175.90 -1.37 (-0.77%)
Pre-Market: 8:24AM EDT
|Bid||175.65 x 900|
|Ask||176.00 x 900|
|Day's Range||176.02 - 178.77|
|52 Week Range||121.60 - 187.05|
|Beta (3Y Monthly)||0.81|
|PE Ratio (TTM)||34.04|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||1.00 (0.56%)|
|1y Target Est||201.33|
Financial technology company Plaid Inc on Monday said it is set to receive new backing from Visa Inc and Mastercard Inc as part of a new round of Series C financing worth a total of $250 million. The fintech startup, whose technology lets people connect their bank accounts to mobile apps like Venmo, did not disclose the size of Visa and Mastercard's investment in a statement announcing the deal on Monday morning. "Financial services is in the midst of a digital revolution, led by the fintech market," Zach Perret, Plaid's chief executive officer, said in the statement.
Visa is committed to working with innovative companies in the insurance industry to help turn outdated and time-consuming processes associated with insurance claim payouts into near real-time1 access to payments when individuals, families and businesses need them the most. “Visa believes that money shouldn’t be a stressor in moments of crisis and waiting on average six to 10 days to access the money from insurance checks, is outdated, frustrating and costly to those in need,” said Bill Sheley, SVP and Global Head of Visa Direct, Visa. “Being such a globally trusted brand, Visa knows trust is the underpinning of the insurance industry.
Stocks traded higher again Wednesday with the Dow Jones Industrial Average positioned for a seventh consecutive winning day as the European Central Bank (ECB) delved further into easy monetary, and amid news that trade tensions between the U.S. and China continue to thaw.Source: ymgerman / Shutterstock.com Given President Donald Trump's Twitter (NYSE:TWTR) volatility, it's wise to approach good trade news with some caution, but over the course of this week, some green shoots have emerged.The White House pledge to push back some proposed tariffs on Chinese goods while China is promising to rollback some levies on U.S. imports in conjunction with upping purchases of American farm products.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday, reports emerged that the White House has discussed offering some form of a limited trade pact to China. Whether or not that agreement is accepted remains to be seen, but the overarching issue is that both sides, at least for now, are showing willingness to work on trade deals. * 10 Battered Tech Stocks to Buy Now In Europe, the ECB cut its benchmark lending rate to -0.5% and pledged to buy $22 billion worth of euro-denominated bonds per month.Those headlines got us to the Nasdaq Composite gaining 0.30% today while the S&P 500 jumped 0.29%. The Dow Jones Industrial Average tacked on 0.17%. In late trading, 23 of the 30 Dow stocks, one of the better ratios this week, were trading higher. First, the Bad NewsYes, there were some glum performances among Dow stocks today. For example, Caterpillar (NYSE:CAT) slipped about 1% after Wells Fargo downgraded the construction machinery maker to "market perform" from "outperform." The bank also pared its price target on that Dow stock to $143 from $150."U.S. construction equipment demand is at or near peak, which will put downward pressure on earnings power," said Wells Fargo.On a technical basis, Caterpillar recently bumped into some overhead resistance and looking at the chart, the shares look primed to pull back over the near-term.Speaking of analyst chatter hurting Dow stocks, Walgreens Boots Alliance (NASDAQ:WBA) was the worst-performing Dow stock today, sliding over 4% after Deutsche Bank analyst George Hill initiated coverage of the stock with a "sell" rating.Hill had a tepid take on Dow stock UnitedHealth (NYSE:UNH), starting coverage of that laggard with a "hold" rating. Shares of UNH also finished lower today. Bright Spots on the DowVisa (NYSE:V) was the best-performing Dow stock today, adding 1.71%. It looks like buyers stepped into the name after the shares pulled back following a record close last Friday. The stock had been nearly 4% over the past several days.Shares of Walmart (NYSE:WMT) added nearly 1% after the largest U.S. retailer unveiled an expansion to its grocery delivering service. Priced at $98 annually, or $82 less per year than the fee on Amazon Fresh.Whether its streaming entertainment or food delivery, pricing power matters. Companies that can offer it without disrupting the long case for their stocks usually get a boost from investors. Walmart plans to expand the new grocery delivery service to 200 metro areas across the country.Walt Disney (NYSE:DIS) bounced back today as some of the concerns about Apple's (NASDAQ:AAPL) streaming effort ebbed.Disney has its own streaming plans, Disney +, and Credit Suisse says that if that offering can attract 10 million subscribers by the end of this year, that could bring double-digit upside for the stock. DJIA Bottom LineCentral banks around the world are acting to prop up economies that are in far worse shape than the U.S., and it's likely the Federal Reserve will follow suit to avoid having to act when it's too late.In comments made in Chicago today, former Federal Reserve Chair Janet Yellen affirmed that the Fed stands at the ready to shore up the world's largest economy, which she still views as solid. However, she doesn't believe the central bank will follow the ECB playbook of negative rates.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Dow Jones Today: Maybe We're Getting Somewhere appeared first on InvestorPlace.
For the last few days the stock markets have been healthy. Sentiment has taken a turn to positive and it's like nothing bad is ever going to happen again. Just yesterday the indices rallied through incredible levels especially in small cap stocks. So there's no doubt that there are stocks to buy here.Today we discuss three high-profile stocks to buy: Visa (NYSE:V), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT). These are fallen angels stocks because they have recently corrected off of their highs just when they looked like their rallies would never end. * 10 Battered Tech Stocks to Buy Now The time frames differ among them, but the concept remains the same. They were headed to the moon, then they tripped. So now the opportunity is to pick the right level to buy these stocks. All three management teams are impeccable and they rarely falter on their own. So the bullish thesis for all three AMZN, MSFT and V assumes that markets in general are not going to crash any time soon.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Microsoft (MSFT)It's hard to call MSFT stock a fallen angel stock because it's still up 34% year-to-date and it's only 5% off of the highs. Nevertheless, it has had a tough time in the last trading week, and what makes it interesting is that it did this while the equity markets were rallying hard.Normally, this raises an alarm and causes me to look into weaknesses which would bring sustained selling. But that's not the case here. This is a proven company who is merely having a normal price action give-and-take inside a very healthy ascending trend.Fundamentally MSFT is not cheap since it sells at 29 trailing price-to-earnings ratio and 8 times sales. But this is a company that deserves the benefit of the doubt so it is possible that they deliver strong growth to justify the higher valuations.This is all to say that Microsoft stock is not cheap but it still is a good one to own for the long term. So these dips are normal and should not cause a panic out of the stock.Technically, the zone around $130 per share is pivotal for MSFT stock. This was resistance in April, then a break out in June, and then a successful test for support in early August when markets fell in fear of the 10% additional tariffs tweet. So clearly the bulls earned the right to use it that support.Knowing this, makes it possible for the buy-programs to prevail over the bears in the battle over MSFT for as long as the equity markets are healthy. If I own shares, I don't panic out of them on these dips. Moreover, if I want to own some for the future then this is as good a time as any to start a position there.Alternatively I can use options to sell puts or spreads below said support to generate income without needing rallies. For this, it is important to note that if stocks correct this year from geopolitical risk, then Microsoft stock is vulnerable to a 12% correction. Visa (V)V stock is in a similar situation to that of Microsoft. It's a proven winner that was seemingly rallying to the moon without interruption. But then in the last few days, it fell 6% while the general markets are up big.Here too, the drop is not a reflection on Visa itself but rather part of normal price action. For the longest time credit card stocks with a presence in the fintech space like Visa and MasterCard (NYSE:MA) have been darlings because the investment dollars allotted to bet on financials shied away from buying money-center banks like Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM). Instead they piled into fintech.However the recent rally in yields caused a frenzied wave of buying the traditional banks and money has to come from the same bucket. So there is a rotation out of winners like V stock into laggards. The opportunity here is that rotations are usually temporary. Meaning the dip in Visa stock should be a buying opportunity.Just like Microsoft, Visa is not cheap. It sells at 35 trailing P/E and 18 times its sales. But this alone is not cause for alarm because that's how it's always been. So unless the bears have developed sudden incredible fortitude, I bet that the selling will abate soon.Technically, Visa stock should have support around $172 per share. Moreover there is bigger support from pivotal zones at $165 per share. So if I owned shares I don't panic yet. If seeking a long entry with room to spare, I like to sell puts into support zones on bad days to generate income as long as I can gauge the risk. * 10 Healthcare Stocks to Buy Despite the Headlines Visa stock is 7% off its highs, so if I sell a put in V stock at $160 per share I would own it after a 15% correction. This is a risk I can tolerate and I bet would be a fruitful one. I should know that there is short-term risk looming. if Visa falls below $183.75, it could invite sellers to $168 per share. Amazon (AMZN)I cannot write about potential upside of fallen angels stocks without including the biggest momentum story of all time. AMZN stock is one that has been in the news for decades. It draws critics and fans in droves and is subject to many a heated debate.After the May correction, Amazon stock made a nice recovery but it gave almost all of it back. And it now sits 10% lower than the July highs. The size of the moves in Amazon stock should never surprise investors. This is the mother of all momentum stocks and when it moves, it does it fast and long. So it is best to wait for confirmation of breakouts in either direction before trading it.Short term, Amazon stock rallies if above $1,853 per share, and could even recover what they lost since July. There will be resistance points along the way so it won't be easy. Conversely, if it falls below recent support near $1,740 then they could extend the correction down to $1,600 per share.In essence, the battle is between completing an ABC technical move lower or establishing a base for a rebound rally to breakout from the necklines above. Meanwhile, the AMZN stock is ping-ponging inside a tight range and I should chase the break out of either sides. I personally favor the upside potential for as long as the markets in general are healthy.For those thinking of turning this into an investment, Amazon is a safe bet in the long run in spite of its high valuation. It sells at 75 trailing P/E but only 3.4 x sales. So as long as they are delivering growth, a high P/E is a prerequisite. You have to spend a lot in order to grow a lot.We still have the same geopolitical risks we had when we first started this correction. So we are one headline away from rekindled panics. This is all to say that traders shouldn't take giant positions all at once with great conviction because we have are still hostage to headlines. The best homework can be obliterated short-term by silly headlines. So I don't risk what I cannot afford to lose.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. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post 3 Fallen Angel Stocks to Buy Before They Fly Again appeared first on InvestorPlace.
DOW UPDATE The Dow Jones Industrial Average is climbing Thursday morning with shares of Visa and American Express leading the way for the blue-chip average. Shares of Visa (V) and American Express (AXP) are contributing to the index's intraday rally, as the Dow (DJIA) was most recently trading 157 points (0.
The Dow Jones Industrial Average is on the move thanks to an improved trade war outlook after China offered to increase purchases of U.S. agricultural products if the U.S. lessened restrictions on Huawei last week. The index, which is comprised of 30 American blue chip stocks, has climbed 3% in the last five days. This has not escaped the Street’s attention, with analysts saying that a few Dow stocks are heating up.“It seems like the tone on trade has gotten better. As long as we don’t have another tweet storm around trade, I think the market can stay in the upper end of this range,” said Art Hogan, chief market strategist at National Securities. Using the TipRanks Stock Comparison tool, we were able to see how a few of the index’s stocks measure up against each other. We just typed in up to seven tickers and the tool compared each of the stocks based on market cap, PE ratio, analyst consensus and average analyst price target. Based on the results from the comparison, we were able to find 3 Dow stocks that have garnered substantial support from Wall Street with a “Strong Buy” analyst consensus. This is based on the last three months’ worth of ratings from all other analysts. Let’s take a closer look. Visa Inc. Visa Inc. (V– Get Report) has had a tough week, with the payments processor seeing shares plummet almost 6% in the last three days. A few analysts say that the stock market's "sector rotation" as investors rotate out of big winners and into the biggest underperformers ahead of year end was to blame for this dip. That being said, some analysts are telling investors that its core strategy will pay off long-term. Even with the pullback Visa shares have gained 33% year-to-date, with the company standing to reap the benefits as the world goes cashless. According to its July 23 fiscal Q3 2019 earnings release, the company looks solid. Total payments volume, the dollar amount of purchases made with cards carrying Visa’s branding, jumped almost 9% year-over-year to reach $2.23 trillion on a constant dollar basis. To further capitalize on the cashless payments movement, the company recently partnered with MoneyGram (MGI) on a peer-to-peer (P2P) transfer option that lets customers in the U.S. send money domestically through the MGI website or app to an eligible debit card. The product, which was unveiled on September 9, starts at $1.99 and enables 24-7 transfers using Visa’s real-time push payment platform, Visa Direct.Adding to the good news, the Foreign Trade Commission (FTC) granted antitrust clearance for Visa’s acquisition of Verifi. The deal will give V access to improved dispute management technology. One top analyst points out that its substantial efforts to expand its business to business (B2B) payments arm are especially exciting, highlighting its July PayMate investment and Rambus acquisition back in June. As a result, Guggenheim analyst Jeff Cantwell reiterated his Buy rating and $199 price target on August 28. The five-star analyst sees potential for 14% upside.All in all, Wall Street agrees with Cantwell. Visa boasts a ‘Strong Buy’ analyst consensus as well as a $202 average price target, indicating 14% upside potential. McDonald's Corporation With the fast food company already gaining 18% year-to-date, some analysts believe investors should still put McDonald’s Corporation (MCD– Get Report) on their plates.While MCD is known as a burger chain, the company is making a name for itself as a tech company thanks to its significant focus on digitization. These efforts include products to speed up ordering and fulfillment such as self-ordering kiosks in many of its locations. Management noted in its July 26 Q2 earnings release that its global comparable sales growth shows the kiosks are already paying off, as customers tend to order more food or extra side items when compared to traditional ordering. With its mobile app, diners have the option to choose the time and pickup method. Not to mention the app can be synced with a user’s digital payment wallet. To further strengthen its delivery options, MCD announced its partnership with online food delivery service DoorDash in July. Most exciting though is the fast food giant’s foray into the world of artificial intelligence (AI). The company announced on September 10 that it’s set to acquire voice-based AI startup Apprente in order to improve the drive-thru experience. The startup, which will be housed under the new “McD Tech Labs” unit, will allow MCD to create voice-activated drive-thrus, speeding up the process as well as requiring less staff to operate restaurants. This is on top of its $300 million acquisition of online personalization company Dynamic Yield back in March.While some investors originally expressed concerns over MCD’s discounted pricing, SunTrust Robinson analyst Jake Bartlett believes the above factors will keep MCD on an upward trajectory. “We think the MCD buy-one-get-one for $1 promotion shows an effort to drive traffic, but also highlights the restaurant chain's focus on franchisee profitability,” he explained. As a result, he reiterated his Buy rating and $246 average price target on August 27. The five-star analyst believes shares could gain 17% over the next twelve months. With 16 Buy ratings vs 5 Holds assigned in the last three months, the word on the Street is that MCD is a ‘Strong Buy’. Its $231 average price target suggests 9% upside potential. The Walt Disney CompanyDisney (DIS\- Get Report) has attracted substantial buzz from the Street thanks to its new streaming service, Disney+, with shares already gaining 24% year-to-date. That being said, the house of mouse has seen shares dip 2% in the last three days thanks to Apple’s (AAPL) product update on September 10.Apple announced at its September 2019 Keynote that its new streaming service, Apple TV+, will start at a much lower price point than previously expected. After its November 1 launch, Apple TV+ will be available starting at $4.99 per month. This directly undercuts Disney as its own service will start at $6.99 per month, with the premium bundle running at $12.99 per month. It should be noted that Apple’s streaming service will feature less content than Disney’s. One top analyst believes that competition from Apple doesn’t change Disney’s strong long-term growth narrative. Credit Suisse’s Douglas Mitchelson conducted a survey of 40 investors in order to measure investor sentiment. The headline results were resoundingly bullish, with 58% now overweight vs 37% pre-Analyst Day in April as the Disney+ launch on November 12 is expected to be a major catalyst. That being said, in order to see significant upside Disney will need a big launch. DIS should also get a boost from its collaboration with Target (TGT) that includes the opening of 25 Disney stores within TGT locations on October 4. Investors have yet another reason to be excited as the company has an ambitious plan to give its Epcot theme park a major upgrade with new interactive elements, show space and new rides based on popular Disney films.Based on all of the above factors, Mitchelson reiterated his Buy rating and $150 price target. The 4.5-star analyst thinks shares could surge 10% over the next twelve months. 10 Buy ratings and 2 Holds assigned in the last three months add up to a ‘Strong Buy’ analyst consensus. Its average price target of $158 implies 16% upside potential. Discover Wall Street’s most loved stocks with the Top Analysts’ Stocks tool
Visa (NYSE:V) today announced it has completed the acquisition of Verifi, a leader in technology solutions that reduce chargebacks. The acquisition of Verifi strengthens Visa’s role of facilitating trust and transparency across the buying experience by extending its dispute resolution capabilities to support a broad range of payments brands and partners across the ecosystem.
One of the most widely used phrases in the investment world is "follow the smart money," and it broadly means that investors would be wise to follow the investments of hedge funds and institutional investors (the "smart money").As hedge fund tracking site Whale Wisdom shows us, following the smart money over the past several years has been a very profitable thing to do. Whale Wisdom has comprised what it calls the WhaleIndex, which is a portfolio of the 100 highest-conviction stocks held by leading hedge fund managers, as shown in quarterly 13-F filings. Since 2006, the WhaleIndex has returned about 370%, crushing the 200% S&P 500 return over that same time frame.Clearly, following the smart money has been the smart move. No pun intended.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September With that in mind, let's take a look at seven stocks that Whale Wisdom says hedge funds love. That is, the seven highest-conviction stocks that hedge funds own the most of, as of second-quarter 13-F filings. Best Stocks Hedge Funds Are Buying: Microsoft (MSFT)Source: Shutterstock The most owned stock among hedge funds is technology giant Microsoft (NASDAQ:MSFT), with an aggregate second quarter 13-F holding value of $735 billion.This seems like an obvious choice for smart money. Microsoft is a blue chip technology giant which has been around forever, has a huge ecosystem of products and services, and most importantly, has found its growth stride again through enterprise cloud services migration and expansion. The company consistently beats Street estimates, has a long track record of cloud-driven double-digit revenue growth, and is benefiting from upside margin drivers which are driving even bigger profit growth.There's a lot to like about the fundamentals supporting MSFT stock. Perhaps the best thing to like is the valuation. Even with all these favorable attributes, MSFT stock still trades at just just 22.8-times forward earnings -- a bargain for a mega-cap, big-growth cloud stock.All in all, then, it makes sense that the smart money loves Microsoft stock. This is a big company with big growth drivers trading at a very reasonable valuation. That's a winning combination that has propelled the stock 100% higher over the past three years. It should propel similarly large gains going forward, too. Apple (AAPL)Source: mama_mia / Shutterstock.com The second-most owned stock among hedge funds is consumer technology giant Apple (NADSAQ:APPL), with an aggregate second quarter 13-F holding value of $550 billion.Another obvious choice for smart money, Apple has many of the same winning characteristics as Microsoft. This is a blue-chip technology giant with a long track record of growth, and which has created an ecosystem of consumer technology hardware products that over a billion people around the world use every day. The first part of the Apple growth narrative was all about building out that hardware ecosystem. The second part -- which the company is transitioning to now -- is all about monetizing that ecosystem with software subscription services, like Apple TV+ and Apple Music.In other words, this company has a history of a big growth, and a very smart game-plan to sustain that big growth for the foreseeable future. At the same time, software businesses carry higher margins than hardware businesses, so this pivot to software-focused growth is also additive to margins and should super-charge profit growth.Apple has a robust profit growth trajectory ahead of it. Even with that robust profit growth outlook, AAPL stock still trades at less than 18-times forward earnings -- the lowest multiple in the entire mega-cap technology group. * 7 Automotive Stocks to Buy Now As such, with Apple (much like Microsoft) you have a host of favorable characteristics on top of a reasonable valuation. This has driven big gains in the stock over the past several years, and should continue to do so. Amazon (AMZN)Source: Zapp2Photo / Shutterstock.com The third most owned stock among hedge funds is e-commerce and cloud giant Amazon (NADSAQ:AMZN), with an aggregate second quarter 13-F holding value of $515 billion.Hedge funds have fallen in love with Amazon stock for two big reasons. One, we live in the era of the growth trade, supported by the fact that interest rates are very low and Treasury yields globally are near record lows (and often in negative territory). When rates are low, the growth trade works. That's because growth stocks derive most of their value from future profits, and when rates are low, the present value of those future profits increases because the discount rate used to discount back those future profits goes down.Two, Amazon is the king of the growth stocks. This is a company which consistently fires off 20%-plus revenue growth rates on anemic margins, under the promise that one day, the company will dominate its addressable markets, ease its growth spend, and expand margins on a huge revenue base. As such, this company is all about deriving its value from future profits. Given the company's huge revenue base, those future profits could one day be very, very big. Thus, we live in a low rate world that is perfect for Amazon stock to succeed.All in all, it should be no surprise that AMZN stock has turned into a hedge fund favorite. This is the king of the growth stocks, in an era where growth stocks rule the land.The reality is that so long as rates remain depressed, growth stocks should continue to out-perform, and AMZN stock will continue to grind higher. Facebook (FB)Source: Ink Drop / Shutterstock.com The fourth most owned stock among hedge funds is social media giant Facebook (NADSAQ:FB), with an aggregate second quarter 13-F holding value of $345 billion.Facebook being a hedge fund favorite likely has to do with the fact that Facebook is the ideal GARP, or growth-at-a-reasonable-price, stock. Consider this: Facebook has largely been for its entire history as a public company a 20%-plus revenue growth company. It remains so today, and projects to remain in 20%-plus revenue growth territory for the next few years.At the same time, operating margins used to be at 50%. Sure, they have come down dramatically since the Cambridge Analytica scandal forced the company to spend more on data security. But, margins are bottoming in the mid-30% range, and should move higher going forward.Thus, this is a 20%-plus revenue growth company with upside margin drivers. That combination implies 25%-plus profit growth potential here. FB stock trades at just 23-times forward earnings for that 25%-plus profit growth potential. That's a bargain which hedge funds clearly love. * 8 Precious Metals Stocks to Mine For Even further, Facebook's 25%-plus profit growth potential is supported by the fact that 2.7 billion globally use one of the company's four apps every single month, and that the 2.7 billion number has never done anything besides go up. In other words, it's a very well-supported 25%-plus profit growth company, trading at a discounted valuation. That's a recipe for big share price gains. Visa (V)Source: Shutterstock The fifth most owned stock among hedge funds is global payments giant Visa (NYSE:V), with an aggregate second quarter 13-F holding value of $275 billion.Hedge funds love Visa for six very simple reasons. One, Visa operates in the secular growth card payments space. In 2018, payment cards generated 368.92 billion purchase transactions for goods and services, up nearly 25% year-over-year from 2017. Two, Visa dominates this 25% growth space, accounting for nearly 45% of those 369 billion transactions in 2018. Three, Visa's dominance in the secular growth card payments space has consistently powered high single-digit to double-digit volume, transaction, and revenue growth over the past few years.Four, margins are stable and big. Five, healthy revenue growth plus stable and big margins has powered and continues to power robust profit growth. Six, for that robust profit growth, Visa stock trades at just 33-times forward earnings -- which, while not cheap, is certainly reasonable for a company that is as dominant and has as much visibility and growth potential as Visa.As such, it makes sense that hedge funds love Visa stock. This company has all the attributes of a long term winning investments. Those attributes aren't going anywhere anytime soon. Thus, Visa stock will continue to look and act like a long term winner. JP Morgan (JPM)Source: Bjorn Bakstad / Shutterstock.com The sixth most owned stock among hedge funds is banking giant JP Morgan (NYSE:JPM), with an aggregate second quarter 13-F holding value of $255 billion.The first five stocks on this list were arguably all technology companies. But, hedge funds can't exclusively love technology stocks -- they, like every other investor, need to diversify their exposure to the market. One way to do that? Buy a bank stock for financial sector exposure. When buying bank stocks, hedge funds have most often opted for JP Morgan.Why? A few reasons. For starter's, JP Morgan is the largest bank in the U.S., so it's an obvious choice when seeking financial sector exposure. Also, JP Morgan has consistently operated at a higher clip than its peers over the past several years. Over the past three years, JPM stock is up more than 60%, versus a 35% gain for the Financial Select Sector SPDR ETF (NYSEARCA:XLF). Even further, JPM has been exceptionally innovative on the technology front, doing things like partnering with Amazon on a credit card.Big picture, hedge funds need bank exposure, too, and when seeking that bank exposure, they have most often bought JPM stock because JPM is bigger, better, and innovating faster than its peers. * 7 Low-Risk Mutual Funds to Buy Now Does that mean JPM stock will continue to move higher? Probably not. So long as the yield curve remains inverted and "lower for longer" remains the theme in the yields world, JPM stock will struggle to move higher. Those conditions simply are not favorable for bank stocks. Alphabet (GOOGL)Source: rvlsoft / Shutterstock.com The seventh most owned stock among hedge funds is digital ad and cloud giant Alphabet (NADSAQ:GOOGL, NASDAQ:GOOG), with an aggregate second quarter 13-F holding value of $250 billion.To be fair, Whale Wisdom separates GOOG and GOOGL into two different entries, each of which had an aggregate second quarter 13-F holding value of $250 billion. Thus, the total holding value in all of Alphabet stock (GOOG and GOOGL) is about $500 billion, which would peg it as the fourth -- not seventh -- most owned stock among hedge funds.It makes sense that Alphabet would be so high on hedge funds' buy list. This is a company which has built the backbone of the internet with Google Search. Everyone and their best friend in the world uses that backbone. Alphabet has leveraged the utility of Google Search to develop a broad ecosystem of widely used software services (Gmail, YouTube, Google Docs, etc), and has monetized that ecosystem with ads, ads, and more ads.This strategy has worked. Now, Alphabet is the unchallenged titan in the global digital ad industry. That industry is growing at a 20%-plus pace. On top of that, Alphabet has also created a leading cloud infrastructure services business that operates in the 20%-plus growth cloud sector, is building out an ecosystem of consumer technology hardware products that are rapidly gaining, and has turned into the clear leader in the self-driving space with its Waymo unit.In other words, there are multiple growth drivers here, all of which have the potential to produce huge profits at scale. As such, Alphabet remains a big growth company. For all that growth, GOOG stock trades at just 22-times forward earnings.That's a combination that has powered big gains in GOOG stock over the past several years. It should continue to do for the next several years, too.As of this writing, Luke Lango was long AMZN, FB, and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post The 7 Stocks Hedge Funds Are Buying Big appeared first on InvestorPlace.
U.S. stock futures are trading higher this morning in what looks to be a quiet open for the market. Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.17% and S&P 500 futures are higher by 0.13%. Nasdaq-100 futures have added 0.17%.Source: Shutterstock In the options pits, call volume saw a modest uptick, helping to drive overall volume above average levels. Specifically, about 21.7 million calls and 17.9 million puts changed hands on the session.At the CBOE, the single-session equity put/call volume ratio rose to 0.65 -- a one-week high, and the dead center of its 2019 range. The 10-day moving average held its ground at 0.65.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions traders swarmed in Ford (NYSE:F),Visa (NYSE:V) and Roku (NASDAQ:ROKU) among others. Below we'll explore the catalysts and investigate their price action. Ford Motors (F)Volatility seized Ford shares yesterday after the automaker saw its credit downgraded to junk by Moody's. The ratings agency believes Ford sits in a poor financial position for its multi-billion dollar restructuring. Traders viewed the stock's large down gap as a buying opportunity, however.Initially, the company saw its shares open down 5%, but bulls swarmed to pare the losses to just 1.26% by day's end. Trading volumes surged to over 70 million shares for the session, marking the highest volume day since late-July. The price trend of Ford stock leaves much to be desired. It rests below its 50-day moving average but above the 20-day and 200-day. The mixed messages suggests neutrality more than anything. * 10 Healthcare Stocks to Buy Despite the Headlines While the trend gives traders little to latch on to, the beefy 6.37% dividend is likely sufficient to keep income seekers targeting the stock for the foreseeable future.On the options trading front, calls slightly outpaced puts on the day. Activity swelled to 335% of the average daily volume, with 145,384 total contracts traded. The increased demand drove implied volatility up to 34%, placing it at the 24th percentile of its one-year range. Premiums are now pricing in daily moves of 20 cents or 2.1%. Visa (V)Credit card stocks have not fared well over the past two sessions. Visa has fallen almost 6% from Monday's intraday high on above-average volume. Yesterday's whack pushed V stock back below its 50-day moving average. Normally that kind of breach would question a stock's uptrend, but Visa has seen multiple probes below the 50-day during its trend and few have actually mattered.Bottom line: this is probably a dip worth buying.On the options trading front, speculators favored calls throughout the session. Total activity jumped to 220% of the average daily volume, with 114,740 contracts traded. Calls claimed 53% of the take.Implied volatility cruised higher to 23% and now sits at the 27th percentile of its one-year range. Premiums are baking in daily moves of $2.57 or 1.5% so set your expectations accordingly. Roku (ROKU)Roku stock is finally receiving its comeuppance. Monday's wicked bearish engulfing candle marked a short-term top and yesterday's epic plunge confirmed the easy money in its upswing is over. ROKU stock has fallen 18.4% over the past two days.The action reminds me of the old trading adage, "bulls make money, bears make money, pigs get slaughtered." Roku's ascent had long since left the stratosphere and was well on its way to the moon when profit-taking and the inevitable pullback commenced. And, like so many gravity-defying rallies before it, Roku learned that gravity always wins in the end. * 7 Upcoming IPOs for September On a positive note, because ROKU had risen so far off of support and its major moving averages, this pullback hasn't broken any critical support levels. With its overall trend still pointing higher, it might just need a reset or time of rest before eventually moving higher.On the options trading front activity pushed to 218% of the average daily volume, with 309,379 total contracts traded. Calls barely inched out puts driving 51% of the session's sum.Implied volatility rallied to 66%, placing it at the 32nd percentile of its one-year range. Selling bull puts is the way to go if you're in the mood for buying the dip.As of this writing, Tyler Craig held bullish options positions in Roku. 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 * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Wednesday's Vital Data: Ford, Visa and Roku appeared first on InvestorPlace.
Despite a sharp pullback over the past two trading day, Visa (NYSE:V) stock remains higher by more than 30% year-to-date. While in the bigger picture V stock is certainly nearing overbought readings, in the near to intermediate term, the stock is trending higher. And, at the bottom end of the trading range here, the stock is ripe for a bounce trade.Source: Shutterstock Many disagreements between market participants around any given stock's appreciation potential could immediately be put to rest if they would disclose what time frame their views are in. In the world of charts and technical analysis, successful traders know that a near-term view on a stock has nearly nothing to do with an intermediate-term or longer-term chart.In other words, while we always want to gain perspective on any given trade setup through the lens of different time frames, a stock at any given point is usually not a "buy" or a "sell" in all time frames simultaneously.InvestorPlace - Stock Market News, Stock Advice & Trading Tips V Stock ChartsTo wit, looking at the multi-year chart of Visa stock we see that over time it has continuously steepened its slope. Year-to-date the stock has also begun to notably narrow its trading range while leaving most momentum oscillators (bottom of chart) in serious overbought readings. While this is concerning in the longer-term, and it could thus lead to a serious mean-reversion move lower over time, in the near term, the trend in Visa stock continues. * 10 Healthcare Stocks to Buy Despite the Headlines On the daily chart we see that V stock, for the most part thus far in 2019, has pushed higher in a well-defined range as marked by the two purple parallels. The bearish reversal over the past two trading days, which measures nearly -5.50% so far, has pulled the stock down to the lower end of the trading range. Furthermore, this lower boundary also roughly coincides with the blue 100-day simple moving average as further potential solidification of support.While I am one to respect bearish reversals such as the ones we witnessed in V stock so far this week, I am also wanting to respect the year-to-date up-trend.My favorite way to look for entry points to buy V stock at this juncture is using a specific candlestick pattern. Join me on Wednesday Sept. 11 for a special webinar for InvestorPlace readers where I will teach this high-probability candlestick pattern.Right now, active investors and traders could look to buy Visa stock around the $175 area, using a first upside target at $185 and a stop loss at $171.Join Serge's special webinar to InvestorPlace readers where he will teach his highest probability candlestick pattern for rapid bullish and bearish reversals. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Trade of the Day: The Trend in Visa Stock Is Worth a Closer Look appeared first on InvestorPlace.
DOW UPDATE Behind losses for shares of Visa and McDonald's, the Dow Jones Industrial Average is falling Tuesday afternoon. Shares of Visa (V) and McDonald's (MCD) are contributing to the index's intraday decline, as the Dow (DJIA) was most recently trading 55 points lower (-0.
Shares of Visa Inc. sank 3.6% in active afternoon trading, enough to pace the Dow Jones Industrial Average's decliners, as the credit card and payments company's stock extended its pullback from Friday's record close. Trading volume of 9.5 million shares was already above the full-day average of about 6.7 million shares. On Monday, the stock had slumped 2.3% to be the Dow's third-biggest decliner. It has now shed 5.7% since its $185.74 record close on Friday. Some Wall Street analysts have said that stock market is undergoing a "sector rotation," as investors rotate out of big winners and into the biggest underperformers ahead of year end. Nomura cross-asset analyst Charlie McElligott called Monday's action a "momentum massacre," as investors rotated out of momentum stocks, or those that have run up quickly to historically high valuations, and into value, or stocks trading at lower valuations. Prior to this week's selloff, Visa's stock had soared 41% year to date. Meanwhile, shares of Walgreens Boots Alliance Inc. had tumbled 23% year to date through Friday, but has soared 8.1% this week.
Facebook (NASDAQ:FB) hit a home run when the company announced its dating feature in the U.S. markets. Match Group (NASDAQ:MTCH) will no longer enjoy the absence of competition in the online dating market. Facebook has a huge user base and now has the chance to leverage Instagram alongside Facebook and the Facebook Dating app.Facebook will help its billions of users find a match based on common interests in events, groups, and hobbies. It will even integrate Instagram so that users may include such posts on their Facebook dating profile. The "Secret Crush" lists allow users to add both their Instagram followers and their friends. By the end of the year, users may add Instagram Stories. Dating Faces Safety ConcernsAfter the data leak, users might express skepticism over Facebook Dating safety. But users must opt in to this new feature. The Dating profile is also separate from a user's main profile. The fundamental difference between Facebook and this Dating feature is that users may choose to get matches with friends, friends of friends, and people not in the friend circle.InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestors recognized the threat Facebook has on the online dating market. Last week, Match stock fell ~5% to $81.47. The chart watchers saw a "double top" at around $90 on the charts. Government Scrutiny IntensifiesOn Sept. 6, New York State Attorney General Letitia James said she would lead an investigation against Facebook for antitrust issues. "Even the largest social media platform in the world must follow the law and respect consumers," she said. "I am proud to be leading a bipartisan coalition of attorneys general in investigating whether Facebook has stifled competition and put users at risk." * 7 Deeply Discounted Energy Stocks to Buy The bad news for investors is that Facebook may have to settle without admitting guilt. The government gets paid but the end-users ultimately pay for the damages.Recall that on July 24 Facebook agreed to a settlement with the Federal Trade Commission. It will pay a record $5 billion fine over its privacy policies. This amount represents 9% of its 2018 revenue. Still, the company generated revenue of $16.9 billion in the second quarter alone. Much of its revenue is from advertising. So long as add spend from U.S. and Canada grows, Facebook can afford to settle with the government. EU Investigates FacebookMeanwhile, EU antitrust regulators are scrutinizing Facebook's planned Libra currency launch. The EU is worried that the cryptocurrency may shut out rivals and restrict competition through the use of information and consumer data. Sadly, Facebook did not even launch the currency, so the investigation may prove premature. Besides, there are many other well-established payment systems. Visa (NYSE:V), MasterCard (NYSE:MA), and PayPal (NASDAQ:PYPL) all offer some form of electronic payment options.The EU's pre-emptive strike against Facebook is unwise. It may deter the social networking giant from entering the market. This would pave the way for a China-based firm to come in instead. Conversely, the U.S. banks and credit card companies may get a head start if the EU delays' Facebook's entry in the cryptocurrency market. * 7 Stocks to Buy In a Flat Market Valuation Here and NowInvestors who forecast a ~20% CAGR in a 5-year DCF growth exit model will arrive at a fair value of $196-$273 for Facebook stock. At a 9.5% discount rate, the implied fair value is $228. Its intrinsic value based on future cash flow is even more bullish. Per Simplywall.St, FB stock is more than 20% discounted from its future cash flow and has plenty of upside for shareholders ahead.On Wall Street, Facebook stock has a $234 target average among 36 analysts tracked by TipRanks.Facebook continues to attract healthy advertising spending. It faces no immediate competition from other social networking sites, either. Investors will do well holding or accumulating FB stock at current levels.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Facebook Dating Yet Another Positive Catalyst for FB Stock appeared first on InvestorPlace.
Shares of Visa Inc. swung into negative territory Monday, to pull back sharply from a record high, and to be the biggest drag on the Dow Jones Industrial Average . The stock was up as much as 0.7% at an intraday high of $187.05, which would have put it on track for a third-straight record close, but pulled a U-turn to be down $5.94, or 3.2% at $179.80 in afternoon trading. The price decline shaves about 40 points off the Dow's price, which was up 16 points. Shares of some of Visa's payments peers also fell, with shares of Mastercard Inc. down 3.5%, Square Inc. shedding 3.2% and PayPal Holdings Inc. losing 4.5%. Elsewhere, American Express Co.'s stock slipped 0.4% and Fiserv Inc. shares shed 2.2%.