By: Contrarian Outlook
Harvest Exchange
December 28, 2017
Today I’m going to show you the 3 best closed-end funds of 2017—and reveal a surprising prediction for each of these powerhouse CEFs in 2018.
Originally Published at: These CEFs Soared Up to 58.8% in 2017 – and They’re Just Getting Started
President-elect Joe Biden’s $1.9 trillion “rescue plan” released on Thursday calls for three key tax improvements for 2021 that would help Americans across the income spectrum.
Tech stocks could come under pressure as President-elect Joe Biden's stimulus plan works its way through the U.S. economy.
What are the fastest-growing stocks to watch in 2021? Here's a list featuring GRWG stock, Square, Daqo and four other stocks expecting up to 156% growth.
Watching the markets with an eye to the main chance, Raymond James strategist Tavis McCourt sees both risk and opportunity in current market conditions. The opportunity, in his opinion, stems from the obvious factors: the Democrats won both Georgia Senate seats in the recent runoff vote, giving the incoming Biden Administration majority support in both Houses of Congress – and increasing the odds of meaningful fiscal support getting signed into law in the near term. More importantly, the coronavirus vaccination program is proceeding, and reports are showing that Pfizer’s vaccine, one of two approved in the US, is effective against the new strain of the virus. A successful vaccination program will speed up the economic recovery, allowing states to loosen lockdown regulations – and get people back to work. The risks are also coming from the political and public health realms. The House Democrats have passed articles of impeachment against President Trump, despite the imminent natural closure of his term of office, and that passage reduces the chances of political reconciliation in a heavily polarized environment. And while the COVID strain is matched by current vaccines, there is still a risk that a new strain will develop that is not covered by existing vaccinations – which could restart the cycle of lockdowns and economic decline. Another risk McCourt sees, beyond those two, would be a sharp rise in inflation. He doesn’t discount that, but sees it as unlikely to happen soon. “…product/service inflation is only really a possibility AFTER re-openings, so the market feels a bit bullet proof in the very near term, and thus the continued rally, with Dems winning the GA races just adding fuel to the stimulus fire,” McCourt noted. Some of McCourt’s colleagues among the Raymond James analyst cadre are keeping these risks in mind, and putting their imprimatur on strong dividend stocks. We’ve looked into Raymond James' recent calls, and using the TipRanks database, we’ve chosen two stocks with high-yield dividends. These Buy-rated tickers bring a dividend yield of 7%, a strong attraction for investors interested in using the current good times to set up a defensive firewall should the risks materialize. Enterprise Products Partners (EPD) We’ll start in the energy sector, a business segment long known for both high cash flows and high dividends. Enterprise Products Partners is a midstream company, part of the network that moves hydrocarbon products from the wellheads to the storage farms, refineries, and distribution points. Enterprise controls over 50,000 miles worth of pipelines, shipping terminals on Texas’ Gulf coast, and storage facilities for 160 million barrels oil and 14 billion cubic feet of natural gas. The company was hurt by low prices and low demand in 1H20, but partially recovered in the second half. Revenues turned around, growing 27% sequentially to reach $6.9 billion in Q3. That number was down year-over-year, slipping 5.4%, but came in more than 6% above the Q3 forecast. Q3 earnings, at 48 cents per share, were just under the forecast, but were up 4% year-over-year and 2% sequentially. EPD has recently declared its 4Q20 dividend distribution, at 45 cents per common share. This is up from the previous payment of 44 cents, and marks the first increase in two years. At $1.80 annualized, the payment yields 7.9%. Among the bulls is Raymond James' Justin Jenkins, who rates EPD a Strong Buy. The analyst gives the stock a $26 price target, which implies a 15% upside from current levels. (To watch Jenkins’ track record, click here) Backing his bullish stance, Jenkins noted, "In our view, EPD's unique combination of integration, balance sheet strength, and ROIC track record remains best in class. We see EPD as arguably best positioned to withstand the volatile landscape… With EPD's footprint, demand gains, project growth, and contracted ramps should more than offset supply headwinds and lower y/y marketing results…" It’s not often that the analysts all agree on a stock, so when it does happen, take note. EPD’s Strong Buy consensus rating is based on a unanimous 9 Buys. The stock’s $24.63 average price target suggests an upside of 9% from the current share price of $22.65. (See EPD stock analysis on TipRanks) AT&T, Inc. (T) AT&T is one of the market’s instantly recognizable stock. The company is a member in long standing of the S&P 500, and it has reputation as one of the stock market’s best dividend payers. AT&T is a true large-cap industry giant, with a market cap of $208 billion and the largest network of mobile and landline phone services in the US. Its acquisition of TimeWarner (now WarnerMedia), in a process running between 2016 and 2018, has given the company a large stake in the mobile content streaming business. AT&T saw revenues and earnings decline in 2020, under pressure from the corona pandemic – but the decline was modest, as that same pandemic also put a premium on telecom and networking systems, which tended to support AT&T’s business. Revenues in 3Q20 were $42.3 billion, 5% below the year-ago quarter. On positive notes, free cash flow rose yoy from $11.4 billion to $12.1 billion, and the company reported a net gain of 5.5 million new subscribers. The subscriber growth was driven by the new 5G network rollout – and by premium content services. The company held up its reputation as a dividend champ, and has made its most recent dividend declaration for payment in February 2021. The payment, at 52 per common share, is the fifth in a row at current level and annualizes to $2.08, giving a yield of 7.2%. For comparison, the average dividend among tech sector peer companies is only 0.9%. AT&T has kept its dividend strong for the past 12 years. Raymond James analyst Frank Louthan sees AT&T as a classic defensive value stock, and describes T’s current state as one with the bad news ‘baked in.’ “[We] believe there is more that can go right during the next 12 months than can get worse for AT&T. Throw in the fact that shares are heavily shorted, and we believe this is a recipe for upside. Large cap value names are hard to come by, and we think investors who can wait a few months for a mean reversion while locking in a 7% yield should be rewarded for buying AT&T at current levels,” Louthan opined. In line with these comments, Louthan rates T an Outperform (i.e. Buy), and his $32 price target implies room for 10% growth from current levels. (To watch Louthan’s track record, click here) What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 7 Buy ratings, 6 Holds and 2 Sells add up to a Moderate Buy consensus. In addition, the $31.54 average price target indicates ~9% upside potential. (See AT&T stock analysis 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 before making any investment.
The Dow Jones slid lower amid fears Joe Biden's massive stimulus plan could lead to higher interest rates or tax hikes. GM stock reversed.
Some left-for-dead penny stocks are now billion-dollar companies, thanks to the rally in the S&P 500 and other indexes.
The idea that value stocks are finally about to awaken after a decadelong slumber is almost a joke in financial circles. What is at least slightly different about Vanguard’s perspective is that its model suggests that investors have been correct in shunning value stocks, at least until the last few years. “Our research indicates that a value premium does exist and that the recent outperformance of growth stocks can be partially explained by downward-trending long-term inflation levels and the lack of material acceleration in earnings growth over the last decade,” the firm says.
Most financial markets will be closed for the celebration of the civil rights leader's life, the first one since protests over the killing of George Floyd touched off massive protests across the nation.
Advanced Micro Devices (AMD) CEO Lisa Su has been given much of the credit for the company’s remarkable turnaround. From one teetering on the edge of bankruptcy in the early parts of the previous decade, Su has expertly steered the chipmaker to its current standing as a semiconductor giant. Rosenblatt analyst Hans Mosesmann logged in to hear Su's virtual keynote at this year’s CES (consumer electronics show) and came away impressed. “CEO Lisa Su’s virtual CES keynote was strong and hit all the key company market segments of console gaming, PC/gaming, servers, and workstations, and with guests from academia, Microsoft, HP, Lenovo, Lucasfilm, and others,” the 5-star analyst said. “Interestingly, and of note, Microsoft’s Chief Product Officer Panos Panay gushed unprompted about the great momentum AMD has in industry and, specifically, within Microsoft’s PC, Azure, and console areas.” Product wise, Su announced a new generation of mobile processors - the Ryzen 5000 Zen 3 series. Targeting gaming laptops and light notebooks, the processors feature up to 8 cores and 16 threads, and will go toe to toe against Intel’s Tiger Lake. AMD also introduced a new Ryzen 5000 HX brand for gaming notebooks that is “positioned with over 35% better performance than Intel (10th Gen Core i9 mobile processor), and over 13% advantage in single threaded workloads.” The new Ryzen 5000 mobile series will launch in approximately 150 models this year, compared to the Ryzen 4000 mobile’s 100 models in 2020 and the 70 models introduced in 2019 for the Ryzen 3000 mobile. “AMD will continue to gain share in 2021,” Mosesmann summed up, “In platforms that we see are higher volume and in segments that AMD has yet to properly penetrate.” To this end, Mosesmann rates AMD a Buy along with a $120 price target. The implication for investors? Upside of 36%. (To watch Mosesmann’s track record, click here) The rest of Wall Street largely buys into what this chip player has to offer. AMD's Moderate Buy consensus rating is based on 14 Buys, 5 Holds and 2 Sells. With a return potential of ~9%, the average price target stands at $95.83. (See AMD stock analysis on TipRanks) To find good ideas for tech 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.
Virgin Galactic and other space stocks jumped Thursday on hopes for a new space-focused exchange traded fund.
Here are analysts' top stocks to buy in the first quarter.The S&P 500 closed out 2020 at all-time highs on optimism surrounding additional government stimulus measures and a potential global economic rebound in 2021.
Q.: To lessen the death tax on my estate, if I put my Roth IRA in an irrevocable trust now and after my spouse and I die four years later, do my children afterward have six years or 10 years to invest all the money before they must dispose of the Roth money from the trust under the new rules of the 2019 SECURE Act? A.: John, you cannot put a Roth IRA in a trust while you are alive. You can move the assets in the Roth IRA out of the Roth IRA and then put those assets into the trust but trusts can only own Roth IRAs as Inherited Roth IRAs.
The $1.9-trillion Joe Biden plan to speed recovery won't include tax hikes. Yet President-elect Biden's tax talk got the Dow Jones off to a poor start Friday.
For the second time in a week, hydrogen fuel cell company Plug Power (PLUG) had big news to report. Last week, as you may recall, it was a $1.5 billion alliance with Korea's SK Group to build a "hydrogen economy" for South Korea. This week, it's a deal to build fuel cell vans in France alongside local partner Renault -- and although Plug didn't attach a price tag to this one, investors still cheered like mad, sending Plug stock up more than 22% in a day. As Plug revealed Tuesday, it has signed a memorandum of understanding with the French automaker. Through it, the parties expressed interest in forming a 50-50 joint venture within the next six months to supply "turn-key fuel cell vehicle solutions with hydrogen fuel, refueling infrastructures and services" to customers in France -- and capture 30% of the market for fuel cell-powered light commercial vehicles in the country. Renault will provide the automobile manufacturing capability, and Plug will supply the fuel cell systems to make them go "zoom!" Plug will also manufacture hydrogen refueling systems to fuel up the vans on the road. Shareholders weren't the only ones pleased by Plug Power's announcement, and analyst Christopher Souther at B. Riley quickly rushed out a note doubling down on its "buy" rating on Plug stock, and raising his price target more than 50%, to $79 a share. (To watch Souther's track record, click here) Calling Renault a "strong partner" for Plug on the Continent, where the local market for fuel cell-powered light commercial vehicles is expected to grow from essentially zero today, to 500,000 units by 2030. Souther increased his long-range forecast for Plug's commercial vehicles revenues accordingly. In fact, long before 2030, he is valuing Plug stock at 20 times his fiscal 2024 sales forecast. What is that forecast, precisely? Souther didn't say straight out. But a $79 share price would imply an enterprise value of a little over $37 billion for Plug stock, implying that the analyst sees the new relationship with Renault pushing Plug's 2024 revenues up past $1.8 billion -- roughly a six-fold increase over Plug's trailing revenues of $308 million. Curiously, this estimate is nearly twice the $1 billion in fiscal 2024 revenue that Plug itself most recently promised. And here's another curious thing about Souther's predictions: While not expressly putting a number to his 2024 forecast, Souther did give detailed guesses at what Plug will produce nearer term, predicting full-year 2020 sales and full-year 2021 sales as well. In contrast to the average consensus on Wall Street, where most analysts agree Plug did perhaps $329 million in sales last year, Souther thinks the company's revenues were only $291 million. Similarly, consensus estimates for fiscal 2021 put Plug's sales at $444 million -- but Souther sees only $419 million. Now, how the analyst goes from predicting disappointing results for two straight years, to predicting sales twice what Plug itself promises just three years from now is not quite clear. And why he is recommending that investors buy Plug ahead of what, by his own admission, look likely to be sales disappointments is similarly opaque. Then again, as Souther himself laments: No matter how expensive Plug stock gets, "it is tough to fight the secular tailwinds." So, that’s B. Riley's view, what does the Street of the Street have in mind? The current outlook offers a conundrum. On the one hand, based on 10 Buys and 1 Hold, the stock has a Strong Buy consensus rating. However, after soaring so high recently, the analysts expect shares to cool down and anticipate downside of 18% from current levels. (See PLUG 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.
Marijuana stocks surged as a Democratic Senate adds to cannabis legalization momentum. Are any pot stocks good buys now amid profitability challenges?
Apple Inc (NASDAQ: AAPL) supplier Hon Hai Precision Industry Co., Ltd.-ADR (OTC: HNHPF), widely known as Foxconn, has announced a high-profile appointment for its newly created open electric vehicle platform.What Happened: Foxconn has appointed Jack Cheng, co-founder of Chinese EV start-up Nio Inc - ADR (NYSE: NIO), as head of MIH, its open software and hardware platform for developing EVs, local Chinese media outlets reported.William Wei, the unit's chief technology officer, will assume responsibility for software, the report said.Related Link: Apple Supplier Foxconn Confirms It Will Make Electric Vehicles With Chinese Startup Byton Cheng is an auto industry veteran, with over four decades of experience at companies such as Ford Motor Company (NYSE: F) and Fiat Chrysler Automobiles NV (NYSE: FCAU).Cheng, along with William Li, was responsible for putting in place the core team at Nio in the second half of 2015.After quitting Nio in 2019, Cheng worked for XPT, which develops core components for Nio.Foxconn established the MIH platform in October to diversify into EV sector.Earlier this week, Foxconn announced a 50-50 joint venture with Geely Automobile Holdings Ltd (OTC: GELYF) to provide OEM production and comprehensive, customized consulting services to global automakers.Why It's Important: The appointment of Cheng suggests Foxconn is contemplating a big push into the EV market.The company's relationship with Apple in iPhone manufacturing makes it a favored name for a potential partnership with the tech giant, if and when it decides to take the plunge.Related Link: What iPhone Supplier Foxconn's Strong Quarterly Revenue Means For Apple Photo by Steve Jurvetson via Wikimedia. See more from Benzinga * Click here for options trades from Benzinga * Apple Supplier Foxconn, Geely Partner On Automotive Contract Manufacturing Services * What iPhone Supplier Foxconn's Strong Quarterly Revenue Means For Apple(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
On CNBC's "Mad Money Lightning Round," Jim Cramer said Ballard Power Systems Inc (NASDAQ: BLDP) is good, but Plug Power Inc (NASDAQ: PLUG) is his favorite.Cramer likes Romeo Power Inc (NYSE: RMO). The stock has come down a lot and he thinks it's kind of attractive.Occidental Petroleum Corporation (NYSE: OXY) is going higher in the short term, thinks Cramer. He advised a viewer not to sell it because it will probably go to his entry price of $33. Eventually, he would have to sell because the new administration thinks fossil fuels are bad for the environment.Cramer almost pulled the trigger and bought salesforce.com, inc. (NYSE: CRM). He is holding off right now, but he might start buying it next week.See more from Benzinga * Click here for options trades from Benzinga * 'Trading Nation' Analysts Weigh In On Semiconductors * Mike Khouw Sees Unusual Options Activity In EEM(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
At a time when millions of people are strapped for money and counting on their income tax refund or a stimulus check, they’ll have to wait a little longer before they can file their taxes. Feb. 12 marks the first date the Internal Revenue Service will start accepting and processing returns. Tax season started Jan. 27 last year.
The major U.S. equity-indexes are hovering around all-time highs, and a question that frequently pops up these days, is whether some companies’ valuations might be overstretched. However, some operate at the opposite end of the spectrum, and could yet offer investors untapped opportunities. H.C. Wainwright analyst Ram Selvaraju points in the direction of Sorrento Therapeutics (SRNE), as one such company. Selvaraju rates SRNE a Buy along with a $30 price target, which implies a 275% upside from current levels. (To watch Selvaraju’s track record, click here) So, what’s behind the optimistic outlook? Well, for starters, Sorrento has a stake in two cell-based immunotherapy companies that could “drive value in Sorrento shares over the coming months.” One is Celularity, a clinical-stage cell therapeutics company focused on cellular medicines for cancer, infectious diseases, and degenerative diseases. Celularity is expected to go public later this year via a SPAC merger with GX Acquisition Corp. The merged company’s equity value following the transaction’s closure will land at roughly $1.7 billion. Selvaraju estimates Sorrento's position should be worth in the $200 million region. The second company is NantKwest, which recently signed a deal to merge with ImmunityBio. The transaction is expected to close in 1H21. Sorrento owns roughly 8.2 million shares of the clinical-stage immunotherapy company. These are currently worth around $121 million, going by NantKwest’s recent share price. Additionally, the analyst highlights Sorrento’s “burgeoning portfolio of assets spanning three distinct therapeutic areas (non-opioid pain management, oncology and COVID-19).” In fact, on the Covid-19 front alone, Sorrento has taken a broad-based approach and has a long list of diagnostic, prophylactic and therapeutic offerings in the pipeline, with “updates likely to come fast and furious.” These include two rapid detection tests; COVI-STIX, for which the company filed for Emergency Use Authorization (EUA) in the U.S. in December, and COVI-TRACE, which Selvaraju claims could come in handy at any mass gathering event. “We believe that the incentive to facilitate the large-scale and indeed ubiquitous deployment of the COVI-TRACE test is extremely high and governments worldwide may seek to implement this in their respective regions,” the 5-star analyst opined. Other Covid-19 candidates include COVIGUARD - a SARS-CoV-2 neutralizing antibody, COVI-AMG - an affinity-matured version of the COVIGUARD neutralizing antibody, a neutralizing antibody cocktail named COVI-SHIELD and COVIDTRAP, an ACE2 receptor decoy, intended to imitate the mammalian ACE2 receptor that acts as the primary portal for the SARS-CoV-2 virus to penetrate human cells. It has been relatively quiet when it comes to other analyst activity. In the last three months, only 2 analysts have issued ratings. However, as they were both Buys, the word on the Street is that SRNE is a Moderate Buy. Based on the $25.50 average price target, shares could climb 219% higher in the next twelve months. (See SRNE 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 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.
Four things could pop the "rational bubble" in equities, says Mohamed El-Erian — even if they're not likely to happen right now.
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