Yahoo Finance's Myles Udland highlights some of the standout themes from this year's World Economic Forum, including climate change dominating conversation. For earnings on Wednesday, Johnson and Johnson and Raymond James are among the notable names expected to report results. WATCH »
In an unpredictable market, dividend and distribution payments are one of the few things investors can reliably count on. Unfortunately, many stocks that have the highest dividend yields come with a catch. When a stock drops, dividend yields rise given they are calculated as a percentage of share price.
The term 'buy when there's blood in the streets' was coined in the 18th century by Baron Rothchild. The contrarian act, as most investors know, is a preemptive call to load up on shares of downtrodden and badly performing companies that have recently taken a severe beating in the market but present the perfect timing to invest. While some investors automatically avoid underperforming names, the ones willing to take the risk can often receive handsome reward once the company at question executes a turnaround.Wall Street pros know the system well and are often on the lookout for such opportunities. With this in mind, We'll open up the TipRanks database and take a look at three beaten down stock which those in the know think are ripe for a trend reversal. We used TipRanks’ Stock Screener to get the lowdown, and we also noticed that currently all three boast Strong Buy consensus ratings from the Street. Let’s check them out.World Wrestling Entertainment (WWE)Talk about bloody and beaten down stocks leads us nicely into the first name on our list; World Wrestling Entertainment. In contrast to the S&P 500’s record breaking performance last year, WWE lost almost 13% of its share price in 2019. The drop was reflected in WWE’s waning popularity – lower live attendances and TV ratings on top of less streaming subscribers are all worrying trends for the company.That’s the bad news, then. The good news is that WWE has taken care of TV revenue for the next 5 years. The company’s new US deal for its Raw and SmackDown programs should see it pocket in the region of $500 million annually over the period, which is approximately double what it made in the past year. Furthermore, its NXT brand brings in from Comcast an additional $30 million a year. With more international deals in place, the question is whether the company can turn around the declining figures to ensure its longevity once the current deals expire.Needham’s Laura Martin thinks WWE has what it takes. The 5-star analyst recently interviewed WWE’s management and came away confident in its prospects. Martin said, “WWE believes it can continue to grow US subs, even in the context of more fragmentation of audiences, suggesting that super-fandom niche OTT service are largely immune from the Streaming Wars between deep-pocketed general entertainment SVOD services. If true, this has positive implications for WWE's pricing power. Also, WWE uses social media and its linear TV air-time to lower its customer acquisition costs for its new OTT subscribers."Martin, therefore, reiterated her Buy rating on WWE. The 5-star analyst’s price target comes in at $88 and represents potential upside of 40%. (To watch Martin’s track record, click here)The Street agrees. A unanimous 10 Buy ratings dished out over the last 3 months presents WWE with a Strong Buy consensus rating. The average price target of $81.56 implies possible upside of 30%. (See WWE stock analysis on TipRanks)Ollie's Bargain Outlet (OLLI)Ollie's Bargain Outlet stock has had quite a ride last year, increasing by over 50% before crashing back down whilst shedding 40% of its value. 2020 hasn’t kicked off all that well either; Ollie’s is down by nearly 18% year-to-date.The sell-off comes despite a better than expected F3Q19 report. Net sales of $327 million represented an improvement of 15.3% year-over-year and resulted in adjusted (non-GAAP) net income of $26.8 million, an increase of 28% over the same period in the prior year.Ollie’s has also been expanding opportunistically; last year the company bought 12 Toys R Us locations and leased six others around the country following the former toy giant’s bankruptcy. It also purchased almost $200 million dollarsof toys from Toys R Us suppliers’ excess inventory.So, with Mr. Market being unkind to Ollie’s, should investors stay away? Not according to RBC analyst Scot Ciccarelli.The 5-star analyst believes the recent sell-off spells opportunity, noting, “We think Ollie’s has one of the best long-term store growth profiles in the Hardlines/Broadlines Retail sector. Further, the company’s stores generate strong cash-on-cash returns of ~60%+, with 4-wall EBITDA of $585,000–600,000 ($630,000 in most recent vintages) on an initial $1 million investment. In addition, its constantly changing/treasure hunt-oriented shopping experience, coupled with its steep clearance-level prices, should help insulate the company against e-commerce cannibalization.”Accordingly, Ciccarelli reiterated an Outperform rating on Ollie’s, while raising his price target from $69 to $76. The new price target represents possible gains in the shape of 42.5%. (To watch Ciccarelli’s track record, click here)Based on the consensus breakdown, the majority on the Street also back the discount retailer’s prospects in 2020. 4 Buys and a single hold assigned over the last 3 months amount to a Strong Buy consensus rating. At $72, the average price target presents possible upside of ~36%. (See OLLI stock analysis on TipRanks)Madrigal Pharmaceuticals Inc (MDGL)Completing our trio of beaten down stocks is Madrigal Pharmaceuticals, which saw its shares falling nearly 20% in 2019.In mid-December, the drugmaker's shares responded negatively to the announcement that a few investment funds affiliated with Bay City Capital are heading for the exits. The funds offered 1,200,000 Madrigal shares at $107.85 apiece -- a 9% discount to the previous closing price. In other words, the funds probably had to price the offering at a discount simply to entice investors.But things aren’t as bad as they may seem, argues Evercore analyst Joshua Schimmer.Madrigal is one of several companies hoping to bring a therapy for NASH disease (Non-Alcoholic SteatoHepatitis), a fatty liver disease that due to the obesity epidemic has been attracting lots of investment capital in search of a possible treatment. NASH medications are expected to increase into a massive market over the next decade, and as there are currently no NASH-specific drugs available, whoever brings a viable solution to the market will likely be well rewarded.Madrigal's lead drug candidate is resmetirom (MGL-3196), an orally administered, thyroid hormone receptor (THR) β-selective agonist. The drug is currently in a Phase 3 trial, after showing positive data in the 2 prior trials.Schimmer thinks “2020 is an execution year” for Madrigal. The 5-star analyst said, “We continue to believe that resmetirom may have a differentiated profile, as a clean, oral therapy… the company’s P2 dataset continues to stack up well to the competition which has seen multiple recent disappointments in the field. We continue to believe that resmetirom (MGL-3196) has a strong chance of success in P3, with results expected in ~2021.”To this end, Schimmer reiterated an Outperform rating on Madrigal along with a price target of $250. This implies upside potential of a massive 192%. (To watch Schimmer’s track record, click here)On the Street, Madrigal’s Strong Buy consensus rating breaks down into 6 Buys and 1 Hold. The average price target of $169.67 implies upside potential in the shape of 100% over the next 12 months. (See Madrigal stock analysis on TipRanks)
International Business Machines Corp. shares rose in the extended session Tuesday after the technology giant turned in a surprise revenue gain, its first year-over-year sales increase in more than a year.
(Bloomberg) -- Tesla Inc.’s market value briefly crept above $100 billion for the first time, a threshold that will trigger a huge payout for Elon Musk if he can sustain the feat for months.The electric-car maker’s shares climbed as much as 1.4% in after-hours trading Tuesday after closing the regular session up 7.2%. At the post-market high of $555.10, Tesla’s market capitalization was roughly $100.1 billion, just short of Volkswagen AG’s $100.6 billion.Musk, Tesla’s billionaire chief executive officer, is eligible to receive the first tranche of an all-or-nothing pay award if the company’s market value stays above $100 billion for a sustained period. On paper, the first chunk of the award would net him about $346 million.Tesla shares have more than doubled since the company reported a surprise third-quarter profit and told investors it was ahead of schedule opening its factory in China and bringing out its next product, the Model Y crossover. Musk, 48, has built a commanding lead selling electric vehicles over established automakers.Wall Street’s most bullish analyst on Tesla was behind Tuesday’s rally. New Street Research analyst Pierre Ferragu predicted the company will sell 2 million to 3 million cars per year after 2025 at industry-leading margins. He raised his price target by $270 to $800, the highest among analysts surveyed by Bloomberg.\--With assistance from Tom Randall, Dana Hull and Anders Melin.To contact the reporter on this story: Craig Trudell in New York at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, Young-Sam ChoFor 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.
As you invest for retirement, becoming a millionaire might be a reasonable goal. Yes, millionaire status is no longer rarefied air, and depending on your income needs, having at least $1 million in the bank might be necessary to last … Continue reading ->The post How To Invest $100,000 (and Turn It Into $1 Million) appeared first on SmartAsset Blog.
If investors think cash is king in these equity markets, they ought to think again, suggests Ray Dalio.
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Scott Minerd has a message for his fellows at Davos who are applauding rallying markets: Things aren’t as good as they seem.The Guggenheim Partners investment chief likened the inflation of asset prices caused by the loose money policies of central banks to a “ponzi scheme” that eventually must collapse.“We will reach a tipping point when investors will awake to the rising tide of defaults and downgrades,” he wrote in a letter from the World Economic Forum meeting. “The timing is hard to predict, but this reminds me a lot of the lead-up to the 2001 and 2002 recession.”Minerd’s warning to clients came before U.S. President Donald Trump spoke to a delegation in Davos, where he faulted the U.S. Federal Reserve for trying to raise interest rates and said the central bank took too long to lower them. The European Central Bank will on Thursday decide about the direction of interest rates as officials weigh the extent of an economic slowdown.Minerd cited rising defaults despite a rally in riskier assets, and reiterated a warning that BBB-rated bonds risk further downgrades. He said that type of debt is at a greater risk of deterioration than it was in 2007.Anne Walsh, Guggenheim’s fixed-income chief, said in an interview that 15% of the U.S. economy is already in recession. She said the Federal Reserve’s efforts to pump liquidity into markets has created “zombie companies” that may see an outflow of capital as the utility of that money continues to diminish, she said.The longer that this market runs, the harder the fall will be when it ends, she said.“Patience will lead to bigger opportunities for disciplined investors who don’t wander off into exotic asset classes or chase current returns,” Minerd wrote in the letter.(Updates with quotes in the final paragraph and context in paragraph four.)To contact the reporters on this story: Ross Larsen in Rome at email@example.com;Sonali Basak in New York at firstname.lastname@example.org;Sridhar Natarajan in New York at email@example.comTo contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at firstname.lastname@example.org, Ross Larsen, Stefania BianchiFor 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.
The Dow Jones Industrial Average slipped from its high of the day after a report said that U.S. Centers for Disease Control and Prevention is expected to announce that the first case of coronavirus was found in the U.S.
Here are the basics on how Buffett achieved success — and you can, too.
Toyota Motor Corp <7203.T> said on Tuesday it will recall 3.4 million vehicles worldwide because of an electronic defect that can result in air bags not deploying in crashes. The recall, which includes 2.9 million U.S. vehicles, covers 2011-2019 Corolla, 2011-2013 Matrix, 2012-2018 Avalon and 2013-2018 Avalon Hybrid vehicles and is tied to a report of one fatal crash. The vehicles may have an electronic control unit that does not have adequate protection against electrical noise that can occur in crashes, which could lead to incomplete or non-deployment of the air bags.
Three S&P; 500 stocks joined in the trillion-dollar club: Microsoft, Apple and now Alphabet. Analysts think they know which stock will be next.
When looking for the best artificial intelligence stocks to buy, investors should expand their search to unexpected fields. Salesforce.com and Trade Desk are among AI stocks on IBD's radar.
It's hard to put a positive spin on terrible situation, but that didn't stop Goldman Sachs CEO David Solomon earlier today. Asked during a session at the World Economic Forum in Davos about WeWork's yanked IPO in September, Solomon suggested it was proof that the listing process works, despite that the CFO of Goldman -- one of the offering's underwriters -- disclosed last fall that the pulled deal cost the bank a whopping $80 million. Investment banks had reportedly courted WeWork's business by discussing a variety of figures that led cofounder Adam Neumann to overestimate how it might be received by public market shareholders.
Shares of Nio Inc. shot up 12.5% toward an 8-month high in afternoon trading Tuesday, once again reversing course sharply after posting losses earlier in the session. That puts the China-based electric car maker's stock on track to extend its record win streak to nine sessions. The stock opened down 1.5% at $4.67, then fell as much as 3.2% to an intraday low of $4.52, before swinging higher. Nio's stock was the most actively traded on major U.S. exchanges, with trading volume of 131.7 million shares, compared with the full-day average of about 77.8 million shares. The stock has now run up 62.3% during its win streak, which is the longest since the company went public in September 2018. During the streak, the stock has traded in negative territory in six of the sessions before eventually turning higher. Helping propel Nio's stock during the streak included upbeat deliveries data, the fact that U.S.-based EV maker Tesla Inc.'s stock has also been roaring higher and the disclosure that Nio's largest shareholder, Ballie Gifford & Co., had bumped up its stake in Nio to just over 13% from about 11%. Nio's stock has now more than tripled (up 211.0%) over the past three months, while Tesla shares have more than doubled (up 113.8%) and the S&P 500 has gained 10.4%.
Billionaire investor Paul Tudor Jones is nothing short of flabbergasted by economic and monetary policy coming from Washington. It reminds me a lot of early ’99 [when inflation was low and stock markets were soaring].
Amazon.com Inc. (NASDAQ: AMZN) will release its fourth-quarter results late next week. It's been able to do so by dominating both cloud computing, with Amazon Web Services capturing some 47.8% of cloud infrastructure leasing, and e-commerce, with 49% of all online sales in the U.S. occurring on its platform. Here are a few key things to keep in mind: Amazon's net sales are expected to be $80 billion to $86.5 billion, according to the company's third-quarter forecast.
EBay Inc. has laid off 102 employees in San Jose and San Francisco, with additional layoffs reported in the company’s Seattle office. The San Jose e-commerce giant notified the state of California of the 102 Bay Area layoffs on Wednesday, with most of the cuts affecting San Jose employees. “It is part of our normal course of business to regularly evaluate initiatives and investments for eBay’s continued long-term success,” company spokeswoman Julianne Whitelaw told the Silicon Valley Business Journal in an email.
(Bloomberg) -- As Visa Inc., Mastercard Inc. and American Express Co. prepare to enter China for the first time, one of their biggest competitive threats will come from a company that doesn’t issue credit cards.Jack Ma’s Ant Financial, already the biggest player in China’s $27 trillion payments market, is leveraging its ubiquitous Alipay mobile app to mount a rapid expansion into consumer lending.Instead of issuing cards, Ant allows customers to borrow with a few taps on their smartphones. The loans are wildly popular among China’s army of mobile-savvy shoppers, who often lack formal credit histories but generate enough financial data via Alipay for Ant to make informed decisions on whether they’ll default. The company’s outstanding consumer loans may swell to nearly 2 trillion yuan ($290 billion) by 2021, according to Goldman Sachs Group Inc. analysts, more than triple the level two years ago.“The consumer loans business has been growing at breakneck speed, but there are so many untapped users,” Huang Hao, president of Ant’s digital finance operations, said in a phone interview outlining the company’s strategy.Ant’s push into China’s 10 trillion yuan market for short-term consumer loans will make it an even more formidable challenger to U.S. card companies, which are counting on the world’s second-largest economy as a source of long-term growth.Many Chinese consumers and businesses are ditching credit cards as Ant and its main competitor Tencent Holdings Ltd. make app-based spending, borrowing and investing increasingly user-friendly. In a Nielsen survey of more than 3,000 Chinese people born after 1990, nearly 61% said they use online consumer credit while only 45.5% had a credit card.“For credit card companies coming to China, the biggest challenge is how to attract people,” said Zennon Kapron, managing director of Singapore-based consulting firm Kapronasia. “A lot of Chinese millennials are digital first, used to using Alipay as their first platform for payments, loans and wealth management.”The card giants appear to be moving forward with their China plans despite the headwinds. AmEx’s application to start a bank card clearing business has been accepted by the country’s central bank, while Mastercard has called China a “vital” market and Visa has said it’s working closely with regulators for a license.As part of its phase-one trade agreement with the U.S., China said it won’t take longer than 90 days to consider applications from providers of electronic-payments services. Regulators are opening the industry to foreign competition amid an unprecedented push to give international firms access to the country’s financial sector.Read more: Visa, Mastercard, AmEx Win Easier Access to China MarketIn response to questions from Bloomberg on the threat posed by Ant, Visa said it sees significant potential to support the growth and evolution of digital payments in China and is approaching the market with a long-term focus. Mastercard said it would continue to work with regulators to advance its application and is committed for the long haul. AmEx declined to comment.Ant, an affiliate of Alibaba Group Holding Ltd. that’s widely expected to pursue an initial public offering in coming years, started its consumer-credit business in 2015. Its loans tend to be small: half the users of Ant’s Huabei (translation: “just spend”) service borrow less than $290 and usually pay it back within months.The Hangzhou-based company, which declined to disclose the value of its outstanding loans, keeps delinquencies in check by tapping into a trove of data amassed by Alipay and Alibaba.Many customers have been using the payments and e-commerce platforms for years -- handing over details from ID cards to addresses and spending habits. Once Ant extends a loan, it can track how the money is spent via Alipay. The result is a bad-debt ratio stands at about 1%, below the 1.24% national average for credit cards.Read more: China’s Gen Z, With Little Income, Gets Hooked on Easy CreditAnt keeps some of the loans on its own balance sheet, charging interest rates that range from about 5% to 18%, according to Huang. But most are passed on for a fee to banks and other financial institutions.“We’re set to continue to work with more banks and finance companies,” Huang said. “We are, at the end of the day, a platform.”The risk for Visa, Mastercard and AmEx is that a swathe of Chinese consumers and businesses will view credit cards as obsolete. About 60% of borrowers on Ant’s Huabei platform don’t have one, and many smaller merchants don’t accept cards because they find it’s cheaper and easier to use Alipay or Tencent’s WePay. The former, with more than 900 million users, is Alibaba’s preferred payments provider.“The competitive landscape is full of local players,” said Hang Qian, a partner at Oliver Wyman, a consultancy. “The key challenges are how to promote small merchants to accept credit cards and how to get e-wallet users to switch.”\--With assistance from Alfred Liu.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Michael Patterson at firstname.lastname@example.org, Jodi SchneiderFor 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.
The cannabis sector has seen a huge rally over the last week and Aurora Cannabis (ACB) is no exception. Some general excitement over a competitor’s quarterly earnings report and some positive regulatory headlines from the U.S. have investors throwing caution to the wind again. The company still has too many unresolved risks to rush into the stock here just because a competitor beat quarterly estimates due to a large bulk wholesale deal.Money Losing OperationsThe firing of CCO Cam Battley and the placing of a facility on the market for sale at a price of C$17 million doesn’t alter the bleak financial prospects of Aurora Cannabis. In the last quarter alone, the Canadian cannabis company reported an EBITDA loss of C$39.7 million.A capex cut might help stem the cash flow burn, but Aurora Cannabis has made limited steps announced to the public on the operational side. The company needs higher revenues and reduced costs in order to reach EBITDA profitable, a measure that doesn’t even factor in potentially mounting interest expenses into the cash burn equation.The big story coming up with the FQ2 results in mid-February is whether the company restructures operations to reduce the operating expense base of C$81.1 million. Aurora Cannabis already has solid gross margins near 60% so the key to success is matching the expense side of the equation with gross profits reduced by disappointing sales.Wholesale Sales The Organigram (OGI) earnings beat has the whole market up, but the company beat sales estimates based on a surprise bulk wholesale sale of C$9.2 million. Aurora Cannabis had a similar quarterly boost back in the June quarter where an additional C$18.0 million in bulk wholesale sales boosted those numbers sending the stock up to $6.50 back in September. The stock didn’t hold up at the end of 2019, partly because the September quarter sales saw wholesale revenues decline 50% to only C$10.3 million.The addition of competition in the wholesale space should hurt the ability of the company to repeat the revenue boost from bulk sales at 60% gross margins. Without the bulk sales, OrganiGram didn’t see any jump in revenues sequentially for the last quarter following the weak August quarter hit by lack of provinces ordering and product returns.Aurora Cannabis avoided the product returns hit, but the company saw sales dip last quarter. Investors shouldn’t expect any revenue boost this quarter outside of the wholesale sales. Analysts forecast December quarterly revenues of C$80 million which won’t inspire the market to chase this rally back above $2.With at least 1.2 billion shares outstanding, the stock has a market value of ~$2.5 billion and quarterly revenues of $60 million aren’t going to inspire investors to hold the sock assuming the adjusted EBITDA levels don’t show any major improvement.Consensus VerdictAll in all, the Street's current view on Aurora Cannabis is a mixed bag, indicating uncertainty as to its prospects. The stock has a Hold analyst consensus rating with only 3 recent "buy" ratings. This is versus 2 "hold" and 5 "sell" ratings. However, the $2.83 price target suggests an upside potential of nearly 40% from the current share price. (See Aurora Cannabis stock analysis on TipRanks)TakeawayThe key investor takeaway is that Aurora Cannabis has a lot of positive catalysts to play out in 2020, but the company needs to reorganize the firm to reduce operating expenses following delayed catalysts in 2020. The stock has seen a recent boost due to some over excitement about the rebound in sales at Organigram, but investors should be cautioned that the revenue beat was due to low quality sales.To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Shares of highly rated biotech company Arrowhead Pharmaceuticals crashed to a two-month low Tuesday after an analyst initiated coverage of ARWR stock with an underperform rating.
For the first time in seven years, chip giant Intel Corp. has a new chairman of the board after Andy Bryant announced his departure last spring. At its Jan. 15 meeting, the board elected lead independent director Omar Ishrak chairman. Ishrak is the chairman and CEO of medical technology company Medtronic.
(Bloomberg) -- McDermott International Inc. filed for bankruptcy after the engineering and construction company reached an agreement with creditors to tackle debt acquired through a botched acquisition.The Houston-based company has estimated liabilities of between $1 billion and $10 billion, according to the filing in the Southern District of Texas.The firm has the support of two-thirds of the holders of its funded debt in a pact that will eliminate more than $4.6 billion of debt by swapping it for equity, according to an earlier statement.McDermott also agreed to sell its Lummus Technology unit for at least $2.725 billion to a joint partnership between the Chatterjee Group and Rhône Group, it said. The company’s stock fell about 10 cents a share to 60 cents before trading was halted early Tuesday morning.McDermott specializes in building and installing large, expensive items like oil platforms and natural gas plants, a business that’s under pressure as low energy prices discourage new construction. The company’s shares and bonds cratered in 2019 as it struggled with the debt taken on from its $3.5 billion takeover of Chicago Bridge & Iron Co. in 2018.As those woes mounted, the company skipped a Nov. 1 interest payment on its bonds, triggering a 30-day grace period to make the payment. Some of its bondholders had agreed to hold off on taking action until January 21.The company plans to finance its bankruptcy with a $2.81 billion debtor-in-possession loan and has secured exit financing of more than $2.4 billion. McDermott expects to emerge from bankruptcy with about $500 million in debt.(Updates with bankruptcy filing)\--With assistance from Allison McNeely.To contact the reporters on this story: Jeremy Hill in New York at email@example.com;Nicole Bullock in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Shannon D. HarringtonFor 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.
Rumors of a new reorganization and layoffs at Intel are once again swirling. At the same time several other computing companies and startups are growing offices in the Portland metro.