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This list tracks the largest earnings beats for companies recently reporting earnings. This list is produced daily using the real-time earnings results reported by Selerity and limited to the top 30 stocks that meet the criteria.
Target unveiled its new flagship food brand, Good & Gather, on Monday. Yahoo Finance's Jennifer Rogers, Myles Udland, and Dan Roberts discuss.
Estée Lauder, Uber, Google, Tesla, Microsoft and Nvidia are the companies to watch.
Minecraft is getting a free update that brings much-improved lighting andcolor to the game's blocky graphics using real-time ray tracing running onNvidia GeForce RTX graphics hardware
(Bloomberg) -- So challenging are the times for Baidu Inc. that even meager revenue growth is cause for celebration.The Chinese search leader’s shares surged as much as 10% in extended trading after it reported sales inched up 1.4% to 26.3 billion yuan ($3.8 billion) in the June quarter, versus projections for a drop. Baidu foresees current-quarter revenue of 26.9 billion yuan to 28.5 billion yuan, flat to down a tad and roughly in line with estimates.The better-than-expected results will soothe investors’ worries for now that the 19-year-old company is losing steam rapidly as China’s internet evolves from desktop to mobile. Yet it continues to grapple with a broader economic slowdown as well as competition for advertisers from Tencent Holdings Ltd. and ByteDance Inc. The latter is chipping away at Baidu’s ad sales via increasingly popular news and social media apps, and also recently launched a general search engine -- a direct challenge to Baidu’s core business.“Facing severe outside challenges and a weak macro environment, the company has initiated a series of groundbreaking changes from top to bottom, involving company structures, personnel moves and business consolidation,” Baidu Chief Executive Officer Robin Li said in a letter to employees after the results. “Despite periodic pain, these changes will have positive and profound impact, enabling Baidu to walk farther and steadier.”Read more: Baidu’s $66 Billion Dive Knocks It Out of China’s Internet Top 5Net income dropped to 2.41 billion yuan, reversing a loss in the prior quarter -- Baidu’s first since going public in 2005. The company enjoyed a near-monopoly in online search after Alphabet Inc.’s Google exited China in 2010 but has in past years suffered a plethora of troubles from a regulatory clampdown over healthcare ads to the departure of a slew of top executives including Xiang Hailong, a 14-year veteran who ran its core search business.The search giant is betting on new technology such as artificial intelligence and self-driving cars, but these pushes aren’t going to pay off financially any time soon. In the meantime, Baidu is investing in content to hold onto users, backing social media platforms including Q&A site Zhihu and science sharing platform Guokr. Daily active app users climbed 27% in the June quarter to 188 million, while subscribers on its Netflix-style iQiyi service grew by about 50% to 100.5 million in June.Baidu had fallen off the list of China’s five most valuable internet companies, trailing Meituan and NetEase Inc., after shedding more than 40% of its market value this year. Once touted as a member of China’s tech triumvirate alongside Alibaba Group Holding Ltd. and Tencent, Baidu has been left behind as the country’s internet evolves.Baidu’s forecast “indicates continued pressure from multiple headwinds, including China’s weakening macroeconomic environment hurting advertisers’ sentiment, the company’s cleanup of low quality health-care advertisers, and the large influx of competitive advertising inventory depressing industry prices,” Bloomberg Intelligence analyst Vey-Sern Ling said.To contact the reporter on this story: Zheping Huang in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Colum Murphy, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Stocks surged for a third-straight day on optimism about a U.S.- China trade deal and fewer worries about a recession hitting any time soon.
What's Next for Walmart Stock and a Target earnings preview on the latest episode of the Full-Court Finance podcast from Zacks Investment Research.
Nvidia (NVDA) is on everyone’s radar Monday, with shares flying higher nearly 15% over the past two trading days. What is fueling the surge? In a word: earnings.The California-based chip manufacturing giant reported second-quarter earnings for fiscal 2020 after the market closed on Thursday. Though 2Q revenue was down 17% since last year — contributing to a 36% drop in EPS during the same time — analyst expectations were generally met. The company saw a large quarter-over-quarter rise in revenue from gaming (24%) and automotive (26%, also up 30% since last year), but saw sluggish gains from data center at 3% quarter-over-quarter.The earnings prompted a wave of positive comments from industry analysts. Christopher Rolland of Susquehanna and Vivek Arya of Bank of America both maintained their bullish 'buy' ratings, along with price targets of $190 and $225, respectively. (To watch the analysts' track records, click here)Nvidia’s automotive segment remains a massive opportunity for the company. Though Arya says segment revenue was likely boosted by non-recurring development agreements, on its way to reaching a quarter-record $200 million in sales, Nvidia is a leader in processing chips for automobiles. Cars are using more and more chips to perform computational functions, and demand will only continue to increase as autonomous capabilities are implemented in more vehicles. Furthermore, as Tesla recently took its chipmaking in-house, some analysts say this may spur other auto companies to double-down on their self-driving efforts, and spur demand for Nvidia. On gaming, which Rolland calls a “modest outperformer,” Nvidia was helped by contributions from Nintendo Switch. Two new Switch consoles are expected to receive a new processing chip from Nvidia, due for release by the end of the year. While Rolland says “some investors may get hung up on the Nintendo Switch contribution viewed as lower-quality/lumpier revenue,” he is still optimistic on the segment. Rolland is not “overly worried” nor surprised by slow-moving data center (DC) performance, as his pre-earnings report highlighted slowness in Asia. But the analyst is betting on the company’s new 7nm release — set for later this year or 2020 — to “reaccelerate growth.” Without it, Rolland cautions, worries over the segment would intensify. For his part, Arya takes a different approach at DC — he points to limited “visibility into cloud spending, which historically has been the largest driver” as a reason to be cautious. Nevertheless, Arya expects “data center sales to resume YoY growth in Q4.” All in all, the analyst community is bullish on NVDA moving forward, and the recent solid earnings help. TipRanks analysis of 28 analyst ratings on Nvidia shows a Moderate Buy consensus, with 17 analysts recommending Buy, 7 hedging their bets with a Hold, and only one suggesting Sell. The average price target stands at $183.91, which represents an ~8% upside to current levels. (See NVDA's price targets and analyst ratings on TipRanks)
Alibaba’s (BABA) stock climbed nearly 11% over the past three trading days, as investors are becoming more optimistic on the heels of a strong earnings report and positive geopolitical news. Specifically, first-quarter revenue skyrocketed 42% since last year, crushing estimates by $880 million, while EPS came in at $1.83, beating Wall Street by $0.34. The stock was also fueled higher by Trump administration's decision to pause tariffs on Chinese goods. Though the trade war is far from over, the decision should provide some breathing room for investors and signals that the tit-for-tat will be suspended for the time-being.Given the encouraging developments, Stifel analyst Scott Devitt maintained a Buy rating on BABA stock, while slightly raising his price target by $5, to $225.As always, we like to give credit where credit is due. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, Devitt has delivered to his followers a yearly average return of 20.4% with a 67% success rate. Devitt has earned an average return of 26.3% when recommending BABA and is ranked 44 out of 5,231 analysts.The analyst says the increase in revenue and margin, which “exceeded expectations despite macroeconomic concerns,” helped push his estimates higher. Revenue, which grew 42% and exceeded Devitt’s estimate of 38%, was propelled by an increase of 20 million active customers, up 17% since last year. Further, high-margin customer management revenue, which includes services provided to merchants, increased 27% since last year, “due to strong volume in paid clicks from strong active growth and more relevant listings.” On the non-retail side, the all-important cloud revenue saw an increase of 66% since last year, as the company managed to see more spending per customer. On profit, Devitt says, “tightening expense management” drove better than expected results, with “EBITDA margin of 34% exceeded consensus expectations of 31% and [Devitt’s] forecast of 33%.” Smaller losses from cloud and digital media helped the company see a rise in total margin since last year. Looking ahead, Devitt says he is “encouraged by the margin improvement as progress is being made in strategic investments,” and raising his estimates to include a 37.5% year-over-year rise in full-year revenue between this year and last. While macroeconomic challenges continue to play a role, Devitt’s concern is lessened by Alibaba’s ability to navigate it the rough waters thus far. All in all, even as much of the world is concerned with the US-China and a slowing global economy, TipRanks analysis of 15 analyst ratings shows that analysts believe in Alibaba, notwithstanding the macro concerns. TipRanks shows a consensus Strong Buy, with all 16 analysts recommending Buy. The average price target stands at $223.93, which represents ~25% upside from current levels. (See BABA's price targets and analyst ratings on TipRanks)
Usually, a headline like that would spell doom for stocks, but that wasn't the case Monday. Major U.S. equity benchmarks rallied even as President Donald Trump had some, shall I say, "words of encouragement" for the Federal Reserve."The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well," said the president on Twitter (NYSE:TWTR). "If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!"President Trump has a long history of moving markets via Twitter, but that wasn't necessarily the case Monday when it comes to the dollar, which he has long complained is too strong. The Invesco DB US Dollar Index Bullish Fund (NYSEARCA:UUP), which tracks the greenback against a basket of other major currencies, closed modesty higher and just a third of a percent below its 52-week high. UUP is up about 2% this month, indicating Fed rate cuts aren't always the elixir to quell a strong dollar.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Cheap Dividend Stocks to Load Up On Despite the dollar firming again today, the plenty of export-sensitive sectors and individual names rallied, helping the Nasdaq Composite to a gain of 1.35% while the S&P 500 added 1.21%. The Dow Jones Industrial Average started the week higher by 0.96% with just two of its 30 components finishing lower on the day. Be Careful With These Dow WinnersTwo of the best performers in the Dow today may require some caution. Sure, it was nice to see Cisco Systems (NASDAQ:CSCO) rally after the network gear maker was drubbed last week following disappointing guidance on its earnings call, but Monday's bounce may be one of the dead cat variety.Similar caution may be warranted with chemicals maker Dow (NYSE:DOW), which was the second-best Dow stock today behind Cisco. Again, it's nice to see a cyclical, tariff-sensitive name in the green today, but the stock was downgraded last Friday to "neutral" by Bank of America Merrill Lynch with that bank also paring its price target on Dow shares to $44 from $55.Of the 17 analysts rating shares of Dow, just six have "buy" ratings on the name while 11 have the equivalent of a "hold" on the stock. DJIA Earnings NoteI've been mentioning The Home Depot (NYSE:HD) recently because the company reports earnings tomorrow, and today's gain of 2.11% suggests trades were buying the name in advance of that report. There was some elevated options activity in Home Depot today, too, but history suggest traders should be careful with the home improvement giant post-earnings."Looking into HD's earnings history, the stock has closed lower the day after earnings in all but two of the past eight quarters, though the reaction to Home Depot's most recent report in May was positive," according to Schaeffer's Investment Research. "Over the past two years, the shares have swung an average of 1% the day after earnings, regardless of direction. This time around, the options market is pricing in a larger-than-usual 6% swing for Tuesday's trading." Some Good Dow NewsI've mentioned a few times this year that alternative energy stocks and ETFs are really weighing on the traditional energy sector, so with that in mind, it was nice to see Chevron (NYSE:CVX) jump 1.68% today on some bullish analyst chatter. Barclays started coverage of Chevron today with an "overweight" rating and a $145 price target. That price target implies significant upside from today's close just under $118."Chevron is well positioned to both return significant free cash flow to shareholders and fund its…compound annual growth rate guidance," according to the bank. Dow Jones Bottom LineIn addition to the aforementioned Twitter action by President Trump, today's upside was the product of familiar themes: expectations that more Fed rate cuts are coming and that the U.S. and China might be able to make some headway on the trade front.Speaking of the Fed, Chairman Jerome Powell speaks in Wyoming late this week, so it's safe to say all eyes and ears will be on that speech regarding rate cut clues.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Dow Jones Today: Trump's Twitter Targets the Fed … Again appeared first on InvestorPlace.
Target Corp’s new food label Good & Gather will be a traffic driver that helps the retailer take a bigger chunk of the food business, experts say. “Target’s announcement that it was upping its food game with its new “Good & Gather” initiative is credit-positive as it will drive additional traffic, which in turn will drive increased sales of higher-margin private and exclusive non-food items,” said Charlie O’Shea, vice president at Moody’s. Target’s (TGT) Good & Gather will be available Sept. 15 and be comprised of more than 2,000 products by the end of 2020.
Walmart Inc. said Monday that it has partnered with BuzzFeed's Tasty video site for "shoppable" recipes, which will add the entire list of ingredients into a viewer's Walmart online grocery cart. Items can be picked up at any of more than 2,500 stores nationwide, or arranged for delivery from 1,100 stores. Tasty has more than 4,000 recipes. Walmart will also launch Tasty-branded products in a number of departments including deli and frozen meats. Walmart stock is up 22.3% for the year to date while the Dow Jones Industrial Average is up 12.1% for the period.
Stocks extended Friday's rally, rising more than 1% in a broad advance as the S&P; 500 crept closer to the 50-day moving average.
Even as the global economy weakens, there are opportunities to add stocks in a long-term portfolio. Alibaba Group (NYSE:BABA) is among the top stocks to consider with a three-to-five-year investment horizon. This coverage on Alibaba stock will discuss the factors that will help the e-commerce giant sustain robust growth in the coming years.Alibaba stock is almost at the same level it was in August 2018 even after strong quarterly results and attractive valuations. I believe that this sideways movement is a good opportunity to accumulate the stock. A break-out on the upside is inevitable in the foreseeable future. China's Consumption Boom and BABA StockChina's economic downturn is primarily due to manufacturing and production excesses. China's consumption sector still remains healthy.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo put things into perspective, China will be the largest retail market in 2019. Further, it is expected that between 2019 and 2024, China's retail sector will grow at a CAGR of 10.6%. * 10 Cheap Dividend Stocks to Load Up On According to a report from McKinsey & Company, 78% of GDP growth in the first nine months of 2018 was driven by consumption. The report also states that 6% GDP growth in 2019 is likely only if the consumption boom sustains.Therefore, with consumption critical for growth, the government will support policies that trigger the consumption boom. In addition, I believe that the Chinese Yuan will appreciate in the coming years which will increase the purchasing power of consumers.Overall, China is moving from a manufacturing boom to a consumption boom. Very similar to the manufacturing boom, this trend is likely to sustain in the coming decade.Alibaba Group and BABA stock are well-positioned to benefit from the boom with a healthy growth in active users. Koala Acquisition a Alibaba Stock Upside CatalystThere are reports that Alibaba Group will be buying NetEase's (NASDAQ:NTES) cross border e-commerce unit for $2 billion.The acquisition can be a potential stock upside catalyst. Koala is focused on imported goods and the market for foreign luxury brands is expanding in China.I must mention here that "Tmall Luxury Pavilion" has already been attracting premium global brands. As an example, Michael Kors announced that it will open its digital flagship store on Tmall. Therefore, Koala will serve as a growth catalyst for luxury and imported brands offering to consumers.According to Bain & Capital, China's luxury good market posted growth of 20% for 2016-17 and 2017-18. Further, the report suggests that overseas purchases will continue to surge in the coming years. As I mentioned earlier, a possibly stronger Yuan will also contribute to demand for overseas goods. The acquisition would therefore make sense for Alibaba Group.It is worth noting that JD.com (NASDAQ:JD) has also been focusing on exclusive agreements with international brands. In the second quarter, Prada Group, the Italian fashion house, agreed to open a first-party flagship stores on JD.com. There have been several other flagship store agreements with premium brands.The key is, the retail boom will drive interest from national and international brands. From the perspective of Alibaba, this will translate into higher revenue, EBITDA margin and free cash flows. BABA Has Strong Growth, Attractive ValuationsAlibaba stock will continue to report robust growth with sustained upside in core commerce and with financial muscles for inorganic growth. My view is underscored by the point that analyst estimates suggest average 5-year earnings growth at 22.1%.Considering the potential growth trajectory, BABA stock is trading at attractive valuations. The stock currently trades at a forward PE of 20.6 as compared to a forward PE of 28.45 for JD.com.I therefore expect the stock to trend higher in the coming quarters. Final Words on BABA StockAlibaba is an attractive stock for the long-term considering the growth in China's retail sector. Besides having a leading market share, Alibaba has the financial flexibility to pursue organic and inorganic growth.Core commerce will continue to drive revenue and EBITDA. Further, investment in cloud computing is a potential long-term value creator.Alibaba will also create shareholder value through share repurchase and potential dividends. Robust free cash flows provide the company with the required liquidity.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Alibaba Stock Well-Positioned to Benefit From Chinaas Consumption Boom appeared first on InvestorPlace.
In a world of large, faceless corporations, it can sometimes be nice to think of family values in business. What are the biggest family-owned businesses around?
In general, equity markets represent investor confidence. Since late July, most tech stocks have been declining amidst the bearish sentiment in the global and United States markets. It is no secret that the Chinese economy is beginning to feel the effects of the ongoing trade war. Other global powers, such as Japan, the United Kingdom and the European Union, led by Germany and France, are also showing signs of a slowdown. And earlier in the week, Argentina spooked the Latin American markets when its currency and equity markets lost a third of their value overnight.In other words, unless we have a swift resolution on the trade war front, spending by the U.S. consumer may not be enough to improve economic prospects globally.Therefore, investors are wondering what may be next for many of the tech stocks in their portfolios. Today, I'd like to discuss three tech stocks to avoid in the second half of August and possibly in September, too. These stocks are Baidu (NASDAQ:BIDU), Roku (NASDAQ:ROKU) and Tesla (NASDAQ:TSLA).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Cyclical Stocks to Buy (or Sell) Now Investors may consider waiting on the sidelines if they do not currently have any positions open in these tech stocks. If they already own shares, they may either consider taking some money off the table during this market bounce or hedging their positions. As for hedging strategies, covered calls or put spreads with Sep 20 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility.With all of that in mind, let's dive a little deeper into each of these stocks. Stocks to Sell: Baidu (BIDU)Source: testing / Shutterstock.com Notable Risks: Valuation, questions about growth, trade wars and broader tech market weaknessPossible Price Range: $85-$105During the past year, the BIDU stock price is down 55%. On Sep. 21, 2018, the shares saw a 52-week high of $234.88. Now, Baidu stock is hovering around $95. Clearly, the bears have taken control of the tape.What is the main reason for the deterioration of Baidu's market cap? Investors fear that the company's growth narrative does not hold any more.BIDU has two sources of revenue: * Internet advertising business (which is at the core); and * Income from majority ownership in iQiyi (NASDAQ:IQ)The tech market in China has grown exponentially in the last decade. And Baidu stock has been able to ride that wave. Baidu has over 70% of the Chinese online search market share. Until about a year ago, this leadership has meant growing advertising revenues and solid margins.However, that is not the case anymore. Competitors like Alibaba (NYSE:BABA) and Tencent (OTCMKTS:TCEHY) have been pressuring its business model and ad revenues. Many Chinese consumers are using apps that bypass browsers and thus Baidu's search engine. In other words, BIDU stock's desktop search business is being disrupted or even displaced.Wall Street is not sure if management knows how to go after the challenge to Baidu's core business. The company has increased spending to attract more advertisers, which in turn has affected margins. In other words, the company spends a lot of cash to make some money.Furthermore, as the Chinese economy slows down, all these companies chase the same advertisers, who have been scaling down ad budgets.The second factor adversely affecting Baidu's top-line growth comes from its ownership of iQiyi, the so-called Netflix (NASDAQ:NFLX) of China. Baidu still owns roughly two-thirds of iQiyi, so IQ's results and its growth are reflected in Baidu's consolidated numbers. And iQiyi stock is not making any money at this point either.Management at iQiyi has underlined that as the company further invests in technology and builds content, the cost of revenue would be high -- therefore the company will not be profitable any time soon.And when you add the uncertainty around trade wars, it may just not be fashionable to buy BIDU shares in 2019. Overall, the bull thesis supporting BIDU stock is falling apart. It would be important to analyze the next earnings report expected in November to see if Baidu stock has a better investment proposition for long-term investors.From a time and price analysis perspective, I'd expect BIDU stock to reach a 52-week low around Sept. 21. Until then, I'd not get too bullish on Baidu shares. Roku (ROKU)Source: JHVEPhoto / Shutterstock.com Notable Risks: Profit-taking, rich valuation and broader tech market weaknessPossible Price Range: $135-$155ROKU stock has been on a tear this year. Year-to-date, Roku shares are up 135%. However, it might now be time for investors to become cautious.With a market cap of $11.7 billion, Roku stock is the largest over-the-top streaming content provider in the U.S. On Sept. 17, 2018, ROKU stock hit a 52-week high at $198.23.U.S. consumers are fast moving from traditional pay-TV services to streaming delivery services. Advertisers are following those viewers. That's reason number one why, longer-term, I would not bet against Roku shares whose revenue increasingly comes from advertising. However, there is likely to be some further profit-taking in ROKU stock in the next few weeks.Roku has been a pioneer in streaming video gadgets. The company's revenue can be divided into two segments: "Player" which represents sales of its digital media boxes and "Platform" which includes advertising sales, licensing and other non-hardware revenue sources.At present, Roku and Hulu, the video streaming service that is majority-owned by Disney (NYSE:DIS), are the market leaders in over-the-top advertising. OTT ads are shown on a TV screen through a smart TV or streaming device.Roku is a growth stock, but it's also a speculative one. Long-term ROKU bulls happily highlight many of Roku's competitive advantages, starting with the platform's first-mover advantage in OTT advertising, share of smart TVs sold in the U.S. and projected annual growth of over 30% in the rapidly expanding over-the-top streaming market.On the other side of the coin are the nervous investors and short-sellers who are looking for any excuse to short ROKU stock. If Roku cannot keep up with the aggressive growth assumptions, then shareholders may become more concerned with low profits as well as its margins and the stock price could easily suffer. In other words, could ROKU stock price be getting ahead of itself? * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Therefore, I'd encourage retail investors to exercise caution with Roku stock until the next earnings report, expected in October. Tesla (TSLA)Source: Sheila Fitzgerald / Shutterstock.com Notable Risks: Fundamentals, profit-taking, trade wars and broader tech market weaknessPossible Price Range: $180-$230When Tesla released worse-than-expected second-quarter 2019 earnings on July 24, many investors possibly ended up with more questions than answers on what to expect from Tesla stock for the rest of the year.Before reporting earnings, TSLA stock closed at $264.88. The next morning it opened at $234.50. Now Tesla stock price is hovering around the $220-$225 range.Investors usually can get a sense of any current and future problems by looking at operational and market performance as well as at basic financial metrics and cash flow. In Tesla's case, we may have a combination of signs of difficulty.The past year has seen the demand for electric vehicles decline in the U.S. And Tesla's Model 3 sales have not been at the levels expected.Tesla's Q2 results showed that the gross margin of its automotive segment is declining. Last quarter, it was 20.2%. In Q4 and Q3 of 2018, the metric was 24.3% and 25.8%, respectively.The main reason behind the decline of the company's gross margin is that Tesla's sales mix is increasingly shifting from higher-priced S and X models to the Model 3. Model 3, which is priced at $35,000 is an entry-level car that carries lower margins.As we discuss Tesla's problems, we have to mention that the auto sector is susceptible to the trade-war risk. As the demand in the U.S. declines, Tesla needs to achieve increased sales numbers from overseas, namely China, the largest electric vehicle market in the world.In late 2017, Tesla and the Chinese government agreed that the company would manufacture cars in China, and build and own a factory in Shanghai.TSLA is continuing to build its manufacturing plant in Shanghai. However, the details as to when actual production will begin at the plant is sketchy. Tesla is yet to release definite dates and production goals for the plant.At this point, TSLA stock has had several months of poor performance, both in terms of metrics and the stock price. Therefore, before committing any capital into the shares, I'd like to see the next earnings statement, expected in late October. By then, we might even have an earnings warning statement, which would send the stock even further south.At this point, Tesla bears have the upper hand and I'd consider investing in TSLA stock as a speculative bet.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Tech Stocks to Avoid (or Sell) for Now appeared first on InvestorPlace.
Chinese internet search giant Baidu (NASDAQ:BIDU) is set to report second-quarter numbers after today's bell and I'm not too optimistic on BIDU stock ahead of the print.Source: StreetVJ / Shutterstock.com From a high-level perspective, it does appear that China's economy is rebounding. Economic data coming out of China has meaningfully improved over the past several months. Meanwhile, Chinese tech heavyweights Alibaba (NYSE:BABA), JD.Com (NASDAQ:JD) and Tencent (OTCMKTS:TCEHY) all recently reported strong quarterly numbers.But two of those three companies -- JD and Tencent -- said on their earnings calls that the ad market in China remains incredibly challenging. Tencent's ad business actually slowed this quarter. Baidu gets most of its revenue from its ad business. As such, with the broad read from recent reports being that China's ad business remains under tremendous pressure, the chance of Baidu reporting favorable numbers is not great.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's why I'm avoiding BIDU stock this earnings season. This stock is in a big secular decline because its numbers have consistently disappointed investors. Those numbers will likely continue to disappoint for the foreseeable future. Thus, while Baidu stock is pretty cheap, it's still too risky to try and catch this falling knife.The big implication here? Stay until away until there's reason to come back. Baidu's Numbers Likely Won't Be GoodThe big reason to avoid BIDU stock ahead of the Q2 print is because it looks like the numbers won't be that good. * 7 Safe Dividend Stocks for Investors to Buy Right Now Baidu has a lot of moving parts. But, at its core, this is the Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) of China. As such, Baidu is an advertising business. Specifically, this is a search advertising business. But, the whole digital ad market in China -- and specifically the search ad market -- is dramatically slowing, mostly because it's oversaturated and because the entire economy is slowing.In these slowing markets, Baidu is also losing share. This share erosion has two drivers. One, alternative ad formats are more compelling (like in-feed and social). Two, Baidu is staring at elevated competition in the search game.Net net, Baidu is losing share in a slowing market. This has caused core revenue growth rates to slow from 50%-plus a few years ago, to under 20% last quarter. At the same time, Baidu is aggressively investing in alternative growth arenas to re-stimulate growth. This big spend is killing margins. Slowing growth plus falling margins equals tumbling profits. That's exactly what's happening. BIDU stock's earnings per share is expected to be cut in half this year.It does not appear that the Q2 print will have anything in it that will change the course of this downbeat narrative. JD said in its recent conference call that the China ad market remains under great pressure. Tencent had a similar tone in its conference call, citing a challenging digital ad macro environment as the reason why their digital ad business slowed from 25% growth in Q1 to 16% growth in Q2.If JD and Tencent -- two companies whose ad businesses have been relatively strong -- struggled this past quarter on the ad front, then it's pretty likely that Baidu -- a company whose ad business has been in free-fall -- struggled too. Continued bad numbers from Baidu won't be enough to shake BIDU stock out of its multi-quarter downtrend. Baidu Stock Is Cheap -- But the Worst May Not Be OverZooming out, Baidu stock is unequivocally very cheap in the big picture.Revenue growth trends are falling flat this year. But they will probably improve over the next several years as Baidu adapts its ad business to be more relevant in China's double-digit growth ad market. Thus, Baidu should be able to start stabilizing market share over the next several years, which should lead to renewed and consistent double-digit revenue growth. Revenue growth consistency will allow the company to pull back on big growth-related investments, so margins should improve too.Realistically, Baidu could grow revenues at a roughly 10% rate from 2019 into 2025, while adjusted operating margins could bounce back to 20% (where they were in 2018). Those assumptions make $15 in EPS seem doable for Baidu by 2025. Based on a market average 16-forward multiple, that implies a 2024 price target for BIDU stock of $240. Discounted back by 10% per year, that equates to a 2019 price target of roughly $150.That's more than 50% higher than where Baidu stock trades today. Thus, BIDU stock is undervalued.But, it will remain undervalued until investors have reason to believe that Baidu will stabilize its share in China's slowing digital ad market. That won't happen this quarter. As such, for the foreseeable future, BIDU stock will likely remain undervalued. Bottom Line on BIDU StockAt some point, Baidu stock will stage a huge, rip-your-face-off rally. But not today. That rally won't happen until Baidu proves that it can stabilize share in the slowing China digital ad market, and thereby, stabilize margins and profits. Baidu won't prove that this quarter. Until it does, it's best to stay away from this falling knife.As of this writing, Luke Lango was long BABA, JD and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Baidu Stock Looks Risky Ahead of Earnings appeared first on InvestorPlace.
If you want to invest with a clean conscience, look no further. RBC Capital has just released a report revealing its favorite stocks for sustainable investing. These are stocks that the firm rates Outperform (the equivalent of Buy) according to its traditional fundamental financial analysis - and that score highly on key environmental, social and governance (ESG) factors.ESG spans a wide array of factors, from being environmentally sustainable and protecting consumers to boasting gender diversity in the boardroom and ensuring equal pay for employees, and many more."It is thought that ESG factors can be strong signals for future opportunities as well as potential risks including share price volatility, earnings stability and issues management," write RBC Capital analysts, adding, "incorporating environmental, social and governance factors alongside traditional financial analysis can be additive as indicators of corporate performance."Indeed, a Morningstar study of its ESG indexes released earlier this year showed that sustainable investing pays off. "We found that 41 of the 56 Morningstar's ESG indexes outperformed their non-ESG equivalents (73%) since inception," it says. "... Morningstar ESG indexes tend to select companies that are less volatile and possess stronger competitive advantages and healthier balance sheets than their non-ESG equivalents."Here are five of the best ESG stocks on RBC Capital's "Global ESG Best Ideas List." Each of the stocks not only gets RBC's seal of approval, but sports a Moderate Buy or Strong Buy consensus rating from analysts tracked by TipRanks. SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks
Baidu's earnings this evening could be pivotal for the firm as investors evaluate whether Baidu can revitalize grow and remain profitable.