|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||108.99 - 111.32|
|52 Week Range||89.05 - 114.55|
|Beta (3Y Monthly)||1.10|
|PE Ratio (TTM)||13.84|
|Earnings Date||Apr 18, 2019|
|Forward Dividend & Yield||1.56 (1.40%)|
|1y Target Est||117.61|
The S&P 500 and Dow rose and then reversed course to end lower after the Federal Reserve on Wednesday announced it was holding benchmark interest rates at current levels and signaled no further rate hikes in 2019.
Warren Buffett considers one basic principle, elementary probability, the core of his investing philosophy, helping him to identify tremendous stock opportunities.
Volatility seized Wall Street following Wednesday's Fed announcement. But it was bank stocks that bore the brunt of the damage, which is unfortunate. Many of these money centers were just starting to emerge from well-established bases that could have supported their next up-leg.So much potential wasted.As expected, the Fed held the target for the benchmark rate steady at 2.25% to 2.50%. Furthermore, Jerome Powell and crew indicated that they wouldn't be raising rates any further for 2019. In fact, the next move could be a rate cut. With rates potentially at their peak for this cycle and future GDP growth projections getting slashed, investors jettisoned financial stocks from their portfolios throughout the afternoon.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe Regional Bank ETF (NYSEARCA:KRE) was hit especially hard, falling 3.4% amid massive distribution. Relative weakness continues this morning with most banks in the red while the rest of the market is ripping. * 5 Stocks To Buy for the Happiest Employees Let's take a closer look at three bank stocks that are suffering. You should avoid two of them while buying the third. Click to Enlarge Source: ThinkorSwim Bank of America (BAC)Yesterday's swoon upended what was otherwise a beautiful breakout in the making for Bank of America (NYSE:BAC) -- and other bank stocks. Here's my technical take. Since gapping higher mid-January on better-than-expected earnings, BAC stock built a clean two-month base. But with the break attempt now rejected, we've returned to the chop zone.Thus far this morning's testing of the range's lower bound is holding, and that's a good thing. Bulls do not want to see a close below $28 support.Until BAC can clear the ceiling at $29.80, it's dead money, so steer clear. Click to Enlarge Source: ThinkorSwim Goldman Sachs (GS)This year's behavior in Goldman Sachs (NYSE:GS) has mirrored that of BAC. I'm tempted to copy/paste my previous commentary. Mid-January earnings gap. Two-month base. Failed breakout. Back to chop. That sums up the price action. Yesterday's drop and this morning's follow-through carried GS stock back below its 50-day moving average. We're in no man's land here. * 10 Stocks on the Rise Heading Into the Second Quarter Until GS can re-establish itself above $200 -- stay away. For you bears on the prowl, there's a decent short trade if Goldman breaks $189 support. Click to Enlarge Source: ThinkorSwim American Express (AXP)While the weakness in most banks stocks is a sign to steer clear, I'm finding the drop a welcome development in the credit card space. American Express (NYSE:AXP) was flying high -- it was extended, in fact -- and due for a retracement. Yesterday's Fed shenanigans gave traders the excuse needed to ring the register. And now, we have an attractive buy-the-dip opportunity on our hands.This morning's gap into the rising 20-day moving average was swiftly bought up, and AXP stock is forming a strong bullish piercing candlestick pattern.Buy the May $110/$115 bull call spread for around $2.40. The risk is limited to $240, and the reward is limited to $260.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 3 Bank Stocks Whacked Down by the Fed appeared first on InvestorPlace.
Warren Buffett has a clear investing mantra: He likes value, and he likes holding on for the long term. The tactic has worked out well. Since Buffett took the reins of Berkshire Hathaway (BRK.B) in 1964, through the end of 2018, his stock has delivered an annual return of 20.5% that more than doubled the Standard & Poor's 500-stock index.Indeed, as the Oracle of Omaha famously told investors, his favorite investing period is "forever." This message reappeared in the hedge fund guru's most recent annual letter. In describing the fund's current portfolio of stocks, Buffett wrote, "In all likelihood, we will hold most of these stocks for a long time."The 88-year old continued, "My expectation of more stock purchases is not a market call. Charlie and I have no idea as to how stocks will behave next week or next year. Predictions of that sort have never been a part of our activities. Our thinking, rather, is focused on calculating whether a portion of an attractive business is worth more than its market price."That said, times change, and so do investing theses. Buffett has exited positions before, and will continue doing so when it makes sense - sometimes very quickly. For instance, Berkshire recently announced that it had exited its position in Oracle (ORCL) during the fourth quarter - a position it had initiated just one quarter earlier! That's an exception to the norm, but the point is some Buffett stocks are destined to be around longer than others.With this in mind, we delved into Berkshire's portfolio and found five Warren Buffett stocks that seem likely to stick around for the long term. SEE ALSO: The 25 Best Blue-Chip Stocks to Buy Now (According to Hedge Funds)
American Express Company plans to host a live audio webcast of its earnings conference call at 5:00 p.m. on Thursday, April 18, 2019 to discuss first quarter financial results.
American Express Co NYSE:AXPView full report here! Summary * Perception of the company's creditworthiness is positive * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is extremely low for AXP with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting AXP. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding AXP are favorable, with net inflows of $8.33 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is strong relative to the trend shown over the past year. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. AXP credit default swap spreads are near the lowest level of the last one year and indicate improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Boeing Stock: Worst Weekly Fall since 2016Worst weekly fall in three yearsBoeing (BA) was in the spotlight last week. One of the company’s fast-selling 737 MAX jets, operated by Ethiopian Airlines, crashed on March 10 and killed all of the 157
Mastercard's (NYSE:MA) battle with long-time archrival Visa (NYSE:V) continues, with a win in the bidding for fintech firm Transfast. Coming in the wake of losing out in an effort to purchase a similar company, cross-border payments network provider Earthport, MA stock investors can be confident the payments processor is doing all it can to remain competitive.Both Mastercard and Visa have seen their stocks rise as the world moves to cashless economies. With the evolution to digital money, the entire payments industry continues to benefit from double-digit profit growth.At the same time, it makes a decision to invest in MA stock or V shares more than a simple buy-or-sell question. In this industry, investors should not ask if they should buy Mastercard stock; they should find out if it or one of its peers would bring more profit?InvestorPlace - Stock Market News, Stock Advice & Trading Tips MasterCard Keeps Up Yet Falls BehindWith MasterCard buying Transfast and Visa presumably winning the bidding war to acquire Earthport, both firms get better access to bank accounts and ACH networks globally. Perhaps more importantly, both card processors expand their presence in peer-to-peer money transactions.So, as the world more toward a cashless society, the MA-Visa rivalry gets more heated. In nearly all cases, most merchants accept both types of cards. Yes, Costco (NASDAQ:COST) only accepts Visa, but such exclusive instances are rare. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% However, despite this parity, Visa dominates in terms of gross dollar volume, which covers all types of transactions. As of the third quarter of 2018, Visa controlled 61.5% of the market. This compares to only 25.2% for MA, and 11.1% for American Express (NYSE:AXP). Mastercard Benefits From Fintech GrowthHowever, where Mastercard lags in credit cards, it has compensated with its moves into debit cards and e-commerce. Thankfully for Mastercard stock bulls, these areas will see the most near-term growth in the fintech space.The benefit -- and the problem -- with this fintech sector is that every equity in the industry would probably bring profits. Even Discover Financial (NYSE:DFS), which holds only 2.2% of the market, should see double-digit profit growth this year. One could make an argument that MA stock would deliver higher returns than Discover. However, whether it can outperform its other peers is the bigger question. Should I Buy MA Stock?The MA stock price hovers near its 52-week high of about $228 per share. Still, it struggles to stand out even as it posts stellar numbers. In both profit and valuation, Mastercard and Visa appear similar. Mastercard stock analysts forecast profit increases of 16.3% this year and 18.4% in 2020. This barely exceeds the 15.4% rate for 2019 and 15.8% 2020 growth predicted for Visa. Moreover, the forward price-to-earnings (PE) ratio slightly exceeds that of Visa, 25.5 vs. 24.8. * 7 Top Stocks to Buy From Goldman Sachs' Secret Portfolio I like Mastercard stock better now than last year when I panned it for its high multiple and lower profit growth. Achieving near parity with Visa has changed the value proposition. However, it has not made MA stock more of a bargain than Visa.Moreover, if we evaluate these stocks purely on valuation, both American Express and Discover trade at single-digit PE ratios. Both have grown profits more slowly than Mastercard. However, with American Express set to overtake Mastercard as the second-largest processor of credit cards, AXP stock could become the equity of choice in this space. Bottom Line on Mastercard StockAlthough Mastercard stock remains a buy, the fintech sector appears to offer better options. The purchase of Transfast should enhance Mastercard's ability to conduct transactions. However, it continues to struggle to differentiate itself from Visa even as Visa achieves increasing dominance with credit card transactions.MA stock will continue to benefit from double-digit profit growth for the foreseeable future. Also, even though its 25.5 PE ratio exceeds its peers, most analysts would not call Mastercard stock "overpriced." Still, for investors who intend to pursue a higher return, they might see a larger profit by buying AXP stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Stocks Sitting on Huge Piles of Cash * The 10 Best Stocks to Buy for the Bull Market's Anniversary * 7 Dividend Stocks With Big Yields Compare Brokers The post MasterCard Stock Is A Buy, But Is It A Better Buy Than Its Card Peers? appeared first on InvestorPlace.
As a short follow-up to my story on the SPDR S&P 500 ETF of late Wednesday, I want to quickly show you how you can dig down into the components of the Dow Industrials to see how strong or how weak it might actually be.
Through thick and thin, the financial technology sector remains in favor on Wall Street. Companies like Visa (NYSE:V), Mastercard (NYSE:MA) and Square (NYSE:SQ) rarely come under fire from negative outlooks, so they make for strong bets on the upside potential of equity markets.Source: Kārlis Dambrāns via FlickrFintech offers the best of both words in the financial sector: They are prone to rallies and not considered dead money like bank stocks. When it comes to Visa stock specifically, it rallies similar to the Nasdaq Invesco QQQ Trust (NASDAQ:QQQ) and outperforms the Financial Select Sector SPDR ETF (NYSEARCA:XLF).In fact, yesterday, it set a new all-time high while the S&P 500 is still struggling to breach last year's neckline battle zones. Clearly, investors want to own more Visa stock and MasterCard than most other sectors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo is it too late to buy V stock? The answer to this varies from one investor to another and depends mostly on time frames. How to Approach Visa Stock HereThose who want to invest in it and own the shares for the long term, the simple answer is that it's not too late to own it. Over the span of years, I don't need to be surgical with my entry points. If the stock market is higher later, then so is Visa. * The 10 Best Stocks to Buy for the Bull Market's Anniversary For that purpose, even though V stockis at all-time highs, it is not expensive. It's cheaper than MA and sells at a trailing price-to-earnings ratio of 34. While this is not dirt cheap, since it's almost double that of Apple (NASDAQ:AAPL), it's not bloated either. So owning shares here for the long term is not likely to be a major financial debacle. There is not a lot of froth to lose so the downside risk should be limitedShort term, chasing a runaway stock like this at all-time highs is not ideal. It leaves the buyers' portfolios vulnerable to short-term dips. But then again, here the matter of intentions makes a difference.For those who are looking to trade Visa stock and not necessarily be in it for the long-term investment, then going long Visa stock here would be a tactical trade. The idea is to buy high and sell higher. But for that, we need precise levels to mark the stop loss points. Bottom Line on V StockTo understand the support levels we need to know how the rally up to here unfolded. V stock is now 25% off its December lows. But the breakout really started from $140 per share on Feb. 1 and after its earnings report. That level was a neckline with $146 per share as the target. So those are two major lines of support for the mid-term.More recently, a secondary pivot level developed around $145 per share. The bears tried to break on Mar. 8, but the bulls prevailed so that now becomes an important level to hold. If it fails in the near term, it would target support at $140. * 7 Inexpensive, High-Dividend ETFs to Buy On the lower time frame charts, there is a shorter-term recent level of contention at $149.70. This served as the floor for the recent poke to new all-time highs. So by default, this becomes the first level of support and if fails, it should also be the stop loss trigger for momentum traders. This does not affect those who are in the stock for the long haul.There is also another micro support zone between $151 and $152 per share that is an even tighter stop loss levels for momentum traders. Where I stop myself out depends on my own level of risk tolerance. Click to EnlargeThe first stop, however, remains in my overall thesis on Visa stock and my goals for the trade. I need to know if I am trying to trade it or invest in it. It is also important that if I am in it for a trade that I don't turn it into an investment.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Stocks Sitting on Huge Piles of Cash * The 10 Best Stocks to Buy for the Bull Market's Anniversary * 7 Dividend Stocks With Big Yields Compare Brokers The post Is Visa Stock Worth a Look After Setting a New All-Time High? appeared first on InvestorPlace.
American Express Company (NYSE: AXP ) is up 17 percent year to date, and its optimism for a strong 2019 certainly made an impression at this week’s Investor Day. The Ratings Guggenheim analyst Jeff Cantwell ...
Market correction. What market correction? For Visa (NYSE:V), it's as though the October drop never happened. Visa stock is already up 25% from its December bottom and has hit new all-time highs.Source: Kārlis Dambrāns via FlickrVisa enjoyed a modest pop on its most recent earnings report. That release showed EPS ahead of expectations by a few cents, along with a revenue beat.But the big driver for the stock has simply been the improving economic outlook and hopes for higher earnings as Visa raises merchant fees yet again. It's strategy may be about to run into problems, however.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What's Going on with Kroger?The first item of concern is that Kroger (NYSE:KR) is expanding its fight with Visa. Last August, Kroger stopped accepting Visa cards at nearly two dozen of its California stores citing high fees. It stepped up its criticism dramatically earlier this month. * 15 Stocks Sitting on Huge Piles of Cash Kroger's Smith's Food & Drug Store division will stop accepting Visa cards next month. Smith's operates 142 food stores and 108 gas stations predominately in the Rocky Mountain states."While no other Kroger banners are presently affected by this announcement, Kroger continues to explore options to reduce the cost of accepting credit cards in order to keep prices low for customers," Kroger said in a statement.Mike Schlotman, Kroger's Executive Vice President and CFO elaborated:"Visa has been misusing its position and charging retailers excessive fees for a long time […] They conceal from customers what Visa and its banks charge retailers to accept Visa credit cards. At Smith's, Visa's credit card fees are higher than any other credit card brand that we accept. Visa's excessive fees and unfairness cannot continue to go unchecked."Smith's will keep accepting all rival cards from American Express (NYSE:AXP), Discover (NYSE:DFS), and Mastercard (NYSE:MA), along with, interestingly enough, Visa debit cards. Most Visa bulls have dismissed this move as merely sour grapes from a struggling grocery chain. A Sign of Trouble to Come?As it is, credit card companies often earn higher margins on a customer's grocery purchase than the grocery store itself. While it's easy to blame Kroger, they face a challenging situation.Mastercard and Visa keep hiking their fees, taking advantage of a near monopoly situation. Meanwhile, grocery stores face intense competition, with more coming from the likes of Aldi and Amazon (NASDAQ:AMZN) every year.Over time, as retail gets more challenging, payment fees are likely to come down. As it is, Mastercard and Visa routinely get sued and face regulatory pressure from politicians for charging high fees. See the multi-billion dollar settlement that Visa, Mastercard, and certain banks just had to pay out.Visa has enjoyed a huge run in profitability since its IPO in significant part since it keeps taking a bigger and bigger portion of the pie in each retail transaction. But this can't go on forever. For one thing, retailers are going bust left and right. Kroger's may be an isolated move now, but at some point they'll put up a joint front to fight back against high fees.Additionally, technology will offer more and more ways to keep fees competitive. Sure, Visa and Mastercard are easy and secure ways to pay. But retailers, with the right incentives, should be able to move more transactions to competing smartphone-based channels. I don't see Visa and Mastercard being displaced anytime soon (the tech isn't moving that fast), but if Visa tries to stick it to the retailers too much, it will encourage faster adoption of substitute options. Visa Stock: How Much Should You Pay?What's the right price for Visa stock? That depends on what you think a proper P/E ratio for the firm is. And that, it appears, very much depends on what part of the economic cycle we're in.Between 2010 and 2012, Visa stock consistently traded under 20x trailing earnings. From 2013 to 2015, it generally trafficked in the 25x to 30x range. From 2016 to 2018, things got frothy, with Visa stock consistently over 30x earnings and moving over 40x for a time.So, today's 33x P/E ratio could be viewed as a decent correction to where it was over the past couple years. That said, I think there's still a lot of optimism baked in at current prices. I doubt Visa stock is going back under 20x earnings anytime soon, more market participants have discovered how great a company Visa is. But 25x earnings is certainly a realistic target when the market rolls over.Earnings have been growing at 15%/year compounded over the past five years. If that were to keep up, 33x earnings seems a little aggressive, but it's a justifiable price. It is a PEG ratio of over 2x after all, .However, should earnings growth slow down, 33x earnings is almost certainly too expensive. And with merchants hitting a breaking point on fees, don't expect Visa to keep being able to increase earnings by taking more of the retail pie forever. Visa Stock ConclusionVisa stock makes for a fantastic long-term buy and hold investment. There's no disputing that fact. If you buy at a halfway-decent price, you are likely to earn a solid total return as the company exploits its dominant market share to keep gobbling up more and more business.If you're looking at Visa stock as a shorter-term trade, however, there are reasons for concern. You're looking at a stock already up 21% over the past year and 15% year-to-date. We're only in March, so 15% year-to-date is quite the run. Visa stock is already at new all-time highs, well ahead of the market as a whole.And the analyst consensus for Visa stock is only around $160, suggesting less than 10% upside. Visa stock would have to put up great earnings to get analysts to lift their targets much higher. Again, V stock is a solid investment, but this isn't the most compelling entry point.At the time of this writing, Ian Bezek held DFS stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post The Visa Stock Upside Is Small and Getting Smaller appeared first on InvestorPlace.
American Express gave a mixed full-year forecast, but said last year's "strong momentum" gives it confidence.
Visa and MasterCard are two of the most widely used credit card brands, but are the differences between the two significant enough to influence consumers?
U.S. equities are extending their bounce higher on Wednesday, moving back over major technical resistance levels as the S&P 500 pushes up and over the 2,800 level it has been toying with since late February and has proved intractable since October.If the bulls can hold above this level, a push to prior highs could be in the cards -- putting a nice end to the impressive rally out of the late December low. While Boeing (NYSE:BA) continues to dominate much of the attention of the markets, with much of the world grounding its 737 MAX jetliner after two crashes within five months of each other, the familiar catalysts of steady corporate buybacks and central bank dovishness are powering the buying. * 15 Stocks Sitting on Huge Piles of Cash With large-caps leading the way, a number of key large-cap stocks are extending to the upside. Here are five Dow Jones stocks rallying hard:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Large-Cap Stocks: Bank of America (BAC) Click to Enlarge If the major averages are going to keep blitzing higher, Bank of America (NYSE:BAC) shares should see a move up and over three-month channel resistance after a long consolidation above its 200-day moving average. Management announced on Feb. 7 that it was increasing its share buyback program by an additional $2.5 billion.The large-cap stock should next report results on April 16 before the bell. Analysts are looking for earnings of 68 cents per share on revenues of $23.6 billion. When the company last reported on Jan. 16, earnings of 70 cents per share beat estimates by seven cents on a 10.7% rise in revenues. American Express (AXP) Click to Enlarge Shares of American Express (NYSE:AXP), which have rallied more than 25% off of the lows seen in late December, are now making a run at the high set in early December. A rally extension would mark a break of triple-top resistance and push to new records. Shares were recently upgraded to "overweight" by analysts at Atlantic Equities. * The 10 Best Stocks to Buy for the Bull Market's Anniversary The large-cap stock should next report results on April 17 after the close. Analysts are looking for earnings of $1.99 per share on revenues of $10.5 billion. When the company last reported on Jan. 17, earnings of $1.74 per share missed estimates by six cents on a 7.9% rise in revenues. Cisco Systems (CSCO) Click to Enlarge Shares of Cisco Systems (NASDAQ:CSCO) are extending their unbroken rally out of the December lows, a run that is already worth more than 25%. The rally takes the stock up and out of a year-long consolidation range that plagued the bulls throughout 2018. Management recently guided revenue above consensus estimates, increased its dividend by 6%, and approved a $15 billion increase to its share buyback program.The large-cap stock should next report results on May 15 after the close. Analysts are looking for earnings of 77 cents per share on revenues of $12.9 billion. When the company last reported on Feb. 13, earnings of 73 cents per share beat estimates by a penny on a 4.7% rise in revenues. Intel (INTC) Click to Enlarge Intel (NASDAQ:INTC) shares are recovering from a quick test of its 20-day moving average, setting up a run to its prior high of $57-a-share set in the first half of 2018.Semiconductor stocks in general have been hot so far this year, amid hopes of a global manufacturing turnaround and reports of a shortage in processors -- something that is reportedly set to get worse in the second quarter according to Digitimes. * 7 Top Stocks to Buy From Goldman Sachs' Secret Portfolio The company should next report results on April 25 after the close. Analysts are looking for earnings of 87 cents per share on revenues of $16 billion. When the company last reported on Jan. 24, earnings of $1.28 beat estimates by six cents on a 9.4% rise in revenues. Microsoft (MSFT) Click to Enlarge Microsoft (NASDAQ:MSFT) shares are on the verge of a new record high, rebounding more than 22% off of their December low to challenge the high set back in October. The multi-month pullback was the first significant bout of weakness for the tech giant since the spring of 2016. So bulls have been aggressively buying this dip amid the company's ongoing success in the cloud.The large-cap stock should next report results on April 25 after the close. Analysts are looking for earnings of $1 per share on revenues of $29.9 billion. When the company last reported on Jan. 30, earnings of $1.10 beat estimates by a penny on a 12.3% rise in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post 5 Large-Cap Stocks Pushing Higher appeared first on InvestorPlace.
President Donald Trump has no pardon powers over state crimes, and the move by Manhattan District Attorney Cyrus Vance Jr. raises the prospect of a third criminal conviction for Trump’s one-time campaign manager. It’s the latest entry in Manafort’s criminal saga, one that’s stretched from Ukraine to Brooklyn with allegations of money laundering, high living and witness tampering, while advising eastern European autocrats on how to stay in power. Vance has been investigating Manafort since March 2017, before Special Counsel Robert Mueller was appointed to investigate possible Russian interference in the 2016 campaign and any related matter.
Last year was especially hard on the financial sector. It developed the reputation that the banks could sustain a rally. But one segment within the financials is hotter than ever and held up well even last year. Unlike traditional money centers, financial technology or "fintech stocks" like PayPal (NASDAQ:PYPL) and even old dogs like Visa (NYSE:V) or Mastercard (NYSE:MA) continue to rally through thick and thin. Wall Street is enamored with their business models, and this has benefitted PayPal stock.Source: Shutterstock In fact, PayPal stock is up 21% in the past 12 months; whereas, the Financial Select Sector SPDR ETF (NYSEARCA:XLF) is down 10% for the same period. The fastest and most expensive runner of the fintech bunch is Square (NYSE:SQ), which is up 35% year-to-date, but PYPL, V and MA are all strong regardless as each is up around 15% for the same period.Today, the story is about PayPal and how it should be a winning investment for the long term and offer short-term opportunities.InvestorPlace - Stock Market News, Stock Advice & Trading Tips How to Approach PayPal Stock TodayFor years, the global trend has been to transition finances to strictly online transactions. From regular shopping to global money flow, we demand our money to flow fast and worldwide. This was most evident during the Bitcoin craze of 2017. Although the value of the coin is debatable, everyone agrees that the blockchain technology behind it is attractive and encapsulates the concept. * 10 Dividend Stock Winners Transactor companies like Paypal offer the blockchain concept of moving money fast and they are operational now. So they are best suited to sustain their success for years to come. Since the transition to electronic finance is in its infancy, there is enough business for all the current competitors to thrive.So PYPL stock is likely to do well for the long term, but the problem for investors is that it's a momentum stock. It moves fast in both directions and this presents a problem to many. On the way up it seems like it's ready to correct thereby forcing traders to miss out on the upside.Case in point, while Wall Street is still expecting a correction in stocks, PYPL stock is almost at its all-time highs. Clearly, the fintech bulls are used to the momentum aspect of this trade. The idea is to buy high and sell higher. Else we'd end up missing the whole trade.Fundamentally, Paypal stock is not cheap. It is almost twice as expensive as V and three times as expensive as American Express (NYSE:AXP). But for as long as it is growing fast, investors will give it a pass on that front.Younger companies need to over spend in order to catch up so it is more important that traders judge their top line performance and not the margins. At least PYPL is in the black whereas SQ still loses money.For those who want to own the shares for the long term, then, the actual timing is less important. If the stock market is rising, then PYPL will be higher later. But not every one wants to hold stocks for the long term and for those kinds of investors, there are short-term clues for more surgical entry and exit points. Bottom Line on PYPLFor the short term, PYPL is near its all-time highs, so buying it up here requires courage. But with proper stop loss levels, traders can do it provided they stick to their exit points well. * 7 Dark Horse Stocks That Deserve Your Attention in 2019 PayPal stock recently broke out of the $94 zone so that would be the best level of short-term support if the rally fades from the top. The closest support level, which usually is the weakest, is at $97. Below that, there are two similar supports at $96 and $95. So depending on personal preferences and risk tolerance, those would be the significant short-term levels to trade. This only applies to those in it for the short term. Longer term, it can fall to $88 per share and not change the bullish thesis much.In summary, Wall Street is attracted to financial tech because the transition into an electronic environment plays right into the hands of companies like PayPal. That means you can own it or trade it with confidence for years to come.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post PayPal Stock Still Has Plenty of Room to Run appeared first on InvestorPlace.
The board of directors of American Express Company today declared a regular quarterly dividend of $0.39 per common share, payable on May 10, 2019 to shareholders of record on April 5, 2019.