|Bid||52.03 x 4000|
|Ask||52.23 x 800|
|Day's Range||51.87 - 52.29|
|52 Week Range||44.25 - 52.33|
|Beta (3Y Monthly)||0.30|
|PE Ratio (TTM)||33.14|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||1.60 (3.07%)|
|1y Target Est||52.09|
What a stellar year 2019 has been so far for the owners of Twilio (NYSE:TWLO) stock! We are increasingly living in an interconnected world in which companies need to digitally communicate with their clients non-stop. A leader in the communication platform-as-a-service (CPaaS) sector, TWLO has benefited from that trend, enabling Twilio stock to surge 63% in 2019.Source: Shutterstock TWLO is expected to report its Q2 earnings on Aug. 5. Let us now look at what investors can expect in the second half of the year from TWLO stock. How Does Twilio Make Money?TWLO's cloud communications platform helps small, medium and large enterprises improve their apps and their digital interactions with their customers. Several of its well-known clients include Coca-Cola (NYSE:KO), Lyft (NASDAQ:LYFT), Netflix (NASDAQ:NFLX), Twitter (NYSE:TWTR), and Yelp (NASDAQ:YELP).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dependable Dividend Stocks to Buy As of Mar. 31, the company had 2019154,797 active customer accounts (ACAs), compared to 53,985 a year earlier. In fact, the number of active customers using Twilio's platform to communicate with their clients has increased four-fold in about four years. As TWLO attracts more customers to its platform, its recurring software-as-a-service (SaaS) revenue continues to rise.On Apr. 30, Twilio released its Q1 results. Its revenue increased 81% year-over-year (YoY) in Q1, to $233 million. In Q1, its top line rose 14% versus the fourth quarter of 2018.Part of the reason for the company's Q1 revenue gain was its acquisition of cloud-based email services leader SendGrid, which closed on Feb. 1.The owners of TWLO stock were also pleased by the fact that the company raised its full-year guidance in conjunction with its Q1 results. Management now expects its 2019 revenue to be between $1.102 billion and $1.111 billion, up from $1.065 billion to $1.077 billion. Similarly the company is calling for adjusted earnings per share of 11 cents to 13 cents, up from 8 cents to 11 cents previously.TWLO 's revenue growth should accelerate for the rest of the year. As a result, the leading provider of in-app communication solutions is setting the bar quite high for its next earnings report. What Could Derail TWLO Stock?Twilio is regarded as a high-growth company and as a disruptor in its field. And many analysts agree that its best days are possibly ahead. However, Wall Street is also getting concerned about the rich valuations of Twilio stock.Different analysts may use different metrics to gauge the relative value of companies in different industries. One metric they use is price-sales (PS) ratio. The PS ratio of TWLO stock is over 19.5.Analysts prefer a low PS ratio, ideally below one. However, a PS number between one and two is more common. To put the metric into perspective, the S&P 500 index's average price-sales ratio is 2.1.Another way to analyze a stock's valuation is to compare its valuation to that of other companies in similar industries or segments. In general, SaaS stocks are richly valued. Our readers may be interested to know that the PS ratio for the cloud computing giant Salesforce.com (NYSE:CRM) is 8.8, while Veeva (NASDAQ:VEEV) and Workday (NASDAQ:WDAY), two other SaaS stocks, have P/S ratios of about 16 and 30, respectively.Although the PS ratio of TWLO stock is very high, investors should also remember that PS is only one of many valuation metrics. Moreover, the metric does not take into account the profitability or costs of Twilio.Twilio is also facing increasing competition on multiple fronts from several enterprise software companies, including Salesforce.com and Bandwidth (NASDAQ:BAND). The digital communications revolution is here to stay, but the space TWLO operates in is fiercely competitive. The History of TWLO StockTwilio went public in June 2016 at an opening price of $23.99. By Sep. 2016, the price of TWLO stock was hovering around $70.However, on May 8. 2017, Twilio stock reached an all-time low of $22.80. After trading in a narrow range in the next six months, in 2018, Twilio stock began its huge rally.Then came the market selloff during the last quarter of 2018. The decline, which hit the tech sector especially hard, was seen as an important signal that investors were no longer willing to be exuberant about expensive technology stocks. On Christmas Eve, TWLO stock reached an intraday low of $73.15Over the past 12 months, TWLO stock price has surged over 140%. On June 20, it reached an all-time high of $151. In other words, Twilio stock has run up quite far, quite fast. And its current price is about 100% above where it was on Dec. 24, 2018.Those investors who follow short-term technical charts will be interested to know that TWLO stock has spent a good portion of 2019 in overbought territory. It is possible that some profit-taking may negatively impact Twilio stock in the near future, possibly prior to its Q2 earnings report.TWLO is a growth stock and a speculative stock. Therefore, in the coming weeks, I expect Twilio to be a battleground between investors and traders. While long-term investors would like to see TWLO stock exceed and stay over the $150 level, traders are likely to keep it between $125 and $145.As long as Twilio remains in a long-term uptrend, investors may continue to buy TWLO stock on dips. However, if prolonged profit-taking sends Twilio stock below $110, the validity of the long-term uptrend would need to be re-evaluated. And in the wake of such a decline, it may be some months before TWLO stock price sets fresh records. The Bottom Line on Twilio StockIn a few weeks, analysts will likely scrutinize Twilio's fundamentals to see if the stock offers any further positive catalysts that may help keep TWLO stock price sizzling in the second half of the year. Any sign that TWLO's growth outlook is not as strong as expected in Q3 or Q4 may be enough to spook Wall Street, sending TWLO stock price lower.Therefore, investors who do not yet have a position in the stock may want to wait until TWLO's earnings report in early August before buying TWLO stock. Doing so will give them a better view of the developments affecting the industry in general and the company in particular.Those investors who already own Twilio stock may consider taking some money off the table or hedging their positions. Such a hedge would limit their downside risk in the event the market drops or if the bullish thesis on TWLO stock ends up being wrong,.As for hedging strategies, covered calls or put spreads with Aug. 16 or Oct. 18 expiration dates could be appropriate, as straight purchases of put options are likely to be expensive due to heightened volatility. Investors who choose this route can reevaluate their long positions after TWLO reports its earnings.Well-performing stocks tend to keep on winning, and the recent strength of Twilio stock might be a good indication that within three or four years, investors who buy TWLO stock on weakness are likely to be rewarded handsomely.As of this writing, the author holds KO covered calls that expire on July 19. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Are Investors Getting Too Bullish on Twilio Stock? appeared first on InvestorPlace.
Two fantastic earnings surprises tell the whole story. This underrepresented piece of the Coca-Cola puzzle deserves more attention from investors and analysts alike.
Coca-Cola is one of a growing number of companies that provide onsite fitness centers for workers – usually at reduced or no cost. They regard these facilities as both an amenity and a means of promoting health and morale.
Loadsmart, a digital freight brokerage, today announced a collaboration to provide Oracle Logistics Cloud (NYSE: ORCL ) customers instantly bookable truckload rates and guaranteed capacity from its network ...
Editor's Note: This article was previously published in April 2019. It has been updated and republished.I attended a meeting of startup founders who pitched their companies. Interestingly enough, many of them touted artificial intelligence.Source: Shutterstock Yes, this technology has quickly become red hot. After all, the market opportunity is massive. Gartner estimates that spending will grow at an average compound annual rate of 18% to $383.5 billion by 2020.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet AI is not easy to develop. There needs to be access to huge amounts of data, so as to find patterns. What's more, AI requires top-notch data scientists. As should be no surprise, this kind of talent is in short supply nowadays.Because of all this, when it comes to finding artificial intelligence stocks, they are usually larger companies. * 10 Best ETFs for 2019: The Race for 1 Intensifies OK then, which names are positioned to benefit? Well, let's take a look at five that stand out: Alphabet (GOOG)Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google CEO, Sundar Pichai, refers to the company as "AI first." And this is certainly not hype.Source: Shutterstock AI has become pervasive across the product line, such as with Gmail, YouTube, Maps, Photos, Google Cloud and so on. The company has also developed its own assistant, which connects with more than 5,000 devices in the home.Google has been creating industry standards for AI as well, primarily through its own language called TensorFlow. Just some of the companies that use it include Uber, eBay (NASDAQ:EBAY) and Coca-Cola (NYSE:KO).Something else: Google is a top player in autonomous vehicles. The company's Waymo unit could be worth as much as $175 billion, according to analysts at Morgan Stanley.Finally, the valuation of GOOG stock is at reasonable levels, with the forward price-to-earnings ratio is 28.62, which is in-line with other mega tech operators like Microsoft (NASDAQ:MSFT). This puts it at the top of the heap among artificial intelligence stocks. Nvidia (NVDA)Nvidia (NASDAQ:NVDA) is the pioneer of GPUs (Graphics Processing Units), which are chips that process large amounts of data cost-effectively. The technology was initially focused on the gaming market.Source: Shutterstock But NVDA realized that GPUs were also ideal for AI. To this end, the company has leveraged these systems into areas like datacenters and autonomous vehicles.No doubt, it has been a very good move. Consider that NVDA has been on a strong growth ramp before flattening a bit at the end of its fiscal year. In the latest quarter, revenues dropped by 24% to $2.21 billion year over year, but finished the year up with 21% growth to $11.72 billion. * 7 A-Rated Stocks to Buy for the Rest of 2019 It's true that the valuation of NVDA stock is far from cheap, with the forward price-to-earnings ratio at 24x. But then again, a premium is to be expected for a company that is a leader in a massive industry.For example, earlier this year Evercore ISI analyst C.J. Muse boosted the price target on NVDA stock to $400, which implies 41% upside. In his report, he noted that the company's technology is "becoming the standard AI platform." IBM (IBM)AI is nothing new for IBM (NYSE:IBM). The company has been developing this type of technology for many years. For example, back in 1985, it developed its AI computer called Deep Blue.Source: Atomic Taco via FlickrIt would actually beat chess world champion Garry Kasparov in 1996. Then in 2011, IBM created Watson to take on the best players on the quiz show Jeopardy!. The computer won.Now, IBM has definitely had its troubles. But the investments in AI and other cutting-edge technologies have been making a difference. Note that during the trailing 12 months, IBM's Strategic Imperatives, which include cloud computing, security, analytics, Big Data and mobile, generated $40 billion, more than 50% of total revenues. This has helped improve the growth rate of the overall business.IBM stock also has an attractive dividend, which is at 4.61%. This is one of the highest in the tech industry. Oh, and the valuation is reasonable as well. Consider that the forward price-to-earnings ratio is only 11.85x. Yext (YEXT)Yext (NYSE:YEXT) has been among the most exciting Artificial Intelligence stocks.Source: TechCrunch via FlickrThe reason: the company is a top data provider, with integrations of over 150 services from operators like Google, Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Microsoft, Facebook (NASDAQ:FB) and Tencent (OTCMKTS:TCEHY).Yext has also added context and intent to all this, which allows for more accurate real-time searches. * 7 Marijuana Companies: Which Pot Stocks Should You Buy? On the latest earnings call, CEO Howard Lerman noted:"Today, we manage more than 185 million facts about our customers in our platform, providing brand-verified answers in services like Google, Siri, Alexa and WeChat to consumers looking for information verified by the source of truth."Growth has been strong. In the latest quarter, revenues shot up by 33% to $63.8 million. The company has also been getting much traction with enterprise customers. Note that the quarter saw nearly 130 new logos. Baidu (BIDU)When it comes to the search business, Baidu (NASDAQ:BIDU) remains the king in China. Over the years, the company has transitioned to mobile, which has been critical.Source: Simone.Brunozzi Via FlickrBut BIDU has also invested heavily in becoming one of the serious artificial intelligence stocks. This has helped with personalizing the search experience as well as improving the impact of online ads.But AI has done more than just bolster BIDU's own platform. The company has created several platforms for third parties. One is DuerOS, which has an installed base of 100 million devices and processes over 400 million queries a month. Then there is Apollo. It is an AI system for autonomous vehicles. Recently, BIDU used this with King Long Motors to launch the first fully self-driving L4 minibus.The AI efforts have been paying off, and BIDU has a highly scalable business model. That all is only good news.BIDU stock has taken a hit over the past year, down 32%, but so far this year it's up nearly 5% and looks as if it's set to keep moving. Keep in mind that Chinese stocks have been in the bear phase and that there are concerns about the U.S. trade tensions. But for investors looking for a play on AI in China, BIDU stock does look attractive at these levels.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy The post 5 Artificial Intelligence Stocks to Consider appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) stock had two recent failed attempts at breaking out from $8 per share. This is a level that has been pivotal since January of 2018 so it's not a surprise to find it sticky here. But this resistance remains the opportunity for the next few months.Clearly the bulls and the bears are in a heated battle over the short-term future of Aurora stock. That is why they keep chopping around these levels. But the important thing for the bull thesis is for ACB to hold its support. Otherwise, the sellers will take control of the reins and the bulls would have to fall back and reset for another set of attempts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI consider this opportunity primarily a swing trade for a momentum stock. These are volatile tickers that move fast in either direction, which makes them tricky to trade without either complete faith or proper knowledge of levels.While I do have some faith that the cannabis industry has a good future ahead, I don't have blind faith that it will. So in this case I must plot the short-term lines that I see here for ACB stock. * The S&P 500's 5 Best Highest-Yielding Dividend Stocks I need to clarify that the battle though fierce now, year-to-date the ACB is up almost 50%. So this is not the case of a struggling stock. The point from today is to catch the next big burst. The battle here is important for both sides because the breach on one side will carry momentum in that direction.My hunch is that the bulls will eventually prevail and the upside opportunity for ACB is to target a new high. There will be resistance at $8, $9.25 and $10.40 per share. The current ACB price pattern is a sharp descending wedge knocking against a flat floor. Often these resolve themselves upwards especially if there is no new specific reason to sell the stock. First the Fundamentals for ACBThe whole sector is exorbitantly expensive. The valuations are completely insane but that's because we don't yet have a baseline. This is similar to the chase of eyeballs into the dot-com bubble. Only this time we actually do have a market and products so there is actual income flowing into Aurora and other pot stocks.The very fact that legitimate companies like Constellation Brands (NYSE:STZ) and Altria (NYSE:MO) are investing billions into pot companies like Canopy Growth (NASDAQ:CGC) and Cronos (NASDAQ:CRON) is proof enough that there something there.The potential comes from the fact that ACB and the gang need to expand their capacity in order to satisfy the incessant demand that we know is there. But the bigger upside reset will probably come from legislative changes.More and more countries are legalizing cannabis. The U.S. is still lagging even though some states took the plunge individually. Once federal regulations in the U.S. change they open the door for companies like Pepsi (NYSE:PEP) to invest in cannabis then the interest in them turns into a feeding frenzy.One thing is not in doubt: Cannabis has very devout fans. This is true for traditional recreational use, edibles and the expectations of drinkables. Medicine is also incorporating cannabis in many formats. I am also noticing more advertisement for topical spreads which are not yet constrained by the regulatory bodies in the US. Trading ACB StockIf I am already long ACB stock, I just look away for a few months. But for those who have complete faith in the concept and believe that it's only a matter of time before the stars will align for pot stocks, they need to simply plug their noses and buy the ACB shares here. This is a long-term bet that the concept will grow into its valuation.After all, this is an industry that is like a newborn, so young that it's eyes are still shut. It is impossible to short the future prospects of the sector so soon so the bottom -- regardless of ACB fundamentals -- should be shallow. The hopium is still too big.For the short term, the bulls and bears for ACB are playing tug-o-war between $7 and $8 per share. So far the floor has held but the risk now becomes that the action forms a neckline that must hold. Else the sellers prevail and overshoot to test the next support zone around $5. This would be a dip I'd buy.The bottom line is easy. Both sides of the opinions on Aurora stock are passionate. But for now it's impossible to deny the upside potential of such a young company. So it becomes a matter of time before the bears get tired and the bulls overwhelm them on the charts. So I'd rather be long than short this one for the next year. * 7 Retail Stocks to Buy for the Second Half of 2019 Another way to go long ACB without committing to the full price of the stock now is to sell December $6 puts and let time do the work. This way I get paid today for the opportunity to own the shares at a 18% discount from now.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 free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Aurora Cannabis Stockas Highs Are Coming appeared first on InvestorPlace.
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(Bloomberg) -- PepsiCo Inc., trying to navigate a generational decline in cola consumption, has found one surprise niche: Mountain Dew for gamers.The beverage giant’s caffeine-boosted “game fuel” drink, aimed at video-game enthusiasts competing in tournaments, is selling so well that it can’t keep its re-sealable cap in stock.“Everything they make, we buy, and we’re selling every bit of product we make,” Hugh Johnston, PepsiCo’s chief financial officer, said of the drink’s specialty cap made by a European supplier.As it deals with the decline in overall soda consumption, PepsiCo is also getting a boost from its water business -- including its “pH balanced“ Lifewtr and its LaCroix competitor Bubly. Those brands helped the company mitigate a slide in sales of Gatorade, which has also struggled as consumers turn away from sugar.The company reported quarterly sales and earnings that beat estimates on Tuesday. Sales in PepsiCo’s key North American beverage unit were up, despite sluggish volume, as the company got a boost from higher prices for drinks. The shares were little changed in New York.The company generates significant revenue from food, and Frito-Lay, its salty-snack unit, also posted sales growth, including a double-digit bump at convenience stores in the U.S., according to Johnston.The strong “game fuel” sales come as PepsiCo tries to revitalize the Mountain Dew brand by pushing it to customers who want energy drinks. Energy has been a strong sub-segment of the beverage industry, with rival Coca-Cola Co. launching Coke Energy earlier this year, which adds to the stake it owns in Monster, a top-selling brand along with Red Bull.PepsiCo distributes the energy drink Rockstar, but has had a limited presence in that corner of the market, according to Ken Shea, an analyst at Bloomberg Intelligence.Chief Executive Officer Ramon Laguarta said during a conference call Tuesday that PepsiCo will use its Mountain Dew brand to go after the energy drink market. Game Fuel sells at a premium to regular Mountain Dew, according to prices available on Amazon.com.“We’re trying to move Dew into the energy category in small steps,” he said.(Updates with details from CFO interview throughout.)\--With assistance from Karen Lin.To contact the reporter on this story: Craig Giammona in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Anne Riley Moffat at email@example.com, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Editor's note: "5 Great Blue-Chip Stocks to Buy " was previously published in May 2019. It has since been updated to include the most relevant information available.If you're like me, the current bout of trade-induced volatility isn't sitting too right. And while swings and bear markets are a part of investing, the kind of big plunges we've recently seen does make for some sleepless nights. Which is why the best stocks to buy could be America's blue-chip stocks.Blue-chip stocks don't necessarily have a formal definition, but they are generally stable and well-established companies. Blue-chip stocks are typically household names with billions in revenues and steady rising profit profiles. Often, they share the wealth with their investors via rich dividend and buyback programs. The best part is that investors can count on blue-chip stocks to help them get through periods of malaise and bear markets as they tend to be less volatile than let's say, smaller growth stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo that end, with the markets starting to feel a bit shaky, blue chip stocks could be the best way to position your portfolio in the upcoming months. * 7 A-Rated Stocks to Buy for the Rest of 2019 But which blue-chip stocks make sense to buy? Here are five that could help you get through the next few months and an upcoming bear market. Cisco Systems (CSCO)Source: Shutterstock The technology sector is often seen as a growth element for a portfolio. However, the sector does feature plenty of blue-chip stocks that produce mountains of cash flows, steady dividends, and rising profits. Case in point, former dot-com darling Cisco Systems (NASDAQ:CSCO).After building the internet and networking with its focus on switching gear and routers, CSCO made the smart pivot into services and reoccurring revenues. It basically created the model that many tech firms have copied. And in doing that, Cisco has become a cash generation machine. Last quarter alone, the firm managed to produce more than $3.5 billion in free cash flows.The best part is that CSCO continues to share that cash with investors. The firm recently raised its dividend by 6% and added another $15 billion to its authorized buyback program.And yet, more could be in store for Cisco. The firm continues to add new capabilities to its services platform and recently unveiled new conversational A.I. to its interfaces. Adding in continued data center demand as well as the pending 5G upgrades and Cisco continues to look great.For investors looking for a strong tech sector blue-chip stock, Cisco has to be your top pick. Merck (MRK)Source: Shutterstock The steadfastness of the healthcare sector makes it a prime place to find plenty of blue-chip stocks. And one of the best could be pharmaceutical giant Merck (NYSE:MRK).For starters, MRK features a wide portfolio of current and former blockbuster drugs, vaccines and other therapies. This huge portfolio continues to drive profits and cash flows at the giant. But MRK isn't resting on its laurels. A few years ago, Merck made the shift into newer biotech and advanced cancer-fighting medications. That has turned out to be the right move.MRK's Keytruda has quickly become the go-to medicine for a variety of lung cancers and sales going through the roof. Last quarter alone, the company reported more than $2.2 billion in Keytruda sales. That double-digit growth has allowed Merck to up its total forecast and guidance for the entire year. The growth of Keytruda could continue. Merck has begun several trials looking to use the drug in other indications. This could provide even more cash flowing Merck's way. Considering the growth of its cancer portfolio and the rest of its steady drug options, Merck is looking like a great buy for the long haul. * 7 A-Rated Stocks to Buy for the Rest of 2019 In the end, MRK's 2.5% yield and continued growth make it a powerful blue-chip stock for any investor. American Express Company (AXP)Source: Shutterstock One of Warren Buffett's favorite blue-chip stocks happens to be American Express (NYSE:AXP). And the Oracle of Omaha isn't wrong to own it. The financial powerhouse has continued to thrive in the rising economy and has a lot to offer investors.AXP is kind of a weird bird. Like its rivals, Visa (NYSE:V) and Mastercard (NYSE:MA) -- also two blue-chip stocks worth owning -- American Express operates a secured payment network and acts as a toll road when customers swipe their cards. Here, Amex scores a hefty fee. The firm's discount revenue rate was last quarter was 2.37%. Basically, for every $100 spent on its cards, $2.37 flowed back to AXP. All in all, last quarter, American Express pulled in more than $6.2 billion in revenue from these operations.Secondly, unlike V and MA, American Express is an issuer of its cards. Because of this, it's able to score hefty membership fees, interest and creates a leverage effect for its profits. Moreover, Amex's entire M.O. is about rewards and its partners pay the credit issuer plenty of fees to get their products/offers onto AXP's platform.The best part is that AXP tends to focus on the higher end of the credit spectrum. This removes many of the uncertainty and issues with offering loans and reduces default rates.All of this has made American Express a powerhouse in the financial sector. Genuine Parts Company (GPC)Source: Shutterstock Sixty-three years. That's an amazing streak for any firm to consistently raise its dividend. But for blue-chip stock Genuine Parts Company (NYSE:GPC), it's just par for the course. The secret lies with the firm's massive and irreplaceable moat.There's a good chance that you've never walked into one of GPC's locations, but your mechanic has. Under the NAPA banner, the firm operates one of the largest networks of auto parts and industrial distribution locations in the nation. Those 9,250 locations are located pretty much everywhere, and that's key. Auto parts are generally a "need it now" sort of item and are pretty much immune from the whims of online sales.Because of this huge network, GPC and NAPA are pretty much the only game in town when it comes to getting parts to body shops, mechanics and service centers. This has been beyond good for GPC's bottom line over the years. In its 90-year history, sales have increased in 85 of those years. This streak was continued last year as GPC recorded more than $18.7 billion in revenues. Analysts predict that revenues will jump by about 4% this year. Naturally, those sales have turned into profits and a long streak of dividend increase for investors. * 7 A-Rated Stocks to Buy for the Rest of 2019 This consistency has made GPC one of the best blue-chip stocks to own for the long haul. Coca-Cola (KO)Source: Chris Nielsen via FlickrWhen it comes to blue chip stocks, Coca-Cola (NYSE:KO) could be the bluest. Its brand is worldwide and is enjoyed millions of times daily. This has allowed KO to pay a constantly rising dividend for the last 55 years and provide plenty of ballast to a portfolio in markets just like today.And there is still growth to be had.Coke has moved into new beverage categories as tastes have changed. Sparkling water, juices, teas, and other healthy drinks are now on a menu at the firm. And these items continue to grow -- with revenues for these products now accounting for about half of KO's total pie. Meanwhile, KO has improved margins via new packaging designs and sizes. Adding in some tech -- such as its Arctic Coolers and Freestyle machines -- and Coke seems to be winning the beverage wars.The proof is in the pudding. Continued product mix development has resulted in a big 5% jump in revenues last quarter. Likewise, earnings saw a big surge and KO has managed to produce roughly $6.28 billion in free cash flow over the last 12 months.Yes, KO is boring. But that's what exactly what investors should be looking for in a blue-chip stock. Consistency, with a touch of growth. If that doesn't describe Coca-Cola, then I don't know what does.Disclosure: At the time of writing, Aaron Levitt did not have a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post 5 Great Blue-Chip Stocks to Buy appeared first on InvestorPlace.
Tuesday ahead of the opening bell, PepsiCo will be one of the first major companies to deliver second-quarter financial results.
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PepsiCo (NASDAQ:PEP) shareholders clearly expect to hear more good news when the beverage and snack giant reports its fiscal second-quarter numbers on Tuesday morning. Pepsi stock is up 9% since its most recent quarterly report. It has also rallied nearly 18% since the Q4 2018 Pepsico earnings. By consumer-staples standards, that's a monumental run up.Source: Shutterstock It's also not a terrible bet. Although the big move does present some valuation-based challenges for Pepsi stock, it's been years since Pepsico earnings have missed. Indeed, it's only failed to beat quarterly bottom-line estimates once in the past three years alone.Still, the sheer scope of the multi-month gain sets the stage for potential profit-taking. Should the Pepsico earnings report present anything less than ideal, a beat may prove irrelevant.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pepsico Earnings PreviewFor the most recent look, analysts collectively expect the company to report earnings of $1.50 per share of Pepsi stock. Additionally, forecasts call for sales of $16.42 billion. That bottom line would be up versus the operating profit of $1.49 per share that Pepsico booked in the comparable quarter from a year earlier. Furthermore, revenue at that level would mark a 2.1% improvement on the year-ago top line of $16.1 billion. * 7 Retail Stocks to Buy That Are Down in 2019 Adverse currency-exchange rates have been and continue to weigh results down. However, please note that rivals like Coca-Cola (NYSE:KO) and Procter & Gamble (NYSE:PG) have lamented the same headwind. During the first fiscal quarter of 2019, disadvantageous foreign exchange rates reduced Pepsico's per-share profit by 2%. 3 Things to WatchWhile a multi-faceted company, investors will only be able to respond to the most noteworthy changes in the company's business. Three items presently matter more than any other. As such, they need to be weighed carefully during and following the Q2 Pepsico earnings report.1.Organic SalesOrganic revenue is a figure that strips away the misleading impact of changes in currency-exchange rates. It also removes changes associated with business acquisitions or divestments. In other words, it is a more accurate picture of a corporation's true health and Pepsico stock specifically.For Q1, Pepsico saw organic sales growth of 5.2%. Assuming the company maintains this stride, it's a repeatable target.2.Full-Year GuidanceWith its Q1 Pepsico earnings report, PEP modeled full-year organic revenue growth of 4%. And though it also cautioned per-share profits could decline by 1% in 2019, that would be entirely due to investment being made in its growth. Perhaps more importantly, Pepsico guided for $9 billion in operating cash flow and $5 billion in free cash flow. Management is planning on giving $8 billion of that back in the form of dividends and stock repurchases.Changes to that initial outlook have the potential to move Pepsi stock, for better or worse.3.Revenue Mix Vs. Profit MixNorth America's beverage arm is the company's biggest by revenue, producing 32.2% of Q2 2018's top line. It's not Pepsico's breadwinner in terms of income though. That honor belongs to North America's Frito-Lay snack-food unit. This arm accounted for 23.8% of the year-ago revenue but contributed 39.6% of the company's total operating earnings.While it's unlikely to change much, you should look out for any variances of each unit's sales and earnings contributions. Even small fluctuations could signal trouble and potential disruption of Pepsi's low-margin business. Looking Ahead for Pepsi StockRegardless, investors mostly have to embrace that judging Pepsico stock right now isn't a simple exercise.Just a few days ago, analysts with Bank of America Merrill Lynch noted that FY2019 is an "investment year." Specifically, management hopes to bolster growth through capability enhancement, manufacturing, and go-to market capacity additions. Further, advertising and marketing investments should increase consumer awareness.It's a work in progress and will be difficult to ferret out any specific impacts just yet. However, the market may respond to a qualitative feel on how this spending is setting up future growth.On the other hand, that qualitative feel for Pepsico stock may not matter at all right now.While it would be unlikely Pepsico fails to continue moving fiscally forward, that might not be enough for Pepsi stock. Click to EnlargeOne has to zoom out to a multi-year chart of Pepsi stock to fully appreciate it. However, the rebound since May of last year has been more than dramatic. In fact, the 37% jump over this timeframe is unprecedented.It's also carried Pepsico stock back to a familiar resistance line that tags all the major price peaks going back to 2011.Now valued at a trailing price-earnings ratio near 23 and a forward-looking of 24, we've got to get real: there's little plausible room for more upside even if the beverage and snack company does everything it's expected to do. Prior to 2015, a trailing PE anywhere but the mid-teens was unusual. Therefore, you should approach Pepsico stock with caution.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Are Down in 2019 * 7 of the Best SPDR ETFs -- Besides SPY and GLD * 5 Dividend Stocks to Buy From Across the Globe The post Even a Solid Q2 Report May Not Push Pepsi Stock Any Higher appeared first on InvestorPlace.
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