U.S. Markets closed

  • S&P 500

    3,629.65
    -5.76 (-0.16%)
     

  • Dow 30

    29,872.47
    -173.77 (-0.58%)
     

  • Nasdaq

    12,094.40
    +57.62 (+0.48%)
     

  • Russell 2000

    1,845.02
    -8.51 (-0.46%)
     

  • Crude Oil

    44.88
    -0.83 (-1.82%)
     

  • Gold

    1,813.50
    +2.30 (+0.13%)
     

  • Silver

    23.42
    -0.03 (-0.11%)
     

  • EUR/USD

    1.1912
    -0.0007 (-0.0596%)
     

  • 10-Yr Bond

    0.8780
    -0.0040 (-0.45%)
     

  • Vix

    21.25
    -0.39 (-1.80%)
     

  • GBP/USD

    1.3353
    -0.0029 (-0.2190%)
     

  • USD/JPY

    104.2500
    -0.1900 (-0.1819%)
     

  • BTC-USD

    16,796.51
    -1,182.67 (-6.58%)
     

  • CMC Crypto 200

    327.23
    -43.29 (-11.68%)
     

  • FTSE 100

    6,362.93
    -28.16 (-0.44%)
     

  • Nikkei 225

    26,537.31
    +240.45 (+0.91%)
     

Shake Shack testing 4 day work week: will others follow?

Yahoo Finance's Zack Guzman and Jeanie Ahn are joined by Paula Pant, 'Afford Anything' Podcast host, to discuss Shake Shack's four day work week.

Latest Stories

  • 3 Stocks for Investors Chasing High Paying Dividends

    Looking for an alternative to low-interest savings accounts or bonds? Check out these S&P; 500 stocks that pay an annual dividend yield of over 7%.

  • 2 Stocks Flirting With a Bottom; Analysts Say ‘Buy’

    When a stock starts dropping, investors have to ask two questions. First, why it's dropping? Is something wrong with it? Or is it just facing a storm of circumstance, but is otherwise sound? If the latter, then the second question comes into play. Has this stock hit bottom?When a sound stock hits bottom, that’s a signal for investors to buy in. You can’t go wrong buying low and selling high, but you do have to know when ‘low’ is happening – otherwise you can miss your chance to maximize the profits.Wall Street’s analysts make their reputation by calling stocks right. Lately, some of these analysts have been tapping several apparent down-and-out equities as prime candidates for strong gains. These are stocks that, based on the TipRanks data, fit a profile: each has fallen on hard times during 2020; each has an average upside that starts north of 40%, and each has at least one analyst saying it’s likely to make radical gains in 2021.Benefitfocus (BNFT)We’ll start in the world of benefits management, an important sector that impacts a number of fields. Employers, insurance brokers, health plans, and retail partnerships all offer benefits to consumers of various stripes – and Benefitfocus offers a tech solution to make benefit administration easy. The company offers a software platform specifically designed to handle the HR and data aspects of benefits programs, from enrollment to management.This niche can be a two-edged sword, however. In good times, with benefit programs swinging, everyone will want in – but in bad times, Benefitfocus has found itself unable to regain traction. The company’s stock is down 42% year-to-date, and the third quarter results showed continuing year-over-year losses. Revenue is down 11% yoy, to $63.6 million, with declines across all of the company’s main segments: software revenue, subscription revenue, and platform revenue.At the same time, there were positive developments. Lincoln Financial Group and PayActive joined Benefitfocus as catalog suppliers, and the company held its first open enrollment with the University of Texas system. The company also ended Q3 with $176 million in cash on hand.These quarterly results came as Benefitfocus brought in new management. The company announced Stephen Swad as the new CEO, with his CFO position being filled by Alpana Wegner. In addition, the company announced new hires for the Chief Data Officer and EVP, Product & Engineering positions. These are major moves, that portend a new outlook at the top.Covering this stock for Piper Sandler, 5-star analyst Sean Wieland writes of BNFT: “With new mgmt at the helm, we sense a renewed energy moving the business forward. SaaS offerings are an area of focus, going head first into the B2B2C channel while de-emphasizing the direct to consumer business. Health of this customer base continues to trend above expectations, with a positive benefit fromgig workers, increasing net eligible lives 8.3% y/y to 18.2M. OEP fits into this positive narrative, as mgmt is happy with progress thus far, seeing continued strength as the selling season progresses."Wieland’s bullish outlook is also supported by his Overweight (i.e. Buy) rating and $29 price target, which implies a 132% one-year upside. (To watch Wieland’s track record, click here)Overall, Wall Street appears to be in agreement with Wieland on BNFT. The stock has a Strong Buy consensus rating, based on 3 Buy reviews and 1 Hold. Shares are selling for $12.50 and the average price target, at $17.67, suggests room for a 41% upside in the next 12 months. (See BNFT stock analysis on TipRanks)Momo, Inc. (MOMO)Next up is Momo, the Chinese social media mobile app. This company offers customers a free smartphone app for social posting and instant messaging, and monetizes the service through the usual routs of third-party services and paid subscriptions for upgrades.Momo has badly underperformed this year, however, having lost 54% year-to-date. The company’s fiscal third-quarter came in below expectation, with earnings at 30 cents per share and revenues at $3.9 billion. These numbers were down significantly year-over-year, especially the EPS, which showed a 40% yoy drop. Revenue and earnings peaked in 4Q19, as the corona virus started to break out – and its has yet to recover.Like BNFT above, Momo has had management changes in the calendar third quarter. The company brought on board a new Executive Chairman as well as a new CEO. It is hoped that the new blood will bring new energy at the top. The new CEO, Li Wang, previously served as company COO since 2014.Leo Chiang, of Deutsche Bank, acknowledges that Momo is in a tight spot, but believes the company can chart a course out. “Momo app is navigating to focusing on content ecosystem, user engagement and community activity to revitalize middle and long tail users, instead of exploiting top paying cohort, whose spending sentiment has been impaired significantly post pandemic. The process has begun in early August and management expects it to last for 6 months. We believe it could lead to a healthier long-term prosperity for a social app,” Chiang noted.Chiang sets a $25 price target here, indicating a possible 68% upside potential, to go along with his Buy rating. (To watch Chiang’s track record, click here)The analyst consensus here is a Moderate Buy, based on 8 reviews that include 3 Buys and 5 Holds. The stock’s average price target of $21.49 suggests a 45% upside from the current share price of $14.83. (See MOMO stock analysis on TipRanks)To find good ideas for beaten-down 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.

  • 3 Reasons Bitcoin Crashed by $3,000 – And Why It’s Still Bullish

    Here's three main factors behind Thursday's bitcoin price crash.

  • Bitcoin Plunges Along With Other Coins

    (Bloomberg) -- Bitcoin plunged on Thursday in a sell-off that saw other digital assets fall as much as 27%, a slide likely to stoke speculation about the durability of the latest boom in cryptocurrencies.The largest token fell more than 8% in Thursday trading after slumping as much as 13%, heading for one of its worst days since the pandemic-spurred liquidation in March.The rout began just hours after Bitcoin rose to within $7 of its record high of $19,511, the culmination of a more than 250% surge in past nine months. Fears over tighter crypto regulation and profit-taking after a frenetic rally were among the reasons cited for the sudden drop.The sell-off gathered pace late Wednesday after Coinbase Inc. Chief Executive Officer Brian Armstrong tweeted about speculation the U.S. is considering new rules that would undermine anonymity in digital transactions.“News that the Trump administration may clamp down on crypto might have been a trigger for the drop,” said Antoni Trenchev, managing partner of Nexo in London, which bills itself as the world’s biggest digital-coin lender. “But any asset that rallies 75% in 2 months and 260% from the March lows is allowed to undergo a correction.”Other coins including XRP tumbled as much as 27%, according to prices compiled by Bloomberg.After garnering more support from Wall Street money managers and fund providers, the rally in cryptocurrencies had looked over-heated. The fierce retreat could stir yet another debate over the their value in diversifying portfolios.“Conditions are very massively overbought and bound for a correction,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. “So I don’t think it’s unusual.”Crypto believers tout purchases by retail investors, institutions and even billionaires, as well as the search for a hedge against dollar weakness amid the pandemic, as reasons why the boom can last.Skeptics argue the cryptocurrency’s famed volatility portends a repeat of what happened three years ago, when a bubble burst spectacularly. Some see signs of retail investors piling in to chase momentum for fast gains, storing up an inevitable reckoning.Concern about potential U.S. crypto rules help explain Thursday’s price drop across most major digital assets, said Ryan Rabaglia, global head of trading at OSL brokerage in Hong Kong.“It’s also not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides,” he said. “Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play.”Proponents of digital assets say the current focus on cryptocurrencies compared with three years ago is different because of growing institutional interest, for instance from the likes of Fidelity Investments and JPMorgan Chase & Co.Just this week, Van Eck Associates Corp. launched a Bitcoin exchange-traded note on the Deutsche Boerse Xetra exchange. In October, PayPal Holdings Inc. said it would allow its customers access to cryptocurrencies.There is also a buzz around Ethereum, the most-actively used blockchain in the world, which is set for a network upgrade that would allow it to process a similar number of transactions as Mastercard Inc. and Visa Inc. The shift to the new system could curb the total supply of Ether, whose price has quadrupled so far this year.Luno’s Ayyar said he expects Bitcoin to stabilize and achieve all-time highs. But that would be followed by a larger drop in the cryptocurrency, he said.Soravis Srinawakoon, chief executive of Bangkok-based Band Protocol, said the plunge in crypto was healthy.“This is just a normal pull back after seven weeks straight of Bitcoin in the green, due to many people over-leveraging.”(Updates prices)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.

  • What's the Difference Between Retirement in Canada and America?

    American and Canadian governments provide many of the same types of services for those in retirement, but the subtle differences between the two countries are worth noting.

  • Is the Stock Market Open Today? Here Are the Hours for Thanksgiving and Black Friday.

    U.S. exchanges take a breather for the holiday, after the Dow Jones Industrial Average recently closed above 30,000 for the first time.

  • 3 Stocks Top Analysts Say Will Soar in 2021

    Sentiment is on the rise as the annus horribilis 2020 winds to an end. There’s a feeling, after all we have been through over the past ten months, that things just can not get worse. And so, investors are looking forward to 2021.Two big factors in market uncertainty are on their way to resolving themselves. First, COVID-19 vaccines are in the works, and two major drug companies have announced that vaccines will be available in a matter of months. And second, Democrat Joe Biden will take office in the White House, with a strengthened GOP opposition in Congress. The prospect of relief from the coronavirus and a divided government unable to enact extreme or controversial measures promises us a degree of stability that will be welcome.A feeling of optimism and a perception that there are opportunities available, have Wall Street’s analysts tagging stocks for success. We’ve pulled up the TipRanks data on three stocks that high-rated analysts have tagged as potentially strong investments. These are buy-rated equities, with double-digit upside potential for the coming year.LendingTree, Inc. (TREE)First up is LendingTree, the online marketplace that connects borrowers and lenders. The company offers borrowers options to shop for competitive rates, loan terms, and various financing products. Among the offerings, from multiple financing sources, are credit cards, deposit accounts, and insurance products. LendingTree is based in North Carolina, with offices in New York, Chicago, and Seattle.In the third quarter, the company showed mixed fiscal results. Revenues were up sequentially, gaining 19% to reach $220 million – but earnings were down, both sequentially and year-over-year. At minus $1.33, the EPS was net-negative, and far below the year-ago quarter’s $1.70.Covering this stock for Needham, 5-star analyst Mayank Tandon – rated 66 overall out of more than 7,100 stock pros – is upbeat despite the recent turndown after the Q3 results. Tandon noted, “[We] remain positive on the shares of TREE LT as we believe that the company is well-positioned to generate strong and consistent revenue… Consumer revenue dropped 68% Y/Y as the pandemic constrained consumer credit originations, but trends improved on a sequential basis due to better personal loan volumes and a seasonal boost from the student loan business…""TREE's diversified portfolio of personal finance products and the strong secular trends driving the shift of personal finance advertising and shopping to digital channels will help the company achieve its LT growth targets,” the analyst concluded. To this end, Tandon rates TREE a Buy, and sets a $375 price target. At current levels, his target suggests a 44% upside for the stock in 2021. (To watch Tandon’s track record, click here)LendingTree has a unanimous Strong Buy analyst consensus rating, based on 6 Buy reviews set in recent week. The stock’s average price target, $362, implies it has room for 39% growth from the current share price of $260.09. (See TREE stock analysis on TipRanks)Allegro MicroSystems (ALGM)Allegro MicroSystems is a semiconductor company and fabless manufacturer of integrated circuits for sensor systems and analyst power technologies. The company’s products are used in the automotive and industrial sectors, and include solutions for developing electric vehicle control systems. Allegro’s circuit chips can also be found in data centers and green energy applications.Allegro is new to the stock markets, having held its IPO just this past October. The stock debuted at $14 per share, and the company put 25 million shares up for offer. In its first day of trading, it closed at more than $17 per share, grossing over $440 million for the IPO. Since then, ALGM has gained 35% in less than four weeks of trading.Vijay Rakesh, 5-star analyst with Mizuho, is clearly bullish on this newly public company.“We believe Allegro is leading the early stages of a multi-decade transformation in sensing, automotive electrification, and power distribution, with substantial upside from its industry leadership in magnetic sensors, a differentiated Power IC roadmap, and fabless operating model. Allegro's xMR sensors and power ICs drive technology platform leadership and enable better performance, accuracy, and control for the growing EV market and Industry 4.0 - key for next-generation electrified automotive powertrains, data centers, and factory automation,” Rakesh wrote.Along with his upbeat comments, Rakesh gives this stock a Buy rating and a $28 price target. His target implies an upside potential of ~17% for the next 12 months. (To watch Rakesh’s track record, click here)Overall, this chip maker is a Wall Street favorite. Out of 6 analysts polled in the last 3 months, all 6 are bullish on ALGM. With a return potential of ~18%, the stock's consensus target price stands at $28.29. (See ALGM stock analysis on TipRanks)American Well (AMWL)American Well, also called AmWell, connects patients, health care providers, and insurers to promote quality care outcomes in a digital world. The company boasts over 55 major insurers and more than 62,000 providers incorporating its service into their networks, giving access to more than 80 million potential patients.AmWell is another newcomer to the markets. This past September, the company held its IPO and raised more than $742 million. Over 41.2 million shares were sold, with the initial price of $18. This compared well to the 35 million shares and $14 to $16 price expected prior to the event. In its first quarter trading as a public company, AmWell reported several gains in key metrics. Revenue was up year-over-year, rising 80% to reach $62.6 million. The active provider total – more than 62,000 – represents a 930% increase in the past year, and shows strong growth for the company. And the company registered over 1.4 million patient visits during the quarter, a 450% increase from the year-ago quarter.Piper Sandler’s 5-star analyst Sean Wieland notes the importance of network growth for AMWL, writing in his note on the stock: “62K providers are using the AMWL Network, up almost 10x from a year ago. The increase was driven primarily by providers employed by, or affiliated with, AMWL's health systems and payor clients… As the number of providers on the network grows, so does the value of the network; network expansion makes it easier for patients to find the right provider and for providers to find the right patient.”Wieland rates AMWL an Overweight (i.e. Buy), and his $44 price target indicates his confidence in an upside of 78% for the next 12 months. (To watch Wieland’s track record, click here)All in all, AMWL's Moderate Buy consensus rating is based on 8 reviews, including 5 Buys and 3 Holds. The shares are selling for $24.71 and their average price target, at $35.86, represents a 45% upside potential. (See AMWL stock analysis at 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.

  • 3 Dividend Aristocrats For Safe Dividends And High Total Returns

    By Bob Ciura with Sure Dividend.The U.S. stock market has come roaring back from the lows seen in March and April, but the broader economy remains on unstable footing. The potential for a double-dip recession could bring about another downturn in the stock market. For risk-averse investors, it may make sense to buy high-quality dividend stocks in this climate of uncertainty.For this reason, we recommend income investors looking for stability, consider the Dividend Aristocrats. This is an exclusive list of 65 stocks in the S&P 500 Index, that have raised their dividends for at least 25 consecutive years. Such a long track record of annual dividend increases proves a company's ability to withstand recessions.The following three stocks are all on the list of Dividend Aristocrats. In addition, they have high dividend yields well above the S&P 500 average, as well as reasonable valuations that could provide investors with high total returns in the years ahead.Undervalued Dividend Aristocrat 1: AbbVieAbbVie Inc. (NYSE: ABBV) is a healthcare giant with a focus on pharmaceuticals. Its most important individual product is Humira, a multi-purpose pharmaceutical that was the top-selling drug in the world last year. AbbVie was spun off from Abbott Laboratories (ABT), its former parent company which is also a Dividend Aristocrat. AbbVie has performed very well over the course of 2020.In the third quarter, AbbVie's revenue of $12.9 billion increased 52% year-over-year. Revenue was boosted by the Allergan acquisition, as well as growth from new products. AbbVie earned $2.83 per share during the third quarter, up 21% from the previous year's quarter. The company also raised full-year guidance and now expects 2020 adjusted earnings-per-share in a range of $10.47 to $10.49, which would make for another year of growth.AbbVie also raised its dividend by 10% in late October. The stock has a high dividend yield of 5.3%, making it an attractive mix of yield and growth. AbbVie stock also appears to be undervalued, trading for a price-to-earnings ratio of 9.4, using the midpoint of full-year adjusted EPS guidance. This is a fairly low multiple for a highly profitable and growing business.AbbVie's low valuation is likely due to uncertainty regarding its flagship product Humira, which is now facing biosimilar competition in Europe and will lose patent protection in the U.S. in 2023. But AbbVie has long prepared for this by investing in its own new products, and by the Allergan acquisition. For example, AbbVie has seen strong growth from Imbruvica, which saw a 9% increase in sales last quarter. AbbVie also completed the $63 billion acquisition of Allergan which makes a broad line of popular aesthetics products such as Botox.Our fair value estimate for AbbVie stock is a P/E of 10.5, compared with a forward P/E of 8.4. This means that if AbbVie's valuation expanded from 8.4 to 10.5 over the next five years, total returns (including EPS growth and dividends) could exceed 10% per year.Undervalued Dividend Aristocrat 2: Walgreens Boots AllianceWalgreens Boots Alliance (NYSE: WBA) is a major pharmacy retailer with nearly 19,000 stores in 11 countries. Walgreens Boots Alliance generates nearly $140 billion in annual revenue. Walgreens has been under pressure on many fronts, not just the coronavirus pandemic but also from a longer-running downturn for physical retail.Internet-based retailers such as Amazon.com Inc (NASDAQ: AMZN) and many others have gradually taken market share from physical stores, as consumers have gravitated toward online shopping for the convenience. This trend was already taking place heading into 2020, and the coronavirus has only accelerated the shift to online shopping. Still, Walgreens remains highly profitable and continues to grow sales.On October 15th, 2020 Walgreens reported Q4 and full-year 2020 results for the period ending August 31st, 2020. For the quarter, sales increased 2.3% to $34.7 billion. On a per-share basis, adjusted EPS decreased -28.2% to $1.02, reflecting an estimated adverse impact of -$0.46 from the COVID-19 pandemic.For the fiscal year, sales increased 2.0% to $139.5 billion. Adjusted earnings-per-share totaled $4.74, down 21% year-over-year but ahead of previous guidance of $4.65 to $4.70. This included an estimated -$1.06 adverse impact from the COVID-19 pandemic. The company anticipates a recovery in the upcoming year, with fiscal 2021 guidance that calls for low single-digit growth in adjusted EPS.Continuing to grow sales and earnings, albeit at a modest rate, would still allow Walgreens to increase its dividend each year, as it has done for 45 consecutive years. Shares yield 4.5% currently, and the stock appears to be undervalued. With a forward P/E ratio of 7.9 compared with our fair value estimate of 10, we believe Walgreens stock can provide total returns of 13%-14% per year over the next five years.Undervalued Dividend Aristocrat 3: AT&TAT&T Inc (NYSE: T) is a telecommunications giant with a large offering of services including wireless, broadband, and pay TV. AT&T also operates the satellite television business DirecTV. The company has invested heavily to restore growth in recent years, including the massive ~$85 billion acquisition of Time Warner, which owns multiple valuable media properties including HBO, CNN, and the Warner Bros. production company.These efforts have been slow to materialize, as the coronavirus pandemic has negatively impacted AT&T to start 2020. Still, AT&T generates a high level of cash flow, which allows it to pay down debt and pay dividends to shareholders. In the 2020 third quarter, AT&T generated revenue of $42.3 billion, along with operating cash flow of $12.1 billion. The company recorded more than 5 million total domestic wireless net adds along with over 1 million postpaid net additions. AT&T's acquisition of Time Warner should pay off in the long run, as it provides AT&T with valuable diversification. Going forward, AT&T will be an owner of content in addition to a distributor, which is increasingly important in the era of streaming and cord-cutting. Another promising growth catalyst is 5G rollout. AT&T now provides access to 5G to parts of over 350 U.S. markets.AT&T still expects free cash flow of at least $26 billion for the full year. AT&T's net debt-to-EBITDA ratio was ~2.66x at the end of the quarter, indicating a manageable level of debt. This is crucial for AT&T's ability to pay its dividend, which is presumably the biggest reason to own the stock. AT&T currently yields 7.3%, an extremely high yield considering the S&P 500 average yield is under 2%. In an environment of low interest rates, AT&T is a highly appealing stock for value investors. Plus, AT&T has increased its dividend for over 30 years in a row.The stock is also significantly undervalued in our view, trading at a forward P/E ratio of 8.9 compared with our fair value estimate of 11. This means valuation expansion could boost future shareholder returns by approximately 4.6% per year over the next five years. Including the 7.3% dividend yield and 3% expected annual earnings-per-share growth, expected returns could reach nearly 15% over the next five years.See more from Benzinga * Click here for options trades from Benzinga * Analysts React To Gap's Earnings Miss, 20% Fall: Near-Term Visibility Diminished * 50 Stocks Moving In Wednesday's Mid-Day Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Electric-Car Stocks Fall As China Signals Crackdown; Nikola-GM Doubts Grow

    Electric-car stocks sold off on news of a probe in China, while Nikola failed to assuage investors on a proposed GM partnership.

  • I’m 65, have $500,000 in cash, no ‘impressive’ work résumé and am terrified of investing — can I retire?

    Now the bad news:  – Other than anticipated Social Security (approximately $1,300/month if I wait until full retirement age, $1,200/month if I retire at 65), I have no pension or other income streams. – I don’t have an impressive work résumé that could lead to lucrative employment in retirement. Is there some way I can make $500,000 in savings last, especially given the abysmally low interest rate environment?

  • How a Restructured Pfizer Will Pay Out Its Dividend

    The company has said it will adjust its dividend downward next year, by the amount of the dividend investors will get from their new holdings of Viatris.

  • Only these five dividend stocks made the cut in a ‘safer and better’ screen

    In May 2019, two veteran money managers shared their philosophy with MarketWatch readers that investors shouldn’t be overly focused on the highest dividend yields when selecting stocks for income. The original article featured comments from Mike Loewengart, who is now the managing director of investment strategy at E-Trade (which was acquired by Morgan Stanley in October) and Lewis Altfest, president of Altfest Personal Wealth Management, which manages about $1.4 billion for private clients in New York. Loewengart believes that a good approach for income-seeking investors is to focus on total return rather than dividend yield.

  • The Ultimate Warren Buffett Stock Is In Buy Zone, But Should You Buy It?

    Berkshire Hathaway is the ultimate Warren Buffett stock. But is it a good buy? Here's what the earnings and chart show for Berkshire stock.

  • Dow Jones Futures: Nasdaq Hits High As AMD, Shopify, PayPal Signal Buys, But This Should Worry You

    The Nasdaq hit a high as growth led Wednesday. AMD and Shopify are among several stocks flashing buy signals. But a key gauge suggests investors are getting excessively bullish.

  • J.P. Morgan: 2 Stocks to Consider Buying (and 1 to Stay Away From)

    In a report on current market conditions – and the strategic view going forward – JPMorgan’s Marko Kolanovic sees plenty of reasons for optimism. Kolanovic sees that risk has eased in the last few weeks, and taking the usual daily fluctuations into account, markets are likely to see a sustained rally.The biggest news, in Kolanovic’s view, are the positive reports about the rapid development and imminent availability of a COVID-19 vaccine. This is a ‘game-changer,’ allowing investors to “look through the recent surge in COVID-19 cases to the impending end of the pandemic and broader reopening of the economy.”In a close second, as far as market importance is concerned, is the split result of the national election. Kolanovic describes a Biden Presidency combined with increased Republican strength in the House and a continued Republican Senate majority as ‘the best of both worlds.’ A divided government is unlikely to dismantle the pro-business moves taken by the Trump Administration, while Biden is likely to ease the trade war. The result, according to the Kolanovic team, will be “less market volatility, which could drive inflows to risk assets.”To this end, JPM’s stock analysts have been busy scanning the tickers, seeking out those that are likely to win – or lose – in the coming months. Of particular interest, we’ve pulled the TipRanks data on two stocks that the firm predicts will show double-digit growth, and one that JPM says to avoid. Vroom, Inc. (VRM)We’ll start with Vroom, an online retailer in the used vehicle space. In addition to cars, the company also sells spare parts and accessories, and offers insurance, car rentals, and funding for purchases, for US customers only.Vroom is a newcomer in the markets; it IPO’d in June and rose quickly, peaking in on September 1. Since then, the shares have slipped and are now down 22% since their first day’s close. The rise and fall are the result of conflicting tailwinds and headwinds pushing against the stock.On the positive side, Vroom has gained during the general shift to online retail. Also, the company’s focus on used vehicles was beneficial during the pandemic, when customers were nervous or cash-strapped – but in either case, reluctant to lay out large sums for a new car. On the negative side of the ledger, that reluctance to spend slipped over to the used car market, too. Vroom had to contend with low margins while cutting prices to attract sales.Covering the stock for JPM, analyst Rajat Gupta sees the stock’s current state as an opportunity for investors. The bad times are likely temporary, he believes, and this company is set to take off. “Net-net, with near-term expectations now reset and potential for acceleration in both unit growth and gross profit into 2021, we view the setup as favorable in the near to medium term for the stock with little incremental negative catalysts… we believe execution will be key given heavy reliance on third parties for key operational aspects such as reconditioning and logistics,” Gupta wrote.In line with this assessment, Gupta rates the stock an Overweight (i.e. Buy), and his $70 price target implies an upside of 91% for the year ahead. (To watch Gupta’s track record, click here)Even after the fall in its share value, Vroom retains a Strong Buy from the analyst consensus. The rating is based on 11 reviews, including 10 Buys and 1 Sell. VRM is selling for $36.81, and its $59.40 average price target suggests it has room for ~61% growth on the one-year horizon. (See VRM stock analysis on TipRanks)Colfax Corporation (CFX)Next up is Colfax, a niche manufacturing company. Colfax produces a range of equipment for the welding, medical device, and air and gas handling markets, ranging from medical equipment for joint reconstruction to welding helmets and cutting torches. While it may sound incongruous, the combination works for Colfax, and the company is experiencing a turnaround from corona crisis losses in 2Q20.The third quarter earnings, at 41 cents per share, showed both good and bad. It was down 32% year over year, but has more than quadrupled sequentially and beat the estimates. Revenues were up 29% sequentially, coming in at $805 million. Management expects to see continued sequential improvements through the remainder of 2020, and predicts full-year earnings in the range of 45 cents to 50 cents per share.Representing JPM, 5-star analyst Stephen Tusa commented, “[We] see the stock as being relatively cheap compared to close peers within the Fab Tech and Med Tech space with significant upside post COVID-19 that does not appear to be entirely realized in the valuation as of yet compared to the peer FY2 expectations. CFX has strong brands and franchises… and an underappreciated productivity opportunity with primary end market bounce back in Fab Tech and demand spikes in Med Tech.”Tusa backs his upbeat comments with an Overweight (i.e. Buy) rating and a $52 price target indicating his confidence in a 38% one-year upside. (To watch Tusa’s track record, click here)Overall, Colfax has a Moderate Buy rating from the analyst consensus, based on 8 reviews breaking down to 5 Buys, 2 Holds, and 1 Sell. However, the majority expect shares to stay range bound for now, as the current $38.63 average price target indicates. (See CFX stock analysis on TipRanks)Beyond Meat (BYND)Last on today’s list of JPM calls is Beyond Meat, a company that made a lot of waves last year when it raised over $3.8 billion in its IPO. The company offers a vegetarian-based meat substitute, and it markets as more nutritious, better tasting – and more like meat – than competing products. The company was founded back in 2009, and has expanded its lineup of products to include simulated beef, pork, and chicken products.Overall, BYND stock still presents a positive façade. The shares are up 88% year-to-date, and the company registered a net profit in 1Q20, just as the corona crisis started. Since then, however, earnings have turned negative – and even worse, revenues showed a strong sequential drop in Q3. The latest quarterly figures showed $94 million at the top line, down 16% from Q2 and well below the forecast of $133 million, and an EPS loss of 28 cents – far worse than the 3-cent loss predicted. The biggest hit to Beyond Meat came from declines in restaurant business that was only partially redeemed by a 40% surge in grocery sales. The company did announce a partnership with McDonald’s to provide the meat substitute for the fast food giant’s new McPlant menu, but even that announcement was bungled. BYND shares fell sharply when it was rumored that McD’s had developed the meat substitute in-house. While that misconception has been corrected, BYND has only partially bounced back.In short, this company is facing serious headwinds in the near-term, and JPM is advising caution due to “visibility so low and the most recent quarter surprisingly soft.” Ken Goldman, rated 5-stars at TipRanks, writes of BYND, “We are now trying to model a company for which (a) we are not exactly clear why 3Q was so bad (the company’s explanation did not seem to be backed up by meaningful data), and (b) the partnership with McDonald’s could either be a game-changer or a dud.”Goldman’s caution is clear from his Underweight rating (i.e. a Sell), and his $104 price target suggests a 26% downside to the stock. (To watch Goldman’s track record, click here)JPM is not the only firm advising caution here. Beyond Meat’s analyst consensus rating is a Moderate Sell, based on 2 Buys, 7 Holds, and 7 Sells set in recent weeks. The stock is selling for $141.91 and its average price target of $110.71 indicates a probable downside of 22% in the coming year. (See BYND 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.

  • GM Vs. Ford: 5 Reasons Why One Is Pulling Ahead On Electric Cars

    General Motors holds the edge over Ford in a comparison of their electric car strategies, Morgan Stanley said.

  • Bitcoin Price Drops Almost $3,000 With Sharpest Sell-Off Since March

    Bitcoin fell more than 12%, its sharpest decline in months.

  • How Much Are Taxes on an IRA Withdrawal?

    How much tax you owe on an IRA withdrawal depends on your age, the type of IRA, and other factors. Use them to decide which type(s) of IRA to fund.

  • JPMorgan analyst 'skeptical' that Nikola's Badger pick-up truck initiative with GM will proceed

    Nikola (NKLA) shares on Wednesday sank as much as 16%, as several EV startups slumped from their recent rally, and JPMorgan analyst Paul Coster weighed in on the uncertainty surrounding Nikola and General Motors (GM) partnership which has yet to close next month.

  • Yellen Ending Trump Dollar Tumult Promises Cheers in Markets

    (Bloomberg) -- Now that President-elect Joe Biden has picked Janet Yellen as his Treasury secretary, currency markets are growing more confident that the U.S. government’s policy for the dollar will be more clear.Donald Trump’s administration conjured chaos about the greenback, one moment threatening to intervene or otherwise fretting about the currency’s strength, then -- often on the same day -- taking a contradictory stance. From Bill Clinton’s administration through Barack Obama’s, the federal government adhered to the position that a strong currency is a reflection of the strength of the U.S. economy.Prospects that Yellen will returning clarity on dollar policy may help stabilize the $6.6-trillion-a-day currency market that’s the backbone of global finance and commerce. Some traders are hopeful even though the former Federal Reserve chair and her new boss, Biden, are expected to take time to unfold their position on the greenback as they focus initially on fighting the pandemic and its economic damage.“The Yellen appointment may formulate a more coherent policy for the dollar,” Ben Emons, head of global macro strategy at Medley Global Advisors, said in a note. “The reason is that during Yellen’s tenure as chair, Fed policy uncertainty fueled the strength of the dollar. Her experience and knowledge could see a better, formal setting around dollar policy.”The U.S. Treasury secretary has historically been in charge of the dollar, with a unit in the department dedicated to foreign exchange policy.But tradition went by the wayside under Trump. The president and his aides freely discussed the currency, often overstepping Treasury Secretary Steven Mnuchin, and the administration overall showed far less commitment to a strong dollar due to Trump’s obsession with U.S. trade deficits.In July 2019, Trump and his top economic adviser, Larry Kudlow, publicly debated a U.S. intervention to weaken the currency after the European Central Bank signaled looser monetary policy, causing the euro to weaken against the greenback. Within hours of each other, Kudlow said in a television interview that the administration had decided not to intervene, only to have Trump tell reporters that the idea was still under consideration.Former Treasury Secretary Larry Summers says it’s time for the U.S. to return to the strong-dollar policy established during the Clinton administration.“It would be unwise to appear actively devaluationist or indifferent to the dollar,” he said earlier this month in an open letter advising the next Treasury chief.Yellen has in the past noted that a stronger dollar exacerbates the U.S. trade deficit and dampens growth, while a weaker currency does the opposite. She also in 2014 warned her then-Fed colleagues about the risks of commenting on the dollar.“As a former Fed chair, Yellen also fully understands the impact she could have on markets,” Ian Katz, an analyst at Capital Alpha Partners, wrote in a note. “She will choose her words carefully. Investors shouldn’t worry that she will make off-the-cuff remarks that will spur volatility.”Any policy changes under Yellen would coincide with growing consensus on Wall Street that the dollar has entered a period of prolonged weakness. A Bloomberg gauge of the greenback’s value just hit a 2 1/2-year low.“Given that we see the dollar falling through Biden’s term, the issue of dollar policy could be of some significance,” Standard Bank’s head of foreign-exchange strategy, Steven Barrow, said in a note. “More than this, the era of almost non-existent foreign-exchange intervention by developed nations could be about to end as well.”The U.S. last intervened in currency markets in 2011, along with international peers, after the yen soared in the wake of that year’s devastating earthquake in Japan.The dollar has fallen more than 11% since March, as measured by the Bloomberg Dollar Spot Index.Dollar bears have been emboldened by expectations that the Federal Reserve will keep rates near zero for years and that there will be diminished “haven” demand for the dollar given promising results for coronavirus vaccines. That trajectory may continue with Yellen at Treasury, as she’s seen pushing to join Fed Chair Jerome Powell’s policy of lower-for-longer interest rates with extended, expansionary government spending.Not everyone agrees Yellen will make strong pronouncements on dollar policy, since her focus will be on the domestic economy. Nine months into the pandemic, more than 6 million people still claim extended unemployment assistance and joblessness is again on the rise as U.S. coronavirus infections spike.“Yellen is unlikely to forcefully articulate a specific policy on the dollar as she no doubt recognizes that domestic policies are far more important to the U.S. recovery and that trying to control or jawbone the exchange rate’s value should not be a major priority,” said Eswar Prasad, who wrote ‘The Dollar Trap: How the US Dollar Tightened Its Grip on Global Finance.’(Adds analyst comments 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.