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Date stringdate 2022-01-02 00:00:00 2023-12-16 00:00:00	Symbol stringclasses 474 values	Article stringlengths 332 142k
2023-12-16	OCFCP	The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance. ATLANTICUS HOLDINGS CORP (ATLC) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Motley Fool changed from 65% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Atlanticus Holdings Corporation is a financial technology company engaged in facilitating consumer credit through financial technology and related services. The Company's segments include Credit as a Service (CaaS) and Auto Finance Segment. CaaS segment provides private label credit and general-purpose credit cards originated by lenders through multiple channels, including retail and healthcare, direct mail solicitation, digital marketing and partnerships with third parties. Its flexible technology solutions allow bank partners to integrate its paperless process and instant decisioning platform with the existing infrastructure of participating retailers and service providers. Auto Finance segment conducted through its CAR platform. Its CAR primarily purchases and/or services loans secured by automobiles and provides floor-plan financing for pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here and pay-here used car business. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL INSIDER HOLDINGS: PASS CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS "THE FOOL RATIO" (P/E TO GROWTH): PASS AVERAGE SHARES OUTSTANDING: PASS SALES: PASS DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of ATLANTICUS HOLDINGS CORP ATLC Guru Analysis ATLC Fundamental Analysis TRIUMPH FINANCIAL INC (TFIN) is a small-cap growth stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 73% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Triumph Financial, Inc. is a financial holding company. The Company's segments include Banking, Factoring and Payments. The Banking segment includes the operations of TBK Bank, which offers products and services that are focused on serving the local communities in which it operates and creating full banking relationships with both personal and commercial clients. TBK Bank operates retail branch networks in three geographic markets, including a mid-western division, a western division, and a mountain division. Its traditional banking offerings include a full suite of lending and deposit products and services. The Factoring segment includes the operations of Triumph Financial Services, which offers factoring services to its customers across a variety of industries with a focus on transportation factoring. The Payments segment includes the operations of TBK Bank's TriumphPay division, which is the payments network presentment, audit, and payment of over-the-road trucking invoices. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS SALES: PASS DAILY DOLLAR VOLUME: PASS PRICE: PASS INCOME TAX PERCENTAGE: PASS Detailed Analysis of TRIUMPH FINANCIAL INC TFIN Guru Analysis TFIN Fundamental Analysis MUELLER INDUSTRIES INC (MLI) is a mid-cap value stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Motley Fool changed from 59% to 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Mueller Industries, Inc. is a manufacturer of copper, brass, aluminum and plastic products. The Company manufacture a range of products, including copper tube and fittings; line sets; PEX plastic tube and fittings; aluminum and brass forgings; aluminum impact extrusions; compressed gas valves; refrigeration valves and fittings; pressure vessels; coaxial heat exchangers; and insulated flexible duct systems. It operates in the United States and in Canada, Mexico, Great Britain, South Korea, the Middle East and China. It operates through three segments, which include Piping Systems segment, which is composed of Domestic Piping Systems Group, Great Lakes Copper, Heatlink Group, European Operations, Trading Group, Jungwoo-Mueller and Mueller Middle East; The Industrial Metals segment that is composed of Brass Rod, Impacts & Micro Gauge and Brass Value-Added Products, and Climate segment, which is composed of Refrigeration Products, Westermeyer, Turbotec, Flex Duct and Linesets, Inc. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): PASS AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: PASS Detailed Analysis of MUELLER INDUSTRIES INC MLI Guru Analysis MLI Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Investors will likely remember 2023 as the year artificial intelligence (AI) found footing in the market. With the excitement generated by ChatGPT, investors have rushed into many prominent AI stocks. Such price action may persuade investors to make a New Year's resolution to buy a specific stock. Verizon (NYSE: VZ) is one to consider. Investors hammered it as debt costs and growth struggles weighed on the telecom stock. Nonetheless, thanks to a critical piece of news, this stock is likely to surge higher in the new year for one key reason. Why is 2024 the time for Verizon? Admittedly, after years of declines, one can understand some hesitation to buy Verizon. The stock has fallen 35% over the last five years as slow customer growth, competition from T-Mobile and AT&T, and the massive capital costs in a nearly continuous process of network upgrades weighed on the company. Consequently, Verizon managed to rack up nearly $147 billion in debt, and that is without the costly moves into pay TV and content that have hurt AT&T. Over the next year, almost $13 billion in debt will come due on debt ranging from 1.625% to 4.073% in interest costs. Hence, unless it reduces or eliminates the dividend, which is on track to cost it $11 billion in 2023, Verizon will likely have to turn to the capital markets to refinance most of the debt at higher rates. Worse, it could have to keep repeating this process in subsequent years. The good news However, Federal Reserve Chairman Jerome Powell has held the federal funds rate steady and indicated the Fed will reduce it three times in 2024. That move could reduce the effect of the higher rates as it issues new debt. Moreover, lower rates could improve Verizon's revenue prospects. Businesses had cut back on activity with the higher cost of borrowing, but lower rates could mean that they'll resume spending. This is important because J.D. Power has named Verizon No. 1 for network quality 31 consecutive times. Networks like Verizon's support AI-driven activities, and such accolades could make it the best-positioned telecom company to attract that business. AI has also helped foster an additional source of revenue for Verizon. Its 5G network can support AI-driven tasks such as repetitive work and bring insights and innovation in real time, making Verizon's network a critical component of increasing productivity. As a result, enterprises as diverse as Honda Motor Company and Arizona State University rely on Verizon's 5G to support connectivity and IT-related functions that are critical for AI to work. Attracting similar clients will almost certainly make Verizon's 5G network and the application of AI more critical. How that may benefit shareholders As such benefits become more evident to investors, more people and entities may want to become Verizon shareholders. In the recent past, its price-to-earnings (P/E) ratio of just under 8 did not attract investors due to slow growth and high debts. Still, if AI-driven applications start to spur more revenue growth, investors will probably respond positively to the low earnings multiple. Investors may also be in better shape with regard to the dividend. After 17 yearly increases, the annual payout of $2.66 per share amounts to a dividend yield of over 7%, nearly five times the S&P 500 average of 1.5%. Admittedly, one could argue that eliminating the dividend helps Verizon stock since it makes faster debt reduction possible. Still, lower debt costs make it less costly to maintain a payout, which could preserve the stock's appeal to income investors. Consider Verizon Verizon's support of AI-driven applications makes its stock more appealing under current conditions. Since it leads in network quality, it has already begun to serve the 5G-related AI needs of clients, a business that will likely grow. With the added prospect of falling interest rates, adopting that technology could accelerate. Moreover, lower rates should make the company's debt load more manageable, increasing the shareholder appeal of Verizon stock in the new year. Should you invest $1,000 in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Will Healy has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	What a year for Microsoft (NASDAQ: MSFT). The tech stalwart kicked off 2023 by hitting a 52-week low of $219.35 on January 6. Then Microsoft-backed OpenAI's ChatGPT grabbed headlines as artificial intelligence exploded into prominence. Since then, Microsoft shares have risen steadily, reaching a 52-week high of $384.30 toward the end of November, illustrating just how far the stock has come from the start of the year. So is it too late to purchase the tech giant's stock? The share price has pulled back from its recent high, creating a potential buy opportunity. Let's analyze where the company is at currently to determine if now is a good time to buy. Microsoft's capacity for success Microsoft is capitalizing on some of the hot technological trends of our time. The company is prospering as it pursues market share in cloud computing and artificial intelligence. This is illustrated by Microsoft's performance in its fiscal 2024 first quarter, ended September 30. The company's Q1 revenue experienced double-digit year-over-year growth, hitting $56.5 billion. Moreover, net income saw an impressive 27% year-over-year jump to $22.3 billion. Microsoft's Q1 prosperity isn't just confined to 2023. The tech veteran's revenue has risen steadily over the years, showing it's on a streak of multi-year growth thanks to its success tapping into cloud computing and AI technologies. Data by YCharts. That success should continue. The company forecasted double-digit revenue growth in fiscal Q2 across many of its offerings, including its Azure cloud computing business. Azure falls under the company's Intelligent Cloud division, which produced $24.3 billion of fiscal Q1's $56.5 billion in sales. In fact, Microsoft CFO Amy Hood stated, "with our strong start to FY24, I am confident that as a team, we will continue to deliver healthy growth in the year ahead driven by our leadership in commercial cloud and our commitment to lead the AI platform wave." Microsoft's many strengths The Microsoft team has good reason to believe the company's current success will continue. The cloud computing and AI technologies at Microsoft's disposal are impressive. It has data centers in over 60 regions around the world. This widespread coverage means Microsoft's systems are fast, since customers using the company's cloud computing and AI technologies are likely to have a data center close to them. This massive data center footprint helped Microsoft secure an exclusive partnership with Oracle, allowing the latter's more than 400,000 customers to access Azure. As for AI, over 18,000 organizations use Microsoft's artificial intelligence technology. This has translated into tangible business results for Microsoft. For instance, the company's Dynamics 365 product, a Salesforce competitor in the customer relationship management (CRM) space, experienced 10 consecutive quarters of market share gains through fiscal Q1, helped by AI features such as automating sales tasks. Microsoft CEO Satya Nadella described Dynamics 365 as an "AI inflection point to redefine our role in business applications." Moreover, Microsoft's Xbox gaming division should get a significant sales boost in fiscal 2024. The company's acquisition of gaming giant Activision Blizzard closed on October 13th. And it doesn't end there. Microsoft's financial strength is impressive. The company exited its fiscal Q1 with total assets approaching a staggering half a trillion dollars. Cash, cash equivalents, and short-term investments alone totaled $144 billion. Total liabilities were a manageable $225.1 billion. To buy or not to buy Microsoft stock So much is going right for Microsoft at this time, and the company even provides a modest dividend, currently yielding 0.8%, as the cherry on top for investors. Microsoft increased its dividend by 10% this year, and has raised it annually for more than a decade. Microsoft is the second-largest cloud computing provider in the world, behind only Amazon. The public cloud computing market, where Microsoft's Azure operates, is forecasted to grow over 78% between 2023 and 2028. Meanwhile, the AI market is estimated to increase from $142.3 billion in 2022 to $1.8 trillion by 2030. The industry growth in AI and cloud computing provide a tailwind to help Microsoft's revenue continue its multi-year rise. The company's impressive technological capabilities position it well to maintain its prosperity, making Microsoft a worthwhile tech stock to buy now. Should you invest $1,000 in Microsoft right now? Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Robert Izquierdo has positions in Amazon, Microsoft, and Salesforce. The Motley Fool has positions in and recommends Amazon, Microsoft, Oracle, and Salesforce. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	There's no doubt that 2022 will go down in history as one of the toughest years on record for Wall Street, but markets appear to have turned the corner. After tumbling more than 35% in 2022, the Nasdaq Composite has rebounded with a vengeance, gaining 39% thus far in 2023 (as of market close on Tuesday). Investors who are students of history will know the surge will likely continue. As far back as 1972 -- the first full year of trading for the Nasdaq -- in the year following a market rebound, the tech-heavy index has generated gains of 19% on average, which suggests the current rebound will likely continue. Furthermore, the resurgence of stock splits in recent year has investors taking a fresh look at companies that have split their shares, as the move is usually preceded by years of robust growth. One such company is Amazon (NASDAQ: AMZN). The stock has gained 677% over the past decade, causing the company to split its shares in mid-2022. Despite recent challenges, Amazon has a history of strong performance, and the coming year will likely be no different. Image source: Getty Images. Late to the AI race or decades early? Demand for generative artificial intelligence (AI) has spread like wildfire over the past year or so, with many businesses scrambling to adopt these sophisticated algorithms to reap the expected productivity windfall. These AI models have been used to draft and summarize emails, search and condense content, mine data, generate original content, and even write computer code, all of which saves users time and makes them more productive. There's been a lot of talk about how Amazon was late to recognize this shift and the accelerating demand for the technology, an uncharacteristic and costly miscalculation. It's further been suggested that this allowed competitors to get the jump on Amazon, but this belies decades of evidence to the contrary. Amazon has implemented AI in a broad cross-section of its operations over the years. It uses AI to make product recommendations to customers, to predict inventory levels necessary at its warehouses and distribution centers, to help stock and ship products (with AI-powered robots), and even to set up the most efficient routes for deliveries. Perhaps most central to the company's efforts is Amazon Web Services (AWS), which has long provided a host of AI offerings to its cloud computing customers. Suggesting Amazon is late to the AI party defies logic, and recent developments suggest the company is putting its years of expertise in the field to good use. Amazon's far-reaching strategy Recently, AWS announced the general availability of Bedrock, a service that gives cloud customers access to all the top generative AI models, including those developed by AI21 Labs, Anthropic, Cohere, Meta Platforms, and Stability AI, among others. Then, of course, there's Amazon's own Titan, which offers a family of AI models that have been trained by AWS, supporting a variety of use cases. For example, Titan Image Generator can create original images using voice prompts, much like OpenAI's DALL-E. These offerings provide cloud users with everything they need to develop their own AI applications, helping bring AI to the masses. Just last month, Amazon revealed that it would provide access to Nvidia's latest state-of-the-art AI chips -- the H200 Tensor Core graphics processing units (GPUs). Amazon also announced its new, more energy-efficient Trainium2 and Graviton4 AI processors. This will give its cloud infrastructure customers access to a wide range of AI choices, from the top of the line to more cost-effective options. The company also debuted Amazon Q, a generative AI-powered assistant designed to help automate and streamline mundane and time-consuming tasks for enterprises. Its cloud unit aside, Amazon is providing generative AI tools to merchants on its e-commerce platform to help create accurate product listings while also debuting AI-powered image generation for customers advertising on its e-commerce platform. Amazon is also deploying generative AI to improve customer purchase recommendations and the search process. Finally, Amazon has taken a page from Microsoft's own AI playbook, taking a $4 billion minority stake in AI start-up Anthropic -- a rival to OpenAI -- to further expand its AI chops. The evidence shows that Amazon is using the next generation of AI to maintain or even improve the competitive advantages in its industry-leading businesses. All that potential at a bargain Despite the stock's significant gains this year, Amazon offers a great deal of opportunity for a surprisingly reasonable valuation. The stock is currently selling for roughly 2.4 times forward sales, a significant discount to its seven-year average of 3.5 times sales. This gives savvy investors the opportunity to buy all the potential Amazon has to offer at a discount. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Danny Vena has positions in Amazon, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.06%, S&P 0.07%, Nasdaq 0.03% Dec 19 (Reuters) - U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year. The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over. Despite attempts by policymakers to temper the optimism since, traders have priced in a 67% chance of the Fed cutting rates by 25 basis points in March, as per the CMEGroup's FedWatch tool, and cuts of 143 bps by December 2024. FEDWATCH The S&P 500 marked a seventh straight week of gains on Friday, its longest winning streak since 2017, while the blue-chip Dow .DJI is trading near all-time highs. Housing starts number for November is due at 8:30 a.m. ET. Investors are awaiting a slew of economic data this week, with focus on the final reading of third-quarter GDP on Thursday, followed by monthly personal consumption expenditure index (PCE) on Friday, the Fed's preferred inflation gauge. San Francisco Fed President Mary Daly said on Monday that cuts to the U.S. central bank's benchmark rate are likely be appropriate next year because of an improvement in inflation this year, the Wall Street Journal reported. Fed Atlanta President Raphael Bostic and Fed Chicago President Austan Goolsbee are scheduled to speak later in the day. Daly and Bostic are voting members in the FOMC's rate-setting committee next year. At 5:36 a.m. ET, Dow e-minis 1YMcv1 were up 21 points, or 0.06%, S&P 500 e-minis EScv1 were up 3.25 points, or 0.07%, and Nasdaq 100 e-minis NQcv1 were up 4.5 points, or 0.03%. Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. PepsiCo PEP.O slipped 0.6% after J.P. Morgan downgraded the stock to "neutral" from "overweight". Plug Power PLUG.O fell 3.4% after Piper Sandler downgraded the hydrogen fuel cell firm to "underweight". (Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Warren Buffett has led the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for more than 50 years. Between 1965 (when he took control of Berkshire) and 2022, the shares delivered a whopping 3,787,464% gain. That translates to a 19.8% compound annual return, which is about twice the return of the benchmark S&P 500 index. It could have turned an investment of just $100 in 1965 into more than $3.7 million today. By comparison, the same investment in the S&P 500 at that time would have grown to just $24,700. Buffett has a simple, but effective strategy The simplest investment strategies are often the best. Buffett likes to buy stakes in profitable companies that are delivering steady growth, especially if they have strong management teams. He also favors companies returning money to shareholders through dividends and stock buybacks. He combines those attributes with a long time horizon, which allows the effects of compound growth to build his portfolio's value. Buffett certainly doesn't chase the lateststock market trends even those as strong as artificial intelligence (AI), which whipped investors into a frenzy throughout 2023. That said, Berkshire does own several AI stocks, even if AI isn't the reason Buffett and his team originally purchased them. Investors might be surprised to know the following three AI stocks account for a whopping 49.1% of Berkshire's $373 billion portfolio of publicly traded stocks. Image source: The Motley Fool. 1. Snowflake: 0.3% of Berkshire Hathaway's portfolio Snowflake (NYSE: SNOW) is a leading provider of cloud computing services to businesses. It only represents 0.3% of Berkshire's portfolio, but it's quickly becoming one of the most direct AI plays owned by the investment company. Snowflake's Data Cloud was revolutionary when it launched in 2018. It helps large, complex organizations aggregate their data from different cloud providers so it's all in one place for maximum visibility. From there, companies can use powerful analytics tools to draw valuable insights from the data. Snowflake recently launched Cortex, a brand new platform featuring AI tools to complement its cloud services. It Document AI service uses a large language model to help businesses extract valuable insights from data in unstructured formats like contracts or invoices. Then there is Universal Search, which allows users to find critical information within Snowflake using natural language instead of programming language, so even non-technical employees can draw value from their organization's data. Cortex also includes a generative AI-powered chatbot called Snowflake Copilot, which serves as a virtual assistant. It's capable of turning text-based prompts into computer code, which can rapidly speed up software development. Snowflake continues to expand its workforce, with its research and development department growing the fastest. That bodes well for future product releases on the AI front, which will create new opportunities to generate revenue. The company expects to bring in $2.6 billion for its fiscal 2024 (which ends Jan. 31), but it isn't profitable, nor does it pay a dividend. Berkshire's decision to invest in Snowflake stock was likely made by a portfolio manager rather than by Buffett himself. Nonetheless, it's shaping up to be a great long-term AI play. 2. Amazon: 0.4% of Berkshire Hathaway's portfolio Amazon (NASDAQ: AMZN) is one of the most diverse technology companies in the world, with dominant positions in industries like e-commerce, cloud computing, streaming, and digital advertising. Now, it's quickly becoming one of the most diverse opportunities in AI. Amazon is focused on delivering the widest possible range of AI products and services to businesses through its cloud computing arm, Amazon Web Services (AWS). The company has already launched its own data center chips, Trainium and Inferentia, which are designed to compete with Nvidia's industry-leading hardware. Plus, AWS offers businesses a growing number of large language models to accelerate the development of AI applications. In fact, Amazon recently made a $4 billion investment into leading AI start-up Anthropic. As part of the deal, AWS will be Anthropic's primary cloud provider, and Anthropic will train its future models on Amazon's chips. Plus, Anthropic will make those models available to AWS customers, which will help differentiate the cloud platform from its competitors. The cloud might be Amazon's most lucrative AI opportunity, but it isn't its only one. The company uses an AI recommendation engine on Amazon.com to show customers products they are most likely to buy. It also uses AI on its Prime streaming service during top broadcasts like the NFL's Thursday Night Football; it ingests millions of data points from each game to display key statistics that keep viewers informed at the highest possible level. Berkshire Hathaway purchased Amazon stock in 2019, and its position is relatively small. But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. Given Amazon's growing exposure to AI, Berkshire might wish it owned more of the stock when it looks back in a few years. 3. Apple: 48.4% of Berkshire Hathaway's portfolio Apple is worth over $3 trillion, making it the most valuable company in the world. Berkshire started betting on the company in 2016, and it has since plowed about $35 billion into the stock. Its position is worth $181 billion as of this writing, so it accounts for a whopping 48.4% of Berkshire's stock portfolio. That isn't surprising because Apple has all the attributes Buffett loves. Its chief executive officer, Tim Cook, has led the company to consistent growth and monster profits since he took the job in 2011. Plus, Apple returns enormous amounts of that money to shareholders, including $15 billion in dividends and $77.5 billion in stock buybacks during its fiscal 2023 (which ended Sept. 30) alone. Consumers and investors know Apple best for hardware like the iPhone, iPad, and Mac personal computers. But the company subtly uses AI throughout all of them. AI powers the autocorrect feature on all Apple keyboards, and the Siri voice assistant. Apple Music also relies on AI to learn what listeners like, so it can feed them more of that content to keep them engaged. Plus, the Apple-designed A17 Pro chip inside the new iPhone 15 lineup can power those AI workloads on-device faster than ever. As more smartphone features use AI, putting next-generation chips in those devices can reduce their dependence on external data centers for computing power, which leads to a faster, more seamless experience for the user. Speculation also is swirling that Apple is pumping millions of dollars per day into AI units across the company -- units that are building everything from conversational AI models to generative AI applications, capable of crafting text, images, and videos. Reports suggest one such application, Ajax GPT, outperforms OpenAI's GPT 3.5 model -- the original technology that powered ChatGPT. That suggests Apple is rapidly catching up to some of the leading developers in the AI industry, which could lead to powerful new features for its products in the coming years. Buffett and his team might look like rock stars if Apple becomes a real player in AI, given Berkshire's gigantic position in the stock. Should you invest $1,000 in Snowflake right now? Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Nvidia, and Snowflake. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Allison Lampert MONTREAL, Dec 19 (Reuters) - Aerospace supplier CEO Hugue Meloche spends more than C$10,000 for each skilled foreign worker he brings to his company's Montreal-area factories, but paying those costs is preferable to leaving key positions unfilled while orders boom. As clients like engine maker General Electric GE.N boosted production in 2022, the head of Meloche Group hired 20% of its workforce of 500 from countries like Mexico, Tunisia and Brazil to make up for staffing shortfalls. This added at least C$1 million ($736,377.03) in costs at a company generating around C$100 million in annual revenue. Added costs like those are especially hitting smaller suppliers with limited resources, industry officials said. The suppliers must then cut costs elsewhere or pass on those extra charges to their customers while struggling to meet demands for competitive pricing and higher production from planemakers Airbus AIR.PA and Boeing BA.N. The tight manufacturing labor market, following a wave of retirements during the height of the COVID-19 pandemic, has led North American aircraft repair shops and suppliers, especially in Canada, to recruit a small but growing number of workers from abroad. This fills critical positions but puts a fresh burden on small suppliers whose human resources staff normally do not help new arrivals find homes and cars. These challenges are not going away as airline and aerospace executives remain cautious on supply chains and see problems persisting until 2025. Meloche's company in the Canadian province of Quebec offers loans to recruits, as well as short-term housing. It has four employees dedicated to helping newcomers with everything from finding a new home to buying a car. "We are the help desk," Meloche said in an interview. "We have huge needs. For us, immigration is not a choice." Plane and engine makers rely less on foreign labor since they have the heft to lure domestic talent with better incentives, recruiters say. But they are not immune. Business jet maker Bombardier BBDb.TO, which has 17,000 workers globally and generated $6.9 billion in 2022 revenue, told Reuters it expects international recruitment will represent 10% to 15% of its Quebec production workforce hired in the next few years, an estimate that was not previously reported. It currently employs about 9,400 in Quebec. Airbus' Canadian division said some of its recruitment needs must be met via immigration, while Boeing said the use of U.S. visas to bring in foreign workers "is very limited." Montreal-based Bombardier is taking on 40 new Moroccan workers with 40 more set to join, following its first international recruitment mission for trade laborers this year. The company provides housing, paid flights and other perks. Offering that kind of help is harder for smaller suppliers, which make up most of the 17 aerospace companies in Quebec that hunted for workers abroad in 2022, according to data from Canadian recruitment specialist AURAY Sourcing International. APARTMENT HUNTING "We're asking (human resource departments) to ... have other tasks they've never had, such as looking for apartments," AURAY client services manager Emilie Sauvé said. For companies like Meloche that have had employees poached, or leave for jobs at planemakers, one benefit in hiring foreign workers under immigration rules is that "they have to be loyal to the company they're hired for," Sauvé said. "The small suppliers are drowning." Hugue Meloche, who expects his business to generate C$135 million in 2023 revenue, sees recent economic headwinds easing the labor shortage, but recruitment of foreign workers will persist in Canada's aerospace hub. Indeed, recruiters say Canadian aerospace companies use foreign workers more than their U.S. counterparts due to the availability of immigration programs that allow such hiring more easily north of the border. But U.S. aircraft repair companies also consider foreign workers as an option, with a North American shortfall of aviation maintenance workers likely to hit 43,000 by 2027, according to consultant Oliver Wyman. One U.S. trade association representing aircraft repair shops is weighing whether in-demand jobs like aircraft mechanics could be eligible for special visas. AAR Corp AIR.N, a Chicago-based network of aircraft maintenance shops, has recruited some technicians from Mexico in recent years under an existing visa due to growing shortages at home, said Ryan Goertzen, a company vice president. Figures for foreign aerospace workers in the U.S. were not available from three government departments approached by Reuters. According to Canadian government data for one nonimmigrant admission program, there were 125 temporary foreign worker positions for aircraft mechanics last year, compared with seven a year earlier and 66 in 2019. There are a handful of programs in Canada used to recruit foreign workers, said Sauvé, adding she expects to see higher numbers this year and next as demand grows at her own firm. The number of aerospace positions targeting international candidates grew 136% at Sauvé's firm this year compared with 2022. "We had it last year, but this year it's exploded," she said. At aircraft repair shop KF Aerospace in British Columbia, workers from countries like South Africa and the Philippines account for about 7% of the workforce. The company has 22 apartments for short-term staff housing. KF hired 40 skilled foreign workers alone this year, compared with roughly 35 over 2018 and 2019 combined. Each skilled foreign worker requires an investment of more than C$11,000 in relocation and immigration costs. But the cost is worth it since KF Aerospace needs skilled workers in order to be able to hire local apprentices, who require mentoring. "Once we hire them, we want to hang on to them as long as we can," KF's chief corporate services officer, Grant Stevens, said, referring to the skilled foreign workers. "Long gone are the days of, 'just put an ad.'" ($1 = 1.3580 Canadian dollars) (Reporting by Allison Lampert in Montreal Editing by Ben Klayman and Matthew Lewis) ((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Anirban Sen and Milana Vinn NEW YORK, Dec 19 (Reuters) - ServiceTitan Inc, a Los Angeles-based startup that makes software to help contract workers manage their businesses, has revived preparations for an initial public offering (IPO) in 2024, according to people familiar with the matter. ServiceTitan, which had been preparing to go public in 2022 before the market for IPOs soured, is working with investment banks Goldman Sachs and Morgan Stanley on its latest preparations for a stock market listing that could come as early as the second quarter of 2024, the sources said, requesting anonymity as the discussions are confidential. ServiceTitan, Goldman Sachs and Morgan Stanley declined to comment. ServiceTitan's stock market launch would add to a growing list of companies, including social media firm Reddit, cloud security company Rubrik, and healthcare payments firm Waystar, aiming for flotations in the first half of 2024, according to people familiar with the matter. A brief revival of the market earlier this year with the offerings of Arm Holdings ARM.O, Instacart CART.O, Birkenstock Holding BIRK.N and Klaviyo KVYO.N ended after some of these companies' shares performed poorly. Founded in 2012 by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan has emerged as a major player in a niche market, making software used by more than 11,800 businesses that are run by technicians serving the HVAC (heating, ventilation and air-conditioning) sector. Its investors include Battery Ventures, Bessemer Venture Partners, Coatue, CPP Investments, Dragoneer Investment Group, Durable Capital Partners LP, Generation Investment Management, ICONIQ Growth, Index Ventures, Sequoia Capital, TPG, and T. Rowe Price. ServiceTitan's business was buoyed by the COVID-19 pandemic, which spurred demand for house renovation services among people working from home. This led the company to confidentially file for an IPO in early 2022. However, after the IPO market closed following Russia's invasion of Ukraine, ServiceTitan had to instead turn to venture investors for fresh capital. In May, the company hired former private equity firm TPG TPG.O executive Dave Sherry as its new chief financial officer. (Reporting by Anirban Sen and Milana Vinn in New York; Editing by Sonali Paul) ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Investors suspected that a special dividend was coming soon, but Costco Wholesale (NASDAQ: COST) has now confirmed the timing of that windfall. A $15-per-share cash payout will land in shareholders' accounts on Jan. 12, assuming they own the stock as of Dec. 28. The retailer's management team prefers these large, one-time payouts over the more predictable dividend growth favored by rivals like Walmart. That's one more way that Costco stands out in the retailing niche. Here are three other key things to know about Costco's $15 payout. 1. Costco's dividend is easily affordable from cash The biggest clue that a special dividend was on the way was Costco's cash holdings, which recently landed near $14 billion. The last time the chain held that much cash, back in 2022, it promptly announced a $10-per-share special dividend. There are some important differences between today's economic environment and the one that characterized 2020. Demand growth isn't nearly as strong today, for one. And interest rates are much higher, meaning Costco has an incentive to hold cash. Yet the retailer still decided to be aggressive here. The $15-per-share payout amounts to $6.7 billion, its biggest special dividend by far. The company can easily afford it, however, as cash balances grew to over $17 billion in the fiscal Q1 selling period that ended in late November. 2. The dividend is a vote of confidence Investors should look at the dividend as a vote of confidence about business trends, too. Costco announced in mid-December that comparable-store sales growth was solidly positive in recent months. Comps were up 3% in the core U.S. market and rose 4% globally. Customer traffic was robust at 5% growth while average spending declined by less than 1%, management said in a recent conference call with investors. Costco has returned to impressive growth in its e-commerce business, too. That division, which sells a high proportion of consumer discretionary products like home furnishings, improved to a 6% increase from a 1% decline in the prior quarter. Arguably the best news about the business is Costco's renewal rates, which continue to push into record-high territory. A full 92.8% of members in the core U.S. market chose to maintain their subscriptions this past quarter, suggesting that shoppers are very pleased with the value they're getting from their memberships. 3. Costco is not your average dividend stock Income investors might still prefer to look elsewhere for their next stock investment. Dividend growth from Costco isn't nearly as predictable as it is from Walmart and Target, which have each steadily boosted their dividends for decades. In contrast, Costco's special payouts occur roughly every few years. The warehouse giant also commits to a smaller regular payout that yields just 0.6% today compared to Walmart's 1.5% yield and Target's 3%-plus yield. Still, Costco has much stronger sales and earnings trends than these peers, partly because most of its profit is derived from membership sales. The chain is well positioned to extend its market share lead over the coming years as well given shoppers' high satisfaction with its merchandise offerings. That's why looking at the special dividend as a bonus for patiently holding this growth stock makes more sense than viewing Costco as a dependable income investment. Should you invest $1,000 in Costco Wholesale right now? Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Demitri Kalogeropoulos has positions in Costco Wholesale. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Prepare the crown for Nvidia (NASDAQ: NVDA). The high-flying stock is almost certainly going to be the best performer of the S&P 500 for 2023. It's been a truly remarkable year for Nvidia thanks to surging demand for its graphics process units (GPUs). Don't automatically assume that this momentum will continue into the new year, though. Nvidia stock could face a tougher 2024 after two recent developments. Here's a look at each and why they could be a problem for Nvidia. 1. New AI chips on the block Nvidia has commanded a dominant position in the AI chip market so far. There simply hasn't been much competition. However, that's changing. Last week, Intel (NASDAQ: INTC) announced plans to launch its new Gaudi3 chip in 2024. Gaudi3 is specifically designed to run generative AI applications. It should compete head-to-head against Nvidia's H100, the current market leader in powering AI apps run on server farms. Intel stated in a press release that it "has seen a rapid expansion of its Gaudi pipeline due to growing and proven performance advances, combined with highly competitive TCO [total cost of ownership] and pricing." The company believes that it will be able to increase its market share in the AI accelerator market next year thanks to the introduction of the Gaudi3 chip. But that's not all. Intel is also launching its new Core Ultra chip for running AI apps on personal computers. CEO Pat Gelsinger said, "We've been seeing the excitement with generative AI, the star of the show for 2023." He added, "We think the AI PC will be the star of the show for the upcoming year." 2. Gemini's quiet diss Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) announcement of its new Gemini large language models (LLM) on Dec. 6 deserved all the attention that it received. The most powerful version of the new LLM model, Gemini Ultra, beat the current state-of-the-art AI models on 30 of 32 benchmarks. It even outperformed human experts on the MMLU (massive multitask language understanding) test -- the first AI system to do so. What didn't receive as much attention, though, was another new product. Google DeepMind CEO and co-founder Demis Hassabis revealed in a blog post the launch of Cloud TPU v5p. The new tensor processing unit (TPU) chip is specifically designed for training AI models. Hassabis stated that it's "the most powerful, efficient, and scalable TPU system to date." Importantly, Google trained Gemini using its own TPUs. There was no mention of Nvidia's GPUs at all. The introduction of Cloud TPU v5p could signal a key advance in Google's AI chip technology. Sure, Google remains closely connected with Nvidia. In August, the two companies announced an expansion of their partnership to make Nvidia's generative AI technology available to Google Cloud customers. However, it's clear that Google doesn't want to depend entirely on Nvidia. The potential impact on Nvidia Do Intel's launches of the Gaudi 3 and Core Ultra AI chips and Google's introduction of its Cloud TPU v5p mean that Nvidia is in dire and imminent trouble? No. There's no reason to think that Nvidia's GPUs won't remain the gold standard for AI apps for now. However, investors are banking on Nvidia continuing to deliver tremendous growth over the next few years. Anything that disrupts that growth could weigh on Nvidia's share price. Nvidia is subject to the laws of supply and demand. The company's soaring profits (and stock price) have been due to fast-growing demand for its GPUs, combined with a limited supply of the AI chips. The recent moves by Intel and Google could diminish the demand for Nvidia's GPUs to some extent. Again, I don't expect Nvidia's momentum to be completely derailed as a result of these new chips. However, it's reasonable to anticipate that Nvidia could face a tougher slog in 2024 than it has in 2023. Don't look for the stock to come anywhere close to tripling (and more) as it has done this year. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 18, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Like many new technologies, generative artificial intelligence (AI) has become a bit of a hype cycle, and investor excitement is beginning to overshadow fundamentals. But like every hype cycle in the past, this one will mature. And the AI companies with the strongest business models will stand the test of time. Let's explore some reasons why Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN) look to be among the best in an increasingly competitive field, and could make excellent buys in 2024. 1. Nvidia If you liken the artificial intelligence boom to the California Gold Rush, Nvidia would sell the picks and shovels instead of mining for gold. This strategy gives the company a massive market opportunity and shields it from rising competition in the more consumer/client-focused side of the industry. And despite its market cap of $1.21 trillion, investors aren't too late to bet on the chip makers' long-term potential. Nvidia's third-quarter revenue more than doubled to $18.12 billion because of surging demand for its data center chips, which are used to train and run the most advanced generative AI applications. This level of growth is staggering for such a large company. More importantly, it is translating to record-breaking profitability. Net income surged more than 1,200% to $9.24 billion. This can be credited to Nvidia's spectacular pricing power because of low competition, which has led to high margins. Rivals such as Advanced Micro Devices are racing to bring competition to the AI chip market. But with industry experts expecting the opportunity to be worth $400 billion by 2027, there is plenty of room for more players. While Nvidia's trailing price-to-earnings (P/E) multiple of 65 looks high compared to the S&P 500 average of 26, this is a backward-looking metric that doesn't account for the company's epic growth rate. With a forward price-to-earnings (P/E) multiple of 25, Nvidia stock is still affordable relative to its projected earnings. 2. Amazon Like Nvidia, Amazon is another technology giant focusing on the infrastructure side of the AI opportunity, albeit a little bit further up the food chain. The company is incorporating AI-related services into its cloud computing platform AWS, and this could add much-needed growth and diversification to its sprawling technology empire. In September, Amazon announced the general availability of Bedrock, a platform designed to help clients build and scale customizable AI models. Bedrock will compete with similar services from rivals like Alphabet and Microsoft. But its association with the AWS ecosystem (the leading cloud service provider) could give it an economic moat. Because of its scale, more users are familiar with AWS, and enterprises may prefer to take a one-stop-shop approach to all their cloud computing needs. Image source: Getty Images. Amazon has also built its own AI-capable chips, Trainium and Inferentia, which could help lower costs and reduce Amazon's dependence on third-party providers for its hardware. With a forward P/E of 40, Amazon stock isn't cheap. But part of the premium valuation can be explained by management's ongoing cost-cutting efforts, which are improving the company's bottom line. Third-quarter net income rose 244% year over year to $9.88 billion. The power of an evolving business Throughout their histories, Nvidia and Amazon have gone through substantial evolutions in their business models. Nvidia made its name selling GPUs for personal computers before demand shifted toward cryptocurrency mining and data centers. Amazon started off as an online bookseller before transitioning to a generalized third-party marketplace that gets most of its profits from cloud computing. Artificial intelligence could end up becoming the next big growth opportunity for both companies, and it isn't too late for investors to bet on their transitions. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Different investors mark the beginning of a new bull market in slightly different ways. In my view, a new bull market begins when two criteria are met. First, an index must have rebounded at least 20% from recent bear market lows. Second, it must set a new all-time high. The S&P 500 has met the first threshold but hasn't quite achieved the second one. There's better news, though, for the widely followed Dow Jones Industrial Average. A new bull market is here for the Dow Jones. Here are the three best Dow stocks to buy for 2024, listed in alphabetical order. 1. American Express American Express (NYSE: AXP) was added to the Dow Jones in 1982, making it one of the index's five longest members. The company is a giant in the financial services industry, providing global credit-card payment-processing services. The Dow's performance has been helped quite a bit by American Express in 2023. Amex stock has soared more than 20% year to date, with the company's third-quarter update providing a nice catalyst. Amex reported its sixth consecutive quarter of record revenue in Q3. Its earnings per share jumped 34% year over year to a record high, as well. With the U.S. economy seemingly in a good position to continue chugging along, American Express should be able to keep its momentum going in 2024. Even after delivering solid gains this year, American Express shares trade at a forward price-to-earnings ratio of only around 14.5. That's a much more attractive valuation than fellow Dow Jones member and top credit-card rival Visa. I think the stock should have plenty of room to run in the new year. 2. Microsoft It's possible that the Dow Jones could enjoy a strong bull market without Microsoft (NASDAQ: MSFT) performing well. However, I think it's unlikely. Microsoft makes up more than 6.5% of the index, ranking behind only UnitedHealth Group and Goldman Sachs. Microsoft has been sizzling hot in 2023, with its shares skyrocketing more than 50%. The company has been a big beneficiary of the explosion of interest in generative AI, thanks to its partnership with and large stake in ChatGPT creator OpenAI. Some might worry that the party could soon be over for Microsoft. After all, its stock now trades at a forward earnings multiple of 33, which reflects a premium valuation. However, the generative AI boom should provide a major tailwind for the company for years to come. I also like that Microsoft is well-positioned in several other hot technology areas. The company is now even more of a force in the gaming market with its acquisition of Activision Blizzard. It's a top cloud services provider and cybersecurity leader. It's also one of a handful of companies at the forefront of quantum-computing research. 3. Verizon Communications Unlike American Express and Microsoft, Verizon Communications (NYSE: VZ) has held the Dow Jones back in 2023. Shares of the telecommunications company are down close to 5% this year. There's more to the story, though. Verizon stock had fallen more than 20% year to date, as of early October. But it began a big comeback later in the month, thanks to strong Q3 results. Verizon beat Wall Street earnings estimates. Its year-to-date free cash flow improved by $2.2 billion year over year, enough to prompt the company to raise its full-year free-cash-flow guidance. Things are looking up for Verizon. Value investors could find the stock especially attractive since its shares trade at only 8x expected earnings. Income investors have a lot to like about Verizon, too, with a dividend yield that currently stands at 7.1%. The company has increased its dividend for 17 consecutive years. With the company generating more free cash flow, I expect this streak of dividend hikes will continue in 2024. Should you invest $1,000 in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 18, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Microsoft. The Motley Fool has positions in and recommends Goldman Sachs Group, Microsoft, and Visa. The Motley Fool recommends UnitedHealth Group and Verizon Communications. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The benchmark S&P 500 index ripped higher in 2023 with a gain of 23.5% so far. But most of that return was driven by the "Magnificent Seven" stocks, which managed to obliterate the return of the broader market. The Magnificent Seven stocks now have a combined value of $12 trillion! As a result, they have a dominant weighting in the S&P 500, accounting for 28% of its total value. That means they have a significant impact on the direction of the entire market. When you look at the S&P 500 Equal Weight Index -- which levels the playing field by attributing an equal value to all 500 stocks in the S&P 500 regardless of their size -- it's up just 10% this year. With that in mind, investors looking to beat the market in 2024 will probably need some exposure to the Magnificent Seven stocks. Below, I'm going to highlight two Magnificent Seven stocks that could have the most potential in 2024. Image source: Tesla. 1. Tesla is forcing its competitors to retreat Tesla (NASDAQ: TSLA) is the undisputed leader in global electric vehicle sales. The company is on track to produce 1.8 million cars this year, and CEO Elon Musk believes that number could reach 20 million by 2030. However, Tesla is having an uncharacteristically slow year in terms of financial growth, because it has engaged in a price war with start-ups and legacy automakers breaking into the EV space. Tesla has economies of scale, which means it makes a profit on every vehicle it sells, so it had enough room to slash prices by 20% (on average) since August 2022 to pressure the competition. It appears to be working. Ford -- which loses roughly $36,000 on every EV that rolls off its production line -- recently decided to postpone $12 billion worth of investments into its EV business. Similarly, General Motors scaled back its EV plans and abandoned its target to produce 400,000 units by mid-2024. Those automakers are realizing it will require a significant amount of time and resources to reach Tesla's level to be able to compete on price. Meanwhile, they are under pressure from shareholders to avoid diluting the profits generated by sales of their gas-powered cars. But Tesla's price cuts are having consequences on its own business. The company is on track to generate $97 billion in revenue this year, representing a 19% year-over-year increase -- that's less than half the growth rate it delivered in 2022. Plus, its earnings per share will have shrunk once 2023 is officially in the books, according to Wall Street's consensus forecast. While neither of those developments is positive, they might be a necessary short-term sacrifice to secure more market share for the long term, which will ultimately benefit Tesla's investors. Plus, inflation and interest rates are gradually declining, which will reduce financial pressures on consumers in the new year, and that could open the door for Tesla to reverse some of its recent price cuts. Tesla stock isn't cheap; it trades at a price-to-earnings (P/E) ratio of 80, which is almost triple the 29.6 P/E of the Nasdaq-100 technology index. But a combination of favorable economic conditions and retreating competitors should set up a great year for the company. In fact, Wall Street predicts Tesla's earnings will return to expansion territory in 2024, which makes its stock look a little cheaper on a forward basis. 2. Meta Platforms could deliver the most profitable year in its history Meta Platforms (NASDAQ: META) will enter 2024 on the back of its best year ever. Investors criticized its CEO, Mark Zuckerberg, for a lackluster operating performance in 2022, prompting him to launch a radical "year of efficiency" in 2023. The concept featured three key changes: Cost cuts: This involved over 21,000 job cuts, a flatter organizational structure, and a reduction in spending across the board. Shrinking the metaverse: Not literally -- but Zuckerberg committed to spending less money on virtual reality initiatives, which were burning cash and generating almost no revenue. In fact, Meta's Reality Labs segment lost a whopping $13.7 billion in 2022. Artificial intelligence (AI): Meta is focusing its time and resources on improving the user experience on Facebook and Instagram with AI. The AI part of the equation is the most exciting long-term opportunity. Meta's Reels feature -- which is designed to compete with ByteDance's TikTok -- has driven a 40% increase in the amount of time users spend on Instagram since launching in 2020. But AI-powered recommendations are a huge part of that; Meta's algorithm learns what users enjoy watching, and it feeds them more of that content to keep them engaged. Meta has now rolled out AI-based recommendations to nearly all of its content formats. This year alone, Zuckerberg says they have driven a 6% increase in time spent on Instagram, and a 7% increase for Facebook. Ultimately, the longer users spend on either of those platforms, the more opportunities Meta has to feed them ads to generate revenue. It's no coincidence that in the third quarter of 2023 (ended Sept. 30), Meta's revenue hit an all-time high of $34.1 billion. Plus, thanks to the company's cost cuts, its net income (profit) absolutely soared by 163% to $11.5 billion, another record. Meta is now on track to deliver $133.5 billion in revenue and $14.35 in earnings per share (EPS) for the 2023 full year. That places its stock at a P/E ratio of just 23.3, making it the cheapest of the Magnificent Seven stocks. But it gets better. Wall Street predicts Meta's earnings will grow to $17.39 EPS in 2024, placing its stock at a forward P/E ratio of 19.20. If the estimate holds up, Meta stock will have to surge 50% next year just to trade in line with the current P/E of the Nasdaq-100 index. On a valuation basis alone, this opportunity might be the key to many investors outperforming the broader stock market next year. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now… and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The stock of Rivian Automotive (NASDAQ: RIVN) has soared 30% in the past month, but shares are still off 87% from all-time highs. The fast-growing electric vehicle (EV) start-up has gone through a brutal drawdown since its initial public offering in late 2021, with investors concerned about a lack of profitability and a crowded EV sector. A look under the hood (financially speaking) shows that Rivian continues to scale its operations and is getting closer to breakeven. With shares down in the dumps, does that mean Rivian stock is set to make a comeback in 2024? Let's investigate. Scaling-up production, winning large commercial customers Rivian has attacked the EV sector from a different angle than leader Tesla. It is starting out by producing larger vehicles such as pick-up trucks, SUVs, and commercial vans. Its R1T premium pick-up has been a hit with wealthier customers across the United States, with the SUV called the R1S set to begin deliveries to customers sometime within the next few quarters. From the fourth quarter of 2021 to the third quarter of 2023 -- less than two years -- Rivian has grown its quarterly vehicle production from 1,000 to 16,300. In 2023, it expects to produce 54,000 EVs, which would already make it one of the largest EV makers in the United States. It still has a long way to go to catch Tesla, which is producing over 1 million EVs every year. One benefit for Rivian compared to other EV start-ups is its commercial business. It has a huge contract with Amazon for 100,000 delivery vans. Other companies want to get in on the action, with AT&T recently announcing a deal with Rivian. All together, it looks like Rivian has multiple years of runway ahead to grow its EV operations. Does it have enough cash to survive? The looming problem with Rivian is that it is still too sub-scale to generate positive cash flow. Building out an automotive manufacturing business is extremely capital intensive and requires massive scale in order to make the unit economics work. For reference, Rivian is still generating negative gross margins, although they have been moving rapidly in the right direction for the last few quarters. Over the last 12 months, Rivian has burned $6.2 billion in free cash flow. The company ended the third quarter with just over $9 billion in cash and equivalents on its balance sheet. It's not hard to run the math on this one: The company has about a year and a half at its current burn rate before its coffers are empty. This paints a bleak picture for the business. However, when scaling up car manufacturing, it always looks dark before the operating leverage starts to kick in. Once Tesla scaled its business to much greater heights in the 2018-2020 period, it went from burning close to $5 billion in free cash flow to positive cash generation in one to two years. If Rivian can keep scaling its operations and start delivering hundreds of thousands of vehicles to its individual and commercial customers, the company will likely survive through this dark period. RIVN free cash flow data by YCharts. Avoid all EV stocks, not just Rivian Even if Rivian has some light at the end of the tunnel, the EV sector looks like a poor place for investors to put their money. It is capital-intensive, has a ton of competitors, and is a classic candidate for following capital cycle theory, which has a whole book dedicated to it. The idea can be summed up as profits (and therefore investor returns) getting depressed when a flood of competition and dollars flow into a sector ahead of customer demand. This sounds like the EV sector in 2023. Despite the hype around the electrification of the automotive sector, the industry has put up poor investing performance for decades. Finding the right sectors to invest in might be more important than finding individual companies to put your money toward. Investors would be wise to avoid the EV sector and buy some blue chip stocks with high returns on invested capital instead. Should you invest $1,000 in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brett Schafer has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Intel's (NASDAQ: INTC) fortunes on the stock market have turned around tremendously in 2023 as shares of the chipmaker have gained 74% this year, and the good part is that Chipzilla is likely to sustain its impressive momentum in the new year as well thanks to new artificial intelligence (AI) chips that could help it capture lucrative opportunities in two fast-growing markets. On Dec. 14, Intel unveiled new AI chips targeting the personal computer (PC) and data center markets. Investors liked what they saw as Intel stock jumped following the event. Let's see why the market gave Intel's AI chips the thumbs-up and check how they can help the stock sustain its rally in 2024 and beyond. Intel sees a huge opportunity in AI-powered PCs The personal computer (PC) market is expected to witness a big turnaround in 2024. Market research firm Canalys anticipates an 8% jump in PC sales next year, followed by double-digit growth in 2025, 2026, and 2027. For comparison, PC shipments are expected to drop 12.4% in 2023. Canalys points out that the adoption of PCs capable of running AI applications will be a driving force behind the market's growth. The firm estimates that 19% of PCs shipped in 2024 will be AI-capable, which explains why Intel is going aggressively after this market. Intel unveiled Core Ultra central processing units (CPUs) at its "AI Everywhere" event, stating that they will "power more than 230 of the world's first AI PCs from partners including Acer, ASUS, Dell, Dynabook, Gigabyte, [Alphabet's) Google Chromebook, HP, Lenovo, LG, Microsoft Surface, MSI, and Samsung." Intel also adds that it is partnering with over a hundred independent software vendors to optimize more than 300 AI-accelerated features for its Core Ultra processors. More importantly, the company points out that consumer PCs powered by its AI-capable CPUs are already on sale, and it will soon launch commercial devices as well. Intel believes that 80% of PCs sold in 2028 will be AI-capable. So, Intel is doing the right thing by moving into this market right now as sales of AI PCs are expected to gain momentum starting next year. It is worth noting that Intel's revenue from the client computing group was down 3% year over year in the third quarter of 2023 to $7.9 billion. That was a nice improvement over the 12% year-over-year decline in the segment's revenue in the second quarter, indicating that its largest business is now stabilizing. The advent of AI PCs should fuel the performance of this business and drive Intel toward growth from next year as the client computing group accounts for 56% of its top line. At the same time, investors should note that Intel has set its sights on another massive opportunity within the AI niche, which could supercharge the growth of its second-largest business. New server processors could unlock a new growth opportunity Along with AI-powered PC processors, Intel also launched its fifth-generation Xeon server processors, codenamed Emerald Rapids. The company points out that these processors have been designed for AI and can "address demanding end-to-end AI workloads before customers need to add discrete accelerators." As a result, Intel points out that its latest server processors can help reduce the operating costs of data centers significantly, as discrete graphics cards that are used for accelerating AI workloads are quite expensive. Intel claims that its latest-generation processors deliver an average performance gain of 21% and have a 36% higher average performance per watt over the previous-generation offerings, making them more powerful and power efficient at the same time. What's more, Intel says that the fifth-gen Xeon processors can deliver "up to 42% higher inference performance and less than 100-millisecond latency on large language models (LLMs) under 20 billion parameters." It won't be surprising to see Intel's new server chips gaining traction, as the company sees strong demand for small to medium-sized LLMs. OpenAI's ChatGPT, for instance, has 20 billion parameters and falls within the category of small to medium LLMs, while large models typically have more than 100 billion parameters. More specifically, Intel estimates that 60% of the opportunity within AI accelerator chips lies in the general computer space where CPUs will be deployed for training small to medium models. As such, Intel's new server processors can boost the revenue of its data center and AI business segment. This business generated $3.8 billion in revenue last quarter and was its second-largest segment with 27% of the top line. Investors can expect the stock to deliver healthy gains The above discussion suggests that Intel's two biggest businesses could regain their mojo in 2024. This explains why analysts are anticipating a nice acceleration in the company's growth from next year. INTC EPS Estimates for Current Fiscal Year data by YCharts. As the table above tells us, Intel's earnings are expected to increase to $2.70 per share in 2025. Multiplying that with the Nasdaq-100 index's average forward earnings multiple of 27 points toward a stock price of $73, which would be a 59% jump from current levels. However, Intel could deliver even better gains if the market rewards it with a higher earnings multiple thanks to its AI-powered growth, which is expected to significantly accelerate the company's bottom line over the next three years. Should you invest $1,000 in Intel right now? Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, HP, and Microsoft. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	In less than two weeks, Wall Street and investors will be welcoming in a new year. Although 2023 has been a banner year for equities, highlighted by the outperformance of the high-growth "Magnificent Seven," it's dividend stocks that should be on investors' radar as we prepare to open the curtain on 2024. Publicly traded companies that offer a regular dividend to their shareholders are almost always profitable on a recurring basis and time-tested. What's more, income stocks have left non-payers eating their dust. Between 1972 and 2012, companies initiating and growing their payouts generated an annualized return of 9.5%. That compares to a meager 1.6% annualized return for public companies that didn't offer a dividend between 1972 and 2012. However, not all dividend stocks are cut from the same cloth. As we get ready to move into the new year, five exceptionally safe high-yield dividend stocks (those with yields of at least 4%) stand out as top buys. Image source: Getty Images. Verizon Communications: 7.12% yield The first extremely safe high-yield dividend stock that's begging to be bought in 2024 is telecom company Verizon Communications (NYSE: VZ). Although Verizon's high-growth days are long gone, upgrading its network to handle 5G download speeds is providing a healthy and sustainable lift to its bottom line. The company's wireless division generates its juiciest margins from data -- and data consumption should continue to climb as consumers upgrade their wireless devices. Additionally, Verizon is beginning to see the payoff from its aggressive spending on mid-band spectrum. Having the ability to offer at-home 5G broadband has helped Verizon secure more than 400,000 net broadband additions in each of the past four quarters. Broadband might not be the growth driver it once was, but it's the perfect tool to encourage its customers to bundle their services. Bundling tends to lead to higher margins and better customer retention. Investors would also be wise to look past the mostly unwarranted concerns regarding lead-clad cables that were raised in a July report by The Wall Street Journal. Verizon has noted that lead-sheathed cables account for a small percentage of its current network. Further, any future liability would be established by the U.S. courts, which could take many years to work its way through. Valued at roughly 8 times forward-year earnings, there appears to be a solid floor and reasonable upside for Verizon stock. Realty Income: 5.37% yield A second super safe high-yield dividend stock that's ripe for the picking as we get ready to turn the page to 2024 is retail real estate investment trust (REIT) Realty Income (NYSE: O). Realty Income pays its dividend monthly and has increased its payout in each of the past 104 quarters. While the prospect of a recession in 2024 has some investors concerned, Realty Income's more than 13,000-unit commercial real estate (CRE) portfolio is built to thrive in virtually any economic climate. Over 90% of Realty Income's total rent is resilient to economic downturns. More specifically, over a third of the company's annualized contractual rent originates from grocery stores, convenience stores, dollar stores, and drugstores. These are businesses that provide basic-need goods and services and will therefore draw in customers, no matter how well or poorly the U.S. economy performs. We've also begun to see Realty Income diversify its CRE portfolio. The company has made two gaming industry transactions in less than two years, and is in the process of acquiring Spirit Realty Capital in a deal valued at $9.3 billion. The latter is a complementary deal that'll help Realty Income diversify into new industries and become even more resilient to economic downturns. Realty Income is valued at 13 times consensus cash flow for 2024, which represents its lowest multiple to cash flow in more than a decade. Image source: Getty Images. Pfizer: 6.31% yield The third safe high-yield dividend stock that makes for a genius buy in 2024 is pharmaceutical company Pfizer (NYSE: PFE). Except for a very short period during the Great Recession, Pfizer's existing yield of 6.3% has never been higher. The knock against Pfizer is that its massive bump in sales from COVID-19 vaccines has largely been backed out of its revenue and profit forecasts moving forward. Now that the worst of the pandemic is in the rearview mirror, attention has turned to Pfizer's other drugs and its expansive pipeline. With Pfizer's 2024 guidance failing to impress, shares fell to a 10-year low. Though Pfizer anticipates a $0.40-per-share hit to its earnings in the new year due to its now-completed $43 billion acquisition of cancer drug developer Seagen, it's important to recognize that this isn't a recurring loss or expense for the company. The combination of these two businesses will eventually result in recurring cost savings, as well as add billions of dollars in annual revenue for Pfizer. Equally important is the fact that Pfizer's non-COVID therapeutics are still growing. Sales for non-COVID products jumped 10% during the third quarter, with Pfizer's Special Care segment leading the way. If the company's COVID-19 sales bump hadn't occurred, it's unlikely we'd see such an overreaction to sales and profits returning to their normal (i.e., modest) upward trajectory. At less than 3 times forecast sales in 2023 and 2024, Pfizer looks to be quite the bargain for patient income seekers. PennantPark Floating Rate Capital: 10.54% yield Safe high-yield dividend stocks can be found in the small-cap arena, too! Business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT), which also pays its dividend on a monthly basis, is a rock-solid income stock to buy for 2024. BDCs are businesses that invest in the debt and/or equity of middle-market companies. By "middle market," I mean generally unproven micro-cap and small-cap businesses. In PennantPark's case, a sizable percentage of its portfolio is tied up in debt securities. The clear advantage of this debt-focused approach can be seen in the yield PennantPark generates. Since most small businesses are unproven, their access to traditional debt and credit markets may be limited or closed off entirely. As a result, financing deals are often secured at lending rates that are well above average. As of Sept. 30, PennantPark's weighted average yield on debt investments was a cool 12.6%! The key to PennantPark's success -- in case the company's full name didn't already give it away -- is that 100% of its $906.3 million debt-securities portfolio sports variable rates. The Federal Reserve just undertook its most aggressive rate-hiking cycle in four decades. These cumulative rate hikes since March 2022 have increased PennantPark's weighted average yield on debt investments by 520 basis points. Furthermore, PennantPark's management team has done a truly phenomenal job of protecting the company's invested assets. The average investment size spanning 131 companies is just $8.1 million, and 99.99% of the company's debt securities are first-lien secured. First-lien secured debt holders are at the front of the line for repayment in the event that a borrower seeks bankruptcy protection. Altria Group: 9.39% yield The last of the safest high-yield dividend stocks to buy for 2024 is none other than tobacco juggernaut Altria Group (NYSE: MO). Altria has raised its payout 58 times over the past 54 years, which makes it a true Dividend King. The clear problem for Altria and its peers is that consumers have wised up about the potential dangers of long-term tobacco use. Since the mid-1960s, adult cigarette smoking rates in the U.S. have fallen from around 42% to just 11.5%, as of 2021. A shrinking pool of potential customers has led to modest declines in aggregate cigarette shipments for Altria. However, Altria Group has exceptional pricing power in its corner. Tobacco products contain nicotine, an addictive chemical. The strong desire to continue using tobacco products has allowed Altria to pass along price hikes that often outweigh any decline in cigarette shipments. It also doesn't hurt that premium brand Marlboro accounts for more than 42% of retail cigarette share, which makes raising prices relatively easy. Altria Group is also looking beyond its traditional tobacco lines and shifting its sales toward smokeless products. For instance, it completed the acquisition of electronic-vapor company NJOY Holdings for $2.75 billion in early June. NJOY has received a half-dozen marketing granted orders (MGOs) from the U.S. Food and Drug Administration for its products and devices. These MGOs grant NJOY the right to keep its items on retail shelves. The vast majority of e-vapor companies lack MGOs. Similar to Verizon, Altria Group's forward-year price-to-earnings ratio of 8 provides a safe floor, with plenty of upside for long-term, income-seeking investors. Should you invest $1,000 in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Sean Williams has positions in PennantPark Floating Rate Capital. The Motley Fool has positions in and recommends Pfizer and Realty Income. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	With less than two weeks to go before crossing the finishing line for 2023, it's safe to say it's been a phenomenally strong year for the stock market. The iconic Dow Jones Industrial Average recently hit an all-time closing high, while the benchmark S&P 500 and growth-driven Nasdaq Composite are respectively higher by 23% and 42% on a year-to-date basis, as of Dec. 15. Yet in spite of these already huge gains, some of Wall Street's smartest and most-successful money managers are positioning their funds to benefit from a continued surge in growth stocks in the new year. Based on the latest round of Form 13F filings with the Securities and Exchange Commission, billionaire money managers absolutely want to own the following three growth stocks in 2024. Image source: Getty Images. Palantir Technologies The first high-powered growth stock that billionaire investors have flocked to is data-mining company Palantir Technologies (NYSE: PLTR). The third quarter saw six billionaire asset managers add to their funds' existing positions or open a new position, including (total shares purchased in parenthesis): David Siegel and John Overdeck of Two Sigma Investments (4,655,969 shares) Jim Simons of Renaissance Technologies (3,805,496 shares) Philippe Laffont of Coatue Management (893,931 shares) Israel Englander of Millennium Management (604,716 shares) Jaff Yass of Susquehanna International (509,063 shares) The lure of Palantir Technologies likely boils down to four factors. To start with, Palantir has turned the corner to recurring profitability on the basis of generally accepted accounting principles (GAAP). Mindful cost-cutting, coupled with a steady double-digit growth rate, have pushed Palantir into the recurring profit column faster than Wall Street had expected. Although the company's price-to-earnings (P/E) ratio is still at nosebleed levels, the simple fact that it's profitable on a GAAP basis somewhat changes the dynamic of the valuation discussion. Secondly, there's a lot of excitement surrounding artificial intelligence (AI), and Palantir gives investors the ability to have a front-row seat to this next-big-thing investment. Palantir's Gotham platform is driven by AI and machine learning to assist federal agencies with mission planning, data culling, and a host of other tasks. The analysts at PwC have estimated that AI could boost global gross domestic product by close to $16 trillion come 2030. Another factor at play is the early innings growth potential of Palantir's Foundry platform. Foundry offers solutions to businesses that'll help them make sense of big data, with the purpose of streamlining their operations. Foundry's commercial customer count grew by a hearty 34% in the September-ended quarter from the prior-year period. Lastly, there are no large-scale substitutes for Palantir. Though its stock may be pricey, no other company services federal agencies and wide-ranging businesses with AI-driven, dynamic solutions quite like Palantir. This gives it an incredibly sturdy moat. Meta Platforms Third-quarter 13F filings also make it abundantly clear that billionaire money managers absolutely want to own shares of social media stock Meta Platforms (NASDAQ: META) in the new year. A grand total of 10 billionaires opened a position in, or added to their existing position in, Meta Platforms in the September-ended quarter, including (total shares purchased in parenthesis): Stephen Mandel of Lone Pine Capital (2,779,103 shares) Dan Loeb of Third Point (1,100,000 shares) David Siegel and John Overdeck of Two Sigma Investments (583,953 shares) Steven Cohen of Point72 Asset Management (525,573 shares) Philippe Laffont of Coatue Management (496,278 shares) Ole Andreas Halvorsen of Viking Global Investors (462,474 shares) David Tepper of Appaloosa Management (447,500 shares) Chase Coleman of Tiger Global Management (330,800 shares) Ken Fisher of Fisher Asset Management (158,862 shares) The likeliest reason these 10 billionaire investors have plowed their respective fund's money into Meta is its dominance in the social media space. Despite seemingly never-ending competition, Meta's social media "real estate" consistently sits at the top of the pecking order. Facebook, Instagram, WhatsApp, and Facebook Messenger are among the four most-downloaded apps globally. To build on this point, the sheer number of monthly active users (MAUs) Meta is able to draw in with its social media apps is jaw-dropping. The September-ended quarter featured 3.96 billion MAUs from its family of apps. That's more than half of the world's adult population visiting a Meta-owned asset at least once monthly. It's precisely the reason why Meta can typically command strong ad-pricing power. Billionaire money managers are probably also enamored with Meta's cash flow and its balance sheet. This is a company that closed out the September quarter with north of $61 billion in cash, cash equivalents, and marketable securities, as well as $51.7 billion in net cash from operations through the first nine months of 2023. Meta's pristine balance sheet affords risk-tasking that most other companies couldn't even dream about. For example, CEO Mark Zuckerberg is intent on aggressively innovating with regard to augmented and virtual reality. Despite steep losses from Meta's Reality Labs segment, the company remains quite profitable and is still easily growing its cash pile. There's an intriguing value proposition with Meta, as well. Even after more than tripling from its 2022 bear market low, it's trading a sizable discount to its cash flow multiple over the previous five years. Image source: Walt Disney. Walt Disney The third growth stock billionaire money managers absolutely want to own in 2024 is media giant Walt Disney (NYSE: DIS). Based on the latest round of 13Fs, four prominent billionaire investors piled into the famed "House of Mouse," including (total shares purchased in parenthesis): Nelson Peltz of Trian Fund Management (26,443,257 shares) Israel Englander of Millennium Management (2,963,518 shares) Ken Griffin of Citadel Advisors (568,101 shares) Ken Fisher of Fisher Asset Management (399,294 shares) Arguably the top catalyst for Walt Disney is the normalization of its operations worldwide. The COVID-19 pandemic clobbered both its theme-park operations and film entertainment segment. With China abandoning its stringent COVID-19 mitigation measures last December, and consumers steadily returning to theaters, there's a clear path for Disney to return to strong top- and bottom-line growth. Another reason billionaire investors are drawn to Walt Disney is the company's irreplaceability. While there are plenty of other theme-park operators and content creators, none has the characters or engagement factor that Disney brings to the table. It's one of the few companies that can easily transcend generational gaps and help grandparents and grandchildren find common ground through fun and imagination. This uniqueness means Disney has a virtually impenetrable moat in the entertainment arena. In addition to its sustained competitive advantages, Walt Disney is able to use pricing power to its advantage. The admission price to Disneyland has risen by more than 10,000% since the park opened its gates in 1955. That's about 10 times the aggregate U.S. inflation rate over the past 68 years. Disney's pricing power is going to come in especially handy with its burgeoning streaming segment. Increasing monthly prices across all tiers without losing too many of the company's loyal subscribers is the primary catalyst that can push the company's streaming services to profitability by the end of Disney's fiscal year (Sept. 28, 2024). A forward P/E ratio of less than 18 looks like a bargain for a brand-name company that's expected to grow its earnings per share by an annualized 15.6% over the next five years. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms, Palantir Technologies, and Walt Disney. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	If you're looking for a CEO you can rely on to grow the value of their business, it's hard to pick anyone more likely to succeed than Warren Buffett. The nonagenarian has been at the helm of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) since 1965, and its value has risen at a pace that few money managers have achieved even when measured with much shorter timeframes. At last glance, Berkshire Hathaway boasted a $786 billion market cap, and this figure peaked above $800 million a few times in 2023. Growing enough to cross the $1 trillion threshold in 2024 would require a better-than-average performance, but it is possible. At the moment, Berkshire's largest holding by a mile is Apple, which became the world's first $1 trillion company in 2018. Alphabet, Amazon, Microsoft, and Nvidia have all achieved market caps that exceed $1 trillion since then. Read on to see why there's a good chance that Berkshire Hathaway can join them in 2024. From cigar butt to the Trillion Dollar Club As a young man, Buffett liked to invest in discarded companies he likened to cigar butts on the pavement that could provide a few free puffs to anyone who made the effort. Berkshire Hathaway was a failing textile business and one of those cigar butts that he bought up in 1965 at an average price of $14.86 per share. The A-class shares, which have never split, have been trading for $553,820, which works out to a gain of 3,726,818% for anyone who's held them the whole time. It was Charlie Munger, Buffett's recently deceased partner, who convinced Buffett to ignore cigar butts and instead invest in the best businesses he could find. Munger argued that truly exceptional businesses would outperform over time. All Berkshire had to do was wait for opportune moments to acquire them at reasonable valuations. Berkshire's investing prowess hit a higher gear in 1995 when it acquired the Government Employees Insurance Company, which today is better known as GEICO. Insurance businesses generally collect more in monthly premiums than they pay out in claims. Berkshire uses this excess sum, called a float, to invest in businesses it controls, such as Dairy Queen, Duracell, and the Acme Brick Company. Berkshire also uses its float to acquire shares of businesses it doesn't control. At the moment, Apple is its largest equity holding, at a value of about $181 billion. One thing investors don't have to worry about with Berkshire Hathaway is a liquidity crunch. The equity portfolio is sitting on $157 billion in cash. Image source: Getty Images. Looking to 2024 and beyond Berkshire's stock price has risen at an average annual rate of 19.9% since 1965. To cross the $1 trillion threshold, its market cap needs to rise about 27.2%, which could happen next year. It's a long way from guaranteed, but 2024 is already shaping up to be a better-than-average year for the U.S. stock market. Fear of a recession brought about by interest rates that rose rapidly in 2022 and early 2023 has been replaced by optimism. Citing signs of waning inflation, the Federal Reserve recently left interest rates unchanged for its third meeting in a row. It also signaled three potential rate cuts in 2024. The value of any asset is equal to the sum of all its future cash flows discounted to the present, and Berkshire owns a lot of income-generating assets. If the Federal Reserve reduces rates faster than expected next year, the perceived value of Berkshire's future cash flows and its stock price could shoot higher and push its market cap over the $1 trillion mark. A buy now You can scoop up Berkshire Hathaway's B-class shares, which have split many times, for around $360 at recent prices. That works out to just 20.3 times forward-looking earnings estimates. That's a very reasonable price to pay for a company that grew earnings per share by 344% over the past decade. There are no guarantees that Berkshire's next decade will be as successful as its past, but its biggest obstacle is its size. Investments that would have moved the needle way forward a decade ago barely register these days. Overcoming its girth will be a challenge, but we could have said this when it was a $500 billion company, too. Buying the stock now to hold for the long run looks like a smart move. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 18, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Cory Renauer has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Fool.com contributor Parkev Tatevosian highlights Lucid's (NASDAQ: LCID) progress in 2023 while looking ahead to 2024. Parkev answers if he thinks Lucid stock is a buy for next year and beyond. Stock prices used were the afternoon prices of Dec. 16, 2023. The video was published on Dec. 18, 2023. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Fanny Potkin and Yantoultra Ngui SINGAPORE, Dec 18 (Reuters) - A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, keen to hedge risks in case the U.S. expands sanctions on China's chip industry, sources said. The companies are asking Malaysian chip packaging firms to assemble a type of chip known as graphics processing units (GPUs), according to three people with knowledge of the discussions. The requests only encompass assembly - which does not contravene any U.S. restrictions - and not fabrication of the chip wafers, they said. Some contracts have already been agreed, two of the people added. The people declined to disclose the names of the companies involved or to be identified, citing confidentiality agreements. Seeking to limit China's access to high-end GPUs that could fuel artificial intelligence breakthroughs or power supercomputers and military applications, Washington has increasingly placed restrictions on their sales as well as on sophisticated chip-making equipment. As those sanctions bite and an AI boom fuels demand, smaller Chinese semiconductor design firms are struggling to secure sufficient advanced packaging services at home, analysts have said. Some of the Chinese companies are interested in advanced chip packaging services, two people said. Advanced packaging of chips can significantly improve chip performance and is emerging as a critical technology in the semiconductor industry. This sometimes involves the construction of chiplets where chips are packaged tightly to work together as one powerful brain. Although not subject to U.S. export restrictions, it's an area that can require sophisticated technology which the firms worry might one day be targeted for curbs on exports to China, the two people added. Malaysia, a major hub in the semiconductor supply chain, is seen as well placed to grab further business as Chinese chip firms diversify outside of China for assembling needs. Unisem UNSM.KL, majority owned by China's Huatian Technology 002185.SZ, and other Malaysian chip packaging companies have seen increased business and inquiries from Chinese clients, said one source who was briefed on the matter. Unisem Chairman John Chia declined to comment on the company's clients but said: "Due to trade sanctions and supply chain issues, many Chinese chip design houses have come to Malaysia to establish additional sources of supply outside of China to support their business in and out of China." Chinese chip design firms also see Malaysia as a good option because the country is perceived as being on good terms with China, is affordable, with an experienced workforce and sophisticated equipment, two of the sources said. Asked whether accepting orders to assemble GPUs from Chinese firms could potentially provoke U.S. ire, Chia said Unisem's business dealings were "fully legitimate and compliant" and the company did not have the time to worry over "too many possibilities". He noted that most of Unisem's customers in Malaysia were from the United States. Other big chip packaging firms in the country include Malaysian Pacific Industries MPIM.KL and Inari Amertron INAR.KL. They did not respond to Reuters requests for comment. Chinese companies are also interested in having their chips assembled outside China as that could also make it easier to sell their products in non-Chinese markets, said one source, an investor in two Chinese chip startups. A MAJOR HUB Malaysia currently accounts for 13% of theglobal marketfor semiconductor packaging, assembly, and testing and is aiming to boost that to 15% by 2030. Chinese chip firms that have announced plans to expand in Malaysia include Xfusion, a former Huawei HWT.UL unit, which said in September it would partner with Malaysia's NationGate NATI.KL to manufacture GPU servers - servers designed for data centres and which are used in AI and high-performance computing. Shanghai-based StarFive is also building a design centre in Penang, and chip packaging and testing firm TongFu Microelectronics 002156.SZ said last year it would expand its Malaysia facility - a venture with U.S. chipmaker AMD AMD.O. Offering an array of incentives, Malaysia has attracted multi-billion dollar chip investments. Germany's Infineon IFXGn.DE said in August it would invest 5 billion euros ($5.4 billion) to expand its power chip plant there. U.S. chipmaker Intel INTC.O announced in 2021 that it would build a $7 billion advanced chip packaging plant in Malaysia. Chinese companies are not just choosing Malaysia. In 2021, JCET Group, the world’s third-largest chip assembly and testing company, completed an acquisition of an advanced testing facility in Singapore. Other countries such as Vietnam and India are also seeking to expand further into chip manufacturing services, hoping to lure clients keen to minimise U.S.-Sino geopolitical risks. ($1 = 0.9272 euros) (Reporting by Fanny Potkin and Yantoultra Ngui in Singapore; Additional reporting by Eduardo Baptista and Yelin Mo in Beijing and Alexandra Alper in Washington; Editing by Miyoung Kim and Edwina Gibbs) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	EOG Resources, Inc. EOG has witnessed upward earnings estimate revisions for 2023 and 2024 over the past 60 days. Factors Working in Favor The price of West Texas Intermediate crude is at more than the $70 per barrel mark again, which is highly favorable for upstream operations. EOG Resources, currently carrying a Zacks Rank #2 (Buy), is well-placed to capitalize on the promising business scenario. It has significant undrilled premium locations, resulting in a brightened production outlook. EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned significant cash to its stockholders. Notably, from 1999 through 2024, the company has committed to raising its regular dividend at a compound annual growth rate of 21%. It has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line. Other Stocks to Consider Other prospective energy companies include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession. Over the past 30 days, the stock has witnessed upward earnings estimate revisions for this year. Weatherfordis a key energy player and is engaged in offering exclusive drilling technologies that will maximize clients’ reservoir exposure. Weatherford is also involved in well construction and completion activities in an efficient manner. Transportadora’s midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. It generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Investors who want to set themselves up with a huge stream of passive income from dividend-paying stocks have two basic options. You could aim for stocks that offer high yields up front or look for smaller yields from companies that can grow their payouts. The first option rarely works out over time, because dividend-paying stocks rarely offer high yields until investors are worried about the underlying business and its ability to sustain its commitment. Image source: Getty Images. The stocks on this list don't offer the highest yields, but they are far above average. Plus, they have long histories of consecutive annual dividend increases. With strong advantages to keep the competition from eating into their profit margins, these stocks could keep paying and raising their dividend payouts for as long as you care to hold them. Altria Group Cigarette sales have been declining for decades, but the value of Altria Group's (NYSE: MO) Marlboro brand in the U.S. keeps rising. Strict regulations that make it impossible to build new brands make it easy for tobacco giants to raise prices that offset declining volumes. By Altria's estimates, cigarette volumes in the U.S. declined by 8% during the first nine months of 2023. With price increases and rising sales of non-combustible products, though, total revenue fell just 1.4% year over year. By lowering its outstanding share count through buybacks, adjusted earnings per share were able to rise by 3.3% over the same time frame. Altria isn't relying entirely on the Marlboro brand's pricing power for growth. Earlier this year, the company grew its smoke-free portfolio with the acquisition of NJOY, which markets the only pod-based e-vapor product with marketing authorization from the U.S. Food and Drug Administration. At recent prices, Altria offers a 9.4% dividend yield that is rising steadily. This summer, the company raised its dividend payout for the 58th time in 54 years. The 4.3% raise wasn't enormous, but it's more than enough to outpace inflation over the long run. Realty Income Realty Income (NYSE: O) is a leading real estate investment trust (REIT) that owns over 13,000 buildings in the U.S. and abroad. At recent prices, it offers a 5.4% yield, and investors can be fairly confident about their payouts rising in the quarters to come. In December it raised its monthly payout for the 123rd time since its initial public offering in 1994. With a long track record of success, Realty Income boasts an A3 credit rating from Moody's that keeps borrowing costs much lower than its smaller peers. This REIT leases properties to hundreds of retail clients but leans toward dollar stores, pharmacies, and other businesses that resist e-commerce competition. Its largest tenants also tend to perform well during economic downturns. With an already enormous portfolio and relatively low borrowing costs, Realty Income could consolidate a large addressable market. In the U.S., where opportunities to consolidate are lowest, there are a dozen publicly traded net lease REITs that account for less than 5% of the addressable market. Conditions are even more advantageous in Europe, where just two publicly traded net lease REITs account for less than 1% of the addressable market. Coca-Cola With 61 years of consecutive annual dividend raises under its belt, The Coca-Cola Company (NYSE: KO) is arguably the most reliable dividend payer on this list. At recent prices, the stock offers a 3.1% dividend yield. The popularity of sugary sodas might be on the decline in your neighborhood, but worldwide it's still on the rise. Trademark Coca-Cola case volume grew 2% year over year in the third quarter. Like Altria, Coca-Cola leverages the strength of its brands to support price increases its less popular peers can only dream of. This is how the company was able to grow total third-quarter revenue by 8% year over year, or about four times the pace of overall case volume growth. Pricing power and economies of scale make Coca-Cola's business a very profitable one. The company recorded $10.2 billion in free cash flow over the past 12 months but needed just 77% of this sum to meet its dividend obligation. At this level, the company should have no trouble raising its dividend payout in line with the growth rate of its overall business. Should you invest $1,000 in Altria Group right now? Before you buy stock in Altria Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Altria Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's and Realty Income. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	If you're an Amazon (NASDAQ: AMZN) investor, you're likely feeling cheery this holiday season. Share prices of the tech giant have soared 76% through mid-December, easily beating the 23% rally in the S&P 500 this year. It might seem outlandish to think Amazon stock will have another strong year after outperforming at that fantastic level in 2023, but don't discount that real possibility. There are at least three good reasons to believe you haven't missed the market-beating gains from Amazon stock just yet. 1. Services matter for Amazon's margins Many tech companies, including Apple, are shifting away from a focus on selling products and moving toward marketing services. Services have higher profit margins, after all. Compare Microsoft's 42%-plus operating margin to Apple's 30% figure for some illustration of that difference. And services provide more stable income because they tend to be subscription-based. Amazon is moving quickly in Microsoft's direction. Its services unit -- anchored by Amazon Web Services (AWS) and things like its merchant advertising business and Prime subscription sales -- now accounts for nearly 60% of total revenue. It is expanding at a much faster pace than e-commerce sales, too, suggesting that it will be an even bigger part of the company over time. As a result, Wall Street is starting to look at -- and value -- the stock as less of an e-commerce retailer and more of a tech services giant. 2. Amazon has a new focus on finances Since its inception, Amazon has famously prioritized growth over short-term net earnings, to the consternation of many investors. That broader approach hasn't changed, but management is now more focused on finding balance. There's no reason why this massive business can't deliver strong earnings even while investing aggressively in areas like artificial intelligence (AI) and its global delivery network. You can see proof of that shift in areas like free cash flow, which was $21 billion over the past full year compared to a $20 billion outflow in the prior-year period. Operating income was $24 billion in the first nine months of 2023, up sharply from about $10 billion a year earlier. Expectations for further gains in these metrics are key reasons why Amazon stock has done so well lately. Management predicted in late October that Q4 operating earnings will land between $7 billion and $11 billion, up from $3 billion last year. 3. Amazon is seeing valuation wins The best news is that there's room for Amazon's stock valuation to continue rising in 2024. Shares are priced at less than 3 times annual sales even factoring in the 2023 rally. That compares well against other tech giants like Apple (8 times sales) and Microsoft (12 times sales). Sure, Amazon isn't nearly as profitable as these companies. Its 5% operating margin is closer to what you might see from a retailer like Walmart than what tech investors are accustomed to. Yet that rate is improving right now and has a good chance of expanding toward double-digit percentages in 2024. Amazon's surging cash flow trend is a clear signal that earnings will be rising in the next few years. Investors are likely to see solid returns if they own the stock and simply go along for that ride. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Demitri Kalogeropoulos has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Walmart. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Everyone wants life-changing investments. Of course, they're not easy to find. Legendary investor Peter Lynch once compared investing to turning over rocks, believing the person who turned over the most won. Lynch's analogy was just another way of emphasizing the importance of diversifying your portfolio. Another investing tip Lynch emphasized was that winning stocks generally have things in common. A massive runway for many years of growth is one such commonality. Data platform Snowflake (NYSE: SNOW) scores well in that regard. The company is a behind-the-scenes cog of an artificial intelligence (AI) revolution that could create dramatic wealth for people over the coming years. Let me explain. Snowflake's role in artificial intelligence Most AI models need two primary ingredients: computing power and data to analyze. Snowflake is a cloud-based platform offering data storage and analytics. Data is vital in developing a robust AI model, but most companies don't know how to organize, secure, or analyze the mounds of data they gather from their operations. It's often gathered in multiple formats and/or stored on multiple systems that don't always sync well. Snowflake solves these problems. Companies can dump their various data into Snowflake's servers, where it's organized and stored by the platform. Users can then run queries to find what they want from their data. Additionally, Snowflake has built a marketplace where customers can share and purchase third-party data. For AI, that means building more extensive and more usable data sets. Better data means better-trained AI models. Snowflake recently began integrating generative AI into its platform. It acquired three companies to help flesh out its AI features: Neeva, an advanced search engine for querying data. Streamlit, a developer platform for building and testing AI apps. Applica, which uses machine learning to sort data. Snowflake wants to use AI to help its customers maximize the value of their data by guiding them to the right data and insights, instead of leaving customers to take shots in the dark. Snowflake has a business model built for long-term growth That's all good, but investors want to see how Snowflake's technology translates to investment returns. Fortunately, Snowflake's business model is built with long-term growth in mind. For example, Snowflake charges on a usage basis. It separates storage and computing resources and charges for what's used, letting customers scale up and down as needed. But this works in Snowflake's favor over time because data is exponentially growing. Did you know the world created, copied, and consumed two zettabytes by 2010? That's grown 60-fold as of 2023, hitting 120 zettabytes. That will grow to roughly 181 by 2025, just two years later. How much data will the world use by 2030? 2040? 2050? The usage-based billing means that while growth will fluctuate at times, it will almost assuredly head higher over time. That is reflected in Snowflake's fantastic 135% net revenue retention (NRR) rate, which means Snowflake customers spend increasing amounts on the platform. Additionally, the company's customer count grew 23% year over year in the fiscal third quarter of 2024, ended Oct. 31, 2023, to 8,907. Nine thousand businesses is nothing. Will every company need Snowflake's services? Probably not, but considering there are 333 million companies worldwide, that's likely years of customer growth without running out of real estate. Putting numbers to it Snowflake has only been public for three years, but a lot has happened in that time. The economic climate has changed significantly. You can see below that the Federal Open Market Committee's aggressive rate hikes to slow inflation coincided with dramatically slowing revenue growth for Snowflake. Customers are more cautious about spending. Management has pointed this out in earnings calls. Declining market sentiment and slowing growth have acted as gravity, pulling Snowflake's valuation back to earth. Its price-to-sales ratio was once over 175, an irresponsible valuation for anyone to pay, down to roughly 25 times revenue. That's still not cheap, but it's at least realistic. SNOW PS Ratio data by YCharts Will growth speed back up? One could argue that it will as rates eventually ease and companies spend more. But even if revenue never grows at triple digits again, the long-term direction is still up because of the discussions above. Analysts believe Snowflake's revenue will grow from under $3 billion to over $17 billion over the next eight years. Even if you cut Snowflake's P/S ratio in half again, to 12, that's a market cap of $204 billion based on 2031 revenue estimates. Snowflake is worth $65 billion today, so that's an over threefold return in just over seven years. A trillion-dollar market cap isn't impossible if AI and big data become a multidecade growth story. A highflier like Snowflake in a diversified portfolio? Yep, that growth will help any long-term investor become a millionaire. Should you invest $1,000 in Snowflake right now? Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Snowflake. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	With its shares more than doubling in 2023, Advanced Micro Devices (NASDAQ: AMD) has been a rewarding near-term investment. While the company's operational results are yet to match its impressive stock price performance, that could soon change. Let's discuss what the next five years could have in store for this legendary tech company as it pivots to new growth opportunities in artificial intelligence (AI). What is Advanced Micro Devices? Since its founding in 1969, Advanced Micro Devices has specialized in creating computer hardware such as memory chips and central processing units (CPUs). After the 2006 acquisition of ATI Technologies, the company became a direct rival of Nvidia in the market for graphics processing units (GPUs), a type of technology with uses ranging from video game rendering to training advanced generative AI models. While Nvidia is widely considered to have the leading edge in the GPU market, AMD traditionally competes based on price and value for money. This strategy has served the company well in the personal computer graphics industry. And AMD could employ a similar strategy to gain market share in AI chips -- a market where Nvidia currently controls 80% of sales volume. Management has high hopes for the future The AI chip market is ripe for competition. According to CNN, demand is outstripping supply for the most advanced AI chips, leading to bottlenecks and spiraling costs as more companies race to build and train generative AI models. With a third-quarter gross margin of 74% (up 20.4 points from the prior-year period), Nvidia is taking full advantage of its dominant position to keep prices high. Image source: Getty Images. AMD plans to disrupt Nvidia's near-monopoly with its MI300x family of data center chips designed to match or exceed the Nvidia h100 in training and running AI platforms. These new products had a limited impact on AMD's third-quarter revenue, which only grew 4% year over year to $5.8 billion. But investors should expect data center chip sales to ramp up in 2024 as the company begins to deliver the products to clients like Microsoft and Meta Platforms, which have already committed to buying them. AMD's CEO Lisa Su expects the size of the AI chip industry to grow almost tenfold to more than $400 billion over the next four years. And this means the company could enjoy plenty of long-term growth, even if the opportunity lives up to just a fraction of those lofty projections. AMD will have to grow into its valuation To be fair, AMD's valuation looks high compared to its current performance. With a price-to-sales multiple of 10.22, its shares are significantly pricier than the S&P 500 average of 2.6. And this is a big premium for a company that only grew by single digits in its most recent quarter. That said, investing is all about the future, not the past. And AMD could be on the cusp of spectacular growth over the next half-decade as it scales up its new AI chip business. The stock looks like a buy. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Fool.com contributor Parkev Tatevosian evaluates Verizon (NYSE: VZ) stock by looking at its financial metrics and ability to sustain its robust dividend yield in the long term. Stock prices used were the afternoon prices of Dec. 16, 2023. The video was published on Dec. 18, 2023. Should you invest $1,000 in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	2023 has been a fascinating year for investors. What started with hand-wringing and fear finished with the Dow Jones Industrial Average and S&P 500 indexes near record highs and the Nasdaq Composite not too far behind. There were at least two big reasons for the resurgence. First, a recession that was predicted by many failed to materialize, thanks in part to efforts by the Federal Reserve. Outsized inflation was brought under control and the economy remained relatively strong despite some challenges. Second, an artificial intelligence (AI) wave of enthusiasm rolled over Wall Street. That wave helped push AI-influenced stocks like Microsoft and Nvidia to new record highs as their businesses generated terrific results. The AI wave is expected to continue into 2024 and beyond, and investors are already looking elsewhere in the AI space for potential opportunities. Many companies are doing spectacular things with AI; here are two stocks to put on your radar in 2024. 1. UiPath offers real-world AI solutions Think about the last time you called a customer service line. Did you get transferred multiple times and have to repeat the same identity verification information numerous times? Or did a single person help you and seem to know most of your information already just from your phone number? The difference between those two experiences relates to the technology they are using. UiPath (NYSE: PATH) Robotic Process Automation (RPA) makes the latter possible, and its customers report soaring customer service ratings and a significant decline in call times. This is real value for the top and bottom lines. A UiPath customer can also automate a tedious, labor-intensive accounts payable process. Previously, the customer's staff would open hundreds of emails per day containing invoices, download the attachments, and input them into their accounting system. This is a costly process. Using UiPath AI technology, the customer can automate much of this process, freeing employees to complete higher-level tasks. On the financial front, UiPath reached $1.4 billion in annual recurring revenue (ARR) last quarter, with ARR growth of 24% year over year. Image source: UiPath UiPath has a strong balance sheet with $1.8 billion in cash and investments and no long-term debt. The company isn't profitable on a generally accepted accounting principles (GAAP) basis yet, which is common with growing companies, but it produces positive cash flow from operations. This is encouraging, as is UiPath's 85% gross margin. The stock trades at a price-to-sales (P/S) ratio of 12. Is this reasonable? It's tough to say at this point. The valuation is lower than other growing AI companies, such as Palantir Technologies, at 19 times sales, but the long-term prospects will ultimately come down to execution. If management executes and UiPath continues gaining new customers, the stock will probably do very well over the long haul. If growth stalls, investors will be disappointed. This is why it is wise to dedicate a modest part of a portfolio to small growth companies. Still, UiPath is an intriguing stock that investors should have on their radar, if not in their portfolio. 2. SoundHound AI is a stock to keep an eye on Another company offering practical solutions is SoundHound AI (NASDAQ: SOUN). SoundHound's niche is conversational intelligence. The company's software enables ordering systems to understand and accurately update customers' orders in real-time using speech recognition technology. White Castle has signed up to roll this out at 100 drive-up locations in 2024. SoundHound also offers speech-enabled software for automobiles. The user can speak conversationally and receive much more information than most vehicle systems offer today. This will be the standard for restaurants and vehicles in the not-so-distant future. However, SoundHound has significant competition from big tech and auto companies. The competition has very deep pockets, while SoundHound produced just $13.3 million in sales last quarter and has less than $100 million cash on hand. On the other hand, this was a 52% sequential increase in sales, as shown below, and SoundHound reported increased traction with several customers. SOUN Revenue (Quarterly) data by YCharts Investors should also know that the number of shares outstanding increased 23% year over year last quarter. SoundHound also trades at a P/S ratio near 12 but has a more challenging financial situation than UiPath. Still, there are several ways that investors can profit, including excellent execution that grows sales rapidly or the potential that a larger company loves the technology and makes an acquisition offer. In any event, this is another exciting stock and company AI investors should keep an eye on. Should you invest $1,000 in UiPath right now? Before you buy stock in UiPath, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and UiPath wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Bradley Guichard has positions in Nvidia and UiPath and has the following options: long January 2025 $2 calls on SoundHound AI and long September 2024 $630 calls on Nvidia. The Motley Fool has positions in and recommends Microsoft, Nvidia, Palantir Technologies, and UiPath. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Oil and gas giant Chevron (NYSE: CVX) is a well-known dividend stock and a staple in global energy. Despite operating in energy, where up-and-down commodity prices can impact business, Chevron has consistently put cash in its shareholders' pockets. Today Chevron faces more uncertainty. Oil prices have dropped, and the company's working through a massive acquisition that's facing potential geopolitical trouble. The result is a stock trading near its 52-week lows. Should investors lean into the fear and buy the stock? Here is what you need to know. Oil prices are falling Investors are probably looking for clarity around two dark clouds over Chevron. First, oil prices are falling. Oil has trended lower since early 2022, when inflation peaked. This is despite OPEC, the organization of petroleum-exporting countries, voluntarily cutting production to support market prices. There are also two wars happening simultaneously, one in the Middle East. Oil prices typically rise under these circumstances, but they're dropping. Why? The economy may not be as strong as some think. While consumer spending remains solid, setting a new sales record on Black Friday this year, manufacturing could be struggling. The ISM Manufacturing Index, which measures U.S. manufacturing activity, has contracted for 13 consecutive months and is now below levels from nine of the past 12 recessions. Brent Crude Oil Spot Price data by YCharts Investors should note that Chevron can fund its operations and dividend at an average oil price of $50 per barrel. However, price declines will naturally stunt earnings, which has eroded the market's sentiment toward Chevron stock. Drama in Guyana Chevron is navigating a massive acquisition against the backdrop of falling oil prices. It agreed to acquire Hess Corporation in an all-stock deal worth $53 billion this fall. A primary motive for the acquisition is the Stabroek block in Guyana, an offshore asset with an estimated 11 billion BBOE (billion barrels of oil equivalent) in gross recoverable resources. Hess is currently generating 110,000 BOE per day in Guyana from two FPSO vessels, with three more in development and a potential for ten. Management believes that could last into the 2030s, not counting additional future discoveries. Notably, the Stabroek block is very profitable. Last year production costs in Guyana were only $11.23 per barrel, less than half of production in U.S. assets. However, Venezuela is attempting to claim the Strabroek block as part of a long-standing territory dispute that heated back up after Guyana's significant oil discoveries in recent years. Tensions reached the point that the U.S. conducted military drills with Guyana in preparation for a potential escalation. Fortunately, the two countries met in the last few days and agreed to keep the peace. It's an important step, but investors should monitor the situation in case tensions flare up. Potential political instability is never good, especially at the center of a $53 billion acquisition. Any conflict could slow or diminish productivity in Guyana, or even jeopardize the merger. What to do with Chevron stock The stock is trading toward the high end of its historical price-to-book value ratio over the past decade, though it has fallen from its high. The company's generating free cash flow on nearly ten percent of its revenue, and its return on equity is near its highest levels in a decade. On one hand, you could argue that Chevron is earning its higher valuation. However, these fundamentals could deteriorate if oil prices continue falling. The good news is that Chevron is financially prepared for turbulence. The company's debt-to-equity ratio is the lowest since coming out of the financial crisis in 2008-2009. In other words, the balance sheet hasn't looked this strong in years. CVX Return on Equity data by YCharts Ultimately, nobody can predict what the markets will do, where oil will trade, or how geopolitical conflicts will be resolved. It seems that oil is trending lower, especially considering the prolonged weakness in manufacturing. Chevron's strong fundamentals instill long-term confidence, but the short-term share price could be volatile. Buying a little bit at a time would be the smart move. That way you'll continue building an investment, lowering your cost if shares continue to fall. Should you invest $1,000 in Chevron right now? Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends Chevron. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Adds more details on deal from paragraph 2 Dec 18 (Reuters) - Australian construction materials firm Adbri ABC.AX said on Monday it is in exclusive talks with CRH CRH.N and the Barro Group Pty Ltd for the two companies to buy shares that Barro does not already own, in a deal worth about A$2.1 billion ($1.41 billion). CRH, a building materials solutions provider, and Barro, a concrete supplier, have offered A$3.20 per share - a 41% premium to the company's last closing price on Dec. 15. The deal is subject to various court and regulatory approvals, including from Foreign Investment Review Board. Both CRH and the Barro Group did not immediately respond to Reuters' requests for comment. ($1 = 1.4937 Australian dollars) (Reporting by Archishma Iyer in Bengaluru; Editing by Sandra Maler and Deepa Babington) ((Archishma.Iyer@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The S&P 500 peaked in January 2022, with subsequent declines triggering a bear market. Analysts typically define a bear market as a 20% drop from recent highs, with a bull market not achieved again until stocks gain what they lost and surpass the previous high. Data by YCharts The chart above shows a bear market that is inching closer to a bull market as the S&P 500 nears its January 2022 high. As a result, now is an excellent time to get familiar with some of the best stocks to buy in a bull market and be ready to strike when the time is right. Here are two top stocks to buy during the next bull market. 1. Amazon Like the S&P 500, Amazon's (NASDAQ: AMZN) stock price has yet to surpass its previous high. The company hit $186 per share in July 2021 but remains about 20% below that. However, recent developments indicate shares could soar in the coming years as it becomes a crucial growth driver in the next bull market. Data by YCharts Macroeconomic headwinds curbed consumer spending in 2022, with Amazon experiencing steep declines in its e-commerce business. However, easing inflation and various cost-cutting measures have triggered a solid recovery for the retail giant this year. In the third quarter of 2023, Amazon posted revenue growth of 13% year over year, beating Wall Street forecasts by $1.5 billion. The spike was mainly owed to growth in its e-commerce division. The quarter saw Amazon's North American segment recorded more than $4 billion in operating income, improving on the $412 million in losses it posted in the year-ago period. A bull market is often a sign of a strengthening economy, which is positive for Amazon as it could mean increased sales on its retail site. In addition to e-commerce, the company's leading market share in cloud computing with Amazon Web Services (AWS) gives it solid prospects in the future of artificial intelligence (AI). The AI market is projected to expand at a compound annual rate of 37% through 2030. Meanwhile, Amazon is rapidly expanding its range of AI cloud tools on AWS in an effort to meet increased demand for such services. Amazon's price-to-sales ratio (P/S) of 2.8 makes its stock an attractive option. Comparatively, competitors like Apple and Microsoft have P/S ratios hovering around 8 and 12, with Amazon's lower figure suggesting its stock offers more value. Alongside a recovering e-commerce business and a solid position in AI, Amazon is a no-brainer in a bull market. 2. Walt Disney Walt Disney (NYSE: DIS) hasn't had it easy recently, with COVID-19 pandemic closures shuttering large parts of its business in 2020 and 2021. Then, an economic downturn last year made it challenging to expand in the streaming industry. As a result, its stock has fallen 57% since the high it hit in March 2021. However, the company has restructured its business to prioritize profitability and could benefit significantly from a bull market. Streaming has proved a major headwind over the last two years, resulting in considerable operating losses. Multiple price hikes throughout the last year for its various subscription services led Disney to gradually shrink these losses. From 2022 to fiscal 2023, the company's direct-to-consumer operating losses fell from more than $3 billion to $2 billion. Meanwhile, the entertainment giant maintains that its streaming business will be profitable within the next fiscal year. Moreover, visitors showed up to Disney's theme parks in droves in 2023 after they reopened, with its experiences segment reporting revenue growth of 16% year over year and a 23% rise in operating income. However, the biggest vote of confidence in Disney's stock is the return of its dividend after it was halted during the height of the pandemic in 2020. The payout remains meager at 0.6%, but its return shows that the company is healing and that executives believe in Disney's long-term growth. Disney's business is particularly vulnerable to economic fluctuation. However, it appears to be back on a growth path and is a screaming buy in a bull market. Its P/S of about 2 and forward price-to-earnings ratio of 21 are at one of their lowest points in years, making Disney stock a bargain right now. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Walt Disney. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Fool.com contributor Parkev Tatevosian uses financial statement analysis to look at Rivian's (NASDAQ: RIVN) prospects in 2024 and answer if the stock is a good investment. Stock prices used were the afternoon prices of Dec. 16, 2023. The video was published on Dec. 18, 2023. Should you invest $1,000 in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Investing generally won't make you a millionaire overnight -- and buying just a few stocks usually won't do the trick either. But if you build a portfolio of about 25 solid stocks and hold on to them for a decade, you could see your investing dreams start to come true. And today, a few stocks in particular -- for different reasons -- stand out as ones that could help make you a millionaire over time. CRISPR Therapeutics (NASDAQ: CRSP) may advance significantly from here, as it's just started its growth story as a commercial-stage company. Teladoc Health (NYSE: TDOC) is ripe for a rebound after taking steps toward its profitability goal. And Johnson & Johnson (NYSE: JNJ) may contribute to your portfolio's gains through its growing dividend. Let's take a closer look at these three stocks that, together and as part of a diversified portfolio, could help make you a millionaire over the long haul. Image source: Getty Images. 1. CRISPR Therapeutics CRISPR Therapeutics stock has advanced this year, but it's fallen more than 60% from its peak -- reached back in 2021, when we weren't yet sure about whether its technology would result in a commercialized product. Today, though, the potential of the company's gene-editing technique is clear. CRISPR Therapeutics won authorization in the U.K. for its gene editing treatment, Casgevy, for sickle cell disease and beta thalassemia. And it earned approval in the U.S. for Casgevy for sickle cell -- and awaits a decision in March for the second blood disorder. The treatment holds blockbuster potential, so even though CRISPR Therapeutics shares profit with partner Vertex Pharmaceuticals, its 40% share still could represent significant revenue. Meanwhile, the regulatory nods also serve as a vote of confidence in the company's gene-editing technology, which it uses across its pipeline. All this means CRISPR Therapeutics' growth story is just getting started -- and there's plenty of opportunity for share price gains over the long haul. 2. Teladoc Health Teladoc Health shares sank in recent years as investors worried about the company's lack of profitability. And billions of dollars in noncash goodwill impairment charges last year -- linked to the acquisition of chronic care specialist Livongo -- made matters worse. But, today, Teladoc is ripe for a rebound. That's because the company has cut costs and balanced its quest for revenue growth, with the idea of working toward profitability. And this effort, launched earlier in the year, already is bearing fruit. In the most recent quarter, Teladoc reported results that met or beat its expectations. And though the Livongo purchase was costly for Teladoc, this operation may pay off over time. Chronic care is a key market, with half of Americans suffering from at least one chronic illness. Teladoc said in the recent quarter that its chronic care business drove revenue growth. Most recently, Teladoc launched an operational review of its business to ensure its investments and services support its goals. If Teladoc continues along this path, the stock, trading near its lowest ever in relation to sales, could rebound in a big way. TDOC PS Ratio data by YCharts 3. Johnson & Johnson You can win over time with an investment in Johnson & Johnson -- even if the stock doesn't soar. That's because J&J offers you a dividend, and one that's increased over time. The company makes the list of Dividend Kings, or those that have raised their dividends for at least 50 consecutive years. This solid track record shows rewarding shareholders is important to J&J, so it's likely the company will continue along this path. And that means you can count on your passive income growing year after year, adding to your gains from J&J stock performance. This chart shows how dividends, seen as part of total return, can make a significant difference in returns from a particular stock over the long haul. JNJ data by YCharts Today, J&J pays a dividend of $4.76 per share, reflecting a dividend yield of 3.07%, which tops the yield of the S&P 500. And J&J recently said that dividend growth is among one of its priorities. Meanwhile, J&J may also offer you more growth than you might expect from a long-established healthcare giant. The company recently spun off its slower-growth consumer health business, collecting $13 billion in proceeds, and aims to focus on its higher-growth businesses of medtech and pharmaceuticals. All this means now is a great time to get in on this top dividend stock. Should you invest $1,000 in CRISPR Therapeutics right now? Before you buy stock in CRISPR Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and CRISPR Therapeutics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics, Teladoc Health, and Vertex Pharmaceuticals. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Khushi Singh and Ankika Biswas Dec 19 (Reuters) - European shares climbed on Tuesday as risk appetite got a boost after Japan's central bank stuck to its ultra-loose monetary policy, while investors focused on the euro zone's inflation print to gauge the timing of rate cuts next year. The pan-European STOXX 600 .STOXX climbed 0.3% by 0927 GMT, with investors remaining optimistic about rate cuts next year following Federal Reserve Chair Jerome Powell's dovish shift last week. Investors now await the euro zone's final November inflation print later in the day, while keeping an eye out for the U.S. personal consumption expenditure data later this week for clues on the global monetary policy outlook. Driven by rate cut optimism, the STOXX 600 is on track for its second monthly gain in December and a double-digit advance of 12.2% for the year. "Santa came early this year, and the trend will continue through year-end. The Fed's done with hikes and the next move is cuts, but the question is how many cuts there will be in 2024 at this point." The STOXX 600, however, has lagged its U.S. peer S&P 500's .SPX 23.5% yearly advance, with the latter also benefiting from investors flocking to artificial intelligence stocks. Even while actively snubbing interest rate cut bets, policymakers have adopted a more positive outlook for inflation. ECB member Francois Villeroy de Galhau said lower interest rates are seen sometime in 2024, reaffirming that inflation should be back down to 2% by 2025 at the latest, while the Wall Street Journal reported Federal Reserve's San Francisco President Mary Daly noted that rate cuts are likely appropriate next year on improved inflation. Among individual stocks, UBSUBSG.S shares added 2.5% after activist investor Cevian Capital reported a 1.3% stake in the bank. Covestro1COV.DE gained 2.3% following a report that the Abu Dhabi National Oil Co was preparing to raise its offer for the German chemicals maker. Stora Enso STERV.HE rose 3.2%, with traders flagging DNB Markets upgrading the Finnish forestry firm's stock to "buy". CasinoCASP.PA dropped 8.9% after the French retailer entered into exclusive talks to sell all of its big stores to rivals Les Mousquetaires and Auchan Retail. (Reporting by Khushi Singh in Bengaluru; Editing by Rashmi Aich and Anil D'Silva) ((Khushi.Singh@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By 0855 GMT the Hungarian forint EURHUF= firmed 0.3% against the euro to 383.45, after steadily backing off from its four-month high of 375.55 hit in mid-November. Peter Virovacz, an economist at ING Bank in Budapest, said "We are expecting a cautious central bank cutting, only 75 bps. That could move markets away from any type of premature expectations of a stronger easing." "The central bank decision could help move EURHUF back towards these 380-ish levels." Meanwhile the Czech crown EURCZK= slipped 0.1% to 24.5340 per euro, having retreated steadily since late November, and traded close to its weakest levels in almost a month. Elsewhere the Polish zloty EURPLN= traded at 4.3290 per euro, holding flat slightly off of its strongest standing since March 2020. "For the rest of the year, the EURPLN exchange rate will remain stable around the level of 4.33 with low volatility," Bank Millennium analysts wrote in a comment. "Emotions will probably return only at the beginning of 2024, when macroeconomic data will build expectations regarding the decisions of the largest central banks." Poland's new government is expected to adopt its draft budget for 2024 later today. "Even though next year's borrowing needs in the previous government's (budget) draft were nominally record-breaking, the cost of fulfilling the coalition's election promises will further increase them," Bank Millennium economists said. CEE MARKETS SNAPSHOT AT 0955 CET CURRENCIES Latest Previous Daily Change bid close change in 2023 Czech crown EURCZK= 24.5340 24.5000 -0.14% -1.53% Hungary forint EURHUF= 383.4500 384.7000 +0.33% +4.17% Polish zloty EURPLN= 4.3290 4.3300 +0.02% +8.33% Romanian leu EURRON= 4.9700 4.9695 -0.01% -0.55% Serbian dinar EURRSD= 117.0800 117.1800 +0.09% +0.19% Note: daily change calculated from 1800 CET Latest Previous Daily Change close change in 2023 Prague .PX 1377.84 1381.8400 -0.29% +14.65% Budapest .BUX 60704.38 60538.62 +0.27% +38.61% Warsaw .WIG20 2333.35 2334.50 -0.05% +30.21% Bucharest .BETI 15455.10 15472.07 -0.11% +32.51% Spread Daily vs Bund change in Czech Republic spread 2-year CZ2YT=RR 4.7060 -0.1040 +218bps -8bps 5-year CZ5YT=RR 3.6980 -0.0400 +169bps -1bps 10-year CZ10YT=RR 3.7890 -0.0240 +176bps +2bps Poland 2-year PL2YT=RR 4.9610 -0.0540 +244bps -3bps 5-year PL5YT=RR 4.8410 -0.0210 +283bps +1bps 10-year PL10YT=RR 5.0470 -0.0880 +302bps -4bps FORWARD 3x6 6x9 9x12 3M interbank Czech Rep CZKFRAPRIBOR= 6.17 5.01 3.92 7.00 Hungary HUFFRABUBOR= 8.70 6.81 5.96 10.16 Poland PLNFRAWIBOR= 5.50 4.94 4.48 5.86 Note: FRA quotes are for ask prices ************************************************************** (Reporting by Karol Badohal in Warsaw, Boldizsar Gyori in Budapest; Editing by Shailesh Kuber) ((karl.badohal@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Warren Buffett is considered among the greatest investors of all time, having helped Berkshire Hathaway generate a compound annual gain of 19.8% from 1965 to 2022, smashing the S&P 500's total return of 9.9%. With Buffett's long track record, investors would be wise to read about his techniques, which he generously shares in his annual letter to shareholders. In recent years, Buffett has highlighted the importance of retained earnings. Let's delve into the retained earnings formula, explore why Buffett favors this metric, and highlight two stocks in Berkshire's portfolio that excel at it. What are retained earnings? Retained earnings is a line item on the balance sheet demonstrating a company's accumulated profits over its lifetime. It is calculated by taking a company's net lifetime earnings and subtracting its dividends paid (and any net losses). Companies can use retained earnings to expand, make acquisitions, pay down debt, and repurchase their stock. Buffett prefers to simplify the metric by focusing only on a company's annual earnings and dividends paid. That is because share repurchases can significantly distort the metric you see on the balance sheet. One of Buffett's favorite stocks, Apple, has surprisingly low lifetime retained earnings, at -$214 million. This is because of Apple's sheer number of share repurchases through the constructive retirement method, which assumes the shares will never be reissued, affecting retained earnings. Notably, Apple spent $77.5 billion on share repurchases in its fiscal year 2023 ended Sept. 30. Two Warren Buffett stocks that excel in retained earnings Beyond best-in-class Apple, two stocks in Berkshire's portfolio also excel in retained earnings: Bank of America (NYSE: BAC) and American Express (NYSE: AXP). In what is likely more than a mere coincidence, those two stocks are Berkshire's second- and third-largest holdings behind Apple, respectively. First, Bank of America is the second-largest bank in the world by market capitalization, totaling about $265 billion. Over the trailing 12 months, Bank of America generated $30.5 billion in net income and paid roughly $9 billion in total dividends, resulting in retained earnings topping $21.5 billion during that time frame. With its retained earnings, Bank of America has aggressively repurchased its stock -- retiring more than 18% of its shares outstanding over the past five years. Buffett recently wrote: "The math isn't complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices." Nonetheless, despite Bank of America's share repurchases and a higher-than-average annual dividend yield of 2.9%, its stock has only generated a total return (price appreciation plus dividends) of 55% over the past five years, trailing the benchmark S&P 500's trailing return of 97%. Bank stocks have underperformed recently either due to self-inflicted wounds like scandals around opening fake accounts or macroeconomic events largely out of a bank's control, like rising interest rates. Nonetheless, using the common valuation metric for bank stocks of price-to-book ratio, Bank of America currently trades at 1, meaning the market isn't placing a premium on its net assets like it does competitor JPMorgan Chase's price-to-book ratio of 1.6. Additionally, Bank of America's five-year price-to-book ratio average is 1.1, suggesting it might be slightly underpriced based on recent history. Image source: The Motley Fool. Next, let's look at the global financial services company American Express, a company Berkshire Hathaway first purchased in 1991, and which generated $8 billion in net income over the trailing 12 months. With an annual dividend yield of 1.3%, the company paid $1.7 billion in dividends to its shareholders. As a result, American Express produced roughly $6.3 billion in retained earnings. Like Bank of America, American Express is aggressively buying back its stock with retained earnings, lowering its shares outstanding by 14% over the past five years. During that time, American Express outpaced its larger competitors by market cap, Mastercard and Visa, in stock buybacks (those companies repurchased 9% and 8%, respectively). In addition to its share repurchases, American Express has acquired five fintech companies since 2019 -- all private companies for undisclosed prices. The strategy has proven helpful in fueling revenue growth as the company most recently set a sixth consecutive quarterly record, generating $15.4 billion for the third quarter of 2023. Finally, American Express stock appears attractive when assessed against its competitors through the widely used valuation metric price-to-earnings (P/E) ratio. With a P/E multiple of about 17, American Express stands out as notably undervalued compared to Mastercard and Visa with P/E ratios of 36 and 31, respectively. Are these two Warren Buffett stocks worth buying? In 2020, Buffett wrote: "Retained earnings have propelled American business throughout our country's history. What worked for Carnegie and Rockefeller has, over the years, worked its magic for millions of shareholders as well." These two stocks, plus Apple, make up roughly 65% of Berkshire's $370 billion stock portfolio, meaning they are likely some of Buffett's favorite stocks. Given Berkshire's past success, investors would be smart to follow the Oracle of Omaha's strategy and consider adding Bank of America and American Express to their portfolios. Should you invest $1,000 in Bank of America right now? Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Collin Brantmeyer has positions in Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	For Immediate Release Chicago, IL – December 19, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix, Inc. NFLX, The Boeing Co. BA, American Express Co. AXP, Amazon.com, Inc. AMZN and Shopify Inc. SHOP. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Netflix, Boeing and American Express The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Netflix, The Boeing Co. and American Express Co. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>> Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+77.0% vs. +46.8%). The company is benefiting from a growing subscriber base thanks to a robust portfolio. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, which represents more than 80% of Netflix’s revenue base, is also expected to aid growth. Netflix’s diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content, has been driving its growth prospects. However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peacock and Paramount+ is a headwind. Netflix’s leveraged balance sheet and a higher streaming obligation are concerns. Additionally, unfavorable forex is expected to hurt operating income in the fourth quarter of 2023. (You can read the full research report on Netflix here >>>) Boeing’s shares have outperformed the Zacks Aerospace - Defense industry over the year-to-date period (+77.0% vs. +46.8%). The company remains the largest aircraft manufacturer in the United States in terms of revenues, orders and deliveries. During the third quarter, the jet giant booked 398 net commercial airplane orders. A strengthening U.S. defense budget should also boost Boeing’s Defense, Space & Security's segment growth. Boeing has ample liquidity to meet its debt obligations in the near term. Our model projects Boeing's total revenues to increase in 2023-2025 period. However, Boeing expects supply-chain disruptions to continue to harm its operational results, at least in the near term. Its dispute with Embraer over termination of the earlier joint venture might cause it to incur some loss in the future. Rising jet fuel price also poses a threat to the stock’s future growth. (You can read the full research report on Boeing here >>>) Shares of American Express have outperformed the Zacks Financial - Miscellaneous Services industry over the year-to-date period (+24.0% vs. +16.8%). The company’s several growth initiatives, such as launching new products, reaching new agreements and forging alliances, are boosting its revenues. Consumer spending on T&E, which carries higher margins for AmEx, is advancing well. Its balance sheet looks strong with manageable debt and ample cash. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital via buybacks and dividends. However, with higher utilization of the firm’s cards, expense in the form of card member services and card member rewards is likely to go up and strain the margins. Business development, data processing and equipment costs expected to rise. A high debt level induces a rise in interest expenses. As such, the stock warrants a cautious stance. (You can read the full research report on American Express here >>>) Other noteworthy reports we are featuring today include Amazon.com, Inc. and Shopify Inc. Why Haven’t You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Apollo Commercial Real Estate Finance, Inc. ARI is a real estate investment trust. The Zacks Consensus Estimate for its current year earnings has been revised 7.3% downward over the last 60 days. Energizer Holdings, Inc. ENR is a battery manufacturer. The Zacks Consensus Estimate for its current year earnings has been revised 6.2% downward over the last 60 days. Marten Transport, Ltd. MRTN is a refrigerated trucking company. The Zacks Consensus Estimate for its current year earnings has been revised 16.4% downward over the last 60 days. View the entire Zacks Rank #5 List. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energizer Holdings, Inc. (ENR) : Free Stock Analysis Report Marten Transport, Ltd. (MRTN) : Free Stock Analysis Report Apollo Commercial Real Estate Finance (ARI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Adding to your winning stocks can be one of the hardest but most important things to do when investing. After a strong market so far in 2023, there are plenty of investors sitting on an opportunity to do just that as they consider what investment actions to take in 2024. Writing an article around this time last year under the same title, I explained why SoFi Technologies (NASDAQ: SOFI), Progyny (NASDAQ: PGNY), Kinsale Capital (NYSE: KNSL), and Lovesac (NASDAQ: LOVE) were four of my favorite stocks to become unstoppable multibaggers. Buoyed by a strong market, these selections showed signs of success early on, with a basket of these four stocks rising an average of 47% in 2023. SOFI Total Return Level data by YCharts As a long-term investor, I generally buy stocks with the idea of holding these businesses for a decade and beyond. After their strong runups in 2023, are these four stocks still investable at today's higher prices? Here's why I think that answer is a resounding yes. 1. SoFi Technologies Bolstered by an end to the student loan moratorium and higher interest rates significantly boosting demand in the personal loan industry, SoFi Technologies was firing on all cylinders throughout 2023. Part of the reason for that is that SoFi, once better known for its lending operations, has rapidly transformed into a true (and very quickly growing) bank. Last year, when I mentioned the company as a multibagger prospect, its financial services unit only accounted for 11% of revenue. Four quarters later, this figure sits at 21% of sales. Wilder yet, this financial services segment grew revenue by 141% in the third quarter compared to last year -- all while recording a positive contribution profit for the first time. Delivering financial products such as checking accounts, credit cards, investment accounts, and Relay (similar to the soon-to-be-defunct Mint), this unit saw banking products in use rise by 50% in the third quarter. The unit remains anchored by its popular savings account product, offering a market-leading 4.6% interest rate, attracting nearly $16 billion in customer deposits in just a few years. Growing by 23% quarter over quarter, these sticky direct deposits are vital to SoFi's future, as they now finance roughly 65% of its lending portfolio, providing the company with a war chest of funding. With management expecting to deliver its first quarter of generally accepted accounting principles (GAAP) profitability in the upcoming fourth quarter and (theoretically) every year from now on, SoFi's growth story could still be in its early chapters, even after its stock doubled in 2023. 2. Progyny With 1-in-5 women dealing with infertility issues -- the rate was 1-in-8 just four years ago -- Progyny and its fertility benefits solutions aim quite literally to bring happiness into the world. Progyny connects its 392 corporate clients to its network of fertility specialists at a price that is 25% lower than a traditional carrier-based program -- all while recording a track record of pregnancy outcomes that beat national averages. In addition to providing better pregnancy rates, lower miscarriage rates, and live birth rates than the national averages, Progyny's services have a net promoter score (NPS) of 81. Ranked on a scale of -100 to 100, an NPS measures how likely a customer is to recommend a product to their friends, with Progyny's mark being one of the highest worldwide, regardless of industry. Growing revenue by 48% since I mentioned it last December, Progyny may be cheaper now than it was a year ago, with its stock "only" up 16% since. Trading at a reasonable price-to-sales (P/S) ratio of 3.4, Progyny's high growth, steadily climbing 8% free cash flow margins (even without stock-based compensation), and importance to the world keep it a top multibagger candidate to hold forever. 3. Kinsale Capital Kinsale Capital is the only pure-play excess and surplus (E&S) insurance on the publicly traded markets, covering unique insurance areas such as cannabis tours, rage rooms, racetracks, and blood banks, along with a few traditional lines like construction. This specialization helps Kinsale deliver best-in-class operating metrics -- such as its 83% combined ratio and 21% return on equity that I bragged about a year ago. However, as incredible as these figures were, they've improved to 77% and 32% for the first three quarters of 2023. Despite this improvement from its already market-leading profitability metrics, Kinsale's stock has slightly lagged the market over the last year, succumbing to a 20% drop in share price in a single day due to "slower" 33% growth in written premiums. Regardless of this slowdown in premium growth, Kinsale grew earnings per share by 93% over the last year, leaving its stock trading at a much more reasonable valuation than a year ago. KNSL PE Ratio data by YCharts Still only accounting for a 1.1% share of the E&S industry, Kinsale's focus on its odd (and unloved) niche of the insurance world leaves it poised to remain an unstoppable force, continuing to insure lines its larger peers want nothing to do with. 4. Lovesac Repurposing over 150 million plastic water bottles for use in its rearrangeable, built-for-life furniture, Lovesac aims to disrupt the traditional furniture market with a focus on conscious capitalism. Despite facing a brutal consumer spending environment throughout 2023, Lovesac's stock has rallied over 50% in the last month as the company reported 14% sales growth compared to the furniture industry's low-single-digit growth in 2023. While this growth remains slower than its historical rate of 37% annually over the last five years, it highlights the company's ability to continue gaining market share at an outsized pace. Most importantly for investors, Lovesac owns a stellar 5.3 customer lifetime value-to-customer acquisition cost (CLV/CAC) ratio, highlighting its ability to find valuable lifelong customers at a relatively cheap marketing cost. Traditionally, a score above 3 is considered good, making Lovesac's score exceptional. This high CLV/CAC ratio is crucial to Lovesac because once it brings new customers on board, they typically buy additional, supplemental items due to the modular, customizable, and interchangeable nature of the company's furniture. Trading at 11 times price to free cash flow and 22 times price-to-earnings, Lovesac's "true" valuation probably lies somewhere in between. LOVE Price to Free Cash Flow data by YCharts This remains a deep discount to the S&P 500's average price-to-earnings ratio of 25, leaving Lovesac looking like a future multibagger thanks to its steady market share gains, consistent profitability, and loyal customers. Should you invest $1,000 in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Josh Kohn-Lindquist has positions in Kinsale Capital Group, Lovesac, Progyny, and SoFi Technologies. The Motley Fool has positions in and recommends Kinsale Capital Group and Progyny. The Motley Fool recommends Lovesac. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	ArcelorMittal (MT) shares soared 5.8% in the last trading session to close at $28.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13% gain over the past four weeks. ArcelorMittal’s rally appears to reflect the deal between Nippon Steel and U.S. Steel, under which Nippon Steel will acquire U.S. Steel for approximately $14.1 billion. ArcelorMittal was reportedly one of the bidders for U.S. Steel. This company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -67.9%. Revenues are expected to be $15.06 billion, down 10.8% from the year-ago quarter. While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For ArcelorMittal, the consensus EPS estimate for the quarter has been revised 12% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MT going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> ArcelorMittal is part of the Zacks Steel - Producers industry. Schnitzer Steel (RDUS), another stock in the same industry, closed the last trading session 1.4% lower at $29.12. RDUS has returned 17.7% in the past month. Schnitzer Steel's consensus EPS estimate for the upcoming report has changed +92.9% over the past month to -$0.71. Compared to the company's year-ago EPS, this represents a change of -61.4%. Schnitzer Steel currently boasts a Zacks Rank of #3 (Hold). Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT) : Free Stock Analysis Report Schnitzer Steel Industries, Inc. (RDUS) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	For Immediate Release Chicago, IL – December 19, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Novo Nordisk NVO, Eli Lilly LLY, Vertex Pharmaceuticals Inc. VRTX, Regeneron REGN and GSK plc GSK. Here are highlights from Monday’s Analyst Blog: 5 Big Pharma Stocks Looking to Continue Outperforming in 2024 The drug and biotech sector has underperformed the broader equity market in 2023 despite the launch of promising new medicines and high-profile merger and acquisition (M&A) activity. In fact, most large drugmakers have also underperformed the drug/biotech industry. Regular pipeline setbacks, slow ramp-up of newer drugs, supply chain disruptions, uncertainty about the impact of Medicare drug price negotiations, Federal Trade Commission’s (FTC) scrutiny of M&A deals, rising inflation and economic uncertainty are some of the factors that pulled down the drug/biotech industry. Nonetheless, a few big drugmakers, Novo Nordisk, Eli Lilly, Vertex Pharmaceuticals Inc., Regeneron and GSK plc, have outperformed the industry this year. Moreover, these stocks are also well poised to keep their momentum alive in 2024. In this article, we discuss how these five companies performed this year and the factors that are likely to drive their growth in 2024. Novo Nordisk Novo Nordisk has one of the broadest diabetes portfolios in the industry, with an extensive range of insulin drugs and diabetes-related products. Semaglutide remains the company's growth engine. It is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Ozempic, Rybelsus and Saxenda have been helping the company maintain momentum. Novo Nordisk is aglobal marketleader in the popular GLP-1 segment of the diabetes market. Its popular GLP-1 receptor agonist, Wegovy, is seeing strong prescription trends and is generating impressive revenues and profits for Novo Nordisk. Label expansions of diabetes and obesity care drugs in cardiovascular and other indications are likely to boost sales. Data from the phase III SELECT study, which evaluated Wegovy (semaglutide 2.4 mg) as an adjunctive treatment for preventing cardiovascular (“CV”) diseases in adults with overweight or obesity, showed that Wegovy reduced the risk of major adverse CV events by 20%. Obesity is one of the major risk factors responsible for CV diseases. A weight-loss drug like Wegovy, which also has CV benefits, is expected to see an increase in sales and demand. Novo Nordisk is also evaluating a once-daily oral formulation of semaglutide for obesity indication in late-stage studies, with a potential FDA filing expected later this year. Novo Nordisk has also significantly stepped up its M&A activity in the past two years. Novo Nordisk sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The stock has risen 43.5% so far this year compared with an increase of 3.9% for the industry. Estimates for its 2024 earnings per share have increased from $2.91 to $3.10 over the past 60 days. Eli Lilly In 2023, Lilly made rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s, thus attracting investors to the stock. Mounjaro/tirzepatide, Lilly’s new dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA), was approved for treating type II diabetes in May 2022 and generated impressive sales of $2.96 billion in the first nine months of 2023, benefiting from strong demand trends. Tirzepatide is expected to be a key long-term top-line driver for Lilly as it has the potential to be approved for obesity and other diabetes-related diseases. Tirzepatide showed superior weight-loss reduction in clinical studies for obesity indication. It was approved for the said indication in the United States in November by the name of Zepbound. Mounjaro and Zepbound are expected to be key top-line drivers for Lilly, with demand for weight loss drugs rising rapidly. Lilly also gained approvals for some other new drugs in 2023. Omvoh/mirikizumab was approved for its first inflammatory bowel disease (IBD) indication, ulcerative colitis, in the United States, Europe and Japan in 2023. Lilly expects to file a regulatory application seeking approval for Omvoh/mirikizumab for its second IBD indication, Crohn's disease, in 2024. Lilly’s BTK inhibitor Jaypirca was approved for mantle cell lymphoma in the United States in January 2023 and for the second indication, chronic lymphocytic leukemia, in December. Lilly will file the U.S. regulatory application for donanemab for early Alzheimer’s disease in the first quarter of 2024 while an application is under review in the EU. All these potential new product launches are expected to drive the growth of the company. Continued strong sales of key drugs Mounjaro, Verzenio, Jardiance and Taltz, coupled with contributions from new products like Zepbound, are expected to drive top-line growth in 2024. Lilly is a #3 Ranked stock. The stock has risen 56.4% so far this year compared with an increase of 3.9% for the industry. Though estimates for 2024 have declined from $13.16 per share to $12.70 in the past 60 days, it was only due to higher costs related to some research and collaboration deals. The stock has surged 49.5% year to date. Vertex The company enjoys a dominant position in the cystic fibrosis (CF) market. Vertex’s CF sales continue to grow, driven by its triple therapy, Trikafta (marketed as Kaftrio in Europe). While CF remains the main area of focus, Vertex is also developing treatments for sickle cell disease (SCD), beta thalassemia (TDT), acute and neuropathic pain, APOL1-mediated kidney disease, type I diabetes and alpha-1 antitrypsin deficiency. It also has earlier-stage programs in diseases such as muscular dystrophy. Many of its non-CF candidates represent multibillion-dollar opportunities. Several of the programs are past the proof-of-concept stage. It has been in the news this year due to the progress made in its non-CF pipeline. Earlier this month, the FDA approved Vertex and partner CRISPR Therapeutics Casgevy (exagamglogene autotemcel) for SCD for patients aged 12 years and older with recurrent vaso-occlusive crises. Casgevy became the first CRISPR-based gene-editing therapy to be approved in the United States. CRISPR and Vertex have also developed Cagevy for the treatment of TDT in the United States. A regulatory filing for the use of Casgevy for this indication is currently under review. A decision from the FDA is expected on Mar 30, 2024. Last month, Casgevy was approved in the United Kingdom for treating both SCD and TDT indications. Last week, Vertex announced encouraging data from a phase II study that demonstrated the promising safety and efficacy profile of its investigational non-opioid pain medicine, VX-548, for treating painful diabetic peripheral neuropathy across all doses. The data from the phase II dose-ranging study showed that VX-548, a novel first-in-class NaV1.8 inhibitor, led to a statistically significant and clinically meaningful reduction in the primary endpoint of change from baseline in the Numeric Pain Rating Scale, a measure of pain intensity in adults. Investors are paying a lot of attention to VX-548, which, they believe, has blockbuster potential as it can change the standard of care for neuropathic pain, an area with limited treatment options, mostly highly addictive opioid-based medications. Vertex has a Zacks Rank of 3. So far this year, the stock has risen 42.2% against the industry’s 17.7% decline. Estimates for 2024 earnings per share have increased from $16.05 to $16.55 over the past 60 days. Regeneron Regeneron’s key top-line drivers are inflammatory medicine, Dupixent, which it markets in partnership with Sanofi, and eye drug Eylea. Dupixent sales are rapidly growing, driven by continued strong demand in the approved indications — atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. In August 2023, the FDA approved Eylea HD (higher dose of Eylea) for the treatment of patients with wet age-related macular degeneration, diabetic macular edema and diabetic retinopathy. The approval of Eylea HD is a great boost to the company and may help revise Eylea sales, which have been under pressure in the last couple of quarters due to competition from Roche’s Vabysmo. Label expansion into additional indications should further increase the commercial potential of Eylea and Dupixent. We are impressed by Regeneron’s efforts to bring additional products to the market, like Kevzara, Inmazeb and Libtayo. The company’s progress with its oncology pipeline candidate, odronextamab, a bispecific antibody targeting CD20 and CD3, is also impressive. Regeneron has a Zacks Rank #3 So far this year, the stock has risen 19.1% against the industry’s 17.7% decline. Estimates for its 2024 earnings per share have increased from $42.26 to $42.62 over the past 60 days. GSK GSK enjoys a strong position in HIV and Vaccines therapeutic areas. Its products like Dovato, Nucala, Shingrix and Juluca have become key drivers of top-line growth. The company has some promising new products in Specialty Medicines and Vaccines areas like RSV vaccine, Arexvy and Ojjaara (momelotinib) for myelofibrosis with anemia. Arexvy has been successfully launched in the third quarter of 2023 and it, along with Shingrix, is expected to be a key driver of growth in the Vaccines unit in 2024. Other new drugs approved/launched recently are Jesduvroq/ Duvroq (daprodustat) for anemia due to chronic kidney disease (CKD) in adults on dialysis in the United States, and Apretude, a long-acting injectable form of cabotegravir drug for the prevention of HIV infection, also called pre-exposure prophylaxis or PrEP. All these new products are expected to drive growth in the future quarters. GSK boasts a broad vaccine portfolio that targets infectious diseases like meningitis, shingles, flu, polio and many more. GSK is also focusing on accelerating the vaccine pipeline, particularly the expanded use of the RSV vaccine, pentavalent vaccine and the 5-in-1 meningococcal vaccine, MenABCWY, to drive long-term growth. It has a leading suite of vaccine platform technologies, including next-generation mRNA, multiple antigens presenting system, or MAPS, as well as adjuvant systems. Some label expansion studies are ongoing on Jemperli, with other oncology compounds in earlier-stage endometrial cancer and advanced NSCLC. GSK is also focused on developing innovative ultra-long-acting HIV regimens for treatment and prevention, which can extend the dosing intervals of the injections. This Zacks #3 Ranked stock has risen 2.1% so far this year against a decline of 17.7% for the industry. Estimates for its 2024 earnings per share have increased from $3.79 to $3.84 over the past 60 days. Why Haven’t You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Here are three stocks with buy rank and strong income characteristics for investors to consider today, December 19: PLDT Inc. PHI: This company which provides telecommunications and digital services has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% the last 60 days. PLDT Inc. Price and Consensus PLDT Inc. price-consensus-chart \| PLDT Inc. Quote This Zacks Rank #1 company has a dividend yield of 5.5%, compared with the industry average of 2.2%. PLDT Inc. Dividend Yield (TTM) PLDT Inc. dividend-yield-ttm \| PLDT Inc. Quote Fulton Financial Corporation FULT: This financial holding company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5% the last 60 days. Fulton Financial Corporation Price and Consensus Fulton Financial Corporation price-consensus-chart \| Fulton Financial Corporation Quote This Zacks Rank #1 company has a dividend yield of 3.9%, compared with the industry average of 3.1%. Fulton Financial Corporation Dividend Yield (TTM) Fulton Financial Corporation dividend-yield-ttm \| Fulton Financial Corporation Quote Fomento Económico Mexicano, S.A.B. de C.V. FMX: This Coca-Cola bottling company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.4% the last 60 days. Fomento Economico Mexicano S.A.B. de C.V. Price and Consensus Fomento Economico Mexicano S.A.B. de C.V. price-consensus-chart \| Fomento Economico Mexicano S.A.B. de C.V. Quote This Zacks Rank #1 company has a dividend yield of 1.4%, compared with the industry average of 0.0%. Fomento Economico Mexicano S.A.B. de C.V. Dividend Yield (TTM) Fomento Economico Mexicano S.A.B. de C.V. dividend-yield-ttm \| Fomento Economico Mexicano S.A.B. de C.V. Quote See the full list of top ranked stocks here. Find more top income stocks with some of our great premium screens. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report Fulton Financial Corporation (FULT) : Free Stock Analysis Report PLDT Inc. (PHI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Fool.com contributor Parkev Tatevosian evaluates SoFi (NASDAQ: SOFI) stock using financial statement analysis to determine if investors should buy the stock for 2024. Stock prices used were the afternoon prices of Dec. 16, 2023. The video was published on Dec. 18, 2023. Should you invest $1,000 in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	For Immediate Release Chicago, IL – December 19, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Limbach Holdings, Inc. LMB, Duolingo, Inc. DUOL, Palantir Technologies Inc. PLTR and Nu Holdings Ltd. NU. Here are highlights from Monday’s Analyst Blog: 4 Business Services Stocks That More Than Doubled This Year Looking back at 2023, we see that it was the year of gradual strengthening of the economy, boosting service activities. While service activities remained in good shape through the year, their positive impacts on the sector were partially offset by contracting economic activity in the manufacturing sector. Fed’s decision for a third consecutive pause on interest rate hikes since July acted as a tailwind for the Business Services sector. The sector is currently balancing between growth in services pertaining to transportation & warehousing, retail, wholesale, finance & insurance, health care & social assistance, rental & leasing, education and weakness in information, mining, and professional, scientific & technical Services. 2023 Trends That Should Prevail in 2024 With service activities remaining in good shape, the demand for business services is expected to continue rising. Notably, the Services PMI measured by the Institute for Supply Management has recorded the 11th consecutive month of expansion in November. It registered 52.7%, increasing 0.9 percentage points from October’s reading of 51.8%. Companies that have established successful work-from-home models are focused on digital transformation and have witnessed demand for their services going up or staying constant in the post-pandemic business environment have performed significantly well this year. With digitization and remote working becoming parts of the new normal, these companies are poised to continue their stellar performance in 2024. 4 Business Services Stocks That Warrant a Look Here, we have picked four Business Services stocks with Zacks Rank #1 (Strong Buy) or #2 (Buy) that have gained more than 100% in 2023 and have witnessed upward estimate revisions in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here. Limbach Holdings, Inc.: This integrated building systems solutions company is benefiting from the strong performance of the Owner Direct Relationships segment, offsetting continued softness in the General Contractor Relationships. Owner Direct Relationships revenues in the quarter are being driven by the company’s continued focus on increasing the segment’s contribution to the business. Owner Direct Relationships revenues increased 10.3% year over year in the third quarter of 2023. General Contractor Relationships revenues stayed flat. Shares of Limbach have rallied a massive 315.1% year to date. The Zacks Consensus Estimate for the 2023 bottom line has been revised 28.7% north in the past 60 days. The company currently sports a Zacks Rank #1. Limbach Holdings, Inc. price-consensus-eps-surprise-chart \| Limbach Holdings, Inc. Quote Duolingo, Inc.: This operator of mobile learning platform is currently reaping the benefits of product improvements, cost discipline and creative marketing efforts. The company’s daily and monthly average users increased 63% and 47%, respectively, year over year, in the third quarter of 2023. Number of subscribers increased 60% year over year. All these led to a 43% year-over-year increase in revenues in the quarter. Adjusted EPS came in at 6 cents compared with a loss of 46 cents in the year-ago quarter. The Zacks Consensus Estimate for the company’s 2023 earnings is currently pegged at 25 cents, having moved from a loss of 9 cents over the past 60 days. This Zacks Rank #1 stock has appreciated a whopping 225.4% this year. Duolingo, Inc. price-consensus-eps-surprise-chart \| Duolingo, Inc. Quote Palantir Technologies Inc.: This software platform developer is benefiting from healthy business from existing as well as new customers, strengthening both the Government and Commercial segments. The Government segment revenues grew 12% and the Commercial segment revenues surged 33% year over year in the third quarter of 2023. The Zacks Consensus Estimate for the company’s 2023 earnings is currently pegged at 25 cents, having moved up 8.7% over the past 60 days. This Zacks Rank #1 stock has appreciated a whopping 183.5% this year. Palantir Technologies Inc. price-consensus-eps-surprise-chart \| Palantir Technologies Inc. Quote Nu Holdings Ltd.: This provider of digital banking platforms and digital financial services is currently benefiting from strong customer growth, higher levels of customer monetization and a low-cost operating platform. The company’s revenues increased 63.5% and earnings surged more than 100% year over year in the third quarter of 2023. Shares of NU have rallied 103.9% year to date. The Zacks Consensus Estimate for the 2023 bottom line has been revised 4.8% north in the past 60 days. The company carries a Zacks Rank #2 at present. Nu Holdings Ltd. price-consensus-eps-surprise-chart \| Nu Holdings Ltd. Quote Why Haven’t You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nu Holdings Ltd. (NU) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	For Immediate Release Chicago, IL – December 19, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Amazon.com, Inc. AMZN, Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Brinker International, Inc. EAT. Here are highlights from Monday’s Analyst Blog: November Sales Lift Retailers' Holiday Spirit: 4 Picks for You U.S. retailers are celebrating a robust rebound in November sales, setting a positive tone for the holiday shopping period. The latest data from the Commerce Department reveals a 0.3% increase in retail sales, totaling $705.7 billion. This defies analysts' expectations of a 0.1% decline and follows a revised 0.2% contraction in October. Despite ongoing challenges, such as inflation, higher borrowing costs and geopolitical tensions, Americans have showcased resilience. A robust job market has been a key factor in bolstering consumer confidence and spending power. November saw the addition of an impressive 199,000 jobs to the U.S. economy, contributing to a low unemployment rate of 3.7%. The concurrent uptick in wage growth further solidified the link between a strong job market and increased consumer spending. The National Retail Federation (“NRF”) is optimistic about the holiday season, projecting a 3% to 4% increase in sales for the November-December period. NRF anticipates sales between $957.3 billion and $966.6 billion, excluding autos, gas and restaurants. This reflects the industry's optimism about consumer spending during the festive period. The unexpected surge in November retail sales aligns with the strategic efforts of retailers who have been enticing customers with discounts. Lower gasoline prices have added fuel to this momentum, freeing up additional funds for consumers to allocate to their holiday shopping endeavors. Excluding gasoline stations, retail sales grew 0.6%. A Peek Into November Sales Numbers The Commerce Department's latest report unveils a myriad of trends in retail sales. Motor vehicle & parts dealers experienced a 0.5% increase in sales on a sequential basis. Health & personal care stores saw a notable uptick of 0.9%, and food services & drinking places recorded a substantial 1.6% increase. Clothing & clothing accessories outlets also experienced a surge of 0.6%. Meanwhile, sporting goods, hobbies, musical instruments & bookstores witnessed robust sales growth of 1.3%. Furniture & home furnishing stores reported a commendable 0.9% rise in sales, while food & beverage stores saw modest growth of 0.2%. Non-store retailers stood out with a noteworthy 1% increase in sales. On the flip side, the outlook was less optimistic for building material & supplies dealers, where sales dipped by 0.4%. Electronics & appliance stores reported a notable drop of 1.1%. Gasoline stations witnessed a more pronounced decline of 2.9% in receipts. Miscellaneous stores and general merchandise stores registered a decrease of 2% and 0.2% in sales, respectively. 4 Prominent Picks Amazon.com, Inc. is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping. The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11% and 276.1%, respectively, from the year-ago reported figure. AMZN, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 54.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here. Investors can count on Brinker International, Inc., one of the world's leading casual dining restaurant companies. Brinker International is unwavering in its commitment to enhancing customer engagement and boosting revenues through various sales-boosting strategies. These include optimizing the menu and fostering innovation, reinforcing its value proposition, improving food presentation, implementing effective advertising campaigns, optimizing kitchen systems and introducing an enhanced service platform. The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5.1% and 26.2%, respectively, from the year-ago reported figure. EAT, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 223.6%, on average. Abercrombie & Fitch Co. is another potential pick. The company's ability to adapt, innovate and connect with customers positions it for a prosperous future. Abercrombie & Fitch’s regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion. Its strong brand portfolio, operational efficiency and regional strategy make it an attractive investment opportunity as it continues to navigate and thrive in the evolving retail landscape. This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 713%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago period. The stock sports a Zacks Rank #1. American Eagle Outfitters, Inc. is worth betting on. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience. The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figure. AEO, which carries a Zacks Rank #2 (Buy), delivered a trailing four-quarter earnings surprise of 23%, on average. Why Haven’t You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	RH RH, once known as Restoration Hardware, posted a surprise quarterly loss on December 7 and provided downbeat guidance. The high-end home furniture retailer pointed to higher mortgage rates and other headwinds as reasons for RH’s rough near-term outlook. RH’s Story RH is a luxury-centered furniture and home décor powerhouse that has thrived in a changing retail landscape by keeping it old-school. The company still sends out massive catalogs and it has opened large, high-end stores, many with accompanying bars and restaurants in cities from Chicago to New York. RH is even slowly attempting to push its way into the world of hotels, homes, architecture, and more. RH grew its revenue at a rather impressive rate between its 2012 IPO and 2021, including blowout results in FY21, driven by the booming housing market. RH’s revenue then slipped about 4.5% last year as the housing market cooled and consumers focused on experiences after they spent a prolonged period buying tables, couches, and more. Image Source: Zacks Investment Research RH’s third quarter FY23 revenue fell by nearly 14%. The company’s adjusted operating margin also came in below expectations “due to higher than anticipated expenses, including international openings as well as costs related to our pending acquisition of the New York Guesthouse property and unsuccessful efforts to secure the iconic One Ocean Drive Miami Beach location.” RH posted an adjusted loss of -$0.42 per share in Q3 vs. our +$0.91 a share Zacks estimate. The firm’s downbeat earnings guidance has seen its consensus estimate slide by 36% for the fourth quarter and 18% for both FY23 and FY24. RH’s most accurate EPS estimates came in below consensus. All of RH’s downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now. The nearby chart shows that RH’s earnings outlook has been fading for well over a year now. Bottom Line RH’s adjusted earnings are expected to slide by 60% YoY on 15% lower revenue. RH’s downbeat outlook is due in part to the slowing housing market. The company also said that the “home furnishings market has become increasingly promotional, and we believe that will create a mix shift towards clearance products, pressuring gross margins.” RH shares are trading over 55% below their peaks. The stock also currently trades under its 200-week moving average. RH is rather heavily shorted at about 17% of the float. All in, it might be best to avoid RH stock for now and look for other firms not tied directly to the housing market or big-ticket retail items. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RH (RH) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Amazon’s (AMZN) rebound kicked back into high gear following its big beat and raise third quarter at the end of October, with AMZN shares up roughly 85% in 2023. The e-commerce and cloud computing giant’s comeback has been powered by its commitment to boosting earnings and transforming into a mature tech firm that posts impressive top-line growth and massive, constantly expanding profits. Some investors might be worried they ‘missed out’ on Amazon’s rally and could be afraid about what’s next for the so-called Magnificent Seven tech stocks. There could be some selling and choppiness in the near term for the market and big tech following the huge rally to end a strong year. Yet, Amazon trades solidly below its all-time highs and its average Zacks price target, and its valuation levels have improved as it focuses on the bottom line. Amazon’s various businesses are also more entrenched in the economy than ever. Multiple Growth Engines Slowing cloud growth and higher rates hit Amazon stock hard in 2022—alongside most of the technology sector. Thankfully, rates are coming down and AMZN is focused on profits and maximum efficiency under CEO Andy Jassy. Better yet, Amazon still runs the world’s largest cloud-computing business. Cloud computing is a key pillar of the modern economy and is growing in importance. The combination of steady cloud computing growth and a concentrated effort on boosting earnings now and forever is the pitch that breathed fresh life into Amazon stock in 2023 and likely will for years to come. Image Source: Zacks Investment Research AWS sales climbed 12% in the third quarter, accounting for around 16% of total company revenue. The high-margin segment is eclipsed by its far-large e-commerce unit in terms of overall sales. Yet AWS accounted for over 60% of Amazon’s operating income last quarter and is poised to remain Amazon’s profit hub going forward. Amazon reportedly held 32% of the cloud computing market last quarter vs. Microsoft’s (MSFT) 22% and Google’s 11%. Amazon is attempting to improve AWS margins by rolling out more in-house chips. Amazon is actively introducing AI-focused efforts to attract customers to spend more as everyone races not to get left behind on tech's new frontier. On top of that, Amazon is expanding its collaboration with Nvidia (NVDA) for cutting-edge chips. On the e-commerce front, Amazon is benefitting from its transition from a single national fulfillment network in the U.S. to eight distinct regions. Amazon currently holds nearly 40% of the total e-commerce market share in the U.S., blowing away second-place Walmart’s 7%. The company is also growing its digital advertising segment. The unit climbed 25% in Q3, marking the largest YoY gain on a percentage basis. Image Source: Zacks Investment Research Amazon is also aiming to boost its Prime segment by rolling out more live streaming entertainment efforts. For example, new reports say Amazon is in talks to invest in regional sports standout Diamond Sports Group. Near-Term EPS & Revenue Outlook Current Zacks estimates call for Amazon to post 11% revenue growth in 2023 to pull in $570.75 billion and then climb 12% higher next year to reach $637.05 billion. This would see the firm add a projected $124 billion to the top line between FY22 and FY24, which is more than retail and e-commerce firm Target made in FY22 ($109 billion). These figures mark improved expansion from its 9% revenue growth last year. Amazon’s earnings guidance keeps getting better. AMZN’s consensus fourth quarter EPS estimate has jumped by 15% since its Q3 report, with its FY23 estimate 20% higher and 13% better for FY24. Image Source: Zacks Investment Research Amazon is projected to post 276% earnings growth in 2023, climbing from $0.71 to $2.67 a share. AMZN is then expected to boost its earnings by another 32% next year to reach $3.53 per share. On top of that, its most accurate/most recent estimates for FY23 and FY24 came in above consensus. Amazon’s overall improved earnings outlook helps it land a Zacks Rank #1 (Strong Buy) right now. The recent positivity is part of a prolonged stretch of surging earnings outlooks that began in early 2023. Performance, Technical Levels & Valuation Amazon stock has climbed 665% in the last decade to blow away the Zacks Tech sector’s 250%. Despite this run, Amazon is down 4% in the last three years vs. the Zacks Tech sector’s 22% climb. AMZN has surged 84% in 2023 to top Microsoft’s 55% and Apple’s 51%. Unlike Apple, MSFT, and Nvidia, Amazon hasn’t posted new all-time highs in 2023. Amazon currently trades around 17% below its all-time highs and its average Zacks price target marks 16% upside to Monday’s levels. Amazon hit new 52-week highs on Monday, having found support at its 21-day moving average recently. AMZN shares have also retaken their very long-term 50-week moving average. Image Source: Zacks Investment Research On the valuation front, Amazon trades over 65% below its highs and at a 45% discount to its 10-year median at 42.8X forward 12-month earnings. This is still clearly very ‘pricey’ for many investors. But there are signs that Amazon’s forward earnings multiple will keep coming down. Amazon’s PEG ratio, which factors in its earnings growth outlook, marks a 25% discount vs. the Zacks tech sector at 1.5. Better still, Amazon’s PEG ratio sits near its lows over the last 10 years. Bottom Line Amazon is a powerhouse in multiple key areas of the economy that aren’t going out of style. Therefore, investors might want to buy Amazon as a straightforward investment into mega-cap technology and its growing sway over our lives and the market. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	For Immediate Release Chicago, IL – December 19, 2023 – Today, Zacks Equity Research discusses EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK. Industry: REITs Link: https://www.zacks.com/commentary/2199240/3-equity-reit-stocks-worth-betting-on-despite-industry-woes Even though the Fed's latest decision to keep interest rates steady brings cheer to REIT investors, broad-based economic uncertainty remains a key concern for the REIT and Equity Trust - Other industry. An expected slowdown in leasing demand is anticipated to dampen the prospects of the industry, while supply-chain constraints and high material costs may raise development costs. Given this backdrop, investors should consider betting on defensive asset categories within the industry that portray resiliency and have solid fundamentals that will drive growth. Players like EastGroup Properties, Stag Industrial and Park Hotels & Resorts are likely to prosper. About the Industry The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructures and more. Equity REITs lease out space within these properties to tenants, generating income through rental payments. Economic growth assumes a central role within the real estate sector as economic expansion directly correlates with higher demand for real estate, increased occupancy rates and greater bargaining power for landlords to command higher rental rates. Moreover, the performance of Equity REITs hinges on the specific dynamics of their underlying assets and the geographic location of their properties. Therefore, it is imperative to thoroughly explore the fundamentals of these asset categories before making any investment decisions. What's Shaping the Future of the REIT and Equity Trust - Other Industry? Broad-Based Economic Uncertainty to Hurt Near-Term Large-Scale Deals: Although the Federal Reserve kept the benchmark rate unchanged for the third time in a row and indicated three rate cuts in 2024, near-term investors are likely to remain cautious, especially about large-scale business deals. There is less urgency from clients to make new commitments, and they continue to await greater price discovery. This phenomenon, along with persistent broad-based macroeconomic uncertainty, is expected to lower leasing demand and limit rental rate and occupancy growth. Specifically, the overall office real estate market is expected to continue experiencing lackluster demand as work-from-home and flexible or hybrid work setups take the front foot, diminishing office space utilization. As for lodging REITs, the recovery in group and business transient travel demand has been slower than anticipated. However, a positive demand trend and improvement in international inbound travel provide scope for revenue per available room growth in the near term, although at a slower pace. Further, with the initial surge in tower activity related to the early stage of the 5G investment cycle coming to a temporary halt and consolidation in the wireless industry, demand for tower REITs is expected to mellow down in the quarters ahead, hurting profitability. Supply-Chain Woes & High Material Costs Linger: Overall economic uncertainty and geopolitical unrest continue to lead to supply-chain constraints at various stages. This, coupled with elevated interest rates, has pushed up the cost of raw materials, resulting in higher development costs. In addition, REITs are highly dependent on the debt market to carry out their development and redevelopment activities. As a result, interest expenses are likely to be on the higher end in the near term, affecting their ability to purchase or develop real estate with borrowed funds. Resilient Demand Across Certain Asset-Classes Gives Scope for Growth: Demand for certain asset categories such as healthcare, data centers and industrial and logistics is likely to remain resilient in the near future. Healthcare REITs are well-poised to capitalize on the expected acceleration in senior citizens’ population and a rise in healthcare spending by this age cohort in the upcoming period. On the other hand, the e-commerce boom and supply-chain strategy transformations continue to provide an impetus to the industrial and logistics real estate space. Further, in this digital era, the high demand for inter-connected data center space by enterprises and service providers continues as they integrate artificial intelligence into their strategies and offerings, and advance their digital transformation agendas. This enhances the growth prospects for data center REITs. Zacks Industry Rank Indicates Bleak Prospects The Zacks REIT and Equity Trust - Other industry is housed within the broader Finance sector. It carries a Zacks Industry Rank #153, which places it in the bottom 39% 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 bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the southward revision of funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are losing confidence in this group’s growth potential of late. For 2023, the industry’s earnings estimates have moved 1.9% downward since the end of January 2023. The industry’s estimates for 2024 have moved 7.7% south during this time frame. However, before we present a few stocks that you might want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture. Industry Lags the Stock Market Performance The REIT and Equity Trust - Other Industry has underperformed both the S&P 500 composite and the broader Zacks Finance sector in a year. The industry has risen 6% during this period compared with the S&P 500’s increase of 24% and the broader Finance sector’s 16.3% jump. Industry's Current Valuation On the basis of the forward 12-month price-to-FFO ratio, which is a commonly used multiple for valuing REIT - Others, we see that the industry is currently trading at 15.67X compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 19.75X. However, the industry is trading above the Finance sector’s forward 12-month P/E of 14.80X. Over the last five years, the industry has traded as high as 22.10X and as low as 12.80X, with a median of 17.79X. 3 REIT and Equity Trust - Other Stocks to Consider Park Hotels & Resorts: The lodging REIT owns a high-quality portfolio of hotels situated mostly in major urban and convention areas and premier resorts in key leisure destinations. Notably, 86% of the hotels and resorts are in the luxury or upper upscale segment. With economic activity picking up pace, the company continues to witness improvement in overall demand across its portfolio. It expects this positive momentum to continue through the remainder of 2023 and into 2024. PK currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s 2023 FFO per share has been raised marginally over the past month to $1.99, indicating an increase of 29.2% year over year. The stock has gained 38.8% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here. EastGroup Properties: This industrial REIT is engaged in the acquisition, development and operation of industrial properties, the majority of which are clustered around key transportation hubs in supply-constrained submarkets of major Sunbelt regions. Its core markets include the states of Florida, Texas, Arizona, California and North Carolina. Given the strategic location of EGP’s high-quality distribution facilities, it is expected to benefit from the healthy fundamentals of the industrial real estate market. EastGroup Properties currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for EGP’s 2023 FFO per share has moved marginally northward over the past two months to $7.70, indicating an increase of 10% year over year. The stock has rallied 24.3% in the year-to-date period. Stag Industrial: The company is engaged in the acquisition, ownership and operation of industrial properties throughout the United States. It enjoys a diversified portfolio in terms of market, tenant industry and tenant credit, which is likely to help it tide through the current market conditions and aid in stabilizing rental revenues. The REIT currently carries a Zacks Rank #2. The Zacks Consensus Estimate for STAG’s 2023 FFO per share has been raised 1.3% over the past two months to $2.28, indicating an increase of 3.2% year over year. The stock has appreciated 19.7% in the year-to-date period. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Why Haven’t You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/ Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Adds U.S. targets, EV auto sales in the U.S. in the last three paragraphs Dec 17 (Reuters) - Canada expects to announce this week that all new cars will have to be zero emissions by 2035, a senior government source said, as Ottawa is set to unveil new regulations in the latest example of countries around the world pushing for electrification. The new rules, known as the Electric Vehicle Availability Standard, would help ensure supply is available to the Canadian market and shorten wait times to get an electric vehicle, the source told Reuters, confirming earlier media reports. The Canadian provinces of British Columbia and Quebec already have the same regulated sales targets. Zero-emission vehicles - which include battery electric, plug-in and hydrogen models - must represent 20% of all new car sales in 2026, 60% in 2030 and 100% in 2035, the source said on condition of anonymity. Officials at Canada's environment ministry declined comment. Global EV sales now make up about 13% of all vehicle sales and are likely to rise to between 40%-45% of the market by the end of the decade, according to the Paris-based International Energy Agency (IEA). In the United States, the Republican-led House of Representatives voted earlier this month to bar the Biden administration from moving forward with stringent vehicle emissions regulations that would result in 67% of new vehicles being electric by 2032. The vote drew a veto threat from the White House. Market leader Tesla TSLA.O sold 325,291 vehicles in the United States during the first half of 2023. General Motors’ GM.N Chevrolet brand was a distant second at 34,943, trailed by Ford F.N, Hyundai 011760.KS and Rivian RIVN.O. (Reporting by Costas Pitas and Allison Lampert; Editing by Sandra Maler and Lisa Shumaker) ((Costas.Pitas@thomsonreuters.com; Reuters Messaging: @Cpitas on X)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 19: MarineMax, Inc. HZO: This yacht brokerage and services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days. MarineMax, Inc. Price and Consensus MarineMax, Inc. price-consensus-chart \| MarineMax, Inc. Quote MarineMax has a price-to-earnings ratio (P/E) of 8.14, compared with 9.50 for the industry. The company possesses a Value Score of A. MarineMax, Inc. PE Ratio (TTM) MarineMax, Inc. pe-ratio-ttm \| MarineMax, Inc. Quote PLDT Inc. PHI: This company which provides telecommunications and digital services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 5.8% over the last 60 days. PLDT Inc. Price and Consensus PLDT Inc. price-consensus-chart \| PLDT Inc. Quote PLDT Inc has a price-to-earnings ratio (P/E) of 8.39 compared with 14.80 for the industry. The company possesses a Value Score of A. PLDT Inc. PE Ratio (TTM) PLDT Inc. pe-ratio-ttm \| PLDT Inc. Quote Beacon Roofing Supply, Inc. BECN: This company which distributes residential and non-residential roofing materials, and complementary building products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 10.2% over the last 60 days. Beacon Roofing Supply, Inc. Price and Consensus Beacon Roofing Supply, Inc. price-consensus-chart \| Beacon Roofing Supply, Inc. Quote Beacon Roofing Supply has a price-to-earnings ratio (P/E) of 11.26 compared with 17.30 for the industry. The company possesses a Value Score of A. Beacon Roofing Supply, Inc. PE Ratio (TTM) Beacon Roofing Supply, Inc. pe-ratio-ttm \| Beacon Roofing Supply, Inc. Quote See the full list of top ranked stocks here. Learn more about the Value score and how it is calculated here. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report MarineMax, Inc. (HZO) : Free Stock Analysis Report PLDT Inc. (PHI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Dec 19 (Reuters) - Major stock markets in the Gulf fell in early trade on Tuesday on volatile oil prices, while the global rally in anticipation of U.S. rate cuts began to run out of puff. Oil prices - a catalyst for the Gulf's financial markets - were little changed as investors eyed the impact on oil supply after attacks on ships in the Red Sea by Yemen's Iran-aligned Houthi militants disrupted maritime trade and forced companies to reroute vessels. Saudi Arabia's benchmark index .TASI fell 0.2%, hit by a 2.1% slide in Etihad Atheeb Telecommunication 7040.SE and a 0.6% decrease in Al Rajhi Bank 1120.SE. However, oil behemoth Saudi Aramco 2222.SE edged 0.2% higher. The kingdom's crude oil exports in October hit their highest level in four months, data from the Joint Organizations Data Initiative (JODI) showed on Monday. Dubai's main share index .DFMGI dropped 0.3%, with blue-chip developer Emaar Properties EMAR.DU losing 0.5% and toll operator Salik Co SALIK.DU retreating 0.6%. Oil major BP BP.L temporarily paused all transits through the Red Sea and oil tanker group Frontline FRO.OL said on Monday its vessels would avoid passage through the waterway, signs the crisis was broadening to include energy shipments. About 15% of world shipping traffic transits via the Suez Canal, which connects the Red Sea to the Mediterranean Sea, offering the shortest shipping route between Europe and Asia. In Abu Dhabi, the index .FTFADGI eased 0.1%. The Qatari benchmark .QSI, which traded after a two session break, advanced 2.1%, as most of its constituents were in positive territory including petrochemical maker Industries Qatar IQCD.QA, which gained 3%. (Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman ) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Adds details and quotes from paragraph 2 TAIPEI, Dec 19 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, said on Tuesday that its board had recommended that current CEO and Vice Chairman C.C. Wei succeed Mark Liu who will be retiring next year as chairman. Company veteran Liu became Taiwan Semiconductor Manufacturing Co's TSM.N chairman in 2018 after founder Morris Chang, who remains the senior statesman of Taiwan's chip industry, retired. Liu, who joined TSMC in 1993, said he would like to put his "decades of semiconductor experience to other use, spend more time with my family, and start the next chapter of my life", according to a company statement. "I am confident that TSMC will continue to perform outstandingly in the years to come." The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024. Wei, who has a doctorate in electrical engineering from Yale University, has been on the company's board since 2017 and joined TSMC in 1998. TSMC is a major supplier to companies like Apple and Nvidia. (Reporting by Ben Blanchard; Editing by Jacqueline Wong and Bernadette Baum) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Sai Ishwarbharath B BENGALURU, Dec 19 - India's information technology firms are accepting tougher contract terms to win large deals from clients as they compete for fewer orders in an uncertain global economy, industry insiders and analysts say. The $245-billion sector, which gained immensely from the pandemic-induced boom in digital services, has struggled in recent quarters as clients slashed spending on discretionary projects amid inflationary pressures and recession fears. That is forcing companies including Tata Consultancy Services TCS.NS, Infosys INFY.NS and HCLTech HCLT.NS to accept contract conditions such as guaranteeing minimum cost savings, billing the client only if certain goals are achieved and reviewing cost overruns. "Whenever economic challenges appear and demand recedes, it becomes a buyer's market. The clients try to push more clauses including capping the pricing and asking for outcome-based deals," said former Infosys CFO V Balakrishnan. "It was witnessed during 2008 when the global financial crisis happened, and in 2001 during the dot-com crash," he said. Tata Consultancy Services and Infosys did not respond to Reuters' requests seeking comment. HCLTech declined to comment on specific deal terms. More than 80% of more than 1,600 IT and business process management deals tracked in 2023 had some form of committed-savings clause, versus around 65% in 2019, data from IT research firm Everest Group showed. Such cost-saving clauses are either baked into the pricing, or companies risk a cut in fees if the savings are not achieved, Everest Group CEO Peter Bendor-Samuel said. Contracts with such clauses that were signed this year include HCLTech's $2.1 billion deal with Verizon and a $454 million deal between Infosys and Danske Bank, a person familiar with the deal terms said. Under the Danske Bank deal, which runs for five years, Infosys will digitise the lender's operations and take over its delivery centre in India, while the Verizon deal, which runs for six years, will see HCLTech become the U.S. firm's primary tech partner for network deployments, according to exchange filings. TOUGH TIMES The tougher contracts are likely to add pressure on an industry that is already struggling. India's second-biggest software-services exporter by sales Infosys has already predicted its slowest annual sales expansion in at least a decade for the current financial year ending March 2024. The big IT firms classify contracts worth $100 million or above as large deals and those above $500 million as mega deals, which are typically struck when demand is low. TCS, Infosys and HCLTech have won seven mega deals since May, company disclosures show, while Wipro WIPR.NS did not win any mega deals. Its Chief Growth Officer Stephanie Trautman, who was leading the large deals team, resigned earlier this month. The tougher terms tied to the large IT deals are an attempt by clients to hedge against the global economic uncertainty, deal advisors said. "Clients are increasingly seeking predictable business outcomes and assurances to protect their interests in large deals that often span five years or more," said Avinash Baliga, partner at deal advisor Avasant. The inclusion of committed-cost-savings clauses in deal agreements has climbed to 50-60% presently versus 20% in the last decade, Baliga added. The clauses also reflect a rise in client maturity. "Customers have become much more aware of the possibilities and scenarios that could play out during a deal tenure," said Ashutosh Sharma, vice-president and research director at Forrester India. "Now, clients are asking IT players too to share risks and rewards." Mega deals signed by top 3 Indian IT firms https://tmsnrt.rs/3v3JCqq (Reporting by Sai Ishwarbharath B; Editing by Dhanya Skariachan and Miral Fahmy) ((saiishwarbharath.b@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 19: Arcos Dorados Holdings Inc. ARCO: This franchisee of McDonald’s restaurants carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days. Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart \| Arcos Dorados Holdings Inc. Quote Arcos has a PEG ratio of 1.17 compared with 2.49 for the industry. The company possesses a Growth Score of A. Arcos Dorados Holdings Inc. PEG Ratio (TTM) Arcos Dorados Holdings Inc. peg-ratio-ttm \| Arcos Dorados Holdings Inc. Quote Beacon Roofing Supply, Inc. BECN: This company which distributes residential and non-residential roofing materials, and complementary building products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.2% over the last 60 days. Beacon Roofing Supply, Inc. Price and Consensus Beacon Roofing Supply, Inc. price-consensus-chart \| Beacon Roofing Supply, Inc. Quote Beacon Roofing Supply has a PEG ratio of 1.23 compared with 1.82 for the industry. The company possesses a Growth Score of A. Beacon Roofing Supply, Inc. PEG Ratio (TTM) Beacon Roofing Supply, Inc. peg-ratio-ttm \| Beacon Roofing Supply, Inc. Quote 8x8, Inc. EGHT: This provider of cloud-based, enterprise-class software solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days. 8x8 Inc Price and Consensus 8x8 Inc price-consensus-chart \| 8x8 Inc Quote 8x8 has a PEG ratio of 0.30 comparedwith 0.48 for the industry. The company possesses a Growth Score of A. 8x8 Inc PEG Ratio (TTM) 8x8 Inc peg-ratio-ttm \| 8x8 Inc Quote See the full list of top ranked stocks here. Learn more about the Growth score and how it is calculated here. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report 8x8 Inc (EGHT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Florence Tan and Lisa Barrington Dec 19 (Reuters) - A number of container ships are anchored in the Red Sea and others have turned off tracking systems as traders adjust routes and prices in response to maritime attacks by Yemen's Iran-aligned Houthis on the world's main East-West trade route. Attacks on ships in the major Red Sea shipping route have raised the spectre of another bout of disruption to international commerce following the upheaval of the COVID pandemic, and prompted a U.S.-led international force to patrol waters near Yemen. The Red Sea is linked to the Mediterranean by the Suez Canal, which creates the shortest shipping route between Europe and Asia. About 12% of world shipping traffic transits the canal. Major shippers including Hapag Lloyd HLAG.DE, MSC and Maersk MAERSKb.CO, oil major BP BP.L and oil tanker group Frontline FRO.OL have said they will be avoiding the Red Sea route and re-routing via southern Africa's Cape of Good Hope. But many ships are still plying the waterway. Several ships underway have armed guards on board, LSEG data showed. At least 11 container ships which had passed through Suez and were approaching Yemen carrying consumer goods and grains bound for countries including Singapore, Malaysia and the United Arab Emirates, are now anchored in the Red Sea between Sudan and Saudi Arabia, LSEG shiptracking data showed. Four MSC container ships in the Red Sea have had their transponders turned off since Dec. 17, the data showed, likely to avoid detection. Three liquefied natural gas (LNG) vessels have also adjusted their routes to avoid passing by Yemen, according to shiptracking data by Kpler and LSEG Eikon. Vessels are attempting to mask their positions by pinging on other locations, as a safety precaution when entering the Yemen coastline, said Ioannis Papadimitriou, senior freight analyst at Vortexa. "Most ships will be turning off their AIS (transponders) at some point in those waters," one shipping industry source said. Analysis from maritime AI company Windward showed the number of incidents involving cargo vessels going dark within waters around Saudi Arabia’s exclusive economic zone in the Red Sea rose to 81 in November from 74 in October, after averaging 42 incidents between October 2022 to September 2023. A Dec. 15 advisory issued by leading shipping associations said ships that switched AIS on and off had been attacked. "Switching off AIS makes it marginally more difficult to track a ship, but may also hinder the ability of the military to provide support or direct contact," the advisory said. PAUSED SAILINGS Denmark's Maersk on Friday paused all container shipments through the Red Sea following a "near-miss incident" involving its vessel Maersk Gibraltar. A number of the ships at anchor in the Red Sea are Maersk vessels, LSEG data showed. On Tuesday it said vessels previously paused and due to sail through the southern Red Sea and the Gulf of Aden would be rerouted around Africa. The Iran-backed Houthis, who say they are supporting Palestinians under siege by Israel in the Gaza Strip, have waded into the Israel-Hamas conflict by attacking vessels in vital shipping lanes and even firing drones and missiles at Israel, more than 1,000 miles from the Yemeni capital Sanaa. Houthis attacked two commercial shipping vessels in the southern Red Sea on Monday.(LINK) Industry sources say the impact on global trade will depend on how long the crisis persists, but insurance premiums and longer routes would be immediate burdens. Vortexa's Papadimitriou on Tuesday said the price of a Suezmax to carry crude from the Middle East to Europe has risen 25% in a week. The disruption to energy flows in the Red Sea is unlikely to have large effects on crude and liquefied natural gas (LNG) prices, Goldman Sachs said on Monday, as vessels can be redirected. "We do estimate that a hypothetical prolonged redirection of all 7 million barrels per day of gross (Northbound and Southbound) oil flows would raise spot crude prices relative to long-dated prices by $3-4/per barrel," the investment bank said. An Asian buyer of naphtha, a petrochemical feedstock imported from Europe, said their vessels were still using the Red Sea route as it would take another 7-14 days to re-route via the Cape of Good Hope. Some oil tanker owners are inserting a new clause to include a Cape of Good Hope option into their shipping contracts as a precautionary measure, shipbrokers said. A person familiar with Alibaba's Cainiao logistics arm said they may see slightly longer delivery times and shipping fees, but overall the re-routing would have little impact on business. Vessels re-routing https://tmsnrt.rs/3NVTcCz Vessels re-routing https://tmsnrt.rs/3ROUT75 (Reporting by Florence Tan, Trixie Yap and Naveen Thukral in Singapore, Yousef Saba in Dubai, Casey Hall in Shanghai and Jonathan Saul in London; Writing by Lisa Barrington in Seoul; Editing by Michael Perry, Louise Heavens and Ed Osmond) ((lisa.barrington@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The resilience of the healthcare sector during an economic downturn makes it an appealing choice for investors. Furthermore, pharma companies' race to develop groundbreaking therapies and vaccines reflects their potential for long-term growth. In addition to this, many healthcare companies boast consistent dividend payouts, making them attractive for income-oriented investors. Using TipRanks’ Stock Screener tool, we identified five healthcare stocks with the potential to outperform the market. These stocks have received a Strong Buy rating from Wall Street analysts and have an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks. Moreover, the analysts’ price targets reflect an upside potential of over 20%. Here are the five key stocks that investors can consider. AstraZeneca (NASDAQ:AZN) – The global pharmaceutical company specializes in innovative treatments across various therapeutic areas, including oncology, respiratory, cardiovascular, and more. AZN stock’s price forecast of $80.80 implies a 22.5% upside potential. Moreover, it has an outperforming Smart Score of “Perfect 10.” Humana (NYSE:HUM) – Humana offers a range of healthcare products and services, including insurance plans and wellness programs. The stock’s average price target implies a consensus upside of 26.8%. Also, it has a top-notch Smart Score of “Perfect 10.” Sarepta Therapeutics (NASDAQ:SRPT) – Sarepta is a biotechnology company focused on developing precision genetic medicines to treat rare neuromuscular diseases. SRPT stock’s price forecast of $127.07 implies a nearly 35% upside. Also, its Smart Score of “Perfect 10” is encouraging. BridgeBio Pharma (NASDAQ:BBIO) – The biopharmaceutical company develops transformative medicines to address various genetic diseases and conditions. BBIO stock has an analyst consensus upside of 30.4% and a Smart Score of eight. Evolent Health (NYSE:EVH) – The company provides technology and services to support value-based care and population health management. The stock has an average price target of $45.33, which implies a 47.7% upside potential from current levels. EVH stock has a Smart Score of nine. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Dividend stocks can offer a valuable source of income for investors who want to diversify their portfolios. However, investors should also be aware that most of these stocks will gradually decline in value over time unless the dividend is reinvested. This may seem surprising, but ample evidence supports this claim. Only a few dividend stocks have been able to provide cash payments to shareholders consistently while also increasing their share prices over time. Two of the most popular dividend stocks in the market today are AT&T (NYSE: T) and AbbVie (NYSE: ABBV), but they have different appeals. AT&T is attractive for its high yield, currently 6.72%. AbbVie also has a decent yield of 4.02% and has established itself as a leading dividend growth stock and reliable passive income source for shareholders. To illustrate these points, the company has increased its dividend by 287.5% since it spun off from Abbott Laboratories in 2013, and it is a Dividend King due to its heritage. Image source: Getty Images. Which of these top dividend stocks is the better income play? Let's dig deeper to find out. The case for AT&T Over the next few years, AT&T is expected to steadily reduce its debt thanks to its improved free cash flows and lower costs. The company should also face less competitive pressure from its rivals because the U.S. wireless market has become more stable after T-Mobile's merger with Sprint and the completion of the 5G network rollout. Lastly, AT&T's stock screens as markedly undervalued, with its shares trading at less than 7 times expected earnings. In fact, the telecom giant's stock is currently trading near a historical low on this classic valuation metric. The case for AbbVie AbbVie is a biopharmaceutical company that rewards its shareholders with a generous and growing dividend. The company has a proven track record of delivering strong revenue growth and expanding its market share in autoimmune diseases, where its best-selling drug, Humira, is a market share leader in multiple indications. AbbVie has also diversified its portfolio into other lucrative areas, such as oncology, with breakthrough drugs like Imbruvica for various blood cancers. The company has a solid pipeline of innovative drugs, and its recent acquisitions could add more value to its business. AbbVie's dividend yield is slightly higher than the average for its industry, and its stock is trading at a low valuation compared to its peers at less than 14 times forward earnings. However, Humira's sales are declining due to biosimilar competition, and novel branded competitors could further challenge its dominance in immunology over the next five to 10 years. Verdict AbbVie scans as the better buy in this comparison. The drugmaker is facing some important challenges, but it also operates in a fast-growing and dynamic healthcare sector that benefits from favorable demographic trends, scientific breakthroughs, and robust global demand. AT&T, on the other hand, is struggling to grow its sales in a mature and highly competitive U.S. telecom market. So, even though it offers a higher dividend yield, AT&T stock may not be as appealing as AbbVie's at the moment. Should you invest $1,000 in AT&T right now? Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 George Budwell has positions in AT&T. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Aaron Ross and Dawit Endeshaw ADDIS ABABA, Dec 19 (Reuters) - Foreign investor interest in Ethiopia's telecoms sector is cooling, sector experts and those with knowledge of the licencing process say, pointing to a bumpy first two years operating in the country for Safaricom, the only company so far granted a licence to compete with state-owned Ethio Telecom. Telecoms were once seen as the big prize of a drive to liberalise the economy of Ethiopia, Africa's second most populous country with around 120 million people, launched after Prime Minister Abiy Ahmed took power in 2018. But legislative changes, recurring security problems and concern about the government's commitment to opening up a tightly-controlled economy to true competition are deterring possible investors. When Ethiopia solicited bids in 2020 for the country's first private telecoms licences it touted duty-free capital goods imports and temporary income tax exemptions as incentives for new telecoms investors, according to portions of the Request for Proposals seen by Reuters. Two years later - and one year after Kenya's Safaricom SCOM.NR won the first licence - investment regulations enacted by the government did not include telecoms on the list of investment areas entitled to these fiscal incentives. Safaricom declined to comment on the regulatory changes, whose implications for telecoms companies have not been previously reported. The finance ministry and a spokesperson for Prime Minister Abiy did not respond to written questions about Safaricom's challenges and the incentives. Russell Southwood, the CEO of Balancing Act telecoms consultancy and author of Africa 2.0, a book about mobile and internet technology on the continent, said telecoms investors doubted the government's commitment to true competition. "You can never be quite clear what it is the Ethiopian government is doing," he said. "It's liberalising one minute and then the next minute it's taking everything back." Last month, regulators said they had suspended the process to issue a third telecommunications licence after potential investors said the conditions on offer needed to be improved. France's Orange ORAN.PA told Reuters then it had withdrawn from the process to buy an up to 45% stake in Ethio Telecom, because "the conditions do not allow for the rapid deployment of our strategy". Safaricom said in response to written questions that it had "learned fast" during its first two years in Ethiopia and there had been "an enthusiastic uptake" of its products and services. Safaricom said last month it had signed up 7 million users, including 4.1 million active customers over the past three months after launching its network in October 2022, and had 1.2 million customers for its mobile money service M-Pesa, launched in August. The company, owned by the Kenyan government, South Africa's Vodacom VODJ.J and Britain's Vodafone VOD.L, did not comment on specific challenges it faced. It expects earnings in Ethiopia to break even in the 2026 fiscal year. Early losses in Ethiopia have dragged down the company's overall earnings but analysts say the performance is broadly in line with expectations. Ethio Telecom's profit more than doubled in its latest financial year and it has more than 72 million subscribers. Eyob Tekalign, a senior Ethiopian finance ministry official, attributed delays in awarding the third telecoms licence to difficult economic conditions globally and in Ethiopia. The country is dealing with inflation of 30% and is on the brink of a debt default after missing a coupon payment on a $1 billion international bond. If investors choose to come at "a different time frame, I think we're fine with it," Eyob said. NEED FOR CAPITAL Mehrteab Leul, the managing partner of a law firm in the capital Addis Ababa that advises foreign investors, said the setbacks were temporary and investors would remain interested. But with foreign exchange shortages crippling many businesses, Ethiopia needs fresh injections of capital, said Patrick Heinisch, emerging markets economist at Helaba Bank. The telecoms sector had initially attracted interest from a range of major operators - including Etisalat 7020.SE, MTN MTNJ.J, Saudi Telecom 7010.SE and Telkom SA TKGJ.J. Enthusiasm had, however, cooled by the time bids came due in April 2021 for the first two licences, largely due to concerns about the November 2020 outbreak of civil war in the northern Tigray region. The war ended last year, although separate fighting has continued elsewhere in the country. Only South Africa's MTN and a consortium led by Safaricom tabled bids in 2021. The latter's $850 million bid was accepted, while MTN's offer of $600 million was rejected as too low. One major struggle for Safaricom has been getting equipment through customs, according to a Western diplomat and an industry insider, who both spoke on condition of anonymity. Import duties can only be waived by the finance ministry on a case-by-case basis, which has led to repeated delays, said the industry insider. Safaricom did not respond to a request for comment on this point. The person, who has knowledge of the telecoms licencing process, said this was one of several examples of the government favouring Ethio Telecom at Safaricom's expense, including encouraging state-owned utilities to favour Ethio Telecom's payments system. Eyob denied any such practices. "These issues, which promote anti-competitive practices, have made other potential bidders for the third telecoms licence lose interest," the person said. (Reporting by Aaron Ross and Dawit Endeshaw; Additional reporting by Nqobile Dludla in Johannesburg and Hadeel Al Sayegh in Dubai; Editing by Alexandra Hudson) ((Aaron.Ross@thomsonreuters.com; +221 77 569 1702;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Roshan Thomas Dec 19 (Reuters) - Australian shares settled higher on Tuesday, driven by gains in commodity stocks, as investor appetite for risk improved after the country's central bank noted signs of easing inflation. The benchmark S&P/ASX 200 .AXJO rose 0.8% to 7,489.1, its highest close since Feb. 9, also tracking a Wall Street rally as traders awaited a slew of U.S. data, including the November core personal consumption expenditure index report on Friday. Minutes of the Reserve Bank of Australia's December policy meeting showed that the central bank considered raising interest rates for a second consecutive month, but decided there were enough encouraging signs on inflation to pause for more data. U.S. stocks gained ground overnight as investors parsed mounting expectations of Fed rate cuts in the coming year. .N In Sydney, miners .AXMM gained 0.6% on improving iron ore prices. BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX rose between 0.6% and 1.1%. IRONORE/ "Sellers are gone and with bid activity continuing, it is a positive environment," said Henry Jennings, a senior market analyst at Marcus Today. "We may see a resources rally continue. Lithium and oil are my two sectors to rebound in 2024," Henry predicted for the first quarter of 2024. Energy stocks .AXEJ rose 1%, as oil prices extended gains with Red Sea attacks disrupting global supply chains. Woodside WDS.AX was up 1.7%, while Santos STO.AX closed flat. O/R Gold stocks .AXGD climbed 0.7%, with Northern Star Resources NST.AX up 1.4%. Technology stocks closed 1.1% higher, with Block's Australian shares SQ2.AX and Xero XRO.AX up 0.3% and 1.6%, respectively. Financials .AXFJ rose 0.8%, with National Australia Bank NAB.AX, Westpac WBC.AX and Commonwealth Bank of Australia CBA.AX up between 0.5% and 0.8%. In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.5% to 11,617.37. (Reporting by Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu) ((Roshan.Thomas@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	This year hasn't just been a good one for IonQ (NYSE: IONQ) shareholders. It's been a great one. The computing-technology stock is up more than 300% since the end of 2022, and seemingly still going strong. As the old adage goes, though, past performance is no guarantee of future results. There's no assurance IonQ will repeat the feat in the coming year. Even so, shares of the market-beating company could still easily outpace whatever marketwide gains are in the cards for 2024, making the stock a compelling -- even if somewhat speculative -- buy. Here's why. IonQ is on a roll You've probably heard the term "quantum computing" tossed around in the past few years. What you've probably not heard is much about the commercialization of quantum computing solutions. Although the potential of subatomic particles as a computing medium is incredible, it's also just too darn difficult to make it practical and affordable. That is, until now. While a company called D-Wave was the first to introduce quantum computing to commercial clients and IBM become the first major player to unveil such tech back in 2019, IonQ is arguably the name in the business to take most seriously. After all, it's also the stock market's "first publicly traded, pure-play quantum computing company," according to the company. Perhaps more important, customers are lining up, money in hand. The company booked $6.1 million worth of business during the quarter ended in September, more than doubling its top line on a year-over-year basis, and extending a growth trend that's been in place for all of 2023. IONQ Revenue (Quarterly) data by YCharts IonQ's total bookings jumped by $26.3 million last quarter as well, accelerating to a year-to-date total of $58.4 million. This growth only scratches the surface of what could happen, however. The company continues to refine its portfolio of quantum computing platforms. Last quarter it unveiled the #AQ (algorithmic qubits) 35 Forte Enterprise computer as well as its #AQ 64 Tempo. The former is designed for hybrid data centers that also still rely on conventional binary-computing systems. The latter will come to the market in 2025, offering "more available, useful computational states than any computer in history." As such it should be able to handle the heavier-duty computing loads many clients may not even be envisioning yet. The analyst community is calling for top-line growth of nearly 80% from IonQ next year following this year's 95% revenue growth. The quantum computing tailwind is already blowing It's still not a great stock pick for everyone's portfolio, for the record. IonQ is likely to remain in the red through 2026, with its losses expected to widen rather than contract next year before finally starting to curb in 2025. But even then, don't count on any actual net profits until 2027. The stock's apt to remain volatile and unpredictable until then, and perhaps after that. Data source: StockAnalysis.com. Chart by author. If you can stomach the wild ride in the meantime, however, it may well be worth it. See, although it's a relatively new and somewhat unproven idea, quantum computing is real enough to spur significant growth outlooks. Precedence Research, for instance, believes the quantum computing market will expand at an average annual pace of roughly 37% between last year and 2030, growing from 2022's tally of $10 billion to $125 billion by then. And that outlook jibes with several others. All of these outlooks are rooted in the same core thesis, though. That's the power and potential of quantum computing itself. It will redefine how the world sees and uses computers, by virtue of doing what conventional computers just can't. It's showing particularly great promise in areas like enhancing artificial intelligence, bolstering cybersecurity, figuring out how and why proteins do what they do, designing better lithium-based batteries for electric vehicles, optimizing traffic flow, and even predicting the weather. The next big step isn't figuring out how to use subatomic particles to make more computations faster, or even designing algorithms that create useful, actionable data -- that's already been done. The next big step is giving prospective paying customers the tools they need to do something constructive with quantum computing. The thing is, IonQ is already doing this, too. It's partnered with General Electric to help minimize its exposure to unseen financial risk, and is helping chemical company Dow develop new materials. The U.S. Air Force is already a big customer of the company's as well, helping this arm of the country's armed forces develop better battlefield capabilities. IonQ simply needs to keep explaining the potential of its technology to more prospective customers. A buy, but only for certain investors Again, it's not for everyone. Aside from the unpredictability that comes with being a young company operating in a young industry, plugging into the underlying quantum computing trend requires a long-term mindset and a willingness to shrug off short-term swings. That's easier said than done when a stock is suddenly losing a lot of ground for no clear reason. The bigger-picture thesis is still bullish for long-term investors with an appetite for risk, however. As was noted, IonQ is the only real pure play in the quantum computing business, and its current market cap of roughly $3 billion is a pittance compared to the quantum computing market's projected growth. Most of that growth will take shape beginning a few years from now, but wise investors know they can't wait until then to jump in since stocks often predict the future rather than reflect the present. Bottom line? It would be surprising if IonQ shares didn't outperform the S&P 500 in 2024 no matter how well or how poorly the index is due to perform. Just keep in mind IonQ stock will also be far more volatile than the S&P 500 is apt to be in the coming year. Should you invest $1,000 in IonQ right now? Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends International Business Machines. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Yuka Obayashi and Mariko Katsumura TOKYO, Dec 19 (Reuters) - Nippon Steel 5401.T said on Tuesday its $14.1 billion deal to buy U.S. Steel X.N would help it tap into a new growth market, as concerns over the huge premium the world's fourth largest steelmaker was paying sent its shares down as much as 6%. Nippon Steel has been looking to expand overseas in recent years, as a shrinking population in Japan, where it generates nearly three-fifths of its revenue, is dimming the demand outlook for high-end steel used for autos and electronic goods. "U.S. Steel is not a competitor to us in the U.S. market or elsewhere, so we can objectively say that it is a best match," he said. U.S. Steel's net sales at home last year were $16.8 billion, well over double the revenue of about 957 billion yen ($6.7 billion) that Nippon Steel generated in North America last fiscal year. Last year, Nippon Steel bought majority stakes in two electric arc furnace steelmakers in Thailand, and in 2019, together with ArcelorMittal, the Japanese firm bought India's Essar Steel. "This deal will propel Nippon Steel into the top 3 global makers of steel," Japan analyst Mark Chadwick wrote on the Smartkarma research platform. "In many ways, Nippon Steel is paying a huge premium. In simple terms, the offer values U.S. Steel at an EV (enterprise value) of $750/ton, far higher than Nippon Steel’s own EV of $560/ton." Nippon Steel's shares fell 5.5% in early trade in Tokyo to the lowest level since July, but pared losses to trade down 2.6%. It is paying the equivalent of 7.3 times U.S. Steel's 12-month earnings before interest, taxes, depreciation and amortisation (EBITDA), according to LSEG data. The automotive and transportation sector represented almost a quarter of steel shipments out of U.S. Steel's North American facilities in 2022, according to the company's annual report. U.S. Steel also provides steel for renewable energy infrastructure such as wind turbines and so stands to benefit from the U.S. Inflation Reduction Act (IRA), which provides tax credits and other incentives for such projects. U.S. Steel shares ended trading up 26% at $49.59 on Monday following the deal announcement. (Reporting by Mariko Katsumura and Yuka Obayashi; Writing by Miyoung Kim; Editing by Sonali Paul) ((yuka.obayashi@thomsonreuters.com; +813-4520-1265)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	In the 37-year history of the Nasdaq-100 index, it has only posted a loss in consecutive years on one occasion: during the dot-com tech crash from 2000 to 2002. Therefore, when the index plunged 33% last year, a rebound in 2023 was the likely outcome. True to history, the Nasdaq-100 has absolutely ripped higher with a 52% gain this year. Macroeconomic headwinds, like inflation and interest rate pressures, eased, which was helpful. But investors will be pleased to know that also bodes very well for 2024. See, bounce-back years like 2023 have always been followed by another positive year, which tends to produce a return of 21.5% (on average). With that in mind, semiconductor stock Axcelis Technologies (NASDAQ: ACLS) could be a fantastic buy if the market continues to move higher. The company is growing its revenue and earnings at a brisk pace, and its stock trades at a bargain valuation right now. Here's what investors need to know. Axcelis is carrying a huge order backlog into 2024 Axcelis isn't a chip producer, but it sells its ion implantation equipment to leading chip makers, forming a critical part of the fabrication process. Therefore, the company is still exposed to growing demand across the industry for chips in categories like electric vehicles and artificial intelligence (AI). In fact, Axcelis has experienced strong demand this year from producers of silicon-carbide power devices in the electric vehicle industry. Power devices process and deliver electric power in workloads requiring high currents, and silicon carbide leads to more efficient results than traditional silicon-based hardware. In electric vehicles, that translates to faster charging times and more mileage per charge. AI isn't a major revenue driver for Axcelis at the moment, but in its third-quarter conference call with investors, management highlighted the technology's requirement for increasing amounts of memory (DRAM) and storage (NAND) capacity. As a result, the company is expecting AI to become a source of strong demand. Nevertheless, the company has its hands full with its existing end-markets. It currently has an order backlog worth $1.2 billion, nearly a record high, and it will carry the majority of it into the new year. For context, it's equivalent to more than 12 months' worth of revenue. Revenue is on track to set a record this year Axcelis generated $820.3 million in revenue through the first three quarters of 2023 (ended Sept. 30), representing a year-over-year increase of 25.4%. The company is on track to deliver a record-high $1.1 billion in revenue for the full year. The company's results are even more impressive considering many chipmakers have recently suffered a slowdown in revenue growth -- some, like Advanced Micro Devices, even saw revenues shrink. Markets such as personal computing and gaming have suffered from a drop in consumer spending but should improve next year, given inflation and interest rates have declined from their peaks. But Axcelis is somewhat insulated from some of those short-term struggles because its customers typically plan their capital expenditures years in advance. If they intend to have a higher chip production capacity in the future, they might place equipment orders today in preparation (hence Axcelis' deep order backlog). That's why Axcelis stock has the potential to be a reliable long-term performer. Image source: Getty Images. Axcelis stock looks like a total bargain going into 2024 Axcelis is highly profitable, and it's on track to deliver $7.27 in earnings per share for the year. Based on its current stock price near $136, it trades at a price-to-earnings (P/E) ratio of roughly 19. That's a 32% discount to the Nasdaq-100 index, which trades at a P/E ratio of 28. The index is home to prominent chip companies like Nvidia, Advanced Micro Devices, and Texas Instruments (among others). Despite Axcelis not producing chips, management's commentary suggests it will benefit from the AI tailwind going forward. The company also has a very strong year ahead thanks to its order backlog. Electric vehicle demand will also likely remain strong in 2024 as the industry continues to scale up. Based on these factors, combined with Axcelis' ability to grow its top and bottom lines in tough economic conditions, its stock deserves a little more credit on the valuation front. I think it will likely get it in the new year. Should you invest $1,000 in Axcelis Technologies right now? Before you buy stock in Axcelis Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Axcelis Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Texas Instruments. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Just based purely on its year-to-date performance, cosmetics and personal care specialist Ulta Beauty (NASDAQ:ULTA) doesn’t seem particularly convincing. After a choppy 52-week period, the company has underperformed the S&P 500 Index (SPX). However, relevance to ever-evolving beauty trends and a possibly stabilized economy should help regain momentum convincingly. I am bullish on ULTA stock as it looks to bounce back on more favorable conditions. Broader Stabilization Should Help ULTA Stock Recently, Wall Street has focused intently on the Federal Reserve, with the central bank hinting at three possible rate cuts next year. Naturally, the discussion centered on high-level topics, such as the implications for the labor market and residential real estate. Nevertheless, the Fed’s decision should also impact the consumer discretionary space and, thus, ULTA stock. Fundamentally, the biggest implication of the possible upcoming pivot in monetary policy is encouraging disinflation data. For roughly the past two years, the Fed grappled with skyrocketing inflation, which inherently crimped consumer sentiment due to rising prices. By logical deduction, lower rates induce increased money velocity (all other things being equal), which is inflationary. So, the Fed must have justification to even consider lowering borrowing costs. Again, that justification may stem from favorable disinflation data, which may have been reflected in Ulta’s most recent earnings report. As TipRanks contributor Aditya Raghunath stated, Ulta increased its revenue by 6.4% on a year-over-year basis to $2.5 billion. Further, same-store sales popped up 4.5% from one year prior. In fairness, the company suffered from a challenging macroeconomic environment, along with stubbornly elevated inflation levels (compared to historical norms). As a result, both gross and operating margins took a hit relative to the year-ago quarter. Nevertheless, the encouraging aspect is that Ulta continues to beat analysts’ expectations. As well, the damage inflicted on the business due to macro headwinds has been mitigated. In other words, assuming the economy stabilizes – which is what the Fed appears to be targeting with its interest rate modulation discussion – ULTA stock would be playing ball on at least more favorable grounds. Aligning with Dynamic Beauty Trends Could Boost the Business For those unaccustomed to fashion and beauty trends, it’s a daunting arena to decipher. Mainly, the challenge centers on the dynamism of shifting trends. For example, last year, many looks catered to the glam or shiny look-at-me approach. Looking forward to next year, industry experts suggest that minimalism may be the “in” look. That’s a lot to take in because companies in the field must constantly account for the underlying dynamism. However, that’s where ULTA stock could shine. For one thing, the underlying enterprise offers a wide range of products, catering to various budgets and preferences. Therefore, Ulta can tap into multiple trends on a dime. Just as well, the company offers a robust omnichannel experience. That’s important because online transactions are making a comeback. Following the dramatic spike in broader e-commerce stats during the initial wave of COVID-19, online sales as a component of total retail transactions faded. However, since Q2 2022, online retail sales as a percentage of total sales have been increasing. Thus, a strong omnichannel presence is a must, which is a key advantage for ULTA stock. Perhaps most importantly, Ulta’s brick-and-mortar locations feature beauty advisors and hair salons. By incorporating evolving beauty trends and fine-tuning them to perfectly fit each individual customer, Ulta enjoys a comprehensive advantage. Indeed, ample marketing research shows that Generation Z consumers prefer a personalized retail approach. Ulta can give the emerging consumer demographic exactly what it wants, thus benefiting ULTA stock. Don’t Overlook the Long-Term Financial Resilience Now, one thing that should not be ignored is the framing of Ulta’s margins. Yes, as pointed out earlier, the company incurred a year-over-year decline in gross and operating margins. That’s never a positive development, of course, but context matters. As a discretionary retail play against historic economic challenges, you have to expect some profitability erosion. Further, Ulta’s current gross margin of 39.86% isn’t terrible compared to historical norms. On a trailing-12-month (TTM) basis, this metric comes in at 39.09%. That’s pretty much in line with Fiscal Year 2022 and 2023’s results of 39.03% and 39.62%, respectively. Put another way, consumers are not dramatically shying away from the company’s products. Subsequently, that’s a huge positive for ULTA stock, assuming that the economy stabilizes next year. Is ULTA Stock a Buy, According to Analysts? Turning to Wall Street, ULTA stock has a Moderate Buy consensus rating based on 15 Buys, four Holds, and one Sell rating. The average ULTA stock price target is $537.20, implying 10% upside potential. The Takeaway: ULTA Stock is Surprisingly Well Positioned Ulta Beauty's choppy year may have masked its potential. A stabilized economy and alignment with 2024's beauty trends (minimalism, diverse options) could boost ULTA stock. Additionally, the Fed's potential rate cuts, Ulta's strong omnichannel presence, and personalized customer service position it well for next year's consumer discretionary landscape. Personally, I wouldn’t overlook Ulta's resilient margins for a discretionary retailer facing historic challenges. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Dec 19 (Reuters) - The disruption to energy flows in the Red Sea is unlikely to have large effects on crude oil and liquefied natural gas (LNG) prices as vessel redirection opportunities imply that production should not be directly affected, Goldman Sachs said. Oil prices advanced on Tuesday, extending gains from the previous session, as attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels. O/R Oil major BP BP.L temporarily paused all transits through the Red Sea and oil tanker group Frontline FRO.OL said on Monday its vessels would avoid passage through the waterway, signaling that the crisis was broadening to include energy shipments. "We do estimate that a hypothetical prolonged redirection of all 7 million barrels per day of gross (Northbound and Southbound) oil flows would raise spot crude prices relative to long-dated prices by $3-4/per barrel," the investment bank said in a note dated Monday. (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 9590227221; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Scott Murdoch SYDNEY, Dec 19 (Reuters) - Investors in Australian lithium producer Allkem AKE.AX voted on Tuesday to accept a $10.6 billion merger offer from U.S. giant Livent LTHM.N that would create one of the world's biggest lithium companies. Proxy votes for the deal indicated 53% of Allkem shareholders had voted, with 89% of those in favour, said Allkem Chairman Peter Coleman. Final results will be announced to Australia's securities exchange later on Tuesday. Livent last week said it had received all regulatory approvals for the deal to proceed that will create a company called Arcadium Lithium. Its shareholders will vote later on Tuesday. Arcadium Lithium will have a sprawling footprint across major producing regions Australia, Argentina and Canada, and will operate across the supply chain from mining to delivering finished chemicals to battery-maker customers. Under the deal, Allkem shareholders will get one share in Arcadium Lithium for each of their shares, and they will ultimately own 56% of the new firm. Livent shareholders will get 2.406 shares in the new firm for each existing share and Livent CEO Paul Graves will take the top job. The new company will be the world's third-biggest producer of the key metal used in electric vehicle batteries, behind U.S.-based Albemarle ALB.N and Chile's SQM SQMA.SN. The transaction has been recommended by independent experts in a report compiled by financial advisors Kroll. Major proxy advisory firms have also recommended investors vote in favour of the deal. Livent's Graves told Reuters in November the new company would be keen to expand its existing asset base in Western Australia's world-class lithium districts. (Reporting by Scott Murdoch in Sydney and Melanie Burton in Melbourne; Editing by Christopher Cushing) ((Scott.Murdoch@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	(RTTNews) - Gogoro Inc. and Uber Eats Taiwan announced a Green Delivery Program, aiming to simplify and reduce costs for Uber Eats delivery partners transitioning to electric scooters. The two-year partnership is worth about US$30 million and is being funded by both companies. Delivery partners will receive discounts on new Gogoro Smartscooters and battery swapping programs, and be given incentives for deliveries on Gogoro Smartscooters. Through the program, Uber Eats expects EV deliveries in Taiwan to double from nearly 20% to 40% of all trips by the end of 2025. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	It's always thrilling to find a stock spring-loaded for a quick gain. I can't promise exactly when, but by golly, this stock is undervalued for all the wrong reasons and ready to run as soon as the market makers realize what they've been missing. You know? But some of these potential jumps may be short-lived. Perhaps that magical growth catalyst is a one-time event, never to be repeated, that won't leave any lasting benefits for the target company. And it's not easy to pin down the best time to sell these gadfly rocket ships. Miss the peak by a day or two, and your coveted win may evaporate before you cash in the winning chips. Nailing the top of a temporary spike is pretty much impossible -- just ask master investor Warren Buffett. So what I really want to find on my daily treks through Wall Street is a stock that looks ready to deliver robust price gains -- with staying power for the long haul. I don't even care if the next big jump is coming next week or two years from now, as long as I can be reasonably sure that the shares should gain value over time. In my view, the perfect stock belongs to a company in the early days of an unstoppable growth story, and the price-setting market makers insist that it's not going to work. As a result, the stock under my microscope in this case would deserve a much higher price as the growth story plays out. If you bought Netflix (NASDAQ: NFLX) stock in the low-price paradise of the Qwikster debacle in 2011, you're speaking my language. The Netflix shares I added in October that year have posted a 3,850% gain so far, and I never doubted the long-term outcome. Switching the business focus from DVD mailers to digital video streams was the right idea, even if the shift was executed with the grace of a newborn moose on black ice. I didn't dare -- and would never recommend -- betting the whole farm on Netflix back then, but it was a no-brainer move to add some more shares of the entertainment pioneer to a diversified portfolio. So let me show you two of the absolute best buys in today's market, based on that analysis of undervalued growth stocks offering tremendous long-term value for shareholders. Like Netflix in 2011, they strike me as future juggernauts with low stock prices today. Buy them now, hold them forever, and watch your wealth grow over time. That's the idea. Amazon The first name on my list of essentially eternal growth stories is Amazon.com (NASDAQ: AMZN). The e-commerce and cloud computing colossus needs no introduction. I'm sure you already heard that management always wants to run the company as if it's "day one" with a brand new start-up. That attitude shows in Amazon's business results. Sales added up to a massive $281 billion in fiscal year 2019. Why stop there? Today, Amazon's revenues over the last four quarters work out to $554 billion. That's a 97% increase in less than four years. And just like a hungry little start-up, Amazon is happy to invest in growth-boosting ideas even if it results in soft or negative profits in the short term. Unadjusted earnings and free cash flows were printed in red ink last year as Amazon invested billions of dollars in its one-day shipping network and the Amazon Web Services cloud computing platform. Just another year in the history of a company that always puts the customer experience first, at any cost. "We realize that we exist to make customers' lives better and easier every day, and relentlessly want to do so," CEO Andy Jassy said in last year's fourth-quarter earnings call. "And being maniacally focused on the customer experiences is always going to be a top priority for us." That's exactly what I want to hear from the leaders of a trillion-dollar company. Push that pedal to the metal until you have exhausted the opportunity for further growth. Even then, I'd rather see the company taking a sharp left turn into a greater long-term opportunity than settle down for slow growth and generous dividends. Stop me if you've heard this before, but Netflix did exactly that in 2011. And of course, that forward-looking plan isn't always popular with Wall Street's market makers. Amazon's shares have posted a solid 79% gain year-to-date but the stock still sits 21% below the all-time highs in the summer of 2021. If you pick up some Amazon shares at this comfortable price point, I expect that investment to serve you well for decades to come. Toast Alongside the giant Amazon, there's Toast (NYSE: TOST), a disruptive challenger in the restaurant tech space. Currently trading at 2.5 times sales and down 6.6% year-to-date, Toast's market value belies its potential. It's not just a blip on the radar. Toast is transforming how restaurants operate, from point-of-sale to payroll. And the company isn't afraid to try some unique tactics. For example, Toast recently infused some artificial intelligence (AI) smarts into its services by adding a voice-controlled assistant. The AI-powered tool from SoundHound (NASDAQ: SOUN) can take orders over the phone or the drive-through window, help the restaurant staff manage their tables and tickets, and answer customer questions about the menu. Toast is a disruptor at heart. Its point-of-sales hardware is sold at a loss in order to inspire stronger sales and unbreakable customer loyalty. Adding some AI brains to the system is a natural move and it sets this company apart from larger and wealthier rivals like Block (NYSE: SQ). The stock might be down now, but its innovative platform suggests it's a long-term play waiting to be recognized. That makes Toast another great growth stock to buy now and hold forever. Should you invest $1,000 in Toast right now? Before you buy stock in Toast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Amazon and Netflix. The Motley Fool has positions in and recommends Amazon, Block, and Netflix. The Motley Fool recommends Toast. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Even Warren Buffett wouldn't buy every stock in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio at this point. We know that for sure for a simple reason: He hasn't been scooping up more shares of most of them. However, there are some stocks that Berkshire owns that a strong case could be made that the Oracle of Omaha should still be buying. Here are three no-brainer Buffett stocks to buy right now. 1. Amazon Buffett (or, more likely, one of his two investment managers) trimmed Berkshire's position in Amazon (NASDAQ: AMZN) a little in the third quarter of 2023. I think, though, that this is absolutely a Buffett stock worth buying. For one thing, Amazon has become a profit machine of late. Throughout much of its history, posting big profits wasn't much of a priority for the company. Now, however, Amazon's management is laser-focused on the bottom line -- and it shows. In Q3, the company's earnings more than tripled year over year to $9.9 billion. More importantly, Amazon's growth prospects look terrific despite the company already claiming a lofty market cap north of $1.5 trillion. I'm especially optimistic about the opportunities for Amazon Web Services (AWS). The generative AI boom should continue for years to come. As the leading cloud services platform, AWS is poised to be a prime (no pun intended) beneficiary. I also like that Amazon continues to adhere to the "it's still day one" philosophy preached by founder and former CEO Jeff Bezos. The company is still expanding into new markets, as evidenced by its recent moves into primary care and selling cars online. Bezos used to say rhetorically to other companies, "Your margin is my opportunity." His words still ring true for Amazon. 2. Bank of America There's no question that Buffett likes Bank of America (NYSE: BAC) quite a bit. It's the second-largest holding in Berkshire's portfolio. He even added to the position earlier this year. The price is right for Bank of America, in my view. The big bank's shares trade at a forward earnings multiple of under 9.3. Its price-to-book ratio is only 0.94. This attractive valuation is due in large part to the banking crisis that's still weighing on many bank stocks. However, BofA doesn't face the same risks that smaller banks do with its rock-solid balance sheet. Some might question that Bank of America is a no-brainer stock to buy right now because of the potential that a recession is coming. But the economy appears to be humming along nicely with inflation moderating, reasonable job growth, and a robust gross domestic product. Even if the U.S. economy enters into a recession, Bank of America is built to weather such storms. The company stands out as one of the most innovative banks in the world. Its continued investment in technology should enable BofA to remain a global financial leader for years to come. 3. D.R. Horton Buffett invested heavily in housing stocks in Q2 of 2023. D.R. Horton (NYSE: DHI) ranks as the biggest purchase of the group, with Berkshire now owning nearly 6 million shares. The stock has been a huge winner this year, skyrocketing over 60%. Even with this sizzling performance, though, D.R. Horton's valuation is more than reasonable with its forward earnings multiple below 10.7. I think the near term could bring good news for the company. The latest CNBC Fed Survey found that most economists look for interest rate cuts to begin in June 2024. If they're right, we could see new housing construction take off yet again. The long-term looks great for D.R. Horton, too. There's still an overall housing shortage in the U.S. As the nation's largest homebuilder, the company is poised to help meet the pent-up demand. Should you invest $1,000 in D.r. Horton right now? Before you buy stock in D.r. Horton, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and D.r. Horton wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	eBay stock (NASDAQ: EBAY) currently trades at $43 per share, around 47% below (89% upside) its level of $81 on October 23, 2021 (pre-inflation shock high), and seems undervalued. EBay saw its stock trading at around $42 at the end of June 2022, just before the Fed started increasing rates, and is trading 2% above that level now. In comparison, the S&P 500 gained about 25% during this period. The stock price has struggled over the recent quarters due to a couple of factors such as lower website traffic, and a drop in the gross merchandise value (GMV). It was due to tough macroeconomic conditions and normalization of consumer buying behavior post-pandemic. Amid the current financial backdrop, eBay stock has seen little change, moving slightly from levels of $50 in early January 2021 to around $45 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. Overall, the performance of eBay stock with respect to the index has been lackluster. Returns for the stock were 32% in 2021, -38% in 2022, and 3% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 23% in 2023 (YTD) – indicating that EBAY underperformed the S&P in 2022 and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Discretionary sector including AMZN, TSLA, and HD, and even for the megacap stars GOOG, MSFT, and AAPL. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could EBAY face a similar situation as it did in 2022 and 2023 and underperform the S&P over the next 12 months – or will it see a strong jump? Returning to the pre-inflation shock level means that EBAY stock will have to gain around 89% from the current levels. However, we do not expect that to materialize anytime soon and estimate eBay’s valuation to be around $46 per share. Our detailed analysis of eBay’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock’s performance during the 2008 recession. 2022 Inflation Shock Timeline of Inflation Shock So Far: 2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up. Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply April 2021: Inflation rates cross 4% and increase rapidly Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels. October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since July 2023: Fed keeps interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards. In contrast, here’s how EBAY stock and the broader market performed during the 2007/2008 crisis. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) EBAY and S&P 500 Performance During 2007-08 Crisis eBay stock declined from nearly $15 in September 2007 (pre-crisis peak) to below $4 in March 2009 (as the markets bottomed out), implying EBAY stock lost almost 73% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $9 in early 2010, rising 117% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124. EBAY Fundamentals Over Recent Years eBay revenues increased from $7.4 billion in 2019 to $8.9 billion in 2020 because of the Covid-19 crisis. Further, it improved to $10.4 billion in 2021, before declining to $9.8 billion in 2022. Similarly, earnings increased from $2.10 in 2019 to $20.87 in 2021, before decreasing to -$2.27 in 2022. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe eBay (EBAY) stock has the potential for strong gains in the long term once fears of a potential recession are allayed. Returns Dec 2023 MTD [1] 2023 YTD [1] 2017-23 Total [2] EBAY Return 4% 3% 44% S&P 500 Return 3% 23% 111% Trefis Reinforced Value Portfolio 7% 37% 601% [1] Month-to-date and year-to-date as of 12/15/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	In this week's video, I cover need-to-know news items related to Tesla (NASDAQ: TSLA) during the week of Dec. 11. Today's video will focus on Tesla's sales numbers in China and Europe, Tesla's humanoid robot, some announcements that might impact the company in 2024, and a look at Tesla stock from a technical analysis standpoint. You can find last week's summary here. Stock prices used were from the trading day of Dec. 15, 2023. The video was published on Dec. 16, 2023. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Rozenbaum has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	At my age, I'm still 25 to 30 years away from retirement. Therefore, readers need to understand that at this stage of life, I'm primarily concerned with growing the value of my portfolio. My decisions might not be as conservative as others. For those closer to retirement, preservation of capital might be a bigger concern than growth. As of this writing, MercadoLibre (NASDAQ: MELI), Axon Enterprise (NASDAQ: AXON), United Rentals (NYSE: URI), Crocs (NASDAQ: CROX), and Tanger (NYSE: SKT) make up 40% of my portfolio's value. Many advisors would probably tell me to reduce my exposure to these five stocks and to diversify more. However, I don't plan to make any changes to my top five holdings. While the professionals have their reasons for suggesting greater diversification, I intend to apply principles from investing greats Peter Lynch and Warren Buffett and keep everything with my top holdings the same. Here's what Lynch and Buffett have to say In his 1988 letter to Berkshire Hathaway shareholders, Buffett wrote: "We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint. Peter Lynch aptly likens such behavior to cutting the flowers and watering the weeds." In other words, Buffett agrees with Lynch on a specific investing approach. They hold on to shares when those companies perform well, and they sell shares when those businesses disappoint. Most portfolio-building approaches do the opposite; they book their gains by selling winners while doubling down on losers. For perspective, the five stocks I'm highlighting in this article make up just 18% of my portfolio's cost basis -- a very mundane average allocation of about 3.5% each. I've invested more money into other stocks in my portfolio. The difference is that all five of these stocks have gone up significantly since I first purchased shares, whereas many others have dropped. In short, my portfolio concentration at the top is a natural outcome of what's worked and what hasn't. This wasn't a deliberate choice up front. Why I keep holding If these five businesses started underperforming at some point, then perhaps I would trim these positions. But as far as I'm concerned, all five are flowers that are currently still blooming, and I want to keep them firmly planted in my garden. Here's a brief investment thesis for each of these five companies that explains why I'm still holding. 1. MercadoLibre MercadoLibre operates in Latin American markets, such as Brazil, Argentina, and Colombia, and has generated $10.2 billion in net revenue through the first three quarters of 2023. That's up 10 times from the same period five years ago, reflecting just how high-growth its opportunity is. The company serves ongoing needs in Latin America, such as digital payments and e-commerce, and this should keep growth going in the future. As the chart shows, the company's operating profit is skyrocketing, which is a good thing for long-term shareholders. MELI Revenue (TTM) data by YCharts 2. Axon Enterprise Axon Enterprise offers Tasers, body cameras, and time-saving software to law enforcement agencies around the country. As one might imagine, this isn't an easy business to break into generally. Companies need reputable track records to secure contracts, and deals with law enforcement agencies tend to be long-lasting. With its track record, Axon has built a large, recurring revenue stream with agencies around the country, and its backlog of orders continues to grow. Moreover, the company's track record is allowing it to break into new opportunities, such as with federal agencies and in international markets, which can continue to drive long-term shareholder returns. 3. United Rentals United Rentals is one of the best-performing stocks over the past decade, with shares up more than 650% in value. And yet the largest equipment-rental company in the U.S. is still relatively unknown to investors. This highlights how boring the market finds this space. In this case, boring is good. United Rentals is a very profitable company with a long record of strong free cash flow generation. And because investors tend to ignore the space, the company can often buy out competitors at cheap valuations. This allows it to quietly grow while gobbling up market share, leading to higher profits down the road. It's a simple yet effective path to creating shareholder value and it's why I keep holding my shares of United Rentals. 4. Crocs Crocs expects to generate nearly $4 billion in revenue this year, which is pretty huge for a shoe stock. Due to its already large size, I don't necessarily expect the company to take the world by storm in coming years. That said, Crocs has a fantastic operating margin of around 26%, as the chart shows, which makes it attractive to me as an investment. With strong profitability, Crocs can do simple things that boost shareholder value, such as repurchasing shares and reducing its long-term debt. And trading at less than 10 times its trailing earnings, the stock is cheap enough to be a winner with even modest growth -- I wouldn't expect its valuation to fall much from here. CROX Operating Margin (TTM) data by YCharts 5. Tanger Tanger is a real estate investment trust (REIT) that owns 39 outlet malls and open-air shopping centers. Many of its tenants are in the discretionary sector, which admittedly is a little risky. That said, the company has long enjoyed occupancy rates at around 98%, which also happened to be its occupancy rate as of the third quarter of 2023. This company has a chance to meaningfully increase cash flow in coming years. Almost 60% of its current annual base rate rents are due for renewal between now and the end of 2026. Raising rents would increase cash flow and potentially increase the money available for dividends. As a REIT, Tanger is obligated to pay a percentage of its profits out as dividends. It already provides a high yield at about 4%, but that could increase in a big way. The company would have to raise its dividend by almost 50% to fully recover to where it was before the pandemic -- business is back, so this seems doable. Moreover, if it can steadily increase rents in coming years, then that adds extra cash flow to boost dividends even further. Holding on for the ride Over time, my bad investments have dropped in value, whereas the five stocks mentioned here have jumped. By leaving things alone, this has caused my portfolio to naturally concentrate around my winners. And since I still see good things ahead for my top five, I don't plan to trim or sell any of these positions in the coming year. This might make my returns a tad more volatile in 2024 -- fewer stocks can have larger impacts on overall returns. However, I believe the bigger risk would be to sell shares of winning companies when they still have so much ahead of them. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and MercadoLibre made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jon Quast has positions in Axon Enterprise, Crocs, MercadoLibre, Tanger, and United Rentals. The Motley Fool has positions in and recommends Axon Enterprise, Berkshire Hathaway, and MercadoLibre. The Motley Fool recommends Crocs and Tanger. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	[Note: HAS’ fiscal year 2022 ended December 25, 2022] Hasbro (NASDAQ: HAS) is one of the largest makers of toys and games. The toymaker is known for brands like Transformers and board games like Monopoly. The company’s stock currently trades at $50 per share, around 52% below its level of $104 seen on January 4, 2022 (pre-inflation shock high), and has the potential for gains. However, the company’s large debt obligation presents a risk to this upside. Lower demand across the business has pressured Hasbro’s profitability since last year, which has weighed on the stock. Hasbro reported net revenue of $1.5 billion in the recent Q3, which was down 10% year-over-year (y-o-y). It also saw diluted earnings per share of -$1.23 in Q3 2023 compared to 93 cents per share in Q3 2022. However, the company’s adjusted net income rose 16% y-o-y to $228 million, i.e. $1.64 per share in adjusted earnings. Retail conditions are tough right now, and the toymaker predicted the crucial holiday quarter might not turn out as well as expected. Management lowered its guidance for FY 2023 due to the weak performance in consumer products. It now sees total revenue falling 13%-15%, compared to an earlier forecast of just a 3%-6% decline. It expects a drop of 25% to 30% in the entertainment business and a moderation of growth in the digital gaming segment. While Hasbro continues to transform its business to focus on profitable growth, it faces a long road ahead. HAS stock has suffered a sharp decline of 45% from levels of $95 in early January 2021 to around $50 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. Notably, HAS stock has underperformed the broader market in each of the last 3 years. Returns for the stock were 9% in 2021, -40% in 2022, and -18% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 23% in 2023 (YTD) – indicating that HAS underperformed the S&P in 2021, 2022, and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Discretionary sector including AMZN, TSLA, and HD, and even for the megacap stars GOOG, MSFT, and AAPL. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could HAS face a similar situation as it did in 2021, 2022, and 2023 and underperform the S&P over the next 12 months – or will it see a recovery? Returning to the pre-inflation shock level means that HAS will have to gain about 108% from here. While it has the potential to recover to those levels, we estimate HAS’ Valuation to be around $44 per share, almost 8% lower than the current market price. Our detailed analysis of Hasbro upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock’s performance during the 2008 recession. 2022 Inflation Shock Timeline of Inflation Shock So Far: 2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers were unable to match up. Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply April 2021: Inflation rates cross 4% and increase rapidly Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels. July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since August 2023: Fed keeps interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards. In contrast, here’s how HAS stock and the broader market performed during the 2007/2008 crisis. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) HAS and S&P 500 Performance During 2007-08 Crisis HAS stock declined from nearly $30 in October 2007 (pre-crisis peak) to around $23 in March 2009 (as the markets bottomed out), implying that HAS stock lost almost 23% of its pre-crisis value. It recovered from the 2008 crisis to levels of around $32 in early 2010, rising roughly 40% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124. Hasbro Fundamentals Over Recent Years HAS revenues grew 36% from around $4.7 billion in FY 2019 to about $6.4 billion in FY 2021, due to the impact of Covid-19. However, sales fell to $5.9 billion in FY 2022 due to softer industry trends. Earnings per share declined from around $4.09 in FY 2019 to $3.11 in FY 2021 and fell further to $1.47 in FY’22. The reason for this decline was inflation curbing consumer spending and a tougher macro environment across the toys and entertainment sector. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe HAS stock has the potential for strong gains once fears of a potential recession are allayed. That said, the pressure on the company’s balance sheet remains a significant risk factor to the realization of these gains. It is helpful to see how its peers stack up. HAS Peers shows how Hasbro stock compares against peers on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons. Returns Dec 2023 MTD [1] 2023 YTD [1] 2017-23 Total [2] HAS Return 8% -18% -36% S&P 500 Return 3% 23% 110% Trefis Reinforced Value Portfolio 4% 33% 584% [1] Month-to-date and year-to-date as of 12/14/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Tech stocks have continued to roar this year with the Nasdaq now up +42% in 2023 but diversification can be healthy for the portfolio and a few basic materials stocks are standing out at the moment. Added to the Zacks Rank #1 (Strong Buy) list this week here are three basic materials stocks that investors shouldn't overlook right now. Centrus Energy LEU Soaring +65% this year, Centrus Energy’s stock is worthy of investors' consideration as a supplier of enriched uranium fuel for commercial nuclear power plants. Centrus also provides contract work services for the U.S. Department of Energy and its contractors. Despite this year’s impressive rally, Centrus’ stock still trades at a reasonable 20.1X forward earnings multiple and annual earnings estimates for fiscal 2023 have soared 30% over the last 60 days from projections of $2.00 a share to $2.61 per share. Plus, FY24 EPS estimates are up 6% in the last two months and its noteworthy that Centrus most recently crushed its third quarter earnings expectations by 100% in November with earnings coming in at $0.52 per share compared to estimates of $0.26 a share. Image Source: Zacks Investment Research Ryerson RYI Steel producer and metal distributor Ryerson Holding Corporation has seen its stock rise a modest +8% in 2023 but there is deep value that suggests more upside. Through its subsidiaries, Ryerson purchases, processes, and distributes various forms of stainless steel, aluminum, carbon, alloy steel, nickel, and red metals. Trading at a very reasonable 9X forward earnings multiple, Ryerson’s FY23 earnings estimates have jumped 18% over the last 60 days with FY24 EPS estimates up 5%. Making Ryerson’s stock more attractive is that the company offers a generous 2.28% dividend yield which it has increased nine times in the last five years and is nicely above the Zacks Steel-Producers Industry average of 1.99% and the S&P 500’s 1.39%. Image Source: Zacks Investment Research Sylvamo SLVM Lastly, paper producer Sylvamo Corporation’s stock looks attractive with annual earnings estimates for fiscal 2023 up 5% over the last 60 days while FY24 EPS estimates have risen 6%. Sylvamo’s stock is virtually flat for the year but is up +48% in the last three years which tops the S&P 500’s +27% and the Nasdaq’s +17%. To that point, Sylvamo has a unique niche in transforming renewable resources into papers for education, communication, and entertainment. Plus, Sylvamo’s stock trades at just 7.5X forward earnings with the rising EPS estimates offering further support and the company has a global footprint that includes mills in North America, Europe, and Latin America. It’s also noteworthy that Sylvamo offers a very respectable 2.56% annual dividend yield that is below its industry average of 4.52% but comfortably tops the S&P 500’s average. Image Source: Zacks Investment Research Takeaway Positive earnings estimate revisions have become very appealing for these basic materials stocks considering their reasonable P/E valuations. This is reason to believe that Centrus Energy, Ryerson, and Sylvamo’s stock could have a nice amount of upside especially as market sentiment remains higher. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report Ryerson Holding Corporation (RYI) : Free Stock Analysis Report Centrus Energy Corp. (LEU) : Free Stock Analysis Report Sylvamo Corporation (SLVM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Nvidia (NASDAQ: NVDA) entered the $1 trillion market cap club this year thanks to a red-hot run in the stock market fueled by super high demand for its graphics processing units (GPUs) for training artificial intelligence (AI) models. Share prices of Nvidia have surged 226% in 2023. It now has a market cap of $1.2 trillion, which makes it the sixth-largest company in the world. Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. Let's see why. Apple hasn't been able to match Nvidia's growth Over the past seven years, Nvidia's market cap has jumped an astonishing 2,300%, which is significantly higher than Apple's growth of just over 400% during the same period. NVDA market cap data by YCharts. It is easy to see why this has been the case. The market has rewarded Nvidia for the tremendous growth in its revenue and earnings over the years, driven by the growing applications of the company's GPUs in multiple industries ranging from computers to data centers to cars and even factories. Apple's growth, on the other hand, has been slower than Nvidia's. Again, that's not surprising as Apple operates in markets that have reached their saturation points. NVDA revenue (TTM) data by YCharts; TTM = trailing 12 months. For instance, sales of smartphones were flat in the third quarter of 2023, according to market intelligence firm IDC. Meanwhile, personal computer (PC) shipments are set to drop almost 14% this year. The state of these markets explains why Apple's revenue in fiscal 2023 (which ended on Sept. 30, 2023) fell almost 3% year over year to $383 billion. Its adjusted earnings were almost flat year over year at $6.13 per share. Apple got two-thirds of its revenue from selling smartphones and personal computing devices such as iPads and MacBooks in the previous fiscal year. Also, there is a lot of competition in these markets thanks to the presence of multiple participants. For example, Apple is the second-largest smartphone manufacturer, but it has a market share of just under 18%. The company's share of the PC market stands at 10.6%, making it the fourth-largest player in this space. Sales of both PCs and smartphones aren't expected to increase significantly in the long run. IDC expects the PC market to clock a compound annual growth rate (CAGR) of just 3.1% through 2027. Smartphone shipments are expected to have an even slower CAGR of 1.7% over the next four years. Not surprisingly, analysts aren't expecting much of an acceleration in Apple's growth, which is evident from the following chart. AAPL revenue estimates for current fiscal year; data by YCharts. And the company's earnings are expected to increase at an annual pace of just 6% over the next five years. That's way slower than the 21% annual earnings growth Apple clocked in the past five years. Assuming it can sustain 6% earnings growth for the next seven years, its bottom line could increase to $9.20 per share in 2030 (using its fiscal 2023 earnings of $6.13 per share as the base). If we multiply the projected 2030 earnings with Apple's five-year average forward earnings multiple of 24, the stock price could jump to $221 by the end of the decade. That would be an increase of just 15%, indicating that its market cap could hit $3.45 trillion in 2030. Nvidia, on the other hand, is expected to clock annual earnings growth of a whopping 112% for the next five years. Let's see why that's the case, and check if that would be enough to help the company overtake Apple's market cap by 2030. Nvidia is sitting on a massive growth opportunity While Apple is struggling with saturated and crowded markets, Nvidia is the dominant force in the rapidly growing market for AI chips. It is estimated that the global AI chip market could hit $304 billion in annual revenue in 2030 as compared to $20 billion in 2021. Nvidia controls between 80% and 95% of this market, as per various third-party estimates. This, however, is not the only massive growth opportunity Nvidia could benefit from over the next seven years. Including cloud gaming, automotive uses, and digital twins, there are multiple lucrative markets that the company could take advantage of. It estimates its total addressable market to be worth $1 trillion spread across multiple end markets. The company is expected to finish its ongoing fiscal year with almost $59 billion in revenue, which would be a jump of 118% over the prior year. So, there is still a lot of room for growth for Nvidia, which explains why analysts consistently raise their estimates. NVDA revenue estimates for current fiscal year; data by YCharts. Assuming Nvidia manages to hit $107 billion in revenue in fiscal 2026, its three-year revenue CAGR would stand at an impressive 58% based on its fiscal 2023 revenue of $27 billion. If the company manages to sustain a relatively conservative long-term revenue growth rate of 25% from fiscal 2027 to fiscal 2031 (which will coincide with calendar 2030), its top line could hit $325 billion by the end of the decade. Nvidia has an average five-year price-to-sales ratio of 20. Assuming it trades at a discount 15 times forward sales in 2030, its market cap could jump to almost $4.9 trillion in 2030. As such, there is a chance of Nvidia overtaking Apple's market cap in the long run, and this won't be surprising given how fast the former is anticipated to benefit from multiple growth drivers. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Sponsored Links This house is only 27 sq. ft. but when you see the inside you'll want it! Tips and Tricks Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Quipt Home Medical Corp. (QIPT) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of $0.02. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -250%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced a loss of $0.03, delivering a surprise of -200%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Quipt Home Medical Corp., which belongs to the Zacks Medical - Products industry, posted revenues of $62.52 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 1.69%. This compares to year-ago revenues of $40.09 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Quipt Home Medical Corp. Shares have lost about 7.9% since the beginning of the year versus the S&P 500's gain of 22.9%. What's Next for Quipt Home Medical Corp. While Quipt Home Medical Corp. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Quipt Home Medical Corp. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $66.9 million in revenues for the coming quarter and $0.10 on $279.45 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Neogen (NEOG), is yet to report results for the quarter ended November 2023. This maker of medical testing kits is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Neogen's revenues are expected to be $236.69 million, up 2.9% from the year-ago quarter. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report Quipt Home Medical Corp. (QIPT) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	This year hasn't been kind to biotech stocks, which as a group haven't kept pace with the broader market. The performance of the SPDR S&P Biotech ETF makes that clear. Leading drugmaker Amgen (NASDAQ: AMGN) has had a better showing, but it has still substantially trailed the S&P 500. Still, long-term investors will want to know whether the drugmaker can deliver solid results over the long run -- and one year's worth of underperformance doesn't tell us much either way. For that, let's look into what's going on with Amgen and decide whether buying the biotech's shares today is worth it. AMGN data by YCharts Will top-line growth bounce back? Amgen's revenue hasn't been growing at a good clip, for the most part, over the past few years. The company is dealing with increased competition, sometimes generic and sometimes not, for some of its key products. In the third quarter, revenue rose by nearly 4% year over year to $6.9 billion. That's not bad by the standards the drugmaker has set over the past three years. AMGN Revenue (Quarterly YoY Growth) data by YCharts Still, investors will want the biotech to deliver consistent top-line growth. Amgen has tried to remedy the situation by launching new products. One of them was Tezspire, an asthma treatment developed with AstraZeneca. The other was cancer medicine Lumakras, whose claim to fame was to be the first to target a mutation present in about 13% of lung cancer patients. They haven't been on the market for that long, and neither is generating anywhere near enough sales to meaningfully impact Amgen's revenue yet. For instance, Tezspire's revenue in the third quarter was just $161 million, although that was an increase of 192.7% year over year. Amgen also seized on capturing some of the multibillion-dollar market that became available when Humira lost patent exclusivity earlier this year. The company's generic version of the immunology medicine, Amjevita, generated $152 million in sales in Q3, up 30% year over year. Amgen's biggest growth drivers for the quarter included osteoporosis medicine Prolia, whose revenue of $986 million jumped 14% versus the prior-year period. The biotech also recently completed the acquisition of Horizon Therapeutics for about $28 billion in cash. The key asset from the transaction was Tepezza, the first and only medicine approved by the U.S. Food and Drug Administration to treat thyroid eye disease. Tepezza was first given the green light in early 2020, and the pandemic disrupted its initial launch because most ophthalmologists' offices initially closed. Horizon Therapeutics did find a way to reach out directly to patients. However, the backing of Amgen -- whose funds, sales team, and relationships in the healthcare industry are likely far greater than Horizon's -- should help improve things. Further, Amgen can look to its pipeline, too. The company is developing several biosimilar products. It is betting on this market because most patients in the U.S. think prescription drug prices are too high, so there is a substantial need for cheaper options. Amgen is also developing brand-new products of its own, in addition to the many label expansions it should receive for its existing therapies. While the past three years have been volatile on the top line for Amgen, this was a highly unusual period for any business given the pandemic. In my view, the company's revenue should stabilize within a couple of years and start moving in the right direction consistently again. Amgen's strong dividend program Amgen stock should appeal to income-seeking investors. The company's dividend yield of 3.14% is nearly twice the S&P 500's 1.62%. The biotech has raised its dividend by almost 47% in the past five years alone, while its cash payout ratio of 47.5% still looks reasonable. Of course, this won't matter much if Amgen's business encounters enough issues down the line to force the company to slash its payouts, but that seems unlikely. Even amid the pandemic and the associated economic troubles -- both marketwide and company-specific ones -- the drugmaker has continued to reward shareholders with dividend hikes. That speaks volumes about the strength of Amgen's underlying business. As things improve for the company, which they will as older products begin to have less of an impact on its financial results, Amgen's dividend program should remain one of its brightest spots. While the biotech doesn't offer an exciting business like those that focus on artificial intelligence, nor will it be a high-growth stock, Amgen is an excellent pick for risk-averse dividend investors focused on the long game. Should you invest $1,000 in Amgen right now? Before you buy stock in Amgen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amgen wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 7, 2023 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SPDR Series Trust-SPDR S&P Biotech ETF. The Motley Fool recommends Amgen and AstraZeneca Plc. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	(RTTNews) - Anson Funds Management LP and Anson Advisors Inc., the co-investment advisers of certain investment funds and significant shareholders of Gildan Activewear Inc. (GIL), said it disagreed with the apparel manufacturer board's decision to remove Glenn Chamandy as chief executive officer given his strong track record of value creation, and is calling for his immediate reinstatement and the implementation of a formal succession planning process including the engagement of company shareholders. Anson Funds noted that the board's mishandling of the succession planning process to date and its actions thereafter have resulted in an incredibly value-destructive distraction that must be immediately addressed. Anson Funds said it is further troubled by the Board's decision to strike a backroom deal granting an individual shareholder a board seat in exchange for their support before engaging with other investors to discuss the company's approach to succession planning. Instead, company shareholders had to read about the Board's views on Chamandy in press reports, which Anson has since learned are false accusations. Specifically, the Board's commentary regarding M&A appears designed to perpetuate this distraction at the cost of what should be its key focus: succession planning. Anson Funds believes the best course of action is to immediately reinstate Chamandy, especially considering Vince Tyra seemingly lacks the skills required to lead Gildan into its next stage of growth. Last week, Gildan Activewear said its Chief Executive Officer and President Glenn Chamandy stepped down from the position and would be replaced by Vince Tyra, effective February 12, 2024. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	After performing poorly in 2022, growth stocks have largely rebounded this year, and some have far outshone the broader market's solid performance. That was the case with e-commerce giant Shopify (NYSE: SHOP) and sports streaming specialist fuboTV (NYSE: FUBO). The former is up by 112% year to date, while the latter has risen by 95%. However, these two stocks are unlikely to move in the same directions over the medium term; in fact, Shopify's prospects look much brighter than fuboTV's. Here's why. The case for Shopify Shopify made important changes to its business this year. The company increased the prices of its services, which, together with a recovering economy, helped boost its revenue. In the third quarter, Shopify's top line grew by 25% year over year to $1.7 billion. That was on the high end of the revenue growth rates it has recorded in the past year and a half. SHOP Revenue (Quarterly YoY Growth) data by YCharts. However, another change may have an even more significant impact on Shopify. The company sold its logistics business to privately held Flexport in exchange for equity in the company. The move freed up a substantial amount of cash flow that Shopify will be able to dedicate to improving its core e-commerce operations while decreasing its expenses and improving its margins. Considering that the company still isn't consistently profitable, it's unsurprising that this move pleased investors. The divestiture of its logistics arm helped boost Shopify's gross profit by 36% year over year to $901 million in the third quarter, and its gross margin of 52.6% was much better than the prior-year period's 48.5%. Its results could keep on improving next year along with the economy. Increased consumer discretionary spending should benefit the online merchants it serves and, by extension, Shopify itself. However, it's the company's long-term prospects that matter most. On that front, Shopify continues to look attractive. This isn't just because it has become the leader in its niche of providing businesses with all the tools they need to create killer online storefronts, along with key functionalities that let them sell their products across various social media platforms, among many other perks. One of the keys to Shopify's future is its widening economic moat. The company benefits from high switching costs since building (or rebuilding) an online store from scratch takes time and money. Clients could migrate to one of Shopify's competitors, but it's hardly worth the trouble. Further, Shopify's brand has become intimately linked with the services it offers. These are powerful competitive edges that should allow the e-commerce specialist to grow its client base and its revenue. There remains a massive volume of white space in e-commerce. The industry is projected to grow through the end of the decade and likely beyond. Shopify could benefit from that expansion while delivering market-beating returns on the way. The case against fuboTV FuboTV is one of many somewhat notable brands in the highly competitive streaming industry. Although it focuses much of its effort on covering the market for live sports, it offers plenty of other content. Its third quarterly results looked great, at least on the surface. Revenue increased by almost 43% year over year to $320.9 million. The company ended the period with 1.477 million subscribers in North America, an increase of 20% year over year. That was in addition to solid increases in international subscribers and average revenue per user. FuboTV even boosted its full-year guidance. It now expects revenue of between $1.319 billion and $1.324 billion, which would amount to an increase of 34% at the midpoint. Management had previously been guiding for revenue in the $1.260 billion to $1.280 billion range. That sounds great, but here's what's wrong with fuboTV's business. In the third quarter, the company's subscriber and related expenses (the money it pays to get the rights to show the content it does) came in at $286.1 million, up about 33% year over year and almost as high as its subscription revenue of $289.6 million (fuboTV also makes money from advertising and other sources). This single category of expenses gobbles up almost all of fuboTV's subscription revenue -- its largest source of sales by far. And that has been the story with the company for a while. As a result, fuboTV's gross margins are razor thin, and the company is deeply unprofitable on an operating expense basis. Further, its subscription business can be seasonal, as fans of specific sports often cancel the service during their off-seasons. In addition, it's hard to say that fuboTV has a competitive advantage. Plenty of other streaming leaders are battling with it in the world of sports, and some have much deeper pockets and are better able to handle subscriber-related costs. That puts it in a difficult position. While the streaming industry should continue flourishing in terms of overall viewership and streaming hours, it's not clear that fuboTV will deliver the kind of top-line growth it needs to consistently become profitable even on an operating basis anytime soon, despite the progress it made this year. That's why investors should stay away from this growth stock. Should you invest $1,000 in Shopify right now? Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 7, 2023 Prosper Junior Bakiny has positions in Shopify. The Motley Fool has positions in and recommends Shopify and fuboTV. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The word "revolutionary" sometimes gets thrown around a lot, but it certainly applies to Sarepta Therapeutics (NASDAQ: SRPT). This midcap biotech company has developed several treatments for Duchenne muscular dystrophy (DMD) -- even earning approval for the first gene therapy for the rare genetic illness. However, none of that has done much to help Sarepta Therapeutics' stock performance this year, as it has severely lagged the broader market. Still, there are excellent reasons to remain optimistic about the company's future. Let's take a look at them. It hasn't been smooth sailing DMD is a progressive disease that affects patients' muscles. Sarepta currently has four approved products, all targeting this condition. However, the company has encountered several clinical and regulatory issues this year that explain its poor performance. First, the U.S. Food and Drug Administration (FDA) delayed the approval of Sarepta's gene therapy for DMD, Elevidys, a one-time treatment that targets the underlying causes of the disease. It earned the green light eventually, but biotech investors don't like such delays. Second, although Sarepta is seeking to earn a label expansion for Elevidys in treating patients aged four to seven (it is currently approved for those between the ages of four and five), it hit a severe obstacle along those lines. The biotech recently reported that a phase 3 study to that effect failed to hit its primary endpoint. Sarepta still plans on requesting a label expansion for the medicine, explaining that Elevidys hit all secondary endpoints in the study and regulators in the U.S. are open to the possibility. Still, with an additional approval now a bit uncertain, it's no surprise that investors reacted by selling off Sarepta Therapeutics' stock. Why Sarepta Therapeutics is still a buy Despite challenging news on the clinical and regulatory fronts, Sarepta Therapeutics' financial results continue to move in the right direction. In the third quarter, the company's revenue of $331.8 million increased by about 44% year over year. Sarepta remains unprofitable, but the bottom line improved as well -- it reported a net loss per share of $0.46, substantially better than the net loss per share of $2.94 recorded in the year-ago period. Sarepta Therapeutics also ended the period with $1.8 billion in cash, equivalents, and restricted cash, compared to $2 billion as of the end of 2022. Importantly, the small biotech has partnered with Switzerland-based pharmaceutical giant Roche to develop Elevidys. Between that and its healthy cash balance, funding shouldn't be too much of a problem. Finally, the company has over 40 pipeline programs, including more potential DMD therapies. Although Elevidys' failure to hit its primary endpoint in its latest phase 3 study was a setback, Sarepta Therapeutics' well-established innovative ability is a major strength that should help it develop and market newer and better treatments. Further, as the biotech noted, Elevidys could still earn the label expansion it seeks. And if it does, Sarepta has estimated that it could hit peak annual sales of about $4 billion. In my view, there is still a good chance it will cross this regulatory hurdle. There aren't dozens of therapies for DMD around, and the FDA tends to be slightly more forgiving when considering medicines that target rare diseases with few effective treatments. However, even if the regulatory agency decides not to approve it, Sarepta's existing lineup and deep pipeline should lead to more products and stronger financial results down the road. Biotech investors focused on the long game should seriously consider adding shares of Sarepta Therapeutics to their portfolios. Should you invest $1,000 in Sarepta Therapeutics right now? Before you buy stock in Sarepta Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Sarepta Therapeutics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Roche Ag. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	By Stephanie Kelly Dec 19 (Reuters) - Oil prices advanced on Tuesday, extending gains from the previous session, as attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels. Brent crude futures LCOc1 rose 17 cents, or 0.2%, to $78.12 a barrel at 0112 GMT. The front-month U.S. West Texas Intermediate crude futures contract CLc1, which expires on Tuesday, rose 14 cents to $72.61 a barrel. The more active second-month contract CLc2 rose 9 cents, or 0.1%, to $72.91. Both benchmarks rose more than 1% on Monday on concerns about shippers diverting vessels away from the Red Sea. Oil major BP BP.Ltemporarily paused all transits through the Red Sea and oil tanker group Frontline FRO.OL said on Monday its vessels would avoid passage through the waterway, signs the crisis was broadening to include energy shipments. About 15% of world shipping traffic transits via the Suez Canal, which connects the Red Sea to the Mediterranean Sea, offering the shortest shipping route between Europe and Asia. The shipping attacks have prompted the United States and its allies to discuss a task force that would protect Red Sea routes, a move that U.S. and Israeli arch-foe Tehran has warned would be a mistake. In Iran, Oil Minister Javad Owji on Monday confirmed a nationwide disruption to petrol stations was caused by a cyberattack. A hacking group that Iran accuses of having links to Israel claimed it carried out the attack which disrupted services at petrol stations across the country on Monday, Iranian state TV and Israeli local media reported. Meanwhile, the United States will push shippers to disclose more information about their Russian oil dealings in a bid to enforce sanctions, U.S. officials said on Monday, while acknowledging that a big chunk of the trade has already escaped Western oversight after Russia built a parallel fleet. (Reporting by Stephanie Kelly; Editing by Sonali Paul) ((Stephanie.Kelly@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Building a better proverbial mousetrap isn't always a necessary condition for the success of a business, but doing so can help. Those corporations that break new ground often end up being handsomely rewarded, as are those investors bold enough to hold shares of these companies through thick and thin. So investors looking for stocks that can deliver above-average returns through the next 10 years (which probably describes most investors) might want to consider companies that are innovators in their respective fields. Two great examples are CRISPR Therapeutics (NASDAQ: CRSP) and Block (NYSE: SQ). Let's find out why these stocks stand a good chance of turning $1,000 into $3,500 -- amounting to a compound annual growth rate (CAGR) of 13.3% -- in the next decade. 1. CRISPR Therapeutics Gene editing refers to a set of revolutionary techniques that allow scientists to modify an organism's DNA. The field originated decades ago, but biotechs specializing in gene editing to target rare genetic diseases have made substantial progress in the past few years. CRISPR Therapeutics is one of them, and the company recently became a commercial-stage biotech. In mid-November, CRISPR earned approval for Casgevy, a one-time curative treatment for sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT) in the U.K. And on Dec. 8, Casgevy earned the green light in the U.S. for SCD. Let's count the ways in which this approval was a big deal. First, effective treatments -- much less cures -- for SCD and TDT have been challenging to develop. CRISPR Therapeutics created exa-cel and, with the help of Vertex Pharmaceuticals, got the therapy through multiple clinical and regulatory hoops. It's an impressive achievement for the smaller biotech. Second, there have been gene-editing therapies approved before, but none that use the CRISPR technique In fact, this particular method earned its creators a Nobel Prize. Perhaps that makes it an unofficial gold standard among gene-editing technologies, and Casgevy, which uses this method, is now on the market. What does all of this mean for investors? CRISPR Therapeutics is a highly innovative biotech with a pipeline full of promising CRISPR-based programs. The company will now generate the funds to push more clinical programs through its pipeline. After all, Casgevy could be looking at a market opportunity of tens of billions. It will be priced at $2.2 million per treatment course in the U.S. Let's assume that's how much Vertex Pharmaceuticals and CRISPR Therapeutics will also ask patients and insurers to pay in Europe. Given the 32,000 patients they will initially target in these regions, that amounts to $70.4 billion in potential. CRISPR Therapeutics could make substantial headway into this patient population in the next decade. Meanwhile, there should be plenty of clinical and regulatory wins for the innovative biotech, which will help catapult its stock price, especially as the gene-editing therapy space is projected to grow rapidly. CRISPR Therapeutics could be well on its way to registering that 13.3% CAGR needed to turn $1,000 into $3,500 in the next 10 years. 2. Block Block, initially known as Square, became a hit with businesses years ago thanks to its sleek, innovative hardware devices that could connect to even a smartphone and turn it into a reliable, portable point-of-sales system. The company has graduated from that and now offers substantially more services to businesses, from payroll to inventory, making its Square ecosystem very attractive. Block also has a consumer-facing unit through its peer-to-peer payment app, Cash App. It offers direct deposit, tax preparation, a debit card, stock and Bitcoin trading, and more. Both ecosystems continue to perform well. In the third quarter, Block's revenue of $5.62 billion increased by 24% year over year. The company's total gross profit was $1.90 billion, up 21% compared to the year-ago period. Square's gross profit was up 15% year over year, while Cash App's grew 27%. Block still has plenty of room to grow. One thing to keep in mind about the company is its economic moat. Cash App arguably has a network effect, with people looking to send or receive money from friends or family members getting increasingly likely to get the app as it grows in popularity. Also, once they join, it's simple to enjoy the app's other features. Furthermore, Block's Square ecosystem arguably has high switching costs since the businesses it serves depend on it for their day-to-day operations. Beyond Square and Cash App, Block owns several other offerings, including TBD, directed at developers looking to create decentralized financial services, a music streaming platform called Tidal, and Spiral, which focuses on developing Bitcoin-related applications. Still, Block's fintech ambitions remain the most promising. The industry has been on a tear, something that will continue moving forward. Block is well-positioned to profit from this fast-growing opportunity while delivering above-average returns to its shareholders in the next decade. Should you invest $1,000 in CRISPR Therapeutics right now? Before you buy stock in CRISPR Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and CRISPR Therapeutics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has nearly quadrupled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 7, 2023 Prosper Junior Bakiny has positions in Block and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Bitcoin, Block, CRISPR Therapeutics, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	If you've looked into artificial intelligence (AI), one thing is clear: The more data you have, the better trained your model will be. However, collecting data and structuring it so it's usable is a challenge in its own right. With many companies sitting on a gold mine of information without compiling it to be used, they are turning to Snowflake (NYSE: SNOW) for help. Since going public, Snowflake has been one of the fastest-growing companies on the market, which even inspired Berkshire Hathaway to take a position in the stock before it hit the public markets. Snowflake has also had a strong couple of months, rising from about $140 per share to $200. So, is this the start of an even larger movement? Or should investors be wary? Let's find out. Data is crucial for many applications Snowflake helps its clients establish a data cloud. Because it's cloud agnostic, its users can store data on whichever cloud infrastructure they'd like, or they may choose to spread it across providers to eliminate a single point of failure or prevent these companies from locking them into expensive contracts. Snowflake's software optimizes the storage of all data types, including unstructured and semi-structured, so that its users pay the cloud-computing companies less. From there, Snowflake has multiple tools that allow the data owners to utilize the data flows to inform other programs, perform data science to discover new insights, or sell the data on the Snowflake marketplace. That last capability is key for AI proliferation, as a company may be trying to develop an AI model for an e-commerce store but may be missing data from a target demographic. With the Snowflake marketplace, it can help users find data and seamlessly integrate it into another data set. Snowflake's customers also love the product, as it posted a 100% Dresner customer satisfaction score for the sixth consecutive year. Among its clients are 647 of the Global 2000, with 436 customers who spend at least $1 million annually with Snowflake, up 52% year over year. However, one metric that may concern investors is its slowing growth. Snowflake is a long way away from breaking even Snowflake is still a high-growth company, but its rates aren't nearly what they used to be. SNOW Revenue (Quarterly YoY Growth) data by YCharts While 32% year-over-year revenue growth is respectable, it's concerning because Snowflake isn't even close to breaking even. In Q3, Snowflake's operating loss was $261 million -- a 36% loss margin. Compared to last year's Q3 operating loss margin of 37%, Snowflake has made no progress in achieving profitability. But Snowflake management doesn't buy that analysis. Instead, it wants investors to disregard stock-based compensation, a non-cash expense. If you remove this from the equation, Snowflake suddenly turns profitable and increases its margins. PERIOD OPERATING PROFIT (LESS STOCK-BASED COMPENSATION) ADJUSTED OPERATING MARGIN Q3 FY 2023 $34 million 6.1% Q3 FY 2024 $46 million 6.3% Data source: Snowflake. With stock-based compensation rising at about the same pace as revenue (31%), Snowflake clearly shows no interest in becoming a profitable business in the short term. While this may concern some investors, it's not a big deal for others. That's because Snowflake is still growing quickly and attempting to capture a vital market opportunity. As a result, the stock has a premium valuation based on its massive potential. SNOW PS Ratio data by YCharts With the stock approaching previous valuation highs, I think now isn't the best time to purchase Snowflake stock. The expectations are quite elevated, and if you can be patient enough to wait for the valuation to come down to around 20 times sales, it would be a much better investment opportunity than the expensive 24 times sales it trades at now. But if you come in with a five-year mindset, the price tag you pay today may be worth it, as significant growth will drive the stock price higher, making the premium you paid for it today worth it. Should you invest $1,000 in Snowflake right now? Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Sponsored Links This house is only 27 sq. ft. but when you see the inside you'll want it! Tips and Tricks Keithen Drury has positions in Snowflake. The Motley Fool has positions in and recommends Berkshire Hathaway and Snowflake. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Etsy (NASDAQ: ETSY), a big winner early on in the pandemic, has really disappointed investors in the past couple years. A combination of slowing growth, macro headwinds, and disdain from the investment community for growth tech stocks has lowered enthusiasm for the company. It's not all bad news, though, especially for long-term investors. There are certainly compelling reasons to add this business to your portfolio. But if you're looking to buy this top e-commerce stock, you'll regret not understanding the bear case as well. Etsy's attractive qualities Right now, it might be one of the best times to buy shares of Etsy. That's because the stock has gotten absolutely crushed, currently sitting 72% below its peak price from Nov. 2021. Even in 2023, when the Nasdaq Composite index has soared 39%, Etsy is down 30% (as of Dec. 14). This presents investors with an attractive valuation. The stock trades at a forward price-to-earnings ratio of just 17.8. This is cheap for a growth-oriented, profitable company like Etsy with competitive advantages. For comparison's sake, the S&P 500 trades at a forward earnings multiple of 20.4. In the e-commerce sector, all companies vying for a share of consumer spending must figure out how to compete against the industry behemoth, Amazon. The tech giant has a sprawling logistics footprint and is known for fast and free delivery on millions of items. This doesn't make things easy. But by focusing on a niche area of the industry like unique, vintage, and handcrafted items, Etsy has built a successful platform. It continues to be the top destination for these kinds of goods. Another important aspect that makes this stock a solid investment is the network effect. Etsy's 97.3 million active buyers and 8.8 million active sellers, both figures that are up substantially in the last few years, create a favorable situation where the bigger the platform grows, the more valuable it becomes for everyone. Etsy's scale deters a new entrant from trying to build a rival marketplace from the ground up. It would be a daunting task to attract buyers and sellers to a marketplace where insufficient volume already exists. This protects Etsy's competitive position. Know the bear case The arguments for owning Etsy's stock are valid and might prompt some investors to buy the stock. However, you shouldn't ignore the bears' arguments. The first one deals with declining activity from Etsy's most loyal customers. These habitual buyers, who make purchases on at least six days in a 12-month stretch and spend at least $200 in total, declined for six straight quarters (on a sequential basis) before holding steady at 7.1 million in Q3 2023. If the business can try to engage previous buyers and encourage them to continue coming back to the site for different shopping occasions, that can be a boon financially. Plus, it could reduce marketing expenses. But this will be tough given the macro challenges going on. In fact, Etsy just laid off 11% of its workforce due to the unfavorable economic backdrop. Before investing in a stock, it's also a good idea to think about the management team's performance. To his credit, CEO Josh Silverman has done a wonderful job growing Etsy's marketplace since he took the leadership position in 2017. This is a much larger and more profitable platform. But I do question the executive team's capital-allocation skills. In Q3 2022, Etsy had to write down the goodwill on its balance sheet by $1 billion, a clear admission that management overpaid for its acquisitions of Depop and Elo7. Both marketplaces were purchased in the summer of 2021 in a strong market environment. That $1 billion translates to 10% of the company's current market cap, a substantial misstep and opportunity cost for the company. The hope is that the leadership team learns from this costly mistake and seriously improves its capital-allocation decision-making going forward. These are some of the red flags investors should pay close attention to. While I don't believe they derail the investment thesis for Etsy stock overall, they're still important details that can round out your understanding of the business. Should you invest $1,000 in Etsy right now? Before you buy stock in Etsy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Etsy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Etsy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	TOKYO, Dec 19 (Reuters) - Nippon Steel 5401.T shares sank nearly 5% early on Tuesday after it clinched a deal to buy U.S. Steel X.N for $14.9 billion in cash. The shares were trading around 3,085 yen, down 4.7% from Monday's close, after being untraded with a glut of sellers after the open. The acquisition of U.S. Steel, which prevailed in an auction for the steel giant over rivals including Cleveland-Cliffs, will help Nippon Steel move toward 100 million metric tons of global crude steel capacity. The Japanese company has not given any projection on the value of the synergies that will arise from the deal, but it is scheduled to hold a media briefing on Tuesday morning where the company's president is expected to appear. (Reporting by Mariko Katsumura; Editing by Jacqueline Wong) ((Mariko.Katsumura@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The stock market is a wealth-generating machine over the long term, even for conservative investors who buy index funds. But absolute fortunes have come to investors who took a chance on the most innovative technology stocks over the past few decades. Nvidia (NASDAQ: NVDA) was founded in 1993. It went public six years later in 1999 with a market valuation of $625 million. The company is now worth $1.2 trillion, and it has created most of that value on the back of its world-leading artificial intelligence (AI) chips for the data center. Investors who bought Nvidia stock at its initial public offering (IPO) and held until now would be sitting on a capital gain of 193,508%. In other words, a mere $520 invested back in 1999 would be worth over $1 million today. Nvidia has a history of innovation Nvidia was founded by a trio of engineers including Jensen Huang, who remains its president and CEO today. Inspired by the rise of personal computers, their goal was to bring 3D graphics to the gaming and media industries. Nvidia released its first graphics chip in 1995 and followed it up with several improved models until 1999. That was the year Nvidia launched the first-ever GPU (graphics processing unit) chip under the GeForce brand. It was 50% more powerful than the company's prior chip, and it laid the groundwork for GeForce to go on and conquer the gaming industry. But Nvidia's attention has since turned to a higher calling. The economy is shifting rapidly toward digitization, and businesses need cost-effective solutions to run their operations online. Thus evolved cloud computing, which involves businesses renting computing power from tech giants who manage centralized data centers. Nvidia's GPUs power an increasing number of those data centers, as they tend to be faster and more energy-efficient than traditional CPU (central processing unit) chips. But the recent uptake in AI technologies is accelerating demand for Nvidia's data center hardware. AI models are developed, trained, and deployed in the cloud, so cloud giants like Microsoft and Amazon are racing to get their hands on Nvidia's data center chips designed specifically for AI workloads. That includes the H100, which can speed up large language models (which power generative AI applications like ChatGPT) by 30 times over the company's previous model. But Nvidia just launched the H200, which will be twice as fast as the H100 while consuming half the amount of energy. That's a game changer for data center operators, because the new chip could drive more revenue while also reducing costs. Image source: Getty Images. Nvidia continues to obliterate all financial expectations Nvidia reports revenue under four business units: data center, gaming, professional visualization, and automotive. A couple of years ago, the gaming segment was Nvidia's largest driver of revenue. But the explosion in demand for data center chips capable of processing AI workloads -- like the H100 and upcoming H200 -- transformed the composition of the company's top line. Here's how different Nvidia's revenue base looked in the recent third quarter of fiscal 2024 (ended Oct. 29), compared to the same period just two years ago: SEGMENT % OF REVENUE IN Q3 FISCAL 2022 % OF REVENUE IN Q3 FISCAL 2024 Data center 41% 80% Gaming 45% 16% Professional visualization 8% 2% Automotive 2% 1% Other 3% 1% Data source: Nvidia. In fiscal Q3 2024 alone, Nvidia's data center revenue soared by 279% year over year to $14.5 billion. Nvidia expects to bring in $20 billion in revenue across all segments in the fourth quarter (ending Jan. 29), which is far above the $17 billion Wall Street predicted. That will take Nvidia's total revenue to $58.8 billion for fiscal 2024 -- doubling its fiscal 2023 result, which is remarkable for a company of this size. The early forecasts for fiscal 2025 point to another record year for the AI giant. It has come a long way since its first year as a public company, when it generated just $158 million in sales. Nvidia could create many more millionaires over the long term Nvidia entered 2023 with a share price of $143. It currently trades at $490, so roughly $770 billion of its $1.2 trillion valuation has been created this year alone. To be honest, Nvidia's best gains are in the rearview mirror; it's unlikely $520 invested today will turn into $1 million over the next 24 years the same way it did in the last two dozen years. The larger Nvidia gets, the harder it is to grow quickly. When a new technology like AI gathers steam, most of the company's chip sales occur in the first few years. Eventually, the market will become saturated and there won't be enough new customers to sustain Nvidia's growth. But that doesn't mean this company can't mint new millionaires over the long term. It simply means an investor will have to outlay a larger sum of money to potentially become a millionaire. For example, a $100,000 investment could become $1 million within 20 years if Nvidia can grow its revenue by 12.2% annually, on average. Considering the company is on track to grow its revenue at a compound annual rate of 28% over the last 25 years (including fiscal 2024), it's a relatively comfortable bet even if the AI tailwind eventually moderates. With that said, Huang says there is $1 trillion worth of existing data center infrastructure that needs upgrading to support accelerated computing and AI. Given Nvidia's dominant market position, it still has the potential to deliver above-trend growth for several more years, which could accelerate investors' path into the millionaire's club. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The case for not owning a stake in China's e-commerce powerhouse Alibaba Group (NYSE: BABA) has been strong enough since late 2020. That's when the rapid growth of online shopping spurred by the COVID-19 pandemic started to slow down. And that's also when regulators in Beijing began a sweeping crackdown on many of China's top technology companies. Economic malaise stemming from the country's long-lived COVID-19 lockdowns has crimped much of China's consumerism in the meantime. As the old saying goes though, nothing lasts forever. The forces that have driven Alibaba shares down more than 75% from their 2020 peak are not only quietly abating, but they may have already reversed course. Alibaba stock should do the same soon enough. Green shoots popping up in China China's economy still has problems, to be sure. Chief among them is its real estate market. Not unlike what's taken shape within the United States, China's real estate prices soared to unsustainable levels last year and early this year. Now, those prices are unraveling, although according to Oxford Economics, it could take between four and six years for the nation's real estate prices to fully stabilize. There are enough green shoots popping up elsewhere in China, however, to give Alibaba a much-needed lift. Take last month's industrial output as an example. China's factories made 6.6% more goods in November than they did in the same month a year earlier. That's not just an improvement on October's year-over-year growth pace of 4.6% -- that's the fastest growth in China's industrial output seen in nearly two years. The country's consumers are doing their part, too. Although the figure actually fell short of the expected growth of 12.5%, last month's retail sales growth of 10.1% is still impressive even if it's being compared to a lockdown-stymied year-ago number. It's also the fourth straight month China's retail consumption growth rate has accelerated. This tailwind is proving particularly bullish for e-commerce platforms like Alibaba's. The country's postal service reports it delivered a record-breaking 120 billion packages this year as of the first full week of this month, already eclipsing the entirety of last year's tally by 8.5%. Don't be surprised to see more of the same going forward as Beijing is promising more stimulus (especially on the real estate front). Alibaba is rightfully regrouping its e-commerce business Alibaba isn't just e-commerce, of course. While its Tmall and Taobao online shopping platforms were already firing on all cylinders before October and November's retail sales data showed accelerating growth in the region, these businesses only account for about half of the company's top line. The other half comes from cloud computing, logistics, digital content and apps, and localized business services. With the exception of its Cainiao Smart Logistics Network, all of these other profit centers are growing faster than Alibaba's e-commerce business; the broad economic tailwinds driving strong retail sales growth works in these non-consumer-facing businesses' favor, too. It's an overhaul of Alibaba's e-commerce arm, though, that's arguably going to light a new fire under its stock. Yes, it would be naive to ignore the advent of Temu parent PDD Holdings' e-commerce presence. It's a competitive problem for Alibaba both inside and outside of China. PDD has been working to penetrate overseas e-commerce markets, and it's also cleverly working with wholesalers and distributors (as opposed to retailers) to source many of the goods it sells online via Temu. Moreover, PDD's Temu is making inroads in overseas markets by helping brands navigate the complexities of simply selling to foreign buyers, something Alibaba arguably didn't do quite as well. Alibaba is finally responding, however. For instance, earlier this month, the company unveiled an artificial intelligence (AI)-powered chat platform built from the ground up specifically to serve southeast Asia's sellers and shoppers. It's an important development simply because the region's e-commerce market is now one of the faster-growing ones. Moreover, Alibaba's AI-powered chat tool isn't something PDD's Temu can readily replicate. It's also worth noting that this technology likely just marks the new beginning of innovation Alibaba should have been doing anyway once Temu started getting too big to ignore. As co-founder Jack Ma said in a pleading memo delivered to Alibaba employees last month, it's time for the company he created to "correct its course." Alibaba stock is worth the volatility ahead Alibaba's turning the corner. However, just because the worst of the economic headwinds are in the past and its problems are now clearly defined doesn't mean the road to recovery will be easily navigated. Expect some stumbles from the company and the stock. Any such short-term setbacks are worth waiting out for long-term investors though. Priced at only a little more than 8 times this year's projected earnings and less than 8 times next year's earnings -- which should be up 9% year over year on comparable sales growth -- this stock's got room for much more upside, even if it won't get there in a straight line. In this vein, of the 59 analysts keeping tabs on this ticker, 43 of them rate it as a strong buy. Their consensus price target of $118.66 is also 59% above the stock's present price. Analysts can be wrong, but that's a strong majority calling out the shares as undervalued given the company's known risks and prospects. Don't overthink this one. Should you invest $1,000 in Alibaba Group right now? Before you buy stock in Alibaba Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alibaba Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Sponsored Links Live a life of luxury in designer waterfront apartments. Damac Book Now James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Early retirement is the dream. But punching out early from your working years doesn't happen by accident. It takes a consistent investment plan and some great stocks along the way. Game studio Take-Two Interactive (NASDAQ: TTWO) could be a stock to help your portfolio reach that finish line. A renowned industry leader with fantastic growth prospects awaits investors. Here's what you need to know. A five-star portfolio of intellectual property Take-Two Interactive is an independent studio that develops games for consoles, computers, and mobile platforms. It's behind notable gaming franchises like NBA 2K, Red Dead Redemption, and Grand Theft Auto. It acquired major mobile game developer Zynga last year for over $12 billion, adding dozens of games, including FarmVille, Words With Friends, Empires & Puzzles, and more. Collectively, Take-Two generated over $5.4 billion in trailing-12-month revenue. Gaming is potentially a prime sector for long-term investors. Unlike television and music, which may have hit the limitations of their technology (you can't do anything besides watch and listen to traditional media), gaming is interactive. Technology has given gaming more capability over time. You can play games on mobile or consoles or computers. High-speed internet has created online gaming. Now, virtual reality is making gaming more immersive than ever before. The global gaming market could grow over 13% annually through the rest of the decade, hitting nearly $600 billion by 2030, according to Grand View Research. In that scenario, an estimated 3.32 billion people worldwide will be gamers. Having top-notch content like Take-Two Interactive does opens the company up to that rapid growth. A generational game is on the way Take-Two's recent announcement and trailer release for Grand Theft Auto VI is a testament to the point above. The trailer has a whopping 148 million views on YouTube in the 10 days since its release. For reference, the trailer for the last game in the series, Grand Theft Auto V, was released 12 years ago and has just 105 million views. Grand Theft Auto V passed 400 million lifetime units sold this year, and the decade-plus wait and obvious hype around the trailer signal the next game could do just as well or better. The game has no formal launch date, just a 2025 release window. Still, analysts are already calling for 41% revenue growth in 2025. The great thing about intellectual property is that it can be repurposed to create new growth opportunities. A successful franchise is like its own brand. The new Grand Theft Auto will likely feature different characters and plot lines from the prior games, but it's still Grand Theft Auto. There will almost assuredly be future installments of Grand Theft Auto, Red Dead Redemption, and other hits that can single-handedly elevate the company's growth. The revenue chart is lumpy in between major releases, but the long-term trend is clear: Data by YCharts. Projecting Take-Two's long-term upside Anticipation of the new Grand Theft Auto and a more bullish broader market has lifted shares to their highest price in roughly a year. Today, the stock trades at a forward P/E of 52. Analysts expect long-term earnings growth to compound at 31%. Investors should expect some volatility because the release cycle of major games makes Take-Two a somewhat cyclical business. Data by YCharts. That's less of an issue for long-term investors who want to see a company create shareholder value over time (Take-Two stock has easily outperformed the S&P 500 over the past decade). The stock's valuation has risen consistently throughout 2023, but it's not absurdly expensive with a PEG ratio under 2. The market has been on a roll recently, and the Grand Theft Auto hype is hot. Investors waiting for the market and hype to cool off might get a better buying opportunity. Nonetheless, Take-Two should be watched as a potential game changer in any long-term investor's portfolio. Should you invest $1,000 in Take-Two Interactive Software right now? Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Take-Two Interactive Software wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Even the most bullish believers in a stock have to take a hard look at their investment when it rises to new heights. Now would be a good time to do so with Meta Platforms (NASDAQ: META), as the social media giant's share price climbed to heights not seen since the holiday season of 2021. This was on the back of a good Monday for the stock, as it closed a meaty 2.9% higher over its previous trading session. The AI revolution comes to social media While Meta as a company has had its fits and stumbles this year, it's nevertheless continued to be an investor favorite. Its core asset Facebook is the property most readily associated with social media, even after years of dominance and more than a little competition for the throne. Compounding that, Meta has plunged deeply into artificial intelligence (AI), the technology that powers quite a few features on Facebook and other company sites. Investors remain hungry and unsatisfied with the still-limited numbers of AI-heavy stocks on the market, so they continue to jump into titles associated with the technology. Meta has the distinct advantage of being both a familiar property and an active AI developer. It's too early to determine which AI-infused companies are going to lead the market and enrapture the business world with their technology. At this stage, many feel that it's wisest to place bets on established tech players figuring out clever ways to enhance their business with AI. Meta definitely qualifies, and the market continues to reward it for being in this position. A fine combination of established and new Meta is already operating from a position of strength. It remains a primary destination for the type of valuable, granular advertising unavailable in most other media, and it has a massive user base. Neither of these great advantages should melt away soon to any degree; add business-enhancing tech like AI into the mix, and you've got a company that can keep winning for years to come. This means no one should worry about Meta's rising stock price. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 18, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Volkman has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Novo Nordisk (NYSE: NVO) has become one of the hottest names in healthcare. Its diabetes medication Ozempic has become a household name and a trending topic on social media. People have been using the drug to help lose weight, and they are achieving incredible results. It has been so disruptive it even has businesses in other industries, like snacking, having to answer questions about the possible implications Ozempic may have on their operations and growth prospects. Understandably, this has made Novo Nordisk stock incredibly popular with investors. This year alone, its shares are up over 40%. How large would your gains be if you had invested in the stock five years ago, before Ozempic became a game changer for the business? Where Novo Nordisk was trading five years ago On the first trading day of December 2018, you could have bought Novo Nordisk stock for about $46. If you had invested $10,000 into the stock back then, you would have acquired approximately 217 shares. Earlier this year, the healthcare company split its shares 2-for-1, which would have turned those 217 shares into 434 shares, each worth half as much -- so the event wouldn't have any direct impact on the total value of your investment. However, splitting shares and bringing down their price can help a company improve its stock's liquidity. It can also make the stock appear more attractive to retail investors. Today, shares of Novo Nordisk trade at around $95, so a stake of 434 shares would be worth approximately $41,230. That amounts to a price gain of 312%. By comparison, an equal investment in the S&P 500 would be worth around $16,800. Novo Nordisk, thanks to the soaring popularity of Ozempic, has trounced the market over the past five years. There could still be more growth to come As well as Novo Nordisk has performed in recent years, this is still a stock with plenty of room to get more valuable in the future. Ozempic isn't technically the company's weight-loss drug -- that's Wegovy, which has the same active ingredient, semaglutide, and which can be prescribed at a higher maximum dosage. Patients have simply been using Ozempic off-label for that purpose because of how effective it has been. Wegovy is still in the early stages of its rollout. In addition to the U.S., it is available in Denmark, Norway, Germany, the U.K., and Iceland. The company also plans to launch it in Japan by February. But Novo Nordisk has had to limit the rollout in some markets because supplies of the drug remain limited relative to demand. Through the first nine months of the year, Wegovy generated sales totaling 21.7 billion Danish kroner ($3.1 billion) and has accounted for 13% of the company's total revenue. Wegovy's sales are nearly 6 times what they were this time last year, and yet there is still much more growth to come. The company is planning to invest $6 billion to increase its production capacity, which should help alleviate the supply limitations and help pave the way to more revenue growth in the future for Wegovy and other drugs. It's not too late to invest in Novo Nordisk Novo Nordisk's stock surged over the past five years, but there's no reason to think that it can't continue to rise in the next five years as well. As well as the company has performed, there's still plenty of potential for Novo Nordisk to become more valuable in the future, particularly as Wegovy becomes a bigger name in weight loss. For long-term investors, now is as good a time as any to load up on shares of Novo Nordisk. The healthcare giant still has a bright future ahead of it. Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Novo Nordisk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The pace of inflation is slowing down, and investors are starting to price in higher odds of interest rate cuts next year – but the ripples of the high inflation/high rates regime still linger. Consumer costs are up, and credit is harder to come by; financing for large projects is both harder to get and more expensive to pay for. Plenty of sectors are feeling the pressure. And this brings us to the residential solar market. Solar stocks depend on both homeowners and the availability of financing for their livelihoods; the pressure on residential solar providers has been real in recent months. Solar stocks were volatile this past year, and year-to-date losses were not uncommon in the sector. But the thought of rate cuts next year, more probable after the Fed’s last meeting, is breathing new life into solar shares. Sector expert Dushyant Ailani, writing from Jefferies, lays out the recent swoon and near-term potential: “Solar manufacturers have underperformed the S&P500 by ~60% YTD, driven by higher (for longer?) interest rate environment, interconnection delays pushing out projects, regulatory change (NEM 3.0) in California, and excess inventory in the system. We are starting to see some data points that could potentially lead to a turnaround for the sector namely: (1) potential Fed Funds rate cut expected by JEF economists in 2024, (2) data for residential solar permits showing signs of bottoming, and (3) FERC's new interconnection rules potentially easing some of the backlog we have seen build up over the last few years. We view these data points as tailwinds in attracting investors back into the sector.” Ailani doesn't leave us with a macro view of the sector. The analyst delves into the micro level, selecting two solar stocks that are shouting ‘All aboard!’ to investors, as the market warms again. We ran them through the TipRanks database to see what makes them stand out. Sunrun, Inc. (RUN) We’ll start our look at solar stocks with Sunrun, the leading company in the US residential solar power industry, with the largest market share – an absolute majority – among its peers. The company provides a full range of services in its niche, including designing and installing custom-made solar power installations for single-family homes. Made-to-order is an important selling point, as many single-family homes are highly modified from their original construction, so that it’s uncommon to find two that are identical. Sunrun has the expertise to cope with this and to create solar power systems that fit the customer’s residence. The residential solar industry has come a long way from the days of Jimmy Carter when the 39th President had rooftop solar panels installed on the White House. Sunrun’s projects are high-end package deals and include modern photovoltaic panels, grid connections, ‘smart home’ power control systems, and power storage batteries, all designed to meet the homeowner’s electrical load needs. Sunrun has a financial division as well and can offer a variety of payment plan options for its customers. Buyers can choose to pay ‘cash on the barrel,’ in advance and in full, or can use the company’s financing options to set up payment plans. These can be based on long-term amortization or even on an equipment ‘lease,’ with monthly payments. The prospect of lower interest rates starting as early as next year should ease the pressure on prospective customers by making such financing plans more affordable. In the meantime, we can look back at Sunrun’s last financial release – from 3Q23, announced at the beginning of November – for a snapshot of where the company stands right now. Sunrun showed some solid metrics in that report, including 33,806 net customer additions of whom 29,303 were added as subscription customers. The company had, as of September 30, a total of 903,270 customers, including 754,087 subscribers. Year-over-year, the company’s customer base has expanded by 19%. At the top line, Sunrun showed $593.2 million in total revenue. This was down 11% year-over-year and missed the forecast by almost $12 million. At the bottom line, however, the non-GAAP EPS figure of 40 cents per diluted share, based on $88.5 million in net income, was an impressive 56 cents per share ahead of the forecast. For Ailani, the key point is Sunrun’s leading market share in the residential solar industry. The Jefferies analyst writes, “As the leading clean energy provider under a subscription service, and with over a 60% residential market share of new subscriptions, Sunrun is well poised to take advantage of the growth in resi solar after a disappointing 2023. We see upside to Sunrun's NSV driven by cost deflation, ITC adders and product mix shift to solar + storage vs solar only. The company's storage attach rates improved to ~33% in 3Q from ~15% in 1Q23, and we expect the rates to trend to ~40% in 2024 and closer to ~50% in 2025. In a high interest rates environment, we expect RUN's total customer base to increase by 15% / 13% in ‘24 / ‘25, with ~90% being Subscribers.” These comments support the analyst’s Buy rating on Sunrun shares, and his $25 price target implies a bullish one-year upside potential of ~39%. (To watch Ailani’s track record, click here) Overall, Sunrun has picked up plenty of attention from the Street’s analysts – 21 recent analyst reviews, including 15 Buys and 6 Holds, give the stock its Moderate Buy consensus rating. (See Sunrun stock forecast) First Solar (FSLR) The second stock we’ll look at, First Solar, has been in the US solar power market since 1999 and is currently a leader among US-domiciled photovoltaic panel producers. The company has an international manufacturing footprint, with development and assembly facilities in India, Vietnam, and Malaysia, as well as several facilities in the US, in the state of Ohio. First Solar is the largest manufacturer of solar panels in the Western Hemisphere. The company is pursuing an aggressive expansion plan, buoyed by the social and political forces promoting various clean energy initiatives, including solar power. First Solar reports that it is on track to have 25 gigawatts of solar power generation built and online by 2026 and has accumulated a total R&D spend of $1.5 billion in pursuit of that goal. The company's heavy investment in R&D is part of its commitment to environmental protection and quality. This commitment has led directly to its use of advanced thin-film photovoltaic modules, which have set an industry standard in the combination of durability and reliability while minimizing environmental impact. First Solar has organized its manufacturing processes to avoid dependence on Chinese crystalline silicon. The company uses a proprietary process that allows the transformation of glass sheets into functional solar panels in approximately 4 hours. First Solar’s cadmium-telluride (CadTel) technology utilizes the byproducts of copper and zinc mining to create a photovoltaic panel at a lower cost and with superior performance compared to traditional designs. In line with the company’s commitment to maintaining environmental quality, First Solar has a goal of converting 100% of its global manufacturing operations to renewable energy sources by 2028. In the longer term, the company aims for a Net Zero carbon footprint by 2050. Already, the company uses less water, energy, and semiconductor material than companies producing crystalline silicon panels. When we turn to First Solar’s financial performance, we find that the company reported $801 million in net sales for 3Q23, the last reported quarter. This result was down 27% year-over-year, which is typical of the industry this year, given the difficult credit environment. It also missed expectations by $91.25 million. However, the bottom line figure beat the forecasts, coming in at $2.50 per diluted share, which is 46 cents per share better than had been anticipated. What has really caught investors' attention here, however, is the company’s forward guidance. First Solar issued full-year 2023 revenue guidance in the range of $3.4 billion to $3.6 billion, which was in-line with the consensus $3.5 billion figure. But when it comes to earnings, the company bumped up the lower end of its full-year EPS guidance, from $7 to $8 per share to $7.20 to $8 per share. The consensus on EPS was $7.59. The sound guidance reflects the company’s solid work backlog, which was reported to total 81.8 gigawatts at the end of Q3. Setting out the Jefferies view, analyst Ailani takes heart from First Solar’s strong existing position and sound prospects for continued work. He writes, “First Solar's exposure to utility scale and strong backlog insulates it well against near term volatility inherent in the sector. The company is well-positioned to benefit from its strong ~82GW backlog and potential upside to ASP. Furthermore, we expect gross margin expansion from 18% in ‘23 to 25% in ‘25, which is in the low end of company guidance. First Solar is also leading peers in expanding capacity in the US to take adv of the IRA credits which can add to gross margins, to ~53% by ‘25.” To quantify his stance, the analyst rates FSLR shares as a Buy, and puts a $211 price target here to suggests a 27% upside in the next 12 months. (To watch Ailani’s track record, click here) Like Sunrun above, First Solar has attracted plenty of notice from the Street, in the form of 21 recent analyst reviews that include 17 Buys and 4 Holds for a Strong Buy consensus rating. (See FSLR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Shares of United States Steel (NYSE: X) were up 26% on Monday after the American steel producer agreed to be acquired by Japan-based peer Nippon Steel Corporation (NSC). In a press release this morning, U.S. Steel said it has agreed to be acquired by Nippon Steel for $55 per share in cash. That price is good for an enterprise value of $14.9 billion (including roughly $800 million of U.S. Steel's debt), and a roughly 40% premium from Friday's closing price. Shares closed today at $49.59 per share. Combining forces to create the world's "best steelmaker" The deal effectively caps a strategic alternatives process U.S. Steel announced back in August 2023, spurred after the company received multiple unsolicited proposals ranging from the acquisition of certain assets to the purchase of the entire company. This agreement obviously means U.S. Steel has opted for the latter; in a separate merger presentation, management argued it provides "certain and immediate value to U.S. Steel shareholders. And over the longer term, they say, the combination will create the industry's "best steelmaker with world-leading capabilities." What's next for U.S. Steel shareholders? The agreement has already been unanimously approved by both companies' boards of directors but still requires the approval of both U.S. Steel's shareholders and regulatory authorities. NSC, for its part, will fund the transaction primarily through loans from Japanese banks and has already secured necessary financing commitments. Assuming all goes as planned, however, the acquisition should close in the second or third quarter of calendar year 2024. U.S. Steel will retain its name, and Pittsburgh, Pennsylvania, headquarters, and NSC has agreed to honor all collective bargaining agreements with the U.S. Steelworkers Union. As it stands, U.S. Steel shareholders have two options: With the stock trading at a roughly 11% discount to the agreed acquisition price, you can opt for some merger arbitrage by hanging in until the acquisition closes -- at which point you'll be paid $55 per share in cash for each share you own. Or, noting there is some risk that the deal could be derailed (whether by antitrust regulators or shareholders voting against it), you can sell now to realize today's quick pop and put that money to work in any number of other promising stocks. Either way, investors should keep in mind that if they've owned shares for less than one year, they'll need to account for short-term capital gains taxes on their profits. Should you invest $1,000 in United States Steel right now? Before you buy stock in United States Steel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United States Steel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 18, 2023 Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Dec 19 (Reuters) - Australian shares recovered on Tuesday led by energy stocks, as investors absorbed mixed signals from U.S. Federal Reserve officials about interest rate cut expectations in 2024. The S&P/ASX 200 index .AXJO rose 0.2% to 7,438.8 by 2320 GMT. The benchmark ended 0.2% lower on Monday. Starting last week, a number of Fed officials made comments that watered down expectations of how abruptly the U.S. central bank would pivot to rate cuts. These comments landed after investors celebrated the dovish remarks from Fed Chair Jerome Powell when the central bank's year-end monetary policy meeting ended with a rate hold and signals of rate cuts in 2024. In Sydney, energy stocks .AXEJ drove gains on the benchmark, jumping 0.9%, in line with global gains in oil prices. O/R Shares of top energy firms Woodside Energy WDS.AX and Santos STO.AX were up 1.0% and 0.3%, respectively. Gold index .AXGD was up 0.6% as bullion prices rose, with shares of Northern Star Resources NST.AX up 0.8. GOL/ The heavyweight mining index .AXMM inched up 0.2%, with Fortescue FMG.AX and Rio Tinto RIO.AX rising 0.9% and 0.3%, respectively. Technology stocks .AXIJ followed the upward move on the benchmark and climbed 0.2%, tracking overnight gains in their Wall Street peers. Shares of Xero XRO.AX traded 1.5% higher. Azure Minerals AZS.AX rose as much as 2.2% after the lithium developer received a sweetened takeover offer from Chile's SQM SQMA.SN and Hancock Prospecting, implying an equity value of A$1.70 billion ($1.14 billion) for Azure. Investors now await U.S. data on core personal consumption expenditure (PCE) index due on Dec. 22 for cues about the Fed's future policy decisions. New Zealand's benchmark S&P/NZX 50 index .NZ50 traded marginally higher by 0.1% to 11,553.1. ($1 = 1.4916 Australian dollars) (Reporting by Adwitiya Srivastava in Bengaluru; Editing by Rashmi Aich) ((Adwitiya.Srivastava@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Updates with more background, share price in paragraphs 4-6 TOKYO, Dec 19 (Reuters) - Nippon Steel 5401.T shares sank more than 5% early on Tuesday after it clinched a deal to buy U.S. Steel X.N for $14.9 billion in cash. The acquisition of U.S. Steel, which prevailed in an auction for the steel giant over rivals including Cleveland-Cliffs, will help Nippon Steel move toward 100 million metric tons of global crude steel capacity. The Japanese company has not given any projection on the value of the synergies that will arise from the deal, but it is scheduled to hold a media briefing on Tuesday morning where the company's president is expected to appear. LSEG data showed Nippon is paying the equivalent of 7.3 times U.S. Steel's 12-month earnings before interest, taxes, depreciation and amortisation (EBITDA). Nippon Steel's shares were trading around 3,061 yen in early trade in Tokyo, down 5.5% from Monday's close, after being untraded with a glut of sellers after the open. U.S. Steel shares ended trading up 26% at $49.59 on Monday following the deal announcement. (Reporting by Mariko Katsumura; Editing by Jacqueline Wong) ((Mariko.Katsumura@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	In the latest trading session, Prologis (PLD) closed at $132.68, marking a -1.18% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.45% for the day. The upcoming earnings release of Prologis will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.26, reflecting a 1.61% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.79 billion, indicating a 12.22% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.60 per share and revenue of $6.85 billion, indicating changes of +8.53% and +39.38%, respectively, compared to the previous year. Investors should also take note of any recent adjustments to analyst estimates for Prologis. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Prologis possesses a Zacks Rank of #3 (Hold). Looking at its valuation, Prologis is holding a Forward P/E ratio of 23.98. This expresses a premium compared to the average Forward P/E of 11.85 of its industry. One should further note that PLD currently holds a PEG ratio of 2.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the REIT and Equity Trust - Other industry was having an average PEG ratio of 2.57. The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 40% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report Prologis, Inc. (PLD) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The latest trading session saw General Dynamics (GD) ending at $252.87, denoting a +0.13% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.45% for the day. Analysts and investors alike will be keeping a close eye on the performance of General Dynamics in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.19, indicating a 17.04% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.48 billion, indicating a 15.02% upward movement from the same quarter last year. GD's full-year Zacks Consensus Estimates are calling for earnings of $12.56 per share and revenue of $42.99 billion. These results would represent year-over-year changes of +3.04% and +9.1%, respectively. Investors might also notice recent changes to analyst estimates for General Dynamics. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. General Dynamics presently features a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that General Dynamics has a Forward P/E ratio of 20.1 right now. This denotes a premium relative to the industry's average Forward P/E of 17.53. It's also important to note that GD currently trades at a PEG ratio of 2.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.92 as of yesterday's close. The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow GD in the coming trading sessions, be sure to utilize Zacks.com. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report General Dynamics Corporation (GD) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	Simon Property (SPG) closed the latest trading day at $143.62, indicating a -0.51% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.45%. The investment community will be paying close attention to the earnings performance of Simon Property in its upcoming release. The company's earnings per share (EPS) are projected to be $3.34, reflecting a 6.03% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.45 billion, reflecting a 3.61% rise from the equivalent quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.14 per share and a revenue of $5.6 billion, representing changes of +2.27% and +5.79%, respectively, from the prior year. Investors should also pay attention to any latest changes in analyst estimates for Simon Property. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. As of now, Simon Property holds a Zacks Rank of #3 (Hold). In terms of valuation, Simon Property is currently trading at a Forward P/E ratio of 11.9. For comparison, its industry has an average Forward P/E of 14.25, which means Simon Property is trading at a discount to the group. It's also important to note that SPG currently trades at a PEG ratio of 6.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SPG's industry had an average PEG ratio of 3.51 as of yesterday's close. The REIT and Equity Trust - Retail industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	In the latest market close, Cigna (CI) reached $292.07, with a +0.54% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.45%. The upcoming earnings release of Cigna will be of great interest to investors. The company's upcoming EPS is projected at $6.52, signifying a 31.45% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $48.81 billion, indicating a 6.71% growth compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $24.82 per share and a revenue of $192.8 billion, representing changes of +6.66% and +6.73%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Cigna. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Right now, Cigna possesses a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Cigna has a Forward P/E ratio of 11.7 right now. This signifies a discount in comparison to the average Forward P/E of 16.58 for its industry. Also, we should mention that CI has a PEG ratio of 1.05. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices. The Medical - HMOs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report Cigna Group (CI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	The most recent trading session ended with Conagra Brands (CAG) standing at $29.49, reflecting a +0.55% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.45%. Market participants will be closely following the financial results of Conagra Brands in its upcoming release. The company plans to announce its earnings on January 4, 2024. In that report, analysts expect Conagra Brands to post earnings of $0.67 per share. This would mark a year-over-year decline of 17.28%. Our most recent consensus estimate is calling for quarterly revenue of $3.24 billion, down 2.14% from the year-ago period. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.68 per share and a revenue of $12.28 billion, representing changes of -3.25% and +0.05%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Conagra Brands. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Right now, Conagra Brands possesses a Zacks Rank of #4 (Sell). In terms of valuation, Conagra Brands is presently being traded at a Forward P/E ratio of 10.96. This valuation marks a discount compared to its industry's average Forward P/E of 17.29. Also, we should mention that CAG has a PEG ratio of 2.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.48 based on yesterday's closing prices. The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow CAG in the coming trading sessions, be sure to utilize Zacks.com. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report Conagra Brands (CAG) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	T.J. Maxx, Marshalls, HomeGoods, Sierra, and Homesense, along with the associated online sites, are the core of TJX Companies' (NYSE: TJX) retail business. All of these brands share one important thing in common: low prices. Consumers love a bargain, and TJX has established a reputation for low prices to grow its business over the years. But right now, it's seeing a notable uptick that investors need to know about. TJX is positioned well for a tough market The core of this retailer's business is made up of two kinds of customers. First, there are the shoppers that visit TJX stores, and similar retailers, looking to stretch their budgets as far as possible. Then, there's another group that's usually better off financially that goes for the thrill of finding a diamond in the rough, so to speak. Together, these shoppers have been more than enough to keep TJX growing steadily over the years as you can see below (aside from the coronavirus pandemic). Data by YCharts. The retailer continues to expand its footprint with 50 locations added in the fiscal 2024 third quarter, bringing the total number of stores up to 4,934. At the start of fiscal 2019, roughly five years ago, that figure was 4,070. Adding more stores will likely be the driving force for long-term growth in the future as well, but there's another important metric that investors need to watch: same-store sales. An impressive jump in same-store sales The same-store sales metric measures the performance of stores that have been open for a year or more. New stores can distort the picture provided by sales results because each new store adds materially to the top line. Existing stores could be struggling, and it might not be apparent because of the sales that are coming from new stores. Luckily, in the most recent quarter, TJX reported strong same-store sales growth of 6%. That result suggests TJX is firing on all cylinders right now, but the 6% same-store sales growth was well above even the company's expectations. And according to management, all of that growth came from an increase in customer traffic. This isn't something to gloss over. The company is drawing in new customers, and those customers are likely to be wealthier than the store's core shoppers. Although TJX didn't elaborate when asked about the makeup of these new customers during theearnings call a trend is emerging among value-focused retailers. Dollar Tree, for example, specifically mentioned it was seeing a notable increase in these "trade down" customers with higher incomes (~$125,000). Management at Burlington similarly highlighted that trade-down traffic contributed to the company's comps growth. That's good news for TJX as it means the company is well positioned in the current market. However, there's a risk here because many of these new customers are likely to go back to their regular spending patterns when the current macroeconomic challenges ease up. And yet, investors appear to be fairly optimistic about the future of TJX, given the valuation of the stock. It shows up in the stock's price-to-sales ratio, price to book value, price to earnings, and price to cash flow. Keeping in mind the distortions that resulted from the coronavirus pandemic, TJX is enjoying a modest premium over its historical levels across those metrics. Good news and bad news The clear positive here is that TJX has widened its target market during a difficult economic period. The problem is that investors appear to have already factored that into the stock price. If you own TJX already, you should be happy with the latest results. But if you're not yet a shareholder, you might want to stay on the sidelines and track same-store sales for the company, especially as the country exits its current economic weak patch. Should you invest $1,000 in Tjx Companies right now? Before you buy stock in Tjx Companies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Tjx Companies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Sponsored Links This house is only 27 sq. ft. but when you see the inside you'll want it! Tips and Tricks Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Tjx Companies. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	In the latest trading session, United Rentals (URI) closed at $568.23, marking a -0.61% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.45%. Market participants will be closely following the financial results of United Rentals in its upcoming release. It is anticipated that the company will report an EPS of $11.45, marking a 17.56% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.64 billion, indicating a 10.3% upward movement from the same quarter last year. For the full year, the Zacks Consensus Estimates project earnings of $41.07 per share and a revenue of $14.22 billion, demonstrating changes of +26.37% and +22.18%, respectively, from the preceding year. Investors should also note any recent changes to analyst estimates for United Rentals. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. At present, United Rentals boasts a Zacks Rank of #3 (Hold). With respect to valuation, United Rentals is currently being traded at a Forward P/E ratio of 13.92. For comparison, its industry has an average Forward P/E of 18.6, which means United Rentals is trading at a discount to the group. It's also important to note that URI currently trades at a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Miscellaneous industry was having an average PEG ratio of 1.92. The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow URI in the coming trading sessions, be sure to utilize Zacks.com. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report United Rentals, Inc. (URI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	OCFCP	In the latest market close, Constellation Brands (STZ) reached $238.89, with a +1.03% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.45%. The investment community will be closely monitoring the performance of Constellation Brands in its forthcoming earnings report. The company is scheduled to release its earnings on January 5, 2024. It is anticipated that the company will report an EPS of $3.03, marking a 7.07% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.55 billion, indicating a 4.66% increase compared to the same quarter of the previous year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.86 per share and a revenue of $10.07 billion, indicating changes of +11.36% and +6.48%, respectively, from the former year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Constellation Brands. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.27% upward. Constellation Brands is holding a Zacks Rank of #3 (Hold) right now. Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 19.94. This valuation marks a premium compared to its industry's average Forward P/E of 18.72. We can also see that STZ currently has a PEG ratio of 1.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. STZ's industry had an average PEG ratio of 2.03 as of yesterday's close. The Beverages - Alcohol industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 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 report Constellation Brands Inc (STZ) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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