The investment bank had predicted the S&P; 500 would slide more than 20 percent to 2,400.
How much money people have put away for retirement varies, naturally, by their age group. See how your savings stack up.
After a few months of slim pickings, the U.S. initial public offering market is expected to reopen with a bang this week with the biggest deal of the year expected to price later Tuesday
Here's why stocks continue to be in rally mode despite the horrors sweeping America right now.
Penny stocks are controversial, to say the least. When it comes to these under $5 per share investment opportunities, Wall Street observers usually either love them or hate them. The penny stock-averse point out that while the bargain price tag is tempting, there could be a reason shares are trading at such low levels like poor fundamentals or insurmountable headwinds.However, the other side of the coin has merit as well. Naturally, with these cheap tickers, you get more bang for your buck in terms of the amount of shares. On top of this, other more expensive and well-known names aren’t as likely to produce the colossal gains that penny stocks are capable of.Given the nature of these investments, Wall Street analysts recommend doing some due diligence before pulling the trigger, noting that not all penny stocks are bound for greatness.With this in mind, we set out our own search for compelling investments that are set to boom. Using TipRanks’ database, we pulled three penny stocks that have amassed enough analyst support to earn a “Strong Buy” consensus rating. Adding to the good news, each pick boasts over 125% upside potential. Hyrecar, Inc. (HYRE)We all know about the gig economy, which turned the world of freelance work upside down by using the internet to connect people with skills to jobs that needed doing. And we all know how Airbnb used a similar model in the world of short-term lodging. Hyrecar brings the online sharing model to the automotive sector, allowing vehicle owners to rent out their cars short-term, even hourly; car owners can use their cars to make money during downtime, while car renters get the convenience of a vehicle right when they need it.Where many companies saw steep revenue drops in Q1, Hyrecar’s top line was healthy. Revenues grew 20% sequentially and 65% year-over-year, to reach $5.8 million. While EPS was negative, showing a 25 cent per share net loss, that was a 19% improvement from Q4’s 31-cent net loss. The solid revenue number and the EPS improvement were based on a 16% increase in rental days from Q4 to Q1.At $2.25, several analysts argue that now is the time to snap up shares. Ladenburg analyst Jon Hickman puts Hyrecar into the context of recent events, and likes the fit he sees: “Prior to early March, the company hit a weekly rental day high of more than 20,000 as vehicle supply continued to climb in line with the success of the Fleet initiative. In the days that followed (as the country shut down) through early April, weekly rental days fell to a level of 14,000, but have since begun to recover as the company focused its drivers on delivery opportunities… the company's concerted effort to help drivers sign up with such services as Door Dash, Instacart, and other delivery services (food and packages) has resulted in a notable uptick in weekly rental days, which is now trending toward 18,000.”Believing that HYRE’s best days are in front, and that the company will see continued growth into 2021, Hickman puts a Buy rating on the stock. His $5.25 price target suggests a one-year upside potential of 133%. (To watch Hickman’s track record, click here)Overall, Wall Street agrees that HYRE is a stock to buy. The Strong Buy analyst consensus is unanimous, based on 4 recent positive reviews, while the average price target, of $5.94, is actually more bullish than Hickman’s, implying a 171% upside potential in the coming year. (See Hyrecar stock analysis on TipRanks)Genco Shipping, Inc. (GNK)Next up is a small-cap shipping company, Genco. The company boasts a market cap of $207 million, along with a major asset: a modern fleet of dry bulk carriers. These ships, varying in size from 34,000-ton Handysize freighters to the giant 175,000+ ton Capemax vessels, are wholly owned and modern, with a majority of the fleet build in the past decade. Genco transports essential dry bulk cargoes such as coal, grain, iron ore, and steel around the world.The coronavirus pandemic, with its heavy impact on trade and travel, hit Genco hard in Q1. The company saw earnings plummet, and EPS registered a 17-cent loss per share in the first quarter, a sharp turn from Q4’s 7-cent profit. At the same time, the company was able to continue streamlining its operations, including selling off three of its least profitable vessels, and took action to improve its cash position. Genco finished the quarter with $134.3 million in unrestricted cash on hand, and is negotiating a further $25 million in collateralized credit from its main lenders.Despite the recent struggles, one analyst argues that the $4.94 price tag is a solid deal for investors.Writing on GNK stock for Evercore ISI, Jonathan Chappell said, “GNK still retains the strongest balance sheet in the dry bulk industry… GNK should be able to build upon its cash balance, enabling it to return to the prior dividend run rate once there is more clarity on the global economic backdrop and the timing on an eventual dry bulk market recovery, while its liquidity could also render it as the market consolidator if other less-well-capitalized owners fall victim to a prolonged global recession.”Chappell's numbers are upbeat, too. The $9 price target suggests a robust 82% upside potential, and fully supports his Buy rating on the stock. (To watch Chappell’s track record, click here)Chappell's bullish stance on Genco Shipping is in line with Wall Street’s view. GNK has a Strong Buy consensus rating, based on 4 Buy ratings and single Hold set in recent weeks. Meanwhile, the average price target of $10.80 leaves a room for nearly 119% upside from current levels. (See Genco stock analysis on TipRanks)Reed’s, Inc. (REED)Reed’s, a small cap company in the craft soda markets, is best known for its ginger ale and ginger beer products. The company’s eponymous brand and product line also extends to zero-sugar sodas and ginger candy. It’s a small niche, but one with a clear path forward: Reed’s reported a 13% year-over-year sales increase in Q1 2020. That sales increase translated into a $9.5 million top line. While EPS has been showing let losses for the past two years, those losses bottomed in Q3 2019; the Q1 number, a loss of 5 cents per share, represented the smallest loss in 9 quarters, and a 44% sequential improvement. Looking forward, the quarterly loss is expected to narrow further, to just 3 cents per share, in Q2. The positive outlook is buoyed by the 21% volume growth of the core Reed’s Ginger Ale brand in Q1.At only $0.68 per share, some members of the Street see an attractive entry point.Maxim analyst Anthony Vendetti writes of REED, “…the COVID-19 pandemic has resulted in some slight reset delays, it has also generated robust supermarket trends, creating increased demand for REED products in grocery stores. The company continues to expand its distribution network and has increased its manufacturing capacity… REED continues to enhance its supply chain, only experiencing minimal disruptions due to COVID-19.”Overall, based on "REED’s differentiated product offerings and continued progress," Vendetti stays with the bulls. That solid position underlies Vendetti’s Buy rating, while his $2 price target implies a whopping 194% upside potential for the year ahead. (To watch Vendetti’s track record, click here)Like the other stocks in this article, REED has a Strong Buy consensus – and it is based on 3 Buy ratings given in the past 3 months. The shares have an average price target of $2.33, suggesting a 243% upside from current levels. (See Genco stock analysis on TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
After more than two months of being completely shut down, casinos on the Las Vegas strip will reopen this week for the first time as part of the city's "Phase 2" plan to safely return to normal. While reopenings will be a big step in the right direction for casino stock investors, Vegas will still have a steep hill to climb in the near term.What Happened? On June 4, MGM Resorts International (NYSE: MGM) plans to reopen the Bellagio, MGM Grand and New York-New York casinos, which represent a combined 39% of the company's total Las Vegas rooms. Caesars Entertainment Corporation (NASDAQ: CZR) also plans to reopen Caesars Palace and the Flamingo, which account for 32% of its total Vegas rooms.Wynn Resorts, Limited (NASDAQ: WYNN) also plans to open both its Wynn and Encore casinos. Las Vegas Sands Corp. (NYSE: LVS) is reopening the Venetian and the Palazzo.Why It's Important: The good news for casino stock investors is that other regional casinos that have already reopened have witnessed significant pent-up demand. For example, Mississippi Gulf Coast casinos reopened at half capacity for Memorial Day weekend and reported a 17.3% increase in gross gaming revenue for the weekend compared to last year. Bank of America analyst Shaun Kelley said Tuesday casinos in other regions of the country have demonstrated similar trends."Casino openings so far have shown signs of pent-up demand, a trend which we expect to persist in the near-term possibly making our down ~95% GGR estimates for Q2 too conservative," Kelley wrote in a note.See Also: Analyst: Why Penn National And Boyd Could Outperform As US Casinos Reopen What's Next? Unfortunately, Kelley said Vegas may be one of the slowest areas to recover due to its reliance on air travel, cancellations of events and conventions and relatively low pricing power. Kelley estimates air traffic makes up roughly 60% of Vegas' total visitors, and the latest air traffic data suggests travel remains down about 90% from a year ago.For investors looking to bet on a Vegas recovery, Bank of America has the following ratings and price targets for the four casino stocks mentioned: * Las Vegas Sands, Buy rating and $61 target. * Wynn Resorts, Buy rating and $95 target. * MGM Resorts, Underperform rating and $15 target. * Caesars, no rating.Benzinga's TakeFor the next several months, most investors will be looking past abysmal near-term numbers and hoping that their stocks catch a bid based on expectations that the economy will eventually return to normal.Las Vegas casino stocks will likely be closely tied to a recovery in air travel, and Bank of America estimates 2021 US airline revenue will be down just 18% from 2019 levels.Do you agree with this take? Email firstname.lastname@example.org with your thoughts.Latest Ratings for MGM DateFirmActionFromTo May 2020UBSMaintainsNeutral May 2020Credit SuisseAssumesNeutral May 2020B of A SecuritiesDowngradesNeutralUnderperform View More Analyst Ratings for MGM View the Latest Analyst RatingsSee more from Benzinga * 7 Sin Stocks To Buy During The Coronavirus Shutdown * Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios * The Road To Recovery For Las Vegas Casino Stocks(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
There has been significant divergence between individual stock prices and their expected earnings next year, presenting some buying and selling opportunities for investors
Berkshire Hathaway is the ultimate Warren Buffett stock. But is it a good buy? Here's what the earnings and chart show for Berkshire stock.
Shares of Genius Brands International Inc. soared 53.4% on very heavy volume in afternoon trading Tuesday to the highest close since September 2017. Volume shot up to 166.4 million shares, well above the full-day average of 31.2 million, and enough to make the stock the most actively traded on major U.S. exchanges. The stock has rocketed about 13-fold (up 1,187.6%) in the past month, while the S&P 500 has gained 8.8%. The company is a kids media company, with shows including "Stan Lee's Superhero Kindergarten," "Rainbow Rangers" and "Llama Llama." The company has not immediately responded to a request for comment. After Friday's close, the company disclosed that it regained compliance with the Nasdaq's minimum bid price listing standard, and on Thursday the company disclosed a registered direct offering of 20 million shares of common stock to the public at a price of $1.50 to raise $30 million. That came less than two weeks after the company announced a registered direct offering of 7.5 million shares at $1.20 a share to raise $9 million. Separately, the latest data from Nasdaq showed that short interest, or bearish bets on Genius Brands' stock, jumped to a record of about 3.07 million shares according to FactSet, representing 7.5% of the public float.
Deutsche Bank analysts say any sale of U.S. Treasurys by Beijing is likely unrelated to efforts by China to retaliate against the U.S., as tensions between the two superpowers flare.
Manolo Falco, Citigroup’s co-head of investment banking explained to the Financial Times why he believes the firm’s corporate clients should raise as much cash as possible before the reality of the pandemic sinks in for investors
U.S. stock-index futures point to further gains on Wednesday after the stock market closed at its highest level since early March during Tuesday’s regular session.
The Nationwide says house prices fell 1.7% in May as the coronavirus crisis hit market activity.
The “unloved but welcome” stock market rally over the past two months is unlikely to persist, according to Goldman Sachs analysts. After opening lower on Monday amid civil unrest and U.S.-China trade tensions the Dow Jones Industrial Average (DJIA) reversed losses as investors focused on hopes of an economic recovery, closing 91.91 points higher. Optimism over the economic recovery from coronavirus, with all 50 states taking steps to reopen, has sent stocks higher in recent weeks.
Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there's no question some big-name stocks did much better than others along the way.Southwest's Difficult DecadeOne underperformer of the last decade was U.S. airline Southwest Airlines Co (NYSE: LUV).The big news of the past decade for Southwest was its $3.2 billion acquisition of AirTran Airways. The merger was announced in September 2010 and added 25 additional destinations to Southwest's routes, including AirTran hub Atlanta, Georgia.The deal was ultimately approved by shareholders and regulators, and Southwest closed the deal on May 2, 2011.Southwest shares started the 2010s trading at around $11.18 but hit their decade low of $6.65 by late 2011. Southwest shares went on a tear in 2013 and 2014, eventually peaking at $48.99 in late 2015.The rally resumed in late 2016 when Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) took a new stake in Southwest. That momentum ultimately pushed the stock to its all-time high of $65.12 at the very end of 2017.2020 And BeyondFrom early 2017 to early 2020, Southwest shares traded mostly sideways in a range between $45 and $65 before the bottom fell out during the COVID-19 outbreak. In March, Southwest traded to a more than five-year low of $22.47 before bouncing back to around $34 today.Despite the bid 2020 hit, investors have still made decent returns in the popular airline stock over the past decade. In fact, $1,000 worth of Southwest stock in 2010 would be worth $2,940 today, assuming reinvested dividends.Looking ahead, analysts expect even more gains for Southwest in 2020. The average price target among the 17 analysts covering the stock is $38, suggesting 11.4% upside from current levels.Related Links:Here's How Much Investing ,000 In Royal Caribbean Stock Back In 2010 Would Be Worth TodayHere's How Much Investing 0 In Carnival Stock Back In 2010 Would Be Worth TodaySee more from Benzinga * Airline Stock Short Sellers Have Made A B Profit In 2020 * How Large Option Traders Are Playing Airlines Right Now * Delta, United Extend Loyalty Memberships For Another Year As Coronavirus Pummels Airlines(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The euro topped $1.12 for the first time in 11 weeks, extending the shift in the currency market amid optimism over economic reopenings across the globe. The euro traded at $1.1226 vs. $1.1168 on Monday. The New Zealand dollar and Australian dollar also rose against the greenback, as did the British pound which flirted with the $1.26 level.
Spot gold slipped 0.3% to $1,721.86 per ounce by 0626 GMT, after declining 0.7% on Tuesday. U.S. gold futures fell 0.4% to $1,726.90. "There are a lot of investors who bought gold as a hedge for stocks, but stocks are going up and they don't see value in that now," said Stephen Innes, chief market strategist at financial services firm AxiCorp.
Top coronavirus play Zoom Video reported blowout earnings, but shares fell late. CrowdStrike spiked. Meanwhile, Tesla, RH lead stocks that have roared back from deep bases on recovery hopes.
Stocks were sharply mixed early Tuesday in the wake of President Trump's comments. Zoom Video will report after the close.
When looking at V-shaped recoveries, they hardly come more V-shaped than that of Tesla’s (TSLA). Hitting all-time highs in February, then plummeting along with the rest of the market, the EV pioneer’s fortunes appear to be speeding upwards yet again, as the swift recovery has led Tesla stock to a year-to-date gain of 115%.According to Wedbush analyst Daniel Ives, the moving parts are all falling into place for Tesla. The fact that Fremont is up and running again following the resolution of the Musk vs Alameda County quarrel combined with strong demand in China for Model 3 vehicles suggest a “solid May and June likely in the cards and clear momentum heading into 2H.”That said, it is China and the attendant opportunity that is mostly on Ives’ mind. The 5-star analyst believes the China growth story is “worth $300 per share to the stock.”In a difficult pandemic-driven environment, Chinese demand for Model 3s remains “a ray of light” for Tesla, with the Shanghai-based Giga 3 factory seemingly on the path to deliver 100,000 Model 3 units in its first fully operational year.Ives argues there is increasing demand for electric vehicles in China, and maintains “EV penetration is set to ramp significantly over the next 12 to 18 months,” with Tesla competing for market share supremacy along with several local and international rivals.Looking ahead, Ives said, “The Street will be closely monitoring demand trends across Europe and China over the coming month as the focus of investors shifts to a more normalized (depending on COVID) environment heading into year-end and 2021 and what this dynamic means for the long-term earnings trajectory going forward.”At this point, however, Ives prefers to watch this bullish story play out from the sidelines. The analyst keeps a Neutral rating on TSLA, although the price target gets a significant bump – moving up from $600 to $800. Despite the increase, the target still indicates possible downside of 9%. (To watch Ives’ track record, click here)Opinion on the Street regarding Musk & Co is almost evenly split. 9 Buys and Holds each, along with 10 Sells add up to a Hold consensus rating. However, it appears most believe Tesla has surged enough for now, as the average price target comes in at $633.14, and implies the analysts expect shares to drop by 28% over the next 12 months. (See Tesla stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
(Bloomberg) -- Deutsche Lufthansa AG signaled it would make sweeping job cuts and sell off non-core units in order to repay a 9 billion-euro ($10 billion) coronavirus bailout from the German government.Europe’s biggest airline will slash employee expenses and look at spinning off non-core units to reduce costs and bolster cash flow as the coronavirus crisis depresses revenue, it said in a statement Wednesday. The group had a 2.1 billion-euro net loss in the first quarter.“In view of the very slow recovery in demand, we must now take far-reaching restructuring measures to counteract this,” Chief Executive Officer Carsten Spohr said in the release.The pledge to slash costs is likely to lead to a struggle with Germany’s powerful labor unions which in the years prior to the pandemic thwarted efforts to trim expenses with pilot and cabin-crew strikes. While other European carriers are also cutting back, Lufthansa’s situation may be complicated by the state’s pending 20% holding in the airline, which will see government representatives involving themselves in its affairs.Lufthansa shares were up 1.6% as of 9:31 a.m. in Frankfurt. The stock has fallen 41% since the start of the year.Labor BattleLufthansa wouldn’t be the first German company to run up against labor resistance as it tries to pare costs. Industrial conglomerate Thyssenkrupp AG -- once a symbol for German engineering prowess -- is selling off or closing entire divisions after years of failed attempts to put the business on a sustainable footing. If Spohr’s cost-cutting drive falls short, he won’t be able to pay down debt and dislodge the state as a shareholder.“The scale of the restructuring is immense, and agreement with unions on drastic reductions in staff numbers, wages or both will be difficult to achieve,” said Daniel Roeska, an analyst with Sanford C Bernstein.Unit SalesSpohr’s bid to sell non-core units won’t be easy either, judging by Lufthansa’s past spin-off attempts. A push to divest its LSG Sky Chefs catering arm met with repeated delays before an agreement was reached to sell the European division to Gate Group Holding AG. Lufthansa earlier this year abandoned an auction process for the international unit.The airline group has looked at a partial listing of its Lufthansa Technik aircraft maintenance and refit business, people familiar with the matter said previously. While a listing of the unit would give Lufthansa funds to pay down debt, unshackling the division could take years and would deprive the airline group of a reliable income stream. Technik had a pre-crisis enterprise value of 7.5 billion euros, according to Bloomberg Intelligence analysts.Cuts ElsewhereThe company set out more precise cuts for its foreign airline units, where labor-protection laws are less stringent than in Germany. Austrian Airlines will see staff costs pared by 20%, with Brussels Airlines suffering a 25% reduction in the workforce and a 30% cut to its fleet.While Lufthansa has said its liquidity position is becoming “urgent,” the statement gave no details on cash levels. The deal will dilute the holdings of current investors, though they’re expected to back it in a June 25 vote rather than risk insolvency.Airlines worldwide are reeling as the Covid-19 pandemic brings decades of travel growth to a shuddering halt. Industry executives are cutting back the workforce given demand could take several years to return to previous levels.U.K. rival British Airways has said it plans to cut 12,000 jobs, while discounters Ryanair Holdings Plc, EasyJet Plc and Wizz Air have signaled a total of more than 8,000 positions will be lost. Gulf carrier Emirates has said it will lower headcount, with people familiar with the matter saying the toll could surpass 30,000 workers.Biggest BailoutLufthansa, previously regarded as among the most stable and successful airlines, is negotiating bailout that’s the biggest for the industry so far. Its predicament highlighs both the impact of the virus and Germany’s willingness to come to the aid of its leading businesses.Lufthansa posted a first-quarter loss of 1.22 billion euros, widening from 336 million euros a year earlier. The imposition of travel lockdowns from mid-February led to an 18% drop in sales, with fuel-hedging losses also hurting the numbers.The picture will be far worse in the current quarter, during which almost all of the carrier’s 760 planes have been grounded.Spohr said it’s impossible to provide full-year guidance, beyond saying the result will be significantly worse.(Adds share price, analyst comment from fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of gun and ammo makers surged again Tuesday, as data showing a continued surge in firearm background checks and reports of another night of street violence helped fuel investor demand.