Individual investors have never been more worried about a U.S. stock market crash. This counterintuitive reaction is because investor sentiment is a contrarian indicator. Historical data on investor beliefs about crash probabilities comes from Yale University finance professor (and Nobel laureate) Robert Shiller.
Pfizer on Tuesday posted third-quarter earnings that beat but sales that missed views, and it said its key Covid-19 vaccine candidate neared full enrollment in clinical trials. PFE slipped.
Don't take your cues from the disappointing outlook at SAP SE , Jim Cramer cautioned viewers of his Mad Money program Monday night. In this daily bar chart of SAP, below, we can see that prices made a huge downside price gap Monday. The On-Balance-Volume (OBV) line moved sharply lower yesterday continuing a decline that started in late July.
Advanced Micro Devices Inc. announced Tuesday morning that it plans to acquire Xilinx Inc. in an all-stock deal valued at $35 billion, confirming recent speculation.
Individual retirement accounts and 401(k) plans often impose penalties if you take money out of a retirement account too soon or too late. There's usually an early withdrawal penalty if you make a withdrawal before age 59 1/2 and a penalty for failing to take annual distributions after age 72. Here's a look at the 401(k) and IRA penalties you won't have to pay this year.
Apple has been an American success story several times over with the Mac, iPod, iPhone and other inventions. But is Apple stock a buy now? Here's what its stock chart and earnings show.
The new Supreme Court justice could help kill the health care law. What if you rely on it?
For a day that marked Tesla's (TSLA) fifth straight quarter of reporting positive profits, last week's 0.7% increase in the share price of Tesla stock seemed somewhat underwhelming.Reporting earnings Wednesday night, Tesla closed trading Thursday up only modestly, and really, only barely outperforming the S&P 500's overall 0.5% move. Tesla called Q3 its "best quarter in history," with pro forma earnings coming in 36% ahead of expectations at $0.76 per share, sales of $8.8 billion about 6% better than predicted, and free cash flowing strongly -- $1.9 billion over the past 12 months.Tesla told investors Wednesday that it remains on target to produce and deliver half a million electric cars this year, despite the fact that "this goal has become more difficult" to achieve in the face of Covid-19. Cybertruck deliveries are expected to begin late next year. Even Tesla's "energy" business -- solar roofs and solar storage -- looks "poised for strong growth," said the company.Much of Wall Street applauded the news, with R.W. Baird and JMP Securities both upgrading Tesla shares to "outperform" and Piper Sandler calling Tesla a "must-own" stock, and as both Oppenheimer and RBC Capital raised price targets on the shares. One analyst, however, stood out from the crowd for his continued pessimism on Tesla:Gordon Johnson of GLJ Research says Tesla is still a "sell."Urging investors not to forget the forest for the trees, Johnson reminds Elon Musk fans that Tesla continues to rely heavily upon taxpayer-funded subsidies in the form of tax credits for the production of zero-emission vehicles (ZEV). With automotive giants such as Ford (F), General Motors (GM), and Volkswagen all ramping up their own sales of electric cars, though, soon they will not need to buy ZEV credits from Tesla to hit their fuel efficiency targets set by California and other "green" states. And this could become a problem for Tesla, says Johnson, because the sale of ZEV credits continues to make up literally all of money that has kept Tesla's profits positive these past five quarters.Ultimately, the 100%-profit revenues generated from the sale of ZEV credits will disappear, warns Johnson, noting that "TSLA, itself, describes credit sales as non-recurring in nature." Although the analyst admits that Tesla's gross margins have grown nicely, hitting 25% in the third quarter even discounting the effect of ZEV credit sales, trouble emerges a bit closer to the bottom line. Johnson notes that the company remains GAAP unprofitable but for the effect of ZEV credits. Back them out, and Tesla would have lost $97 million in Q3. Indeed, back them out and... "TSLA hasn’t been profitable ...since 3Q19."Of course, Tesla is famously viewed by investors as a growth stock. So isn't it possible Tesla can just grow its way out of this problem? Sell more cars, and become so profitable that it no longer needs ZEVs?Maybe. But Johnson isn't optimistic.From Q2 2020 to Q3 2020, Tesla has grown its ability to produce cars to a stated capacity of 840,000 vehicles per year. Despite the added capacity, however, Tesla is only predicting that it might sell 500,000 cars this year. This seems to speak to a lack of demand for the product even at present production levels, and in Johnson's view, this lack of demand explains why Tesla has cut its prices "now 13 times in 2020 alone."Conclusion: Johnson disagrees with those who call Tesla "fairly valued" or even "undervalued" at its current P/E of more than 1,000 times trailing earnings. The analyst rates Tesla stock a sell, and continues to predict a 90% share price decline. (To watch Johnson's track record, click here)Overall, Wall Street is not as bearish on TSLA as Johnson, but is not convinced on this stock, either. TSLA holds a Moderate Buy from the analyst consensus, based on 9 "buy" ratings – but also 9 "holds" and 9 "sells." Shares sell for $420.28, and the $378.39 average price target suggests a 10% downside from current levels. (See TSLA 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.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Hasso Plattner, chairman and co-founder of SAP, bought shares worth nearly $300 million in the German software company on Monday after a once-in-a-generation price slide triggered when management dumped its profit targets. The 76-year-old billionaire bought shares worth 248.5 million euros ($294 million) at an average price of 101 euros, according to a regulatory filing published on Tuesday. SAP shares slumped by 20% after CEO Christian Klein ditched his "ambition" for profit margins to expand steadily through 2023 and lowered the outlook for this year due to the impact of the coronavirus pandemic.
Interest rates are ultralow, but yields of up to 10% are still available in the U.S. stock market. Risk is often part of the package.
Raytheon posted mixed Q3 results as the collapse in global air travel hit its aviation businesses hard.
When looking for the best artificial intelligence stocks to buy, identify companies using AI technology to improve products or gain a strategic edge, such as Microsoft, Netflix and Nvidia.
(Bloomberg) -- With the final stretch of the election upon us, it’s still nearly impossible to guess how the stock market will react to next week’s vote. One estimate from JPMorgan Chase & Co.’s chief equity strategist puts U.S. stocks in for a double-digit advance if Donald Trump keeps his office.A victory for the Republican candidate could push the S&P 500 to as high as 3,900 at year-end under the most optimistic case laid out by Dubravko Lakos-Bujas, the bank’s chief U.S. equity strategist. The figure, some 300 points above his base-case target for year-end, implies a 12.5% advance from the gauge’s Friday close. While a number of traders have come to consider a Democratic sweep followed by a prompt fiscal deal among bullish scenarios for the equity market, Lakos-Bujas disagrees, seeing Trump’s victory as the most favorable outcome.“A ‘Blue Sweep’ scenario is expected to be mostly neutral in the short term,” JPMorgan’s strategists including Lakos-Bujas said in a report dated Friday. “It would likely be accompanied by some immediate positive catalysts (i.e. larger fiscal stimulus/infrastructure) but also negative catalysts (i.e. rising corporate taxes).”With days left until the election, traders are shrugging off the risk of a contested election -- at least judging by a flattening volatility curve -- corresponding with polls showing a widening lead for Joe Biden over the past month. Near-term uncertainty has remained elevated, with the Cboe Volatility Index stuck near a 30 level for weeks now, likely reflecting concern that sectors of the economy and markets that the candidates have referenced the most could see some wild swings post-election.A quick look at the top constituents of a Biden and Trump baskets of stocks created by JPMorgan, which bet on potential winners from either Democrats or Republicans taking control of Washington, shows the stakes are sky-high. Alternative energy and green-tech stocks in the Biden basket, for instance, have outperformed traditional energy and fossil fuel companies, among the top winners from Trump’s victory, by 84 percentage points since June, data compiled by JPMorgan show.Earlier: Barclays Sees VIX Plunging to Pre-Covid Level in Clear Biden WinFutures on the S&P 500 Index are trading 1% lower following losses in Europe’s Stoxx 600 Index and a dip in the Shanghai Composite Index on the first day Communist Party’s four-day meeting. News over the weekend confirmed a rising number of infections on both sides of the Atlantic, pushing Treasuries and the dollar higher as investors rushed into havens. Futures on the Nasdaq 100 Index are 0.9% lower after Europe’s application software giant SAP SE dropped as much as 21% after cutting its revenue forecast for the full year.Notes From the Sell Side:Apollo Global Management was upgraded to outperform at Evercore ISI, which wrote that recent share-price weakness related to Leon Black’s relationship with convicted sex offender Jeffrey Epstein was overdone. Shares down 14% from a peak hit earlier this month, but “this issue will ultimately have limited business impact to the company,” wrote analyst Glenn Schorr. “Plenty of LPs might rightfully put pressure on APO now, but [will] ultimately continue to invest with them.” The firm added that when considering APO as a stock, “investors & LPs should eventually separate the man from the company,” as the company “had no business dealings with the bad guy.”Winnebago Industries was upgraded to buy from neutral at Citi, which wrote that motor homes should continue to see strong demand throughout the pandemic. “A return to extensive travel (planes, cruise, hotels) is several years away, while we believe that the attractiveness of the RV lifestyle is here to stay,” wrote analyst Shawn Collins. The firm added that it was “encouraged” by WGO’s ability to grow its market share.First Solar and SunPower were both downgraded at Credit Suisse, which cited valuation following recent gains. Shares of SunPower are up more than 440% from an April low, and the valuation “already implies strong Ebitda recovery through 2022,” while First Solar is “approaching peak multiples,” Credit Suisse wrote. The firm added that solar manufacturing “will be a cyclical industry with limited tailwinds,” whereas for residential solar, “any multiple expansion/shrinking will rather be driven by supply/demand mismatch.”Sectors in Focus:Dunkin’ Brands shares are up 18% premarket after the Dunkin’ Donuts and Baskin-Robbins parent company confirmed Sunday afternoon that it has held preliminary discussions to be acquired by Inspire Brands.Cenovus Energy on Sunday agreed to buy Husky Energy in a C$3.8 billion all-stock deal that will combine two of the largest players in Canada’s beleaguered oil-sands industry. Watch HSE CN, CVE CN and companies like SU CN, IMO CN for a move.China said it will impose unspecified sanctions on defense contractors Lockheed Martin, a unit of Boeing Co. and Raytheon Technologies after the U.S. approved an arms sale to Taiwan last week, Chinese Foreign Ministry spokesman Zhao Lijian said Monday. Watch BA, LMT and RTX for a move.Watch KO after Barron’s says the beverage company is an under-appreciated post-pandemic reopening play.Your 64-Hour ICYMI:France set a record for new Covid cases, while Spain’s be Italy announced new restrictions. The U.S. reported record coronavirus infections for the second day in a row, adding 85,317 cases. U.S. Vice President Mike Pence’s chief of staff, Marc Short, and Marty Obst, a close adviser, tested positive for the virus.Alphabet, Facebook, Amazon, Apple, and Microsoft will emerge from the pandemic stronger than ever, despite intensifying antitrust scrutiny in Congress, Barron’s writes in its latest issue. “60 Minutes” finally aired the interview that Donald Trump cut short on Sunday night. Samsung’s billionaire chairman Lee Kun-hee, who made the South Korean company a global powerhouse, has died at 78. A San Francisco judge refused to pause her September order blocking Trump’s ban on Tencent Holdings Ltd.’s WeChat.Carlyle Group is nearing an agreement to acquire Siemens AG’s Flender mechanical drive unit for about $2.4 billion, according to people familiar. Airbnb is splitting its privately held shares ahead of a planned initial public offering, according to an internal email.The Los Angeles Dodgers defeated the Tampa Bay Rays on Sunday night to be just one win away from their first World Series title since 1988. UFC lightweight champion Khabib Nurmagomedov announces emotional retirement after latest victory, saying he doesn’t want to keep fighting again following the death of his father, who served as his coach, from the coronavirus.Tick-By-Tick to Today’s Actionable Events:6:30am-- HAS earnings8:30am-- Sept. Chicago Fed Nat Activity Index10am-- Sept. New Home Sales10:30am-- Oct. Dallas Fed Mfg Activity10:30am-- JCAP vote11am-- USDA weekly corn, soybean, wheat export inspections4:05pm-- FFIV, TBI earnings4:15pm-- TWLO earnings8pm-- NXPI earningsQuiet period expires: AVO, LUNG, YALA, OPRH, CD, BQPRCP/ATLKY - Prelim proxy filing deadlineFirst day of China’s Oct. 26 - Oct. 29 plenumFor 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 chip industry consolidation dance continued this morning as AMD has entered into an agreement to buy Xilinx for $35 billion, giving the company access to a broad set of specialized workloads. CEO Lisa Su believes the acquisition will help make her company the high performance chip leader.
There's still time to benefit from 2020's IRA contribution limits. And odds are that you haven't put in the maximum allowed yet.
Pfizer said in a presentation that the independent monitor which will determine whether or not the trial has been successful has not conducted any interim efficacy analyses yet. Chief Executive Albert Bourla has previously said the company could release data on whether or not the vaccine works as early as this month. U.S. President Donald Trump had said a vaccine could be available before the Nov. 3 election, but in recent weeks his administration has emphasized that one will be ready this year.
Tesla Inc (NASDAQ: TSLA) has ended a controversial practice where it paid its CEO Elon Musk to provide Directors and officers (D&O) liability insurance, the electric vehicle maker revealed in a filing with the U.S. Securities and Exchange Commission.What Happened: The automaker said it paid Musk $3 million for 90 days worth of coverage -- up to a total of $100 million -- but didn't further extend the agreement."Following the lapse of the 90-day period, we did not extend the term of the indemnification agreement with our CEO and instead bound a customary directors' and officers' liability insurance policy with third-party carriers," Tesla said in a statement.The Palo Alto-based company didn't reveal which carrier it has opted for to provide coverage, or the premium it was paying for the D&O policy.Why It Matters: It is "highly unusual" for a company to replace a D&O policy with a guaranty from a company officer "for any period of time," Kevin Hirzel, a managing member of the Detroit-based Hirzel Law firm, told CNBC, which earlier reported the news."Tesla's board did the right thing in obtaining a traditional directors' and officers' liability insurance policy from a third-party insurer," said Hirzel.Charles Elson, a professor of corporate governance, said that the personal indemnification by a CEO "linked the directors too closely to the CEO.""Such a linkage would make it more difficult for board members to exercise good oversight on behalf of all shareholders," Elson told CNBC.Price Action: Tesla shares traded 0.9% lower at $416.50 in the after-hours session Monday after closing mostly unchanged at $420.28.Photo by TED Conference on FlickrSee more from Benzinga * Click here for options trades from Benzinga * Geely Plans To Make 30,000 Polestar EVs Annually At New China Plant: Report * Tesla Set To Be 'One Of The Biggest Winners' In A Biden Presidency, Says Analyst(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Investors are always on the lookout for the best stock purchase, but the signs that indicate the ‘right’ stocks are an inconsistent lot. A high or rising share price, upside potential, or dividend payment have all been used – but all have their exceptions. Some investors say to keep away from low-cost stocks, as a price under $5 gets that low for good reason – but some ‘penny’ stocks are fundamentally sound and show the best upsides in the market. With this in mind, we used TipRanks’ database to find compelling stocks with bargain price tags. The platform steered us towards three tickers sporting share prices under $5 and Moderate or Strong Buy consensus ratings from the analyst community. Not to mention substantial upside potential is on the table.LiveXLive Media (LIVX)We’ll start in digital media, a tech niche that has gained from the various lockdown policies and the larger turn toward remote work and schooling. LiveXLive is a music and streaming company, offering platforms to deliver the digital music experience on live stream. The company also offers digital audio, music-on-demand, and a social music network.The stay-at-home policies helped LIVX in 1H20, as the stock saw strong gains and peaked in value in early July. Since then, however, the share price has fallen even as LiveXLive has reported a record-breaking first fiscal quarter, with the $10.5 million in revenue being its highest-ever quarterly result. Better yet, the quarter saw a 20% year-over-year increase in paid subscribers. Based on recent growth as well as the company’s $2 share price, Ladenburg analyst Jon Hickman thinks that now is the right time to pull the trigger.“With LIVX's dominant position as the industry leader in streaming live events, we believe the company continues to move rapidly to capture an increasing market share with its remote production/distribution platform for artists. We are pleasantly surprised by the early success of the Pay-pay-View initiative given the $1.35 million in ticket sales to date in 2020. Going forward, we note that the current revenue sources are now much more diversified and predictable and we are encouraged by the increasing number of well-known brands as sponsors and advertisers,” Hickman wrote.To this end, Hickman rates LIVX shares a Buy, and his $6.50 price target implies a whopping 222% upside for the coming year. (To watch Hickman’s track record, click here)Other analysts also take a bullish approach. LIVX’s Strong Buy consensus rating breaks down into 4 Buys and zero Holds or Sells. Additionally, the $6 average price target puts the potential twelve-month gain at 197%. (See LIVX stock analysis on TipRanks)Rimini Street (RMNI)Software is big business in today’s digital world – but it doesn’t always work as advertised, making support a necessity. Rimini Street is a leader in third-party software support, offering customers support for some of the big names in business software.While Rimini offers an essential product, the company’s EPS is notoriously low despite strong revenue numbers. At the top line, Rimini has reported $77 million to $78 million for the past three quarters – but EPS has remained below 8 cents. The first quarter of this year saw a net loss of 1 cent per share.Subsequently, Rimini found itself on the losing end of a legal battle with Oracle over copyright infringement. As a result, RMNI shares are down over 40% since August highs.That was the bad news. Mark Schappel, 5-star analyst with Benchmark, summarizes the possible silver lining.“While we are not attorneys, and understanding complex legal matters is not one of our strengths, the stock’s reaction since the ruling — down about 20% — strikes us as a bit of an overreaction since RMNI’s business remains on track, the court ruling doesn’t create operational downside, and the shares currently trade at a ‘going out of business’ valuation,” Schappel wrote.Accordingly, Schappel rates the stock a Buy and gives it a $10 price target suggesting an impressive 222% growth potential. (To watch Schappel’s track record, click here)This is another stock with a unanimous Strong Buy analyst consensus rating, this time based on 3 recent reviews. Rimini Street’s share are selling for $3.10 after the recent price collapse, but Wall Street sees potential here. The average price target, $7.67, suggests a one-year upside potential of 147%. (See RMNI stock analysis on TipRanks)Energous (WATT)The proliferation of mobile devices, and improvements in battery technology, have brought a focus on charging technologies. Energous holds a leading position in the wireless power and charging niche. The company’s WattUp system supports fast, efficient charging using RF-based wireless tech. The system can be tailored for home or office use, based on the number and type of devices to be charged. It has found applications in the automotive, industrial, medical, and retail industries.In specific advantages, Energous has the world’s first FCC Part 18 certification for wireless charging technology, an important lead in the industry. The company also holds 215 patents, with more on the way. This past September, the company received regulatory approval for a 1-meter ranged wireless charging broadcast.Like many companies specializing in emerging technologies, Energous regularly posts quarterly net EPS losses – but for the past two years, the trend in the company’s net loss has been steadily improving. The EPS loss has fallen by more than half in that time, moving from 49 cents n 3Q18 to 20 cents in the most recently report, for 2Q20.Despite an improving fiscal situation, WATT shares are down 37% in the past two months. The low share price, however, opens up opportunities for investors, according to Roth Capital analyst Suji Desilva. The 5-star analyst rates the stock a Buy, and his $7 price target indicates a possible 182% in upside potential. (To watch Desilva’s track record, click here)Supporting his stance, Desilva notes, “We believe WATT is experiencing increasing new customer engagement activity. As an example, management indicated that four Tier-1 customers are evaluating use of WATT technology and that the company is making inroads into newer military engagement opportunities. We believe the recently launched WattUp PowerHub development kit is helping drive charging application interest across fitness bands, smartwatches, hearables, smart glasses and medical devices to benefit. Wecontinue to expect a volume ramp in 2H20.”Overall, the Moderate Buy analyst consensus on WATT shares is based on two recent Buy ratings. The stock has an average price target of $6, suggesting a 152% upside from the current share price of $2.38. (See WATT 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.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The Internal Revenue Service announced new changes to eligibility for traditional IRA deductions in 2021.
The company generally launches new models in late summer, but its 2021 models were pushed back from that window this year amid the pandemic.