294.61 -4.31 (-1.44%)
Pre-Market: 4:00AM EST
|Bid||0.00 x 1100|
|Ask||0.00 x 1400|
|Day's Range||295.52 - 308.00|
|52 Week Range||244.59 - 387.46|
|Beta (3Y Monthly)||0.62|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||334.53|
Tilray, Express, Tesla, Toyota and United Airlines are the companies to watch.
Tesla is reducing its Supercharger price hike by 10 percent amid a torrent of negative feedback. As Electrek pointed out, prices hit 32 cents per kWh in areas in downtown NYC and 36 cents per kWh in some California locations. At the time, Tesla insisted that its EVs would still be less expensive to fill than gas cars.
Asia’s biggest automaker is setting up a joint venture with Panasonic Corp. to produce batteries for partners such as its Daihatsu unit, Mazda Motor Corp. and Subaru Corp. that together account for more than 20 percent of global car production. Toyota will own 51 percent of the venture, to be established by the end of 2020. For Panasonic, which supplies batteries to Tesla Inc., it’s good news. The spreading of risk away from Elon Musk’s company will relieve investors.
"We are concerned that the company may not successfully produce its Standard Battery version in time in order to compensate for a potential drop in demand for its high-end vehicles," wrote Neddham & Co. analyst Rajvindra Gill in a note out Tuesday morning.
Recent price cuts on the Tesla Model 3 along with job cutbacks suggest demand for higher priced versions of the all-electric sedan are waning, pressuring profit margins.
When looking for the best stocks to invest in, battery stocks generally receive little attention. This likely stems from the fact that few companies market themselves as such. For example, Duracell Inc. functions as a subsidiary of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B). As such, the public tends to focus on Warren Buffett instead of his battery business. Others such as Interstate Batteries or retailer Batteries Plus Bulbs remain in private hands. * 5 Artificial Intelligence Stocks to Consider Still, as the march toward improved technology progresses, the need for the energy batteries provide continues to grow. Batteries can now power cars and homes. Additionally, advances in solar and the launch of 5G wireless networks mean that the latest tech advances will derive their power from batteries. Given the world's future energy needs, these battery stocks look especially well positioned to power both the tech industry and investor stock gains: InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Tesla (TSLA) Source: Shutterstock For all of the publicity surrounding its cars, investors should classify Tesla (NASDAQ:TSLA) as one of the more essential battery stocks. Consumers often forget that Tesla also has its Solar City subsidiary, which manufactures solar panels and solar roof tiles. Like the car, all of these products depend on a battery to store the energy. Hence, in truth, the battery serves as the company's core product. Admittedly, I have long seen TSLA stock as one of the only overinflated battery stocks. I respect the accomplishments of Elon Musk. However, I fear that he's a creative genius with little business sense, much like the company's namesake, Nikola Tesla. Still, with TSLA stock now earning a profit, I see a buy case for more risk-tolerant investors. I do not often recommend stocks with a forward P/E ratio of around 64. Still, the P/E means the company now earns a profit. Additionally, analysts predict profit growth in the triple digits through at least 2021. Such income increases make it difficult to count out TSLA. Moreover, its product lines have tremendous implications for both life and business as we know it today. The car battery could greatly reduce the need for fossil fuels. Furthermore, the company's Solar Roof could mean consumer independence from electric utilities. Despite the promise, one cannot overstress Tesla's risks. For one, Mr. Musk's behavior does not inspire confidence. In fact, a layoff announcement to control costs recently led to a one-day stock selloff of about 13%. Also, products such as Solar Roof have not yet become cost effective. Moreover, from a financial perspective, if profit forecasts turn negative, the case for TSLA stock could fall apart. Still, if Tesla lives up to its potential to change the world, Tesla stock will appear cheap at these levels. ### Panasonic (PCRFY) Source: Shutterstock Admittedly, most Americans think of Panasonic (OTCMKTS:PCRFY) as a consumer electronics company. However, PCRFY has moved into battery production in recent years. It has claimed its place among battery stocks by becoming the only approved supplier of lithium-ion batteries for Tesla's cars. It produces these batteries in both Japan and at Tesla's Gigafactory 1 in Nevada. Now, with a new factory in China, Panasonic plans to almost double its production capacity. To say the least, batteries are positioned to serve as one of the PCRFY's bright spots in future years. Also, in an ironic twist, PCRFY stock may allow for an indirect way to profit from Tesla. As one of Tesla's most important partners, it will benefit from Tesla's success. However, if Tesla falls short, Panasonic's eco solutions, appliance and connected solutions divisions will soften the blow. PCRFY stock also carries fewer risks than Tesla financially. PCRFY trades at 9.5 times forward earnings, less than one-sixth Tesla's forward multiple. Also, it expects profit growth of 15.7% next year. It also pays a substantial dividend. Even with currency risk, analysts estimate an annual dividend for 2019 of about 26 cents. This places the dividend yield at around 2.7%. * 7 Dark Horse Stocks You Really Need to Look at for 2019 Despite optimism on this front, PCRFY stock fell for most of 2018. And Panasonic currently trades at about 40% below its 52-week high. However, we could be in the midst of a rebound. The stock has risen by almost 15% since December 24. The realization of double-digit profit increases could also inspire more buyers. No matter what happens in the near term, the unusually low P/E and the growth prospects coming from Tesla could make PCRFY one of the more attractive battery stocks. ### Energizer (ENR) Source: Shutterstock Along with Duracell, Energizer (NYSE:ENR) is one of the names that comes to mind when discussing batteries. Energizer has long served as a common choice when needing a battery for one's flashlight, toy, or portable electronic device. Since 1988, the Energizer bunny has reminded consumers of the power of Energizer batteries and inspired consumer purchases for more than three decades. The company can trace its origins back as far as the 1890s. However, ENR stock came about when the company split from Edgewell Personal Care (NYSE:EPC) in July of 2015. As such, it trades much like the stock of an older company despite its relatively recent IPO. I would recommend ENR stock for investors seeking both income and growth. It has raised its dividend every year in its existence. For 2019, it will pay an annual dividend of $1.20 per share. This brings the yield to just over 2.5%. ENR has also shown steady but significant appreciation. It has risen just under 35% in its 3.5 years of existence. Also, ENR has achieved this despite falling almost 29% from its 52-week high over the last six months. The market hammered ENR stock following its third-quarter revenue miss. Still, I see this as an overreaction. Analysts forecast 25.1% profit growth in 2019. Even if that slows in future years, the low PE, a growing dividend, and the ever-increasing importance of batteries should keep ENR stock in good ste/ad for years to come. As of this writing, Will Healy held no positions in the aforementioned securities. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality Compare Brokers The post 3 Battery Stocks Positioned to Power Portfolio Gains appeared first on InvestorPlace.
The US Reportedly Cancels This Week’s Trade Talks with ChinaThe market sell-off On Tuesday, the broader market is trading on a negative note due to investors’ growing fear of slowing global economic growth. Yesterday, China’s National Bureau of
What Do Analysts Expect of Ford’s Q4 2018 Earnings?(Continued from Prior Part)Ford’s recent stock performance In the previous article, we looked at how Ford Motor Company (F) stock has managed to outperform the S&P 500 Index in January so
Analysts at Goldman Sachs and Needham worry that demand for the not-yet-released lower-priced Model 3 could hurt sales.
Tesla approaches its fourth-quarter earnings day hoping to show a GAAP profit for the second quarter in a row.
Tesla's (NASDAQ:TSLA) stock had a volatile 2018, with Elon Musk & Co facing difficulty in the ramp-up of Model 3. With the production rate of Tesla's Model 3 stabilizing close to 5,000 per week (at 4,723), most of the extreme bearish forecast about Tesla has been proven wrong. Most. Already, 2019 is shaping up to be Elon Musk's most important year, with TSLA shares swinging violently on any bit of good or bad news. For the year so far, TSLA stock is down 2.5%. On the one hand, shares of the electric vehicle maker initially spiked to begin the new year, as Tesla announced its fourth-quarter production grew to 86,555 -- an all-time high -- and that it plans to sell Model 3 in China and Europe. On the other hand, TSLA received a 13% haircut when the EV-maker announced it would cut 7% of its workforce. The selloff was considered a buying opportunity by many. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stupidly Cheap Stocks to Buy Now One of the more prevalent bearish arguments, however, is that new competitors will be launching their electric models while Tesla will need to deliver profits and margin growth to improve bullish sentiment. Remember, Tesla is a speculative story, and it needs a narrative to flow in its favor. It's got its work cut out for it, but there are plenty of broader trends and specific strategies Tesla can take to put its story in a more positive light … ### Way forward for Waymo and Self-Driving Self-driving and ability to have its own private transportation fleet has been one of the reasons why investors are optimistic about Tesla stock … In 2018, we saw a major reversal when one of the Uber's autonomous vehicles was involved in a fatal accident. Despite this setback, Alphabet's Waymo has plowed ahead. It has started Waymo One, the first commercial self-driving ride-hailing option in the Phoenix metro area. Throughout 2019, all eyes will be on how this fleet performs and if there are any mishaps. If Waymo One is able to operate without any major incidence, it will help improve the sentiment for Tesla's self-driving technology. A recent report by UBS mentioned that Waymo could book a staggering $114 billion in revenue in 2030. Obviously, if Waymo is able to show decent acceptance of its self-driving fleet, we should see similar bullishness for Tesla. In the case of Tesla, having a better autopilot option will help the company differentiate itself from other competitors. Most of the competitors would have to rely on other vendors to provide autopilot capabilities in their cars. Tesla's "software first" approach should help the company maintain a decent competitive edge in self-driving. Eventually, we should see a maximum of three or four major self-driving alternatives. Heavy regulation in this space would also create a major barrier to entry for newcomers. Tesla will play a big role in the self-driving ecosystem which should certainly improve the pricing power of its models and also provide an option to have its own self-driving fleet. ### Breaking Ground in China Tesla needs to have a good market share in the rapidly growing EV market of China. The new factory in Shanghai is expected to start production for Model 3 by end of the year. Local production in China would reduce the tariffs and cost of production for Tesla. It will also reduce any impact due to future trade tensions between the U.S. and China. In the initial phase, Tesla is expecting to produce 3,000 Model 3 per week. This would eventually be ramped up to 500,000 vehicles per year. Subsidies for electric vehicle have been reduced in China. However, there is a strong pent-up demand in most of the major cities for complete transformation to electric vehicles. Tesla's brand strength and local production should help the company gain a big share of this market … ### Where Is the Competition 2019 would be an ideal year to see the strength of Tesla's brand against other automakers. Audi's e-tron and Hyundai's Kona are some of the frontrunners that are cited in the EV market. Jaguar's I-Pace has also done a good job by giving great specs with attractive design. Tesla would need to compete against all these newcomers and be able to maintain its loyalty among customers who want to shift to an EV. We could likely see some of the impacts on deliveries for TSLA in the first half of 2019. The opening of Model 3 reservations for Europe will also provide a clear picture of the demand for these cars at the new price point. Tesla has recently reduced the prices which are taken as a clear sign of a lack of demand by bears. However, we need to note that the reduction in prices is not very big and it was done around the time when federal subsidies will get lowered. Wall Street seems to be overreacting to every little news from Tesla. Unless we see some strong sign of demand shift to newer competitors, there shouldn't be a need to worry about the stock. We should also note that Tesla has undergone a massive change in 2018 as the production ramp-up of Model 3 has been largely successful. Despite this, the stock has experienced a near-3% decline in 2019. This means that the next growth momentum would only be possible when Tesla shows its performance against other EV competitors. Tesla has a number of advantages in terms of EV leadership, branding, software-first car, competitive autopilot option and more. The company and its leadership have also learned some valuable lessons with the difficult ramp up of Model 3. This should make future product launches easier and more predictable. I believe that unless the competition is able to completely overthrow Tesla, the stock should maintain bullish sentiment through 2019. ### Investor Takeaway After a roller coaster 2018, 2019 will be an important year for Tesla stock holders … As the self-driving option becomes more popular and acceptable among the regulators and customers, we should see better valuation for Tesla's own autopilot capability. Tesla has also broken ground in its Shanghai factory. If the timeline for production is close to current estimates, it will improve the outlook of Tesla models in China. Investors should also keep a close eye on the performance of the competition. Some of the biggest names will be launching EV models which can directly compete with Tesla. The last thing that Tesla needs is to lower its prices. The bullish sentiment for Tesla's stock will improve significantly if we do not see any major price revisions from Tesla in the next few quarters. Despite all the shenanigans in 2018, the long-term bullish case for Tesla is still strong. As of this writing, Rohit Chhatwal did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality Compare Brokers The post Here's How Tesla Can Change Its Narrative appeared first on InvestorPlace.
The rough start to 2019 for Tesla Inc (NASDAQ: TSLA) and its investors continued Tuesday, with the stock once again dropping below $300. Wall Street is as polarized as ever about Tesla stock, with several analysts weighing in on how investors should handle the most recent news. Buying Opportunity? Tigress Financial analyst Ivan Feinseth said Tesla’s cost-cutting efforts are nothing for investors to get worked up about.
What Do Analysts Expect of Ford’s Q4 2018 Earnings?Ford’s fourth-quarter earnings Ford Motor Company (F), the second-largest US automaker by 2018 vehicle sales volumes, is set to release its fourth-quarter earnings results on January 24. Before
Why Tesla Fell 13% Last WeekTesla’s fall In the week that ended on January 18, the stock of popular electric carmaker Tesla (TSLA) fell 13.0%, its worst weekly loss in the last 22 weeks. The fall was primarily the result of a sharp sell-off in the