|Bid||177.29 x 800|
|Ask||178.00 x 1100|
|Day's Range||175.46 - 178.33|
|52 Week Range||172.62 - 398.88|
|Beta (3Y Monthly)||2.21|
|PE Ratio (TTM)||34.43|
|Earnings Date||Oct 23, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||263.00|
SmileDirectClub has filed for an initial public offering of up to $100 million. The stock will list on the Nasdaq exchange under the ticker "SDC." The teledentistry company provides invisible ...
Second-quarter earnings generally were strong. 75% of S&P 500 components, according to Factset Research, posted a positive bottom-line surprise for the quarter. But several stocks in the market -- among them Uber (NYSE:UBER) stock -- fell sharply after weak earnings reports that made them, in many investors' eyes, stocks to sell. * 10 Stocks Under $5 to Buy for Fall These 10 stocks all tumbled after second quarter releases. In some cases, those declines have led to attractive, if high-risk, bull cases. For others, the sell-offs seem like signals of more trouble ahead. In all cases, however, earnings reports mattered -- and will likely color the stories going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Uber (UBER)Source: Shutterstock To be fair, Uber didn't have a terrible quarter. Revenue, adjusted for a one-time driver bonus related to the company's IPO, still increased 26% year-over-year in Q2. And while UBER stock did fall almost 7% the day after earnings, it had gained over 8% the day of the after-close report, thanks to an earnings beat from rival Lyft (NASDAQ:LYFT).That said, UBER stock continued to decline in the following days, losing 21% of its value in just four sessions. That's over $16 billion in lost market value in less than a week. That's almost certainly the biggest loss on an absolute basis in the market this earnings season. UBER now trades at an all-time low, though admittedly it has only been public for just over three months.It's not at all clear that the decline is a buying opportunity. Uber remains unprofitable: its Adjusted EBITDA loss more than doubled year-over-year. UBER stock isn't cheap on a revenue basis, either. Its market capitalization remains over $56 billion, despite the fact that there are real long-term questions about the company's business model.In recent years, we have seen 'hot' IPOs tumble sharply: both Facebook (NASDAQ:FB) and Snap (NYSE:SNAP) come to mind. At least at the moment, UBER stock looks like it could follow that trend. Given that both of those stocks dropped more than 50% from their IPO price, UBER could have further downside ahead. 2U (TWOU)Source: Shutterstock Only one company saw a bigger post-earnings decline, on a percentage basis, then educational technology provider 2U (NASDAQ:TWOU). TWOU shares fell a stunning 65% in a single session the day after its second-quarter earnings report. That decline was topped only by Sanchez Midstream Partners LP (NYSEAMERICAN:SNMP), which dropped 69% and filed for bankruptcy less than a week later.Some investors saw the decline as an overreaction: TWOU shares have bounced 22% since. But there are real risks here.TWOU's guidance badly missed Street estimates on the bottom line -- and the company now is slowing its revenue growth as it focuses on controlling spending. One analyst called the report a "breaking of the company's model." And it's not like TWOU was soaring heading into the release. In fact, the stock posted a one-day drop of 25% after the Q1 release in May, and headed into second quarter earnings down almost 60% from its 52-week high. * 15 Growth Stocks to Buy for the Long Haul That said, for intrepid investors, there's a case to try and time the bottom. TWOU now trades at just 2x revenue. Its role in online education should drive some growth going forward, even if it will lag the 39% year-over-year increased posted in Q2. After the last two quarters, it would take a lot of gumption to own 2U stock into another earnings report. But perhaps, at least, TWOU can't perform much worse next time around. Kraft Heinz (KHC)Source: Shutterstock The disastrous run continued for Kraft Heinz (NASDAQ:KHC) in the second quarter. KHC shares fell 8.6% after earnings and tacked on another 6.1% decline the following day. KHC trades at an all-time low, and from both a short- and long-term standpoint, it's not difficult to see why.Q2 was yet another disappointing quarter. Sales declined 1.5% year-over-year on an organic basis, including a nearly 2% drop in the U.S. Adjusted EBITDA fell 19%; adjusted EPS dropped 23%. And those numbers are a reflection of a longer-term strategy that simply isn't working.3G Capital, with the help of Warren Buffett's Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B), put Kraft and Heinz together, while planning to follow 3G's "zero-based budgeting" strategy. That strategy instead has starved Kraft Heinz brands of needed marketing and innovation spend, leading the company to underperform in an already-difficult consumer packaged goods space.There's a case to bet on a turnaround here. I made such a case at the beginning of the year, and many hedge funds have been buyers of late. But KHC's new CEO seemed to suggest no improvements were on the way any time soon -- and the crushing debt load created (in part) by the merger can continue to weigh on the equity here. It may seem incredible, but bond markets now reflect a not-insignificant chance that KHC stock goes to zero. Any investor buying KHC for a turnaround -- or its dividend -- should keep that in mind. GoPro (GPRO)Source: Shutterstock In recent years, investors have fled hardware manufacturers like GoPro (NASDAQ:GPRO). Second quarter earnings reports across the group prove why -- and will make it very difficult for the market to trust the sector any time soon.For GoPro, Q2 numbers weren't that bad. Revenue actually increased roughly 3% year-over-year, though the Street was looking for growth almost double that. Management forecast a strong second half and sounded an optimistic tone toward next year. Meanwhile, the midpoint of EPS guidance suggests GPRO stock trades at a roughly 10x P/E multiple.But investors weren't buying it -- literally. GPRO shares fell 13% after earnings. They're now just shy of an all-time low reached in December. And as I wrote last month, the short case here still seems to hold. GoPro has the action camera market mostly to itself; the problem is that the market simply isn't growing. Execution hasn't been great, and margins are somewhat thin. * 7 Safe Dividend Stocks for Investors to Buy Right Now And at a certain point, investors are going to tire of bidding GPRO up on hopes of a turnaround -- only for the company to disappoint and re-test the lows. In fact, it's likely that most investors already have. Fitbit (FIT)Source: Shutterstock There are more than a few parallels between Fitbit (NYSE:FIT) and GoPro. Both stocks soared after their IPOs (though GPRO stock saw a much bigger bounce), only to reverse to steep and almost uninterrupted declines. The two companies have been undertaking various turnaround strategies -- new products, cost-cutting, etc. -- for years now, none of which really has taken hold. And both firms are looking to subscription revenue as a way to offset the margin pressure on hardware sales.Fitbit, however, has it worse at the moment, in a number of ways. Its stock isn't just challenging an all-time low: it closed at one on Wednesday. FIT dropped 21% following earnings, against the 13% decline in GPRO, after the Q2 release came with a full-year guidance cut. And unlike GoPro, Fitbit isn't a market leader anymore: Apple (NASDAQ:AAPL) clearly has taken the smartwatch crown, with Garmin (NASDAQ:GRMN) also a legitimate player.For GPRO, there is at least is a case that the stock is cheap enough that even some growth can, at some point, drive the stock higher. FIT stock doesn't even have that case. The company does have a ton of cash: some $565 million (including marketable securities) at the end of the second quarter, against a market capitalization below $800 million. But it's also burning some of that cash, with even Adjusted EBITDA guided to a loss for the full year.Given market share erosion, it's hard to see how that reverses. The same is true of Fitbit stock. Arlo Technologies (ARLO)Source: Shutterstock For IP camera manufacturer Arlo Technologies (NYSE:ARLO), GPRO and FIT should have served as cautionary tales. ARLO stock has somewhat followed the same trend as its hardware peers, but the gains were smaller and the declines came much sooner.ARLO now has fallen 82% from its IPO price a little over a year after it debuted on the public markets. That includes an 18% decline after second quarter earnings earlier this month.It could get worse. Given that Arlo was spun off from NETGEAR (NASDAQ:NTGR) on the last day of 2018, it likely can't sell itself before 2021 without creating an enormous tax liability. But the company, at this point, may not be able to survive on its own. It's guiding for an adjusted operating loss in the range of $100 million this year. If that guidance is hit, Arlo will end the year with roughly $100 million in cash.In other words, performance needs to get better -- and quickly -- or else solvency becomes a real concern next year. But sales are declining as is and even that full-year guidance looks at risk. Arlo needs a huge Q4 just to hit its full year outlook -- and must then keep that momentum going into 2020. * 7 Stocks Under $7 to Invest in Now That might be difficult. Competition remains intense. Arlo still is discounting heavily: adjusted gross margin is guided to just 9-12% in the third quarter. The company is relying on the launch of its Ultra 4K camera and a video doorbell to drive sales growth -- but it has basically zero room for error. Arlo needs a huge holiday season this year, or the stock might be at zero before the next one. Groupon (GRPN)Source: Shutterstock It's not just hardware companies that turn into busted IPOs. Groupon (NASDAQ:GRPN) doesn't sell physical products, but it feels a bit like those hardware stocks.GRPN, too, is testing an all-time low after a disappointing earnings report undercut turnaround hopes. It is looking for subscription revenue with the launch of its Groupon Select offering.Groupon at least is profitable -- and has a fortress balance sheet, with almost $400 million in cash net of debt. But revenue is declining, and cost-cutting opportunities likely limited at this point. And the broad problem that I highlighted in April remains. This isn't really a 'tech' company -- not with some 2,000 salespeople on staff. The business model runs through the Internet, but it's not a high-margin platform story like Match Group (NASDAQ:MTCH) or Etsy (NASDAQ:ETSY).Instead, it's a tough, low-margin, labor-intensive business with high customer turnover. It's a business that simply hasn't been able to drive consistent growth. Until that changes, GRPN stock is going to stay cheap. Align Technology (ALGN)Source: Shutterstock A year ago, Align Technology (NASDAQ:ALGN) could do no wrong. Shares of the Invisalign manufacturer were soaring in a hot market. Valuation was a concern, admittedly. But ALGN stock seemed like the kind of stock where investors would keep paying up for its growth.A jittery market ended the rally at the beginning of October. Soft Q4 guidance given with Q3 earnings later that month sent ALGN tumbling. The stock lost more than half its value in the fourth quarter alone. But a new year led to a new rally: by early May, Align Technology stock had risen 58% in 2019.Those gains now are gone. ALGN has fallen 47% and has reversed to a 16% loss for this year. Once again, it was weak guidance that tripped up the stock, as the company cited a slowdown in growth in China and choppy performance among teens in the U.S.ALGN is tempting on the decline. This still seems to be a wonderful business model. Growth should continue, particularly in developing markets. Management remained confident after Q2 that revenue in China would rebound. And while competition is a risk, Align seems the leader in clear aligners -- which should take more share from traditional braces over time. * 7 Stocks to Buy With Over 20% Upside From Current Levels The one catch is that the stock simply isn't that cheap yet. ALGN still trades at 27x 2020 consensus EPS. With fears about the Chinese economy dominating the market, and a "falling knife" stock chart, even investors intrigued by the stock might do well to show some patience. Farfetch (FTCH)Source: nikkimeel / Shutterstock.com There are two common drivers of big downward moves. A company can miss earnings expectations -- or it can make an acquisition with which investors disagree. Luxury marketplace Farfetch (NYSE:FTCH) did both this month -- and its shares declined 44% as a result.The company is spending $675 million to acquire New Guards Group, a so-called "brand platform" that has launched luxury labels. That buy was announced the same day as Q2 results and lowered full-year guidance for GMV (gross merchandise value). So disappointing was Farfetch's outlook that RealReal Inc (NASDAQ:REAL), a used luxury good marketplace, fell 23% in sympathy.FTCH shares have managed to hold a bottom since, however, even in a market seemingly primed to punish luxury sellers. And there's a case that investors can buy an attractive growth story at a much cheaper price. Oppenheimer still sees a clean double. FTCH stock now trades at a more attractive ~4x multiple to 2020 revenue estimates. And the New Guards acquisition is a part of a strategy for Farfetch to develop and sell its own products, in addition to those of other boutiques.In a market where growth stocks still aren't cheap, or close, FTCH looks at least reasonably valued by comparison. And if management's strategy is on point, the post-Q2 declines in retrospect will look like a massive buying opportunity. DXC Technology (DXC)Source: Shutterstock There may not be a better stock for contrarian investors right now than DXC Technology (NASDAQ:DXC), the result of a merger of Computer Sciences Corporation with assets from Hewlett Packard Enterprise (NYSE:HPE).DXC shares are down roughly two-thirds from all-time highs reached in September. The stock trades at less than five times the low end of updated 2019 adjusted EPS guidance -- and barely four times the high end. There are worries, notably in the consulting business. But a sharp sell-off of late, including a 30% one-day decline after second quarter earnings, seems like an overreaction.That said, investors do need to be careful. Selling pressure hasn't let up yet, though weaker broad markets are a factor. DXC does have a decent amount of debt: almost $10 billion against a market capitalization now just above $12 billion. DXC is cheap relative to guidance, but that guidance was cut sharply after the second quarter and could see another reduction before the year is out. Contrarian investing in this market has been difficult, if not dangerous.Still, a sub-5x P/E multiple is attractive. There should be room for cost cuts going forward. Investors need to understand just what they're getting into -- but it's hard to find much in the way of cheaper stocks than DXC.As of this writing, Vince Martin is long shares of NETGEAR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post The 10 Biggest Losers from Q2 Earnings appeared first on InvestorPlace.
Shares of Silicon Valley's biggest companies fell sharply on Wednesday as the Dow Jones Industrial Average closed out its worst day yet of 2019.
If you are looking for fresh investing inspiration, it's worth keeping a close eye on the latest insider activity. That's particularly the case when it comes to insider buy transactions i.e. purchases by company executives or owners. A Harvard study revealed the following: "We find that insider purchases earn abnormal returns of more than 6% per year, and insider sales do not earn significant abnormal returns." As a result the authors conclude that insider buyers 'have a good feel for near-term developments within their firm.'Indeed, if a corporate insider- who arguably has the most in-depth knowledge about their company- decides to reach into their own pocket to buy shares, it is a strong indicator that they see the stock as undervalued at current levels.Here we focus on informative transactions rather than uninformative transactions (ie expiring options) and transactions that occurred in the healthcare sector specifically. As you will all three stocks below also boast a Strong Buy Street consensus, based on analyst ratings published over the last three months. Let's take a closer look now: Align Tech (ALGN)Align Technology has made a big name for itself in the world of orthodontics. The company has revolutionized the use of metal braces with its transparent Invisalign teeth aligner system. According to Align, over 7.2 million people including over 1.7 million teens have benefited from Invisalign. That makes the company the clear market leader in its field. The company faced a wave of insider sell transactions two and three months ago. However, the tide appears to be turning. In the last couple of days, President, CEO and director Joseph Hogan picked up $998 worth of ALGN stock. He now has a total Align holding valued at approximately $31.4 million. What’s more, this is an insider with a relatively strong track record on his Align transactions. He bought shares back in February 2018 at $252; sold at $350 in August of the same year; and is now buying again with the stock back down at $188.Raj Pudipeddi is chief marketing officer of ALGN. He has also just made his first transaction- buying $206,000 worth of shares on August 6.In fact Piper Jaffray analyst Matt O'Brien highlights the CEO transaction, as well as Align entering into an accelerated $200 million stock repurchase plan as evidence of management’s confidence in the business over both the intermediate and long term. This Top 100 analyst believes Align can outperform rivals, telling investors that the company "has much better products that will win in the marketplace." As a result O’Brien reiterated his buy rating and $240 price target.Credit Suisse’s Erin Wright is even more optimistic. She has a Street high price target of $320. “While concerns over competition, DTC concepts, and ASPs will remain overhangs, we view there is room for several players in a highly underpenetrated clear aligner market. ALGN is well ahead in terms of innovation, and we await further traction in recently launched products” says the analyst. While the analyst consensus shows Align as a cautiously optimistic Moderate Buy, if we switch to only the best-performing analysts then the consensus shifts to a more bullish Strong Buy. Indeed out of 7 top-rated analysts covering the stock, 6 rate ALGN a buy. And their $269 average price target suggests considerable upside potential of 46%. Vertex Pharma (VRTX)This groundbreaking biotech specializes in cystic fibrosis (CF) therapies. This is a rare, life-shortening genetic disease affecting approximately 75,000 people in North America, Europe and Australia.Vertex is making important progress in the treatment of the disease. It just submitted a New Drug Application (NDA) to the US FDA for a Triple Combination Regimen of VX-445 (Elexacaftor), Tezacaftor and Ivacaftor. “The submission of the NDA is a major step toward our goal of bringing this medicine to the largest remaining group of people with CF that still do not have an approved Vertex medicine, as well as toward providing significantly enhanced benefits to patients with two F508del mutations” Vertex’s chief medical officer wrote following the submission on July 22.And now two insiders have arguably demonstrated their confidence in the application by making large stock purchases. Michael Parini, an exec VP and the company’s chief legal and admin officer, snapped up $201,592 worth of stock this week, bringing his total holding to $6.2 million. Meanwhile chief commercial officer Stuart Arbuckle upped his holding by $330,578 to over $5.7 million. And these insiders aren’t the only financial experts demonstrating bullish sentiment right now. The stock shows a ‘Strong Buy’ Street consensus with 10 out of 12 analysts rating VRTX a buy. That’s with an average price target of $217 (25% upside potential). “Vertex put up another very strong quarter (top- / bottom-line beats) with all three cystic fibrosis assets topping expectations” enthused JP Morgan analyst Cory Kasimov on August 1. “With strong ongoing execution on the CF front, focus continues to turn to the pipeline for the next potential leg of the story. We are finding current stock levels increasingly attractive as 2020 is setting up to be a year of major growth potential both in terms of financial (via early 2020 triple approval) and clinical performance” the analyst told investors. Avrobio (AVRO)Biotech Avrobio is developing lentiviral-based gene therapies that it believes can transform patients' lives in a single dose. Its most advanced pipeline drug is for Fabry disease- a rare inherited disorder that results from the buildup of a particular type of fat in the body's cells. The market opportunity is significant: worldwide sales of roughly $4 billion in 2017 for lysosomal storage diseases (LSDs), which analysts see as Avrobio’s total addressable market.In the last two weeks, both a director and one of the company’s owners have each snapped up a further $15 million of Avrobio stock. That brings director Bruce Booth’s total holding in the company up to a whopping $100 million. Interestingly this is by far his biggest holding, but he does have million-dollar positions in three more biotech stocks: Magenta Therapeutics; Unum Therapeutics; and Miragen Therapeutics. Luckily for Booth, Avrobio has a very bullish outlook from the Street right now. Although only three analysts have published recent AVRO ratings- all three rate the stock a buy. Plus their $34 average price target indicates upside potential of 90%. Top Mizuho Securities analyst Difei Yang reiterated her buy rating and $28 price target on July 16. “We believe AVROBIO's robust clinical development program has potential to demonstrate significant clinical benefits in Fabry patients and ultimately position the company's gene therapy as a first-line treatment” she cheered. Yang made the call after AVRO released positive new trial data showing sustained efficacy and a promising safety profile. Most encouragingly, 3/5 patients treated in the Phase 1 trial have discontinued standard of care enzyme replacement therapy (ERT) so far, added the analyst. Looking forward, additional Fabry updates could be available in late 2019/early 2020 although no specific timeline has yet been provided by management. Discover stocks with positive insider sentiment here
President and CEO of Align Technology Inc (30-Year Financial, Insider Trades) Joseph M Hogan (insider trades) bought 4,995 shares of ALGN on 08/02/2019 at an average price of $199.83 a share. Continue reading...
"Game of Thrones" had "winter is coming." The market should have "August is coming." You knew August could get rough if you listened to what I said on July 21, when I told you that August would bring lower prices and choppy markets:Don't get alarmed, but know this: We are in a strong market, trading at highs with nearly all buy signals.
SAN JOSE, Calif., Aug. 01, 2019 -- Align Technology, Inc. (NASDAQ: ALGN) announced today that it has appointed Anne Myong to its board of directors. Ms. Myong was previously.
Align Technology stock (ALGN) took a massive hit after Q2 earnings. So what was behind the massive decline, and what's helping the stock recover?
SAN JOSE, Calif., July 31, 2019 -- Align Technology, Inc. (NASDAQ: ALGN) announced that it has entered into an accelerated stock repurchase agreement ("ASR") with Morgan.
On top of reporting an earnings miss in the quarter, Align shipped 377,100 of its core Invisalign cases which fell 5,800 units short of expectations. Hogan told CNBC's Jim Cramer Thursday much of the weakness can be attributed to China. China is Invisalign's second largest market and the company hoped to see 70% growth in the second quarter, the CEO told Cramer.