AppZen uses artificial intelligence to audit business expenses. AppZen Co-founder & CEO Anant Kale joins The King's College Chair of the Program in Business and Finance Brian Brenberg and Yahoo Finance's Julie Hyman and Adam Shapiro.
AppZen uses artificial intelligence to audit business expenses. AppZen Co-founder & CEO Anant Kale joins The King's College Chair of the Program in Business and Finance Brian Brenberg and Yahoo Finance's Julie Hyman and Adam Shapiro.
Whenever we mention to people that we moved from California to Reno, Nev., they all say it makes sense because we get to avoid the high state income tax in California. California has a reputation for high taxes. California is shown in the darkest color.
The great news about the pent-up demand rally? While these stocks have been creeping up they are now going to explode higher.
Investors know that the key to profits is in the return – and that means, a willingness to shoulder risk. Risk is relative, of course, and tends to run hand-in-hand with the return potential. Find a stock with a giant return potential, and chances are, you’ve also found one with a higher risk profile. The highest returns usually come along with the lowest share prices. After all, when a stock is priced for just pennies, even a small gain in share price translates into a huge return. Which means that penny stocks – these days, usually seen as those equities priced under $5 – combine a perfect storm of market attractions: low share price, high return potential, and higher than usual risk. Using the TipRanks database, we’ve pulled up details on three compelling stocks that fit this profile of low share price and huge upside potential, 100% or more, according to Wall Street analysts. Cinedigm Corporation (CIDM)We’ll start with Cinedigm, the LA-based entertainment company specializing in content marketing and distribution along with digital cinema. Cinedigm is an independent studio for film, TV, and digital production. The company distributes digital media across a variety of content networks.Back in June, CIDM shares showed a sharp spike when the company announced its partnership with Vewd, the world’s largest OTT software provider for Smart TVs, a growing segment of the digital viewing world. Customers are shifting away from cable TV and more and more toward streaming. A working relationship with a Smart TV software company would give Cinedigm access to Vewd’s installed customer base – more than 300 million Smart TV sets. Revenues in 2020 have been fairly stable. For Q1, Q2, and Q3, the top line came in at $7.74 million, $6.02 million, and $7.18 million. The Q3 number holds the middle spot in that range. Earnings, however, missed expectations. At a 23-cent per share loss, the EPS came in 17-cents below expectations. On a positive note, CIDM reported a year-over-year sales increase in its core business of ad-based video on demand of 27%.Covering the stock for Benchmark, 5-star analyst Daniel Kurnos points out a few reasons why he thinks Cinedigm "is becoming a much more intriguing investment proposition, particularly at these levels: 1) Organic growth is still building, with the legacy channel lineup strategy on pace to achieve the 30 channel milestone 12 months ahead of schedule; 2) A new highly accretive, streaming roll-up strategy is emerging that Cinedigm is in the best position to execute with minimal competition; 3) No credence or value is being given any more to Cinedigm’s digital projector inventory or Starrise stake, both of which should ultimately benefit in a post-COVID world."In line with his bullish stance, Kurnos rates CIDM a Buy, and his $3.50 price target implies room for a stunning 573% upside potential in the next 12 months. (To watch Kurnos’s track record, click here)Currently, CIDM has 2 reviews on record, making the stock a Moderate Buy. The shares are selling for 53 cents, and the $2.75 average price target suggests an impressive 418% upside on the one-year time horizon. (See CIDM stock analysis on TipRanks)Kubient (KBNT)Content distribution relies heavily on marketing and monetization for its profits, and that’s where Kubient comes in. This cloud software company offers an ad platform that connects publishers and marketing directly with their audiences. The company works with audience automation to collect data, connect brands, and create a transparent ad environment across digital channels.Kubient is a new company in the stock market, having held its IPO just this past August. The initial offering brought in $12.5 million gross, selling 2.5 million shares at $5 each. During those first few months of public trading, which included the end of the calendar third quarter, Kubient reported some solid Q3 revenue results. The top line rose from $92,000 in Q3 to $280,000. The year-over-year gain was even more impressive, reaching 400%.Maxim analyst Jack Vander Aarde believes that Kubient holds a strong position to bring real changes to its industry. The 5-star analyst writes of the company’s potential, “KBNT’s core offering, Audience Cloud, seeks to disrupt the $325B+ digital advertising market and address the industry’s current pain points. In 2019, advertisers lost ~$42B to ad fraud, which is forecast to grow into a $100B problem by 2023, but Kubient has a potential game-changing solution called KAI [...] We project 2021 revenue of $6.6M, up 211% y/y, and 2022 revenue of $17.4M, up 164% y/y. The business is highly scalable and should unlock significant operating leverage as revenue grows.”To this end, Vander Aarde rates KBNT a Buy along with a $10 price target. This figure suggests 154% upside growth from the current share price of $4. (To watch Vander Aarde’s track record, click here)Orion Group Holdings (ORN)The construction industry brings to mind home construction and hard hats putting up high rises, and that’s the usual experience most of us have. But Orion Group Holdings occupies a specialty niche in the industry, focusing on civil marine construction, industry, and commercial concrete. The company owns subsidiaries that each concentrate on a different niche, allowing them to hone their skills in some vital – even if less recognized – sectors of the construction world.The company’s share price through this year shows both its resilience and the importance of the construction industry to the economy. ORN shares fell sharply in mid-winter, when the coronavirus hit hard at the economy by forcing lockdown policies – but it has regained ground as the economy has reopened, and has recouped more than half of its losses from that time. Overall, however, ORN is still down ~20% year-to-date.Orion’s quarterly fiscal results also show the tale. The company registered a sequential loss in Q1, but has shown gains since then. For the calendar third quarter, ORN reported $189 million at the top line. EPS has performed even better this year, beating the forecast in Q1 when a loss was expected and the actual result was an 8-cent per share profit – and spiking to 23 cents per share, or 187% above the forecast, in Q3.In a positive development heading into the end of the year, in November Orion’s concrete segment won three major contracts in Texas. The projects are located in the Houston area, and total some $52 million.Noble analyst Poe Fratt feels that this stock has room for growth, and promises returns for investors. He writes, “[We] believe that the current stock price doesn't fairly reflect the ISG restructuring improvements and the positive outlook. A combination of above-average backlog, improved profitability, lower financial leverage and attractive valuation of 2.8x 2020E EBITDA and 2.4x 2021E EBITDA supports our view that the risk/reward profile remains compelling.”Fratt’s $8.25 price target implies a 101% upside for the year ahead. He rates the stock as Outperform (i.e. Buy). (To watch Fratt’s track record, click here)The two recent Buy ratings on ORN make the analyst consensus view a Moderate Buy. The average price target of $8.13 suggests a 100% growth potential for the next year. Shares are currently selling for $4.08. (See ORN stock analysis on TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
There should be nothing controversial about canceling student debt
At least 10 analysts have raised their price targets on Snowflake. The challenge for the Street is valuation, as the company is easily the world’s most expensive software company.
CNBC's Jim Cramer shared his first thoughts on the market Thursday, covering an upgrade on Tesla Inc (NASDAQ: TSLA) and the acquisition of Slack Technologies (NYSE: WORK) by Salesforce.com Inc (NYSE: CRM).Cramer on Tesla: Goldman Sachs upgraded shares of Tesla from Neutral to Buy and raised the price target from $455 to $780."I felt the guy's pain," Cramer said on upgrading shares.The Goldman Sachs price target is the highest of all analysts right now. It comes after the bank downgraded Tesla in June on demand concerns. The bank said Wednesday they were "incorrect."Cramer called the analyst note a "tough situation to upgrade up here."Related Link: Tesla's Valuation Easier To Justify As Tech Company, Not AutoCramer on Salesforce: Cramer shared his thoughts on Salesforce and the stock falling off after announcing its $27 billion acquisition of Slack."Slack had a great quarter, took in a lot of customers," Cramer said.He said Salesforce can now take on Microsoft Corporation (NASDAQ: MSFT) with the deal: I think you have to do it."Cramer said this deal is a way for Salesforce to become a $500 billion company. He said Salesforce can help Slack do three times the amount of sales it's currently doing.Slack now has a bundling case against Microsoft, said Cramer, and he's "very surprised people aren't even looking at how well Slack is doing."Price Action: Shares of Tesla are up 4% to $590.71 in pre-market trading Thursday. Salesforce shares are up 2% to $225.96.See more from Benzinga * Click here for options trades from Benzinga * Why Sony's PlayStation 5 Is Winning What Could Be The Last Console War * Discovery+ Streaming Platform Could Win Big With Strong Brand, Content Library(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
As the Biden administration continues to consider student loan forgiveness, Yahoo Finance spoke with multiple experts to understand how much forgiveness could help.
The Dow Jones rallied after President-elect Joe Biden said he will not immediately remove the tariffs imposed on China by President Donald Trump.
(Bloomberg) -- Since taking the wheel at Nikola Corp. in September, Mark Russell has been adamant the electric-truck startup doesn’t need a deal with General Motors Co. to survive. Now he has to prove it -- and fast.On Monday, the two companies unveiled a deal that is, in the eyes of many investors, more akin to a standard supply contract than the strategic partnership Nikola’s founder and ex-Chairman Trevor Milton envisioned when he cut a tentative agreement three months ago -- days before resigning from the company under a cloud.The agreement is, in essence, a repudiation of Milton’s grand ambitions and sets the company on a path more in line with Chief Executive Officer Russell’s sure-and-steady style: tapping GM’s expertise in hydrogen fuel cells and possibly batteries for its planned line of semis. The sexiest parts of the original pact were absent -- a GM stake in Nikola, and a GM-built pickup truck called the Nikola Badger -- as was any praise from GM CEO Mary Barra, who had previously called Nikola “an industry-leading disrupter.”Investors were disappointed to see those elements disappear and they dumped Nikola shares frantically on Monday, extending their plunge from a June peak to almost 75%. Now the 58-year-old Russell, described by friends as unassuming but confident, must regain the market’s trust by showing Nikola can actually produce vehicles by executing on its vision with the tools already in place.“The revised GM deal makes much more sense for Nikola long term,” the CEO said in an emailed statement.Nikola shares pared an early decline of as much as 18%, trading down 15% to $17.42 as of 10:45 a.m. in New York on Tuesday. Selling restrictions on certain Nikola insiders and investors ended on Monday, freeing up a large chunk of shares of its float for public trading that may put further pressure on the already depressed shares. A block of shares equivalent to 1.9% of the float traded at the 9:30 a.m. market opening.‘Mr. Detail’Russell was thrust into the spotlight when Milton bowed out after a short seller accused him and the company of deception. Milton and the company have denied misleading investors, but Nikola’s stock price has yet to recover from the blow. The no-nonsense Russell, who became CEO in June and took full directional control of the company three months later, now has to turn Milton’s dreams of a hydrogen-powered future into a real business.Despite having little of its own technology, Nikola went public in a June reverse merger after a $700 million deal with VectoIQ, a blank check company started by former GM Vice Chairman Steve Girsky. Buoyed by a wave of investment in electric vehicle startups and Milton’s cheerleading, its valuation soared as high as $28.7 billion at one point -- briefly hovering above that of Ford Motor Co.Russell, who speaks in measured tones and eschews publicity, is a study in contrasts with the outspoken Milton, who bragged the Badger would outsell the Ford F-150, hammed it up on stage at Nikola events and was an avid user of social media -- before deleting his Twitter and Instagram accounts. Russell is a process-oriented manager who earned his stripes in Ohio’s gritty steel business. Milton likes flying small planes while Russell prefers nature hikes. He isn’t on Twitter, Instagram or even LinkedIn.“Mark is ‘Mr. Detail’ who knows all the automotive suppliers,” said John Tumazos, who runs Very Independent Research and has been following Russell’s career for more than a decade. “He is not visionary. He’s the opposite of what Trevor is viewed as.”To deliver its promise to shareholders and start producing trucks, Russell is trying to leverage Nikola’s technology-sharing relationships with GM and two European industrial powerhouses: German partner Robert Bosch Gmbh and Italy-based CNH Industrial NV’s Iveco unit. Russell also is hoping to find a partner to create a hydrogen fueling network for its big rigs.Arizona FactoryA battery-electric semi truck is due to go in production as part of a joint venture with Iveco by the end of next year in Ulm, Germany. Nikola also has a factory under construction in Coolidge, Arizona, where it hopes to build a fuel-cell semi truck by the end of 2023. To power those trucks, the Phoenix-based company hopes to move forward on building hydrogen fueling stations across North America, with ground-breaking on the first sites scheduled for the second quarter.When Russell was promoted to the role of CEO, he took over a company that had only a few of the pieces in place it needed to execute on all of its plans. But he was happy to take a back seat to Milton, the driving force behind Nikola’s aggressive strategy.Now, with investors raising questions about the company’s ability to deliver and the relationship with GM under scrutiny, Russell is focusing on a few core priorities -- even if that means abandoning a high-profile retail market vehicle like the Badger.“You might be amazed at how much my priorities and my focus is unchanged through all of the interesting last, you know, couple of months,” Russell said in an October interview.Russell joined Nikola in early 2019, six months after stepping down as president and chief operating officer of steel products manufacturer and automotive supplier Worthington Industries Inc. No official reason was given for his decision to leave that Columbus, Ohio-based company at age 55, but it came after Russell realized he would be passed over for the CEO role in favor of Andy Rose, who then served as chief financial officer, according to people familiar with the matter.Worthington declined to comment on Russell’s departure but Rose praised his former colleague in a statement.“Mark is very entrepreneurial. He made a significant impact on Worthington over the 11 years he spent with us,” he said.Reunion With MiltonRussell’s arrival at Nikola marked something of a reunion with Milton, who briefly worked at Worthington for less than a year after it acquired one of his earlier start-ups. Milton left in 2014 to found Nikola -- but got a subsequent $2 million seed investment from Worthington that has become very valuable to a company with significant operating losses and falling sales.Russell was elevated to Nikola’s CEO role at the urging of several key pre-IPO investors, including Fidelity Investments, according to people familiar with the decision. The investors pushed to replace Milton with Russell in that job as part of changes that included removing Milton’s father from the board, according to the people, who asked not to be named because the discussions were private.While they liked Milton’s vision, the investors saw Russell as a better day-to-day operator and custodian of their cash, the people said. That view of Russell as a cool-headed manager is shared by some analysts on Wall Street.“We view Mark as a tactician and more of a blocking-and-tackling CEO, which is exactly what Nikola needs at this critical juncture,” Wedbush analyst Dan Ives, who has an underperform rating on the stock, said in a recent email before Monday’s announcement.Mixing FaithRussell’s background is largely in metals. Prior to joining Worthington’s Steel unit in 2007, he ran an aluminum products acquisition group for three years. He was also at the helm of the now-defunct aluminum extrusion company Indalex Inc. between 2002 and 2004.“He was a breath of fresh air, really smart, really good and moral. If he said the wall is black, it was black. There’s no gray there,” Peter Karmanos, a Worthington Board member since 1997 said in an interview.Like Milton, Russell was born in Utah. He earned an integrated studies degree from Weber State University in Ogden, Utah, and a law degree from Brigham Young University’s J. Reuben Clark Law School. He practiced law for eight years before joining an aluminum company.Russell is deeply committed to his faith in all aspects of his life, according to Brad Agle, a professor of ethics and leadership at Brigham Young University’s Marriott School of Business. The pair first met in Pittsburgh in the late 1990s at a religious congregation near Pittsburgh and have remained close friends ever since, Agle said.Russell has rarely missed a day of reading the Bible or other scriptures since he was 16. Once on an international flight, he realized he hadn’t read any religious passages that day, so Russell walked down the aisles asking aloud if anyone had a book of scriptures he could borrow.Lockup ExtensionRussell’s stake in the company is valued at about $514 million, including options, according to Bloomberg calculations. He owns the shares directly and through an entity called T&M Residual, which Russell and Milton jointly own.Russell manages the T&M shares independent of Nikola, the company said. He recently agreed, along with several other unspecified strategic shareholders, to extend the lockup on those shares, it said.The CEO has been careful in recent weeks to avoid commenting about the tenure or current views of Milton, who remains the largest single investor in Nikola and whom Russell lauded a year ago when he called working with Milton “a dream come true.”Russell has said he was instrumental in getting Worthington to make its investment in Nikola and remains a true believer in its mission.“There’s a chance to help make the planet cleaner and more sustainable by solving one of the toughest nuts to crack here, which is long-haul, heavy transport,” Russell said in the October interview. “That’s why I helped convince Worthington to be the seed investor and to get this thing started with Trevor years ago.”(Corrects spelling of John Tumazos’s last name in 10th paragaph of story first published on Dec. 1. An earlier version of this story corrected the spelling of Steve Girsky.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Playboy continues its transformation as it heads down the road of public company life.
Ryanair said it would buy 75 jets in addition to the 135 it had ordered, and will take delivery of the planes faster than it had planned.
Analysts favor companies that supply EV manufacturers or develop technology to support infrastructure and autonomous driving.
Mortgage rates, yet again, fell to the lowest level on record. The 30-year fixed-rate mortgage averaged 2.71% for the week ending Dec. 3, down a basis point from the week prior, Freddie Mac (FMCC)reported Thursday. This represents the 14th record low that Freddie Mac has reported in 2020.
We all want to be rid of the coronavirus, of course – and when it fades, the general economy is expected to bounce back. Getting to specifics, Credit Suisse Chief U.S. Equity Strategist Jonathan Golub sees economic momentum moderating post-pandemic, and sets a one-year target for the S&P 500 of 4,050, or 10.5% above current levels.Considering what investors can expect, Golub writes, “As we look toward 2022, the virus will be a fading memory, the economy robust, but decelerating, the yield curve steeper and volatility lower, and the rotation into cyclical largely behind us.”In the meantime, investors want to know where to put their money now – which means Wall Street’s analysts are also busy finding the stocks that are primed for gains in the next 12 months. Using TipRanks database, we’ve pulled the details on three stocks that combine a Strong Buy consensus rating with a Perfect 10 from the Smart Score -- a single-digit amalgamated score based on the collated data from TipRanks. These are stocks that have impressed the analysts – and show strong signs of near- to mid-term gains based on the data analysis algorithms.Nomad Foods (NOMD)We'll start in the food industry, the basic necessity we cannot do without. Nomad Foods is a UK-based distributor in the frozen foods niche, which has become a vital part of the modern food chain. Frozen foods offer variety, freshness, and relatively easy storage – all of which has brought Nomad over $2.4 billion in annual revenues.The COVID crisis prompted the public to eat at home more, and that was good for the grocery industry generally and frozen foods specifically. The company’s Q3 earnings, at 35 cents per share, are up 25% from one year ago. The company posted 576 million Euros (US$685 million) on the top line, implying a 12% yoy growth. Writing from BTIG, 5-star analyst Peter Saleh says, “[We] believe the company will continue to build on its lead in Western Europe's frozen food market. We expect recent lock downs could fuel a resurgence in organic sales growth as it did in 2Q20 and to a lesser extent in 3Q20. Looking ahead, we expect the company to lean into its plant-based offering to attract new customers while investing in marketing initiatives to retain customers that it gained during the pandemic.”Saleh rates NOMD a Buy, and sets a $30 price target to indicate his belief in a 26% upside for the next year. (To watch Saleh’s track record, click here)Overall, Nomad has 6 recent reviews, breaking down in a 5-to-1 split of Buy versus Hold. This makes the analyst consensus view a Strong Buy. The average price target is $28.33, for a 19% one-year upside from the current share price of $23.84. (See NOMD stock analysis on TipRanks)Rackspace Technology (RXT)Rackspace Technology is a cloud computing company out of Texas, offering data management and data security, across applications and at any scale. Rackspace’s customer base is global, and the company has offices in Australia, Singapore, India, Germany, and the UK.This cloud-tech innovator is newcomer in the stock markets, having held its IPO just this past August. The company sold 33.5 million shares at $21 each, the low end of the target range, and has been volatile since.The third quarter results were somewhat mixed for RXT. The company reported a 13% year-over-year gain in revenue, to $682 million, with a quarterly record of $315 million in bookings – an impressive 64% yoy gain. Net income, however, registered a 54-cent per share loss. That loss came even as Core Revenue – Multicloud Services and Apps & Cross Platform combined – gained 18% compared to the year-ago quarter.Analysts are willing, for now, to forgive Rackspace’s slightly shaky entry into the stock markets. Covering this stock for Deutsche Bank, 5-star analyst Bryan Keane notes the company’s strong Core Revenue performance and adds, “…RXT delivered continued broad-based bookings momentum and further expansion of the pipeline (exceeding its sales target into Oct). As a result, RXT raised FY20 core pro-forma revenue growth guidance by ~50bps to ~14-15% implying an estimated ~2ppts of pro-forma organic growth acceleration at the mid-point into 4Q20 which we believe could have modest potential for upside based on recent bookings and retention trends.”To this end, Keane rates RXT a Buy, and his $26 price target implies a solid 45% one-year upside. (To watch Keane’s track record, click here)The Deutsche Bank view is in-line with Wall Street here; the analyst consensus on RXT is a unanimous Strong Buy, based on 5 positive reviews. The stock is selling for $17.85 and its $28 average price target suggests it has a 57% upside on the one-year time horizon. (See RXT stock analysis on TipRanks)EQT Corporation (EQT)Last but not least is EQT Corporation, an energy player in the natural gas market. In fact, it’s the largest natural gas producer in the US, with operations in the Appalachian Basin in the states of Ohio, West Virginia, and Pennsylvania. The company holds lease and exploration rights more than 1 million acres, and has nearly 20 trillion cubic feet in proven reserves.Unfortunately, low energy prices have taken a toll here. Except for 1Q20, EQT has been posting net losses since the second quarter of last year. The most recent report, for Q3 2020, showed a net EPS loss of 15 cents per share. While the loss was less than expected by the analysts, it was deeper than the year-ago quarter.Despite the recurring quarterly losses, EQT shares are up an impressive 34% so far this year – and there are still 5 weeks left. The gains have completely erased losses taken at the start of the corona crisis, and reflect investor confidence in the gas industry as a vital utility. Among the bulls is Wells Fargo analyst Tom Hughes who wrote, "While northeast gas differentials continue to struggle in the shoulder season and weighed on 4Q20 guidance for realizations ahead of a potentially bullish backdrop for the commodity in 2021, EQT’s solid operational update for 3Q20 should help buoy investor confidence that the operational improvements at EQT since Mr. Rice and his team took over last year still have momentum.""EQT continues to work on its operating and financial metrics ahead of what should hopefully be a constructive macro environment," the analyst concluded.Accordingly, Hughes rates EQT shares an Overweight (i.e. Buy), and sets a price target of $21. This represents a 31% upside from current levels. (To watch Hughes’ track record, click here)EQT is another company with a unanimous Strong Buy analyst consensus rating, this one based on 6 positive reviews. The stock is trading now for $14.49, and its $19.25 average price target suggests ~33% one-year upside potential. (See EQT stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Covid has disrupted the global economy, but ZM, AMZN, NVDA and AMD stocks are among 24 fastest-growing companies expecting up to 711% EPS growth in 2020.
It was obvious that the Organization of the Petroleum Exporting Countries and their allies, collectively known as OPEC+, would have a difficult time reaching a decision on oil production levels in the new year when the group postponed its meeting this week, but the big surprise may be that oil prices haven’t plunged, even as news emerged that the producers have agreed to increase output at the start of the year.
Splunk stock crashed Thursday following a third-quarter earnings report late Wednesday that was full of disappointments for the data analytics company, as big deals failed to close.
Cruise lines were some of the hardest hit stocks in the market during the pandemic sell-off in early 2020, but they've been some of the top performers since the market bottomed.Cruises won't be resuming until 2021, but one analyst raised his price targets for cruise stocks based on increasing optimism about 2022 and beyond.The Analyst: Bank of America analyst Andrew Didora made the following price target adjustments on Thursday: * Carnival Corp (NYSE: CCL) reiterated a Neutral rating, price target raised from $15 to $22. * Royal Caribbean Cruises Ltd (NYSE: RCL), reiterated Neutral rating, price target raised from $34 to $60. * Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) reiterated Underperform rating, price target raised from $18 to $25. * Related Link: Cruise Stocks Sink After CDC Lifts Ban, Analyst Says New Guidelines Delay RecoveryThe Thesis: Didora highlighted some of the pros and cons of investing in cruise stocks at this point.Pros include the fact that cruise stocks are a pure play on a return to leisure activity, and the potential for highly effective coronavirus vaccines could put prior peak earnings back in play.Cons to investing in cruise stocks include a long path to revenue recovery and the need to potentially raise additional capital in the meantime. Didora is projecting revenue-generating cruise services will begin again in March based on the latest CDC requirements. Between now and then, Didora said the cruise lines will continue to pile on more net debt to stay afloat."With a delay in revenue service, additional capital is key, and balance sheet stress could continue," Didora wrote in the note.Bank of America is projecting 2021 year-end net debt for Carnival, Royal Caribbean and Norwegian will be 100%, 77% and 47% higher than 2019 levels, respectively. At the same time, diluted share counts will also be 56%, 6% and 46% higher, respectively.Benzinga's Take: The three cruise stocks are all up at least 80% since the March market low, which is a huge run for three businesses that are still dead in the water until at least March. The ultimate fate of the industry will be determined by how long it takes the leisure travel business to recover and whether or not the pandemic has permanently changed consumer demand.See more from Benzinga * Click here for options trades from Benzinga * Michael Burry Of 'The Big Short' Fame Confirms He's Shorting Tesla * Option Trader Bets .5M On Facebook Despite Trump's Section 230 Threat(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A rising tide lifts all boats, as President John Kennedy said, and we’re seeing it now on Wall Street, as both the S&P 500 and the NASDAQ are near record high levels. The gains are broad-based and real, and reflect a growing optimism now that the election is behind us and a COVID-19 vaccine is in sight.So let’s look back, all the way to 1973, when economist Burton Malkiel told us that “a blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by the experts.” He was pointing out the effect of random forces on a large enough sample – and the stock market, with over 7,000 publicly traded equities, and even more thousands of active traders working daily, is definitely a large enough sample.But that was before mathematician and code-breaker Jim Simons taught us all how to crunch the numbers. Simons recognized that people are not monkeys – and so have access to information that transcends random effects. He invented quantitative trading, and changed the investment landscape forever.And back in the present, Simons revealed in his most recent 13F filings three new stock positions that bear a closer look. These are buy-rated stocks that boast at least a 5% dividend yield and go up from there. We used TipRanks database to find out what else makes these picks so compelling.Plains GP Holdings (PAGP)First up is Plains GP, an oil and gas midstream holding company. Plains controls assets in the oil and gas transport sector, where it moves the hydrocarbons from the well head production sites to the refineries, storage tank farms, and transport facilities. The company assets include nearly 19,000 miles of pipelines, 8,000 crude oil railroad tankers, nearly 2,500 trucks and tractor-trailers, and, on the rivers, 20 transport tugs and 50 barges. These assets move oil and gas into and out of 148 million barrels worth of storage capacity.PAGP took a hard hit earlier this year from declines in the price of both oil and gas, and from reduced demand during the pandemic-inspired economic shutdowns. By Q2, revenue was down by more than half, to $3.23 billion. The Q3 top line shows the beginning of a recovery, with revenues coming in at $5.83 billion. Q3 EPS was flat sequentially, at 9 cents.The company’s stock price, as might be expected from the financial performance, has failed to gain much traction since it fell last winter at the start of the corona crisis. Shares in PAGP are down 52% so far this year.The low share price, however, presents investors with an opportunity. Clearly, Jim Simons would agree. His fund staked a position in PAGP by buying 1,045,521 shares of the stock. The holding is worth $8.44 million at the current share price.Plains GP has kept up its commitment to the dividend. The company cut the payment from 36 cents per share to 18 cents for the April payment, but has kept it at that level since then. The cut kept the yield from exploding as share price fell, and kept the payment affordable at current income levels. The current payment annualizes to 72 cents per common share, and gives a yield of 8.3%.Raymond James analyst Justin Jenkins likes Plains for its ability to generate cash. He writes, “PAGP's cash flow profile has actually improved this year. While 2021 will see more headwinds to EBITDA than 2020, lower capex and cost-cutting measures implemented since the pandemic still drive an FCF inflection. We now model Plains generating an all-in FCF surplus [...] We continue to believe the partnership’s outlook is much better than recent investor sentiment in the stock."In line with these comments, Jenkins rates PAGP a Buy. His $9 price target suggests it has room to grow ~10% from current levels. (To watch Jenkins’ track record, click here)Overall, there are three recent reviews of PAGP on record, and all are Buys – making the analyst consensus here a unanimous Strong Buy. The stock is selling for $8.17, and its $10 average price target implies a one-year upside of 22%. (See PAGP stock analysis on TipRanks)Granite Point Mortgage Trust (GPMT)Next up, Granite Point Mortgage Trust, is a mortgage loan company serving a US customer base. The company invests in senior floating-rate commercial mortgages, as well as originating and managing such loans. The company’s portfolio is valued at more than $1.8 billion.GPMT is showing some solid messages in recent financial performance. The company beat the forecasts on earnings, reporting 27 cents per share against a 20-cent estimate, for a 35% beat. Revenues were up year-over-year, and the company finished the quarter with over $353 million in cash and cash equivalents.That foundation allowed GPMT to keep its dividend, although the company did adjust the payment to 20 cents per common share. At that rate, it annualizes to 80 cents and yields a hefty 8.3%. This compares favorably to financial sector peers – and is more than 4x higher than the average dividend found among S&P listed companies. Granite Point is another of Jim Simons’ new positions. The quant billionaire bought up 155,800 shares of this real estate investment trust (REIT), for a stake that’s now worth $1.48 million. Stephen Laws, covering this stock for Raymond James, sees GPMT as a potential winner for dividend investors. He writes, “We expect net interest income to continue to benefit from LIBOR loans in floors, and are increasing our core earnings estimates to reflect this. While GPMT reinstated the quarterly dividend of $0.20 per share, the company still has roughly $29 million of undistributed taxable income at September 30. Given this, we anticipate a special dividend of $0.40 per share to be declared prior to year-end.”The 5-star analyst rates the stock an Outperform (i.e. Buy), and his $11 price target implies 16% growth over the next months. (To watch Laws’ track record, click here)This is another stock with a unanimous analyst rating – although the two recent Buys make the consensus view a Moderate Buy. The average price target matches Laws’, at $11, and indicates a 16% upside from the current trading price of $9.60. (See GPMT stock analysis on TipRanks)Phillips 66 (PSX)Last on our list of Simons’ new purchases is Phillips 66, the oil and gas giant. With over $107 billion in annual revenues, and more than $58 billion in total assets, Phillips 66 is deeply involved in oil production, refining, and marketing. The company also has a large presence in the petrochemical industry.The low prices, economic shutdowns, and unpredictable demand have put pressure on PSX’s share price this year, and the stock has only partly rebounded from last winter’s swoon. PSX is down 40% year-to-date, but it’s up 54% from its late-March trough.In the third quarter, Phillips 66 saw an EPS loss of 1 cent – but that was far better than the 80-cent lost which had been forecast. Revenues for the quarter came in at $15.93 billion, up 45% from the previous quarter.The company pays out 90 cents per common share, and has an 8-year history of keeping a reliable payment with occasional increases. The annualized payment of $3.60 gives a yield of 5.4%, well above the utility sector average yield of 3.3%.Simons, for his part, was impressed enough by this stock to purchase 120,800 shares. That’s a holding now worth $7.47 million.In his note on PSX, Scotiabank’s Paul Cheng notes several key points, including some that may seem counterintuitive. “Passing of Election Day may actually trigger new buying in the group even with a Biden win. Contrary to the widespread belief, the sector has historically outperformed the general market in the first year of a new Democrat Administration… Cyclical sectors could be in demand again as investors re-focus their attention from the election to vaccine availability,” Cheng opined. The analyst added, "...relative to other refiners, PSX should benefit more from a rising oil price environment given their large chemical and NGL operations."To this end, Cheng rates PSX an Outperform (i.e. Buy). He sets a $79 price target, indicating an upside potential of 25% for the next 12 months. (To watch Cheng’s track record, click here)All in all, Phillips 66 get a broad-based thumbs-up from Wall Street – as clear from the 11 Buy ratings on the stock, giving it a Strong Buy analyst consensus. (See PSX stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Here’s what Warren Buffett and other investing pros know about owning stocks before, during and after a runaway bull market.