Oct.12 -- China moved to prosecute Yang Hengjun, an Australian writer, detained in the mainland for almost two years on spying charges. Paul Allen reports on "Bloomberg Daybreak: Australia."
Oct.12 -- China moved to prosecute Yang Hengjun, an Australian writer, detained in the mainland for almost two years on spying charges. Paul Allen reports on "Bloomberg Daybreak: Australia."
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.
As U.S. equity markets trade near all-time highs, coming back from their March lows, several sectors have been left behind, notably banking and energy. I believe that oil stocks are poised for a rally in the coming quarters. Last month, Fitch Ratings forecast that global GDP will fall by 4.4% in FY 2020, which implied a “modest upward revision from the 4.6% decline expected in the June.” Deutsche Bank also believes that the global GDP will “return to pre-virus levels by mid-2021.” In another forecast, the Organisation for Economic Co-operation and Development expects 5% GDP growth in the coming year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The point I am trying to make here is that the worst is possibly over for the global economy. It also implies that demand for oil will increase in the coming quarters. Crude oil prices have also stabilized, as evidenced by recent price action in commodity-based exchange-traded fund United States Oil Fund, LP (NYSEARCA:USO), and is likely to trend higher with demand growth. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Considering this macro outlook, it’s a good time a consider exposure to some fundamentally strong oil stocks, specifically four oil stocks with a healthy dividend pay-out. Even if the stock price is sideways, investors can benefit from dividend cash inflow. Let’s take a deeper look into the following stocks. CNOOC Limited (NYSE:CEO) Chevron Corporation (NYSE:CVX) Equinor (NYSE:EQNR) Marathon Oil (NYSE:MRO) 4 Oil Stocks to Buy as the Price of Crude Stabilizes: CNOOC Limited (CEO) Source: Shutterstock I like CEO stock for two primary reasons. CNOOC currently pays an annual dividend of $8.37 and at current levels, has an attractive yield of 8.9%. Further, the stock trades at a price-to-earnings-ratio of just 8.3. Therefore, in addition to dividends, the stock is likely to trend higher in the coming quarters as oil prices recover. Amidst a downturn in the industry, another positive fundamental factor is that CNOOC has a gearing ratio of 25%. With low leverage, the company has ample financial flexibility. Since the company has an annual dividend pay-out of $8.37, it’s also important to talk about the sustainability of dividends. I want to mention the fact that for the first half of FY2020, the company reported free cash flow of 6.4 billion CNY ($957.4 million). Even in the most challenging times, the Chinese oil company has managed to deliver positive FCF. I expect FCF to increase in the coming years. Dividends are therefore safe. Given the strong fundamentals, CNOOC is also on track for a capital expenditure of 80 billion yuan (mid-range of guidance) for the current year. Investments are likely to be higher for the coming year. This will translate into production growth and cash flow upside. CEO stock has declined by 38% in the last 12 months, pretty much in lockstep with oil’s gyrations. I believe that the worst is over for the sector and for the stock. Exposure can be considered at current levels of $93.70. Chevron Corporation (CVX) Source: tishomir / Shutterstock.com Chevron is another oil stock that has strong fundamentals, attractive valuations and an attractive dividend yield. CVX stock has also declined by 38% in the last year and stock upside is likely in addition to dividends. Currently, the stock pays an annual dividend of $5.16, which translates into a dividend yield of 7.28%. Chevron also has a strong balance sheet with a net debt ratio of 17%. In addition, the company has $30 billion in cash and equivalents. The liquidity buffer should help the company to ramp-up investments once oil trends higher and sustains at higher levels. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes The company’s Permian asset is likely to deliver production growth and strong cash flows in the coming years. Even for FY2020, the company expects positive FCF from Permian assets. Therefore, once oil trends higher, the returns from Permian assets will be attractive. With strong fundamentals, quality assets and robust dividends, I expect CVX stock to be a value creator in the coming years. Equinor (EQNR) Source: II.studio / Shutterstock.com I believe that Norway’s Equinor is among the top oil stocks. In the last one year, EQNR stock has declined by 20.8%, outperforming CVX stock and CEO stock and even ETF USO. The stock also has a healthy 2.55% dividend yield. In terms of growth, I believe that the Johan Sverdrup asset is likely to be a game changer for the company. The asset is the third-largest in the Norwegian continental shelf with expected resources of 2.7 billion barrels of oil equivalent. Once phase two production commences in FY2022, daily production from the asset will be 690,000 BOE/day. The company has a 42.6% stake in the asset. The asset will therefore deliver production growth and cash flow upside in the coming years. FCF is likely to be robust considering the point that the company expects full field break-even as $20 per barrel. Of course, Johan is not the only asset. The company has 6 billion barrels of proved oil and gas reserves. With a robust credit rating, the company has financial flexibility for growth. Overall, EQNR stock is worth considering at current levels. In the next 12-24 months, the company can deliver robust returns through stock upside and dividends. Marathon Oil (MRO) Source: IgorGolovniov / Shutterstock.com Among the relatively smaller names in the industry, I like Marathon Oil. MRO stock has slumped by 63% in the last year, but has been sideways for the past six months. I believe that the worst is over and upside is likely in the coming quarters. It’s worth noting that the company recently reinstated dividends with a quarterly pay-out of 3 cents per share. An annual dividend of 12 cents implies a yield of 2.89%. From a fundamental perspective, Marathon reported total liquidity of $3.5 billion as of Q2 2020. In addition, the balance sheet remains strong with an investment grade credit rating. Low break-even assets are another reason to be bullish on the company. In the second half of the year, the company expects positive FCF even if WTI oil is around $30 per barrel. For the next year, free cash flow break-even is expected at $35 per barrel. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes WTI oil currently trades at $40 per barrel and with likelihood of oil trending higher, the company’s dividends are safe. In addition, as FCF swells, fundamentals will further improve. Overall, MRO stock can be a potential doubler in the next 12-24 months. On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. As of this writing, Faisal Humayun 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 4 Oil Stocks To Buy as the Price of Crude Stabilizes appeared first on InvestorPlace.
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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.
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: The stock market rally could go either way, along with leaders like Microsoft and Tesla. It's peak earnings week as Election Day looms.
President Trump has described his audit as ‘very routine,’ but legal experts say it is quite unusual.
Occidental Petroleum (NYSE:OXY) stock is in freefall. A year ago, shares traded for as much as $50. After the March crash, OXY stock enjoyed a considerable bounce back up to the $25 level. Since then, there’s been hardly any signs of life. Shares have lost the majority of their remaining value and now trade for less than $10 a pop. Source: Pavel Kapysh / Shutterstock.com With oil firming up a bit recently, it appeared that Occidental might finally be able to turn the corner. In September, Occidental stock rallied for a moment. However, management quickly snuffed that optimism out with another shockingly bad asset sale, as it sold off one of its best oil fields to private equity for an incredibly low price. Given this unexpected and highly unfortunate development, any enthusiasm for OXY stock has disappeared in the short-term. What had been trend lines in sync, specifically the United States Oil Fund, LP (NYSEARCA:USO), shifted around Oct. 14. Oil started a slow ascent while OXY stock went the other way.InvestorPlace - Stock Market News, Stock Advice & Trading Tips That day, CEO Vicki Hollub told an industry conference that “America’s oil production will never again reach the record 13 million barrels a day set earlier this year, just before the pandemic devastated global demand,” Bloomberg reported. As they say, Occidental is burning the furniture to stay warm. And until that stops, OXY stock could keep dropping even lower. OXY Stock Investors Hit With Another Blow Throughout 2020, I’ve urged readers to avoid OXY stock. The company’s problems are numerous and its management team fails to inspire any confidence that they can fix the mess that it’s in. There are much better quality energy companies out there to buy for a sustained recovery in oil and gas. However, in September, I gave Occidental a chance. With shares down to $10, I argued that they finally looked cheap enough to be worth the risk. Shares initially popped nicely and it looked like OXY stock’s long-running nightmare was ending. But then, CEO Hollub shocked shareholders with another inexplicable decision. Earlier this month, Occidental announced that it is selling off its Colombian assets for just $700 million. Occidental had been involved in Colombia since the 1980s and has been a key partner with state oil company Ecopetrol (NYSE:EC) for ages. Colombia’s oil assets are highly attractive long-life assets with costs far below what Occidental sees on its U.S.-produced oil. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes As a result, according to Credit Suisse estimates, these Colombian fields were generating $250 million a year in cash flow for Occidental, even at current low oil prices. Think about that. Occidental dumped one of its best assets for less than three times their trough cash flow. Given the overall valuation of OXY stock (far higher than 3x cash flow) this actually made the remaining Occidental company less attractive as an asset. Crippling Debtload Forces Brutal Decisions From the regrettable Anadarko merger on, Occidental’s CEO has proven to be a poor decision-maker. The decision to give away Colombia’s crown jewels to private equity at a knockdown price is another such error. Still, given Occidental’s massive debtload, there admittedly are not a lot of good choices here. Leadership promised at least $2 billion in asset sales in 2020 to help make a dent in the company’s liabilities. Since Occidental’s higher-cost Permian assets aren’t meaningfully profitable or cash flow positive at the moment, the assets that can be easily sold are the best ones, such as the Colombian production. Unfortunately, Occidental will be left with increasingly high-cost, marginal production as it sells off Colombia, Wyoming, and other basins in the current liquidation spree. This means that the upside for OXY stock is fading by the month. Oil will eventually recover, but what will Occidental have left by the time the slump is over? OXY Stock Verdict Occidental’s decision to abandon Colombia and receive only pocket change in return is a devastating development. Every time you think Occidental might finally have reached rock bottom, it finds some way to dig even deeper. It’s especially disappointing because in September, it seemed like OXY stock might finally be ready to make a comeback. It had already sold off enough assets that its financial situation appeared alright for the foreseeable future. Perhaps management could get back to improving efficiency on its existing operations. But no, by dumping its decades-long position in Colombia, Occidental signaled to the market that there’s no end in sight to the company’s downward spiral. If you think oil is going back to $60 a barrel in the near future, you might be able to justify owning OXY stock here for its higher leverage to the price of oil. Otherwise, stay far away. The most recent asset sale made it clear that Occidental’s management team still hasn’t learned from its previous mistakes. On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. 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 Occidental Petroleum Stock Investors See Things Go From Bad to Worse appeared first on InvestorPlace.
The US Securities and Exchange Commission has paid a record $114m (£87m) to a whistleblower for information and assistance that enabled enforcement action by authorities. The SEC, which is tasked with regulating US financial markets and protecting investors, said on Thursday that the whistleblower’s actions were extraordinary and praised the high quality of the information provided both to it and another agency. The $114m award comprised $52m for assistance given to the SEC and a further $62m for related actions taken by another agency. The award is more than double the previous record payout of $50m that was paid in June. Jane Norberg, chief of the SEC’s Office of the Whistleblower, said: “The actions of the whistleblower awarded today were extraordinary. “After repeatedly reporting concerns internally, and despite personal and professional hardships, the whistleblower alerted the SEC and the other agency of the wrongdoing and provided substantial, ongoing assistance that proved critical to the success of the actions.” Neither the whistleblower’s identity nor the case in which they provided information was disclosed. The SEC has awarded about $676m to 108 individuals since 2012. The payments are made out of a fund established by Congress that is financed by fines levied by the SEC against companies and individuals that break securities laws. Whistleblowers can receive an award if they have voluntarily provided original, timely, and credible information that leads to a successful enforcement action. Where the fine imposed is more than $1m they can be awarded between 10pc and 30pc of the money collected from the rule breakers. The SEC’s enforcement actions this year included a $500m fine for Wells Fargo after the bank misled investors about the success of its largest business unit while it was opening fake accounts and selling unnecessary products that customers never used. Jay Clayton, chairman of the SEC, said the record payment was “a testament to the Commission’s commitment to award whistleblowers who provide the agency with high-quality information”. “Whistleblowers make important contributions to the enforcement of securities laws and we are committed to getting more money to whistleblowers as quickly and as efficiently as possible,” he added. British authorities have resisted following the US by financially rewarding individuals who bring corporate wrongdoing to light despite the personal and financial risks they face. The Financial Conduct Authority said previously that US agencies had not seen a significant increase in whistleblower reports after it began offering financial incentives.
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Boeing Co (NYSE: BA) investors got some good news recently when European regulators cleared the 737 Max for takeoff. However, one analyst says Boeing still has a number of major challenges ahead in the near-term.The Boeing Analyst: Bank of America analyst Ronald Epstein reiterated his Neutral rating and $175 price target for Boeing.The Boeing Thesis: Epstein said the unprecedented downturn in the aviation industry, the 737 Max problems and Boeing's market share loss to Arbus has created a perfect storm for the company and its investors. In addition, Boeing recently terminated a $4.2 billion deal to take a stake in Brazilian aircraft producer Embraer."Given the prolonged grounding of the 737 MAX and the termination of ERJ deal, we view BA's narrowbody portfolio as strategically disadvantaged vs. Airbus over the medium-term," Epstein wrote in a note.In fact, Epstein said Airbus is on track to expand its market share from 51% today to 57% by the mid-2020s.Related Link: Boeing 737 Max Cleared For Takeoff After 19-Month Grounding, European Regulator SaysTo combat all these difficult headwinds, Epstein said Boeing needs to bite the bullet and invest in developing a new Future Single Aisle airplane. Making the decision to invest in a new model today wouldn't have an impact on Boeing's financial situation for years, but Epstein said it could help change the trajectory of Boeing's business in the long-term.For now, the next several quarters will continue to be difficult for the company. In the third quarter, Boeing received 58 net order cancellations and removed another 141 orders from its backlog. Epstein estimates Boeing now has at least 450 737 Max planes and at least 40 787s in excess inventory representing about $20 billion in working capital.Bank of America s projecting Boeing will burn $18.6 billion in free cash flow in 2020 and another $1.1 billion in 2021.Benzinga's Take: Boeing will certainly participate in any broad market recovery rally once the airline industry starts to improve. Unfortunately, the company has plenty of company-specific problems that may weigh on the stock's performance in the long-term relative to other aerospace stocks.Latest Ratings for BA DateFirmActionFromTo Oct 2020Credit SuisseMaintainsNeutral Sep 2020Alembic GlobalUpgradesNeutralOverweight Sep 2020Morgan StanleyInitiates Coverage OnUnderweight View More Analyst Ratings for BA View the Latest Analyst Ratings See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * How Large Option Traders Are Playing GE's Stock After Regulators Clear 737 Max * How Large Option Traders Are Playing Boeing As Order Backlog Shrinks Further(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The mammoth dual listing for Chinese fintech giant Ant Group will be the world's biggest, according to a pricing determined on Friday night, Alibaba founder Jack Ma said on Saturday. "It's the first time that the pricing of such a big listing - the largest in human history - has been determined outside New York City" he told the Bund Summit in the eastern financial hub of Shanghai. Backed by Chinese e-commerce giant Alibaba, Ant plans to list simultaneously in Hong Kong and on Shanghai's STAR Market in the coming weeks.
(Bloomberg) -- It keeps getting worse for Leon Black.Over the past week, Black’s giant investment firm, Apollo Global Management Inc., has confronted one question after another about his decades-long relationship with convicted sex offender Jeffrey Epstein.First, his own board ordered an external review prompted by Black himself. Then a Pennsylvania pension fund paused new investments -- and the state of Connecticut has done the same. One major consultant -- a gatekeeper to $160 billion of investor commitments -- has urged clients to hold off, and another is considering taking similar action.Clients who for years enjoyed some of the best returns on Wall Street are reconsidering their ties to Apollo amid renewed scrutiny over Epstein, spurred by a New York Times report earlier this month and given fresh attention from an unsealed deposition of Epstein associate Ghislaine Maxwell.Investors distancing themselves from the firm show how serious the issue has become for Black and his general partners. Some clients aren’t convinced that the review, which will be handled by law firm Dechert LLP, will be enough to clear Black’s name, according to people familiar with the matter.A freeze in new money could hurt Apollo at a time when it’s trying to raise $20 billion for several new funds. The pandemic-spurred turmoil in the credit markets is a prime investing opportunity for the firm, which is known for buying struggling businesses. Apollo is seeking to take advantage of market dislocations as well as invest in private debt, people with knowledge of the matter said in April.Black’s growing troubles reflect the changing politics of the investing world, where major funds have become more sensitive to environmental, social and governance matters. The new focus means that even the prospect of lucrative returns may not be enough of a lure in the midst of a scandal.“While performance is always going to be an important factor, increasingly it’s not the only factor,” said Gerald O’Hara, an analyst at Jefferies Financial Group Inc. “In some respects, there’s some willingness to sacrifice performance for a company that’s run with good governance, good ethics.”Investment adviser Aksia told clients not to give new money to Apollo, Bloomberg reported Friday, while Connecticut said it is halting new investments with the firm. Earlier in the week, the Pennsylvania Public School Employees’ Retirement System said it would stop making additional investments in Apollo for now, and consultant Cambridge Associates is considering not recommending the firm to its pension and endowment clients.While Black faced pressure in the immediate aftermath of Epstein’s arrest last year, investor angst was rekindled by a New York Times report that he had wired at least $50 million to Epstein after his 2008 conviction for soliciting prostitution from a teenage girl. The article didn’t accuse Black of breaking the law. Apollo shares have fallen about 12% since the story was published on Oct. 12.“We are firmly committed to transparency,” Apollo said Friday in a statement, noting that Black has been communicating regularly with investors. “Although Apollo never did business with Jeffrey Epstein, Leon has requested an independent, outside review regarding his previous professional relationship with Mr. Epstein.”In a letter to Apollo’s limited partners this month, Black said he deeply regretted having had any involvement with Epstein. Black said he had turned to him for matters such as taxes, estate planning and philanthropy, and that nothing in the Times’ report was inconsistent with an earlier description of their ties.Read more: Leon Black’s Epstein Links Threaten Apollo’s FundraisingIt will be tough for investors to cut ties completely with Apollo as private equity funds typically lock up capital for years -- a trade-off many are willing to make with the promise of high-flying returns. And unless the inquiry unearths something more damning, clients may ultimately decide to look the other way, said three investors who asked not to be identified.It’s particularly unappealing for clients to pull away given the firm’s stellar returns. Apollo’s flagship private equity fund, which opened to investors in 2001, has delivered annual gains of 44%, Bloomberg reported in January.But even yield-starved investors looking to pump more money into private equity may choose to go elsewhere in future, as rivals flood the market with new offerings.“It’s a very competitive race for capital and one thing that we continue to see in fundraising is it is in many ways more similar to a political process than a capital-raising process,” said Sarah Sandstrom, partner at Campbell Lutyens, which helps private equity firms raise money. “You are telling your story, creating relationships with investors.”(Adds previous comment from Black in 12th paragraph.)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.
Shares of General Electric Co. surged to the highest price seen in four months before pulling back, as Wall Street has gotten a little more optimistic on the outlook ahead of the industrial conglomerate’s earnings report.
The IBM Retirement Fund added to positions in its parent company, Apple, and Microsoft in the third quarter. It also exited a small investment in energy explorer Diamondback.
On Thursday, AT&T (NYSE: T) showed just how much it was pinched by cord-cutting and closed theaters. However, it managed to beat lowered Q3 analyst estimates, causing its shares to rise 1% in premarket trading. Verizon Communications (NYSE: VZ) also managed to beat estimates on Wednesday due to strong demand for its phone and internet services. As offices and schools continued to operate in a digital framework to surf their way through the pandemic, this trend fuelled Verizon's growth. It seems Comms are doing better than expected.AT&T Q3 During the quarter that ended on September 30, total revenue was $42.3 billion, exceeding the average analyst expectation of $41.59 billion. Big media bets, namely DirecTV and Warner Bros dragged the results down due to movie theatre closures and pay-television customer losses, but HBO Max streaming service told a different story. Offers for HBO Max streaming service for free on certain phone plans are what helped the company beat revenue expectations.The company added 645,000 net new phone subscribers who pay a recurring monthly bill whereas FactSet reported analysts had expected AT&T to lose a net 9,000 customers over the quarter. It also gained 357,000 net new fiber internet customers, as demand for home internet increased with home offices.AT&T has spent the past few years investing in media businesses. It reached its 2021 goal a year early by acquiring 38 million subscribers in the US for both its HBO and HBO Max during the quarter. It now has 57 million subscribers across the globe compared to 36.3 million in the previous quarter. AT&T is trying to catch up its larger streaming rivals. Netflix, Inc. (NASDAQ: NFLX) currently has about 68 million U.S. customers and nearly 200 million across the globe. Disney+ from Walt Disney Co (NYSE: DIS) has more than 60 million subscribers already as it reached its goal four years early.But the pandemic had taken a heavy toll on its media business. WarnerMedia which contains both HBO as well as the company's movie and TV studio saw its revenue drop from $8.4 billion in the year-ago quarter to $7.5 billion, as movie theaters largely remained shut.As for earnings, adjusted earnings per share dropped from last year's 94 cents to 76 cents, matching analyst expectations.Verizon Q3 With lockdowns measures being eased, Verizon gradually reopened all of its company-operated retail stores during the quarter. It successfully implemented touch-less retail appointments and curbside pickups.As a result, it added 283,000 postpaid phone subscribers, exceeding FactSet's average estimate of 268,000.Total operating revenue dropped 4.1% due to lower customer activity as well as the timing of launches. One of its key partners, Apple, Inc. (NASDAQ: AAPL), has delayed the launch of its new iPhone for approximately a month. Such delays resulted in operating revenue of $31.54 billion.Verizon's media revenue that covers Yahoo, HuffPost and TechCrunch was hit with as companies reduced their ad spending. It dropped 7.4% compared to the same quarter last year to $1.7 billionNet income also fell from last year's $5.34 billion $4.50 billion, or $1.05 per share in the quarter. The company estimated that pandemic-related costs amounted to approximately 5 cents per share.Excluding items, Verizon earned $1.25 per share, exceeding analysts' average estimate of $1.22.But full-year 2020 guidance was improved as adjusted EPS growth is expected in the range between 0% to 2%, as opposed to -2% to 2%.Takeaway The health crisis has brought global economies to a halt, but the Communication sector has been relatively less affected. Verizon benefited from people staying and working from home, and so did AT&T, mostly due to its streaming star.This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases - If you are looking for full Press release distribution contact: firstname.lastname@example.org Contributors - IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: email@example.comThe post AT&T and Verizon Beat Estimates appeared first on IAM Newswire.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Procter & Gamble Benefits From The Cleaning Boom * Tesla Has Another Profitable Quarter(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The days of Exxon Mobil Corporation (NYSE: XOM) being the most valuable energy company in the U.S. are over, with the newer NextEra Energy Inc (NYSE: NEE) passing the oil giant's market capitalization.ExxonMobil was also recently passed by rival Chevron (NYSE: CVX) as America's most valuable oil company.This marked the first time ExxonMobil has lost that title dating back to its days as Standard Oil Co. a century ago.About ExxonMobil: ExxonMobil is one of the largest oil companies in the world and owner of brands like Exxon, Mobil, Esso and XTO.At the end of 2019, Exxon Mobil had 8,728 million bbls of proven crude oil reserves and 1,597 million bbls of natural gas liquids. The company also has over 10,000 retail sites in the U.S. and more than 21,000 worldwide.ExxonMobil has been one of the largest companies in the United States by revenue. The company is one of only three companies to top the Fortune 500 list and one of 54 companies to appear on every list since it was first published in 1955.About NextEra Energy: NextEra's Florida Power & Light segment dates back to 1925 and serves 5 million customers in Florida. It's the largest electric utility in the U.S. on the basis of retail electricity produced and sold.The company's Gulf Power Co. serves 470,000 Florida customers.Generating more wind and solar energy than any other company in the world, NextEra Energy is considered one of the top clean energy producers.NextEra Energy Resources, the company's clean energy division, was formed in 1998 and operates in 37 states and four Canadian provinces.Related Link: Rockefeller Descendants Push For Banks To Stop Financing Fossil Fuel CompaniesExxon, NextEra Financials: Exxon Mobil reported revenue of $255.6 billion in fiscal 2019.This was the second-highest amount from the company over the last five years, only trailing fiscal 2018's total of $279.3 billion.Net income of $14.3 billion was the second-lowest of the last five years.One of the concerns around ExxonMobil is its high debt load of $26.3 billion and its ability to pay its dividend, which typically is increased every year.The company reported earnings per share of $3.36 in fiscal 2019, lower than its annual payout of $3.43 in dividends per share.NextEra Energy has grown its revenue from $17.5 billion in fiscal 2015 to $19.2 billion in fiscal 2019.Net income was $3.4 billion in fiscal 2019, a decrease from the two prior fiscal years.The company reported earnings per share of $7.82 in fiscal 2019. The company believes earnings per share will rise more than 10% each year going forward.Exxon, NextEra Stock Performance: Exxon Mobil shares are down 52% in 2020. Shares have fallen 58% over the last five years and around 50% in the last 10 years.Shares of NextEra Energy are up 24% in 2020. The stock has gained over 190% in the last five years and over 430% in the last 10 years.What's Next: NextEra Energy could be a winning stock if Joe Biden wins the 2020 presidential election. The company has a vision to be the largest and most profitable clean energy provider in the world. Biden favors clean energy investments going forward.NextEra Energy believes wind and solar will increase in usage as their prices decline and fall more in line with natural gas and other fossil fuel sources.A TechCrunch article notes the large investments by Blackstone, Microsoft Corporation (NASDAQ: MSFT), BlackRock, Amazon.com (NASDAQ: AMZN) and Bill Gates have made in the clean energy sector.ExxonMobil has been slow to adapt to moving past fossil fuels.The energy sector has been among the worst-performing sectors in the S&P 500.Exxon Mobil was removed from the Dow Jones Industrial Average in 2020 after 92 years in the popular market index.Photo courtesy of NextEra Energy.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Exxon Mobil's Dividend Yield Hits 10%: What Investors Need To Know(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.