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Los Angeles Developer, Ramtin Ray Nosrati is Scheduled to Complete the First Marijuana Mansion in Winter, 2019
The Luxury Home will Feature a Number of Amenities Devoted to Providing the Most Amazing At-Home Cannabis Experiences Possible
LOS ANGELES, CA / ACCESSWIRE / June 21, 2019 /Los Angeles developer, Ramtin Ray Nosrati is pleased to announce his plans to complete a mansion with the first ever cannabis lounge by the end of winter, 2019.
To learn more about Nosrati and his work, please visithttps://www.huntingtonestateproperties.com/.
With the legalization of recreational marijuana in the beginning of this year, Nosrati predicted a demand for dedicated cannabis rooms within his highly sought after spec homes. The prolific developer, popular with celebrities, professional athletes, and Fortune 500 executives quickly added "cannabis lounge" to his already lengthy list of luxe amenities.
Nosrati's plans to build a dedicated cannabis room within his latest mansion recently caught the eye of the founders of HighTimes.com. As thearticlenoted, the mansion's "cannabis conservatory," will provide everything that homeowners need to grow their own organic, high quality medicinal cannabis, as well as create a fully ventilated space for them to enjoy it. The conservatory can be accessed via a secret bookshelf entrance with biometric lock, and also features a full bar, cigar lounge, wine cellar, video wall with multiple screens, golf simulator and more.
With the increasing acknowledgment of cannabis' medicinal benefits, Nosrati has five new, high-end homes in various stages of construction in Bel Air, Brentwood and Beverly Hills. List price is in the $30 - $40 million dollar range.
In addition to creating what he predicts will be the modern day equivalent of a cigar lounge, Nosrati's conservatories come complete with an organic hydroponic cultivation gallery featuring a maximum of six cannabis plants-California's legal limit for homegrown. And, because Nosrati understands that not everyone has the time or the knowledge to grow their own cannabis, each of his upcoming homes will come with expert gardening services to care for the plants.
But what about the rich and famous who don't wish to partake in California's new favorite pastimes? Apparently the cultivation rooms can be repurposed to serve as an indoor, organic garden. The harvester on hand will help plant and grow vegetables to make productive use of the space.
About Ramtin Ray Nosrati:
Serving as the owner, designer, and developer for his company, Ramtin Ray Nosrati stands out among other builders. Nosrati has earned a reputation for specializing in Southern California's beautiful hillside properties, and also as a creative entrepreneur who has become the go-to designer and developer for some of the world's largest influencers and celebrities. For more information, follow Ramtin Ray Nosrati on Instagramhttps://www.instagram.com/ramtin_ray_nosrati
Contact:
Vivienne Wagnerviv@houndstooth.mg562-355-0167
SOURCE:Ramtin Ray Nosrati
View source version on accesswire.com:https://www.accesswire.com/549451/Los-Angeles-Developer-Ramtin-Ray-Nosrati-is-Scheduled-to-Complete-the-First-Marijuana-Mansion-in-Winter-2019 |
The United Security Bancshares (NASDAQ:UBFO) Share Price Has Gained 116%, So Why Not Pay It Some Attention?
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When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. For example, theUnited Security Bancshares(NASDAQ:UBFO) share price has soared 116% in the last half decade. Most would be very happy with that.
View our latest analysis for United Security Bancshares
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, United Security Bancshares achieved compound earnings per share (EPS) growth of 16% per year. So the EPS growth rate is rather close to the annualized share price gain of 17% per year. This indicates that investor sentiment towards the company has not changed a great deal. Rather, the share price has approximately tracked EPS growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It might be well worthwhile taking a look at ourfreereport on United Security Bancshares's earnings, revenue and cash flow.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for United Security Bancshares the TSR over the last 5 years was 133%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
United Security Bancshares shareholders are up 0.6% for the year (even including dividends). But that was short of the market average. On the bright side, the longer term returns (running at about 18% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. Before spending more time on United Security Bancsharesit might be wise to click here to see if insiders have been buying or selling shares.
But note:United Security Bancshares may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
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. |
Imagine Owning Wyndham Hotels & Resorts (NYSE:WH) And Wondering If The 10% Share Price Slide Is Justified
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While not a mind-blowing move, it is good to see that theWyndham Hotels & Resorts, Inc.(NYSE:WH) share price has gained 13% in the last three months. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 10% in a year, falling short of the returns you could get by investing in an index fund.
View our latest analysis for Wyndham Hotels & Resorts
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Unhappily, Wyndham Hotels & Resorts had to report a 39% decline in EPS over the last year. This fall in the EPS is significantly worse than the 10% the share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Thisfreeinteractive report on Wyndham Hotels & Resorts'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
Given that the market gained 6.4% in the last year, Wyndham Hotels & Resorts shareholders might be miffed that they lost 8.3% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 13%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Banks Spend $1 Trillion on Digital, But Few Reap the Rewards
(Bloomberg) -- While global banks have been pouring money into information technology -- to the tune of $1 trillion over three years -- only a handful appear to be fully committed to a digital transformation and are therefore reaping the benefits, according to an Accenture Plc study. Just 19 of the 161 largest retail and commercial banks that the consulting firm examined have been focusing enough on digital strategies to “make the shift to a different sort of bank,” Accenture said in the report, released Thursday. And those that did were rewarded for their efforts, the firm said. All the banks studied, based in 21 countries, started at roughly similar rates of return on equity in 2011, but by 2017 the banks that Accenture identified as “digital focused” had ROE that rose 0.9 percentage points. The 81 least digitally focused banks, meanwhile, saw their ROE slip 1.1 percentage points -- and Accenture researchers said the gap is likely to continue to widen through 2021. ROE at a middle group of 61 “digital active” banks was little changed. “You could see in those three groups the performance deferential,” Alan McIntyre, an Accenture senior managing director and co-author of the report, said in an interview. “You see a gap, and where the gap is coming from, and it’s coming from digital.” Cost-Cutting The $1 trillion estimate by Accenture is for retail and commercial banks globally, and includes all internal and external hardware, software, service and information-technology staff costs. The most digitally focused banks became more profitable through cost-cutting, Accenture researchers said, and Wall Street has rewarded them with higher valuations. While the study didn’t include names of the banks studied, McIntyre said that the 19 most digitally focused banks include JPMorgan Chase & Co. New York-based JPMorgan, the largest U.S. bank, has been a top spender among financial firms in the technology arms race. In February, it said it planned to boost its tech budget by $600 million to $11.4 billion this year. Story continues “Everyone is trying to do something -- there’s not any bank in the world that’s ignoring digital,” McIntyre said. “Everyone’s trying to become more digital, but it takes organization, evangelism, commitment and structure.” (Updates with co-author’s comment in last paragraph.) --With assistance from Michelle F. Davis and Jenny Surane. To contact the reporter on this story: Elizabeth Rembert in New York at erembert@bloomberg.net To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, Steve Dickson For more articles like this, please visit us at bloomberg.com ©2019 Bloomberg L.P. |
Yamana Gold (AUY) Jumps: Stock Rises 8.9%
Yamana Gold Inc.AUY was a big mover last session, as the company saw its shares rise nearly 9% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading above the volatile price range of $1.8000 to $2.2300 in the past one-month time frame.
The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
Yamana Goldcurrently has a Zacks Rank #3 (Hold) while its Earnings ESP is positive 0.00%.
Yamana Gold Inc. Price
Yamana Gold Inc. price | Yamana Gold Inc. Quote
Investors interested in the Mining - Gold industry may consider Gold Fields Limited GFI, which has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Is AUY going up? Or down? Predict to see what others think:Up or Down
Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportGold Fields Limited (GFI) : Free Stock Analysis ReportYamana Gold Inc. (AUY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
How To Look At Weingarten Realty Investors (NYSE:WRI)
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Weingarten Realty Investors is a US$3.7b mid-cap, real estate investment trust (REIT) based in Houston, United States. REITs own and operate income-generating property and adhere to a different set of regulations. This impacts how WRI’s business operates and also how we should analyse its stock. I’ll take you through some of the key metrics you should use in order to properly assess WRI.
Check out our latest analysis for Weingarten Realty Investors
REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. FFO is a higher quality measure of earnings because it takes out the impact of non-recurring sales and non-cash items such as depreciation. These items can distort the bottom line and not necessarily reflective of WRI’s daily operations. For WRI, its FFO of US$286m makes up 77% of its gross profit, which means the majority of its earnings are high-quality and recurring.
WRI's financial stability can be gauged by seeing how much its FFO generated each year can cover its total amount of debt. The higher the coverage, the less risky WRI is, broadly speaking, to have debt on its books. The metric I'll be using, FFO-to-debt, also estimates the time it will take for the company to repay its debt with its FFO. With a ratio of 16%, the credit rating agency Standard & Poor would consider this as significantly high risk. This would take WRI 6.28 years to pay off using operating income alone. Given that long-term debt is a multi-year commitment this is not unusual, however, the longer it takes for a company to pay back debt, the higher the risk associated with that company.
Next, interest coverage ratio shows how many times WRI’s earnings can cover its annual interest payments. Usually the ratio is calculated using EBIT, but for REITs, it’s better to use FFO divided by net interest. This is similar to the above concept, but looks at the nearer-term obligations. With an interest coverage ratio of 4.24x, it’s safe to say WRI is generating an appropriate amount of cash from its borrowings.
In terms of valuing WRI, FFO can also be used as a form of relative valuation. Instead of the P/E ratio, P/FFO is used instead, which is very common for REIT stocks. WRI's price-to-FFO is 13.08x, compared to the long-term industry average of 16.5x, meaning that it is slightly undervalued.
In this article, I've taken a look at Funds from Operations using various metrics, but it is certainly not sufficient to derive an investment decision based on this value alone. Weingarten Realty Investors can bring about diversification for your portfolio, but before you decide to invest, take a look at the other aspects you must consider before investing:
1. Future Outlook: What are well-informed industry analysts predicting for WRI’s future growth? Take a look at ourfree research report of analyst consensusfor WRI’s outlook.
2. Valuation: What is WRI 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 WRI 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. |
Bella Thorne says she taught herself to read and count
Bella Thorne has faced a lot of adversity in her 21 years — and the list grows. While promoting her upcoming book The Life of a Wannabe Mogul: Mental Disarray on Chicks in the Office podcast, the star claimed, “I never learned how to read.” Thorne, who has previously spoken about being dyslexic, said she ultimately taught herself the skill “from reading scripts.” Thorne also had an unconventional education when it came to math. She said, “I never learned how to count and I learned how to count from counting my dad's cash. I'm obsessed with money and literal cash." In fact, she said she’s self-taught in most ways. “I didn’t know how to dance,” Thorne added. “I had two left feet and I couldn’t even bounce on the same rhythm, and I did a dance show about dancing.” Thorne also taught herself to sing, saying, “I was tone deaf and I own a record label, and I’m signed with Sony as an artist. And I can f***ing sing a cappella like a b**** ass now. So, f*** with me.” She also pointed to her financial success, saying, "[I had] $200 to my name, basically, when I turned 18 and I bought a house by the time I was 19." Thorne, who rose to stardom on the Disney Channel’s Shake It Up , has been very candid about her troubled childhood. Her father died when she was 10, leaving her mother solo to raise four children. Thorne said she was bullied for being dyslexic, so opted to be home-schooled. She was also sexually abused at a young age. She’s been in the news over the last few days because she released her own nude photos after a hacker stole them and threatened to do the same. She said doing it herself was an attempt to take power back from the thief, but she was criticized by Whoopi Goldberg on The View , which left Thorne “saddened.” She was also in the news because police were called to a party at her house over the weekend after someone reported they heard gunshots. Despite Thorne’s learning struggles, she’s written a series of novels — 2014’s Autumn Falls, 2015’s Autumn’s Kiss and 2016’s Autumn’s Wish. Story continues The Life of a Wannabe Mogul will be released on July 23. It’s already an Amazon best-seller from pre-sales. It is a collection of poems about her “personal struggles, relationships and wild-child lifestyle.” Read more on Yahoo Entertainment: Kathy Griffin begs Obama to 'come back' to White House 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' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle’s newsletter. |
Eastman Chemical Buys INACSA, Fortifies Global Fibers Unit
Eastman Chemical CompanyEMN has entered into a definitive deal to purchase Spain-based cellulosic yarn producer, Industrias del Acetato de Celulosa S.A. (INACSA). The deal is expected to be completed in third-quarter 2019, subject to the receipt of required regulatory approvals and other customary closing conditions. Specific terms of the transaction were undisclosed by the company.Eastman Chemical will purchase the yarn business and related assets from INACSA. This includes plant and assets in La Batlloria, Spain along with intellectual property, formulations and customer contracts.The buyout is expected to support consistent growth of Naia cellulosic yarn for the apparel market. Notably, the INACSA yarn business and assets will become part of the company’s global Fibers segment supply base.Moreover, the acquisition is in sync with Eastman Chemical's growth strategy along with the objective of delivering superior value through balanced and disciplined uses of cash for dividend payments, share repurchases, debt repayment as well as inorganic and organic growth measures.Eastman Chemical's shares are down 25.1% in the past year compared with 34.3% decline of the industry.
Eastman Chemical expects strong earnings growth in the second quarter on a sequential comparison basis. However, the company expects the difficult global business environment to persist through first-half 2019.It is undertaking additional cost-reduction initiatives in the wake of a challenging business environment. The company expects global economy to strengthen in the second half of 2019. The company continues to expect adjusted earnings per share growth of 6-10% in 2019.Zacks Rank & Key PicksEastman Chemical currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU. These stocks currently sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 22.4% in the past year.Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 142.5% in a year’s time.AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 106.5% in the past year.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportEastman Chemical Company (EMN) : Free Stock Analysis ReportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Barrick Gold (GOLD) Looks Good: Stock Adds 5.7% in Session
Barrick Gold CorporationGOLD was a big mover last session, as the company saw its shares rise nearly 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company—as the stock is now up 25.4% in the past one-month time frame.
The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
Barrick Gold currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Barrick Gold Corporation Price
Barrick Gold Corporation price | Barrick Gold Corporation Quote
Investors interested in the Mining - Gold industry may consider AngloGold Ashanti Limited AU, which has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Is GOLD going up? Or down? Predict to see what others think:Up or Down
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportBarrick Gold Corporation (GOLD) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did Intersect ENT, Inc. (NASDAQ:XENT) Insiders Buy Up More Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inIntersect ENT, Inc.(NASDAQ:XENT).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Intersect ENT
Over the last year, we can see that the biggest insider purchase was by Independent Director Dana Mead for US$100k worth of shares, at about US$26.22 per share. That means that an insider was happy to buy shares at above the current price of US$23.62. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. 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 Dana Mead.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Intersect ENT insiders own 2.5% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
The fact that there have been no Intersect ENT insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Intersect ENT and we see no evidence to suggest they are worried about the future. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Intersect ENT.
But note:Intersect ENT may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE 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. |
Hologic (HOLX) Inks Deal to Acquire SuperSonic Imagine
Hologic, Inc. HOLX has recently made a binding offer to acquire (directly or through an affiliate) SuperSonic Imagine — a France-based innovator in cart-based ultrasound products. Also, the company announced that it has signed an exclusive negotiation deal with SuperSonic Imagine and its primary shareholders.
The acquisition is in sync with the company’s strategy to provide wide-ranging screening, interventional and surgical solutions across the spectrum of breast health care.
Financial Terms
Under the terms of the binding offer, Hologic has agreed to acquire SuperSonic Imagine’s outstanding shares at €1.50 per share. This corresponds to all outstanding shares of approximately $39 million (or $42 million assuming dilution of all outstanding warrants and options). Further, Moreover, Hologic will generate funds to repay SuperSonic Imagine’s net debt of $43 million. Summing up, this equates to a maximum enterprise value of $85 million.
About the Acquisition
Through the acquisition of SuperSonic Imagine, the company is likely to foray into the $450-million cart-based global breast ultrasound market, which is expanding at a high-single-digit rate. The upside can be attributed to the technology being adopted as an adjunct to mammography in women with dense breast tissue. SuperSonic Imagine’s product portfolio will strengthen the utility of Viera, the wireless, handheld ultrasound scanner that Hologic is commercializing through a development and distribution agreement with Clarius Mobile Health.
Market Prospects
Per Global Market Insights, breast cancer therapeutics market size was valued at more than $416.22 billion in 2018 and is estimated to witness a CAGR of 9.5% from 2019 to 2025.
Recent Developments
In February 2019, Hologic announced that its LOCalizer wireless radio frequency identification (RFID) breast lesion localization system has been granted the CE Mark. The system is designed for convenient and accurate marking as well as targeting of lesions for breast-conserving surgery guidance. In January, the company announced that the FDA has approved the LOCalizer radiofrequency identification (RFID) marker for long-term placement. With this regulatory go ahead, the marker can now be implanted more than 30 days prior to a breast-conserving surgery. This will provide greater flexibility and convenience to patients as well as providers.
Earlier this year, Hologic announced the launch of Unifi Analytics in the United States, a business intelligence tool. The device enables healthcare facilities to manage their mammography devices, monitor technologist performance and avert unprecedented downtime via predictive tube replacement technology.
Price Performance
The company has outperformed the industry in the past year. The stock has improved 24.3% compared with the industry’s 1.8% rise and the S&P 500’s 5% rise.
Zacks Rank and Other Key Picks
Hologic currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Cerner Corporation CERN, Penumbra PEN and Bruker Corporation BRKR. Each of these stocks carry a Zacks Rank #2. You can seethe complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Cerner’s long-term earnings growth rate is expected to be 13.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
Bruker’s long-term earnings growth rate is estimated at 11.7%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportCerner Corporation (CERN) : Free Stock Analysis ReportBruker Corporation (BRKR) : Free Stock Analysis ReportPenumbra, Inc. (PEN) : Free Stock Analysis ReportHologic, Inc. (HOLX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Facebook co-founder says Libra could shift monetary clout to private companies: FT
(Reuters) - Facebook Inc's Libra cryptocurrency would hand over much of the control of monetary policy from central banks to private companies, the company's co-founder Chris Hughes said in an opinion piece in the Financial Times on Friday. "If global regulators don't act now, it could very soon be too late," Hughes said. Hughes also said the corporations that would oversee the new currency would put their private interests - profits and influence - ahead of public ones. Facebook did not immediately respond to a Reuters request for comment. The social media giant revealed plans on Tuesday to launch a cryptocurrency called Libra and linked up with 28 partners in a Geneva-based entity called the Libra Association, which will govern the new digital coin set to launch in the first half of 2020. Hughes, a former roommate of Facebook CEO Mark Zuckerberg, had earlier called for a break-up of the social network in an opinion piece in the New York Times in May. Facebook, then, rejected https://www.reuters.com/article/us-facebook-cofounder/facebook-rejects-co-founder-call-for-breakup-senator-urges-u-s-antitrust-probe-idUSKCN1SF1HR Hughes' call to split the company in three. The company has been under scrutiny from regulators around the world over data sharing practices as well as hate speech and misinformation on its networks. Some U.S. lawmakers have pushed for action to break up big tech companies as well as federal privacy regulation. (Reporting by Akanksha Rana in Bengaluru; Editing by Saumyadeb Chakrabarty) |
Here's Why You Should Invest in Atmos Energy (ATO) Stock Now
Earnings estimates forAtmos Energy CorporationATO for fiscal 2019 and fiscal 2020 are likely to improve 8% and 6.76% on a year-over-year basis to $4.32 and $4.61 per share, respectively. Revenue estimates for fiscal 2019 and fiscal 2020 are likely to increase 53.77% and 8.31% on a year-over-year basis to $3.42 billion and $3.71 billion, respectively.
Let’s focus on the factors that make Atmos Energyan appropriate investment option at the moment.
Zacks Rank& VGM Score
Atmos Energycurrently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Earnings Surprise History & Long-Term Growth
The company’s average four-quarter positive earnings surprise is 4.26%.
The company’s long-term (three to five years) earnings growth is pegged at 6.50%.
Price Movement
In the past 12 months, Atmos Energy’s shares have gained 18.8% compared with the industry’s rise of 8.4%.
Dividend Growth & Dividend Yield
On Nov 7, 2018, the board of directors approved 8.2% increase in annual dividend, marking the 35th consecutive year of dividend hike that indicatesconsistent performance.
Currently, the company has a dividend yield of 1.99% compared with the Zacks S&P 500 composite’s 1.94%.
Other Key Picks
Some other top-ranked stocks from the same industry are ONEOK, Inc OKE, ONE Gas, Inc OGS and Northwest Natural Gas Company NWN, each holding a Zacks Rank of 2.
ONEOK pulled off an average positive earnings surprise of 3.17% in the last four quarters. The company’s long-term earnings growth is pegged at 11.30%.
ONE Gas pulled off an average positive earnings surprise of 8.29% in the last four quarters. The company’s long-term earnings growth is pegged at 5.90%.
Earnings Estimates for 2019 for Northwest Natural Gas moved up 4.4% to $2.37 per share in the past 60 days. The company’s long-term earnings growth is pegged at 4.50%
Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportAtmos Energy Corporation (ATO) : Free Stock Analysis ReportNorthwest Natural Gas Company (NWN) : Free Stock Analysis ReportONE Gas, Inc. (OGS) : Free Stock Analysis ReportONEOK, Inc. (OKE) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
CordovaCann Establishes Oregon-Based Vertically Integrated Cannabis Platform
TORONTO, ONTARIO / ACCESSWIRE / June 21, 2019 /CordovaCann Corp. (CDVA.CN) (LVRLF) ("Cordova" or the "Company"), a cannabis-focused consumer products company, announced today that the Company has completed its acquisition of Oregon-based assets to establish a vertically integrated cannabis platform including cultivation, processing and retail operations. The Company financed the transactions through debt facilities totaling US $1,000,000 as further detailed below.
Cordova solidified its Oregon-based platform through the following transactions:
• Completed the acquisition of the remaining 72.5% membership interest in Cordova OR Operations, LLC ("OR Operations"), that has title to 6 acres of real estate in Clackamas County, Oregon (the "Property") and other cultivation and processing assets; and the acquisition of all of the membership interest in Future Processing LLC ("Future Processing"), that has submitted an application for a marijuana processor application on the Property; for a total purchase price of US $1,045,000, inclusive of the previously deposited amount of US $205,000. Upon closing, OR Operations and Future Processing became wholly-owned subsidiaries of the Company; and
• Entered into definitive asset purchase agreements to acquire substantially all of the assets of Farms of the Future, Inc. ("FOTF") and B and M Holdings, LLC ("BM Holdings") for a total purchase price of US $345,000, which is to include two Oregon Liquor Control Commission (the "OLCC") licenses; a Mixed Use Tier II Production License for the Property and a Recreational Retail License for a rental premise in Portland, Oregon. The Company has made non-refundable payments totaling US $99,000 with the balance of US $246,000 to be paid within 45 days. Transfer of the licenses is conditional upon OLCC approval of the transfer or issuance of new substantially equivalent licenses.
In order to facilitate the above transactions, Cordova entered into the following debt facilities:
• A secured promissory note (the "Promissory Note") in the principal amount of US $531,915, due six (6) months from the date of issuance with an initial draw of US $500,000 implying interest at a rate of twelve (12%) per annum. The Promissory Note is secured directly by the Property; and
• A syndicated, secured loan facility (the "Loan") in the principal amount of US $500,000, due six (6) months from the date of issuance bearing interest at a rate of fifteen (15%) per annum. The Loan is secured by a general security interest over all the assets of Cordova OR Holdings, LLC, a wholly-owned subsidiary of the Company and parent to OR Operations. In connection to the Loan, Cordova issued warrants for the purchase of 200,000 common shares of the Company exercisable until June 18, 2021 at a price of CDN $1.00 per share.
Mr. Taz Turner, Chairman and CEO of Cordova, commented, "We are excited to have complete ownership of our Oregon operations and we look forward to utilizing our investment of over US $1,400,000 in expansion capital spent over the past year on these facilities. With 10,000 sq. ft. of indoor cultivation canopy and a 14,000 sq. ft. of processing and extraction facility, we expect to provide an expanded product offering to the Oregon market in the upcoming months. Additionally, the Cannabilt branded dispensary in Portland will further enhance the brand recognition of our products and our growth and profitability in Oregon."
About CordovaCann Corp.
CordovaCann Corp. is a Canadian-domiciled company focused on building a leading, diversified cannabis products business across multiple jurisdictions including Canada and the United States. Cordova primarily provides services and investment capital to the processing and production vertical markets of the cannabis industry.
Forward-looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. The Company cannot provide assurances that the matters described in this press release will be successfully completed or occur. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the Company's ability to retain key management and employees; intense competition and the Company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's public filings on EDGAR and SEDAR. The Company undertakes no obligation to update information contained in this press release. For further information regarding risks and uncertainties associated with the Company's business, please refer to the risks and uncertainties detailed from time to time in the Company's EDGAR and SEDAR filings.
Company Contact:
Taz TurnerChief Executive Officertaz@cordovacann.com(917) 843-2169
SOURCE:CordovaCann Corp.
View source version on accesswire.com:https://www.accesswire.com/549435/CordovaCann-Establishes-Oregon-Based-Vertically-Integrated-Cannabis-Platform |
Paychex (PAYX) Q4 Earnings Coming Up: What Lies in Store?
Paychex, Inc.PAYX is slated to report fourth-quarter fiscal 2019 results on Jun 26, before the bell.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the trailing four quarters with an average positive earnings surprise of 1.6%.
The stock has gained 25.6% over the past year, significantly outperforming the 14.5% rally of the industry it belongs to.
How Things Are Shaping Up?
The Zacks Consensus Estimate for revenues is pegged at $980 million, indicating 12.5% growth from the year-ago quarter’s actual figure. The top line is expected to benefit from strength across total service and interest on funds held by clients.
The consensus mark for total service revenues is pegged at $956 million, indicating year-over-year growth of 12.1%. Within total service, Management Solutions revenue improvement is likely to be driven by growth in client bases across HCM Services, and in revenue per check. Benefits from Oasis acquisition and growth in clients and client worksite employees are expected to drive PEO and Insurance Services revenue growth.
The consensus mark for interest on funds held by clients stands at $21.3 million, indicating year-over-year increase of 20.2%. The expected increase is likely to result from higher average interest rates earned.
Paychex, Inc. Revenue (TTM)
Paychex, Inc. revenue-ttm | Paychex, Inc. Quote
The consensus estimate for adjusted EPS is pegged at 65 cents, indicating year-over-year growth of 6.6%.
In third-quarter fiscal 2019, total revenues increased 14% and adjusted earnings were up 3% year over year.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Paychexhas an Earnings ESP of 0.00% and a Zacks Rank #4.
Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.
FLEETCOR Technologies FLT, with an Earnings ESP of +0.31% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Franklin Covey Co. FC, with an Earnings ESP of +8.16% and a Zacks Rank #3.
Booz Allen Hamilton BAH, with an Earnings ESP of +0.66% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportFleetCor Technologies, Inc. (FLT) : Free Stock Analysis ReportFranklin Covey Company (FC) : Free Stock Analysis ReportPaychex, Inc. (PAYX) : Free Stock Analysis ReportBooz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Death of Egypt's Morsi comes amid Brotherhood struggles
The sudden collapse and death of former Egyptian President Mohammed Morsi in a Cairo courtroom this week was a brief rallying point for the Muslim Brotherhood, an Islamist movement that has seen its influence steadily wane across the Mideast since Egypt's military ousted Morsi in 2013. Seven years ago, in the still hopeful aftermath of the Arab Spring, Morsi took the podium in front of hundreds of thousands in Cairo in 2012 as the first freely elected president of Egypt, and opened his jacket to show he wore no bulletproof vest. At that moment, the Brotherhood leader embodied the rise of the Islamists in the Middle East. Morsi wanted to prove he was one with the throngs in Cairo's Tahrir Square — protesters who the year before had brought down longtime autocrat Hosni Mubarak. But the Brotherhood was seen by many as opportunistic, riding on the popular revolt's coattails to grab power in a nation where the group's members had been ruthlessly suppressed or at best tolerated, if they stayed on the political fringes. A year later, Morsi was overthrown and incarcerated with other Brotherhood leaders. The movement was outlawed as a terrorist group, and hundreds of its supporters were killed by security forces in a clampdown in 2013. Islamists, or those who seek political power in line with the laws of Islam, are pariahs in the region today. Notable exceptions include Turkey, Qatar and the Gaza Strip, controlled by Hamas — a Palestinian offshoot of the Brotherhood. Egypt and its Gulf allies are determined to keep cracking down on groups like the Brotherhood and crush any popular support for them. The long-running enmity between the Brotherhood and most Sunni-led governments highlights the deep divisions among Sunni Muslims. It adds a further complication to the volatile region, where the split between Sunnis and Shiite Muslims has created rival camps, led by Saudi Arabia and Iran, who are engaged in proxy wars in Syria and Yemen. ___ TURKEY, KHASHOGGI AND SAUDI ARABIA In a telling comment Thursday, Turkish President Recep Tayyip Erdogan connected the death of Morsi to the brutal killing of Saudi columnist Jamal Khashoggi, who was slain at the Saudi Consulate in Istanbul in October. "In the same way that we didn't allow the murder of the late Jamal Khashoggi to be forgotten, we will never allow Morsi's drama to be forgotten," Erdogan said. Egypt's state TV said Morsi died of a heart attack in court, while Erdogan alleged that the deposed president was killed. Erdogan claimed, without any proof, that Morsi allegedly "flailed" in a Cairo courtroom for 20 minutes on Monday and that nobody assisted him. Story continues Erdogan's Islamist ruling party was a key ally of Egypt's Brotherhood. Since Morsi's ouster, relations between Ankara and Cairo have plummeted with acrimonious exchanges. Erdogan's mention of Khashoggi did not seem to be a coincidence. Saudi Arabia had long agitated against the journalist as a Brotherhood activist and sympathizer, a claim denied by those close to Khashoggi. A united front against the Brotherhood has made strong allies of Saudi Arabia's Crown Prince Mohammed bin Salam and Egypt's President Abdel-Fattah el-Sissi. Both leaders have been able to pursue internal and external agendas, including against Islamists, without any fear of admonishment or sanction from Washington. ___ QATAR The Gulf nation fell out in a spectacular and bruising way with its Gulf Cooperation Council neighbors and Sunni brethren in the last two years. Led by Saudi Arabia, but also bringing in Egypt on its side, the countries cut diplomatic relations with Doha. This included barring Qatari planes from their air space. There were accusations that Qatar was supporting terrorism in the region, including al-Qaida-linked groups in the Syrian war. But Saudi Arabia has also faced allegations of supporting extremism in the region when it suits its own purposes. At the crux of the fraternal dispute, however, was Qatar's Al-Jazeera. The news station, like its ruling family owners, had shown strong support for Egypt's Muslim Brotherhood and has subsequently highlighted Saudi transgressions. This has been especially acute with the killing of Khashoggi and the civil war in Yemen, which pits a Saudi-led Gulf coalition against Iranian-backed rebels, the Houthis. The fighting has killed more than 90,000 people since 2015 and created the world's worst humanitarian crisis. ___ HAMAS Although the militant Palestinian group is defined by its resistance to the state of Israel, it does so based on a strict Islamist philosophy. Its natural allies have been Turkey, Qatar and Egypt's Brotherhood. Hamas has been part of that movement but has taken measures in recent years to reconcile with the current Egyptian authorities. This stems from the desperation of the Gaza blockade, enforced by land, sea and air by Israel, but also by Egypt along the coastal strip's southern border. Israel and Egypt began blockading Gaza after the 2007 Hamas takeover of the territory. Qatar for its part continues to be one of the biggest donors to Hamas. A Qatari envoy delivered $25 million to the Gaza Strip this week to help shore up a fragile cease-fire between Israel and Hamas. Adding to the mix, Shiite Iran also supports Hamas and sent its condolences over Morsi's death earlier this week to the group and the Egyptian nation, including "wishes for divine blessing and mercy" for Morsi. ___ Follow Tamer Fakahany on Twitter at www.twitter.com/TamerFakahany . View comments |
If You Like EPS Growth Then Check Out Keywords Studios (LON:KWS) Before It's Too Late
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In contrast to all that, I prefer to spend time on companies likeKeywords Studios(LON:KWS), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
See our latest analysis for Keywords Studios
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. I, for one, am blown away by the fact that Keywords Studios has grown EPS by 49% per year, over the last three years. While that sort of growth rate isn't sustainable for long, it certainly catches my attention; like a glint in the eye of my lover.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). Keywords Studios maintained stable EBIT margins over the last year, all while growing revenue 66% to €251m. That's progress.
In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.
Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Keywords Studios.
Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don't always get it right.
We haven't seen any insiders selling Keywords Studios shares, in the last year. So it's definitely nice that Independent Non-Executive Director Georges Fornay bought €20k worth of shares at an average price of around €9.80.
On top of the insider buying, it's good to see that Keywords Studios insiders have a valuable investment in the business. With a whopping €56m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth.
While insiders are apparently happy to hold and accumulate shares, that is just part of the pretty picture. The cherry on top is that the CEO, Andrew Day is paid comparatively modestly to CEOs at similar sized companies. I discovered that the median total compensation for the CEOs of companies like Keywords Studios with market caps between €892m and €2.9b is about €1.4m.
The CEO of Keywords Studios only received €252k in total compensation for the year ending December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.
Keywords Studios's earnings have taken off like any random crypto-currency did, back in 2017. The company can also boast of insider buying, and reasonable remuneration for the CEO. It could be that Keywords Studios is at an inflection point, given the EPS growth. If so, then it the potential for further gains probably merit a spot on your watchlist. Of course, profit growth is one thing but it's even better if Keywords Studios is receiving high returns on equity, since that should imply it can keep growing without much need for capital.Click on this link to see how it is faring against the average in its industry.
There are plenty of other companies that have insiders buying up shares. So if you like the sound of Keywords Studios, you'll probably love thisfreelist of growing companies that insiders are buying.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Summertime Puts Parents at Risk of Child Care Debt, Data Shows
Working parents with young kids know all too well that the cost ofchild carecan be a major burden. But for families of school-aged children, summertime in particular can be brutal. That's because parents who otherwise fall back on relatively affordable after-school care programs or babysitters often have no choice but to spring for full-time summer camp in order to maintain their jobs in July and August.
The cost of summer camp can be astronomical, though. Almost 20% of parents who are paying for child care this summer plan to spend more than $2,000 per child on it, according to a newBankrate survey. For a family with three school-aged children, that means a total tab upward of $6,000 -- for a mere two months of care.
Image source: Getty Images.
It's no wonder, then, that so many parents are using credit cards to cover that expense. An estimated 33%, in fact, will accrue debt in the course of paying for summertime child care.
If you're facing a mountain of child care bills this summer that you'll likely have no choice but to finance on a credit card, a little planning on your part could prevent a repeat scenario next summer.
As a working parent, you have no choice but to absorb the cost of full-time care when school's not in session. But if you save for that expense in advance, you won't have to rack up loads of debt to retain your paycheck.
If you don't yet have a budget,create oneimmediately and include a line item for summertime care along with your other expenses, like housing, transportation, food, utilities, and healthcare. Then, start putting money into savings every month so that by the time next summer arrives, you'll have the cash to pay for child care.
At the same time, use existing tax breaks to make child care more affordable. If your employer offers a dependent care flexible spending account, you can contribute up to $5,000 in pre-tax dollars to pay for child care so that you can work. In most cases, summer camp is considered an eligible child care expense under these plans, and if you're looking at spending $2,000 per child for three kids, you'll have no problem maxing out -- especially if you pay for additional after-school care during the year.
Of course, you don'thaveto contribute the full $5,000 to your dependent care account. See what your yearly child care costs look like, and allocate enough money to cover them as best as you can.
At the same time, be sure to claim theChild and Dependent Care Creditwhen you file your taxes. Depending on your income, you can claim between 20% and 35% of your child care expenses, up to a maximum of $3,000 for one child, or a maximum of $6,000 for two or more children. To be clear, if you have two kids and spend $7,000 on child care for them during the year, you can only deduct between 20% and 35% of $6,000. It's not the most generous tax break out there, but it's better than no tax break at all.
Summertime is often regarded as a period of leisure, but for working parents, it can be extremely stressful. Saving in advance for your child care costs, and being tax-savvy about them, can ease that burden and make a whopping expense just a bit more manageable.
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Medtronic PLC (MDT) Files 10-K for the Fiscal Year Ended on April 30, 2019
Medtronic PLC (NYSE:MDT) files its latest 10-K with SEC for the fiscal year ended on April 30, 2019. |
Car and Driver Contributor Davey G. Johnson Found in Northern California
Photo credit: Davey G. Johnson via Instagram From Car and Driver UPDATE 6/21/19: Searchers from the Calaveras County (California) Sheriff's Department found Car and Driver contributing editor Davey G. Johnson's body in the Mokelumne River on June 20, victim of a presumed accidental drowning. He'd been missing since June 5. Funeral plans are pending with the family. Obituary for Davey G. Johnson, 1975–2019 UPDATE 6/17/19: After 10 days of active search, the Calaveras County Sheriff’s Office is officially scaling back the search and rescue efforts for Davey G. Johnson. A statement from the sheriff reads, "The search for David Johnson will be continued by the Calaveras County Sheriff's Office Marine Safety Unit and Sheriff's Detectives; however, large-scale search efforts have been suspended pending further information or leads." Lt. Anthony Eberhardt reiterated that foul play is not suspected and that scent-trailing dogs were able to follow Johnson's trail to the water's edge. We will continue to update this story if more information becomes available. UPDATE 6/12/19: The Calaveras County Sheriff's Office has issued a new statement about the search, which is still ongoing and will continue. UPDATE 6/11/19: After concluding the search for the night on Monday, the Calaveras Sheriff and other involved parties requested additional resources for the search, which is continuing this morning. The GoFundMe raised $16,580, which will be donated to the Calaveras County Search and Rescue. Yesterday, the police found Johnson's wallet in a pocket in his motorcycle pants. UPDATE 6/10/19: Search and rescue has continued through the weekend, with the Calaveras Sheriff's Department widening search this morning. The search effort is focused mainly on the river and Route 49, the nearby highway. A GoFundMe had been set up in support of the Calaveras County Search and Rescue operation, but it has now been put on pause after exceeding its goal. Story continues Veteran automotive journalist and Car and Driver contributor Davey G. Johnson has been missing since Wednesday, June 5, after he rode through the Sonora Pass in northern California. He was last heard from at 8:30 a.m., when he texted a friend to say he was sitting near a creek, en route home. Just after midnight Saturday, the motorcycle Davey was riding was found parked on its kickstand by a rest stop on California Route 49 near Mokelumne Hill, with his helmet resting on top and his gloves folded neatly inside. His phone, laptop, and backpack were found close to a nearby river. "I just really hope he's alive, because thinking about the alternative yesterday was . . . I don't even have words for it," said his girlfriend, fellow journalist Jaclyn Trop, who last heard from Johnson at 2 a.m. Pacific time on Wednesday. "I was completely gutted, and I would still feel that way if they hadn't found the bike." Trop and Johnson had spent the previous weekend together in Los Angeles, riding around town on the Honda CB1000R that Johnson was testing for Motorcyclist magazine. Trop flew to Florida on Sunday, and Johnson took the bike to Las Vegas that night. He then drove to Mammoth, California, on Tuesday and then drove through the Sonora Pass on Tuesday evening. Trop and Johnson were out of touch for 12 hours on Tuesday and into Wednesday. He messaged her at 2 a.m. to apologize for not reaching out, saying his cellphone had died and he was navigating tricky and icy roads after the sun went down. "I had a great time before it got dark," Johnson texted. "That part of the Sierra is just stupidly spectacular. Anyway, I'm so sorry I worried you. Yes, I am okay and alive, but I am WIPED." Around 8:30 a.m. Pacific time on Wednesday, Johnson sent a friend pictures of a stream that he was sitting near and said he was on his way home. He did not describe the location of the creek. Police began searching for Johnson on Saturday morning, 72 hours after his phone last pinged a cell tower in Amador County. Trop said it was difficult to get police to take her missing-person report seriously at first and that it took close to eight hours to convince them to trace his cellphone. "I just hope he's figured out how to stay alive," Trop said. "It's been 72 hours since he was last heard from. I think people can survive that, even if he was lost by a river." Anyone with information should contact the Calaveras County Sheriff at 209–754–6500. View this post on Instagram FINAL UPDATE: 8:30 PM PT June 20, 2019 It absolutely breaks my heart to be the bearer of this news. The Calaveras County authorities called Jaclyn this evening to notify her that they have recovered Davey's body. He was found in the river. She has asked me to share the news. We are immeasurably appreciative of the efforts of the Calaveras County Search and Rescue Teams, the Calaveras County Sheriff’s department, and the numerous teams from all over the state, that have been involved in the effort to bring Davey home. At this time we ask that the privacy of his family and his friends be respected. We will share more information as it becomes available. Memorial details will be determined by the family and announced at a later date. Thank you so much for your support and understanding. A post shared by Abigail Bassett (@abigailbassett) on Jun 7, 2019 at 7:08pm PDT This story was originally published on June 8, 2019. ('You Might Also Like',) Unclogging Streets Could Help City Dwellers Save 125 Hours a Year The 10 Cheapest New Cars of 2018 Get Out Early, Get In Late: What to Know About Auto Lease Transfers |
Will Teetotal Millennials Spell Doomsday for Beer Bigwigs?
Millennials are known to be a health-conscious generation, spending less on alcohol and more on fitness. As a matter of fact, analysts estimate that millennials spend 1% or less of their total income on alcohol.
Also, when it comes to consuming alcohol, millennials prefer drinking wines, clean spirits and wellness beer. Studies have shown that these are not only sugar-free, but also keto and paleo-friendly. This has given rise to a new group of individuals who are considering giving up alcohol altogether and find being sober a hip choice.
Analysts believe that such developments have led to a crisis of sorts in the beer industry. Furthermore, craft brewers have cropped up in large numbers across America and eaten into the conventional brewers’ pie. Quite literally, life isn’t all beer and skittles for the space. But does that mean the game is over for major beer players? Let’s find out.
Millennials Believe Body is One’s Temple
Market research firm Nielsen estimates that more than half of America’s adult population, with approximately two-thirds in the 21-34 age group, have openly confessed to quitting drinking in order to live a healthy life. They care for their heart and take cholesterol problems seriously. In fact, low or no-alcohol beverages have been selling like hot cakes in 2019 and are the next big thing in the market.
A majority of young adults in the United States prefer healthier options when it comes to drinking. Natural wines or raw wines are a top choice for social drinkers because they undergo a lower degree of processing and are largely chemical free. Consequently, it does not load one’s system with toxins and cause a hangover.
How Have Major Beer Players Adapted to Changing Preferences?
Major players in the beer industry have upped the ante to adapt to the needs of the largest cohort of consumers —the millennials. Market research firm, IWSR estimates that the U.S. market for ready-to-drink, low- or no-alcohol beverages is poised to grow to 39% by 2022.
Taking a cue from such developments, beer-giant Anheuser-Busch InBev BUD had announced a new position within its corporate ranks— that of chief non-alcoholic beverages officer — in June 2018. The company also announced the launch of two new non-alcoholic beer brands across the globe.
Anheuser-Busch’s non-alcoholic beer O’Doul’s has been a major hit among teetotallers. The company has also announced a non-alcoholic beer campaign in New York, Chicago and Los Angeles to raise awareness regarding alcohol free drinking at social gatherings.
Meanwhile, Molson Coors Brewing Company TAP announced the purchase of kombucha maker Clearly Kombucha on Jun 6, 2019. The company plans to further venture into such territory by providing a non-alcoholic, cannabis-infused drink in a joint venture with Canadian cannabis brand Hexo. Constellation Brands STZ is also rumoured to be investing in non-alcoholic, cannabis-infused drinks.
Furthermore, Diageo DEO has also acquired a minority stake in non-alcoholic spirit company Seedlip.
Anheuser-Busch, Diageo, Molson Coors and Constellation Brands have year-to-date returns of 35.4%, 23.7%, 6.2% and 13.4%, respectively. Anheuser-Busch, Diageo and Molson Coors carry a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
To Conclude
While traditional beer makers have been facing difficulties in the recent past, all’s not bleak and hopeless. Studies have shown that even though millennials tend to move toward sobriety, they still consume a lot of alcohol. The largest generational cohort among the modern consumers, the 1990s born, drink considerably at social events, albeit carefully.
Nielsen also estimates that millennials constitute about 35% of the total beer guzzlers in the country, which is a good sign from the producers’ point of view. Meanwhile, these customers are consistently looking to try out newer craft brands as well. Major alcohol players have also started taking advantage of the new beverages trend of 2019. As long as they can improvize to suit the need of the hour, beer majors have nothing to worry about.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportDiageo plc (DEO) : Free Stock Analysis ReportAnheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis ReportConstellation Brands Inc (STZ) : Free Stock Analysis ReportMolson Coors Brewing Company (TAP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Does Kordellos Ch. Bros S.A. (ATH:KORDE) Have A Volatile Share Price?
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If you're interested in Kordellos Ch. Bros S.A. (ATH:KORDE), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. 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 are more sensitive to general market forces than others. 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.
See our latest analysis for Kordellos Ch. Bros
Given that it has a beta of 0.82, we can surmise that the Kordellos Ch. Bros share price has not been strongly impacted by broader market volatility (over the last 5 years). This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Beta is worth considering, but it's also important to consider whether Kordellos Ch. Bros is growing earnings and revenue. You can take a look for yourself, below.
Kordellos Ch. Bros is a rather small company. It has a market capitalisation of €9.3m, which means it is probably under the radar of most investors. 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.
One potential advantage of owning low beta stocks like Kordellos Ch. Bros is that your overall portfolio won't be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what's happening in the broader market. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Kordellos Ch. Bros’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are KORDE’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.
2. Past Track Record: Has KORDE 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 KORDE's historicalsfor more clarity.
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. |
S&P 500 Hits Fresh High, Can it Cross 3,000 in 2019? 5 Picks
The impressive turnaround of Wall Street in June after the market turmoil in May achieved a milestone on Jun 20. Buoyed by Fed’s strong signal of interest rate cut in 2019, the S&P 500 Index set a fresh all-time high. This is the second time so far in 2019 when the benchmark index has hit a new high.At present, the S&P 500 Index is just 1.4% away to reach the 3,000 level for the first time. However, the important question is can it happen this year despite the presence of disturbing factors like trade conflict, geopolitical concerns and global economic slowdown?S&P 500 Soars on Fed’s Rate Cut HintsOn Jun 19, in his speech following the FOMC meeting, Fed Chair Jerome Powell said that the benchmark lending rate was kept intact at 2.25-2.5%. However, the central bank said that the adoption of a more accommodative policy is gaining ground as some economic data raised concerns about U.S. and global growth. The noticeable fact is that out of 17 voting members of the Fed, a strong bunch of eight is expecting a rate cut this year.Fed’s statement boosted investor confidence. Per CME FedWatch, traders are assigning 100% probability for a rate cut of at least 25 basis points in July. Consequently, on Jun 20, the S&P 500 Index closed at 2,954.18 after touching an intraday high of 2,958.06. The previous highest close of the broad-market index was 2,933.68 recorded on Apr 23.Year to date, the S&P 500 is 17.8% after finishing in the negative territory in 2018. So far in June, the index is up 7.6%, witnessing a complete turnaround after plunging 6.6% in May.Market Contingent Upon U.S.-China Trade DealWall Street’s performance in 2019 will largely depend upon a trade deal between the United States and China, which broke down abruptly on May 5. So far, the United States has imposed 25% tariffs on $250 billion Chinese goods. China has retaliated by levying 25% tariff on $160 billion U.S. exports. President Trump had threatened imposing 25% tariffs on another $300 billion of Chinese goods if stalemate prevails in trade negotiations for an indefinite time period.However, on Jun 18, Trump tweeted that he had a very good telephonic conversation with Chinese President Xi Jinping. He added: “We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” The G-20 summit of developed nations is scheduled for Jun 28-29 at Osaka.
Will Technology Sector Push S&P 500 to 3,000?The biggest catalyst for the S&P 500’s rebound in 2019 is the technology sector, which has rallied 27.4% year to date. And from the eve of Christmas last year, when the benchmark index hit rock bottom, the sector has gained nearly 37%. Year to date, technology is the best-performing sector of the S&P 500. In the past one month also, this sector has recorded 6.6% growth, despite severe market volatility.A trade deal with China will benefit the technology sector the most. China is the largest market for high-tech products of U.S. companies. At the same time, China plays the role of a low-cost supplier of intermediary products and other inputs to high-tech U.S. industries. Moreover, clinching a lasting agreement with China, which will strictly protect U.S. intellectual properties, will be immensely beneficial for the homegrown tech behemoths.Our Top PicksAt this stage, it will be prudent to invest in technology stocks within the S&P 500 Index for solid gains. We have been able to narrow down our search on five stocks, strong growth potential. All five stocks currently sport a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.The chart below shows price performance of our five picks in the past three months.
Microsoft Corp.MSFT is one of the largest broad-based technology providers in the world. Although software is the most-important revenue source, its offerings include hardware and online services. The company has an expected earnings growth rate of 18.3% for the current year. The Zacks Consensus Estimate for the current year has improved 4.1% over the last 60 days.Cisco Systems Inc.CSCO designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The company has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for the current year has improved 0.7% over the last 60 days.Twitter Inc.TWTR operates as a platform for public self-expression and conversation in real time. It offers a real-time, global platform where any user can create a tweet and any user can follow other users. The company has an expected earnings growth rate of 22.1% for the current year. The Zacks Consensus Estimate for the current year has improved 20.7% over the last 60 days.Akamai Technologies Inc.AKAM provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. The company has an expected earnings growth rate of 15.2% for the current year. The Zacks Consensus Estimate for the current year has improved 2% over the last 60 days.Cadence Design Systems Inc.CDNS provides software, hardware, services, and reusable integrated circuit design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. The company has an expected earnings growth rate of 12.3% for the current year. The Zacks Consensus Estimate for the current year has improved 2.4% over the last 60 days.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportCisco Systems, Inc. (CSCO) : Free Stock Analysis ReportAkamai Technologies, Inc. (AKAM) : Free Stock Analysis ReportTwitter, Inc. (TWTR) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportCadence Design Systems, Inc. (CDNS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is There An Opportunity With Coca-Cola FEMSA, S.A.B. de C.V.'s (NYSE:KOF) 47% Undervaluation?
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
Check out our latest analysis for Coca-Cola FEMSA. de
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.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (MX$, Millions)", "2019": "MX$11.11k", "2020": "MX$17.70k", "2021": "MX$19.60k", "2022": "MX$21.85k", "2023": "MX$24.01k", "2024": "MX$25.79k", "2025": "MX$27.34k", "2026": "MX$28.72k", "2027": "MX$29.96k", "2028": "MX$31.12k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x7", "2021": "Analyst x6", "2022": "Analyst x4", "2023": "Analyst x3", "2024": "Est @ 7.42%", "2025": "Est @ 6.01%", "2026": "Est @ 5.03%", "2027": "Est @ 4.34%", "2028": "Est @ 3.86%"}, {"": "Present Value (MX$, Millions) Discounted @ 7.5%", "2019": "MX$10.33k", "2020": "MX$15.31k", "2021": "MX$15.78k", "2022": "MX$16.36k", "2023": "MX$16.73k", "2024": "MX$16.71k", "2025": "MX$16.48k", "2026": "MX$16.10k", "2027": "MX$15.63k", "2028": "MX$15.10k"}]
Present Value of 10-year Cash Flow (PVCF)= MX$154.55b
"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 (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.5%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = Mex$31b × (1 + 2.7%) ÷ (7.5% – 2.7%) = Mex$670b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= MX$Mex$670b ÷ ( 1 + 7.5%)10= MX$325.36b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is MX$479.90b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. This results in an intrinsic value estimate in the company’s reported currency of MX$2284.36. However, KOF’s primary listing is in Mexico, and 1 share of KOF in MXN represents 0.0526 ( MXN/ USD) share of NYSE:KOF,so the intrinsic value per share in USD is $120.23.Relative to the current share price of $63.87, the company appears quite good value at a 47% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Coca-Cola FEMSA. de 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 7.5%, which is based on a levered beta of 0.800. 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. What is the reason for the share price to differ from the intrinsic value? For Coca-Cola FEMSA. de, I've compiled three fundamental factors you should look at:
1. Financial Health: Does KOF 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 KOF'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 KOF? 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 NYSE 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. |
Mosaic (MOS) to Close Plant City Phosphates Production Unit
The Mosaic CompanyMOS recently stated that it will close the idled Plant City phosphates production facility in Hillsborough County, FL. The team responsible for maintenance activities will stay on site and undertake compliance and closure responsibilities over the next several years.Per Mosaic, the decision of closure reaffirms its commitment toward low-cost operation. Plant City has been operational since 1975. It produced roughly 1.3 million tons of finished phosphates in 2017, which was the last year of the plant’s operation.In late 2017, the facility was idled as it was one of the higher cost phosphates facilities under the company’s Florida operations. Also, global phosphate market conditions partly led to the decision.Notably, the company expects to recognize a non-cash charge of up to $390 million in the second quarter related to the permanent closure of the facility. This will include an increase of the asset retirement obligation liability and asset write-offs. Moreover, cash payments required per year to manage the plant closure over the next five years are likely to be in line with the payments incurred in 2018.Mosaic intends to mitigate a part of closure costs by assessing innovative approaches to water management along with repurposing portion of the facility for productive usage.Shares of Mosaic have lost 16.8% in the past year compared with the industry’s 6.6% decline.
In May, Mosaic lowered its adjusted EBITDA and adjusted earnings guidance for 2019, considering higher costs related to the impact of new tailings dam regulations in Brazil, the impact of production curtailments, increased Canadian resource taxes and delayed recovery in phosphate margins.For 2019, it expects adjusted EBITDA in the range of $2-$2.3 billion compared with previous view of $2.2-$2.4 billion. It also expects adjusted earnings per share in the range of $1.50-$2.00 compared with the prior guidance of $2.10-$2.50.Zacks Rank & Key PicksMosaic currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU. These stocks currently sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 22.4% in the past year.Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 142.5% in a year’s time.AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 106.5% in the past year.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportThe Mosaic Company (MOS) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Middle East Tensions Perk Up Oil Prices: Here's How to Profit
Wall Street has generally been apathetic to the issue of tension in the Middle East but flaring up tensions between the United States and Iran, as well as Saudi Arabia and Iran has driven oil prices higher. U.S. benchmark West Texas Intermediate crude for July delivery rose $2.89, or 5.4%, to settle at $56.65 a barrel on the New York Mercantile Exchange, the biggest daily gain since December. Brent crude, the global benchmark, was up 4.3% at $64.45 a barrel on London’s ICE Futures exchange, the highest since May 31 and biggest one-day jump since Jan 9.
Iran’s Revolutionary Guard has claimed that they recently shot down a U.S. drone near the Strait of Hormuz. Iran alleged that the drone had entered Iranian airspace, even though U.S. military is adamant that it was in the international airspace. Moreover, Iran’s Revolutionary Guard’s claim came after U.S. military informed of missile hit on one of Saudi desalination plants and stated that it is likely to have come from Yemen.
It goes without saying that while the Saudis and the United States are on one side; the Houthi Yemenis and Iran make up the other one. The tensions between the Saudis and Iran can primarily be attributed to the U.S. sanctions aimed at reducing Iranian oil exports to zero level. Iran made quite a few attempts to evade such sanctions and even threatened to shut down the Strait of Hormuz if sanctions aren’t lifted.
However, tensions in the Middle East were escalating over the past few weeks following the damage of two tankers from Saudi Arabia, one vessel from Norway, and one from United Arab Emirates by sabotage attacks between the Persian Gulf and Gulf of Oman.
It was wrong of everyone to play down the gravity of the Middle East issue. After all, almost 22.5 million barrels of oil pass through the Strait of Hormuz each day since the beginning of 2018, which is roughly 24% of the world’s daily oil production. So, any disruption can lead to supply-demand disparity, eventually leading to elevated oil prices.
Talking about supply-demand disparity, the Energy Information Administration reports show that U.S. crude supply fell by 3.1 million barrels for the week ended Jun 14. Notably, OPEC’s decision to convene on Jul 1-2 to review its pledge to curb production was also another factor that aided the price surge.
How to Play Oil’s Northward Journey?
From bigwig oil producers to rig operators to pipeline owners to refiners, all witnessed their shares rally, which resulted in the broader S&P 500 to close at a record high. Energy shares in the S&P 500 index, collectively, were up 2.2%. Lest we forget, that energy shares have been one of the poorest performers so far this year, but now this growing turmoil in Middle East will surely lure investors back into energy players.
As crude oil prices move north, prices of essential goods and commodities increase. And value of gold rises when inflation picks up. After all, it acts as a hedge against inflation. In fact, theoretically, more than 60% of the time, gold and crude oil have a direct relationship. Thus, with oil prices moving north, shares of gold mining companies are also poised to gain traction.
5 Top Picks
We have, thus, selected five solid stocks from the aforesaid areas that can make the most of this bullish oil market. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Anadarko Petroleum CorporationAPC engages in the exploration, development, production, and marketing of oil and gas properties. The company sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 26.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 19% against the Oil and Gas - Exploration and Production - United States industry’s estimated decline of 8.7%.
Approach Resources, Inc.AREX focuses on the acquisition, exploration, development, and production of unconventional oil. The company carries a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 32% over the past 60 days. The company’s expected earnings growth rate for the current year is 23.1% against the Oil and Gas - Exploration and Production - United States industry’s estimated decline of 8.7%.
Evolution Petroleum CorporationEPM engages in the development, production, ownership, and management of oil and gas properties in the United States. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 7.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 9.8% against the Oil and Gas - Exploration and Production - United States industry’s estimated decline of 8.7%. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Holly Energy Partners, L.P. HEP owns and operates petroleum product and crude pipelines. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 3.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 8.8% compared with the Oil and Gas - Production and Pipelines industry’s estimated rally of 3.3%.
AngloGold Ashanti LimitedAU operates as a gold mining company. The company has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 2% over the past 60 days. The company’s expected earnings growth rate for the current year is 90.6% compared with the Mining - Gold industry’s estimated rally of 17%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportHolly Energy Partners, L.P. (HEP) : Free Stock Analysis ReportAnadarko Petroleum Corporation (APC) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportEvolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Know This Before Buying Diversified Royalty Corp. (TSE:DIV) For Its Dividend
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Is Diversified Royalty Corp. (TSE:DIV) 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 your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Diversified Royalty is a new dividend aristocrat in the making. It sure looks interesting on these metrics - but there's always more to the story . There are a few simple ways to reduce the risks of buying Diversified Royalty for its dividend, and we'll go through these 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. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Diversified Royalty paid out 240% of its profit as dividends. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Diversified Royalty paid out 314% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. Cash is slightly more important than profit from a dividend perspective, but given Diversified Royalty's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend.
We update our data on Diversified Royalty every 24 hours, so you can always getour latest analysis of its financial health, 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. Diversified Royalty has been paying a dividend for the past five years. During the past five-year period, the first annual payment was CA$0.19 in 2014, compared to CA$0.22 last year. Dividends per share have grown at approximately 3.4% per year over this time.
We like that the dividend hasn't been shrinking. However we're conscious that the company hasn't got an overly long track record of dividend payments yet, which makes us wary of relying on its dividend income.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Diversified Royalty has grown its earnings per share at 12% per annum over the past five years. Paying out more in dividends than was reported as profit can make sense in some cases, we would be inclined to avoid a company doing this, unless there were a solid reason.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. We're a bit uncomfortable with Diversified Royalty paying out a high percentage of both its cashflow and earnings. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. In summary, Diversified Royalty has a number of shortcomings that we'd find it hard to get past. Things could change, but we think there are a number of better ideas out there.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 6 Diversified Royalty analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 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. |
5 Best-Performing S&P 500 Stocks So Far This Year
Amid global growth slowdown concerns, the S&P 500 has hit new highs on strong optimism over easing money policies. Fed Chair Jerome Powell in the latest FOMC meeting hinted at future rate cuts. It removed the word “patient” from its updated policy statement and said it would act “as appropriate" in order to sustain an economic expansion that has lasted nearly 10 years.The latest weak job data and subdued inflation along with trade tensions stirred speculation on interest rate cuts. Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Further, the possibility of rate cuts has put pressure on the U.S. dollar, making dollar-denominated products cheaper for foreign buyers and raising demand for American products.The expectation of the resumption of trade talks between the United States and China later this month has added to the strength. Further, recovery in the U.S. housing market, oil price surge and waves of deal activities are also driving the bulls lately. All these developments have rekindled investors’ confidence into the U.S. economy and stock market.
While there are winners from various corners of the space, we have highlighted stocks that have shown strong momentum so far this year and have a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). Below we have presented a bunch of those that have easily led the way on the S&P 500 Index in the first half, gaining more than 45%, and will continue to outperform heading into the second half. You can seethe complete list of today’s Zacks #1 Rank stocks here.Xerox Corporation XRX – Up 76.9%With a market cap of $7.85 billion, Xerox is the world's leading enterprise for business process and document management. The stock saw positive earnings estimate revision of 13 cents for this year over the past three months with an expected earnings growth rate of 12.43%. It has a Zacks Rank #2 and VGM Score of A.Anadarko Petroleum Corporation APC – Up 59.4%It is one of the world's largest independent oil and gas exploration and production companies. The stock saw solid earnings estimate revision of 99 cents for this year over the past three months with an expected earnings growth rate of 19.03%. Anadarko Petroleum has a market cap of $35.1 billion and sports a Zacks Rank #1. It flaunts a solid VGM Score of B.Copart Inc. CPRT – Up 55%It is a global leader in online vehicle auctions. The stock saw solid earnings estimate revision of 6 cents for the full fiscal year (ending July 2019) over the past three months with an expected earnings growth rate of 27.7%. CPRT has a market cap of $13 billion and carries a Zacks Rank #2. Its VGM Score currently stands at B.Celgene Corporation CELG – Up 52.6%This is a global biopharmaceutical company engaged in the discovery, development and commercialization of innovative therapies for the treatment of cancer and immune-inflammatory related diseases. The stock saw positive earnings estimate revision of a penny for this year over the past two months and has an expected growth rate of 20.9%. It has a Zacks Rank #2 and VGM Score of A. Celgene Corporation has a market cap of $69 billion.Tyson Foods Inc. TSN – Up 45.6%This is the world's largest processor and marketer of chicken, beef and pork, the second-largest food company in the Fortune 500 and a member of the S&P 500. With a market cap of $28.4 billion, the stock witnessed negative earnings estimate revision of 6 cents for the year (ending September 2019) in the past three months. It has an estimated earnings decline of 3.1%. The stock has a Zacks Rank #2 and VGM Score of A.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportTyson Foods, Inc. (TSN) : Free Stock Analysis ReportCelgene Corporation (CELG) : Free Stock Analysis ReportXerox Corporation (XRX) : Free Stock Analysis ReportAnadarko Petroleum Corporation (APC) : Free Stock Analysis ReportCopart, Inc. (CPRT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here's Why You Should Add Leidos Holdings (LDOS) Stock Now
Earnings estimates forLeidos Holdings, Inc.LDOS for 2019 and 2020 have moved up 5.02% and 11.85% on a year-over-year basis to $4.60 and $5.14, respectively. Revenue estimates for 2019 and 2020 rose 5.24% and 4.08% on a year-over-year basis to $10.73 billion and $11.17 billion, respectively.
Let’s focus on the factors that make the stock an appropriate pick at the moment.
Zacks Rank & VGM Score
The stock currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Surprise History & Long-Term Growth
The company has an average four-quarter positive earnings surprise of 6.81%.
The company’s long-term (3 to 5 years) earnings growth is pegged at 7.50%.
Price Performance
In the past 12 months, Leidos Holdings’ shares have rallied 36.1% compared with the industry’s rise of 8.8%.
Strong Backlog
Increased contract wins from the Pentagon and other U.S. allies are key growth catalyst for Leidos Holdings, courtesy of cost-effective defense solutions.. In fact, these contract wins tend to bolster the company’s backlog.At the end of the reported quarter, the company’s total backlog was $21.5 billion compared with $20.8 billion at the end of 2018. Of this total backlog, $6.1 billion was funded.An increase in backlog indicates the quality of products supplied by the company and willingness of the customers to order and wait for the quality products of the company.
Other Key Picks
Some other top-ranked stocks in the same sector are Wesco Aircraft Holdings, Inc WAIR, Northrop Grumman Corp NOC and General Dynamics Corporation GD, each carrying a Zacks Rank #2.
Wesco Aircraft’s long-term growth estimates are currently pegged at 12%. The Zacks Consensus Estimate for 2019 earnings has moved up 3.7% to 84 cents in the past 60 days.
Northrop Grumman came up with average positive earnings surprise of 18.50% in the last four quarters. The company’s long-term growth estimates are currently pegged at 12.80%.
General Dynamics pulled off average positive earnings surprise of 7.33% in the last four quarters. The company’s long-term growth estimates are currently pegged at 8.90%.
Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportLeidos Holdings, Inc. (LDOS) : Free Stock Analysis ReportWesco Aircraft Holdings, Inc. (WAIR) : Free Stock Analysis ReportGeneral Dynamics Corporation (GD) : Free Stock Analysis ReportNorthrop Grumman Corporation (NOC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Bitcoin Price Eyes $10K After Erasing 40% of Bear Market Drop
• Bitcoin’s price has recovered 40 percent of the bear market drop. The breakout has bolstered the bullish setup on the weekly chart, which is currently reporting the strongest buying pressure in six months. As a result, BTC looks set to break above the psychological resistance of $10,000.
• The price has already rallied nearly 130 percent so far this quarter. Hence, a temporary correction due to bull exhaustion cannot be ruled out.
• The outlook, however, will remain bullish as long the price is held above recent lows near $7,500.
Bitcoin’s (BTC) price has erased 40 percent of the sell-off seen in the twelve months to December 2018 and looks set to rise above $10,000.
The leading cryptocurrency by market value rose above $9,740 on Bitstamp earlier today, retracing more than 40 percent of the drop from the record high of $19,666 reached in December 2017 to the low of $3,122 hit in December 2018. The global average price, as calculated byCoinMarketCap, is just $150 away from achieving that milestone.
As of writing, BTC is changing hands at $9,840 on Bitstamp – the highest level since May 2018 – representing 31 percent gains from lows near $7,500 seen on June 10.
Related:At-Home Crypto Miner Coinmine Now Pays Out Bitcoin
It is worth noting that bitcoin’s latest leg higher is a accompanied by a rally in gold prices. The yellow metal has risen from 1,320 to $1,411 over the last ten days.
The positive correlation between the two assets contradicts the divergent price actionseenin the preceding seven months.
For instance, BTC fell from $6,200 to levels near $3,100 in four weeks to December 14, 2018. During the same time period, gold went from $1,200 to $1,300 and further extended the rally to $1,346 (Feb. 20 high). By early May, the yellow metal was down 6 percent from February highs, while bitcoin was up 76 percent from December lows.
The change from negative correlation to positive correlation, if sustained, could boost bitcoin’s appeal as digital gold. Many including the likes of Tyler Winklevoss, founder of Winklevoss Capital Management, alreadyconsiderbitcoin as gold 2.0.
Related:Bitcoin Price Breaches $9.6K to Hit 400-Day High
It remains to be seen if the two assets continue to move in the same direction in the near future. That said, technical charts indicate bitcoin is likely to extend its ongoing bullish run to levels above $10,000.
Bitcoin’s convincing move above the widely tracked 38.2 percent Fibonacci retracement hurdle of $9,442 has strengthened the bullish case put forward by the higher lows, higher highs pattern, ascending 5- and 10- week moving averages and Chaikin money flow index, which is currently reporting strongest buying pressure in six months with a reading of 0.35.
As a result, the cryptocurrency looks set to test the next major resistance range marked by the April 2018 high of $9,949 and the psychological resistance of $10,000.
A high-volume weekly close above $10,000 would expose the 50 percent Fibonacci retracement resistance of $11,394.
It is worth noting that the cryptocurrency is up nearly 140 percent on a quarter-to-date basis (from April 1’s opening price). The bulls usually take a breather following such stellar rallies.
So, a sudden correction cannot be ruled out. That said, the outlook would turn bearish only if the price violates the bullish higher lows pattern with a move below $7,500.
Disclosure:The author holds no cryptocurrency at the time of writing
Bitcoinimage via CoinDesk archives; charts byTradingView
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PHOTOS: Storms bring flooding and power outages across the U.S.
Chris Smith makes his way through floodwaters to the Macedonia Baptist Church in Westville, N.J., Thursday, June 20, 2019. Severe storms containing heavy rains and strong winds spurred flooding across southern New Jersey, disrupting travel and damaging some property. (Photo: Matt Rourke/AP) Storms were blamed for two deaths and left hundreds of thousands of people without power across the southern United States, forecasters said. Fallen trees ripped down power lines and crashed into buildings along a line from Texas to Alabama overnight and into Thursday morning, the national Storm Prediction Center reported. Similar damage continued later in the day in parts of Georgia, the Carolinas and southeast Virginia. Straight-line winds of up to 85 mph (137 kph) damaged roofs Wednesday in the northeast Texas city of Greenville, the National Weather Service reported Thursday. Local officials had initially suspected a tornado. In Mississippi, Jackson Salter, 19, died when a tree fell on his home Wednesday night, Washington County Coroner Methel Johnson told The Delta Democrat-Times . A fallen tree was also blamed for the Thursday afternoon death of a person in Columbia, South Carolina, the Richland County Coroner's Office said. A wind gust of 79 mph (127 kph) was recorded in the city that afternoon. Across the Carolinas, there were dozens of reports of trees down, some landing on houses in North Carolina and others landing in the middle of Interstate 20 in South Carolina. Utilities reported more than 200,000 customers without power Thursday evening across Georgia, North Carolina, South Carolina and Virginia. More than 50,000 remained without power in Arkansas on Thursday evening, long after storms exited. (AP) Handyman Jim Crow cleans an Aerie's Zipline building on Wednesday, June 19, 2019, in along Main Street in Grafton, Ill. On Wednesday, the level of the Mississippi River was 30.2 feet, having dropped about five feet from its crest at 35.17 on June 7. (Photo: Laurie Skrivan/St. Louis Post-Dispatch via AP) Members of the 233rd Military Police out of Springfield, Illinois, take down the most eastern portion of the flood wall along Main Street on Wednesday, June 19, 2019, in Grafton. On Wednesday, the level of the Mississippi River was 30.2 feet, having dropped about five feet from its crest at 35.17 on June 7. (Photo: Laurie Skrivan/St. Louis Post-Dispatch via AP) A lone car, once submerged in flood waters, sits caked in mud along Main Street on Wednesday, June 19, 2019, in Grafton, Ill. On Wednesday, the level of the Mississippi River was 30.2 feet, having dropped about five feet from its crest at 35.17 on June 7. (Photo: Laurie Skrivan/St. Louis Post-Dispatch via AP) People inspect the floodwaters submerging Broadway in Westville, N.J. Thursday, June 20, 2019. Severe storms containing heavy rains and strong winds spurred flooding across southern New Jersey, disrupting travel and damaging some property. (Photo: Matt Rourke/AP) Floodwaters partially submerge vehicles on Broadway in Westville, N.J. Thursday, June 20, 2019. Severe storms containing heavy rains and strong winds spurred flooding across southern New Jersey, disrupting travel and damaging some property. (Photo: Matt Rourke/AP) Officials and residents gather on the edge of the floodwaters submerging Broadway in Westville, N.J. Thursday, June 20, 2019. Severe storms containing heavy rains and strong winds spurred flooding across southern New Jersey, disrupting travel and damaging some property. (Photo: Matt Rourke/AP) A man in a home along High St. waits for rescuers to come back for him after overnight thunderstorms flooded much of Westville, N.J. on Thursday, June 20, 2019. (Photo: Elizabeth Robertson/The Philadelphia Inquirer via AP) Rescuers guide boats on High St as they bring people to safety after overnight thunderstorms flooded much of Westville, N.J. on Wednesday, June 20, 2019. (Photo: Elizabeth Robertson/The Philadelphia Inquirer via AP) A dumpster floats on floodwater along Broadway in Westville, N.J. Thursday, June 20, 2019. Severe storms containing heavy rains and strong winds spurred flooding across southern New Jersey, disrupting travel and damaging some property. (Photo: Matt Rourke/AP) Parishioners pump out floodwater inside the Macedonia Baptist Church in Westville, N.J. Thursday, June 20, 2019. Severe storms containing heavy rains and strong winds spurred flooding across southern New Jersey, disrupting travel and damaging some property. (Photo: Matt Rourke)/AP People inspect the floodwaters submerging Broadway in Westville, N.J. Thursday, June 20, 2019. Severe storms containing heavy rains and strong winds spurred flooding across southern New Jersey, disrupting travel and damaging some property. (Photo: Matt Rourke/AP) Todd Allen, his dog Rusty with his aunt Betty and uncle Roger Allen, right, of Vincentown, N.J., canoe along flooded roads after heavy rain fell on the area Thursday June 20, 2019. Severe storms containing heavy rains and strong winds have spurred flooding in the suburbs of Philadelphia. (Photo: Tyger Williams/The Philadelphia Inquirer via AP) A woman walks back to her car after it was stranded in flood waters near the intersection of East Vine Street and East Crosstown Parkway in Kalamazoo, Mich., Thursday, June 20, 2019. (Photo: Joel Bissell/Kalamazoo Gazette via AP) A man takes pictures of the flooded Waldo Stadium on the campus of Western Michigan University in Kalamazoo, Mich., Thursday, June 20, 2019. (Photo: Joel Bissell/Kalamazoo Gazette via AP) People look at the flooded Waldo Stadium on the campus of Western Michigan University in Kalamazoo, Mich., Thursday, June 20, 2019. (Photo: Joel Bissell/Kalamazoo Gazette via AP) |
InvestmentPitch Media Video Discusses GGX Gold's Drill Program on Gold Drop Property in BC with 32 Holes Completed at C.O.D. Main Vein with Drill Moved to C.O.D. North Vein - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - June 21, 2019) - (NewsFile Corp - June 21, 2019) - GGX Gold (TSXV: GGX) (OTCQB: GGXXF) (FSE: 3SR2) has now completed 32 diamond drill holes on the C.O.D. vein and has moved to a second location on the Gold Drop Property. The Gold Drop Property is located in the Greenwood mining camp in southern British Columbia, one of the most prolific mining camps in Canada.
For more information, please view the InvestmentPitch Media "video" which providesadditionalinformation about this news and the company. If this link is not enabled, please visitwww.InvestmentPitch.comand enter "GGX Gold" in the search box.
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Since the start of the season in Mid-April, the company has completed the first stage of infill drilling on the C.O.D. main vein, which consisted of 32 holes for a total of 1,923 meters. Fourteen holes, which intersected the C.O. D. quartz vein at the target depths, contained variable amounts of pyrite mineralization. Five vein intersects were visibly mineralized with possible gold-telluride mineralization and one other intercept contained visible gold.
The rig has now been moved to explore the C.O.D. North vein, which is a parallel vein located 700 meters northeast of the main vein. Trench samples collected in 2018 from the C.O.D. vein assayed up to 21.7 grams per tonne gold over 0.4 meters. An initial stage of 10 holes is planned to test the structure in the area of the surface trenches.
The drill program will continue this season with holes planned to test the Everest vein, a visible gold bearing vein that was discovered in 2018, and the Gold Drop mine, where visible gold in quartz has been identified in surface exposures.
The highlights of the 2018 diamond drilling program were drill holes COD18-67 and COD18-70 that intersected near-surface, high-grade gold, silver and tellurium in a newly discovered southern extension of the C.O.D vein.
The company is currently under a 60 day "Exclusivity Period" to potentially acquire Golden Dawn's Kettle River Claim Group which consists of 2 separate claim blocks, the Phoenix and the Tam O'Shanter blocks.
GGX Gold is currently raising up to $1,750,000 from a combination of flow-through and non-flow-through, non-brokered private placements.
For more information, please visit the company's website atwww.ggxgold.com, contact George Sookochoff, President, at 604-488-3900 or emailgeorge@GGXgold.com. For Investor Relations contact Jack Singh at 604-720-6598 or email atir@ggxgold.com.
About InvestmentPitch Media
Investmentpitch Media leverages the power of video, which together with its extensive distribution, positions a company's story ahead of the 1,000's of companies seeking awareness and funding from the financial community. The company specializes in producing short videos based on significant news releases, research reports and other content of interest to investors.
CONTACT:InvestmentPitch MediaBarry Morgan, CFObmorgan@investmentpitch.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45796 |
Here's Why Monster Beverage (MNST) is a Hot Investment Pick
Monster Beverage CorporationMNST appears to be a solid bet, given the company’s efforts to remain on growth trajectory. We expect the company to continue benefiting from brand strength, constant product launches and innovations. Further, it is witnessing robust growth in international markets. All these helped the company to deliver robust first-quarter 2019 results.In the past six months, shares of this Corona, CA-based company have rallied 32.5% outperforming the industry’s growth of around 17%.
Let’s delve deeper into the factors, which have been driving this Zacks Rank #2 (Buy) stock.Factors Narrating Monster Beverage’s Growth StoryMonster Beverage offers a wide range of energy drink brands such as Monster Energy, Java Monster, Caffe Monster, Espresso Monster, among others. Further, the addition of Coca-Cola’s energy drink brands to the company’s portfolio (included in the Strategic Brands segment) has strengthened its position in the global energy drinks market.Management remains optimistic about the energy drinks category, which is expected to continue gaining momentum, with the Monster brand growing significantly. Moreover, product launches across the Monster family will drive the company’s overall top and bottom lines. Evidently, net sales at Monster Energy Drinks and Strategic Brands segments grew 11.5% and 6.9%, respectively, in the first quarter of 2019.In addition, the company has a solid international presence and remains on track to enhance its global footprint to expand market share. The deal with Coca-Cola in 2015 (also referred to as the “TCCC Transaction”) provides Monster Beverage with full access to Coca-Cola’s world-class global distribution network. This deal has significantly aided the company’s international presence.Notably, Monster Beverage has been expanding international operations into various markets including China, India, Africa and the Middle East countries. These developing and emerging markets have a high growth potential due to their relatively low per capita consumption. Another factor is the burgeoning middle-class population, with rising income levels, which has been driving the demand for convenient, trendy and affordable food and beverages in these countries. In the second quarter of 2019, the company plans to launch Monster Energy brand in Azerbaijan and Saudi Arabia, with further launches in the EMEA planned for later this year.Apart from these, the company is benefiting from product innovation. There is consistent demand for new products that are tasty as well as healthy. Monster Beverage regularly introduces new flavors of existing products, while removing non-performing products. In the first quarter, it successfully launched Monster Energy Ultra Paradise, Monster Dragon Tea line, Reign Total Body Fuel line of high-performance energy drinks and Java Monster Swiss Chocolate in the United States.Additionally, the company rolled out many Monster Energy and Strategic Brands energy drinks in existing international geographies. Moreover, it is set to launch the new strategically preferred affordable energy brand — Predator — in additional international markets in 2019.We expect all the aforementioned factors to consistently boost the company’s performance and help it remain in investors’ good books.3 More Beverage Stocks to WatchPepsiCo, Inc. PEP has a long-term earnings growth rate of 7% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Constellation Brands, Inc. STZ has a long-term earnings growth rate of 8.6% and a Zacks Rank #2.Davide Campari-Milano S.p.A. DVDCY has a long-term earnings growth rate of 7.5% and a Zacks Rank #2.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportConstellation Brands Inc (STZ) : Free Stock Analysis ReportMonster Beverage Corporation (MNST) : Free Stock Analysis ReportPepsico, Inc. (PEP) : Free Stock Analysis ReportCampari Group (DVDCY) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Spotify CEO thinks Libra could be used to pay artists directly
Spotify CEO Daniel Ek believes Facebook’s recently announced Libra coin could be used to pay music artists directly in the future. The world was set abuzz this week when Facebook released the white paper for its long-rumoured cryptocurrency known as Libra . Upon its release, it was revealed that multiple mainstream behemoths from various industries have already signed up to be involved, including the popular music streaming platform Spotify. Some other notable companies involved in the project include Mastercard, PayPal, Visa, Booking Holidays, Lyft, Uber Technologies, Coinbase, Andreesen Horowitz, and eBay. During a recent interview for Spotify’s ‘ Culture: Now Streaming ‘ podcast, the CEO of the platform – Daniel Ek – alluded to the possibility of paying music artists directly using the Libra coin. He said: “The most important thing is it [Libra] will enable paying for things digitally in many of the places around the world where those kind of methods just doesn’t exist. A service like Spotify, you can imagine what would happen by allowing users, for instance, to be able to pay artists directly. “That can open up massive opportunities where all of a sudden a user in Japan might pay a creator in Argentina. And that opens up huge opportunities for how we can further our mission.” It is interesting to see the Spotify CEO suggest this is a possibility since it opens drastically new avenues for the platform going forward. It would also help push for more mainstream adoption as Spotify’s entire user base would be exposed to cryptocurrency, giving people the ability to support their favourite artists using crypto. Interested in reading more about Facebook’s Libra coin? Discover more about how it is aiming to transition into a permissionless blockchain within five years. The post Spotify CEO thinks Libra could be used to pay artists directly appeared first on Coin Rivet . |
Verastem Shares Response Rate From COPIKTRA Data
Verastem Oncology(NASDAQ:VSTM)presentedCOPIKTRA data showing response rates of 44% to 57%, including complete response rates of 15% to 22% in patients with relapsed or refractory peripheral T-cell lymphoma.
Verastem is a biopharmaceutical company focused on developing medicines to improve the survival and quality of life of cancer patients. COPIKTRA is also being developed by for the treatment of peripheral T-cell lymphoma.
“Although the patient numbers are small in these two Phase 1 studies, we see a positive trend in response rates,” said Steven Horwitz, Memorial Sloan Kettering Cancer Center, co-principal investigator of the Phase 1 and 2 studies, and lead author of the oral presentation.
Verastem shares traded higher by 2.5% at $1.63 in Friday's pre-market session.
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Are Insiders Selling Mainstreet Equity Corp. (TSE:MEQ) Stock?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sellMainstreet Equity Corp.(TSE:MEQ), you may well want to know whether insiders have been buying or selling.
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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'.
View our latest analysis for Mainstreet Equity
Over the last year, we can see that the biggest insider sale was by the Vice President of Operations, Sheena Keslick, for CA$85k worth of shares, at about CA$56.69 per share. So we know that an insider sold shares at around the present share price of CA$56.10. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Notably Sheena Keslick was also the biggest buyer, having purchased CA$57k worth of shares.
All up, insiders sold more shares in Mainstreet Equity than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Mainstreet Equity better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
We have seen a bit of insider selling at Mainstreet Equity, over the last three months. The selling netted CA$85k for Sheena Keslick. But CA$57k was spent on buying, too, (as we mentioned above). 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Mainstreet Equity insiders own 49% of the company, worth about CA$259m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
Our data shows a little more insider selling than buying in the last three months. But the difference isn't enough to have us worried. While we gain confidence from high insider ownership of Mainstreet Equity, we can't say the same about their transactions in the last year, in the absence of further purchases. Of course,the future is what matters most. So if you are interested in Mainstreet Equity, you should check out thisfreereport on analyst forecasts for the company.
Of courseMainstreet Equity may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Carnival (CCL) Q2 Earnings Top, Weak View Hurts Cruise Stocks
Carnival CorporationCCL reported second-quarter fiscal 2019 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. However, shares of Carnival declined 7.7% on Jun 20. Furthermore, the company trimmed its guidance for fiscal 2019. In the coming quarters, quarterly results will be impacted by Trump administration's policy change on travel to Cuba and lower ticket prices.
A glance at the company’s price performance too shows that it has underperformed the industry in the past three months. The stock has lost 13.5% against the industry’s 0.2% growth.
Adjusted earnings in the quarter under review came in at 66 cents per share, which exceeded the Zacks Consensus Estimate of 61 cents but declined 2.9% year over year. Meanwhile, revenues of $4,838 million outpaced the consensus mark of $4,532 million and increased 11% year over year. This upside can be attributed strength in passenger tickets, and onboard and other as well as tour and other businesses.On a constant-currency basis, net revenue yields rose 0.6% year over year. Notably, net on-board and other yields that increased 1.6% in constant currency led to the uptick.Segmental RevenuesCarnival generates revenues from the Passenger Tickets business, and the Onboard and Other as well as the Tour and Other segments. Revenues at the Passenger Tickets business segment increased 2% year over year to $3,257 million. Onboard and Other revenues totaled $1,122 million, up 34.6% year over year. Tour and Other revenues rose 69% year over year to $71 million.ExpensesNet cruise costs (in constant dollar) per available lower berth day (ALBD), excluding fuel, decreased 1.5%. Gross cruise costs (including fuel) per ALBD, in current dollars, were up 12.1%.
Carnival Corporation Price, Consensus and EPS Surprise
Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote
Balance SheetCarnival exited the fiscal second quarter with cash and cash equivalents of approximately $1,202 million, down from $982 million as of Nov 30, 2018. Trade and other receivables summed $405 million, down from $358 million as of Nov 30, 2018. Long-term debt amounted to approximately $9,080 million.Cash from operations totaled $2,053 million in the quarter under review. Carnival spent $893 million on capital expenditure and $346 million on dividends during the same period.Q3 OutlookCarnival expects third-quarter fiscal 2019 EPS to be $2.50-$2.54 compared with adjusted earnings of $2.36 per share reported the prior-year quarter. The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.70. In constant currency, net revenue yields are expected to be flat to down marginally. Also, net cruise costs (excluding fuel), per ALBD, are expected to increase by 0.5% to 1.5% compared with the prior-year figure, in constant currency.Fiscal 2019 GuidanceCarnival stated that Continental European brands are impacted by heightened geopolitical and macroeconomic headwinds. However, the company continues to expect higher yields from North America and Australia brands, which will overshadow lower yields in the company’s Europe and Asia brands during the third and fourth quarter of fiscal 2019.Furthermore, Trump administration's policy change on travel to Cuba is concerning. It will impact Carnival’s earnings by 4 cents to 6 cents, whereas Voyage disruptions related to Carnival Vista will hurt the bottom line by 8-10 cents. This apart, the company is expecting lower ticket prices in the second half of 2019.Taking the afore-mentioned factors into consideration, Carnival now expects net cruise revenues to improve 4.5%, with 4.5% capacity growth compared with the prior projections of increase by 5.5% and 4.6%, respectively. For the fiscal year, the company anticipates EPS to be in the $4.25-$4.35 band, down from $4.35-$4.55 projected earlier. The consensus estimate for the current year is pegged at $4.53.However, Carnival continues to expect net revenue yields to increase by 1% in constant currency.Domino EffectCarnival’s trimmed guidance for fiscal 2019 disappointed investors. Following the news, cruise stocks like Norwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Cruises Ltd. RCL declined 2.5% and 3.2%, respectively, on Jun 20.Zacks Rank & A Key PickCarnival has a Zacks Rank #3 (Hold). A better-ranked stock in the same space is SeaWorld Entertainment, Inc. SEAS, carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.SeaWorld Entertainment reported better-than-expected earnings in the trailing four quarters, the average being 35.6%.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportSeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis ReportRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis ReportNorwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis ReportCarnival Corporation (CCL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Should You Consider Fidelity National Information Services, Inc. (NYSE:FIS)?
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I've been keeping an eye on Fidelity National Information Services, Inc. (NYSE:FIS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe FIS has a lot to offer. Basically, it is a company with a an impressive history of dividend payments as well as a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Fidelity National Information Services here.
Income investors would also be happy to know that FIS is a great dividend company, with a current yield standing at 1.1%. FIS has also been regularly increasing its dividend payments to shareholders over the past decade.
For Fidelity National Information Services, I've compiled three key factors you should further examine:
1. Historical Performance: What has FIS's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Valuation: What is FIS 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 FIS is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of FIS? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Some Moneta Porcupine Mines (TSE:ME) Shareholders Are Down 49%
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Moneta Porcupine Mines Inc.(TSE:ME) shareholders should be happy to see the share price up 26% in the last month. But that doesn't change the fact that the returns over the last three years have been less than pleasing. Truth be told the share price declined 49% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.
Check out our latest analysis for Moneta Porcupine Mines
Moneta Porcupine Mines didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems 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 Moneta Porcupine Mines 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. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing.
Moneta Porcupine Mines had cash in excess of all liabilities of just CA$1.1m when it last reported (March 2019). So if it has not already moved to replenish reserves, we think the near-term chances of a capital raising event are pretty high. With that in mind, you can understand why the share price dropped 20% per year, over 3 years. You can click on the image below to see (in greater detail) how Moneta Porcupine Mines'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. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? It would bother me, that's for sure. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Investors in Moneta Porcupine Mines had a tough year, with a total loss of 11%, against a market gain of about 1.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 5.9%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Moneta Porcupine Mines by clicking this link.
Moneta Porcupine Mines is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with 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. |
Geri Horner's BBC show cancelled after two series
Rob Beckett and Geri Horner's show 'All Together Now' has been axed after just two series (Ian West/Getty) The BBC has cancelled All Together Now , the Saturday night music competition hosted by comedian Rob Beckett and Spice Girl Geri Horner. The broadcaster revealed the news in a statement, writing: "We would like to thank Rob and Geri and all members of The 100 for two fabulous series and an unforgettable celebrity special. “The award-winning format is now on air in 14 countries and the BBC is delighted to have played a part in bringing this unique singing show to the wider TV world. "We would like to thank the production team for all their hard work in launching such a successful format." Having premiered in January 2018, the show sees a whole host of talented singers perform in front of ‘The 100,’ an assembled team of experts throughout the UK. If anyone in the panel likes any particular performance, they can stand up and join in. The higher the amount of judges who do that, the higher the act’s final score is. At the end of each series, the singer with the most points wins a £50,000 cash prize. Read more: Geri denies Spice Girls tour is on the brink In December that same year, BBC One aired a celebrity special, which included famous faces such as The Only Way is Essex star Gemma Collins and This Morning presenter Alison Hammond to actor Tyger Drew-Honey and former footballer Chris Kamara. All Together Now (BBC) All Together Now ’s second series ran from early March to April 2019. Horner is currently touring the UK and Ireland with fellow Spice Girls Mel B , Emma Bunton and Mel C, and is due to perform at London’s New Wimbledon Theatre tonight (21 June). Elsewhere, Beckett is preparing to take his stand-up comedy on the road with Wallop , a tour starting in October. |
New Strong Buy Stocks for June 21st
Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today: Barrett Business Services, Inc . (BBSI): This company that provides business management solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 1.7% over the last 60 days. Barrett Business Services, Inc. Price and Consensus Barrett Business Services, Inc. Price and Consensus Barrett Business Services, Inc. price-consensus-chart | Barrett Business Services, Inc. Quote Career Education Corporation (CECO): This company that operates colleges, institutions, and universities has seen the Zacks Consensus Estimate for its current year earnings increasing 1.7% over the last 60 days. Career Education Corporation Price and Consensus Career Education Corporation Price and Consensus Career Education Corporation price-consensus-chart | Career Education Corporation Quote Genesis Healthcare, Inc. (GEN): This company that owns and operates skilled nursing facilities and assisted/senior living facilities in the United States has seen the Zacks Consensus Estimate for its current year earnings increasing 72% over the last 60 days. Genesis Healthcare, Inc. Price and Consensus Genesis Healthcare, Inc. Price and Consensus Genesis Healthcare, Inc. price-consensus-chart | Genesis Healthcare, Inc. Quote Woodward, Inc. (WWD): This company that designs, manufactures, and services control solutions for the aerospace and industrial markets has seen the Zacks Consensus Estimate for its current year earnings increasing 3% over the last 60 days. Woodward, Inc. Price and Consensus Woodward, Inc. Price and Consensus Woodward, Inc. price-consensus-chart | Woodward, Inc. Quote Altair Engineering Inc . (ALTR): This company that provides software and cloud solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 16.7% over the last 60 days. Altair Engineering Inc. Price and Consensus Altair Engineering Inc. Price and Consensus Altair Engineering Inc. price-consensus-chart | Altair Engineering Inc. Quote You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Today's Best Stocks from Zacks Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. Story continues This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year. See their latest picks 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 Woodward, Inc. (WWD) : Free Stock Analysis Report Genesis Healthcare, Inc. (GEN) : Free Stock Analysis Report Career Education Corporation (CECO) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report Altair Engineering Inc. (ALTR) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Pharma Stock Roundup: PFE to Buy ARRY, RHHBY, MRK, AZN Drugs Get Regulatory Nod
This week Pfizer PFE announced a definitive deal to buy Array BioPharma to strengthen its cancer portfolio. In other news, Merck’s MRK blockbuster PD-L1 inhibitor, Keytruda won approval for previously treated advanced small cell lung cancer (SCLC) while AstraZeneca AZN and Roche RHHBY gained approval in Japan for their investigational medicines. Meanwhile, AstraZeneca and Merck’s Lynparza was approved in EU and Japan for first-line maintenance treatment of BRCA-mutated advanced ovarian cancer.
Recap of the Week’s Most Important Stories
Pfizer to Buy Array BioPharma:In a bid to strengthen its cancer portfolio, Pfizer announced a definitive agreement to buy Array BioPharma for $48 per share in cash for a total enterprise value of approximately $11.4 billion. Array, which makes targeted small molecule drugs for treating cancer, launched its only commercial medicine, Braftovi plus Mektovi, as a treatment for BRAF-mutant melanoma, last year. The combination medicine is also being evaluated in label expansion studies for other cancer types including metastatic colorectal cancer (mCRC) with BRAF mutation. The acquisition will bring to Pfizer a large portfolio of royalty-generating out-licensed medicines. The transaction has been approved by the boards of both the companies and is expected to close in the second half of the year.
FDA Approves Merck’s Keytruda for SCLC:The FDA granted accelerated approval for label expansion of Keytruda as a monotherapy for previously treated advanced small cell lung cancer (SCLC). The approval was based on clinical response data from SCLC cohorts of the phase Ib KEYNOTE-028 and phase II KEYNOTE-158 studies. While Keytruda already holds a strong position in the non-small cell lung cancer market, this is the first approval for the drug in the SCLC indication, which accounts for 10% to 15% of all lung cancers.
Several Approvals for AstraZeneca’s Drugs:AstraZeneca/Merck’s PARP inhibitor Lynparza was granted approval in EU and Japan for first-line maintenance treatment of BRCA-mutated advanced ovarian cancer. It was approved in the United States for the indication in late 2018. With the latest approval, Lynparza can now be used as a maintenance monotherapy for the treatment of advanced ovarian cancer patients with BRCA1/2 mutation who have achieved complete or partial response, following first-line standard platinum-based chemotherapy. The regulatory filing was based on data from the phase III SOLO-1 study.
AstraZeneca also won approval from Japan’s regulatory body for PT010, its investigational triple-combo inhaler and Bevespi Aerosphere, its fixed-dose LABA/LAMA inhaler, both to treat COPD. PT010 will be marketed by the trade name of Breztri Aerospher. Japan marks the first global regulatory approval for Breztri Aerospher while the candidate is under review in the United States and EU.
Roche’s Personalized Medicine Entrectinib Gets Approval in Japan:Japan’s regulatory authority granted marketing approval to Roche’s personalized medicine entrectinib for adult and pediatric patients with NTRK fusion-positive advanced recurrent solid tumors. Japan became the first company to approve this tumor-agnostic medicine, which will be marketed by the trade name of Rozlytrek. It is under priority review in the United States with the FDA’s decision expected in August.
Novo Nordisk Gets EU Approval for Esperoct:The European Commission granted marketing approval to Novo Nordisk’s NVO Esperoct for the treatment of haemophilia A in adult patients and children. The drug is indicated for prophylaxis and on-demand treatment of bleeding as well as for surgical procedures in adolescents and adults with hemophilia. A. Esperoct is expected to be launched in the EU in the second half of 2019. The drug was approved in the United States in February.
Sanofi/Regeneron’s Asthma Candidate Succeeds in Study:Sanofi SNY and partner Regeneron Pharmaceuticals announced that a phase II study evaluating their investigational IL-33 antibody REGN3500 (SAR440340) in asthma met the primary endpoint. Data from the study showed that REGN3500 (SAR440340) monotherapy significantly reduced loss of asthma control (primary endpoint) and improved lung function compared to placebo. However, the REGN3500 plus Dupixent treatment arm failed to demonstrate increased benefit compared to Dupixent.
The NYSE ARCA Pharmaceutical Index rose 2.1% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here is how the seven major stocks performed in the last five trading sessions:
Last week, all the stocks were in the green with AstraZeneca recording the highest gain (4.3%).
In the past six months, Merck has been the biggest gainer (18.9%) while Bristol-Myers BMY has recorded the least gain (0.3%).
(See the last pharma stock roundup here: MRK Buys Small Cancer Biotech, RHHBY, MRK Drugs Get FDA Nod
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportSanofi (SNY) : Free Stock Analysis ReportNovo Nordisk A/S (NVO) : Free Stock Analysis ReportPfizer Inc. (PFE) : Free Stock Analysis ReportRoche Holding AG (RHHBY) : Free Stock Analysis ReportBristol-Myers Squibb Company (BMY) : Free Stock Analysis ReportMerck & Co., Inc. (MRK) : Free Stock Analysis ReportAstraZeneca PLC (AZN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
MongoDB, Inc. (NASDAQ:MDB): Time For A Financial Health Check
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There are a number of reasons that attract investors towards large-cap companies such as MongoDB, Inc. (NASDAQ:MDB), with a market cap of US$9.6b. Doing business globally, large caps tend to have diversified revenue streams and attractive capital returns, making them desirable investments for risk-averse portfolios. However, the key to extending previous success is in the health of the company’s financials. Let’s take a look at MongoDB’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look furtherinto MDB here.
Check out our latest analysis for MongoDB
Over the past year, MDB has borrowed debt capital of around US$298m accounting for long term debt. With this increase in debt, MDB's cash and short-term investments stands at US$476m to keep the business going. We note it produced negative cash flow over the last twelve months. 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 MDB’soperating efficiency ratios such as ROA here.
Looking at MDB’s US$178m in current liabilities, the company has been able to meet these obligations given the level of current assets of US$567m, with a current ratio of 3.18x. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, a ratio above 3x may be considered excessive by some investors.
Since equity is smaller than total debt levels, MongoDB is considered to have high leverage. This is common amongst large-cap companies because debt can often be a less expensive alternative to equity due to tax deductibility of interest payments. Accordingly, large companies often have lower cost of capital due to easily obtained financing, providing an advantage over smaller companies. However, since MDB is presently loss-making, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.
MDB’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. However, the company exhibits proper management of current assets and upcoming liabilities. This is only a rough assessment of financial health, and I'm sure MDB has company-specific issues impacting its capital structure decisions. I suggest you continue to research MongoDB to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MDB’s future growth? Take a look at ourfree research report of analyst consensusfor MDB’s outlook.
2. Valuation: What is MDB 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 MDB 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. |
What You Must Know About MongoDB, Inc.'s (NASDAQ:MDB) Financial Strength
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There are a number of reasons that attract investors towards large-cap companies such as MongoDB, Inc. (NASDAQ:MDB), with a market cap of US$9.6b. Market participants who are conscious of risk tend to search for large firms, attracted by the prospect of varied revenue sources and strong returns on capital. But, the key to their continued success lies in its financial health. I will provide an overview of MongoDB’s financial liquidity and leverage to give you an idea of MongoDB’s position to take advantage of potential acquisitions or comfortably endure future downturns. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look furtherinto MDB here.
View our latest analysis for MongoDB
MDB has increased its debt level by about US$298m over the last 12 months including long-term debt. With this increase in debt, MDB's cash and short-term investments stands at US$476m , ready to be used for running the business. We note it produced negative cash flow over the last twelve months. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can assess some of MDB’soperating efficiency ratios such as ROA here.
With current liabilities at US$178m, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 3.18x. The current ratio is calculated by dividing current assets by current liabilities. Having said that, a ratio greater than 3x may be considered high by some.
With total debt exceeding equities, MongoDB is considered a highly levered company. This isn’t uncommon for large companies because interest payments on debt are tax deductible, meaning debt can be a cheaper source of capital than equity. Consequently, larger-cap organisations tend to enjoy lower cost of capital as a result of easily attained financing, providing an advantage over smaller companies. But since MDB is currently loss-making, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
MDB’s debt and cash flow levels indicate room for improvement. Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue. However, the company exhibits proper management of current assets and upcoming liabilities. I admit this is a fairly basic analysis for MDB's financial health. Other important fundamentals need to be considered alongside. You should continue to research MongoDB to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MDB’s future growth? Take a look at ourfree research report of analyst consensusfor MDB’s outlook.
2. Valuation: What is MDB 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 MDB 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. |
Are Investors Undervaluing AB Volvo (VLVLY) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is AB Volvo (VLVLY). VLVLY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.87. This compares to its industry's average Forward P/E of 10.81. Over the past 52 weeks, VLVLY's Forward P/E has been as high as 11.50 and as low as 7.61, with a median of 9.32.
We should also highlight that VLVLY has a P/B ratio of 2.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.43. Over the past year, VLVLY's P/B has been as high as 2.68 and as low as 1.82, with a median of 2.20.
These are just a handful of the figures considered in AB Volvo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VLVLY is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAB Volvo (VLVLY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Shoe Carnival (SCVL) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Shoe Carnival (SCVL) is a stock many investors are watching right now. SCVL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.66 right now. For comparison, its industry sports an average P/E of 13.04. Over the last 12 months, SCVL's Forward P/E has been as high as 19.59 and as low as 8.86, with a median of 14.34.
SCVL is also sporting a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCVL's PEG compares to its industry's average PEG of 1.26. SCVL's PEG has been as high as 1.35 and as low as 1.21, with a median of 1.28, all within the past year.
Investors should also recognize that SCVL has a P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.96. Within the past 52 weeks, SCVL's P/B has been as high as 2.28 and as low as 1.28, with a median of 1.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SCVL has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.41.
Value investors will likely look at more than just these metrics, but the above data helps show that Shoe Carnival is likely undervalued currently. And when considering the strength of its earnings outlook, SCVL sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportShoe Carnival, Inc. (SCVL) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Should Value Investors Buy AmerisourceBergen (ABC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is AmerisourceBergen (ABC). ABC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.95. This compares to its industry's average Forward P/E of 16.83. ABC's Forward P/E has been as high as 14.32 and as low as 10.10, with a median of 11.90, all within the past year.
Investors should also note that ABC holds a PEG ratio of 1.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABC's industry has an average PEG of 1.76 right now. Over the last 12 months, ABC's PEG has been as high as 1.59 and as low as 1.10, with a median of 1.29.
Finally, investors will want to recognize that ABC has a P/CF ratio of 11.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.80. Within the past 12 months, ABC's P/CF has been as high as 15.84 and as low as 6.91, with a median of 10.29.
These are just a handful of the figures considered in AmerisourceBergen's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABC is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmerisourceBergen Corporation (ABC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Should Value Investors Buy Ally Financial (ALLY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Ally Financial (ALLY). ALLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.80. This compares to its industry's average Forward P/E of 7.85. Over the last 12 months, ALLY's Forward P/E has been as high as 8.68 and as low as 5.80, with a median of 7.70.
Investors should also note that ALLY holds a PEG ratio of 0.56. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALLY's industry has an average PEG of 0.74 right now. ALLY's PEG has been as high as 0.68 and as low as 0.45, with a median of 0.58, all within the past year.
Investors should also recognize that ALLY has a P/B ratio of 0.87. 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. ALLY's current P/B looks attractive when compared to its industry's average P/B of 0.93. Over the past 12 months, ALLY's P/B has been as high as 0.90 and as low as 0.65, with a median of 0.85.
Finally, we should also recognize that ALLY has a P/CF ratio of 4.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ALLY's current P/CF looks attractive when compared to its industry's average P/CF of 4.79. ALLY's P/CF has been as high as 4.33 and as low as 3.08, with a median of 3.95, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ally Financial is likely undervalued currently. And when considering the strength of its earnings outlook, ALLY sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAlly Financial Inc. (ALLY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Are Investors Undervaluing United Rentals (URI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is United Rentals (URI). URI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.09. This compares to its industry's average Forward P/E of 10.77. Over the past 52 weeks, URI's Forward P/E has been as high as 9.93 and as low as 4.87, with a median of 6.53.
Investors will also notice that URI has a PEG ratio of 0.34. 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. URI's industry currently sports an average PEG of 0.88. Over the past 52 weeks, URI's PEG has been as high as 0.55 and as low as 0.27, with a median of 0.37.
Finally, investors will want to recognize that URI has a P/CF ratio of 3.51. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.22. Over the past year, URI's P/CF has been as high as 4.80 and as low as 2.43, with a median of 3.65.
These are only a few of the key metrics included in United Rentals's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, URI looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportUnited Rentals, Inc. (URI) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Are Investors Undervaluing Hexindai Inc. Sponsored ADR (HX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Hexindai Inc. Sponsored ADR (HX). HX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is HX's P/B ratio of 0.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2. Over the past year, HX's P/B has been as high as 3.51 and as low as 0.71, with a median of 1.49.
Finally, investors should note that HX has a P/CF ratio of 5.83. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.26. HX's P/CF has been as high as 9.76 and as low as 1.63, with a median of 6.44, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hexindai Inc. Sponsored ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HX feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHexindai Inc. Sponsored ADR (HX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Should Value Investors Buy Hilltop Holdings (HTH) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Hilltop Holdings (HTH). HTH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for HTH is its P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.57. Over the past 12 months, HTH's P/B has been as high as 1.18 and as low as 0.80, with a median of 0.94.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HTH has a P/S ratio of 1.17. This compares to its industry's average P/S of 2.88.
These are just a handful of the figures considered in Hilltop Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HTH is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHilltop Holdings Inc. (HTH) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is HeidelbergCement (HDELY) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
HeidelbergCement (HDELY) is a stock many investors are watching right now. HDELY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.39, which compares to its industry's average of 17.76. Over the past year, HDELY's Forward P/E has been as high as 10.78 and as low as 8.93, with a median of 9.94.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HDELY has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.91.
Finally, our model also underscores that HDELY has a P/CF ratio of 5.89. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.53. Over the past 52 weeks, HDELY's P/CF has been as high as 7.13 and as low as 4.41, with a median of 5.70.
These are just a handful of the figures considered in HeidelbergCement's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HDELY is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHeidelbergCement AG (HDELY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Synchrony (SYF) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Synchrony (SYF). SYF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.53. This compares to its industry's average Forward P/E of 10.67. Over the past 52 weeks, SYF's Forward P/E has been as high as 9.31 and as low as 5.19, with a median of 7.51.
SYF is also sporting a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SYF's PEG compares to its industry's average PEG of 1.22. Over the last 12 months, SYF's PEG has been as high as 1.03 and as low as 0.49, with a median of 0.79.
We should also highlight that SYF has a P/B ratio of 1.59. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2. Within the past 52 weeks, SYF's P/B has been as high as 1.84 and as low as 1.14, with a median of 1.56.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SYF has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.8.
Finally, our model also underscores that SYF has a P/CF ratio of 6.71. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.26. SYF's P/CF has been as high as 11.51 and as low as 5.47, with a median of 7.40, all within the past year.
These are just a handful of the figures considered in Synchrony's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SYF is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportSynchrony Financial (SYF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here's Why You Should Sell PetroChina (PTR) Stock Right Away
PetroChina Company LimitedPTR has lost 23.8% in the past year and the struggle is likely to continue as the company’s oil production growth prospects appear bleak, considering heavy exposure to significantly mature producing areas.
The pricing chart for the past year shows that PetroChina has underperformed the Zacks Oil and Gas - Integrated - International industry, which has lost around 10.3%. Markedly, the Zacks Consensus Estimate for 2019 earnings per share has been revised downward to $4.58 from $4.90 over the past 30 days.
Following negative earnings estimate revision, the Beijing, China-based company currently carries a Zacks Rank #5 (Strong Sell). Here we take a sneak peek at the major issues plaguing PetroChina.
Factors Dragging the Stock Down
Increase in natural gas imports have resulted in mounting losses for PetroChina as it has to resell the commodity domestically below cost. In 2018, the company lost money to the tune of RMB 24,907 million on sales of imported natural gas and liquefied natural gas (LNG) from Central Asia and Burma.
PetroChina invested RMB 255,974 million in 2018, up 18.4% year over year. Further, it plans to hike 2019 capital outlay by another 18% to RMB 300,600 million. The increased capex may put pressure on the company’s leverage and returns going forward.
A long-term concern for PetroChina is its oil production prospects. While the company is heavily exposed to the Daqing Oil region, the field has significantly matured over the years and is currently well past its prime. In 2018, oil production — accounting for about 60% of the total output — inched up a mere 0.4% from the year-ago period.
Continued weakness in crude prices signify that PetroChina's Exploration and Production segment is likely to post tepid results going forward. While the international benchmark (or the Brent contract) is now down almost 16% from late-April highs, escalating concerns over slowing oil demand growth due to the ongoing U.S.-China feud is likely to result in a further drop in the value.
The company has been exploring expansion and acquisition opportunities offshore and abroad to reduce exposure to mature domestic areas. Nevertheless, amid competitive pressures from its domestic and international peers as well as regulatory constraints, limited meaningful progress has been made thus far. This situation is not expected to materially change any time soon.
Key Picks
Some better-ranked players in the energy space are Montage Resources Corporation MR, Approach Resources Inc. AREX and Chevron Corporation CVX. While Montage Resources sports a Zacks Rank #1 (Strong Buy), Approach Resources and Chevron hold a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Montage Resources’ sales growth is projected at 27.6% through 2019.
Approach Resources surpassed earnings estimates in three of the trailing four quarters, with the average positive surprise being 12.7%.
Chevron’s earnings growth for second-quarter 2019 is projected at 14%.
Today's Best Stocks from Zacks
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEclipse Resources Corporation (MR) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportPetroChina Company Limited (PTR) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Could Marston's PLC (LON:MARS) Have The Makings Of Another Dividend Aristocrat?
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Could Marston's PLC (LON:MARS) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
In this case, Marston's likely looks attractive to investors, given its 6.7% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 64% of Marston's's profits were paid out as dividends in the last 12 months. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. With a cash payout ratio of 149%, Marston's's dividend payments are poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. Marston's paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Marston's's ability to maintain its dividend.
As Marston's has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. Marston's has net debt of 7.93 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 2.00 times its interest expense, Marston's's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
Remember, you can always get a snapshot of Marston's's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Marston's's dividend payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was UK£0.071 in 2009, compared to UK£0.075 last year. Dividend payments have grown at less than 1% a year over this period.
Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Earnings have grown at around 3.3% a year for the past five years, which is better than seeing them shrink! 3.3% per annum is not a particularly high rate of growth, which we find curious. If the company is struggling to grow, perhaps that's why it elects to pay out more than half of its earnings to shareholders.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Marston's gets a pass on its dividend payout ratio, but it paid out virtually all of its cash flow as dividends. This may just be a one-off, but we'd keep an eye on this. Earnings growth has been limited, but we like that the dividend payments have been fairly consistent. Ultimately, Marston's comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 12 analysts we track are forecasting for Marston'sfor freewith publicanalyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 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. |
Here's What You Should Know About Marston's PLC's (LON:MARS) 6.7% Dividend Yield
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Dividend paying stocks like Marston's PLC (LON:MARS) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. 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.
In this case, Marston's likely looks attractive to investors, given its 6.7% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. There are a few simple ways to reduce the risks of buying Marston's for its dividend, and we'll go through these below.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 64% of Marston's's profits were paid out as dividends in the last 12 months. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Marston's paid out 149% of its free cash flow last year, which we think is concerning if cash flows do not improve. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. While Marston's's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Marston's's ability to maintain its dividend.
As Marston's has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). Marston's has net debt of 7.93 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 2.00 times its interest expense, Marston's's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
We update our data on Marston's every 24 hours, so you can always getour latest analysis of its financial health, 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. Marston's has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was UK£0.071 in 2009, compared to UK£0.075 last year. Its dividends have grown at less than 1% per annum over this time frame.
Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think is seriously impressive.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Marston's has grown its earnings per share at 3.3% per annum over the past five years. Growth of 3.3% is relatively anaemic growth, which we wonder about. When a business is not growing, it often makes more sense to pay higher dividends to shareholders rather than retain the cash with no way to utilise it.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Marston's gets a pass on its dividend payout ratio, but it paid out virtually all of its cash flow as dividends. This may just be a one-off, but we'd keep an eye on this. Earnings per share growth has been slow, but we respect a company that maintains a relatively stable dividend. Ultimately, Marston's comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 12 Marston's analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
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. |
When Asked About Human Rights Issues, Trump Pointed to His Website. Here's What We Found
Amnesty International recently sent a questionnaire to the more than two dozen U.S. presidential candidates on human rights issues, ranging from refugees and asylum-seekers to gun violence, LGBTQ equality, and women’s rights.
Nine of those candidates filled out the form, and President Donald Trump, in his response,directedreaders to his website.
“President Trump has a robust record of success and we allow that record to speak for itselfwww.promiseskept.com,”his response reads.
But a search for human rights in the ‘search accomplishments’ bar, yields only one item: “The Department of Health and Human Services Created the Conscience and Religious Freedom Division of the Office For Civil Rights.”
The division was created to ensure that health care workers and health care companies are not required to participate in medical services, such as abortion and suicide, if they object on religious or conscientious grounds. While some may argue that it protects the First Amendment rights of the provider, it simultaneously inhibits the rights of the person seeking these procedures.
Without other examples of Trump’s human rights record on his website, we took a look at his actions related to some of the human rights issues that were included inAmnesty’s 13 questions.
On Trump’s first day in office, the White House websiteremoved all mentions of LGBTQ people and issuesfrom the site. In July of his first year, Trump announced aban on transgender troops serving in the military.
The New York Timesreportedin October 2018 that the Trump administration was considering “narrowly defining gender as a biological, immutable condition determined by genitalia at birth,” which theTimessaid would “essentially eradicate federal recognition of the estimated 1.4 million Americans who have opted to recognize themselves—surgically or otherwise—as a gender other than the one they were born into.”
That same month the State Departmentimplemented a new Trump administration policythat prohibits same-sex domestic partners of foreign diplomats working in the U.S. from getting a visa to move here with their partner.
The Department of Justice filed a brief with the Supreme Court later in October arguing that Title VII of the Civil Rights Act of 1964does not protect gay and transgender workersfrom discrimination on the basis of gender identity or sexual orientation. The Supreme Court announced in April of this year that it will be hearing the case.
The Department of Housing and Urban Developmentproposed a change to the Equal Access Rulein May, which would allow homeless shelters to deny access to transgender people on religious grounds. The State Department has alsorefused to recognize the birthright citizenship of children of multiple same-sex couples. In at least one instance, State Department isappealing a circuit court’s decision to grant the child citizenship.
And earlier this month, the Trump administrationrejected requests from a number of U.S. embassies to fly the rainbow pride flagon embassy flagpoles during Pride Month.
Trump signed an executive order in his first month in office banning citizens from Iraq, Syria, Iran, Libya, Somalia, Sudan, and Yemen from entering the U.S. for 90 daysas a means to keep out “radical Islamic terrorists.”It also indefinitely blocked Syrian refugees from entering the country. He revised the order in March of 2017, removing Iraq from the list. By September of that year, Trump issued a third version of the ‘Muslim Ban,’ which was of indefinite duration.
That same month, the Trump administration formallyannounced plans to end the Deferred Action for Childhood Arrivals program.
Last year, then-Attorney General Jeff Sessions called for the implementation of a “zero tolerance” policy at the border, which resulted in extensive family separations.Thousands of children were separated from their familiesbefore Trump signed an executive order in June that replaced family separation with family detention. He instructed Sessions to ask the federal court tomodify the long-standing Flores Agreement, which prevents the government from keeping children in detention for more than 20 days to allow families to be detained indefinitely.
The Department of Homeland Security announced last year thatit was not extending Temporary Protected Statusfor individuals from Nepal, Honduras, Sudan, Nicaragua, Haiti, and El Salvador, affecting more than 300,000 people. The Trump administration has also changed asylum laws, ruling last year that fears of domestic or gang violence was not grounds for asylum in the U.S., and issuing an order in April that would keep those seeking asylum in detention while they wait to see a judge.
Trump enabled the longest government shutdown in U.S. history over a dispute regarding funding the U.S.-Mexico border wall in January, and then proceeded todeclare a national emergencyin February to acquire the funding.
The Trump administration plans toinclude a citizenship question on the upcoming 2020 Census, which it says is needed to enforce the Voting Rights Act. Critics argue that it would be used to deter those living in the U.S. illegally from participating in the Census, which could change how seats in Congress are allocated. The Supreme Court is due to rule on the matter later this month.
Earlier this week, Trump claimed that ICE will make mass arrests of migrants,writingon Twitter, “Next week ICE will begin the process of removing the millions of illegal aliens who have illicitly found their way into the United States. They will be removed as fast as they come in. Mexico, using their strong immigration laws, is doing a very good job of stopping people”
In September 2017, the Department of Education announced that it wasrescinding Obama-era guidelines on sexual assault in schools, narrowing the definition of sexual harassment and increasing the burden of proof in assault claims.
This year the Trump administration announced that it would bar organizations that provide abortion referrals from getting federal family planning funds, known as a “domestic gag rule.” It would prevent organizations like Planned Parenthood from receiving federal funding under Title X.
At the same time, the Trump administration has also reinstated a “global gag rule.” The initial law, which was reinstated in January 2017, prohibits foreign NGOs from using U.S. family planning aid to perform or promote abortion. In March 2017, the administration expanded the law to include global health aid to foreign NGOs, and then in March of this yearexpanded the law even further, such that organizations that give money to foreign NGOs that perform abortions would not be eligible for U.S. health aid.
The Federal Commission on School Safety issued areportin December 2018, which recommends arming teachers as a possible recourse to prevent school shootings. Before the report was released, Education Secretary Betsy DeVos had already said that she wouldn’t prevent states fromtapping into the school enrichment fund to put guns in schools.
Trump has repeatedly met with and praised numerous global leaders known for their repressive regimes and poor records on human rights, including Rodrigo Duterte, President of the Philippines; Abdel Fattah el-Sisi, President of Egypt; Mohammed bin Salman, Crown Prince of Saudi Arabia; Recep Tayyip Erdoğan, President of Turkey; Vladimir Putin, President of Russia; and Kim Jong-un, Supreme Leader of North Korea.
In June 2018, the U.S. announced itswithdrawal from the UN Human Rights Council—just a day after UN human rights chief Zeid Ra’ad al-Hussein denounced the Trump administration’s family separation policies.
In April, the Trump administrationfailed to nominateanyone to the UN Committee on the Elimination of Racial Discrimination.
And last month, the Trump administration announced plans to launch theCommission on Unalienable Rights, which is intended to “provide fresh thinking about human rights discourse where such discourse has departed from our nation’s founding principles of natural law and natural rights.”
Critics have expressed concern that, asThe Washington Postsaid, “any group with any ideology can use the resonant language of rights to push its own agenda.” In particular, “natural law” could be used by religious groups to reject homosexuality, transgender rights, and reproductive choice.
—Trump’sMAGA rallies cost big bucks—and cities foot the bills
—Black women voterswill be central to the 2020 election, experts predict
—Can Trump fire Fed Chair Jerome Powell?What history tells us
—Alexandria Ocasio-Cortez’s message for democrats after“boy bye” tweet
—What you need to know about theupcoming 2020 primary debates
Get up to speed on your morning commute withFortune’sCEO Dailynewsletter. |
Pick These 7 Low Price-to-Sales Stocks for Optimum Returns
A stock’s price-to-sales ratio reflects how much investors are paying for each dollar of revenues generated by the company.If the price-to-sales ratio is 1, it means that investors are paying $1 for every $1 of revenues generated by the company. So, it goes without saying that a stock with a price-to-sales below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.When considering valuation metrics, price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy. However, price-to-sales has emerged as a convenient tool to determine the value of stocks that are incurring losses or are in an early cycle of development, generating meager or no profits.While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales could indicate the hidden strength of its business. This underrated ratio is also used to identify a recovery situation or ensure that a company's growth is not overvalued.Price-to-sales is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.However, one should keep in mind that a company with high debt and low price-to-sales is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, rise in market cap and ultimately a higher price-to-sales ratio.In any case, the price-to-sales ratio used in isolation cannot do the trick. One should also analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.Screening ParametersPrice to Sales less than Median Price to Sales for its Industry:The lower the price-to-sales ratio, the better.Price to Earnings using F(1) estimate less than Median Price to Earnings for its Industry:The lower, the better.Price to Book (common Equity) less than Median Price to Book for its Industry:This is another parameter to ensure the value feature of a stock.Debt to Equity (Most Recent) less than Median Debt to Equity for its Industry:A company with less debt should have a stable price-to-sales ratio.Current Price greater than or equal to $5:The stocks must all be trading at a minimum of $5 or higher.Zacks Rank less than or equal to #2:Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.Value Scoreless than or equal to B:Our research shows that stocks with a Value Score of A or B when combined with a Zacks Rank #1 or 2 offer the best opportunities in the value investing space.Here are seven of the 27 stocks that qualified the screening:Hibbett Sports Inc.HIBB is a major athletic-inspired retailer with presence in small and mid-sized markets across the country. The company operates predominantly in the South, Southwest, Mid-Atlantic and Midwest regions of the United States. It provides high-quality assortment, including footwear, apparel, accessories and athletic equipment at competitive prices in convenient locations. The stock currently has a Zacks Rank #1 and a Value Score of A. The 3-5 year EPS growth rate for the stock is estimated at 6.5%.Universal Forest Products Inc.UFPI engineers, manufactures, treats, distributes and installs lumber, composite wood, plastic and other building products. The stock currently has a Zacks Rank #2 and a Value Score of B. The 3-5 year EPS growth rate for the stock is estimated at 5%.Zions Bancorporation, National AssociationZION is a diversified financial service provider, operating a wide network of more than 450 banking offices. The company’s footprint spans 11 western and southwestern states, namely, Utah, Idaho, California, Nevada, Arizona, Colorado, Texas, New Mexico, Washington, Oregon and Wyoming. This Zacks Rank #2 company has a 3-5 year EPS growth rate of 8.9%. The stock has a Value Score of B.Israel Chemicals Ltd.ICL is a specialty minerals company with worldwide operations. The company's products include bromine specialty chemicals, potash, phosphate fertilizers, and specialty performance and industrial products. It markets its products primarily in Israel, Europe, and the Americas. The company has an estimated 3–5 year EPS growth rate of 9.5%. The stock currently has a Value Score of A and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.Citizens Financial Group Inc.CFG is a bank holding company for Citizens Bank, N.A. and Citizens Bank of Pennsylvania that provides retail and commercial banking products and services in the United States. This Zacks Rank #2 company’s 3–5 year EPS growth rate is 8%. The stock has a Value Score of A.Westlake Chemical Partners LPWLKP operates, acquires and develops ethylene production facilities and related assets in the United States. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or a contract basis. The stock currently has a Zacks Rank #1 and a Value Score of A. It has a 3–5 year EPS growth rate of 16%.Metlife Inc.MET is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. The stock currently has a Zacks Rank #2 and a Value Score of A. The 3-5 year EPS growth rate for the stock is estimated at 8.5%.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportZions Bancorporation (ZION) : Free Stock Analysis ReportUniversal Forest Products, Inc. (UFPI) : Free Stock Analysis ReportIsrael Chemicals Shs (ICL) : Free Stock Analysis ReportWestlake Chemical Partners LP (WLKP) : Free Stock Analysis ReportCitizens Financial Group, Inc. (CFG) : Free Stock Analysis ReportMetLife, Inc. (MET) : Free Stock Analysis ReportHibbett Sports, Inc. (HIBB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
The Lowe's Companies (NYSE:LOW) Share Price Is Up 115% And Shareholders Are Boasting About It
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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price ofLowe's Companies, Inc.(NYSE:LOW) stock is up an impressive 115% over the last five years. Then again, the 8.7% share price decline hasn't been so fun for shareholders. This could be related to the recent financial results, released recently - you can catch up on the most recent data by readingour company report.
See our latest analysis for Lowe's Companies
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Lowe's Companies managed to grow its earnings per share at 5.4% a year. This EPS growth is slower than the share price growth of 17% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Lowe's Companies's TSR for the last 5 years was 135%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
Lowe's Companies provided a TSR of 4.4% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, the longer term returns (running at about 19% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at.
Lowe's Companies is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Should You Invest in the Invesco Dynamic Biotechnology & Genome ETF (PBE)?
The Invesco Dynamic Biotechnology & Genome ETF (PBE) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Biotech segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Biotech is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $243.11 M, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Biotech segment of the equity market. PBE seeks to match the performance of the Dynamic Biotechnology & Genome Intellidex Index before fees and expenses.
This is comprised of stocks of 30 U.S. biotechnology and genome companies. These are companies that are principally engaged in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes and companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.59%, making it one of the more expensive products in the space.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Bio-Techne Corp (TECH) accounts for about 5.24% of total assets, followed by Amgen Inc (AMGN) and Celgene Corp (CELG).
The top 10 holdings account for about 45.71% of total assets under management.
Performance and Risk
The ETF has gained about 13.51% and is down about -4.84% so far this year and in the past one year (as of 06/21/2019), respectively. PBE has traded between $43.44 and $60.27 during this last 52-week period.
The ETF has a beta of 1.47 and standard deviation of 24.40% for the trailing three-year period, making it a high risk choice in the space. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Biotechnology & Genome ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PBE is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index and the iShares Nasdaq Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index. SPDR S&P Biotech ETF has $4.39 B in assets, iShares Nasdaq Biotechnology ETF has $7.59 B. XBI has an expense ratio of 0.35% and IBB charges 0.47%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 reportInvesco Dynamic Biotechnology & Genome ETF (PBE): ETF Research ReportsiShares Nasdaq Biotechnology ETF (IBB): ETF Research ReportsSPDR S&P Biotech ETF (XBI): ETF Research ReportsBio-Techne Corp (TECH) : Free Stock Analysis ReportCelgene Corporation (CELG) : Free Stock Analysis ReportAmgen Inc. (AMGN) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Alliance Data (ADS) Inks Deal to Offer Credit Card Services
Alliance Data Systems Corporation’s ADS card services business has inked a long-term deal with Interval International to provide credit card and loyalty marketing services to the latter. The agreement with Alliance Data will help Interval International to fuel sales and drive customer loyalty.Miami, FL-based Interval International is a well-known provider of vacation and membership services across the globe. Interval has a solid exchange network of quality resorts with more than 3,200 properties in more than 80 nations. Its membership programs provide comprehensive exchange services and other benefits.The agreement will enable Interval International to take advantage of Alliance Data's innovative suite of digital capabilities to cater to client preferences.Interval World Mastercard will help card members earn points for bookings through Alliance Data’s rewards program, driving customer loyalty as well as sales.Alliance Data’s Card Service segment contributes significantly to the company’s total revenues. Continuous agreements with new and existing clients boost the private label card portfolio. Recently, Alliance Data’s card services business inked a deal with the U.S. Retail segment of Carter's, Inc. CRI, North America's largest branded marketer of apparel exclusively for babies and young children to provide credit card services.Alliance Data continues to benefit from its organic growth strategies. The company should retain its revenue momentum in the coming quarters with ample opportunities from the current trends in consumer-based businesses. Alliance Data estimates 2019 revenues to grow 4% year over year to $5.8 billion.Shares of this Zacks Rank #3 (Hold) private label credit card processing firm have lost 7.9% year to date against the industry’s rally of 36.5%. Nonetheless, we expect higher revenues, solid card services performance, strategic initiatives as well as a robust capital position to aid the company’s turnaround in the near term.
Stocks to ConsiderSome better-ranked financial transaction service providers are Cardtronics plc CATM and FleetCor Technologies, Inc. FLTCardtronics provides automated consumer financial services through its network of automated teller machines and multi-function financial services kiosks. The company delivered positive surprise of 40.00% in the last reported quarter. The stock sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
FleetCor Technologies provides commercial payment solutions in North America, Latin America, Europe, and Australasia. The company delivered positive surprise of 1.91% in the last reported quarter. The stock carries a Zacks Rank #2 (Buy).Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportCardtronics PLC (CATM) : Free Stock Analysis ReportFleetCor Technologies, Inc. (FLT) : Free Stock Analysis ReportCarter's, Inc. (CRI) : Free Stock Analysis ReportAlliance Data Systems Corporation (ADS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Shareholders Are Thrilled That The Lowe's Companies (NYSE:LOW) Share Price Increased 115%
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you canmakemore than 100%. For example, theLowe's Companies, Inc.(NYSE:LOW) share price has soared 115% in the last half decade. Most would be very happy with that. On the other hand, we note it's down 8.7% in about a month. This could be related to the recent financial results, released recently - you can catch up on the most recent data by readingour company report.
View our latest analysis for Lowe's Companies
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During five years of share price growth, Lowe's Companies achieved compound earnings per share (EPS) growth of 5.4% per year. This EPS growth is lower than the 17% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Lowe's Companies the TSR over the last 5 years was 135%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
Lowe's Companies provided a TSR of 4.4% over the last twelve months. But that was short of the market average. On the bright side, the longer term returns (running at about 19% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
FactSet (FDS) to Report Q3 Earnings: Is a Beat in Store?
FactSet Research Systems Inc.FDS is scheduled to report third-quarter fiscal 2019 results on Jun 25, before the bell.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average positive earnings surprise of 1.9%.
The stock has gained 41.4% over the past year, outperforming the 12.3% rally of the industry it belongs to.
How Things Are Shaping Up?
The Zacks Consensus Estimate for revenues in the to-be-reported quarter stands at $359 million, indicating year-over-year growth of 5.6%. The expected increase is likely to be driven by higher sales of wealth management and content and technology solutions (CTS). In second-quarter fiscal 2019, revenues rose 5.9% year over year to $355 million.
FactSet Research Systems Inc. Revenue (TTM)
FactSet Research Systems Inc. revenue-ttm | FactSet Research Systems Inc. Quote
The consensus estimate for earnings is pegged at $2.37, indicating year-over-year growth of 8.7%. Higher revenues and operating efficiency are expected to benefit the bottom line. In the fiscal second quarter, adjusted earnings rose 14.2% from the year-ago quarter to $2.42 per share.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FactSet has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.
Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.
FLEETCOR Technologies FLT, with an Earnings ESP of +0.31% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Franklin Covey Co. FC, with an Earnings ESP of +8.16% and a Zacks Rank #3.
Booz Allen Hamilton BAH, with an Earnings ESP of +0.66% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportFactSet Research Systems Inc. (FDS) : Free Stock Analysis ReportFleetCor Technologies, Inc. (FLT) : Free Stock Analysis ReportFranklin Covey Company (FC) : Free Stock Analysis ReportBooz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Have Insiders Been Buying Lindab International AB (STO:LIAB) 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 before you buy or sellLindab International AB(STO:LIAB), you may well want to know whether insiders have been buying or selling.
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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 Lindab International
While no particular insider transaction stood out, we can still look at the overall trading.
Over the last year, we can see that insiders have bought 10439 shares worth kr964k. In the last twelve months Lindab International insiders were buying shares, but not selling. 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!
Lindab International is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Over the last quarter, Lindab International insiders have spent a meaningful amount on shares. Overall, seven insiders shelled out kr838k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
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. Our data suggests Lindab International insiders own 0.2% of the company, worth about kr18m. I generally like to see higher levels of ownership.
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Lindab International insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Lindab International.
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. |
Arbutus Gets Clearance to Initiate Hepatitis Study, Stock Up
Arbutus Biopharma CorporationABUS received regulatory clearance to initiate a phase Ia/Ib study to evaluate its hepatitis B virus (“HBV”) candidate, AB-729.
Shares of Arbutus surged 37.2% on Jun 20 following the announcement, presumably due to earlier-than-expected study initiation. However, the company’s shares have decreased 41% so far this year against the industry’s rise of 5.5%.
Please note that a regulatory authority had requested the company last month to complete three- and six-month toxicology studies on AB-729 before initiating the aforementioned study. This was likely to delay the initiation of the early-stage clinical study on the candidate. However, the company submitted a revised protocol for the study and received a go ahead from the authority. The company is planning to start the study soon.
The phase Ia/Ib study is a single and multiple dose clinical study, which will evaluate subcutaneous administration of AB-729 in healthy volunteers followed by patients with chronic hepatitis B infection. The candidate is an RNAi agent, which inhibits HBV replication and reduces HBsAg antigen production. Reduction in HBsAg antigen levels are believed to be a pre-requisite for activating the body’s immune system to respond to the virus.
The company has another early-stage HBV candidate, AB-506, an oral capsid inhibitor, in its pipeline. Top-line data from an interim analysis of the phase Ia/Ib study evaluating AB-506 is expected in July 2019. The company is also planning to initiate a dose finding phase IIa study on the candidate in the second half of this year. It is also planning to evaluate a combination AB-729 and AB-506 in clinical study in HBV patients. The company anticipates the combination therapy could result in profound inhibition of HBV replication and reduction in HBsAg antigen levels.
In the fourth quarter of 2018, the company discontinued development of another RNAi candidate, AB-1467, which was being evaluated in a mid-stage study in combination with Gilead’s GILD Viread (tenofovir) and PEG-IFN in HBV patients. The company discontinued the development of AB-1467 to focus on AB-729 as the latter has the potential to achieve more durable HBsAg reduction. The company also has several pre-clinical candidates targeting HBV in its portfolio. A clinical study on newly discovered oral RNA-destabilizer, AB-452, is expected in early 2020.
Arbutus is also focused on strengthening its senior management by appointing executives with experience at large pharma companies. Earlier this week, the company announced the appointment of William H. Collier as the president and chief executive officer. Collier has more than 30 years of experience in the pharmaceutical industry. Prior to joining Arbutus, he served as the president of ViiV Healthcare North America. ViiV Healthcare is a joint venture between Glaxo GSK and Pfizer PFE. Last year, the company had appointed Gaston Picchio as its chief development officer, who held several high level management positions at Janssen, a subsidiary of Johnson & Johnson.
The HBV segment is competitive with several large pharma companies showing interest in developing treatments. There are also multiple therapies approved for the disease. Rapid pipeline progress and management should help the company survive in a competitive environment.
Arbutus Biopharma Corporation Price
Arbutus Biopharma Corporation price | Arbutus Biopharma Corporation Quote
Zacks Rank
Arbutus currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportGlaxoSmithKline plc (GSK) : Free Stock Analysis ReportPfizer Inc. (PFE) : Free Stock Analysis ReportGilead Sciences, Inc. (GILD) : Free Stock Analysis ReportArbutus Biopharma Corporation (ABUS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Advanced Micro Devices a Buy?
Advanced Micro Devices(NASDAQ: AMD)has made tremendous gains under CEO Lisa Su. The stock is up 980% since she took over as CEO in October 2014. Last year AMD saw revenue climb by more than 20% for the second consecutive year, and this could be just the beginning of its run under Su's leadership.
What's most impressive about the company's comeback is thatIntel(NASDAQ: INTC)significantly outspends AMD on research and development every year, and yet AMD is beating the chip giant to market with a 7-nanometer server chip (Rome), which has Intel on its heels for the first time in more than a decade.
Here are three catalysts that should fuel AMD's top-line growth going forward and pave the way for further share price gains.
IMAGE SOURCE: GETTY IMAGES.
AMD is rolling out new 7-nanometer chips this year as a result of the company's effort to make big bets on products that can deliver the best technology to customers. The new 7-nanometer products, which range from server processors to graphics cards for PC gamers, feature smaller chips, are more power efficient, and promise to deliver faster processing speeds. That should position AMD to take market share from competitors this year.
Su expects AMD to win a double-digit share in the server market over the next four to six quarters, as Advanced Micro is starting to ship the Rome chip, which will begin to contribute to growth in the second half of 2019. If AMD reaches double-digit share in the server market (it's now at about 3.2%), it would mark anenormous gain over the company's 1% shareit had a few years ago.
But Su is much more ambitious. She toldBarron'slast fall that AMD's long-term goal was to exceed the 25% share of the server market AMD had in 2006. At this point, there's no reason to doubt AMD's ability to achieve this. The company's recent share gains have come on the back of its EPYC processors, and the new Rome chip promises to deliver two times the performance of EPYC, while Intel has experienced delays in launching its 10-nanometer processors.
Intel is not expected to ship its 10-nanometer chips for servers until early next year, providing AMD a great opportunity to fill the void for data center customers who might benefit from a second alternative to Intel's dominance.
NVIDIA(NASDAQ: NVDA)has controlled the lion's share of gamers' wallets since 2005, and with Team Green gaining industrywide acceptance of its new ray tracing graphics technology, it's unclear whether AMD can ever win the majority share in the add-in board market. But there is a catalyst in the short term for AMD to see its add-in board market share rise from its recent 22.7% in the first quarter.
AMD is poised to gain some share when it launches the new Navi graphics cards in the third quarter featuring the company's 7-nanometer chips. I don't expect AMD to beat NVIDIA's Turing cards, which are well solidified right nowat the high end of the market. But after AMD's market share dropped from 34% a year ago to 19% in Q4 2018, AMD has nowhere to go but up at this point, and Team Red's Vega gaming cards have had success against NVIDIA at the mid-tier of the market.
Looking beyond the short term, sales of gaming notebooks should drive AMD's gaming sales. Both NVIDIA and AMD have seenskyrocketing demand for gaming notebooksthat feature desktop-class processing power in a compact form factor. AMD is on pace to see more than a 50% increase in the number of notebook models shipped this year with the latest Ryzen processors. The strong demand shows the gaming notebook market heating up as the current console cycle is getting long in the tooth.
What's more, the next console generation is going to kick off in 2020, and AMD is looking golden, withbothSonyandMicrosoftannouncingthat their next-gen consoles will feature AMD processors.
Lastly, AMD has made substantial gains in the cloud market.Alphabetselected AMD to power the upcoming Google Stadia game streaming service. AMD is seeing growing interest in platforms designed for game streaming, machine learning, and high-performance computing (HPC) workloads.
AMD has also added dozens of new enterprise customers ranging across several industries -- including aerospace, healthcare, automotive, and telecommunications -- that are using the company's EPYC processors. AMD also continues to expand its relationship with the 500-pound gorilla in the cloud market,Amazon.com.
The secular shift to cloud computing, big data, and autonomous vehicles is benefiting all the top chip companies. Intel and NVIDIA will continue to score points in these markets, but AMD is proving it has the technology to grab some share of these markets, too.
The stock is up nearly 600% over the last five years, but analysts see AMD at the beginning of a multiyear growth streak in earnings per share, as sales shift to higher-margin products, such as server chips. Analysts expect AMD to grow earnings by 39% this year and by 35% annually over the next five years. At a price-to-earnings-growth (PEG) multiple of 1.31, AMD stock is not a bargain, but I believe the stock can still climb higher over the next five years.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.John Ballardowns shares of Amazon and NVIDIA. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Microsoft, and NVIDIA. The Motley Fool has adisclosure policy. |
Have Insiders Been Buying Lindab International AB (STO:LIAB) 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. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellLindab International AB(STO:LIAB), you may well want to know whether insiders have been buying or selling.
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Lindab International
While no particular insider transaction stood out, we can still look at the overall trading.
In the last twelve months insiders paid kr964k for 10439 shares purchased. While Lindab International insiders bought shares last year, they didn't sell. 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!
Lindab International is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Over the last three months, we've seen significant insider buying at Lindab International. Overall, seven insiders shelled out kr838k for shares in the company -- and none sold. This makes one think the business has some good points.
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. We usually like to see fairly high levels of insider ownership. Our data suggests Lindab International insiders own 0.2% of the company, worth about kr18m. I generally like to see higher levels of ownership.
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Lindab International shares, given these transactions (along with notable insider ownership of the company). 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.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Investors Who Bought Mandalay Resources (TSE:MND) Shares Three Years Ago Are Now Down 90%
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 big losses can really drag down an overall portfolio. So consider, for a moment, the misfortune ofMandalay Resources Corporation(TSE:MND) investors who have held the stock for three years as it declined a whopping 90%. That would certainly shake our confidence in the decision to own the stock. And more recent buyers are having a tough time too, with a drop of 40% in the last year. It's up 33% in the last seven days.
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 Mandalay Resources
Because Mandalay Resources is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years, Mandalay Resources's revenue dropped 19% per year. That means its revenue trend is very weak compared to other loss making companies. And as you might expect the share price has been weak too, dropping at a rate of 53% per year. Never forget that loss making companies with falling revenue can and do cause losses for everyday investors. There is a good reason that investors often describe buying a sharply falling stock price as 'trying to catch a falling knife'. Think about it.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
Investors in Mandalay Resources had a tough year, with a total loss of 40%, against a market gain of about 1.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 33% over the last half decade. 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.
But note:Mandalay Resources may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
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. |
Here's Why You Should Retain Diamondback (FANG) Stock Now
Diamondback Energy, Inc.FANG is well poised to grow on the back of strength in the Permian, a ‘super basin’. However, lack of takeaway capacity remains a concern for now.
The Midland, TX-based oil and gas exploration & production company — with a market cap of more than $17 billion — has an expected earnings growth rate of 20.6% for the next five years. For second-quarter 2019, its earnings per share projection has increased from $1.80 to $1.99 in the past 60 days, indicating a 25.2% rise from the year-ago reported figure of $1.59. The stock has witnessed positive estimate revisions from 13 firms in the said period.
Diamondback Energy, Inc. Price and EPS Surprise
Diamondback Energy, Inc. price-eps-surprise | Diamondback Energy, Inc. Quote
Let’s delve deeper to find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
A Look at the Positives
Diamondback is primarily focused on the Permian Basin, wherein it has around 394,000 net acres. Its activities are concentrated in Wolfcamp, Spraberry, Clearfork, Bone Spring and Cline formations. Experts say that it is cheaper to drill and complete oil wells in the Permian Basin than most other major fields. Moreover, there are certain parts of the shale play wherein well returns are the best in the United States.
The purchases of Energen and Ajax Resources have transformed Diamondback into one of the leading Permian Basin oil producers. The company now owns acreages in Delaware and Midland regions, having more than 7,000 drilling locations and the capacity to produce 215,000 barrels of oil equivalent per day. The combined entity is expected to generate synergies in the range of $2-$3 billion, primarily driven by lower drilling and completion costs.
A majority of Diamondback’s products have access to the lucrative Gulf Coast markets. The company has secured another 100,000 barrels per day of capacity each from the upcoming Gray Oak and EPIC pipelines, in order to expose more of its output to attractive international oil prices.
Bringing in more good news for investors, the energy explorer unveiled a new $2-billion share repurchase scheme through year-end 2020. Further, following up on its earlier announcement, the company raised the quarterly dividend by 50% to 18.75 cents (or 75 cents per share annualized).
Price Performance
Clearly, investors are noticing the company’s true potential. This is evident from Diamondback’s increase of 16.1% year to date compared with 0.6% collective gain of the industry it belongs to and 15.6% rise of the S&P 500 Index.
What’s Deterring the Stock?
There are a few factors that are holding back the stock from reaching its true potential.
Pipeline takeaway constraints in the Permian Basin might not allow Diamondback to fully benefit from higher oil prices for some of its production is exposed to softness in regional prices.
The spending spree and subsequent land grab in the unconventional Permian Basin signify that most of the region's attractive acreage has been acquired. This might have an impact on Diamondback’s continued reserve growth.
Apart from exploration and exploitation of top-tier properties, it has been focused on acquisitions to achieve growth. While any immediate acquisition plans appear unlikely, management may make a dilutive transaction or may not be able to optimally integrate the acquired assets of Energen and Ajax Resources.
To Sum Up
Despite riding on significant growth prospects, pipeline takeaway constraints and basin-specific competition in the Permian are concerns for the company. Nevertheless, we believe that systematic and strategic plan of action will drive its long-term growth.
Key Picks
Some better-ranked players in the energy space are Montage Resources Corporation MR, Approach Resources Inc. AREX and Earthstone Energy, Inc. ESTE. While Montage Resources sports a Zacks Rank #1 (Strong Buy), Approach Resources and Earthstone Energy hold a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Montage Resources’ sales growth is projected at 27.6% through 2019.
Approach Resources surpassed earnings estimates in three of the trailing four quarters, with the average positive surprise being 12.7%.
Earthstone Energy’ sales growth is projected at 15% through 2019.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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 reportEclipse Resources Corporation (MR) : Free Stock Analysis ReportEarthstone Energy, Inc. (ESTE) : Free Stock Analysis ReportDiamondback Energy, Inc. (FANG) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Those Who Purchased Mandalay Resources (TSE:MND) Shares Three Years Ago Have A 90% Loss To Show For It
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Every investor on earth makes bad calls sometimes. But really bad investments should be rare. So consider, for a moment, the misfortune ofMandalay Resources Corporation(TSE:MND) investors who have held the stock for three years as it declined a whopping 90%. That would be a disturbing experience. And over the last year the share price fell 40%, so we doubt many shareholders are delighted. It's up 33% in the last seven days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
See our latest analysis for Mandalay Resources
Because Mandalay Resources is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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 the last three years, Mandalay Resources's revenue dropped 19% per year. That's definitely a weaker result than most pre-profit companies report. The swift share price decline at an annual compound rate of 53%, reflects this weak fundamental performance. Never forget that loss making companies with falling revenue can and do cause losses for everyday investors. There is a good reason that investors often describe buying a sharply falling stock price as 'trying to catch a falling knife'. Think about it.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
Mandalay Resources shareholders are down 40% for the year, but the market itself is up 1.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 33% 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. Before spending more time on Mandalay Resourcesit might be wise to click here to see if insiders have been buying or selling shares.
Of courseMandalay Resources may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Google app adds a share button for search results
The answer to most questions is just a Google search away, but if you're answering a question someone else has asked, it's not easy to share the answer with them without copying a usually very long link. Google is attempting to fix that on mobile devices in the latest Googleappwith a share button.
As9To5Google reports, the latest Google app beta on Android has added a new share button which appears to the right of the voice search button in the top right corner of the screen. Performing a search and then tapping the share button will allow the search results page to be shared with others using a search.app.goo.gl link.Read more...
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Does Miller Industries, Inc. (NYSE:MLR) Have A Volatile Share Price?
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If you own shares in Miller Industries, Inc. (NYSE:MLR) 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 other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated 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. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for Miller Industries
With a beta of 0.93, (which is quite close to 1) the share price of Miller Industries has historically been about as voltile as the broader market. If the future looks like the past, we could therefore consider it likely that the stock price will experience share price volatility that is roughly similar to the overall market. 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 Miller Industries's revenue and earnings in the image below.
Miller Industries is a rather small company. It has a market capitalisation of US$338m, which means it is probably under the radar of most investors. It doesn't take much money to really move the share price of a company as small as this one. That makes it somewhat unusual that it has a beta value so close to the overall market.
It is probable that there is a link between the share price of Miller Industries and the broader market, since it has a beta value quite close to one. However, long term investors are generally well served by looking past market volatility and focussing on the underlying development of the business. If that's your game, metrics such as revenue, earnings and cash flow will be more useful. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Miller Industries’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 MLR’s future growth? Take a look at ourfree research report of analyst consensusfor MLR’s outlook.
2. Past Track Record: Has MLR 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 MLR's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how MLR 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. |
What Do Analysts Think About MarketAxess Holdings Inc.'s (NASDAQ:MKTX) Growth?
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Based on MarketAxess Holdings Inc.'s (NASDAQ:MKTX) earnings update in March 2019, analysts seem cautiously bearish, with profits predicted to rise by 14% next year against the higher past 5-year average growth rate of 20%. By 2020, we can expect MarketAxess Holdings’s bottom line to reach US$197m, a jump from the current trailing-twelve-month of US$173m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for MarketAxess Holdings in the longer term. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here.
View our latest analysis for MarketAxess Holdings
The longer term expectations from the 10 analysts of MKTX is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of MKTX's earnings growth over these next few years.
By 2022, MKTX's earnings should reach US$256m, from current levels of US$173m, resulting in an annual growth rate of 14%. EPS reaches $7.09 in the final year of forecast compared to the current $4.68 EPS today. With a current profit margin of 40%, this movement will result in a margin of 43% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For MarketAxess Holdings, I've put together three key factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is MarketAxess Holdings 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 MarketAxess Holdings is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MarketAxess Holdings? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Target (TGT) Up 8.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Target (TGT). Shares have added about 8.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Target 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.
Target Q1 Earnings & Sales Surpass EstimatesTarget Corporation reported impressive first-quarter fiscal 2019 performance and an upbeat view for the second quarter. Robust traffic, favorable store comps and a surge in comparable digital sales are clearly yielding results for the company. Both the top and bottom line not only beat the respective Zacks Consensus Estimate but also increased year over year.Let’s Delve DeeperThe company reported adjusted earnings of $1.53 per share that surpassed the Zacks Consensus Estimate of $1.43 and improved 15.9% from the prior-year period. This year-over-year growth can be attributable to higher sales and share repurchase activity.Target now projects second-quarter adjusted earnings between $1.52 and $1.72 per share, the mid-point of which $1.62 is higher than $1.47 reported in the year-ago period. For fiscal 2019, management continues to anticipate adjusted earnings in the band of $5.75-$6.05 per share, up from $5.39 reported in fiscal 2018.The company generated sales of $17,401 million, up 5.1% year over year, while other revenue inched up 0.5% to $226 million. The Zacks Consensus Estimate for the quarter is $17,540 million.Target is deploying resources to enhance omni-channel capacities, coming up with new brands, remodeling or refurbishing stores, and expanding same-day delivery options. Target has undertaken rationalization of supply chain with same-day delivery of in-store purchases along with technology and process improvements.Meanwhile, comparable sales for the quarter increased 4.8% compared with 3% growth witnessed in the year-ago period. This was the eighth successive quarter of comparable sales growth. The number of transactions rose 4.3%, while the average transaction amount improved 0.5%. Comparable digital channel sales surged 42% and added 2.1 percentage points to comparable sales. Management envisions both the second quarter and fiscal 2019 comparable sales to increase in low-to-mid-single digit range.Gross margin contracted 20 basis points to 29.6% due to increased digital fulfillment and supply chain costs, partly mitigated by the benefit of merchandising strategies. Operating margin expanded 20 basis points to 6.4%. The company envisions mid-single digit increase in operating income in fiscal 2019.Target’s debit card penetration shrunk 40 basis points to 13.1%, while credit card penetration fell 20 basis points to 10.4%. Total REDcard penetration declined to 23.5% from 24.1% in the year-ago quarter.Other Financial DetailsDuring the quarter, Target repurchased shares worth $277 million and paid dividends of $330 million. The company still had about $1 billion remaining under its $5 billion share buyback program. The company ended the quarter with cash and cash equivalents of $1,173 million, long-term debt and other borrowings of $11,357 million and shareholders’ investment of $11,117 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Target has a subpar Growth Score of D, however its Momentum Score is doing a lot 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 second 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 upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Target 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 reportTarget Corporation (TGT) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Why Is Synopsys (SNPS) Up 11.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Synopsys (SNPS). Shares have added about 11.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Synopsys 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 catalysts.
Synopsys Reports Solid Q2 Results
Synopsys delivered second-quarter fiscal 2019 non-GAAP earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.09. The bottom line was also higher than the year-ago quarter’s figure of $1.08.Revenues grew 7.6% year over year to $836.2 million and also surpassed the Zacks Consensus Estimate of $827 million.Growing demand for advanced technology, design, IP and security solutions is creating a solid market opportunity for Synopsys. Rising impact of AI, 5G, IoT and big data is boosting investments in new compute and machine-learning architectures, which is a tailwind. Further, with the growing need for enhanced security measures, demand for the company’s solutions is shooting up.However, geo-political challenges coupled with uncertainties hovering around government actions to restrict trade with Huawei are a concern. As a result of the trade ban, management mentioned that the company is unable to book new business and recognition of currently contracted revenues is on hold.Quarter in DetailTime-Based Products revenues (66.8% of the total generated) came in at $558.3 million. Upfront revenues (17.1%) were $143.4 million. Maintenance and service revenues (16.1%) were $134.5 million.Segment wise, Semiconductor & System Design revenues (90% of total) were $753 million, up 5% year over year on the back of strength across the board. Within the segment, EDA revenues were $492.7 million and the same from IP & Systems Integration was $259.2 million. A solid progress in fusion technology and platform roll-out is driving EDA revenues. Notably, Fusion Design Platform, launched last November, is witnessing high demand. This, in turn, helped it generate strong results in the quarter under review.The company’s Verification Continuum platform steadily witnesses excellent demand and competitive wins. Further, ZeBu Server 4 product is generating a broad-based adoption by customers’ designing storage, networking and AI chips.Software Integrity revenues grew 23% to 83 million, reaching approximately 10% of the total metric in the reported quarter.Geographically, Synopsys’ revenues in North America (52% of total) were $433.9 million while Revenues in Europe (10%) were $83.5 million.Asia Pacific revenues (29%) were $246.1 million whereas revenues in Japan (9%) were $72.7 million.Per ASC 606, non-GAAP operating margin was 25.1%. Semiconductor & System Design delivered an adjusted operating margin of 26.8% while that of Software Integrity came in at 10%.Balance Sheet & Cash FlowSynopsys exited the fiscal second quarter with cash and cash equivalents of $631.2 million compared with $592.3 million at the end of the previous quarter.During the quarter, the company generated $353 million of cash from operational activities.The company repurchased its stock worth $100 million, bringing the total so far this year to $129 million.GuidanceFor the fiscal third quarter, the company’s revenues are likely to be in the $810-$850 million band. While non-GAAP costs and expenses are anticipated within $620-$640 million. Management assumes non-GAAP earnings per share of $1.07-$1.12.The company raised its guidance for earnings and also the top-end of revenues for fiscal 2019. Revenues are now projected in the range of $3.29-$3.35 billion compared with $3.29-$3.34 predicted earlier.Non-GAAP earnings per share for fiscal 2019 are forecast between $4.24 and $4.40, up from $4.20-$4.27 envisioned earlier.Double-digit growth in non-GAAP earnings is expected to be driven by revenue growth in high-single-digits, reflecting mid-to-high single digits for EDA, low-double-digits for IP and Software Integrity growth in the 20% range.The company predicts operating margin to be 24.2% in fiscal 2019. Software Integrity business is assumed to be profitable for the year.The company estimates to boost its operating margin in the high-20s by 2021 and in the longer-term, within the 30% range.
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 -13.38% due to these changes.
VGM Scores
Currently, Synopsys 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 looks promising. Notably, Synopsys 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 reportSynopsys, Inc. (SNPS) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
CNBC’s Joe Kernen Wins Over Crypto Millennials by Bashing Facebook’s Libra
ByCCN Markets: Bitcoin’s resurrection this year is making believers of even the staunchest of anti-crypto personalities. Joe Kernen of CNBC, who has previously likened bitcoin to Tulip Mania, appears to have finally bought into theblockchain value argument. In a move that that has unanimously won over millennials Crypto Twitter, he also ripped Facebook’s fiat-based Libra as “making no sense.”
Facebook’s foray into crypto has given bitcoin some free publicity and held its strengths up to the light. What is even more obvious is that for the time being, Crypto Twitter has a new hero. Below is the key point that the CNBC host made when talking about Facebook’s Libra plans. In this sequence, Joe pointedly asks his guest,
“Cryptocurrencies get their value from the blockchain… Are they calling it a cryptocurrency? Well it’s not.”
Strong stuff and Twitter is eating it up.
Read the full story on CCN.com. |
IQE shares plunge as Huawei ban hammers tech suppliers
By Noor Zainab Hussain and Pushkala Aripaka
(Reuters) - Shares in Britain's IQE plunged as much as 40% on Friday after the tech supplier warned its 2019 revenue would miss forecasts, blaming a bigger than expected hit on the industry's supply chain from U.S. restrictions on China's Huawei.
The United States restricted Huawei Technologies from buying U.S. goods in May, saying the firm's equipment could be used by Beijing for spying. The move ratcheted up trade tensions between the world's two largest economies.
IQE, which makes semiconductor wafers for chips used in Apple Inc products among others, is also suffering from a global slowdown in demand.
It said it had recently received a reduction in forecasts from several chip customers in its wireless and photonics units, hitting anticipated revenues for those businesses.
Chief Executive Drew Nelson said IQE was operating in "unprecedented times" for the semiconductor industry.
The company now expects revenue of 140-160 million pounds ($178-$203 million) this year, compared with analysts' consensus estimate of 175 million pounds.
IQE said this reflected a larger impact than previously forecast for risks related specifically to Huawei.
"It is now clear that the impact of Huawei's addition to the U.S. Bureau of Industry and Security's Entity List is having far-reaching and long-lasting impacts on global supply chains," Nelson said.
U.S. chipmaker Broadcom Inc sent shockwaves through the chipmaking industry last week with its forecast that U.S.-China trade tensions and the ban on business with Huawei would knock $2 billion off the company's sales this year.
IQE rival Siltronic, a German maker of wafers used to make silicon chips, issued its second profit warning in two months on Tuesday, another victim of the U.S. crackdown on exports to China.
"After our Apple analyst's recent forecast cuts and recent commentary from Broadcom, it is also possible that IQE might be seeing a more muted iPhone supply chain ramp in 2H," Canaccord Genuity analysts said.
Huawei is preparing for a 40% to 60% decline in international smartphone shipments, Bloomberg reported on Sunday citing people familiar with the matter.
IQE had said in May that less than 5% of its 2019 revenue was exposed to Huawei risks. The company also said then that it supplies epitaxial wafers to multiple chip companies, some of which supply Huawei.
IQE's shares had already lost 14% since March, when it missed its own 2018 core earnings forecast, hurt by weak demand for smartphones that in turn dented orders for semiconductor components.
At 0720 GMT, IQE shares were down 34% at 47 pence, having earlier hit a 15-month low of 43.52 pence.
IQE's warning also hit stocks of European chipmakers including Siltronic, Infineon, AMS, Dialog, STMicro.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr and Mark Potter) |
7 Stocks Flashing Signs of Strong Insider Buying
When an insider of a company wants to purchase or sell shares of their companiy’s stock, by law they have to file their intentions with the SEC. This is to prevent any type of illegal activity, such as selling the stock just before an earnings report that the insider knows will be disappointing or buying it before a positive earnings surprise.
Fortunately for us, this can help us decide whether or not to invest in a particular company. I always check to see what the insiders are doing before I make an investment. I particularly like to see if they insiders are buying it after the price has fallen dramatically.
There are many reasons why an officer or a director of a company may decide to sell their stock. They could need to raise money for things such as tuitions, buying a home, or paying off their bookies.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
But an insider will only buy their company stock for one reason, and one reason alone. They believe it will go higher!
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These stocks came up on my radar screen as potential buys due to the significant insider buying that has recently occurred.
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Realogy Holdings Corp(NYSE:RLGY) provides real estate services. It owns brokerages, franchises, and title and settlement services. Some of the franchises are well-known, such asCentury 21andSotheby’s International Reality.
There is some important news in this sector and that could be why the stock price has fallen. A class action lawsuit filed by some powerful attorneys alleges that the National Association of Realtors and some large real estate brokerages make buyers pay inflated commissions.
The stock has fallen about 70% over the past year. Ryan Schneider is the President and CEO of Realogy. He must think the selloff is overdone because he just invested $1,000,000 of his own money in the stock.
Wall Street doesn’t like this company. Eight firms follow it and three have sell ratings on it while four others have it as a hold. There is one buy recommendation. My guess is that this is a firm that has RLGY as a client.
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Mueller Water Products, Inc.(NYSE:MWA) makes and sells products that are used in the transmission of water. They make things like pipes, valves and meters. It is a very old company with a lot of history. It was founded in 1857.
Water company stocks had a rough year in 2018 and MWA was no exception. It seemed to be turning around when it rallied over 20% from December through May. However, a weak earnings release caused the stock to fall dramatically last week.
Bernard Rethore is a director of the company. He must believe that the stock is a bargain at these prices because he just spent almost $100,000 when he purchased 10,000 shares at $9.91.
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Wall Street likes this stock. Out of the 13 firms that cover it, seven have buy recommendations on it and the average target price is $12.
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NCI Building Systems Inc.(NYSE:NCS) manufactures and markets metal products for the nonresidential construction industry. It also provides metal coil coating and other related services.
NCS has not had a good year. It has been downgraded by both UBS and D.A. Davidson. In addition, the most recent earnings report was a disappointment to investors. As a result of this the price of the stock has dropped from $22 to $6 since over the past year.
James Metcalf is the CEO and Chairman of the company. He apparently believes that the selloff is overdone because he just invested almost $600,000 of his own money. He paid $6.02 for 96,000 shares.
The Street is neutral on NCS. Six firms follow it and the average rating is a hold.
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Koppers Holdings Inc.(NYSE:KOP) is in the lumber business. It operates as a holding company and produces things such as treated wood products, wood treatment chemicals, and carbon compounds. Railroads and Utilities are some of the largest customers.
This company’s share price fell over 50% from last April due to concerns over earnings. Since then KOP has surprised shareholders by beating estimates. It is up 80% YTD! There has also been a few significant upgrades by the brokers that follow it.Michael Johnson is the Vice-President of Utility and Industrial Production.
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Mr. Johnson must believe that the share price will continue to appreciate. He recently bought 10,000 shares at $29.08. That is a $300,000 investment!
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AG Mortgage Investment Trust Inc.(NYSE:MITT) is a REIT. REIT is an acronym for Real Estate Investment Trust. The company focuses on investing, acquiring, and managing a portfolio of residential mortgages. In other words they buy and manage apartment buildings.
Like most REITs, MITT is very interest rate sensitive. Because of these dynamics the stock price has fallen by about 10% since April.
This could be why Mr. David Roberts, the CEO and President, decided to invest $825,000 when he just paid $16,53 for 50,000 shares.
The Street seems to be neutral on this one. Only two firms cover it and they each have hold ratings on it.
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Ferro Corp.(NYSE:FOE) is in the specialty materials manufacturing business. You may not recognize the name but you are probably familiar with its products. Ferro produces things like porcelain and glass enamels. It also makes ink, glazes and the color coating that goes on them.
Share holders have been disappointed but maybe now there is a reason to be optimistic.
Peter Thomas is the Chairman, CEO, and President of the company. He has watched the price of his company’s stock fall by about 30% since September. He must believe the stock is a good value at these prices. He just invested $270,000!
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Wall Street also likes this company. Eight brokers follow it and the average price target is around $20. That’s about 30% higher than where is its currently trading.
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Mosaic Co. (NYSE:MOS) is in the fertilizer business. They produce and sell things like concentrated phosphates and crop nutrients. They also make animal feed. It goes without saying that the biggest customers are farmers.
Mosaic’s stock recently fell because they announced that they would be cutting production of certain products. JP Morgan must believe the selloff is overdone. They just upgraded it to “overweight”.
Clint Freeland must also believe that the selloff is overdone. Mr. Freeland is the Chief Financial Officer and a Senior Vice-President of the company. He just invested $100,000 of his personal money when he bought 4,250 shares at a price of $23.60.
At the time of this writing, Mark Putrino did not hold any positions in any of the aforementioned securities.
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These ‘Incognito Doritos’ Bags Secretly Turn into Spider-Man Suits
For diehard Doritos fans , the best possible thing that can be inside a bag of Doritos is, of course, Doritos. But if you’re more into Spider-Man than snack chips, you’ll probably prefer this latest Doritos release. This week, the tortilla chip brand unveiled Incognito Doritos — which actually isn’t a Doritos flavor at all. Instead, these authentic-looking but actually “state-of-the-art” Doritos bags secretly transform into an official, full-size replica suit from Spider-Man: Far From Home , Peter Parker’s latest flick which hits theaters on July 2. A snack bag that turns into a superhero suit might sound cheesier than Doritos’ nacho flavoring , but as the brand stresses, this isn’t just any suit: “It is the official replica of the ‘Black & Red’ edition made by Spider-Man’s official suit maker Shafton Inc. that will make its debut in the upcoming film, marking the first time fans can get their hands on one,” Doritos writes in the announcement. Courtesy of Doritos Courtesy of Doritos “Teaming up with Spider-Man, we knew we had to deliver something epic and iconic to fans around the world,” Leslie Vesper, senior director of marketing for Frito-Lay North America, explained. “So we thought in a humorous way we could help Peter Parker keep his identity secret. We also know that there’s a strong overlap between our core Doritos consumers and Spider-Man fans, so we wanted to create something fun that truly brings both worlds together and for a good cause.” Speaking of “epic” suits that are “for a good cause,” Incognito Doritos aren't the kind of bag you can grab at Target for $3.99. The brand explains that, for now, there are only two ways to get one: First, from now until June 30, Spidey fans can attempt to win one by tweeting @Doritos “to tell us what super power Doritos gives them using #IncognitoDoritos and #entry.” Or second, if your net worth is more Tony Stark than Peter Parker, until June 27, you can also bid for limited edition bag #1 of 185 on eBay , with the entire winning bid going to the charity group Capes4Heroes “to make and personalize superhero capes for children battling a life threatening illness, disability or life struggle.” Sounds like an idea that’s even cooler than Cool Ranch. |
EU leaders push for eurozone budget funding solutions
BRUSSELS (AP) — European Union leaders on Friday urged the 19 countries that use the euro currency to quickly figure out how they would fund a joint budget that would seek to stabilize strengthen the single currency zone. The idea of a eurozone budget, which is being championed by French President Emmanuel Macron, was discussed last week by EU finance ministers, who agreed on the principles of a spending package for the 19-country eurozone. But they have yet to come up with a clear plan. While France would like it to be substantial, there's a group of eurozone countries that worry that an expanded eurozone budget will mean less money for other EU spending priorities, such as development programs or public services. "Last week's deal is going in the right direction but it's not enough," Macron said after a European Council meeting that was attended by European Central Bank President Mario Draghi. "We need to build a proper budget with a proper governance and sufficient funding." With the Netherlands at the forefront of concerns, differences remain on how the budget — which will be part of the overall EU budget — should be funded, whether through taxes or direct contributions from member states. Macron also wants it to be a tool allowing transfers of wealth if a financial crisis develops in the eurozone — as was the case during the crisis years in countries like Greece and Ireland during the first half of this decade. It's a politically charged topic as many countries don't want their money to be used to fix other nations' economic troubles. "Stabilization is essential," Macron said. "If we want the eurozone to really function, we need to have the necessary tools to answer asymmetric shocks." The European Council asked eurozone finance ministers "to report back swiftly on the appropriate solutions for financing." Jean-Claude Juncker, the president of the EU's executive branch, said Friday's decisions "deepened" the bloc's economic and monetary union, hailing its emergence from years of crisis to become "stronger than ever." Mario Centeno, who heads the eurogroup, a gathering of eurozone finance ministers, said devising a funding scheme will be a focus for the rest of the year. |
OSI (OSIS) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of OSI Systems (OSIS)? Shares have been on the move with the stock up 12.1% over the past month. The stock hit a new 52-week high of $114.42 in the previous session. OSI Systems has gained 55.3% since the start of the year compared to the 20.2% move for the Zacks Computer and Technology sector and the 27.7% return for the Zacks Electronics - Miscellaneous Components industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2019, OSI reported EPS of $1.17 versus consensus estimate of $0.94 while it beat the consensus revenue estimate by 4.88%.
For the current fiscal year, OSI is expected to post earnings of $4.22 per share on $1.18 billion in revenues. This represents a 16.9% change in EPS on an 8.09% change in revenues. For the next fiscal year, the company is expected to earn $4.6 per share on $1.24 billion in revenues. This represents a year-over-year change of 9% and 4.98%, respectively.
Valuation Metrics
OSI 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.
OSI has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 27X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.9X versus its peer group's average of 12.7X. Additionally, the stock has a PEG ratio of 2.16. 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, OSI currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if OSI fits the bill. Thus, it seems as though OSI shares could have a bit more room to run in the near term.
How Does OSI Stack Up to the Competition?
Shares of OSI have been soaring, 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 AAC Technologies Holdings (AACAY), TE Connectivity (TEL), and Keysight Technologies (KEYS), 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 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for OSI, 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 reportOSI Systems, Inc. (OSIS) : Free Stock Analysis ReportTE Connectivity Ltd. (TEL) : Free Stock Analysis ReportAAC Technologies Holdings Inc. (AACAY) : Free Stock Analysis ReportKeysight Technologies Inc. (KEYS) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Veracyte (VCYT) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Veracyte (VCYT)? Shares have been on the move with the stock up 15.6% over the past month. The stock hit a new 52-week high of $29.43 in the previous session. Veracyte has gained 125.8% since the start of the year compared to the 8.4% move for the Zacks Medical sector and the 17% return for the Zacks Medical - Instruments industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2019, Veracyte reported EPS of $-0.05 versus consensus estimate of $-0.07.
For the current fiscal year, Veracyte is expected to post earnings of $-0.28 per share on $120.17 million in revenues. This represents a 54.84% change in EPS on a 30.61% change in revenues. For the next fiscal year, the company is expected to earn $-0.16 per share on $133.82 million in revenues. This represents a year-over-year change of 41.67% and 11.35%, respectively.
Valuation Metrics
Veracyte may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Veracyte has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
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, Veracyte currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Veracyte fits the bill. Thus, it seems as though Veracyte shares could still be poised for more gains ahead.
How Does Veracyte Stack Up to the Competition?
Shares of Veracyte 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 impressive, including Hologic (HOLX), Integra LifeSciences Holdings (IART), and Tactile Systems Technology (TCMD), 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 Veracyte. Still, the fundamentals for Veracyte 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 reportVeracyte, Inc. (VCYT) : Free Stock Analysis ReportTactile Systems Technology, Inc. (TCMD) : Free Stock Analysis ReportHologic, Inc. (HOLX) : Free Stock Analysis ReportIntegra LifeSciences Holdings Corporation (IART) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Should Value Investors Pick Copa Holdings (CPA) 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 putCopa Holdings, S.A.CPA 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, Copa Holdings has a trailing twelve months PE ratio of 17.40, 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, Copa Holdings’ current PE level puts it above its midpoint over the past five years.
However, the stock’s PE compares unfavorably with the industry’s trailing twelve months PE ratio, which stands at 12.03. This indicates that the stock is relatively overvalued right now, compared to its peers.
Nevertheless, we should point out that Copa Holdings has a forward PE ratio (price relative to this year’s earnings) of just 14.07, so it is fair to say that a slightly more value-oriented path may be ahead for Copa Holdings stock 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, Copa Holdings has a P/S ratio of about 1.60. This is lower than the S&P 500 average, which comes in at 3.28 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, CPA is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.Broad Value OutlookIn aggregate, Copa Holdings currently has a Zacks Value Style Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Copa Holdings a solid choice for value investors.What About the Stock Overall?Though Copa Holdings 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 B. This gives CPA 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 mixed at best. The current quarter has seen two estimates go higher in the past sixty days compared to three lower, while the full year estimate has seen five upward and three downward revisions in the same time period.As a result, the current quarter consensus estimate has fallen by 4.7% in the past two months, while the full year estimate has increased 2.5%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Copa Holdings, S.A. Price and Consensus
Copa Holdings, S.A. price-consensus-chart | Copa Holdings, S.A. Quote
This somewhat mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.Bottom LineCopa Holdings 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 the bottom 43%) and a Zacks Rank #3, it is hard to get too excited about this company overall. 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 estimates, analyst sentiment and broader factors to turn around in this name first, but once that happens, this stock could be a compelling pick.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportCopa Holdings, S.A. (CPA) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Stock Market News For Jun 21, 2019
The S&P 500 hit a new record-high on Thursday as investors’ appetite for risky assets like equities were bolstered by the Fed’s indication that a rate cut was likely this year. Moreover, geopolitical conflict in Iran resulted in a rally in energy stocks. All three major stock indexes ended in the green.
The Dow Jones Industrial Average (DJI) surged 0.9% or 249.17 points to close at 26,753.17 The S&P 500 climbed 1% to close at 2,954.18. Meanwhile, the Nasdaq Composite Index closed at 8,051.34, soaring 0.8%. The fear-gauge CBOE Volatility Index (VIX) increased 2.9% to close at 14.75. A total of 7.5 billion shares were traded on Thursday, higher than the last 20-session average of 6.9 billion. Advancers outnumbered decliners on the NYSE by a 3.14-to-1 ratio. On Nasdaq, a 1.44-to-1 ratio favored advancing issues.
How Did The Benchmarks Perform?
The Dow closed in positive territory with 26 components of the 30-stock blue-chip index closing in the green while four finished in the red. The index is just 75 points away from the all-time high recorded on Oct 3. Meanwhile, tech-heavy Nasdaq Composite ended in the green due to strong performance by large-cap stocks. The tech-laden index crossed 8,000 marks for the first time since May 6.
The S&P 500 also closed in positive territory overtaking its previous all-time high recorded on Apr 23. The Energy Care Select Sector SPDR (XLE), Industrials Select Sector SPDR (XLI) and Technology Select Sector SPDR (XLK) gained 2.2%, 1.7% and 1.5%, respectively. Notably, all 11 sectors of the benchmark index closed in the green.
S&P 500 Soars on Fed’s Rate Cut Hints
On Jun 19, in his speech following the FOMC meeting, Fed Chair Jerome Powell said that the benchmark lending rate was kept intact at 2.25-2.5%. However, the central bank said that adoption of more accommodative policy is gaining ground as recent economic data has raised concerns about domestic and global growth. Out of 17 voting members of the Fed, a strong bunch of eight thinks a rate cut should take place this year.
Fed’s statement boosted investors’ confidence. Per CME FedWatch, traders are assigning 100% probability for a rate cut of at least 25 basis points in July. Consequently, on Jun 20, the S&P 500 Index closed at 2,954.18 after touching an intraday high of 2,958.06. The previous highest close of the broad-market index was 2,933.68 recorded on Apr 23. Year to date, the S&P 500 is up 17.8% after finishing in negative territory in 2018. In June so far, the index is up 7.6%, witnessing a complete turnaround after plunging 6.6% in May.
Geopolitical Conflict In Iran
On Jun 20, geopolitical conflict in the Middle East escalated after Iran shot down a U.S. military drone. The incident prompted President Donald Trump to threaten the oil-rich Islamic state with severe punitive measures. Notably, Iran is already facing U.S. sanctions regarding crude oil exports after Trump administration withdrew from Iran Nuclear Agreement of 2015.
Following the news U.S. benchmark West Texas Intermediate crude (WTI) soared $2.89 or 5.4% to close at $56.65 a barrel. Global benchmark Brent Crude was up $2.79 or 4.5% to close at $64.61 a barrel.
Consequently, shares of oil giants such as Exxon Mobil Corp. XOM, Chevron Corp. CVX and BP plc BP gained, 1.7%, 1.1% and 1.8%, respectively. Chevron carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that initial claims for state unemployment benefits decreased 6,000 to a seasonally adjusted 216,000 for the week ended June 15. The consensus estimate was 220,000 and previous week’s jobless claim was 222,000. The number of people receiving benefits after an initial week of aid – popularly known as continuing claims -- declined 37,000 to 1.66 million for the week ended Jun 8.
U.S. current account deficit for the first quarter of 2019 fell to $130.4 billion from $143.9 billion in the fourth quarter of 2019. However, the consensus estimate was for a deficit of $123.4 billion.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportBP p.l.c. (BP) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Fly Leasing (FLY) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Fly Leasing (FLY)? Shares have been on the move with the stock up 5.2% over the past month. The stock hit a new 52-week high of $17.25 in the previous session. Fly Leasing has gained 62.4% since the start of the year compared to the 14.4% move for the Zacks Transportation sector and the 19.5% return for the Zacks Transportation - Equipment and Leasing industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 9, 2019, Fly Leasing reported EPS of $1.44 versus consensus estimate of $1.18 while it missed the consensus revenue estimate by 0.41%.
For the current fiscal year, Fly Leasing is expected to post earnings of $3.92 per share on $486.52 million in revenues. This represents a 36.46% change in EPS on a 16.31% change in revenues. For the next fiscal year, the company is expected to earn $3.33 per share on $467.57 million in revenues. This represents a year-over-year change of -15.06% and -3.9%, respectively.
Valuation Metrics
Fly Leasing 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.
Fly Leasing has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 4.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 1.9X versus its peer group's average of 2.7X. 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, Fly Leasing currently has a Zacks Rank of #1 (Strong 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 Fly Leasing fits the bill. Thus, it seems as though Fly Leasing 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 reportFly Leasing Limited (FLY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Norway's $1T Money Manager to Ditch Oil Stocks: Here's Why
Following the go-ahead from the country’s parliament recently, the world’s biggest sovereign wealth fund, the Government Pension Fund Global (or GPFG) of Norway, is set to axe fossil fuel equities from its investment portfolio.
Earlier this month, the nation’s MPs voted a decision to drop around $13 billion in stocks associated with oil, gas, and coal controlled by GPFG. The fund has also been given a green light to set aside up to 2% of its corpus (amounting to $20 billion) for investments in renewable energy projects.
While the $1 trillion scheme’s move is seen by some as part of an ethical drive in shunning stocks that are deemed harmful to the environment, GPFG maintained that the decision was prompted by financial considerations. It must be noted that the Norwegian central bank, which runs the fund, advised the government to ditch energy holdings in November 2017 to avoid the finances from being affected by oil price fluctuations.
The World’s Biggest Wealth Fund
The sovereign wealth fund of Norway (officially known as the Government Pension Fund of Norway) is created on the back of the Scandinavian country's booming oil and gas industry. The fund controls around 1.4% of the world’s market capitalization and is intended to provide the country’s 5.3 million inhabitants with generous welfare state provisions.
Equity investments account for roughly 70% of the allocation of the massive fund, which has stakes in more than 9,000 companies worldwide, including the likes of Apple Inc. AAPL, Amazon AMZN, and Microsoft MSFT.
Financial Concerns (Not Climate Crisis) Behind the Strategy Shift
The reserve may be built by the states' revenues from oil and gas, but has decided to offload investments in firms that are engaged in finding black gold. The reorganization is said to impact a fifth of its oil and gas equity holdings of around $37 billion as of year-end 2018.
The Norwegian government said the motivation behind the move is to minimize the economy's exposure to the volatile commodity prices in general and reduce risks associated with a permanent oil price decline in particular.
The government insisted that climate concerns have nothing to do with this decision and that oil would be an “important and major industry in Norway for many years to come”.
Moreover, the move is solely aimed toward companies engaged in exploring and producing oil and gas and not for the diversified energy companies that have operations in various spectrums of the business. As such, the fund will continue to hold stakes in integrated oil giants that do everything from searching for fossil fuels to selling them to consumers to investing billions of dollars in renewable energy.
Which Companies Will be Stubbed Out?
Norway will gradually drop 134 upstream energy companies, including top U.S. explorers like Apache Corporation APA, EOG Resources, Inc. EOG and Marathon Oil from its wealth fund. The list also includes several Canadian biggies, such as Canadian Natural Resources Ltd. and Encana Corp. It will also step back from investments worth $6 billion in eight coal companies. However, the fund will hold on to the integrated oil majors like BP plc BP and Royal Dutch Shell plc RDS.A. Both BP and Shell currently retain a Zacks Rank #3 (Hold).
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Environmentalists Claim Victory
The climate change activists welcomed the fund’s partial oil and gas divestment as a clear recognition of the efforts to move away from fossil fuels to cleaner energy. The ultimate aim, they say, is a quick transition toward renewable energy and other low-carbon solutions.
Conclusion
Considering that the pension fund managers make investment decisions after carefully studying the market and the portfolio companies, should you follow on their footsteps? In the case of GPFG, we believe that mirroring the investment giant’s move might not be a great idea just yet.
Agreed, some people are not comfortable with greenhouse gas-emitting fossil fuels and there are others who just want to shut down the industry completely. However, most would agree that the world will run on fossil fuels for decades to come.
The institutional investor’s plan is a reflection that energy holdings are incredibly wide affairs and have turned into speculative plays as opposed to their earlier status of mainstream, blue-chip investments.
It’s true that natural gas is currently going through a very difficult phase and coal continues to lose its popularity as an energy source. However, we believe that crude prices in the next few months are likely to exhibit a sideways-to-bullish trend and consequently, the returns on some of these stocks are still not under pressure. Therefore, the ‘financial’ argument put forward by the fund in supporting its decision is debatable.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportBP p.l.c. (BP) : Free Stock Analysis ReportRoyal Dutch Shell PLC (RDS.A) : Free Stock Analysis ReportApache Corporation (APA) : Free Stock Analysis ReportEOG Resources, Inc. (EOG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why Blockchain 'Hype' Needs to Stop
Hype—tons if it—has long infiltrated the blockchain and cryptocurrency space, and IBM blockchain general manager Marie Wieck, for one, would like it to end. “Stop the hype” with blockchain, she said at Fortune ‘s Brainstorm Finance conference in Montauk, N.Y. on Thursday. Instead, she said, focus on the value proposition it brings to the table. “The most important point is what value will every participant get out of permissioned blockchains, and candidly, I will love the day when nobody talks about blockchain and they just talk about the value creation,” Wieck said. All the applications Blockchain, a linked, decentralized network, or leger of information, has nearly endless capabilities. As manager of IBM’s blockchain projects, Wieck sees many applications for the network, and believes blockchain is a “fundamental way to build trust and transparency in all types of industries.” So far, IBM is working in a variety of industries to reduce friction and increase privacy and efficiency—including business to business or B2B, teaming up with the likes Visa to improve direct exchange between companies. And with the creation of World Wire , a financial rail, IBM is connecting 50 different currencies around the world, including stable coins, for consumers. J.P. Morgan , meanwhile, has similar initiatives underway. Christine Moy, the executive director and blockchain program lead at J.P. Morgan Chase, says the financial institution is already working to partner with commercial and central banks alike to focus on the “tokenization of central-bank risk-level money,” she said at Brainstorm Finance on Thursday. J.P. Morgan’s work in Singapore to create what Moy says is “cross-blockchain, cross-border, cross-currency exchange asset transfer” speaks to the network’s global reach. No one winner While J.P. Morgan uses Quorum, an enterprise version of Ethereum, and IBM uses Hyperledger Fabric, both leaders agree that no single network will come out on top. Story continues “One network will not rule them all,” Wieck said. She believes networks will need to be “fit-for-purpose,” but being open and data-controlled are keys to accelerating the exchange of value. J.P. Morgan ‘s Moy agrees, noting that the future will be a “multiple-blockchain protocol world.” This “mesh network” is akin to different brands of the same product, she said. “The way that I think about it is, in today’s world, you have Apple computers and you have PCs, but the main point is that you can still send an email from someone who has a PC to someone who has an Apple—and that’s what’s useful,” she said. More must-read stories from Fortune Brainstorm Finance: — Brainstorm Finance 2019: Watch the livestream of the inaugural conference —Andreessen Horowitz: How Facebook’s Libra cryptocurrency will be governed —Welcome to the next generation of corporate phishing scams — Western Union and Zelle dish on the competition and talk mobile payments —Millennials are not basement-dwelling potheads , says Wealthfront CEO Sign up for The Ledger , a weekly newsletter on the intersection of technology and finance. |
Near-Term Outlook for Medical Instruments Industry Bleak
The Zacks Medical - Instruments industry is highly fragmented, with participants engaged in research and development of new devices for specific therapeutic areas. This FDA-regulated industry comprises an endless number of products, starting from transcatheter heart valves to ortho and trauma products to imaging equipment.
The past few months have been remarkable for the Medical Instruments space in terms of research and development (R&D). Riding on path-breaking inventions like wireless brain sensors, Bluetooth-enabled smart inhalers, artificial pancreas, human-brain pacemaker, electronic skin that displays vital signs of the body, needle-free injections, precision medicine and many more, the medical instruments space has gone from strength to strength.
However, complex regulatory hurdles come in the way of any infrastructural or technology growth within this space. According to a Cyber MDX article by Jon Rabinowitz, hospitals face significant bureaucracy burden and a general fear of change restricts progress. According to Rabinowitz, these facts lead to a situation in which healthcare organizations are deemed to be downright laggards when it comes to modern business practices and supporting technologies. No wonder, these act as impediments in the path of the industry’s progress.
Though the FDA has come up with a pre-certification program in order to speed up the entire R&D procedure and regulatory approval process, the chances of any progress in the near term are low.
Here are the three major industry themes:
• M&A Trend Continues: The medical instruments space has been benefiting from the ongoing merger and acquisition (M&A) trend. In fact, various reports suggest that M&A has been the key catalyst in the U.S. MedTech space of late. It is a known fact that smaller and mid-sized industry players attempt to compete with the bigshots through consolidation. The big players attempt to enter new markets through a niche product. According to a recent report by MedTech Dive, smaller tuck-in acquisitions dominated the M&A space in 2019 with Varian (VAR), Boston Scientific (BSX), Medtronic (MDT) and Smith & Nephew being the prime line acquirers. Boston Scientific's $4.2 billion acquisition of BTG Plc was last year’s largest deal.
• Focus on Emerging Markets: Growing medical awareness and economic prosperity have been increasing the uptake of medical instruments in emerging economies. An aging population, increasing wealth, government focus on healthcare infrastructure and expansion of medical insurance coverage make these markets a happy hunting ground for global medical instruments players. A Mercer Capital report from 2018 states that although Americas is still the largest medical device market in the world, Asia/Pacific and Western Europe are expected to expand at a quicker pace over the next several years. The MedTech market in China, in spite of the tariff battle with the United States, is projected to grow significantly through 2022. India’s MedTech market is currently growing at a rate of 15% annually (per Business Standard). If this continues, India may give tough competition to Japan and Germany by 2022.
• Digital Revolution: With an increase in the adoption of digital platforms within the medical device space, robotic surgeries, big-data analytics, bio printing, 3D printing, electronic health records (EHR), predictive analytics, real-time alerting and revenue cycle management services are gaining prominence in the United States. A June 2019 Healthcare News report suggests that this market, valued at $123 billion in 2018, is witnessing CAGR of 25%. Various other reports suggest that companies that adopted AI (Artificial Intelligence) technologies witnessed a 50% reduction in treatment costs and also experienced more than 50% improvement in patient outcome. This, along with a rise in minimally-invasive surgeries, higher demand for liquid biopsy tests, use of IT for quick and improved patient care, and the shift of the payment system to a value-based model has been driving profits at medical device companies of late.
Zacks Industry Rank Indicates Insipid Prospects
The Zacks Medical Instruments industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #147, which places it in the bottom 43% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
We will present a few stocks that have the potential to outperform the market based on a strong earnings outlook. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry’s Stock Market Performance
The industry has underperformed the Zacks S&P 500 composite but managed to outperform its own sector in the past year.
The industry has gained 1.8% over this period compared with the S&P 500’s 5% increase. The broader sector has declined 1.7% in a year’s time.
One Year Price Performance
Industry’s Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 33.59X compared with the broader industry’s 20.50X and the S&P 500’s 16.92X.
Over the past five years, the industry has traded as high as 33.59X, as low as 21.80X and at the median of 27.05X, as the charts show below.
Price-to-Earnings Forward Twelve Months (F12M)
Price-to-Earnings Forward Twelve Months (F12M)
Bottom Line
Apart from the trends discussed above, the bipartisan two-year suspension of a 2.3% excise tax on medical instruments and medical device manufacturers at the beginning of 2018 encouraged massive investments in the sector. The market is currently looking forward to the reintroduction of the controversial 2.3% medical device tax repeal bill by the Senate. The repeal of the tax is expected to boost hiring and investment among the 9,000 America-based medical device manufacturers, instilling investor’s optimism.
Here, we present three stocks that have a Zacks Rank #2 (Buy). These stocks are well positioned to grow in the near term. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX Laboratories, Inc.(IDXX)
In recent times, this animal-health product maker has witnessed strong gains in CAG Diagnostics recurring revenues and global premium instrument installed base. The company’s innovation-based, multi-modality global strategy is driven by enhanced commercial capability and accelerated recurring CAG Diagnostics revenue growth. Companion animal market fundamentals remain solid with tremendous global runway for growth.
Price and Consensus: IDXX
The Zacks Consensus Estimate for 2019 EPS has moved up 2.8% in the past two months. The same for full-year sales is pegged at $2.41 billion, indicating an 8.9% rise from the year-ago period. IDEXX has returned 22.3% over the past year.
Masimo Corporation(MASI)
In order to streamline its operations and reduce cost of revenues, Hologic has adopted some significant strategies over the past few years. The company’s broad product spectrum, positive tidings on the regulatory front and considerable focus on innovation provide cushion to the company's stock.
Price and Consensus: MASI
The Zacks Consensus Estimate for the company’s fiscal 2019 sales is pegged at $919.4 billion, indicating 7.1% rise from the year-ago period. The same for adjusted earnings per share stands at $3.12, a 2.3% rise over the last couple of months. The company has returned 47% in a year’s time.
Penumbra, Inc.(PEN)
This global healthcare company is focused on innovative therapies. Penumbra has a broad portfolio of products that addresses challenging medical conditions and significant clinical needs across two major markets, neuro and vascular.
Price and Consensus: PEN
The Zacks Consensus Estimate for the company’s fiscal 2019 sales is pegged at $536.6 million, indicating 20.6% rise year over year. The same for adjusted earnings per share is pegged at 87 cents, indicating an increase of 70.6% from the year-ago period. The company has returned 9.6% in a year’s time.
Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportVarian Medical Systems, Inc. (VAR) : Free Stock Analysis ReportPenumbra, Inc. (PEN) : Free Stock Analysis ReportMedtronic PLC (MDT) : Free Stock Analysis ReportMasimo Corporation (MASI) : Free Stock Analysis ReportIDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis ReportBoston Scientific Corporation (BSX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Alexandria Prices Upsized Public Offering of 3,850,000 Shares
Alexandria Real Estate Equities, Inc.ARE recently priced an upsized public offering of 3,850,000 common shares at a price of $145.00 per share. The underwriters have been granted a 30-day option to purchase up to an additional 577,500 common shares.
The offering, subject to fulfillment of customary closing conditions, is expected to close on Jun 25, 2019.
This offering is in connection to forward sale agreements, per which the forward purchasers are likely to borrow and sell 3,850,000 shares to the underwriters. Subject to Alexandria’s right to elect cash or net share settlement, the company projects to deliver the shares no later than Jun 26, 2020, in exchange for cash proceeds amounting to the applicable forward sale price. However, the company will not receive any proceeds through forward sales in the initial phase.
The common stock offering will boost the company's financial flexibility and help meet its financial obligations efficiently. Moreover, it provides ample scope for deploying capital for long-term growth opportunities and rewarding higher returns to stockholders, at the same time.
Furthermore, a forward sale arrangement will enable the company to lock in the price of such shares at the time of offering pricing, while at the same time delaying share issuance and the receipt of net proceeds until a funding requirement has occurred.
Net proceeds from the offering will be used to fund pending acquisition, while the remaining proceeds will be used for general working capital needs and other corporate purposes. This may include reducing any outstanding balance on the company's unsecured senior line of credit.
Over the past six months, shares of this Zacks Rank #2 (Buy) company have rallied 36%, outperforming the industry’s growth of 29.5%.
Other Key Picks
Investors can also consider some better-ranked stocks from the same space like Host Hotels & Resorts, Inc. HST, Lamar Advertising Company LAMR and PS Business Parks, Inc. PSB, carrying a Zacks Rank of 2, currently. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Host Hotels & Resorts’ funds from operations (FFO) per share estimates for 2019 moved marginally north to $1.82 over the past month.
Lamar Advertising’s FFO per share estimates for the ongoing year have been revised slightly upward to $5.83 in 30 days’ time.
PS Business Parks’ current-year FFO per share estimate moved up marginally to $6.71 in the past week.
Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportLamar Advertising Company (LAMR) : Free Stock Analysis ReportAlexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis ReportPS Business Parks, Inc. (PSB) : Free Stock Analysis ReportHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Matas A/S (CPH:MATAS): Earnings Expected To Remain Subdued
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! The most recent earnings announcement Matas A/S's ( CPH:MATAS ) released in May 2019 revealed that the company experienced a slight headwind with earnings declining from ø280m to ø263m, a change of -6.1%. Below is a brief commentary on my key takeaways on how market analysts predict Matas's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Matas Analysts' expectations for the coming year seems pessimistic, with earnings falling by -5.7%. Over the medium term, earnings should continue to be below today's level, with a decrease of -9.3% in 2021, eventually reaching ø239m in 2022. CPSE:MATAS Past and Future Earnings, June 21st 2019 While it’s helpful to be aware of the growth rate each year relative to today’s value, it may be more insightful determining the rate at which the company is growing every year, on average. The pro of this approach is that we can get a better picture of the direction of Matas's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -2.5%. This means, we can anticipate Matas will chip away at a rate of -2.5% every year for the next few years. Next Steps: For Matas, I've compiled three essential aspects you should further research: Financial Health : Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Valuation : What is MATAS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MATAS is currently mispriced by the market. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MATAS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Investors Should Avoid Intel Stock … For Now
Conditions in the market have quickly gone from utter fear to unadulterated cheers. Yet, when it comes toIntel(NASDAQ:INTC), I’d caution bullish investors what’s gone up on the Intel stock chart, is also likely to come back down. Let me explain.
Source: Shutterstock
From May’s pervasive and hard-hitting market correction and its attached-at-the-hip trade war concerns, Wall Street has gotten a case of the proverbial giggles in June. The upbeat shift has theS&P 500hitting new all-time-highs Thursday. But when it comes to Intel stock and its chances for similar celebrations, investors shouldn’t hold their breath just yet.
Buoyed by strong earnings and fresh highs from tech giantOracle(NYSE:ORCL), broker-driven technical leadership fromMicrosoft(NASDAQ:MSFT), a bid in oil and FOMC follow-through, the broader market has its share of reasons for setting new records. The same, however, can’t be rightfully said about Intel stock.
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Shares of INTC have rallied this month alongside the market’s own bid. In fact, Intel stock is up about 8% compared to the S&P 500’s own gain of just over 7%. But I’m afraid that’s as good as it gets for the chip giant right now.
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I’d caution competitive threats fromAdvanced Micro Devices(NASDAQ:AMD) andNvidia(NASDAQ:NVDA) reinforced during Intel’s analyst day last month and April’s bearish outlook point to a challenging company-specific business environment that shouldn’t be dismissed so quickly. And even if you are a contrarian and see the upside in Intel stock’s current situation, a quieted but still lurking trade war threat could become an even larger enemy of the state for INTC.
Click to Enlarge
Don’t get me wrong, I’m not warning of Intel stock’s demise and I’m certainly not bearish on its price chart. The provided well-detailed weekly view of Intel stock shows an abundance of Fibonacci and trend-lines spanning decades that continue to back the uptrend in shares. And INTC shares have moved favorably over the past month in appreciation of those technical supports.
At the May bottom, Intel stock formed a bullish higher double-doji-pivot low backed by a flatter trendline developed over the past 18 months. The reversal also successfully tested the uppermost layers of a massive Fibonacci price band. And with stochastics sporting a supportive-looking oversold crossover, there’s a lot to like on the INTC price chart going forward.
But that doesn’t mean buying Intel stock today is a good investment, even if you are a bullish contrarian.
The current rally coupled with Intel stock’s overall weakness of the past few months has shares testing resistance from prior trendline support dating back to 2017, as well as the 200-day simple moving average. It’s enough of a technical barrier, that in conjunction with Intel’s business risks, my recommendation is investors take a wait and see approach for the time being.
If shares pull back in the coming couple of weeks and confirm the May low, buying Intel stock as a contrarian position prior to late July’s earnings makes sense. I would, however, advise exiting before or after the report, if May’s bottoming pattern is broken by more than 1%. If that possibility becomes a reality, it’s my view the risks increase exponentially that an out-of-favor INTC could be facing even bigger challenges off and on the price chart in the months ahead.
Disclosure: Investment accounts under Christopher Tyler’s management currently own positions in Advanced Micro Devices (AMD) and its derivatives but no other securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual.. For additional market insights and related musings, follow Chris on Twitter@Options_CATandStockTwits.
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What You Should Know About Lotus Bakeries NV's (EBR:LOTB) Financial Strength
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Lotus Bakeries NV (EBR:LOTB) is a small-cap stock with a market capitalization of €2.0b. 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 essential, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, this is not a comprehensive overview, so I suggest youdig deeper yourself into LOTB here.
Over the past year, LOTB has ramped up its debt from €121m to €155m – this includes long-term debt. With this increase in debt, LOTB's cash and short-term investments stands at €46m , ready to be used for running the business. Additionally, LOTB has generated €67m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 43%, meaning that LOTB’s current level of operating cash is high enough to cover debt.
With current liabilities at €167m, it appears that the company may not be able to easily meet these obligations given the level of current assets of €166m, with a current ratio of 1x. The current ratio is calculated by dividing current assets by current liabilities.
With debt reaching 45% of equity, LOTB 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 LOTB's case, the ratio of 39.02x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving LOTB ample headroom to grow its debt facilities.
Although LOTB’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. Though its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. I admit this is a fairly basic analysis for LOTB's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Lotus Bakeries to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LOTB’s future growth? Take a look at ourfree research report of analyst consensusfor LOTB’s outlook.
2. Valuation: What is LOTB 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 LOTB 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. |
Should Value Investors Pick Delta Air Lines (DAL) Stock?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s putDelta Air Lines, Inc. DAL 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, Delta Air Lines has a trailing twelve months PE ratio of 9.6, as you can see in the chart below:
This level actually compares favorably with the market at large, as the PE for the S&P 500 stands at about 18.31. If we focus on the long- term PE trend, Delta Air Lines’ current PE level puts it below its midpoint of 10.62 over the past five years, with the number having risen rapidly over the past few months. However, the current level stands below the highs for the stock, suggesting that it can be a solid entry point.
However, the stock’s PE also compares favorably with the Zacks Transportation Market sector’s trailing twelve months PE ratio, which stands at 15.83. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Delta Air Lines has a forward PE ratio (price relative to this year’s earnings) of 8.35, so it is fair to say that a slightly more value-oriented path may be ahead for Delta Air Lines’ 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, Delta Air Lines has a P/S ratio of about 0.83. This is much lower than the S&P 500 average, which comes in at 3.31 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.
Broad Value OutlookIn aggregate, Delta Air Lines currently has a Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Delta Air Lines a solid choice for value investors.What About the Stock Overall?Though Delta Air Lines 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 Momentum Score of B. This gives DAL 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 the best. The current year has seen two upward revisions compared to one downward revision in the past sixty days, whereas the next year estimate has seen one upward revision compared to two downward revisions in the same time period.As a result, the current year consensus estimate increased 0.15% in the past two months, whereas the next year estimate declined 0.28%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Delta Air Lines, Inc. Price and Consensus
Delta Air Lines, Inc. price-consensus-chart | Delta Air Lines, Inc. Quote
Owing to such mixed estimate trends, the stock has a Zacks Rank #3 (Hold), which is why we are looking for in-line performance from the company in the near term.Bottom LineDelta Air Lines is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. However, the company carries an unfavorable industry rank (bottom 41% out of more than 250 Zacks industries), which makes us cautious about the broader factors.Moreover, over the past two years, the broader industry has clearly underperformed the market at large, 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.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportDelta Air Lines, Inc. (DAL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Dow 30 Stock Roundup: Boeing's $6.5B Air Force Contract, Pfizer to Buy Array BioPharma
The index enjoyed another week of strong gains after the Federal Reserve indicated that a rate cut would likely occur next month. Hopes of a reduction in U.S.-China trade tensions also boosted stocks during the week. Oil stocks increased as chances of a U.S-Iran conflict increased. However, this factor also served to somewhat curb gains for market participants. Last Week’s Performance The index lost 0.1% last Friday following the weak performance of tech stocks on trade concerns. Moreover, China reported weak economic data for May, disappointing investors. China’s value-added industrial output rose 5.0% in May compared with 5.4% in April. This was the lowest growth rate in 17 years. The index has gained 0.4% over last week. The market remained volatile as some economic data were tepid while some were rosy. Moreover, trade conflict with China continued with no signs of improvement. However, investors are expecting a rate cut or at least an indication that a rate cut will take place next month from the Fed. The Dow This Week The index gained 0.1% on Monday buoyed by the strong performance of technology stocks. However, trading volumes remained low as investors waited for the outcome of the crucial 2-day meeting of the Fed. The National Association of Home Builders’ index for the month of June declined 2 points to 64 from the previous month. The index soared 1.4% on Tuesday after President Trump’s said he will meet his Chinese counterpart during the G-20 summit, which boosted investors’ confidence. Moreover, market participants were also expecting the Fed to indicate that a rate cut would take place next month. The index increased 0.2% on Wednesday after the Fed kept the federal fund target rate unchanged while clearly indicating that the central bank might cut rates at least once in this year. The European Central Bank (ECB) strongly indicated that a near-term rate cut was likely a day earlier. Signs that two major central banks would pursue accommodative policies boosted investors’ confidence in equities. The index gained 0.9% on Thursday as investors continued to be enthused by the prospect of a Fed rate cut next month. Shares of Exxon Mobil XOM and Chevron Corporation CVX gained 1.7% and 1.1%, respectively, after oil prices spiked on prospects of conflict between the United States and Iran. Components Moving the Index The Boeing Company ’s BA Defense Space and Security segment recently won a modification contract for providing Joint Direct Attack Munition (JDAM) tail kits, spares, repairs and technical services. The deal has been awarded by the Air Force Life Cycle Management Center, Hill Air Force Base, UT. Boeing has a Zacks Rank #3 (Hold). Story continues The latest modification will extend the original contract for an additional five years. It also increased the contract ceiling by $6.5 billion to $10 billion. The deal also involves foreign military sales. Work related to the deal will be performed in St. Louis, MO, and is scheduled to be completed by Feb 28, 2025. (Read: Boeing Wins $6.5B Air Force Contract for JDAM Tail Kits) Further, per Boeing’s latest Commercial Market Outlook (CMO), the world will need 44,040 new planes, worth $6.8 trillion, between 2019 and 2038. This estimate came 3.1% above previous year's projected demand of 42,730 jets, valued at $6.35 trillion, for the 2018-2037 period. Of the total units, 44% of the demand will be for the replacement of old aircraft, while the rest will support future growth. (Read: Boeing Hikes 20-Year Jetliner Demand Forecast by 6.7% to $16T) Pfizer, Inc. PFE announced a definitive agreement to buy small cancer drugmaker, Array BioPharma Inc. ARRY for $48 per share in cash for a total enterprise value of approximately $11.4 billion. Rank #3 Pfizer is paying a premium of 62% over Array BioPharma’s closing price of $29.59 on Friday. The deal, if successful, will strengthen Pfizer’s cancer portfolio as Array BioPharma makes targeted small molecule drugs for treating cancer and other high-burden diseases. Array BioPharma’s first commercial therapy, Braftovi plus Mektovi, approved as a treatment for BRAF-mutant melanoma, the deadliest form of skin cancer, was launched in July last year. The therapy has shown strong uptake since its launch. It generated almost $72 million in its first three commercial quarters and registered sequential growth of more than 50% in the quarter ending March 2019. (Read: Pfizer to Buy Array BioPharma, Broaden Cancer Portfolio) Merck & Co., Inc. MRK announced that the FDA has granted accelerated approval for the label expansion of its PD-L1 inhibitor, Keytruda, for metastatic small cell lung cancer (“SCLC”) in third- or later-line setting. This approval marks the first-label expansion for Keytruda in the SCLC indication. The approval was based on pooled data from SCLC cohorts of two clinical studies — KEYNOTE-158 (cohort G) and KEYNOTE-028 (cohort C1) — which evaluated the drug in SCLC patients whose disease has progressed after platinum-based chemotherapy and at least one other prior line of therapy. Data demonstrated that treatment with Keytruda achieved an objective response rate of 19% and complete response rate of 2% in the patient population. The duration of response was six months or longer in 94% of the patients, 12 months or longer in 63% of patients and 18 months or more in 56% of patients. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Caterpillar Inc. CAT reported a rise of 6% in global retail sales for the three-month period ended May 2019 — the lowest so far this year. Nevertheless, Resource Industries, Construction Industries, and Energy & Transportation segments continue to report positive gains for the 23rd, 28th and 21st consecutive months, respectively. Caterpillar has a Zacks Rank #3. In May, growth was primarily led by Latin America, which logged an increase of 16%, followed by North America, with growth of 15%. Sales in EAME dropped 5% and Asia Pacific witnessed a 4% dip. Barring North America and EAME, performances deteriorated across all regions compared with April. (Read: Caterpillar's May Sales Growth of 6% Hits Year's Lowest Point) Johnson & Johnson ’s JNJ subsidiary Janssen announced top-line results from the phase III DISCOVER 1 and 2 studies on its IL-23 inhibitor, Tremfya/guselkumab. Both studies evaluated the safety and efficacy of Tremfya as compared to placebo for treating adult patients with active moderate to severe psoriatic arthritis (PsA). Johnson & Johnson has a Zacks Rank #3. The studies met the primary endpoint of American College of Rheumatology 20% improvement while the safety profile was consistent with the previous programs on Tremfya/guselkumab. Tremfya was first approved in the United States and the EU in 2017 for the treatment of moderate-to-severe plaque psoriasis. Based on data from the two DISCOVER studies, Janssen will submit a regulatory filing to the FDA and the European Medicines Agency (EMA) for an approval to expand the label of Tremfya as a treatment for psoriatic arthritis, later this year. (Read: J&J's Tremfya Meets Goal in Psoriatic Arthritis Study) Goldman Sachs GS is integrating four separate private-investment groups into a single unit. The restructuring is expected to take months. The news was first reported by The Wall Street Journal. The new unit will comprise arms that invest in private companies, real estate and other hard-to-access deals, and is expected to reflect about $140 billion in assets. The move is aimed to make Zacks Rank #3 Goldman’s alternative division more appealing to investors and boost stock price. Per the article, the new division’s core business will be a merchant-banking unit, which has about $100 billion invested in private assets. Notably, a special situations group will be joining the core with a portfolio of about $30 billion. Also, Goldman’s strategic investing group that makes investments in financial technology startups, will be part of it. (Read: Goldman Sachs to Combine 4 Private-Investing Units) Performance of the Top 10 Dow Companies The table given below shows the price movement of the 10 largest components of the Dow, which is a price-weighted index, over the past five days and during the last six months.Over the past five trading days, the Dow has jumped 2.6%. Next Week’s Outlook Investors have been greatly encouraged by indications that the Fed could cut rates next month. Meanwhile, most economic reports remain strong, providing another cause for enthusiasm. But this could be counterproductive, since it lowers the chances of a rate cut. At the same time, geopolitical conflicts could spoil the markets’ party. Investors would be advised to remain cautious in the trading week ahead. Today's Best Stocks from Zacks Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year. See their latest picks 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 Merck & Co., Inc. (MRK) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Array BioPharma Inc. (ARRY) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report To read this article on Zacks.com click here. View comments |
Is There Now An Opportunity In Mogo Finance Technology Inc. (TSE:MOGO)?
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Mogo Finance Technology Inc. (TSE:MOGO), which is in the consumer finance business, and is based in Canada, received a lot of attention from a substantial price increase on the TSX over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Mogo Finance Technology’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for Mogo Finance Technology
Great news for investors – Mogo Finance Technology is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is CA$7.97, but it is currently trading at CA$4.78 on the share market, meaning that there is still an opportunity to buy now. Mogo Finance Technology’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Mogo Finance Technology, it is expected to deliver a negative earnings growth of -11%, 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?Although MOGO is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to MOGO, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor?If you’ve been keeping tabs on MOGO for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Mogo Finance Technology. You can find everything you need to know about Mogo Finance Technology inthe latest infographic research report. If you are no longer interested in Mogo Finance Technology, 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. |
Legg Mason's (LM) CEO Pay Package for FY19 Jumps 2.9% Y/Y
Legg Mason Inc.’s LM chief executive officer (CEO) Joseph A. Sullivan’s total compensation, including a cash bonus, had been increased to $9.95 million in fiscal 2019. This represents a jump of 2.9% from the prior fiscal year on higher incentives, according to the Securities and Exchange Commission (SEC) filing.In fiscal 2019, Sullivan’s pay package included a salary of $500,000, unchanged from fiscal 2018, a cash bonus of $3.4 million (down from $4 million in 2018) and stock awards of $5.73 million (up from $3.32 in 2018). He also received stock options worth $1.66 million, in line with fiscal 2018. Notably, 60% of incentive awards were paid in equity to Sullivan, while 40% was paid in cash.However, Sullivan’s pay was down 14% in real terms due to the SEC's rules. Per the rules, fiscal 2019 salary package includes value of equity awards recorded in May 2018, rather than equity awards granted in May 2019 as compiled by the company's board. Therefore, actual compensation came in at $9 million, including incentive awards worth $8.5 million.Per Legg Mason’s board, Sullivan’s pay package is commensurate with the company's financial performance and compensation of its competitor firms’ CEOs. However, several top executives of Legg Mason witnessed pay declines.For fiscal 2019, the Baltimore-based investment manager recorded total revenues of $2.9 billion, down 8% year over year, mainly due to lower performance fees. Further, assets under management (AUM) edged down 1% year over year to $758 billion. Notably, investors were inclined toward passive indexes during the fiscal year.Although there were industry-wide challenges, as per the board, Legg Mason's executive management team had "strong individual performance" and "consistent execution" of the company's corporate strategy for providing more investment options to clients.Furthermore, Sullivan was compensated highly for tackling the company’s growth and efficiency initiatives in response to industry challenges and "driving sound capital allocation decisions."Notably, during fiscal 2019, a restructuring plan was implemented by Legg Mason which included costs of $130-$150 million. Nonetheless, the plan is anticipated to record savings of $100 million annually over the long-term.We believe Legg Mason has the potential to outperform its peers over the long haul, given its diversified product mix and leverage to the changing demographics in the market.Legg Mason currently flaunts a Zacks Rank #1 (Strong Buy). The company’s shares have appreciated around 46% year to date compared with growth of 17.4% registered by the industry.
Stocks to ConsiderFranklin Resources, Inc. BEN has been witnessing upward estimate revisions, for the past 60 days. Also, the company’s shares have gained nearly 16.4% year to date. At present, it sports a Zacks Rank of 1. You can seethe complete list of today’s Zacks #1 Rank stocks here.Ameriprise Financial, Inc. AMP has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has jumped around 43% year to date. It currently carries a Zacks Rank #2 (Buy).First Business Financial Services, Inc. FBIZ has been witnessing upward estimate revisions, for the past 60 days. Moreover, this Zacks #2 Ranked stock has rallied more than 19%, year to date.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks 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 reportFirst Business Financial Services, Inc. (FBIZ) : Free Stock Analysis ReportAmeriprise Financial, Inc. (AMP) : Free Stock Analysis ReportFranklin Resources, Inc. (BEN) : Free Stock Analysis ReportLegg Mason, Inc. (LM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
As Brazil’s Economy Risks Recession, Regulators and Banks Implement Blockchain
Brazil’s weak economic growth and inflationary pressure have led to more than 13 million Brazilians currently out of work. Theunemployment ratecurrently stands at 12.5%. While the country runs the risk of recession, cryptocurrency’s low barrier for entry and promise of large returns appeal to Brazilians. Bruno Peroni, chief sales officer at Atlas Quantum, told Cointelegraph:
“We have a higher number of people investing in crypto than on the local stocks markets. The most recent estimates show that there are 1.5 million Brazilians investing in crypto, whereas the local stock markets, called B3, has just reached 1 million investors.”
Adraft billrequiring public administrators to promoteblockchain, as Cointelegraph Brazil reported, was filed by a group of 10 federal officials from different political parties and states in the lower house of the National Congress of Brazil on June 11.
The newdraft bill, titled the Digital Provision of Public Services in Public Administration – Digital Government, requires federal and state government divisions to explore technologies like artificial intelligence and blockchain to improve public services.
Federal Deputy Tiago Mitraud of the libertarian Brazilian political party called the New Party signed the bill, as well as officials from various other parties, including the Brazilian Socialist Party (PSB). It’s not the only recent action by Brazilian authorities on the cryptocurrency and blockchain front.
The president of the Brazil’s Chamber of Deputies, furthermore,ordereda commission to consider cryptocurrency regulation for the country. The country is alsoestablishinga regulatory sandbox, according to reports from June 13.
Also, within a space of just a week, Brazil's Department of Federal Revenuepublisheda manual on June 18 that obliges all exchanges in Brazil to report 100% of user transactions to the supervisory.
In January of this year, the Financial Supervision Council of Brazilannouncedit would regulate cryptocurrencies using Brazil’s Anti-Money Laundering laws, including fines as high as $5 million for violators.
Brazilian merchants, meanwhile, are stilldealingwith a lack of regulatory clarity. There has been an ongoing dispute between banks and companies operating in the cryptocurrency space.
Banks closed the accounts of various brokerage firms with cryptocurrency ties. Fernando Furlan, president of the Brazilian Blockchain and Cryptocurrency Association (ABCB), told Universo Online, a Brazilian news website:
"We are competitors and we are also users of the banking system, banks can not act unilaterally, they claim that it is not possible to guarantee that there is no money laundering."
“While the government and the banks are always boasting about their projects involving blockchain technology, many crypto-related companies have their bank accounts closed,” he added.
Campos also adds that the focus of the crypto industry should shift in the near future, saying, “By following strict rules, we hope that the government understands that crypto is not a safe haven for criminals and that it should strive for Brazil to be a big player in this new era of decentralized finance.”
While regulators explore cryptocurrency regulations, the Central Bank of Brazil (BCB), the Securities and Exchange Commission (CVM), the Superintendent of Private Insurance (SUSEP) and the Ministry of Economy’s Special Secretariat for Finance are working todigitizethe financial, capital and insurance sectors of Brazil by integrating blockchain technology. The official statement said:
“The use of innovative technologies as distributed ledger technology, blockchain, robo-advisors and artificial intelligence has allowed the rise of new business models, reflecting a bigger offer and reach.”
Vice President of Brazil’s largest bank, Bradesco,revealedthat major banks will introduce a unique blockchain platform, which it is developing alongside distributed ledger consortiumR3, and the bank Itau. The platform is focused on foreign trade and insurance, as Cointelegraph reported on June 11. Bradesco told Cointelegraph in a written statement:
“Bradesco has been studying Blockchain/Distributed Ledger since 2015 and since then has carried out pilot projects in areas related to payments, Know Your Customer (KYC), fraud prevention and Certificate of Deposits (CDB). The platforms used so far are Corda, Hyperledger Fabric, Ethereum, and Ripple. Through these projects, we have tracked the evolution of technology regarding processing and reconciliation capacity for future large scale applications.”
The bank has also recently joined IBM's Blockchain World Wire solution for international remittances, the Marco Polo trade finance consortium and the National Financial System Network, the first Brazilian blockchain network, which is managed by the Interbank Payment Chamber (CIP).
Bradesco believes that blockchain and distributed ledger technologies could help “in terms of agility, security, transaction transparency, and costs in existing services, as well as enabling the development of new services.”
Keiji Sakai, the country head for Brazil at R3, told Cointelegraph in an emailed statement:
“While we are very excited about these projects, the potential for Corda stretches well beyond financial services. Corda removes costly friction in business transactions across every industry. It enables institutions to transact directly using smart contracts, while ensuring the highest levels of privacy and security. Its applications stretch from financial services and healthcare to oil and gas and we’re always looking to capitalise on those opportunities in Brazil and beyond.”
In early June, CIP launched its blockchain ID platform on Hyperledger Fabric through a partnership with IBM. Nine banks are participating in the project, called Device ID, which is designed to authenticate and verify digital signatures with mobile devices. The project is to beintegratedinto Brazil’s domestic clearing system, the Brazilian Payment System (SPB). Regarding this, Joaquim Kiyoshi Kavakama, director of Febraban, Brazil’s national banking association, told Cointelegraph:
“Brazilian banks have been studying blockchain technology applications for a long time, but they weren't all together. So we decided to create a group and unify all actions, which is very important to achieve standardization to all banks. We are now in the forefront when it comes to blockchain.”
In addition to the Device ID anti-fraud solution headed by CIP, Bradesco has projects related to international remittance, trade finance, insurance, investments, customer registration and payments, among others.
Ripple, an enterprise blockchain software company, recently opened an office in Brazil as a first step to expanding its footprint in South America. The company has already partnered with more than a dozen Brazilian financial institutions and money transfer companies — including Santander Brazil, international payment service BeeTech, Banco Rendimento, etc.
Ripple says its 2019 focus includes growing its presence in not only Brazil, but across South America, to countries like Chile, Peru and Argentina. The company is also working with Brazilian universities — such as the University of São Paulo and Fundação Getulio Vargas per its University Blockchain Research Initiative. Luiz Antonio Sacco, managing director for Ripple in South America, shared his thoughts with Cointelegraph:
“We believe that academic institutions will play a key role driving the blockchain industry forward. USPand FGV are innovative, forward-thinking institutions that are investing in blockchain research to explore new use cases and help prepare students for future jobs in this space.”
Peroni of Atlas Quantum says it’s hard to know the cause of Bitcoin’s growth in Brazil. “Our guess is that the low barrier to entrance and the prospect of exponential returns might be one of the reasons why so many Brazilian investors are gearing towards crypto,” he said.
• Brazil Authorities to Adapt Cross-Sector Regulations to React to Digital Transformation
• Ripple Launches Office in Brazil, Targets Further Expansion Across Latin America
• Firm Behind Zcash to Introduce New Version of Protocol With Sharding
• Grand Theft Crypto: The State of Cryptocurrency-Stealing Malware and Other Nasty Techniques |
Is Mogo Finance Technology Inc. (TSE:MOGO) Potentially Undervalued?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Mogo Finance Technology Inc. (TSE:MOGO), which is in the consumer finance business, and is based in Canada, led the TSX gainers with a relatively large price hike in the past couple of weeks. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Mogo Finance Technology’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Mogo Finance Technology
Good news, investors! Mogo Finance Technology is still a bargain right now. According to my valuation, the intrinsic value for the stock is CA$7.97, but it is currently trading at CA$4.78 on the share market, meaning that there is still an opportunity to buy now. Mogo Finance Technology’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -11% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Mogo Finance Technology. This certainty tips the risk-return scale towards higher risk.
Are you a shareholder?Although MOGO is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to MOGO, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor?If you’ve been keeping tabs on MOGO for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Mogo Finance Technology. You can find everything you need to know about Mogo Finance Technology inthe latest infographic research report. If you are no longer interested in Mogo Finance Technology, 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. |
When Should You Buy MobileIron, Inc. (NASDAQ:MOBL)?
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MobileIron, Inc. (NASDAQ:MOBL), which is in the software business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at MobileIron’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for MobileIron
According to my valuation model, MobileIron seems to be fairly priced at around 15% below my intrinsic value, which means if you buy MobileIron today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $6.89, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since MobileIron’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. MobileIron’s earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
Are you a shareholder?MOBL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping tabs on MOBL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on MobileIron. You can find everything you need to know about MobileIron inthe latest infographic research report. If you are no longer interested in MobileIron, 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. |
How Slack Made Other Startup CEOs Wealthy: Term Sheet
SLACK SOARS
• Slack killed it.On its first day of trading, the company’s shares opened at $38.50, 48% higher than its expected price, giving it a market cap of $19.5 billion. That’s nearly triple its last private market valuation of $7.1 billion.Yesterday, I noted that Accel had a big windfall thanks to Slack’s public market debut. But I readan interesting story inForbesthat talks about how Slack’s surprise winners are other startup CEOs. Before the company pivoted into the Slack we know today, it was called Tiny Speck (which made video games that ultimately failed to catch on.)Before co-founders Stewart Butterfield, Cal Henderson and two former Flickr colleagues went to raise money from VCs, they first gave a call to their friends. Those friends were influential tech founders: LinkedIn’s Jeff Weiner; Stripe’s Patrick and John Collison; Squarespace’s Anthony Casalena; Twitter’s Biz Stone; Yammer’s David Sacks; and Jeremy Stoppelman of Yelp. According toForbes,they all took stakes in the early rounds of the company.And now, their bet on Butterfield & his fledgling Tiny Speck has paid off handsomely. Each $25,000 they invested would now be worth more than $40 million. The beauty of the direct listing is there’s no “lockup” period like in a traditional IPO, so its shareholders can immediately sell their shares.From the story:“It’s Silicon Valley’s greatest strength and Achilles heel,” says Margaret O’Mara, a professor at the University of Washington who has studied the modern history of Silicon Valley. “You have people who are winners from the previous generation picking winners from the next. And by their mentorship, they give these companies a leg up. The virtuous cycle, or vicious cycle, depending on how you look at it, goes again and again.”She calls it “virtuous or vicious” because it’s a double-edged sword. On the one hand, you increase the founder’s chances of success thanks to all the mentorship and money. On the other, investing in circles keeps the concentration of wealth and power in the same hands. If you’re an outsider with a great idea but few influential connections, it makes it that much harder to break in.‘A RAINY DAY:’I interviewed Brex co-founder Henrique Dubugras on a panel atFortune’sBrainstorm Finance conference in Montauk yesterday. If you live in San Francisco, you’ve likely seen the company’s ads everywhere. Brex issues corporate credit cards for tech companies and allows entrepreneurs to get a corporate card quickly, with higher credit limits, no personal guarantee, and instant approvals.My question was: What happens when the market turns & the party stops? What implications would this have for Brex given that the two-year-old company has never had to weather a recession or financial crisis of any sort.There’s a contingency plan though, Dubugras said. He’s raised more than $300 million in venture capital funding, and he notes, “We’re setting some of that aside for a rainy day, so you can have money to pay back everyone.”Watch the full interview here.
• VENTURE DEALS•Druva Inc,a Sunnyvale, Calif.-based provider of cloud data protection and management solutions, raised $130 million in funding.Viking Global Investorsled the round.•Unily, a U.K.-based digital workplace platform, raised $68 million in funding. Investors includeSilversmith Capital PartnersandFairview Equity Partners.•Procurify, a SaaS-based spend management solution, raised $20 million in Series B funding. Investors includeInformation Venture Partners, as well as, Runa Capital, HarbourVest Partners, Manulife,andBC Tech Fund managed by Kensington Capital.•Rhumbix, a San Francisco-based mobile platform for smarter construction sites, raised $14.3 million in Series B funding.Blackhorn VenturesandTenfore Holdingsled the round, and were joined by investors includingGreylock Partners, S28 Capital, South Park VenturesandGlynn Capital.•CoHive, an Indonesia-based co-working space company, raised $13.5 million in funding.Stonebridge Venturesled the round.•Engage3, a Davis, Calif.-based company that helps retailers manage their price image through competitive data, data science and AI-powered software solutions, raised $12 million in Series C funding.The March Fundled the round.•Ockam, a San Francisco-based serverless platform for IoT developers, raised $3.2 million in seed funding. Investors includeCore Ventures, Future Ventures, OktaandSGH Capital.
• HEALTH AND LIFE SCIENCES DEALS•Comet Therapeutics,a Cambridge, Mass.-based biotech firm, raised $28.5 million in Series A funding.CanaanandSofinnova Partnersco-led the round.•Axial Biotherapeutics,a Boston-based developer of gut-targeted therapeutics for neurodegenerative diseases and neurodevelopmental disorders, raised $10 million in funding. Investors includeTaiho Ventures LLC.•Tangen Biosciences Inc,a Branford, Conn.-based molecular diagnostics company, raised $9 million in Series A funding.Connecticut Innovationsled the round, and was joined by investors includingVC23, AxiomandLeading Edge Ventures.
• PRIVATE EQUITY DEALS•HOP Energy LLC, which is backed byDelos CapitalandShorevest Capital, acquiredKosco Heritage Energy LLC, a Kingston, N.Y-based distributor of heating oil. Financial terms weren’t disclosed.•eSolutions Inc,a portfolio company ofFrancisco Partners,acquiredPractice Insight, a Houston, Texas-based provider of integrated electronic data interchange and revenue cycle management workflow solutions for healthcare providers. Financial terms weren’t disclosed.•Construction Resources, a portfolio company ofMonomoy Capital Partners, acquiredUnited Materials Inc, a Florida-based importer and distributor of surfacing materials. Financial terms weren’t disclosed.•FoodChain ID, a portfolio company ofPaine Schwartz Partners LLC, acquiredDecernis LLC, a provider of technology and content solutions for compliance, safety, and risk management. Financial terms weren’t disclosed.•Pamlico Capitalagreed to invest inDigitech Computer LLC, a provider of revenue cycle management and technology solutions for Emergency Medical Services transport providers. Financial terms weren’t disclosed.
• IPOs•Trainline, a U.K.-based rail and coach tickets seller, raised 951 millions pounds ($1.2 billion) by floating 56.5% of the business. Baillie Gifford invested.Read more.•AMTD International, a Hong Kong-based financial services firm and investment bank, filed for a $200 million IPO. It posted revenue of $92.1 million in 2018 and profit of $66.9 million. AMTD Global Markets and Tiger Brokers are underwriters.Read more.•Dermavant Sciences, a London-based Phase 3 biotech for dermatological diseases, postponed plans to raise $100 million in an IPO of 7.7 million shares priced between $12 to $14. It has yet to post a revenue, and posted losses of $42.7 million in 2018.Roviantbacks the firm. Jefferies, SVB Leerink and Guggenheim Securities are underwriters. It plans to list on the Nasdaq as “DRMT.”Read more.
• EXITS•UnitedHealth Group Inc.agreed to buyEquian LLC, a health-care payments firm, for $3.2 billion. The seller wasNew Mountain Capital.
• SHARE TODAY’S TERM SHEETView this email in your browser.Polina Marinovaproduces Term Sheet, andLucinda Shencompiles the IPO news. Send deal announcements to Polinahereand IPO news to Lucindahere. |
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