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  • ‘Clueless’ investors just keep driving this ‘stupidly bullish’ stock market higher, CNBC’s Jim Cramer says
    Business
    MarketWatch

    ‘Clueless’ investors just keep driving this ‘stupidly bullish’ stock market higher, CNBC’s Jim Cramer says

    The “Mad Money” host says, ‘Never underestimate the power of enthusiastic buyers who do not know what they’re doing.”

  • Here's how much money Americans think they need to retire comfortably
    Business
    Fox Business

    Here's how much money Americans think they need to retire comfortably

    The virus-induced economic crisis is causing Americans to reconsider and make changes to their retirement plans and goals.

  • Oppenheimer: These 3 “Strong Buy” Stocks Could Double, If Not More
    Business
    TipRanks

    Oppenheimer: These 3 “Strong Buy” Stocks Could Double, If Not More

    The “dog days” of summer are here, but it’s just as busy as ever on the Street. As earnings results continue to roll in, investors will be watching for any update on the next economic stimulus package along with the non-farm payroll report slated for release this Friday. Against this backdrop, plenty of questions remain, weighing on the minds of both institutional and private investors.In a recent note to clients, Oppenheimer’s Chief Investment Strategist John Stoltzfus addresses these concerns. When it comes to stocks’ disconnected state, he writes that the market tends to focus on the future, with it betting on a successful outcome based on the stimulus policy already put in place. But will this highly accommodative monetary policy eventually cause inflation?“We do not expect high levels of inflation to result from the extraordinary stimulus and monetary policy taken to deal with the Covid-19 pandemic. Federal Reserve vigilance against inflation (as well as vigilance by central banks around the world) is likely to be able to suitably address any flare up of inflation,” Stoltzfus commented.Bearing this in mind, we took a closer look at three stocks backed by the analysts at Oppenheimer, the third best-performing research firm, according to TipRanks. Running the tickers through TipRanks’ database, we learned Oppenheimer sees at least 120% upside potential in store for each, and all three have earned a “Strong Buy” consensus rating from the rest of the Street.Durect Corporation (DRRX)Developing innovative therapies based on its endogenous epigenetic regulator program, Durect believes it could potentially transform the treatment of acute organ injury and chronic liver diseases. As one of its candidates has delivered encouraging results, Oppenheimer sees an opportunity to get in on the action.Firm analyst Francois Brisebois recently told clients, “After several years of promising results, we believe DRRX's endogenous small molecule epigenetic regulator DUR-928 has finally found its home in the treatment of Alcoholic Hepatitis (AH). Given a high level of mortality (26% 1-month rate) and no viable treatment options, we believe DUR-928's fairly early robust Phase 2a efficacy and safety data could have it attacking this ~ $3 billion market opportunity with peak penetration as early as 2025.”Digging a bit deeper into this Phase 2a data, along with a robust safety profile, the trial showed that the therapy was able to rapidly reduce bilirubin, a marker of AH. In addition, there was a 100% response to treatment from the Lille score (mortality predictor tool) in 30mg and 90mg dosages and reduction in MELD (AH severity). Going forward, AH Phase 2b is set to begin in 2H20. “Given the potential to receive Breakthrough Therapy Designation (BTD) for treating a life-threatening condition with a substantial improvement over available therapies (mainly corticosteroids), launch could happen ahead of anticipation. Additionally, market exclusivity and pricing could be greater if Orphan Drug Designation (ODD) is awarded based on ~117,000 annual hospitalizations,” Brisebois added.Plenty of other catalysts are still ahead, in Brisebois’ opinion. DUR-928 is being evaluated in hospitalized COVID-19 patients with acute liver or kidney injury in a Phase 2 study and Phase 1b NASH data could be released during an upcoming conference. It should also be noted that it’s a “waiting game” for Posimir’s PDUFA, with the analyst considering “any related weakness as a buying opportunity.”All of the above makes Brisebois optimistic about DRRX’s long-term growth prospects. As a result, the analyst continues to assign an Outperform rating and $7 price target to the stock. Should his thesis play out, a potential twelve-month gain of 202% could be in the cards. (To watch Brisebois’ track record, click here) Brisebois’ colleagues are also pounding the table on DRRX. Only Buy ratings, 4, in fact, have been issued in the last three months, so the consensus rating is a Strong Buy. At $6, the average price target implies shares could climb 156% higher in the next year. (See DRRX stock analysis on TipRanks)Avadel Pharmaceuticals (AVDL)Hoping to address overlooked and unmet medical needs, Avadel Pharmaceuticals wants to provide solutions through its patient-focused and cutting-edge products. With Oppenheimer stating its asset has “disruptive potential in a proven blockbuster market,” the firm believes it might be time to snap up shares. According to analyst Francois Brisebois, who also covers DRRX, AVDL is primarily focused on FT218, a once-nightly sodium oxybate designed for the treatment of narcolepsy patients suffering from excessive daytime sleepiness (EDS) and cataplexy. He goes so far as to call the candidate the company’s “first, second and third priorities,” noting that it recently sold its Hospital Drug Portfolio “to avoid distractions.”Looking at the pivotal Phase 3 REST-ON top-line data, Brisebois believes it “speaks for itself.” At the 9g dose, FT218 was able to produce a change from baseline in Maintenance of Wakefulness (MWT) of 10.82 minutes vs. 4.469 in placebo, in Clinical Global Impression-Improvement (CGI-I) of 72% vs. 31.6% and in Mean Weekly Cataplexy Attacks of -11.51 vs. -4.86, all three of the co-primary endpoints. “We were particularly impressed that the 6g and 7.5g doses also showed p<0.001 across all co-primary endpoints,” the analyst added.The implication? “Following strong efficacy and safety data, we believe FT218 could significantly disrupt Jazz Pharmaceuticals' Xyrem (twice-nightly sodium oxybate), which reported FY19 sales of $1.6 billion,” Brisebois said.While some investors have expressed concern regarding the company’s freedom to operate, Brisebois isn’t too worried. “We are comfortable with AVDL's freedom to operate path forward as we don't believe it will infringe on Xyrem's IP (REMS or DDI). Although FT218 does use the same drug substance, it consists of a substantially different drug product. The label should add more clarity,” he explained.Additionally, management has made a significant effort to drive a turnaround. Brisebois points out that since CEO Greg Divis was appointed in June 2019, he has offered clear guidance on enrollment, which has led to huge gains in the share price. He also mentioned, “Dr. Jordan Dubow's appointment as CMO was key because of his important role in adjusting the original study design (data a year ahead of expectations). New CFO Thomas McHugh's commercial experience is crucial.”Given everything that AVDL has going for it, it’s clear why Brisebois joined the bulls. In addition to initiating coverage with an Outperform rating, the analyst put a $19 price target on the stock. What does this mean for investors? Upside potential of 134% is at play.Overall, the bulls take the lead on this one. Out of 5 total reviews published in the last three months, all 5 analysts rated the stock a Buy. Therefore, the message is clear: AVDL is a Strong Buy. The $18.40 average price target implies shares could skyrocket 126% in the next twelve months. (See Avadel stock analysis on TipRanks)CymaBay Therapeutics (CBAY)Last but not least we have CymaBay Therapeutics, which develops therapies designed to improve the lives of patients with liver and other chronic diseases. Given its impressive technology, Oppenheimer has high hopes.Covering the stock for the firm, analyst Jay Olson points out that its seladelpar asset produced strong results in the ENHANCE Phase 3 study in PBC. As it was terminated early and there were only a small number of patients that reached 12 months, the primary endpoint was changed to 3 months. The revised primary composite and key secondary ALP normalization endpoints were both statistically significant at 10mg. “We believe these impressive efficacy results could set a new paradigm for physicians and patients as they strive to achieve ALP normalization,” the analyst commented.Going into more detail, 30% of patients in the study had moderate-to-severe pruritus, and the pruritus levels were balanced and representative of high-risk PBC patients, in Olson’s opinion. Unlike Ocaliva, which has a warning for severe pruritus with management strategies that include temporary dosing interruption, seladelpar was able to generate a substantial improvement in pruritus.Based on this promising data, CBAY could kick off a Phase 3 PBC study. “We expect CBAY to initiate this simplified Phase 3 PBC trial in 1Q21 with 12-month primary endpoint for pivotal data in 2023. The safety profile of seladelpar is similar to placebo and compares favorably to Ocaliva's which has a boxed warning for dosing in certain patients,” Olson stated.When it comes to the NASH indication, Phase 2b 52-week biopsy data, which showed a solid reduction in fibrosis and NASH resolution, could support seladelpar’s progression to Phase 3. It should be noted that CBAY might seek a partner here.With the company boasting a path forward in 2L PBC that could establish seladelpar as the standard of care, the deal is sealed for Olson. To this end, the analyst rates CBAY an Outperform (i.e. Buy) along with a $12 price target. This figure suggests 127.5% upside potential from current levels. (To watch Olson’s track record, click here) Looking at the consensus breakdown, other analysts echo Olson’s sentiment. With 8 Buys compared to no Holds or Sells, the word on the Street is that CBAY is a Strong Buy. In addition, the $12 average price target is identical to the Oppenheimer analyst’s. (See CBAY stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched 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 and to consider your own personal circumstances before making any investment.

  • 3 Big Dividend Stocks Yielding Over 8%; Raymond James Says ‘Buy’
    Business
    TipRanks

    3 Big Dividend Stocks Yielding Over 8%; Raymond James Says ‘Buy’

    Investment firm Raymond James has released its July performance recap, summing up the fourth month of the economic recovery. The firm notes that the early weeks of this recovery cycle showed a V-shaped turnaround for the economy, which has since slowed, taking a “treading water” patter. Raymond James sees defensive stock plays in a strong position, as they have somewhat outperformed since the second week of June.Raymond James strategist Tavis McCourt sees the slowing pattern as predictable, and linked to the pace of Congressional action on recovery stimulus packages. McCourt writes, “With D.C. negotiating another package, it is likely that high frequency economic data will decelerate in early August before another round of stimulus is signed, but the market clearly believes the likelihood is that more direct support at similar scale is likely through the election.”This makes defensive stocks part of a consistent strategy, to keep returns coming in for reinvestment. With this in mind, we used TipRanks database to pull up the stats on three stocks that Raymond James analysts have tapped as buying propositions. These are stocks with a specific set of clear attributes, that frequently indicate a strong defensive profile: a high dividend yield -- over 8%; and a considerable upside potential.Phillips 66 Partners (PSXP)The first stock on our list is the midstream affiliate of Phillips 66. PSXP spun off the oil giant to operate the natural gas and crude oil pipelines, along with terminals and processing plants, that move product from the producer to the distributors. The company’s network of transport assets extends from the central US to the Gulf coast of Texas and Louisiana.PSXP has shown a combination of poor share performance in the economic downturn plus relatively strong quarterly earnings. The stock is still down 53% from February’s pre-crash levels, while EPS beat expectations in both Q1 and Q2. The second quarter results also showed a sharp upward turn sequentially from Q1, coming in at $1.05.The company has used its earnings to keep up the dividend payment. The quarterly payment has been stable at 87.5 cents per common share for the past three quarters, and at $3.50 annualized give a yield of 12.7%. This is more than 6x higher than the average dividend yield found on the S&P 500. PSXP has a 7-year history of dividend reliability.The dividend is only part of the positive picture here. Raymond James analyst Justin Jenkins writes, “Despite the near-term volatility in PSXP from pandemic/demand and regulatory risks, we remain positive on the long term outlook. Longer-term, PSXP benefits from a solid backstop from Phillips 66 (PSX) relative to peers. The interplay between the Phillips franchise provides growth optionality, especially as demand normalizes…”Jenkins gives this stock a Buy rating, and his $36 price target suggests an upside of 30% for the coming year. (To watch Jenkins’ track record, click here)Overall, Phillips 66 Partners has a Moderate Buy from Wall Street’s analysts, based on 6 Buy and 3 Hold ratings given in recent weeks. The stock is currently trading for $28.15, and the average price target, at $37.11, is slightly more bullish than Jenkins’, suggesting a 32% one-year upside to the shares. (See PSXP stock analysis on TipRanks)Black Stone Minerals LP (BSM)Next on our list, Black Stone Minerals, is another player in the hydrocarbon industry. Black Stone is an exploration and development company, with land use rights on 20 million acres in 40 states, with two main focuses: the South, with holdings from Texas across to Alabama, and the Northern Plains, where it operates in Montana and the Dakotas. Appalachian gas plays in West Virginia and Pennsylvania round out Black Stone’s operations.Depressed demand and economic lockdown policies kept impacted profits, and Black Stone’s earnings dropped sharply in Q2. The company has maintained its dividend payment, however, adjusting the payout to keep it in-line with debt reduction efforts and improved free cash flow during 1H20.The success of those efforts can be seen by the 88% increase in the dividend from Q1 to Q2, despite the fall in earnings. The current dividend is 15 cents per share, or 60 cents annualized, and gives a strong dividend yield of 8.2%. Covering the stock for Raymond James, analyst John Freeman gives BSM shares a Buy rating. His $9 price target suggests it has room for a 22.5% upside potential in the next 12 months. (To watch Freeman’s track record, click here)Supporting his stance, Freeman points out the company’s improving balance sheet. He writes, “As a result of their announced asset sale, BSM's borrowing base was reduced to $430M (down 7%) in 2Q. The company had $153M drawn at the end of July putting their utilization at a little over 35% currently. BSM ended the quarter with leverage at a low 1x.” "We applaud the reduced leverage profile and increasing distribution (nearly doubled q/q), while continuing to like BSM's diverse asset base and steps towards Shelby Trough development," the analyst added. Overall, the analyst consensus rating on Black Stone, a Moderate Buy, is based on an even split – 2 Buys and 2 Holds. The stock’s $9.25 average price target suggests an upside of 26% from the $7.38 trading price. (See BSM stock analysis on TipRanks)Oneok, Inc. (OKE)Last on the list today is Oneok (pronounced One-Oak), another midstream company in the natural gas industry. Oneok operates in the Permian Basin, the Mid-Continent region, and the Rocky Mountain states, with a network of assets including pipelines, processing plants, and storage facilities.Oneok has underperformed in 1H20, despite a strong Q1 performance. The company’s earnings fell from 83 cents per share in first quarter to 32 cents in the second. Shares fell sharply in early March, and have yet to recover value; OKE is down 54% from pre-crash levels, and is simply not gaining traction.At the same time, the company does have those valuable midstream assets, and has held its dividend stable at 93.5 cents per common share, giving a yield of 12.8%. Those strengths make the low share price an attractive point of entry, a factor noted by Raymond James.Writing for the firm, James Weston says, “At ONEOK (OKE), we still see a solid management team, generalist-friendly structure, and intense Bakken operating leverage in a more constructive environment (which may begin to show itself somewhat in 3Q financials). True, Bakken regulatory headwinds would drive tack-on impacts through the value-chain and could push leverage sustainably above ~5x in our model. However, the painful ~60% YTD sell-off took OKE from a peer premium to a slight peer discount, largely pricing in this risk. Further, OKE remains an attractive total return story as our base case avoids a cut to its ~13% dividend yield."To this end, Weston puts a $33 price target behind his Buy rating, implying a about 10% upside to the stock from current levels. (To watch Weston’s track record, click here)Overall, with 2 Buy ratings, 13 Holds, and 1 Sell, the analyst consensus rating on OKE is a Hold. Meanwhile, the stock is selling for $29.73, and the average price target, $34.07, suggests it has ~15% upside for the year ahead. (See Oneok’s stock-price forecast on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched 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 and to consider your own personal circumstances before making any investment.