5 million from $545.8 million registered in the third quarter of fiscal 2018. Store Opening & Inventory During the quarter ended on May 4, 2019, AutoZone opened 35 stores in the United States, eight in Mexico and three in Brazil. As of the date, it had 5,686 stores across 50 states in the United States, the District of Columbia and Puerto Rico; 576 in Mexico; and 25 in Brazil. The total store count was 6,287 as of May 4. AutoZone’s inventory improved 8% year over year in the quarter under review, driven by store openings and increased product placement. At the end of the quarter, inventory per location increased to $688,000 from the year-ago figure of $658,000. Financial Details AutoZone had cash and cash equivalents of $174 million as of May 4, 2019, down from $218 million as of May 5, 2018. Total debt amounted to $5.2 billion as of May 4, 2019, marking a slight increase from $5 billion recorded on May 5, 2018. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed an upward trend in fresh estimates. VGM Scores At this time, AutoZone has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, AutoZone has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 reportAutoZone, Inc. (AZO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Penney (JCP) Up 19.8% Since Last Earnings Report: Can It Continue? It has been about a month since the last earnings report for J.C. Penney (JCP). Shares have added about 19.8% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Penney due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. J. C. Penney Posts Q1 LossJ. C. Penney Company posted its first-quarter fiscal 2019 results wherein the bottom line missed the Zacks Consensus Estimate, while the top line surpassed the same. However, both the metrics declined year over year.Notably, the company reiterated its guidance for fiscal 2019, wherein free cash flow is likely to be positive.Let’s Delve DeeperThe company posted adjusted loss of 46 cents, wider than a loss of 22 cents reported in the year-ago quarter. Moreover, the figure compared unfavorably with the Zacks Consensus Estimate of a loss of 39 cents.Total revenues (including total net sales and credit income and other) in the quarter came in at $2,555 million, which declined 4.3% from the prior-year quarter’s figure but exceeded the Zacks Consensus Estimate of $2,549 million.Total net sales of $2,439 million fell 5.6% year over year due to soft performance of home, women's accessories and handbags categories. However, fine jewelry, and children's, women's and men's apparel categories performed well.We note that credit income and other totaled $116 million, up 33.3% on a year-over-year basis, driven by functional improvement in the portfolio for credit customers.Comparable sales (comps) during the quarter declined 5.5%. This can be attributed to the company’s exit from major appliance and in-store furniture categories, which took a toll on comps to the tune of 20 basis points (bps).Gross margin contracted roughly 50 basis points (bps) on account of liquidation of slow moving and old inventory. Nevertheless, the company witnessed higher sell-through rates in all product categories during the quarter, along with increased selling margins in most merchandise divisions. Encouraged by this, management projects gross margin to improve in fiscal 2019.Adjusted EBITDA declined to $74 million from $151 million in the year-ago quarter, while adjusted EBITDA margin shrank 280 bps to 3%.SG&A expenses rose 3.6% to $856 million and SG&A expenses as percent of sales expanded 310 bps to 35.1%. SG&A costs were hurt by additional charge related to home office lease of nearly $5-million.Other Financial DetailsJ. C. Penney ended the quarter with cash and cash equivalents of $171 million compared with $181 million in the year-ago quarter. Meanwhile, long-term debt came in at $3,826 million, down 7.6% from $4,142 million in the year-ago period. Shareholders’ equity totaled $1,034 million at the end of the quarter. Merchandise inventory levels decreased 16% to $2,477 million.The company used free cash flow of $268 million for the year ended May 4, 2019, while it used free cash flow of $421 million in the prior-year period. Further, it incurred capital expenditures of $71 million during the quarter.Turnaround EffortsJ. C. Penney has repeatedly failed to bring fashionable and trendy brands, thereby losing customers. Further, the company is reeling under a huge debt load, which is due 2024 end. It is also bearing the brunt of the escalating U.S.-China trade war. In fact, any significant increase in tariffs on imports from China may negatively impact J. C. Penney’s private and national brands.As part of the company’s turnaround efforts, CEO Jill Soltau has made significant changes in leadership. The company launched a new store checkout process during the reported quarter. In this regard, it has already tested a centralized pickup and returns area concept. For the second quarter, management plans to expand this new concept to nearly 500 stores.Also, the company exited major appliance and in-store furniture categories to focus more on its apparel business. This move took a toll on comps in the reported quarter. This apart, it has been shutting down underperforming stores and revamping the existing ones to revive sales and profits.Notably, J. C. Penney is on track to shut down all its full-line stores, out of which three full-line stores have been closed in the reported quarter. It anticipates to close the remaining 15 full-line stores along with most of the ancillary Home and Furniture stores in the second quarter. Moreover, the company’s prime focus is to improve inventory and enhance the apparel business. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.12% due to these changes. VGM Scores At this time, Penney has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Penney has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. 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 reportJ. C. Penney Company, Inc. (JCP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Is Capital Trust (BXMT) Outperforming Other Finance Stocks This Year? Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Capital Trust (BXMT) 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? One simple way to answer this question is to take a look at the year-to-date performance of BXMT and the rest of the Finance group's stocks. Capital Trust is one of 854 individual stocks in the Finance sector. Collectively, these companies sit at #8 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. BXMT is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past three months, the Zacks Consensus Estimate for BXMT's full-year earnings has moved 2.98% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Based on the most recent data, BXMT has returned 14.85% so far this year. Meanwhile, stocks in the Finance group have gained about 11.38% 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 #239 in the Zacks Industry Rank. Stocks in this group have gained about 9.26% so far this year, so BXMT is performing better this group in terms of year-to-date returns. Investors in the Finance sector will want to keep a close eye on BXMT 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 reportCapital Trust, Inc. (BXMT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Alexa, how can I fly to Mumbai? * Amazon starts selling domestic air tickets in India * AirAsia, easyJet building digital travel businesses * Some airlines could partner with Amazon - executives By Nivedita Bhattacharjee, Alistair Smout and Jamie Freed BENGALURU/PARIS/SINGAPORE June 20 (Reuters) - When Karan Mehrotra booked a flight from Delhi to Guwahati, he did not go to a travel agent or an airline website. Instead, he turned to Amazon, the world's biggest online retailer which now sells tickets to Indian customers and offers them an easy payment process and cash-back offers. "It was just a lot simpler," Mehrotra said of booking a flight through Amazon. "They are integrating most of my lifestyle needs under a single platform." Airlines are concerned that Amazon's quiet launch of domestic plane ticket sales in India last month is only the start of a global trend and the beginning of a battle for control of valuable traveller data. For years, airlines have found it difficult to compete with online travel agencies like Expedia Group Inc and corporate travel agents that control a large number of customers, Travelport Chief Executive Gordon Wilson said. "They have nothing left if Google is in that position, or Amazon," he said at a CAPA Centre for Aviation conference this month. "I think the airlines are being very watchful over this." Some carriers, like AirAsia and Easyjet are building digital travel businesses to help boost profits and keep passengers loyal beyond flying. AirAsia's website and app offers an all-in-one travel and lifestyle marketplace selling flights, hotels, activities and retail products. It has launched a digital wallet business called BigPay. "The volume that we generate from our ticket sales is huge - bigger than a lot of other travel agents would sell. So we might as well do it ourselves, and probably sell a lot more," AirAsia Executive Chairman Kamarudin Meranun told Reuters at the Paris Airshow. Europe's easyJet is signing direct booking contracts with hotels to give it more flexibility in pricing packaged holidays on its website. The easyJet Holidays product should be available for summer 2020 bookings by the end of the year, the airline said in a results presentation last month. But companies like Amazon and Alphabet's Google have the upper hand because their broader knowledge of purchasing habits might give them an edge over airlines in presenting attractive offers, travel industry executives said. AMAZON ADVANTAGE In India, Amazon has teamed up with local online travel agency Cleartrip to offer domestic airline bookings, with bigger discounts for members of its loyalty club Prime. "They have an edge in that booking flights is, for most people, a low frequency purchase but most other products on Amazon are purchased with higher frequency," said Seth Borko, a senior research analyst at Skift. "So Amazon can sell discounted flights but then earn back a part of that promotion from customers that shop for other Amazon products and from their Prime membership fees." Amazon has dipped its toe in the travel industry before. The company launched "Amazon Destinations" in 2015 for customers to book hotel rooms in popular U.S. getaways, like Napa Valley and the Hamptons. But it shut the service down the same year, after failing to gain traction in a crowded field of online agencies. Four years later, Amazon is a more powerful company whose interest in bricks-and-mortar grocery, air cargo, healthcare and Hollywood has sent shockwaves through a growing number of markets, expanding its sources of intelligence about its users. In India, shoppers have turned to Amazon for more purchases, including movie bookings, food orders and utility payments. "Payment is very easy because I anyway keep my Pay account loaded," said Atanu Khatua, a 34-year-old businessman from West Bengal who booked a flight to Delhi on Amazon. Amazon, which has been expanding services available through "Alexa", the digital assistant on its Amazon Echo smart speaker, has not revealed any plans to roll out its ticketing the product beyond India. Amazon Pay Director Shariq Plasticwala declined to comment on whether it would expand in India to areas such as hotel bookings. THINK DIGITAL Airlines, which operate in a highly regulated environment with high fixed costs, need to think more like digital retailers to maintain distribution margins, Kenya Airways CEO Sebastian Mikosz said. "If we do not adopt an OTA (online travel agency) business model, we will become technology companies' sub-divisions," he said at the CAPA conference. "If Amazon wanted to buy two or three airlines that wouldn't be an effort for them. I think the only reason they don't do it is because it is not practical. It is much better to have the problems outside and take the margin yourself." Not every airline has the cash or inclination to compete with tech giants like Amazon. But some are looking at partnerships. "We're working closely with the online travel agents, but we will look at the possibility also of working with Amazon," Philippine Airlines CEO Jaime Bautista said at the Paris Airshow. CAPA Executive Chairman Peter Harbison said ticket selling would face "dramatic changes" in the next couple years. "The ones who are going to be successful are the ones who are actually going to partner with them, an Amazon or something like that," he said. (Reporting by Nivedita Bhattacharjee in Bengaluru, Alistair Smout in Paris and Jamie Freed in Singapore; Additional reporting by Jeffrey Dastin in San Francisco; Writing by Jamie Freed; Editing by Tim Hepher and Edmund Blair)
Does Almonty Industries Inc. (TSE:AII) Have A Particularly Volatile Share Price? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Almonty Industries Inc. (TSE:AII) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price. View our latest analysis for Almonty Industries Zooming in on Almonty Industries, we see it has a five year beta of 1.83. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, Almonty Industries shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Almonty Industries's revenue and earnings in the image below. Almonty Industries is a noticeably small company, with a market capitalisation of CA$161m. Most companies this size are not always actively traded. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies. Since Almonty Industries tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Almonty Industries’s financial health and performance track record. I urge you to continue your research by taking a look at the following: 1. Future Outlook: What are well-informed industry analysts predicting for AII’s future growth? Take a look at ourfree research report of analyst consensusfor AII’s outlook. 2. Past Track Record: Has AII been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of AII's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how AII measures up against other companies on valuation. You could start with thisfree list of prospective options. 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.
Churchill Downs, Monarch Casino and Resort, Shake Shack, McDonald's and Restaurant Brands International highlighted as Zacks Bull and Bear of the Day For Immediate Release Chicago, IL – June 20, 2019 –Zacks Equity ResearchShares of Churchill Downs Incorporated CHDN as the Bull of the Day, Monarch Casino and Resort MCRIasthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Shake Shack Inc. SHAK, McDonald's Corp. MCD and Restaurant Brands International Inc. QSR.Here is a synopsis of all five stocks: Bull of the Day: People like to gamble. Though the legal wagering industry in the US has been hindered by a host of moral and ethical concerns and an inconsistent patchwork of regulations, the tide is clearly turning, and there has been a significant expansion of legitimate options for placing wagers. Almost everyone is familiar with theChurchill Downs Incorporatedas the home of one of the most popular and profitable sporting events in the world – the Kentucky Derby Horse race. Tens of millions of people tune into the “Run for the Roses” each May. It’s so famous that simply watching on TV – whether or not you choose to wear a fancy hat – is basically a rite of passage. What’s less recognized is that in addition to the most famous track in the world, the CHDN company owns and operates four other tracks, six casinos, numerous OTB facilities in which horse racing fans can bet on far away races, and –most importantly– TwinSpires.com, the biggest online wagering business in the US. Churchill Downs has been coy so far about their plans for expanding online wagering, and with good reason, it wouldn’t make sense to advertise that you’re the leader in activity that remains in a moral and legal grey area. If the regulations regarding betting on sports become clearer, it’s easy to envision Churchill Downs’ revenues from technology and infrastructure they’ve already developed – but can finally deploy on a serious scale – will explode. SCOTUS Decision In May of 2018, the Supreme Court decided 6-3 that the regulation of sports gambling should be left up to individual states, significantly reducing the hurdles that an inconsistent patchwork of laws had placed in the way of legal sports wagering in most jurisdictions. The case that the court decided was a challenge to a 1992 federal law that disallowed most states from permitting legal sports betting. The Professional and Amateur Sports Protection Act (PASPA) prohibited states from establishing or allowing betting on sporting events, but allowed for “grandfather” provisions that allowed four states to continue licensing and taxing sports gambling operations – most notably Nevada which has been allowing sports betting since the 1940s. Though it’s impossible toexactlyquantify the amount Americans are betting illegally on sports, the most accurate estimates are that something in the area of $150 billion is wagered each year on professional sports and high-level amateur competitions - like the NCAA tournament. As tends to be the case when any (previously restricted) activity goes mainstream, there are a wide range of options for consumers. In keeping with the tradition of their iconic namesake facility, Churchill Downs has chosen to address the high end of the market. Their state-of-the-art Derby City casino, opened in the Fall of 2018, is Louisville’s only legal gaming facility and features 900 gambling machines in 70 different themes as well as two locally-inspired restaurants and a vast gaming bar and outdoor patio, all spread over 85,000 square feet. Derby City is only one of Churchill Downs’ physical facilities, but it’s an important testament to the company’s strategy. In an environment that is bound to include an increasing amount of options for gaming customers, CHDN has correctly surmised that those customers don’t simply want to make bets; they also want an all-inclusive entertainment experience that includes dining, music and other amenities. Twin Spires Named after the distinctive architectural profile of the racetrack itself, TwinSpires.com is Churchill Downs’ online portal for wagering. Offering gamblers the opportunity to watch high-resolution live video from five tracks, up-to-the-minute odds, handicapping data and access to all sorts of wagers – from the traditional “win-place-show” tickets as well as a wide array of more exotic bets. It’s a quick and efficient interface that Churchill Downs describes as like “having your own OTB.” Even more importantly, it’s a foothold in what is likely to be the future of online gaming. There will probably always be some demand for physical racetracks or casinos for gamblers to visit in person, but the economies of scale afforded by internet gambling will someday massively eclipse the in-person wagering business. Churchill Downs is already positioned to expand as much as the (constantly evolving) laws allow. The Financials The beauty of Churchill Downs right now is that their existing businesses are popular and profitable. The potential for the expansion of sports betting to wider online audiences is basically a free call option. The Zacks Consensus Estimate for 2019 net earnings has risen from $3.88 to $4.40/share in the past 60 days, earning CHDN a Zacks Rank #1 (Strong Buy). Bear of the Day: Today’s Bull of the day is the gaming giant that parlayed its reputation as the most famous horseracing venues in the world – and the home of the Kentucky Derby. In addition to having premium product offerings, that company is ideally positioned to take advantage of its presence in the online gaming market. The gaming market continues to evolve It’s exactly that type of pressure that makesMonarch Casino and Resortour Bear of the Day. The company operates two more traditional casino properties in markets that not only aren’t growing, they’re losing market share to more innovative competitors. With the Atlantis Casino in Reno Nevada and the Monarch Casino in Blackhawk, CO (40 miles west of Denver in a former mining town), Monarch Casino & Resorts is positioned at the low-end of the spectrum of gambling options. Nevada Gaming operations used to enjoy a built-in competitive advantage because they were really the only state that widely allowed casinos and people from all over the country traveled to wager and stay at those properties. The widespread proliferation of other options across the country – including Native-American owned casinos as well as riverboat gaming operations means that most Americans have access to Casino gambling without the long trip to Nevada. The high profile Las Vegas resorts reinvented themselves as eclectic entertainment centers that included gambling, but also offered other entertainment options like waterparks, live entertainment and spas. They’ve kept up the number of tourist visits by offering more reasons to come. The best gaming companies are also building and maintaining a strong internet presence – which will be especially valuable as regulations regarding sports wagering continue to relax. Smaller gaming properties tend to be more economically sensitive, with results fluctuating with the financial situation of their local audiences. When people are feeling relatively wealthy, they tend to enjoy luxuries like gaming. When things are tighter, trips to the casino are an easy recreational option to jettison. Monarch Casino & Resort has been showing anemic, single-digit growth in revenues lately and declining net earnings, even in an economic climate that includes record-low unemployment and interest rates and rising wages and GDP. These should be the best possible times for a casino operator, and Monarch’s unimpressive results show that the company could be in real trouble in an economic downturn. Recent net earnings estimates have been falling, with the Zacks Consensus Estimate for the current quarter dipping 10% in the last 90 days to $0.43/share. Full year estimates have fallen by a similar amount, from $2.08/share to $1.89. Those net earnings still leave MCRI at a forward P/E valuation of 22.5X, well in excess of the industry average and the S&P 500. Thanks largely to those reduced estimates, Monarch Casino & Resorts is currently a Zacks Rank #5 (Strong Sell). Additional content: Shake Shack (SHAK) Going Global: Food for Thought? In a classic example of following a rather unconventional path to fuel its growth engine, popular ‘roadside’ burger brandShake Shack Inc.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 Corp. had nearly 38,000 restaurants worldwide, while Restaurant Brands International Inc.’s 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 Recipe The 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 Rewards The 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 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 >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions.Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer.www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visithttps://www.zacks.com/performancefor information about the performance numbers displayed in this press release. 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 reportMonarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis ReportChurchill Downs, Incorporated (CHDN) : Free Stock Analysis 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.Zacks Investment Research
Chainalysis, LINE unit BITBOX in anti-money laundering partnership By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) - Chainalysis, a start-up specializing in countering money laundering and fraud in the digital currency space, has forged a partnership with BITBOX, a cryptocurrency exchange launched in July 2018, a top official of the U.S. company said on Thursday. New York-based Chainalysis will provide anti-money laundering and transaction-monitoring services to BITBOX, said Jonathan Levin, co-founder and chief operating officer of Chainalysis. Singapore-based BITBOX is a unit of LINE Corp, operator of LINE, Japan's largest social networking company, with more than 700 million users. LINE is a subsidiary of South Korean internet search giant Naver Corp. LINE's and BITBOX's foray into cryptocurrencies highlights a trend by social networking companies to enter this red-hot sector. Facebook Inc on Tuesday unveiled a proposed cryptocurrency called Libra. Telegram, a messaging service founded by Russia-born entrepreneurs Pavel and Nikolai Durov in 2013, last year launched a digital currency offering. "We're seeing interest from social network firms like LINE, like Telegram to really enter into payments and into the cryptocurrency industry," Levin told Reuters in an interview. "LINE is providing the ability to go in and out between normal and traditional currencies ... and they need to be able to mitigate the risk of money laundering at the exchange point because that is the regulated entity," he added. The social networks' vast user bases serve as a powerful foundation for expansion into cryptocurrency, Chainalysis said. But it added that as these companies become more involved in the space, further compliance procedures will be necessary in line with what regulators want for this industry. (Reporting by Gertrude Chavez-Dreyfuss)
Save over £200 on this Philips Lumea Prestige hair removal device TL;DR:The sensitivePhilips Lumea Prestige IPL hair removal deviceis on sale for £299 on Amazon, saving you over £200. Everyone has a different body, with unique lumps and bumps that can make hair removal difficult. This is where thePhilips Lumea Prestigecomes in. Inspired by the uniqueness of different body areas, this device offers specialised attachments designed to meet the specific needs of different body areas. Philips Lumea uses a clever light based technology called Intense Pulsed Light (IPL) to break the cycle of hair regrowth. Gentle pulses of light hit your roots, and after several treatments, hair is prevented from growing back for up to eight weeks. It's as easy as that, apparently.Read more... More aboutGrooming,Philips,Mashable Shopping,Shopping Uk, andUk Deals
India's flagging economy needs urgent boost amid muted inflation: MPC minutes By Swati Bhat MUMBAI (Reuters) - With inflation in India well within the monetary policy committee's (MPC) mandated target, it is crucial to give higher importance to faltering economic growth, members said in the minutes of the June meeting released on Thursday. The MPC in June cut its key interest rate by 25 basis points, a third straight cut since the start of 2019, while also changing its stance to "accommodative," after data showed the economy growing at its slowest in more than four years. "The evolving macroeconomic configuration imparts urgency to strong policy support for the flagging economy in pursuance of the goals set for the MPC," committee member Michael Patra said. Asia's third largest economy grew at a slower-than-expected 5.8% in the last quarter, far below the pace needed to generate jobs for the millions of young Indians entering the labour market each month. Members broadly suggested that inflation is expected to stay within the MPC's mandated medium-term target of 4% despite the upside risks. "When inflation is under reasonable control and upside risks are muted, this is the right time to correct the high real rates of interest," said Ravindra Dholakia. Concerns of an uptick in inflation from a sustained rise in food prices, uncertainties related to the monsoon and volatility in international crude oil prices remain and will be monitored, most members said. "There is an important upside risk to RBI's projected inflation trajectory that I wish to highlight in particular – that of fiscal slippage," deputy governor Viral Acharya said. "The upcoming Union Budget is, therefore, key to understanding the inflation outlook, especially the response to ongoing distress in the agrarian economy, caused in part by low food prices and reflected in low rural inflation." Though the minutes suggested that the committee may be open to more rate cuts, not all may be in favour if the budget, to be presented on July 5, is expansionary. "Dr. Acharya continues to stay cautious. But after having changed the stance to accommodative, there cannot be an abrupt reversal," said Rupa Rege Nitsure, chief economist at L&T Financial Holdings. "He may not support additional rate cuts if fiscal policy pans out to be expansionary. Others will support and majority will rule." Annual retail inflation in May was 3.05%, up from the revised 2.99% in the previous month but stayed well below the MPC's target for a tenth consecutive month. "It is prudent to create space for future policy action on either side when the conditions are good," Dholakia said, adding he would recommend proceeding slowly but steadily. "We still see high probability of one more rate cut likely as early as August," said A. Prasanna, chief economist at ICICI Securities Primary Dealership. (Reporting by Swati Bhat; Additional reporting by Sudipto Ganguly; Editing by Janet Lawrence)
Some Consolidated Woodjam Copper (CVE:WCC) Shareholders Are Down 11% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! For many, the main point of investing is to generate higher returns than the overall market. But even the best stock picker will only win withsomeselections. At this point some shareholders may be questioning their investment inConsolidated Woodjam Copper Corp.(CVE:WCC), since the last five years saw the share price fall 11%. It's down 43% in about a quarter. View our latest analysis for Consolidated Woodjam Copper Consolidated Woodjam Copper hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? 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 Consolidated Woodjam Copper will find or develop a valuable new mine before too long. We think companies that have neither significant revenues nor profits are pretty 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 companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Consolidated Woodjam Copper had liabilities exceeding cash by CA$321,891 when it last reported in November 2018, according to our data. That makes it extremely high risk, in our view. But with the share price diving 2.3% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can click on the image below to see (in greater detail) how Consolidated Woodjam Copper's cash levels have changed over time. Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. It only takes a moment for you tocheck whether we have identified any insider sales recently. While the broader market gained around 1.0% in the last year, Consolidated Woodjam Copper shareholders lost 11%. 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 2.3% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling. We will like Consolidated Woodjam Copper better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. 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.
Microsoft (MSFT) Hits 52-Week High, Can the Run Continue? Have you been paying attention to shares of Microsoft (MSFT)? Shares have been on the move with the stock up 6.3% over the past month. The stock hit a new 52-week high of $135.93 in the previous session. Microsoft has gained 33.6% since the start of the year compared to the 18.7% move for the Zacks Computer and Technology sector and the 32% return for the Zacks Computer - Software 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 24, 2019, Microsoft reported EPS of $1.14 versus consensus estimate of $1 while it beat the consensus revenue estimate by 2.46%. For the current fiscal year, Microsoft is expected to post earnings of $4.59 per share on $124.85 billion in revenues. This represents a 18.3% change in EPS on a 13.13% change in revenues. For the next fiscal year, the company is expected to earn $5.1 per share on $138.05 billion in revenues. This represents a year-over-year change of 11.24% and 10.57%, respectively. Valuation Metrics Microsoft 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. Microsoft 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 29.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 25.8X versus its peer group's average of 28.1X. Additionally, the stock has a PEG ratio of 2.38. 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, Microsoft 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 Microsoft fits the bill. Thus, it seems as though Microsoft shares could have a bit more room to run in the near term. How Does Microsoft Stack Up to the Competition? Shares of Microsoft 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 solid potential picks, including Nuance Communications (NUAN), Open Text (OTEX), and HubSpot (HUBS), 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 Microsoft. Still, the fundamentals for Microsoft 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 reportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportHubSpot, Inc. (HUBS) : Free Stock Analysis ReportOpen Text Corporation (OTEX) : Free Stock Analysis ReportNuance Communications, Inc. (NUAN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Estee Lauder (EL) Hits 52-Week High, Can the Run Continue? Have you been paying attention to shares of The Estee Lauder Companies (EL)? Shares have been on the move with the stock up 7.3% over the past month. The stock hit a new 52-week high of $180.42 in the previous session. The Estee Lauder Companies has gained 38.2% since the start of the year compared to the 17.4% move for the Zacks Consumer Staples sector and the 38.2% return for the Zacks Cosmetics 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 May 1, 2019, Estee Lauder reported EPS of $1.55 versus consensus estimate of $1.3 while it beat the consensus revenue estimate by 4.58%. For the current fiscal year, Estee Lauder is expected to post earnings of $5.21 per share on $14.79 billion in revenues. This represents a 15.52% change in EPS on an 8.07% change in revenues. For the next fiscal year, the company is expected to earn $5.77 per share on $15.79 billion in revenues. This represents a year-over-year change of 10.65% and 6.78%, respectively. Valuation Metrics Estee Lauder 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 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. Estee Lauder has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B. In terms of its value breakdown, the stock currently trades at 34.5X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 29.7X versus its peer group's average of 26.6X. Additionally, the stock has a PEG ratio of 2.66. 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, Estee Lauder 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 Estee Lauder passes the test. Thus, it seems as though Estee Lauder shares could have a bit more room to run in the near term. How Does Estee Lauder Stack Up to the Competition? Shares of Estee Lauder have been moving higher, 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 looking good, including Helen of Troy (HELE), Unilever (UN), and Unilever (UL), 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. The Zacks Industry Rank is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Estee Lauder, even beyond its own solid fundamental situation. 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 Estee Lauder Companies Inc. (EL) : Free Stock Analysis ReportHelen of Troy Limited (HELE) : Free Stock Analysis ReportUnilever PLC (UL) : Free Stock Analysis ReportUnilever NV (UN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Should Value Investors Consider Air China (AIRYY) Stock 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 putAir China LimitedAIRYYstock 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, Air China has a trailing twelve months PE ratio of 11.95, 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, Air China’s current PE level puts it below its midpoint over the past five years. Further, the stock’s PE compares favorably with the Zacks Transportation sector’s trailing twelve months PE ratio, which stands at 15.63. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers. We should also point out that Air China has a forward PE ratio (price relative to this year’s earnings) of just 8.81, so it is fair to say that a slightly more value-oriented path may be ahead for Air China 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, Air China has a P/S ratio of about 0.25. 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, AIRYY is in line with 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, Air China currently has a Zacks Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Air China a solid choice for value investors, and some of its other key metrics make this pretty clear too. For example, the P/CF ratio comes in at 1.29, which is lower than the industry average of 5.03. Clearly, AIRYY is a solid choice on the value front from multiple angles. What About the Stock Overall? Though Air China 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 A and a Momentum Score of A. This gives AIRYY 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 year has seen one estimate go higher in the past sixty days compared to no movement in the opposite direction, while the full year 2020 estimate has seen one 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 year consensus estimate has increased by 43.5% in the past two months, while the full year 2020 estimate has risen by 61.1%. You can see the consensus estimate trend and recent price action for the stock in the chart below: Air China Ltd. Price and Consensus Air China Ltd. price-consensus-chart \| Air China Ltd. 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 Air China is an inspired choice for value investors, as it is hard to beat its incredible line up of statistics on this front. A solid Zacks Rank #1 further instils our confidence. However, a sluggish industry rank (among bottom 41% of more than 250 industries) makes it hard to get too excited about this company overall. In fact, over the past two years, the Zacks Transportation – Airline 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. Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAir China Ltd. (AIRYY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
ITT (ITT) Soars to 52-Week High, Time to Cash Out? Have you been paying attention to shares of ITT (ITT)? Shares have been on the move with the stock up 6.9% over the past month. The stock hit a new 52-week high of $63.58 in the previous session. ITT has gained 31.4% since the start of the year compared to the 23% move for the Zacks Conglomerates sector and the 23% 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 May 3, 2019, ITT reported EPS of $0.91 versus consensus estimate of $0.84 while it beat the consensus revenue estimate by 2.72%. For the current fiscal year, ITT is expected to post earnings of $3.61 per share on $2.85 billion in revenues. This represents a 11.76% change in EPS on a 3.85% change in revenues. For the next fiscal year, the company is expected to earn $3.98 per share on $3 billion in revenues. This represents a year-over-year change of 10.16% and 5.14%, respectively. Valuation Metrics ITT 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 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. ITT has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B. In terms of its value breakdown, the stock currently trades at 17.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 14X versus its peer group's average of 11.2X. Additionally, the stock has a PEG ratio of 1.95. 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, ITT 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 ITT fits the bill. Thus, it seems as though ITT 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 reportITT Inc. (ITT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Will Weyerhaeuser Benefit From Housing Industry's Recovery? Weyerhaeuser Company WY is well positioned to benefit from the strengthening U.S. housing industry, focus on operational excellence and shareholder-friendly moves. This is evident from the company’s share price performance in the past month. Weyerhaeuser’s shares have gained 10.8%, outperforming its industry’s rally of 6.9% in the said period, backed by the above-mentioned tailwinds. However, unfavorable average sales realizations for oriented strand board, domestic and export logs, as well as lower volumes are denting profits over the last few quarters. Let’s delve deeper into the factors that substantiate Weyerhaeuser’s Zacks Rank #3 (Hold). Catalysts Driving Growth Rebounding Housing Industry : The housing industry has been showing signs of recovery since the beginning of 2019, post deflating second half of 2018. Steady job and wage growth, favorable builder sentiment, rapidly increasing household formation, along with a limited supply of inventory are strengthening the overall economy. Declining mortgage rates and moderate home prices have been adding to the bliss. Weyerhaeuser is anticipated to reap benefits from the current market conditions in the United States. This leading U.S. forest product company predicts single-family housing starts to grow slightly below 1.3 million in 2019, primarily driven by increased activities during the year. Moreover, higher demand for repair and remodeling activities, as well as growing domestic and world economy are likely to drive profits. Notably, for second-quarter 2019, it predicts significantly higher earnings and adjusted EBITDA on a sequential basis in the Wood Products segment, backed by seasonally increased volumes and operating rates across all the product lines. Business Strategies to Boost Performance : Weyerhaeuser has been undertaking a number of initiatives in order to drive profits in the long run. It remains focused on operational excellence that includes merchandising for value, harvest and transportation efficiencies, along with flexing harvest to capture seasonal and short-term opportunities. These initiatives yielded benefits of $44 million from Timberlands and Wood Products segments in 2018. In fact, it reaped more than $540 million benefits in the past five years (since the inception of the operational excellence program). Particularly, the Timberlands segment (contributing 26.2% to first-quarter 2019 revenues) achieved $42 million of the $40-$50 million total targeted improvement. The uptick was attributable to the initiatives for reducing logging and hauling costs, along with improved log merchandizing and marketing to maximize revenues from every log it harvests. It projects to gain $80-$100 million of additional excellence in 2019. This includes $40-$50 million from Timberlands and $40-$50 million from Wood Products Shareholder-Friendly Moves : Weyerhaeuser keeps on rewarding its shareholders through dividend payments and share buybacks. In 2018, the company repaid nearly $1.4 billion in cash to its shareholders through dividends and share repurchases, and initiated a series of actions that reduced pension liabilities by more than $2 billion. The move is a reflection of the company’s strong cash position and sound capital allocation policy. Major Concerns Lower Profits, Tepid Near-Term Prospects : Weyerhaeuser’s first-quarter 2019 adjusted earnings decreased 69.4% from the year-ago figure, owing to unfavorable average sales realizations for oriented strand board, domestic and export logs, as well as lower volumes. Both the company’s segments generated lower net sales during the quarter. Net sales in the Timberlands segment declined 12% from a year ago while that of the Wood Products unit fell 17.4%. The downside was primarily due to lower Western log sales realizations and volumes. For second-quarter 2019, the company projects sequentially lower earnings and adjusted EBITDA in Timberlands and Real Estate, Energy and Natural Resources segments. This is partly due to seasonality surrounding forestry and road spending, along with the timing of its export shipments. Prospects Signaling Downtrend : Earnings estimates for the current year have declined 3.1% over the past 30 days, depicting analysts’ concern surrounding the stock. Notably, the Zacks Consensus Estimate for 2019 earnings is currently pegged at 63 cents, indicating a fall of 46.6% from the year-ago reported figure. Also, sales are expected to decline 5.6% from a year ago to $7.06 billion. Weyerhaeuser’s stretched valuation is a concern. Currently, its trailing five-year price to earnings (P/E) ratio is 28.02, which is higher than the industry’s 21.84. This implies that the stock is overvalued compared to peers. Per the VGM Score that identifies most attractive value, growth and momentum characteristics, Weyerhaeuser has a Score of F, indicating that the stock is most likely to underperform. Stocks to Consider Some better-ranked stocks in the Zacks Construction sector are NVR, Inc. NVR, PulteGroup, Inc. PHM and Taylor Morrison Home Corporation TMHC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . NVR, PulteGroup and Taylor Morrison have a three- to five-year earnings growth rate of 10.7%, 6.8% and 7.6%, respectively. Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyerhaeuser Company (WY) : Free Stock Analysis Report Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Akari (AKTX) Eye Candidate Proves Safety in Early-Stage Study Akari Therapeutics, PlcAKTX announced positive data from the part A of an early-stage study on its lead pipeline candidate, nomacopan, currently being developed for treating moderate to severe atopic keratoconjunctivitis (AKC). The phase I/II TRACKER study evaluated the safety and efficacy of topical nomacopan for addressing the given indication. AKC currently has no approved therapies. Nomacopan is a C5 complement inhibitor that specifically inhibits leukotriene B4 (LTB4) activity. Complement component C5, the target of Nomacopan, is mostly found in the blood. Shares of Akari inched up 2.3% following this news on Wednesday. In fact, the stock has surged 39.5% so far this year, outperforming the industry’s rise of 5.2%. In part A of this study, three patients received nomacopan eye drops twice daily for up to 56 days in addition to the standard of care — cyclosporin. All patients afflicted with AKC had received the maximum standard of care dose for at least three months prior to treatment with nomacopan and continued with the same during the course of the study. The secondary objective of the study was to determine the efficacy as assessed by the standard composite scoring system. Overall, the nomacopan achieved a mean composite clinical efficacy score of 55% for patients receiving treatment for 56 days. The nomacopan eye drop was found to be comfortable and well-tolerated with no serious adverse events reported. It also reduced corneal damage. Following this positive outcome, the independent safety committee has lent its nod for the study to proceed to the next stage of development. The Part B portion of the program has already started recruitment with data read-out expected in the fourth quarter of 2019. Meanwhile, apart from AKC, nomacopan is being evaluated for three other indications, namely bullous pemphigoid (BP), thrombotic microangiopathy (TMA) and paroxysmal nocturnal hemoglobinuria (PNH). A successful approval of Nomacopan for any of this autoimmune disease is critical to Akari’s long-term growth. Zacks Rank & Stocks to Consider Akari currently carries a Zacks Rank #5 (Strong 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 the same for 2020 over the past 60 days. The stock has soared 53.8% 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. The stock has risen 8.1% so far this year. Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAcorda Therapeutics, Inc. (ACOR) : Free Stock Analysis ReportRepligen Corporation (RGEN) : Free Stock Analysis ReportMerus N.V. (MRUS) : Free Stock Analysis ReportAkari Therapeutics PLC (AKTX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Bed Bath & Beyond Down 43% in a Year: Soft Margins to Blame? Bed Bath & Beyond Inc.BBBY loses sheen due to its strained margins trend. In fourth-quarter fiscal 2018, the company witnessed 11th straight quarter of strained margins. Notably, lower merchandise margin coupled with higher coupon and SG&A expenses has been weighing on its margins. Furthermore, management issued a soft view for first-quarter fiscal 2019, which hurt investor sentiments.These factors induced this Zacks Rank #5 (Strong Sell) stock to plunge 42.8% in a year’s time against the industry’s 14.6% rally. Let’s Delve DeepIn the fiscal fourth quarter, gross margin contracted 120 basis points (bps) mainly owing to lower merchandise margin coupled with higher coupon expenses. Notably, rise in coupon expenses was due to increased average coupon amount, partly negated by a fall in the number of redemptions. Lower gross margin along with a 140 bps increase in SG&A expenses, as a percentage of sales, resulted in 500 bps decline in adjusted operating margin during the same period.For fiscal 2019, management anticipates operating margin rate between almost flat and marginally better than fiscal 2018.These apart, Bed Bath & Beyond’s soft comparable store sales (comps) due to lower store transactions is concerning. Comps dipped 1.4% in the fiscal fourth quarter owing to a mid-single-digit decline in sales from stores, somewhat offset by robust sales at the customer-facing digital networks. Soft comps have also hurt the company’s top line in the quarter, which lagged the Zacks Consensus Estimate for the third straight time and fell 11% year over year.For first-quarter fiscal 2019, management expects comps to be down 5-6%. Soft comps projection is mainly due to the shift of the Easter holiday as well as planned shift in advertising from the first quarter to the fourth quarter of fiscal 2019.Consequently, management estimates adjusted earnings of 7-12 cents per share, significantly down from 32 cents earned in the year-ago quarter. Further, Bed Bath & Beyond expects contraction in gross margin but lesser than that in fourth-quarter fiscal 2018. Additionally, SG&A is anticipated to be higher due to fixed costs including technology and occupancy expenses.Bed Bath & Beyond’s Growth EffortsBed Bath & Beyond is trying all means to adapt to the changing retail landscape, wherein the competition has intensified. Per recent updates on its accelerated transformation plan, the company targets reaching mid-and-long-term revenue growth, near-term gross margin expansion, near-term SG&A improvements and sustainable outstanding operational support.Bed Bath & Beyond’s store-rationalization efforts to drive sales are also encouraging. In fourth-quarter fiscal 2018, it opened three stores and shuttered 21 underperforming outlets. Management targets opening 15 and shutting down nearly 40 stores in the current fiscal year. Additionally, the Next Generation Lab stores, where the company is testing various experiences and visual merchandising, are expected to boost customer experience and in turn, boost sales and profitability.Bed Bath & Beyond is also progressing well toward accomplishing its long-term financial targets including solid net earnings per share growth by fiscal 2020. Moreover, the company is striving to reduce declines in operating profit and earnings per share in fiscal 2019.Management noted that fiscal 2018 was a year ahead of its model, and expects fiscal 2019 adjusted earnings of $2.11-$2.20, slightly up from $2.05 earned last year.3 Better-Ranked Retail StocksRegis Corporation RGS outpaced the earnings estimates in the trailing four quarters by an average surprise of 250.7%. The company sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Hibbett Sports, Inc. HIBB has an expected long-term earnings growth rate of 6.5% and a Zacks Rank #1.Tractor Supply Company TSCO, a Zacks Rank #2 (Buy) stock, has an impressive long-term earnings growth rate of 11.4%.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBed Bath & Beyond Inc. (BBBY) : Free Stock Analysis ReportRegis Corporation (RGS) : Free Stock Analysis ReportHibbett Sports, Inc. (HIBB) : Free Stock Analysis ReportTractor Supply Company (TSCO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Prince Harry wrong to claim Fortnite is 'addictive', say creators Epic Games The creators of Fortnite have said Prince Harry was "wrong" to label the hugely popular video game addictive. In April the Duke of Sussex called for the game to be banned , saying it was "created to addict and keep you in front of the computer for as long as possible", likening it to drugs and alcohol. "It shouldn't be allowed," he added. "Where is the benefit in having that game in your household? It's so irresponsible." But at a Commons committee, a representative for Fortnite developer Epic Games said the firm had been surprised by the royal's criticism. "It's really always been our effort and intent to create a fun, fair, flexible, engaging and generous form of interactive entertainment for our audience," said Canon Pence, general counsel for Epic Games. "And so I feel like a statement that suggests that there was some sort of nefarious attempt to extract short-term profit is a real mischaracterisation." When asked by committee chairman Damian Collins whether he believed Harry's comments were wrong, Mr Cannon said the prince was. Representatives for video games giant Electronic Arts (EA) were also questioned at the committee hearing about gaming addiction. In May, the World Health Organisation (WHO) added "gaming disorder" to its International Classification of Diseases, despite opposition from the video game industry. The disorder is described as "a pattern of persistent or recurrent gaming behaviour, which may be online or offline, manifested by impaired control over gaming, increasing priority given to gaming to the extent that gaming takes precedence over other life interests and daily activities and continuation or escalation of gaming despite the occurrence of negative consequences". Fortnite players can finally merge their accounts across consoles to merge skins and V-bucks from one account to another (Epic Games) At Wednesday's commons hearing, EA's UK manager Shaun Campbell said the WHO's classification of gaming disorder as a disease meant it was more complicated than simply labelling it an addiction. Story continues "We want players to take a healthy and balanced approach to playing games, just like anything else," he said. "If you look at Fifa players, they are competitive and some want a career in e-sports so they practise and spend time playing the game. It's about what feels out of balance for an individual."
How Many Agenus Inc. (NASDAQ:AGEN) Shares Do Institutions Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to know who really controls Agenus Inc. (NASDAQ:AGEN), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership. Agenus is a smaller company with a market capitalization of US$396m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about AGEN. See our latest analysis for Agenus Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors own 26% of Agenus. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Agenus's earnings history, below. Of course, the future is what really matters. Our data indicates that hedge funds own 7.1% of Agenus. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Shareholders would probably be interested to learn that insiders own shares in Agenus Inc.. As individuals, the insiders collectively own US$11m worth of the US$396m company. It is good to see some investment by insiders, but it might be worth checkingif those insiders have been buying. The general public, with a 43% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Public companies currently own 22% of AGEN stock. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together. It's always worth thinking about the different groups who own shares in a company. But to understand Agenus better, we need to consider many other factors. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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.
Timing on Fed's rate cut hinges on events in next two weeks: BAML NEW YORK (Reuters) - Several developments in the next couple of weeks are seen as "absolutely critical" to whether the Federal Reserve would begin lowering U.S. interest rates in July or in September, Bank of America Merrill Lynch analysts said. "It will be a function of the data and financial conditions - if we get another weak payroll report, disappointing ISM surveys and a bad outcome from the G20, the Fed will likely be inclined to cut in July," they wrote in a report released on Thursday. "If the data are mixed and markets are content, the Fed will likely continue to 'monitor' and wait until September," they said. (Reporting by Richard Leong; Editing by Chizu Nomiyama)
The Zacks Analyst Blog Highlights: Deere, Las Vegas Sands, Vertex, Tesla and Keurig Dr Pepper For Immediate Release Chicago, IL – June 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Deere DE, Las Vegas Sands LVS, Vertex VRTX, Tesla TSLA and Keurig Dr Pepper KDP. Here are highlights from Wednesday’s Analyst Blog: Top Stock Reports for Deere, Las Vegas Sands and Vertex The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Deere, Las Vegas Sands and Vertex. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can seeall oftoday’s research reports here >>> Deere’s shares have gained +12% in the past year, outperforming the Zacks Farm Equipment industry, which has increased +10.2% over the same period. For fiscal 2019, Deere expects net sales to increase 5% year over year and net income at $3.3 billion. Concerns stemming from the U.S-China trade war and lower commodity prices led to farmers getting cautious about their equipment purchases. However, the recently announced $16 billion aid program for American farmers impacted by the trade war is likely to bolster agricultural equipment sales, which bodes well for Deere. Improving construction markets and the Wirtgen acquisition which has increased Deere's exposure to global transportation infrastructure will benefit results. Additionally, introduction of advanced technologies in its products will aid growth. However, raw material cost inflation, elevated expenses and unfavorable foreign currency impact remain near-term headwinds. Shares ofLas Vegas Sandshave gained +0.6% over the past three months, underperforming the Zacks Gaming industry’s increase of +0.9%. This downside can be primarily attributed to trade was trade war between Beijing and Washington. Increased revenues at casino, rooms and mall drove the company’s top line in first-quarter 2019. It generated solid revenues from Macao operations as well. In the next couple of years, it is likely to spend $2 billion in Macao. To strengthen the resort portfolio, Las Vegas Sands is focusing on expanding the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and the Londoner Macao. Planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are also likely to drive growth. Nevertheless, high debt and competition are worrisome. Estimates for the current year have been revised upward over the past 60 days. Vertex’s shares have outperformed the Zacks Biomedical and Genetics industry year to date (+7.4% vs. +5.2%). The Zacks analyst likes Vertex’s dominance in the CF market. A significant increase in the eligible patient population for its CF drugs is driving sales growth. Vertex’s third CF medicine, Symdeko, in a very short time, became the primary driver of CF revenues. Vertex will file a regulatory application for its VR-445 triple combination CF regimen this year, which is crucial for long-term growth as it has the potential to treat up to 90% of CF patients. The company’s non-CF pipeline, though early stage, looks interesting with treatments being developed for sickle cell disease, thalassemia and pain. However, competitive pressure is rising in the CF market with many other companies developing triple combo CF drugs. Vertex’s dependence on just the CF franchise for growth is a concern. Other noteworthy reports we are featuring today include Tesla and Keurig Dr Pepper. 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 >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. 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 reportLas Vegas Sands Corp. (LVS) : Free Stock Analysis ReportTesla, Inc. (TSLA) : Free Stock Analysis ReportDeere & Company (DE) : Free Stock Analysis ReportVertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis ReportKeurig Dr Pepper, Inc (KDP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
The Apple 5K iMac is down to under £1200 in the John Lewis clearance sale TL;DR:The stylish 27-inchApple iMacis down to under £1200 in the John Lewis clearance sale, saving you £250. John Lewis has launched its clearance sale, with everything from electricals to furniture available at low prices. You could head over to the sale now, and scan the online store for the best deals, or you could sit back while we do the hard work for you. There are loads of great deals to consider, but when it comes to any sale, Apple always takes over. You can save £250 on a 27-inch 5KApple iMac, down to just£1199 in the sale. This comes with a two-year guarantee, as well as free delivery.Read more... More aboutApple,Imac,Mashable Shopping,Shopping Uk, andUk Deals
4 Consulting Services Stocks Worth Adding to Your Portfolio The Consulting Services industry has outpaced the S&P 500 Index so far this year. The industry, which is placed in the top 14% of more than the 250 Zacks industries, has rallied 25.5% in the said time frame, comfortably surpassing the index’s rise of 15.2%. Economic strength has kept manufacturing and non-manufacturing activities in good shape, thus keeping the demand environment for consulting services strong. The Purchasing Managers' Index (PMI) measured by Institute of Supply Management (ISM) touched 52.1% in May, indicating better economic activity in the manufacturing sector. This marks the 33rd month of consecutive manufacturing growth. Also, May was the 112th month of consecutive growth in non-manufacturing activities with ISM-measured Non-Manufacturing Index (NMI) touching 56.9%. Global players are increasingly expanding in areas beyond the United States and Europe to other industrialized regions and growing economies. They have increased moves to take advantage of trends such as AI, analytics, cybersecurity and digital trends. Acquisitions and technology investments are rampant. For instance, Accenture ACN acquired Karmarama to fasten implementation of end-to-end customer experiences through customer-focused data analytics and user experience design. Capgemini has combined its consulting brand with digital and creative businesses. IBM, Deloitte, BCG and PricewaterhouseCoopers have also incorporated digital design. 4 Consulting Firms to Invest In The industry comprises companies that offer economic, financial, business, information technology and management consulting, With the help of the Zacks Stock Screener, we have zeroed in on four promising stocks from the consulting services industry, which have a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks also have a solid expected earnings growth rate for 2019 and have witnessed upward earnings estimate revisions in the past 60 days. You can seethe complete list of today’s Zacks #1 Rank stocks here. Navigant Consulting, Inc.NCI is a provider of professional services to corporate executives and senior management, corporate counsel, law firms, corporate boards, special committees and governmental agencies. It also sports a Zacks Rank #1 and has a market capitalization of $917.2 million. The company’s expected earnings growth rate for 2019 is more than 95.7%. The Zacks Consensus Estimate for 2019 has improved 3.4% in the past 60 days. Navigant Consulting, Inc. Price, Consensus and EPS Surprise Navigant Consulting, Inc. price-consensus-eps-surprise-chart \| Navigant Consulting, Inc. Quote FTI Consulting, Inc.FCN is a provider of business advisory services. It also sports a Zacks Rank #1 and has a market capitalization of $3.2 billion. The company’s expected earnings growth rate for 2019 is 6%. The Zacks Consensus Estimate for 2019 has improved 13.1% in the past 60 days. FTI Consulting, Inc. Price, Consensus and EPS Surprise FTI Consulting, Inc. price-consensus-eps-surprise-chart \| FTI Consulting, Inc. Quote Exponent, Inc.EXPO operates as a science and engineering consulting company globally. Currently, it sports a Zacks Rank #2 and has a market capitalization of $3 billion. The company’s expected earnings growth rate for 2019 is 13.6%. The Zacks Consensus Estimate for 2019 has improved 2.2% in the past 60 days. Exponent, Inc. Price, Consensus and EPS Surprise Exponent, Inc. price-consensus-eps-surprise-chart \| Exponent, Inc. Quote Huron Consulting Group Inc.HURN is a professional services company, which provides advisory, technology and analytic solutions. It carries a Zacks Rank #2 and has a market capitalization of $1.2 billion. The company’s expected earnings growth rate for 2019 is 14.4%. The Zacks Consensus Estimate for 2019 has improved 0.4% in the past 60 days. Huron Consulting Group Inc. Price, Consensus and EPS Surprise Huron Consulting Group Inc. price-consensus-eps-surprise-chart \| Huron Consulting Group Inc. Quote Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFTI Consulting, Inc. (FCN) : Free Stock Analysis ReportNavigant Consulting, Inc. (NCI) : Free Stock Analysis ReportExponent, Inc. (EXPO) : Free Stock Analysis ReportHuron Consulting Group Inc. (HURN) : Free Stock Analysis ReportAccenture PLC (ACN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Is Atlantic Power (AT) a Good Stock 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 putAtlantic Power CorporationAT 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 RatioA 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, Atlantic Power has a trailing twelve months PE ratio of 14.94, 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, Atlantic Power’s current PE level puts it above its midpoint over the past five years. Further, the stock’s PE also compares favorably with the industry’s trailing twelve months PE ratio, which stands at 19.63. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers. We should also point out that Atlantic Power has a forward PE ratio (price relative to this year’s earnings) of just 9.83, so it is fair to say that a slightly more value-oriented path may be ahead for Atlantic Power stock in the near term too.P/S RatioAnother 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, Atlantic Power 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 slightly below the highs for this stock in particular over the past few years. AT is actually in the higher zone of its trading range in the time period per the P/S metric, which suggests that the company’s stock price has already appreciated to some degree, relative to its sales.Broad Value OutlookIn aggregate, Atlantic Power currently has a Zacks Value Style Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Atlantic Power a solid choice for value investors, and some of its other key metrics make this pretty clear too.For example, its P/CF ratio (another great indicator of value) comes in at 2.22, which is far better than the industry average of 8.72. Clearly, AT is a solid choice on the value front from multiple angles.What About the Stock Overall?Though Atlantic Power 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 grade of C and a Momentum score of D. This gives AT 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 somewhat encouraging. The current quarter as well as the full year has seen one estimate go higher in the past sixty days compared to none lower.This has had a significant impact on the consensus estimate as the current quarter consensus estimate has risen by almost 100% in the past two months, and the full year estimate has increased more than 100%. You can see the consensus estimate trend and recent price action for the stock in the chart below: Atlantic Power Corporation Price and Consensus Atlantic Power Corporation price-consensus-chart \| Atlantic Power Corporation 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 LineAtlantic Power is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Its strong Zacks Rank also indicates robust growth potential in the near future. However, the company’s prospects might be constrained due to adverse broader factors, as it has a sluggish industry rank (Bottom 38% out of more than 250 industries). In fact, over the past two years, the industry has clearly underperformed the broader market, as you can see below: So, value investors might want to wait for the broader factors to turn around in this name first, but once that happens, this stock could be a compelling pick.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAtlantic Power Corporation (AT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Kellogg (K) Gains From Buyouts, Costs and Soft View Hurt Kellogg CompanyK has been benefiting from the consolidation of Multipro, improved consumption trends, gains from price/mix and growth across revitalized brands. Further, the company is on track with brand growth initiatives and is boosting presence in emerging markets.However, the company is reeling under pressure due to rising input costs and sluggishness in North American business unit. This, along with adverse currency impacts, and higher interests and tax rate is weighing on the company’s bottom line. Let’s take a closer look at both sides of the story. Factors Driving Kellogg’s PerformanceKellogg boasts solid product portfolio and brand identity in both cereals and snacks. Its portfolio consists of strong brands such as Pringles, RXBAR, Bear Naked, Cheez-It, Rice Krispies Treats among many others. Kellogg is also dedicated toward augmenting its portfolio through adding more products under existing brands, innovation and marketing initiatives.The company currently spends a high percentage of profits on brand building. In this respect, it invests in efforts such as digital media, consumer promotions, traditional advertising and augmenting in-store capabilities.Along with these, the company is gaining from buyouts, investments in core consumer divisions and building its business in emerging markets of Asia, the Middle East and the African (AMEA) regions. Markedly, the Pringles acquisition has opened up growth opportunities in these fast-growing nations. The company is undertaking efforts to expand business in the emerging markets of Russia and Central Europe. Further, it has been benefiting from the consolidation of Multipro. We note that during the second, third and fourth quarter of 2018, Kellogg’s revenue growth was primarily driven by the takeover of RXBAR and consolidation of Multipro.The company is also on track with productivity saving initiatives. It is particularly striving toward reducing overhead costs pertaining to Direct-Store Delivery in U.S. Snacks. We note that the company successfully completed the Project K program. Savings from this program are being invested in brand-building initiatives, improving logistics, sales capabilities and innovation. Further, it is on track with deployment of growth strategy, and is accordingly undertaking efforts to restructure portfolio.Hurdles in Kellogg’s PathKellogg’s is struggling with rising input costs. During the first quarter of 2019, high input costs weighed on the company’s gross margins. Adjusted operating profit also fell almost 7% year over year due to increased distribution and input costs. The company is likely to continue witnessing pressure stemming from high costs.Additionally, Kellogg’s North American business unit has been sluggish for a while now. During the first quarter, the region reported declines across categories like snacks, cereals and frozen foods. The cereal category was mainly hurt by shipment timing and transition in packing across certain brands. Lower demand for cereals due to competitive pressure from other breakfast alternatives has also been hurting category growth. The snacking unit during the first quarter faced pressure from write-offs related to product recalls under the RXBAR banner.The company trimmed the guidance for 2019 after taking into consideration the impact of divestiture of certain snacks, cookies, crusts and ice cream businesses. For 2019, sales are expected to grow 1-2% at cc compared with the earlier view of nearly 3-4% growth. Further, adjusted operating profit (at cc), which was earlier anticipated to remain roughly flat year over year, is now expected to decline 4-5%. Kellogg envisions adjusted earnings to drop 10-11% (at cc).In the past one year, shares of this Battle Creek, MI-based company have decreased 17.7%, underperforming the industry’s decline of 5.6%.Nevertheless, we expect aforementioned tailwinds to offset these hurdles and help this Zacks Rank #3 (Hold) company to win back investors’ confidence.Key PicksCampbell Soup Company CPB has a long-term earnings growth rate of 5% and carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.General Mills, Inc. GIS has a long-term earnings growth rate of 7% and a Zacks Rank #2.The Chefs' Warehouse, Inc. CHEF has a long-term earnings growth rate of 15% and a Zacks Rank #2.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportKellogg Company (K) : Free Stock Analysis ReportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportCampbell Soup Company (CPB) : Free Stock Analysis ReportThe Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
The Zacks Analyst Blog Highlights: PulteGroup, NVR, BMC Stock, U.S. Concrete and Builders FirstSource For Immediate Release Chicago, IL – June 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PulteGroup Inc. PHM, NVR, Inc. NVR, BMC Stock Holdings, Inc. BMCH, U.S. Concrete, Inc. USCR and Builders FirstSource, Inc. BLDR. Here are highlights from Wednesday’s Analyst Blog: 5 Stocks to Gain from 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. Story continues 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. 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. 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. 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 see the complete list of today’s Zacks #1 Rank stocks here . U.S. Concrete, Inc. 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. 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 >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. 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 BMC Stock Holdings, Inc. (BMCH) : Free Stock Analysis Report Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report U S Concrete, Inc. (USCR) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report To read this article on Zacks.com click here.
Company News For Jun 20, 2019 • Shares of Viacom Inc. VIAB gained 2.1% following news that media giant CBS Corp. CBS plans to bid for the company • United States Steel Corp.’s X shares climbed 4.1% after it decided to close two blast furnaces due to lack of steel demand on the back of current trade conflict • Adobe Inc. ADBE shares surged 5.2% after the company posted second-quarter fiscal 2019 adjusted earnings per share of $1.83, beating the Zacks Consensus Estimate of $1.78 • Shares of Allergan plc AGN soared 6.2% after the company declared positive phase 3b results for its constipation drug jointly developed with Ironwood Pharmaceuticals Inc. IRWD 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 reportCBS Corporation (CBS) : Free Stock Analysis ReportViacom Inc. (VIAB) : Free Stock Analysis ReportAllergan plc (AGN) : Free Stock Analysis ReportAdobe Systems Incorporated (ADBE) : Free Stock Analysis ReportIronwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis ReportUnited States Steel Corporation (X) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Is Now An Opportune Moment To Examine Encore Wire Corporation (NASDAQ:WIRE)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Encore Wire Corporation (NASDAQ:WIRE), which is in the electrical business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $61.17 at one point, and dropping to the lows of $49.91. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Encore Wire's current trading price of $54.68 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Encore Wire’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Encore Wire According to my valuation model, Encore Wire seems to be fairly priced at around 13.59% above my intrinsic value, which means if you buy Encore Wire today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $48.14, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Encore Wire’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Encore Wire, it is expected to deliver a negative earnings growth of -5.7%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term. Are you a shareholder?WIRE seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed. Are you a potential investor?If you’ve been keeping an eye on WIRE for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on WIRE should the price fluctuate below its true value. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Encore Wire. You can find everything you need to know about Encore Wire inthe latest infographic research report. If you are no longer interested in Encore Wire, 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.
The Zacks Analyst Blog Highlights: Incyte, Blueprint Medicines, Verastem and uniQure For Immediate Release Chicago, IL – June 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Incyte INCY, Blueprint Medicines BPMC, Verastem VSTM and uniQure N.V. QURE. Here are highlights from Wednesday’s Analyst Blog: Cancer/Gene Therapy Biotechs in Focus Post-Pfizer/Array Deal Shares of many biotech companies have rallied following the announcement of the Pfizer – Array BioPharma deal. Announced earlier this week, the deal has an enterprise value of approximately $11.4 billion. The deal is likely to strengthen Pfizer’s oncology portfolio as Array BioPharma is focused on developing targeted small molecule drugs for treating cancer and other high-burden diseases. Its first commercial therapy, Braftovi plus Mektovi, approved as a treatment for BRAF-mutant melanoma, was approved July last year and has shown encouraging uptake. Cancer has become the area of focus of several pharmaceutical companies due to unmet needs and lucrative market opportunities. In a move to bolster their oncology pipelines, several pharmaceuticals companies may acquire or collaborate to gain rights to prospective cancer treatments. Major drug/biotech players struggling with organic growth need an infusion of new growth drivers into their pipeline/product portfolios — either from internal development or from the purchase of assets. Amgen, Biogen and Gilead are the forerunners with huge cash pile. These companies are also looking to expand their pipeline to continue on growth path. As expected, there has been an accelerated pace of merger and acquisitions (M&A) activity in pharma space this year, especially in cancer. We have already seen some major deals this year. In January, Bristol-Myers offered to buy Celgene for $74 billion, followed by Lilly’s acquisition of Loxo Oncology for $8 billion in February. Apart from cancer-focused stocks, pharmaceuticals companies are also targeting biotechs with transformative, next-generation gene therapies in their pipeline. Gene therapies targeting rare diseases are expected to achieve better efficacy. Moreover, rare diseases with high unmet need can also lead to high asking price for these therapies. The performance of the Zacks Biomedical and Genetics industry has not been impressive as a whole. However, the industry has gained 4% so far this year, after falling more than 25% in 2018, driven by increased M&A activity this year, pipeline successes and frequent new drug approvals. Moreover, certain stocks in the sector with innovative pipelines or commercial drugs with significant sales potential have seen their share price rise. Some of these companies have already been acquired. We have chosen four companies among the stocks that surged following the Pfizer-Array BioPharma deal and have an encouraging cancer/gene therapy pipeline or portfolio of drugs, making them potential acquisition targets. Incyte Incyte’s strong oncology portfolio makes it a lucrative target for companies like Gilead, Amgen and Bristol Myers. The market cap of Incyte is around $14 billion. The primary reason behind Incyte being a strong buyout target is its key marketed product, Jakafi, a JAK inhibitor. It is the first and the only product to be approved for polycythemia vera (PV) and myelofibrosis (“MF”) — two rare blood cancers. Jakafi is seeing strong sales performance driven by strong patient demand for both indications. In order to expand the patient population and increase commercial potential of the drug, the company is working on expanding its label further. Another asset of interest to investors is Olumiant, also a JAK inhibitor, marketed in the EU and the United States (only the lower 2 mg dose) for rheumatoid arthritis (RA). Meanwhile, Incyte’s pipeline boasts interesting targeted therapies like pemigatinib, itacitinib and capmatinib among others. Incyte currently carries a Zacks Rank #3 (Hold). The stock is up 32.5% so far this year and up 8.5% so far this week. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Blueprint Medicines Blueprint Medicines’ lead pipeline candidate, avapritinib, is being developed for various oncology indications. The candidate has been successful in three pivotal studies. Earlier this month, Blueprint Medicines announced encouraging data from the registration-enabling NAVIGATOR study, which evaluated avapritinib for treating patients with PDGFRA Exon 18 mutant gastrointestinal stromal tumors (“GIST”). The company is planning to file a new drug application later this month, seeking approval for avapritinib as a treatment for the aforementioned indication. The company is also developing avapritinib in combination with Pfizer’s Sutent and Bayer’s Stivarga for second-line and third or fourth-line GIST, respectively, in phase III studies. The company has other pipeline candidates – BLU-667 and BLU-554 – which are being developed for carcinoma and other cancer indications. The company intends to submit an NDA for BLU-667 for the NSCLC indication in the first quarter of 2020 while the NDA for the MTC indication is expected to be filed during the first half of 2020. So far this year, shares of the company are up 81.4% and up 7.8% so far this week. Blueprint Medicines currently carries Zacks Rank #3. Verastem Verastem is a small biotech company, which focuses on developing treatments targeting oncology indications. The company has one commercial drug, Copiktra, and an oncology candidate in its pipeline. Copiktra was approved for relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma and refractory follicular lymphoma in September 2018. The drug targets a patient population with significant unmet need. The company is also developing the drug to support its label expansion in non-Hodgkin lymphoma, T-cell lymphoma, lung cancer, mesothelioma, ovarian cancer and pancreatic cancer. Data from studies have shown promising efficacy in patients. The company’s pipeline candidate defactinib is an oral small molecule kinase inhibitor, which is being developed for ovarian cancer, pancreatic cancer, mesothelioma, NSCLC, and other solid tumors. The candidate also enjoys orphan drug designation in ovarian cancer and mesothelioma. Meanwhile, shares of Verastem have been on a downtrend in 2019, which makes the price attractive for potential bidders. The stock was however up 30% so far this week for its buyout potential. The company currently carries a Zacks Rank #3. uniQure N.V. The company is a promising player in the gene therapy space. It is engaged in creating a pipeline of innovative gene therapies that have been developed both internally and through its collaboration, focused on cardiovascular diseases, with Bristol Myers-Squibb. The company’s lead candidate AMT-061, an experimental AAV5-based gene therapy incorporating the FIX-Padua variant, is being evaluated in the phase III HOPE-B pivotal study for the treatment of patients with severe and moderately severe hemophilia B. In January 2019, the company received clearance from the FDA to initiate clinical study for AMT-130 for the treatment of Huntington’s disease. uniQure’s stock has surged 170.6% so far this year and up 7.5% so far this week. The company currently carries a Zacks Rank #3. 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 >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visithttps://www.zacks.com/performancefor information about the performance numbers displayed in this press release. 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 reportVerastem, Inc. (VSTM) : Free Stock Analysis ReportIncyte Corporation (INCY) : Free Stock Analysis ReportBlueprint Medicines Corporation (BPMC) : Free Stock Analysis ReportuniQure N.V. (QURE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Oracle Beat Takes Stock to Highs Yet Analysts Stay Skeptical (Bloomberg) -- Oracle Corp. shares rose to record levels on Thursday after the company reported better-than-expected revenue and gave an outlook that pointed to ongoing momentum. While the results were seen as a sign of progress for a company that has lagged the overall technology sector for years, analysts weren’t convinced they represented an inflection point. UBS questioned whether the growth in the quarter was sustainable, while Morgan Stanley said the debate was on whether the quarter represented a “bounce or something more durable.” The stock gained as much as 7.1% to hit all-time intraday highs. Here’s what analysts are saying about the results: Morgan Stanley, Keith Weiss The print “likely reopens the debate on Oracle’s growth potential,” but the firm questions whether the results represent a “bounce or something more durable.” “While the Q4 numbers represent a poignant data point in favor of significant growth potential within Oracle’s large database installed base, the preponderance of evidence still suggests a muted top line growth outlook ahead.” Affirmed equal-weight rating and $59 price target, although “our interest is piqued.” Jefferies, John DiFucci “We don’t want to get ahead of ourselves,” but “we’ve been waiting for signs of what we believe will be a multi-year product cycle on the back of database options.” It may take another 18 months “before we start to see something as relevant as this start to boost total revenue by mid-single digits, which in turn should drive double-digit cash flow growth” for years. Buy rating, price target raised to $66 from $61. UBS, Jennifer Swanson Lowe After this quarter, the debate is “likely to be whether demand for autonomous database can sustain that healthy license revenue growth” in fiscal 2020. The first-quarter outlook suggested “we may not be fully out of the woods yet, but management was optimistic that growth in star businesses was starting to offset declines in legacy businesses.” Neutral rating, price target raised to $57 from $54. RBC Capital Markets, Matthew Hedberg “Encouraged” by the results, but will “look for signs that Autonomous DB and Cloud at Customer are moving beyond the trial phase at a meaningful number of customers to become more constructive.” Sector-perform rating, price target raised to $59 from $57. Deutsche Bank, Karl Keirstead Results were “better than feared,” but “we’d caution that a good portion of the license revs upside was due to one-time 606 accounting issues.” Notes management didn’t cite any demand softness on its conference call. Hold rating, target raised to $52 from $48. What Bloomberg Intelligence Says: “Oracle’s substantial cash generation enables its large stock repurchases. Yet if management continues to execute buybacks at historically high current rates, underperformance may emerge relative to peers.”-- Analyst Conor Cuddy-- Click here for the research (Updates stock and chart to market open, adds BI commentary.) To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm, Will Daley For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
If You Had Bought Antioquia Gold (CVE:AGD) Stock Three Years Ago, You'd Be Sitting On A 72% Loss, Today Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It's not possible to invest over long periods without making some bad investments. But really bad investments should be rare. So consider, for a moment, the misfortune ofAntioquia Gold Inc.(CVE:AGD) investors who have held the stock for three years as it declined a whopping 72%. That'd be enough to cause even the strongest minds some disquiet. And the ride hasn't got any smoother in recent times over the last year, with the price 29% lower in that time. View our latest analysis for Antioquia Gold Antioquia Gold recorded just CA$1,484,473 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Antioquia Gold will find or develop a valuable new mine before too long. As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. 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). Some Antioquia Gold investors have already had a taste of the bitterness stocks like this can leave in the mouth. Antioquia Gold had liabilities exceeding cash by CA$104,749,998 when it last reported in March 2019, according to our data. That puts it in the highest risk category, according to our analysis. But since the share price has dived -35% per year, over 3 years, it looks like some investors think it's time to abandon ship, so to speak. You can click on the image below to see (in greater detail) how Antioquia Gold's cash levels have changed over time. In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. What if insiders are ditching the stock hand over fist? It would bother me, that's for sure. It costs nothing but a moment of your time tosee if we are picking up on any insider selling. While the broader market gained around 1.0% in the last year, Antioquia Gold shareholders lost 29%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3.6% over the last half decade. 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. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow. We will like Antioquia Gold better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. 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.
The Zacks Analyst Blog Highlights: Arconic, Roper Technologies, American International, Martin Marietta Materials and PulteGroup For Immediate Release Chicago, IL – June 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Arconic Inc. ARNC, Roper Technologies, Inc. ROP, American International Group Inc. AIG, Martin Marietta Materials, Inc. MLM and PulteGroup Inc. PHM. Here are highlights from Wednesday’s Analyst Blog: S&P 500 Back Near Record-Highs: 5 top-Notch Stocks to Bet On The S&P 500 Index is within a percent's proximity to reaching April's record high mark. The index is gaining ground from a number of positive events that are expected to buoy the market sentiments. These include a possible trade negotiation between the United States and China, prompted by a tweet from President Donald Trump. Given the projected retardation in the global economy, it is highly crucial for the trade war to arrive at a peaceful consensus. Moreover, a positive commentary on the economic stimulus by Mario Draghi, president, European Central Bank also raised investors’ hopes. Further, a buzz of optimism surrounding a potential cut in the Fed’s benchmark interest rate has driven the index. S&P 500 Rebounds in June We note that the index achieved the largest gain in 30 years during the first four months of this year. However, the index nose-dived in May as a sudden setback of the U.S.-China trade bargains and numerous weak economic reports of April and May deflated investors' faith to a great degree. Nonetheless, the index has recovered some lost sheen in the last couple of weeks, courtesy of the positive development in terms of the U.S.-China trade tussle. Additionally, attacks on oil tankers in the Gulf, Huawei ban and President Trump’s skirmishes with Mexico, Iran and Germany over business issues couldn’t damage investor confidence. Notably, the S&P 500 Index inched up 0.97% on Jun 18 to close at 2,917.75, nearing its all-time closing high of 2,945.83, set on Apr 30. This rally in the index was led by the trade-sensitive industrials, which rose 1.92% and the technology stocks that were up 2.08%. In the technology space, semiconductor stocks — which are highly dependent on China — were the largest percentage gainers, with iShares PHLX Semiconductor ETF (SOXX) growing nearly 4.9%. Among the biggest gainers, Xilinx, Micron, NVIDIA and Western Digital increased 6.94%, 5.74%, 5.41% and 5.07%, respectively. Key Picks Here we pick a few solid stocks from the S&P 500, which sport a Zacks Rank #1 (Strong Buy) and have also outperformed the index in the year-to-date period. You can seethe complete list of today’s Zacks #1 Rank stocks here. New York-basedArconic Inc.is a global leader in multi-material, precision engineered products and solutions for a variety of industries. The Zacks Consensus Estimate of $1.8 per share for the current year has been revised 2.9% upward over the last 30 days. The stock has surged 39.5% year to date. Headquartered in Sarasota, FL,Roper Technologies, Inc.designs, manufactures and distributes medical and scientific imaging products and software; radio frequency (RF) products, services and application software; industrial technology products and energy systems plus control products and solutions. The Zacks Consensus Estimate for 2019 earnings of $12.92 has been raised 1.8% in the past 30 days. The stock has improved 37.2% year to date. Based in New York,American International Group Inc.is engaged in providing insurance and financial services to commercial, institutional and individual customers. The Zacks Consensus Estimate for 2019 earnings of $4.96 has been stable in the past 30 days. The stock has risen 35.3% year to date. Domiciled in Raleigh, NC,Martin Marietta Materials, Inc.produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. The Zacks Consensus Estimate of $9.26 for 2019 earnings has moved 0.22% north over the past 30 days. The stock has gained 28.8% year to date. Headquartered in Atlanta, GA,PulteGroup Inc. deals in the homebuilding and financial services businesses, primarily in the United States. The Zacks Consensus Estimate for 2019 earnings of $3.4 has been reaffirmed in the past 30 days. The stock has climbed 26.6% year to date. 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 >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visithttps://www.zacks.com/performancefor information about the performance numbers displayed in this press release. 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 reportMartin Marietta Materials, Inc. (MLM) : Free Stock Analysis ReportPulteGroup, Inc. (PHM) : Free Stock Analysis ReportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportArconic Inc. (ARNC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Pick up this RENPHO smart scale for under £23 on Amazon TL;DR:The analyticalRENPHO smart scaleis down by 36 percent to just £22.99 on Amazon. Smart scales can provide a wide variety of different measurements concerning your body's overall health. TheRENPHO smart scaleis equipped with four high-precision sensors, ensuring you can get a quick and accurate picture of your body composition. Smart scales are all about better understanding your body and your health. The RENPHO smart scale provides 13 different measurements of your body's health, including body weight, BMI, body fat, skeletal muscle, muscle mass, body age, and visceral fat. This device also syncs with your wearable tech, and even supports multiple users and devices.Read more... More aboutSmart Scale,Mashable Shopping,Shopping Solo,Shopping Uk, andUk Deals
The Zacks Analyst Blog Highlights: Amgen, Alexion, Regeneron, Allergan and Savara For Immediate Release Chicago, IL – June 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Amgen AMGN, Alexion ALXN, Regeneron REGN, Allergan AGN and Savara SVRA. Here are highlights from Wednesday’s Analyst Blog: Biotech Stock Roundup: AMGN, ALXN, REGN and More It was a busy week for the biotech sector. The FDA approved Amgen’s biosimilar for a leading breast cancer drug, Herceptin. Meanwhile, Alexion’s Ultomiris was approved in Japan. Regeneron presented positive data on an investigational bispecific monoclonal antibody for lymphoma. Recap of the Week’s Top Stories: Amgen Gets Approval for Biosimilar Kanjinti: Amgen and its biosimilar collaboration partner, Allergan announced that the FDA has approved Kanjinti (trastuzumab-anns), their biosimilar of Roche’s blockbuster breast cancer drug, Herceptin. The biosimilar was approved for all approved indications of the reference drug, Herceptin — HER2 overexpressing adjuvant and metastatic breast cancer, and HER2 overexpressing metastatic gastric cancer or gastroesophageal junction adenocarcinoma. Amgen has a collaboration agreement with Allergan for the worldwide development and commercialization of four oncology antibody biosimilars. Kanjinti is the second drug to receive FDA approval under this agreement. In addition, Amgen announced five-year overall survival (OS) analysis from the single-arm, phase II BLAST study on leukemia drug, BLINCYTO. The study evaluated Blincyto in patients with minimal residual disease (MRD)-positive acute lymphoblastic leukemia (ALL). Results from the study showed a median OS of 36.5 months for Blincyto-treated patients with a median follow-up of 59.8 months. More than half of the patients who achieved a complete MRD response following the first cycle of Blincyto treatment were alive at five years. Amgen currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Regeneron Presents Positive Data on Lymphoma Candidate: Regeneron announced positive early-stage data for pipeline candidate, REGN1979. The data will be presented at the 24th Congress of the European Hematology Association (EHA). REGN1979, an investigational bispecific monoclonal antibody, is being evaluated in patients with relapsed or refractory (R/R) B-cell non-Hodgkin lymphoma (B-NHL). The data also includes patients with R/R diffuse large B-cell lymphoma (DLBCL), who had progressed after CAR-T therapy. The primary objective was to assess the safety, tolerability and dose-limiting toxicities of the candidate. High response rates observed with REGN1979 in both relapsed or refractory diffuse large B-cell lymphoma and follicular lymphoma were encouraging. Moreover, two patients, who failed CAR-T therapy and received REGN1979 80 mg, achieved complete response. The R/R follicular lymphoma (FL) grades 1 to 3a treatment arm showed an overall response rate of 93% (13 of 14 patients) in patients, who received doses of 5 mg or more, with a complete response rate of 71% (10 of 14 patients). In DLBCL patients treated with REGN1979 80 mg to 160 mg, an overall response rate of 57% was observed. In R/R DLBCL patients, whose disease progressed after CD-19 directed CAR-T therapy, two out of four achieved a complete response. The company will initiate a phase II program later in the month for a potential registration, and proactively evaluate active REGN1979 doses in indolent and aggressive non-Hodgkin lymphoma. Alexion’s Ultomiris Gets Approval in Japan: Alexion announced that Japan’s Ministry of Health, Labour and Welfare (MHLW) has approved Ultomiris (ravulizumab), the first and only long-acting C5 complement inhibitor administered every eight weeks, for the treatment of adult patients with paroxysmal nocturnal hemoglobinuria (PNH). The drug is already approved in the United States. The approval was based on comprehensive results from two phase III studies, which included 441 patients who had either never been treated with a complement inhibitor before, or who had been stable on Alexion’s lead drug Soliris. Results showed that the efficacy of Ultomiris administered every eight weeks was non-inferior to the efficacy of SOLIRIS administered every two weeks on all 11 endpoints. Earlier, Alexion announced positive, long-term data from the extension of the phase III study on Ultomiris and Soliris in complement inhibitor-naïve, adult patients with PNH. The data demonstrated that Ultomiris administered every eight weeks provided consistent efficacy and safety through 52 weeks, with no cases of breakthrough hemolysis associated with incomplete C5 complement inhibition. The data was presented at the Annual Congress of the European Hematology Association. Ultomirus was studied in the largest-ever phase III program in PNH. Savara Crashes on Late-Stage Study Failure: Savara crashed after it announced that its lead pipeline candidate, Molgradex, failed to meet the primary endpoint in the pivotal phase III study — IMPALA — evaluating it in autoimmune alveolar pulmonary proteinosis (aPAP), a rare lung disorder. The IMPALA study evaluated Molgradex, an inhaled formulation of recombinant human granulocyte-macrophage colony-stimulating factor (GM-CSF), in patients with aPAP compared to placebo for improvement in alveolar-arterial oxygen gradient (A-aDO2) as its primary endpoint. The study evaluated two dose administrations — once daily continuous administration of and once daily in seven-day intermittent cycles — of 300 µg Molgradex over 24 weeks. Data from the study demonstrated average improvement of 12.1 mmHg in patients who were administered Molgradex once daily continuously compared with an improvement of 8.8 mmHg for placebo. However, the treatment difference of 4.6 mmHg failed to meet the primary endpoint. Molgradex also failed to achieve improvement of statistical significance in two key secondary endpoints – the six-minute walk distance (6MWD) and requirement for whole lung lavage (“WLL”). Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. 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 reportAllergan plc (AGN) : Free Stock Analysis ReportRegeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis ReportAlexion Pharmaceuticals, Inc. (ALXN) : Free Stock Analysis ReportAmgen Inc. (AMGN) : Free Stock Analysis ReportMast Therapeutics, Inc. (SVRA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Is Wajax Corporation (TSE:WJX) A Financially Sound Company? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Wajax Corporation (TSE:WJX) is a small-cap stock with a market capitalization of CA$317m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Understanding the company's financial health becomes vital, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, this is just a partial view of the stock, and I suggest youdig deeper yourself into WJX here. Over the past year, WJX has ramped up its debt from CA$170m to CA$370m , which includes long-term debt. With this rise in debt, the current cash and short-term investment levels stands at CA$5.8m to keep the business going. Its negative operating cash flow means calculating cash-to-debt wouldn't be useful. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can examine some of WJX’soperating efficiency ratios such as ROA here. With current liabilities at CA$294m, it seems that the business has been able to meet these commitments with a current assets level of CA$679m, leading to a 2.31x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Trade Distributors companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments. With debt reaching 93% of equity, WJX may be thought of as relatively highly levered. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In WJX's case, the ratio of 5.56x suggests that interest is appropriately covered, which means that lenders may be willing to lend out more funding as WJX’s high interest coverage is seen as responsible and safe practice. WJX’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. Keep in mind I haven't considered other factors such as how WJX has been performing in the past. I suggest you continue to research Wajax to get a better picture of the small-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for WJX’s future growth? Take a look at ourfree research report of analyst consensusfor WJX’s outlook. 2. Valuation: What is WJX 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 WJX is currently mispriced by the market. 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. 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.
Why Should You Add American International to Your Portfolio? American International Group, Inc.AIG is well-poised for progress on the back of its inorganic growth profile and cost-saving measures.The stock sports a Zacks Rank #1 (Strong Buy) and a favorable Value Score of B. Our research shows that stocks with an impressive Value Score of A or B when combined with a top Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities in the value investment space.Shares of this company have dipped 1.2% in a year’s time against its industry’s rise of 3.3%. AIG has been concertedly focusing on streamlining its business over the past few years, which in turn, enabled it to effectively allocate its capital and leverage its operating performance. Since 2008, the company has executed over 50 asset sales and divestitures, generating proceeds in excess of $100 billion. The transactions were made to raise funds for repayment of the bailout amount to the U.S. government and simplifying the company’s structure, which had huge unrelated operations to create substantial synergistic benefits.Apart from divestures, the company acquired a number of entities to boost its capabilities. Certain buyouts made over the last few quarters have helped it strengthen position in Life & Retirement businesses and General Insurance business.AIG has forged a strategic alliance with The Carlyle Group to build DSA Re into a standalone provider of reinsurance, claims handling and run-off management solutions for long-dated, complex risks to the global insurance industry. This transaction is expected to help the company manage its legacy liabilities, honor its policy obligations and maximize its financial flexibility, thus further allowing it to free up capital and participate in the flourish of its business.The company’s cost-containment measures are also noteworthy. It was able to bring down expenses in 2016, 2017 and 2018 on the back of lower headcount, certain divestments and freezing of pension plans. We expect these measures to boost its operating margins going forward.The Zacks Consensus Estimate for current-year earnings per share is pegged at $4.96, indicating a skyrocketing increase of 323.9% on 3.6% higher revenues of $49.25 billion from the year-ago reported figures.For 2020, the Zacks Consensus Estimate for earnings per share stands at $5.09, up 2.7% on $48.67 billion revenues from the prior-year reported number.Other Key PicksInvestors interested in the same space might also take a look at some other top-ranked stocks like James River Group Holdings, Ltd. JRVR, MGIC Investment Corporation MTG and Kemper Corporation KMPR.James River Group provides specialty insurance and reinsurance services in the United States. It delivered average four-quarter positive surprise of 4.7% and a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. MGIC Investment Corporation provides private mortgage insurance, other mortgage credit risk management solutions and ancillary services in the United States. It came up with average four-quarter beat of 23.4% and has a Zacks Rank #1.Kemper Corporation offers property and casualty, and life and health insurance to individuals and businesses in the United States. The company has a Zacks Rank of 2 and managed to pull off average four-quarter beat of 12.1%. Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportKemper Corporation (KMPR) : Free Stock Analysis ReportAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportMGIC Investment Corporation (MTG) : Free Stock Analysis ReportJames River Group Holdings, Ltd. (JRVR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Kroger Stumbles as Competition Gets Fiercer in the Grocery Space (Bloomberg) -- Kroger Co. fell the most in more than three months after posting an uneven quarterly performance, fueling investor concerns that Walmart Inc. and other rivals are taking sales and shoppers away from the grocer. Same-store sales excluding fuel rose 1.5% last quarter, short of projections, and while earnings narrowly beat analysts’ estimates, profit margins decreased again because of investments the company’s making to keep pace with the competition. Kroger, America’s biggest traditional supermarket chain, has found life more difficult amid the rock-bottom prices and improved quality offered by discounters like Walmart and Germany’s Aldi. It doesn’t help that Dollar General Corp. is beefing up its grocery section, adding more fresh and frozen food while entering more urban markets with stores that cater to millennials. Even drugstores sell plenty of food nowadays, which has prompted Kroger to partner with Walgreens to sell groceries in some locations. “While the results generally met expectations, the other large retailers of food that we cover performed a little better,” Joe Feldman, an analyst at Telsey Advisory Group, said in a note. Digital Sales In response, Kroger is pushing hard to bolster online sales, which grew 42% last quarter. The company has also tested autonomous deliveries in Texas and Arizona. About 35 million more Americans are now buying food online compared with a year ago, according to Coresight Research, but penetration is still below markets like the U.K. Kroger generated about $5 billion in digital sales last year, and by the end of this year it plans to offer pickup or delivery service for all of its U.S. shoppers, up from about 90% last year. The shares sank as much as 5.1% to $22.43 in New York Thursday. They had already lost 14% this year through Wednesday’s close, compared with double-digit increases for both Walmart and the benchmark S&P 500. Kroger’s e-commerce investments, as well as a partnership with Microsoft Corp. to roll out digital shelf labels and explore other next-generation technology, have dented profitability in the short term, sending investors elsewhere. Profit excluding some items amounted to 72 cents a share in the period that ended May 25, exceeding the average analyst estimate by a penny. Kroger reiterated its full-year sales and profit guidance. To contact the reporter on this story: Matthew Boyle in New York at mboyle20@bloomberg.net To contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, Lisa Wolfson, Anne Riley Moffat For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
JinkoSolar's 351 MW Modules Aid Vietnam's Solar Project JinkoSolar Holding Co., Ltd.JKS announced that it has supplied 351 megawatt (“MW”) of solar modules to Power Construction Corporation of China. These modules were installed at Vietnam’s Hong Phong solar PV plant, one of the largest PV projects in the Asia Pacific region to date.Phase 1A and 1B of the project were recently integrated into the national grid and will generate an estimated annual supply of 520 million kWh of electricity from solar energy. This solar energy project supports the Vietnamese government's long-term plan to build a solid foundation for the renewable energy sector and lower emission in the process.High-Efficiency Solar ModulesCourtesy of the R&D team, the company is able to improve the conversion efficiency of solar modules. Recently, JinkoSolar announced that its cheetah size and N-type cells — which are the best in the world in this category — reached 24.38% and 24.58%, respectively, during testing.The high-efficiency modules are helping it to bring down the cost of utility scale solar projects and making solar energy projects competitive against the likes of conventional energy source power projects.The high-quality solar modules developed by the company are supplied to a diversified international utility and for use by commercial and residential customer base.Increase in Renewable Energy UsageThe usage of renewable energy will increase in a global scale, going forward. The current report of International Renewable Energy Agency (IRENA) indicates that the share of renewable energy in primary energy supply would grow from the current level of less than one-sixth to nearly two-thirds by 2050. This report also projects that solar energy will take the center stage among renewable sources and provide clean energy to fulfill customers’ growing needs.The increasing usage of solar energy will not only benefit JinkoSolar but also companies like SunPower Corporation SPWR, Canadian Solar Inc. CSIQ and First Solar Inc. FLSR, among others.Price Movement Shares of the company have outperformed its industry in the past 12 months. Zacks Rank JinkoSolar currently sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportSunPower Corporation (SPWR) : Free Stock Analysis ReportCanadian Solar Inc. (CSIQ) : Free Stock Analysis ReportJinkoSolar Holding Company Limited (JKS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Much About CBD Remains TBD As FDA Crafts Food, Supplements Policy By William Sumner, Hemp Business Journal Contributor Whilefederal regulators considerwhether to classify cannabidiol (CBD) as a pharmaceutical ingredient or allow its use as a nutritional supplement, individual states are making moves to decide the issue for themselves. In the state of California, a bill is working its way through the state legislature to make it legal to infuse food products with hemp-derived CBD. Underexisting state law, it is illegal to infuse food, beverage, or cosmetic products with hemp-derived CBD. Prior to the passage of the 2018 Farm Bill, the California Department of Public Health (CDPH) asserted that hemp-derived CBD was illegal because it was considered a controlled substance by the federal government. The CDPH also noted that the U.S. Food and Drug Administration (FDA)forbids the inclusionof THC or CBD in food products, regardless of the source. While the Farm Bill removed hemp-derived CBD from the federal list of controlled substances, the FDA hasyet to concludewhether the substance can be safely used in food products. Until the FDA or the state of California determines that hemp-derived CBD can be used in food products, it remains illegal. The legal distinction has confused many outside observers who note that while hemp-derived CBD is illegal, California simultaneously has legalized medical and adult-use cannabis markets, which include a veritable cornucopia of infused cannabis products that contain both CBD and THC. The difference, however, is that state law explicitly allows for cannabis-infused products. No such distinction has been made for hemp or its derivatives. Hoping to clear up the confusion over hemp and cannabis laws, Assemblywoman Cecilia Aguiar-Curry has introducedAssembly Bill 228(AB 228) into the state legislature. Under AB 228, it would be legal to infuse food, beverages, and cosmetic products with hemp-derived CBD. The measure would also require hemp products to undergo laboratory testing, and ban the makers of hemp products from making any health-related claims. "With the most recent federal farm bill, hemp farmers can legally grow their crop and ship it in interstate commerce," wrote Aguiar-Curry in an op-ed to the San Jose Mercury News. "Now is the time for California to make it easier for its citizens to access a non-intoxicating, plant-based product they want, and for state farmers to establish themselves in a fast-growing agricultural industry." The bill has been unanimously approved by the state Assembly, and currently awaits a decision by the state Senate. The Hemp Business Journal estimates that by 2022 U.S. hemp food sales could reach $212 million, and that hemp-derived CBD sales could be worth up to $1.2 billion. If AB 228 is passed and signed into law, and both of those categories merge into one, the combined total could climb higher. William Sumner William Sumner is a writer for the hemp and cannabis industry. Hailing from Panama City, Florida, William covers various topics such as hemp legislation, investment, and business. William's writing has appeared in publications such as Green Market Report, Civilized, and MJINews. You can follow William on Twitter: @W_Sumner. The post Much About CBD Remains TBD as FDA Crafts Food, Supplements Policy appeared first on New Frontier Data. Image Sourced From Pixabay See more from Benzinga • New Frontier Data And PwC Canada Join Forces • Q&A: What Capital Sources Look For When Providing Financing To Cannabis Companies • Analyzing Young Fathers' Unique Relationships With Cannabis © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Interested In AGCO Corporation (NYSE:AGCO)? Here's What Its Recent Performance Looks Like Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! After reading AGCO Corporation's (NYSE:AGCO) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways. See our latest analysis for AGCO AGCO's trailing twelve-month earnings (from 31 March 2019) of US$326m has jumped 48% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -18%, indicating the rate at which AGCO is growing has accelerated. What's enabled this growth? Let's see if it is solely because of an industry uplift, or if AGCO has seen some company-specific growth. In terms of returns from investment, AGCO has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 4.3% is below the US Machinery industry of 7.6%, indicating AGCO's are utilized less efficiently. However, its return on capital (ROC), which also accounts for AGCO’s debt level, has increased over the past 3 years from 7.4% to 10%. While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There may be factors that are impacting the industry as a whole, thus the high industry growth rate over the same period of time. I recommend you continue to research AGCO to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for AGCO’s future growth? Take a look at ourfree research report of analyst consensusfor AGCO’s outlook. 2. Financial Health: Are AGCO’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 31 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.
Phillips 66 Intends to Manufacture a Crude Export Facility Phillips 66PSX intends to manufacture an oil export terminal offshore U.S. Gulf Coast, per Reuters. The deepwater terminal will not only expand the company’s logistics business but will also compete with other export terminals planning to dispatch domestic oil across the globe. For permits from the federal and state levels, the company has sent applications, added Reuters. The Bluewater Texas Terminal may commence operations by 2021, following approvals from Texas regulators, U.S. Coast Guard and U.S. Maritime Administration. The deepwater export terminal, with probable loading capacity of roughly 1.56 million barrel per day, will dispatch crude that will be transported through the to-be-constructed pipelines — Liberty Pipeline and Red Oak Pipeline. Notably, Phillips 66 recently created two separate joint ventures for constructing the pipelines — expected to commence initial operations by the March quarter of 2021. The produced crude oil that will be transported to the deepwater export terminal will be from Rockies, Bakken and Permian resources. The manufacturing of export terminals in the United States is likely to further boost export volumes of domestic crude that is available in plentiful and is being produced in the prolific shale plays. After lifting the ban on crude export volumes in 2015, America has witnessed oil export volumes of 3.12 million barrels per day in June, per Reuters. Headquartered in Houston, TX, Phillips 66 is primarily engaged in refining, transportation, storage and chemicals operations. The stock currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy sector include Apache Corporation APA, Ecopetrol S.A. EC and Anadarko Petroleum Corporation APC. All the stocks carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Apache has average positive earnings surprise of 6.6% for the last four quarters. Ecopetrol is likely to witness earnings growth of 25.3% through 2019. Anadarko Petroleum has average positive earnings surprise of 6.6% for the last four quarters. Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportPhillips 66 (PSX) : Free Stock Analysis ReportEcopetrol S.A. (EC) : Free Stock Analysis ReportApache Corporation (APA) : Free Stock Analysis ReportAnadarko Petroleum Corporation (APC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Here's Why You Should Invest in Cooper Companies Stock Now The Cooper Companies, Inc.COO is well poised for growth on the back of strong segmental performances, increasing penetration in international markets and solid gains from core CooperVision (CVI) unit.The stock carries a Zacks Rank #2 (Buy).Price PerformanceShares of Cooper Companies have gained 30.3%, outperforming the industry’s growth of 16.9% on a year-to-date basis. Moreover, the stock outpaced the S&P 500 Index’s rally of 15.6%. What’s Favoring the Stock?Driven by a highly exclusive product portfolio featuring the likes of Biofinity and Clariti, Cooper Companies has been able to maintain its leading position in specialty lenses markets. Notably, the company’s flagship silicone hydrogel lenses are anticipated to generate strong sales in the near term. We expect the company’s MyDay and Clariti lenses to strengthen and bolster growth prospects further.Moreover, the company’s CooperVision segment has been garnering success globally and fortifying presence through developments such as Eye care professional (ECP) programs in Australia and New Zealand.This apart, the aforementioned segment remains focused on multiple initiatives that will increase the adoption of its innovative MiSight 1 day product across major world markets.For fiscal 2019, management expects revenues at CSI to grow 3-6% at pro forma.With respect to CooperSurgical (CSI), its expanding product portfolio has been benefiting the segment consistently. Recently, the company inked a deal to purchase the flagship contraception platform of Israel-based Teva Pharmaceutical Industries (TEVA) — PARAGARD Intrauterine Device. The transaction is anticipated to bolster Cooper Companies’ CooperSurgical (CSI) business in the global contraceptive device market.Notably, revenues from CSI are anticipated within the range of $663 million to $681 million, up from the previous guidance of $660-$680 million.Strategic acquisitions play an important role with respect to company’s long-term growth prospects. CSI’s acquisition of Incisive Surgical and CVI’s buyout of Blanchard contact lenses are expected to prove beneficial for the respective segments, which in turn will fuel growth.Which Way Are Estimates Headed?For 2019, the Zacks Consensus Estimate for revenues is pegged at $2.65 billion, indicating an improvement of 4.9% from the year-ago period. The same for earnings stands at $12.24, suggesting growth of 6.4% from the year-reported figure.Other Stocks to ConsiderSome other top-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%. Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportOxford Immunotec Global PLC (OXFD) : Free Stock Analysis ReportHaemonetics Corporation (HAE) : Free Stock Analysis ReportCardiovascular Systems, Inc. (CSII) : Free Stock Analysis ReportThe Cooper Companies, Inc. (COO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
PPL Corporation- A Solid Ute for a Diversified Portfolio Our goal is to have 30 stocks in our portfolio; we currently have 28. For those not familiar with our strategy, a review of my special affinity for the number 30 may be useful, explains Neil Macneale , editor of the specialized advisory service, 2-for-1 Stock Split Newsletter . First, 30 months equals 2½ years. The David Ikenberry study that inspired me 23 years ago described the outperformance of splitting stocks over a two to three year period, after which the “stock split advantage” dissipates. Thus, 30 months becomes an ideal holding period for our stocks on a ladder from newest to the oldest. Second, mathematicians tell us that just 30 positions, spread across market sector and market cap, offers more than enough diversity to completely eliminate all risk except market risk. In other words, a diverse portfolio of 30 stocks can be seen as a proxy for the entire market. With no qualified split announcements in May, I go to the market and look for companies with many of the same characteristics as our 2 for 1 portfolio winners. This month I’m going to go with a utility that meets most 2 for 1 criteria and also gives us some international exposure in addition to the typical utility stability and good dividends. Headquartered in Allentown, PA, the PPL Corporation ( PPL ), through its fully owned subsidiaries, provides electricity to portions of the United Kingdom, Pennsylvania, Kentucky, Virginia and Tennessee and natural gas to portions of Kentucky. The UK operations provide approximately 53% of earnings. All operations are regulated. The permitted return-on-investment in the UK is significantly higher than is typical for the US, and will remain so for at least the next several years at which time rates of return will be up for review in the UK starting in 2023. If we continue to add non-splitting stocks to the portfolio, doing without the stock split advantage, there has to be some off-setting benefit. In the case of PPL, we get a very low volatility, high dividend paying stock that might serve as an “anchor” for the portfolio even if its price appreciation falls below our average. Story continues With a PE ratio of 11.9 and a price-to-book ratio of 1.8, PPL is quite reasonably priced compared to its peers. The 5.4% dividend has been slowly increasing and should be deemed relatively secure. This is a huge company. PPL ranks as the 8th largest electric utility in the US, with a market cap of over $22B, so it’s not exactly an under-the-radar stock. Nevertheless, I could find no significant scandals or bad press to put me off. Sustainalytics, Inc., a business that ranks Environmental, Social, and Governance characteristics of companies, has an ESG ranking on PPL that has improved markedly over the last five years. I would prefer to be adding a split, but a solid utility will keep the portfolio moving for now. More From MoneyShow.com: Corning: The Technology of Glass Altria: Cigarette Maker Expands to Cannabis and e-Vapor Look into Lockheed Two Stocks Making Advances in Oncology
Shopify (SHOP) Strengthens Platform With New Delivery Network Shopify Inc. SHOP made a slew of announcements at its annual partner conference, Shopify Unite, with the focus being on enhancing business processes for its merchants.The company rolled out Shopify Fulfillment Network in the United States, for the first time, to facilitate commerce. The eligible merchants can avail benefits of the network by signing up for early access.The distributed fulfillment network utilizes robust machine learning (ML) driven inventory-allocation technologies to empower merchants to avoid additional shipping charges. By ensuring optimized utilization of space and time, merchants can manage inventory and stock accordingly. Moreover, consumers can avail quicker delivery.Following this news, shares of Shopify advanced 7.5% in the yesterday’s trading session. Notably, the stock has returned a whopping 136.2% year to date, significantly outperforming the industry’s rally of 11.5%. We believe the company’s strategically evolving commerce platform to address the merchants’ market reach with innovative initiatives is instilling confidence in this Zacks Rank #2 (Buy) stock.Other Noteworthy Announcements Boost OptimismThe company rolled out the “all-new Shopify Plus” to enable enterprise merchants in expanding business. This is expected to bolster adoption of Shopify Plus, in turn driving top-line growth in the days ahead.Moreover, the company unveiled new Shopify POS — point of sale software — to enable retailers in expanding brick-and-mortar business. The latest POS is scheduled to be “available later this year” and will provide access to the company’s POS app extensions. It is loaded with innovative customer service shortcuts and easy-to-use interface features to boost business.Shopify POS can be used with the company’s new retail hardware offerings which include Retail Stand, and, Tap & Chip Reader, to enable merchants in providing enhanced retail experience to customers.In a bid to make the platform more merchant friendly, Shopify rolled out new payment and shipping capabilities. Moreover, the company rolled out new store design experience to boost online shopping. Merchants can display their products in 3D and video models by leveraging the new design.Shopify has been working on extending language capabilities beyond English lately. The focus on local languages is helping in bolstering international presence. At Shopify Unite, the company announced availability of local language capabilities in Hindi, Danish, Dutch, Simplified Chinese, Traditional Chinese, Finnish, Norwegian, Korean, Thai, Swedish, and Malay, taking total languages accessible to 19. Notably, Shopify platform already includes English, Brazilian, Portuguese, Japanese, German, Spanish, French, and Italian language capabilities.We believe this inclusive move will boost engagement and consequently increase adoption going forward. In the first-quarter earnings release, management noted that more than 0.1 million merchants utilize the platform in languages other than English, which is major driver in this regard.Wrapping UpShopify is benefiting from diversified expanding merchant base and rapidly growing penetration in international markets. The company continues to launch a number of merchant-friendly applications to meet the requirements of a dynamic retail environment, in turn bolstering merchant base.We believe that the massive growth in e-commerce spending bodes well for Shopify. In fact, market research firm eMarketer estimates global retail e-commerce sales (excluding travel, restaurant and event ticket sales) to grow 15.1% year over year to reach $605.3 billion in 2019, accounting for 10.9% of total retail spending worldwide.The company’s cloud-based platform is well-positioned to address the growing needs of merchants at a time when social media, mobile devices and data analytics are transforming the e-commerce market place.Other Key PicksSome other top-ranked stocks worth considering in the broader sector are eGain Corporation EGAN, Rosetta Stone Inc. RST and j2 Global, Inc. JCOM, each sporting Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rate for eGain, Rosetta Stone and j2 Global is pegged at 30%, 12.5% and 8%, respectively.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportShopify Inc. (SHOP) : Free Stock Analysis Reportj2 Global, Inc. (JCOM) : Free Stock Analysis ReporteGain Corporation (EGAN) : Free Stock Analysis ReportRosetta Stone (RST) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Kathy Griffin wants Obama back in the White House Kathy Griffin is missing Obama. (Photo: Getty Images ) Pretty much every social media post from Barack Obama is flooded with commenters begging him to come back and Kathy Griffin has joined the call. On the former presidents post recognizing Juneteenth , the comedian replied asking him to Please come back. For those needing clarification, she added, To the Oval [Office]. She went on to take another swipe at Trump by writing, Just walk in and start. Itll take that crowd at least a month to notice. Please come back. To the Oval. Just walk in and start. Itll take that crowd at least a month to notice. Kathy Griffin (@kathygriffin) June 19, 2019 Her comment received a lot of likes, retweets and comments, though there was debate over whether or not the Trump administration would notice. I agree the turnover rate is so high they will just think he is a new guy!! Misha King (@lilmishi) June 19, 2019 There's no way that group fails to notice a black man walking in. Roger The Shrubber (@rogrtheshrubber) June 19, 2019 No, these folks all notice a POC immediately. They call 911 whenever Ben Carson wanders into the White House. Paul Mayo (@PGDubRox) June 19, 2019 A month?!! How about a few days. They'll know somethings up with his tweet that's A) not about himself B) degrading/bullying someone C) spelling is correct Sam I Am (@donnainthemix) June 19, 2019 What crowd? The WH is as empty as Trump Intl HQ Is it over yet? (@exhausted949) June 19, 2019 There is obviously no love lost between Griffin and Trump. Its been just over two years since photos of her holding a fake bloody, decapitated Trump head caused a huge stir including a federal investigation and shes said that the resulting backlash against her continues. Story continues "I'm Hanoi Jane, you know? I get it. This photo is gonna be with me forever, no matter what I do," Griffin said on CBS Sunday Morning. But she wouldnt change a thing. I think a lot of people would love it if I said, 'Oh, I wish I had never taken that picture,'" she said. "But the most important thing that I hope people see is that, long after I kick the bucket, they see the crazy red-haired lady didn't go down." Read more on Yahoo Entertainment: Mila Kunis and Ashton Kutcher shut down rumors that they've split: 'It's over between us?' George Takei says U.S. border camps are concentration camps: 'Yes, we are operating such camps again' Maren Morris says she lost 5,000 social media followers after sharing photo of Parkland shooting survivor: 'Not many country artists speak up' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyles newsletter.
Amazon (AMZN) Boosts Shipment Services With GE Aircraft Deal AmazonAMZN is firing on all cylinders to expand e-commerce capabilities further on the back of its strengthening delivery system.In sync with this, the e-commerce giant has teamed up with GE Capital Aviation Services (GECAS) to increase the number of its aircrafts. Per the deal, Amazon will lease fifteen Boeing 737-800 aircraft from GECAS.These new cargo aircrafts are expected become part of Amazon Air network and will be fully operational by 2021, which will take the number of the company’s aircrafts to 70.This deal underscores Amazon’s accelerated push toward building its own in-house shipping and logistics service to support its complex network of fulfillment, logistics and delivery systems.Strategic Partnership: A Key CatalystThe above-mentioned endeavor of Amazon is in sync with its continued focus toward enhancement of its goods shipment services.We note that 737-800 cargo freight is efficiently designed to aid the company in delivering cargo efficiently and in time to customers, which in turn enhances shopping experience.Apart from the recent deal, the company has also leased five other Boeing 737-800 from GECAS in the beginning of this year.Further, the company expanded partnership with aircraft leasing company, Air Transport Services Group, Inc. ATSG, at the end of 2018 to lease an additional 10 aircrafts which are expected to join Amazon’s fleet over the course of next two years.Additionally, the company has received its 20th B767-300 converted freighter from the Atlas Air Worldwide Holdings AAWW. This has fortified Amazon’s domestic air network. Amazon.com, Inc. Revenue (TTM) Amazon.com, Inc. revenue-ttm \| Amazon.com, Inc. Quote Strengthening Freight Services Amazon’s expanding aircraft portfolio bodes well for its ongoing work and investments for strengthening its air facilities at various airports.The company joined forces with Woolpert for development of its airport project, Amazon CVG Air Cargo Hub, at Cincinnati/Northern Kentucky International Airport. Notably, the hub, which will start operating in 2021, will include several parking positions, huge airfield pavement, support facilities and various platform levels on completion.Further, the company is geared up to open a regional air hub at the Fort Worth Alliance Airport and Chicago Rockford International Airport this year.Further, Amazon Air is planning to set up a package-sorting facility and a new air gateway at Wilmington Air Park in 2019. The company’s plan is inclusive of daily flights. Notably, this project is likely to aid socially by creating numerous jobs in the Clinton County.We believe strengthening freight facility and delivery services will aid the company’s dominant position in the global online retail market as it is likely to expand customer reach by reducing shipping times.Zacks Rank & a Stock to ConsiderCurrently, Amazon carries a Zacks Rank #3 (Hold).A better-ranked stock in the retail-wholesale sector that can be considered is IAC/InterActiveCorp IAC which carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Long-term earnings growth rate for IAC/InterActive is pegged at 20.45%.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportIAC/InterActiveCorp (IAC) : Free Stock Analysis ReportAtlas Air Worldwide Holdings (AAWW) : Free Stock Analysis ReportAir Transport Services Group, Inc (ATSG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
ETFs to Tap on Oracle's Robust Q4 Earnings After the closing bell yesterday, software giant Oracle ORCL reported better-than-expected fiscal fourth-quarter 2019 results. The company beat the Zacks Consensus Estimate for earnings and revenues and issued a solid view.Earnings per share came in at $1.16, beating the Zacks Consensus Estimate by 9 cents and improving 99 cents from the year-ago quarter. Revenues inched up 1% year over year to $11.14 billion and were above the estimated $10.94 billion (see: all the Technology ETFs here).For the fiscal first quarter 2020, the world’s second-largest software maker expects total revenues to be flat to up 2% in dollar terms (1-3% in constant currency basis); the range is within the mid-point is the Zacks Consensus Estimate of 1.65% growth. It projects earnings per share of 80-82 cents with the low end of the guidance matching the current Zacks Consensus Estimate. For fiscal 2020, Oracle expects revenue to grow faster than the previous year and projects double-digit earnings per share growth.Solid results and an encouraging guidance pushed shares of Oracle up as much as 7% in aftermarket trade with elevated volumes. The company carries a Zacks Rank #3 (Hold) and has a VGM Score of A. It belongs to a bottom-ranked Zacks Industry (bottom 38%).ETFs in FocusETFs with the highest allocation to this software giant look to be big movers this week and in the next, as investors digest its scores and views. They should closely monitor the movement in these funds and grab any opportunity from a surge in the price of ORCL:iShares Expanded Tech-Software Sector ETF IGVThis ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. The fund holds a basket of 88 securities with Oracle taking the third spot at 8% of total assets. It is popular with AUM of $2.6 billion and volume is good as it exchanges nearly 479,000 shares a day. The product charges 47 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Salesforce to Buy Tableau: ETFs in Focus).Invesco Dynamic Software ETF PSJThis product follows the Dynamic Software Intellidex Index, holding 30 securities in its basket. Out of these, Oracle is the seventh firm accounting for 5% share. The fund has amassed $472.5 million in its asset base and trades in average daily volume of under 70,000 shares. Expense ratio came in at 0.63%. PSJ has a Zacks ETF Rank #1 with a High risk outlook.Invesco BuyBack Achievers ETF PKWThis ETF follows the NASDAQ US BuyBack Achievers Index, which comprises US securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. It holds a basket of 173 stocks with Oracle taking the fourth position at 4.75% allocation. PKW has accumulated $1.1 billion in its asset base and trades in average daily volume of 229,000 shares. It charges 63 bps in annual fees (read: Buyback or Dividend: Which ETF Wins YTD & What Lies Ahead?).First Trust Cloud Computing ETF SKYYThis fund provides exposure to cloud-computing securities by tracking the ISE Cloud Computing Index. Holding about 28 stocks in the basket, Oracle takes the tenth spot at 4.62% of the assets. The product has been able to manage $2.2 billion in its asset base while seeing a good volume of about 292,000 shares a day. It has 0.60% in expense ratio and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Play the Cloud Computing Boom with These ETFs).Tortoise Cloud Infrastructure Fund TCLDThis ETF invests in companies that have the potential to benefit from the expected growing investments, rapid adoption and fast paced innovation of the cloud industry. It follows the Tortoise Global Cloud Infrastructure Index, charging investors 40 bps in annual fees. The fund holds 46 stocks in its basket with Oracle occupying the seventh position at 4.3% share. It has amassed $2.7 million in its asset base and sees volume of 2,000 shares per day on average (read: Can Global X New Cloud Computing ETF See Success?).Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportOracle Corporation (ORCL) : Free Stock Analysis ReportiShares Expanded Tech-Software Sector ETF (IGV): ETF Research ReportsFirst Trust Cloud Computing ETF (SKYY): ETF Research ReportsInvesco BuyBack Achievers ETF (PKW): ETF Research ReportsTortoise Cloud Infrastructure Fund (TCLD): ETF Research ReportsInvesco Dynamic Software ETF (PSJ): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant 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
Have Insiders Been Selling Autodesk, Inc. (NASDAQ:ADSK) Shares This Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 shareholders might well want to know whether insiders have been buying or selling shares inAutodesk, Inc.(NASDAQ:ADSK). 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. We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Autodesk The Director, Elizabeth Rafael, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$138 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$166. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 76.6% of Elizabeth Rafael's stake. Elizabeth Rafael was the only individual insider to sell over the last year. Elizabeth Rafael divested 11088 shares over the last 12 months at an average price of US$142. 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! 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. Autodesk insiders own about US$40m worth of shares. That equates to 0.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. An insider hasn't bought Autodesk stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Autodesk. 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.
How blockchain technology is being used in Russia The term ‘blockchain’ first appeared as the name of a fully replicated distributed database implemented in the Bitcoin network. Blockchain technology makes it necessary to take a fresh look at how we exchange documents and money. It removes intermediaries and allows users to directly send each other important data. Blockchain is often compared to a standard diary or card file, where successive entries are made in chronological order. No stranger can make changes to this diary as all information is encrypted. However, if there was only one copy of the diary, anything could happen to it. Therefore, for reliability, a blockchain has many copies that are stored in different places all over the world. Moreover, when new information is entered, it is updated on all copies after verification. Some are already calling it one of the biggest breakthroughs of the 21st century, while others look on cautiously. Russian companies and the country’s government are looking to take advantage of this fantastic technology. Russia is already looking to implement blockchain technology in a few sectors, such as: education financial operations real estate transactions insurance logistics traffic violations registration of marriages Russian projects based on blockchain technology Blockchain passport Russia is currently working on developing a “blockchain passport” for students which will accumulate all information over a child’s first 11 years of study, including assessments, achievements, participation in competitions, vocational guidance testing, and more. The Minister of Economic Development of the Russian Federation, Maxim Oreshkin, believes that this will make it possible to completely abandon the Unified State Exam (USE). The main goal of this initiative is to have impartial artificial intelligence distribute graduates to universities without any exams rather than being dependent on USE points. Russia will include blockchain technology in main university exam this year By Oliver Knight – June 20, 2019 The Sberbank blockchain laboratory The biggest bank in Russia, Sberbank, recently announced that it had opened a blockchain laboratory. This laboratory will explore the latest technologies in the blockchain field, form and propose ideas for developing solutions based on the tech, create product prototypes, conduct pilot projects, and implement applied business solutions for Sberbank. Story continues The laboratory will also cooperate with other market participants, support start-ups, and conduct informational and educational activities to popularise blockchain technology. Sberbank believes that blockchain is a tool for increasing the efficiency of interaction between market participants and is aiming to contribute to the future of the banking industry and the country. Blockchain in Russian retail businesses A number of companies in Russia have now started implementing blockchain into their operations. Trading company M.Video – in partnership with Alfa-Bank and Sberbank – has launched a blockchain platform based on Ethereum which aims to expand the possibilities of counterparty interaction by forming a “blockchain consortium”. S7 Airlines is also using smart contract technology to automate ticket sales for flights, while Vnesheconombank – together with NITU (National Research Technological University) – has established a specialised center where users learn how to work with blockchain technology. Megafon has also issued securities that are bought and sold on the blockchain. The platform was created and launched by the National Settlement Depository and is based on Ethereum. It helps to ensure anonymity and compliance with the regulations governing the securities market. Russian payment service provider QIWI also attempted to create a new national cryptocurrency called the Bitruble. The attempt failed for two reasons: The Central Bank of Russia initially supported the project, but later changed its mind due to the negative attitude of the government to virtual money and the possibility of it being used by fraudsters The Ministry of Finance proposed to establish criminal penalties for issuing cryptocurrencies and conducting operations with them The company is now working on projects such as SKYFchain (an unmanned transportation project) and Masterchain, which is positioned as a national network that takes into account Russian legislation and cryptography. Other projects based on the blockchain There are a number of other blockchain projects in the pipeline in Russia, including: The Ministry of Health has focused its efforts on creating a blockchain platform to store medical records. Patients will be able to determine for themselves who gets access to their health data. The government is also looking at the possibility of a blockchain platform for the housing market. The advantage of the project is to increase confidence in the interaction of realtors, banks, owners, and buyers. Another blockchain platform is being developed to store information about the education and work experience of Russian citizens to aid employers. Universities may start adding video lectures and documentation on the blockchain. MGIMO has also started training blockchain lawyers on the assumption the technology will become more prevalent in the future. The Moscow City Duma is currently working on the possibility of digital city management. The idea is supposed to unite health care and housing. Cloud technologies and blockchain will help improve the transparency and security of the real estate market. Conclusion Ideas for the use of blockchain technology in Russia do not always reach the stage of creation. This is due to the lack of financial and human resources. Despite this, many innovative solutions are being developed or planned for implementation in Russia. Russia is confident that the introduction of blockchain technology will provide support for small and medium-sized enterprises, and will therefore increase the efficiency of economic sectors. Discover how public blockchain technology works by reading our latest article: How does public blockchain technology work? By Pedro Febrero – June 20, 2019 The post How blockchain technology is being used in Russia appeared first on Coin Rivet .
CEO of pioneering U.S. cannabis tech company: We connect 'every datapoint in the supply chain' Marijuana software company Akerna KERN (KERN) is off to a very positive start with investors after listing on the Nasdaq this week. The company’s stock is trading at more than $50/share after debuting at $11.41 on Tuesday. And unlike heavyweights like vape supplier Greenlane Holdings and Canadian weed producer Tilray, Akerna became the first of its kind to go public on the exchange after parent MJ Freeway merged with a special purpose acquisition company named MTech Acquisition. “We are the first cannabis technology company to list on a major US exchange,” hief Executive Jessica Billingsley told YFi AM (video above). “So it's certainly a landmark moment. And our investors are pretty pleased and are excited about seeing us begin to execute our strategy this year. Billingsley described the company as “a global cannabis provider that connects every data point in the supply chain. And with this transaction, we intend to do some consolidation within the space and create an even larger platform to connect all of those data points globally.” MJ Freeway is best known for its seed-to-sale technology that tracks the eventual sale of cannabis to investors and its enterprise resource planning software for cultivators, pot stores and manufacturers. In providing these services, Akerna helps other companies meet federal and state standards for the sale of cannabis. “The compliance standards can vary dramatically from market to market. And so it can be very challenging for these businesses to have a replica of a business model across state lines or across country lines,” Billingsley said. “And that's actually one of the problems that we help solve in terms of tracking all of the data points and each of the pieces of the business so that you can ensure by the same testing profile or by the same metrics that you're getting the same product in.” Marina is a production assistant atYahoo Finance. Follow her on Twitter at@marina9527. Read more: • Venture capitalist: Natural food is the future • Expert: Retirement is risky if you're 'overinvested in stocks’ • Trucking app CEO: We're revolutionizing freight with phone tracking • Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn,YouTube, andreddit.
Australia’s Central Bank: Cryptos Will Not Receive Wide Acceptance in the Near Future Cryptocurrencieswill not receive wide use inAustraliaas long as the localfinancialsystem is efficiently working, the Reserve Bank of Australia (RBA) stated in an officialdocumentissued on June 20. According to the notice authored by analysts from RBA’s payments policy department, there is "little likelihood of a material take-up of cryptocurrencies for retail payments in Australia in the foreseeable future" due to a number of reasons. In the document, authors outlined the so-called "scalability trilemma,” which means that crypto can at best solve only two out of the three basic features such asdecentralization,scalability, andsecurity. The paper states that cryptos will always lack some of the features in some way, which purportedly makes this type of asset less attractive. The document reads: “In practice, these trade offs are incremental; increasing the scalability of a blockchain does not require it to become entirely centralised or insecure, but more centralised or less secure.” Another obstacle to the wide acceptance of crypto assets is increasedvolatility, the RBA said in the document. In this regard, the authors also cited the much-discussed crypto project by social media giantFacebook, which was officially unveiled on June 18. Built as astablecoinbacked byfiatcurrencies, Facebook’slibrais expected to solve the volatility issue, the authors wrote, while still losing in terms of decentralization by relying on a central body to buy and manage the assets that back the stablecoin. In the document, the RBA cited particular cases of attempted stablecoin launches in Australia, claiming that stablecoins’ use for payments “has been very limited” as “has the supply of Australian dollar-linked stablecoins.” The financial authority cited the first Australian dollar (AUD)-pegged stablecoin AUDRamp, which went live in September 2018 but completely lost its worth after 137tokenswere issued. The authors also cited theTrueAUDstablecoin, launched in April 2019 by TrustToken, claiming that “no tokens appear to have been issued” to date. The RBA authors conclude that cryptocurrencies have not developed enough to represent a “compelling proposition that would lead to their widespread use in Australia” as long as the Australian dollar provides a “reliable, low-inflation store of value.” They write: “Developments to date have also not added sufficiently to the overall reliability, functionality and credibility of cryptocurrencies to make them an attractive alternative to established payment systems for everyday payments for the population at large.” Recently, Australia’s securities regulatorreleasednew initial coin offering and cryptocurrency guidelines, considering cryptocurrency to be a financial product, which requires involved parties to get an Australian financial services license. • Oxfam Partners With Tech Firms to Test Dai’s Use in Disaster Aid • Ripple CEO: Bitcoin and XRP Aren’t Competitors — I’m Long BTC • Facebook Has Not Applied for RBI Approval to Operate Libra in India: Report • Litecoin Foundation to Release Physical Cryptocurrency Debit Card
Uniqlo Announced Collab With BTS On a BT21 Collection BTS ARMY REJOICE! A collaboration between BT21 — the animated characters created by the K-pop group — and the Japanese retailer Uniqlo has just been announced. The collab will feature 12 different t-shirt designs with the BT21 logo and characters front and center. Yes, that’s right, the adorably-fluffy and food-loving RJ and dance-lover Mang (whose real identity remains a mystery) will be featured on Uniqlo tees! We predict that these tees will sell like hotcakes. Fans online are already anticipating the large swarms of crowds that will ascend upon Uniqlo stores later this month. https://twitter.com/BangtanPaenboi/status/1140857638147649536 The collaboration was created in conjunction with LINE FRIENDS , the super-cute characters based on the stickers from the mobile messaging app Line . TATA, VAN, KOYA, RJ, SHOOKY, MANG, CHIMMY and COOKY all make appearances on the designs. Plus, LINE FRIENDS just opened a store in Hollywood , where, for a limited time, you can get BT21 sticker packs and bags with purchases over $50 and $100. The T-shirts will be available in men’s sizing XS – 3XL and cost $14.90 (budget friendly!). You can purchase the tees online and in-store at Uniqlo locations worldwide on June 21. Some of our favorite picks from the drop include a Commes Des Garcons inspired TATA heart-tee, a millennial pink COOKY tee with the message “PINKISH TOUGH BUNNY,” and a “Passionate Chimmy” tee that’s reminiscent of the artist Keith Haring’s designs ( who also has a Uniqulo series ). Fans are gearing up for the drop by sharing reaction memes on Twitter and mourning their soon-to-be-empty wallets. (With a price of $14.99, who can resist getting two tees??) https://twitter.com/LeniceSeokJin/status/1140950228318605312 https://twitter.com/kimgucciboi/status/1139552718039601153 https://twitter.com/SPRINGTAELUV/status/1139198378808471553 Set an alert on your phone for June 21st because these items are sure to sell out fast. Story continues Originally Appeared on Teen Vogue
Nissan grants Renault execs boardroom seats, ending dispute TOKYO/PARIS (Reuters) - Japan's Nissan said on Friday it would grant alliance member Renault's representatives seats on key committees of its board, ending a dispute between the two automakers. Nissan said it will give Renault Chief Executive Thierry Bollore a seat on its board's audit committee and Renault Chairman Jean-Dominique Senard a seat on its nomination committee. Senard will also become vice-chairman of the board. The move comes after demands by Senard for representation on the committees in return for approving Nissan's overhauled governance structure plunged the two-decade-old partnership into crisis. "Groupe Renault welcomes Nissan's decision to grant Renault's representatives a seat on the committees of the Nissan board, which will be presented to the general shareholders' meeting on June 25," Renault said in a statement. "The agreement reached on Renault's presence in Nissan's new governance confirms the spirit of dialogue and mutual respect that exists within the alliance," added Renault, whose merger talks with Fiat-Chrysler broke down this month. Nissan also said it would nominate Yasushi Kimura, adviser at JXTG Holdings Inc , to chair its board. The French state has a 15% stake in Renault, while Renault itself owns 43.4% of Nissan. French ministers have consistently highlighted the importance of ensuring the Renault-Nissan alliance remains strong, before planning any further consolidation with the likes of Fiat-Chrysler. The 20-year-old partnership between Renault and Nissan has been strained since former leader Carlos Ghosn was arrested for suspected financial misconduct last year. Ghosn denies wrongdoing. (Reporting by Naomi Tajitsu, Maki Shiraki and Sam Nussey in TOKYO and Gilles Guillaume and Sudip Kar-Gupta in PARIS; Editing by Alexandra Hudson and Stephen Coates)
Have Insiders Been Selling Adamis Pharmaceuticals Corporation (NASDAQ:ADMP) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 shareholders might well want to know whether insiders have been buying or selling shares inAdamis Pharmaceuticals Corporation(NASDAQ:ADMP). It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. Check out our latest analysis for Adamis Pharmaceuticals Chairman & Consultant Richard Williams made the biggest insider purchase in the last 12 months. That single transaction was for US$79k worth of shares at a price of US$1.57 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.32). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Over the last year, we can see that insiders have bought 62750 shares worth US$99k. On the other hand they divested 53329 shares, for US$122k. Over the last year we saw more insider selling of Adamis Pharmaceuticals shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. It's good to see that Adamis Pharmaceuticals insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$99k for shares in the company -- and none sold. This makes one think the business has some good points. Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Adamis Pharmaceuticals insiders own about US$4.4m worth of shares (which is 7.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings. It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future. 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.
US drone debris in international waters, not in Iran-US source WASHINGTON, June 20 (Reuters) - The debris field from a U.S. military drone that was shot down by Iran is in international waters in the Strait of Hormuz, and U.S. naval assets have been dispatched to the area, a U.S. official told Reuters, contradicting Iran's account of the shoot-down. The U.S. military did not immediately comment about the location of the debris from the Navy MQ-4C Triton drone. But if the location of the debris field is confirmed, it would appear to provide physical evidence casting doubt on Iran's account that it shot down the drone over the southern Iranian province of Hormozgan, which is on the Gulf, with a locally made "3 Khordad" missile. (Reporting by Phil Stewart)
Zacks Market Edge Highlights: Microsoft, Sony, Alphabet, GameStop and Funko For Immediate Release Chicago, IL –June 20, 2019 – Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: How to Invest in the Hot Video Game Industry Welcome to Episode #182 of the Zacks Market Edge Podcast. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. This week she’s joined by Zacks Podcast Producer, Danny MacPherson, to discuss the innovation that is happening in the video game industry in 2019. He’s a gamer and follows the industry trends, unlike Tracey who isn’t a gamer but is intrigued by the changes in the industry. There’s a lot going on in 2019. The Comic-Con of gaming, the E3, just happened in June 2019 and Microsoft made a splash with its big Project Scarlett announcement as well as by bringing actor Keanu Reeves out on stage. However, it looks like gamers will have to wait until 2020 for a new console as both Microsoft and Sony are set to roll out their latest versions next year. Who is taking the spotlight in gaming? 5 Companies to Watch as Video Gaming Innovates 1.Microsoft MSFTis the King of Cool in gaming. It announced its new Xbox replacement for 2020 as well as Project XCloud which would let you stream games from Xbox to your phone beginning in October 2019. Additionally, it has new Game Pass plan which will have 3500 games available to subscribers. Microsoft remains the industry leader. 2.Sony SNEdidn’t attend E3 this year but it’s also rolling out its latest PlayStation in 2020. It already has game streaming with 750 games which is $19.99 a month or $99.99 per year. This is meant to appeal to casual gamers as the hard-core gamers already have consoles. And mysteriously, Sony has formed a partnership with arch-rival Microsoft. What they are doing together remains unclear but it’s intriguing nevertheless. 3.Alphabet GOOGLis a surprise entrant into gaming as it announced its Stadia subscription service for $10 a month. It will launch in November 2019 and will host 28 games. However, it won’t initially have any exclusive games which may be a must-have to attract subscribers. 4.GameStop GME, the gaming retailer, has seen its shares sink 62% over the last year and 85% over the last 5 years as gaming moves towards digital formats. Same-store-sales are expected to fall 5-10% this year but it’s still going to see between $7.46 billion and $7.87 billion in revenue. Can GameStop save itself in a changing industry? 5.Funko FNKOhas the license for Fortnite toys. It also makes other popular pop culture toys. Fandom is strong in video gaming. Last quarter, one of the GameStop’s bright spots was its Collectible sales, which rose 11%. Is Funko a way to play the video game industry without buying the hardware or software makers? What else should you know about this hot industry? Find out on this week’s podcast. [In full disclosure, Tracey owns shares of GOOGL and FNKO in her personal portfolio.] Looking for Stocks with Skyrocketing Upside? Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>> Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com/performance Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. 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 reportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportSony Corporation (SNE) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportGameStop Corp. (GME) : Free Stock Analysis ReportFunko, Inc. (FNKO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
UPDATE 2-Erdogan pledges return to low interest rates in Turkey (Adds lira, trader comment, FX context) By Jonathan Spicer ISTANBUL, June 20 (Reuters) - Turkish President Tayyip Erdogan said on Thursday he remains opposed to the country's tight monetary policy and pledged a "definitive solution" to soon lower the central bank's key interest rate from 24%. Turkey's central bank raised its policy rate to some of the highest levels found in emerging markets last year after a currency crisis sent inflation soaring above 25%. It has since slowed to 18.71%, but rates have been left unchanged, with the economy in recession and the lira still weak. Erdogan, who criticised last year's policy tightening even though it won praise from investors for stemming the crisis, noted that the U.S. Federal Reserve and other major central banks have recently shifted to a more dovish stance. The Fed's key rate is set at 2.25% to 2.5%. "In my country, unfortunately, the interest rate is 24%. This cannot happen. That's why soon we will bring a definitive solution," Erdogan told reporters in Istanbul. "Turkey has to return from this interest rate policy in a very careful way." He said he opposes high rates because they stoke inflation - a view that contradicts economic theory - and because they are curbing investment and employment. In part due to worries over the central bank's independence from political pressure, the Turkish lira lost some 30% of its value last year and has shed another 9% this year. The currency slipped briefly on Thursday after Erdogan made the comments. "Erdogan's call for lower interest rates caused a sell off in lira, though his more positive comments about U.S. relations limited the selling," said a foreign exchange trader. Turkey, the largest economy in the Middle East, has taken several steps to defend its lira. On Sunday, Nationalist Movement Party (MHP) leader Devlet Bahceli - a key Erdogan ally - said Turkey needs a "new and just" foreign exchange regime. Asked on Thursday whether work is being done on this, Erdogan spoke only generally and said: "There could be a time when a fixed FX regime could be appropriate, or there could be a time when floating FX regime could be right," adding the floating regime would continue in Turkey. (Reporting by Jonathan Spicer, Ebru Tuncay and Birsen Altayli; Editing by Humeyra Pamuk)
MongoDB Management Talks Atlas and Realm MongoDB(NASDAQ: MDB)has continued to power higher following the company's fiscal first-quarter earnings release. Shares of the cloud database company have surged about 20% since the company reported itsoutstanding quarterly results, bringing the stock's year-to-date return to an impressive 103%. This wild momentum, of course, has brought a lot of new attention to the stock. If MongoDB has landed on your watchlist or in your portfolio and you're looking for a better understanding of the company, consider listening to the cloud database specialist'smost recent earnings call, where management discussed the company's strong performance in detail. Here are two key topics discussed during the call. Image source: Getty Images. MongoDB Atlas, or the company's fully automated cloud database service, is growing at an extraordinary rate. Atlas revenue was up 340% year over year during fiscal Q1. The product now accounts for a meaningful 35% of total revenue. While it's clear that Atlas was the main driver of the company's 78% year-over-year revenue growth, some investors may wonder how the fast-growing product is impacting Atlas' profitability. For now, Atlas, along with the company's recent acquisition of mLab, are the two biggest negative factors weighing on MongoDB's overall gross margin, management explained during the call. But the negative impact from Atlas is only modest. The gross margin for Atlas itself is on the upswing as the product scales, explained MongoDB chief operating officer and chief financial officer Michael Gordon during the call. "However," he added, "we continue to expect that we will see some modest reduction in overall company gross margins as Atlas continues to be a bigger portion of our revenue." This is because Atlas' gross margin is lower than the company's consolidated gross margin. In late April, MongoDB announced the acquisition of Realm, a leader in mobile databases. While the $39 million price tag MongoDB paid for the company may pale in comparison to MongoDB's $9.45 billion market capitalization, investors shouldn't underestimate the acquisition's importance to MongoDB's overall strategy. "At MongoDB, we're always looking ahead of what's next and how the needs of our customers will evolve," explained MongoDB CEO Dev Ittycheria. He continued: To accelerate our mobile efforts, we recently acquired Realm, one of the most popular mobile database and synchronization platforms. Data synchronization is the single biggest challenge in building compelling mobile applications and Realm has developed a comprehensive synchronization platform that is natural -- that is a natural complement to MongoDB Atlas and Stitch. The company didn't waste any time putting together a more detailed plan for its Realm acquisition. This week, MongoDB announced that the mobile database and synchronization platform will merge with MongoDB Stitch under the Realm brand, giving "developers a better way to work with data all the way through the application lifecycle -- from the front to the backend." There is, of course, far more to MongoDB's business than these two developments. But between Atlas' staggering growth and MongoDB's quick execution on its recent acquisition, the company's momentum is clear. A strong tailwind from Atlas and innovation on the mobile front are positioning the cloud database company for more strong growth. More From The Motley Fool • 10 Best Stocks to Buy Today Daniel Sparkshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool has adisclosure policy.
Can We See Significant Insider Ownership On The Westleaf Inc. (CVE:WL) Share Register? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in Westleaf Inc. (CVE:WL) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.' Westleaf is a smaller company with a market capitalization of CA$70m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about WL. Check out our latest analysis for Westleaf We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common. There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Westleaf's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely. We note that hedge funds don't have a meaningful investment in Westleaf. There is some analyst coverage of the stock, but it could still become more well known, with time. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that insiders maintain a significant holding in Westleaf Inc.. Insiders have a CA$15m stake in this CA$70m business. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling. The general public -- mostly retail investors -- own 66% of Westleaf . 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. We can see that Private Companies own 11%, of the shares on issue. 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. It's always worth thinking about the different groups who own shares in a company. But to understand Westleaf better, we need to consider many other factors. I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph. If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts. 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.
Introducing Actual Experience (LON:ACT), The Stock That Dropped 41% In The Last Three Years Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors define successful investing as beating the market average over the long term. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long termActual Experience plc(LON:ACT) shareholders have had that experience, with the share price dropping 41% in three years, versus a market return of about 31%. And over the last year the share price fell 41%, so we doubt many shareholders are delighted. The falls have accelerated recently, with the share price down 20% in the last three months. View our latest analysis for Actual Experience Given that Actual Experience didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth. Over three years, Actual Experience grew revenue at 31% per year. That is faster than most pre-profit companies. While its revenue increased, the share price dropped at a rate of 16% per year. That seems like an unlucky result for holders. It seems likely that actual growth fell short of shareholders' expectations. Still, with high hopes now tempered, now might prove to be an opportunity to buy. The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values). You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic. Investors in Actual Experience had a tough year, with a total loss of 41%, against a market gain of about 1.3%. 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 2.4% 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. Before spending more time on Actual Experienceit might be wise to click here to see if insiders have been buying or selling shares. 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 GB 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.
Reaching For A Record: Stocks Approach All-Time Highs Amid Rate Optimism Now that the Fed meeting has come and gone with no rate cut, a lot of people are asking themselves, “What’s next?” Well, if you can forget about the Fed for a bit, there’s a bunch of stuff in the headlights, especially next week. That’s when we have the G-20 meeting featuring President Trump and Chinese President Xi, and the OPEC meeting featuring major oil producers talking about how to boost the sinking price of crude. Speaking of crude, it’s up sharply this morning with no action from OPEC needed. This might be partly due to hopes for monetary easing, which tends to help commodity prices. However, crude also got a lift from another clash in the Persian Gulf, with a U.S. drone shot down by Iran. Another factor that may be helping crude early Thursday was a bigger than expected drop in U.S. stockpiles last week. Lately, crude hasn’t been very good at holding on to gains when geopolitical events occur, so we’ll see if this time is any different. While the OPEC and G-20 meetings are still a bit in the future, and it’s way too early to make any predictions about how the trade talks might go, this morning saw the end of two other meetings: The Bank of Japan (BoJ) and Bank of England (BoE). Neither central bank changed rates, but the BoJ hinted that it’s ready to ease policy if necessary. That helped lift Japan’s major stock index earlier Thursday. Japan’s short-term rate target is still below zero. The BoE also kept rates steady, but stirred up some negative currency trading by forecasting zero growth for the economy in Q2. That’s put some pressure on the British pound today. Remember, it might not be “next,” but the Brexit deadline is Oct. 31, and fears of a “no deal” Brexit seem to be rising. In the meantime, U.S. stocks had a positive tone early Thursday, with the S&P 500 Index (SPX) and the Dow Jones Industrial Average ($DJI) both nearing all-time highs. It appears that markets like the implication of a possible Fed rate cut, and stocks aren’t the only instrument reacting to the Fed’s more dovish language. A lot of commodities are rallying along with crude, and the dollar has weakened. Rate cuts often hurt currencies and raise commodity prices, so today’s early action is in line with what might be expected. Slack Gets Ready to List Another near-term thing to consider watching is the expected direct listing today of Slack. This is different than an Initial Public Offering (IPO). The IPO market has been buzzing lately, with many newly public companies seeing double- or even triple-digit gains, so it might be worth keeping an eye on Slack today to see how it performs vs. the recent IPOs. As a reminder, a direct listing means the company doesn’t issue any additional shares or raise any new money. The stock simply gets listed, in this case on the New York Stock Exchange (NYSE). From a technical standpoint, it might be interesting to see if the SPX can close above the old record high closing level of 2948 posted in late April. An achievement like that might signal more positive sentiment ahead. There are also some earnings in the news today,Oracle Corporation(NYSE:ORCL) reported late Wednesday and got a cheer from investors. Shares rose as much as 7% in post-market trading after the Technology company beat third-party consensus on both earnings per share and revenue. Analysts had widely expected ORCL to see revenue drop in its fiscal Q4, but it rose 1%. The company’s cloud business looked strong. This morning brought earnings from an entirely different part of the economy when retail food storeKroger Co(NYSE:KR) released results. This is a stock that’s been getting beaten up so far this year, as the whole brick-and-mortar grocery industry is in what Barron’s calls a “food fight” amid intense competition. KR reported earnings in line with third-party consensus estimates and revenue a tad above the average Wall Street projection. However, that revenue was down slightly from the same quarter a year earlier. Defensive Posture Still Looks Popular You never want to analyze just an hour or two of market performance and come to any big conclusions, but it is interesting to see how sectors acted yesterday after the Fed meeting. The strongest sectors continued to be the “defensive” ones like Utilities, Health Care, and Staples, though Technology also got a good bid as semiconductor stocks held on to recent gains. The non-cyclicals mentioned above are some of the best performers of this recent rally, and that might be something to consider. In a really strong market environment, it’s often positive to see muscular sectors like Financials and Tech leading the way. That hasn’t really been the case over the last month, though Materials are performing well. It is positive to see, though, that in the last week we’ve had some strength in Consumer Discretionary and Industrials, as well as Technology. So maybe the cyclicals are re-emerging. As we noted yesterday, the Fed’s decision to put off a rate cut while still expressing concerns about the economy shouldn’t necessarily be a reason to celebrate. The Fed basically confirmed what a lot of analysts have already said about the economy slowing down. A rate cut would be a response to a softer economy, and when the economy weakens, that doesn’t tend to be a good situation for the stock market. That might help explain the defensive posture many investors have taken recently. This morning, odds of a July rate cut stood at 100%, according to the CME futures market. Odds for rates to drop 50 basis points between now and September were 85%. Historically, numbers this high have often proven correct, though there’s no way to really be sure. However, if the numbers are right, it looks like we’re headed for the first rate cuts since the markets and economy were getting slammed back in December 2008. FIGURE 1: LONG RATES DRIFTING LOWER. Rates fell across the yield curve after yesterday's Fed meeting, with the benchmark 10-year Treasury (TNX) falling this week to its lowest level since November 2016. In early trading Thursday, the Ten-year dipped below 2%—quite a milestone considering it traded above 3% as recently as a mere six months ago. Data source: Cboe Global Markets. Chart source: The thinkorswim® platform fromTD Ameritrade.For illustrative purposes only. Past performance does not guarantee future results. Sectors and Rates: Something to consider as the Fed turns more dovish is how this change in tone might affect sectors. Utilities and Health Care were two sectors that showed particular strength over the last month, and that might reflect hopes that dividend-yielding stocks could do better in a lower-rate environment. Financials, though, typically don’t do as well when rates start dropping. Investor worries about the sector might be showing up if you look at the last month and the last three months of Financial performance. The sector trails the broader S&P 500 Index (SPX) in both of those time frames. Remember, the Treasury market inversion that happened last month didn’t just go away. Three-month yields still outpace 10-year yields, a sign that investors are piling into longer-term instruments even at lower rates. This isn’t a normal situation, and almost certainly isn’t a healthy one for banks. Lending a Hand?:Meanwhile, if the Fed goes ahead and lowers rates next month, maybe it could slow the flow of overseas cash into U.S. Treasuries. Perhaps that could even help lead to a bit more economic vigor for Europe, where much of that cash appears come from. Just a quick review: European bond yields are extremely low, with the German bund recently hitting a record low yield of around minus 0.33%. That means people buying these instruments are paying to lose money. That’s probably one reason why so much money has flowed into U.S. Treasuries over the last month. However, when U.S. Treasuries rally, their yields go down. Recently, U.S. 10-year Treasury yields fell to 1.97%, from 2.68% at the start of the year and above 3.2% last fall (see figure 1 above). That means investors are getting less for their money, though the yield still seems pretty high compared to negative yields in Japan and Germany. Still, falling U.S. rates just might give overseas investors a pause, and maybe cause them to not invest as much in U.S. Treasuries. It’s a long shot, but maybe some of that cash could end up being spent or invested by overseas investors in their home countries, instead of here. Greenspan Revisited: With Fed Chair Jerome Powell reiterating yesterday that the Fed would do what it takes to keep the expansion going, things right now look very similar to the relationship that the Fed and the markets had back in the 1990s. That’s the era of the so-called “Greenspan put,” slang for the market treating the Fed like a protective "put” option. At that time, if stocks fell too far, people were confident that then-Fed Chair Alan Greenspan would step in and lower rates to ease the pain. One possible metric that makes 2019 different from 1995 is the occupant of the Oval Office. The president has publicly made it very clear he wants rate cuts, and blames the Fed for the economy’s failure to grow faster. The Fed, however, is an independent body, and Powell might feel pressure not to look like he’s just doing the president’s bidding. Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. See more from Benzinga • Is Patience Still A Virtue? Maybe Not, As Fed Strikes That Word, Hints At Future Cuts • Fed Alert: All Eyes Focused On Powell And Company As Markets Await Decision • Cloud Looming? Oracle's Revenue Seen Down In Competitive Atmosphere © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Apple says U.S. tariffs on China to hurt global competitiveness NEW YORK, June 20 (Reuters) - Apple Inc said proposed U.S. tariffs on goods from China, including iPhones, iPads, and Macs, will reduce the company's contributions to the U.S. economy and hurt its global competitiveness. The U.S. government should not move ahead with a proposal to impose tariffs of up to 25% on another $300 billion worth of goods from China, the tech company said in comments posted on a government website on Thursday. Apple is among the latest U.S. firms to press the Trump administration to abandon its plan for more tariffs. (Reporting by Chris Prentice Editing by Simon Webb)
Loonie climbs to three-month high on oil rally, dovish Fed By Fergal Smith TORONTO (Reuters) - The Canadian dollar strengthened to a three-month high against its U.S. counterpart on Thursday as oil prices surged and the greenback was pressured by the prospect of interest rate cuts by the Federal Reserve. The U.S. dollar sank against a basket of currencies, posting its biggest two-day drop in a year a day after the Federal Reserve signaled it was ready to cut interest rates as early as next month. The price of oil, one of Canada's major exports, jumped after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington. U.S. crude oil futures settled 5.4% higher at $56.65 a barrel. In addition to higher oil prices and the prospect of Fed rate cuts, the loonie has benefited from data on Wednesday showing that the annual rate of Canadian inflation climbed to a seven-month high in May. "We have got three forces at play ... all working in the same direction, pushing the Canadian dollar to very high levels," said Hosen Marjaee, a senior portfolio manager at Manulife Asset Management. At 3:51 p.m. (1951 GMT), the Canadian dollar was trading 0.7% higher at 1.3190 to the greenback, or 75.82 U.S. cents. The currency touched its strongest intraday level since March 1 at 1.3151. Gains for the loonie came as Mexican President Andres Manuel Lopez Obrador said it was now up to Canada and the United States to ratify the United States-Mexico-Canada Agreement (USMCA) after Mexico's Senate approved the trade deal on Wednesday. Canada sends about 75% of its exports to the United States, so its economy could benefit if all three countries ratify the new North American trade pact. Canadian government bond prices were lower across a steeper yield curve, with the two-year down 2.5 Canadian cents to yield 1.404% and the 10-year falling 29 Canadian cents to yield 1.454%. The gap between Canada's two-year yield and its U.S. equivalent narrowed by 4 basis points to a spread of 33.6 basis points in favor of the U.S. bond, its smallest gap since February last year. Canada lost 16,000 jobs in May, the first decline in three months, as hiring fell in the construction sector, according to a report from ADP, a human resources company. (Reporting by Fergal Smith; Editing by Chizu Nomiyama and Peter Cooney)
Calculating The Fair Value Of George Weston Limited (TSE:WN) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! How far off is George Weston Limited (TSE:WN) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. See our latest analysis for George Weston We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (CA$, Millions)", "2019": "CA$1.21k", "2020": "CA$1.39k", "2021": "CA$1.24k", "2022": "CA$1.15k", "2023": "CA$1.10k", "2024": "CA$1.07k", "2025": "CA$1.06k", "2026": "CA$1.06k", "2027": "CA$1.06k", "2028": "CA$1.07k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Est @ -10.86%", "2022": "Est @ -7.02%", "2023": "Est @ -4.33%", "2024": "Est @ -2.45%", "2025": "Est @ -1.13%", "2026": "Est @ -0.21%", "2027": "Est @ 0.44%", "2028": "Est @ 0.89%"}, {"": "Present Value (CA$, Millions) Discounted @ 7.64%", "2019": "CA$1.13k", "2020": "CA$1.20k", "2021": "CA$990.27", "2022": "CA$855.42", "2023": "CA$760.31", "2024": "CA$689.06", "2025": "CA$632.93", "2026": "CA$586.79", "2027": "CA$547.54", "2028": "CA$513.21"}] Present Value of 10-year Cash Flow (PVCF)= CA$7.90b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. 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 (1.9%) 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 7.6%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CA$1.1b × (1 + 1.9%) ÷ (7.6% – 1.9%) = CA$19b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$CA$19b ÷ ( 1 + 7.6%)10= CA$9.19b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$17.09b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of CA$111.35. Compared to the current share price of CA$102.57, the company appears about fair value at a 7.9% discount to where the stock price trades currently. 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. 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. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. 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 George Weston 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 7.6%, which is based on a levered beta of 0.955. 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. Although the valuation of a company is important, 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. For George Weston, I've put together three fundamental factors you should further research: 1. Financial Health: Does WN 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 WN'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 WN? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the TSE every day. If you want to find the calculation for other stocks 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.
Zacks.com featured highlights include: OSI Systems, Hasbro, Stitch Fix, Asure Software and Under Armour For Immediate Release Chicago, IL – June 20, 2019 - Stocks in this week’s article are OSI Systems, Inc. OSIS, Hasbro Inc. HAS, Stitch Fix Inc. SFIX, Asure Software Inc ASUR and Under Armour Inc. UAA. Beyond Earnings Growth: Bet on Earnings Beats for These 5 Stocks Plain and simple earnings growth may no longer entice investors. Now, earnings improvement (no matter how big it is) seems inadequate for solid moves in the market. It is the “BEAT” that matters the most and leads one to a lucrative investment. What is Earnings Beat? A positive earnings surprise or earnings beat is typically the case when actual or reported earnings come in above the consensus estimate. Historically, if a company’s earnings manage to beat market expectations, its stock surges post release. This is because investors always try to take positions ahead of time and look for stocks that are likely to come up with stellar performances. Now, since Wall Street analysts project earnings of companies after much deliberation, their estimates act as investment leads. Why to Give Earnings Beat So Much of Precedence? After all, only earnings beat can give investors a clear picture of a company’s strength when an industry-wide earnings recession is felt. Also, a 20% earnings rise (though apparently looks good) doesn’t tell you everything about the company’s performance. This might represent decelerating earnings growth momentum over the years or quarters, raising questions over the company’s fundamentals. Also, seasonal fluctuations come into play at times. If a company’s Q1 is seasonally weak and Q4 is strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company. On the other hand, analysts put together their insights and a company’s guidance when giving an earnings estimate. Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as market perception. How to Find Stocks that Can Beat? Now, since it is difficult to foretell if a company will beat or miss in the upcoming earnings season, investors can check the earnings surprise history. An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s consistency in surpassing estimates. And investors generally believe that the company will have the same trick up its sleeve or in other words is smart enough to beat on earnings in its next release. For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/431379/beyond-earnings-growth-bet-on-beat-with-these-5-stocks 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. About Screen of the Week Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Strong Stocks that Should Be in the News Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>. Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Contact: Jim Giaquinto Company: Zacks.com Phone: 312-265-9268 Email: pr@zacks.com Visit: www.Zacks.com Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Click to get this free reportAsure Software Inc (ASUR) : Free Stock Analysis ReportOSI Systems, Inc. (OSIS) : Free Stock Analysis ReportUnder Armour, Inc. (UAA) : Free Stock Analysis ReportHasbro, Inc. (HAS) : Free Stock Analysis ReportStitch Fix, Inc. (SFIX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Auto Stock Roundup: F Recalls, HOG to Expand in China, WGO Beats on Q3 Earnings Recall issues continue to plague automakers. Ford Motor Company F was again embroiled in a recall mess. The auto giant announced the recall of 1.2 million Explorer sport utility vehicles in the United States because of a potential suspension link fracture issue.Motorcycle manufacturer, Harley-Davidson, Inc. HOG, unveiled plans to expand overseas and downsize at home this week. In fact, Harley inked a deal with China’s Zhejiang Qianjiang Motorcycle Co. to develop two new motorbike models. The aim is to sell the first bike in China by the end of 2020 and thereafter expand in other markets, including Thailand, Indonesia and India.In another development, Winnebago Industries Inc. WGO reported third-quarter fiscal 2019 results. Its earnings surpassed the Zacks Consensus Estimate and were higher than the prior-year quarter figure. Improved tax rate arising from Tax Cuts and Jobs Act (TCJA) and a change in estimates related to R&D tax credits aided its results.Recap of the Week’s Most Important Stories1. Ford made an announcement to recall 1.2 million Explorer sport utility vehicles in the United States because of a potential suspension link fracture issue, per Reuters. It is suspected that the glitch could lead to reduced steering control.The affected vehicles include 2011-2017 Explorers that could experience a fractured rear suspension to link that could increase chances of crash. The recalled vehicles were manufactured in the Chicago plant between May 2010 and January 2017.Frequent recalls for fixing faulty vehicles are concerns for Ford. Apart from elevating expenses for repairing faulty vehicles, recalls also hurt consumers’ confidence in a brand. Last month, the second largest U.S. automaker announced the recall of roughly 273,000 of Ford Ranger pickups and Fusion vehicles in North America. A transmission glitch can shift gear and roll the vehicle away if the gear is not in the "park" mode.Ford stated that costs of $180 million, which will be incurred by its North America business unit, will be included in the second quarter. However, the company still expects 2019 adjusted earnings before interest and taxes to be higher than the same in 2018. (Read more: Ford to Recall 1.2M Explorer SUVs for Steering Issue)Ford currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..2. Navistar International Corporation NAV recently announced plans to invest $125 million in new manufacturing facilities at its Huntsville, AL-based engine plant over the next three years.The company manufactures International brand diesel engines for trucks and buses in the Huntsville plant. The primary engine manufactured in the plant is International A26, a 12.4-liter big-bore engine used in Class 8 on-highway trucks as well as some vocational trucks.Notably, this investment will likely create 145 additional jobs in the company's Huntsville facility.The investment aids Navistar’s plans to manufacture next-generation big-bore powertrains developed with its global alliance partner — Traton — a subsidiary of Volkswagen. Through the Traton subsidiary, Volkswagen owns around 17% of Navistar. (Read more: Navistar to Invest $125M for Alabama Operation Expansion)Navistar currently carries a Zacks Rank #3 (Hold).3. Winnebago reported earnings of $1.14 per share in the third quarter of fiscal 2019 (ended May 25, 2019), beating the Zacks Consensus Estimate of $1.05. In the year-ago period, earnings were $1.02 a share. Net income rose 11.2% year over year to $36.2 million. Earnings were positively impacted by an improved tax rate arising from Tax Cuts and Jobs Act (TCJA) and a change in estimates related to R&D tax credits.Revenues in the reported quarter declined 5.9% to $528.9 million. The figure lagged the Zacks Consensus Estimate of $556 million.Operating income in the quarter under review rose 1.4% to $49 million. Gross profit improved to $86.6 million from $85.5 million a year ago.Revenues at the Motorized segment were down 34.6% to $160.2 million from a year ago. Adjusted EBITDA declined 96.7% to $0.4 million.Revenues at the Towable segment improved 10.8% to $346.8 million year over year. The upside was driven by strong organic growth across the Grand Design RV brand. Adjusted EBITDA was $57.2 million, up 26% from the prior-year quarter. Winnebago had cash and cash equivalents of $4.2 million as of May 25, 2019, compared with $39 million as of May 26, 2018.For the first nine months of fiscal 2019, the company’s cash flow from operations was $82.8 million, marking an increase of 21.8 million from the same period in fiscal 2018. Winnebago currently has a Zacks Rank #3.4. In an effort to boost the company’s production outside the United States, Harley-Davidson recently entered into an agreement with Chinese manufacturer — Zhejiang Qianjiang Motorcycle Co. — to produce small motorcycles for global markets.Per Bloomberg and Reuters reports, the motorbike models will be sold under Harley’s brand name. Remarkably, these bikes will feature an engine displacement of 338 cubic centimeters —one of the smallest-powered engine bikes in the company’s history. In fact, Harley’s existing motorcycles sold in the United States are bigger, with high price and engine capacities of more than 601 cubic centimeters.The new 338 cc models will likely be initially rolled out in China, one of the largest motorcycle markets, by the end of next year, before being introduced in other Asian countries.Qianjiang has experience in building premium smaller motorcycles, supply base with the knowledge of emerging markets. Qianjiang is a unit of Geely Holding Group, a Chinese company that owns Volvo cars.This partnership is aimed at capturing China’s huge bike and moped market, and is also in line with the company’s plan to cut costs and generate half of all sales outside the United States by 2027.Harley currently carries a Zacks Rank #3.PerformanceIn the past week, all the stocks except for Toyota Motor Corporation TM have improved. Tesla, Inc. TSLA stock gained the most.In the past six months, Tesla has declined the most while AutoZone, Inc. AZO recorded maximum gain. [{"Company": "GM", "Last Week": "3.1%", "Last 6 Months": "11.6%"}, {"Company": "F", "Last Week": "1.9%", "Last 6 Months": "24.8%"}, {"Company": "TSLA", "Last Week": "8.2%", "Last 6 Months": "-29.2%"}, {"Company": "TM", "Last Week": "-0.4%", "Last 6 Months": "9.9%"}, {"Company": "HMC", "Last Week": "0.7%", "Last 6 Months": "-0.4%"}, {"Company": "HOG", "Last Week": "1%", "Last 6 Months": "8.4%"}, {"Company": "AAP", "Last Week": "2.1%", "Last 6 Months": "1.6%"}, {"Company": "AZO", "Last Week": "1.4%", "Last 6 Months": "35.9%"}] What’s Next in the Auto Space?Watch out for the usual news releases over the next week.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportTesla, Inc. (TSLA) : Free Stock Analysis ReportFord Motor Company (F) : Free Stock Analysis ReportToyota Motor Corporation (TM) : Free Stock Analysis ReportAutoZone, Inc. (AZO) : Free Stock Analysis ReportNavistar International Corporation (NAV) : Free Stock Analysis ReportWinnebago Industries, Inc. (WGO) : Free Stock Analysis ReportHarley-Davidson, Inc. (HOG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Now May be the Right Time to Go Long on Steel The steel sector in the United State has experienced setbacks lately. The classic American steel producer, United States Steel (X, NYSE), reported on June 19 that it will close two Midwestern blast furnaces. A few days earlier, its American counterparts, Nucor (NUE, NYSE) and Steel Dynamics (STLD, NASDAQ), released mediocre Q2 earnings forecasts, signifcantly lower than analysts’ expectations. It should be noted that projections for 2019 were quite positive for the U.S. steel industry. The mining disaster in Brazil in January significantly lowered the supply of iron ore in world markets and was expected to generate a major rise in the price of steel. In addition, growing American dependence of steel imports should have helped the commodity as well. However, new developments in the international trade arena acted against expectations. The reduction or elimination of U.S. tariffs against Canadian and Mexican steel in May drove prices downwards. Decreasing automotive production and increased supply from scrap producers have also taken their toll on prices. In light of all of that, one would obviously expect steel stocks to drop. In reality, the opposite happened. Last Wednesday (June 19), United State Steel surged by 6%. The day before, on Tuesday, it closed 1% higher despite issuing Q2 EPS forecast of $0.40 – 23% lower than Wall Street’s forecast of $0.52. As to other steel producers, on Wednesday, Steel Dynamics skyrocketed closed morning trade 11.2% higher. Nucor managed to climb by 4.3%. On June 11,Curt Woodworthfrom Credit Suisse has given Nucor stock a buy rating and a price target of $58 with an upside potential of 6.91%. The current stock price stands at $54.25. All in all, the rally in steel stocks helped the Dow Jones gain 1.6%. The bullishness in the steel market was also felt outside the United States. India’s Tata Steel (TATASTEEL, NSE), for example, climbed 5%, abruptly ending a 4-day losing streak. From a yearly perspective, in 2019 steel stocks as a whole sank by 40% compared to 2018 mainly due to investors’ concerns that the growing trade war between the United States and China would cause global economic slowdown and would, consequently, lower demand for steel. Investors are now convinced that prices have reached a nadir from which they will only go up. Put it another way, the sector appears to be undervalued, enough to make it a profitable investment once again.
Should We Be Delighted With ACM Research, Inc.'s (NASDAQ:ACMR) ROE Of 20%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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. To keep the lesson grounded in practicality, we'll use ROE to better understand ACM Research, Inc. (NASDAQ:ACMR). Our data showsACM Research has a return on equity of 20%for the last year. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.20. View our latest analysis for ACM Research Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for ACM Research: 20% = US$11m ÷ US$56m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. That means ROE can be used to compare two businesses. 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. As you can see in the graphic below, ACM Research has a higher ROE than the average (14%) in the Semiconductor industry. That's clearly a positive. We think a high ROE, alone, is usually enough to justify further research into a company. For exampleyou might checkif insiders are buying shares. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. ACM Research has a debt to equity ratio of 0.23, which is far from excessive. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREEvisualization of analyst forecasts for the company. Of courseACM Research may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have 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.
Mila Kunis and Ashton Kutcher make Instagram video to rubbish rumours about them splitting up Mila Kunis and Ashton Kutcher at the Zoe Saldana Walk Of Fame Star Ceremony in 2018 (Alberto E. Rodriguez/Getty Images for Disney) Mila Kunis and Ashton Kutcher showed their sense of humour by making a hilarious video setting the record straight about split rumours. The couple’s relationship was the subject of a gossipy news story this week. But the pair took it in their stride, making a light-hearted Instagram video with the caption: “I guess it’s over.” The clip, shared on Kutcher’s account, shows the couple in a car together. Kunis is clutching a phone with a photo of the front cover of a celebrity magazine. View this post on Instagram A post shared by Ashton Kutcher (@aplusk) on Jun 19, 2019 at 6:52pm PDT “Baby, what’s going on, what’s happening?” Kutcher asks his wife of four years. Looking at the image, the Bad Moms actress replies: “It’s over between us.” “It’s OVER between us? Oh my God, what are we going to do?” Kutcher asks, feigning shock. Kunis, 35, then tells her husband that she apparently “felt suffocated”. “You felt suffocated by me?” said Kutcher, 41. “I was just so overbearing, wasn’t I?” Kunis adds: “Also, I took the kids… “You took the kids? I don’t get the kids any more?” asks Kutcher, before Kunis explains: “You had a very dark secret exposed.” “Oh my gosh! What was the dark secret?” he asks. When the actress says she doesn’t know what his secret was supposed to be, Kutcher replies: “It must have been really dark.” View this post on Instagram A post shared by Ashton Kutcher (@aplusk) on Apr 12, 2019 at 2:50pm PDT The post was captioned: “I guess it’s over @intouchweekly have fun selling magazines this week. “Maybe next week my wife will be having twins. For the third time. But who’s counting.” Read more: Mila and Ashton smooch on Kiss Cam Kunis and Kutcher tied the knot in 2015. The couple have two children together – a four-year-old daughter named Wyatt and a two-year-old son called Dmitri. Their video went down a storm with fans and celebrity friends including Demi Lovato, who posted on Instagram: “This is amazing. Miss y’all.” Actor Dax Shepard joked: “DAMNIT!!! I was gonna take a run at MK!!! I want a refund!”
Should Value Investors Pick Alaska Air Group (ALK) 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 putAlaska Air Group, Inc. ALK 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 RatioA 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, Alaska Air Group has a trailing twelve months PE ratio of 14.00, 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 18.13. If we focus on the long-term PE trend, Alaska Air Group’s current PE level puts it below its midpoint of 12.80 over the past five years. Moreover, the current level stands well below the highs for the stock, suggesting that it can be a solid entry point. Further, the stock’s PE also compares favorably with the Zacks Transportation sector’s trailing twelve months PE ratio, which stands at 15.66. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers. We should also point out that Alaska Air Group has a forward PE ratio (price relative to this year’s earnings) of just 10.81, which is higher than the current level. So, it is fair to expect an increase in the company’s share price in the near term.P/S RatioAnother 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, Alaska Air Group has a P/S ratio of about 0.94. This is a bit lower than the S&P 500 average, which comes in at 3.28x right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years. If anything, this suggests some level of undervalued trading—at least compared to historical norms.Broad Value OutlookIn aggregate, Alaska Air Group currently has a Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Alaska Air Group a solid choice for value investors, and some of its other key metrics make this pretty clear too.What About the Stock Overall?Though Alaska Air 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 ALK 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 mixed at best. The current year has seen one estimate go higher in the past sixty days compared to eight lower, while the next year estimate has seen two up and six down in the same time period.This has had a dismal impact on the consensus estimate though as the current quarter consensus estimate has dropped by 3.6% in the past two months, while the full year estimate has inched lower by 3.9%. You can see the consensus estimate trend and recent price action for the stock in the chart below: Alaska Air Group, Inc. Price and Consensus Alaska Air Group, Inc. price-consensus-chart \| Alaska Air Group, Inc. Quote Apart from this soft trend, the stock has just a Zacks Rank #3 (Hold) which is why we are looking for in-line performance from the company in the near term.Bottom LineAlaska Air Group is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. However, with a sluggish industry rank (among Bottom 43% of more than 250 industries) and a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past two years, the Zacks Transportation-Airline industry has clearly underperformed the broader market, as you can see below: So, value investors might want to wait for estimates and analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAlaska Air Group, Inc. (ALK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Why WVS Financial Corp. (NASDAQ:WVFC) Should Be In Your Dividend Portfolio Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is WVS Financial Corp. (NASDAQ:WVFC) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. While WVS Financial's 2.8% dividend yield is not the highest, we think its lengthy payment history is quite interesting. The company also bought back stock during the year, equivalent to approximately 3.2% of the company's market capitalisation at the time. Some simple analysis can reduce the risk of holding WVS Financial for its dividend, and we'll focus on the most important aspects below. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. WVS Financial paid out 22% of its profit as dividends, over the trailing twelve month period. We'd say its dividends are thoroughly covered by earnings. Consider gettingour latest analysis on WVS Financial's financial position here. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. WVS Financial has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. This dividend has been unstable, which we define as having fallen by at least 20% one or more times over this time. During the past ten-year period, the first annual payment was US$0.64 in 2009, compared to US$0.48 last year. This works out to be a decline of approximately 2.8% per year over that time. WVS Financial's dividend has been cut sharply at least once, so it hasn't fallen by 2.8% every year, but this is a decent approximation of the long term change. We struggle to make a case for buying WVS Financial for its dividend, given that payments have shrunk over the past ten years. With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. It's good to see WVS Financial has been growing its earnings per share at 24% a year over the past 5 years. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. To summarise, shareholders should always check that WVS Financial's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're glad to see WVS Financial has a low payout ratio, as this suggests earnings are being reinvested in the business. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Overall we think WVS Financial is an interesting dividend stock, although it could be better. See if management have their own wealth at stake, by checking insider shareholdings inWVS Financial stock. We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%. 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.
Global wealth barely grew in 2018, hit by 'ripple effect' from stocks: Study Business Finance, accounting, contract, advisor investment consulting marketing plan for the company with using tablet and computer technology in analysis. Last year’s steep drop in markets — which picked up speed during the fourth quarter — was a substantial drag on global wealth, which grew at its slowest rate in five years, according to a new report. The Boston Consulting Group’s annual global wealth report found that the world’s wealth rose by a slim 1.6% to $205.9 trillion in 2018, far below the 7.5% rate seen in 2017. The “ripple effect” from the worst stock market in 20 years hit high-net worth individuals (HNWI), and undercut wealth managers’ ability to turn a profit, BCG noted. Regions with the heaviest equity exposure were hit hard. For example, North America saw personal wealth drop 0.4% in 2018, while Japan suffered from negative year on year growth of -1.3%. Meanwhile, Asia as a whole bore the brunt of the world’s financial woes, as asset growth there swooned from a 2017 high of 11.5% to 7.1% in 2018. “The big question now, of course, is whether the pullback in wealth growth is a precursor to deeper changes,” the firm’s analysts wrote. “Analysis of major segments, markets, and wealth manager performance suggests that a number of shifts are underway,” they said — which include big gains in wealth accumulation outside of North America. Despite last year’s tumult, BCG found that the past five years had led to a “substantial increase” in worldwide wealth, which grew by a compounded annual growth rate of 5.5%. Investable assets, which include stocks, funds, currencies and bonds, now account for 59% of all personal financial assets, according to the report — or $122 trillion. Meanwhile, certain global demographic wealth shifts are favoring countries other than the U.S. and Canada. “Although most of the world’s millionaires currently live in North America, the fastest growth in personal financial wealth is occurring elsewhere,” BCG’s report found. “By 2023, revenue pools of the private banking channel in Asia could equal or exceed those of Western Europe,” it said. And while high-net-worth individuals still maintain a grip on the largest share of the world’s wealth, “the middle band of affluent households will also grow significantly over the next five years,” analysts wrote. Story continues “This often-overlooked segment—with its $18 trillion in assets under management (AuM)—is a golden opportunity for wealth managers willing to tailor their service and coverage models to clients’ needs,” BCG said. Asia holds big promise The regions of Latin America, Eastern & Central Asia, the Middle East and Africa are all also expected to increase in growth within the next 5 years. However, analysts stated that Asia’s size and rapid growth make it a strategic market. If the country’s wealth continues to grow, the region’s private banking revenue can become as big as Europe by 2023, BCG stated. “While competition for wallet share is not likely to be as fierce as in Asia, ongoing political and regulatory uncertainties could create volatility,” they wrote. “Consequently, we recommend that wealth managers invest in a limited number of growth market plays, taking care not to overreach, in light of limited resources and the need to develop dedicated coverage models and offerings,” they added. A challenge to wealth managers Capitalizing on new opportunities will require wealth managers to step up their respective games, according to BGC. “To navigate this changing environment and create a strong bottom line, wealth managers must reignite growth. The most successful will take their business models to the next level by focusing on high-growth opportunities,” and using data and analytics to sharpen their pitches, the firm’s analysts said.. “Surface-level changes will not suffice,” they added. Donovan Russo is a writer for Yahoo Finance. Follow him @Donovanxrusso . Follow Yahoo Finance on Twitter , Facebook , Instagram , Flipboard , LinkedIn , and reddit .
CANADA STOCKS-TSX eyes sixth day of gains on boost from mining stocks June 20(Reuters) - Mining stocks drove Canada's main stock index to a seven-week high on Thursday as gold prices surged following a more dovish than expected stance from the U.S. Federal Reserve. * At 9:40 a.m. ET (13:40 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 70.9 points, or 0.43%, at 16,582.69. * The index was set to rise for the sixth consecutive session. * Meanwhile, the U.S. benchmark S&P 500 index hit a record intraday high as investors took comfort from signs that the Fed could cut interest rates as soon as next month to counter growing risks to global and domestic growth. * Seven of the TSX's 11 major sectors were higher, led by the materials sector which added 2.2%. * The sector, which includes precious and base metals miners, was helped by gold prices, which hit a more than five-year high. Silver prices also rose more than 1.5%. * The energy sector also climbed 1.6% tracking a surge in oil prices as Iran shot down a U.S. military drone, raising fears of a military confrontation between the two countries. * U.S. crude prices were up 4.5% a barrel, while Brent crude added 3.4%. * The interest-rate sensitive financials sector slipped 0.1%. * On the TSX, 167 issues were higher, while 67 issues declined for a 2.49-to-1 ratio favouring gainers, with 28.78 million shares traded. * The largest percentage gainers on the TSX were Iamgold Corp, which jumped 10.0% and Yamana Gold Inc, which rose 7.8%. * Hudson's Bay Co fell 1.7%, the most on the TSX. The second biggest decliner was Nexgen Energy Ltd, down 1.0%. * The most heavily traded shares by volume were Prometic Life Sciences Inc, Fortuna Silver Mines Inc and Yamana Gold. * The TSX posted 21 new 52-week highs and no new low. * Across all Canadian issues there were 81 new 52-week highs and six new lows, with total volume of 58.45 million shares. (Reporting by Medha Singh in Bengaluru Editing by Saumyadeb Chakrabarty)
Alliance Growers Corp. (CNSX:ACG) Insiders Increased Their Holdings Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. 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 shareholders might well want to know whether insiders have been buying or selling shares inAlliance Growers Corp.(CNSX:ACG). It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required. We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. See our latest analysis for Alliance Growers Director Ian Lambert made the biggest insider purchase in the last 12 months. That single transaction was for CA$85k worth of shares at a price of CA$0.20 each. That means that even when the share price was higher than CA$0.055 (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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Ian Lambert. Notably Ian Lambert was also the biggest seller, having sold CA$110k worth of shares. Ian Lambert bought a total of 1.2m shares over the year at an average price of CA$0.12. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below! 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). We have seen a bit of insider selling at Alliance Growers, over the last three months. The selling netted CA$17k for Ian Lambert. But at least we saw CA$3.0k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Alliance Growers insiders have about 3.5% of the stock, worth approximately CA$163k. We prefer to see high levels of insider ownership. Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. 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 Alliance Growers stock.I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. 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.
Apple, Keurig Dr Pepper, Dollar Tree, Fitbit press U.S. to drop China tariff plan By Chris Prentice NEW YORK (Reuters) - Apple Inc, Keurig Dr Pepper Inc, Dollar Tree Inc and Fitbit Inc have joined other companies in filing letters of opposition to a Trump administration plan for more U.S. tariffs on Chinese goods, including iPhones, MacBooks, and single-serve coffee brewers. The United States and China are resuming talks to end a trade war after more than a month's hiatus. The countries' leaders are expected to meet at the G20 summit in Japan next week. U.S. President Donald Trump had said he would consider extending tariffs to another $300 billion of Chinese goods if his meeting with Chinese President Xi Jinping does not yield progress on the trade dispute. The new round of tariffs would reduce Apple's competitiveness and cut the contribution it could make to the U.S. Treasury, Apple said in an online filing on Thursday. Apple said in the document it is the largest U.S. corporate taxpayer to the U.S. Treasury and reiterated its 2018 pledge to directly contribute over $350 billion to the U.S. economy over five years. Apple said it would also take a hit because Chinese and other non-U.S. firms do not have a significant U.S. market presence. "A U.S. tariff would, therefore, tilt the playing field in favor of our global competitors," Apple said. The levies would also hit AirPods, Apple TVs and batteries and parts. Some of these products were spared from the previous round of tariffs imposed last September on $200 billion worth of Chinese goods, but were put back on the list when Trump decided to prepare tariffs on virtually all remaining imports from China. Officials are in the fourth of seven days of hearings for U.S. manufacturers, retailers and other businesses to weigh in on the tariff plan. Many individuals and companies have also filed letters and comments to the U.S. Trade Representative in an online docket https://www.regulations.gov/docketBrowser?rpp=25&so=DESC&sb=commentDueDate&po=0&D=USTR-2019-0004. COMPLAINTS LIST GROWS Coffee and beverage firm Keurig Dr Pepper and technology giant Apple are the latest in a growing list of U.S. companies pressing the Trump administration to abandon plans to impose tariffs of up to 25% on another $300 billion of Chinese imports. Air conditioner maker Carrier Inc, a unit of United Technologies Corp, said the latest round of tariffs on air conditioner parts "will result in significant price increases for U.S. consumers of U.S.-manufactured HVAC equipment," making them less likely to replace older, inefficient systems. The company said it would take 12 to 18 months to find alternative parts sources, and higher costs may force it to exit lower-priced segments of the air conditioning market. Companies such as Dell Technologies Inc, HP Inc, and Walmart Inc have already voiced their opposition. Wearable device maker Fitbit Inc in a letter said tariffs would result in a competitive advantage for Chinese device makers in the U.S. market, sparking "national security concerns by placing sensitive U.S. health, location and financial data within the Chinese government's reach." Chinese rivals are willing to sacrifice profits to gain market share "in a manner that U.S. companies like Fitbit cannot afford," it said. FROM COMPUTERS TO K-CUPS Some 88 percent of all coffee brewers sold in the United States are imported from China, Keurig counsel said in its public comments. The company's own brewers are in over 28 million homes and used in more than 1 million hotel rooms, the letter to the U.S. Trade Representative's Office said. "This is significant, for the manufacturers directly affected and coffee-drinking U.S. consumers who will have no choice but to pay higher prices for coffee brewers, or forgo their daily morning brew," the company said. Many U.S. companies rely on China to source a vast array of products. Finding alternative suppliers will raise costs, in many cases more than the 25% tariffs, some witnesses have this week told a panel of officials from USTR, the Commerce Department, State Department and other federal agencies. The proposed list, which will be ready for a decision by Trump as early as July 2, includes nearly all consumer products. It has been loudly opposed by retailers like Dollar Tree, which is one of the top 50 U.S. employers and seventh largest importer, the company said in its public comments. "Simply put, the imposition of an additional 25% duty on the types of everyday, household products that we offer will have a significant and disproportionate negative impact on middle- and low-income American households," Dollar Tree said. The tariffs could also hit Christmas sales hard, particularly cellphones, computers, toys and electronic gadgets. (Additional reporting by David Lawder; editing by Simon Webb and Jonathan Oatis)
Pier 1 Imports' 1-for-20 Reverse Stock Split Takes Effect Pier 1 Imports Inc(NYSE:PIR) announced a 1-for-20 reverse stock split Wednesday to regain compliance with New York Stock Exchange listing standards. The company’s board of directors formally authorized a 1-for-20 reverse stock split of Pier 1’s common stock effective Thursday. Pier 1 said 53,284,243 votes were cast in favor of the proposal, representing 62.67% of the company’s outstanding shares entitled to vote at the 2019 annual meeting of shareholders. The reverse stock split will reduce the number of shares of common stock issued and outstanding from 84,990,884 to 4,249,544. The authorized number of shares of common stock will be reduced by a corresponding ratio to 25 million. Pier 1 Imports common stock will trade on the NYSE on a split-adjusted basis under a new CUSIP number, 720279504. Pier 1 shares were trading at $11.75 at the time of publication Thursday. Related Links: Alibaba Proposes Stock Split To 'Increase Flexibility' Ahead Of Capital Market Activities The Best Stock Split Calendar APIs Photo bySteve Morgan via Wikimedia. See more from Benzinga • Jensyn Acquisition Shareholders OK Merger With Peck Electric • Vera Bradley To Acquire Majority Ownership Of Pura Vida For M • Kroger Reports Q1 Earnings Beat © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
4 Insurance Picks As Fed Keeps Rate Unchanged, Hints Rate Cut As expected, the Federal Reserve kept interest rate unchanged within its target range of 2.25% to 2.5% in its two-day June FOMC meeting that concluded on Jun 19. New projections indicate that the Fed might lower rate in 2020. Per reports, at least eight Fed members expect a rate cut by 2019.Dissatisfying trade negotiations and data pointing to a softening economy could lead to a rate cut, per Fed chair Jerome Powell. He backed the central bank’s decision with an intention “to sustain the economic expansion, with a strong job market and stable prices, for the benefit of the American people.”Major indexes, namely S&P 500, Nasdaq and Dow Jones Industrial Average gained in yesterday’s trading session. However, the benchmark 10-year U.S. Treasury yield slid about 2% post the Fed’s hint of lowering interest rate.Fed officials expect 2019 interest rate at 2.4%, unchanged from its March FOMC meeting. However, interest rate projection for 2020 and 2021 has been revised down. For 2020, the rate is now projected to be 2.1%, down from 2.6% while for 2021, the rate is projected to be 2.4% from 2.6% expected earlier. The same should be 2.5% over the long haul, down from 2.8% forecast at the meeting held in March.The Fed also provided an updated view on unemployment. Fed officials expect the unemployment rate at 3.5% for 2019, 3.7% for 2019 and 3.8% for 2020. These projections have been lowered from 3.7%, 3.8% and 3.9% respectively projected at its March FOMC meeting despite a strong labor market. Over the longer term, unemployment rate is estimated to be 2.5%, down from 2.8% expected earlier.A spurt in employment shows average increase of 0.15 million in jobs over the past three months. However, per U.S. Bureau of Labor Statistics, unemployment rate was 3.6% in May, down from 3.8% in the year-ago month.GDP projections remained unchanged from its March meeting. Fed expects GDP for 2019, 2021 and for the longer term to be 2.1%, 1.8% and 1.9% respectively. However, only for 2020, Fed officials expect GDP to rise to 2% from the earlier projection of 1.9%.Inflation is expected to be about 1% in 2019, 1.9% in 2020 and 2% in 2021. Fed chair Powell stated “Inflation has been running somewhat below our objective, but we have expected it to pick up, supported by solid growth and a strong job market.”He also added “in light of increased uncertainties and muted inflation pressures, we now emphasize that the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its 2% objective.”Insurers are major beneficiaries of a rising rate environment because of their sensitivity to interest rates stand strong amid uncertainties, given their strong fundamentals. Strong capital level, a not-so-active catastrophe environment, stringent underwriting standards, better pricing, improved product and services and increased adoption of technologies are positives. Year to date, the insurance industry has rallied 9.4%.4 Best Insurance Stocks in the Current ScenarioAmid such a macro backdrop, investors may like to add stocks with strong fundamentals and potential to generate better yields.It’s an intimidating task to zero in on underpriced stocks with high growth potential. The Zacks Stock Screener makes this work relatively simpler. The selected stocks carry a favorable Value Score and Growth Score of A or B.Value Score helps investors identify undervalued stocks. This deviation from their fair value is what creates an exceptional upside opportunity. Growth Score analyzes a company’s growth prospects and also evaluates its corporate financial statements.Mayfield Village, OH -basedThe Progressive CorporationPGR provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. The stock has a Value Score of B and a Growth Score of A. It carries a Zacks Rank # 2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Its shares have rallied 35.5% year to date, outperforming the industry’s increase. Bloomfield, CT -basedCigna CorporationCI a health service organization, provides insurance and related products and services in the United States and internationally. The stock has a Value Score of A and a Growth Score of B. It carries a Zacks Rank # 2.Its shares have lost 15.7% year to date against the industry’s increase. Philadelphia, PA -basedRadian Group Inc. RDN engages in the mortgage and real estate services business in the United States. The stock has a Value Score of A and a Growth Score of B. It carries a Zacks Rank #2.Shares have rallied 42.6% year to date, outperforming the industry’s increase. West Des Moines, IO -basedAmerican Equity Investment Life Holding CompanyAEL provides life insurance products and services in the United States. The stock has a Value Score of A and a Growth Score of B. It carries a Zacks Rank # 2.Shares have lost 2.6% year to date against the industry’s increase. Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportRadian Group Inc. (RDN) : Free Stock Analysis ReportAmerican Equity Investment Life Holding Company (AEL) : Free Stock Analysis ReportCigna Corporation (CI) : Free Stock Analysis ReportThe Progressive Corporation (PGR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Introducing Xenetic Biosciences (NASDAQ:XBIO), The Stock That Collapsed 98% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Anyone who heldXenetic Biosciences, Inc.(NASDAQ:XBIO) for five years would be nursing their metaphorical wounds since the share price dropped 98% in that time. And it's not just long term holders hurting, because the stock is down 84% in the last year. Furthermore, it's down 70% in about a quarter. That's not much fun for holders. We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson. See our latest analysis for Xenetic Biosciences Given that Xenetic Biosciences didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth. You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow). Thisfreeinteractive report on Xenetic Biosciences'sbalance sheet strengthis a great place to start, if you want to investigate the stock further. While the broader market gained around 5.0% in the last year, Xenetic Biosciences shareholders lost 84%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 53% over the last half decade. 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. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow. 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 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.
What Are You Prepared To Do Today?: RaceAhead Last night I attended a Juneteenth celebration hosted by Refinitiv, and participated on a panel with Tamika Mallory, Activist & Co-Chair of the Women’s March,Matthew Washington, Deputy Borough President of Manhattan, and moderated by the great Conway Gittens from Reuters. It was attended by a group of mostly black professionals from Companies You’ve Heard Of, a powerful reminder of how far some of us have come, and how much more work there is to do. They were spectacular. Both Tamika and Matthew spoke passionately about their work in organizing and community, and the deep responsibility they felt to educate allies by being the voice for people who are left out of the vital conversations that can determine their fates. For so many, Juneteenth never comes. It was a reminder that we all can be allies for each other. But what was true for so many who attended was the weight of being “the only one” in the room at work. It is a strange bit of business to try to excel in a competitive world while being the living embodiment of the business case for diversity. To be the explainer. The cajoler. The one who points out bias in a person who could end their careers. It was an opportunity to put down the weight for a spell, look at it, acknowledge it, and then pick it up anew. While I can’t recreate that experience for you, I bet Michael Tubbs can. He’s become an extraordinary figure. As the mayor of Stockton, Calif., he’s the youngest one for a city with over 100,000 people. (He was also onFortune’s2018 40 Under 40 list.) He is also a person who found himself in a series of rooms he didn’t expect to be in, and struggled with the weight of it…until he didn’t. In this extraordinary TED Talk, called “The Political Power of Being a Good Neighbor,” he talks about the moment he found out his cousin Donnell had been shot and killed at a house party. “What was the point of me being at Stanford, what was the point of me being [an intern] at the White House if I was powerless to help my own family?” he asked. undefined The rest of his talk will take you to church, in the best possible way, and I cannot recommend it highly enough. He ends with a powerful question that helped frame my experience of last night and the work that I hope to do today and every day. “What are we prepared to do today,so that a child born today, 50 years from nowisn’t born in a society rooted in white supremacy;isn’t born into a society riddled with misogyny;isn’t born into a society riddled with homophobia and transphobiaand anti-Semitism and Islamophobia and ableism,and all the phobias and -isms?” Whatever you’re preparing to do, I see you and appreciate you. 1. On PointThe pay gap between black and white tech talent widens Hired, a marketplace for tech talent and employers, has just released its now annual review of tech worker salaries across the globe. While San Francisco currently offers the highest average salary at $145,000, pay for tech workers in Austin, Boston, Toronto, Paris and Washington, D.C. have grown year over year. (But if you’re a techie in Austin, you also get the most living bang for your working buck.) In a troubling trend, the wage gap between black tech workers and their white colleagues has widened by $5,000 since last year. For the first time, Asian tech workers are out-earning their white counterparts by $2,000 on average. Salary offers by race are on average, $137,00 for Asian workers, $135,00 for white workers, $128,00 for Hispanic workers, and $124,000 for black ones. Click through for the fascinating details. Oh, and you’re probably going to regret paying up for that advanced degree.HiredAdidas has a race problem It’s certainly not with the roster of black celebrities who have endorsed the brand and given it authentic cachet. But inside the apparel giant, black employees say that they’re marginalized, discriminated against and outnumbered. This piece fromThe New York Timesrelies on more than twenty interviews with current and former employees, and describes a workplace that many will find familiar: A leadership team that’s a white enclave, insensitive to issues of race and inclusion. And how about this business case for diversity: “[A]n overall lack of racial diversity…meant it was not uncommon for negative stereotypes to creep into work discussions or marketing pitches involving black athletes, sometimes creating backlash outside the company.”New York TimesThe New York Theological Seminary has its first black woman president Praise up forRev. Dr. LaKeesha Walrondwho will be the first black woman to lead the storied organization in its 119-year history. “It’s exciting, but you wonder why and how did it take so long,” she told WNYC. The organization’s guiding priniciple is “urban ministry,” which hasn’t always meant black. But it does mean ministering to the masses. “Like the mental health issue, like mass incarceration, issues of hunger and and homelessness…where we see people on the ground doing the work to make sure that everyone has the same access and is able to move forward in a way that’s beneficial — not only to themselves, but to the community and to the world.”WNYCThe state of Alabama has its first black woman brewer While Railyard Brewing Co.’sAirelle “Airie” Petersmay be alone in Alabama, she’s also largely alone in the industry. That’s the subject of this often-hilarious conversation between Peters andRen Navarro, a famous figure in the Ontario beer community and founder of advocacy communityBeer-Diversity. “I still don’t see a lot of women like me in the beer industry. We’re here and we drink beer, but why aren’t we represented?” says Peters. “We all drink it. But when you go to a spot where there’s a sales rep and a brewer, suddenly we’re not represented in these numbers,” says Navarro. Beer tea is also spilled. Commenting on a recent federal lawsuit claiming racial discrimination against Founders,a Michigan-based brewer, Navarro mentions meeting their hastily hired new diversity director —a black queer woman. “Good luck with that,” Navarro told her. “Yeah, I know,” she responded.Oct.co 2. On BackgroundWhat is a moral budget?Common Dreams,a progressive media outlet, has put together a good explainer of the Poor People’s Campaign most recent testimony before the House Budget Committee in an attempt to draw policy-makers toward action against systemic poverty. Rev. Dr. William Barber, co-chair of the group said that 140 million poor and low-income Americans live desperate lives that are a “direct result of policy decisions” that are “supported by well-funded myths.” Solutions involve addressing “interlocking injustices” which include strengthening voting rights and expanding Medicaid. “Budgets reflect our deepest values and priorities. And we are here to say that our nation’s budget as it now stands reflects the values of the rich, large corporations, and military contractors at the expense of the poor,” said co-chair Rev. Dr. Liz Theoharis.Common DreamsWhy white people often react badly to diversity training This dispatch is from Robin DiAngelo, the former academic and current diversity training facilitator who may be best known for illuminating the concept of “white fragility.” While the defensiveness many white people feel when confronted with their complicity in racial bias – a condition to which everyone is subject – is real, it also tends to manifest in training situations in some predictable ways and gives real world examples. “[W]hite people’s moral objection to racism increases their resistance to acknowledging complicity with it,” she says. But not wrestling with the quandry is problematic. “White fragility functions as a form of bullying: ‘I am going to make it so miserable for you to confront me that you will simply back off.’”MediumSpeaking other languages shifts ethics and morals in interesting ways If you feel, even subtly, that you’re a slightly different person when you speak or think in another language, you may be on to something. Recent studies suggest that when people are confronted with moral dilemmas, they respond differently when considering them in a foreign language than when using their own. If you feel, even subtly, that you’re a slightly different person when you speak or think in another language, you may be on to something. “When we use a foreign language, we unconsciously sink into the more deliberate mode simply because the effort of operating in our non-native language cues our cognitive system to prepare for strenuous activity,” reports Julie Sedivy.Scientific AmericanTamara El-Waylly helps produce raceAhead and assisted in the preparation of today’s summaries. 3. QuoteWe grant that Mr. McConnell was not alive for Appomattox. But he was alive for the electrocution of George Stinney. He was alive for the blinding of Isaac Woodard. He was alive to witness kleptocracy in his native Alabama and a regime premised on electoral theft. Majority Leader McConnell cited civil rights legislation yesterday, as well he should, because he was alive to witness the harassment, jailing, and betrayal of those responsible for that legislation by a government sworn to protect them. He was alive for the redlining of Chicago and the looting of black homeowners of some $4 billion. Victims of that plunder are very much alive today. I am sure they’d love a word with the majority leader.—Ta-Nehisi Coates
Millennials Are Not Basement-Dwelling Potheads, Says Wealthfront CEO Contrary to popular belief, millennials are “not all sitting in their basements smoking weed all the time.” That’s according to Wealthfront co-founder and CEO Andy Rachleff, who was joined by Venmo general manager Amit Jhawar atFortune’s inaugural Brainstorm Finance conference in Montauk, N.Y. on Wednesday for a discussion on how today’s financial services companies are meeting the needs of their millennial customers. AsFortune’s Jen Wieczner noted, Wealthfront’s millennial client base has a reputation for not being the most savings-conscious demographic—which would make the automated investment adviser’s recent move to hike the interest rate on its online-only cash savings account to a market-leading 2.51% a somewhat curious one. But Rachleff was quick to describe the characterization of millennials as basement-dwelling potheads as “a false narrative.” “They’re actually in the most productive stage of their lives [right now],” Rachleff said of the generation he described as being born between 1980 and 1995. “They’re in the wealth accumulation phase of their lives, and offering the highest [interest] rate makes it a no-brainer to engage with Wealthfront, and that’s worked out exceptionally well for us beyond our wildest expectations.” As a generation brought up during the worst financial crisis since the Great Depression, millennials “are a little more wary of financial markets” and “tend to be a little more conservative” than previous generations, according to Rachleff. So Wealthfront found that “leading with an FDIC-insured, high-yield cash account was the best way to engage” with younger customers, to whom the firm is marketing what Rachleff calls a “self-driving money vision.” Jhawar, meanwhile, gave his thoughts on Facebook’s venture into the world of cryptocurrency via Libra, which predictably has been a hot-button topic in Montauk this week. PayPal, Venmo’s parent, is among the major tech players that have signed on to partner withFacebookon deploying Libra—an interesting development, Wieczner noted, since some have already floated the idea that Libra could be a competitor of Venmo. “We’re still trying to figure out the charter of Libra, but we’re really interested in the blockchain and technology that, when you start aggregating some of the large players in the space, can simplify financial transactions,” Jhawar said. Contrary to competing with Facebook’s new coin, Jhawar pointed out that “the nice thing [about] being part of PayPal is that we get to piggyback on anything they do.” “I don’t think that Venmo will be driving the strategy [with Libra], but I do think we will piggyback on anything we find successful,” he added. But Jhawar was more skeptical about the prospect of Venmo deploying blockchain technology of its own in the near future. “I don’t foresee that, from my vantage point, at this point in time,” he said. —Brainstorm Finance 2019: Watch the livestreamof the inaugural conference —Bank of America CEO: “We want acashless society” —Tala CEO: HowFacebook’s Libra cryptocurrencycan help companies scale —Charles Schwab CEO: Actually, we’rekilling it with millennials —Listen to our new audio briefing,Fortune500 Daily Sign up forThe Ledger, a weekly newsletter on the intersection of technology and finance.
Before You Buy Accord Financial Corp. (TSE:ACD), Consider Its Volatility Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Accord Financial Corp. (TSE:ACD) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price. View our latest analysis for Accord Financial Looking at the last five years, Accord Financial has a beta of 0.81. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Accord Financial's revenue and earnings in the image below. Accord Financial is a noticeably small company, with a market capitalisation of CA$83m. Most companies this size are not always actively traded. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It's worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded. Since Accord Financial is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments. It could pay to take a closer look at metrics such as revenue growth, earnings growth, and debt. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Accord Financial’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Future Outlook: What are well-informed industry analysts predicting for ACD’s future growth? Take a look at ourfree research report of analyst consensusfor ACD’s outlook. 2. Past Track Record: Has ACD been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of ACD's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how ACD measures up against other companies on valuation. You could start with thisfree list of prospective options. 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.
Facebook's Libra Cryptocurrency and Its Generational Divide — Data Sheet Facebook’s Libra announcement notwithstanding, a generational divide—attributed more to commercial interests than age—remains between Team Blockchain/Cryptocurrencies and Team Traditional Finance. Over and over atFortune’s inaugural Brainstorm Finance conference in Montauk, N.Y., Wednesday the chasm was clear. One side believes nearly religiously in a future that is nifty but has demonstrated next to zero utility. The other side is happy to listen, thank you very much, but in the meantime intends to carry on with the business of lending, financing, facilitating payments and so on, all the better if digital tools can be cleverly applied to the task at hand. Some examples, mostly from the don’t-fix-it-if-ain’t-broke crowd: undefined My quick observations merely skim the surface of everything we discussed Wednesday. Please see the rest of thecoverage here. And please take a moment to read thecover story for the July issueofFortune, a highly readable account by Aric Jenkins about what has gone wrong—and what may yet go right—with virtual reality. Adam Lashinsky@adamlashinskyadam_lashinsky@fortune.com 1. NEWSWORTHYLet’s talk Libra.The U.S. Senate Banking Committee is planning a hearing on Facebook’s new Libra cryptocurrency on July 16 at which the social network’s blockchain chief David Marcus is expected to testify, according toReuters. Among the topics of discussion: digital privacy.Wall Street chatter. Workplace chat app company Slack will begin trading on the New York Stock Exchange on Thursday, theWall Street Journalreported. The startup, with a $15.7 billion valuation, joins Spotify as the second major company to forgo an IPO in favor of a so-called direct listing.YouTube under fire. YouTube is feeling the heat from a Federal Trade Commission investigation over the video service’s alleged violations over children’s privacy,The Washington Postreported. The investigation was spurred by complaints from privacy advocates and consumer advocacy groups who were upset that YouTube possibly violated the Children’s Online Privacy Protection Act “that forbids the tracking and targeting of users younger than age 13.”Light bright. Amazon unveiled a new version of its Kindle Oasis e-book reader that has a new adjustable lighting feature for day-or-night reading,reportsCNET. An 8 GB version of the device will cost $250 while a 32 GB version will cost $280.Oracle beats expectations. Database giant Oracle’s overall sales were up 1% year-over-year to $11.14 billion in its fiscal 2019 fourth quarter, which beat analyst expectations of $10.93 billion, CNBCreported. Oracle’s shares jumped nearly 7% as a result of the earnings beat. 2. FOOD FOR THOUGHTIt keeps getting worse. The Verge published aharrowing accountof the abysmal working conditions at a Facebook content-moderation site in Tampa, Fl. The report details how the content moderators, who worked for the IT outsourcing company Cognizant, dealt with a litany of problems like bed bugs, sexual harassment, and physical fights. One worker died on the job from a heart attack:undefined 3. IN CASE YOU MISSED ITApple Is Partnering With Best Buy for Repairs. Is That Enough to Fix Consumers’ Complaints?by Lisa Marie SegarraAlphabet Executives Confronted By Frustrated Employees at Shareholder Meetingby Danielle AbrilTala CEO: How Facebook’s Libra Cryptocurrency Can Help Companies Scaleby Robert Hackett 4. BEFORE YOU GOMicrosoft’s antitrust “tips.”Bloomberg News examinesthe epic antitrust case against Microsoft two decades ago, and some of the technology giant’s missteps fighting the charges and attempting to control public perception. Today’s tech titans like Facebook, Google, Amazon, and Apple that are under fire from regulators, could learn what not to do by studying Microsoft’s blunders.undefinedThis edition of Data Sheet was curated byJonathan Vanian. Findpastissues, and sign up for other Fortunenewsletters.
Could the UK still nationalise British Steel after its collapse? Workers leave the steelworks plant in Scunthorpe. Photo: Press Association EU rules make it “difficult if not impossible” to nationalise firms like British Steel after they fail, according to a legal expert. But he said European state aid rules do not prevent earlier intervention to keep such firms profitable, re-igniting the debate over whether British Steel's collapse could have been prevented. The government has faced repeated calls for intervention as the industry has struggled in recent years, amid lower global demand, increased trade barriers and rising energy bills. The opposition Labour party and trade unions demanded complete nationalisation of British Steel when it went into administration in May, putting thousands of jobs at risk. Staff have been kept on and the firm is continuing to trade despite going into forced liquidation. The government’s insolvency service is currently weighing up bids for the business, with dozens of companies reported to have expressed interest. READ MORE: 25,000 jobs at risk as British Steel battles for survival The government has repeatedly said European rules on state aid restrict its ability to step in, even though it previously loaned Scunthorpe-based British Steel £120m and provided funds in administration to keep it running. Competition experts at the law firm DWF LLP said EU rules made nationalisation of failing firms difficult⁠ — but did allow state aid to more viable companies. Jonathan Branton, a partner at DWF, told peers at a Westminster committee hearing on state aid: “You can’t go in and bail out a failing steel producer.” Branton told peers the government would need to show it was acting like a commercial investor to be allowed to intervene, with a “thought-through business plan” and rationale for a turnaround that could make it profitable. He said such an outcome was “not excluded” on principle, but would be hard to prove for British Steel, “basically an organisation that’s failing.” READ MORE: The big hole in Boris Johnson’s Brexit trade deal palns Story continues But Branton said the rules did allow governments to step in much earlier and try to stop such firms running into trouble in the first place. “Earlier on in that cycle, there are things you can do. There is room for manoeuvre in state aid rules. What you can do within the steel sector is look at other things like research and development, environmental measures, investment in training. “With some constructive and imaginative use of those facilities, there certainly are ways you can aid the steel industry,” he said. He said he could not say if British Steel’s collapse could have been avoided through such support, as the full details of the government’s offers of support may not be publicly known. READ MORE: UK government ‘does not know’ if aid spending value for money Jonathan Branton of DWF LLP. Branton also pointed out British state aid to firms was just a third of the level of German intervention, calling the UK “squeamish” about state support compared to the rest of Europe. He said arguments over EU rules were “irrelevant” if governments were in reality unwilling to intervene by putting “cash on the table.” Branton also outlined how Britain would be free to intervene far more proactively in most industries if the UK left the EU without a deal, with UK officials preparing to take over state aid regulation from Brussels. Economists have warned a no-deal Brexit could be devastating for the steel sector, however. Branton said there could be “winners and losers” from a new state aid regime and that any break from current EU rules could prove a “delicate part” of future trade negotiations with Brussels. READ MORE: Why a no-deal Brexit could mean more bureaucracy for many manufacturers

Subsets and Splits

No community queries yet

The top public SQL queries from the community will appear here once available.