King’s Presidential Scholar Mark Smith discusses what the Republican National Convention will focus on.
King’s Presidential Scholar Mark Smith discusses what the Republican National Convention will focus on.
The company announced in a statement that CEO, Edward Lampert, would step down, with day-to-day operations managed by three high-ranking executives. Where is Sears Today? A bankruptcy judge approved the sale of the company's assets for $5.2 billion to Lampert in a bankruptcy auction.
The rule of 70 is used to determine about how long it will take an investment to double in size while growing at a consistent rate of return. The rule is far from exact, but it can nonetheless help you … Continue reading ->The post What Is the Rule of 70, and How Do You Use It? appeared first on SmartAsset Blog.
While the S&P 500 and a wide range of stocks continue their September slide, many investors are understandably jittery, wondering if a second market crash is coming this year. In response, they're searching for industries that can offer more stability, but also growth and income over the coming quarters. One such group are the so-called "sin stocks," which benefit when humans indulge in vices.Although there may be different definitions of sin stocks, these businesses include those in alcohol, tobacco, cannabis, gambling, adult entertainment, weapons and defense industries. What is viewed as a sin stock today may also change over time.Recent research by David Blitzo of Robeco Asset Management in Rotterdam, the Netherlands, and Frank J. Fabozzi of EDHEC Business School in Nice, France, highlights how "various studies … [of] the historical performance of sin stocks … [show] they have delivered significantly positive abnormal returns."InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat is to say, sin stocks outperform the broader market time and again, and that isn't based on one study; it's based on many studies, by different researchers at different times.Sales figures from companies back up the anecdotal evidence that even in economically difficult periods, tobacco and alcohol consumption remain fairly stable. In fact, during the early weeks of the pandemic, alcohol sales in the U.S. increased by 27%. * 7 Hot Stocks to Buy on Robinhood Now Therefore, for investors whose convictions allow them to invest in these firms, such stocks can provide meaningful diversification during volatile market periods. On the other hand, some sin stocks, particularly casino stocks, have suffered greatly as gambling locations remain closed due to lockdowns.With all that in mind, here are seven sin stocks to invest for the long-run: * Advisor Shares Vice ETF (NASDAQ:ACT) * Constellation Brands (NYSE:STZ) * ETFMG Alternative Harvest ETF (NYSEARCA:MJ) * iShares U.S. Aerospace & Defense ETF (CBOE:ITA) * Smith & Wesson (NASDAQ:SWBI) * VanEck Vectors Gaming ETF (NASDAQ:BJK) * Vanguard Consumer Staples Index Fund ETF (NYSEARCA:VDC)Most sin industry stocks also bear juicy dividends. Thus, they could be appropriate for investors seeking passive income, especially in a low-interest environment such as this. Sin Stocks to Buy: Advisor Shares Vice ETF (ACT)Source: Shutterstock 52-Week Range: $16.16 - 26.95Dividend Yield: 2.41%Net Expense Ratio: 0.99 % per yearOur first choice is an exchange-traded fund (ETF), best for investors who would rather not risk capital on one company. The AdvisorShares Vice ETF concentrates mainly on U.S.-listed alcohol and tobacco companies. It may also hold stocks of firms conducting federally legal cannabis business, per the U.S. government.As regular InvestorPlace readers likely know, marijuana remains illegal at the federal level in the U.S. At the state level, legal status depends on the laws of the individual state. Outside of Canada, which was the first G7 country to nationally legalize cannabis, the size of the legalized marijuana industry remains very small. Yet that market is expected to reach $40 billion by 2023.In terms of ETF composition, cannabis-related firms top the list with a 40.9% weighting. Next are alcohol (27.1%), Restaurant & Entertainment (12.2%), and Tobacco with Cannabis Exposure (11.3%). Close to 80% of the companies come from North America, followed by Europe (13.3%).ACT's top ten holdings comprise around 60% of total net assets, which stand close to $10 million. ACT's top five companies are Boston Beer (NYSE:SAM), Thermo Fisher Scientific (NYSE:TMO), Abbott Laboratories (NYSE:ABT), Turning Point Brands (NYSE:TPB) and Abbvie (NYSE:ABBV). A closer examination of the holdings shows that there is considerable emphasis on life-sciences. For example, in Canada, Thermo Fisher undertakes cannabis compliance activities. Another holding is Scotts Miracle-Gro (NYSE:SMG), which is known for its fertilizer products, used by marijuana producers.So far in 2020, the fund is up around 3%. Yet since the lows seen in early spring, ACT is up around 55%. In fact, on September 16, it hit a 52-week high.Any decline toward the $22.5-level would make the fund more attractive for long-term investors. However, we'd like to underscore the high management fee as well as the fact that it is still a smaller size fund. Constellation Brands (STZ)Source: ShinoStock / Shutterstock.com 52-Week Range: $104.28 - $210.65Dividend Yield: 1.62%Victor, New York-headquartered Constellation Brands' website highlights that it is the fastest-growing large consumer packaged goods (CPG) company in the U.S. at the retail level. And in addition to the U.S., the global alcoholic beverage company has operations in Mexico, New Zealand and Italy as well.The group produces and markets beer, wine and a diverse range of spirits. Several of its well-known brands include Corona, Modelo, Pacifico, Robert Mondavi, SVEDKA Vodka, Casa Noble Tequila and High West Whiskey.In 2018, Constellation Brands took a considerable stake in Canada-based Canopy Growth (NYSE:CGC), providing the company with managerial and financial backing. There may be investors who are hoping that Constellation Brands, which holds a 38% stake in the company, will acquire the remaining shares of Canopy Growth. Given the question marks surrounding the cannabis industry and the global economy, we don't expect such an acquisition to happen in the near-term.Year-to-date (YTD) the stock is down about 2%. Part of the weakness in price may come from the fact that its wine and spirits business has seen lower shipments in 2020. But the beer business is strong, posting the tenth consecutive year of rising shipments. * 7 Hot Stocks to Buy on Robinhood Now Since the lows seen in March, the shares are up about 80%. As a result of the rapid increase, forward P/E and P/S ratios have also been pushed up, standing at 20.75 and 4.33 respectively. We'd look to buy the shares around $170. ETFMG Alternative Harvest ETF (MJ)Source: Shutterstock 52-Week Range: $8.81 - $23.44Dividend Yield: 10.76%Expense Ratio: 0.75%Our next choice is an ETF from the cannabis space. The ETFMG Alternative Harvest ETF tracks the Prime Alternative Harvest index. MJ stock invests in companies that have exposure to global medicinal and recreational cannabis legalization moves.Pharmaceuticals (56.4%), Tobacco (24.7%) and Biotechnology (9.1%) are the top 3 sectors for MJ, which has 35 holdings. The top ten holdings comprise about 60% of total net assets, which are around $550 million. MJ's top five companies are GW Pharmaceuticals (NASDAQ:GWPH), Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC), Corbus Pharmaceuticals (NASDAQ:CRBP) and Aurora Cannabis (NYSE:ACB).It's important to note that U.K.-based GW Pharmaceuticals, a leading cannabinoid-focused biotech company, is MJ's largest holding, accounting for 11.1% of its assets. Its drugs are widely used to treat spasms in multiple sclerosis patients. The fund also owns shares of the companies providing ancillary products and services to the cannabis companies.So far in 2020, Canada-based marijuana stocks have been plumbing new lows. Producing cannabis is capital-intensive, meaning pot firms make substantial initial and ongoing investments. These companies are also vulnerable to supply and demand issues.Over the past year, a wide range of Canadian regulatory logjams have resulted in supply problems for companies like Cronos, Canopy Growth, and Aurora Cannabis. Plus, most of the demand for cannabis is currently limited to Canada where there is still a resilient black market. As a result, the next few months may see consolidation in the industry north of the border.YTD, the fund is down about 36%. It is likely that MJ may re-test its lows seen earlier in March. Investors who are able to spare risk capital may consider investing for the long-run around $7.5. iShares U.S. Aerospace & Defense ETF (ITA)Source: Shutterstock 52-Week Range: $112.47 - $240.62Dividend Yield: 2.26%Expense Ratio: 0.42%The iShares U.S. Aerospace & Defense ETF provides exposure to U.S. companies that manufacture commercial and military aircrafts and other defense equipment. ITA, which has 35 holdings, tracks the Dow Jones U.S. Select Aerospace & Defense Index.The top ten companies comprise 75% of net assets under management, which stand close to $2.7 billion. Lockheed Martin (NYSE:LMT), Raytheon Technologies (NYSE:RTX) and Boeing (NYSE:BA) are the top three holdings for ITA. Put another way, investors are relying on a few major players for returns. * 7 Hot Stocks to Buy on Robinhood Now Many analysts concur that U.S. defense spending is likely to remain high. However, the headwinds affecting orders, especially for Boeing, may stay with us for some time. This fact is potentially already reflected in the price, which is down close to 30% YTD.Contrarian and dividend-seeking investors may find this fund appealing. Smith & Wesson (SWBI)Source: Supakorn Pe / Shutterstock.com 52-Week Range: $4.16 - $22.40Dividend Yield: 1.26%Springfield, Massachusetts-based firearms manufacturer Smith & Wesson is our next stock. The company was founded in 1852. Earlier in August, it spun off American Outdoor Brands (NASDAQ:AOUT) as a separate entity.In August, the company released FY 2020 annual report and highlighted that nationwide firearm demand remained extremely high. Sales numbers and anecdotal evidence suggest that guns have recently been flying off the shelves in many parts of the country.During the year, the group introduced 230 new firearms. A third of those were brand new products, while the rest were line extensions. Net sales for the fiscal year were $678.4 million, an increase of 6.3% from a year ago. The firearms segment gross sales represented a 10% increase over fiscal 2019 sales. The company's gross margins have been climbing and now stand at a robust 40.2%.YTD, SWBI shares are up close to 70%. The upcoming U.S. Presidential election may bring volatility in the stock price. However, long-term investors may consider buying the dips. Its P/S and P/B ratios stand out, at 1.01 and 1.95 respectively. VanEck Vectors Gaming ETF (BJK)Source: Shutterstock 52 Week Range: $ 20.02 - 43.73Dividend Yield: 3.23%Expense Ratio: 0.65%The VanEck Vectors Gaming ETF provides exposure to companies in the global gaming industry. That includes casinos and casino hotels, sports betting, lottery and gaming services, and gaming technology and equipment.BJK, which has 42 holdings, tracks the MVIS Global Gaming Index. The top sector allocation is Consumer Discretionary (91.1%), followed by Real Estate (9.2%).The top ten holdings constitute over 55% of net assets, which stand around $53 million. Flutter Entertainment (OTC:PDYPY), Galaxy Entertainment Group (OTC:GXYEF) and Draftkings (NASDAQ:DKNG) are the top three firms in BJK.At present, in the U.S., DraftKings and FanDuel, which is part of Europe-based Flutter Entertainment, are the two main online platforms for sports and sports fantasy betting. DKNG stock, which went public in late April, is up over 400%. Flutter Entertainment, which is one of the largest gambling companies in the world by revenue, is also up about 23%. * 7 Hot Stocks to Buy on Robinhood Now However, the fund as a whole is down about 9% so far in 2020. Investors who want to capitalize on the potential of sports betting as well as the growth in fantasy sports both in the U.S. and worldwide may want to do further due diligence on the fund. We'd look to buy the dips. Vanguard Consumer Staples Index Fund ETF (VDC)Source: Shutterstock 52-week range: $120.70-$172.31Dividend Yield: 3.05%Expense Ratio: 0.10% per yearOur final pick is another ETF. However, it's not a pure play on sin stocks. Instead the Vanguard Consumer Staples Index Fund ETF provides exposure to a range of large-, mid-, and small-cap U.S. stocks in the consumer staples sector. As a result, this fund is defensive in nature.VDC, which has has 94 holdings, tracks the Spliced US IMI Consumer Staples 25/50 Index. The most important sectors (by weighting) are Household Products, Soft Drinks, Packaged Foods & Meats and Hypermarkets & Super Centers. In total, these four sectors make up about three-quarters of the fund.The top ten holdings comprise 65% of total net assets, which stand at $6.5 billion. These are businesses with competitive positions and strong balance sheets and revenue streams. Among those ten companies are two businesses that would be considered sin stocks, i.e., Philip Morris International (NYSE:PM) and Altria (NYSE:MO).Phillip Morris International is a global cigarette and tobacco manufacturing company, whose products are sold in over 180 countries outside the U.S. The most recognized brand is Marlboro. Altria's subsidiaries, on the other hand, include Philip Morris USA, which is engaged in the manufacture and sale of cigarettes in the U.S. as well as several other brands which manufacture, produce and market tobacco products and wine.In 2020, the fund has returned about 0.3%, i.e. it's flat. Given the health and economic uncertainties due to the pandemic, market participants may consider allocating some capital into VDC. We'd look to buy the dips, especially around $155 or below.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 * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 7 Sin Stocks To Buy That Will Outperform the S&P 500 appeared first on InvestorPlace.
Nikola Corporation's founder Trevor Milton purchased the original design for the company's flagship truck from a Croatia-based designer, the Financial Times reported https://on.ft.com/3mWv2s7 on Saturday, citing people with knowledge of the matter. Nikola One, the company's flagship hydrogen-powered truck truck, is at the centre of a design patent infringements lawsuit that Nikola filed against Tesla Inc in 2018. Nikola claimed, Tesla's Semi, its first electric heavy duty truck, is "substantially" similar to Nikola's design.
If anyone had told you in January what this year would have in store, you would have worried about their mental condition. Now, we're all worrying about our own.A crazy market. The terrible toll of the novel coronavirus. A brutal election campaign. Lockdowns. Huge unemployment. The race for a vaccine.And that's just the tip of the iceberg.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo far, September has been more about profit taking as the third quarter winds down rather than extending the rally. The challenge is, since the stock market is forward looking, seeing six months down the road is getting a bit tougher to see.Will there be a vaccine? Who will win the elections? Will there be a second wave along with the regular flu season? * 7 Hot Stocks to Buy on Robinhood Now Investors are taking some profits off the table. But there are still some stocks you can buy now that will continue to run thanks to more fundamental trends. These are the seven best stocks to buy for the fourth quarter and beyond: * Salesforce (NYSE:CRM) * Etsy (NASDAQ:ETSY) * PennyMac Financial Services (NYSE:PFSI) * Shenandoah Telecommunications (NASDAQ:SHEN) * Shutterstock (NYSE:SSTK) * Stamps.com (NASDAQ:STMP) * Zoom Video Communications (NASDAQ:ZM) Stocks to Buy: Salesforce (CRM)Source: Bjorn Bakstad / Shutterstock.com One of the pioneers in enterprise management software for customer resource management (CRM), it now is the dominant player in this space and has been expanding its base and capabilities for nearly two decades now.Basically, CRM allows companies to manage and analyze its interactions with past, current and potential customers. Within an enterprise level customer base, this can be very complicated. And if different sales and customer service teams are working with these customers, bringing everyone in the loop has also been challenging.And this doesn't take into account access to marketing research and senior management access.Salesforce is now cloud-driven and remains the top player in the sector. And given the work from home transition we've seen, that means a growing amount of new opportunities for sales.CRM stock is up 54% in the past year, with some recent profit taking. But that makes it an even better buy. Etsy (ETSY)Source: quietbits / Shutterstock.com When there's 30 million people out of work, and many more waiting to see if their jobs (or businesses) will be returning in coming months, this online marketplace is one of the biggest beneficiaries.ETSY has built its business on helping individuals sell unique items in its online marketplace. Whether it's about building a side gig out of a hobby or launching a home business, ETSY is built for people looking to work outside of the typical 9 to 5.And the pandemic has really boosted its business, both from the supply and demand side. With local shops closed and people sitting around looking to decorate their surroundings, ETSY has become the new shopping mall.What's more, it's differentiated enough from competition like eBay (NASDAQ:EBAY), since EBAY focuses on a broad swath of branded and discount new consumer goods, rather than handmade boutique products. * 10 ESG Stocks to Buy for a Brighter Future The stock is up 160% year to date, but revenue is rising and there are strong signs ETSY is now big enough to keep this momentum going as e-commerce takes hold. That's what makes it one of the best stocks to buy now … it's also what makes it similar to the investments in Growth Investor. PennyMac Financial Services (PFSI)Source: Shutterstock You may not have heard the name, but PFSI is the No. 4 home mortgage lender in the US. And it's the No. 1 government loan lender.The crazy thing is, the stock is up 83% in the past year but it only has a $4 billion market cap and a P/E below 5x. And it has a 1% dividend.And it's not like being in the mortgage business is a bad place to be. We have record low mortgage rates that will likely extend for years to come, certainly well beyond the pandemic. Home sales are already very strong, even in this economy.The point is, PFSI is a bargain now and has plenty of headroom moving forward. Shenandoah Telecommunications (SHEN)Source: Shutterstock This Virginia-based telecom has been around for nearly 120 years at this point. And given all the advances as well as the growth of massive telecoms like AT&T (NYSE:T) and Verizon (NYSE:VZ), the latter is even a major player in its service area, SHEN remains a strong company.Now with a $2 billion market cap, it's not going to take on the big guys. It has a niche market that runs along the Appalachian Mountains from Maryland to Kentucky. But this broadly rural swath of its service area has come to rely on this provider for mobile, broadband and landline service for quite a while.Given its size and longstanding regional business, it remains a solid standalone as well as an interesting takeover target. All of these aspects are what make getting in at the right time the key to long-term success in investing. * 7 High-Potential Undervalued Stocks to Buy The stock is up 33% in the past year, even after some recent selling. It provides a 0.7% dividend, which is at least competitive with CDs. Shutterstock (SSTK)Source: Nova Patch / Shutterstock.com This licensed content company started in 2003 in the aftermath of the dotcom bubble. The founder, Jon Oringer, saw the possibilities of digital photography and the growing need for digital images to put on websites and other online media.Stock footage, as it's called in the industry, is about creating libraries of visual content and making those libraries available to designers and publishers for a fee. The fees can be subscription based or per piece.Oringer started with a library of 30,000 of his own stock photos. As the business grew, the company added new tools and a variety of packaging options for amateur photographers as well, like processing digital photos or building custom packaging (photo albums, Christmas cards, etc.).Now, SSTK has more than 340 million images and over 1 million contributors in more than 150 countries.With a market cap just under $2 billion, it's still a niche player in this space, but that can be a good thing when you're looking for unique images.The stock is up 48% in the past year and still delivers a 1.3% dividend. Like many of the stocks in Growth Investor, it has a strong growth story on its own and also would make a tasty takeover target. Stamps.com (STMP)Source: Michael Vi / Shutterstock.com In a home-based world, digital solutions become increasingly important. And the belief is, now that people and businesses have converted to this new digital, remote normal, many business models will benefit.One of those is buying postage online through STMP.Stamps and postage used to be a pretty simple process; you could even buy them at the grocery store from the cashier. But now, even grocery shopping has become a risky activity. And standing in a line at the post office is certainly not on the top of anyone's hit parade.STMP has been around since 1996 but is finally coming into its own. The company also provides more than postage for individuals. It also has shipping software and services for high-volume shippers. Our new normal is very bullish for STMP services. Identifying oddball scenarios like this where a company is bound to thrive is one of the main ways you might enjoy enduring success as an investor. While it's hard to stay ahead of the curve, Project Mastermind takes much of the hard work out of the equation with a tried and true predictive model for trading. * 7 Hot Stocks to Buy on Robinhood Now STMP stock is up more than 200% in the past 12 months, yet it's trading at a P/E of 48x and has a $4 billion market cap. It has found its stride. Zoom Video Communications (ZM)Source: Michael Vi / Shutterstock.com Talk about a unicorn company. Just three years ago, ZM was a video conferencing startup that promised more user-friendly video conferencing for individuals and small businesses, as well as academic institutions. It had a $1 billion valuation.ZM stock went public in 2019 with about a $11 billion market cap. Then the pandemic hit.ZM is now at a $142 billion market cap and the stock is up 512% in the past year.The important thing to bear in mind in this tech space is when something gains popularity on this scale, it's tough for anyone to compete. The tech, in this case ZM's videoconferencing, has been adopted and is now the default for millions of people around the world. The same thing happened with Twitter (NYSE:TWTR) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). It wasn't as much the tech as the speed of adoption and ease of use.It has caught lightning in a bottle.And now that it's a serious large-cap tech stock, it has money and visibility to grow for years to come.But when it comes to tech stocks to buy for long-term growth, the success for ZM stock is just the tip of the iceberg. It's no secret that AI stocks are among the hottest plays on Wall Street now, but there's an AI play that investors are overlooking. Their oversight is your path to significant wealth.The "AI Master Key" is a lesser known machine learning leader that will revolutionize countless industries. From healthcare to agriculture, finance to cybersecurity, this company will be at the head of it all. It's the key to unlocking the most significant technological revolution in human history and all the great profits that come with it.But that's just the tip of the iceberg for Growth Investor subscribers. Backed by the strongest research team on the market and my innovative approach to investing, Growth Investor has outperformed the S&P by a factor of 3-to-1. It's where you can find groundbreaking growth plays like my AI Master Key long before they become household names.On the date of publication, Louis Navellier had long positions in ETSY, PFSI and ZM. 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.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post TheÂ 7 Best Stocks to Buy for the Fourth Quarter appeared first on InvestorPlace.
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During times of uncertainty, investors crave a sure thing. There are times to be "risk-on" and there are times to be "risk-off." When investors flock to the latter, they often look for companies with no debt.That doesn't mean these stocks won't fluctuate with the overall market. But there is a level of comfort in owning stocks with financial stability.Look back at how most individual stocks performed in March. The market threw a tantrum and nearly every name was punished. But those that were punished the most are those with the shakiest financials.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPlus, who wants to own a stock with poor financial positioning? There's a reason people say "cash is king." * 7 Hot Stocks to Buy on Robinhood Now Here are 7 companies with no debt you need to know about: * Intuitive Surgical (NASDAQ:ISRG) * Pinterest (NYSE:PINS) * Monster Beverage (NASDAQ:MNST) * DraftKings (NASDAQ:DKNG) * Lululemon Athletica (NASDAQ:LULU) * Progyny (NASDAQ:PGNY) * Fastly (NYSE:FSLY)At the end of the day, the companies with the biggest bank accounts have the most flexibility, and can better withstand long economic disruptions. They can lean on M&A, taking investments stakes in other companies and outmuscling their debt-ridden peers. Companies With No Debt: Intuitive Surgical (ISRG)Source: Sundry Photography / Shutterstock.com Rarely do you see a balance sheet like that of Intuitive Surgical, making it a great candidates to kick off our list of stocks with no debt.The company has $10.1 billion in total assets with just $1.3 billion in total liabilities. A robust balance sheet may boast a five-to-one ratio between total assets and total liabilities, but there aren't many companies in that category. Intuitive Surgical's asset-to-liability ratio sits at nearly 10.Of those assets, almost $4.5 billion is held in cash. Not only does that give the company flexibility in a time of uncertainty, it should also give investors relief knowing that it will not suffer a liquidity event. The downside to Intuitive Surgical is this year's growth estimates. Analysts expect sales and earnings to decline this year, before snapping back to very strong results in 2021.Known mostly for its Da Vinci Device, the health field is one that will continue to grow and innovate over time. Admittedly, the novel coronavirus has disrupted the medical industry, but ultimately procedures will go on.As CEO Gary Guthart said in the most recent earnings report, "We've seen hospitals with adequate supplies of staff, PPE and physical resources returned to above 90% of pre-COVID procedure run rates over a few months period." Pinterest (PINS)Source: Nopparat Khokthong / Shutterstock.com Pinterest is one of my favorite names on this list. Considered a social media stock, it's not just the conventional social online platform we've come to know.The company is one of the most efficient at turning ad dollars into revenue, something that makes Pinterest a very lucrative platform for businesses. That's also helped to fuel its top-line growth. Despite the slowdown from the novel coronavirus, Pinterest still found a way to grow sales last quarter. Analysts are forecasting more than 26% growth for the year despite the economic uncertainty.But the real beauty lies in the way management handles its finances. Pinterest is expected to swing to profitability this year, from roughly break-even operations in 2019. The company is also free cash flow positive on a trailing basis. * 7 Hot Stocks to Buy on Robinhood Now With no debt, $1.7 billion in cash and plenty of long-term growth potential, Pinterest is a stock to own for long-term investors. Monster Beverage (MNST)Source: Domagoj Kovacic / Shutterstock.com Everyone looks to tech when thinking about the biggest long-term winners. Few think of Monster Beverage.While shares are up modestly over the past few years, this stock has been a beast over the long term. Monster Beverage is up 942% over the last 10 years and an unimaginable 80,000% over the last 20 years.Obviously we're not going to get those returns again, but that doesn't make Monster one to avoid. The stock is forecast to have steady growth in 2020 and 2021\. Analysts expect 7% sales growth this year and an acceleration to 10.7% growth next year. For earnings, estimates call for 10.3% and 13.3% growth this year and next year, respectively.On top of it, the balance sheet is enviable. Monster boasts $5.15 billion in total assets, more than five-fold the $979 million it holds in total liabilities. Of course, it's a stock with no debt.Finally, Coca-Cola (NYSE:KO) acquired a 16.7% stake in the company in 2015. That stake has climbed to almost 20% thanks to Monster's buybacks. Perhaps Coca-Cola is content with its stake -- but perhaps it will be interested in an eventual takeover too. DraftKings (DKNG)Source: Lori Butcher / Shutterstock.com DraftKings is the youngest public company on the list. The company went public via a SPAC offering earlier this year and it has been on fire ever since.While newness doesn't automatically equate to riskiness, investors have to size up everything about DraftKings.Its positives include the secular trend toward legalizing online gaming and sports gambling. It has surprisingly solid growth given the massive disruption we've seen in the world this year.DraftKings is also a play on the economy reopening and a return to sports. The latter catalyst is also a risk, though. Should sports leagues postpone again and/or should the economy begin to lock down, DraftKings could find itself on the wrong side of the bet.Further, as of the most recent quarter, the company was not cash flow positive, nor is profitable yet. That said, some of those concerns are alleviated when considering the current circumstances. That includes realizing that the prior quarter came off the one of the quietest sporting periods in decades. * 7 Hot Stocks to Buy on Robinhood Now Further, one must realize that DraftKings can bide its time through the unrest. With minimal cash burn, $1.2 billion in cash and no debt, there's no need to worry about a liquidity situation. Lululemon Athletica (LULU)Source: Richard Frazier / Shutterstock.com Lululemon Athletica probably isn't a name many investors expected on this list. Years ago, the retailer had trouble finding the sweet spot. However, that's all changed as Lululemon is now a premiere retailer on Wall Street. The company has strong growth, in-demand products and, naturally, a robust balance sheet.The company's deep liquidity will allow it to restart its buyback plan, a move the retailer announced on September 22. Further, that liquidity allowed Lululemon to scoop up Mirror for $500 million earlier this year. The startup is an in-home fitness company and should help Lululemon expand into a new growth avenue.While that deal may slightly add to company debt, it's not something investors will need to worry about. At a time where retailers are dropping like flies and under severe pressure due to the coronavirus, Lululemon continues to thrive. Aside from its balance sheet strength, it continues to boast strong growth.Lululemon also continues to see direct-to-consumer (DTC) strength. DTC sales were up 157% year-over-year last quarter, representing more than 60% of all revenue. Progyny (PGNY)Source: Shutterstock A rarely discussed name, Progyny may be a stock investors want to keep on their radar.The company focuses its work on infertility, a trend that has been growing for quite some time now. That has translated to frustrated couples who have difficulty conceiving. That's where Progyny comes in to help -- and it's also where it has found solid growth.Coronavirus-related costs have weighed on Progyny this year, which is expected to earn just 12 cents per share this year. That's only up a penny from 11 cents per share in 2019. However, estimates call for a big-time acceleration in 2021, with more than 230% earnings growth to 40 cents per share.Further, revenue growth is no joke. Estimates call for almost 50% growth this year followed by 60% growth in 2021. Progyny is free-cash flow positive over the trailing 12 months, is profitable and has no debt. * 7 Hot Stocks to Buy on Robinhood Now This stock has had its ups and downs, falling almost 60% from its February high to the March low. However, the dip gives investors an opportunity to take a closer look at this name. Fastly (FSLY)Source: Pavel Kapysh / Shutterstock.com Let me preface this by saying that Fastly does technically have some debt. However it's very minute compared with its market cap and cash position.Fastly, a recent Wall Street darling, has $5.2 million in current debt and long-term debt of just $20.1 million. $25.3 million in combined debt vs. $385 million in cash and a market cap pushing $10 billion is nothing.Detractors will say that Fastly is just an edge-computing company in a commoditized market. Bulls would argue that it offers a superior product compared to its peers. Thanks to its superb management, Fastly is carving out a dominant position in an area that's rapidly becoming important in our Covid-19 world.As traffic grows and as data demand increases, more and more companies are moving to the edge. With the company's latest acquisition of Signal Science, it's also making a push into cybersecurity. This should open up another growth avenue for the company, driving long-term value. The cash and stock deal should also prevent a notable strain on the balance sheet.While Fastly stock may be a bit pricey due to its monstrous run, shares should still be primed for more upside in the future. The recent demand from increased internet and cloud use isn't going to subside overnight -- or in some bulls' estimates, at all.On the date of publication, Bret Kenwell held long positions in PINS and FSLY.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Could Tiny "Super" Battery Kill Big Tech? The post 7 Debt-Free Stocks to Buy For Peace of Mind In Volatile Markets appeared first on InvestorPlace.
This year has accelerated emerging trends leading to many bankrupt companies. Prior to the novel coronavirus pandemic, sectors like energy and oil were falling out of favor to a degree. Clean energy and technology trends led to that shift. Price wars and the pandemic supercharged the decline in oil. Retail has been absolutely crushed, and the same is true of entertainment stocks. This has accelerated the decline of weaker stocks in those respective sectors. The result is that multiple equities are now on bankruptcy watch. * The 7 Best Stocks to Buy for the Fourth Quarter Investors have shown a lot of propensity for risk and somewhat surprisingly have flocked to these equities. What follows is a discussion of stocks that are in dire straits. This includes the following:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Oasis Petroleum (NASDAQ:OAS) * Remark Holdings (NASDAQ:MARK) * Twinlab Consolidated Holdings (OTCMKTS:TLCC) * CBL & Associates Properties (NYSE:CBL) * Dave & Buster's (NASDAQ:PLAY) * AMC Entertainment (NYSE:AMC)None of these names are truly bankrupt companies yet. In fact, some of them may bounce back. But if you're betting on a comeback in these stocks, remember that they will need to change fundamentally. Let's take a closer look at what's going on with each of these companies now. Future Bankrupt Companies: Oasis Petroleum (OAS)Source: Shutterstock Oasis Petroleum is in dire straits. After hiring bankruptcy lawyers and missing debt payments the indicators couldn't be any clearer. OAS stock has been in decline for the past 5 years. Most recently, it skipped a $30 million interest payment on convertible 2022 notes. Oil and gas producers have been particularly hard hit during the pandemic. This continues a trend in the sector, which has seen price wars, growing green energy interest and demand bottom as people shelter in their homes. The trend doesn't show any signs of abating. According to BloombergLaw:"Oil and gas bankruptcies have accelerated this year as the coronavirus slows the economy and tamps demand. At least 36 companies have sought Chapter 11 protection in the first three quarters of 2020, according to a report from law firm Haynes and Boone LP. More than 240 producers have filed for bankruptcy since 2015."The company has been in distress for several years having had an operating loss for each of the past 3 years. During that same period, the firm issued $430 million in new debt. It also warned that it might be a going concern should it not be able to restructure its current debt. Remark Holdings (MARK)Source: Angyalosi Beata / Shutterstock.com According to its investor relations page, Remark Holdings is developing on AI focused software and business solutions. These are certainly areas that investors are interested in. But MARK stock might be one of the next bankrupt companies of 2020. Notably, the company has been on shaky footing for the past decade. It has been volatile but traded in the range of $5. It spiked above $14 in early 2018 and has been in sharp decline thereafter. The company plans to hold a vote Oct. 21 to increase the number of authorized common stock shares to 175,000,000. The company also dismissed its previous auditor on Aug. 31. * 10 ESG Stocks to Buy for a Brighter Future Remark has incurred $359.1 million in losses since its inception. The company's Altman-Z score is -22.9, which indicates extreme distress. Anything under 1.81 indicates bankruptcy is a serious possibility. Twinlab Consolidated Holdings (TLCC)Source: Shutterstock If you take nutritional supplements, there's a decent chance you'll be familiar with the next company on this bankruptcy list. TwinLabs sells supplements and has been active in the nutrition space since 1968. In the company's most recent 10-Q filing it raised questions about its own ability to continue as a going concern. Shares are traded on the pink markets at a current price of 10 cents. Given that larger, more well-known vitamin retailer GNC filed for bankruptcy and Twinlab has raised its own warnings, signs look dire. GNC will close more than 1,000 of its brick-and-mortar locations. CBL & Associates Properties (CBL)Source: Shutterstock Technically CBL & Associates is not on bankruptcy watch as it has already signaled its intent to file for Chapter 11 protection on Oct. 1. Under the agreement $900 million of debt and $600 million of other obligations were eliminated. Maturity on other outstanding debt was pushed out to later dates. As a commercial real estate investment trust operating commercial mortgages it was particularly hurt by the pandemic. CBL CEO Stephen D. Lebovitz was positive regarding restructuring, stating:"We also appreciate the confidence in the CBL organization and leadership team shown by the noteholders as we've worked collaboratively to find a solution that benefits all company stakeholders. Our goal is for this process to proceed as smoothly and as quickly as possible with no disruption to CBL's operations. Once the process is complete, we will emerge as a stronger and more stable company, with an enhanced ability to execute on our key strategies of diversifying our sources of revenue and transforming our properties from traditional enclosed malls to suburban town centers. As a result, we will be better positioned to grow our business over the near and long term."However, CBL stock has remained in the 20 cent range even after the news. So while the company likely has the financing to continue operations into the future, investors are not impressed that the restructuring will lead to positive results moving forward. * The 7 Best Stocks to Buy for the Fourth Quarter This doesn't bode well for the company as other companies nearing bankruptcy have seen a lot of investor interest during the pandemic. Dave & Buster's (PLAY)Source: Jeff Bukowski/Shutterstock.com PLAY stock recently jumped on news that a few analysts rated it a buy. Such news can easily spur a buying run by the markets. But the company has the same problems it had prior to that vote of confidence. In fact, the issues have been magnified due to the pandemic."The hospitality industry has been and will be hit the hardest by the pandemic," wrote Antoinette Tessmer, professor of practice in the Finance Department, Broad College of Business, Michigan State University, in an email to InvestorPlace. "Think of what our families have done over the last six months: we cancelled vacations, we restrain from eating out, we avoid large crowds and unfamiliar surroundings. Think of how conducting business has evolved in the last six months: we work from and eat at home, virtual meetings are the new normal, we do not "travel for business" any longer. Those behaviors have directly impacted restaurants, hotels, casinos, resorts, i.e., the hospitality industry."The company is in a period of volatility and has warned that it needs to restructure debt. As per Dave & Buster's most recent 10-Q filing, it has $224 million in cash and equivalents, and $731 million in long-term debt. In the current operating environment such imbalances can spiral. It reported an operating income loss of $142.5 million through Aug. 2. Total comprehensive income was $68 million through the 26 weeks prior to Aug. 2, 2019 for the firm. In the same period in 2020 debt has increased by $99 million. That means the company has to have a 26 week period to erase roughly $70 million of that $99 million. The company would then be $30 million short of erasing new debt. Despite the trading volatility that has seen PLAY stock pop, investors should be aware that the company is getting worse, not better. All of that long-term debt is more than a minor problem. It is cause for a company to become insolvent. Dave & Buster's has stated going concern issues and essentially needs that debt to be forgiven, and or restructured. But then what? It isn't exactly the sexiest company is it? Arcades and fast casual dining are lots of fun, but not exactly an area ripe for investment returns. AMC Theatres (AMC)Source: Helen89 / Shutterstock.com AMC opened over 35 theatres last week and has more than 460 open nationwide. This is of course a positive from a revenue and operational perspective. The company is highlighting its cleanliness standards amid the pandemic stating: "AMC is coming off our most successful weekend since reopening, thanks in large part to Warner Bros. release of TENET. And now, with more than 35 more AMC theatres opening this week, we will be showing movies in nearly 80 percent of our U.S. circuit. That is another encouraging sign that our industry is beginning its way back … [N]ew AMC Safe & Clean safety protocols are clearly resonating with our guests. We're seeing record-high guest scores for the cleanliness of our theatres, far exceeding the marks we've received in the decades we've been tracking guest feedback."Yet, the company has serious problems that extend beyond the coronavirus. And that issue makes it one of the next potential bankrupt companies to watch. To be sure, the company's problems have been exacerbated by the pandemic, but they existed long before. AMC stock will benefit by adhering to new cleanliness standards. But the company must tackle debt. Based on the figures that I see, that may be impossible.AMC has massive corporate debt and massive operating lease liabilities. Based on cash flows and current cash on hand, the math looks murky at best. In fact, it looks downright bad. Simply consider the firm's operating activity cash flows as they relate to debt and lease liabilities and as an investor you'll see why this firm is on bankruptcy watch. Last year (2019) was a very bad year for AMC. This year has been an absolute catastrophe. In the first six months of 2019, AMC showed an operating loss of $80.8 million. Pretty bad. It then had $265 million in cash and corporate debt of $4.73 billion. Operating lease liabilities were nearly $5 billion at that time. The company now has nearly $500 million in cash. But the $80.8 million loss it posted in the first half of 2019 looks like nothing now. The company posted a net operating loss of $2.73 billion in the first half of 2020. AMC's accumulated deficit for the first half of 2020 is $3.46 billion. That's a lot of movie tickets, popcorn and soda that needs to be sold. * 10 Companies With Top-Notch Women CEOs Joking aside, it seems insurmountable. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Could Tiny "Super" Battery Kill Big Tech? The post 6 Potential Bankrupt Companies to Watch Thanks to Pandemic Woes appeared first on InvestorPlace.
The former editor-in-chief of Time Inc. explains why the stock market continues to thrive in spite of all the apocalyptic events unfolding in the U.S. on an hourly basis.
For an active investor using the top-down approach or bottom-up approach for new stocks to buy, there is no dearth of opportunities. Initial public offering is one major source of identifying value creators and holding them for the long term. This statement is backed by the fact that the S&P U.S. IPO & Spinoff Index has delivered annualized returns of 13.33% in the last 10 years.I believe that careful stock selection from among the IPOs or special purpose acquisition companies can help investors outperform the index. This column will look at four new stocks to buy that have the potential to be value creators in the coming years.I am discussing two IPOs from the year besides two SPACs. As the article from Harvard Law School Forum indicates, the total number of SPAC IPOs have been on a steady increase. And there are some exciting names to consider.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Hot Stocks to Buy on Robinhood NowSo let's discuss the following new stocks to buy: * Nikola Corporation (NASDAQ:NKLA) * American Well Corporation (NYSE:AMWL) * Snowflake (NYSE:SNOW) * Forum Merger II Corporation (NASDAQ:FMCI) New Stocks to Buy: Nikola Corporation (NKLA)Source: Nikola Press CenterNKLA stock got listed in June 2020 through a reverse merger with special purpose acquisition company. The stock has corrected after an initial surge. I believe that NKLA stock is among the most attractive new stocks to buy and exposure can be considered at current levels. As an overview, the company is the manufacturer of zero-emission battery-electric and hydrogen-electric vehicles.I must mention here that recently General Motors (NYSE:GM) acquired 11% stake in the company. This is an indication of the potential the company holds and the attractiveness of the vehicle pipeline.I specifically wanted to mention this as the stock tumbled following the exit of the founder Trevor Milton from the company. However, investors should use this as an opportunity to accumulate the stock of a company that's potentially backed by General Motors.The company has also been receiving pre-orders for its BEV. In August 2020, the company received an order for 2,500 BEV trucks from Republic Services. The on-road testing for BEV trucks is likely in early fiscal year 2022 with full scale production in the following year. While revenue might still be some distance away, I believe that NKLA stock can trend higher as pre-orders swell. American Well Corporation (AMWL)Source: Agenturfotografin/ShutterStock.com I believe that the listing of AMWL stock is among the most attractive IPOs in the recent past. The reason being the potential growth in the telehealth industry in the coming years.Research suggests that the telehealth industry is expected to grow at a CAGR of 17.7% between FY2020 and FY2026. Another outlook predicts the industry growth at a CAGR of 28% over the next five years. Even if the industry growth is around 20%, AMWL stock is positioned to deliver sustained value.It's also important to mention that the novel coronavirus pandemic has triggered strong growth for telehealth companies. American Well mentioned in its filing that "utilization of our platform to deliver care during the COVID-19 crisis increased dramatically. Visits in April 2020 were as high as 40,000 per day, versus approximately 2,900 visits per day in April 2019."Given this surge in the company's platform utilization, its very likely that top-line growth will be robust in the coming quarters. Alphabet (NASDAQ:GOOG) invested $100 million in the company prior to the IPO. This is worth mentioning as the company is likely to have a strong financial backing to pursue aggressive growth. * 7 Hot Stocks to Buy on Robinhood NowOverall, AMWL stock is worth holding for the next few years. Considering the industry growth outlook, the stock is likely to be a value creator. Snowflake (SNOW)Source: rblfmr / Shutterstock.com Back in May 2017, an article was published in The Economist, which opined that "the world's most valuable resource is no longer oil, but data."Considering the explosion of data in the last few years and potentially for the coming decade, SNOW stock is attractive. Snowflake launched a successful IPO in September 2020 and I believe that the stock is worth buying at current levels.Snowflake is a public cloud service provider. The company is competing with the likes of Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Alphabet. However, I am not worried about the competition considering the addressable market. Further, companies are adopting a multi-cloud strategy that allows more than one cloud provider to cater to the same client.In terms of top-line growth, the company reported revenue of $133 million for the second quarter of 2021. On a year-on-year basis, revenue surged by 121%. Therefore, the company is on a high growth trajectory and industry growth will ensure that the momentum sustains. Over the next seven years, the cloud service industry is expected to grow at a CAGR of 16.4%.Overall, SNOW stock is among the attractive new stocks to buy with positive industry tailwinds. Importantly, the industry outlook is likely to remain bullish for the coming decade. Forum Merger II Corporation (FMCI)Source: Shutterstock Among the recently listed SPACs, FMCI stock is attractive and a potential long-term value creator. FMCI stock would give investors an exposure to the high growth plant-based food industry. Its expected that the plant-based food market will be worth $74.2 billion by FY2027. In these seven years, the market is expected to grow at a CAGR of 11.9%.To elaborate on the business, Tattooed Chef brand is listed through the reverse merger. The plant-based food brand delivered sales of $47.9 million in FY2018. For the coming year, sales are projected at $222 million. Clearly, the early-stage company is on a high growth trajectory.The management also believes that in the long term, the company's sales and adjusted EBITDA will grow at an annual rate of 20%. Given this outlook, FMCI stock is worth holding in the portfolio.I believe that this guidance can be achieved as the visibility of plant-based food increases. Researchers at Stanford Medicine have concluded that plant-based meat lowers cardiovascular risk. This factor, coupled with environment conscious diners, will accelerate industry growth. * 7 Hot Stocks to Buy on Robinhood NowIn the last six months, FMCI stock has surged by 123%. There has been some correction in the recent past and I would use the decline to gradually accumulate the stock.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 * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 4 New Stocks That Can Be Long-Term Value Creators appeared first on InvestorPlace.
A stock market rally attempt is underway, but game plan for bearish or bullish action. Alibaba, Nvidia and Target are stocks to watch.
After a tough week, stocks put together a decent rally on Friday. Let's look at a few top stock trades going into next week, the last week of September. Top Stock Trades for Monday No. 1: Rite Aid (RAD) Click to EnlargeSource: Chart courtesy of StockCharts.comRite Aid (NYSE:RAD) shares are under significant pressure for the second straight day. The stock ended the day down about 9% on Friday, after falling almost 18% on Thursday on earnings.The stock made a decisive close below the September low on Thursday and the selling is continuing on Friday. Now, there are two levels to keep an eye on.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat puts the March low in play at $9.24, followed by the December gap-fill at $8.36. * 7 Hot Stocks to Buy on Robinhood Now On the upside, investors must see if RAD stock can reclaim $11. If so, it puts the 20-day moving average in play, followed by the 50-day and 200-day moving averages. However, at current levels shares are sort of in no man's land until it can either reclaim some higher levels or decline further. Top Stock Trades for Monday No. 2: Norwegian Cruise Line (NCLH) Click to EnlargeSource: Chart courtesy of StockCharts.comOn Monday, Norwegian Cruise Line (NYSE:NCLH) gapped below the 50-day moving average, then struggled to reclaim that mark all week.On Friday, though, Norwegian gapped higher by more than 13% and reclaimed the 50-day moving average and uptrend support (blue line). Reclaiming a key area is attractive, but this one is no layup.From here, let's see if bulls can reclaim the 20-day moving average. If so, it puts the $18.75 area in play, followed by the 23.6% retracement at $19.48. Above that opens the door to a possible rally toward the 200-day moving average and the June high near $27. On the downside, however, be cautious on a close below the 50-day moving average. Below this week's low (at $14.15) puts the August low in play at $12.56. Top Stock Trades for Monday No. 3: Penn National Gaming (PENN) Click to EnlargeSource: Chart courtesy of StockCharts.comPenn National Gaming (NASDAQ:PENN) has been volatile lately. No, it's not because of the volatility in the overall market, but rather, thanks to a secondary offering. In fact, shares had been holding up well before that news.For now, though, shares are rebounding and reclaiming the 10-day moving average. On the upside, I want to see if shares can back push up to $75. That's around the two-times range extension and the current all-time highs.Above that may open the door to a longer term price target near $96.50 -- the 261.8% extension. * 3 Small-Cap Stocks To Buy For Large Cap Potential On the downside, a break of the two-day low at $62.25 and the 161.8% extension could put the 50-day moving average in play. Below that may open the door to a larger correction down toward $40. To get to $40 would likely take a broader market correction as well. Top Stock Trades for Monday No. 4: United Health (UNH) Click to EnlargeSource: Chart courtesy of StockCharts.comUnitedHealth Group (NYSE:UNH) has been under pressure this month. However, it's been carving out a low near $292 this week. Look at the last five days of action. Shares had a responsive bounce back to $300 on Monday. Then slowly churned its way down toward $290 and gave us a doji stick on Thursday, which can be indicative of a reversal. Once we got the doji-and-up -- when UNH took out Thursday's high (the doji day) on Friday -- momentum began to return. Buyers drove it to the 10-day moving average, where we now wait for a decision. Above $300 opens the door to the 50-day moving average. Above that and $320 is on the table. If UNH can't reclaim the 10-day moving average it keeps $290 and the 200-day moving average in play. A close below the 200-day moving average could put $275 on the table, the double-bottom low from May and June. On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Could Tiny "Super" Battery Kill Big Tech? The post 4 Top Stock Trades for Monday: RAD, NCLH, PENN, UNH appeared first on InvestorPlace.
Baird analyst Peter Benedict, in a research note, said the chances of discount retailer Costco paying a special dividend “seem to be rising.”
* This weekend's Barron's cover story offers roundtable picks for the health care revolution. * Other featured articles discuss who could benefit from a conservative Supreme Court and how to find reliable dividend stocks in emerging markets. * Also, the prospects for a recently merged regional bank stock, a pair of restructuring companies, a pandemic winner and more.Cover story "The Pandemic Speeds Up the Health-Care Revolution" by Lauren R. Rublin offers Moderna Inc (NASDAQ: MRNA) and other Barron's roundtable expert picks for the most promising developments and best investment bets in the sector.Daren Fonda's "A Right-Leaning Supreme Court Will Tackle Some Big Business Cases" suggests that a more conservative court may cut back regulation. Is that good news for likes of Facebook, Inc. (NASDAQ: FB) and Ford Motor Company (NYSE: F)?In "Herbalife Faces a Fresh Legal Hurdle," Bill Alpert discusses how a lawsuit that has gathered steam targets 44 of the top distributors of Herbalife Nutrition Ltd (NYSE: HLF). What's next for this Los Angeles-based multilevel marketing company?See why North Carolina-based Truist Financial Corp (NYSE: TFC) could enjoy the fruits of its merger and deliver hefty upside in coming years, according to "Deal Synergies Should Lift This Southern Bank" by Lawrence C. Strauss.In Al Root's "Fortive Is Spinning Off a Business. It's Time to Buy the Stock," find out why Barron's believes breaking up is what industrial technology conglomerate Fortive Corp (NYSE: FTV) needs to get out of a rut.See also: Analyst: Here's Where The S&P 500 Could Be In 20 Years"How to Find Dividends in Emerging Market Stocks" by Lawrence C. Strauss makes a case for emerging markets as a place for investors to find reliable and growing dividend stocks. Is Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) worth a look now?A Western Digital Corp (NASDAQ: WDC) reorganization could be the prelude to a separation of its disk drive and flash memory businesses. So says Eric J. Savitz's "Western Digital Could Be Worth a Whole Lot More." Would that unlock significant shareholder value?In "Why Rival Bike Peddlers Are a Plus for Peloton," Connor Smith reveals all the things Peloton Interactive Inc (NASDAQ: PTON) has going for it and why investors have been willing to award the exercise equipment maker's stock a nosebleed multiple.Also in this week's Barron's: * Wealth managers who embrace ESG investing * Short sellers who aim to "oust bad actors" * The bright side of the market's bad week * Why credit tightening matters for the economic recovery * How to invest for election chaos * How to recognize zombie companies * Milton Friedman 50 years later * The future of travelAt 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 * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Bulls And Bears Of The Week: Chevron, Oracle, Twitter And More * Barron's Picks And Pans: Ackman Picks, Albertsons, Nvidia And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Hydrogen fuel cells have gained a lot of traction in the ever-evolving alternative energy space. One of the major players in the business is Plug Power (NASDAQ:PLUG), which is pushing the boundaries in the industry. Despite a 160% growth in sales in the past two years alone, it is yet to turn a profit since its inception. However, its vertical integration strategies in the green hydrogen realm could be a significant catalyst for future growth. Nevertheless, its fuel cell business continues to lose ground to batteries. Hence, PLUG stock is a risky bet at this stage.Source: Alexander Kirch / Shutterstock.com Plug Power's second-quarter results came in ahead of expectations. Margins and volumes improved on the back of record gross billings. Despite the impressive results, earnings were still in the negative with record levels of cash burn.On top of that, you have Tesla (NASDAQ:TSLA) and other tech giants investing heavily in batteries.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTherefore, it's tough to bet on PLUG stock at this point. A Strong Quarter but Still No ProfitsPlug Power has done exceedingly well to increase its revenue over the past seven years. However, despite the consistent increase in sales, it has struggled with its net profits, which have gotten progressively worse. * 7 Hot Stocks to Buy on Robinhood NowThis is apparent in its second-quarter results, where it posted gross billings over $72.4 million. Overall revenue improved 67% sequentially from the first quarter. Despite the stellar revenue, net income was at negative $8.66 million. Though it's a massive improvement over the first quarter, it illustrates its inability to be profitable.A large part of this is because it's selling its fuel cells in a highly competitive forklift market. Its clients are typically cost-conscious, and therefore, the company has failed to develop its pricing supremacy. Additionally, margins with two of its biggest clients in Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) continue to deteriorate.Moreover, the company's financial health is worrying on the back of record cash burn. Its debt to equity ratio is currently 2.73, which dwarfs its 10-year median of 0.05. Free cash flow margins are at a negative 50.7%, which are slightly higher than its five-year median. Also, its one-year increase in debt is 20.1% higher than its average 10-year growth in debt. With its substantial capex requirement, expect debt levels to rise even more down the line. Batteries Have More Potential in the Clean Energy MarketThe hydrogen fuel cell versus battery electrics conversation could define the commercial vehicle space in the future. Various companies are investing in the two technologies based on their relative potential.Automobile giants Tesla and General Motors (NYSE:GM) are betting big on lithium-ion batteries along with other tech giants. However, hydrogen fuel stocks have been getting a lot of traction from investors as well. Shares of Plug and its competitor Bloom Energy (NYSE:BE) have gained more than 300% this year.Off late, the company is working specifically toward expanding the vertical integration strategy for its green hydrogen business. Plug Power recently acquired Giner ELX and United Hydrogen to develop a foothold in the green hydrogen market. It expects these efforts to take revenue to up to $1.2 billion by 2024, which would take its compound annual growth to more than 40%.However, the reality is that the tide is firmly in favor of batteries. Though fuel cells have higher energy density and quicker fueling, they are way behind batteries in cost efficiency. Management consultants Horvath & Partners noted that electric vehicles using batteries tend to have a 70% to 80% efficiency rate compared to the 25% to 30% efficiency of fuel cell cars.Therefore, the long-term success of hydrogen fuel cells is in serious jeopardy. Plug Power continues to pump more money into advancing its hydrogen fuel cell business. However, if the business continues to lose ground to batteries, it would be in a tough spot in the future. Final Word on PLUG StockPlug Power finds itself in a dicey situation.The company seems confident about the potential of hydrogen fuel cells and their role in the clean energy markets of the future. However, batteries have the edge over fuel cells and are backed by some of the biggest names in the stock market.Additionally, Plug Power's inability to turn a profit and it's weak balance sheet are a significant cause for concern.The company's foray into the green hydrogen market seems promising, but it's still relatively premature to talk about its effectiveness. Therefore, I would avoid PLUG stock at this point.On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor's of science degree in applied accounting from Oxford Brookes University. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Could Tiny "Super" Battery Kill Big Tech? The post Investing in Plug Power Is a Gamble at This Stage appeared first on InvestorPlace.
If you want a silver lining for the recent weakness in the S&P 500, look no further than Workhorse (NASDAQ:WKHS). The momentum darling has fallen alongside the market, creating quite an attractive buying opportunity. Consider it a second chance of sorts for those that missed the epic breakout from early-September.Source: Photo from WorkHorse.com The rapid rise from $20 to $30 left many would-be buyers behind. They were relegated to watching others' gains pile up from afar. Until now, that is. To any who've been begging for the market gods to return Workhorse to its breakout point, to give them a second crack at jumping in -- your prayers have been answered. The WKHS Stock Chart Is At SupportSource: The thinkorswim® platform from TD Ameritrade Profit-taking finally emerged on Monday, and prices have been retreating ever since. The four-day drop has pushed the stock down nearly 30%. But don't let the size of the number mislead you. Given how much prices had risen before this week's whack, we're talking about nothing more than a garden-variety retracement to the rising 20-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Hot Stocks to Buy on Robinhood Now Thursday finally saw buyers fight back. Despite a full-on shoving match, the session ended with a neutral candle that signals the downside momentum is waning.The location and timing of bulls returning is hardly surprising. Dip buyers are always loitering near the 20-day average, waiting to strike. On top of that, we're also coming into a critical old resistance zone. The principle of polarity states that old ceilings tend to become new floors. The reason is twofold. First, any poor short-sellers who didn't exit the first time Workhorse blasted above the $21 resistance now have another chance to do so. Second, the sad group of bulls that should have bought the first time it broke out now have their second chance.The combination of pained short-sellers buying to cover at less of a loss, and new bulls piling in creates an undercurrent of demand that should cause the $21 zone to provide support.Because anything is possible, it's worth noting the price at which the pullback becomes more of a trend change. For that, I'm watching the support zone of $14-$15. It held the stock aloft through all of July and August and is a must-defend level if Workhorse is to maintain any degree of bullishness. Given the firepower and huge social following for the company, there's only a remote possibility of this happening. Put Premiums Are Ripe for SellingThe options market provides some exciting possibilities if you're willing to bet the dip is a buy. For starters, the implied volatility is in the stratosphere. But why shouldn't it be? The realized volatility or actual movement of the stock has been utterly insane. Ramping from $2 to $30 in less than six months makes traders willing to pay out the nose for option contracts. Implied vol has come down quite a bit from its June peak, but it's still at 165%.The pumped-up premiums open the door to selling far out-of-the-money puts as an alternative to purchasing stock. Although the potential reward is limited, the high probability of profit could more than make up for it. For example, let's say you're willing to wager Workhorse shares remain above $15 for the next three weeks. You can sell the Oct $15 put for around 70 cents per share, or $70 per contract.Because the stock price is low, the initial margin requirement is only around $150. That makes the potential return on investment a tasty 47% return. All for simply betting the stock sits above $15 at expiration.You are obligated to buy shares of stock at $14.30 if the put expires in-the-money. You can sidestep assignment, however, by exiting on a break below $15.On the date of publication, Tyler Craig did not have (either directly or indirectly) any positions in the securities mentioned in this article.For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Could Tiny "Super" Battery Kill Big Tech? The post A Beautiful Buying Opportunity in Workhorse Has Finally Arrived appeared first on InvestorPlace.
After bottoming at $10 earlier this month, investor interest soared in the last week for Inovio Pharmaceuticals (NASDAQ:INO). The company posted a corporate overview on its DNA medicines, increasing buying volume in INO stock.Source: Ascannio / Shutterstock.com What did Inovio say about its DNA Medicines?In Inovio's investor presentation, the company highlighted its proprietary smart device delivering plasmids. Already, it demonstrated a safe and robust immune response in more than 2,000 patients.InvestorPlace - Stock Market News, Stock Advice & Trading Tips DNA Medicine Lifts INO StockThe main DNA vaccines highlighted (slide 3) include the INO-4800, a Covid-19 vaccine. This vaccine showed long-term protection against live viruses in non-hospitalized patients 13-weeks after vaccination.Inovio's INO-4700 is the first vaccine for Middle East Respiratory Syndrome in Phase 2. This is a highly fatal virus. So, if Inovio continues to post positive developments from the clinical results, biotech investors will continue buying Inovio stock. * 7 Hot Stocks to Buy on Robinhood NowIn the DNA immunotherapy space, Inovio's VGX-3100, which treats human papillomavirus (HPV), is in a Phase 2B trial. VGX-3100 is in Phase 3 clinical trials for treating precancerous cervical dysplasia. Risks to ConsiderChief Executive Officer Joseph Kim boasted on the presentation that none of its vaccine candidates ever have to be frozen. It may have five-year stability and shelf-life dating. But the most important aspect of its prophylactic vaccines is whether they work or not. All Kim could say was that "we will be able to manufacture a global scale of INO-4800. So, assuming we're successful in the clinic, we will be able to have vaccines available, both domestically, but also globally as well."After the strong rally, investors have two choices at this time. If investors are skeptical that Inovio will produce a working vaccine, it may avoid the stock or bet against it. The short float is 31.56%, which is very high. Any good news about the vaccine's development may send the stock higher. Conversely, investors holding a basket of Covid-19 vaccine developers may consider Inovio, too.One or more of the vaccine developers may succeed in the coming months. This includes Moderna (NASDAQ:MRNA), BioNTech SE (NASDAQ:BNTX), and AstraZeneca PLC (NYSE:AZN), just to name a few firms. Still, Inovio's DNA-based vaccine may post results that demonstrate that its subjects get the best protection. Or it, along with some of the other competitors, may post disappointing data. Price Target for InovioOn Wall Street, five of the eight analysts are neutral on Inovio's prospects with a "hold" rating. The average price target is $19. Cautious investors may want to wait for the company to post robust clinical data first before investing in this company.If Inovio reports positive data and the stock rises, investors miss out. Still, they may pay a higher price for INO stock in exchange for knowing that the company has a viable vaccine ready to go to market.Well-rounded biotechnology investors will not want to bet big on just one vaccine developer like Inovio. Instead, holding small positions in it alongside BNTX and MRNA stock would lower company risks. Once those companies confirm they have a vaccine, investors may add to their positions later. Other AdvantagesInovio's potential vaccine has a few advantages over the competition. It has a long shelf life, which facilitates transport and storage.In June, the firm received a $71 million contract from the U.S. Department of Defense. The Cellectra 2000 smart device will be used to administer INO-4800 directly into the skin. CEO Dr. Joseph Kim said, "this next generation smart device leverages the efficacy delivery and safety track record of an earlier version that has received CE mark certification and has been used in clinical trials to safely dose more than 2,000 patients in over 7,000 administrations of INOVIO's DNA medicines."By offering the administration of the vaccine at a low cost, Inovio will not burden the health care system. The firm aimed to manufacture 100 million doses. If the company gains approval, then the revenue will start showing up in 2021.Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Speculate on Inovio and Covid-19 Vaccine Developers appeared first on InvestorPlace.
Among the Dow Jones stocks, Apple and Microsoft are among the top stocks to buy and watch in September 2020.
Gold prices are being influenced by a number of different contradictory factors, some traditionally good for bullion, others not.
(Bloomberg) -- Ray Dalio used the latest installment of his ongoing series on the changing world order to identify clear red lines that, if crossed, could result in a deadly war between China and the U.S., but the real enemy in the conflict may lie within.“Our greatest war is with ourselves because we have the most control over how strong or weak we are,” the billionaire founder of Bridgewater Associates wrote in the essay published on LinkedIn. “The internal wars and challenges in both China and the US are more important and bigger than external wars and challenges.”While Dalio doesn’t think the current trade war has been “taken very far,” any attempt by China to restrict American access to rare earth elements, or by the U.S. to restrict China’s access to semiconductors from Taiwan or crude oil, for example, could signal that the current conflict was about to get a lot worse.Culture, meanwhile, may be the one frontier where the two countries should try and make some inroads.“The main challenge the Chinese and Americans have with each other arises from some of them failing to understand and empathize with the other’s values and ways of doing things, and not allowing each other to do what they think is best,” Dalio wrote in the 17,000-word essay that also pondered the future of the U.S. dollar as a global reserve currency. “Some of these cultural differences are minor and some of them are so major that many people would fight to the death over them.”Key Quotes“Destiny and the way the global power cycle works have now put the United States in the unfortunate position of having to choose between a) fighting to defend its position and its existing world order and b) retreating”“The successes of all countries depend on sustaining the strengthening forces without producing the excesses that lead to their declines. The really successful ones have been able to do that in a big way for 200-300 years. None has been able to do it forever”“In order to prevent these from escalating out of control, it will be important for leaders of both countries to be clear about what the ‘red lines’ and ‘trip wires’ are that signal changes in the seriousness of the conflict”“Beyond the elections, a lot hinges on who wins and how they will approach this conflict. That will be a big influence on how Americans and the Chinese approach the Big Cycle destinies that are in the process of unfolding”“Regarding the trade war I believe that we have pretty much seen the best trade agreement that we are going to see and that the risks of this war worsening are greater than the likelihood that it will improve”“If the United States shuts off Chinese access to essential technologies that would signal a major step up in war risks”“Sovereignty, especially as it relates to the Chinese mainland, Taiwan, Hong Kong, and the East and South China Seas, is probably China’s biggest issue”“Perhaps the most interesting relationship to watch is between China and Russia”“The United States’ greatest power comes from being able to print the world’s money and all the operational powers that go along with that. The United States is at risk of losing some of this power while the Chinese are in the position of gaining some of it”Read More: Dalio Sheds Light on Chinese Thinking on Trade Deal: China TodayFor 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.