A new study says marijuana is the fastest growing labor market in the U.S. Yahoo Finance's Zack Guzman & Jeanie Ahn, along with 'Afford Anything' Podcast Host Paula Pant discuss with Acreage Holdings CEO Kevin Murphy.
One San Francisco accountant finishes every client conversation with a discussion about what a Biden administration could mean for portfolios.
Buying an EV can be daunting, but a new report shows how worthwhile the investment can be.
Lee Kun-hee, who built Samsung Electronics into a global powerhouse in smartphones, semiconductors and televisions, died on Sunday after spending more than six years in hospital following a heart attack, the company said. Lee, who was 78, grew the Samsung Group into South Korea’s biggest conglomerate and became the country's richest person. "Lee is such a symbolic figure in South Korea's spectacular rise and how South Korea embraced globalisation, that his death will be remembered by so many Koreans," said Chung Sun-sup, chief executive of corporate researcher firm Chaebul.com.
Which investment strategy has stood the test of time? Growth investing. The pros from Wall Street argue that stocks with outsized growth prospects reflect some of the most compelling plays out there. This growth potential extends beyond the near-term, with these names set to deliver handsome returns through 2020 and beyond. That said, finding stocks that fall into this category can be challenging, to say the least. According to the analysts, one strategy is to take a step back and look at the big picture, focusing on the names that stand to see long-term growth on top of their impressive year-to-date gains. Bearing this in mind, we used TipRanks’ database to pinpoint three growth stocks on the receiving end of significant praise from analysts. All three of these tickers have already achieved serious growth in 2020, and are primed to keep climbing higher. Penn National Gaming (PENN) First up we have Penn National Gaming, which owns and operates gaming and racing facilities as well as has video gaming terminal operations throughout the U.S. This name has already soared 146% year-to-date, but some Wall Street analysts believe there’s plenty of fuel left in the tank. PENN recently pre-announced Q3 results that blew estimates out of the water. For the quarter, the company expects margins to expand by over 900 basis points and adjusted EBITDAR to increase by 5% year-over-year, even though revenue was tracking down 10% year-over-year. Weighing in for J.P. Morgan, five-star analyst Joseph Greff told clients, “The regional gaming recovery seen during May/June continued into the Q3, with revenues coming in better than feared; we had previously assumed a slower ramp once pent-up demand normalized and little/no opex creep from post-COVID efficiency gains.” That being said, Greff acknowledges that given the stellar share price performance, some other analysts have “thrown in the towel with downgrades.” However, he still sees “value and catalysts ahead.” The analyst commented, “... there is a tug of war in terms of investor sentiment—which we think is healthy for the stock and almost necessary for the stock to continue to move higher; in our view, traditional gaming equity investors are not completely bulled up, and, in fact, we think there is plenty of investor skepticism related to PENN’s ability to compete with DraftKings, Fanduel, Caesars Entertainment, MGM/GVC, et al., given PENN’s relative balance sheet size to fund early stage sports betting customer acquisition costs, but we believe this risk, to the extent it is meaningful, to compete is now diminished given ~$950 million raised from its recent equity raise.” On top of this, PENN recently launched the Barstool Sports betting app in Pennsylvania. Calling the early launch “encouraging both from a volume and marketing spend perspective,” Greff argues it demonstrates “the potential of its unique approach to share grab.” In addition, momentum is ramping up for Barstool Sportsbook. What’s more, Greff thinks that the current sports betting and iGaming environment resembles the emergence of regional markets in the 1990s, when states with budget deficits turned to new revenue streams like riverboat gaming to help fund budget deficits. Expounding on this, the analyst stated, “We think the states will look to USSB and iGaming in much the same way and PENN will be one of the winners. We like the U.S. Regional land-based gaming/sports betting/iGaming landscape and see upside.” It should come as no surprise, then, that Greff stayed with the bulls. In addition to an Overweight rating, he left an $83 price target on the stock. Investors could be pocketing a gain of 32%, should this target be met in the twelve months ahead. (To watch Greff’s track record, click here) What does the rest of the Street have to say? 9 Buys, 3 Holds and 1 Sell have been issued in the last three months. Therefore, PENN gets a Moderate Buy consensus rating. Based on the $76.77 average price target, shares could rise 22% in the next year. (See Penn National Gaming stock analysis on TipRanks) Redfin (RDFN) Starting out in the map-based search space, Redfin expanded its product offering to make the home tour, listing debut and escrow processes faster and easier. Out on Wall Street, some think that this name is experiencing more than just a COVID demand surge, with its 113% year-to-date gain only the beginning. Although RDFN is coming off of a strong Q3 pre-announcement, investors were somewhat disappointed by the results. BTIG’s Jake Fuller points out that shares likely traded off because “expectations were high and the scale of revenue upside modest at ~2%,” and “momentum investors tend to reward volume-led beats and RDFN actually lagged expectations on that front.” It doesn’t help that RDFN is not a focus name for many, suggesting that investors might not have looked past the revenue disclosure, according to Fuller. However, he argues the Street could be missing key pieces of the puzzle. The five-star analyst mentioned, “What might be getting overlooked here is that RDFN has stepped up commission rates with no obvious impact to conversion, and that should translate into a significantly stronger gross profit outlook for RDFN.” To this end, he bumped up his 2021 gross profit estimate by 47%. Looking at the details of the quarter, RDFN experienced robust demand, with Real Estate Services revenue increasing 36% year-over-year. Site traffic and transactions were also up on a quarter-over-quarter basis. However, it should be noted that the upside was driven by revenue per transaction. “That is important because it suggests that anticipated commission rate increases are finally contributing,” Fuller said. “By our tally, Real Estate Services revenue went from 1.68% of GTV in Q3 2019 and 1.78% in Q2 2020 to an estimated 1.85% in Q3 2020. A four-point beat on gross margin suggests high flow through on that. While difficult to assess the durability of demand, pricing gains and a better margin profile should be sustainable,” Fuller commented. In line with his optimistic approach, Fuller sides with the bulls, reiterating a Buy rating and $65 price target. This target conveys his confidence in RDFN’s ability to climb 45% higher in the next year. (To watch Fuller’s track record, click here) Turning to the rest of the Street, opinions are more varied. With 6 Buys, 5 Holds and 1 Sell assigned in the last three months, the word on the Street is that RDFN is a Moderate Buy. At $50, the average price target implies 11% upside potential. (See Redfin stock analysis on TipRanks) Vertiv Holdings (VRT) As one of the leading global providers of hardware, software and services, Vertiv Holdings helps facilitate an interconnected marketplace of digital systems where large amounts of indispensable data needs to be transmitted, analyzed, processed and stored. Up 71% year-to-date, more gains could be on the horizon, so says Wall Street. Even with the major share price appreciation, Wolfe Research analyst Nigel Coe sees a favorable risk/reward profile. “We believe that Vertiv is a rare breed that can appeal to a broad cross section of investors: a mid-cap growth company that can deliver attractive margin expansion at a discounted valuation, captained by a top-class executive team,” he explained. When it comes to VRT’s runway for growth, its key customer end markets are data center and telecommunications. These spaces are areas where Coe expects to see growth in 2020 and 2021, as well as long-term secular tailwinds from increasing data intensity and 5G upgrades. Additionally, management has outlined a pathway to 500 basis points of margin expansion, driven by efforts to keep fixed costs constant via a variety of operational upgrades and a reduction in organizational complexity. “This is the playbook deployed by Executive Chairman David Cote so successfully under his tenure at Honeywell, and this gives us conviction that a similar playbook can be deployed at Vertiv,” Coe said. It should be noted that VRT exited Q2 2020 with net debt of roughly $2.1 billion, and net debt/EBITDA landing at 4.2x. Even though this is at the high end of the range, Coe argues the balance sheet could rapidly de-leverage. To this end, he calculates surplus capital of $1 billion by 2023, assuming a net debt/EBITDA ratio of 2x. “We don't currently view Vertiv as a clear capital deployment story, but this could come to the fore over the 2022/23 time frame - we could certainly see acquisitions that bolster its capability in power distribution and perhaps at the DCIM layer. Other potential options include the settlement of warrants for cash (these are currently reflected in our diluted share count calculation) and the institution of a dividend that would widen the potential for institutional ownership. We also cannot ignore the scope for strategic partnerships with many larger electrical equipment market participants that are not significant players in the data center,” Coe commented. Everything that VRT has going for it convinced Coe to reiterate an Outperform rating. Along with the call, he set a $23 price target, suggesting 22% upside potential. (To watch Coe’s track record, click here) Are other analysts in agreement? They are. Only Buy ratings, 4 to be exact, have been published in the last three months. Therefore, the message is clear: VRT is a Strong Buy. Given the $20.75 average price target, shares could surge 10% in the next year. (See Vertiv Holdings stock analysis on TipRanks) 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.
Get the most from your retirement savings in these affordable places outside the U.S.
Former Vice President Biden has a detailed proposal that involves raising taxes on people with taxable income of more than $400,000—essentially targeting the top 1%. President Trump wants to keep the tax cuts that went into effect in 2018, which largely benefited top earners.
While it’s a good idea to go through your portfolio at least once a quarter and evaluate how your stocks are doing, special circumstances dictate that you do it more scrupulously, and our present pandemic certainly counts. The markets are caught in limbo, awaiting another stimulus package after a massive run from late March through September. The biggest winners have been tech stocks, especially biotechs and pharmaceutical companies. Much of that hype initially centered on the race for a COVID-19 vaccine. But it then filtered through the entire industry, since many companies that were once small-time outsiders were launched into headliners with a cure.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Diagnostic companies, testing and healthcare equipment companies all started rising as well. But we’re in a different place now. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Here are 7 unhealthy biotech stocks to sell before they sicken your portfolio: Galapagos NV (NASDAQ:GLPG) Heron Therapeutics (NASDAQ:HRTX) Ionis Pharmaceuticals (NASDAQ:IONS) REGENXBIO (NASDAQ:RGNX) Illumina (NASDAQ:ILMN) China Biologic Products (NASDAQ:CBPO) Ligand Pharmaceuticals (NASDAQ:LGND) For these biotech stocks, the ardor has cooled. While these aren’t terrible stocks, they’re stocks best exited before a correction hits or their momentum slows further. Unhealthy Biotech Stocks to Sell: Galapagos NV (GLPG) Source: Jarretera / Shutterstock.com Based in Belgium, this biotech focuses on small molecule and antibody therapies, aiming to discover novel drug targets. Last summer, Gilead Sciences (NASDAQ:GILD) announced it was investing around $5 billion in the company, which sent the stock flying. But the pandemic crushed the stock and just as it began climbing back, it was hit by news that its osteoarthritis drug in development with GILD failed FDA trials. Even with the cash infusion, this is a costly setback, as the company has to spend more on trials that may or may not get it approval. And it pushes back the possible launch date and increases its burn rate. Down 40% year to date, there’s still more downside risk. Heron Therapeutics (HRTX) Source: Shutterstock While only sporting a $1.4 billion market cap, this biotech has two drugs recently approved by the FDA (one of which is coming this week). Both drugs are antiemetics (drugs that reduce nausea and vomiting) to be used in conjunction with chemotherapy for cancer patients. But its biggest ace, still in trials in the U.S. and the E.U., is a non-addictive, non-opioid painkiller. Unfortunately, the opioid epidemic has been supplanted by the pandemic. So this boutique biotech has been pushed to the back burner. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Down 34% year to date, if the market sells off, HRTX is going with it. Ionis Therapeutics (IONS) Source: Shutterstock There’s a novel approach in biotech called antisense therapeutics. It basically alters pieces of messenger RNA so when the body builds new DNA strands from that RNA, it can help mitigate certain diseases. IONS has been involved in antisense therapeutics since 1989. And it has two drugs available in the U.S. and one in the E.U. All work to help people with rare diseases better manage their symptoms. The massive chemical conglomerate Bayer (OTCMKTS:BAYRY) is a partner and just recently took over development and production of an IONS clotting drug. IONS is down 23% year to date and there’s nothing, good or bad, that is going to move the stock anytime soon. REGENXBIO (RGNX) Source: Shutterstock Boasting a $1 billion market cap, RGNX has a number of partnerships with leading drug makers to use its gene therapy solutions for a variety of different pathologies. One of the drugs it worked on with Novartis (NYSE:NVS) was lucrative enough that RGNX didn’t have to look for cash for other projects by issuing more stock. Unfortunately, a big impending payment from NVS looks like it has been pushed further into the future due to an FDA ruling. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes The stock is down 33% year to date, and absent any other big news from its partners, is likely to hang fire at best. Illumina (ILMN) Source: Shutterstock This major gene sequencing company should be going gangbusters here. And it was doing pretty well after the March market dive. But in late September it announced it was re-buying cancer-screening start-up, Grail for $8 billion. Grail had been a division of ILMN a few years ago and it was spun off with big-name investors Bill Gates and Jeff Bezos buying in. ILMN stock got hammered on the announcement because many of the industry analysts couldn’t understand why it buy Grail back, since its leading product puts ILMN in direct competition with some of its other customers that are working on similar technologies. The stock has regained some of that value, but it’s still not clear how it’s going to move forward with this major purpose. Down 4% year to date, there’s as much risk as promise here, and it’s expensive. China Biologic Products (CBPO) Source: Shutterstock As the race for a vaccine or cure for COVID-19 continues around the globe, there are other diseases that still need attention as well. That’s where CBPO comes in. It has a portfolio of plasma-based drugs for the treatment of everything from tetanus and rabies to hepatitis B. The problem is, the pandemic has changed the priorities of both patients and healthcare professionals. And that has meant some conditions don’t rise to the level of attention they did before the pandemic. This can be seen in CBPO’s second-quarter earnings. Sales were off, while income and profits also lagged. And earnings missed consensus. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes While the stock is only off 2% year to date, it may be stuck here for a while. Ligand Pharmaceuticals (LGND) Source: Casimiro PT / Shutterstock.com LGND is a R&D contracting firm for biotech and pharmaceutical companies. It develops drug candidates and then it partners with a firm that will take it through trials and market it. This means LGND doesn’t bear the costs and risks associated with bringing a drug to market and the drug company doesn’t have to invest on an in-house R&D staff and facilities. LGND makes its money off negotiated royalty payments from its partners. Currently, LGND is receiving royalties from 9 different drugs on the market now. But the pandemic has shifted resources for its customer base, putting LGND in a tough spot. That’s best illustrated by the fact that 63% of its stock is now in short positions. The stock is already down 20% year to date. On the date of publication, Louis Navellier has no long positions in any of the stocks in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post 7 Unhealthy Biotech Stocks To Sell Before They Sicken Your Portfolio appeared first on InvestorPlace.
Harry Markopolos is the former derivatives professional turned independent financial fraud investigator who uncovered the $65 billion Bernie Madoff Ponzi scheme, only to be ignored by the SEC for over nine years. A vocal critic of the US regulator, Harry now has the audit world and insurance industry in his sights as the next big financial frauds yet to come to light.
This week’s marquee earnings and economic data reports will mostly take place later in the week, with the majority of the FAANG stocks reporting after market close on Thursday.
Dutch pension giant PGGM doubled its investment in PayPal stock, and bought Cisco and Activision shares in the third quarter. It cut back on Qualcomm stock.
The stock market could go either way, along with leaders such as Microsoft and Tesla. It's peak earnings week as elections loom and coronavirus cases surge.
(AMD)’ third-quarter earnings report, set to arrive Tuesday after the closing bell, comes at an interesting moment for the semiconductor industry. The Wall Street Journal reported that (AMD) (ticker: AMD) plans to aggressively expand its operations through a potential acquisition of (XLNX) (XLNX). Meanwhile, its largest rival (INTC) has been struggling to continue to produce the advanced manufacturing technology necessary to make superior semiconductors.
President Donald Trump keeps bringing up what he calls a $750 filing fee for his federal income tax returns. What's that all about?
Dad was thrifty enough to retire in his 50s. Mom’s nest egg was mostly retirement accounts and index funds. Now they’re buying and selling hot stocks in pursuit of quick profits.
Mortgage rates dipped to another all-time low in the week ending 22nd October. Expect COVID-19 and U.S politics to continue to influence in the week.
* This weekend's Barron's cover story examines the prospects for an iconic beverage giant in a post-pandemic world. * Other featured articles discuss emerging markets stock on the rise and where to find yield in utilities. * Also, the prospects for medical REITs, a supermarket operator, cancer-focused biotechs and more. Cover story "Why Coke Could Be It Again" by Andrew Bary suggests that few big consumer companies have been hit harder by the pandemic than Coca-Cola Co. (NYSE: KO). Yet, as people return to normal in a vaccinated world, the multinational beverage giant's global exposure could help it soar to new heights.Reshma Kapadia's "These Emerging Market Stocks Can Rival U.S. Tech Giants" says that, after a down decade, emerging market stocks are looking up. A number of internet and health-care companies in overseas markets are still in their growth trajectories, offering big opportunities. Is Alibaba Group Holding Ltd. (NYSE: BABA) worth a look?In "3 Medical REITs to Play a Return in Health Care," Darren Fonda makes the case that real estate investment trusts that specialize in health-care facilities are on solid footing and they have room to grow. Find out what Barron's likes about Physicians Realty Trust (NYSE: DOC) and a couple of its peers.NextEra Energy Inc. (NYSE: NEE) is on a roll, up 26% this year, according to "8 Utility Stocks That Offer Safe and Growing Yields" by Lawrence C. Strauss. But there is no shortage of yield elsewhere in the utility sector, along with some downside protection. Xcel Energy Inc. (NYSE: XEL) is just one of the Barron's picks.In Eric Savitz's "Don't Ditch Big Tech Stocks. The Concerns Are Overblown," discover why, even as increasing regulatory scrutiny raises questions, the primary driver for companies such as Apple Inc. (NASDAQ: AAPL) and Microsoft Corp. (NASDAQ: MSFT) has been innovation and execution, not cheating and bullying.See also: Benzinga's Bulls And Bears Of The Week: Boeing, Netflix, Pfizer And More"Look Out for a Holiday-Shopping Head Fake" by Jack Hough examines why November might be the right time to dump department store stocks such as Kohl's Corp. (NYSE: KSS) and Macy's Inc. (NYSE: M) for tax losses. What about Nike Inc. (NYSE: NKE)?First Sprouts Farmers Market Inc. (NASDAQ: SFM) was a COVID-19 winner, and then it was a COVID -19 loser. So says Teresa Rivas's "Sprouts Stock Is Ready for a Rebound." After losing nearly a quarter of its value during the past three months, could this Phoenix-based supermarket chain operator be poised for a rebound?In "Bullish on Tesla, Telehealth, and the Genomics Revolution," Evie Liu shares why the CEO of ARK Investment is a student of disruption innovation, and why thinks Tesla Inc (NASDAQ: TSLA) will leave Uber Technologies Inc. (NYSE: UBER) and others in a cloud of dust.Bill Alpert's "Cancer Meeting Could Ignite These Biotech Stocks" is focused on this year's ENA Symposium, in which cancer researchers convene online to see new data on drugs being tested by a host of biotech companies. Discover why Barron's thinks Mirati Therapeutics Inc. (NASDAQ: MRTX) will be one of the most widely watched.Also in this week's Barron's: * How much you would pay under Biden's and Trump's tax plans * How the presidential candidates' tax plans would help -- and hurt -- the economy * What a blue wave could mean for the bond market * Why 2021 will be a challenge for investors * Why tech sector valuations are cause for concern * What diesel gas market may signal about the economy * The next battle in the electric vehicle wars * Whether leveraged buyouts are bouncing back * Whether China's bonds are as safe as Treasuries * Whether it is time to try Thailand's stock market At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Click here for options trades from Benzinga * Benzinga's Bulls And Bears Of The Week: Boeing, Netflix, Pfizer And More * Last Week's Notable Insider Buys: Carnival, Citigroup And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
With the pedal to the metal, electric vehicle stocks show no signs of slowing. In fact, most could see far more upside including Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), and most notably, Workhorse Group (NASDAQ:WKHS) and WKHS stock. Source: Photo from WorkHorse.com The last time I weighed in on the stock, I said, “While the shares won’t explode overnight, I strongly believe that they could double. I said the same thing as the stock traded at $17.03 before it ran to nearly $31 a share.” Granted, the stock recently pulled back after the U.S. Postal Service delayed its contract decision, but there’s still opportunity here. Remember, just because the contract was delayed doesn’t mean Workhorse Group is out of the running.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The WKHS stock could still run higher again on the anticipation of a coming decision. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes After all, the postal service is still in desperate need of upgrading its ancient fleet of vehicles. And Workhorse Group is still in the running. From here, I strongly believe the WKHS stock could rally back to nearly $31 a share again soon. Workhorse Could See All or Part of the USPS Award I also wouldn’t get too wound up over the recent downgrade from Roth Capital’s Craig Irwin. He recently downgraded WKHS stock from a buy to a hold, with a target cut to $27. While the contract was delayed, it’s a temporary setback. Weakness in the stock is a buy opportunity, in my opinion. And sure, according to the postal service, as quoted by Barron’s said, “Due to the current Covid-19 pandemic and its impact on Postal Service and supplier operations, an award(s) is currently planned for the production phase by the end of the calendar year.” But, as noted by Barron’s contributor Al Root, “The potential addition of an “s” to award is significant. It raises the possibility of multiple winners. That’s good for Workhorse’s business because it raises the odds of success.” In addition, while it’s not a certainty Workhorse will win the postal service contract, investors can still make money on the stock on the anticipatory momentum. For example, buy now and simply wait for the momentum to build up ahead of the contract date. Electric Vehicle Boom Shows No Signs of Slowing Tesla just blew earnings out of the water, with hopes of selling half a million EVs this year. EPS of 76 cents was well above expectations for 57 cents. Revenue of $8.77 billion was above estimates for $8.36 billion. That’s only creating even more excitement over EV stocks. Helping, General Motors (NYSE:GM) just announced it would invest $2.2 billion in U.S. manufacturing to increase EV production. Better, governments around the world are forcing millions into EVs. In the U.S. for example, California Gov. Gavin Newsom signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035. That’s further fuel for the EV boom. In short, the electric vehicle boom has only started. With it, we could see further upside in related stocks like Workhorse Group easily. This is another reason to buy WKSH stock on weakness. Most Analysts Still Seem to Like WKHS Stock Over the last month, Oppenheimer analyst Colin Rusch said WKHS stock was a leader in last-mile deliveries. He has a price target of $23. And, as I noted on Sept. 25, “Cowen analyst Jeffrey Osborne is impressed by WKHS stock. “The [second half production] ramp remains on track and management continues to target [making] 300 [to] 400 vehicles by the end of the year. After a tough few quarters, we see greener pastures ahead.” While I don’t expect the stock to explode overnight, I still believe we could see $31 again soon. The postal service contract is still on the table. It was only delayed, not canceled. Use recent weakness as an opportunity to buy. On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Workhorse Group Is a Buy Even with the USPS Contract Delay appeared first on InvestorPlace.
The utility sector comprises companies that provide essential products and services, including water, electricity, natural gas, sewage, and other services. The sustained demand for these services has helped utility stocks generate stable earnings. Due to the reliability of earnings, these companies can effectively payout dividends at significantly higher average yields. Hence, the unmatched combination of income generation and profitability makes utility stocks an excellent low-risk option for investors. This year, the utility stocks represented by the Utilities Select Sector SPDR ETF (NYSEARCA:XLU), have underperformed the broader market. The S&P 500 index grew 6% since the beginning of the year, while the Utilities ETF fell by nearly 2%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Tech stocks have ruled the roost this year, but utility stocks’ importance in a well-rounded portfolio cannot be denied either. Therefore, let’s look at three utility stocks that remained resilient despite the effects of the pandemic. American Water Works (NYSE:AWK) AES Corporation (NYSE:AES) NextEra Energy (NYSE:NEE) Utility Stocks: American Water Works (AWK) Source: Shutterstock American Water Works provides regulated water and wastewater services to homeowners and the military. It is currently the largest water and wastewater utility company in the U.S. Additionally, it also makes money using specific market-based activities. It remained resilient in the face of the pandemic, as AWK stock grew 13.7% relative to the S&P 500. It recently reported its solid second-quarter results. Earnings per share (EPS) for six months ended June 30 was at $1.65, roughly 5.8% compared to the prior-year period. Income from its regulated business was $177 million, compared to $156 million in the same period last year. Additionally, income from market-based activities also increased by $2 million. Despite the slowdown in water usage in the country, the increase in prices has helped offset revenues’ impact. Moreover, the directors announced a quarterly cash dividend payment of 55 cents per share. Hence, the dividend growth rate for the past year for the company is around 10%. American Water Works expects to grow its EPS and dividends at a compound annual growth rate (CAGR) between 7% to 10% from 2019 to 2024. NextEra Energy (NEE) Source: madamF / Shutterstock.com NextEra Energy is the most valuable energy company in terms of market capitalization in the U.S. It runs regulated electric utilities in Florida and a nonregulated energy business operating natural gas and renewable energy projects. Additionally, it boasts one of the most robust financial profiles in the sector, with the highest credit ratings among businesses of its kind. NEE stock’s 12-month return relative to the S&P 500 is at a healthy 19.3%. The company reported its second-quarter results back in July, which was weighed down by the pandemic. The adjusted EPS for the quarter was at $2.61, surpassing expectations by 4.4%. However, revenues were down 15.4%. Revenues across all its segments lagged behind consensus estimates. Nevertheless, the company’s earnings are expected to grow at a CAGR of 6% to 8% per year through 2021. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Its financial strength continues to impress as cash and cash equivalents were up 268% crossing the $1 billion mark. Moreover, the company plans to increase its dividend by approximately 10% per year through 2022. AES Corporation (AES) Source: zhao jiankang / Shutterstock.com AES is one of the largest electric utility companies in the U.S. operating in multiple nations. It has one of the most diversified portfolios of distribution and electricity generation businesses. Additionally, it is among the top electric utility companies leading the charge towards renewable energy. AES stock’s 12-month return relative to the S&P 500 is at a solid 10.9%. The pandemic weighed down the company’s second-quarter results. Adjusted EPS was down 3.8% to 25 cents while revenues dropped 11.3%. Despite the slowdown, the management feels that market demand is better than their expectations, and collections are in line with historical levels. The company expects a 7% to 9% average growth rate for its business through to 2022. AES is betting heavily on the green revolution and hopes to generate less than 10% of its electricity from coal by 2030. It is aggressively retiring its coal plants and remains focused on increasing its renewable plants. On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post 3 Utility Stocks With Tried-and-True Gains appeared first on InvestorPlace.
Apple’s (NASDAQ:AAPL) iPhone event on Oct. 13 has made many investors more interested in the shares of companies that are involved in the 5G space. One such name is Nokia stock. Source: RistoH / Shutterstock.com Recent research by Nokia and Nokia Bell Labs determined that “5G-enabled industries have the potential to add $8 trillion to global GDP by 2030, as COVID-19 accelerates medium and long-term digital investment and value creation… Companies at an advanced level of 5G adoption were the only group to experience a net increase in productivity (+10%) following COVID-19, and the only group able to maintain or increase customer engagement during the pandemic.” The report continues, “across 8 economies – Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US – 50% of companies are at the midway level on 5G readiness, between initial planning, trials and deployment, compared to just 7% that are classed as 5G mature.”InvestorPlace - Stock Market News, Stock Advice & Trading Tips Now investors may wonder if they should buy the shares of Nokia, one of the companies that is leading the global deployment of 5G networks. The company is expected to report earnings at the end of October. Between now and then, Nokia stock may be choppy, especially given the increased volatility levels of the stock market during this busy earnings season. However, long-term investors may regard dips by Nokia as a good opportunity to buy its shares. Here’s why. Nokia’s Q2 Results Finland-based Nokia makes telecom-grade networking equipment. In 2013, it sold its fading mobile-phone business to Microsoft (NASDAQ:MSFT). Then management changed course, re-positioning the company as a networking firm, and, more recently, as a 5G-equipment business. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes The company released its Q2 results in late July. Last quarter, Nokia’s sales dropped 11% year-over-year to 5.09 billion euros. On the other hand, its profit, excluding certain items, came in at 316 million euros, compared to 258 million euros during the same period a year earlier. Investors were pleased with Nokia’s cash flow and profitability. Over the past several quarters, Nokia has been increasing its large-scale capital investments, particularly in 5G networking. Its most important clients are communication service providers. The company has signed several important deals to introduce 5G networks in a number of countries. For instance, in late September, it signed a major 5G equipment agreement with BT (OTCMKTS:BTGOF), the U.K.’s biggest telecom company. In October, Verizon Communications (NYSE:VZ) announced it had chosen Nokia to provide private 5G networks outside the U.S., mainly in Europe and the Asia-Pacific. NASA has also recently selected Nokia as a partner to build the first LTE/4G communications system on the moon. Analysts believe that, going forward, the proliferation of 5G technology will likely drive Nokia’s growth. Their median price target on Nokia stock is $5.27. The shares’ forward price-earnings and price-sales ratios stand at 12.94 and 0.89, respectively. More value investors may begin to buy the shares. The Bottom Line on Nokia Stock In recent quarters, Nokia’s management has put more emphasis on getting 5G contracts. Its recent 5G wins have shown that those efforts are beginning to pay off. I believe that Nokia stock price will likely go over $5 in the coming weeks, and it could possibly go even higher than that. Therefore, long-term investors should consider buying it around its current levels. Meanwhile, the company could even become a takeover target. Alternatively, those investors who are interested in 5G names but do not want to buy the stock may consider purchasing the shares of an exchange-traded fund (ETF) that owns the company. Examples of such funds include the Defiance 5G Next Gen Connectivity ETF (NYSE:FIVG), the First Trust IndXX NextG ETF (NASDAQ:NXTG), and the Defiance Quantum ETF (NYSE:QTUM). On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. She also publishes educational articles on long-term investing. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Long-Term Investors Can Consider Investing in Nokia appeared first on InvestorPlace.
Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side. Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on five names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
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