Brad Garlinghouse, CEO of Ripple, says the digital currency industry is in its adolescent phase and has to go through a maturation.
Brad Garlinghouse, CEO of Ripple, says the digital currency industry is in its adolescent phase and has to go through a maturation.
Get the most from your retirement savings in these affordable places outside the U.S.
Futures rose on stimulus deal hopes after stocks sold off on stimulus deal pessimism. Yep. Also, Apple has a new buy point, but with flaws. Several other giants are forging handles.
Markets thrive on risk, but risk is hard to talk about. It’s easy to fall back on cliches – buy low and sell high, or the bulls and bears make money while the pigs get slaughtered – but those cliches have drifted into common parlance for a reason. They have a grain of truth.Buying low and selling high has always been known as the way to make a profit, from the earliest days of human barter. And whether the market is moving up or down, whether investors follow a bullish or a bearish strategy, it’s possible to turn that profit.So, let’s talk about buying low. While the overall market has recovered nicely from the pandemic swoon of mid-winter, many stocks are still struggling with a depressed share value. Some of them are fundamentally sound – and Wall Street’s analysts have taking note.Using TipRanks database, we pinpointed three such stocks. Each is down at least 60% so far this year, but each also has a Strong Buy consensus rating and at least 40% upside potential for the coming months.Diamondback Energy (FANG)First up is Diamondback Energy, a Texas oil company that has been part of the Permian Basin boom which put Texas once again at the forefront of the North American oil industry. Diamondback is a smaller player in its industry and its operations are entirely within the Permian, where it is producing some 170,000 barrels of oil daily. While this number is up 40,000 barrels from the springtime, Diamondback has been hit hard by low oil prices in recent months and the stock is down 68% year-to-date.The low prices on the open oil market have impacted Diamondback’s bottom line, and earnings have been falling steadily from their $1.93 per share peak in 4Q19. The 1Q20 EPS was $1.45, while Q2 earnings came in at just 15 cents. The company is set to release third quarter figures on November 3, and the outlook calls for 37 cents – an improvement, but still down. However, it’s important to note here that Diamondback has beaten the earnings forecasts in the last three quarters.On a more positive note, company management points out that despite recent low earnings, FANG was able to end Q3 without touching its revolving credit facility – and that the company has over $2 billion in liquid assets available. Combined with rising production, this gives the company a solid footing.JPMorgan analyst Arun Jayaram, looking at the Texas oil sector and Diamondback’s place in it, sees the company as well-positioned to survive in a low-price environment. “We have consistently viewed FANG as one of the top-tier operators in the industry, and given the recent weakness in oil prices, the mgmt. team has made the prudent decision to sharply reduce activity levels. Given a focus on continuous cost reduction, we believe the company has the inventory depth and balance sheet strength to be a relative outperformer through the downturn,” Jayaram wrote.Jayaram rates FANG shares an Overweight (i.e. Buy), and his $48 price target suggests a 68% upside potential by next year. (To watch Jayaram’s track record, click here)Overall, the Strong Buy consensus rating on FANG is based on 11 recent Buys against a single Hold. The stock is selling for $28.58 per share, and its $52.10 average price target is even more bullish than Jayaram’s, implying an upside of 82%. (See FANG stock analysis on TipRanks)ChampionX Corporation (CHX)Next up is ChampionX, an oilfield technology company acquired its current name this past summer, through the merger of Apergy Corporation and ChampionX Holdings. The combined company kept Apergy’s trading history, and took on the new ticker, CHX. This is a midstream company with operations in the drilling, production, pipeline, and water technology segments of the oil industry. It’s a diversified portfolio of operations that gives ChampionX plenty of room to maneuver in a bearish oil market.ChampionX may need all of that maneuvering room, as the shares are down 76% this year. As with Diamondback, the chief culprit is low oil prices cutting into profit margins. Even though, as a midstream and service company, ChampionX does not directly pull the oil out of the ground and sell it, its operations are tied to the end users’ purchase price. In 2Q20, EPS turned sharply negative with a 43-cent per share net loss. This comes even as revenues rose in Q2, to $298 million.Scotiabank analyst Vaibhav Vaishnav sees CHX in a good place after improving its positioning as a services company.“With the merger with Ecolab’s Upstream business, CHX is now among the top two players in the production chemicals business. This business is relatively very stable as it focuses on production rather than drilling and completions activity. Essentially, daily U.S. or international oil production is the primary driver," Vaishnav opined. To this end, Vaishnav rates CHX an Outperform (i.e. Buy) rating. He gives the stock a $12 price target, indicating confidence in 48% upside growth for the coming year. (To watch Vaishnav’s track record, click here)Overall, CHX has 6 Buys and 1 Hold supporting its Strong Buy consensus rating. With a bullish average price target of $14.09, Wall Street’s analysts see a 73% upside potential from the current share price of $8.11. (See CHX stock analysis on TipRanks)Gol Linhas (GOL)From the oil industry, we move to the airline industry. It should come as no surprise that an airline, even a budget carrier, would face serious difficulties in the current environment of social distancing, trade and travel restrictions and disruptions, and economic shutdowns. Gol Linhas is Brazil’s premier low-cost air carrier, and the country’s third-largest airline. The difficulties facing the airline industry are apparent in GOL’s 62% share price decline since the start of the year.The hit Gol Linhas has taken is clear from the revenues and earnings. At the top line, the 17% sequential revenue drop in Q1 deepened to 88% in Q2, when the company brought in just $357 million. Quarterly revenues for GOL were above $3.8 billion before the corona crisis.The drop in revenue brought a serious loss in earnings. The company typically sees a drop off from Q4 to Q1 in earnings, and this year was no exception. The bright spot was, Q1 beat the forecast and beat the year-ago number. Q2, however, was disastrous, with an 81-cent EPS net loss. While not as deep as the $1.10 expected, it was a serious hit for the company. The outlook for Q3 is no better, at minus 80 cents.The long-term, however, looks better for this budget carrier. Deutsche Bank analyst Michael Linenberg sees GOL with several paths forward – although he believes that real returns will not come in until after 2021. "As we believe 2020 and 2021 will not be representative of GOL’s normal earnings potential, we are basing our 12-month PT on our 2022 forecast as GOL and the global airline industry begin to recover from the effects of COVID-19," the 5-star analyst noted.In line with this long-term optimism, Linenberg sets a $10 price target, implying an upside of 40% over the next 12 months. Accordingly, he rates the stock a Buy. (To watch Linenberg’s track record, click here)Wall Street agrees with Linenberg on the long-term potential here, and GOL’s Strong Buy consensus rating is based on a unanimous 5 Buys. (See GOL stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
My wife and I co-signed her nephew’s student loans so he could attend a small private college. You loaned money to your nephew by co-signing his loan with the expectation that he would finish college, get a job and repay it. In other words, you co-signed the loan so your nephew would make the investment in his own future.
Is Boeing stock a good buy now as coronavirus ravages aviation? Look at the aerospace giant's fundamentals and stock chart.
Chipmaker Intel is nearing a deal to sell its memory-chip business to South Korea's SK Hynix for about $10 billion, the Wall Street Journal reported Monday. Intel stock rose on the news.
Apple Inc.'s iPhone 12 launch hasn't driven much momentum for AT&T Inc. shares, which are on track for their lowest close in almost seven months.
Jim Cramer discusses the latest stock market news including the return of the Boeing 737, Abbott and the deal between ConocoPhillips and Concho.
At some point over the next century, the stock market will lose more than 20% of its value in a single day. Maybe this doesn’t seem like useful advice, but the fact is that you’re kidding yourself if you think market crashes of such magnitude won’t happen again. This sobering thought coincides with the 33rd anniversary of the 1987 U.S. stock market crash.
The current day trading boom will end as these frenzies always do: in tears. While we wait for the inevitable crash, let’s review not only why day traders are doomed but also why most people shouldn’t trade, or even invest in, individual stocks. Day trading basically means rapidly buying and selling investments, hoping to profit from small price fluctuations.
If you have any old-fashioned “value” or “equity income” funds in your 401(k), IRA or other retirement accounts, right about now you may be asking yourself, or your financial adviser, some very awkward questions. Strategists divided the stock market cleanly into “value” and “growth” halves. Morningstar (MORN) the fund-research company, says the average U.S. large company “value” mutual fund has lost 8% so far this year, even including reinvested dividends.
With Tesla Inc (NASDAQ: TSLA) scheduled to report third-quarter results Wednesday, an analyst at Wedbush is optimistic that the electric vehicle giant will outperform expectations.The Tesla Analyst: Daniel Ives maintained a Neutral rating on Tesla shares and increased the price target from $475 to $500.The Tesla Thesis: The focus is likely to be on Tesla's level of third-quarter profitability and the unit growth trajectory into the fourth quarter, Ives said in a Monday note. The company is poised to report a bottom-line beat, helped by manufacturing efficiency and shining Giga3 success in China, the analyst said.Full-year deliveries are on track to hit the company's guidance of 500,000, as Tesla navigated the unprecedented COVID-19 backdrop, he said. "We believe with a strong 4Q that Tesla will be on a pace to hit the 500k threshold as pent up China demand and pockets of strength within Europe remains the linchpin to the demand resurgence that Musk & Co. have seen over the past few quarters," Ives said. Related Link: What To Expect When Tesla's Q3 Report Drops Next Week View more earnings on TSLAWith China expected to account for over 40% of Tesla's global sales potentially by early 2022, Tesla's profitability profile will improve, as Model 3s sold in China have higher margins, the analyst said.Along with more leverage on the horizon out of Giga 3, more price cuts both in the U.S. and China could stimulate demand further, he said. "Steady profitability after years of red ink has been the 'hearts and lungs' to the bull thesis on the Street and a key ingredient in the stock's performance this year." The overall EV market is still in the early days of playing out globally, according to Wedbush.Tesla is in a formidable position to maintain its leadership position despite competitors coming from every angle globally, Ives said. TSLA Price Action: Tesla shares were down 0.49% at $437.53 at last check Monday. Related Link: Tesla Analyst Sees Disconnect Between Share Price, EV Company's Fundamentals Photo courtesy of Tesla. Latest Ratings for TSLA DateFirmActionFromTo Oct 2020WedbushMaintainsNeutral Oct 2020Morgan StanleyMaintainsEqual-Weight Oct 2020Goldman SachsMaintainsNeutral View More Analyst Ratings for TSLA View the Latest Analyst Ratings See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Tesla Battery Supplier LG Chem Preannounces 159% Profit Growth * Tesla Analyst Sees Disconnect Between Share Price, EV Company's Fundamentals(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Although Americans typically assume they will retire when they want, and on their own terms, many are in for a surprise
The results come just weeks after Big Blue surprised investors with its announcement of splitting itself into two public companies, placing big bets on cloud computing to drive its future growth. "We continue to see a very strong pattern in acceleration of our clients' digital transformation ... We are seeing that play out in our Red Hat business," Chief Financial Officer James Kavanaugh told Reuters. IBM's total revenue fell 2.6% to $17.56 billion in the reported quarter, but was slightly above analysts' estimates of $17.54 billion, according to IBES data from Refinitiv.
Stock in the Chinese electric-vehicle maker was on fire last week, leaving some on Wall Street wondering what happened and investors wondering what comes next.
While the wealthy and corporations might have to reach deeper into their pockets to pay Uncle Sam, tax-exempt municipal bonds could emerge as a big winner.
(Bloomberg) -- During a town hall meeting Thursday, Democratic presidential nominee Joe Biden again assured shale producers that he wouldn’t ban fracking if elected. Then, in virtually the same breath, he touted his $2 trillion clean-energy plan, which aims to edge natural gas out of the power mix within 15 years.The former vice president’s efforts to walk a tightrope on gas reflect the fossil fuel’s precarious place in the economy. For now, it’s an essential part of American life. Biden has been careful not to make an enemy of the industry, especially in the key battleground state of Pennsylvania, home to the largest U.S. shale-gas field. His policies may even, in the short-term, support the gas market.But in the long run, the fuel may prove economically and environmentally untenable within the power sector, a key market for producers. Biden’s climate plan would only accelerate that outcome, with massive investments in wind, solar and battery storage giving those energy sources a leg up. And his goal of a carbon-neutral grid would severely curb, if not destroy, gas’s share of the pie in favor of cheaper, cleaner renewables.“Decarbonization isn’t a debate -- it’s a fossil-fuel death sentence,” said Kevin Book, managing director of ClearView Energy Partners. “It means a resource is going off the grid. That is the inevitable implication.”Gas, like coal a decade ago, is facing economic headwinds. While it’s still the nation’s dominant fuel source, it’s less competitive against renewables than it used to be. Solar and wind are now cheaper than gas-fired power in two-thirds of the world, according to a BloombergNEF report. In the U.S., solar and wind are already less expensive than even the most efficient type of new gas-fired turbine, Lazard Ltd. said Monday.The right combination of federal policies could easily push gas out of the power mix by 2035 or earlier.“This transition is going to happen more quickly than people thought, just as the coal transition has happened faster than people thought it would,” said John Coequyt, the climate policy director at the Sierra Club.To be sure, gas may reap some benefits from a Biden presidency in the near-term. Though his proposal to limit drilling on federal lands could trim production, tighter supplies could lift prices, potentially making gas exports more profitable. Similarly, a thaw in U.S.-China relations could give exporters greater access to a major world market.But higher prices would have the opposite effect in the power sector, where cost is key. Gas-fired electricity generation is already expected to fall 5.7% this winter compared to last year simply because gas prices are higher this season, according to Energy Information Administration projections. And that’s despite forecasts for a colder winter, which would increase electricity demand.The economics put gas in a roughly similar position as coal in the years before President Barack Obama took office.In coal’s case, Obama hastened its decline by imposing new environmental regulations that made coal plants more costly to operate – notably the 2012 Mercury and Air Toxics Standards that limited toxic emissions from plants, and the 2015 Clean Power Plan that curbed carbon emissions.A Biden administration could take a similar tack, imposing new -- and more stringent -- limits on greenhouse gas emissions from power plants. He could also reinstate and possibly strengthen Obama-era rules curbing methane leaks from gas infrastructure, which were repealed by President Donald Trump. Both have the potential to drive up the cost of gas-fired electricity, without banning the fuel.Most analysts agree that Biden wouldn’t explicitly go after the gas industry in the same way that Obama attacked the coal sector. Instead, Biden’s clean-energy policies would make it harder for gas to compete with wind, solar and other renewables.“You might be able to adopt policies that at least give them a theoretical chance to survive, even if they’re going to make it much harder for them to survive,” said David Spence, a professor at the University of Texas School of Law.For now, there isn’t much pressure to close the gas plants already in service. “Existing gas plants will have a role to play for a while,” said Mark Dyson, a principal at the Rocky Mountain Institute. “They’re keeping the lights on while we build as much wind and solar as we can.”And Biden’s proposal leaves the door open for utilities to continue using gas plants that are fitted with carbon-capture systems that trap emissions, said Jonathan Elkind, senior research scholar at Columbia University’s Center on Global Energy Policy.In Thursday’s town hall, Biden stressed the importance of embracing “new technologies,” including carbon capture, as a way to achieve a carbon-free electricity sector while still using some natural gas.Still, utilities might not want to make that kind of investment when the price of renewables continues to fall.“A lot of the path to net-zero by 2035 for power will come from energy efficiency gains, a lot from renewables, and that will squeeze out fossil fuels eventually,” said Katie Bays, an analyst with Sandhill Strategy in Washington.Already, local jurisdictions are moving away from gas in pursuit of their own climate goals. Cities across California have moved to ban natural gas use in homes, while New York blocked a proposed $1 billion pipeline that Governor Andrew Cuomo. Opposition by environmental groups even drove Dominion Energy Inc. to cancel a major pipeline project before selling most of its gas operations in July.Utilities are also preparing for a gas-less future. Besides building renewables, power giants NextEra Energy Inc. and Entergy Corp. are among companies investing in gas turbines that can transition to running on 100% renewable hydrogen.Still, many doubt whether it’s even possible to achieve a carbon-free power grid in 15 years, which is a more ambitious goal than California and New York have set for themselves. Transforming the electric grid would be both costly and complicated and analysts caution against taking the plan too literally.To pay for it, Biden has proposed an increase in the corporate income tax rate to 28% from 21% as well as using stimulus money. But that would require congressional approval, a tall order if Republicans retain control of the Senate.Nevertheless, the push for decarbonization reflected in the Biden plan presents a real, long-term threat to natural gas as a source of electricity.“There would be a huge downside risk for gas demand,” said Carlos Torres Diaz, head of gas and power market research at Rystad Energy AS, in Oslo. “Even if we don’t get to zero.”(Adds Lazard analysis in fifth 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.
International Business Machines Corp. revenue continued to decline in the third quarter, according to a Monday report, and shares sank in after-hours trading following the earnings report.
Shares of Kaixin Auto Holdings Inc. skyrocketed 257.5% on massive volume in afternoon trading Monday, to extend the stretch of volatile trading that started last week despite the lack of news announced by the China-based operator of auto dealers. Trading volume exploded to 184.0 million shares, which was already more than triple the previous one-day record for volume of 60.6 million on Oct. 14, and enough to make the stock the most actively traded on the Nasdaq exchange. The company did not immediately respond to a request for comment. The stock has now gained 1,270.3% over the past four sessions. It ran up 55.6% on volume of 55.1 million shares on Friday, tumbled 32.8% on volume of 6.3 million shares on Thursday and soared 266.7% on volume of 60.6 million on Wednesday. In the company's last filing with the Securities and Exchange Commission on Aug. 26, the company said after reexamining its business model it has decided to halt its used-car dealership operations, meaning second-quarter revenue will be "significantly lower" than in prior periods, and that "it may not have meaningful revenue starting in the third quarter of 2020." The stock had closed at a record low of 41 cents on Sept. 8. With the recent rally, the stock has now climbed 295.7% year to date, while the iShares MSCI China ETF has advanced 21.4% and the S&P 500 has gained 7.4%.
A selloff Monday accelerated as investors continued to weigh fading prospects of a near-term stimulus package, and eyed still-rising coronavirus cases in the U.S.