Wonder Land: After a pandemic, riots and everything else, the 2020 election has become a culture war between Biden and Trump. Image: Nathan Howard/Getty Images
Wonder Land: After a pandemic, riots and everything else, the 2020 election has become a culture war between Biden and Trump. Image: Nathan Howard/Getty Images
The greedy are, at last, getting blown out, and the prudent being vindicated. I see three buckets of stocks that intrigue me now.
In the investing game, it’s not only about what you buy; it’s about when you buy it. One of the most common pieces of advice thrown around the Street, “buy low” is touted as a tried-and-true tactic.Sure, the strategy seems simple. Stock prices naturally fluctuate on the basis of several factors like earnings results and the macro environment, amongst others, with investors trying to time the market and determine when stocks have hit a bottom. In practice, however, executing on this strategy is no easy task.On top of this, given the volatility that has ruled the markets over the last few weeks, how are investors supposed to gauge when a name is flirting with a bottom? That’s where the Wall Street pros come in.These expert stock pickers have identified three compelling tickers whose current share prices land close to their 52-week lows. Noting that each is set to take back off on an upward trajectory, the analysts see an attractive entry point. Using TipRanks’ database, we found out that the analyst consensus has rated all three a Strong Buy, with major upside potential also on tap.Progenity (PROG)Offering clear and actionable genetic results, Progenity specializes in providing testing services. The company started trading on Nasdaq in June and saw its shares tumbling 44% since then. With shares changing hands for $8.11, several members of the Street recommend pulling the trigger before it heats up.Piper Sandler analyst Steven Mah points out that even against the backdrop of COVID-19, PROG managed to deliver with its Q2 2020 performance. “We are encouraged by the recovery in late Q2 2020 with 75,000 accessioned tests (~79,000 in Q1 2020), driven by noninvasive prenatal testing (NIPT) and carrier screening,” the analyst noted. Expounding on this, Mah stated, “Progenity did not provide guidance, but June test volumes of ~28,000 were strong (Q1 2020 monthly average was ~26,000) which we believe showcases the durability of its reproductive tests and the success that Progenity has in co-marketing and attaching carrier screening to the more essential NIPT. Of note, despite the pandemic disruptions, Progenity was able to maintain its leading pre-COVID test turnaround times.”Additionally, health insurer Aetna is temporarily extending coverage of average-risk NIPT until year-end as a result of the pandemic, with the American College of Obstetricians and Gynecologists (ACOG) also expected to endorse average-risk in the future given its clinical utility, in Mah’s opinion.Reflecting another positive, the fourth generation NIPT (single-molecule counting assay) test was able to measure fetal fraction, a key milestone according to Mah, and will continue to be developed into 2021. As the technology could potentially be applied to DNA, RNA, epigenetic markers and proteins for additional clinical applications such as oncology, the analyst is looking forward to the completion of the preeclampsia verification in Q4 2020 and a possible 2H21 launch. “We believe preeclampsia (~2.3 billion serviceable market) is a major differentiator for Progenity, allowing them to cross-sell across the full-continuum of reproductive testing,” the analyst added.If that wasn’t enough, PROG signed its first GI Precision Medicine partnership agreement with a top-20 Pharma company in August. The Oral Biotherapeutic Delivery System (OBDS), an ingestible drug and device combination designed to precisely deliver biologics systemically through a needle-free liquid jet injection into the submucosal tissues of the small intestine, is set to be utilized as part of the collaboration. Mah commented, “We believe Progenity can sign additional Pharma deals and look forward to the newsflow coming out on this front.”To sum it all up, Mah said, “We believe Progenity shares are undervalued given the robust recovery in the core testing business and multiple upcoming growth catalysts.”To this end, Mah rates PROG an Overweight (i.e. Buy) along with a $17 price target. Should his thesis play out, a twelve-month gain of 105% could potentially be in the cards. (To watch Mah’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 4, in fact, have been issued in the last three months. Therefore, the message is clear: PROG is a Strong Buy. Given the $13.33 average price target, shares could climb 60% higher in the next year. (See PROG stock analysis on TipRanks)Tactile Systems Technology (TCMD)Developing at-home therapy devices, Tactile Systems Technology wants to provide new treatments for lymphedema, which occurs when the lymphatic system is impaired, disrupting normal transport of fluid within the body, and chronic venous insufficiency. Down 52% year-to-date, its $32.67 share price lands close to its $29.47 52-week low. Thus, with business trends improving, the Street is pounding the table.Writing for Canaccord, analyst Cecilia Furlong acknowledges that the pandemic has hampered the company, with COVID-19 weighing on both volumes and sales. In the second half of March, volumes were down 50% compared to the first half of the month, and TCMD’s patient volumes in April and May remained challenged. That being said, trends started to improve at the end of May.“Going forward, given the vast majority of TCMD’s clinician customers practice in outpatient or office-based settings, we remain positive on TCMD’s ability to demonstrate better insulation against COVID impacts and likely experience a greater bounce-back relative to overall med-tech volume trends, with TCMD further benefitting from its expanding using of technology to remotely engage with clinicians and support patients,” Furlong explained.The analyst added, “Furthermore, recent trends among some providers to prescribe Flexitouch (an advanced intermittent pneumatic compression device to self-manage lymphedema and nonhealing venous leg ulcers) earlier along the therapy process, as a means to reduce in-person contact, could provide upside near term, as well as potentially transition to a longer-term tailwind.”On top of this, Furlong is also optimistic about new CEO Dan Reuvers and the reprioritization of the company’s investment and market development efforts. TCMD will shift focus away from its acquired Airwear product line, with it redirecting investments toward its Flexitouch and Entre (a pneumatic compression device used to assist in the home management of chronic swelling and venous ulcers associated with lymphedema and chronic venous insufficiency) products.“Given significant under-penetration in the lymphedema/phlebolymphedema market targeted by Flexitouch alongside the large patient population with limited treatment options today targeted by the firm’s Head & Neck platform, we view the combination of education and clinical data as key to further developing and penetrating these markets... Going forward, we expect management to continue to compile a broad base of clinical data to support reimbursement and drive broad adoption,” Furlong commented.All of this prompted Furlong to keep a Buy rating and $62 price target on the stock. This target conveys her confidence in TCMD’s ability to soar 90% in the next year. (To watch Furlong’s track record, click here)In general, other analysts are on the same page. With 3 Buy ratings and 1 Hold, the word on the Street is that TCMD is a Strong Buy. The $62.33 average price target brings the upside potential to 91%. (See TCMD stock analysis on TipRanks)uniQure N.V. (QURE)Last but not least we have uniQure, which delivers curative gene therapies that could potentially transform the lives of patients. Even though shares have fallen 44% year-to-date to $40, not much higher than its 52-week low of $36.20, multiple analysts still have high hopes.Representing SVB Leerink, 5-star analyst Joseph Schwartz acknowledges that shares struggled after news broke of its collaboration and licensing agreement with CSL Behring for AMT-061, QURE’s gene therapy for Hemophilia B, he argues the “shareholder base turnover is likely now complete as investors and QURE shift focus to next-in-line AMT-130, its AAV5 gene therapy for Huntington’s Disease (HD).”Schwartz further added, “With the M&A premium now out of the stock, we see the QURE’s current level as an attractive buying opportunity for those investors interested in the company’s up and coming CNS gene therapies, internal manufacturing, and robust intellectual property and knowhow.”Looking more closely at the agreement with CSL Behring, QURE will be tasked with the completion of the pivotal Phase 3 HOPE-B trial as well as the manufacturing process validation and manufacturing supply of AMT-061.According to management, 26-week Factor IX (FIX) data from all 54 patients enrolled in the trial remains on track, and topline data from the pivotal trial is still slated to read out by YE20. It should be mentioned that in a Phase 2b dose-confirmation study, QURE reported 41% FIX activity out to one year. Additionally, Schwartz points out that with HOPE-B progressing as planned, QURE has continued its manufacturing process validation work ahead of the anticipated BLA/MAA submissions in the U.S. and EU in 2021.On top of this, as part of the deal, QURE is eligible to receive more than $2 billion including a $450 million upfront cash payment, $1.6 billion in regulatory and commercial milestones and double-digit royalties ranging up to the low-twenties percentage of net product sales.“With a strengthened cash position, QURE is well funded to rapidly advance CNS assets including AMT-130 (AAV5 gene therapy for Huntington’s Disease (HD)) and AMT-150 (AAV gene therapy for Spinocerebellar Ataxia Type 3/SCA3)...We continue to believe that as QURE’s CNS pipeline assets mature, the company could once again be an attractive partner to larger biopharma companies that have recently acquired many publicly traded gene therapy platforms with substantial manufacturing capabilities,” Schwartz noted.Everything that QURE has going for it convinced Schwartz to reiterate an Outperform (i.e. Buy) rating. Along with the call, he attached a $67 price target, suggesting 68% upside potential from current levels. (To watch Schwartz’s track record, click here)What does the rest of the Street have to say? 9 Buys and 3 Holds have been issued in the last three months, so the consensus rating is a Strong Buy. In addition, the $69.89 average price target indicates 75% upside potential. (See QURE 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.
One of the simplest ways to ensure you're investing in stable companies is to pick large-cap stocks that dominate their markets. Here are nine large-cap dividend stocks to buy that offer generous -- and more importantly, sustainable -- dividends. Pfizer is in many ways the poster child for large stocks with scale, stable income and staying power.
"It's hard to think of the possibility of saving too much, but diligent savers and investors are sometimes able to reach their savings goals prior to their actual retirement date," says Kali Hassinger, a certified financial planner at the Center for Financial Planning, Inc. in Southfield, Michigan. After reaching their goals, super savers may go above and beyond the amount needed to carry out their lifestyle as retirees. "There are rules of thumb about how much of your income you should save, but there is no one-size-fits-all savings total or threshold," Hassinger says.
Shares of Nikola Corp. tumbled 9.3% in premarket trading Thursday, after Wedbush analyst Dan Ives turned bearish on the electric truck maker, saying he now believes the downside risks outweigh any positives. He cut his rating to underperform from neutral, and slashed his stock price target to $15, which is 29% below Wednesday's closing price of $21.15, from $45. The downgrade follows a volatile few weeks, that included a landmark partnership announced with General Motors Co. , a short-seller report and the sudden resignation of Founder Trevor Milton as executive chairman. In a note titled, "The Light has Turned From Yellow to Red," Ives said he still believes Nikola's EV and hydrogen fuel cell ambitions are attainable in the semi-truck market, he now has "serious concerns" that the execution and timing of these goals can stay on track in the coming years. "The recent questions surrounding the Nikola story raised by the bears will be a dark cloud over the stock until answered, especially with no fundamental or delivery catalysts in the near term," Ives wrote in the note. "[N]ikola has made no revenue over the last 4 years, burns cash at a rapid rate, and has some stout competition already off and running in the electric trucking space (Tesla, Daimler)," he added. The stock has still more than doubled year to date through Wednesday, but it has plunged 71.5% over the past three months while Tesla Inc.'s stock has run up 97.9% and the S&P 500 has gained 6.1%.
You should be able to roll over your 401(k) plan account into a Roth IRA, but be sure you first understand the tax consequences of doing so.
Restaurant bankruptcies are starting to pile up.
There were 13.2 million new pickups sold from 2013 to 2019 in the U.S., with monthly payments of as much as $1,300 for each. That money could be better spent on 401(k) or IRA payments, says Ben Carlson.
ChargePoint Inc, one of the world's oldest and largest electric vehicle charging networks, said on Thursday it will go public by merging with Switchback Energy Acquisition Corp <SBE.N> in a deal that values the company at $2.4 billion. The deal is expected to close near the end of the year and the company will be named ChargePoint Holdings Inc. A trading symbol on the New York Stock Exchange has not been identified. Reuters last week reported ChargePoint and Switchback were nearing a deal.
An analyst at UBS cautions that while Apple shares typically outperform ahead of an iPhone launch, they have generally underperformed the market after a launch.
Canada's BlackBerry Ltd reported a near 6% rise in quarterly revenue on Thursday, as demand for its security software suite, Spark, and its QNX car software rose. Total revenue for the second quarter ended Aug. 31 was $259 million, higher than analysts' estimates of $237.03 million, according IBES data from Refinitiv. Net loss narrowed to $23 million, or 4 cents per share, from $44 million, or 10 cents per share, a year earlier.
It’s nearly open enrollment season and employees are set to take a different approach to their benefits this time around. But businesses might be doing the same and that could mean less offerings for their employees.
“There is lack of short-term catalysts, but for patient investors this is a unique entry point,” says Mike Mayo, a banking analyst with (WFC) who has been bullish on the group. “Book value is solid, and we think the third-quarter earnings reports will show book-value growth.” JPMorgan, at $92.74, is off 33% so far in 2020, and Bank of America, at $23.20, is down 34%.
Here's really why stocks are losing a ton of steam right now.
Gold is breaking lower from the triangle pattern as forecasted. Expect a 1 to 2-week decline into the next 6-month low. A rally to $2300+ is possible from that bottom into late December – depending on the November elections (or lack thereof).
Tesla's lead in electric vehicle technologies has other automakers making desperate moves to catch up.
Gaming group Penn National will sell around 14 million in new shares as it ramps-up its sports betting challenge to rivals such as DrafKings and FanDuel.
A $4.3 billion battery-making company backed by Bill Gates could rival Tesla.
(Bloomberg) -- Before the pandemic emptied the city, few lenders benefited from the heady local real estate market as much as regional players New York Community Bancorp Inc. and Signature Bank.Now they’re becoming a case study for potential trouble from a sudden downturn in the Big Apple’s property sector, and their share prices are suffering. New York Community Bancorp and Signature were among the top five most-active lenders in New York in the first half of the year, and almost all of their portfolios are tied to the area.With retail and apartment vacancies rising and rents falling, and with the prospect of employers cutting their office space looming, the question is whether the hundreds of millions of dollars the banks have set aside for commercial-property loan losses will be enough. An epicenter of Covid-19, the city shut down in March, earlier than many parts of the U.S., and its reopening has been cautious, with workers still at home and restaurants not yet open for indoor dining.“It could be a two-, three-year window of things slowly working itself out,” Jim Costello, senior vice president at property-research firm Real Capital Analytics Inc., said in an interview. “There are going to be some price changes, but is it enough to get through to the lenders? That would have to be kind of severe.”At New York Community Bancorp, mortgages make up more than 90% of the loan portfolio, accounting for almost $39 billion of financing as of midyear, mostly tied to real estate in the New York City area. Signature Bank says more than 60% of its loan book is secured by commercial real estate, “substantially all” of which is located in the New York area. By comparison, Wells Fargo & Co. was the most-active lender in the city in the first half of the year, but loans in New York state accounted for just 2% of its total lending portfolio at mid-year.Loan ReservesWestbury, New York-based New York Community Bancorp has $155.8 million set aside for soured mortgages after bolstering reserves in the first half of 2020. That represents 0.4% of its commercial real estate loan book, compared with the 2% Wells Fargo has set aside.New York Community Bancorp’s debt outlook is negative at S&P Global Ratings. In June, the ratings firm said that multifamily loans make up about 75% of the bank’s total loan book, and that its “landlord borrowers will likely have reduced cash flows at least in the near term.” The lender’s retail real estate exposure could also be “vulnerable,” S&P analyst Barbara Duberstein wrote.New York Community Bank’s loans in the city include a $21 million mortgage for an apartment building at West 160th Street that was formerly home to actor and civil rights icon Paul Robeson, a National Historic Landmark that bears his name, federal and city records show.Chief Executive Officer Joseph Ficalora said on New York Community Bancorp’s second-quarter earnings call that “rent collections have been quite strong.” The firm granted payment deferrals for almost $6 billion of loans for a six-month period that expires in October or November for most borrowers.Questions remain about how bad things will get, making it difficult to predict what losses may be coming for banks. On one hand, Facebook Inc. signed a massive lease for office space in Manhattan last month, a vote of confidence from one of the largest U.S. companies. Yet Manhattan office leasing in 2020 could slump to the lowest level in 20 years, according to brokerage Colliers International. And there is more space available as tourism-dependent sectors suffer, which “will undoubtedly place pressure on rents,” according to a July report from Jones Lang LaSalle Inc.“We’re sort of waiting for the non-performers to show up, and what losses will eventually manifest themselves, but the biggest area for them is the retail” commercial real estate, Bloomberg Intelligence analyst Herman Chan said in an interview. “Next year is going to show which banks did better from an underwriting standpoint versus others. It’s all about client selection. It’s all about underwriting and how conservative these banks were.”New York Community Bancorp’s shares have sunk 30% this year through Wednesday, compared with a 0.2% gain for the S&P 500 and a 24% drop for the S&P 500 Financials Index. The declines have been even more dramatic for other regional lenders focused on New York. Signature Bank’s shares have slumped 39% and M&T Bank Corp.’s have plunged 46%.Last year, New York Community Bancorp’s shares surged 28%, and Signature’s soared 33%, outperforming the 20% increase in the KBW Regional Banking Index. M&T’s stock increased 19%.Short sellers are betting on further declines. Short interest represented 5% of tradable shares at New York Community Bancorp and 2.8% at Signature Bank, according to data from financial-analytics firm S3 Partners. That figure was less than 1% at the five biggest U.S. commercial banks.For Signature, the bank’s “financial condition and results of operations may be affected by changes in the economy and the real estate market of the New York metropolitan area,” it says in regulatory filings.A $50 million loan for a building on the Upper East Side that houses the Bentley Hotel is among Signature’s real estate financing in the city. During the pandemic, the hotel is housing more than 300 homeless men, with half of them in their own rooms, under a city contract, according to Elizabeth Lion, a spokesperson for the nonprofit Doe Fund.The bank, based in New York City, has almost $340 million set aside for soured commercial real estate loans, or 1.2% of that book. On Signature’s second-quarter earnings call, CEO Joseph DePaolo said that payment collections on multifamily mortgages had been a “very pleasant surprise,” at more than 80%. Office collections were 65% to 85%, and retail was 35% to 65%, he said.Construction LoansWhile M&T Bank is larger than many regional competitors, with a presence across the mid-Atlantic region, the Buffalo, New York-based company has a large exposure to New York City and is big in construction lending -- generally viewed as among the riskier areas of commercial real estate financing. It was the largest construction lender in New York in the first half of 2020, according to Real Capital Analytics. The bank led a $230 million construction loan for the retro-themed TWA Hotel at John F. Kennedy International Airport.In the second quarter, M&T reclassified almost $3 billion of commercial-property and commercial-construction loans as “criticized” -- meaning regulators would view them as having credit weakness -- bringing the total percentage of criticized loans for those portfolios to 11.6%. Following that, “the question is, do some of these end up going nonperforming?” CEO Rene Jones said at a conference last week.Jones said he’s confident in M&T’s client selection and the protections the firm has in place on loan to value, or how much it lends as a percentage of asset values. “As we get into the fourth and first and second quarters, I think the picture becomes much clearer,” he said.Largest LenderAt San Francisco-based Wells Fargo, New York state is the second-highest geographic concentration for the bank’s commercial real estate loan portfolio, after California. But the firm’s $15 billion loan portfolio in New York represents a much smaller proportion of commercial-property lending than its regional competitors, and such financing accounts for only about one-sixth of Wells Fargo’s total loans.“The problem loans have skewed towards retail projects, many of which were already struggling, and then also the hotel owners with lower capitalization,” Chief Financial Officer John Shrewsberry said on Wells Fargo’s second-quarter earnings call. The bank is working through issues borrower by borrower, he said. “There is not a lot of panic at this point in the cycle.”Executives across the lending industry are optimistic. Banks learned lessons during the financial crisis and now have stronger underwriting standards. As the pandemic torpedoed the U.S. economy and New York City sheltered in place, lenders kept making loans -- a contrast from the last crisis, when liquidity dried up.Banks are also trying to avoid another phenomenon from the last crisis: getting stuck with foreclosed-upon properties. Lenders are working closely with borrowers to restructure loans, betting clients have additional capital they’ll put up so properties don’t end up in the hands of the banks.“It’s sort of a domino effect of, first you get some distressed debt, then it leads to a few distressed-property sales, everybody readjusts their pricing expectations on those distressed sales, and then lenders aren’t going to lend at the same prices from before,” said Costello of Real Capital Analytics. “And we’re not even through that first step yet. It’s a whole chain of things and it just hasn’t happened.”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.
Shares of Accenture PLC dropped 4.1% in premarket trading Thursday, after the professional services and consulting company reported fiscal fourth-quarter profit and revenue that fell shy of expectations. Net income for the quarter to Aug. 31 rose to $1.29 billion, or $1.99 a share, from $1.13 billion, or $1.74 a share, in the year-ago period. Excluding non-recurring items, such as gains on investments, adjusted earnings per share fell 2% to $1.70, below the FactSet consensus of $1.73. Revenue declined 2% to $10.84 billion, missing the FactSet consensus of $10.93 billion, amid a decline in revenue from reimbursable travel costs and the negative effects of foreign currency translation. New bookings increased 8% to $14.0 billion, including consulting new bookings of $6.5 billion and outsourcing new bookings of $7.5 billion. For 2021, Accenture expects EPS of $7.80 to $8.10, while the FactSet EPS consensus is $8.13. The stock has gained 9.5% year to date through Wednesday, while the S&P 500 has edged up 0.2%.