U.S. stocks plunged this week. Protect your 401(k) by taking these four steps.
Do you want to know when it is going to finally be time to buy equities? You would first better have a view of where this virus is going, advises BNY Mellon’s chief strategist.
DEEP DIVE The S&P 500 Index fell five straight days through Wednesday since hitting a closing high Feb. 19, for a combined decline of 8%. A “correction” is typically considered to be a decrease of at least 10%, and the index might get there Thursday.
That was President Donald Trump’s record, from Wednesday night’s coronavirus press conference, when it came to talking about the stock market.
Jim Cramer has some thoughts on the markets, the Federal Reserve and Microsoft as coronavirus fears shake Wall Street. Stock futures declined sharply Thursday, putting Wall Street on pace for its worst week since the global financial crisis in 2008, as coronavirus infections accelerated and health officials confirmed that a California man contracted the disease despite having no travel links or contacts with those afflicted by the virus. The company warned investors that it will fall short of previously issued fiscal third-quarter sales guidance of between $10.75 billion and $11.15 billion for its "more personal computing" segment, which includes Windows OEM and Surface.
Is the market drop getting out of hand? A veteran chart watcher says don’t argue with the market, but be prepared for the possibility of a “rip-roaring rally” when the selloff subsides.
Moderna took investors on a ride Thursday as MRNA stock rocketed, was halted and then plunged in a matter of hours. Moderna representatives haven't confirmed why the stock was halted.
The 2019 coronavirus or COVID-19 has infected over 82,000 people globally and roiled financial markets. Some are concerned and others view this as an overreaction. Here's what they're saying.
Investors can selling downside put options on blue-chip stocks that they can hold for at least a few years. But there’s another trade worth considering—one that is still under the radar.
Alpha Pro Tech announced a spike in face mask orders amid the spiraling coronavirus outbreak, a day after disclosing earnings for the fourth quarter.
“Natalie” is $148,851 deep in student loans for her sick child and is finding it increasingly harder to get by. (We changed Natalie’s name for privacy purposes, as she is not a public figure.)
Markets have taken a pounding in recent sessions, with the S&P 500 losing nearly 8% in the last 6 days. Opinion is divided on the cause, with most pointing to the impact of the coronavirus outbreak on China’s economy and on global trade and travel patterns. It hasn’t escaped notice, however, that the sudden hit to the market has occurred just as Senator Bernie Sanders, an avowed socialist with a vigorous anti-Wall Street policy platform, has taken a commanding lead in the race for the Democratic Party Presidential election nomination.Whatever the reason, markets have erased the gains they’ve posted so far in 2020, and fallen back to their December 2019 levels. It may not be a warning sign to get out of stocks, but it’s certainly a reminder that it’s never too late to buy into a defensive portfolio. And that will naturally bring dividend stocks to mind.Any strong defensive investing strategy will include dividends. They ensure an income stream, even when markets turn down. Warren Buffett, certainly no stranger to smart investing, is long-term fan of dividend investing, as a look at Berkshire Hathaway’s holdings shows.The Oracle of Omaha is bumping up his holdings when it comes to dividends, and he’s openly citing the coronavirus scare. While conceding in a recent CNBC interview that the viral outbreak is certainly “scary stuff,” Buffett adds that the long-term outlook remains strong. And when Warren Buffett says, ‘long term,’ he means just that: “We’re buying businesses to own for 20 or 30 years. We think the 20- to 30-year outlook is not changed by the coronavirus.”We’ve looked into Buffett’s recent holding additions, and using the TipRanks Stock Screener tool, we've chosen three stocks with particularly high yield dividends and substantial upside potential – over 25% for the coming months. Let’s take a closer look. Occidental Petroleum Corporation (OXY)OXY’s dividend comes to $3.16, with the yield at a solid 8.7%. That’s more than 4x the average dividend yield among S&P-listed companies, but not enough to compensate for the stock’s 42% share price loss over the past 12 months. But remember that Buffett sees time horizons for investments in decades. And OXY has a strong foundation for the long term. With that in mind, Buffett bought up over 11 million shares of Occidental Petroleum in the fourth quarter.The company is an energy player big-wig, operating oil and natural gas exploration and drilling rigs in the US, Colombia, and the Middle East, with a heavy investment in the petrochemical manufacturing sector. OXY has a market cap of $32 billion, and pockets deep enough to survive the low oil prices that slowed down the energy sector in 2019. Occidental completed the acquisition of competitor Anadarko late last year, and the resulting debt has been a weight on the company. Long-term, however, the move brings OXY access to $3.5 billion in cost efficiencies and savings.The attraction for Buffett is clear, and it’s no wonder why he bought up those 11,465,546 shares in the company, bringing his total holding in OXY to 18,933,054 shares. That’s 2.5% of the company, and worth over $685 million at current prices.Morgan Stanley analyst Devin McDermott also sees the attraction in Occidental Petroleum. In his recent review of the stock, McDermott reiterated his Buy rating and gave the shares a $59 price target, implying room for a 63% upside. (To watch McDermott’s track record, click here)McDermott wrote in his research note on OXY, “OXY attributed strong 4Q production results to reduced downtime, improved time to market, and strong base and new well performance. Relative to legacy APC operations, we had viewed reduced downtime and well performance improvement as key sources of upside to synergies [...] We believe the dividend, which offers a best-in-class +8% yield, is safe with long-term growth under most scenarios."Overall, OXY shares get a Moderate Buy rating from the analyst consensus, based on a combination of 3 Buys and 5 Holds. Analysts express concern about debt levels – but that hasn’t stopped them form putting an average price target of $50.29 cents on the stock. That suggests a robust upside potential of 39% (See Occidental Petroleum stock analysis at TipRanks)Suncor Energy (SU)The second major Buffett acquisition we’re looking at is Suncor, a $45 billion player in the Canadian energy scene. Suncor is based in Calgary, Alberta, at the center of Canada’s oil sand region. The oil sands have made Alberta major producer of synthetic crude on the world markets, and are widely credited with bringing prosperity to the Plains province.Suncor has shown remarkable resilience in weathering the low oil prices recently, and its volatility actually declined in 2019 compared to 2H18. In the most recent quarter reported, SU showed 39 cents EPS, below the 50 cents expected but still enough to keep up the 32-cent quarterly dividend with a payout ratio of 90%. The next dividend payment, set for March, will show an increase to 35 cents. The annualized payment, $1.40 per share, gives a yield of 4.8%, plenty high enough to attract attention from income-minded investors.Income-minded investors like Warren Buffett. Buffett snapped up 4,261,031 shares in SU during Q4, and now owns more than 15 million shares in the company. It was a 39% increase of his holding, and a major commitment in the Canadian oil industry. Buffett’s full holding in Suncor is worth $437 million at today’s prices.BMO Capital analyst Randy Ollenberger sums up the case for Suncor in his recent note: “Suncor reported Q4/19 financial results that were in line with expectations with stronger upstream performance offsetting weaker downstream results. Suncor increased its dividend 11% and has approved a renewal of its share buyback program... We believe that Suncor is uniquely positioned among its peers to deliver lower-risk returns to shareholders.”Ollenberger puts a Buy rating and a price target of $43.65 on the stock (C$58), suggesting a strong 50% upside. (To watch Ollenberger’s track record, click here)Jon Morrison, writing from CIBC, is also bullish on Suncor. He says of the stock, “Upstream production largely matched our estimates and was at the mid-point of recently revised guidance, capex came in heavy and took the full-year cash spend above the high-end of Suncor’s guidance… we believe a portion of the overspend was driven by the company pulling a few things forward from a planned maintenance perspective…”Along with his Buy rating, Morrison gives SU shares a $53 price target (C$70). This implies a tremendous upside potential of 82% to the stock. (To watch Morrison’s track record, click here)Net net, Suncor’s Moderate Buy consensus rating is based on 6 Buy against 3 Holds. The stock is selling for $29.12 (C$38.71) and has an average price target of $37.13 (C$49.36), indicating room for 27% growth to the upside. (See Suncor stock analysis at TipRanks)General Motors Company (GM)The third big Buffett move we’re looking at today is General Motors, a long-time staple of the Detroit auto industry. GM is the largest of the American automakers, and includes storied names like Cadillac and Chevrolet. And Warren Buffet just increased his holding in the company by over 2.7 million shares. Buffett is on record saying that he prefers investing in companies with simple plans, and GM offers just that: Build cars, and sell them. Pretty basic.GM’s dividend is similar to Suncor’s, at 4.7%. The payment is 38 cents quarterly, or $1.52 annualized. The company has a 6-year history of reliable payments, and has held the dividend steady at its current level since 2016. While Buffett likes dividends that grow steadily, he has no qualms with steady payments – in his view, the key factor is reliability. And GM meets that, making regular payments and beating the both the market average and Treasury notes on yield.GM is taking a lead in the shift towards electric vehicles, and investing heavily in non-gasoline automotive powertrains. While expensive initially, some analysts see this as a path forward, noting that political winds and likely customer choices will favor electric and other non-gasoline vehicles in the mid- to long-term for the auto markets.Morgan Stanley 4-star analyst Adam Jonas holds this view of GM, and writes of the stock, “In our opinion, there is a significant opportunity for a major OEM to show a substantial rate of change through the full electrification of their fleet, in addition to other actions. We believe GM has a chance to be a global leader in this regard. We also see the timing as opportune, with many investors increasingly taking a more assertive role in allocating capital across companies that are making the greatest true efforts to reduce CO2.”Jonas also sees GM in an strong position regarding more tradition financial benchmarks: “GM’s free cash flow profile is one of the most impressive, if not the most impressive, of any global auto stock under our coverage at more than 15% yield on average through 2022. The company’s ability to generate free cash is matched by its proven track record in allocating and returning capital efficiently to investors.”Unsurprisingly, given his bullish outlook on the company, Jonas puts a Buy rating on GM shares along with a $46 price target indicative of a 45% upside potential. (To watch Jonas’ track record, click here)All in all, General Motors’ Strong Buy analyst consensus rating is based on a lopsided split of 8 Buys and a single Hold. The shares are priced low for a blue-chip company, at $31.75, and the $44 average price target suggests an impressive upside potential of 38%. (See GM stock analysis at TipRanks)
The stock market is down significantly, and everyone wants to have answers. Over the course of a 30-year career working with clients, I have seen several radical gyrations of the stock market. Losing money does not feel good.
Financial advisors have long stood by the golden rule of having a portfolio of 60% stocks and 40% bonds, but Suze Orman says the rule no longer applies.
Shares of Co-Diagnostics Inc. , a molecular diagnostics company that has developed a test for the coronavirus, rose another 57% on Thursday, bringing its month-to-date gains to 333%, after the company said it has received a CE Mark for its test. A CE Mark, or certification mark, indicates the test is compliant with health and safety standards that allow it to be sold in the European Economic Area. The stock has been on a tear ever since it came up with the test which it is selling for research use. The virus, which broke out in Wuhan, China last year, has sickened more than 80,000 people around the world. Thursday's gains came even after Co-Diagnostics said it has completed a $4.2 million registered direct offering priced at-the-market. The company has been taking advantage of the virus-driven rally in its stock to issue new shares, although the stock typically falls when it does dilutive financings. Maxim analyst Jason McCarthy said Wednesday Co-Diagostic's test is easier to use than the test in use by the Centers for Disease Control and Prevention. Maxim rates the stock a buy, even after it has gained 1,401% in the year to date. The S&P 500 has fallen 6% in the same time frame.
Highflying stocks such as Tesla and Virgin Galactic are being sold off in the coronavirus-related stock market selloff. But the worst performing stocks in the market are getting hit just as hard.
Stock in iconic American manufacturer (GE) is getting hammered in the coronavirus-related stock market selloff. The S&P 500 and Dow Jones Industrial Average, for comparison, are down roughly 10%. Ten days is a long losing streak, in stock market terms.
There is likely more pain ahead for the semiconductor sector, but Bernstein analyst Stacy Rasgon says investors should get ready to buy some names on the dip. Chip stocks have tumbled this past week, along with equity markets, as the coronavirus spreads outside of China. The (SOXX), which tracks the performance of a widely followed semiconductor-sector index, has declined by about 10% this week, compared with the 9% drop for the S&P 500.
Coronavirus fears have weighed heavily on the market, and investors are seeking refuge. While the situation in China is reportedly improving, health officials warn the spike in new cases throughout the rest of the world underscores the risk of a global pandemic. These statements have rattled financial markets; in the last five days alone, the S&P 500 and NASDAQ indexes have shed 8% and 9% of their value, respectively.Against this backdrop, Wall Street pros remind investors not to panic and rush to a sell-off, pointing out that a select group of tickers still represent compelling opportunities. So, as the broader market plunges, how are investors supposed to find the stocks that are standing strong?Using TipRanks’ Stock Screener tool, we were able to lock in on 3 stocks that have held their own amid the public health crisis. Not only has each been assigned enough bullish ratings to earn a “Strong Buy” analyst consensus, but all of the names also boast plenty of upside potential. Let’s dive in.iClick Interactive Asia Group (ICLK)As an independent online marketing and enterprise data solutions company, iClick enables marketers from all over the world to reach consumers in China. The Hong Kong-based name provides customers with a proprietary platform featuring omni-channel capabilities to meet all of their marketing needs. While coronavirus concerns wreak havoc on the market, ICLK has gained 45% year-to-date, a fact that hasn’t gone unnoticed by the Street.Jeffries analyst Thomas Chong believes that its machine learning and AI-based technology have helped it cement its status as one of the leading marketing technology companies in China. Thanks to its “one-stop shop solution” for both user engagement and acquisition as well as vast consumer data, the company has been able to partner with over 114,000 mobile apps and 2.1 million websites in China, including Tencent which is a platinum partner.With Tencent accounting for 60% to 70% of the company’s gross billings, Chong sees it as potentially fueling significant growth for ICLK. “We estimate marketing solution revenue to grow at 20% year-over-year and 18% year-over-year in 2019 and 2020, benefiting from the secular trend of Tencent’s social advertising. We consider iClick as an independent marketing technology player benefiting from the unique marketing environment in China due to relatively fragmented market share among different internet players vs overseas,” he explained.Additionally, Chong cites its investment in enterprise solutions as being encouraging, arguing that while ICLK may incur losses as a result, the efforts will pay off in the long run. “In 2019, iClick has been stepping up efforts in enterprise solutions on smart retail through Tencent’s mini-programs… We estimate revenue from enterprise solutions to increase from about $10 million in 2019 to $24 million in 2020 and $50 million in 2021, with the number of customers to increase from 30 in 2019 to 60 in 2020,” he stated.In line with his optimistic outlook, Chong started his ICLK coverage by publishing a Buy rating. At $7.96, his price target implies shares could climb 71% higher in the next twelve months. (To watch Chong’s track record, click here)Looking at the consensus breakdown, it has been relatively quiet when it comes to other analyst activity. That being said, the two other analysts covering the stock see it as a Buy, making the consensus rating a Strong Buy. The $7.82 average price target puts the upside potential at 68%. (See iClick stock analysis on TipRanks)Avadel Pharmaceuticals (AVDL)Avadel Pharmaceuticals is focused on developing solutions to address the unmet needs of patients. In addition to its three products already on the market and its development candidate, AVDL is up 37% since the beginning of 2020, making it a stand-out among analysts.Part of the excitement is related to its FT218 candidate. The company’s lead investigational asset, which is in Phase 3 development, was designed as a sodium oxybate formulation for once-nightly use and features patented Micropump technology for extended-release oral suspension to treat excessive daytime sleepiness (EDS) and cataplexy in narcolepsy patients. Previously, management announced that the FDA allowed it to amend the statistical analysis plan (SAP) under the special protocol assessment agreement (SPA). As a result, the company can use a smaller sample size.Ladenburg Thalmann’s Matthew Kaplan points out that this pushed the enrollment completion and REST-ON study data readout timeline forward by about twelve months. As enrollment closed in December, top-line data is expected to be released in Q2 2020. According to Kaplan, this data could support an NDA in the second half of this year as well as possible approval in 2021. Should the candidate receive the go ahead, the four-star analyst believes that it would be superior to the current standard-of-care.To this end, Kaplan recommends investors snap up shares before the REST-ON Phase 3 study readout. “We believe that the majority of the value of AVDL is the FT218 program which has completed enrollment and on track to read out in 2Q20...Given the FT218 pharmacokinetic profile, which was detailed at the Annual Meeting of the Associated Professional Sleep Societies during June 2019 and was also highlighted at the World Sleep Congress in late September 2019, combined with the known efficacy profile of sodium oxybate, we believe there is a high probability of success for the REST-ON pivotal study,” he commented.It should come as no surprise, then, that Kaplan stayed with the bulls, reiterating his Buy call. Adding to the good news, the analyst also bumped up his price target from $8 to $14, implying 35% upside potential. (To watch Kaplan’s track record, click here)Like iClick, Avadel has received 3 Buy ratings vs no Holds or Sells in the last three months, and thus, the consensus rating comes in as a Strong Buy. Not to mention the $14.33 average price target brings the upside potential to 38%. (See Avadel stock analysis on TipRanks)Novavax (NVAX)Biotech company Novavax uses proprietary recombinant nanoparticle vaccine technology to develop vaccine candidates, most recently announcing that it’s advancing an experimental coronavirus vaccine. With this welcome piece of good news pushing shares 132% higher since the year’s start, it’s no wonder Wall Street focus has zeroed in.On February 26, Novavax revealed that it plans to initiate human testing for two or more novel COVID-19 vaccine candidates in either May or June. Currently, several nanoparticle vaccine candidates are being studied in animal models before the ideal candidate is selected. As the company only began development on January 10, the announcement was a pleasant surprise for the analyst community.Michael Higgins of Ladenburg Thalmann highlights its technology which uses both its insect-based vaccine platform and its novel Matrix-M adjuvant as making it the ideal player to combat the coronavirus. Additionally, while some have questioned if a vaccine will be an effective course of action for coronavirus, the analyst believes that a vaccine will be necessary.“We highly doubt this flu outbreak goes away largely on its own since some patients with the prior viruses were highly symptomatic and quarantined, while many developing COVID-19 are contagious before being sick enough to be quarantined,” he explained. Higgins doesn’t dispute the fact that there are other possible drug treatments for COVID-19, including remdesivir from Gilead, but argues that this doesn’t eliminate the need for a vaccine. Additionally, as Novavax has already shown it can produce a safe and effective vaccine against MERS-CoV, the analyst stated “investors are right to buy up NVAX shares” following the February 26 news.Bearing this in mind, Higgins maintained a Buy recommendation and $27.50 price target. This target conveys his confidence in NVAX’s ability to soar 198% over the next year. (To watch Higgins’ track record, click here)What does the rest of the Street think about NVAX’s prospects? It turns out that they also have high hopes for the biotech. With 100% Street support, or 4 Buys to be exact, the message is clear: the stock is a Strong Buy. At 17.38, the average price target suggests 89% upside potential. (See Novavax stock analysis on TipRanks)
The case for buying Disney's stock at the current level is based in part on history, Cramer said. Two decades ago, Bob Iger was named President and COO of the media and entertainment company and shares were trading at around $30. Buying Disney's stock amid the broader coronavirus-induced sell-off may seem like an ill-advised move, but not to Cramer.
Valuations look appealing for some U.S. Internet companies that have joined equity markets in selling off over the last week.
(Bloomberg) -- Tesla Inc. shares fell after China registration data indicated a significant sequential slowdown in demand before the electric-car maker started feeling the brunt of any impact from the coronavirus.Registrations of new Tesla cars plunged 46% to 3,563 in January from December, according to state-backed China Automotive Information Net, which gathers industry data based on insurance purchases. Of the January registrations, 2,605 were for cars built in China.While Tesla had bucked the trend in China’s waning electric-car market in the previous two months, the January drop shows that the U.S. brand isn’t immune to challenges the broader industry is facing. China’s car market probably is headed for a third straight annual decline as the coronavirus outbreak exacerbates a slump started by an economic slowdown and trade tensions.Tesla shares dropped as much as 6.8% shortly after the start of regular trading. The stock had soared 86% this year through the close Wednesday, partly driven by optimism about the company starting to produce Model 3 sedans at a newly built plant near Shanghai.In total, deliveries of new-energy vehicles in China from carmakers to dealerships tumbled 54% last month, according to the China Association of Automobile Manufacturers, an industry body.Tesla began delivering locally built Model 3s to customers in China last month, seeking to boost volumes amid rising competition from the likes of BMW AG and Daimler AG, which are also bringing out new electric cars. The sedans assembled domestically qualify for tax exemptions and subsidies the company has missed out on in the past.The locally manufactured models helped Tesla’s January registrations increase from just 853 a year earlier.The timing of China’s Lunar New Year complicates year-over-year comparisons in the first months of 2020. The holiday fell in January this year and in February in 2019.But business has ground to a halt this month due to the coronavirus, and automakers are expected to come up well short of last year’s sales levels in February. Deliveries to dealers this month are set to slide about 75%, resulting in about a 40% drop in the first two months of 2020, according to the China Passenger Car Association.(Updates with regular trading in deck headline and fourth paragraph)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, Craig Trudell, Tony RobinsonFor 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 Chesapeake Energy Corp. tumbled toward another record low Wednesday, after the oil and natural gas production company said it was planning for a reverse stock split and that the commodities pricing environment has “further deteriorated” in recent weeks.