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Paul Pelosi, the businessman spouse of Speaker Nancy Pelosi, bought calls in Apple, Tesla, and Disney, and bought shares of investment firm AllianceBernstein in late December.
Investing is all about finding profits, and investors have long seen two main paths toward that goal. Growth stocks, equities that will give a return based mainly on share price appreciation, are one route. The second route lies through dividend stocks. These are stocks that pay out a percentage of profits back to shareholders – a dividend, usually sent out quarterly. The payments vary widely, from less than 1% to more than 10%, but the average, among stocks listed on the S&P 500, is about 2%. Dividends are a nice addition for a patient investor, as they provide a steady income stream. Goldman Sachs analyst Caitlin Burrows has been looking into the real estate trust segment, a group of stocks long-known for dividends that are both high and reliable – and she sees plenty of reason to expect strong growth in three stocks in particular. Running the trio through TipRanks’ database, we learned that all three have been cheered by the rest of the Street as well, as they boast a “Strong Buy” analyst consensus. Broadstone Net Lease (BNL) First up, Broadstone Net Lease, is an established REIT that went public this past September in an IPO that raised over $533 million. The company put 33.5 million shares on the market, followed by another 5 million-plus picked up by the underwriters. It was considered a successful opening, and BNL now boasts a market cap over $2.63 billion. Broadstone’s portfolio includes 628 properties across 41 US states plus the Canadian province of British Columbia. These properties host 182 tenants and are worth an aggregate of $4 billion. The best feature here is the long-term nature of the leases – the weighted average remaining lease is 10.8 years. During the third quarter, the most recent with full financials available, BNL reported a net income of $9.7 million, or 8 cents per share. The income came mainly from rents, and the company reported collecting 97.9% of rents due during the quarter. Looking ahead, the company expects $100.3 million in property acquisitions during Q4, and an increased rent collection rate of 98.8%. Broadstone’s income and high rent collections are supporting a dividend of 25 cents per common share, or $1 annually. It’s a payment affordable for the company, and offering investors a yield of 5.5%. Goldman’s Burrows sees the company’s acquisition moves as the most important factor here. "Accretive acquisitions are the key earnings driver for Broadstone… While management halted acquisitions following COVID-induced market uncertainty (BNL did not complete any acquisitions in 1H20) and ahead of its IPO, we are confident acquisitions will ramp up in 2021, and saw the beginning of this with 4Q20 activity… We estimate that BNL achieves a positive investment spread of 1.8%, leading to 0.8% of earnings growth (on 2021E FFO) for every $100mn of acquisitions (or 4.2% on our 2021E acquisition volumes),” Burrows opined. To this end, Burrows rates BNL a Buy, and her $23 price target implies an upside of ~27% for the year ahead. (To watch Burrow’s track record, click here) Wall Street generally agrees with Burrows on Broadstone, as shown by the 3 positive reviews the stock has garnered in recent weeks. These are the only reviews on file, making the analyst consensus rating a unanimous Strong Buy. The shares are currently priced at $18.16, and the average price target of $21.33 suggests a one-year upside of ~17%. (See BNL stock analysis on TipRanks) Realty Income Corporation (O) Realty Income is a major player in the REIT field. The company holds a portfolio worth more than $20 billion, with more than 6,500 properties located in 49 states, Puerto Rico, and the UK. Annual revenue exceeded $1.48 billion in fiscal year 2019 (the last with complete data), and has kept up a monthly dividend for 12 years. Looking at current data, we find that O posted 7 cents per share income in 3Q20, along with $403 million in total revenue. The company collected 93.1% of its contracted rents in the quarter. While relatively low, a drill-down to the monthly values shows that rent collection rates have been increasing since July. As noted, O pays out a monthly dividend, and has done so regularly since listing publicly in 1994. The company raised its payout in September 2020, marking the 108th increase during that time. The current payment is 23.45 cents per common share, which annualizes to $2.81 cents – and gives a yield of 4.7%. Based on the above, Burrows put this stock on her Americas Conviction List, with a Buy rating and a $79 price target for the next 12 months. This target implies a 32% upside from current levels. Backing her stance, Burrows noted, “We estimate 5.3% FFO growth per year over 2020E-2022E, versus an average of 3.1% fo rour full REIT coverage. We expect key earnings drivers will include a continued recovery in acquisition volumes and a gradual improvement in theater rents (in 2022)." The analyst added, "We assume O makes $2.8 billion of acquisitions in each of 2021 and 2022, versus the consensus expectation of $2.3 billion. [We] believe our acquisition volume assumptions could in fact turn out to be conservative as, eight days into 2021, the company has already made or agreed to make $807.5 mn of acquisitions (or 29% of our estimate for 2021)." Overall, Wall Street takes a bullish stance on Realty Income shares. 5 Buys and 1 Hold issued over the previous three months make the stock a Strong Buy. Meanwhile, the $69.80 average price target suggests ~17% upside from the current share price. (See O stock analysis on TipRanks) Essential Properties Realty Trust (EPRT) Last up, Essential Properties, owns and manages a portfolio of single-tenant commercial properties across the US. There are 214 tenants across more than 1000 properties in 16 industries, including car washes, convenience stores, medical services, and restaurants. Essential Properties boasts a high occupancy rate of 99.4% for its properties. In 3Q20, the company saw revenue increase of 18.2% year-over-year, reaching $42.9 million. Essential Properties finished the quarter with an impressive $589.4 million in available liquidity, including cash, cash equivalents, and available credit. The strong cash position and rising revenues had the company confident enough to raise the dividend in going into Q4. The new dividend payment is 24 cents per common share, up 4.3% from the previous payment. The current rate annualizes to 96 cents, and gives a yield of 4.6%. The company has been raising its dividend regularly for the past two years. In her review for Goldman, Burrows focuses on the recovery that Essential Properties has made since the height of the COVID panic last year. “When shelter in place mandates went into effect in early 2020, only 71% of EPRT’s properties were open (completely or on a limited basis). This situation has improved in the intervening months and now just 1% of EPRT’s portfolio is closed… We expect EPRT’s future earnings growth to be driven by acquisition accretion and estimate 2.8% potential earnings growth from $100 mn of acquisitions,” Burrows wrote. In line with her optimistic approach, Burrows gives EPRT shares a Buy rating, along with a $26 one-year price target, suggesting a 27% upside. All in all, EPRT has 9 recent analyst reviews, and the breakdown of 8 Buys and 1 Sell gives the stock a Strong Buy consensus rating. Shares are priced at $20.46 and have an average price target of $22.89, giving ~12% upside potential from current levels. (See EPRT 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.
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Up more than 1,150% in the past year, Chinese electric-vehicle maker NIO (NIO) turned into one of the best-performing stocks of 2020 -- but one analyst thinks there are more gains to come. Initiating coverage on the "epitome of Chinese luxury brand[s]" and "domestic leader in EV manufacturing," Nomura analyst Martin Heung argues that even after its steep run-up, Nio stock remains a "buy" and has at least another 30% to run (above Friday's closing share price of $61.95). So why does Heung like Nio? In one word: Growth. And in another word: Batteries. On the growth front, Heung observes that EV-friendly infrastructure in China is improving, encouraging more car buyers to make the leap to electrics. "Conservatively," says the analyst, by as early as 2025 16.5% of new cars sold in the Middle Kingdom should be electrics, which implies an overall 31% annual sales growth rate for the industry (and probably a faster growth rate for leaders like Nio). Additionally, at some point electrics should reach critical mass (Heung estimates this will happen at 20% market penetration), which will convince even more car buyers to transition to electrics -- accelerating sales growth further. Helping Nio to maintain a market-leading position in China will be its "batteries as a service" (BaaS) business model, in which Nio sells cars to customers, leases the batteries to run those cars -- and then offers customers the ability to swap out their current batteries for new, fully-charged batteries as a faster alternative to charging the batteries. "By improving swapping time to only three minutes" and by placing such battery swapping stations throughout "most parts of the major cities in China, NIO hopes to redefine the whole user experience of owning an EV," says Heung. Swappable batteries, notes the analyst, helps to eliminate customers' range anxiety at the same time as it reduces wait times at charging stations, improving the customer experience in two different ways. Additionally, when arguably the most expensive and most important part of an electric car -- the battery -- is removed from the equation, customers will no longer need to worry about whether an aged car battery might reduce the resale value of their cars years down the road, removing yet another impediment to making a sale. In this way, Nio's BaaS strategy also helps to differentiate Nio's offerings, and builds a moat around the business. Widening and deepening that moat even further (to steal a phrase from Warren Buffett), Nio is encouraging customers to sign up for long-term, five-year battery leases in exchange for a lower cost per year -- essentially locking customers into its ecosystem for the lease term. All of the above, says Heung, positions Nio to become "the dominant power in China," in electric vehicles, at a time when EV adoption is surging, says the analyst. Even valuing the stock at a 25% discount to the prices investors are paying for its highest profile US rival, Tesla (on a price-to-sales basis), Heung feels these factors justify placing an $80.30 price target on Nio stock. So, that’s Nomura's view. Let’s have a look at what the rest of the Street has in mind for NIO shares. Based on 8 Buys and 6 Holds, the analyst consensus is a Moderate Buy. However, going by the $59.40 average price target, shares are anticipated to be changing hands at a 4% discount. (See NIO stock analysis on TipRanks) To find good ideas for EV 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 analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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* This weekend's Barron's cover story offers a slew of stock and bond picks from the latest Barron's Roundtable. * Other featured articles examine how last year's Barron's stock picks fared, what to focus on when investing in China and the latest signs of a speculative frenzy. * Also, the prospects for digital infrastructure stocks, video game IPOs, a video streaming leader, an auto parts supplier and more.Cover story "28 Investment Picks to Beat the Market" by Lauren R. Rublin offers a slew of top stock and bond recommendations for 2021 from Barron's Roundtable members Rupal J. Bhansali, Scott Black, Mario Gabelli and Sonal Desai. See if Microsoft Corporation (NASDAQ: MSFT) and Tesla Inc (NASDAQ: TSLA) made the cut.Daren Fonda's "4 Ways to Play a Boom in Digital Infrastructure" points out that cell tower stocks like Crown Castle International Corp (NYSE: CCI) and data center stocks like CoreSite Realty Corp (NYSE: COR) have lagged behind, despite their key role in the digital transformation.In "Barron's Stock Picks Beat the Market Again Last Year. Here's How We Did It," Avi Salzman indicates that Amazon.com, Inc. (NASDAQ: AMZN) and Twitter Inc (NYSE: TWTR) were among the key picks last year that helped Barron's beat the market. See how things turned out for the Barron's 2020 bearish calls though.Even as China is criticized for its social practices (including its treatment of the Uighur ethnic minority), it is making rapid progress on its environmental actions. So says "Investing in China Isn't Easy. Focusing on ESG Can Help" by Leslie P. Norton. Find out whether Barron's believes Tencent Holdings (OTC: TCEHY) is among the stocks that are worth a look now.In Jack Hough's "Roblox's Stock Listing and the Boom Market in Desperate Parents," the focus is on the wave of initial public offerings that is about to hit the market, now that everyone is playing video games. See how Barron's recommends that investors play this IPO boom, starting with Roblox, an online platform offering games created by users."GameStop Stock Is Just the Latest Sign of a Speculative Frenzy" by Randall W. Forsyth discusses how last week's short squeeze on GameStop Corp. (NYSE: GME) stock is the sort of action that was prevalent last August, just before the big techs stocks that drive the Nasdaq Composite topped out.See also: Benzinga's Weekly Bulls And Bears: Eli Lilly, Ford, GameStop, Intel, McDonald's And MoreApple Inc (NASDAQ: AAPL), Facebook, Inc. (NASDAQ: FB) and the rest of the FAANGs helped lift the stock market this past week, according to Ben Levisohn's "Big Tech Stages a Comeback. A Correction Could Be the Market's Next Act." See why Barron's now believes a retreat may be in the cards.In "For All Us Netflix Skeptics, It's Finally Time to Concede," Eric J. Savitz examines how, as Netflix Inc (NASDAQ: NFLX) starts to generate cash, the company has a lot more flexibility. Discover what Barron's thinks could come next from the video streaming colossus. Sports? News? Music? Perhaps even gaming?Teresa Rivas's "LKQ Is Helping Itself to a Higher Price" explains that shares of LKQ Corporation (NASDAQ: LKQ) have been stuck in neutral for years, but 2021 could see things turn around for the specialty automotive parts supplier. See why Barron's says that the pandemic forced the company to do what it should have done long ago and now the stock is a buy.Also in this week's Barron's: * Barron's annual ranking of the top-performing sustainable funds * How Biden's China policy will look different from Trump's * Why Biden shouldn't let the federal debt deter a spending spree * Why the stock market is ignoring coming tax hikes * What the originator of the 4% rule thinks about it now * How the tourism industry is scrambling after new CDC guidelines * The humanitarian crisis at sea that threatens global supply chains * What to know about expiring COVID-19 homeowner protections * Undervalued European stocks poised to beat pre-pandemic earnings in 2021At 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.Photo by Dwight Burdette via Wikimedia.See more from Benzinga * Click here for options trades from Benzinga * Notable Insider Buys Of The Past Week: Affirm, HEICO, Vector Group, Biotechs And More * Benzinga's Weekly Bulls And Bears: Eli Lilly, Ford, GameStop, Intel, McDonald's And More(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.We surveyed a group of over 500 investors on whether shares of Jumia Technologies AG - ADR (NASDAQ: JMIA) will reach $100 by 2022. Jumia Stock Forecast Jumia Technologies is a pan-African e-commerce platform that connects sellers with consumers. It includes a logistics service for shipping and delivering packages from sellers to consumers. The company also has a payment service for transactions among participants in selected markets.Jumia directly provides more than 5,000 jobs and many more through the sellers and logistics partnerships. In a case for future growth, research by Jumia suggests less than 1% e-commerce penetration in Africa versus 12% in the U.S. and 20% in China.Jumia's stock was trading as low as $2.15 in early 2020 and was valued at a few hundred million dollars. After an explosion of growth amid the pandemic, Jumia now trades at around $59 with a market cap of $4.62 billion dollars.It can be said Jumia seeks to become the Amazon.com Inc (NASDAQ: AMZN) of Africa, as the firm attempts to achieve market penetration within Africa similar to that of the FAANG giant.Other e-commerce firms to consider, and who Jumia may choose to model themselves after amid the firm's rise, include Alibaba Group Holding Ltd - ADR, Shopify Inc (NYSE: SHOP), Wayfair Inc (NYSE: W) and Overstock.com Inc (NASDAQ: OSTK). Our study revealed 74% of Benzinga traders and investors think Jumia will reach $100 per share by the end of next year.Traders and investors who participated in our study believe shares of Jumia will continue to grow off an increased desire to receive goods via e-commerce delivery services across the African continent, as well as a shared belief that Jumia will eventually be viewed as a tech company first and foremost, and an e-commerce service provider second.See Also: Best Tech Stocks.This survey was conducted by Benzinga in January 2021 and included the responses of a diverse population of adults 18 or older.Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 500 adults.Photo courtesy Jumia.See more from Benzinga * Click here for options trades from Benzinga * Will Carnival, Royal Caribbean Or Norwegian Stock Grow The Most By 2022? * Benzinga Named One Of The Top Detroit Startup, Tech Companies For 2021(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tesla Inc (NASDAQ: TSLA) on Friday sued a former employee over claims of stealing trade secrets.What Happened: The electric-vehicle maker accuses Alex Khatilov of stealing more than 6,000 files of software code. The suit was filed in a U.S. District Court in California.Khatilov is a software engineer who worked at Tesla for under two weeks at the tail end of last year and the beginning of this year. Tesla alleges that he immediately began uploading source code when he took the job.Khatilov says he uploaded files to Dropbox so he could access them on his personal computer and that he didn't know that using Dropbox was prohibited. He says he did not share the files with anyone.Why It Matters: The code is used for back-end business and automation processes that Tesla says could be used by competitors. Tesla has a track record of aggressively going after former employees on grounds of stealing trade secrets. Trade Action: Tesla shares closed at $846.64 on Friday, up 0.2%.See more from Benzinga * Click here for options trades from Benzinga * Tesla Takes Legal Action Against Chinese News Outlet Over Report Of 'Sweatshop' Conditions At Shanghai Gigafactory: Global Times * Tesla Searching For Director, Staff As It Plans To Set Up Design Studio In China: Reuters(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Every week, Benzinga conducts a survey to collect sentiment on what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.This week we posed the following question related to cruise line stocks:Over the next year, which cruise line stock will have the largest percentage gain? * Carnival Corp (NYSE: CCL) * Royal Caribbean Cruises Ltd (NYSE: RCL) * Norwegian Cruise Line Holdings Ltd (NYSE: NCLH)Survey Says About 38% of traders and investors back Carnival to grow the most by 2022. Carnival operates in virtually all major vacation destinations worldwide. Carnival's cruises were shut down completely for most of 2020 due to the pandemic and will likely remain shut down for at least a couple of months in 2021, as well. The stock dropped 57.2% in 2020.Next, 33% of investors believe Royal Caribbean will gain the most. Like Carnival, Royal Caribbean operates as a global cruise vacation company. The company's mainstay brands include Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises.Meeanwhile, traders and investors were the least confident in Norweigan's growth prospects over the next year, as 29% of respondents told us shares of Norweigan would grow the most in 2021.Norwegian shares dropped a nearly identical 56.2% in 2020 for nearly identical reasons that the Carnival and Royal Caribbean shares lagged.As far as other travel stocks are concerned, it can be said that low-cost ticket models in the vein of Spirit Airlines Incorporated (NYSE: SAVE), JetBlue Airlines Corporation (NASDAQ: JBLU) or Southwest Airlines Co (NYSE: LUV) have the potential to lead travel demand once the pandemic subsides.As the American and global economy recover, and if vacation travel were to return by summer 2021, budget-conscious travelers may first seek accommodations from the most affordable cruise lines. This survey was conducted by Benzinga in December 2020 and included the responses of a diverse population of adults 18 or older.Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 500 adults.See more from Benzinga * Click here for options trades from Benzinga * Benzinga Named One Of The Top Detroit Startup, Tech Companies For 2021 * Will FuelCell, Plug Power Or Blink Charging Stock Grow The Most By 2022?(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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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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