|Bid||122.28 x 800|
|Ask||123.00 x 1000|
|Day's Range||121.60 - 126.07|
|52 Week Range||76.60 - 173.72|
|Beta (3Y Monthly)||2.48|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 30, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||157.00|
The remark came less than three months after hundreds of employees walked out in Copley Square to protest the company's (NYSE: W) sale of furniture to operators of migrant detention camps along the U.S. southern border.
Wayfair (NYSE:W), one of the world’s largest online destinations for the home, today announced the appointment of Anke Schäferkordt to its board of directors. Schäferkordt brings extensive experience in media and international markets to the Wayfair board drawing upon her long tenure as a visionary leader and chief executive for the Germany-based media powerhouse RTL Television and Media Group RTL.
Japan's SoftBank Group Corp has led a $110 million financing round for Brazilian online home goods platform MadeiraMadeira, according to a statement on Tuesday. SoftBank's fresh capital for MadeiraMadeira comes from its $5 billion Latin America fund, launched in March, which has been directed to sectors ranging from banking and real estate to home goods and delivery services. Investment firm Light Street Capital is also participating in the funding round, alongside SoftBank and Flybridge Capital, which is already an investor in MadeiraMadeira.
(Bloomberg) -- After Lee Bird witnessed At Home Group Inc. lose half its market value in one day this June, the chief executive officer decided to reconsider everything.“This past 90 days has been a revisit of our whole business,” Bird said in an interview. “We obviously lost the faith of our investors.”In response, the home-goods retailer pulled back on its ambitious store-opening plans and revamped marketing to tout what it claims are the lowest prices in the industry. And after staying out of the e-commerce fray because the cost of implementation and shipping could hamper profit, the company now plans a full online offering by 2022.The efforts come none too soon, as a shakeout in retail has left legacy chains struggling to survive the arrival of digital-first competitors like Amazon.com Inc. and Wayfair Inc. Consumers at all income levels are also more discount-oriented, using the internet to seek out deals. At Home appeared immune to these woes until June 6 when weak sales and increased costs from President Trump’s tariffs on Chinese goods led to a cut in its earnings forecast that hammered the stock.“A long list of little things have gone against the company,” said Brad Thomas, an analyst at KeyBanc Capital Markets. “A few have been company specific, but it’s more about housing slowing down about a year ago.”At Home also had little room for error, with its valuation soaring after revenue gained an average 23% annually over the past three years. But investors bolted after the company’s same-store sales fell the past two quarters -- the first declines since going public three years ago. The company’s earnings have also missed analysts’ projections twice in the past three quarters.“It’s hard, but I get paid a lot of money so no one is going to tear up for me,” said Bird, who bought $500,000 worth of shares on Monday.The stock had declined 54% this year through Tuesday’s close. Just a year ago, the retailer sold additional stock to the public for $33.20 a share. The shares climbed as much as 7% to $9.16 on Wednesday, their fourth straight daily gain. The increase in value-driven shoppers should put At Home in a solid position. Much like Costco Wholesale Corp., the chain has a low-cost operating model -- it opens stores cheaply in locations vacated by the likes of Sears and about 70% of its inventory is private label or exclusive.Pricing ModelThat helps the retailer keep prices low, but not enough shoppers were getting the message because of “all the noise” on discounts and deals coming from competitors, Bird said. At Home uses a pricing model of everyday low prices -- a strategy popularized by Walmart Inc. that eschews promotions and instead tries to convince shoppers of constant value. Meanwhile, most retailers employ a model of high introductory prices and then discounts.“The average American is not aware that At Home is a low-price leader,” KeyBanc’s Thomas said.To help remedy this, At Home for the first time is running regular shopping events every two weeks, often tied to seasonal events. There’s currently a focus on fall decor on its website and in stores. A year ago, the chain would have been highlighting a few specific deals, but not a whole category. Early results are that it’s lifted sales, Bird said.Besides opening stores, revenue gains will also come from its first push online, he said. In the fourth quarter, the company will test letting customers buy items online and picking them up at stores. If all goes well, more locations will be added next year, with the goal of shipping purchases to customer’s homes from locations by 2022, he said.Despite the turmoil, the company still sees growing to 600 stores from 200 in the U.S. But it will get there at a slower pace, expanding 10% a year, down from a current rate of 17%. That means it would take more than a decade to reach that goal.“We know we have a huge white space in front of us,” Bird said. “I feel good about the adjustments we’ve made.”(Updates with share trading Wednesday in eighth paragraph. A previous version was corrected to show about 70% of inventory is private label or exclusive.)To contact the reporter on this story: Matt Townsend in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa Wolfson, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
After almost 20 years as CEO of Overstock (NASDAQ:OSTK), Patrick Byrne resigned from the company and board August 22. The highly controversial leader's resignation caused OSTK stock to briefly jump by more than 15%. However, shares dropped to $15 by the beginning of September.Source: Shutterstock As I write this, Overstock stock has recovered most of those losses trading around $20. Still, it's well below its January 2018 all-time high of $89.80.My InvestorPlace colleague, Dana Blankenhorn, recently highlighted logistics consultant Brittain Ladd's belief that Byrne should have been fired years ago. It's hard to argue with that sentiment. Byrne was not the man or woman you would want running the local McDonald's (NYSE:MCD), let alone a company with more than 2,000 employees and revenues of more than $1.8 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPerhaps it was Byrne's family's relationship with Warren Buffett that kept the board at bay all these years. Or maybe it was Byrne's significant ownership stake in the company. Whatever the case, Byrne is gone from the company. Currently, Jonathan E. Johnson III, the head of its Medici Ventures blockchain subsidiary, is running Overstock on an interim basis. * 10 Stocks to Sell in Market-Cursed September Anybody but Byrne would be a better CEO at this point. As my colleague stated about OSTK in August, it's hard to see any future for the company. Or for that matter, Overstock stock.That said, I'm sure some would choose to speculate on OSTK stock.Is $15 the buy zone? Or should you wait for single digits? It Isn't Worth $15In March, I suggested that speculative investors might be interested in buying OSTK stock below $15. That's because Byrne might sell its hugely unprofitable retail business to focus on its blockchain investments.Of course, we know that never happened under Byrne's watch. But as recently as the end of June, the former CEO is on record suggesting offers were possible."Two very attractive acquirers that I would have put high up on my list have shown up," Byrne said June 25 at the Fortune Brainstorm Finance conference in Montauk, New York. "People have seen that our earnings have turned."How much could Overstock get for a business that saw revenues decrease by 23% in the second quarter while reducing its loss by 62%, from $64.9 million in the second-quarter 2018 to $28.2 million this past quarter?Wayfair's (NYSE:W) gross profit margin in Q2 was 23.9%. It trades at 1.4-times sales. In the latest quarter, Overstock's retail business had a retail gross margin of 19.7%. OSTK trades at 0.4-times sales.Let's assume that its retail business could go for halfway between Wayfair's multiple and its own. That would mean a multiple of 0.9 or $1.47 billion based on trailing 12-month revenue of $1.63 billion.This assumes that the company could find someone to buy its retail operations. Secondly, GARP Research analyst Bill Baker stated in February that he thought Overstock could fetch $100 million for its retail business, a far cry from $1.5 billion. OSTK Stock Below $10 Might Be A BuyLet's assume Overstock could get $100 million for its retail business. At a current market capitalization of $721 million, this suggests the blockchain businesses are worth $621 million or $17.64 a share.Medici and tZero generated tremendous losses in the second quarter from just $6.2 million in revenue. This means that the blockchain assets would have to be worth significantly more than what the balance sheet says they are or as a multiple of sales or earnings.Frankly, I don't think there's a hope in Hades that its blockchain assets are worth anywhere near $18 a share.However, below $10, a speculator might bet on those assets adding up to more than $350 million on a combined basis.With or without Patrick Byrne, I wouldn't go near OSTK stock unless "risk" is your middle name.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. 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 Is Overstock a Buy Below $10? appeared first on InvestorPlace.
It's been a good year for IPO stocks.The first eight months of 2019 have seen 107 IPOs priced, down about 20% from the same period last year. However, the total proceeds raised add up to $42.5 billion, 23% higher than in the first eight months of 2018.For example, SmileDirectClub, the company that provides in-home teeth straightening at a fraction of the cost, filed its preliminary prospectus Sept. 3. It expects to raise up to $1.3 billion in its IPO selling 58.5 million shares at between $19 and $22 a share, valuing the company at a jaw-dropping $3.2 billion. InvestorPlace - Stock Market News, Stock Advice & Trading TipsGenerally, it's been a seller's market, so you would think there wouldn't be any stinkers. Think again. * 7 Stocks to Buy In a Flat Market Despite a relatively healthy IPO market that's produced an average return of 33% year-to-date through Sept. 3, almost double the S&P 500, several IPOs have wet the bed. Here are what I believe are seven of the worst IPOs in 2019. The Worst IPO Stocks: The We Company (WE)Source: Mitch Hutchinson / Shutterstock.com The first of my worst IPO stocks in 2019 is The We Company, the holding company for office co-working giant WeWork, which currently has 528 locations in 111 cities across 29 countries. Its growth since opening its first location in New York City in early 2010 is mind-boggling. That's the good news. The bad news is that WeWork may never make money. "On the key question of future profitability, it is impossible to tell if WeWork's costs will continue to be double its revenues, or if the per-unit trends justify additional investment," wrote Financial Times contributor Rett Wallace Sept. 3. "Investors relying on the prospectus may have trouble telling what gets more elevated, their consciousness or their blood pressure."WeWork has yet to price its shares, but the cynicism facing this IPO suggests it will be nearly impossible for it to come out of the gate with a positive first-day return. In addition to the fact it loses money, has a nosebleed valuation and relies heavily on CEO and founder Adam Neumann, is the presence of a three-class share structure that will make it virtually impossible for institutional investors to exert any pressure on the company should it continue to lose money for an extended period. While it's not uncommon for tech companies to have a dual-class share structure in place to ensure the founder can maintain a long-term vision, a three-class share structure takes the cake. It hasn't gone public yet and already it has to be considered one of the worst IPOs of 2019. Peloton (PTON)Source: Sundry Photography / Shutterstock.com Peloton, which filed its preliminary prospectus Aug. 28, considers itself to be a technology company that happens to sell interactive fitness machines.In addition to being a technology company, it believes itself to be a media company, an interactive software company, a product design company, a social connection company, an omni-channel retail company, an apparel company and a logistics company. That's like RCI Hospitality Holdings (NASDAQ:RICK), which operates a chain of strip clubs under the name Rick's Cabaret, calling itself a tech company, because, in addition to operating nightclubs, it also operates more than a dozen websites.In a nutshell, Peloton is a company that sells fitness bikes and treadmills between $2,245 and $4.295. Also, it streams classes for these machines for a monthly subscription of $39. In fiscal 2019, it generated $719 million in revenue from the sale of fitness products and $181 million in sales from monthly subscriptions. Including $14.7 million in other revenue, fitness product sales have gone from 84% of its total revenue in fiscal 2017, to 79% in the past year with most of the gains from its monthly subscriptions.Its gross profit margin for fitness products and the monthly subscriptions are 42.9% and 42.7% respectively. However, much like Wayfair (NYSE:W), it has to spend a boatload on marketing to attract and retain customers. As a result of these acquisition costs, Peloton lost $195.6 million before tax in 2019, almost three times what it lost in 2017. * 7 Deeply Discounted Energy Stocks to Buy Just have a look at Nautilus (NYSE:NLS) to understand the risks of investing in fitness equipment. You're far better to invest in Apple (NASDAQ:AAPL) and ride its growth in wearables. Peloton is most likely going to be a dud. Luckin Coffee (LK)Source: Keitma / Shutterstock.com Luckin Coffee (NASDAQ:LK) is China's fastest-growing coffee chain in terms of the number of stores open and cups of coffee sold. It went public May 16 at $17 a share, generating a 19.9% first-day return. Since then, LK stock has gone sideways. They say that you can often pick up an IPO stock for less than its initial pricing within 12-24 months. I have no doubt Luckin is in that category. It's been terribly over-hyped. In mid-August, Luckin reported its first earnings report as a public company. Its results were much worse than expected, sending its stock down by more than 15%.How bad were its second-quarter 2019 results?Luckin was expected to lose 43 cents per share. It lost 48 cents or $49.6 million on $132.4 million in revenue. That means it loses 37 cents for every dollar in sales. In April, Starbucks (NASDAQ:SBUX) CEO Kevin Johnson called Luckin's heavy discounting "unsustainable."Furthermore, while Luckin has only been in business for two years in China, Starbucks has been operating there for the past 20 years and has almost 4,000 stores. As Starbucks plays the long game in China, it has both the experience and financial wherewithal to wait out Luckin. Luckin's IPO is an example of how alluring China is to North American investors. Eventually, that's going to come back to haunt them. Wanda Sports Group (WSG)Source: Juan Carlos Alonso Lopez / Shutterstock.com If you're a triathlete, you've probably familiar with China-based Wanda Sports Group (NASDAQ:WSG), a global sports events, media and marketing platform that owns the Ironman triathlon brand.In late July, WSG went public at $8 a share, raising $190 million by selling 23.8 million shares of its stock. Its stock lost 35.5% on its first day of trading and it's flatlined ever since. WSG is a spinoff of Dalian Wanda Group, the privately held holding company of Chinese billionaire Wang Jianlin, who also owns a controlling interest in AMC Entertainment (NYSE:AMC). Jianlin initially thought Wanda Sports could raise more than $500 million from its IPO. Unfortunately, WSG went public below its IPO target price of $9-$11. Chinese IPOs, in general, have done poorly in 2019. As of the end of July, 11 of the 18 Chinese IPOs this year were trading below their IPO price. WSG is one of those 11. * 7 Best Tech Stocks to Buy Right Now Unlike many IPOs in 2019, Wanda Sports makes money. In 2018, it earned $61.9 million in net income from $1.3 billion in revenue. That's a net margin of just 4.8%, not much better than a grocery store chain. If you are a triathlon athlete, it's probably better to invest in yourself and not the owners of the Ironman. You'll be better for it. Greenlane Holdings (GNLN)Source: Shutterstock Greenlane Holdings (NASDAQ:GNLN) is a leading distributor of vaporization products and consumption accessories in the U.S. and Canada. Its biggest claim to fame is that it distributes Juul and Pax vape pens, two of the biggest manufacturers of vaporizers in the world. That was enough to sell 6 million shares of its stock in April at $17 a share, above the high-end of its pre-IPO pricing. As a result, its stock gained 24% in its first day of trading. However, since then, it's fallen to just under $6, prompting the threat of class-action lawsuits by lawyers across the country who believe the company made several untrue statements in its IPO prospectus. In its Q2 2019 earnings report, Greenlane reported $102.9 million in revenue and a net loss of $21.0 million. On an adjusted basis, it lost $2.6 million in the first six months of the year, a significant decline from a $3.1 million gain a year earlier. On Aug. 8, Greenlane announced that it had signed a deal with Canopy Growth (NYSE:CGC) to be the exclusive distributor of the cannabis company's Storz & Bickel vaporizers.This piece of news has done nothing for Greenlane. The reality is that Greenlane's inventories are growing three times as fast as its sales, which suggests that its ties to cannabis are dubious at best. Uber (UBER)Source: NYCStock / Shutterstock.com In one of the most highly anticipated IPOs in several years, Uber (NYSE:UBER) went public in May at $45 a share, raising $8.1 billion in the process. As I write this, it is trading around $31 a share, 32% below its IPO price. Time to buy? Not by a long shot. Likely, Uber will never make money. In May, just before its IPO, I recommended that investors wait six months before buying its stock to see how it trades. Well, almost four months have passed and nothing good has happened to suggest now is the time to buy. In its first quarter as a public company, Uber reported a GAAP loss of $5.24 billion with about $3.9 billion due to share-based compensation. On a non-GAAP basis, the ride-hailing app's adjusted earnings before interest, taxes, debt and amortization (EBIDTA) loss in Q2 2019 was $656 million, 125% higher than a year earlier. Not quite as bad as $5.24 billion, but still a massive loss for a single quarter. That's especially true when you consider that Uber can do very little to ward off the competition."If I look down at my phone I've literally got six ride-hailing apps on there, and five bike-sharing apps, and drivers are the same -- they'll just go with whoever is busy or wherever they can get the peak pricing," said Aaron Shields, executive strategy director at FITCH, a retail brand consultancy. "The competitors on the market are taking advantage of switching costs -- they're dividing up a market and making it more saturated." * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Every time Uber and the rest of the ride-hailing apps does something to reduce costs, growth slows, which makes its business model a big loser. Levi Strauss (LEVI)Source: Davdeka / Shutterstock.com As of Sept. 3, Levi Strauss' (NYSE:LEVI) shares had lost 0.2% from its IPO price of $17. What makes this so egregious is that LEVI stock gained 32% in its first day of trading, which means it's lost $228 million of its market cap in the last five months. In March, before its IPO, I gave InvestorPlace readers seven reasons why they should steer clear of Levi's stock. It appears that I was right. One of my biggest concerns was the amount of debt it carried on its books. "Assuming Levi's goes out at a valuation of $5.78 billion, the company's long-term debt of $1.1 billion will be 19% of its market cap," I wrote on March 21. "That's not a massive amount by any means considering it's got more than $700 million on its balance sheet, but I can't help but wonder why it hasn't paid down its debt over the past four years."The other big concern I had about LEVI was its lack of significant growth in Asia. In the first six months of 2019, Levi's had Asian revenues of $474.4 million, 7.1% higher than a year earlier. That accounts for just 17% of its global revenue. Now, I get that it's an iconic U.S. brand, but there are plenty of American brands growing faster in Asia. I believe that the Haas family picked an ideal time to go public for a company whose best days may or may not be ahead of it. At the time of this writing Will Ashworth 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 7 of the Worst IPO Stocks in 2019 appeared first on InvestorPlace.
President Trump recently suggested that his administration is taking a closer look at legalizing cannabis at the federal level, moving beyond merely letting the states decide what's right. Such a move would be good for Canopy Growth (NYSE:CGC), CGC stock and most importantly, the president's reelection hopes in 2020. Source: Shutterstock First, before I get into the heart of the matter, let me remind readers that this isn't a political dissertation, it's an investment piece. I could care less whether Trump thinks legalizing at the federal level is a vote-getter, which it is because I'm Canadian. I have no dog in this fight, politically or philosophically. Instead, I'm interested in what this would do for the U.S. cannabis industry, on a general level, and for Canopy Growth, more specifically.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet me address both. What Federal Legalization MeansOne only needs to read the comments after an article on the subject to know that most Americans are supportive of federally legalized cannabis. "That's [Trump's comments] signalling to the rest of his Republicans that you know what, it's basically okay to have a view around cannabis. The reason he is doing it is because in the United States 95 per cent of the country believes in medical cannabis, and 66 per cent believe in adult-use or recreational cannabis," said Acreage Holdings (OTCMKTS:ACRGF) CEO Kevin Murphy recently.Just 11 states and the District of Columbia have legalized recreational pot. A total of 33 have legalized medical marijuana. That leaves 39 states where recreational cannabis is illegal and another 17 states that don't allow medical marijuana. Under the current situation, pot can't be transported across state lines because cannabis isn't legal at the federal level. This means that if you want to sell in Colorado, you've got to make it in Colorado or buy it from a grower that does. State politicians love this set-up because it means local jobs, taxes, etc. * 10 Buy-and-Hold Stocks to Own Forever However, in a country of 325 million, it's an incredibly inefficient way to operate an industry. Could you imagine if a company like Wayfair (NYSE:W) had to live by the same rules? It can't make money as it is, and it's got one of the best logistics systems in retail. Here in Canada, we used to have similar rules in the beer business. Up until 1992, if you wanted to sell beer in Ontario, it had to be made in Ontario. That meant breweries were operating in every province in the country, including Prince Edward Island, which had a population of 130,827 at the time. The Canadian government finally came to its senses and removed those trade barriers. Well, you would think someone who is opposed to government regulations and red tape as Trump is, would see the inefficiencies of a system left up to the individual states.Why should a state like California, whose population is greater than all of Canada, not be able to provide California-grown pot to people living in Rhode Island? If it is a quality product at a reasonable price, you would think "Businessman" Trump would be all over that.I can see how raising the federal minimum wage would rankle some states used to operating lower-wage economies, but failing to legalize pot at the federal level is terrible business. Were the Republicans or Democrats to push for legalizing pot at the federal level -- a process that isn't nearly as easy as it seems -- before the November 2020 election, I believe that this move would motivate a lot of younger voters to get out to cast their ballot. Economically, it would be a boon to all stakeholders. How CGC BenefitsAs you might be aware, Canopy has a tentative deal in place to buy Acreage Holdings for $3.4 billion, but only if the production and sale of cannabis become federally legal. Further, the agreement has a seven-year window before the right to buy the company expires.For this right, Acreage shareholders received an immediate $300 million ($2.55 a share) cash payment as an incentive to wait for federal legalization. In the meantime, Acreage has licenses to produce cannabis in 20 states, 87 dispensaries and 22 cultivation and processing sites. It's a going concern that will continue to grow its business in the U.S. with Canopy lending its expertise, both in terms of growing the stuff, distributing it and building a wider audience. With Bruce Linton having left the company and a CEO search underway, it's a good thing that the Republicans haven't been talking up legalization because the company's controlling shareholder, Constellation Brands (NYSE:STZ), is still ensuring Canopy's ducks are all in a row. The fact that Trump's open to discussing the idea means a CEO hire is probably going to happen sooner rather than later. In the meantime, interim CEO Mark Zekulin is more than capable of running the show. The company's Sept. 4 presentation at the Barclays 2019 Global Consumer Staples Conference stated that Canopy could reach a revenue run rate of C$1 billion in the fourth quarter with its gross margin 40% or higher.Between the second-phase of Canadian legalization (edibles, infused drinks, concentrates), increasing its Canadian distribution at the retail level, international expansion outside North America, and of course, its U.S. push, which includes Acreage, hemp-related sales, etc., the new CEO is going to have their hands full. So, maybe, finding the right person isn't going to happen overnight after all. * 7 "Boring" Stocks With Exciting Prospects What I do know is that CCG benefits greatly from federally legalized cannabis. I'm sure the lobbying is going to intensify in the months leading up to the election. The Bottom Line on CGC Stock I believe that Canopy Growth is one of the best Canadian cannabis stocks available. However, to become a global player, it needs to be a part of the U.S. marketplace. The Acreage deal makes that a reality. Federal legalization is coming, but it can't get here fast enough. At the time of this writing Will Ashworth 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 Why the Future of Canopy Growth Stock Is in the Hands of the President appeared first on InvestorPlace.
When investors are looking for fresh investment ideas, recent recommendations from Wall Street analysts can underscore compelling investment opportunities. This is where Goldman Sachs and comes in. The firm just issued recommendations on 3 stocks, highlighting each based on its strong long-term growth prospects. Each of these stocks also boasts substantial support from the Street with a “Strong Buy” analyst consensus, based on TipRanks' Stock Screener. This consensus is generated from the last three months’ worth of ratings from all other analysts. Let’s take a closer look at the firm’s picks. MasterCard Inc. (MA)Goldman Sachs’ James Schneider believes MasterCard is on track to see even more growth on top of the 48% year-to-date gain it has already achieved. Despite the fact that its $284 billion market cap falls below Visa’s (V) $401 billion, Schneider argues that MA has a lot going for it. With the company reporting on July 30 that gross dollar volume, the dollar value of transactions processed, gained 8% in its second quarter, MA appears to be well-positioned in terms of both its new and old electronic payment technologies. The cashless payments company stands to benefit from the shift towards digitized money. In July, MA announced that it’s partnering with Evolve Bank & Trust to create a frictionless payment system where employers can pay gig workers with an interest-free loan for service in almost real-time. Not to mention it also finalized its acquisition of Transfast that same month, giving MA the ability to disperse payments across bank accounts, mobile wallets and cards through a single API, and agreed to buy payments platform Nets for €2.85 billion on August 6 to add capacity for growth in the European market. “We are driving growth in our core products with key wins around the globe, and our recent acquisitions, such as Transfast, and new partnerships, like P27 in the Nordics, will help us address our customers’ evolving payments needs, particularly in the areas of real-time account-to-account and cross-border payments,” CEO Ajay Banga stated. All of these factors played into Schneider’s recommendation. As a result, the five-star analyst reiterated his Buy rating on September 3. The rest of the Street is on the same page. With 15 Buy ratings vs 1 Hold received in the last three months, the consensus among analysts is that MA is a ‘Strong Buy’. Its $310 average price target suggests 11% upside potential. Wayfair Inc. (W)The online furniture retailer is another Goldman Sachs analyst Heath Terry’s pick as most poised to outperform its peers. The five-star analyst describes the company as being “a leader in the online movement of household goods as it used its technology and scale to build a destination for furniture and home goods shopping over the past 16 years”. While Wayfair reported on August 1 that its Q2 net loss widened from the year-ago quarter, it should be noted that its active user base for its direct retail business now totals 17.8 million, more than 39% higher than it was a year ago. It also doesn’t hurt that orders delivered increased 42% year-over-year and the average order value was slightly higher than in the year-ago period.Management points out that part of the loss was due to its heavy investment in expanding its reach internationally. While Terry notes that the $300 billion U.S. home category is underpenetrated as it only makes up about 13% of sales online because of higher price points, risk of damage and potentially expensive delivery, he argues that the company is already on the right track thanks to its merchandising, breadth and depth of supply. Based on all of the above factors, the analyst initiated coverage with a Buy rating and set a $145 price target. This price target demonstrates Terry’s confidence that shares can surge 23% in the next twelve months. Wall Street remains firmly bullish on Wayfair. The stock boasts a ‘Strong Buy’ analyst consensus and a $159 average price target, suggesting 34% upside potential. Myovant Sciences (MYOV)Myovant is a biotech company that develops treatments for conditions affecting women and prostate cancer, with clinical programs for uterine fibroids (noncancerous growths of the uterus), prostate cancer and endometriosis. Endometriosis affects about one in ten women in their reproductive years, or approximately 176 million women globally, and is known for causing debilitating pain particularly during menstruation as well as infertility. The company is hoping to give women a more effective treatment option with its drug, Relugolix. MYOV just completed patient recruitment for SPIRIT 2, the first of two Phase III replicate trials evaluating Relugolix combination therapy in patients with pain caused by endometriosis. If the drug is approved, it will be the second gonadotropin releasing hormone (GnRH) antagonist on the market for endometriosis.Adding to the good news, the company announced on July 23 that its second Phase III trial of once-daily Relugolix combination therapy demonstrated positive results when used to treat uterine fibroids. The drug was generally well-tolerated and successful in reducing pain, with these results enabling MYOV to submit a new drug application (NDA) to the FDA by the end of this year.While there was some concern regarding Relugolix's placebo-adjusted response rate, Goldman Sachs’ Paul Choi tells investors that an overreaction over data has provided a solid entry-point. He adds, “The market has excessively discounted Myovant's prospects as our key opinion leader checks indicate no concerns about the response rate data and enthusiasm for another treatment option for endometriosis and uterine fibroid.” As a result, the analyst initiated coverage with a Buy and set a $20 price target on August 28. While noting that biotech stocks carry risk based on the fact that one negative catalyst such as poor study results can cause shares to sink, Choi thinks MYOV has the potential to gain 144% over the next twelve months.With 3 Buy ratings and no Holds or Sells being assigned in the last three months, MYOV has a ‘Strong Buy’ Street consensus. Its average price target of $23 indicates 181% upside potential. Find analysts’ favorite stocks with the Top Analysts’ Stocks tool
Analysts and economists have been scrambling to revise their earnings outlooks for U.S. companies after President Donald Trump’s latest round of trade war tariffs went into effect Sept. 1. Bank of America Merrill Lynch analyst Justin Post said in a Tuesday note that a pair of e-commerce stocks may take an even larger earnings hit. Post estimates the new 15% tariffs on an additional $112 billion in Chinese imports will have a disproportionately large impact on e-commerce companies that sell a large amount of these Chinese products on their platforms.
Michael A. Kumin, a managing partner of private-equity firm Great Hill Partners, paid $3.2 million for shares of the home-decor firm last month. It’s the largest insider purchase of Wayfair stock on the open market.
With consumers increasingly relying on more convenient ways to make purchases, eCommerce companies are looking to capitalize on this expanding market. The Commerce Department reported in February that for the first time in history, monthly online U.S. retail sales surpassed general merchandise sales to reach $59.8 billion. With this figure only expected to grow, Wall Street is taking notice.Stifel Nicolaus’ Scott Devitt believes the pattern of shoppers switching to online versus traditional in-store purchases will persist, upgrading both Etsy (ETSY) and Wayfair (W) to a Buy on August 22. He tells investors that the dip in each company’s shares represents a compelling opportunity as both stand to benefit from the eCommerce boom. Let’s take a closer look at what the five-star analyst had to say about these two stocks. Etsy Inc. (ETSY) The handmade and vintage merchandise retailer has had a rough going since its Q2 earnings release, with shares falling 23% in the last month. That being said, Devitt upgraded the stock based on the attractive entry point created by the drop, deeming Etsy an “emerging leader in third-party e-commerce”. On August 1, Etsy reported that while it had beaten the consensus estimate for earnings, it fell short in terms of revenue. However, management did raise its full year guidance citing new initiatives that are expected to drive upside for the company. As part of these efforts, Etsy signed a definitive agreement on July 21 to acquire Reverb, a marketplace for new, used and vintage music equipment for $275 million in cash. The company also started giving vendors tools and support to help them guarantee free shipping on orders of $35 or more to U.S. buyers in July. Not to mention Etsy plans to launch a simplified ad platform for sellers beginning in the third quarter of 2019. Promoted listings, on-site ad platform and Google Shopping will be streamlined into a single ad platform called Etsy Ads where sellers can set a budget and allow Etsy to optimize between channels, targeting a return on spending.Devitt tells investors that all of these positive developments make up for a somewhat weaker quarter. “While we had been surprised at the strength and speed of the turnaround, we have been fans of the strategy throughout and feel now is a good time to put the appropriate rating on the business for the extensive improvements that have been built into the model to deliver over the long term,” he explained. As a result, the analyst upgraded the rating from a Hold to a Buy and kept a $70 price target, implying 31% upside.All in all, the Street takes a slightly more cautious stance on Etsy. It has a ‘Moderate Buy’ analyst consensus and a $75 average price target, suggesting 40% upside potential. Wayfair Inc. (W)The online furniture retailer took a similar tumble following its earnings release, with shares dropping 19% in the last month. Again, Devitt tells investors not to fear as this stock’s strong long-term growth narrative remains unchanged. The company posted a second quarter earnings and revenue beat on August 1, but disappointed investors with its third quarter guidance that fell below analysts’ estimates. Devitt notes that this was caused by an investment in its international operations that offset acceleration in its U.S. business.He instead based his upgrade on W’s steps in the right direction that are expected to fuel growth. Wayfair remains on track to add almost 5 million square feet of space to its logistics footprint this year, expanding upon the existing 12 million square feet. Adding to the good news, its CastleGate warehouse penetration in the U.S. continues to rise. At the current pace, cash flowing through CastleGate for both large and small parcel are doubling year-over-year. All of this lends itself to Devitt’s conclusion that Wayfair stock is undervalued. “The drop in the company's stock price since the release of its second-quarter results has created a compelling entry point,” he explained. He added that W now trades at a 25% discount to the company's e-commerce competitors. As a result, Devitt upgraded the stock from a Hold to a Buy and maintained the $150 price target. The analyst believes shares could surge 39% over the next twelve months. In general, Wall Street approves of this eCommerce stock. 7 Buy ratings vs 3 Holds received over the last three months add up to a ‘Moderate Buy’ analyst consensus. Wayfair’s $160 average price target suggests 48% upside potential. Discover the Street's best-rated stocks with the Top Analysts’ Stocks tool
[Editor's note: "The 7 Best Long-Term Stocks to Buy for 2019 and Beyond" was previously published in July 2019. It has since been updated to include the most relevant information available.]If you're looking for consistent market success, the best thing you can do is to expand your time horizon. Chasing flavors of the week could profit you in the immediate frame, but too often, an unexpected event can derail your position. However, by picking ideas from the best long-term stocks, you improve your odds significantly.Primarily, a financially sound company's trading dynamics will replicate the law of averages. Nearer-term pressures and unfavorable news events can negatively impact the organization, but in the longer run, the fundamentals take over.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, time evens out the volatility. That's not the case for swing trades, where outliers can have a disproportionate effect.Moreover, genuine long-term stocks to buy usually have bullish arguments that extend beyond technical factors. A proven track record is a typically common attribute, as are other tailwinds, such as strong financial performances, or a robust, underlying industry.To better maximize these "patient" investments, investors should focus not just on corporate-growth prospects, but sector growth as well. In many cases, a rising tide lifts all boats, irrespective of individual performance. * 7 Retail Stocks to Buy on the Dip To that end, I present my top seven stocks to buy for the long haul: Wayfair (W)Some trends are significant but difficult to quantify. Others are patently obvious. A prime example is shifting consumer behavior toward e-commerce outlets.Source: Shutterstock Put simply, online sales represent an increasing share of total retail sales. This undeniable fact has always led me to recommend a longer-term position in Amazon (NASDAQ:AMZN).I'm not backing away from that opinion. Amazon attracts all customers, but notably those in the middle-income bracket. It's also pushing into extremely lucrative markets like smart speakers.Its role in the economies of tomorrow is assured. But I don't want to keep talking about the same company again . That's why I'm putting Wayfair (NYSE:W) front and center on my long-term stocks to buy list.Wayfair is an online retailer specializing in home goods such as furniture and decorative products. And business has been good, with W generating nearly 45% direct-retail sales growth last year.The problem? Its net income is negative. Coincidentally, that's always been Amazon's issue until a few years ago. So long as shareholders continue to see top-line growth, they appear willing to overlook the bottom line.Over time, Wayfair could end up becoming a smaller version of Amazon, which isn't a bad gig. FedEx (FDX)Being as diplomatic as possible, the Trump administration has been a mixed blessing for the economy. On one hand, Trump has reinvigorated domestic industries, with calls about putting American interests first. But on the other hand, he hasn't produced a great image abroad in the non-Russian part of the world.A sharp consequence of Trump's foreign policy is the ongoing tariff wars with China. With the Asian economic giant being an exporting power, international couriers like FedEx (NYSE:FDX) felt the heat. As an example, FedEx delivered great results for its fourth-quarter fiscal 2018 earnings report. Unfortunately, investors panicked on FDX stock due to shipment-slowdown fears.That's a shame because I strongly view FedEx as one of the best long-term stocks to buy. Outside of the tariff issue, the courier, along with rival United Parcel Service (NYSE:UPS), benefits from the aforementioned e-commerce trend. Consumers are no longer shopping in brick-and-mortar stores in the same volume like prior generations. The positive tailwind for both couriers is readily apparent. * 7 Retail Stocks to Buy on the Dip Critics may counter that Amazon is experimenting on their own delivery service. I've said it before, and I'll say it again: the impact is likely overstated. The economies of scale involved in trying to take down a FedEx or UPS is enormous. Besides, the e-commerce sector will balloon to a size big enough for all current competitors. Welltower (WELL)You hardly think about this when you're younger. But as the earth continues to revolve around the sun, you get closer to the inevitability of old age. After enough complete revolutions, you're at a point where you may no longer physically take care of yourself.Source: Shutterstock Handling the challenges in senior-living solutions is Welltower (NYSE:WELL). Welltower is a real-estate investment trust that focuses largely on senior-housing and assisted-living facilities. The company also specializes in memory-care communities, post-acute care facilities and medical-office properties.The need for Welltower's primary business is obvious. Currently, Baby Boomers represent the largest living generation in the U.S. A significant number of this demographic are already retirement age, and soon, the majority will enter their golden years. That substantially boosts prospects for WELL stock, especially if you have a long-term strategy.Moreover, I believe Welltower's structure as a REIT is an advantage in this sector. Direct plays like Brookdale Senior Living (NYSE:BKD) appear enticing at first. However, look deeper at the financials, and you'll likely discover a flawed opportunity. Welltower better absorbs sector risk by spreading it across multiple properties. Rosetta Stone (RST)I dare say that most Americans take for granted that English is the uncontested international language. Everything that we consume has an English translation. Whenever we go to a foreign country, we can expect at least someone to speak some English.Source: Wesley Fryer via FlickrWe really don't think twice about this dynamic because of historical imperialism. Western values and culture are exported everywhere thanks to ubiquitous brands like Coca-Cola (NYSE:KO) and McDonald's (NYSE:MCD). But how long is this dynamic going to last? Even in our own nation, we're experiencing profound demographic shifts.Internationally, these changes are even more dramatic. Already, Chinese is the most spoken language in the world. Considering that China's population is roughly 1.4 billion, this fact will become further solidified.Here's the bottom line: Whether English remains the international standard, America cannot survive as a monoglot nation. That's where Rosetta Stone (NYSE:RST) comes in. As makers of language-education software, RST provides a critical solution to a growing need.RST has proven its worth in the markets, having jumped 50% so far in 2019. Still, it will require some patience moving forward. The company has had some poor sales and earnings performances in the era of Google Translate. * 7 Retail Stocks to Buy on the Dip However, learning languages isn't about merely translating words, but the meaning behind the words. Foreign language is a vital art that computers can't yet properly duplicate. If Rosetta Stone can sell that message, RST has the chance to consistently surprise. Carvana (CVNA)The previous time I covered online car dealer Carvana (NYSE:CVNA) was as part of a gallery featuring up-and-coming publicly traded organizations. I also mentioned that I was in the market for a new ride. I'm still searching, which has led me to some additional thoughts about CVNA stock.Source: Carvana First, car buying is a real pain in the behind. I spend endless hours looking for the right vehicle. If I find a few that meet my interests, I then have to physically go to the dealership. I haven't gotten around to this step because a) I'm lazy and b) I know I'm in for bitter negotiations.That, of course, is just my personal feelings on the matter … but I'm not the only one who feels this way. According to Time.com contributor Ian Salisbury:"It's long been a rite of passage -- if one that's universally bemoaned -- sitting at a car dealer's cluttered desk, dickering over the price of a new vehicle.But millennials -- used to purchasing everything from music to groceries to hotel stays online -- are starting to change that as a number of major care markers strike deals to sell cars at fixed list prices, according to a report in the Washington Post."This year, more millennials will be in America than members of any other generation. If millennials buy cars, they will increasingly choose the online route. Sorry, shady used-car dealers, but CVNA is about to eat your lunch. 51job (JOBS)Rooster's Lindsey Kline reported that millennials are giving corporate America the bird. But why do Kline and her fellow millenials feel so strongly about corporate employment?Source: ***Karen via FlickrIn her words, she prefers companies cut the BS, and instead provide "office kegs, pool tables, and air hockey." If today's employers can't get with the program, young workers will simply leave.Kline justifies this prideful attitude in that "Millennials are the most educated generation in history. We grew up in the midst of a digital era, and consequently, we're the only generation that doesn't have to adapt to new technologies."Some of you might find this thinking process arrogant, and I would agree. However, don't fight the tape: This is how the working environment operates today. And this points to the reason why I'm long-term bullish on ShiftPixy (NASDAQ:PIXY), especially if the price is right. * 7 Retail Stocks to Buy on the Dip However, this trend isn't exclusively an American one, which is why I'm putting 51job (NASDAQ:JOBS) on my long-term stocks to buy list. 51job is a next-generation employment recruiter and human-resources solutions provider for the young and tech-savvy. Better yet, it's a Chinese company that levers the advantages of a labor force that is over twice the size of the total U.S. population! That's a figure you simply can't ignore. Albemarle (ALB)A few years ago, Goldman Sachs boldly stated that lithium is the new gasoline. Most insiders, though, would probably say that the vaunted financial firm is merely profiting from the obvious. Companies like Tesla (NASDAQ:TSLA) have long proven that lithium is indeed the next-gen fuel source.Source: fdecomite via Flickr (Modified)But try telling that to the markets. Tesla stock is down 33% so far in 2019, and the lone lithium-based exchange-traded fund, Global X Lithium ETF (NYSEARCA:LIT), is down sharply this past year. Fortunately, so too is domestic-lithium specialist Albemarle (NYSE:ALB).So what's causing this prolonged downfall? While lithium demand is higher, so too is supply. Indeed, as the lithium price soared, more producers wanted in on the action. As a result, Argentina, Australia and Chile have ramped up production to the point where supply greatly exceeds demand. From Economics 101, you know where that situation leads.But like any commodity, the ebb-and-flow is difficult to predict. Sure, oversupply exists today. Tomorrow, that situation can change on a dime. Given that the broader technology industry points toward increased lithium usage, not less, my money is on ALB rising. Consider this lull in Albemarle shares as a discounted opportunity on one of the best long-term stocks to buy.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post The 7 Best Long-Term Stocks to Buy for 2019 and Beyond appeared first on InvestorPlace.
Wayfair , one of the world’s largest online destinations for the home, today announced that Steve Conine, co-founder and co-chairman, and Michael Fleisher, chief financial officer, will present at the Citi 2019 Global Technology Conference.
Wayfair , one of the world’s largest online destinations for the home, today announced that Niraj Shah, CEO, co-founder and co-chairman, will present at the Goldman Sachs 26th Annual Global Retailing Conference at the Grand Hyatt New York Hotel in New York City.
Online furniture and home-accessories retailer Wayfair receives an upgrade from analysts at Stifel Nicolaus, who see the company's stock as undervalued at current levels following a post-earnings downturn.
Boston-based online furniture retailer Wayfair will open its first full-service retail store in Massachusetts at the Natick Mall on Wednesday, Aug. 21.The e-commerce company is establishing a permanent physical outpost at a moment when other online retailers are making similar moves.