IBM is unveiling the world's first-ever financial services public cloud in a partnership with Bank of America. IBM's Senior Vice President of Global Industries Bridget van Kralingen joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss.
Out on Wall Street, elections are the talk of the town. As President Trump’s battle against COVID-19 wages on, Biden has taken the lead in the race to the White House, with a Reuters poll conducted on October 2-3 putting the former Vice President ahead by 10 percentage points. Against this backdrop, fears of a blue wave (a Democrat-controlled presidency, Senate and House) are washing onto the Street. However, Goldman Sachs believes a blue wave might not be such a bad thing for the U.S. economy. “All else equal, such a blue wave would likely prompt us to upgrade our forecasts. The reason is that it would sharply raise the probability of a fiscal stimulus package of at least $2 trillion shortly after the presidential inauguration on January 20, followed by longer-term spending increases on infrastructure, climate, health care and education that would at least match the likely longer-term tax increases on corporations and upper-income earners,” Goldman Sachs economist Jan Hatzius noted. Bearing this in mind, our focus shifted to two stocks flagged by Goldman Sachs as strong value plays. Running both tickers through TipRanks’ database, we found out what makes each so compelling. General Electric (GE) First up we have General Electric, which has been a pioneer in the transportation, power, environmental and healthcare industries for the last 150 years. According to Goldman Sachs, the future looks bright for this name. Firm analyst Joe Ritchie tells clients that in the two years since Larry Culp took over as CEO, the company has placed a significant focus on becoming a “leaner, structurally more productive company with better capital discipline.” “While the pandemic has caused delays in the transformation, we believe GE will emerge as a stronger company. Admittedly, we might be a little early on the turn in the stock, but we believe we are at a bottom from both a fundamental and sentiment perspective, and that is typically the best time to own industrial cyclicals. Our base case assumption is that a vaccine will be mass distributed over the next 12 months and, under this scenario, we believe the second derivative improvement on the resumption of air travel will be significant and many of the underlying concerns on GE’s balance sheet will fall to the background,” Ritchie explained. To this end, the analyst thinks HSD industrial free cash flow margins could be achieved by 2023. However, these expectations could be conservative should commercial aerospace rebound more quickly than Ritchie anticipates. “In the near-term, we believe Industrial FCF bottomed in 1H20 and think GE could generate $1 billion-plus in 2H20 given close to $2 billion in 2H cash actions, high margin outages that were pushed from 1H to 2H, a lower drag from onshore wind installations given the PTC was extended to 2021 and a good recovery in PDx. As a result, we think 2H Industrial FCF could likely surprise to the upside, a potential positive near-term catalyst for the shares,” Ritchie commented. It should be noted that aviation has been GE’s crown jewel segment, but this sector has been hampered by the pandemic as well as two fatal Boeing 737-Max crashes. That said, Goldman Sachs’ global Aerospace team expects commercial AM trends to return to 2019 levels by 2023. Ritchie added, “We estimate there could be an additional $1.3 billion to our Aviation 2023 EBIT forecast if commercial aftermarket were to rebound to 2019 levels by 2023.” On top of this, the Renewables and Power segments could drive upside for GE. “While the COVID-19 pandemic hurt Gas Power demand, we believe the self-help story is firmly in place but still discount management’s expectations for HSD margins in Gas Power in 2021 and we don’t expect Renewables to turn EBIT positive until 2022,” Ritchie mentioned. In line with his optimistic approach, Ritchie stayed with the bulls, reinstating a Buy rating with a $10 price target. Investors could be pocketing a gain of 46%, should this target be met in the twelve months ahead. (To watch Ritchie’s track record, click here) Turning to the rest of the Street, opinions are split evenly. With 6 Buys and 6 Holds assigned in the last three months, the word on the Street is that GE is a Moderate Buy. At $8.20, the average price target implies 20% upside potential. (See General Electric stock analysis on TipRanks) Translate Bio (TBIO) Developing a new class of potentially transformative medicines using messenger RNA (mRNA), Translate Bio hopes to bring new treatments to market for diseases caused by protein or gene dysfunction. Based on its promising technology, it’s no wonder Goldman Sachs is pounding the table. Writing for the firm, analyst Terence Flynn points to its lead candidate, MRT5005, a codon-optimized human CFTR mRNA, which is formulated in lipid nanoparticles that are delivered via a nebulizer, as a key component of his bullish thesis. The therapy is currently progressing through a Phase 1/2 cystic fibrosis (CF) trial. Looking at early clinical data, the asset generated an initial signal of clinical activity. That being said, while an improvement in lung function was witnessed, the results aren’t definitive. Despite the early nature of the data, Flynn sees the next data readout, which is slated for 2021, as a major possible catalyst. “For MRT5005 we see the most straightforward path to market and unmet need being the ~10% of CF patients with splice mutations where Vertex Pharmaceuticals (VRTX)’s drugs are not effective, which we project could be a ~$1.9 billion peak opportunity,” he commented. VRTX has developed several oral drugs called CF correctors or potentiators, that when used in combination improve the function of the existing CFTR protein in the majority of CF patients and thus, drive improved outcomes, which has made them the standard of care. However, these therapies only work in patients with at least one F508del mutation, which represents roughly 90% of patients with CF. For the other 10% of CF patients whose bodies don't make the CFTR protein, the drugs don’t have anything to target. The analyst added, “TBIO believes there is also significant unmet need beyond this ~10% of CF patients, including an incremental ~20% of patients that either have a suboptimal lung function (FEV1) response to VRTX’s drugs or cannot tolerate them.” If that wasn’t enough, TBIO is collaborating with Sanofi-Aventis on a COVID-19 vaccine, which could make its way to the clinic later this year. To this end, data could come by 1H21. “However, PFE/BNTX’s upcoming Phase 2/3 COVID-19 mRNA vaccine data will likely represent one of the first definitive readouts on vaccine efficacy and safety (in addition to MRNA and AZN) and in our view, there are three likely outcomes, which also have implications for TBIO,” Flynn stated. As part of this collaboration, the companies are also advancing preclinical development vaccine programs against several other targets including influenza, viral pathogens and bacterial pathogens. What’s more, Flynn argues that TBIO represents a possible M&A target as “the company has a novel platform technology (mRNA), a wholly owned clinical stage asset (MRT5005), and a broad partnership covering mRNA vaccines for infectious diseases, which could become de-risked over the near to medium-term.” Given all of the above, Flynn sides with the bulls. To kick off his coverage, he puts a Buy rating and $19 price target on the stock. This target brings the upside potential to 29%. (To watch Flynn’s track record, click here) Are other analysts in agreement? They are. Only Buy ratings, 5 to be exact, have been issued in the last three months. Therefore, the message is clear: TBIO is a Strong Buy. The $27.50 average price target suggests shares could climb 87% higher in the next year. (See Translate Bio stock analysis on TipRanks) Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
* This weekend's Barron's cover story discusses why the lagging industrials could be poised for a decade of outperformance. * Other featured articles discuss how American manufacturing can be reinvigorated and the coming wave of consolidation in investment management. * Also, the prospects for a theater operators, an overlooked asset manager, a Chinese tech giant and more.Cover story "How to Play the Next Industrial Revolution" by Al Root points out that industrial stocks such as Caterpillar Inc. (NYSE: CAT) have lagged behind the S&P 500 index for the past 10 years. See why Barron's believes better times are ahead. Could the sector see a decade of outperformance?Matthew C. Klein's "The American Dream: Bringing Factories Back to the U.S." suggests that decades of offshoring have left the American economy vulnerable. Restoring the nation's production prowess will be a long, hard slog, but it can be accomplished if companies such as Intel Corporation (NASDAQ: INTC), politicians and investors get behind the effort.In "Movie Chains Reel as Box Offices Bomb," Liz Moyer discusses why, with the pandemic lingering, movie houses are reeling from delayed releases from the likes of Walt Disney Co (NYSE: DIS), theater shutdowns and scarce ticket buyers. Can AMC Entertainment Holdings Inc (NYSE: AMC) and other theater operators survive until 2021?Pfizer Inc. (NYSE: PFE) wants a judgment in favor of programs that would let it help cover Medicare patients' copays for an expensive cardiovascular drug, according to "Pfizer Suit Could Be an 'Earthquake' for Drug Pricing" by Eleanor Laise. See what impact the ruling could have on drug prices and the likes of Regeneron Pharmaceuticals Inc (NYSE: REGN).In Andrew Bary's "Why AllianceBernstein Stands Out," Barron's make a case that Alliancebernstein Holding LP (NYSE: AB) should be one the hottest plays in its industry. After all, this New York-based asset manager offers a growth story, and it has a nearly 9% yield. Find out why Barron's believes it generates so little attention from investors.See Also: 4 Issues That Will Determine If The Market's Next Big Move Is Up Or Down"Eaton Vance Deal Presages More Money-Manager M&A" by Leslie P. Norton discusses why, in the wake of the Morgan Stanley (NYSE: MS) acquisition of Eaton Vance Corp (NYSE: EV), a wave of consolidation is likely as firms increasingly come under pressure to cut fees, trim expenses and boost investment performance.Diagnostic giant Laboratory Corp. of America Holdings (NYSE: LN) now processes 200,000 coronavirus tests a day. So says Jack Hough's "LabCorp Has Been Tested by Covid-19. But It's Now on a Roll." See how this North Carolina-based clinical laboratory network operator is preparing for whatever the new normal will be.In "Using Alibaba to Hedge a U.S. Stock Portfolio," Steven M. Sears claims that China might be the best hedge for U.S. stocks. Find out how e-commerce and technology giant Alibaba Group Holding Ltd (NYSE: BABA), given its broad scope, could act in the role once occupied by fixed income when it was an effective offset to equity weakness.Lawrence C. Strauss's "The Tech Sector's Dividend Allure Is in Growth, Not Yield" says that the tech sector, unlike utilities or consumer staples, isn't the first option for dividend investors. However, some believe that they have a lot of runway to grow those dividends. See whether that includes Cisco Systems, Inc. (NASDAQ: CSCO), Lam Research Corporation (NASDAQ: LRCX) and others.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Last Week's Notable Insider Buys: Element Solutions, Selecta Biosciences And More * Benzinga's Bulls And Bears Of The Week: AT&T, Apple, Tesla And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The personal finance celebrity says borrowers who do this make her "so crazy."
A former New York wine distributor who hawked a single-serving wine glass that appeared on “Shark Tank” was sentenced to two years in prison Friday for wire fraud.
Analyst Katy Huberty raised her fiscal 2021 revenue and profit estimates by 2%. She now sees fiscal 2021 profits of $4.07 a share, which is 20 cents above the Street consensus.
I often get this election question: Will stocks fall if my candidate, Trump or Biden, loses? My answer is always don’t invest your politics.
DoubleLine Capital's billionaire "Bond King" Jeffrey Gundlach shared his bearish thoughts on the stock market in a recent Real Vision interview.
Tech workers fleeing the San Francisco Bay Area to work remotely amid the pandemic are being asked to take pay cuts of 15% or more, as tech companies make cost-of-living adjustments.
The stock market rally is the best of both worlds, but stimulus talks are faltering. The 5G Apple iPhone and Amazon Prime Day are on tap.
Are you on retirement’s doorstep but not quite sure you should do it? Here are 3 questions to ask yourself.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist?
* Benzinga has examined the prospects for many investor favorite stocks over the past week. * The FAANG stocks were represented in both the bullish and bearish calls seen this past week. * Other bullish calls were for some stocks found in struggling industries and sectors. The big three U.S. equity indexes ended last week solidly higher, led by the more than 4% gain in the Nasdaq. This came despite continuing volatility, due in part to presidential tweets in the wake of his treatment for COVID-19. The week also saw the vice presidential debate, as well as news that an alleged domestic terrorism plot apparently was foiled.Furthermore, an old-school conglomerate, a top bank and a video streaming leader all faced some bad news in the past week. Also, the iPhone maker confirmed the date of its next big event, and one equity index is rumored to be looking for a new home.Through it all, Benzinga continued to examine the prospects for many of the stocks that are most popular with investors. Here are a few of this past week's most bullish and bearish posts that may be worth another look. Bulls The tech rally may have hit a recent speed bump, but Apple Inc. (NASDAQ: AAPL) and other big tech stocks are poised for another move higher, according to Shanthi Rexaline's "Why This Wedbush Analyst Expects A Year-End Tech Rally."In "Tesla Remains 'Misvalued,' Says SPAC King Palihapitiya," Neer Varshney is focused on how the Tesla Inc (NASDAQ: TSLA) company may be misunderstood and underestimated by analysts and investors. See why the increasingly crowded electric vehicle space is not a concern."Why Barclays Is Turning Bullish On 4 Retailers" by Jayson Derrick discusses one top analyst upgraded American Eagle Outfitters Inc. (NYSE: AEO) and some other mall retailers after a decade of bearishness. Is the positivity warranted?"BofA Upgrades US Bancorp On Headwinds Giving Way To Tailwinds" by Priya Nigam reveals why recent activity could be signaling a strong rebound for US Bancorp (NYSE: USB) stock for the rest of the year.In Wayne Duggan's "Goldman Sachs Calls General Electric The 'Ultimate Self-Help, Vaccine Leverage Story'," see why General Electric Co. (NYSE: GE) could emerge even an stronger company in a post-pandemic economy.For additional bullish calls seen in the past week, also have a look at these posts: * 3 Tech Stocks In Berkshire Hathaway's Portfolio * Which EV Stock Will Grow The Most By 2025? * Square Invests M In Bitcoin; Dorsey Sees A Currency For The Internet Bears "Facebook, Amazon, Apple, Google Stamping Out Rivals, Stifling Innovation, House Antitrust Investigation Concludes" by Shivdeep Dhaliwal shows what a congressional panel has concluded about Amazon.com Inc. (NASDAQ: AMZN) and other tech giants.After stellar performances in the first half of the year, expectations for Netflix Inc. (NASDAQ: NFLX) are muted for the third quarter. So says "7 Worrisome Metrics That Underscore Risks To Netflix's Q3 Results" by Shanthi Rexaline.In Priya Nigam's "KeyBanc Turns Bearish On AT&T, Says Consumers Facing Macro Pressure," see how AT&T Inc. (NYSE: T) may be "secularly and competitively challenged" despite high expectations.Wayne Duggan's "Analyst: Cruise Industry On Life Support Heading Into Q4" shows why there appears to be little hope for improvement anytime soon for Carnival Corp. (NYSE: CCL) and its peers in the industry.Todd Shriber's "Big Financial ETF Tagged With 'Speculative' Rating" discusses how historically low interest rates and rising loan loss reserves have dragged on the Financial Select Sector SPDR (NYSEARCA: XLF).Be sure to check out Lloyd Blankfein Blames SPACs, Free Money For Bubble Territory and Fed Chair Powell On Economic Recovery: 'Still A Long Way To Go' for additional bearish calls from the past week.At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Notable Insider Buys Last Week: Blackstone, CarMax And More * Barron's Picks And Pans: Albemarle, Camping World, Terex And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Industrial stocks have lagged behind the S&P 500 index for the past 10 years. Better times are ahead.
Fortunately, this “knowledge” never greatly influenced my investment strategy. Meanwhile, Wall Street wants to convince you that you know something about the future, so you actively manage your portfolio and thereby fatten the Street’s coffers. In the financial markets, action almost always triggers investment costs and perhaps big tax bills.
Which stocks are always on investors’ wish lists? Growth stocks. Time and time again, the pros on the Street point to tickers with above-average growth prospects as must-haves, as they stand to deliver major rewards in the long run. We really aren’t joking when we say above-average. Stocks that fall into this category have already notched impressive gains year-to-date, but this is only the beginning. The wins could keep on coming through 2020 and beyond. Having a target in mind is one thing, but how exactly are investors supposed to track down these names? This is where TipRanks can come in handy. Using TipRanks’ database, we scanned the Street for analyst-approved stocks that have exhibited a stellar run-up in 2020, and are poised to climb higher in the year ahead. Here are all of the details. Stamps.com (STMP) Providing online mailing and shipping services, Stamps.com makes it easy for its customers to print U.S. Postal Service-approved postage. Even though shares have already jumped 215% year-to-date, some analysts think this name has more room to run. After a recent conversation with management, National Research's Allen Klee has high hopes for STMP. The analyst tells clients his primary takeaway was “Stamps.com is positioned to benefit from accelerating ecommerce demand.” What’s more, he believes the deep functionality, integration, carrier relationships and processing speed of its products give it a leg up. When it comes to STMP’s revenue, 80% comes from shipping, which makes it “levered to positive ecommerce trends,” in Klee’s opinion. He noted, “We would expect shipping to increase as a percent of total revenue over time. In addition, the company will get international growth and potential market share gains, in our view.” Klee added, “The company has improved their growth outlook and lowered their risk profile through expanding their offerings and services, investing internationally and diversifying carrier relationships.” These investments are related to technology for MetaPack and ShipStation, two companies it acquired, and ShipEngines, its multi-carrier shipping platform. When the spending on these areas of the business moderates, the analyst thinks STMP’s already strong margins will get a boost. Along with the fact that STMP doesn’t have large exposure to any one sector, Klee argues its new partnership with UPS presents an exciting long-term opportunity. “As Stamps.com has eliminated its exclusivity with USPS, they are at various stages of negotiations with various carriers,” he mentioned. The company’s guidance for 2020 does assume a decline in 2H20 compared to the first half of the year, but this is related to how much of the spike in ecommerce demand witnessed in Q2 2020 is sustainable and the impact of the weak macro environment. That being said, Klee highlights new data on customer adds that is “of comparable quality” to past data. Additionally, according to the analyst, “positive data points come from FedEx’s August 2020 quarterly revenues being up 11% from the prior May 2020 quarter and Pitney Bowes on their Q2 2020 earnings call guiding for their global ecommerce segment revenues in Q3 2020 to be comparable to levels from Q2 2020.” The fourth quarter is also historically the strongest quarter for ecommerce given holiday sales. As for competition in the space, Amazon is turning into a major player. With the giant posing a threat to other carriers, Klee thinks STMP can help those that want to improve their offerings. Everything that STMP has going for it convinced Klee to leave his Buy rating as is. Along with the call, he keeps the price target at $390, suggesting 48% upside potential. (To watch Klee’s track record, click here) Looking at the consensus breakdown, 2 Buys and 1 Hold have been issued in the last three months. Therefore, STMP gets a Moderate Buy consensus rating. Based on the $336.67 average price target, shares could surge 28% in the next year. (See Stamps.com stock analysis on TipRanks) Farfetch (FTCH) On to another name that could benefit from accelerating ecommerce trends, Farfetch is an online luxury fashion retail platform that sells products from boutiques and brands from around the world. Up 157% year-to-date, several members of the Street believe this name is still heating up. Writing for J.P. Morgan, five-star analyst Doug Anmuth tells clients that amid broader weakness in the space, “Farfetch stands out as a more valuable and differentiated partner.” Expounding on this, Anmuth commented, “We believe Farfetch became an increasingly important partner to boutiques, brands, and other retail partners during the height of COVID-19 as many physical stores closed and even some online competitors were unable to ship from their distribution centers. For many partners, Farfetch was the only way they could generate sales during the pandemic.” As a result of this, boutiques, brands and department stores added more inventory to the Marketplace (MP), as well as increased reliance on Farfetch Platform Solutions (FPS). This is evidenced by its earnings results for Q2 2020. During the quarter, the acceleration of the secular shift fueled Digital Platform gross merchandise value (GMV) of $651 million, up 34% year-over-year and above the recently revised expectation of $605-$630 million. Additionally, FTCH saw record-high in-season stock levels, with 380,000 stock keeping units across 3,500 brands, from 1,300 sellers including 500 direct brand e-concessions. There was a 60% increase in traffic and a doubling of app installs in Q2, leading to the addition of 500,000 new customers. Anmuth also noted, “With direct brand e-concessions (EC) at 50%-plus of all inventory in the MP, the top 20 direct EC brands doubled their sales year-over-year.” Looking ahead, management expects Digital Platform GMV to ramp up to 40-45% growth in Q3, thanks to the early recovery in China, Western Europe and the Middle East, as well as a late Q2 pick-up in the U.S. On top of this, a number of key initiatives could propel the company forward, in Anmuth’s opinion. New Guards Group (NGG), which has been controversial among investors, drove $66 million in brand platform revenue and GMV, even though there were some delays in Fall-Winter shipments as retailers worked through Spring-Summer inventory. Off-White is cited as another point of strength, with the launch of Harrods also benefiting FTCH. To sum it all up, Anmuth said, “Overall, we recognize that FTCH benefited from a favorable environment with multi-year acceleration of luxury ecommerce adoption. But we expect trends to remain elevated as consumers increasingly value the ease and convenience of FTCH's platform, and brands and boutiques add greater inventory. We think FTCH is better positioned than any time since its IPO having made significant strides in direct brand e-concessions and adding selection from NGG, while also showing greater cost discipline and commitment to EBITDA profit in 2021.” Based on all of the above, Anmuth stayed with the bulls, reiterating an Overweight rating and $40 price target. Investors could be pocketing a gain of 50%, should this target be met in the twelve months ahead. (To watch Anmuth’s track record, click here) Turning to the rest of the Street, the bulls have it on this one. With 8 Buys, 1 Hold and 1 Sell, the word on the Street is that FTCH is a Moderate Buy. At $31.70, the average price target implies 19% upside potential. (See Farfetch stock analysis on TipRanks) Chegg (CHGG) As an education technology company, Chegg provides digital and physical textbook rentals, online tutoring and other student services. This name has skyrocketed 114% in 2020, but there’s still plenty of fuel left in the tank, so says Wall Street. Among the fans is Craig-Hallum's Alex Fuhrman, who remains confident after CHGG’s Q2 earnings release. He told clients, “Chegg has been firing on all cylinders in 2020, and yesterday’s big beat suggests that the company is rapidly scaling its international business as the shift to online and hybrid learning has accelerated adoption abroad as well as domestically.” In Q2, new subscriber growth ramped up dramatically as colleges around the country and the world made the switch to virtual learning. Excluding the acquisition of Mathway, Chegg’s membership base grew 58% year-over-year at the end of Q2, significantly ahead of management’s guidance of 45%. What was behind this strong showing? According to Fuhrman, increased international subscriptions contributed to the solid performance, and management believes that the long-term opportunity outside of the U.S. is even bigger than the domestic one. Going forward, Fuhrman points to the launch of the Chegg Study Pack bundle as a major possible catalyst. On top of this, an accelerated focus on reducing password sharing could have a “meaningful positive impact on results in 2H20 and especially in 2021.” Based on these catalysts, he argues that his estimates might be conservative and have the potential to move higher throughout 2020. It should also be noted that the peak fall rush season might not be fully accounted for in management's guidance, in Fuhrman’s opinion. Therefore, the analyst sees “opportunities for Chegg to beat estimates in the back half of 2020 whether students are on campus or not.” He added, “Even if college enrollments drop significantly for the upcoming fall semester (a real possibility), we believe Chegg’s addressable market won’t materially change given the significant number of students who will likely still take at least a few classes at a local college or community college, whether online or in person.” All of this prompted Fuhrman to conclude, “The pandemic is rapidly accelerating Chegg’s growth, and increased international adoption could support elevated growth rates for years even in a post-pandemic world.” Taking the above into consideration, Fuhrman maintains a Buy rating and $105 price target. This target conveys his confidence in CHGG’s ability to climb 29% higher in the next year. (To watch Fuhrman’s track record, click here) Most other analysts echo Fuhrman’s sentiment. 10 Buys and 2 Holds add up to a Strong Buy consensus rating. Given the average price target of $95.25, the upside potential comes in at 17%. (See Chegg stock analysis on TipRanks) Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
On CNBC's "Fast Money Halftime Report," traders discussed Goldman Sachs' bullish call on General Electric Co. (NYSE: GE). Goldman's analyst reinstated the stock with a Buy rating and a price target of $10, because the company is making progress to be a leaner and structurally more productive company with better capital discipline.Jenny Harrington is not a buyer because the stock is too complex to analyze. She thinks JPMorgan's Steven Tusa is the best analyst for the stock and he sees no quick turn for the stock.See Also: Goldman Sachs Calls General Electric The 'Ultimate Self-Help, Vaccine Leverage Story'Michael Farr wants to buy General Electric, but he hasn't bought it yet. He likes it because of its CEO, Lawrence Culp, who knows how to manage a big conglomerate. Farr is dying to buy the stock, but he just can't make himself to do it.Jim Lebenthal thinks Caterpillar Inc. (NYSE: CAT) is the best stock in the industrial space. He would rather buy Boeing Co (NYSE: BA) instead of General Electric.Stephen Weiss prefers the chip names. He sees General Electric as the stock where you go when you can't find anything else. He wouldn't touch it.Courtesy imageSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Cramer Shares His Thoughts On Boeing, General Electric And More * Cramer Weighs In On General Electric, Chevron And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Third-quarter earnings season kicks off this week in earnest with a plethora of major banks reporting results.
Among millennials this percentage is just 16%. More than 71% of older adults rate themselves as having “high financial knowledge.” The comparable percentage among millennials is only slightly lower at 62%.
One of the hottest in the industry should be AllianceBernstein. “This is a unique company in the asset management industry,” says Alexander Blostein, an analyst at Goldman Sachs. The partnership units, now around $30, trade inexpensively at 11 times projected 2020 earnings of $2.67 a unit and 10 times estimated 2021 profits of $3.01.
(Bloomberg) -- Vanguard Group Inc. returned about $21 billion in managed assets to government clients in China as part of a global shift to focus on low-cost funds for individual investors, according to people familiar with the matter. BlackRock Inc. and Amundi SA are being considered to manage a portion of the funds returned by Vanguard.The assets include about $10 billion that Vanguard had managed for each of China’s State Administration of Foreign Exchange and the China Investment Corp. sovereign wealth fund, the people said, declining to be identified as the matter is private. More than $1 billion was returned to the national pension fund, they said.The currency regulator will probably transfer oversight of its money to other managers including BlackRock, while the pension fund is likely to pick Paris-based Amundi to manage some of its accounts, the people said. CIC folded the Vanguard funds into its own index investment platform, they said.Vanguard, the National Council for Social Security Fund, BlackRock and Amundi declined to comment. CIC and China’s currency regulator didn’t immediately reply to requests for comment.Vanguard, the world’s second-largest money manager, is overhauling its Asia strategy, pulling out of Hong Kong and Japan to focus on individual investors in faster-growing markets. While China remains key for Vanguard as the nation opens its markets wider, the exit from the institutional business hands an unexpected windfall to competitors as they also step up their forays into the 100 trillion yuan ($15 trillion) asset management market.Vanguard is trying to move away from managing funds for institutional clients, a business that’s more demanding and less profitable, the people said. The sovereign clients’ relationship managers were based in Hong Kong, part of an operation at Vanguard that’s being dismantled, they said.Vanguard’s plans for China have been tested after its Asia Chief Executive Officer Charles Lin abruptly resigned last year, and as global competitors muscle in on the $2.7 trillion public-funds market.At least 10 senior executives had followed Lin out the door, including staff in legal affairs, human resources, risk management and sales, the people said. Clare Zhao, who was the general manager of Vanguard’s wholly foreign owned enterprise in Shanghai, left to join Amundi, where she’s taking over this month as head of its China business, a person familiar said.New AppointmentWhile New York-based BlackRock has won regulatory approvals for the first wholly-owned foreign mutual fund license and a joint venture with a Chinese bank, Vanguard has yet to file an application for its license to manage money for individual investors. Lin was one of the main negotiators with Chinese regulators.Vanguard on Sept. 22 announced the appointment of Luo Dengpan as the general manager of a planned mutual fund unit in China. Luo will be based in Shanghai and report to Asia head Scott Conking.Conking himself will work between Hong Kong and Shanghai as the latter city becomes Vanguard’s primary office in the region.China is a huge market for money managers, not only because of its vast size and potential for wealth management but also because fees are more lucrative than in the U.S. The nation’s retail funds market could grow to $3.4 trillion by 2023, Deloitte LLP has forecast. Foreign companies though have been grappling with how little their size and global reputation matter in a market infamous for investors jumping from fund to fund. Vanguard set up a joint venture with Ant Group in December and has rolled out a new robo adviser to target the fintech giant’s hundreds of millions of users. The venture, still in its infancy, is offering an automated service to capture clients with at least 800 yuan to invest in mutual funds.(Adds details on Asia head in 11th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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